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Nasan Risk Score & Postion Size Estimator** THE RISK SCORE AND POSITION SIZE WILL ONLY BE CALCUTAED ON DIALY TIMEFRAME NOT IN OTHER TIMEFRAMES. The typically accepted generic rule for risk management is not to risk more than 1% - 2 % of the capital in any given trade. It has its own basis however it does not take into account the stocks historic & current performance and does not consider the traders performance metrics (like win rate, profit ratio). The Nasan Risk Score & Position size calculator takes into account all the listed parameters into account and estimates a Risk %. The position size is calculated using the estimated risk % , current ATR and a dynamically adjusted ATR multiple (ATR multiple is adjusted based on true range's volatility and stocks relative performance). It follows a series of calculations: Unadjusted Nasan Risk Score = (Min Risk)^a + b* Min Risk = ( 5 year weighted avg Annual Stock Return - 5 year weighted avg Annual Bench Return) / 5 year weighted avg Annual Max ATR% Max Risk = ( 5 year weighted avg Annual Stock Return - 5 year weighted avg Annual Bench Return) / 5 year weighted avg Annual Min ATR% The min and max return is calculated based on stocks excess return in comparison to the Benchmark return and adjusted for volatility of the stock. When a stock underperforms the benchmark, the default is, it does not calculate a position size , however if we opt it to calculate it will use 1% for Min Risk% and 2% for Max Risk% but all the other calculations and scaling remain the same. Rationale: Stocks outperforming their benchmark with lower volatility (ATR%) score higher. A stock with high returns but excessive volatility gets penalized. This ensures volatility-adjusted performance is emphasized rather than absolute returns. Depending on the risk preference aggressive or conservative Aggressive Risk Scaling: a = max (m, n) and b = min (m, n) Conservative Scaling: a = min (m, n) and b = max (m, n) where n = traders win % /100 and m = 1 - (1/ (1+ profit ratio)) A default of 50% is used for win factor and 1.5 for profit ratio. Aggressive risk scaling increases exposure when the strategy's strongest factor is favorable. Conservative risk scaling ensures more stable risk levels by focusing on the weaker factor. The Unadjusted Nasan risk is score is further refined based on a tolerance factor which is based on the stocks maximum annual drawdown and the trader's maximum draw down tolerance. Tolerance = /100 The correction factor (Tolerance) adjusts the risk score based on downside risk. Here's how it works conceptually: The formula calculates how much the stock's actual drawdown exceeds your acceptable limit. If stocks maximum Annual drawdown is smaller than Trader's maximum acceptable drawdown % , this results in a positive correction factor (indicating the drawdown is within your acceptable range and increases the unadjusted score. If stocks maximum Annual drawdown exceeds Trader's maximum acceptable drawdown %, the correction factor will decrease (indicating that the downside risk is greater than what you are comfortable with, so it will adjust the risk exposure). Once the Risk Score (numerically equal to Risk %) The position size is calculated based on the current market conditions. Nasan Risk Score (Risk%) = Unadjusted Nasan Risk Score * Tolerance. Position Size = (Capital * Risk% )/ ATR-Multiplier * ATR The ATR Multiplier is dynamically adjusted based on the stocks recent relative performance and the variability of the true range itself. It would range between 1 - 3.5. The multiplier widens when conditions are not favorable decreasing the position size and increases position size when conditions are favorable. This Calculation /Estimate Does not give you a very different result than the arbitrary 1% - 2%. However it does fine tune the % based on sock performance, traders performance and tolerance level.
Pine Script® indicator
by federalTacos5392b
1
Supply & Demand Zones + Order Block (Pro Fusion) - Auto Order Strategy Title: Smart Supply & Demand Zones + Order Block Auto Strategy with ScalpPro (Buy-Focused) 📄 Strategy Description: This strategy combines the power of Supply & Demand Zone analysis, Order Block detection, and an enhanced Scalp Pro momentum filter, specifically designed for automated decision-making based on high-volume breakouts. ✅ Key Features: Auto Entry (Buy Only) Based on Breakouts Automatically enters a Buy position when the price breaks out of a valid demand zone, confirmed by EMA 50 trend and volume spike. Order Block Logic Identifies bullish and bearish order blocks using consecutive candle structures and significant price movement. Dynamic Stop Loss & Trailing Stop Implements a trailing stop once price moves in profit, along with static initial stop loss for risk management. Clear Visual Labels & Alerts Displays BUY/SELL, Demand/Supply, and Order Block labels directly on the chart. Alerts trigger on valid breakout signals. Scalp Pro Momentum Filter (Optimized) Uses a modified MACD-style momentum indicator to confirm trend strength and filter out weak signals.
