TEWY - Magic Strength Indicator V2My goal is to equip every trader and investor with the essential tools necessary to confidently navigate the complexities of the financial markets, enabling them to consistently identify opportunities and maintain a position of strength on the winning side of their trades. This indicator stands as an immensely powerful tool, delivering a comprehensive and robust approach to market analysis and decision-making.
Allow me to provide some context regarding the genesis of this indicator. The global financial landscape encompasses a multitude of markets, ranging from the money market to the stock market, cryptocurrencies, commodities, and beyond. Often, these markets display proportional or inverse correlations, unveiling the intricate interplay between them. At the heart of this concept lies a meticulous comparison between a selected ticker and other analogous markets. This analytical approach serves as a pathway to unearthing invaluable insights and intricate patterns across interconnected sectors.
So, I created this indicator, to empower you with the capability to select and construct combinations of up to seven comparable markets and offer a comprehensive perspective on market dynamics.
Let me to elucidate the intricacies of this indicator and delve into its versatile configurations. By understanding its components and tailoring its settings, traders can harness its full potential to make informed and strategic trading decisions.
Related to indicator configuration sections
Section 1. 'PRIMARY AND SECONDARY INDEX' and Section 2. 'GLOBAL REFERENCE INDEX'
To utilize this indicator, begin by configuring at least one comparison indicator in the "Primary Index" field. Additional options include the secondary index (which can function as a sector index) and five global indices. Furthermore, you have the flexibility to adjust their timeframes, allowing for comparisons across various time horizons.
Section 3. ADVANCED FEATURS
Consider a scenario where you've pulled up a chart for "NSE:BANKNIFTY" and desire to assess the relative strength of "NSE:NIFTY" in comparison to global indices. To accomplish this, explore the Advanced Feature section and toggle the "Use Different Base Ticker" option to "Yes." Subsequently, input "NSE:NIFTY" as the symbol/ticker in the designated box. This ingenious feature empowers you to evaluate the strength of "NSE:NIFTY" the backdrop of the "NSE:BANKNIFTY" chart. The result? A remarkably potent analytical capability at your fingertips! The possibilities it offers are indeed remarkable!
Section 4. LINE AND BARCOLOR RELATED
I have dedicated considerable effort to scrutinize historical patterns within the strength indicator of various symbols. Through meticulous analysis, I've identified pivotal conditions that often herald shifts in market or symbol trends. Leveraging this insight, I've devised a system to determine optimal strength line colors and bar colors. This strategic approach adds a layer of precision to the indicator, enhancing its effectiveness in recognizing and visualizing trend changes.
Recognizing the prevailing tendency of global markets to exhibit more upward momentum than downward movement, I've taken into account this inherent "Long Bias." With this understanding in mind, I've incorporated a unique feature that aims to prompt an early transition from red to green bar colors when there's a potential indication of a trend reversal from a downtrend. By proactively signaling the shift in color dynamics, this feature aligns with the overall upward-leaning nature of the markets, enabling traders/investors to respond swiftly to potential changes in trend direction.
By employing the 'Use Simple Method of Calculation,' the determination of strength line color is executed through a straightforward crossover technique. This approach proves particularly effective in scenarios where inverse correlations exist between the symbols or tickers being compared. Additionally, an 'Inverse Scale' option is available, wherein a simple multiplication by -1 is applied to all values. This ingenious feature offers a convenient perspective on symbols or tickers that exhibit inverse correlations, further enhancing the indicator's adaptability to a wide array of market dynamics.
**** It's important to note that the 'Change Bar Color' option is intentionally set to the default selection of 'No.' By design, only when you opt to set it to 'Yes' do custom bar colors come into play on the chart. This thoughtful design choice acknowledges the potential need to preserve bar colors when seeking to discern inverse correlations between symbols. Should you require a modification in bar colors, kindly select 'Yes' to initiate this change and access the custom color functionality.
Section 5. LABELS
Moreover, to facilitate ease of use and organization, I've included a practical feature for instances where you deploy this indicator multiple times on a single chart. Within this context, should you wish to assign quick tags to each instance, a dedicated free-text box is at your disposal. This allows you to conveniently label and categorize different instances of the indicator, ensuring a streamlined and efficient approach to managing your chart analyses.
I encourage you all to embark on a rewarding journey in your trading and investing endeavors. With this indicator as your ally, equipped with its potent analytical capabilities, may your path be marked by well-informed decisions and prosperous outcomes. Wishing you every success in your trading and investment journey!
