IBD PowerTrendThis IBD PowerTrend indicator is designed to help traders identify strong market uptrends based on the IBD Market School's Power Trend methodology. It is intended to be added to daily charts on major indexes.
Concept and Methodology
The IBD PowerTrend helps traders identify strong market uptrends. Markets generally exist in three states: uptrends, downtrends, and rangebound motion. This methodology focuses on:
Downtrends: Stay out of the market.
Rangebound markets: Often frustrating, best avoided.
Uptrends: Identify the strongest uptrends early.
This indicator uses IBD's research on historical uptrends to help traders get in and stay in during robust market phases.
How It Works
A PowerTrend starts when the following four conditions are met simultaneously on a major index:
10-Day Low Above 21-Day EMA : The market's low must be above the 21-day exponential moving average (EMA) for at least 10 consecutive days.
21-Day EMA Above 50-Day SMA : The 21-day EMA must be above the 50-day simple moving average (SMA) for at least five consecutive days.
50-Day SMA Uptrend : The 50-day SMA must be in an uptrend (one day is sufficient).
Market Closes Up : The market must close higher than the previous day's close.
A PowerTrend typically ends when the 21-day EMA crosses back below the 50-day SMA. However, there are rare cases where a PowerTrend can end early due to a circuit breaker or a follow-through day failure. In this script, a circuit breaker is defined as a break of the 50-day line and being more than 10% below recent highs (interpreted as three months).
How to Use
When the PowerTrend is active, the indicator will plot green circles, signaling a strong market uptrend. During these periods, traders might observe opportunities in growth stocks breaking out of sound bases and consider the use of margin. Conversely, during downtrends, the indicator suggests a more defensive approach.
It is recommended to use on daily timeframe.
Chart Description
Main Chart:
- EMA 21 (blue): The 21-day exponential moving average.
- SMA 50 (red): The 50-day simple moving average.
First Panel:
- IBD PowerTrend Indicator: Plots the PowerTrend status with green circles indicating an active PowerTrend.
Second Panel:
- Volume Bars
Breadth Indicators
On Balance Volume (OBV) with Multiple SMAs IndicatorThe On Balance Volume (OBV) with Multiple SMAs Indicator is a powerful tool designed to provide insights into market momentum and volume trends. By combining the traditional OBV calculation with multiple Simple Moving Averages (SMAs), this indicator helps traders to identify potential changes in trend and confirm the strength of existing trends.
Key Features
On Balance Volume (OBV):
OBV is a cumulative volume-based indicator that adds volume on up days and subtracts volume on down days. It helps to identify the buying and selling pressure.
OBV is calculated by summing the volume when the closing price is higher than the previous close and subtracting the volume when the closing price is lower than the previous close.
Simple Moving Averages (SMAs):
SMAs are calculated on the OBV to smooth out the fluctuations and highlight the underlying trend.
This indicator includes the following SMAs:
21-period SMA: Short-term trend indicator, helps in identifying quick trend reversals.
60-period SMA: Medium-term trend indicator, provides a balance between short-term and long-term trends.
100-period SMA: Long-term trend indicator, useful for identifying sustained trends.
200-period SMA: Very long-term trend indicator, helps in identifying major trend directions and potential changes.
How to Use
Identify Trend Direction:
The slope and direction of the OBV line indicate the overall buying and selling pressure in the market.
When OBV is above its SMAs, it suggests a strong buying pressure. Conversely, when OBV is below its SMAs, it indicates selling pressure.
Confirm Trends:
The crossovers of the OBV line and its SMAs can act as confirmations for trend changes. For example, when OBV crosses above the 21-period SMA, it may signal a short-term bullish trend.
Support and Resistance:
The SMAs can act as dynamic support and resistance levels for the OBV line. Price bouncing off these levels may provide entry and exit points.
Visualization
OBV Line: Plotted in blue to represent the cumulative volume trend.
21-period SMA: Plotted in red, indicating short-term trends.
60-period SMA: Plotted in orange, representing medium-term trends.
100-period SMA: Plotted in green, showing long-term trends.
200-period SMA: Plotted in blue, indicating very long-term trends.
MVRV Ratio - R.BonaldiMVRV Ratio Indicator
The MVRV Ratio Indicator is a powerful tool for cryptocurrency traders and investors. It provides a visual representation of the Market Value to Realized Value ratio, helping you assess whether a cryptocurrency is overvalued or undervalued.
What is the MVRV Ratio?
Market Value: The current market price of the cryptocurrency multiplied by its circulating supply.
Realized Value: The average price at which each unit of the cryptocurrency was last moved on the blockchain, providing a more realistic view of its actual value.
How to Use This Indicator:
Identify Critical Levels:
The indicator displays a blue line representing the MVRV Ratio.
Horizontal lines at levels 1 (red) and 3 (green) help you quickly see significant thresholds.
When the blue line is below the red line (MVRV < 1), the cryptocurrency is considered undervalued.
When the blue line is above the green line (MVRV > 3), the cryptocurrency is considered overvalued.
Visual Cues:
The background turns red when the MVRV Ratio is below 1, indicating potential buying opportunities.
The background turns green when the MVRV Ratio is above 3, signaling potential selling opportunities.
Why Use the MVRV Ratio?
Risk Management: By identifying overvalued and undervalued conditions, you can make more informed decisions, reducing the risk of buying high and selling low.
Market Sentiment: The MVRV Ratio provides insight into market sentiment, helping you gauge the overall mood and potential future movements.