Pine Script® strategy
by denidiana
3
Supply & Demand Zones + Order Block (Pro Fusion) SuroLevel up your trading edge with this all-in-one Supply and Demand Zones + Order Block TradingView indicator, built for precision traders who focus on price action and smart money concepts. 🔍 Key Features: Automatic detection of Supply & Demand Zones based on refined swing highs and lows Dynamic Order Block recognition with customizable thresholds Highlights Breakout signals with volume confirmation and trend filters Built-in EMA 50 trend detection Take Profit (TP1, TP2, TP3) projection levels Clean visual labels for Demand, Supply, and OB zones Uses smart box plotting with long extended zones for better zone visibility 🔥 Ideal for: Traders who follow Smart Money Concepts (SMC) Supply & Demand strategy practitioners Breakout & Retest pattern traders Scalpers, swing, and intraday traders using Order Flow logic 📈 Works on all markets: Forex, Crypto, Stocks, Indices 📊 Recommended timeframes: M15, H1, H4, Daily ✅ Enhance your trading strategy using this powerful zone-based script — bringing structure, clarity, and automation to your chart. #SupplyAndDemand #OrderBlock #TradingViewScript #SmartMoney #BreakoutStrategy #TPProjection #ForexIndicator #SMC
Pine Script® indicator
by denidiana
1
SuperTrader Trend Analysis and Trade Study DashboardSuperTrader Trend Analysis and Trade Study Dashboard Overview This script offers a multi-faceted look at market behavior. It combines signals from different momentum indicators, daily cross checks, and a specialized dashboard to reveal trend strength, potential divergences, and how far price has traveled from its recent averages. Three Musketeers Method This script uses a special set of three indicators (the “Three Musketeers”) to determine bullish or bearish pressure on the current chart. Trend Condition – Compares fast vs. slow EMAs (50 and 200) and checks which side of the line price is favoring. Mean Reversion Condition – Watches RSI crossing typical oversold or overbought thresholds (e.g., crossing above 30 or below 70). Bollinger Condition – Checks whether price pushes above/below the Bollinger Bands (based on a 20 SMA + standard deviations). When at least two out of these three conditions align in a bullish way, the script issues a Buy Signal . Conversely, if at least two align in a bearish way, a Sell Signal is triggered. This “Three Musketeers” synergy ensures multiple confirmations before calling a potential market turn. Mag 8 Daily Performance The script tracks eight highly influential stocks (AAPL, AMZN, GOOG, NFLX, NVDA, TSLA, META, MSFT) to see which are green (higher) or red (lower) compared to yesterday’s close. It then prints a quick tally – helpful in gauging overall market mood via these major players. Golden / Death Cross Signals On a daily time frame, the script notes when the 50-day SMA crosses above or below the 200-day SMA. A “Golden Cross” often signals rising momentum, while a “Death Cross” can hint at oncoming weakness. RSI & Divergence Checks RSI helps identify hidden turning points. Whenever a bullish or bearish divergence is spotted, the script updates you via a concise readout. Hardcoded Settings EMA lengths for trend checks, Bollinger parameters, etc., are locked in, letting you focus on adjusting only the pivotal study inputs (e.g., RSI length, VIDYA momentum). VIDYA Trend Line & Fill Built on an adaptive Variable Index Dynamic Average, it plots a line that quickly reacts to changing momentum. Users can set a “Trend Band Distance” to mark ATR-based thresholds around that line, identifying possible breakouts or breakdowns. YoYo Distance This concept measures how far price strays from SMA(10). If it’s too far, the script colors your display to indicate potential snapbacks. Gap Up/Down Probability By weighing volume, MACD signals, and whether price sits above/below its midrange, the script estimates probabilities of a gap up or down on the next daily candle. Table Output & Trend Label Turning on Show Table Widget reveals a quick dashboard on the chart detailing RSI, CCI, divergences, bull/bear scores, and more. A label on the last bar further summarizes overall trend, gap distance, and the Mag 8 snapshot – perfect for a fast read of current market posture. Use this script to unify multiple signals in one place, see how far price has ventured from typical patterns, and get daily cross signals plus real-time bullish/bearish calls – all at a glance.