Should you have any inquiries or require further clarification regarding this indicator, please do not hesitate to reach out to me via direct message. I am here to provide you with the necessary guidance and support to ensure your experience with this tool is both seamless and enriching. Your understanding and satisfaction remain my utmost priority.
By TEWY - Trade Easy With Yogesh
I am Yogesh
Breadth Indicators
McClellan Indicators (Oscillator, Summation Index w/ RSI & MACD)Four indicators in one based on the McClellan Oscillator for both the NYSE and Nasdaq exchanges. Designed to be used in conjunction with each other- plot the Oscillator (Osc), Summation Index (MSI), and RSI/MACD of the MSI on both your SPX and Nasdaq chart. Select the exchange and indicator within the settings. These tools are secondary- but when the signals are combined with the action of the index and stocks can be helpful in identifying market turns and trend strength.
McClellan Oscillator--
The Osc is a market breadth tool that uses a fast and slow EMA based on the difference between advancing and declining stocks on the exchange. Used primarily to identify breadth thrusts, divergences, and extremes (oversold/overbought). Plot horizontal levels to see when the market internals are extremely overbought or oversold, and take note of when the Osc is declining while the market is advancing or vice versa.
McClellan Summation Index--
For intermediate trends the MSI is a running total of the Osc which can be used to confirm the strength of a trend, and spot potential reversals. A 10 period ema is included on this indicator, where crossovers can aid in spotting the change in trend of market internals, and divergences can identify when market internals are not in line with the trend. Shading is applied for when the internals are in a bullish or bearish trend.
Two additional indicators are the RSI and MACD of the Summation Index. An overbought or oversold MSI RSI generally indicates a strong trend in the market internals, however you may want to take note when the RSI stalls and begins to "hook" in the opposite direction. This indicator has signals to show when the market internals may be turning and to be on lookout for trend change.
Similarly- the MACD of the MSI identifies the strength of the trend, and crossovers can be used to help spot reversals. Shading is included in this indicator to spot the bullish/bearish trend of internals.
Cumulative Advance-Decline LineLine that shows the cumulative sum of stocks advancing less declining for either the NYSE or Nasdaq. Includes 10/20/50 day averages and shading when the line is above or below the 20 ema.
Exchange Net Highs-LowsDisplays the net new 52 week highs - 52 week lows for either the NYSE or Nasdaq. Select colors and moving average input within the settings.
Short Term IndeXThe Short-Term Index (STIX) is a simple market indicator designed to assess short-term overbought or oversold conditions in the stock market. Leveraging a combination of advancing and declining issues, STIX provides valuable insights into market sentiment and potential reversals. To enhance its interpretability and reveal the underlying trend with greater clarity, STIX has been refined through a Heiken-Ashi transformation, ensuring a smoother representation of market dynamics.
Calculation and Methodology:
stix = ta.ema(adv / (adv + dec) * 100, len)
STIX is calculated by dividing the difference between the sum of advancing issues (ADV) by the total number of issues traded (ADV + DEC). This quotient is multiplied by 100 to express the result as a percentage. The STIX index ranges from 0 to 100, where extreme values indicate potential overbought (mainly above 60) or oversold (mainly below 40) market conditions.
Heiken-Ashi Transformation:
By applying a Heiken-Ashi transformation to STIX, the indicator gains improved visual clarity and noise reduction. This transformation enhances the ability to identify trend shifts and potential reversal points, making it an even more valuable tool for traders and investors.
Utility and Use Cases:
-The Short-Term Index (STIX) offers a range of practical applications-
1. Overbought/Oversold Conditions: STIX provides a clear indication of short-term overbought or oversold conditions, helping traders anticipate potential market reversals.
2. Reversal Points: STIX can help pinpoint potential reversal points in short-term market trends, providing traders with opportunities to enter or exit positions.
3. Trend Analysis: By observing STIX values over time, traders can assess the strength and sustainability of short-term trends, aiding in trend-following strategies.
The Short-Term Index (STIX), enhanced by its Heiken-Ashi transformation, equips traders and investors with a tool for assessing short-term market conditions, confirming price movements, and identifying potential reversal points. Its robust methodology and refined presentation contribute to a more comprehensive understanding of short-term market dynamics, enabling traders to make well-informed trading decisions.