Timing: Use the indicator to time your entries and exits more effectively, aligning your trades with the underlying value of the cryptocurrency.
Whether you're a long-term investor looking to accumulate during undervalued periods or a short-term trader aiming to capitalize on overvalued spikes, the MVRV Ratio Indicator offers a clear and concise way to enhance your trading strategy.
Fractals [NT-DIGITALS]Description:
The Fractals Detector indicator in Pine Script version 5 identifies potential turning points using specific candlestick patterns. Fractals are significant in technical analysis as they indicate potential highs or lows in price. A fractal high forms when the highest price of a candlestick is surrounded by two lower highs on either side. Conversely, a fractal low forms when the lowest price of a candlestick is surrounded by two higher lows on either side.
Features:
Detects fractal highs and lows on the chart.
Customizable parameters for the number of bars to the left and right required to form a fractal.
Displays distinct symbols for fractal highs (red upward arrows) and fractal lows (green downward arrows).
Parameters:
Bars to the Left: Number of bars to the left to form a fractal (default: 2).
Bars to the Right: Number of bars to the right to form a fractal (default: 2).
Usage:
This indicator is useful for traders looking to identify potential turning points in prices. Fractals can serve as entry or exit points based on the detected reversals.Description:
The Fractals Detector indicator in Pine Script version 5 identifies potential turning points using specific candlestick patterns. Fractals are significant in technical analysis as they indicate potential highs or lows in price. A fractal high forms when the highest price of a candlestick is surrounded by two lower highs on either side. Conversely, a fractal low forms when the lowest price of a candlestick is surrounded by two higher lows on either side.
Features:
Detects fractal highs and lows on the chart.
Customizable parameters for the number of bars to the left and right required to form a fractal.
Displays distinct symbols for fractal highs (red upward arrows) and fractal lows (green downward arrows).
Parameters:
Bars to the Left: Number of bars to the left to form a fractal (default: 2).
Bars to the Right: Number of bars to the right to form a fractal (default: 2).
Usage:
This indicator is useful for traders looking to identify potential turning points in prices. Fractals can serve as entry or exit points based on the detected reversals.
RSI Screener / Heatmap - By LeviathanThis script allows you to quickly scan the market by displaying the RSI values of up to 280 tickers at once and visualizing them in an easy-to-understand format using labels with heatmap coloring.
📊 Source
The script can display the RSI from a custom timeframe (MTF) and custom length for the following data:
- Price
- OBV (On Balance Volume)
- Open Interest (for crypto tickers)
📋 Ticker Selection
This script uses a different approach for selecting tickers. Instead of inputting them one by one via input.symbol(), you can now copy-paste or edit a list of tickers in the text area window. This approach allows users to easily exchange ticker lists between each other and, for example, create multiple lists of tickers by sector, market cap, etc., and easily input them into the script. Full credit to @allanster for his functions for extracting tickers from the text. Users can switch between 7 groups of 40 tickers each, totaling 280 tickers.
🖥️ Display Types
- Screener with Labels: Each ticker has its own color-coded label located at its RSI value.
- Group Average RSI: A standard RSI plot that displays the average RSI of all tickers in the group.
- RSI Heatmap (coming soon): Color-coded rows displaying current and historical values of tickers.
- RSI Divergence Heatmap (coming soon): Color-coded rows displaying current and historical regular/hidden bullish/bearish divergences for tickers.
🎨 Appearance
Appearance is fully customizable via user inputs, allowing you to change heatmap/gradient colors, zone coloring, and more.
RSIBands with BBThis indicator combines three popular technical analysis tools:
RSI Bands: These bands are based on the Relative Strength Index (RSI) and visually represent overbought and oversold zones. The indicator plots upper and lower bands calculated using a user-defined RSI level and highlights potential buying and selling opportunities near these zones.
Bollinger Bands: These bands depict volatility with a moving average (basis line) and upper and lower bands at a user-defined standard deviation away from the basis line. Narrowing bands suggest potential breakouts, while widening bands indicate increased volatility.
Williams Fractals (with Confirmation): This custom function identifies potential reversal points based on price action patterns. The indicator highlights buy/sell signals when a confirmed fractal forms (previous fractal and price crossing a Bollinger Band).
Key Features:
User-defined parameters: You can adjust the RSI level, Bollinger Band standard deviation, and fractal period according to your trading strategy.
Visual confirmation: The indicator highlights confirmed buy/sell signals based on fractal patterns and price crossing Bollinger Bands.
Flexibility: This indicator provides a combination of trend, volatility, and reversal identification tools, allowing for a multi-faceted approach to technical analysis.
How to Use:
Add the indicator to your chart.
Adjust the RSI level, Bollinger Band standard deviation, and fractal period based on your preference.
Look for buy signals when a green background appears and there's a confirmed up fractal (upward triangle) with the price crossing above the upper Bollinger Band.
Look for sell signals when a red background appears and there's a confirmed down fractal (downward triangle) with the price crossing below the lower Bollinger Band.
Disclaimer:
This indicator is for informational purposes only and should not be considered financial advice. Always conduct your own research and due diligence before making any trading decisions.
Artharjan Day Trading RangeHi,
I have created Artharjan Day Trading Range indicator that plots the Intraday Trading Range for the day based on past 5 Days ATR value and takes 50% of that value and plots it above and below the current day's opening price. If current day close crosses above the Upper Level then we may see a Bullish trend otherwise Bearish trend can be seen. If the price trades between these two levels then options writers can write the Call options above Upper Level and Put options below Lower Levels.