Pine Script® indicator
by Midgar-
6
Ichimoku CloudDetailed Description of the Pine Script Code for Ichimoku Indicator with Buy/Sell Signals 1. Indicator Declaration: Uses Pine Script version 5. Sets the title to "Enhanced Ichimoku Signals (Buy/Sell on Tenkan-sen)". Displays the indicator directly on the price chart (overlay=true). 2. Ichimoku Parameter Settings: Tenkan-sen (Conversion Line Length): Default period of 9. Kijun-sen (Base Line Length): Default period of 26. Senkou Span B (Leading Span B Length): Default period of 52. Displacement (Lagging Span): Default period of 26. 3. Signal Display Settings: Enables/disables Buy and Sell signals. Allows customization of signal colors: Buy Signal: Green upward arrow. Sell Signal: Red downward arrow. 4. Ichimoku Component Calculations: Donchian Channel: Computes the average between the highest and lowest prices over a defined period. Tenkan-sen: Average of the highest and lowest prices over the last 9 periods. Kijun-sen: Average of the highest and lowest prices over the last 26 periods. Senkou Span A: Average of Tenkan-sen and Kijun-sen. Senkou Span B: Average of the highest and lowest prices over the last 52 periods. 5. Plotting Ichimoku Lines: Plots Tenkan-sen in blue. Plots Kijun-sen in red. 6. Buy/Sell Signal Conditions: Buy Signal: Previous candle closed below Tenkan-sen. Current candle closes above Tenkan-sen. Sell Signal: Previous candle’s high was above or equal to Tenkan-sen. Current candle closes below Tenkan-sen. 7. Displaying Buy/Sell Signals: Buy Signal: Green upward arrow appears below the candle when triggered. Sell Signal: Red downward arrow appears above the candle when triggered. Signal visibility is controlled by showBuySignals and showSellSignals settings. 8. Trade Alerts: Alerts are generated when a Buy or Sell signal is triggered. Notifications specify whether a candle closed above or below Tenkan-sen. 9. Error Handling with plot(na): A dummy plot(na) ensures at least one plot function exists, preventing script errors. Summary of Functionality: Computes Ichimoku lines (Tenkan-sen, Kijun-sen, Senkou Span A, Senkou Span B). Identifies Buy/Sell signals based on: Candle’s closing position relative to Tenkan-sen. Previous candle’s high/low position. Plots Buy/Sell signals with customizable colors. Triggers alerts for trade signals.
Pine Script® indicator
by khangvitan
TrendWave Bands [BigBeluga]This is a trend-following indicator that dynamically adapts to market trends using upper and lower bands. It visually highlights trend strength and duration through color intensity while providing additional wave bands for deeper trend analysis. 🔵Key Features: Adaptive Trend Bands: ➣ Displays a lower band in uptrends and an upper band in downtrends to indicate trend direction. ➣ The bands act as dynamic support and resistance levels, helping traders identify potential entry and exit points. Wave Bands for Additional Analysis: ➣ A dashed wave band appears opposite the main trend band for deeper trend confirmation. ➣ In an uptrend, the upper dashed wave band helps analyze momentum, while in a downtrend, the lower dashed wave band serves the same purpose. Gradient Color Intensity: ➣ The trend bands have a color gradient that fades as the trend continues, helping traders visualize trend duration. ➣ The wave bands have an inverse gradient effect—starting with low intensity at the trend's beginning and increasing in intensity as the trend progresses. Trend Change Signals: ➣ Circular markers appear at trend reversals, providing clear entry and exit points. ➣ These signals mark transitions between bullish and bearish phases based on price action. 🔵Usage: Trend Following: Use the lower band for confirmation in uptrends and the upper band in downtrends to stay on the right side of the market. Trend Duration Analysis: Gradient wavebands give an idea of ​​the duration of the current trend — new trends will have high-intensity colored wavebands and as time goes on, trends will fade. Trend Reversal Detection: Circular markers highlight trend shifts, making it easier to spot entry and exit opportunities. Volatility Awareness: Volatility-based bands help traders adjust their strategies based on market volatility, ensuring better risk management. TrendWave Bands is a powerful tool for traders seeking to follow market trends with enhanced visual clarity. By combining trend bands, wave bands, and gradient-based color scaling, it provides a detailed view of market dynamics and trend evolution.
