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Candlestick analysis

Multi-Confluence Swing Hunter V1# Multi-Confluence Swing Hunter V1 - Complete Description Overview The Multi-Confluence Swing Hunter V1 is a sophisticated low timeframe scalping strategy specifically optimized for MSTR (MicroStrategy) trading. This strategy employs a comprehensive point-based scoring system that combines optimized technical indicators, price action analysis, and reversal pattern recognition to generate precise trading signals on lower timeframes. Performance Highlight: In backtesting on MSTR 5-minute charts, this strategy has demonstrated over 200% profit performance, showcasing its effectiveness in capturing rapid price movements and volatility patterns unique to MicroStrategy's trading behavior. The strategy's parameters have been fine-tuned for MSTR's unique volatility characteristics, though they can be optimized for other high-volatility instruments as well. ## Key Innovation & Originality This strategy introduces a unique **dual scoring system** approach: - **Entry Scoring**: Identifies swing bottoms using 13+ different technical criteria - **Exit Scoring**: Identifies swing tops using inverse criteria for optimal exit timing Unlike traditional strategies that rely on simple indicator crossovers, this system quantifies market conditions through a weighted scoring mechanism, providing objective, data-driven entry and exit decisions. ## Technical Foundation ### Optimized Indicator Parameters The strategy utilizes extensively backtested parameters specifically optimized for MSTR's volatility patterns: **MACD Configuration (3,10,3)**: - Fast EMA: 3 periods (vs standard 12) - Slow EMA: 10 periods (vs standard 26) - Signal Line: 3 periods (vs standard 9) - **Rationale**: These faster parameters provide earlier signal detection while maintaining reliability, particularly effective for MSTR's rapid price movements and high-frequency volatility **RSI Configuration (21-period)**: - Length: 21 periods (vs standard 14) - Oversold: 30 level - Extreme Oversold: 25 level - **Rationale**: The 21-period RSI reduces false signals while still capturing oversold conditions effectively in MSTR's volatile environment **Parameter Adaptability**: While optimized for MSTR, these parameters can be adjusted for other high-volatility instruments. Faster-moving stocks may benefit from even shorter MACD periods, while less volatile assets might require longer periods for optimal performance. ### Scoring System Methodology **Entry Score Components (Minimum 13 points required)**: 1. **RSI Signals** (max 5 points): - RSI < 30: +2 points - RSI < 25: +2 points - RSI turning up: +1 point 2. **MACD Signals** (max 8 points): - MACD below zero: +1 point - MACD turning up: +2 points - MACD histogram improving: +2 points - MACD bullish divergence: +3 points 3. **Price Action** (max 4 points): - Long lower wick (>50%): +2 points - Small body (<30%): +1 point - Bullish close: +1 point 4. **Pattern Recognition** (max 8 points): - RSI bullish divergence: +4 points - Quick recovery pattern: +2 points - Reversal confirmation: +4 points **Exit Score Components (Minimum 13 points required)**: Uses inverse criteria to identify swing tops with similar weighting system. ## Risk Management Features ### Position Sizing & Risk Control - **Single Position Strategy**: 100% equity allocation per trade - **No Overlapping Positions**: Ensures focused risk management - **Configurable Risk/Reward**: Default 5:1 ratio optimized for volatile assets ### Stop Loss & Take Profit Logic - **Dynamic Stop Loss**: Based on recent swing lows with configurable buffer - **Risk-Based Take Profit**: Calculated using risk/reward ratio - **Clean Exit Logic**: Prevents conflicting signals ## Default Settings Optimization ### Key Parameters (Optimized for MSTR/Bitcoin-style volatility): - **Minimum Entry Score**: 13 (ensures high-conviction entries) - **Minimum Exit Score**: 13 (prevents premature exits) - **Risk/Reward Ratio**: 5.0 (accounts for volatility) - **Lower Wick Threshold**: 50% (identifies true hammer patterns) - **Divergence Lookback**: 8 bars (optimal for swing timeframes) ### Why These Defaults Work for MSTR: 1. **Higher Score Thresholds**: MSTR's volatility requires more confirmation 2. **5:1 Risk/Reward**: Compensates for wider stops needed in volatile markets 3. **Faster MACD**: Captures momentum shifts quickly in fast-moving stocks 4. **21-period RSI**: Reduces noise while maintaining sensitivity ## Visual Features ### Score Display System - **Green Labels**: Entry scores ≥10 points (below bars) - **Red Labels**: Exit scores ≥10 points (above bars) - **Large Triangles**: Actual trade entries/exits - **Small Triangles**: Reversal pattern confirmations ### Chart Cleanliness - Indicators plotted in separate panes (MACD, RSI) - TP/SL levels shown only during active positions - Clear trade markers distinguish signals from actual trades ## Backtesting Specifications ### Realistic Trading Conditions - **Commission**: 0.1% per trade - **Slippage**: 3 points - **Initial Capital**: $1,000 - **Account Type**: Cash (no margin) ### Sample Size Considerations - Strategy designed for 100+ trade sample sizes - Recommended timeframes: 4H, 1D for swing trading - Optimal for trending/volatile markets ## Strategy Limitations & Considerations ### Market Conditions - **Best Performance**: Trending markets with clear swings - **Reduced Effectiveness**: Highly choppy, sideways markets - **Volatility Dependency**: Optimized for moderate to high volatility assets ### Risk Warnings - **High Allocation**: 100% position sizing increases risk - **No Diversification**: Single position strategy - **Backtesting Limitation**: Past performance doesn't guarantee future results ## Usage Guidelines ### Recommended Assets & Timeframes - **Primary Target**: MSTR (MicroStrategy) - 5min to 15min timeframes - **Secondary Targets**: High-volatility stocks (TSLA, NVDA, COIN, etc.) - **Crypto Markets**: Bitcoin, Ethereum (with parameter adjustments) - **Timeframe Optimization**: 1min-15min for scalping, 30min-1H for swing scalping ### Timeframe Recommendations - **Primary Scalping**: 5-minute and 15-minute charts - **Active Monitoring**: 1-minute for precise entries - **Swing Scalping**: 30-minute to 1-hour timeframes - **Avoid**: Sub-1-minute (excessive noise) and above 4-hour (reduces scalping opportunities) ## Technical Requirements - **Pine Script Version**: v6 - **Overlay**: Yes (plots on price chart) - **Additional Panes**: MACD and RSI indicators - **Real-time Compatibility**: Confirmed bar signals only ## Customization Options All parameters are fully customizable through inputs: - Indicator lengths and levels - Scoring thresholds - Risk management settings - Visual display preferences - Date range filtering ## Conclusion This scalping strategy represents a comprehensive approach to low timeframe trading that combines multiple technical analysis methods into a cohesive, quantified system specifically optimized for MSTR's unique volatility characteristics. The optimized parameters and scoring methodology provide a systematic way to identify high-probability scalping setups while managing risk effectively in fast-moving markets. The strategy's strength lies in its objective, multi-criteria approach that removes emotional decision-making from scalping while maintaining the flexibility to adapt to different instruments through parameter optimization. While designed for MSTR, the underlying methodology can be fine-tuned for other high-volatility assets across various markets. **Important Disclaimer**: This strategy is designed for experienced scalpers and is optimized for MSTR trading. The high-frequency nature of scalping involves significant risk. Past performance does not guarantee future results. Always conduct your own analysis, consider your risk tolerance, and be aware of commission/slippage costs that can significantly impact scalping profitability.
Pine Script® strategy
by Quant_Trading_Pro
2
Trading Tools🎯 Trading Tools – Your All-in-One Market Analysis Solution Developed by Marcelo Ulisses Sobreiro Ribeiro, Trading Tools is a powerful, multi-functional indicator that combines essential trading features into a single, streamlined tool. Perfect for traders who want clear, precise market opportunities across any asset or timeframe. 🔥 Key Features: 📊 Smart Moving Averages Customizable setup for up to 5 MAs (EMA, SMA, WMA). Color-coded fills between MAs to highlight trends (bullish/bearish). Dynamic 20-period MA (color shifts with trend). Alerts for crossovers and trend changes. 🕒 Killzones (High-Liquidity Sessions) Visual highlights for key trading sessions: Asia, London, NY AM, NY Lunch, and NY PM. Customizable colors and transparency. Drawing limit to avoid chart clutter. 📅 Time-Based Markers Day-of-week labels (option to hide weekends). Day separators (customizable style). 🎨 Rule-Based Candle Coloring Expanded True Range (large candles). Inside Bars. 123 Pattern (Mark Crisp). Bullish/Bearish Engulfing. Price of Closing Reversal (PFR). Market Strength. Overbought/Oversold (RSI & Stochastic). ⚖️ Imbalance Detector (FVG, OG, VI) Fair Value Gaps (FVG). Opening Gaps (OG). Volume Imbalance (VI). 🔄 Stochastic Cross & Valid Pullbacks Stochastic crossover signals (up/down arrows). Valid pullback alerts. 📈 Dynamic Support & Resistance Previous day’s high/low (PDH/PDL). Automatic pivot detection (significant highs/lows). ⚙️ Full Customization Adjust timeframe limits, timezone, label size, and colors. Control how many drawings are kept on the chart. 🚨 Built-in Alerts Alerts for 20-period MA, PFR, Pullbacks, and more! 📌 Why Use Trading Tools? All-in-one solution: No need for multiple indicators. Intuitive visuals: Colors and markers simplify setup identification. Adaptable: Works on any asset (forex, stocks, crypto). 🔹 Perfect for traders who want efficiency and clarity in their analysis!