See Also:
- Other Market Breadth Indicators-
Bolton-Tremblay IndexThe Bolton-Tremblay Index (BOLTR) is a dynamic cumulative advance-decline indicator which incorporates the count of unchanged issues as a fundamental element. This index serves as a valuable tool for identifying shifts in market trends and gauging the overall strength or weakness of the market. To enhance its effectiveness and reveal underlying trends, BOLTR has been refined through a Heiken-Ashi transformation, resulting in a smoother and more insightful representation.
Calculation and Methodology:
r = (adv - dec) / unch
var float bt = na
bt := r > 0 ? nz(bt ) + math.sqrt(math.abs(r)) : nz(bt ) - math.sqrt(math.abs(r))
The BOLTR index is derived from a calculation involving three essential components: advancing issues (ADV), declining issues (DEC), and securities with unchanged closing prices (UNC). By formulating the ratio (ADV - DEC) / UNC, BOLTR captures the relationship between market movements and unchanged securities. This ratio then dictates whether the BOLTR index increases or decreases in the following period. If the ratio is positive, the index advances, and if negative, it retreats. This iterative process yields a cumulative index that reflects the evolving dynamics of market trends.
Heiken-Ashi Transformation:
The addition of a Heiken-Ashi transformation imparts a smoothing effect to the BOLTR index, revealing the underlying trend with greater clarity. This transformation diminishes noise and fluctuations, making it easier to identify meaningful shifts in market sentiment and overall market health.
Utility and Use Cases:
-The Bolton-Tremblay Index offers a range of applications that contribute to informed decision-making-
1. Trend Analysis: BOLTR provides insights into the changing trends of the market, helping traders and investors identify potential shifts in market sentiment.
2. Market Strength Assessment: By considering advancing, declining, and unchanged issues, BOLTR offers a comprehensive assessment of market strength and potential weaknesses.
3. Divergences: Traders can use BOLTR to detect divergences between price movements and the cumulative advance-decline dynamics, potentially signaling shifts in market direction.
The Bolton-Tremblay Index offers a versatile toolset for interpreting market trends, evaluating market health, and making better informed trading decisions.
See Also:
- Other Market Breadth Indicators-
MarketSmith Daily Market IndicatorsMarketSmith Daily Market Indicators is designed to mimic the Daily Market Indicators tab found in MarketSmith. This tab contains 4 different secondary indicators to help gauge the health of the overall market.
This indicator allows you to choose which of the 4 indicators to show, as well as which index to pull data from, Nasdaq or NYSE. There is also a snapshot table showing the following:
# of stock advancing and up volume
# of stocks declining and down volume
# of stock unchanged and unchanged volume
# of stocks making new highs and new lows
Now let's look at the 4 indicators and how they work.
Advance/Decline Line
Plots the number of advancing shares vs the number of declining shares. Heavily weighted index stocks can skew price action, this line helps reveal that and whether most stocks are aligned with the trend.
Short Term Overbought/Oversold Oscillator
A 10-day moving average of the number of stocks moving up in price less the number of stocks moving down in price.
10 Day Moving Average of Up & Down Volume
Two 10 day moving averages to represent the volume of all stocks. Blue line: total volume of all stocks moving up in price. Red line: the total volume of all stocks moving down in price.
10 Day Moving Average of New Highs & New Lows
Two 10-day moving average to represent stocks making new highs and new lows. Blue line: The number of stocks making new price highs. Red line: The number of stocks reaching new lows.
Note this indicator is designed to work on a daily time frame chart. Data typically updates 90 minutes after the close. Data may differ from Marketsmith due to different providers, however the general trends are the same.
Gaussian Average Rate Oscillator
Within the ALMA calculation, the Gaussian function is applied to each price data point within the specified window. The idea is to give more weight to data points that are closer to the center and reduce the weight for points that are farther away.
The strategy calculates and compares two different Rate of Change (ROC) indicators: one based on the Arnaud Legoux Moving Average (ALMA) and the other based on a smoothed Exponential Moving Average (EMA). The primary goal of this strategy is to identify potential buy and sell signals based on the relationship between these ROC indicators.
Here's how the strategy logic works
Calculating the ROC Indicators:
The script first calculates the ROC (Rate of Change) of the smoothed ALMA and the smoothed EMA. The smoothed ALMA is calculated using a specified window size and is then smoothed further with a specified smoothing period. The smoothed EMA is calculated using a specified EMA length and is also smoothed with the same smoothing period.
