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Bands and Channels

Urika Confirmation IndicatorThe Urika Confirmation (UC) Indicator helps a user make a better decision about areas to enter the market for a trade. The indicated incorporates the highs and the lows of the price for a specific period. The information is depicted on this two-line indicator to show the direction of the price. The gap between the two lines is a cloud for determining the current position of the trade and staying in a trend. The two lines in the indicator are a signal line and a slow line: the price is likely bullish if the signal line crosses above the slow line while likely bearish if the signal line crosses below the slow line. One can enter a trade if the price is above the cloud while the signal line crosses above the slow line, This is an indication that the commodity or stock is bullish and vice versa for bearish. One can avoid trading when the price is in the cloud. UC Calculations: The signal line is the average high and low of the prices using the fast-length input. The slow length is the average of the past previous high and low prices using the slow-length input. Ways to Use the UC Indicator: It is convenient to use the indicator with Relative Strength Indicator. If the signal line crosses above the slow line -->> Bullish possibility (buy if RSI >= 55). It is a false buy/long signal if the cross occurs while RSI is below 55. If the slow line crosses above the signal line -->> Bearish possibility (short if RSI <= 45). It is a false short signal if the cross occurs while RSI is above 45. The indicator can be used at all timeframes. The user can use different settings to suit their way of trading. The indicator uses the concept of the Ichimoku Indicator to provide users with
Pine Script™ indicator
by DrZy
1
Bollinger Bands SignalsDescription: This indicator works well in trendy markets on long runs and in mean-reverting markets, at almost any timeframe. That said, higher timeframes are much preferred for their intrinsic ability to cut out noise. The example chart is in 3H TF. Be mindful, the script shows somewhat erratic jigsaw-like behaviour during consolidation periods when the price jumps up and down in indecision which way to go. Fortunately, there are scripts out there that detect such periods. You can choose between 4 Moving Averages, Vidya being the default. Period, Deviation and Bands Width parameters all of them affect the signal generation. For the Pine Script coder this script is pretty obvious. It uses a standard technical analysis indicator - Bollinger Bands - and appends it with a 'width' parameter and a signal generation procedure. The signal generation procedure is the heart of this script that keeps the script pumping signals. The BB width is used as a filter. You can use this procedure in your own scripts and it will continue generate signals according to your rules.
Pine Script™ indicator
by capissimo
2
Trend crossierHello there! I would like to share my script. This is S/R levels indicator based on custom range for each step used for computing minimum/maximum of the range. For example - we predefined step with 50 candles as one, after we have got the minimum and maximum of it - we come to the next 50 candles and do the same to it. Finaly - we have got 20 lines for 10 steps. After that - we set the ( SMA * mult) to have step between lines and if N of lines in range of step from eachother(if a+step > b and b+step > c ...) we call it a strong level. It is not my idea(but my code), so I do not claim the uniqueness of this idea (the customer asked me to code it, but I also read about this method in open sources before). The second thing - vectors of current trend direction on different timeframes. For this task I took the same ranges, but ema () of each range. After first step it has an array with N values. The next thing it does is take out "chain" one by one on each iteration. How does it do that? We take new AVG with neighbor values. If we have 10 length at start - after iteration it becomes 9. So it repeats computing till length is 2. After we have 2 points left - we can plot the line using indexes. This way we can see the trend direction on different timeframes. Feel free to use, change, put into another scripts. You can even never use it! The right to publish this particular code was issued by the customer. Have fun!