I hope traders would love to use this script for trading Options.
Regards
Rrahul Desai
@Artharjan
NYSE TickThe NYSE Tick indicator is a market breadth indicator used to determine short-term bullish or bearish market sentiment. The NYSE Tick index compares the number of stocks on the New York Stock Exchange that are ticking up to the number of stocks ticking down at a specific moment in time. When the NYSE Tick is hovering around the zero line, roughly the same number of stocks are ticking up as are ticking down. When the overall market is rising it will usually present on the NYSE Tick as a rise in value that will generally stay mostly above the zero line for a period of time. The opposite is true when the general market is falling and can be seen as the NYSE Tick staying mostly below the zero line. This information can be very helpful for a short-term day trader who trades a market that also follows many of these same stocks, like the E-Mini S&P 500 Futures (ES), for example. While the index can theoretically rise or fall to over ±2,000 if all stocks on the NYSE are ticking up or down at the same time, it’s generally considered an extreme movement if the NYSE Tick is ±1,000. For this reason, the indicator has default reference lines at ±1,000 and halfway marks at ±500. In order to partially smooth out the movement and make movement trends more easily read, the indicator plots the values using Heikin Ashi candles instead of the standard bars or candlesticks. The price-line value displayed is an accurate live value, however, rather than the OHLC average value of a standard Heikin Ashi candle. Since the standard hours for the NYSE are Monday – Friday, 09:30 – 16:00 EST, the indicator only plots bars during this time.
Quadratic MAThe Quadratic Moving Average (QMA) is an advanced smoothing indicator that provides a smoother and more responsive moving average by applying the Weighted Moving Average (WMA) methodology in a unique, multi-layered approach. This indicator is especially useful for identifying trends in highly volatile markets where data points vary significantly.
Calculation:
The QMA is calculated by first determining a basic WMA over half the specified period and then modifying it by subtracting the WMA over the full period, effectively emphasizing recent price changes. This result is then re-smoothed using another WMA function applied over the square root of the specified length, providing a quadratic enhancement to the typical WMA.
Usage:
The QMA can be particularly effective in trend-following strategies. When the price moves above the QMA line, it may indicate a bullish trend, suggesting a potential buy signal. Conversely, if the price falls below the QMA line, it may signal a bearish trend, indicating a potential sell signal.
Settings:
Length: Controls the sensitivity of the QMA to price changes. A shorter length will make the QMA more responsive to price changes, while a longer length will smooth out the moving average further, potentially reducing the number of signals and noise.
Tips:
Combine the QMA with other forms of analysis, such as volume indicators or momentum oscillators, to confirm trends and refine trading signals.
Adjust the length parameter according to your trading style and the asset's volatility to optimize performance.
ADI Market Internals MatrixUsage
This script is designed for use during market hours but is particularly useful in the last trading hour—a period known for increased volatility and volume as traders close positions and make final decisions for the day.
Trend Analysis
The histogram provides a quick visual reference for the market's direction based on USI:ADD and $VOLSPD. A predominance of green bars suggests a bullish trend, while red bars indicate bearish conditions based on the BIAS EMA.
Volatility Assessment
The VIX label gives a quick glance at the user-inputted VIX pivot, aiding in volatility assessment and bias determination.
Features
VIX Label: Changes color (red/green) to indicate a bullish or bearish bias based on the user's input for the VIX pivot.
EMA Calculations: Calculates the EMAs for USI:ADD and $VOLSPD based on custom input, which helps determine the market trend.
Trend Determination: Identifies the close value of USI:ADD and $VOLSPD and whether they are above or below their respective EMAs.
Loopback Period: Calculates how far to look back to determine the trend, adjustable by the user.
Market Hours Control: Includes an input (startTime) for specifying when the histogram should start and end (9:30 AM to 4:00 PM EST).
Histogram Coloring
Green: Indicates a bullish trend (above the specified EMA length).
Red: Indicates a bearish trend (below the specified EMA length).
Gray: Indicates a neutral trend.
Customization
Users can adjust the script's sensitivity by changing the length for the EMAs, vixThreshold, startTime, and loopbackPeriod to fit their trading style or market conditions.
Note
Always use this tool in conjunction with other technical analysis tools and ensure proper risk management strategies are employed.
NSE Market Breadth based on 4% Advance & DeclineThis indicator displays a ratio count of NSE (India) stocks advancing or declining by 4% daily.
Market breadth provides insights into the participation of stocks in a market's movement.
Various interpretations of market breadth exist, including gauging the quantity of new highs and new lows or evaluating up and down volume. Nevertheless, all breadth indicators fundamentally stem from the same basic concept, which can be expressed mathematically as the number of advancing & declining stocks.
Thus, a count or ratio of advancing & declining stock objectively depicts the participation of stocks in an index or stock universe.
A 4% advance or decline shows a significant range expansion.
⦿ The script calculates advances as a ratio of the daily percentage change ≥ 4% & the total number of stocks.
⦿ Declines are calculated as a ratio of the daily percentage change < -4% & the total number of stocks.
⦿ Net breadth is simply calculated by subtracting the declines from the advances. (4% up - 4% down). This depicts whether the day was bearish or bullish.
Green area depicts the 4% advances.
Red area depicts the 4% declines.
The table provides the actual values for the Advances, declines & the net breadth for the day.
There is an option to turn on dark mode in the settings.
There is an option to display only the net breadth .
You can turn on the Expanded mode for the table which will display the data for the past week.
Among other options, you can choose to not display colors in the table .