Comparing ROCs:
The script compares the calculated ROC values of the smoothed ALMA and smoothed EMA.
The color of the histogram bars representing the ROC of the smoothed ALMA depends on its relationship with the ROC of the smoothed EMA. Green indicates that the ROC of ALMA is higher, red indicates that it's lower, and black indicates equality.
Similarly, the color of the histogram bars representing the ROC of the smoothed EMA is determined based on its relationship with the ROC of the smoothed ALMA, they are simply inversed so that they match.
With the default color scheme, green bars indicate the Gaussian average is outperforming the EMA within the breadth and red bars mean it's underperforming. This is regardless of the rate of average price changes.
Generating Trade Signals:
Based on the comparison of the ROC values, the strategy identifies potential crossover points and trends. Buy signals could occur when the ROC of the smoothed ALMA crosses above the ROC of the smoothed EMA. Sell signals could occur when the ROC of the smoothed ALMA crosses below the ROC of the smoothed EMA.
Additional Information:
The script also plots a zero rate line at the zero level to provide a reference point for interpreting the ROC values.
In summary, the strategy attempts to capture potential buy and sell signals by analyzing the relationships between the ROC values of the smoothed ALMA and the smoothed EMA. These signals can provide insights into potential trends and momentum shifts in the price data.
Market Internal RSIMarket Internal RSI
"MIRSI" is an indicator that tracks the NYSE market internals for price, volume, trend and delta and presents RSI like measurement from a custom weighted formula.
Great care has been taken to present the measured result with the scale of importance for each market internal, given that some internals impart variable affect to market securities.
What makes this different?
This tool will allow the analyst to compare the entire NYSE market momentum to any symbol, check for divergences and squeezes or exhaustion periods where opportunities may be best for directional traders.
How to use
Using MIRSI is similar to standard RSI usage, this format was chosen given the high degree of familiarity within the markets. Measurements of 70 or greater can be used to identify periods of buying strength or buyer exhaustion, 30 or under can be used to identify periods of seller strength or seller exhaustion.
The location (highs/lows) of the symbol charted can assist in determining the impact of the market, if its determined a symbol is a highs and the NYSE is showing 70 or greater can equate to higher pullback chance.
Divergence squeezes between the security RSI and MIRSI can present optimal directional opportunities. The lower histogram presents a divergence measurement and a trend-line provides broader context, the squeezes occur when the divergence is almost non-existent.
Markets
As with the other market internal indicators published, this one can apply to any security that is impacted by the NYSE price, volume, trend and delta.
Usage Conditions
It's highly recommended to use this on 15 minute or lower, beyond that and the resolution of minuscule movements this indicator relies on within the market internals become muted. The same applies with micro timeframes within the seconds or 1m, sometimes too much data is detrimental.
Relative Strength Volume ComparisonThe Relative Strength Volume Comparison is a powerful tool that can help traders identify the current trend based on volume pressure and potential reversals.
This oscillator is made of two lines and the overbought and oversold levels. Each of these two lines is a relative-strength formula that contains both the famous RSI and CCI formulas, smoothed by a Hull moving average.
The two lines are different for input. The colored line is based just on price and changes color based on the relation with the other line. The second line uses as input an average of three different popular volume indicators: The OBV, the Accumulation/Distribution, and the PVT.
Thanks to this tool, which uses 6 different formulas combined, traders can:
- Identify the current trend direction, based on the color of the area fill and the first colored line
- Identify potential reversal areas thanks to the overbought and oversold levels, customizable in the input section alongside the length and smoothing parameters.
Price Depth Analysis to the MAHello Traders! Today, I bring you an indicator that can greatly assist you in your trading. This indicator aims to analyze the Expansion and Contraction process of the price in relation to a moving average. We refer to "Expansion" when the price moves away from the moving average; a significant expansion could signal that the asset is in a strong trend. On the other hand, when we refer to "Contraction", it's when the price approaches or returns to the moving average. A contraction could signal that the asset is losing momentum and might be preparing for a trend change or consolidation.
To use the indicator, the first thing you need to do is define the type of analysis you want to perform (from the indicator settings) whether you want to evaluate prices above the moving average or below. You should also select the type of moving average and its period.
The indicator will search for the maximum distance in all the chart bars, which will be represented with a yellow label.
