Bollinger Bands with Squeeze and SMA Indicator Description: BB+SMA
Overview:
Bollinger Bands (BB): Computes and plots three bands based on a selected moving average type (SMA, EMA, SMMA (RMA), WMA, VWMA) and standard deviation multiplier. The bands indicate potential support and resistance levels relative to price volatility.
Squeeze Condition: Detects periods of low volatility (squeeze) when the distance between the upper and lower Bollinger Bands narrows significantly. This condition can signal potential price breakouts.
Simple Moving Average (SMA): Calculates and plots a simple moving average based on user-defined length. It smooths price data to highlight trends and potential reversals.
Smoothing Line: Further enhances the SMA by applying different smoothing methods (SMA, EMA, SMMA (RMA), WMA, VWMA) over a specified smoothing length. It helps in identifying smoother trends and changes in direction.
Key Components:
Inputs: Users can adjust parameters such as Bollinger Bands length, type of moving average, standard deviation multiplier, squeeze condition length, squeeze threshold percentage, SMA length, smoothing method, and smoothing length.
Plotting: Displays the Bollinger Bands (basis, upper, lower), SMA, squeeze condition bands (basis, upper, lower), and a smoothing line on the chart.
Visualization: Utilizes different colors and line styles for clarity in visualizing each component's plot on the chart.
Purpose:
Helps traders identify potential price volatility, trend reversals, and breakout opportunities using Bollinger Bands, SMA, squeeze conditions, and smoothed moving averages.
Enhances technical analysis by providing clear visual cues for trend strength and potential entry/exit points based on the specified parameters.
Conclusion:
The "BB+SMA" indicator integrates multiple technical analysis tools into a single script, offering traders a comprehensive approach to analyzing price movements and making informed trading decisions directly on TradingView charts.
Bands and Channels
PFCF Price BandPFCF Price Band shows price calculated using the previous period's high and low P/TTM FCFPS (TTM's price to free cash flow per share over the last 12 months) multiplied by TTM's current FCFPS ( Similar to price theory = P/E x expected earnings per share)
If the current P/FCFPS is lower than the minimum P/FCFPS, it is considered cheap. In other words, above the maximum P/FCFPS is considered expensive.
PFCF Price Band consists of 2 parts.
- Firstly, the historical P/FCFPS value in "Green" (if TTM FCFPS is positive) or "Red" (if TTM FCFPS is negative) status changes based on the latest high or low price of TTM FCFPS.
- Second, the blue line is the closing price divided by TTM FCFPS, which shows the current P/FCF.
P.S. It is recommended to use it together with the PE Band indicator because just net profit does not mean that a company has good cash flow.
Dynamic Bollinger Bands with Momentum and Volume (DBBMV)Overview
The Dynamic Bollinger Bands with Momentum and Volume (DBBMV) indicator enhances the traditional Bollinger Bands by dynamically adjusting their width and position based on momentum and volume. This provides a more responsive and context-aware indication of price volatility and potential reversals.
Key Features
Momentum Adjusted Bands: Adjusts the bands' width based on the momentum indicator, reflecting the rate of change in price.
Volume Weighted Bands: Further adjusts the bands based on trading volume to reflect market activity and price volatility.
Signal Alerts: Provides buy and sell signals based on price action relative to the dynamic bands, helping traders identify entry and exit points.
Customizable Parameters: Allows users to adjust the lookback period, momentum sensitivity, and volume weighting for personalized analysis.
How It Works
The DBBMV indicator starts with the traditional Bollinger Bands, which are calculated using a moving average and standard deviation of the selected price source. The width of these bands is then adjusted based on the momentum of the price, making them more sensitive to price changes. Further adjustments are made based on trading volume, which ensures that the bands accurately reflect current market conditions. This results in a set of dynamic Bollinger Bands that provide more nuanced insights into price volatility and potential reversals.
Usage Instructions
Identify Volatile Periods: Use the dynamically adjusted bands to identify periods of high and low volatility in the market.
Spot Reversals: Look for buy signals when the price crosses above the lower band and sell signals when the price crosses below the upper band.
Adjust Sensitivity: Customize the lookback period, momentum sensitivity, and volume weighting to fine-tune the indicator to your specific trading strategy and market conditions.
Enhance Analysis: Combine the DBBMV indicator with other technical analysis tools for a more comprehensive market analysis.
Volume Confirmation: Use the volume-weighted adjustments to confirm the strength of price movements and potential breakouts.
The Dynamic Bollinger Bands with Momentum and Volume (DBBMV) indicator provides traders with a powerful tool to understand market dynamics better and make informed trading decisions based on adjusted volatility and market activity.
HTF Dynamic EMA Smoothing Indicator [CHE] with Kernel SelectionThe Dynamic EMA Smoothing Indicator with Kernel Selection is a powerful Pine Script indicator for TradingView designed to smooth moving averages and identify market trends more clearly. Here is a detailed description of its functionalities and settings:
Main Functions:
1. Time Period Display:
- Option to show or hide an info box displaying the current time period.
- Customizable info box: Users can adjust the size, position, and colors of the info box to suit their preferences.
2. Timeframe Type Selection:
- Auto Timeframe: Automatically calculates the best timeframe based on the current resolution.
- Multiplier: Allows using an alternate timeframe as a multiple of the current resolution.
- Manual Resolution: Users can manually set a specific timeframe.
3. Colors:
- Custom colors for various graphical elements, including EMA lines and signals.
4. Basic Settings:
- EMA and Signal Periods: Defines the periods for the exponential moving averages (EMA) and signal lines.
- Smoothing Length and Kernel Type: Allows selecting the smoothing length and the type of kernel used for weighting the EMAs.
- ATR Multiplier: Defines the multiplier for the ATR (Average True Range) to identify relevant price ranges.
5. EMA Calculations:
- The indicator calculates a weighted EMA using several methods like Linear, Exponential, Epanechnikov, Triangular, and Cosine kernels.
- Smoothing is achieved by adding and removing values in a float array that stores the EMA values.
6. Plotting EMA and Signal Lines:
- The indicator plots the smoothed EMA and signal lines on the chart. The line colors change according to the trend direction (green for uptrend, red for downtrend).
7. Trading Signals:
- Long Signals: An upward arrow is displayed when the smoothed EMA indicates an uptrend.
- Short Signals: A downward arrow is displayed when the smoothed EMA indicates a downtrend.
- Alert Conditions: Alerts are triggered when long or short signals are detected.