There is an option plot ' comfort' levels ' of +/- 10 also.
Interpretation
A market where advances are more than declines is indicative of a healthy bull market. But extreme breadth can signal exhaustion, often leading to a reversal. This is true in case of advances as well as declines.
If a market continues to rise while breadth does not increase, this is considered a divergence, which frequently leads to a reversal of the prevailing trend.
Dependency:
The script uses the Pine Seeds service to import custom data hosted in a GitHub repository and accesses it via TradingView as the frontend. So, the number of bars appearing on charts is fully dependent on the amount of historical data available. Any error or omission, if there, is a reflection of the hosted data, & not that of TradingView.
Limitations:
Such data has some limitations, like it can only be updated at EOD (End-of-Day), & only daily-based timeframes can be applied to such data. Irrespective of the intraday changes, only the last saved value on the chart is seen. So, it's best to use this script as EOD, rather than intraday.
At the time of publication of this script, historical data was available till the year 2004.
The universe of stocks chosen for the data is all stocks with latest Close >= 1 and Market Cap > 10.
Credits:
NSE Market Breadth data is from Chhirag_Kedia , & the Pine seeds are courtesy of EquityCraze
NSE Market Breadth VolumeMarket Breadth Volume (MBV) is defined as the ratio between the count of stocks giving a volume 1.5 times greater than its 20-day SMA, and the count of stocks giving a volume 0.5 times lesser than its 20-day SMA. This breadth indicator reflects participation in the markets. A sloping upward MBV shows that money is coming into the market.
MBV was devised by Chhirag_Kedia & this is how he explains it:
When it surpasses 1+ (benchmarking), it shows a matured upswing, which in the initial stages will result in strong buying but as the time passes with such a high rating will result in an extended market with high no. of breakout failures.
The final stage is ratings above 1.5 to 2+. These in later stages will reflect extreme reading and will result in trend exhaustion.
Similarly on the bearish side, the volume will dry up as we get a shakeout or a strong red day. This reduction in participation will result in lacklustre outcome in breakouts and will subsequently dry up further, usually coming under 0.2 to show extreme dryness.
Look for a systematic pick-up in volume post 15-20 days of first shakeout. Look for days with significant pick up with positive breadth, like volume coming around 0.20 etc. jumps to 0.35 to 0.45 etc. This will suggest that participation is picking up in the market and we will see a rally soon.
FEATURES
⦿ Multi-color Mode
For the sake of visual representation, you can turn on the multi-color mode where the volume bars can have one of the 4 colors:
Dry volume (Grey): Volume ≤ 0.25
Low Volume (Orange): Volume between 0.25 & 0.5
Mid Volume (Green): Volume between 0.5 & 1
High Volume (blue): Volume > 1 → Mature upswing
⦿ Background Net Breadth
Option to display the to display the net breadth as a background color. By default, the background colors are turned off.
⦿ Moving Average
There is an option to turn on a moving average of the volume. By default, it is the 5 SMA. This shows the near-term trend, & whether the MBV is sloping upward or not.
Dependency:
The script uses the Pine Seeds service to import custom data hosted in a GitHub repository and accesses it via TradingView as the frontend. So, the number of bars appearing on charts is fully dependent on the amount of historical data available. Any error or omission, if there, is a reflection of the hosted data, & not that of TradingView.
Limitations:
Such data has some limitations, like it can only be updated at EOD (End-of-Day), & only daily-based timeframes can be applied to such data. Irrespective of the intraday changes, only the last saved value on the chart is seen. So, it's best to use this script as EOD, rather than intraday.
At the time of publication of this script, historical data was available till the year 2004.
The universe of stocks chosen for the data is all stocks with latest Close >= 1 and Market Cap > 10.
Credits:
NSE Market Breadth data is from Chhirag_Kedia , & the Pine seeds are courtesy of EquityCraze
NSE Percentage of stocks above Moving AveragesThis indicator displays the percentage of NSE (India) stocks trading above key moving averages.
Market breadth measures the degree of participation & the conviction in the overall mood of the underlying index. A positive market breadth is said to happen when more stocks are advancing than are declining. Among many ways to measure this, one simple way is the % of stocks trading above a certain moving average. When most of the stocks are trading above a specific moving average, the market breadth is termed strong.
This script uses 10-day & 20-day EMA for short-term timeframes, & 50-day & 200-day EMA for medium to long-term timeframes.
Default Mode
We have a bullish bias when >50% of stocks are above their 50-day and 200-day MAs. We have a bearish bias when <50% of stocks are above their 50-day and 200-day MAs.
We also look at short-term timeframes (10 & 20 MA) for overbought and oversold levels. Values above 80% are considered overbought and readings below 20% are deemed oversold .
Individual Moving averages, & the table also, can be turned off.
Oversold/overbrought market breadth does not necessarily indicate reversal, but rather an exhaustion. This can get resolved by either a price correction or a time correction. The breadth can remain in overbought zones for a long time while the price is in a strong uptrend — and equally so at oversold zones during a strong downtrend.
Moving Average of Market Breadth
Turning-on the MA of breadth displays the 50-day Moving Average of the % of stocks above the 50-day Moving Average.
This is another way to visualise a smoothed version of the market breadth. If the % of stocks above the 50-day Moving Average is above its own 50-day Moving Average, then we can say that the breadth is strong.
Mini Mode
Turning on the mini-mode converts the table into a 4-color block, with the blocks reflecting the status of 10, 20, 50 & 200 MAs respectively, from top to bottom.