Pine Script™ indicator
by Arivadis
1
[blackcat] L3 Super Best Cost LineLevel: 3 Background As suggested by @hedan1, he made a suggestion: this indicator can be further optimized to develop a dull line to filter the overall direction, and then use the sensitive line as a confirmation signal to enter. One of my favourite tool to see fast trends which is simple but powerful. It runs under below market logic. Function With @hedan1's idea, the 1st thing i come up with is a two-layer structure: the inner sensitive part is the best cost line indicator, the outer layer is a supertrend indicator to control the overall trend direction. Best cost line is a tool to model the people's mood and preference in the market. I define a typical price as wcx, when wcx is above the best cost line, which means traders are willing to use higher price to buy, then if you long, you are following the trend and make profit. On the other hand, if wcx is below the best cost line, which means traders are NOT willing to pursue higher price (maybe due to continous stop loss or sth other), then you should at least not long or if you are agressive in style, you may consider short. That is it. Do you think it is simple and powerful enough? Remarks L: long entry, yellow XL: close long, fuchsia S: short entry, green XS: close short, red inner bullish: yellow color inner bearish: fuchsia color outer bullish: green color outer bearish: red color inner indicator : the best cost line outer indicator : supertrend also, i improved the display fucntinon remove some blur lines with linebr feature. Feedbacks are appreciated.
Pine Script™ indicator
by blackcat1402
6
Setup Max e Min Larry WilliansLarry Williams used this system to win the trading championship Hello friends, I bring a script with a trading strategy to be used in futures such as Index, Forex and Commodities. Developed by famous trader Larry Williams. In them we use two 3-period Simple Moving Averages (Arithmetic) (one with the high price, the other with the low price), and a 21-period Moving Average (Arithmetic) to determine the trend. This will form an average channel with the prices of the maximums and minimums of the last three candles. Best time charts use the strategy: from 5 minutes to 60 minutes. This strategy is quite simple. The 21 Moving Average will color according to the trend (Green for bullish, Red for bearish and Gray for transitions). The Script will signal the entry according to the trend by the colors of the candles and also by the signal: When green, the buy will be on the crossing of the lower Moving Average crossing the candlestick, and the exit will be on the crossing of the candlestick on the next Upper Moving Average. When red, the sell will be at the crossing of the Upper Moving Average crossing the candlestick, and the exit will be at the crossing of the candlestick on the next Lower Moving Average. When the Script signals the candle with a purple X, it means that the trend is changing and the entire open operation must be closed. This system has no Stop, so be careful when using it. Na linguagem do autor: Larry Williams usou esse sistema ganhar campeonato de trade Olá amigos, trago um script com uma estratégia de trade pra ser usada em futuros como Índice, Forex e Commodities. Desenvolvido pelo famoso trader Larry Willians. Neles usamos duas Médias Móveis Simples (Aritmética) de 3 períodos (uma com o preço da máxima, outra com o preço da mínima), e uma Média Móvel (Aritmética) de 21 períodos para determinar a tendência. Nisso vai formar uma canal de médias com os preços das máximas e mínimas dos últimos três candles. Melhores tempos gráficos usar a estratégia: de 5 minutos até 60 minutos. Essa estratégia é bem simples. A Média Móvel de 21 irá colorir de acordo com a tendência (Green pra alta, Red para baixa e Gray para transições). O Script irá sinalizar a entrada de acordo com a tendência pela cores dos candles e também pela sinalização: Quando green, a compra será no cruzamento da Média Móvel inferior cruzando o candle, e a saida será no cruzamento do candle na Média Móvel Superior seguinte. Quando red, a venda será no cruzamento da Média Móvel Superior cruzando o candle, e a saida será no cruzamento do candle na Média Móvel Inferior seguinte. Quando o Script sinaliza o candle com X purple, significa que a tendência está em mudança e deve ser fechada toda a operação em aberto. Este sistema não possui Stop, portando cuidado quanto a seu uso.