8. ATR Bands:
- The indicator shows upper and lower ATR bands to identify potential support and resistance zones.
9. Time Period Display on Chart:
- A table is used to display the selected time period on the chart when the corresponding option is enabled.
This indicator offers extensive customization and allows traders to conduct complex market analyses using smoothed EMAs and custom timeframes. The integration of various kernels for smoothing makes it a versatile tool adaptable to different trading strategies.
VAWSI and Trend Persistance Reversal Strategy SL/TPThis is a completely revamped version of my "RSI and ATR Trend Reversal Strategy."
What's New?
The RSI has been replaced with an original indicator of mine, the "VAWSI," as I've elected to call it.
The standard RSI measures a change in an RMA to determine the strength of a movement.
The VAWSI performs very similarly, except it uses another original indicator of mine, the VAWMA.
VAWMA stands for "Volume (and) ATR Weight Moving Average." It takes an average of the volume and ATR and uses the ratio of each bar to weigh a moving average of the source.
It has the same formula as an RSI, but uses the VAWMA instead of an RMA.
Next we have the Trend Persistence indicator, which is an index on how long a trend has been persisting for. It is another original indicator. It takes the max deviation the source has from lowest/highest of a specified length. It then takes a cumulative measure of that amount, measures the change, then creates a strength index with that amount.
The VAWSI is a measure of an emerging trend, and the Trend Persistence indicator is a measure of how long a trend has persisted.
Finally, the 3rd main indicator, is a slight variation of an ATR. Rather than taking the max of source - low or high- source and source - source , it instead takes the max of high-low and the absolute value of source - the previous source. It then takes the absolute value of the change of this, and normalizes it with the source.
Inputs
Minimum SL/TP ensures that the Stop Loss and Take Profit still exist in untrendy markets. This is the minimum Amount that will always be applied.
VAWSI Weight is a divided by 100 multiplier for the VAWSI. So value of 200 means it is multiplied by 2. Think of it like a percentage.
Trend Persistence weight and ATR Weight are applied the same. Higher the number, the more impactful on the final calculation it is.
Combination Mult is an outright multiplier to the final calculation. So a 2.0 = * 2.0
Trend Persistence Smoothing Length is the length of the weighted moving average applied to the Trend Persistence Strength index.
Length Cycle Decimal is a replacement of length for the script.
Here we used BlackCat1402's Dynamic Length Calculation, which can be found on his page. With his permission we have implemented it into this script. Big shout out to them for not only creating, but allowing us to use it here.
The Length Cycle Decimal is used to calculate the dynamic length. Because TradingView only allows series int for their built-in library, a lot of the baseline indicators we use have to be manually recreated as functions in the following section.
The Strategy
As usual, we use Heiken Ashi values for calculations.
We begin by establishing the minimum SL/TP for use later.
Next we determine the amount of bars back since the last crossup or crossdown of our threshold line.
We then perform some normalization of our multipliers. We want a larger trend or larger VAWSI amount to narrow the threshold, so we have 1 divide them. This way, a higher reading outputs a smaller number and vice versa. We do this for both Trend Persistence, and the VAWSI.
The VAWSI we also normalize, where rather than it being a 0-100 reading of trend direction and strength, we absolute it so that as long as a trend is strong, regardless of direction, it will have a higher reading. With these normalized values, we add them together and simply subtract the ATR measurement rather than having 1 divide it.
Here you can see how the different measurements add up. A lower final number suggests imminent reversal, and a higher final number suggests an untrendy or choppy market.
ATR is in orange, the Trend Persistence is blue, the VAWSI is purple, and the final amount is green.
We take this final number and depending on the current trend direction, we multiply it by either the Highest or Lowest source since the last crossup or crossdown. We then take the highest or lowest of this calculation, and have it be our Stop Loss or Take Profit. This number cannot be higher/lower than the previous source to ensure a rapid spike doesn't immediately close your position on a still continuing trend. As well, the threshold cannot be higher/ lower than the the specified Stop Loss and Take Profit
Only after the source has fully crossed these lines do we consider it a crossup or crossdown. We confirm this with a barstate.isconfirmed to prevent repainting. Next, each time there is a crossup or crossdown we enter a long or a short respectively and plot accordingly.
I have the strategy configured to "process on order close" to ensure an accurate backtesting result. You could also set this to false and add a 1 bar delay to the "if crossup" and "if crossdown" lines under strategy so that it is calculated based on the open of the next bar.
Final Notes
The amounts have been preconfigured for performance on RIOT 5 Minute timeframe. Other timeframes are viable as well. With a few changes to the parameters, this strategy has backtested well on NVDA, AAPL, TSLA, and AMD. I recommend before altering settings to try other timeframes first.
This script does not seem to perform nearly as well in typically untrendy and choppy markets such as crypto and forex. With some setting changes, I have seen okay results with crypto, but overfitting could be the cause there.
Thank you very much, and please enjoy.
MACD BB v2.00 Indicator CryptoPotato748The MACD BB v2.00 CryptoPotato748 is a custom technical analysis indicator for TradingView that combines the Moving Average Convergence Divergence (MACD) with Bollinger Bands to provide a powerful tool for identifying trend strength and potential trading signals. This indicator is designed to automatically adapt its parameters based on the selected time frame, making it versatile and suitable for various trading strategies and time horizons.
Features
MACD Calculation:
The MACD line is calculated using the difference between the 12-period and 26-period Exponential Moving Averages (EMAs).
The Signal line is the 9-period EMA of the MACD line.
These parameters automatically adjust based on the selected time frame to optimize performance.
Bollinger Bands:
Bollinger Bands are calculated based on the MACD line to identify overbought and oversold conditions.
The bands consist of a 20-period Simple Moving Average (SMA) of the MACD line, with upper and lower bands set 2 standard deviations away.
These parameters also adjust based on the selected time frame for better alignment with market conditions.
Adaptive Time Frames:
The indicator automatically adjusts its MACD and Bollinger Bands parameters based on the selected chart time frame, including 1 minute, 3 minutes, 5 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 12 hours, 1 day, 3 days, 1 week, and 1 month.
This ensures the indicator remains effective across various time frames without manual reconfiguration.
Visual Elements:
The upper and lower Bollinger Bands are plotted in gray, with a blue fill between them for easy visualization.
The MACD line is plotted with circle markers, colored lime when above the upper band and red when below the lower band.
A zero line is plotted in orange for reference.
Bar colors change to yellow when the MACD line is above the upper band (indicating a potential buy signal) and aqua when below the lower band (indicating a potential sell signal).
