Z-Score(Slope(OBV(LBC)))Summary : Market price is simply a dance of liquidity to the specific market.
tl;dr: "Cash come-in, market moon; Cash go-out, market doom"
In Simple Language : Large changes in the money flow to an asset often mark local price extremia.
Academic paper:
Title: Z-Score(Slope(OBV)): An Efficient Indicator for Identifying Local Extremes in Asset Prices
Abstract: This paper presents a novel trading indicator, Z-Score(Slope(OBV)), that aims to predict local extremes in asset prices by analyzing the patterns of money flow. The indicator is constructed using the Z-score of the slope of the On Balance Volume (OBV).
Hypothesis: The price levels at which the money flows into and out of an asset often mark local extremes. This notion underpins our exploration of the Z-Score(Slope(OBV)) indicator's potential in identifying these critical points.
1. On Balance Volume (OBV): The OBV is a momentum indicator that leverages the volume flow to forecast potential changes in asset prices. It operates on the premise that changes in volume often presage shifts in price. The OBV algorithm adds a period's volume to the cumulative total when the closing price is up and subtracts it when the closing price is down. Therefore, an ascending OBV suggests positive volume pressure, potentially heralding higher prices, while a declining OBV signifies negative volume pressure, possibly indicating lower prices.
2. Slope: In this context, the slope represents the rate of change of the OBV. It is a measure of the rise-over-run for a linear regression line through the OBV data points. By evaluating the slope of the OBV, we can extract valuable insights into the momentum of the volume. A positive slope indicates increasing volume momentum, suggesting growing interest in the asset, while a negative slope implies declining volume momentum, potentially reflecting dwindling interest.
3. Z-Score: The Z-score is a statistical measure that delineates a data point's relationship to the mean of a group of values, expressed in terms of standard deviations from the mean. For instance, a Z-score of 0 reveals that the data point's score aligns with the mean score. Positive Z-scores indicate values higher than the mean, and negative Z-scores represent values lower than the mean. Applying the Z-score to the slope of the OBV allows us to comprehend the degree of deviation of the current OBV slope from its historical mean.
A Z-score of 1 suggests that the OBV's slope is one standard deviation from the mean, which implies that the slope is within the range of values where approximately 68% (not 67%) of all values lie.
A Z-score of 2 implies that the slope is two standard deviations from the mean, thus within the range where roughly 95% of all values lie.
A Z-score of 3 indicates that the slope is three standard deviations from the mean, putting it within the range where about 99.7% of all values lie.
Z-scores of 4 and 5 and beyond are increasingly rare and represent extreme values.
4. The Z-Score(Slope(OBV)) Indicator and Line Break Chart Synergy: The Z-Score(Slope(OBV)) indicator's efficiency is further amplified when visualized using a Line Break chart. This chart type disregards time, concentrating solely on price changes, thus providing a clear visualization of market trends. When combined with the Line Break chart, the Z-Score(Slope(OBV(LBC))) indicator can help traders identify trend shifts more accurately and promptly, reinforcing the hypothesis that price levels where money flows into and out of an asset often mark local extremes.
In summary, the Z-Score(Slope(OBV)) indicator, combining volume, momentum, and statistical analysis, provides a robust tool for traders to predict local extremes in asset prices.
Regarding Implementation:
- This is implemented using Pinescript V5
- Uses inbuilt ta module
- Very effective and simple and efficient computation in 30 lines of code
Breadth Indicators
Tick Profile HeatmapThis is a market internal TICK heatmap with the intent of displaying areas of price associated to stronger reactions with NYSE TICK (by default).
This code is based off of a variation of a Volume Profile coded originally by colejustice who originally used code from LuxAlgo . The full-width volume bars that colejustice setup were replaced with full-width bars representative of TICK breaking +/- $500, the current cumulative value representing the "heat" is comprised of hlc3 by default but that can be changed. In a future update I may add additional logic here to capture highs and lows in the heatmap specifically, and perhaps additional colors.