Pine Script™ indicator
by Cavuca-Trader
3
Triangular Trend Channel ATRTTCATR: Triangular Trend Channel ATR is a script to dynamically create a trend channel. It uses Moving Average & the Average True Range function to calculate support and resistance levels automatically. The MA choices available are: SMA = simple moving average EMA = exponentially weighted moving average RMA = moving average used in RSI WMA = weighted moving average VWMA = volume weighted moving average VWAP = volume weighted average price HMA = Hull moving average SWMA = symmetrically weighted moving average ALMA = Arnaud Legoux moving average The default setting inputs are: source = OHLC4 MA length = 20 MA signal = 10 ATR Multiply = 3 ALMA offset = 0.89 ALMA sigma = 5 Moving average type = VWMA Level 1 ATR = 1.236 Level 2 ATR = 2.382 Level 3 ATR = 3.5 Level 4 ATR = 4.618 Level 5 ATR = 5.786 The default setting colors are: Top = gray R4 = white R3 = green R2 = orange R1 = blue pivot = white (track pivot line = bullish is green, bearish is red) S1 = purple S2 = yellow S3 = red S4 = white Bottom = gray * This script uses altered pieces of code from my @Options360 TTC: Triangular Trend Channel and @TradingView "Intrabar Efficiency Ratio indicator". *
Pine Script™ indicator
by Options360
LNL Keltner CandlesLNL Keltner Candles This indicator plots mean reversion (reversal) arrows with custom painted candles based on the price touch or close above or below keltner channel limits (upper & lower bands). This study was created primarily for swing trading & higher time frames such as daily and weekly. Lower time frames might result in more false signals. Mean Reversal Arrows: 1. Reversal Arrow Up - If the price drops below the lower band extremes, reversal up is the trigger for a bullish mean reversion. 2. Reversal Arrow Down - Once the price reach the higher band extremes, reversal down is the trigger for a bearish mean reversion. The Concept of Mean Reversion: There are just two types of moves in any market: The market is either expanding from the mean or retracing back to the mean. These reversions & epxansions are happening across all types of markets. The goal of this study is to catch the powerful mean reversion from extremes back to the mean. Once the candles light up green / red, it is time to look for the reversal (purple) arrow which triggers the mean reversion setup. Mean reversion is not about catching the next big swing turn to new highs or lows. It is all about the base hits = the mean. So the target here is always the average price. The idea here is to catch the average market ebbs & flows, not the next home run. What Do I Mean by Mean? Mean is usually the average price from the last 20-30 bars. Basically something like a 20 MA or Keltner Channel or Bollinger Band midline are really good visual representators of the mean (average price). Hope it helps.
Pine Script™ indicator
by lnlcapital
12
XYZ Super Fibonacci Channel Cluster Simple setups Just input two different ema, X and Y. Multiple = input Phi factor (ex: 0.38 , 0.618 , 1.618 , 3.14) Usage Grouping movements into channels to identify trend acceleration and deceleration Example usability in the BTC/USD trading pair (timeframe = 1D) => Input Setups Source = hlc3 Multiplier = 2 X Ema = 13 Y Ema = 21 How to identify acceleration and deceleration? H_1 to H_2 => Bullish but no acceleration (because at same top level border). H_2 to H_3 => Bullish with acceleration (go up to another top level border). H_3 to H_4 / H_4 to H_5 => Bullish deceleration (because drop to another top level border). L_1 to L_2 => Bearish signal (because fall below EMA-super and touch the bottom border of Super Channel). L_2 to L_3 => Bearish acceleration (drop to another bottom level border). L_3 to L_4 => Bearish deceleration (go up to another bottom level border).
Pine Script™ indicator
by akaes62
Fibonacci Breakout Target LevelsFibonacci Extension Fibonacci Extension is a powerful technical analysis tool that traders use to predict where the market might find support and resistance. It is based on the Fibonacci sequence and uses levels that are found by extending the 23.6%, 38.2%, 50%, 61.8%, and 100% Fibonacci ratios from a swing high or low. These levels can be used to find possible areas of support and resistance, and traders often use them to figure out when to get into or get out of a trade. What does this indicator do? This indicator gets five levels of the Fibonacci Extension and uses it for both the low and the high. The default lookback period is 10 days, and it checks for the highest and lowest price in that period. Then it calculates the extension levels and plots them, and it also adds a line that shows you the current breakout target levels. How to use? The primary use intended for this indicator is to be used to determine possible breakout target levels. Let's say you are trading a range and a breakout happens. You can use this indicator to determine possible take-profit zones and possible support and resistance zones. Features: Change the lookback period for the Fibonacci Extension levels. Disable the Fibonacci Bands if you just want to see the FIB levels. You can also change the 5 levels and add different Fibonacci numbers. In this image, you can see how you can use this indicator to determine take-profit levels. The Fibonacci Extensions will determine potential support and resistance levels, which could be good places to exit your long or short positions.