From that value, the indicator will generate a certain number of proportional levels (configurable up to 20) and will count all the bars that reached each level. This will be represented in a table showing both the number of bars that reached each range and the percentage in relation to the total bars of all ranges.
Additionally, there's the possibility to view the ranges directly for the current price, providing a good reference.
>> Alerts:
The indicator comes with alerts that notify traders about specific price movements in relation to a moving average (MA). These alerts are triggered when the price enters different ranges, either above or below the MA.
>> Settings:
- Type of Analysis: Users can choose to analyze the price either above or below the MA.
- Length of the moving average: Length of the MA.
- Source of the moving average: Source to calculate the MA (e.g., close, open).
- Type of moving average: Type of MA (SMA, EMA, WMA, VWMA, HMA).
- Show Moving Average: Option to display or hide the MA on the chart.
- Number of levels: Number of levels or ranges to categorize the distance between the price and the MA.
- Number of decimals: Number of decimals to display in labels and tables.
- Show Ranges: Option to display or hide the ranges on the chart.
- Extend Range: Extension of the ranges into future bars.
- Range Fill Transparency: Transparency of the range fill.
>> Potential Utility of the Indicator:
- Entry and Exit Optimization:
By understanding the percentages of each range, traders can identify optimal levels to enter or exit a trade, maximizing profits and minimizing losses.
- Risk Management:
Range percentages can help determine market volatility. A range with a high percentage indicates greater volatility, which can be useful for setting wider stop losses or adjusting position size.
- Overbought and Oversold Zone Identification:
If a price is at the upper or lower extreme of its percentage range, it may indicate overbought or oversold conditions, respectively. These zones can be opportunities for counter-trend trades.
- Momentum Assessment:
A rapid change in range percentages can indicate strong momentum in a particular direction. Traders can use this information to ride the momentum wave or prepare for a potential reversal.
- False Signal Filtering:
By combining range percentage knowledge with other indicators, traders can filter out signals that might be less reliable, thus improving trade accuracy.
- Strategic Planning:
Knowing range percentages allows traders to adapt their strategies according to market conditions. For instance, in a market with narrow ranges and low percentages, they might opt for range strategies. In markets with wide ranges and high percentages, they might look for trend strategies.
- Trend Strength Evaluation:
If range percentages show that the price consistently stays at one end of the range, this may signal a strong and sustained trend.
- Improved Trading Discipline:
By basing trading decisions on quantitative data like range percentages, traders can trade more objectively and disciplined, avoiding impulsive or emotion-based decisions.
>> Future Indicator Update:
- In future versions, we plan to incorporate a detailed analysis based on the historical behavior of candles after the price enters a specific range. For instance, if after an upward movement the price enters a certain range and historically, the next candle tends to be bearish in a high percentage of occasions, this information will be highlighted and presented clearly to the user. The idea behind this addition is to provide traders with a statistical edge, allowing them to anticipate potential market movements with greater accuracy. Moreover, this information could be used to seek trading opportunities in smaller timeframes, aligning the trade direction based on the probability of this mentioned candle.
>> Conclusions:
- In summary, a detailed understanding of each range's percentages in an indicator provides traders with a valuable tool to analyze the market, make informed decisions, and enhance their trading. By grasping the significance of these percentages, traders can adapt their strategies and techniques to fully leverage the opportunities the market presents.
GOLDEN BOX**Golden Box Trading Strategy Indicator**
The "Golden Box" trading strategy indicator is a visual tool designed to facilitate the execution of the Golden Box trading strategy on the TradingView platform. This strategy involves identifying potential buy and sell signals based on specific price movements within defined trading sessions.
**Features:**
- Custom session definition with adjustable time and time zone settings.
- Real-time tracking of session high, low, open, and close prices.
- Visual representation of trading sessions with highlighted high and low price ranges.
- Condition-based buy and sell signals based on closing prices and session levels.
- Informative tables outlining step-by-step strategy execution for both buy and sell scenarios.
**Strategy Highlights:**
- **Buy Strategy:** Wait for Monday's session completion. If the last candle's closing price is above the session's 50% level, set a pending buy limit order. Stop loss at the session high (100% level), take profits at 75% and 100%.
- **Sell Strategy:** Wait for Monday's session completion. If the last candle's closing price is below the session's 50% level, place a pending sell limit order. Stop loss at the session high (100% level), take profits at 25% and 0%.