As with other traditional profiling studies, this indicators purpose is to visualize correspondence to specific price levels, allowing rapid assessment where the most TICK activity is occurring, and where it hasn't been. This information may provide areas of support and resistance and regions where price may move quickly repeatedly.
All of the same input guidance that colejustice provided is the same for those pre-existing inputs:
Inputs are set up such that you can customize the lookback period, number of rows, and width of rows for most major timeframes individually. Timeframes between those available will use the next lower timeframe settings (e.g., 2m chart will use the 1m settings.)
Zero usage of volume is present in this indicator, only TICK data so please don't confuse it with volume studies.
Adjusted OBVThis script shows On-Balance Volume adjusted for volume weighted candle body size.
This means that the wick lengths, body length, and sell/buy pressure are calculated into percentages of volume that contributed to each.
The body volume is the accumulatively tracked across candles to give a more accurate On-Balance Volume that has been traded to achieve the current price over time.
The script output is in Orange and for comparison the original technical OBV is in Blue.
As this is my first script, I hope to update it to include a 'buy' and 'sell' pressure gauge to perhaps turn this from a mere indicator into potentially a bit more predictive.
In the meantime, it should be useful for tracking OBV for other uses in a more accurate and less volatile way.
[TT] Sectors Dist % From MA- The script shows the distance in percentages from the 200 MA (or any other MA period) , for the 11 SP500 sectors.
- It works based on the current time frames.
Could be useful when working with mean reversion strategies to detect extremes zones and overbought/oversold conditions in the given sectors compared others.
MESThe Double Bollinger Bands strategy is a trend-following strategy that aims to identify high-probability trading opportunities in trending markets. The strategy involves using two sets of Bollinger Bands with different standard deviation values to identify potential entry and exit points.
Bollinger Bands are a technical analysis tool that consists of three lines plotted on a price chart: a simple moving average (SMA) in the middle, and an upper and lower band that are each a certain number of standard deviations away from the SMA. The standard deviation value determines the width of the bands, with a larger deviation resulting in wider bands.
In this indicator, the first set of Bollinger Bands is calculated using a length of 20 bars and a standard deviation of 2, while the second set uses a length of 20 bars and a standard deviation of 3. The bands are plotted on the price chart along with the SMA for each set.
The buy signal is generated when the price falls below the lower band of the second set of Bollinger Bands (the 3-standard deviation band) and then rises above the lower band of the first set (the 2-standard deviation band). This is interpreted as a potential reversal point in a downtrend and a signal to enter a long position.
Conversely, the sell signal is generated when the price rises above the upper band of the second set of Bollinger Bands and then falls below the upper band of the first set. This is interpreted as a potential reversal point in an uptrend and a signal to enter a short position.
To make it easier to identify buy and sell signals on the price chart, the indicator plots triangles above the bars for sell signals and below the bars for buy signals.
Overall, the Double Bollinger Bands strategy can be a useful tool for traders who want to follow trends and identify potential entry and exit points. However, as with any trading strategy, it is important to backtest and thoroughly evaluate its performance before using it in live trading.
Mean ReversionThe "Mean Reversion" indicator in this script is a popular trading strategy that is based on the concept that over time, prices tend to move back towards their mean or average. This trading strategy seeks to identify instances where the price has deviated significantly from its mean and therefore presents an opportunity to profit from its eventual reversion to the mean.
The script calculates the distance between the current price and the EMA using the ATR, which is a measure of volatility. By multiplying the ATR by a specified factor, the script establishes a distance between the current price and the EMA. If the price falls below this distance, it triggers a potential buy signal, indicating that the price may be oversold and due for a rebound.
The script also uses Bollinger Bands to help identify potential buying and selling opportunities. The Bollinger Bands are a technical indicator that measures the volatility of an asset by plotting two standard deviations away from a moving average. When the price moves outside of the Bollinger Bands, it can indicate that the asset is overbought or oversold, potentially triggering a buy or sell signal.
