Simple Xtrade Fibonacci RetracementSimple Xtrade Fibonacci Retracement
The Simple Xtrade Fibonacci Retracement tool is designed to enhance your trading strategy by identifying key levels where price corrections are likely to occur. Based on the Fibonacci sequence, this tool helps traders pinpoint potential support and resistance levels during price retracements within a trend.
Key Features:
Automatic Level Calculation: The tool automatically calculates and plots essential Fibonacci levels on your chart, including the 23.6%, 38.2%, 50%, 61.8%, and 76.4% retracement levels.
Intuitive Visualization: Clear, easy-to-read lines and labels make it simple to spot crucial price levels where market reversals or continuations are most likely to happen.
Customizable Settings: Adjust the Fibonacci levels according to your trading preferences and the specific asset you're analyzing, ensuring the tool fits seamlessly into your strategy.
Benefits:
Improved Accuracy: By identifying retracement levels where the price is likely to stall or reverse, the tool enhances your ability to make well-timed entries and exits.
Enhanced Strategy Development: Incorporate Fibonacci retracement levels into your existing strategy to identify high-probability trade setups and manage risk more effectively.
User-Friendly: Designed with simplicity in mind, the tool is accessible for traders of all experience levels, providing powerful insights without overwhelming complexity.
The Simple Xtrade Fibonacci Retracement tool is a valuable asset for any trader looking to refine their strategy and improve their market analysis.
Candlestick analysis
VRS (Vegas Reversal Strategy)It is based on the reversal of the price after an accentuated volatility of the previous day. It is tested only on BTC, TF Day, and has an activation value equal to a spike of minimum 2.4% amplitude, a value that I have left in the settings free to be modified if it is found valid for other assets.
In the settings you can change how many of the latest longs or shorts I want to view in the past, colors and various aesthetics.
When the system detects a spike at the end of the day from 2.4% onwards it will signal the direction of Reversal, generating the 3 TP, dotted lines.
Entry into the market must be done at the close of the candle day, unfortunately at night time if you want to enter on the tick.
Stop above/below the spike that generated the condition.
If the Day2 candle closes FULL inside the spike, immediate and early closing of the operation.
There cannot be two consecutive Day events: if you are Long or Short and have taken a stop on the next candle, even if the latter generates another entry, this must not be activated.
TP 1 and 2 are both mandatory at 33% of the position, TP3, based on the current movement, can be considered to be left to run to the bitter end or in any case to structuring confirmations of a slowdown in the price.
Upon reaching TP1 it is mandatory to move the STOP to even.
In the event of the presence of extremely strong directional movements, for example Long direction, an opposite activation, Short, must be done but with reduced capital, on the contrary an activation in the same direction as the trend movement can be done with a surcharge. Always pay attention to Money Management and Risk Management.
Always manage Risk and Money Management in an adequate, technical and sustainable manner in relation to your capital. A fair exposure per transaction is between 1% and 2% of the capital.
Arithmetic Candlesticks (Zeiierman)█ Arithmetic Candlestick - Overview
Arithmetic Candlesticks (Zeiierman) introduce a new way to read charts by applying logical arithmetic to real price data. These candlesticks focus on filtering out noise and smoothing price movements using a bell-shaped curve, which helps to refine the data and highlight the true trend. This approach provides a clearer view of market trends, allowing traders to interpret price action more effectively with minimal lag and distraction.
⚪ What is Arithmetic Candlesticks
Arithmetic Candlesticks use a calculation method rooted in the idea that the market moves in patterns that can be identified and predicted by examining past price movements.
Analyzing momentum, price action, and trend patterns is useful for traders who want to quickly scan and identify price patterns, trends, and momentum in the market. The system searches for these patterns and trends to anticipate future price movements. Traders and investors can identify trends hidden in market noise, enabling them to uncover trading opportunities that might not be immediately obvious to the naked eye.
⚪ Eliminates price noise
The Arithmetic Candlestick noise filtering function is used to reduce price noise, which is the randomness in the price movement of an asset caused by market participants trading on a short-term basis. The idea behind the filter is that it eliminates the impact of short-term fluctuations in the price, thus providing a more accurate picture of the overall trend.
█ Capturing Trends with precise chart reading
Trend moves are some of the biggest moneymakers in trading; in fact, trading in the direction of the trend reduces risk and increases profit potential. Arithmetic Candlestick helps traders do just that.
In a fast-moving and volatile market characterized by high-frequency algorithms, retail traders have a hard time distinguishing the real trend from the noise. Arithmetic Candlesticks are designed to filter out the noise created by insignificant price moves and leave traders with the price action that matters, namely a clear and insightful chart reading. Due to its sophisticated mathematical calculations, Arithmetic Candlesticks are able to analyze any market and timeframe.
█ How to use Arithmetic Candlesticks
Arithmetic Candlesticks is an all-in-one trend and momentum tool that can be used stand-alone or in conjunction with other indicators. Its primary use is to provide a clear chart reading, easily identify trends, and help traders stay longer in trends.
The indicator includes excellent momentum features that offer insights into the current momentum and the strength of the price action. This provides traders with a unique chart experience that yields valuable insights. The indicator boasts numerous features, each of which can be used stand-alone or in combination with others. Read more about the features below.
These candles can be used in conjunction with other indicators such as support/resistance, trendlines, ICT trading, and other patterns.
█ Arithmetic Candlesticks features
The indicator comes with tons of great features that make the indicator into its own system that can be used stand-alone. You find everything from trend reading, entry/exit points, identifying momentum, and auto-stop loss.
⚪ Candle Modes:
Traders can select from three different types of arithmetic candle calculations and enable our volatility-adjusted filter for all of them. By default, the candles are set to Arithmetic candlesticks. However, depending on their trading preferences, users can select Arithmetic + Heikin Ashi Candles or Impulse + Wicks Candles.
