Broadview Dominance SuiteIntroducing the revolutionary Broadview Dominance Suite, a culmination of scientific precision and astute mathematical finance, designed to provide traders with unparalleled insights into market dynamics and the balance of power. This suite leverages a comprehensive set of seven distinct moving averages, including the Simple Moving Average (SMA), Exponential Moving Average (EMA), Hull Moving Average (HMA), Weighted Moving Average (WMA), Volume Weighted Moving Average (VWMA), Triple Exponential Moving Average (TEMA), and Least Squares Moving Average (LSMA). Through the combination of these moving averages, the Broadview Dominance Suite offers traders an authoritative perspective on the control exerted by market participants over a given period.
At the heart of the Broadview Dominance Suite lies the concept of the balance of power, a pivotal determinant of market dynamics. The balance of power refers to the tug-of-war between buyers (bulls) and sellers (bears) within the market. By analyzing the relationship between the market participants, the suite allows traders to identify and comprehend who holds control over a specific timeframe.
The seven different types of moving averages employed in the Broadview Dominance Suite contribute to an in-depth assessment of market dominance. Each moving average possesses unique characteristics that facilitate a comprehensive evaluation of the balance of power. Let's delve into the moving averages included in this suite and their respective properties:
Simple Moving Average (SMA): The SMA, known for its simplicity, calculates the average price over a specified period. When applied to the balance of power, the SMA provides a smoothed line that highlights overall price trends. Its straightforward nature allows for a clear interpretation of the dominant market forces.
Exponential Moving Average (EMA): The EMA assigns more weight to recent prices, making it highly responsive to short-term price movements. By incorporating the EMA into the balance of power analysis, traders can identify potential trend reversals and shifts in market control with increased accuracy.
Hull Moving Average (HMA): The HMA employs weighted moving averages and a square root function to reduce lag and noise. This results in a smoother line that closely aligns with current price action. When assessing the balance of power, the HMA enables traders to discern precise trend indications, minimizing false signals and providing a clearer understanding of market dominance.
Weighted Moving Average (WMA): The WMA assigns varying weights to different price points within the selected period, placing greater emphasis on recent data. This feature allows the WMA to be more sensitive to recent price changes. When utilized in the analysis of the balance of power, the WMA excels at detecting short-term shifts in market control and identifying periods of heightened buying or selling pressure.
Volume Weighted Moving Average (VWMA): The VWMA incorporates trading volume into its calculation, highlighting the importance of volume in determining market dynamics. By integrating volume data, the VWMA offers a more comprehensive understanding of price levels where significant buying or selling activity occurs. In the context of the balance of power, the VWMA provides valuable insights into the intensity of market control exerted by the bulls or bears.
Triple Exponential Moving Average (TEMA): The TEMA employs multiple exponential smoothing techniques to reduce lag and enhance responsiveness. It excels at capturing short-term price movements and potential trend reversals. By incorporating the TEMA into the analysis of the balance of power, traders can gain a deeper understanding of swift shifts in market control, allowing for timely decision-making.
Least Squares Moving Average (LSMA): The LSMA minimizes the sum of squared differences between the moving average and the actual price, resulting in a curve that closely fits the price data. When applied to the balance of power, the LSMA provides a smooth line that effectively captures significant price trends. Its ability to filter out noise ensures a clearer representation of dominant market forces.
By combining these seven moving averages within the Broadview Dominance Suite, traders gain an authoritative assessment of market control. The interplay between these moving averages presents a nuanced and multi-faceted perspective on the balance of power. When a line falls below the center line, it signifies the market is under the control of the bears, indicating a dominance of selling pressure. Conversely, when the lines rise above the center line, it suggests the market is controlled by the bulls, with buying pressure prevailing.