The script's "buySignal" variable is triggered when the price is below the EMA by the specified ATR distance and also falls below the lower Bollinger Band. Conversely, the "sellSignal" variable is triggered when the price is above the EMA by the specified ATR distance and also rises above the upper Bollinger Band.
The script plots the EMA, Bollinger Bands, and the buy and sell signals on the chart for easy visualization. Additionally, the script includes alerts that can be set up to notify the user when a buy or sell signal is triggered, so that they can act on the information in a timely manner.
In summary, this script is a Mean Reversion indicator that aims to identify potential opportunities to buy or sell assets based on deviations from their mean price using a combination of the ATR, EMA, and Bollinger Bands.
duval Moyenne Mobile Exponentielle Doubleindicateur permet de prendre des decision a partie des donnes de moyennes mobiles znb un seuk indicateur ne permet pas de prendre une decision d'achat ou de vente
Educational Strategy : TRIPLE DRAG-ON SYSTEM V.1The Triple Dragon System is a technical trading strategy that uses a combination of three different indicators to identify potential buy and sell signals in the market. The three indicators used in this strategy are the Extended Price Volume Trend (EPVT), the Donchian Channels, and the Parabolic SAR. Each of these indicators provides different types of information about the market, and by combining them, we can create a more comprehensive trading system.
The EPVT is used to identify potential trend changes and measure the strength of a trend. The Donchian Channels are used to identify the direction of the trend, while the Parabolic SAR is used to provide additional confirmation of trend changes and help determine potential entry and exit points.
In this strategy, we first use the EPVT and Donchian Channels to identify the direction of the trend. When the EPVT is above its baseline and the price is above the upper Donchian Channel, it suggests an uptrend. Conversely, when the EPVT is below its baseline and the price is below the lower Donchian Channel, it suggests a downtrend.
Once we have identified the trend direction, we use the Parabolic SAR to help determine potential entry and exit points. When the Parabolic SAR is below the price and flips to above the price, it suggests a potential buy signal. Conversely, when the Parabolic SAR is above the price and flips to below the price, it suggests a potential sell signal.
To further refine our trading signals, we use multiple timeframes to confirm the trend direction and ensure that we are not entering the market during a period of high volatility. We also use multiple take-profit levels to lock in profits and manage risk.
Overall, the Triple Dragon System is a comprehensive technical trading strategy that combines multiple indicators to provide clear entry and exit signals. By using a combination of trend-following and momentum indicators, we can identify potential trading opportunities while minimizing risk. Please note that this strategy is for educational purposes only and should not be taken as financial advice.
BTC Log High/LowThis indicator aims to display the price index of Bitcoin based on its logarithmic high and low values. Indicator calculates the logarithmic high and low values of Bitcoin using specific mathematical formulas and then applies a price index formula to obtain a value for each bar on the chart. The resulting value is plotted on the chart as a line, representing the Bitcoin price index.
The indicator also includes several horizontal lines at specific levels, which can be adjusted by the user. The lines are used to indicate important price levels and act as support and resistance levels. Additionally, the indicator includes two moving averages, a 100-period exponential moving average (EMA) and a 200-period EMA, which can be used to identify trends.
LNL Smart TICKLNL Smart TICK
This study is mostly beneficial for intraday traders. It is basically a user-friendly "colorful" representation of the $TICK chart with highlighted $TICK extremes. This indicator also includes: a simple trend gauge that can visualize the bias for the day, cumulative tick cloud which is showing the cumulative strength of either longs & shorts on the day.
$TICK Trend Gauge
Although it is just a exponential moving average. This average (default set on 20) works quite well as an overall gauge for the day. Whenever the gauge is green (above zero), any negative $TICK values below -500 can offer great pullback opportunities. Same applies for the red gauge. 20 EMA is below zero ? Great time to fade any +500 or +1000 tick readings. Obviously the gauge can be ajdusted to any number based on personal style.