The Heikin Ashi mode of the candlesticks makes the indicator smoother and more trend-friendly.
The Impulse + Wick mode of the candlesticks makes the indicator responsive to momentum. The length of the wicks represents the strength of the current momentum. The longer the wicks, the greater the momentum in the market.
If traders enable the Volatility Adjusted candles , the indicator becomes much more responsive to volatility moves, which is a way of making the candlesticks more responsive to significant price movements.
⚪ Trend coloring
Arithmetic candlesticks come in three different color modes: the default one, the gradient one, and the advanced trend coloring. Enable the Trend coloring if you want to engage in long-term trend trading. This filter does not change the arithmetic candlesticks, only the bar coloring.
⚪ Buy and Sell signals
To make trend trading easier to understand, we have included Buy/Sell signals. These signals are based both on the type of candlesticks selected and the type of coloring used. In addition, they come with three filters and are available in scalping and trend modes.
Candle Color Filter: A buy signal will only occur if the candlesticks are bullish, and a sell signal will only occur if the candlesticks are bearish.
Trend Tracker Filter: A buy signal will only occur if the Trend Tracker is bullish, and a sell signal will only occur if the Trend Tracker is bearish.
When both filters are applied, it means that both the candle color and the Trend Tracker should have the same sign in order to trigger a signal.
These filters are very effective and should be used when utilizing the signals.
Take Profit signals can be enabled to help traders know when to take profits.
Adaptive Stop Loss can be enabled for the signals, helping traders manage their risk.
⚪ Trend Tracker
The Trend Tracker line provides insights about the underlying trend. Adjust it if you want to engage in scalping, which makes the line much more responsive. Set the underlying speed of the trend to either Fast or Slow. This Trend Tracker works well in conjunction with Arithmetic Candlesticks and the associated signals.
⚪ Trend Sentiment
Enable Trend Sentiment to identify the levels at which the market is considered bullish or bearish. This feature helps you gauge the overall market direction, allowing you to align your trades with the prevailing trend. The Trend Sentiment also measures the strength of the trend, highlighting whether the current price action reflects a strong or weak trend. Adjust the sensitivity to determine how early or late you want to capture these trend signals.
⚪ Impulse
Enable Impulse Signals to understand when the market is making a significant move, often leading to a pullback or pause. These Impulse Signals can indicate the very start of a trend or serve as the first sign of a reversal. Enable 'Significant Impulses' if you only want to display the most significant market impulses.
█ How is Arithmetic Candlesticks Calculated?
⚪ Candlesticks
These candlesticks combine advanced smoothing techniques with price pattern recognition, giving traders a clearer view of market dynamics.
Adaptive Smoothing: The core of this smoothing approach is its ability to adjust dynamically based on market conditions. It reduces lag while staying responsive to price changes. This adaptive nature allows the candlesticks to follow the price action smoothly, minimizing the influence of short-term fluctuations. As a result, the trend is depicted with greater accuracy, helping traders to stay in tune with the market’s true direction.
Refined Smoothing with Weighted Averages: Another key component of the smoothing process involves applying a refined technique that uses a bell-shaped curve to weight price data. This method reduces the impact of outlier movements, resulting in a smoother, more continuous curve that accurately represents the market's central trend. This ensures that the candlesticks reflect a more balanced view of price action, focusing on the significant movements while filtering out unnecessary noise.
⚪ Trend Coloring
The Trend Coloring feature offers a powerful visualization tool that helps traders quickly identify the prevailing market trend and its strength. By analyzing market structure and the velocity of price movements, this feature provides a clear, dynamic view of the long-term trend direction.
Market Structure Analysis: The Trend Coloring is rooted in a thorough analysis of market structure, focusing on key price levels over time. By evaluating these levels, the system determines whether the market is in an uptrend, downtrend, or ranging phase. This information is then used to color the chart according to the current trend direction, providing a visual cue that makes it easier to align your trades with the broader market movement.
Velocity of Price Movements: . In addition to identifying the trend direction, the system also calculates the velocity of price movements. This involves assessing how quickly or slowly prices are advancing in a particular direction, offering deeper insight into the trend's strength and momentum. Faster price movements suggest a stronger trend, while slower movements may indicate a weakening or consolidating market. This dynamic approach ensures that the Trend Coloring not only highlights the trend but also reflects its intensity and potential sustainability.
⚪ Buy and Sell signals
The Buy/Sell signals are generated using a sophisticated approach that tracks key price action levels to determine market direction and momentum. This method constantly evaluates the relationship between the current price and dynamically adjusting levels that reflect the underlying market conditions. By staying in tune with the flow of the market, this approach effectively captures the onset of new trends while reducing the lag typically associated with traditional indicators.
Dynamic Price Action Levels: The signals are based on critical price action levels that adapt in real-time to market movements. These levels serve as flexible thresholds that help identify potential buy or sell opportunities. When the price interacts with these levels, it triggers signals that indicate possible entry or exit points, aligning your trades with the prevailing market direction.
Price Patterns: The algorithm also recognizes and integrates specific price patterns that are often precursors to significant market moves. By identifying these patterns, the system can anticipate changes in market direction more accurately, enabling earlier and more precise signals. This helps in capturing trend reversals or continuations effectively.
Momentum-Driven Adjustments: The system's price action levels are not static; they adjust dynamically in response to strong price movements. This ensures that the signals are not only timely but also in sync with the underlying market momentum, making the system highly effective in volatile conditions where quick decision-making is crucial.