Bop
Compound Indicator Strategy - BTC/USDT 3hThis is an Strategy finds and utilise end points of short term market trends and this is a combination of many indicators such as
1. Volume change oscillator
2. Money flow index ( MFI )
3. Momentum Oscillator (MOM)
4. Stochastic Indicator
6. Relative Strength Indicator ( RSI )
7. Relative volatility index (RVI)
8. Balance of power (BOP)
9. Small moving average ( SMA )
10. Exponential moving average ( EMA )
11. Parabolic SAR
12. Super trend indicator
this script forms a compound indicator after analysing movements of those indicators through different time frames and measure its co-relation and variance with the price action. buy doing that, indicator in a position to identify short term market reversals and presented.
after generating a common indicator, it evaluates standard deviation and standard variance with currant market price action and generates a buy and sell signals. you can determine your own trading method based on available options.
Compound IndicatorThis is an indicator finds end points of short term market trends. this is a combination of many indicators such as
1. Volume change oscillator
2. Money flow index (MFI)
3. Momentum Oscillator (MOM)
4. Stochastic Indicator
6. Relative Strength Indicator (RSI)
7. Relative volatility index (RVI)
8. Balance of power (BOP)
9. Small moving average (SMA)
10. Exponential moving average (EMA)
11. Parabolic SAR
12. Super trend indicator
this script forms a compound indicator after analysing movements of those indicators through different time frames and measure its co-relation and variance with the price action. buy doing that, indicator in a position to identify short term market reversals and presented.
RedK Bar Strength Inspector / Bar Strength Index (BSI)Summary
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The Bar Strength Inspector / Bar Strength Index (BSI) is an indicator that evaluates each price bar against a user-selectable set of "strength categories" - BSI then calculates a combined score from these categories and provides an index - plotted as a centered oscillator - roughly similar to the way Relative Strength Index (RSI) works, which can be used to evaluate the strength of price move and the possibilities of trend continuation or reversal.
Background
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BSI is like a Swiss-army knife with many components - so apologies upfront if this guide gets long - and i know i will still miss few pieces that needs explaining. please alert me if something is not clear.
BSI is an advanced / re-built version of my Ultimate Trader Oscillator (UTO)
I continue to believe that one of the best trading tools that i can use, is a tool that can automate the visual inspection of the price chart - a tool that simulates (and quantifies in numbers/score) the way we visually look at a certain price bar, and make a judgement that "this is a strong bar, so I expect the trend down to possibly reverse" - BSI is a an attempt to achieve that. An attempt to answer a simple question (in a quantifiable manner):
how strong / weak is this price bar - how does it compare to previous bars ? what is the average of that strength (or weakness) for the last few bars ?(based on the trader's preferred timeframe)
How does BSI work
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* BSI will inspect and evaluate each bar against various (selectable) strength categories.
* BSI will give a -100/+100 score against each "strength category", then combine these scores into an index and create an average of that index
* the average index (also called BSI) will be calculated for both a short and long lengths
* the short length represents "local / short-term" strength - plotted as a blue/orange line (with an additional signal line to make easier to "read")
* the long-term reflects the broader bias (sentiment) - plotted as green/red area (or mountain)
How is BSI different from UTO
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- I wrote BSI from the ground up to validate each scoring calculation and the resulting outcomes - so i would consider BSI to be more accurate than UTO
- i wrote BSI in a way to make it a lot more flexible. BSI allows me to choose which category to include in the "inspection"
- the strength categories are streamlined to reflect single bar strength, strength from bar-to-bar, and relative strength (range and volume) - they have also been chosen in a way that map to commonly used Technical Analysis concepts, to increase the value of BSI and the ability to compare with other common indicators (for example, BoP, Stochastic, Relative Volume and RSI)
- added the table view - which i use mainly to track the action within the current bar - and to learn more about how to evaluate strength vs weakness with various chart patterns
- UTO still represents the foundation of this work - but i will not update UTO any longer so all changes will be applied to the BSI- i have been using both UTO and BSI to guide my trading for the past few months.