How to Use
Adding to Chart:
Copy and paste the script into the Pine Editor on TradingView.
Click "Add to Chart" to see the indicator in action.
Interpreting Signals:
MACD Above Upper Band (Lime): Indicates strong bullish momentum, potential buy signal.
MACD Below Lower Band (Red): Indicates strong bearish momentum, potential sell signal.
Yellow Bars: Suggest a potential buy condition.
Aqua Bars: Suggest a potential sell condition.
Adaptive Parameters:
The indicator automatically adjusts its parameters based on the selected time frame, ensuring optimal performance across different trading environments.
Absolute Move BandsOverview:
The Absolute Move Bands indicator calculates the absolute value of the expected return, also known as "momentum" by some traders, and then displays it with standard deviation bands. The indicator also shows a moving average and a Kalman filter of the absolute move. If you take the expected return, you get what many traders commonly call "momentum." Now, if you turn the negative values into positive values by getting the magnitude of the expected return, it shows the "strength or intensity of the expected return." A low value of the absolute value of the expected return shows that the expected return is close to 0, which means that there is no significant trending behavior. The higher the value, the higher the deviation is from the mean, indicating stronger trend moves in the expected return itself. This indicator then gets the standard score of the absolute value of the expected return and then gets the moving average and Kalman Filter.
This indicator is not a directional indicator, but it can help you time moves and determine the "strength" of the expected returns (also known as momentum).
Interpreting the Magnitude:
Low Values: A low absolute value of the expected return indicates that the expected return is close to 0, suggesting no significant trending behavior in the market.
High Values: A high absolute value indicates a strong deviation from the mean, reflecting stronger trend moves in the expected return itself.
Standard Score Calculation:
This indicator computes the standard score (z-score) of the absolute value of the expected return. The value shows how many standard deviations the absolute return is from the mean. This helps in identifying periods of extreme magnitude.
Moving Average and Kalman Filter:
Moving Average: The indicator calculates the moving average of the standard score to smooth out the short-term fluctuations and show the longer-term trends in the absolute returns.
Kalman Filter: Applied to further reduce noise and provide a clearer signal, it enhances the indicator's effectiveness in determining the strength of the expected returns.
Standard Deviation Bands
Purpose: The standard deviation bands help determine if the standard score is at an extreme low or high.
High Standard Score (+2 Standard Deviation Band): Indicates that the absolute value of the expected return is at a high level, suggesting a strong trend. This could mean that the trend is at its peak and might be nearing completion.
Low Standard Score (-2 Standard Deviation Band): Indicates that the absolute value of the expected return is at a low level, suggesting minimal or no trending behavior. This could imply that the expected return is around 0, and a new trend (in any direction) may start soon.
How to interpret and use this indicator
Two ways will be discussed on how you can use this indicator. First of all lets go back over the interpretation of the standard score and bands.
High Standard Score: Indicates that the absolute value is significantly higher than usual, which suggest a strong trend which may be nearing its peak. Some traders who entered a trade at a low standard score value might want to consider taking profits or preparing for a potential reversal.
Low Standard Score: Indicates that the absolute value is significantly low, close to 0, which suggest minimal trending behavior and a new trend or move may soon start.
This indicator shouldn't be used alone; you may need an indicator that shows you the trend with an expected return indicator or a "momentum" indicator, because all this shows you is the strength of the trend or "momentum." So let's say that if you see that the standard score is low and the Kalman filter is increasing, then this shows that a trend may start soon, so you can use the "momentum" indicator and enter with whatever the trend is on.
Another way to use the indicator is to trade extreme occurrences. If on an indicator that shows the expected returns, or "momentum," and its at an extreme standard deviation occurrence level like -2 standard deviation from the mean, and the standard score is at 2 standard deviation (the top band), and the Kalman filter starts decreasing, then the downtrend may be over and you could place a long.
Percentage GridPercentage Grid Indicator
Description:
The Percentage Grid indicator is designed to assist traders in identifying significant support and resistance levels based on yearly percentage changes. This indicator plots horizontal lines on the chart from the start of the year, allowing you to customize how much percentage each line represents. Currently, you can set up to 5 horizontal lines, each representing a different percentage change from the beginning of the year.
For instance, when applied to the SBI Bank stock, you can customize the lines to display various percentage changes from the start of the year, such as 20%, 25%, and up to 35%, as the SBIN stock is currently trading around these levels. This visualization helps traders to easily identify key levels where price action tends to react, providing valuable insights for making trading decisions.
Principles of Trading Technical Analysis:
The Percentage Grid indicator is grounded in the principle of support and resistance levels, which are fundamental concepts in technical analysis. These levels are specific price points on a chart that tend to act as barriers, preventing the price from getting pushed in a certain direction. The indicator helps in:
Identifying Support Levels: Price levels where a downtrend can be expected to pause due to a concentration of buying interest.
Identifying Resistance Levels: Price levels where an uptrend can be expected to pause due to a concentration of selling interest.
By customizing and plotting percentage-based horizontal lines, the indicator highlights these critical levels based on the percentage change from the start of the year.
How to Use:
Add the Indicator to Your Chart:
Search for "Percentage Grid" in the TradingView indicator library and add it to your chart.
Customize Percentage Levels:
Access the indicator settings to customize the percentage change each line represents.
You can set up to 5 different percentage levels. For example, you can set lines at 20%, 25%, 30%, 35%, and 40%.
Interpret the Grid Lines:
The plotted lines will represent the specified percentage changes from the start of the year.
Use these lines to identify potential support and resistance levels where price action is likely to react.
Practical Application:
Look for price bounces or reversals around these levels, which can indicate strong support or resistance.
Combine the Percentage Grid with other technical analysis tools, such as moving averages or trend lines, to confirm potential trading opportunities.
Example:
In the accompanying screenshot, the Percentage Grid is applied to the SBI Bank stock. The lines are set to display 20%, 25%, 30%, 35%, and 40% changes from the start of the year. Notice how the price action respects these levels, providing clear areas where support and resistance are evident.
By incorporating the Percentage Grid into your trading strategy, you can enhance your ability to identify key price levels and make more informed trading decisions.
Happy Trading!
Standard Error Bands**Standard Error Bands Indicator: A Statistically Robust Tool for Trend Analysis**
The Standard Error Bands (SEB) indicator is a powerful technical analysis tool designed to help traders identify and assess trends with greater accuracy. Unlike traditional band indicators (e.g., Bollinger Bands) that rely on price averages, SEB leverages linear regression and statistical measures of volatility to offer deeper insights into market dynamics.