Text Mode
Turning on the text-mode converts the percentage numbers in the table into 1-word text descriptions.
Dependency:
The script uses the Pine Seeds service to import custom data hosted in a GitHub repository and accesses it via TradingView as the frontend. So, the number of bars appearing on charts is fully dependent on the amount of historical data available. Any error or omission, if there, is a reflection of the hosted data, & not that of TradingView.
Limitations:
Such data has some limitations, like it can only be updated at EOD (End-of-Day), & only daily-based timeframes can be applied to such data. Irrespective of the intraday changes, only the last saved value on the chart is seen. So, it's best to use this script as EOD, rather than intraday.
At the time of publication of this script, historical data was available till the year 2004.
The universe of stocks chosen for the data is all stocks with latest Close >= 1 and Market Cap > 10.
Credits:
NSE Market Breadth data is from Chhirag_Kedia , & the Pine seeds are courtesy of EquityCraze
NSE Net New HighsThis indicator displays the net number of stocks on NSE (India) making 52-week highs or lows. The count is displayed as a fraction of the total number of stocks in the NSE universe.
Net New Highs (NNH) are calculated by taking the number of new 52-week highs on any given day and subtracting from it the number of new 52-week lows. A market is considered strong (bullish) when NNH are positive, or, in other words, when new highs exceed new lows.
⦿ Background highlight : We consider the bias as positive (bullish) when NNH stays positive for 3 consecutive days, & negative (bullish) when NNH stays negative for 3 consecutive days. Positive bias is highlighted with a green background. Negative bias is highlighted with a red background.
⦿ Moving Average : Another way to decrease whipsaws in analysing positive or negative NNH can be by smoothing them with a moving average. The script uses a 10-day SMA (user can modify this) of NNH. The bias is bullish when the smoothed NNH line is positive and bearish when negative.
⦿ Table: There is an option to display, in a table, the number of stocks making new 52-week highs and new 52-week lows separately. This helps in understanding which of the two metrics is responsible for the other overall net score.
Dependency:
The script uses the Pine Seeds service to import custom data hosted in a GitHub repository and accesses it via TradingView as the frontend. So, the number of bars appearing on charts is fully dependent on the amount of historical data available. Any error or omission, if there, is a reflection of the hosted data, & not that of Tradingview.
Limitations:
Such data has some limitations, like it can only be updated at EOD (End-of-Day), & only daily-based timeframes can be applied to such data. Irrespective of the intraday changes, only the last saved value on the chart is seen. So, it's best to use this script as EOD, rather than intraday.
At the time of publication of this script, historical data was available till the year 2004.
Credits:
NSE Market Breadth data is from Chhirag_Kedia , & the Pine seeds are courtesy of EquityCraze
The script concept & colors are based on CarusoInsights 's NNH script for US markets , & Fred6724 's open-source version of that script.
CSC_Macchiato Price Trend Oscillator by CoffeeShopCryptoDescription:
Introducing "The Macchiato" – your go-to indicator in the realm of trading, meticulously crafted by CoffeeShopCrypto. Much like the complex flavors of a well-made Macchiato, this tool offers a robust suite of functionalities designed to enhance your trading experience across Forex, stocks, and cryptocurrencies.
The Macchiato stands out for its distinct ability to confirm market trends, identify building momentum, and navigate through periods of market stalls. Drawing cues from the RSI (Relative Strength Index), its color scheme dynamically reflects the shifts in market forces, providing traders with real-time insights into price action dynamics.
Gone are the days of navigating through market uncertainties blindly. With The Macchiato at your disposal, you gain a more clear understanding of market movements, helping you to make informed decisions with confidence. Whether you're a seasoned trader or just starting out, this indicator adds more confluence to your trading strategy, ensuring that you stay ahead of the curve in today's fast-paced trading environment.
So, say goodbye to guesswork and hello to precision trading with The Macchiato – where real-time data analysis meets actionable insights, all in the quest for trading success.
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The Histogram:
The Macchiato Histogram gives you a representation of current change in closing values against the closing values within a "Range" of the lookback period. It calculates your price ranging extremes of the highest high vs lowest low according to your lookback setting. Then it shows you whether the momentum of these closing prices calculated against the highs or the lows is either rising or falling. It takes into account the difference in the highs, lows, open and closing prices as a whole. This helps to determine the actual trend of your market structure.
Histogram Rising / Falling:
The Histogram of the Macchiato doesn't care about being above or below zero. Since we are simply calculating momentum rising or falling, then we only care that the histogram is rising or falling. Especially when it's doing this in line with our Macchiato Average.
Macchiato Average:
Included is a smoothing line called "the Macchiato Average"
Using the average is just like using a moving average against price action, however here we are using one against momentum to determine whether price is moving against, with, better, or worse than the current average of momentum.
The RSI:
The base purpose of the RSI in this tool is mainly to color the columns of the Histogram.
I gave you the benefit of exposing the RSI so you can see where it lies in the oscillator for any additional strategies you may use.
How the RSI Colors the Histogram:
The Histogram has 4 momentum colors and 1 non-momentum color.
They are described below but here we will understand why they exist the way they do against the RSI positioning.
The 4 momentum colors:
You can have the RSI in 4 different positions against its moving average.
Trend Trading Colors and setups:
Strong Long - RSI above zero and above its average is a strong long trend.
Strong Short - RSI below zero and below its average is a strong short trend.
These can also be seen as breakout indications.
Counter Trend Trading and Setups:
Weak Long - RSI above zero and below its average is a weak long trend.