Pine Script® indicator
by musribeiro
4
Heatmap w/ ATRThis script combines Heatmap Volume with a scaled ATR (Average True Range) overlay for dynamic market insight. Volume bars are color-coded based on how many standard deviations they deviate from a moving average, helping identify spikes, absorption, or anomalies. The ATR is scaled relative to the maximum volume observed to maintain visual alignment in the same pane. This allows traders to compare price volatility (ATR) against real market activity (volume) in one view. Use this overlay to: Spot high-volatility, high-conviction moves (rising ATR + red/orange bars) Detect low-volume fakeouts (high ATR, cool-colored bars) Identify compression zones before expansion (low ATR + normal volume)
Pine Script® indicator
by chrisapach
cd_secret_candlestick_patterns_CxHi traders, With this indicator, we aim to uncover secret candlestick formations that even advanced traders may miss—especially those that can't be detected by classic pattern indicators, unless you're a true master of candlestick patterns or candle math. ________________________________________ General Idea: We'll try to identify candlestick patterns by regrouping candles into custom-sized segments that you define. You might ask: “Why do I need this? I can just look at different timeframes and spot the structure anyway.” But it’s not the same. For example, if you're using a 1-minute chart and add a higher-timeframe candle overlay (like 5-minute), the candles you see start at fixed timestamps like 0, 5, 10, etc. However, in this indicator, we redraw new candles by grouping them from the current candle backward in batches of five. These candles won't match the standard view—only when aligned with exact time multiples (e.g., 0 and 5 minutes) will they look the same. In classic charts: • You see 5-minute candles that begin every 0 and 5 minutes. In this tool: • You see a continuously updating set of 5 merged 1-minute candles redrawn every minute. What about the structures forming in between those fixed timeframes? That’s exactly what we’ll be able to detect—while also making the lower timeframe chart more readable. ________________________________________ Candle Merging: Let’s continue with an example. Assume we choose to merge 5 candles. Then the new candle will be formed using: open = open close = close high = math.max(high , high , high , high , high) low = math.min(low , low , low , low , low) This logic continues backward on the chart, creating merged candles in groups of 5. Since the selected patterns are made up of 3, 4, or 5 candles, we redraw 5 such merged candles to analyze. ________________________________________ Which Patterns Are Included? A total of 18 bullish and bearish patterns are included. You’ll find both widely known formations and a few personal ones I use, marked as (MeReT). You can find the pattern list and visual reference here: ________________________________________ Entry and Filtering Suggestions: Let me say this clearly: Entering a trade every time a pattern forms will not make you profitable in the long run. You need a clear trade plan and should only act when you can answer questions like: • Where did the pattern appear? • When and under what conditions? It’s more effective to trade in the direction of the trend and look for setups around support/resistance, supply/demand zones, key levels, or areas confirmed by other indicators. Whether you enter immediately after the pattern or wait for a retest is a personal choice—but risk management is non-negotiable. One of the optional filters I’ve included is a Higher Timeframe (HTF) condition, which is my personal preference: When enabled, the highest or lowest price among the pattern candles must match the high or low of the current HTF candle. You can see in the image below the decrease in the number of detected patterns on the 1-minute chart when using no filter (blue labels) compared to when the 1-hour timeframe filter is applied (red labels). Additionally, I’ve added a “protected” condition for engulfing patterns to help filter out weak classic engulf patterns. ________________________________________ Settings: From the menu, you can configure: • Number of candles for regrouping • Distance between the last candle and newly drawn candles • Show/hide options • HTF filter