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MCumulativeDelta* MCumulativeDelta Indicator * The MCumulativeDelta Indicator shows the Buying / Selling pressure that is happening in the market. The Delta is powered by the *MBox Precision Delta* Algorithm. This indicator serves to show overall Accumulation and Distribution of the BUYERS and the SELLERS. It becomes possible to gauge if the market is overall Bullish or Bearish. This helps determine trade direction and keeping out of other trades that are counter to what the overall Buying / Selling is showing. * WHAT THE SCRIPT DOES * The script draws a histogram that can either be positive or negative. When the histogram is positive it means there are more Buyers in the Market. When the histogram is negative it means there are more sellers in the market. The more positive the histogram gets, the more BUYERS are flooding the market. The more negative the histogram gets, the more SELLERS are flooding the market. When the histogram switches over from negative to positive it is a Bullish sign of Buying. When the histogram switches over from positive to negative, it is a Bearish sign of Selling. * HOW TO USE IT * As the histogram becomes more negative, this shows that the SELLERS have taken control of the markets. Conversely, as the histogram becomes more positive, this shows that the Buyers have taken control of the markets. The side that is in control is the direction to generally place trades in, and at the same time filter out trades of the opposite direction. * HOW IT WORKS * The MCumulativeDelta histogram on the chart represents overall Buying / Selling. This is the DELTA (difference) between the BUYING and the SELLING. Taking the total BUYING and subtracting the total of SELLING, we produce the DELTA (difference) between the Buying / Selling and this is what is drawn by the histogram. Unlike other Cumulative Delta indicators which determine delta from the Up / Down wick and just multiply by volume (not a true delta), the MCumulativeDelta indicator uses a sophisticated algorithm that analyzes price movement corresponding to volume movement. The way the DELTA, BUYING, and SELLING is calculated is computed by the *MBox Precision Delta* Algorithm. The algorithm considers the following data points when making it's computation 1. Price moving up on increasing volume 2. Price moving up on decreasing volume 3. Price moving horizontally on increasing volume 4. Price moving horizontally on decreasing volume 5. Price moving down on increasing volume 6. Price moving down on decreasing volume Using these data points allows MCumulativeDelta to effectively compute and define the following scenarios 1. Accumulation / Distribution 2. Buying / Selling Exhaustion 3. Buying / Selling EFFORT / NO RESULT Once the scenario is determined, it will greatly aid in trade decision making. These scenarios are explained in the examples below * EXAMPLE AND USE CASES * - Accumulation Example - When you see a large amount of BUYING (large positive histogram) and price entering an up trend, this is indicative of Accumulation and you would be looking for PULLBACKS to get into the up trend move. - Distribution Example - When you see a large amount of SELLING (large negative histogram) and price entering a down trend, this is indicative of Distribution and you would be looking for pullbacks to get into the down trend move. - Buying EXHAUSTION Divergence - As price makes higher highs, but the MCumulativeDelta histogram drops (becomes less positive) on the higher highs, it means BUYERS are exhausted. Potentially a reversal or change in behavior in the markets. - Selling EXHAUSTION Divergence - As price makes lower lows, but the MCumulativeDelta histogram contracts (becomes less negative) on the lower lows, it means SELLERS are exhausted. Potentially a reversal or change in behavior in the markets. - BUYING EFFORT / NO RESULT - As the MCumulativeDelta histogram increases positively, but price fails to make higher highs, it is a sign of EFFORT / NO RESULT on behalf of the Buyers. In this case Buyers are pushing hard to move price up, but are unable to, due to being OVERBOUGHT. If this is accompanied by visible SELLING, it would be a good short entry. - SELLING EFFORT / NO RESULT - As the MCumulativeDelta histogram increases negatively, but price fails to make lower lows, it is a sign of EFFORT / NO RESULT on behalf of the Sellers. In this case Sellers are pushing hard to move price down, but are unable to, due to being OVERSOLD. If this is accompanied by visible BUYING, it would be a good long entry. * SETTING ALERTS * - FOR CROSSING FROM BUYING TO SELLING OR SELLING TO BUYING - To be alerted when the histogram crosses over from Buying to Selling (Positive to Negative) or Selling to Buying (Negative to Positive) 1. Right Click Chart -> Add Alert... 2. Select Condition to be "MCumulativeDelta" 3. Select "Crossing" with Value = 0 4. Options set "Once Per Bar Close" 5. Customize Any other Alert Options you want * AUTHOR * This script is published by MBoxWave LLC