Pine Script™ indicator
by Traders_Endeavors
ER-Adaptive ATR Limit Channels w/ States [Loxx]As simple as it gets, channels based on high, low and ATR distances, Shows possible short term support / resistance or can be used as a take profit/stop-loss in some trading systems. It does this by comparing high/low values of price to multiplied by a multiple of ATR to determine when the trend changes. States are included to change the sensitivity to trend changes. 1 is very sensitive, 3 is least sensitive. This uses Loxx's Expanded Source Types. You can read about them here: What is ER Adaptive ATR? Average True Range (ATR) is widely used indicator in many occasions for technical analysis . It is calculated as the RMA of true range. This version adds a "twist": it uses Perry Kaufman's Efficiency Ratio to calculate adaptive true range
Pine Script™ indicator
by loxx
6
Fair value bands / quantifytools— Overview Fair value bands, like other band tools, depict dynamic points in price where price behaviour is normal or abnormal, i.e. trading at/around mean (price at fair value) or deviating from mean (price outside fair value). Unlike constantly readjusting standard deviation based bands, fair value bands are designed to be smooth and constant, based on typical historical deviations. The script calculates pivots that take place above/below fair value basis and forms median deviation bands based on this information. These points are then multiplied up to 3, representing more extreme deviations. By default, the script uses OHLC4 and SMA 20 as basis for the bands. Users can form their preferred fair value basis using following options: Price source - Standard OHLC values - HL2 (High + low / 2) - OHLC4 (Open + high + low + close / 4) - HLC3 (High + low + close / 3) - HLCC4 (High + low + close + close / 4) Smoothing - SMA - EMA - HMA - RMA - WMA - VWMA - Median Once fair value basis is established, some additional customization options can be employed: Trend mode Direction based Cross based Trend modes affect fair value basis color that indicates trend direction. Direction based trend considers only the direction of the defined fair value basis, i.e. pointing up is considered an uptrend, vice versa for downtrend. Cross based trends activate when selected source (same options as price source) crosses fair value basis. These sources can be set individually for uptrend/downtrend cross conditions. By default, the script uses cross based trend mode with low and high as sources. Cross based (downtrend not triggered) vs. direction based (downtrend triggered): Threshold band Threshold band is calculated using typical deviations when price is trading at fair value basis. In other words, a little bit of "wiggle room" is added around the mean based on expected deviation. This feature is useful for cross based trends, as it allows filtering insignificant crosses that are more likely just noise. By default, threshold band is calculated based on 1x median deviation from mean. Users can increase/decrease threshold band width via input menu for more/less noise filtering, e.g. 2x threshold band width would require price to cross wiggle room that is 2x wider than typical, 0x erases threshold band altogether. Deviation bands Width of deviation bands by default is based on 1x median deviations and can be increased/decreased in a similar manner to threshold bands. Each combination of customization options produces varying behaviour in the bands. To measure the behaviour and finding fairest representation of fair and unfair value, some data is gathered. — Fair value metrics Space between each band is considered a lot, named +3, +2, +1, -1, -2, -3. For each lot, time spent and volume relative to volume moving average (SMA 20) is recorded each time price is trading in a given lot: Depending on the asset, timeframe and chosen fair value basis, shape of the distributions vary. However, practically always time is distributed in a normal bell curve shape, being highest at lots +1 to -1, gradually decreasing the further price is from the mean. This is hardly surprising, but it allows accurately determining dynamic areas of normal and abnormal price behaviour (i.e. low risk area between +1 and -1, high risk area between +-2 to +-3). Volume on the other hand is typically distributed