⚪ Trend Tracker
The Trend Tracker utilizes the core principles of Arithmetic Candlesticks, including their sophisticated smoothing techniques and pattern recognition capabilities. By leveraging these features, the Trend Tracker effectively filters out market noise, allowing it to present a smooth and accurate representation of the current trend. This makes it easier to identify whether the market is trending upwards, downwards, or entering a period of consolidation.
Adaptive to Market Conditions: The Trend Tracker is not static; it dynamically adjusts as market conditions change. Whether the market is experiencing high volatility or moving through a quieter phase, the Trend Tracker remains responsive, continuously updating to reflect the most recent price action. This ensures that traders are always working with the most relevant information, making it easier to stay in sync with the market's true direction.
⚪ Trend Sentiment
Trend Sentiment analyzes key price levels and market structure to determine whether the current market sentiment is bullish or bearish. By examining the direction and momentum of price movements, it provides a straightforward view of the market's overall trend direction.
⚪ Impulse
Impulse monitors the market for sudden shifts in momentum, recognizing when the price is making a strong move that could lead to a trend continuation or a reversal. The feature is tuned to distinguish between regular market fluctuations and significant impulses. It focuses on the most meaningful price movements, ensuring that the signals you receive are relevant and actionable.
█ Important Note
Caution! Arithmetic candlesticks do not always reflect the actual price. Arithmetic uses smoothing and noise filtering to capture trends; hence, it might deviate from the actual close.
It's important to understand that Arithmetic Candlesticks are intended to provide a clearer picture of trend direction rather than exact price levels. Therefore, they should not be used as a substitute for actual market prices, especially in scenarios like backtesting or precise trade execution where exact price data is crucial. Instead, use Arithmetic Candlesticks as a tool for understanding trends and overall market direction, while relying on actual price data for decisions that require precise price points.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Decline and Rise Detective [CHE]Decline and Rise Detective
TradingView Indicator (Best Timeframe: 1H or Higher)
1. Introduction
The "Decline and Rise Detective " is a TradingView indicator designed to identify the hours within a trading day that experience the largest price declines and rises. This indicator provides a visual representation of this data, offering traders valuable insights into the most frequent hours for significant price movements. It is most effective when used with a timeframe of 1 hour or greater.
2. Key Features of the Indicator
2.1. Display Options
Display Option: Users can choose between two display options:
Label: Displays the information as a text label directly on the chart.
Table: Displays the information in a table format in the top right corner of the chart.
2.2. Time Zone Settings
Time Zone: The indicator allows the user to manually set the time zone or use the exchange's time zone.
Time Zone Offset: Adjust the time zone via a UTC offset.
2.3. Day Change Detection
The indicator automatically detects the change between trading days to ensure data is correctly assigned.
3. Analysis of Price Declines and Rises
3.1. Calculation of Largest Declines and Rises
The indicator compares the high and low of each hour to determine the largest decline and rise within a trading day.
3.2. Frequency Counting
For each hour of the day, the number of times the largest declines and rises occur is counted to identify the hours with the most significant price movements.
3.3. Data Sorting
The hours are sorted by the number of occurrences of declines and rises to highlight the most frequent hours. This sorting was implemented using the MA Sorter function, inspired by Duyck's Array Sorter. Special thanks to Duyck for providing the Array Sorter on TradingView, which greatly influenced this feature
4. Interpretation and Trading Applications
4.1. Identifying High Volatility Periods
The hours identified by the indicator as having the most frequent and significant price movements are typically periods of high volatility. These periods are crucial for traders who seek to capitalize on market fluctuations.
4.2. Determining Optimal Trade Entries
Long Trades: The hours with the most significant price rises can be used to identify optimal times to enter long positions.
Short Trades: Conversely, the hours with the most significant price declines can indicate good opportunities for short trades.
4.3. Display of Top 5 Hours
The indicator shows the five hours with the most declines and rises.
Depending on the selected display option, this information is shown either as a text label or as a table in the chart.
4.4. Background Color
The background color of the chart changes at day change to clearly mark it.
5. Application of the Indicator
5.1. Trading Use
Traders can use the indicator to identify time windows with high volatility and adjust their trading strategies accordingly. This allows for more informed decisions on when to go long or short, depending on the market conditions during those hours.
5.2. Customization Options
Various input options allow the user to customize the indicator to fit personal needs and trading hours.
6. Summary
The "Decline and Rise Detective " indicator is a powerful tool for analyzing hourly price movements in the markets. By providing detailed information on the most frequent hours for significant price declines and rises, this indicator offers valuable insights into periods of high volatility. Traders can use this data to make more informed decisions on entering long or short trades. It is particularly effective when used with timeframes of 1 hour or greater.
Best regards and happy trading
Chervolino
1% Range Bars with Sequence TableOverall Logic :
The script is designed to help traders visualize and analyze price movements on the chart, where each 1% movement is highlighted with a corresponding symbol. Additionally, the table helps track and analyze the number and length of consecutive price movements in one direction, which can be useful for identifying trends and understanding market dynamics.
This script can be particularly useful for traders looking for recurring patterns in price movements and wanting to quickly identify significant changes on the chart.
Main elements of the script :
Price Percentage Change:
The script tracks the price movement by 1% from the last significant value (the value at which the last 1% change was recorded).
If the price rises by 1% or more, a green circle is displayed above the bar.
If the price drops by 1% or more, a red circle is displayed below the bar.
Sequence Counting:
The script counts the number of consecutive 1% moves upwards (green circles) and downwards (red circles).
Separate counters are maintained for upward and downward movements, increasing each time the respective movement occurs.
If an opposite movement interrupts the sequence, the counter for the opposite direction is reset.
Sequence Table:
A table displayed on the chart shows the number of sequences of 1% movements in one direction for lengths from 1 to 15 bars.
The table is updated in real-time and shows how many times sequences of a certain length occurred on the chart, where the price moved by 1% in one direction.