toggle and timeframe selection • Color, label placement, and text customization • Pattern list (select which to display or trigger alerts for) My preferred setup: While trading on the 1-minute chart, I typically set the higher timeframe to 15m or 1H, and switch the candle count between 2 and 3 depending on the situation. ⚠️ Important note: The “Show” and “Alert” options are controlled by a single command. Alerts are automatically created for any pattern you choose to display. ________________________________________ What’s Next? In future updates, I plan to add: • Pattern success rate statistics • Multi-broker confirmation for pattern validation Lastly, keep in mind: The more candles a pattern is based on, the more reliable it may be. I'd love to hear your feedback and suggestions. Cheerful trading! 🕊️📈
Pine Script® indicator
by cdikici71
9
Fair Value Gap (FVG) Detector — ICT SMC BasedThis is an open-source Fair Value Gap (FVG) indicator, based on the principles taught in ICT (Inner Circle Trader) and Smart Money Concepts (SMC). It identifies imbalances or inefficiencies in price action where the body/wick of the middle candle in a three-candle formation does not overlap with the first and third candles. 🔹 What is an FVG? An FVG is formed when there is a price imbalance, typically between three consecutive candles: A bullish FVG forms when the low of candle 1 is above the high of candle 3. A bearish FVG forms when the high of candle 1 is below the low of candle 3. These gaps are believed to represent areas of institutional activity and are often used as potential entries, targets, or reaction zones. 🔹 Features: Detects both bullish and bearish FVGs Clean chart visuals using colored boxes Adjustable box opacity and text alignment Option to show or hide filled FVGs Optional filter to only display gaps above a minimum size (e.g., 100 points) Multi-timeframe support (if enabled in script settings) Box label customization (text alignment: center/left/right) 🔹 How to Use: Use the indicator on any timeframe or instrument Larger gaps may indicate stronger price inefficiencies Combine with market structure, liquidity zones, or order blocks for confirmation This version is open-source, so traders can view and adapt the logic as needed. The indicator is designed for transparency, education, and clarity of Smart Money Concepts.
Pine Script® indicator
by JustJeff_TW
SUPER_STRATEGY_For_Swing 20%This indicator is designed for swing traders looking to capture quick 20% gains from stocks that show strong rise/fall patterns. It identifies significant reversal points and sets a clear entry and target level based on past price action. How it works: Detects strong moves (up or down) and marks potential swing trade setups. Entry is triggered when price returns to the identified level — a proven zone for high-probability trades. If price does not return to the entry level within 1 year, the signal is considered invalid. Ideal for spotting repeatable swing opportunities where risk-reward is favorable. This strategy helps you time your entries with confidence and exit at logical target zones, cutting out the noise and emotional trades. *please explore well on stock selection and back testing.
Pine Script® indicator
by nimbleprerana
MABB55 Full-CrossIndicates when the MABB55 crosses the: MABB13 MABB21 EMA8 When a full crossover happens, where the long-term average (MABB 55) moves above or below the faster ones (EMA 8, MABB 13, and 21) it means the trend has shifted so strongly and consistently that it overcomes short-term price movement. That kind of shift usually signals a trend reversal. Bullish reversals with the MABB55 crossing from above, indicated by a green arrowl. Bearish reversals with the MABB55 crossing from below, indicated by a red arrow.
Pine Script® indicator
by chrisapach
1
Reverse XReverse X is a visual tool that shows the price levels required to reach specific RSI values. It calculates and plots up to four reverse-engineered RSI lines directly on the chart. Each line can be customized with its own RSI target, color, line width, and visibility toggle. The lines are smoothed using EMA to reduce noise, and transparent fills between them highlight RSI zones. Ideal for traders who want to anticipate price movement needed to push RSI to key levels like 30, 50, or 70.