Pine Script™ indicator
by mboxwave
XPrecisionSwing (XPS)* XPrecisionSwing (XPS) Indicator * Is a visual representation of the Forces of Supply / Demand in the markets in the form of UP and DOWN waves. The Supply / Demand (denoted by a number on top or below the wave line) is computed using the *MBox Precision Supply / Demand* algorithm. These numbers diligently show the forces of Supply and Demand moving price in the markets. The algorithm for computing the numbers on the top and bottom of the wave lines measures the strength of the Supply / Demand. It is this algorithm that makes this indicator unique as it gives an accurate representation of the forces pulling the market up and down. When forces oppose each other, meaning when the direction of price does not agree with the direction of the Supply or Demand it creates a divergence and an opportunity in the markets. These situations are called BUY / SELL Imbalances. Explanation about this below. * WHAT THE SCRIPT DOES * The XPrecisionSwing indicator draws swing waves lines going up and down. These waves lines are representative of Supply and Demand. Waves going up are Demand, while waves going down are Supply. The strength of the Supply / Demand corresponds to the number drawn either on top of the wave line or below it. The numbers drawn on the chart are powered by the *MBox Precision Supply / Demand* algorithm, which are representative of the Forces of Supply / Demand in the markets. This is not just volume added up like in a regular zig zag indicator, since volume alone does not show Supply / Demand, and regular volume will not show BUY / SELL Imbalances as depicted by XPrecisionSwing. Volume summated will not show both positive and negative numbers on the chart. Having Supply / Demand split into both positive and negative numbers allows us to see BUY / SELL Imbalances, which can be a very powerful divergence. Information on how these numbers are computed are in the "HOW IT WORKS" section. The numbers drawn on the chart can be either negative or positive. Positive relates to Demand, while negative relates to Supply. In this manner the strength of Supply and Demand can be gauged in each wave. If the price goes up but the number is negative (More Supply) it is a divergence and called a SELL Imbalance. This means there was more Supply even though price went up. It is important to pay attention to these scenarios, as often it can be indicative of NO DEMAND. Conversely. if the price goes down but the number is positive (No Demand) it is a divergence and is called a BUY Imbalance. This means there was more Demand even though price went down. This is indicative of NO SUPPLY. As such, it now becomes possible to know when there is a sign of Supply, Demand, No Supply, No Demand, Supply Exhaustion, and Demand exhaustion. Supply occurs when the negative numbers on the charts begin to increase (more negatively). Demand occurs when the positive numbers on the chart begin to increase (more positively). A Supply Exhaustion pattern happens when the price is starting to move down more slowly, while Supply is decreasing, and Demand is increasing. This means that the behavior of the market is changing and also a signal to look to reverse positions. A Demand Exhaustion pattern happens when the price is starting to move up more slowly, while Demand is decreasing, and Supply is increasing. The behavior of the market here is also changing. * HOW IT WORKS * - Technical Details for the Numbers on the Swing - The numbers on the chart represent Supply / Demand. Supply or Demand is determined by analyzing the movement of price and quantity of volume. When price goes up and is combined with an increase in volume it is Expansion of Demand. (Positive Numbers get larger) However if price goes up and is combined with a decrease in volume it is Contraction of Demand. (Positive Numbers get smaller) When price goes down and is combined with an increase in volume it is Expansion of Supply. (Negative Numbers get larger) However if price goes down and is combined with a decrease in volume it is Contraction of Supply. (Negative Numbers get smaller) - Technical Details for the Swing - The way XPrecisionSwing draws the swings is fractal in nature, which make it very convenient and easier to use over the traditional zig zag indicator. The traditional zig zag indicator uses a tick reversal which needs to be adjusted every time you change time frames. However, with XPrecisionSwing you do not have to change any settings every time you load a different time frame since it will adjust to any time frame you are loading. How