ICT 9:30am First FVGThis indicator is designed based on ICT (Inner Circle Trader)'s algorithmic price action theory, specifically targeting the first fair value gap (FVG) that forms immediately after the New York Stock Exchange opens at 9:30am. The FVG represents an imbalance in the price delivery where a significant price action gap occurs, which can play a crucial role in future price movements.
Features:
Identification of First FVG: Automatically identifies and plots the first fair value gap that forms post the 9:30am NY open.
Customizable Visualization: Choose between block or line styles for visual representation, with customizable colors and border styles.
Date Labeling: Optionally displays date labels for each identified gap to track patterns over time.
Imbalance Extension: Options to extend the imbalances to the current bar, helping to visualize their influence on ongoing price action.
Purpose:
The first fair value gap formed after the market opens is an important algorithmic price range in ICT's price action theory. This indicator simplifies the identification of these critical gaps and helps in understanding their impact on future price action.
Buy Signal Only with Multiple Indicators and Stop LossDescription: This custom Pine Script indicator is designed to help traders identify optimal buy signals using a combination of multiple technical indicators. It provides visual markers for entry points, take profit levels, and stop loss, offering a comprehensive tool for decision-making.
Features:
Buy Signal: Generates a buy signal based on a combination of EMA Cloud, SuperTrend, Zero Lag MACD, QQE, Volume Oscillator, and ATR Bands.
Entry Point: Displays a horizontal line at the entry price with a price label, extended to the right for visibility.
Take Profit Levels:
1% Take Profit: A dashed red line with a price label for the first take profit level.
2% Take Profit: A dashed orange line with a price label for the second take profit level.
Stop Loss: A dotted purple line with a price label to indicate the stop loss level set at 3%.
Parameters:
EMA Short Length: Adjust the period for the short EMA.
EMA Long Length: Adjust the period for the long EMA.
ATR Length: Set the length for ATR calculation.
Multiplier: Define the factor for the SuperTrend calculation.
MACD Length and Signal Length: Configure lengths for MACD and its signal line.
RSI Length and Smooth Length: Set parameters for RSI and its smoothing.
Volume Lengths: Customize lengths for the volume oscillator.
ATR Band Length and Multiplier: Set parameters for ATR Bands.
Delay Bars: Specify the number of bars to wait before showing another buy signal.
Take Profit Percentages: Adjust percentages for the 1% and 2% take profit levels.
Stop Loss Percentage: Set the stop loss percentage.
Line Extension Length: Define the number of bars to extend lines.
Right Offset Bars: Configure how many bars to offset labels and lines to the right.
Usage:
Identify Buy Opportunities: The indicator helps identify potential buy signals using multiple indicators.
Manage Trades: Visualize entry points, take profit targets, and stop loss levels to manage trades effectively.
Customization: Tailor the indicator to fit your trading strategy by adjusting the parameters.
Notes:
This is what we call version 1.
Ensure that the indicator's settings align with your trading strategy and market conditions.Use in conjunction with other analysis tools for a comprehensive trading approach.
Day, Week, or Hour Coloring
This is a simple Script that dynamically colors the chart bars based on the day of the week, week of the month, or hour of the day. Users can toggle between these three modes using the Color Mode input, allowing for flexible visual representation of time periods directly on the chart.
Key Features:
Color Modes:
Day Mode: Colors the bars according to the day of the week, with each day assigned a unique color.
Week Mode: Colors the bars based on the week of the month, providing a different color for each week.
Hour Mode: Colors the bars according to the hour of the day, with distinct colors assigned to each hour.
How It Works:
Day Mode:
The script assigns a unique color to each day of the week (e.g., Monday is red, Tuesday is green).
Week Mode:
The script calculates the week of the month by considering the first day of the month and adjusts the day count to determine the correct week.
Each week is assigned a specific color (e.g., Week 1 is red, Week 2 is green).
Hour Mode:
The script assigns a unique color to each hour of the day (e.g., 0:00 is blue, 1:00 is green).
Selected Color Application:
The script evaluates the selected Color Mode and applies the corresponding color to the bars on the chart using the barcolor() function.
This indicator is useful for traders who want to visually distinguish time periods on their charts, aiding in pattern recognition and time-based analysis.
Innocent Heikin Ashi Ethereum StrategyHello there, im back!
If you are familiar with my previous scripts, this one will seem like the future's nostalgia!
Functionality:
As you can see, all candles are randomly colored. This has no deeper meaning, it should remind you to switch to Heikin Ashi. The Strategy works on standard candle stick charts, but should be used with Heikin Ashi to see the actual results. (Regular OHLC calculations are included.)
Same as in my previous scripts we import our PVSRA Data from @TradersReality open source Indicator.
With this data and the help of moving averages, we have got an edge in the market.
Signal Logic:
When a "violently green" candle appears (high buy volume + tick speed) above the 50 EMA indicates a change in trend and sudden higher prices. Depending on OHLC of the candle itself and volume, Take Profit and Stop Loss is calculated. (The price margin is the only adjustable setting). Additionally, to make this script as simple and easily useable as possible, all other adjustable variables have been already set to the best suitable value and the chart was kept plain, except for the actual entries and exits.
Basic Settings and Adjustables:
Main Input 1: TP and SL combined price range. (Double, Triple R:R equally.)
Trade Inputs: All standard trade size and contract settings for testing available.
Special Settings:
Checkbox 1: Calculate Signal in Heikin Ashi chart, including regular candle OHLC („Open, High, Low, Close“)
Checkbox 2/3: Calculate by order fill or every tick.
Checkbox 4: Possible to fill orders on bar close.
Timeframe and practical usage:
Made for the 5 Minute to 1 hour timeframe.