Weak Short - RSI below zero and above its average is a weak short trend.
(Only trade weak momentum to known internal support and resistance areas.)
You'll notice that when the RSI is set up against its RSI Moving average under these conditions, the Histogram is colored accordingly to tell you whether you have strong or weak momentum.
For these colors to appear accordingly, the RSI and the momentum of the histogram must be moving in the same direction as each other.
The 5th color of the Histogram:
(GRAY)
This is where there is a divergence / disagreement between your RSI setup and the momentum being observed. If momentum is moving one way and the force of the RSI is not matching the overall momentum, you have a divergence. This commonly means that higher timeframe momentum is in disagreement to lower or current timeframe closing momentum changes.
Conditions of a Bullish Trending Market:
The color scheme has specific implications when all columns are above zero.
As noted before, the Macchiato doesn't care that it is above or below zero. It simply needs to be rising or falling. The color scheme is depicted by what the RSI is doing in relation to ZERO and where it lies against its average.
This image helps to differentiate what is happening with momentum when in a strong bullish market.
The color scheme is always the same. You always have 4 conditions of momentum.
According to the default settings:
Strong Long = Dark Green
Weak Long = Light Green
Strong Short = Dark Red
Weak short = Light Red
The final color is GRAY which is standard for a NON directional market.
You can alter the colors as you choose for your chart background and color preference.
Macchiato Bias Line Conditions
The "Bias Line" helps you understand whether your current momentum is traveling into opposing forces or if your momentum is going WITH the bias.
Going against the bias would be like momentum and price action converging against each other.
Going in the same direction would offer much larger movements on price.
Using the Bias to trade
Trading Internal Support and Resistance
Noting previous price action, pivots, and price swings is important in its use.
When you see momentum coming to a halt or changing, note the previous price action that you are approaching. You should see the histogram change its color, telling you where momentum is ending in its current direction.
EXAMPLE BULLISH MARKET FLIP
There is the exception however that when the market flips, from bearish to bullish, you can see the following:
BIAS LINE switches to a Bullish Bias
Histogram is showing Strong Long Color
Histogram stays ahead of the BIAS line
Price should break previous swing highs to create new highs.
Strategy you can use in observance. (short pause, to pullback, to continued short)
If the momentum is rising while RSI is falling you'll have gray columns until the RSI is in the correct positions against its average.
For your trend to continue downward you are looking for dark red or "Strong Short" columns.
When there is a disagreement, your columns will be gray and then switch to weak long. (Light Green)
This is because your RSI is above its average while the RSI is bearish.
This light green area can be observed as the pullback area.
If you only want to trade short, you would wait for the pullback to be complete.
This occurs when the weak long changes back to gray and then strong short, or skipping gray into strong short.
Trend Catcher Strategywhat is Trend Catcher Strategy?
it is a strategy that opens long or short positions in the direction of the trend.
what it does?
TCS detects trend formations using its own unique method. Then, it opens a position in the direction of the trend and closes a part of the opened transaction (half according to default values) when the price reaches a certain level, and moves the remaining position to the point where it thinks the trend is over. You can easily understand how it works by looking at the images:
how it does it?
It obtains a value called a "limit" by dividing the difference between the highest value and the lowest value in a certain range (that is, the vector sum) to the sum of the lengths of the candles in a certain range (the total distance traveled). then multiplies this by 100 to get a percentage value. The closer this value is to 100, the stronger the trend.
NSE + BSE Volume with Relative Volume Multiplier By AfnanIntroducing the Combined NSE + BSE Volume Indicator with Relative Volume indicator (CRVI).
The Combined NSE + BSE Volume Indicator with Relative Volume Multiplier (CRVI) is an essential tool for Indian traders who are engaged in volume breakout analysis, particularly breakout traders.
Key Features of CRVI:
Combining NSE and BSE Volume: The CRVI consolidates volume data from both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) into a single chart, ensuring that traders do not miss out on vital volume data from either exchange.
Understanding Operator Activity: This indicator gives traders the advantage of identifying whether operators or smart investors are building positions in either exchange. For instance, while observing an NSE stock chart, traders can now identify if operators are building positions in BSE stocks as well.
Add-on to Relative Volume / Volume Breakout Multiplier (RVI) Indicator: The CRVI is an additional feature integrated into the Relative Volume / Volume Breakout Multiplier (RVI) indicator, providing an enhanced perspective on volume dynamics.
Usage of CRVI:
Quantifying Volume Breakouts: The indicator quantifies the degree of volume breakouts concerning the Simple Moving Average (SMA), facilitating a clearer understanding of the strength of volume breakouts.
Relative Volume Interpretation: By comparing the current volume with the volume SMA, the CRVI delivers a breakout number, such as 2.0 for double the volume SMA or 0.50 for half the volume SMA. This assists traders in gauging the momentum and potential trading opportunities more effectively.
Advantages for Traders:
Enhanced Volume Analysis: Breakout traders, in particular, will find the CRVI invaluable for identifying potential trading opportunities and assessing volume strength more accurately.
Essential Toolkit Inclusion: Traders focusing on volume breakout analysis can benefit significantly from incorporating this indicator into their trading toolkit.
Embracing Continuous Improvement:
Every tool and analysis utilized contributes to the ongoing process of becoming more adept traders. Embracing continuous learning and improvement is the foundation of successful trading. As we move forward, armed with the right tools and mindset, we eliminate the doubts of today and pave the way for a more confident tomorrow.
Gratitude :
Your support, likes, and comments are deeply appreciated. If you have any questions, do not hesitate to reach out. Let's work together to make trading an enriching experience!