the other way around, being lowest at lots +1 to -1 and highest at +-2 to +-3. When time and volume are distributed like so, we can conclude that 1) price being outside fair value is a rare event and 2) the more price is outside fair value, the more anomaly behaviour in volume we tend to find. Viewing metric calculations Metric calculation highlights can be enabled from the input menu, resulting in a lot based coloring and visibility of each lot counter (time, cumulative relative volume and average relative volume) in data window: — Alerts Available alerts are the following: Individual - High crossing deviation band (bands +1 to +3 ) - Low crossing deviation band (bands -1 to -3 ) - Low at threshold band in an uptrend - High at threshold band in a downtrend - New uptrend - New downtrend Grouped - New uptrend or downtrend - Deviation band cross (+1 or -1) - Deviation band cross (+2 or -2) - Deviation band cross (+3 or -3) — Practical guide Example #1 : Risk on/risk off trend following Ideal trend stays inside fair value and provides sufficient cool offs between the moves. When this is the case, fair value bands can be used for sensible entry/exit levels within the trend. Example #2 : Mean reversions When price shows exuberance into an extreme deviation, followed by a stall and signs of exhaustion (wicks), an opportunity for mean reversion emerges. The higher the deviation, the more volatility in the move, the more signalling of exhaustion, the better. Example #3 : Tweaking bands for desired behaviour The faster the length of fair value basis, the more momentum price needs to hit extreme deviation levels, as bands too are moving faster alongside price. Decreasing fair value basis length typically leads to more quick and aggressive deviations and less steady trends outside fair value.
Editors' picks
Pine Script™ indicator
by quantifytools
44
Squeeze Range: Bollinger Bands / Keltner Channels [Whvntr]Presenting Squeeze Range: Bollinger Bands / Keltner Channels TTMSqueeze method is a volatility and momentum indicator introduced by John Carter of Simpler Trading, which capitalizes on the tendency for price to break out strongly after consolidating in a tight trading range. How did I make this indicator? The Bollinger Bands & Keltner Channels base scripts are from the standard indicators of their class in the Technicals section... I made this indicator first then noticed there were 3 others with a similar concept, but this differs in it's unique features and application of the TTMSqueeze strategy. This indicator plots the True Range of the Keltner Channel (Customizable in 'Bands Style" in the Inputs Menu) the instances the Bollinger Bands are within the range of the Keltner channel (the market just entered a squeeze). Featuring: customizable Moving Averages 1. Exponential (Default for both BB & KC) 2. Simple 3. RMA (MA used in RSI ) Keltner channels have a multiplier of 2 & 3 on the Chart (3 being the outer). How do I use this indicator? Once the teal dots are inside the solid red lines this would indicate that TTMperiod of low market volatility (the market is preparing itself for an explosive move up or down). Do some research and study how to use the TTMSqueeze method by John Carter. Disclaimer: not a guarantee of future favorable results.
Pine Script™ indicator
by whvntr
Strategy: Range BreakoutWhat? In the price action, levels have a significant role to play. Based on the price moving above/below the levels - the underlying instrument shows some price-action in the direction of breakout/breakdown. There are plenty of ways level can be determined. Levels are the decision point to take a trade or not. But if we make the level derivation complex, then the execution may get hamper. This strategy script, developed in PineScript v5, is our attempt at solving this problem at the core by providing this simple, yet elegant solution to this problem. It's essentially an attempt to Trade Simple by drawing logical (horizontal) lines in the chart and take actions, after multiple associated parameters confirmation, on the breakout / breakdown of the levels. How? Let us explain how we are drawing the levels. We are depending on some of the parameters as described below: Open Range : During intraday movement, often if prices move beyond a particular level, it