Literally ONLY works on Ethereum and more or less on Bitcoin.
EVERY other asset has absolute 0% profitability.
Have fun and share with your friends!
Thanks for using!
Example Chart:
Prometheus Volatility EMAThe Prometheus Volatility EMA is an indicator that calculates an Exponential Moving Average with the historical volatility as how we decide how sensitive to make the indicator to the most recent data.
A traditional EMA is calculated like this:
EMA = alpha * source + (1 - alpha) * EMA , where alpha = 2 / (length + 1)
Sourced from TradingView’s ta.ema built in function.
We see that the alpha value is used to determine how sensitive the EMA will be to the most recent prices, and it is derived from how many bars back are used in the calculation.
Prometheus is using the annualized historical volatility, for a specified period as the “alpha” value. The reason for this is that on more volatile assets, the EMA will follow price more closely to give you a better idea of when price may change direction.
Historical Volatility calculation:
hv = ta.stdev(math.log(close / close ), lkb) * math.sqrt(252/5)
EMA calculation:
float hv_EMA = na
hv_EMA := na(hv_EMA ) ? ta.sma(close, lkb) : hv * close + (1 - hv) * hv_EMA
Let's explain some charts to better understand this tool!
We see on a 1 year NASDAQ:SHY chart, the moving average is far from the price. This makes sense as NASDAQ:SHY has a range of 2.85% from the low to the high for this period in the photo above. It is not very volatile.
In this chart of BITSTAMP:BTCUSD we see that the EMA follows price very closely, way closer than it does on $SHY. This is because BITSTAMP:BTCUSD is much more volatile. BITSTAMP:BTCUSD has a range of 196% from the low to the high in this photo. Way more than $SHY.
We see it change on the same asset here looking at $QQQ. In the small period with the drop we see the EMA follow more closely as volatility picks up, then it quickly allows price to get far as volatility leaves.
This is the perspective we aim to provide. We encourage traders to not follow indicators blindly. No indicator is 100% accurate. This one can give you a different perspective of price strength with volatility. We encourage any comments about desired updates or criticism!
Liquidity tool [Influxum]One of the most widespread concepts that can give you an edge when trading in the markets is liquidity. There are several ways to identify and plot liquidity. This indicator aims to show how liquidity can be plotted entirely objectively, thus laying the foundation for a consistent trading system.
Pivot
One of the ways to identify liquidity is using pivots. Pivots are candles that are locally the highest or the lowest. We identify them using strength, which is a number that determines how many candles to the left and right of the pivot candle are lower for a pivot high and higher for a pivot low. It is important to keep in mind that a pivot candle is only confirmed when the last candle to the right closes. If I have the pivot number set to 10, it means that a pivot high is a candle that has 10 lower candles on the left and 10 lower candles on the right. Only after the 10th candle to the right closes is the pivot candle confirmed as a pivot high. Within this indicator, the liquidity line is drawn at this moment.
Tip for traders:
If you work with liquidity from both lower and higher timeframes, try adding two Liquidity Tool indicators to your chart: set a lower pivot number, for example, 5 for one, and a higher pivot number, for example, 20 for the other. At the same time, adjust the line width for liquidity with a higher pivot number to a higher value. This way, you achieve a combination of liquidity from significant higher timeframe structures and lower timeframe structures.
Gann Swing
The Gann swing is another objective way to mark liquidity in the market. Unlike pivot liquidity, which is based on the highest highs or lowest lows of candles, the Gann swing is based on the highest or lowest closes. We then mark liquidity when the current candle closes above the highest close of the last few candles or below the lowest close of the last few candles. While a pivot high might only show a local extreme in price development, the Gann swing deals with the actual closing of the price. Liquidity points determined by the Gann swing may thus be more indicative of where the price actually wants to go, not just where it was at a particular moment before sharply rebounding (as with pivot liquidity).
Percent Change
One of the most objective ways to identify liquidity is the percentage change in price. We plot liquidity only in places where there has been a sufficiently large swing/significant price movement. This can be particularly relevant for filtering out moments when the price is moving within a narrow range. In such a situation, many pivot highs and lows or Gann swings can occur, which may be only a few pips or fractions of a percent apart. If you set it so that you want liquidity to be plotted only on a swing of 0.1% (for forex, where this is a sufficiently large movement), you can easily filter out moments when the price was moving in a narrow range.
Liquidity Session
For Pivot, Gann, and Percentage liquidity, you have the option to set a trading session. This determines the time period for which you want liquidity to be plotted. You might want to see only the liquidity from the Asian session, for example. Check the checkbox with BG. This will display the background for the currently selected session. You can then check if you are working only with the liquidity of your intended session.
Note:
Sometimes you may notice that liquidity lines start even outside the selected session. This is not a mistake. As mentioned above with pivot liquidity, if the pivot number (strength) is 10, we wait for the tenth candle to close before liquidity is confirmed. The pivot candle itself is thus located 10 candles back, and that is where the liquidity line also begins. However, the crucial moment for this indicator is when the liquidity point is confirmed.
Visual Settings
To customize the indicator to your preferences as much as possible, you have the option to set the style of the liquidity line, its color, and its thickness. The analyses you share will then match your exact vision.
Delete Grabbed Liquidity
Check this option when you want to see only uncrossed liquidity on the charts, meaning liquidity lines that have not yet been crossed by the price.
Display Liquidity Grab Point
When you check this option, it highlights the points on the candles where liquidity was grabbed.
Liquidity Duration
Some strategies require that only internal liquidity be taken, meaning liquidity that was created recently. To accommodate this, we have embedded several options in the indicator to work with the validity duration of liquidity.
Delete Liquidity End of Day
This option deletes the liquidity line at the end of the calendar day. This way, you can display only intraday liquidity.