Pine Script® indicator
by BigBeluga
10
Chop ZonesThis indicator plots two "zones" in the form of shaded boxes, one between PMH and PML and one between PDH and PDL, the area that is shaded more has the highest probability of price action to be "choppy", the lesser shaded area has less probability for "choppy" action whilst outside the shaded areas there is high probability of a trend. This indicator can be used to determine one of the three types of day: Chop day Bullish trend day Bearish trend day Chop day example today on AMEX:SPY Bullish trend day example on NASDAQ:DLTR Bearish trend day example on NASDAQ:UAL
Pine Script® indicator
by Dtrades_TV
SPY MACD Histogram Reversals and RejectionsStrategy Overview: Intraday SPY Options Day Trading with MACD Histogram Reversals and Rejections This is an intraday trading strategy designed specifically for trading SPY (or SPX) using 1DTE options. It focuses on price action during the morning session and leverages MACD histogram crossovers, volatility analysis, and short-term price rejections to enter directional trades (calls or puts). The goal is to capitalize on early momentum shifts and retracement failures after initial market moves. Key Trading Hours and Constraints Trading Window: Only trades between 9:50 AM and 1:00 PM EST are considered. Trade Cutoff Buffer: New trades are blocked in the final 5 minutes before the 1:00 PM end time to avoid auto-close conflicts. First Hour Focus: Special logic applies during the first hour of the session (9:30 AM to 10:30 AM), where reversal-based setups are tracked more aggressively. MACD Histogram Setup The strategy calculates both 5-minute and 10-minute MACD values. Signals are generated when the 5-minute MACD histogram crosses the zero line, indicating a momentum shift. The magnitude of the histogram (absolute value) must exceed a threshold (0.10) to validate strong enough momentum. The 10-minute histogram is used as a confirmation filter: if it’s under 0.17 in magnitude, it favors a call entry (bullish breakout); otherwise, it defaults to put entry (bearish momentum). Reversal & Protection Logic (Early Morning Retests) Call Rejection Protection (To avoid entering long after a strong upward move and sharp retrace): Monitors price from 9:30–10:00 AM for the lowest point. Then from 10:00–10:35 AM, it tracks the highest price. If price retraces more than 90% of that move up, it avoids new call entries. Put Rejection Protection (To avoid entering short after a downward move and retrace): Tracks the highest point from 9:30–10:00 AM, then the lowest price from 10:00–10:35 AM. If price retraces more than 90% of that downward move, put entries are skipped. This avoids buying into failed breakouts or deep retracements, protecting against reversal traps. Entry Conditions Summary A trade is considered only if: It's within the allowed time window. MACD histogram crosses zero with sufficient strength. No retracement rejection conditions are triggered. The 10-minute MACD filter confirms momentum direction. Risk Management – Dynamic ATR-Based Stop Loss & Profit Target Uses a 6-period ATR to size both the stop loss and profit target. ATR multipliers are adjusted dynamically based on RSI(14) values to account for current volatility and overbought/oversold conditions: Profit Targets: Scaled using an aggressive ATR multiplier tied to RSI position. Stop Losses: Slightly wider to prevent premature exits from minor retracements. This adaptive approach helps ensure realistic targets while keeping risk within bounds. Options Profit Estimation Estimated option move is calculated using: The difference between entry price and the profit target (in underlying asset). Assumes 0.48 delta to approximate the expected option gain/loss. These values are displayed directly on the chart as part of the trade label. Trade Execution and Labeling Each trade is assigned a unique ID and visually labeled on the chart with: Direction (Call or Put) Profit target level Estimated underlying move Estimated option gain in dollars Alerts are also triggered to notify on entry signals, showing the estimated option profit. Performance Tracking and Statistics Tracks total trades, wins, losses, and current win streak using strategy.closedtrades. Displays these values in a live stats table on the chart for real-time feedback. Additional Visual Aids Table showing: MACD profit targets and histograms Estimated option moves Intraday range (high – low) Draws a horizontal line at the nearest rounded price level for quick visual context. Marks key morning times (9:55, 10:00, and 10:30) with small labeled markers. Overall Objective This strategy aims to: Catch early directional momentum in SPY within a controlled risk framework. Avoid trading into retracements or false breakouts. Provide visually clear, data-supported trade entries for real-time manual execution. Estimate profitability in terms of options pricing for quick decision-making. It's ideal for traders looking to day trade 0DTE or 1DTE SPY options using technical triggers, real-time filtering, and protective logic to reduce false signals and improve timing.