exibits more movement in the same swing in same direction. We found out, through our back testing for Indian Indices like NSE:NIFTY , NSE:BANKNIFTY or NSE:CNXFINANCE the first 15m (i.e 09:15 AM to 09:30 AM, IST) is one of such range. For Indian stocks, it is 9:15 to 9:45. And for MCX MCX:CRUDEOIL1! it's 5:00 pm to 6:00 pm. There are our first levels. PDHCL : Previous Day High, Close, Low. This is our next level VWAP : The rolling VWAP (volume weighted average price) In the breakout/breakdown of the Open Range and Previous Day High/Low, we are taking the trade decisions as follows using CEST principle: C onditions : If current bar's (say you are in 5m timeframe) closing is broken out the Open Range High or Previous Day High, taken a Buy/Long decision (let's say buying a Call Option CE or selling a Put Option PE or buying the future or cash). If current bar's (say you are in 5m timeframe) closing is broken down the Open Range Low or Previous Day Low, taken a Sell/Short decision (let's say buying a Put Option CE or selling a Call Option PE or selling the future or cash). Additionally, and optionally (default ON, one can turn off): we are checking various other associated multiple confirmations as follows: 1. Momentum : Checking 14-period RSI value is more than 50 or less than 50 (all parameters like period, OB, OS ranges are configurable through settings) 2. Current bar's volume is more than the last 20 bars volume average. How much more - that multiplier is also configurable. (default is 1) 3. The breakout candle is bullish (green) or bearish (red). E ntry : All of these happens only on the closing of the candle . Means: Non Repainting! . Clearly in the chart we are showing as green up arrow BO (breakout for buy) and red down arrow BD (breakdown for sell) to take your decision process smooth. So, on the closing of the decision BO/BD candle we are entering the trade (with a thumping heart and nail biting ...) S top Loss : We are relying on the time tasted (last 40 years) mechanism of Average True Range (ATR) of default 14 period. This default period is also configurable. So for Long trades: the 14 period ATR low band is the SL. For Short trades: the 14 period ATR high band is the SL. T arget : We are depending on the thump rule of 1:2 Risk Reward. It's simple and effective. No fancy thing. We are closing the trade on double the favorable price movement compared to the SL placed. Of course, this RR ratio is confiurable from the settings, as usual. What's Unqiue in it? The utter simplicity of this trading mechanism. No fancy things like complex chart pattern, OI data, multiple candlestick patterns, Order flow analysis etc. Simple level determination, Marking clearly in the chart. Making each parameter configurable in Settings and showing tooltip adjacent to the parameter to make you understand it better for your customization, Wait for the candle close, thus eliminating the chances of repainting menace (as much as possible) Additional momentum and volume check to trade entry confirmation. Works with normal candlestick (nothing special ones like HA ...) Showing everything as a Summary Table (which, again can be turned off optionally) overlaying at the bottom-right corner of the chart, Optionally the Summary Table can be configured to alert you back (say you get it notified in your email or SMS). That way, a single, simple, effective trade setup will ease your journey as smooth sail as possible. Mentions There are plenty of friends from whom time to time we borrowed some of the ideas while working closely together over last one year. From tradingview community, we took the spirit of @zzzcrypto123 awesome work done long back (in 2020) as the indicator "ORB - Opening Range Breakout". (We tried to reach him for his explicit consent, unable to catch hold of him). Some other publicly available materials we have consulted to get the additional checks (like RSI, volume). Lat word Use it please and thank you for your constant patronage in following us in this awesome platform. Let's keep growing together. Disclaimer : This piece of software does not come up with any warrantee or any rights of not changing it over the future course of time. We are not responsible for any trading/investment decision you are taking out of the outcome of this indicator.