Tip for traders: If you check both "delete liquidity end of day" and "delete grabbed liquidity," only the liquidity of the current day will be displayed on the chart.
Delete Liquidity End of Next Day
This option works similarly to the above. By deleting liquidity only at the end of the next day, you can work with yesterday's liquidity. Many strategies use the liquidity of the previous day (or the high and low of the previous day), allowing you to focus exclusively on yesterday's and today's liquidity.
Liquidity Duration in Bars
The final option allows you to delete liquidity after a certain time has elapsed. For the purposes of the indicator, we have set the time in terms of the number of bars. So, if you are on a 5-minute timeframe and want liquidity to be deleted after an hour, set the liquidity duration to 12 bars (12 x 5 minutes is 60 minutes).
Volume Profile Heatmap [UAlgo]The "Volume Profile Heatmap " indicator is a tool designed to visualize the distribution of trading volume across different price levels over a specified period. This heatmap-style indicator helps traders identify significant price levels where a high volume of trading activity has occurred, which can be crucial for making informed trading decisions. The indicator divides the price range into multiple levels and calculates the volume of trades occurring at each level, presenting this data in a visually intuitive manner using a gradient of colors.
By analyzing the volume profile, traders can gain insights into areas of support and resistance, as well as the Point of Control (POC)—the price level with the highest traded volume. This information is valuable in assessing market sentiment, potential reversal points, and key areas of interest where price action might consolidate or react.
🔶 Key Features
Customizable Analysis Period: The indicator allows users to specify the analysis period, defining the historical range over which the volume profile is calculated.
Adjustable Number of Levels: Users can set the number of price levels to divide the price range, offering flexibility in the granularity of the volume analysis.
Color-Coded Heatmap: The indicator uses a gradient color scheme to visually represent volume intensity at each price level. Higher volume areas are shaded differently than lower volume areas, making it easy to spot significant price levels.
Opacity Control: Users can adjust the opacity of the volume boxes, enabling a clearer or more subtle visualization according to their preferences.
Point of Control (POC) Display: The indicator highlights the Point of Control, the price level with the highest traded volume, with a distinct line on the chart, allowing traders to easily identify this critical level.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Inside Candle - Multi TimeframesIndicator looks for inside candle on 3 timeframes. Chart's default timeframe and 2 higher timeframes to spot Inside candle on any of these timeframes.
Main purpose was to look at multiple inside candle at multiple timeframes to identify consolidation within consolidation and implement intraday, hence for 15min chart timeframe.
However, code works for all timeframes from 5 min to quarterly and higher timeframes will be picked automatically.
Reference and credits
This indicator is inspired by and uses code from:
- Author Name - // © Fab_Coin_
-
Candle Based Trend Reversal (Multi-Timeframe)Candle-Based Trend Reversal (Multi-Timeframe)
Description:
This indicator is designed to help traders identify potential trend reversals by analyzing candle patterns across multiple timeframes. The script uses two sets of conditions to determine bullish and bearish trends:
1. Short-Term Lookback: A shorter lookback period is used to detect initial signs of a trend reversal. The indicator checks for a specific number of bullish or bearish candles within this period. The lookback period for this set can be adjusted according to your preferences.
2. Long-Term Lookback: A longer lookback period is used to confirm the strength of the trend reversal. This additional check ensures that the trend change is significant and not just a short-term fluctuation. The lookback period for this set is also customizable to fit different trading strategies.
When both conditions are met, the script will color the candles accordingly and display a label on the chart to indicate a potential trend reversal. The colors and symbols for bullish and bearish signals are fully customizable in the settings.
How It Works:
* The script examines the closing prices of candles within the specified lookback periods.
* If the conditions for both lookback periods are met, it triggers a signal by changing the color of the candles and displaying a label.
* Once a signal is triggered, the trend (bullish or bearish) will remain active until a new opposing signal is generated.
* The lookback periods for both the short-term and long-term conditions can be modified, allowing you to tailor the indicator to different market conditions and timeframes.
* This helps traders visually identify when a trend reversal might be occurring based on recent price action.
Usage:
* This indicator is particularly effective on monthly, weekly, daily, and hourly charts.
* Simply switch the timeframe, and the indicator will do the rest.
* Look for colored candles and labels to spot potential reversal points.
* The last signal (bullish or bearish) will stay in effect until a contrary signal is given, allowing you to maintain a clear view of the prevailing trend.
* Customize the lookback periods to match your trading style and market conditions.
* This indicator is most effective when used in conjunction with other technical analysis tools.
Control Candle Range [UkutaLabs]Control Candle Range
█ OVERVIEW
The Control Candle Range is a powerful trading tool that automatically identifies control candles in real time. The versatile ranges drawn by this indicator can be used in a variety of trading strategies because they can be used as ranges as well as areas of support and resistance.
The purpose of this script is to simplify the trading experience of users by automatically identifying and displaying Control Candle Ranges.
█ USAGE
A Control Candle is a candle that is followed by two consecutive inside candles. When this pattern is detected, this indicator will automatically identify it and draw a range in real time. This range will continue to extend as long as candles continue to close within the range of the Control Candle. It is important to note that a Control Candle is still valid if the price action exits its range as long as it closes within its range.
This script also supports higher time frame mapping, allowing you to draw Control Candle Ranges from higher timeframes onto lower timeframe charts. This is a powerful feature that allows users to see multiple timeframes worth of information at a glance on one single chart.
Each Control Candle Range will also be displayed with a label to allow users to understand at a glance which timeframe the range is being drawn from. These labels can be turned off in the settings.
The user also has the ability to adjust the color of each timeframe’s ranges.
█ SETTINGS
Configuration
• Show Labels: Determines whether or not identifying labels are displayed on ranges.