the swing is drawn is explained below. XPrecisionSwing uses 3 bars (by default) to define a swing This parameter can be adjusted. Can be 1, 2, 4 bars, etc... Swings are always drawn using High / Low of the bar - Rules - To start upswing, bar high needs to be higher than previous 3 candle highs To start downswing, bar low needs to be lower than previous 3 candle lows If in upswing, a higher high will continue the upswing if in downswing, a lower low will continue the downswing - Exceptions - If outside bar (both high and low exceeds previous 3 bars) swing will continue in current direction - Swing Confirmation - Swing wave line in progress (unconfirmed) is denoted by a brown box around the swing number Once the brown box disappears, that swing wave and number is confirmed * HOW TO USE IT * As the numbers on the down waves increase (negatively), this shows that the bears have taken control of the markets. Conversely, as the numbers on the up waves increase (positively), this shows the bulls have taken control of the markets. Whoever is in control is the direction you generally want to place your trades in. When you see an increase in Supply (numbers on down wave) accompanied with a decrease in Demand (numbers on up wave) this shows a Supply + Demand Exhaustion Pattern. This is stronger than if you only see an increase in Supply without a decrease in Demand. - The Buy / Sell Imbalances - If you see a positive blue number on the bottom of a DOWN Wave, this means that there was more buying than selling even though price moved down. If you see a negative red number on the top of an UP Wave, this means that there was more selling than buying even though price moved up. Both of these cases signify and imbalance and a divergence. * EXAMPLE AND USE CASES * - Sell Imbalance Example - If you see a large negative number with a lower low on a down wave, and then the next up wave is a lower high also with a negative number it shows that there is only Supply flooding the market and no sign of Demand. This is a very powerful combo. - Buy Imbalance Example - If you see a large positive number with a higher high on an up wave, and then the next down wave is a higher low also with a positive number it shows that there is only Demand flooding the market and no sign of Supply. This is a very powerful combo. - Supply Exhaustion example - If you see price movement struggling to make newer lows and the Supply numbers on the down waves are decreasing, while the Demand numbers on the up waves are increasing this is indicative of a *Change of Behavior*, and that the market is showing signs of reversal. - Break out on Demand example - If you see price has been ranging and now the numbers on the UP waves begin to increase while breaking out of a previous area of resistance, it is a good sign that the movement is backed by the strength coming from the Demand. * BUY / SELL IMBALANCE ALERTS * The Green / Red crosses on the chart show exactly where the Buy / Sell Imbalance Alerts trigger. These will NEVER repaint! The crosses can be hidden in Styles if you wish to. Alerts can be set very easily with the instructions below. 1. Right Click Chart -> Add Alert... (Ignore Caution Warning. These alerts will *ONLY* trigger on Confirmed BUY / SELL Imbalances and will NOT repaint) 2. Select Condition to be "XPrecisionSwing" 3. Select "Buy Imbalance" or "Sell Imbalance" 4. Select "Greater Than" with Value = 0 5. Options set "Once Per Bar" 6. Customize Any other Alert Options you want * WHAT MAKES IT ORIGINAL * XPrecisionSwing gives an inside look into the markets by showing price movements as a series of waves going up and down with their corresponding Supply / Demand numbers associated with each wave. Reading the numbers shows the strength of Supply / Demand. The bigger the number the stronger the Supply / Demand is. The smaller the number the weaker the Supply / Demand is. It becomes possible to see where Supply / Demand comes in, along with Exhaustion of Supply / Demand to spot opportunities to place trades. The Buy / Sell Imbalances show imbalances where price movement and the direction of the Supply / Demand diverge to create potential opportunities as well. * AUTHOR * This script is published by MBoxWave LLC
Pine Script™ indicator
by mboxwave
5
Buying and Selling Smoothed with HistogramBuying and Selling Smoothed with Histogram Smoothed version with version with a red line representing the selling pressure and a green line which represents the Buying pressure. If the green line is above the red line it would mean that the Buying pressure is more and vice versa. The difference between the two is plotted as a Histogram. This is a cumulative value of the buying and selling pressure and provides a easy visual presentation of the dominating pressure.
Pine Script™ indicator
by ceyhun
8