$TICK Extremes (little triangles)
These little triangles are triggered anytime $TICK jumps above or below the pre-set values of +1000 or -1000. By just simply observing the $TICK triangles during the day can tell you how much volaility or pressure there is. Sometimes there will be 20 green triangles and only 2 red ones. That obviously mean there is a strong bearish pressure. But there will be days when you are not going to see any triangles at all which can mean there is either a low volatility or the price is stuck in the indecisive market.
Cumulative $TICK Cloud
Cumulative $TICK by itself is a great study for day traders. It is basically running "counting" $TICK that is adding the previous $TICK values from previous bars. Cumulative $TICK can create a direct picture of the current market sentiment. It is not just a simple green / red line but a cloud that can really show you the depth on the $TICK. Some days, the cloud will be quite wide which is a good sign for the strength to one side, but sometimes the cloud will be so narrow it will practically disappear. This would be telling you the exact opposite - not much conviction to any side. Of course the depth as well as the color of the cloud can change during the day.
$TICK & Cumulative $TICK Tables
By just looking at these tables. You can immidiately tell the state of the current $TICK. They both can be red or green. It all depends whether the values are positive or negative. The tables are just a little visual addition to the whole $TICK study.
Hope it helps.
Percent of U.S. Stocks Above VWAPThis indicator plots a line reflecting the percentage of all U.S. stocks above or below their VWAP for the given candle. Horizontal lines have been placed at 40% (oversold), 50% (mid-line), and 60% (overbought). I recommend using this indicator as a market breadth indicator when trading individual stocks. In my experience, this indicator is best utilized while trading the major indices (SPX, SPY, QQQ, IWM) or their futures (ES, NQ, RTY) in the following manner:
- When the line crosses 50%, a green or red triangle is plotted indicating the majority of market momentum has turned bullish or bearish based on price positioning vs. VWAP. Look for longs when the line is rising (green) or above 50%, or shorts when the line is falling (red) or below 50%.
- When the line is below 40%, indicator shows red shading; I would not be long anything during this period. When the line exits this level, I begin looking for long entries. This line is adjustable in the indicator settings if you prefer to use a tighter or looser oversold level.
- When the line is above 60%, indicator shows green shading; I would not be short anything during this period. When the line exits this level, I begin looking for short entries. This line is adjustable in the indicator settings if you prefer to use a tighter or looser overbought level.
This indicator uses the TradingView ticker “PCTABOVEVWAP.US”, thus it only updates during NY market hours. If trading futures, I recommend applying VWAP to your chart and using that as the level to trade against in a similar manner, along with your personal price action analysis and other indicators you find useful.
Volume DockThis oscillator has two different modes:
The first one called RSIs is a comparison between the Relative strength index of the Accumulation/Distribution (and the On Balance Volume) and the normal price, to analyze the differences in momentum between the price with volume and without.
The second one, called Dock, is similar except for the fact that the lines are smoothed using the hull moving average formula, this mode is great to signal entries and for reversal analyzing.
Rolling Candle Closes Summationscript to sum rolling 20 (default) period's prices together
use on volume indicators to get the likes of McClellan Summation
User selection: rolling periods to add
God's Little FingerThe "God's Little Finger" indicator uses several technical analysis tools to provide information about the direction of the market and generate buy/sell signals. These tools include a 200-period exponential moving average (EMA), Moving Average Convergence Divergence (MACD), Bollinger Bands, and the Relative Strength Index (RSI).
EMA is used to determine if prices are trending. MACD measures the speed and momentum of the trend. Bollinger Bands are used to determine if prices are staying within a range and to measure the strength of the trend. RSI shows overbought/oversold levels and can be used to determine if the trend will continue.
The indicator generates buy/sell signals based on market conditions. A buy signal is generated when the MACD line is below zero, the price is below the lower boundary of the Bollinger Bands, the price is above the 200-period EMA, and the RSI is in oversold levels (usually below 40). A sell signal is generated when the MACD line is above zero, the price is above the upper boundary of the Bollinger Bands, the price is below the 200-period EMA, and the RSI is in overbought levels (usually above 60).