**Disclaimer:** This indicator is for educational purposes and does not offer financial advice. Thoroughly understand the strategy and conduct testing before implementing it in live trading.
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Feel free to modify this description to align with your preferences and to add any additional information that you believe will help users understand the indicator and strategy better.
Upside Downside Unchanged VolumeUpside Downside Unchanged Volume
Plot NYSE or NASDAQ Upside Volume, Downside Volume, or Unchanged Volume (e.g. UPVOL.NY, UVOL, or ADVN.NY) as a percent (values 0 to 1, where 1 = 100%) of Total Volume.
Plot Day, Week, and Month volume and/or chart timeframe period volume.
Plot volume as a histogram, line, or area.
Plot various moving averages of volume points.
Horizontal lines at 0, 10, 30, 50, 70, 90, and 100% levels.
Inspired by Paul Desmond of Lowry’s Reports.
US Sector strengthThis indicator is designed to normalize the S&P 500 by sector. You can choose to normalize using the Z-score, DEMA, or MinMax. When using the Z-score or DEMA, a level line is displayed.
EMA Power BandsHello!
Today, I am delighted to introduce you to the "EMA Power Bands" indicator, designed to assist in identifying buying and selling points for assets moving in the markets.
Key Features of the Indicator:
EMA Bands: "EMA Power Bands" utilizes Exponential Moving Average (EMA) to create trend lines. These bands automatically expand or contract based on the price trend, adapting to market conditions.
ATR-Based Volatility: The indicator measures price volatility using the Average True Range (ATR) indicator, adjusting the width of the EMA bands accordingly. As a result, wider bands form during periods of increased volatility, while they narrow during lower volatility.
RSI-Based Buy-Sell Signals: "EMA Power Bands" uses the Relative Strength Index (RSI) to identify overbought and oversold zones. Entering the overbought zone generates a sell signal, while entering the oversold zone produces a buy signal.
Trend Direction Identification: The indicator assists in determining the price trend direction by analyzing the slope of the EMA bands. This allows you to identify periods of uptrends and downtrends.
Visualization of Buy-Sell Signals: "EMA Power Bands" visually marks the buy and sell signals:
- When RSI enters the overbought zone, it displays a sell signal (🪫).
- When RSI enters the oversold zone, it indicates a buy signal (🔋).
- When a candle closes above the emaup line, it displays a bearish signal (🔨).
- When a candle closes below the emadw line, it indicates a bullish signal (🚀).
By using the "EMA Power Bands" (EMA Güç Bantları) indicator, especially in trend-following strategies and periods of volatility, you can make more informed and disciplined trading decisions. However, I recommend using it in conjunction with other technical analysis tools and fundamental data.
*You can also use it with CCI as an example.
With this indicator, you can identify potential trend reversals in advance and strengthen your risk management strategies.
So, go ahead and try the "EMA Power Bands" (EMA Güç Bantları) indicator to enhance your technical analysis skills and make more informed trading decisions!
JP SectorSTThis is an indicator that refers to and normalizes ETFs for each sector in Japan. For normalization, you can choose from three types: DEMA, Z-Score, and MinMax.
Price Deviation Indicator (PDI)Management
The Price Deviation Indicator (PDI) was developed by "DimArt". This indicator allows you to determine the percentage deviation of the price from its average value over a certain period of time. The larger the deviation, the higher the histogram on the indicator chart. The PDI indicator can be useful for identifying a trend reversal in combination with other technical indicators, such as RSI, MACD, and others. For example, if the RSI and MACD indicators show the beginning of a possible trend reversal, using the PDI indicator can confirm this signal by showing the deviation of the current price from the average price. This can help the trader make more accurate trading decisions based on a strong signal.
Description
To calculate the values of the "Price Deviation Indicator" (PDI), we use the following steps:
• Determine the "Period" variable, which specifies the number of bars used to calculate the average price. (Default value is 20)
• Calculate the average price over the specified period using the "sma()" (simple moving average) function.
• Calculate the percentage difference between the current price and the average price using the formula: ((close - avg_price) / avg_price) * 100 .
• Set levels to change the color of the histogram based on price deviation from the average value. "Histogram Color" is a parameter to customize the color of the histogram based on deviation levels. By default, if the deviation is more than 5%, the histogram will be red; if it is less than -5%, it will be green, and for all other deviations, it will be blue. However, this parameter can be changed to other values.