Pine Script® strategy
by trev_business
Price Extreme BandsPrice Extreme Bands Description This indicator calculates and displays Price Extreme Bands based on an Exponential Moving Average (EMA) and True Range Average True Range (TR ATR). It utilizes a custom "Super Smoother" function to smooth the bands, providing a clearer representation of potential price extremes without sacrificing accuracy. Usage Built for specifically for intraday timeframes, this indicator identifies short term price extremes and volatility ranges. Traders can observe when price moves towards the outer bands, suggesting strong momentum or potential overbought/oversold conditions. The filled zones highlight areas of increased volatility which can used as exit criteria for a trade, possible reversal points in ranging markets or price ranges where price momentum could slow in trending markets. Key Features Length Input: Controls the length of the EMA and TR ATR calculations. Multiplier Inputs: Uses two fixed multipliers (1.71 and 2.50) to create bands. Super Smoother: Applies a custom smoothing function to the bands for reduced noise. Fill Zones: Fills the areas between the inner and outer bands to highlight potential volatility ranges. Calculation: 1. EMA (Basis): Calculates the Exponential Moving Average of the selected source. 2. TR ATR: Calculates the True Range and then smoothes it using RMA (Rolling Moving Average). 3. Bands: Calculates upper and lower bands using the EMA and ATR, with multipliers of 1.71 and 2.50. 4. Super Smoother: Applies a smoothing function to the calculated bands. Visuals: Basis Line: Plots the EMA (basis) (invisible by default). Inner Bands (1.71 Multiplier): Plots the smoothed bands with a distinct color (e.g., orange) (invisible by default). Outer Bands (2.50 Multiplier): Plots the smoothed bands with a different color (e.g., purple) (invisible by default). Fill Zones: Fills the region between the inner and outer upper bands and the inner and outer lower bands with a translucent color (e.g. light blue). // Note: The plot lines are invisible by default. To view the basis, upper and lower band lines, adjust the visibility settings in the indicator's settings. Uniqueness: Ready of the box. Code and parameters built specifically for 1m to 15m timeframes provides users with an indicator to easily identify price extremes. The use of TR ATR and addition of the Super Smoother calculation create a easier visualization and implementation compared to existing price band options.