However, it should be noted that indicators can be used to predict market conditions, but they do not guarantee results and any changes or unexpected events in the market can affect predictions. Therefore, they should always be used in conjunction with other analysis methods and risk management strategies.
OBV-MACDThe OBV-MACD indicator is a momentum-based technical analysis tool that helps traders identify trend reversals and trend strength. This Pine script is an implementation of the OBV-MACD indicator that uses the On-Balance Volume (OBV) and Moving Average Convergence Divergence (MACD) indicators to provide a momentum data of OBV.
The OBV-MACD indicator uses the OBV to calculate the cumulative volume, which is then smoothed using two moving averages - fast and slow. The difference between these moving averages is plotted as a histogram, with a signal line plotted over it. A buy signal is generated when the histogram crosses above the signal line, indicating a bullish trend, while a sell signal is generated when the histogram crosses below the signal line, indicating a bearish trend.
This Pine script also includes an OBV-MACD-Donchian version that incorporates Donchian channels for the OBV-MACD. The Donchian channel is a technical analysis indicator that helps traders identify the highs and lows of an asset's price over a certain period. The OBV-MACD-Donchian version uses the OBV-MACD indicator along with the Donchian channels to provide signals that the momentum of OBV is making new high/low during that period of time.
Traders can customize the input parameters of the OBV-MACD indicator, such as the timeframe, method of calculation for the moving averages, and the lengths of the moving averages and breakout lengths. The colors of the plot can also be customized to suit the trader's preferences.
[Hoss] OBV RSIThe OBV ( On Balance Volume ) RSI ( Relative Strength Index ) indicator is an innovative tool that combines the power of OBV and RSI to provide traders with a comprehensive view of the market's momentum and volume dynamics. This combination enables users to make better-informed trading decisions by analyzing the relationship between price, volume , and relative strength .
The script starts by calculating the On Balance Volume , which is a cumulative volume-based indicator that measures buying and selling pressure. The OBV increases when the closing price is higher than the previous closing price and decreases when the closing price is lower than the previous closing price. This helps traders identify potential price trend reversals based on volume accumulation or distribution.
Next, the script computes the Relative Strength Index ( RSI ) based on the OBV values, offering a unique perspective on the market's momentum through the lens of volume . The RSI is a popular momentum indicator that ranges from 0 to 100 and helps traders identify overbought and oversold conditions. In this script, the user can define the RSI length and the higher and lower levels (default values are 70 and 30, respectively).
A distinctive feature of this OBV RSI indicator is the addition of a monitor that counts the number of times the RSI crosses above the higher level and below the lower level within a user-defined lookback period. This monitor is displayed as a table in the bottom right corner of the chart and can be enabled or disabled through an input option.
The cross count monitor provides valuable insights into the historical frequency of RSI crossings, helping traders to identify potential trading opportunities based on historical price behavior around these levels.
X48 - Strategy | BreakOut & Consecutive (11in1) + Alert | V.1.2================== Read This First Before Use This Strategy ==============
*********** Please be aware that this strategy is not a guarantee of success and may lead to losses.
*********** Trading involves risk and you should always do your own research before making any decisions.
================= Thanks Source Script and Explain This Strategy ===================
► Description
Write a detailed and meaningful description that allows users to understand how your script is original, what it does, how it does it and how to use it
This Strategy Are Combine Strategy and Indicators Alert Function For Systematic Trading User.
Strategy List, Thanks For Original Source Script , From Tradingview Build-in Script From fmzquant Github
// Channel BreakOut Strategy : Calculate BreakOut Zone For Buy and Sell.
// Consecutive Bars UP/Down Strategy : The consecutive bars up/down strategy is a trading strategy used to identify potential buy and sell signals in the stock market. This strategy involves looking for a series of bars (or candles) that are either all increasing or all decreasing in price. If the bars are all increasing, it can be a signal to buy, and if the bars are all decreasing, it can be a signal to sell. This strategy can be used on any timeframe, from a daily chart to an intraday chart.
// 15m Range Length SD : Range Of High and Low Candle Price and Lookback For Calculate Buy and Sell.