**How It Works**
1. **Linear Regression:** The indicator first calculates a linear regression line to model the underlying price trend. This line represents the "best fit" of price data over the specified lookback period.
2. **Standard Error:** Next, it calculates the standard error of the regression. This statistical measure quantifies the average distance between actual prices and the regression line, effectively acting as a volatility gauge.
3. **Smoothing:** Both the linear regression line and the standard error values are smoothed using a Simple Moving Average (SMA) to reduce noise and enhance the visual clarity of the bands.
4. **Band Construction:** The upper and lower bands are formed by adding/subtracting a multiple of the smoothed standard error from the smoothed linear regression line. The default multiplier is 2, representing approximately 95% of price action expected within the bands under normal market conditions.
**Key Insights**
* **Trend Strength:** Tight bands suggest a strong, well-defined trend with low volatility. Prices tend to adhere closely to the regression line, indicating a high probability of trend continuation.
* **Trend Weakness/Change:** Widening or expanding bands signal increased volatility and potential trend weakness. Prices deviating from the regression line may suggest an impending trend reversal or a shift into a sideways consolidation phase.
* **Entry/Exit Signals:**
* Consider entering a trade when prices break out of the bands in the direction of the trend, especially if the bands were previously tight.
* Conversely, consider exiting a trade when prices pierce the bands against the trend or when the bands start to widen significantly.
**Use Cases**
* **Trend Identification:** SEB can help traders identify trends earlier and more accurately than moving average-based indicators.
* **Trend Confirmation:** The bands can be used to confirm the validity and strength of an existing trend.
* **Volatility Assessment:** Changes in band width provide valuable insights into market volatility, aiding risk management decisions.
* **Entry/Exit Timing:** SEB can be incorporated into trading strategies to generate timely entry and exit signals.
**Important Considerations**
* **Parameter Optimization:** Experiment with different lookback periods, smoothing values, and standard error multipliers to find the optimal settings for your preferred trading style and market conditions.
* **Supplementary Indicators:** Combine SEB with other technical indicators (e.g., momentum oscillators, volume analysis) for a more comprehensive market assessment.
* **Backtesting:** Thoroughly backtest any SEB-based trading strategy to ensure its effectiveness before deploying it in live markets.
**Disclaimer:** Technical indicators like SEB are valuable tools but should not be used in isolation. Always consider price action or fundamental factors and risk management principles when making trading decisions.
Smart Money Analysis with Golden/Death Cross [YourTradingSensei]Description of the script "Smart Money Analysis with Golden/Death Cross":
This TradingView script is designed for market analysis based on the concept of "Smart Money" and includes the detection of Golden Cross and Death Cross signals.
Key features of the script:
Moving Averages (SMA):
Two moving averages are calculated: a short-term (50 periods) and a long-term (200 periods).
The intersections of these moving averages are used to determine Golden Cross and Death Cross signals.
High Volume:
The current trading volume is analyzed.
Periods of high volume are identified when the current volume exceeds the average volume by a specified multiplier.
Support and Resistance Levels:
Key support and resistance levels are determined based on the highest and lowest prices over a specified period.
Buy and Sell Signals:
Buy and sell signals are generated based on moving average crossovers, high volume, and the closing price relative to key levels.
Golden Cross and Death Cross:
A Golden Cross occurs when the short-term moving average crosses above the long-term moving average.
A Death Cross occurs when the short-term moving average crosses below the long-term moving average.
These signals are displayed on the chart with text color changes for better visualization.
Using the script:
The script helps traders visualize key signals and levels, aiding in making informed trading decisions based on the behavior of major market players and technical analysis.
Custom candle lighting(CCL) © 2024 by YourTradingSensei is licensed under CC BY-NC-SA 4.0. To view a copy of this license.
Volume Distribution (Heat Map)This Pine Script indicator, "Volume Distribution (Heat Map)" is designed to visualize the distribution of volume across different price levels over a specified lookback period. Here's a detailed breakdown of its functionality and features:
Indicator Overview
User Inputs
Length: The lookback period for analysis, defaulting to 500 bars.
Source: The price source used for calculations (default is the close price).
Color Intensity: Adjusts the intensity of the heatmap colors, with a default value of 25.
Lines Width: The width of the plotted lines, with a default value of 10.
Main Color: The main color used for the heatmap (default is lime).
Logic
The script iterates through the number of bins, calculates the volume for each bin between highest and lowest prices for length period, and updates the corresponding bin in the freq array if the current bar is allowed.
If the current bar is the last bar, the script plots lines and labels based on the volume distribution.
Heatmap Lines:
Solid lines colored based on the volume in each bin, using a gradient from no color to the main color based on amount of volume.
Highest Volume Line:
A dashed red line indicating the bin with the highest volume.
Labels:
Labels for the highest and lowest prices and the volume at the highest volume bin.
Plots
Highest Price Plot: Plots the highest price within the lookback period if the current bar is within the allowed range.
Lowest Price Plot: Plots the lowest price within the lookback period if the current bar is within the allowed range.
Summary
This indicator provides a visual representation of where trading volume is concentrated across different price levels, forming a heatmap. The highest volume level is highlighted with a dashed red line and a label indicating the volume at that level. This can help traders identify significant price levels where trading activity is clustered.
The "Volume Distribution (Heat Map)" indicator is a valuable tool for traders looking to enhance their technical analysis by incorporating volume data into their price charts. It provides a clear and visual representation of where market participants are most active, aiding in better-informed trading decisions.
Heikin-Ashi Band Proximity IndicatorHeikin-Ashi Band Proximity Indicator
Overview:
The Heikin-Ashi Band Proximity Indicator is a an analytical tool engineered to pinpoint critical price junctures where the Heikin-Ashi closing values align with the upper and lower thresholds of the Dynamic Adaptive Regression Bands . This indicator delineates these intersections through distinct green and red lines plotted over the last 100 candles, demarcating prospective support and resistance zones.
Purpose:
This indicator helps traders identify potential buy and sell zones based on proximity to dynamically calculated bands using Heikin-Ashi smoothed prices combined with linear regression and standard deviation calculations.
How It Works:
- Heikin-Ashi Transformation: Smooths price data to help isolate trends and reversals, reducing market noise and highlighting clearer trends.
- Regression Bands: Calculates the central regression line and deviations to form adaptive bands that act as dynamic levels of support and resistance.