• Label Size: Determines the size of labels.
• Text Alignment: Determines where labels are drawn on ranges.
• Max Display: Determines the maximum number of ranges that can be drawn from each timeframe.
Current Timeframe
• Display (On/Off): Determines whether or not ranges from the current timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the current timeframe.
5 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 5 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 5 minute timeframe.
15 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 15 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 15 minute timeframe.
30 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 30 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 30 minute timeframe.
60 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 60 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 60 minute timeframe.
240 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 240 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 240 minute timeframe.
Daily (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the daily timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the daily timeframe.
Uptrend & SMAThe "Uptrend and Close to SMA" indicator is designed to help traders identify when the price of a stock is in an uptrend and is trading near its Simple Moving Average (SMA) over a user-defined period. The indicator uses multi-timeframe analysis, allowing the user to select different timeframes for calculating the SMA.
Key Features:
SMA Calculation: The indicator calculates the SMA for a selected timeframe (e.g., daily, weekly, monthly) based on a user-specified period (default is 150 periods).
Multi-Timeframe Options: Users can choose between multiple timeframes (1 day, 1 week, 1 month, 3 months, 6 months, 12 months) to calculate the SMA, providing flexibility in trend analysis.
Proximity Threshold: The indicator includes a proximity threshold in percentage terms, allowing users to define how close the real-time price needs to be to the SMA to trigger a visual alert.
Uptrend Identification: The indicator identifies an uptrend when the real-time price is above the selected SMA.
Visual Alerts: If the price is above the SMA and within the defined proximity threshold, the background color of the chart will change to green, signaling that the stock is in an uptrend and close to the SMA.
Alert Condition: The indicator includes an alert condition that triggers when the price is in an uptrend and within the proximity threshold, allowing traders to be notified when their criteria are met.
Percentage Difference Display: A table displays the percentage difference between the real-time price and the SMA, providing a quick reference to see how far the price is from the SMA in percentage terms.
This indicator is especially useful for traders looking for potential buying opportunities when a stock is trending upwards but still near its moving average, indicating potential continuation or momentum.
Daily High and Low Levels IndicatorThis Pine Script indicator displays horizontal lines representing the high and low levels of the previous trading day, extending them to the right side of the chart for better visibility. It updates automatically at the start of each new trading day.
Features:
Daily High and Low Levels: Marks the high and low levels of the previous day with horizontal lines.
Customization:
Adjust the color, style, and thickness of the lines to fit your preferences.
High Level Line Color: Customize to your preferred color (default: gray).
Low Level Line Color: Customize to your preferred color (default: white).
Line Style Options: Choose between solid, dashed, or dotted lines.
Line Thickness: Adjust the width of the lines.
Extended Lines: Extend the lines to the right side of the chart for enhanced visibility.
Labeling: Shows clear labels "Previous High" and "Previous Low" next to the lines for easy reference.
Usage :
Add this indicator to your chart to visualize the previous day's high and low levels.
Customize the appearance of the lines and labels using the input options.
The indicator will automatically update these levels at the beginning of each trading day.
This indicator is designed to help traders quickly identify significant price levels from the previous day and make informed trading decisions.
License: This script is provided under the Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) License. For more information, visit Creative Commons License.
Arjo FVG Filtering With Alerts [neo.|]Fair Value Gaps (Also known as FVGs or Imbalances) can be simply described as a three candle pattern, where the second candle's body isn't completely covered by the wicks or body of the second and third candle. These areas represent movements in the market where either buyers or sellers were not able to get involved due to price in the form of wicks not revisiting those levels, and instead moving away from them.
As a result, they can be seen as potential areas of continuation given that price may want to continue in it's direction after it revisits them and offers Fair Value, since previously it made sharp moves away from those areas.
However what is important to note, and what FVG Filtering aims to address, is that there are three notable types of FVGs as described by Arjo, which are Perfect FVGs denoted as FVGp on the indicator and chart below, Expansion (FVGe), and Reversal (FVGr). As the names imply, they each serve different purposes with the FVGp being the likeliest to hold on mitigation, expansion meaning price is likely to not retrace into the FVG and reversal being the least likely for the FVG to hold.
The indicator is the first that automatically determines which one of the three underlying FVG types any particular FVG is, that way you can quickly make informed decisions based on the type of FVG you see appear on the chart.
As you may notice, the type depends primarily on the third candle, which demonstrates the true strength of any particular FVG, and is how the filtering occurs on this indicator, which compares the sizes of the second and third candle's bodies, in order to classify the FVG candle sequence as one of the three aforementioned types.
Color Options:
FVG Colors: Change the color of any bullish or bearish FVG type to easily distinguish between them.
Mitigated FVG Color: Apply colors to mitigated FVGs in order to avoid using ones that are no longer valid.
Text Color: Change the color of the text within the FVG to your liking.
Further styling options:
How many FVGs you want to be displayed: Changes the amount of FVGs displayed on your chart by limiting each type of FVG to the number you select.
How far you want the FVGs to extend: Modify the amount of bars forward that the FVG stretches out after it's inception.
Table options:
Show table: Display a table that will give you insights on how many FVGs were created of each type and what % they represent of the total.
Table text color: Modify the color of the text within the table.
Table border color: Modify the color of the border of the table.
Alerts:
Freely set alerts for any type of FVG you would like to see.
Next Candle Price Prediction FAJnext candle price prediction
Previous Day Data:
prevHigh, prevLow, and prevClose are calculated to capture the high, low, and close of the previous day. This is used to understand the previous day's price range and sentiment.
ATR Calculation:
The Average True Range (ATR) is a measure of volatility. We use it to estimate how much the price might move up or down from the previous close.
Predicted High and Low:
Using the previous close plus and minus the ATR value gives a range where the price might reach.