Pine Script™ strategy
by pradipandsuvra
15
Band-Zigzag - TrendFollower Strategy [Trendoscope]Strategy Time!!! Have built this on my earlier published indicator Band-Zigzag-Trend-Follower . This is just one possible implementation of strategy on Band-Based-Zigzag . 🎲 Notes Experimental prototype. Not financial advise and strategy not guaranteed to make money despite backtest results Not created or tested for any specific instrument or timeframe Test and adopt with own risk 🎲 Strategy This is trend following strategy built based on Bands and Zigzag. Traits of trend following strategies are Lower win rate (Yes, thats right) High risk reward (Compensates low win rate) Higher drawdown If market is choppy, trend following methods suffer. The script implements few points to overcome the negatives such as lower win rate and higher drawdown by actively assessing pivots on the direction of trend along. This helps us take regular profits and exit on time during the end of trend. Most of the other concepts are defined and explained in indicator - Band-Zigzag-Trend-Follower and Band-Based-Zigzag Defining a trend following method is simple. Basic rule of trend following is Buy High and Sell Low (Yes, you heard it right). To explain further - methodology involve finding an established trend which is flying high and join the trend with proper risk and optimal stop. Once you get into the trade, you will not exit unless there is change in the trend. Or in other words, the parameters which you used to define trend has reversed and the trend is not valid anymore. 🎯 Using bands When price breaks out of upper bands (example, Bollinger Band , Keltener Channel, or Donchian Channel), with a pre determined length and multiplier, we can consider the trend to be bullish and similarly when price breaks down the lower band, we can consider the trend to be bearish . 🎯 Using Pivots Simple logic using zigzag or pivot points is that when price starts making higher highs and higher lows, we can consider this as uptrend. And when price starts making lower highs and lower lows, we can consider this as downtrend. There are few supertrend implementations I have published in the past based on zigzags and pivot points . Drawbacks of both of these methods is that there will be too many fluctuations in both cases unless we increase the reference length. And if we increase the reference length, we will have higher drawdown. 🎯 Band Based Zigzag Method Here we use bands to define our pivot high and pivot low - this makes sure that we are identifying trend only on breakouts as pivots are only formed on breakouts Our method also includes pivot ratio to cross over 1.0 to be able to consider it as trend. This means, we are waiting for price also to make new high high or lower low before making the decision on trend. But, this helps us ignore smaller pivot movements due to the usage of bands. I have also implemented few tricks such as sticky bands (Bands will not contract unless there is breakout) and Adaptive Bands (Band will not expand unless price is moving in the direction of band). This makes the trend following method very robust. To avoid fakeouts, we also use percentB of high/low in comparison with price retracement to define breakout. 🎲 Settings Settings are fairly simpler and are explained as below. You will find most of the required information in tooltips.
Pine Script™ strategy
by Trendoscope
23
Channel Lookback: Average Moving Price (CLAMP)How it works This is a confirmation indicator based on moving averages. It compares the current price to a previous candle N periods ago, then smooths the result. What makes this indicator novel is that it takes the smoothed curve and compares it to the previous value to see whether the slope is increasing or decreasing. Combined with a zero-cross baseline channel, we can compare the relative position of the curve, slope, or closing price to create entry signals. There are several hardcoded conditions that it checks, but this is easily changed. Markets The default values are best used on the SPY daily chart. With backtesting, it seemed to perform fairly well during the last year. It seems to be more accurate during choppy/bear markets, and very inaccurate during a trending market. Eg, if you look at the period of growth that occurred during 2020, it basically said to keep shorting for months at a time. Not good. If you look at other markets (such as gold or uranium), it worked, but only if you inversed what the signal told you to do (eg going long when it says to go short). This is something you will have to test yourself, since every system and market is different. Please don't use this indicator by itself. How to use When combined with other indicators, this tells you whether to go long (green), go short (red), or no trade (gray). It is meant to be used as a confirmation indicator, so it will help verify other trade signals. You can sometimes ignore the first grey circle and reuse the previous colored signal. There are a few markets (such as gold) I noticed this was helpful on; this will depend on your own trade rules and indicator system. If you enable "simple mode" on the settings, it will draw only the final signal (long, short, no signal). I included this because it helps to reduce visual clutter.