- Color-Coded Indications: Green lines typically denote zones where prices may receive upward support, enhancing the likelihood of a price increase, while red lines suggest probable resistance zones where price pullbacks or stagnation are anticipated.
Trading Potential Application:
- Buy Signal: When the Heikin-Ashi close approaches the lower green band, it might indicate a potential upward reversal.
- Sell Signal: Conversely, proximity to the upper red band may suggest a downward reversal.
- Market Behavior: When prices diverge from these bands without surpassing them, they frequently revert to these levels, indicating that the bands serve as persistent attractors of price, exerting a gravitational pull over extended periods. This behavior underscores the bands' role in stabilizing price movements by establishing persistent points of reversion within the market's volatility landscape.
Calculation Details:
- ha_close is computed as the average of the open, high, low, and close, which smoothens the price series.
- Regression lines and deviations are calculated to create bands that adapt to recent price actions, providing dynamic support and resistance levels.
Usage:
Useful for traders looking for an indicator to enhance their decision-making by identifying potential entry and exit points based on price stability and volatility. The clear, color-coded system aids in quick decision-making under various market conditions.
Conclusion:
The Heikin-Ashi Band Proximity Indicator is invaluable for traders aiming to capitalize on price movements near critical levels. Its methodology provides a unique approach to understanding market dynamics and enhancing trading strategies.
Candle Strength Oscillator by SyntaxGeekThis candle strength oscillator displays a smoothed rolling difference between the body range (close and open) and total candle range (high and low).
When candles have small bodies, such as a doji, it can indicate weakness, when candles have essentially little to no wicks it can indicate strength.
There are two modes of display for the strength trend to show potential exhaustion on either side, bollinger bands and donchian channels. Each has their own pros and cons but as most are familiar with bollinger bands this is the default.
Another feature is the ATR measurement, which can assist in displaying an overall reduction in range volatility when comparing historical price movements to current oscillations.
The zero line can show some importance with regards to the peaks and valleys of the main measurement, when everything is trending and there's a reversal, if the zero line isn't broken it could be considered a trend continuation pullback vs a complete reversal.
Trend arrows and bar coloring are available but should not be considered trade signals for entry and exit, merely just another way of viewing the lower study information.
As the raw data of each candle measurement is quite noisy, the entire dataset is passed through an HMA smoothing process, if more options are requested I'll consider adding them.
Thanks for view my script and happy trading!
Moving Average Bands with Signals [UAlgo]The "Moving Average Bands with Signals combines various moving average types with ATR-based bands to help traders identify potential support and resistance levels.
It plots moving average bands with upper and lower support/resistance levels based on the Average True Range (ATR) and user-defined settings.Additionally, the script generates buy/sell signals based on price crossing above or below the bands.
🔶 Key Features
Multiple Moving Average Types:
Supports various moving average calculations including Arnaud Legoux Moving Average (ALMA), Exponential Moving Average (EMA), Double Exponential Moving Average (DEMA), Triple Exponential Moving Average (TEMA), Kaufman Adaptive Moving Average (KAMA), Hull Moving Average (HMA), Least Squares Moving Average (LSMA), Simple Moving Average (SMA), Triangular Moving Average (TMA), Volume-Weighted Moving Average (VWMA), Weighted Moving Average (WMA), and Zero-Lag Moving Average (ZLMA).
Customizable ATR Bands:
Integrates the Average True Range (ATR) to calculate dynamic support and resistance bands around the moving average. The multiplier for the bands is user-adjustable, allowing for finer control over the sensitivity and width of the bands.
Signal Generation:
Provides visual signals on the chart when the price interacts with the support or resistance bands. Users can choose between using the wick or the close price to generate these signals, adding an extra layer of customization based on their trading style.
Flexible Input Parameters:
Allows users to input parameters for moving average length, ATR length, band multiplier, and signal type. Additional settings are available for specific moving average types, such as ALMA's offset and sigma, KAMA's fast and slow periods, and LSMA's offset.
🔶 Disclaimer
This script is provided for educational purposes only and should not be considered financial advice.
Trading financial instruments involves substantial risk and can result in significant financial losses.
The script’s performance in the past is not indicative of future results, and no guarantees are made regarding its accuracy, reliability, or performance.
Taiwan Stock Limit Up/Down Calculator[fitfatq]1.Description:
This script is designed to calculate the limit up and limit down prices for Taiwan stock market securities based on the previous day's closing prices. It incorporates the specific tick size rules used in the Taiwan stock market to ensure accurate and compliant price adjustments.
2.Key Features:
Tick Size Rules:
The script applies different tick sizes depending on the price range of the stock, adhering to Taiwan stock market regulations. For example:
Price < 10: Tick size = 0.01
Price < 50: Tick size = 0.05
Price < 100: Tick size = 0.1
Price < 500: Tick size = 0.5
Price < 1000: Tick size = 1
Price >= 1000: Tick size = 5
Calculation Methodology:
Previous Close: The script retrieves the previous day's closing price.
Initial Limit Prices: It calculates the initial limit up and limit down prices by multiplying the previous close by 1.1 and 0.9, respectively.
Adjustments for Tick Size: The script adjusts these initial prices to the nearest valid price based on the defined tick size rules, ensuring that the adjusted prices do not cross tick size boundaries.
Adjustments to Prevent Crossing Tick Size Boundaries:
If the adjusted limit prices fall into a different tick size range, further adjustments are made to align with the appropriate tick size.
3.Usage:
This script is useful for traders and investors in the Taiwan stock market to quickly determine the limit up and limit down prices for any given security.
It is particularly beneficial for day traders and scalpers who need to know these critical price levels for their trading strategies.
4.How It Works:
The script uses the request.security function to get the previous day's close price.
It defines a function getTickSize to determine the appropriate tick size based on the stock price.
The adjustPrice function then adjusts the initial limit prices to conform to the tick size rules, ensuring accurate and regulatory-compliant limit prices.
Note: This script is closed-source, but it provides transparency in its methodology to help users understand the underlying calculations and how to utilize it effectively in their trading decisions.
[MidasAlgo] Trend OscillatorThe Trend Oscillator indicator is a powerful tool that combines the strengths of Bollinger Bands and Keltner Channels to provide a comprehensive view of market trends and volatility. By integrating these two popular indicators, the Midas BB Trend offers a more nuanced and dynamic analysis of price movements, helping traders make more informed decisions.