- couple of other features in BSI:
- support for instruments with no volume data (even if the user chooses volume) - number of inspection categories will show as "7" in that case
- ability to plot the individual category scores, and the total weighted score (for the selected categories) - these plots are hidden by default
- ability to see the total score for all 8 (or 7 in case no volume data) categories regardless of how many are active - but only in the table view
- ability to be used as both a lower (independent) and a top indicator (on the price chart) -- see below examples.
Structure of the BSI Strength Categories
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The first 3 inspected strength categories focus on "single bar strength", they evaluate how the bar closes compared to the low, the Balance of Power (BoP) and the relative BoP
The next 3 categories focus on evaluating the bar-to-bar strength: how the bar closes compared to the low of the 2-bar range, how the bar closes compared to prior close - and the relative "shift"
The last 2 "strength" categories evaluate the relative range of bar compared to recent average range and the relative volume.
Understanding the bar inspection & scoring approach
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During inspection for each category, a score is calculated with a value between 0 to 100, then it will be made "directional" - which means that +100 represents highest possible strength score and a value of -100 is the highest possible "weakness" score
Note that a 0 score doesn't mean "weak" - but rather "neutral" - this can be a bit confusing until we get used to the way BSI scoring works.
Example: in relative volume, a bar associated with the lowest volume observed during the lookback length, will have a 0 relative volume score -- while a bar associated with the highest volume observed will have either a +100 or a -100 score (depending on whether it's an up or down bar) - same thing for relative range.. and so on
Here are the 8 strength categories evaluated by the BSI
1 Bar closing score
2 Body : Spread (BoP) ratio
3 Relative BoP
4 2-bar Closing Score
5 2-bar Shift Ratio (Shift : 2R)
6 Relative Shift
7 Relative Range
8 Relative Volume
Specific meaning of keywords / concepts (within BSI context):
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Relative : compared to recently observed values (= within Lookback # bars)
Shift : the change in closing value vs prior bar
Bar Spread : high - low
Range : True Range ..... as in the tr() Pine function, so not to be confused with "spread"
More detailed notes about scoring and calculations for each strength category are included within the code
BSI Settings:
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Here is a chart showing the main sections in the BSI Settings box and how to configure it to your preference
Using the BSI:
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- I use BSI for 2 main scenarios
(1) Guiding my Day-to-day trading: the usage here is roughly similar to a volume-weighted dual-period RSI .. with a lot more options - picking and choosing between the 8 strength categories in BSI allows for 255 variations of "strength evaluations" - a trader can choose to focus only on "single bar strength" score categories, so only picks the top 3 in the settings - another trader wants to track only the strength reflected by the relative range and relative volume, so picks the lower 2 categories. another trader wants to use BSI as a volume weighted Balance of Power.. and so on. Many combinations are possible.
i have added couple of charts that explain some of the "signals" we can expect from BSI (below chart) - note that i use the "Green/Red mountain plot" as the "prevailing sentiment" - as it confirms the longer term strength (or weakness). the BSI line plot reflects the short term strength and not necessarily tied directly to how the price is moving (see example in the chart - and also compare to how RSI works)
- 2 important points here if you plan to use BSI in trading: set BSI up on a 1-min or 5-min chart and watch how it works to learn how it evaluates each bar - and always use BSI in combination with other indicators that you are familiar with to validate and confirm any signals
(Important note: do not react to the values in the table as they change in real time - i found that to be very tempting - rather look at the broader context and the flow of the BSI / sentiment) - you can also test BSI with Paper Trading in TV - it's like a new car that you need some time to get used to :)
(2) Use BSI to help learn chart / pattern analysis - watch BSI print scores against the various categories in real time to hone your chart (pattern) reading skills and how to evaluate strength of various bar shapes - for example, a bar that closes at the high but does not reach the mid point of the prior bar - strong or weak ? how about a doji or a hammer ? ...etc
Chart showing main usage scenarios
Example BSI in real time:
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I hope this work helps few fellow traders hone their trading skills, or help inspire other ideas - please let me know if you have feedback or suggestions.