Previous Day High Low Close By Anil ChawraHow Users Can Make Profit Using This Script:
1. Calculate the difference between the previous day's high and low prices to determine the price range.
2. Identify if today's close price is significantly higher or lower than the previous day's close price.
3. If today's close price is at least 10 points higher than the previous close, consider a potential buy signal.
4. If today's close price is at least 10 points lower than the previous close, consider a potential sell signal.
5. These signals indicate potential profit opportunities based on significant price movements.
6. Users should verify market conditions and perform additional analysis before executing trades.
7. Monitoring price action and volume can help confirm the validity of these signals.
8. Implementing stop-loss orders can help mitigate risks associated with trading based on price movements.
9. Regularly reviewing and adjusting trading strategies based on market conditions is essential for long-term success.
10. Exercise caution and discipline when trading, and consider seeking advice from financial professionals if needed.
How the Script Works:
1. The strategy analyzes the high, low, and close prices of the previous trading day.
2. It calculates the range of prices by subtracting the low from the high.
3. The close price of the current trading day is compared to the previous day's close.
4. If today's close is significantly higher than yesterday's close, it could indicate bullish sentiment.
5. Conversely, if today's close is significantly lower, it could suggest bearish sentiment.
6. A threshold, typically 10 points, is set to identify significant price movements.
7. If today's close is at least 10 points higher, it triggers a potential buy signal.
8. If it's at least 10 points lower, it triggers a potential sell signal.
9. Users can act on these signals to enter or exit trades for potential profit.
10. Regular monitoring, risk management, and market analysis are essential for effective implementation of this strategy.
EMA 9/13/18/25 + Bollinger BandThe indicator combines two components: Exponential Moving Averages (EMAs) and Bollinger Bands.
Exponential Moving Averages (EMAs): The indicator calculates four EMAs with different periods: 9, 13, 18, and 25. An Exponential Moving Average is a type of moving average that places a greater weight and significance on the most recent data points. As the name suggests, it's an average of the asset's price over a certain period, with recent prices given more weight in the calculation, making it more responsive to recent price changes.
Bollinger Bands: Bollinger Bands consist of a simple moving average (the basis) and two standard deviations plotted away from it. The standard deviations are multiplied by a factor (usually 2) to determine the distance from the basis. These bands dynamically adjust themselves based on recent price movements. The upper band represents the highest price level reached in the given period, while the lower band represents the lowest price level.
Combining these components provides traders with insights into both trend direction and volatility. The EMAs help identify trends by smoothing out price data, while the Bollinger Bands offer insights into volatility and potential price reversal points. Traders often use the crossovers of EMAs and interactions with Bollinger Bands to make trading decisions. For example, when the price touches the upper Bollinger Band, it may indicate overbought conditions, while touching the lower band may suggest oversold conditions. Additionally, crossovers of EMAs (such as the shorter-term EMA crossing above or below the longer-term EMA) may signal changes in trend direction.
QuarterCandlesChanges candle color when close is within the top 25% or bottom 25% of candle range (High - Low) on the last candle update.
Due to limitations of barcolor command, I'd suggest that you turn OFF the candle borders (chart settings--> right click on chart --> settings -->symbol and uncheck the border option) to ensure that the bar color is easily identifiable.
EMA 20/50/100/200 [NT-DIGITALS]This script plots Exponential Moving Averages (EMA) of 20, 50, 100, and 200 periods on the chart. EMAs are commonly used by traders to identify trends and potential reversal points in the market. The EMA smooths out price data to create a single line that follows the overall trend more closely than a simple moving average. By plotting multiple EMAs of different periods, traders can observe the interaction between short-term and long-term trends, aiding in decision-making for entry and exit points.
Exponential Moving Average (EMA) is a type of moving average that gives more weight to recent price data, making it more responsive to current price movements compared to a simple moving average (SMA). The EMA is calculated by applying a smoothing factor to the previous EMA value and adding a fraction of the difference between the current price and the previous EMA value. This weighting mechanism results in EMAs reacting more quickly to price changes, making them popular for traders looking to capture short-term trends in the market.
C.S.S.R_RYU INDICATOR단기 STO_MTM, 중기 STO_MTM, CCI & RSI를 계산하여 차트에 반영하는 보조지표
설명:
단기 STO_MTM(스토캐스틱 모멘텀) (5,3)과 중기 STO_MTM (14,3)로 현재 차트의 단기 진행 방향성을 파악하고,
CCI와 RSI 보조지표를 통해 현재 구간은 과매수 혹은 과매도 구간인지 파악 후,
해당 신호들이 모두 해당될 때, 시그널을 플로팅 하는 보조지표
BUY SIGNAL: 단기 Sto_mtm과 중기 Sto_mtm이 동시에 -40이하이면서, CCI가 -100이하, RSI가 30이하일 때
초록색 십자가로 표시
SELL SIGNAL: 단기 Sto_mtm과 중기 Sto_mtm이 동시에 40이상이면서, CCI가 100이상, RSI가 70이상일 때
빨간색 십자가로 표시
(4개의 지표중 하나라도 해당되지 않으면 표시 X)
사용 방법:
시그널의 직관성을 위해 설정에서 RSI에 관한 설정을 제외하고 전부 안보이게 설정(이유: STO_MTM과 CCI보다 RSI의 그래프가 훨씬 직관적이기 때문)
기본적으로 시간대가 클수록 해당 시그널의 신뢰도가 올라간다고 생각함, 4시간>1시간>30분>15분 이런식으로 신뢰도가 올라가지만,
초단기 (1,5,15분봉)에서도 과매도, 과매수 구간을 캐치하는데 시각적으로 직관적이게 만듦.