• Draw a histogram of price change relative to the average value. The "Style" parameter allows you to choose the style of the indicator (histogram). By default, the "Histogram" style is set, but you can also select "Line on Close" or "Line on Open".
Application of the Indicator
The PDI indicator is based on the assumption that the price of any asset always tends to its mean value. Using PDI on higher timeframes allows you to determine the overall market trend, whereas on smaller timeframes, situations can be found when the price is in negative territory, and the histogram starts to smoothly transition from negative to positive value. This can be a signal to buy, as the price is likely in an oversold condition and ready to change its trend. On the other hand, if the strength of the price slows down or begins to approach 0, this may indicate that the asset is overbought and starting to turn towards oversold, which is a signal to sell. A beautiful feature of the PDI indicator is its simplicity and conciseness, which allows you to quickly and easily identify a trend change and make trading decisions based on a strong signal.
Conclusion
The "Price Deviation Indicator" (PDI) can be useful in analyzing price movements in the market. It allows you to calculate the relative difference between the current price and the average price, allowing you to identify market saturation and change in trend. The indicator can be used in technical analysis to make decisions about buying or selling assets on the exchange. It can also be useful for traders of different levels of experience, as its settings can be adapted depending on the user's needs and requirements. Overall, this indicator is one of the tools that can help in analyzing price and volumes to determine possible investment prospects in assets.
ATRLevels 1.0.0The indicator shows the average daily ATR for the past N days from the beginning of the current session. The range is displayed using levels. If the price has approached the level of 100% or -100% it means that the price has passed its average distance and it is possible to consider points for price reversal. This can be confirmed by daily or weekly horizontal resistance/support levels.
If the price has approached the levels of 25%, 50% or 75% and there are hourly or daily extrema at these levels, then we can consider situations on a false stabbing of these levels and a price pullback in the opposite direction.
*The best confirmation of a bounce/reversal is the density in the scalper's stack.
Settings:
ATR Daily length - number of periods to calculate the daily ATR
100% lines - visual design of 100% and -100% levels
50% lines - visual design of the 50% level
25% and 75% lines - visual design of 25% and 75% levels
Breadth - % Above * MA█ OVERVIEW
'Breadth - % Above * MA' is a script developed to measure market breadth, providing traders with a deeper understanding of the overall health of a chosen stock market or specific sector. By calculating the percentage of stocks performing above their Simple Moving Average (SMA), it offers an efficient and precise method to gauge market trends.
█ MARKET BREADTH
Market breadth is a powerful tool in technical analysis. It examines the number of securities on an upward trajectory versus those on a downward one. This indicator serves as a measure of market sentiment and assists in identifying the strength and sustainability of market trends.
█ PERCENTAGE ABOVE MOVING AVERAGE
The script's primary function is to show the percentage of stocks trading above a selected SMA. This provides valuable insight into the market's condition. For instance, a high percentage of stocks above their 200-day moving average may suggest a strong bull market. Conversely, a low percentage could indicate a bearish market. However, these are mere observations and should be supplemented with additional analysis for informed trading decisions.
█ KEY FEATURES
The script offers extensive customization. Users can choose from various stock market groups and SMA periods. The options for data smoothing and chart visualization enhance the versatility of the script.
The script also offers a choice of different candlestick styles for visualizing price movements. An added feature colors the inside bars in Heikin-Ashi (HA) format black, providing additional clarity.
█ ACKNOWLEDGEMENTS
The script incorporates code from the 'Line Break' script by kitoboynaya. We gratefully acknowledge their contribution.
█ CODE
The script is published as a protected code due to the usage of a certain style/formula. While the idea of knowledge sharing is encouraged, certain aspects of the script remain confidential.
GKD-C Sherif's HiLo [Loxx]The Giga Kaleidoscope GKD-C Sherif's HiLo is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ Giga Kaleidoscope GKD-C Sherif's HiLo
The Sherif's HiLo trading strategy aims to identify high and low price levels in the market.
The code calculates the minimum and maximum prices observed within specific ranges.
Based on the closing price, the strategy determines the position of two lines. One line represents a potential support level, while the other represents a potential resistance level.
If the closing price is higher than the previous value, the strategy identifies the minimum price within the range as the support level.
If the closing price is lower than the previous value, the strategy identifies the maximum price within the range as the resistance level.