Key Features:
Bollinger Bands and Keltner Channels Fusion:
The Midas BB Trend uses the middle bands of both Bollinger Bands and Keltner Channels to calculate upper and lower Midas Bands. This fusion captures the benefits of both indicators, providing a balanced view of market volatility and trend strength.
Dynamic Trend Analysis:
The indicator calculates the BBTrendMidas value by comparing the differences between the upper and lower Midas Bands. This value is then normalized by the short-term moving average, offering a clear and dynamic representation of market trends.
Customizable Parameters:
Users can adjust the lengths of the Bollinger Bands and Keltner Channels, the standard deviation multiplier, and the ATR length. This flexibility allows traders to tailor the indicator to their specific trading strategies and market conditions.
Filter Range Highlighting:
The Midas BB Trend includes a filter range feature, where users can set high and low thresholds. When the BBTrendMidas value falls within this range, the histogram bars are colored dark grey, indicating periods of low volatility or neutral market conditions.
Clear Visual Representation:
The indicator's histogram uses a color-coded system to signify trend strength and direction. Pink and blue colors represent positive and negative trends, respectively, with stronger colors indicating more significant trends.
How to Use:
Identify Trend Strength:
Look for histogram bars colored in strong pink or blue to identify robust positive or negative trends. These signals can help confirm trend direction and strength, aiding in entry and exit decisions.
Monitor Neutral Periods:
Pay attention to the dark grey bars within the filter range. These indicate periods of low volatility or indecisive market conditions, suggesting caution or potential sideways movement.
Customize for Optimal Performance:
Adjust the input parameters to fit your trading strategy and the specific asset you are analyzing. The default settings provide a balanced approach, but fine-tuning these values can enhance the indicator's effectiveness for your unique needs.
The Midas BB Trend is a versatile and insightful indicator, perfect for traders looking to combine the robust features of Bollinger Bands and Keltner Channels into a single, dynamic tool. Use it to enhance your market analysis, identify key trends, and make more informed trading decisions.
BBTrend w SuperTrend decision - Strategy [presentTrading]This strategy aims to improve upon the performance of Traidngview's newly published "BB Trend" indicator by incorporating the SuperTrend for better trade execution and risk management. Enjoy :)
█Introduction and How it is Different
The "BBTrend w SuperTrend decision - Strategy " is a trading strategy designed to identify market trends using Bollinger Bands and SuperTrend indicators. What sets this strategy apart is its use of two Bollinger Bands with different lengths to capture both short-term and long-term market trends, providing a more comprehensive view of market dynamics. Additionally, the strategy includes customizable take profit (TP) and stop loss (SL) settings, allowing traders to tailor their risk management according to their preferences.
BTCUSD 4h Long Performance
█ Strategy, How It Works: Detailed Explanation
The BBTrend strategy employs two key indicators: Bollinger Bands and SuperTrend.
🔶 Bollinger Bands Calculation:
- Short Bollinger Bands**: Calculated using a shorter period (default 20).
- Long Bollinger Bands**: Calculated using a longer period (default 50).
- Bollinger Bands use the standard deviation of price data to create upper and lower bands around a moving average.
Upper Band = Middle Band + (k * Standard Deviation)
Lower Band = Middle Band - (k * Standard Deviation)
🔶 BBTrend Indicator:
- The BBTrend indicator is derived from the absolute differences between the short and long Bollinger Bands' lower and upper values.
BBTrend = (|Short Lower - Long Lower| - |Short Upper - Long Upper|) / Short Middle * 100
🔶 SuperTrend Indicator:
- The SuperTrend indicator is calculated using the average true range (ATR) and a multiplier. It helps identify the market trend direction by plotting levels above and below the price, which act as dynamic support and resistance levels. * @EliCobra makes the SuperTrend Toolkit. He is GOAT.
SuperTrend Upper = HL2 + (Factor * ATR)
SuperTrend Lower = HL2 - (Factor * ATR)
The strategy determines market trends by checking if the close price is above or below the SuperTrend values:
- Uptrend: Close price is above the SuperTrend lower band.
- Downtrend: Close price is below the SuperTrend upper band.
Short: 10 Long: 20 std 2
Short: 20 Long: 40 std 2
Short: 20 Long: 40 std 4
█ Trade Direction
The strategy allows traders to choose their trading direction:
- Long: Enter long positions only.
- Short: Enter short positions only.
- Both: Enter both long and short positions based on market conditions.
█ Usage
To use the "BBTrend - Strategy " effectively:
1. Configure Inputs: Adjust the Bollinger Bands lengths, standard deviation multiplier, and SuperTrend settings.
2. Set TPSL Conditions: Choose the take profit and stop loss percentages to manage risk.
3. Choose Trade Direction: Decide whether to trade long, short, or both directions.
4. Apply Strategy: Apply the strategy to your chart and monitor the signals for potential trades.
█ Default Settings
The default settings are designed to provide a balance between sensitivity and stability:
- Short BB Length (20): Captures short-term market trends.
- Long BB Length (50): Captures long-term market trends.
- StdDev (2.0): Determines the width of the Bollinger Bands.
- SuperTrend Length (10): Period for calculating the ATR.
- SuperTrend Factor (12): Multiplier for the ATR to adjust the SuperTrend sensitivity.
- Take Profit (30%): Sets the level at which profits are taken.
- Stop Loss (20%): Sets the level at which losses are cut to manage risk.
Effect on Performance
- Short BB Length: A shorter length makes the strategy more responsive to recent price changes but can generate more false signals.
- Long BB Length: A longer length provides smoother trend signals but may be slower to react to price changes.
- StdDev: Higher values create wider bands, reducing the frequency of signals but increasing their reliability.
- SuperTrend Length and Factor: Shorter lengths and higher factors make the SuperTrend more sensitive, providing quicker signals but potentially more noise.
- Take Profit and Stop Loss: Adjusting these levels affects the risk-reward ratio. Higher take profit percentages can increase gains but may result in fewer closed trades, while higher stop loss percentages can decrease the likelihood of being stopped out but increase potential losses.
CPR LinesThe "CPR Lines" script, written in Pine Script version 5, is designed for use in the TradingView platform to help traders visualize Central Pivot Range (CPR) levels on their price charts. This script calculates and plots three essential pivot levels based on the prior trading day's high, low, and close prices, providing traders with key reference points for potential support and resistance levels in the current trading session.
Key Features:
Prior Day's Data Calculation:
The script retrieves the high, low, and close prices of the previous trading day using the request.security function. These values are crucial for calculating the CPR levels.