Indicators Are Simple Source Script (Almost I'm Chating With CHAT-GPT and Convert pinescript V4 to V5 again for complete almost script and combine after)
// SwingHigh and SwingLow Plot For SL (StopLoss by Last Swing).
// Engulfing and 3 Candle Engulfing Plot.
// Stochastic RSI for Plot and Fill Background Paint and Plot TEXT For BULL and BEAR TREND.
// MA TYPE MODE are plot 2 line of MA Type (EMA, SMA, HMA, WMA, VWMA) for Crossover and Crossunder.
// Donchian Fans MODE are Plot Dot Line With Triangle Degree Bull Trend is Green Plot and Bear Trend is Red Plot.
// Ichimoku Cloud Are Plot Cloud A-B For Bull and Bear Trend.
// RSI OB and OS for TEXT PLOT 'OB' , 'OS' you will know after OB and OS, you can combo with other indicators that's make you know what's the similar trend look like?
// MACD for Plot Diamond when MACD > 0 and MACD < 0, you can combo with other indicators that's make you know what's the similar trend look like?
Alert Can Alert Sent When Buy and Sell or TP and SL, you can adjust text to alert sent by your self or use default setting.
========== Let'e Me Explain How To Use This Strategy =============
========== Properties Setting ==========
// Capital : Default : 1,000 USDT For Alot Of People Are Beginner Investor = It's Capital Your Cash For Investment
// Ordersize : Default Are Setting 5% / Order We Call Compounded
========== INPUT Setting ==========
// First Part Use Must Choose Checkbox For Use of Strategy and Choose TP/SL by Swing or % (can choose both)
// In Detail Of Setting Are Not Too Much, Please Read The Header Of Setting Before Change The Value
// For The Indicator In List You Want To Add Just Check ✅ From MODE Setting, It's Show On Your Chart
// You Can Custom TP/SL % You Want
========== ##### No trading strategy is guaranteed to be 100% successful. ###### =========
For Example In My Systematic Trading
Select 1/3 Strategy Setting TP/SL % Match With Timeframe TP Long Are Not Set It's Can 161.8 - 423.6% but Short Position Are Not Than 100% Just Fine From Your Aset
Choose Indicators For Make Sure Trend and Strategy are the same way like Strategy are Long Position but MACD and Sto background is bear. that's mean this time not open position.
Donchian Fans is Simple Support and Ressistant If You Don't Know How To Plot That's, This indicator plot a simple for you ><.
Make Sure With Engulfing and 3 Candle Engulfing If You Don't Know, What's The Engulfing, This Indicator are plot for you too ><.
For a Big Trend You can use Ichimoku Cloud For Check Trend, Candle Upper Than Cloud or Lower Than Cloud for Bull and Bear Trend.
Inter-Exchanges Crypto Price Spread Deviation (Tartigradia)Measures the deviation of price metrics between various exchanges. It's a kind of realized volatility indicator, as the idea is that in times of high volatility (high emotions, fear, uncertainty), it's more likely that market inefficiencies will appear for the same asset between different market makers, ie, the price can temporarily differ a lot. This indicator will catch these instants of high differences between exchanges, even if they lasted only an instant (because we use high and low values).
Both standard deviation and median absolute deviation (more robust to outliers, ie, exchanges with a very different price from others won't influence the median absolute deviation, but the standard deviation yes).
Compared to other inter-exchanges spread indicators, this one offers two major features:
* The symbol automatically adapts to the symbol currently selected in user's chart. Hence, switching between tickers does not require the user to modify any option, everything is dynamically updated behind the scenes.
* It's easy to add more exchanges (requires some code editing because PineScript v5 does not allow dynamical request.security() calls).
Limitations/things to know:
* History is limited to what the ticker itself display. Ie, even if the exchanges specified in this indicator have more data than the ticker currently displayed in the user's chart, the indicator will show only a timeperiod as long as the chart.