Pine Script® indicator
by jrpowell01
Wyckoff Range Detector [Beta] + Smart Money ElementsThis indicator detects the key phases of the Wyckoff market structure and integrates smart money elements, such as Order Blocks (OB), Fair Value Gaps (FVG), and Breaker Blocks. It also helps identify potential reversal zones (LPS, UTAD, Spring), breakout opportunities, and provides automatic Risk-Reward (R:R) calculations. Key Features: Wyckoff Phases Detection: Automatically detects key phases of Wyckoff's market structure: B (Range) – The initial range of accumulation. C (Spring Phase) – Accumulation phase with a potential breakout. C (UTAD Phase) – Upthrust After Distribution, indicating a potential reversal. D (LPS Phase) – Last Point of Support, signaling accumulation before a breakout. E (Breakout) – Phase marking breakout from range. Re-Accumulation – Possible continuation in the range after a breakout. Re-Distribution – Possible breakdown of a distribution phase. Smart Money Elements: Order Blocks (OB): Identifies Bullish and Bearish OBs to anticipate market entries. Fair Value Gap (FVG): Highlights imbalance areas where price is likely to return. Breaker Blocks: Marks areas where the price has previously broken a structure, indicating strong supply/demand zones. Automatic Risk-Reward Calculation: Smart RR: Automatically calculates Risk-Reward (R:R) ratios from LPS phases and Order Blocks. It draws lines to indicate target and stop levels with green for the target and red for the stop. Visual representation of the entry signal with target and stop levels displayed. Alerts: Set alerts for phase changes, breakout, re-accumulation, or re-distribution to stay updated on the market’s movements. Visual Tools: Labels are used to indicate key zones such as AR, SC, LPS, and Spring Zones. Draw boxes for the Spring and LPS phases to highlight areas where price action is likely to reverse. Lines to represent potential breakouts, with customizable risk-reward indicators. How to Use: Apply the Indicator on any chart. Identify Wyckoff phases to understand market trends. Monitor Smart Money Elements (OB, FVG, Breaker) for entry and exit points. Use automatic Risk-Reward levels for managing trades. Set alerts for various Wyckoff phases and smart money signals to stay updated.
Pine Script® indicator
by magistr890
Custom Opening Range FillThis TradingView indicator visualizes a customizable opening range. Users define the start hour, minute (UTC), and range duration. It calculates the high and low prices within this period and fills the area between them on the chart. The range resets daily. This highlights a specific trading window, aiding in identifying potential breakout or breakdown levels. Traders can adjust the time parameters to analyze various market sessions or strategies. It's useful for those focusing on price action within a defined timeframe, simplifying the observation of key price levels.
Pine Script® indicator
by Ep69
PDH/PDL ZonesPDH/PDL Zones Overview The PDH/PDL Zones indicator highlights the price range between the previous day’s high (PDH) and low (PDL) during regular market hours (9:30 AM to 4:00 PM EST). It draws a semi-transparent zone across the chart, making it easy to visualize key support and resistance levels from the prior trading session. This indicator is designed for intraday traders who want to focus on regular market activity, excluding premarket and after-hours data.
Pine Script® indicator
by Dtrades_TV
IU Smart Flow SystemDESCRIPTION The IU Smart Flow System is a powerful and dynamic order flow-based strategy designed to capture high-probability trades by analyzing bullish and bearish imbalances, trend direction, and RSI strength. It identifies trading opportunities by aligning order flow conditions with the prevailing trend and momentum, making it suitable for trend-following and momentum-based trading. This system utilizes a unique combination of: - Order flow score to gauge market imbalance - Trend filter using SMA and ATR to confirm market direction - RSI to ensure entry only during strong momentum USER INPUTS: - Imbalance Length: Defines the lookback period for calculating bullish and bearish imbalances. (Default: 10) - Trend Length: Determines the length of the SMA to evaluate the trend direction. (Default: 50) - RSI Length: Specifies the RSI period to assess momentum strength. (Default: 14) LONG CONDITIONS: Long entries are triggered when: - Order flow score is positive, indicating bullish imbalance - Price is above the bullish trend level (SMA + ATR), confirming an uptrend - RSI is above 50, indicating bullish momentum - No active short position is currently open SHORT CONDITIONS: Short entries are triggered when: - Order flow score is negative, indicating bearish imbalance - Price is below the bearish trend level (SMA - ATR), confirming a downtrend - RSI is below 50, indicating bearish momentum - No active long position is currently open WHY IT IS UNIQUE: - Imbalance-Based Approach: Unlike traditional strategies that rely solely on price action, this system evaluates bullish and bearish imbalances to anticipate order flow direction. - Adaptive Trend Filter: The combination of SMA and ATR dynamically adjusts to market volatility, providing a reliable trend confirmation mechanism. - Momentum Validation with RSI: Ensures that entries are taken only in the direction of strong momentum, reducing false signals. HOW USERS CAN BENEFIT FROM IT: - Enhanced Trade Accuracy: Aligning order flow, trend, and momentum reduces false signals and improves trade success rates. - Versatile Application: Suitable for various markets and timeframes, making it adaptable to different trading styles. - Clear Trade Signals: Provides clear entry labels and alerts, ensuring traders never miss a potential opportunity. - Visual Clarity: The filled region between bullish and bearish trends highlights trend direction, enhancing decision-making.