Central Pivot Line (CPL):
The CPL is calculated as the average of the prior day's high, low, and close prices. It serves as the primary pivot point around which the price action is likely to revolve.
Bottom Central Pivot (BCP):
The BCP is calculated as the average of the prior day's high and low prices. This level often acts as a support line in a bullish trend.
Top Central Pivot (TCP):
The TCP is derived by adding the difference between CPL and BCP to the CPL itself. This level can serve as a resistance line in a bearish trend.
Plotting the CPR Levels:
The script plots the CPL, BCP, and TCP on the chart with distinct black lines for easy identification. Each line is labeled accordingly and plotted with a linewidth of 2 for better visibility.
This script aids traders by providing visual cues for key price levels, enhancing their ability to make informed trading decisions based on historical price movements. By incorporating these pivot points, traders can better predict potential price reactions and plan their trades accordingly.
IsAlgo - Ultra Trend Strategy► Overview:
The Ultra Trend strategy is designed to identify trend lines based on average price movement and execute trades when the price crosses the middle line, confirmed by an entry candle. This strategy combines ATR, Moving Averages, and customizable candlestick patterns to provide a versatile and robust trading approach.
► Description:
The Ultra Trend strategy employs a multi-faceted approach to accurately gauge market trends and execute trades. It combines the Average True Range (ATR) with trendline analysis and Moving Averages, providing a comprehensive view of market conditions. The strategy uses ATR to measure market volatility and the average price movement, helping to set dynamic thresholds for trend detection and adapting to changing market conditions. The slope of the trend is calculated based on the angle of price movement, which aids in identifying the strength and direction of the trend.
Additionally, a Moving Average is used to filter trades, ensuring alignment with the broader market direction and reducing false signals, thereby enhancing trade accuracy.
Traders can configure the strategy to enter trades in the direction of the trend, against the trend, or both. This feature enhances the adaptability of the Ultra Trend strategy, making it suitable for various trading styles and market environments.
↑ Long Entry:
A long trade is executed when the entry candle crosses and closes above the trend line. This indicates a bullish market condition, signaling an opportunity to enter a buy position.
↓ Short Entry:
A short trade is executed when the entry candle crosses and closes below the trend line. This indicates a bearish market condition, signaling an opportunity to enter a sell position.
✕ Exit Conditions:
The strategy offers multiple stop-loss options to manage risk effectively. Traders can set stop-loss levels using fixed pips, ATR-based calculations, the higher/lower price of past candles, or close a trade if a candle moves against the trade direction.
Up to three take profit levels can be set using methods such as fixed pips, ATR, and risk-to-reward ratios. This allows traders to secure profits at various stages of the trade.
A trailing stop feature adjusts the stop loss as the trade moves into profit, locking in gains while allowing the trade to continue capturing potential upside. Additionally, a break-even feature moves the stop loss to the entry price once a certain profit level is reached, protecting against losses.
Trades can also be closed when a trend change is detected or when a candle closes outside a predefined channel, ensuring that positions are exited promptly in response to changing market conditions.
► Features and Settings:
⚙︎ Trend: Users can configure the trend direction, length, factor, and slope, allowing for precise control over how trends are identified and followed.
⚙︎ Moving Average: An Exponential Moving Average (EMA) can be employed to confirm the trend direction indicated by the trend lines. This provides further assurance that the trend line breakout is not a false signal. The EMA can be enabled or disabled based on user preference.
⚙︎ Entry Candle: The entry candle is the candle that breaks the trend line, signaling an entry opportunity. Users can specify the minimum and maximum size of the candle's body and the ratio of the body to the entire candle size. This ensures that only significant breakouts trigger trades.
⚙︎ Trading Session: This feature allows users to define specific trading hours during which the strategy should operate, ensuring trades are executed only during preferred market periods.
⚙︎ Trading Days: Users can specify which days the strategy should be active, offering the flexibility to avoid trading on specific days of the week.
⚙︎ Backtesting: Enables a backtesting period during which the strategy can be tested over a selected start and end date. This feature can be deactivated if not needed.
⚙︎ Trades: This includes configuring the direction of trades (long, short, or both), position sizing (fixed or percentage-based), the maximum number of open trades, and limitations on the number of trades per day or based on trend.
⚙︎ Trades Exit: The strategy offers various exit methods, such as setting profit or loss limits, specifying the duration a trade should remain open, or closing trades based on trend reversal.
⚙︎ Stop Loss: Various stop-loss methods are available, including a fixed number of pips, ATR-based, or using the highest or lowest price points within a specified number of previous candles. Additionally, trades can be closed after a specific number of candles move in the opposite direction of the trade.
⚙︎ Break Even: This feature adjusts the stop loss to a break-even point once certain conditions are met, such as reaching predefined profit levels, to protect gains.
⚙︎ Trailing Stop: The trailing stop feature adjusts the stop loss as the trade moves into profit, securing gains while potentially capturing further upside.
⚙︎ Take Profit: Up to three take-profit levels can be set using various methods, such as a fixed amount of pips, ATR, or risk-to-reward ratios based on the stop loss. Alternatively, users can specify a set number of candles moving in the direction of the trade.
⚙︎ Alerts: The strategy includes a comprehensive alert system that informs the user of all significant actions, such as trade openings and closings. It supports placeholders for dynamic values like take-profit levels and stop-loss prices.
⚙︎ Dashboard: A visual display provides detailed information about ongoing and past trades on the chart, helping users monitor the strategy's performance and make informed decisions.
► Backtesting Details:
Timeframe: 5-minute US30 chart
Initial Balance: $10,000
Order Size: 4% of equity per trade
Commission: $0.05 per contract
Slippage: 5 ticks
Stop Loss: ATR-based
Open Interest liquidation map [Ox_kali]This script is inspired by @LeviathanCapital work on aggregating Open Interest , as presented in the Open Interest Suite Aggregated script. This script aims to provide a liquidation map of Open Interest by identifying significant anomalies across multiple trading platforms. By integrating data from Binance, BitMEX, and Kraken, this script tries to offer a comprehensive and detailed view of Open Interest movements and attempts to define zones of interest.
Key Points
1. Multiple Data Sources : The script retrieves Open Interest data from several trading platforms, including Binance (USDT, USD, BUSD), BitMEX (USD, USDT), and Kraken (USD).
2. Anomaly Detection : Utilizes a simple moving average (SMA) to calculate the average size of Open Interest candles and identify anomalies based on a user-specified size factor.
3. Background Coloring : Offers an option to color the background of the charts based on detected anomalies, allowing for clear visualization of significant movements.