Power Trader Study The Power Trader is an indicator based around the Balance of Power Oscillator. Balance of Power is a price-based measurement that evaluates and compares the strength of buyers and sellers by assessing their respective abilities to push prices to extreme points(both extreme highs and extreme lows).
BoP values fluctuate between a maximum value of 100 and a minimum value of -100. When the BoP value is greater than 0, it indicates that buying pressure is greater than selling pressure. Conversely, negative BoP readings mean that selling pressure is greater than buying pressure.
The exponential moving average of Balance of Power values is displayed as a gray line on the chart. The upper red line represents the upper bound at which a security is considered overbought. The lower green line represents the threshold where we start to consider a security to be in an oversold state.
When the gray BoP EMA line crosses below the lower green line, it changes color to green then changes back to gray once it crosses back above that lower threshold. Similarly, the line turns red when it crosses above the upper red line.
When the EMA line is between the upper and lower bounds, it signifies that there is no significant difference between the power of buyers versus the power of sellers. The top red area indicates that the amount of buying pressure is relatively high. The lower green area means that selling pressure is abnormally high.
When the BoP line falls between the red and green areas, do not take action. When the BoP line turns green and is inside the green area, enter a long position. When the BoP line rises above the red line and into the upper red area, exit the long position.
Entry signals are displayed as vertical green lines that extend the length of the chart. Exit signals are represented by the same lines, except in red.
Users can decide the order of signals in the input option menu through the ‘allow repeat signals’ parameter. If this is set to false, the study will generate signals in the logical chronologic order of . If it is set to true, then signals will be generated as they come, regardless of whether the last signal was its inverse. This means that it could generate sequences like this for example .
Additionally, the stop and limit can also be set in the input menu through the ‘stop’ and ‘limit’ options. This input option accepts parameters of type float (ie: numbers that contain decimals).
The 'Upper Bound for BoP Values' and 'Lower Bound for BoP Values' input options gives traders the option to adjust the upper and lower thresholds for buy and sell signals. It is important to note that setting the upper bound higher or the lower bound lower will result in less frequent signals (and vice versa).
When it is time to enter a long position, an alert with the following message is sent “Power Trader - High Sell Pressure, Enter Long”.
When it is time to exit a long position, an alert with the following message is sent “Power Trader - High Buy Pressure, Exit Long”.
The Power Trader, along with all of our other invite-only scripts, can be found on our website:
profitprogrammers.com
Volume weighted Balance of PowerIt's a simple indication.
I multiplied the output of bop with volume, make it more smoother.
SN Smoothed Balance of Power v2Hi all,
here is an updated version of the indicator script I published yesterday.
The goal of this indicator is to try and find darkpool activity. The indicator itself is not enough to fully identify darkpool but it should be able to detect quiet accumulation. What makes this Balance of Power different from others on TV is that it is smoothed by using a moving average.
Notes:
- The values that are default are completely arbitrary except for the VWMA length (a 14-day period for the 1D chart is the norm). For instance the limit where it shows red/green I picked because it works best for the 1D chart I am using. Other TF's and charts will need tweaking of all the values you find in the options menu to get the best results.
- I modified the indicator such that it is usable on charts that do not show volume. HOWEVER, this chart is default to NYMEX: CL1!. To get different volume data this needs to be changed in the option menu.
- I am in no way an expert on darkpool/HFT trading and am merely going from the information I found on the internet. Consider this an experiment.
Credits:
- Lazybear for some of the plotting-code
- Igor Livshin for the formula
- TahaBintahir for the Symbol-code (although I'm not sure who the original author is...)
Smoothed Balance of PowerSmoothed BOP to try and find dark pool activity. Only works in charts with working volume!
Credits go to LazyBear for some coding on the plotting and Igor Livshin for the formula.