Pine Script® indicator
by Shivam_Mandrai
[COG]Adaptive Volatility Bands# Adaptive Volatility Bands (AVB) Indicator Guide for Traders ## Special Acknowledgment 🙌 This script is inspired by and builds upon the foundational work of **DonovanWall**, a respected contributor to the trading community. His innovative approach to adaptive indicators has been instrumental in developing this advanced trading tool. ## What is the Adaptive Volatility Bands Indicator? The Adaptive Volatility Bands (AVB) is a sophisticated technical analysis tool designed to help traders understand market dynamics by creating dynamic, responsive price channels that adapt to changing market conditions. Unlike traditional static indicators, this script uses advanced mathematical techniques to create flexible bands that adjust to market volatility in real-time. ## Key Features and Inputs ### 1. Price and Filtering Options - **Price Source**: Determines the base price used for calculations (default is HLC3 - Average of High, Low, and Close) - **Filter Poles**: Controls the smoothness of the indicator (1-9 poles) - Lower values: More responsive, more noise - Higher values: Smoother, but slower to react ### 2. Volatility and Band Settings - **Sample Length**: Determines how many bars are used to calculate volatility (default 144) - **Volatility Multiplier**: Adjusts the width of the main bands (default 1.414) - **Outer Band Multiplier**: Controls the width of the outer bands (default 2.5) - **Inner Band Ratio**: Positions the inner bands between the center and outer bands (default 0.25) ### 3. Advanced Processing Options - **Lag Reduction Mode**: Helps reduce indicator delay - **Fast Response Mode**: Makes the indicator more responsive to recent price changes ### 4. Signal and Visualization Options - **Show Entry Signals**: Displays buy and sell signals - **Signal Display Style**: Choose between labels or shapes - **Range Filter**: Adds an additional filter for signal validation ## How the Indicator Works The Adaptive Volatility Bands create a dynamic price channel with three key components: 1. **Center Line**: Represents the core trend direction 2. **Inner Bands**: Closer to the center line 3. **Outer Bands**: Wider bands that show broader price potential ### Color Dynamics - The indicator uses a smart color gradient system - Colors change based on price position within the bands - Helps visualize bullish (green/blue) and bearish (red) market conditions ## Trading Strategies for Beginners ### Basic Entry Signals - **Buy Signal**: - Price touches the center line from below - Candle is bullish (closes higher than it opens) - Price is above the center line - Trend is upward - **Sell Signal**: - Price touches the center line from above - Candle is bearish (closes lower than it opens) - Price is below the center line - Trend is downward ### Risk Management Tips 1. Use the bands to identify: - Potential trend changes - Volatility levels - Support and resistance areas 2. Combine with other indicators for confirmation 3. Always use stop-loss orders 4. Adjust parameters to match your trading style and asset ## When to Use This Indicator Best suited for: - Trending markets - Swing trading - Identifying potential entry and exit points - Understanding market volatility ### Recommended Markets - Stocks - Forex - Cryptocurrencies - Futures ## Customization The script offers extensive customization: - Adjust smoothness - Change band multipliers - Modify color schemes - Enable/disable features like lag reduction ## Important Considerations for Beginners 🚨 **Disclaimer**: - No indicator guarantees profits - Always practice with a demo account first - Learn and understand the indicator before live trading - Market conditions change, so continually adapt your strategy ## Getting Started 1. Add the script to your TradingView chart 2. Experiment with different settings 3. Backtest on historical data 4. Start with small positions 5. Continuously learn and improve Happy Trading! 📈🔍
Pine Script® indicator
by CognitiveAlpha
1