* The indicator can manage multiple exchanges of different historical length (ie, some exchanges having more data going way earlier in the past than others), in which case they will simply be ignored from calculations when far back in the past. Hence, you should be aware that the further you go in the past, the less exchanges will have such data, and hence the less accurate the measures will be (because the deviation will be calculated from less sources than more recent bars). This is thanks to how the array.* math functions behave in case of na values, they simply skip them from calculations, contrary to math.* functions.
The On Balance Volume & Accumulation Distribution RibbonMedic trades using "Smart Money Concepts", and Medic's system revolves around the one taught by MentFX (i.e. Structure, Supply/ Demand Zone , and Confirmation). While this system per se doesn't require the use of a volume indicator, Medic has come to respect the OBV and Accumulation / Distribution .
The OBV Ribbon is available in many a shape and form, but Medic wanted something more responsive, and the OBVAD is just that.
This ribbon works across all time frames, and allows users to visualize what is happening behind the scenes of The Trigger indicator.
The Ribbon applies 11 DEMA of different periods to the cumulative sum of SpaceTrader's OBV/AD formula: volume*(close-open)/( high-low )*hlc3.
The Ribbon is able to identify the general trend, and changes into a blu ein an uptrend, and purple in a downtrend, and also potential reversals by means of divergences.
Expansion Finder by nnamWhat this Indicator Does
This indicator helps the trader locate expansion and contraction areas in an easy visual way.
When the asset moves from a contraction phase into an expansion phase, the bars change color (customizable). This allows the trader to recognize areas of contraction and avoid trading them. Once a Bar Range moves outside of the average range as specified by the user, the bar will change color informing the trader that the current bar and by default the market, is moving into an expansion phase from a contraction phase.
The indicator works well for those traders that use the Forex Master Pattern to locate Value Lines and Value Areas on the chart giving them an opportunity to draw in these areas with ease.
As shown in the screenshot below, the boxes are manually drawn after the trader locates an easily identifiable area of contraction.
The Indicator makes it easy to find longer areas of contraction and ignore the noise of smaller contractions.
Customizable Settings allow the trader to define the lookback range that determines the number of bars to base the average.
A "multiplier" setting allows the trader to easily adjust the Average by changing the average using a simple calculation.
Example, if the average multiplier is set to "1", the average will be used.
Using the standard average is not always the best way to define these contractions, so traders can set the average to a higher or lower number by using the multiplier, thus changing the calculation but maintaining a consistent number across the chart.
Example: If the average is not plotting the contraction correctly, the trader can manually adjust the multiplier down to 0.5 thus adjusting the average in half or increase the multiplier to 2 thus doubling the average.
As seen in the screenshot below, this changes the number of expansion bars visible on the chart.
Below you can see Value Areas and Value Lines drawn in. These lines assist the trader in defining important levels for future trading.
I hope this Indicator helps you locate value areas and value lines on charts in an easy way.
Any questions or concerns or suggestions, please do not hesitate to reach out.
Happy Trading !!!!
NYSE & NASDAQ Advance Minus Decline OscillatorThis indicator is meant to observe NYSE & NASDAQ Advance minus Decline Oscillator in one. It also paints extreme levels at +2000 and -2000. It is used in combination to identify changes across the two markets or to observe broad market strength/weakness.
RSI with Market FilterThis is a normal Relative Strength Index with default length set to 14 periods
In addition, SET and MAI market Trend filter:
When SET or MAI is above 10 and 35 EMA - consider as a strong uptrend.
SET or MAI is below EMA 10 but still above EMA 35 - consider as a healthy Uptrend but resting with lower momentum.
SET or MAI is below EMA 10 and 35 - consider as a Downtrend. It is recommended not to trade in this market.
SET or MAI is above EMA 10 but below EMA 35 - consider as a starting point of the uptrend. It is recommended to start looking for a possible trade when the market flip into Uptrend.
Crypto McClellan Oscillator (SLN Fix)This is an adaption of the Mcclellan Oscillator for crypto. Instead of tracking the S&P500 it tracks a selection of cryptos to make sure the indicator follows this sector instead.