4. Dynamic Support and Resistance Zones : Defines and dynamically updates support and resistance zones based on Open Interest anomalies.
5. Alerts : Configures alerts to notify the user when an Open Interest anomaly is detected.
Trading Utility
This script can be useful for monitoring significant changes in Open Interest and potential liquidation zones across multiple platforms. The main trading applications include:
1. Identifying Liquidation Points : By detecting Open Interest anomalies, it is possible to identify potential liquidation points where significant price movements might occur.
2. Multi-Platform Analysis : By aggregating Open Interest data from multiple platforms, a more comprehensive market overview is obtained.
3. Detecting Support and Resistance Zones : Dynamic support and resistance zones help identify key price levels where trend reversals might occur.
4. Customized Alerts: Anomaly alerts allow for automated responses to market changes.
Conclusion
The “Open Interest liquidation map ” script is an experimental tool for analyzing Open Interest across multiple trading platforms. Inspired by Leviathan’s work, this script attempts to identify liquidation and interest zones. This is an experimental version, and I welcome any comments and feedback for improvement.
Please note that the Open Interest liquidation map is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
Trend Strength Signals [AlgoAlpha]🌟Introducing the Trend and Strength Signals indicator by AlgoAlpha ! This tool is designed to help you identify trends and gauge market strength with precision and ease. 📈🚀
🛠 Customizable Parameters : Adjust the period, standard deviation multiplier, gauge size, and colors to fit your trading style.
📊 Trend Detection : Visualize trends with clear color-coded signals for uptrends and downtrends.
📈 Strength Gauge : Assess market strength with a dynamic gauge that adapts to the current price action.
🔔 Alerts : Set alerts for bullish and bearish trend crossovers and take profit points to stay ahead of the market.
🎨 Visual Enhancements : Enjoy a clutter-free chart with the integration of plot shapes, color fills, and gradient gauges.
🚀 Quick Guide to Using the Trend and Strength Signals Indicator
Maximize your trading with the Trend and Strength Signals indicator by following these streamlined steps! 🎯✨
🛠 Add the Indicator : Add the indicator to your favorites. Customize settings like period, standard deviation multiplier, and colors to fit your trading style.
📊 Market Analysis : Observe the color-coded candles and gauge to understand market trend direction and strength. Use the alerts for key trading signals.
🔔 Alerts : Enable notifications for trend crossovers and take profit points to catch trading opportunities without constantly monitoring the chart.
⚙️ How it works
This indicator calculates the moving average and standard deviation of the closing price over a customizable period to identify the upper and lower bounds. When the price crosses these bounds, it signals an uptrend or downtrend. The gauge measures market strength by comparing the price to the moving average and scaling it over a customizable range, while the underlying logic uses concepts from the Bollinger Bands, this indicator gives a unique perspective on price behavior through added features and signals derived from it.
Unleash the power of trend and strength analysis with this comprehensive indicator! Happy trading! 🚀📈✨
MTF Bollinger BandWidth [CryptoSea]The MTF Bollinger BandWidth Indicator is an advanced analytical tool crafted for traders who need to gauge market volatility and trend strength across multiple timeframes. This powerful indicator leverages the Bollinger BandWidth concept to provide a comprehensive view of price movements and volatility changes, making it ideal for those looking to enhance their trading strategies with multi-timeframe analysis.
Key Features
Multi-Timeframe Analysis: Allows users to monitor Bollinger BandWidth across various timeframes, providing a macro and micro perspective on market volatility.
Pivot Point Detection: Identifies crucial high and low pivot points, offering insights into potential support and resistance levels. Pivot points are dynamic and adjust based on the timeframe viewed, reflecting short-term fluctuations or longer-term trends.
Customizable Parameters: Includes options to adjust the length of the moving average, the standard deviation multiplier, and more, enabling traders to tailor the tool to their specific needs.
Dynamic Color Coding: Utilizes color changes to indicate different market conditions, aiding in quick visual assessments.
In the example below, notice how changes in BBW across different timeframes provide early signals for potential volatility increases or decreases.
How it Works
Calculation of BandWidth: Measures the percentage difference between the upper and lower Bollinger Bands, which expands or contracts based on market volatility.
High and Low Pivot Tracking: Automatically calculates and tracks the pivots in BBW values, which are critical for identifying turning points in market behavior. High and low levels will change depending on the timeframe, capturing distinct market behaviors from granular movements to broad trends.
Visual Alerts and Table Display: Highlights significant changes in BBW with visual alerts and provides a detailed table view for comparison across timeframes.
In the example below, BBW identifies a significant contraction followed by an expansion, suggesting a potential breakout.
Application
Strategic Market Entry and Exit: Assists traders in making well-informed decisions about when to enter and exit trades based on volatility cues.
Trend Strength Assessment: Helps in determining the strength of the prevailing market trend through detailed analysis of expansion and contraction periods.
Adaptable to Various Trading Styles: Suitable for day traders, swing traders, and long-term investors due to its customization capabilities and effectiveness across different timeframes.
The MTF Bollinger BandWidth Indicator is a must-have in the arsenal of traders who demand depth, accuracy, and responsiveness in their market analysis tools. Enhance your trading decisions by integrating this sophisticated indicator into your strategy to navigate the complexities of various market conditions effectively.
Dynamic Adaptive Regression BandsThis script provides a dynamic adaptive regression band indicator that adjusts based on recent market volatility. The regression bands are calculated using a length parameter adapted to the ATR (Average True Range) to ensure responsiveness to market conditions.
Key Features:
Dynamic Length Adjustment: The length of the regression calculation is adjusted based on the ATR to reflect current market volatility.
Multiple Bands: The script plots upper and lower bands at different ratios (1.618, 2.618, and 4.236) to provide comprehensive support and resistance levels.
Detailed Fillings: The areas between bands are filled with different colors to visualize different levels of volatility and trend strength.
Usage:
Regression Line: The main regression line follows the general trend of the price.
Upper/Lower Bands: These bands represent volatility-adjusted support and resistance levels.
Extended Bands: Additional bands at different ratios provide extended support and resistance zones for further trend analysis.
Original Script Credit:
This script is inspired by the original "Regr Linear Bands" script by MarcoValente, published on Jan 15, 2017. The original script starts from a linear regression and uses Fibonacci parameters to add bands above and below. The original work incorporates range and volatility, making the price move between bands of the same color. The middle line (linear regression) serves as a good signal; after a break occurs, the price typically moves to the last or second last band.