Traders can use these levels as reference points to make trading decisions, such as identifying potential entry or exit points in the market.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Sherif's HiLo as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
█ Connecting to Backtests
All GKD indicators are chained indicators meaning you export the value of the indicators to specialized backtest to creat your GKD trading system. Each indicator contains a proprietary signal generation algo that will only work with GKD backtests. You can find these backtests using the links below.
GKD-BT Giga Confirmation Stack Backtest
GKD-BT Giga Stacks Backtest
GKD-BT Full Giga Kaleidoscope Backtest
GKD-BT Solo Confirmation Super Complex Backtest
GKD-BT Solo Confirmation Complex Backtest
GKD-BT Solo Confirmation Simple Backtest
GKD-M Baseline Optimizer
GKD-M Accuracy Alchemist
GKD-BT Multi-Ticker SCC Backtest
GKD-BT Multi-Ticker SCS Backtest
GKD-BT Multi-Ticker SCS Backtest
GKD-BT Multi-Ticker Full GKD Backtest
CVD+ - Multi Symbol Cumulative Volume DeltaEdit of TradingView's LTF CVD
TradingView's CVD is already the most accurate CVD on the platform because of the LTF data. The purpose of the edit is to provide the ability to compare volume flow between multiple exchanges, futures & spot, multiple symbols or any other potential use case. All in single layout or even a single pane.
Added features:
- Option to manually select a symbol from which to calculate the LTF CVD
- Option to normalize the selected symbol's CVD to the chart's symbol's CVD (Useful when you want to compare futures and spot on the same pane)
- Label that displays the selected symbol's name and exchange
- Changed presets to plot the CVD line as the predetermined option
All of TV's original features remain the same.
Sector MomentumThis indicator shows the momentum of a market sector. Under the hood, it's the MACD of the number of stocks above their 20 SMA in a specific sectors. The best insight it gives is to tell if the market is doing a sector rotation or having a full blown correction.
Users have the options to choose a specific sector out of the 11 sectors:
XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY or show all them them by adding multiple indicators.
Use this indicator similar to MACD to look for momentum acceleration, deceleration and turn in a sector. More importantly, users can open up the indicator for all sectors and then compare between each.
Examples:
1. When we see momentum slows down in XLP and turn of XLK, it's a sign of sector rotation from consumer staple to tech. Money is going from defensive to riskier assets. Market is leaning towards risk-on mode. Stocks in tech have higher probability to outperform those in consumer staple.
2. When we see momentum subside across all sectors all at once or one by one, particularly both XLP, XLK/XLY, we'd expect market breadth is taking a hit across all sectors. This is not a sector rotation. A short to mid term market correction or drawdown is very likely.
Enhanced Parabolic SAR + EMA 200 + MACD SignalsParabolic SAR + EMA 200 + MACD Signals Indicator is a popular technical analysis tool used by traders to identify potential entry and exit points in the market. It combines three widely used indicators: Parabolic SAR, EMA 200, and MACD.
The Parabolic SAR indicator helps determine potential price reversals. It places dots above or below the price chart to indicate the direction of the trend. When the dots are below the price, it suggests an upward trend, and when they are above the price, it indicates a downward trend.
The EMA 200 (Exponential Moving Average 200) is a moving average that gives more weight to recent price data. It is often used as a significant support or resistance level. Traders consider the price to be in an uptrend if it is above the EMA 200 and in a downtrend if it is below the EMA 200.
The MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that calculates the difference between two exponential moving averages. It consists of a MACD line and a signal line. When the MACD line crosses above the signal line, it generates a bullish signal, indicating a potential buying opportunity. Conversely, when the MACD line crosses below the signal line, it generates a bearish signal, suggesting a potential selling opportunity.
To use the MACD-Parabolic SAR-EMA200 Indicator for trading, you can follow these guidelines:
Buy conditions:
1. The price should be above the EMA 200.
2. The Parabolic SAR should indicate an upward trend (dots below the price).
3. The MACD delta (the difference between the MACD line and the signal line) should be positive.
Sell conditions:
1. The price should be below the EMA 200.
2. The Parabolic SAR should indicate a downward trend (dots above the price).
3. The MACD delta should be negative.
By combining these three indicators, traders can gain additional confirmation of the overall trend direction and make more informed trading decisions. However, it's important to note that no indicator guarantees successful trades, and it's always advisable to use additional analysis and risk management techniques in conjunction with technical indicators.