Full credit goes to the creator of this indicator: Fadior. It has since been fixed by SLN.
The following description explains the standard McClellan Oscillator. Full credit to Investopedia , my fav source of financial explanations.
The same principles applies to its use in the crypto sector, but please be cautious of the last point, the limitations. Since crypto is more volatile, that could amplify choppy behavior.
This is not financial advice, please be extremely cautious. This indicator is only suitable as a confirmation signal and needs support of other signals to be profitable.
This indicator usually produces the best signals on slightly above daily time frame. I personally like 2 or 3 day, but you have to find the settings suitable for your trading style.
What Is the McClellan Oscillator?
The McClellan Oscillator is a market breadth indicator that is based on the difference between the number of advancing and declining issues on a stock exchange, such as the New York Stock Exchange (NYSE) or NASDAQ.
The indicator is used to show strong shifts in sentiment in the indexes, called breadth thrusts. It also helps in analyzing the strength of an index trend via divergence or confirmation.
The McClellan Oscillator formula can be applied to any stock exchange or group of stocks.
A reading above zero helps confirm a rise in the index, while readings below zero confirm a decline in the index.
When the index is rising but the oscillator is falling, that warns that the index could start declining too. When the index is falling and the oscillator is rising, that indicates the index could start rising soon. This is called divergence.
A significant change, such as moving 100 points or more, from a negative reading to a positive reading is called a breadth thrust. It may indicate a strong reversal from downtrend to uptrend is underway on the stock exchange.
How to Calculate the McClellan Oscillator
To get the calculation started, track Advances - Declines on a stock exchange for 19 and 39 days. Calculate a simple average for these, not exponential moving average (EMA).
Use these simple values as the Prior Day EMA values in the 19- and 39-day EMA formulas.
Calculate the 19- and 39-day EMAs.
Calculate the McClellan Oscillator value.
Now that the value has been calculated, on the next calculation use this value for the Prior Day EMA. Start calculating EMAs for the formula instead of simple averages.
If using the adjusted formula, the steps are the same, except use ANA instead of using Advances - Declines.
What Does the McClellan Oscillator Tell You?
The McClellan Oscillator is an indicator based on market breadth which technical analysts can use in conjunction with other technical tools to determine the overall state of the stock market and assess the strength of its current trend.
Since the indicator is based on all the stocks in an exchange, it is compared to the price movements of indexes that reflect that exchange, or compared to major indexes such as the S&P 500.
Positive and negative values indicate whether more stocks, on average, are advancing or declining. The indicator is positive when the 19-day EMA is above the 39-day EMA, and negative when the 19-day EMA is below the 39-day EMA.
A positive and rising indicator suggests that stocks on the exchange are being accumulated. A negative and falling indicator signals that stocks are being sold. Typically such action confirms the current trend in the index.
Crossovers from positive to negative, or vice versa, may signal the trend has changed in the index or exchange being tracked. When the indicator makes a large move, typically of 100 points or more, from negative to positive territory, that is called a breadth thrust.
It means a large number of stocks moved up after a bearish move. Since the stock market tends to rise over time, this a positive signal and may indicate that a bottom in the index is in and prices are heading higher overall.
When index prices and the indicator are moving in different directions, then the current index trend may lack strength. Bullish divergence occurs when the oscillator is rising while the index is falling. This indicates the index could head higher soon since more stocks are starting to advance.
Bearish divergence is when the index is rising and the indicator is falling. This means fewer stocks are keeping the advance going and prices may start to head lower.
Limitations of Using the McClellan Oscillator
The indicator tends to produce lots of signals. Breadth thrusts, divergence, and crossovers all occur with some frequency, but not all these signals will result in the price/index moving in the expected direction.
The indicator is prone to producing false signals and therefore should be used in conjunction with price action analysis and other technical indicators.
The indicator can also be quite choppy, moving between positive and negative territory rapidly. Such action indicates a choppy market, but this isn't evident until the indicator has made this whipsaw move a few times.
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