Pine Script™ indicator
by KyleBaran
2
Strategy Myth-Busting #5 - POKI+GTREND+ADX - [MYN]This is part of a new series we are calling "Strategy Myth-Busting" where we take open public manual trading strategies and automate them. The goal is to not only validate the authenticity of the claims but to provide an automated version for traders who wish to trade autonomously. Our fifth one we are automating is one of the strategies from "The Best 3 Buy And Sell Indicators on Tradingview + Confirmation Indicators ( The Golden Ones ))" from "Online Trading Signals (Scalping Channel)". No formal backtesting was done by them and resuructo messaged me asking if we could validate their claims. Originally, we mimic verbatim the settings Online Trading Signals was using however weren't getting promising results. So before we stopped there we thought we might want to see if this could be improved on. So we adjusted the Renko Assignment modifier from ATR to Traditional and adjusted the value to be higher from 30 to 47. We also decided to try adding another signal confirmation to eliminate some of the ranged market conditions so we choose our favorite, ADX . Also, given we are using this on a higher time-frame we adjusted the G-Channel Trend detection source from close to OHLC4 to get better average price action indication and more accurate trend direction. This strategy uses a combination of 2 open-source public indicators: poki buy and sell Take profit and stop loss by RafaelZioni G-Channel Trend Detection by jaggedsoft Trading Rules 15m - 4h timeframe. We saw best results at the recommended 1 hour timeframe. Long Entry: When POKI triggers a buy signal When G-Channel Trend Detection is in an upward trend (Green) ADX Is above 25 Short Entry: When POKI triggers a sell signal When G-Channel Trend Detection is in an downward trend (red) ADX Is above 25 If you know of or have a strategy you want to see myth-busted or just have an idea for one, please feel free to message me.
Pine Script™ strategy
by myncrypto
2
Band-Zigzag Based Trend FollowerWe defined new method to derive zigzag last month - which is called Channel-Based-Zigzag . This script is an example of one of the use case of this method. 🎲 Trend Following Defining a trend following method is simple. Basic rule of trend following is Buy High and Sell Low (Yes, you heard it right). To explain further - methodology involve finding an established trend which is flying high and join the trend with proper risk and optimal stop. Once you get into the trade, you will not exit unless there is change in the trend. Or in other words, the parameters which you used to define trend has reversed and the trend is not valid anymore. Few examples are: 🎯 Using bands When price breaks out of upper bands (example, Bollinger Band, Keltener Channel, or Donchian Channel), with a pre determined length and multiplier, we can consider the trend to be bullish and similarly when price breaks down the lower band, we can consider the trend to be bearish. Here are few examples where I have used bands for identifying trend Band-Based-Supertrend Donchian-Channel-Trend-Filter 🎯 Using Pivots Simple logic using zigzag or pivot points is that when price starts making higher highs and higher lows, we can consider this as uptrend. And when price starts making lower highs and lower lows, we can consider this as downtrend. There are few supertrend implementations I have published in the past based on zigzags and pivot points. Adoptive-Supertrend-Pivots Zigzag-Supertrend Drawbacks of both of these methods is that there will be too many fluctuations in both cases unless we increase the reference length. And if we increase the reference length, we will have higher drawdown. 🎲 Band Based Zigzag Method Band Based Zigzag will help overcome these issues by combining both the methods. Here we use bands to define our pivot high and pivot low - this makes sure that we are identifying trend only on breakouts as pivots are only formed on breakouts. Our method also includes pivot ratio to cross over 1.0 to be able to consider it as trend. This means, we are waiting for price also to make new high high or lower low before making the decision on trend. But, this helps us ignore smaller pivot movements due to the usage of bands. I have also implemented few tricks such as sticky bands (Bands will not contract unless there is breakout) and Adaptive Bands (Band will not expand unless price is moving in the direction of band). This makes the trend following method very robust. To avoid fakeouts, we also use percentB of high/low in comparison with price retracement to define breakout. 🎲 The indicator The output of indicator is simple and intuitive to understand. 🎯 Trend Criteria Uptrend when last confirmed pivot is pivot high and has higher retracement ratio than PercentB of High. Else, considered as downtrend. Downtrend when last confirmed pivot is pivot low and has higher retracement ratio than PercentB of High. Else, considered as uptrend. 🎯 Settings Settings allow you to select the band type and parameters used for calculating zigzag and then trend. Also has few options to hide the display.
Pine Script™ indicator
by Trendoscope
25