Pine Script® indicator
by HAWKLOVEWINE
3-Candle HH/HL or LH/LL (Number Labels Over Candles)What This Script Does: This Pine Script detects 3 consecutive candlesticks that show: Higher Highs and Higher Lows → a bullish structure Lower Highs and Lower Lows → a bearish structure When such a pattern is found, the script: Marks each of the 3 candles with a number: 1, 2, and 3 Labels appear centered on each candle (at the close price) You can adjust: Label size (tiny → huge) Background color (bullish/bearish) Text color Example: If candles form: Candle A: higher high & higher low Candle B: higher than A Candle C: higher than B Then you’ll see 1, 2, 3 labels on those candles in green (or your selected color). Same goes for a bearish pattern in red.
Pine Script® indicator
by belangoren
Volatility Index Percentile Risk STOCK StrategyVolatility-Index Percentile Risk STOCK Strategy ────────────────────────────────────────────── PURPOSE • Go long equities only when implied volatility (from any VIX-style index) is in its quietest percentile band. • Scale stop-loss distance automatically with live volatility so risk stays proportional across timeframes and market regimes. HOW IT WORKS 1. Pull the closing price of a user-selected volatility index (default: CBOE VIX, Nasdaq VXN, etc.). 2. Compute its 1-year (252-bar) percentile. – If percentile < “Enter” threshold → open / maintain long. – If percentile > “Exit” threshold → flatten. 3. Set the stop-loss every bar at: SL % = (current VIX value) ÷ Risk Divisor (e.g., VIX = 20 and divisor = 57 → 0.35 % SL below entry). This keeps risk tighter when volatility is high and looser when it’s calm. USER INPUTS • VIX-style Index   — symbol of any volatility index • Look-back     — length for percentile (default 252) • Enter Long < Percentile — calm-market trigger (default 15 %) • Exit Long > Percentile — fear trigger (default 60 %) • Risk Divisor (SL)  — higher number = tighter stop; start with 57 on 30-min charts • Show Debug Plots — optional visibility of percentile & SL% RECOMMENDED BACK-TEST SETTINGS • Timeframe: 30 min – Daily on liquid stocks/ETFs highly correlated to the chosen VIX. • Initial capital: 100 000 | Order size: 10 % of equity • Commission: 0.03 %   | Slippage: 5 ticks • Enable *Bar Magnifier* and *Fill on bar close* for realistic execution. ADDITIONAL INFORMATION • **Self-calibrating risk** – no static ATR or fixed %, adapts instantly to changing volatility. • **Percentile filter** – regime-aware entry logic that avoids false calm periods signalled by raw VIX levels. • **Timeframe-agnostic** – works from intraday to weekly; √T-style divisor lets you fine-tune stops quickly ,together with the percentiles and days length. • Zero look-ahead. CAVEATS • Long-only; no built-in profit target. Add one if your plan requires fixed R:R exits. • Works best on indices/stocks that move with the selected vol index. • Back-test results are educational; past performance never guarantees future returns. LICENSE & CREDITS Released under the Mozilla Public License 2.0. Inspired by academic research on volatility risk premia and mean-reversion. DISCLAIMER This script is for informational and educational purposes only. It is **not** financial advice. Use at your own risk.
Pine Script® strategy
by exlux
lucio_😎必勝StrategyThe reversal after the RCI reaches the upper and lower bounds is used as the trigger for entry and settlement. In order to follow the trend, record the highs and lows of the last 4 hours (adjustable) and aim for long above the center line and short below the center line. MACD divergence alerts and plots are possible. SMA (15m.1h.4h) tilted and colored, default display. In the case of margin trading, it is possible to display a table showing whether there is a bias toward long or short lots for margin with the above high and low as the settlement line.
Pine Script® indicator
by lucio_le
StratNinjaTableStratNinjaTable – Multi-Timeframe The Strat Candle Pattern Table This Pine Script indicator provides traders with a dynamic table overlay on the chart that displays The Strat candle patterns across multiple selectable timeframes. The table includes: The candle pattern according to The Strat method (1, 2UP, 2DOWN, 3) for each chosen timeframe Direction arrows showing bullish (▲), bearish (▼), or neutral (■) candle direction Real-time countdown timer showing remaining time until the current candle closes, adapting automatically to daily, weekly, monthly, and longer timeframes User inputs for selecting which timeframes to display and positioning of the table on the chart The current ticker symbol and chart timeframe displayed prominently The script is developed using Pine Script version 6 and is inspired by the work of shayy110, who contributed foundational code for The Strat methodology in TradingView.
Pine Script® indicator
by koriatmanagement