사용예시:
4시간봉, 1시간봉에서 현재 진행 추세 확인 후, 큰 프레임(일봉,4시간봉)에서 상승 추세일 경우 짧은 시간 프레임(1시간,15분,5분)에서 해당 시그널이 발생했을 때 진입
Short-term STO_MTM, medium-term STO_MTM, CCI & RSI auxiliary indicators reflecting calculations on the chart.
Description:
Calculates short-term STO_MTM (5,3) and medium-term STO_MTM (14,3) to determine the short-term directional bias of the current chart. Utilizes CCI and RSI auxiliary indicators to identify whether the current range is overbought or oversold. When all signals are met, plots a signal indicator.
BUY SIGNAL: Indicates a green cross when both short-term STO_MTM and medium-term STO_MTM are below -40 simultaneously, with CCI below -100, and RSI below 30.
SELL SIGNAL: Indicates a red cross when both short-term STO_MTM and medium-term STO_MTM are above 40 simultaneously, with CCI above 100, and RSI above 70.
(If none of the four indicators meet the criteria, no signal is plotted.)
how to use:
For clarity of signals, exclude all settings related to RSI from the settings menu. Reason being, the graph of RSI is much more intuitive compared to STO_MTM and CCI.
Generally, the higher the timeframe, the higher the reliability of the signal. Confidence in the signal increases as follows: 4-hour > 1-hour > 30-minute > 15-minute. However, designed to visually capture overbought and oversold zones even in short-term (1, 5, 15-minute candles).
Example of use:
Confirm the current trend on 4-hour and 1-hour candles. If there is an uptrend in larger time frames (daily, 4-hour), consider entry when the signal occurs on shorter time frames (1-hour, 15-minute, 5-minute).
Murrey Math
The Murrey Math indicator is a set of horizontal price levels, calculated from an algorithm developed by stock trader T.J. Murray.
The main concept behind Murrey Math is that prices tend to react and rotate at specific price levels. These levels are calculated by dividing the price range into fixed segments called "ranges", usually using a number of 8, 16, 32, 64, 128 or 256.
Murrey Math levels are calculated as follows:
1. A particular price range is taken, for example, 128.
2. Divide the current price by the range (128 in this example).
3. The result is rounded to the nearest whole number.
4. Multiply that whole number by the original range (128).
This results in the Murrey Math level closest to the current price. More Murrey levels are calculated and drawn by adding and subtracting multiples of the range to the initially calculated level.
Traders use Murrey Math levels as areas of possible support and resistance as it is believed that prices tend to react and pivot at these levels. They are also used to identify price patterns and possible entry and exit points in trading.
The Murrey Math indicator itself simply calculates and draws these horizontal levels on the price chart, allowing traders to easily visualize them and use them in their technical analysis.
HOW TO USE THIS INDICATOR?
To use the Murrey Math indicator effectively, here are some tips:
1. Choose the appropriate Murrey Math range : The Murrey Math range input (128 by default in the provided code) determines the spacing between the levels. Common ranges used are 8, 16, 32, 64, 128, and 256. A smaller range will give you more levels, while a larger range will give you fewer levels. Choose a range that suits the volatility and trading timeframe you're working with.
2. Identify potential support and resistance levels: The horizontal lines drawn by the indicator represent potential support and resistance levels based on the Murrey Math calculation. Prices often react or reverse at these levels, so they can be used to spot areas of interest for entries and exits.
3. Look for price reactions at the levels: Watch for price action like rejections, bounces, or breakouts at the Murrey Math levels. These reactions can signal potential trend continuation or reversal setups.
4. Trail stop-loss orders: You can place stop-loss orders just below/above the nearest Murrey Math level to manage risk if the price moves against your trade.
5. Set targets at future levels: Project potential profit targets by looking at upcoming Murrey Math levels in the direction of the trend.
7. Adjust range as needed: If prices are consistently breaking through levels without reacting, try adjusting the range input to a different value to see if it provides better levels.
In which asset can this indicator perform better?
The Murrey Math indicator can potentially perform well on any liquid financial asset that exhibits some degree of mean-reversion or trading range behavior. However, it may be more suitable for certain asset classes or trading timeframes than others.
Here are some assets and scenarios where the Murrey Math indicator can potentially perform better:
1. Forex Markets: The foreign exchange market is known for its ranging and mean-reverting nature, especially on higher timeframes like the daily or weekly charts. The Murrey Math levels can help identify potential support and resistance levels within these trading ranges.
2. Futures Markets: Futures contracts, such as those for commodities (e.g., crude oil, gold, etc.) or equity indices, often exhibit trading ranges and mean-reversion trends. The Murrey Math indicator can be useful in identifying potential turning points within these ranges.
3. Stocks with Range-bound Behavior: Some stocks, particularly those of large-cap companies, can trade within well-defined ranges for extended periods. The Murrey Math levels can help identify the boundaries of these ranges and potential reversal points.
4. I ntraday Trading: The Murrey Math indicator may be more effective on lower timeframes (e.g., 1-hour, 30-minute, 15-minute) for intraday trading, as prices tend to respect support and resistance levels more closely within shorter time periods.
5. Trending Markets: While the Murrey Math indicator is primarily designed for range-bound markets, it can also be used in trending markets to identify potential pullback or continuation levels.