Predicted Target Price:
The script calculates a simple midpoint of the previous day's range to predict the target price for the next candle. This midpoint serves as a basic prediction, assuming price might oscillate within the previous day's range.
Plotting:
The script plots the predicted high, low, and target price as well as the previous day's high, low, and close for context.
Prometheus NFP LevelsThis script is a tool to mark the high and low of the most recent first Friday of the month. The significance of that day is that’s when the Bureau of Labor Statistics reports the Non Farm Payrolls (NFP) for the month prior. This number includes how many jobs were added that month, the unemployment rate, and labor force participation rate to name a few.
It is always on the first Friday of the new month, and markets tend to care about it quite a bit.
This script also allows a user to get the high and low of a specific date, the default date is the last Federal Open Market Committee day (FOMC). On this day the Federal Reserve announces the Federal Funds Interest Rate, as well as giving guidance on things like bond buying programs, to name a few.
Markets care about these days a lot, that is why we decided to make this script. Prometheus plans to update the default custom date with the most recent FOMC date as they come around.
Here we see the FOMC level high in blue, and low in yellow as well as the NFP high and low in green and red. The white boxes highlight areas where the market reacted to the levels.
On this chart we see a different asset still has interactions with the levels.
We chose to have the user input the date the way we did, not as a timestamp, for this code:
ts_start = timestamp(event_year, event_month, event_day, 9, 30)
ts_end = timestamp(event_year, event_month, event_day+1, 0, 0)
Adding one to the inputted date gives us a simple way to define the time range.
Prometheus encourages users to use indicators as tools along with their own discretion. No indicator is 100% accurate. We encourage comments about requested features and criticism.
Smoothed SuperTrend with VWAP Confirmation [CHE] Smoothed SuperTrend with Automated Optimization and VWAP Confirmation
Overview
The "Smoothed SuperTrend with VWAP Confirmation" is an advanced technical analysis indicator designed for precise trend identification and trading signal generation. This script integrates a smoothed version of the popular SuperTrend indicator with an additional layer of confirmation using the Volume-Weighted Average Price (VWAP). The combination of these two elements offers traders a powerful tool for identifying optimal entry and exit points in the market.
Key Features
1. Smoothed SuperTrend
- Super Smoother Algorithm: The SuperTrend in this script is not just a regular one; it is enhanced by the Super Smoother filter, which reduces market noise and provides more reliable trend signals.
- Customizable Parameters: Traders can adjust three different sets of SuperTrend parameters (factor and ATR length), allowing them to tailor the indicator to their specific trading strategies.
- Automatic Optimization: The script automatically evaluates the performance of each SuperTrend parameter set and selects the one with the best cumulative performance. This selection process can be set to pick either the best or the worst performing parameter set, depending on the trader's preference.
2. VWAP Confirmation
- Precise Trend Confirmation: Once the best-performing SuperTrend is identified, the script further refines the signals by using VWAP as a confirmation tool. VWAP is a highly respected indicator in the trading community, often used to assess the true average price of an asset.
- Long and Short Signal Generation: The script generates Long and Short signals only when the price action is confirmed by both the SuperTrend and VWAP. For a Long signal, the price must be above the VWAP, and for a Short signal, it must be below the VWAP. This dual confirmation ensures higher accuracy and reduces the likelihood of false signals.
3. Visual and Informative Labels
- Signal Labels: Upon confirmation of a trend reversal by both the SuperTrend and VWAP, the script plots clear labels on the chart, indicating confirmed Long or Short signals. These labels are customizable in terms of color, text, and size, ensuring they fit seamlessly into any chart setup.
- Best Parameters Display: At the close of the most recent bar, the script displays a label that provides detailed information about the best-performing SuperTrend parameters and their cumulative performance. This feature keeps traders informed about which settings are currently most effective.
Input Customization Options
1. Super Smoother Length
- Traders can define the length of the Super Smoother filter, which is used to smooth both price data and ATR (Average True Range) values. This input allows traders to control the sensitivity of the indicator, with shorter lengths providing faster responses and longer lengths offering smoother trends.
2. SuperTrend Parameters
- Factor: For each of the three SuperTrends, traders can set a unique factor that determines the distance of the SuperTrend bands from the average price. A higher factor results in wider bands and fewer signals, while a lower factor results in narrower bands and more signals.
- ATR Length: Traders can also specify the length of the ATR used in each SuperTrend calculation. A longer ATR period captures broader market volatility, while a shorter period focuses on more immediate price movements.
3. Label Settings
- Label Colors: The script allows full customization of label colors for Long and Short signals, ensuring that they match the trader’s chart aesthetics.
- Label Text Colors and Sizes: Traders can adjust the text color and size of the labels for Long, Short, and information labels, allowing them to prioritize visibility and readability on their charts.
4. Performance Selection Mode
- Best or Worst Performer: This input allows traders to select whether the script should optimize for the best or worst performing SuperTrend parameter set. This flexibility is useful in different market conditions, where a trader might want to analyze either the strongest trend or focus on a contrarian strategy.
5. VWAP Calculation
- The script automatically recalculates the VWAP based on trend changes, ensuring that the confirmation signals are as accurate and relevant as possible to the current market context.
Important Note
This script is designed to provide more accurate trend signals and confirmations, but like all technical indicators, it should not be used in isolation. It is recommended to use this tool as part of a broader trading strategy, including proper risk management and consideration of fundamental market conditions.
Conclusion
The "Smoothed SuperTrend with VWAP Confirmation" script is an innovative trading tool that combines the strengths of the SuperTrend and VWAP indicators. By integrating smoothing techniques and automatic parameter optimization, this indicator provides traders with more accurate and reliable trend signals. The added confirmation by VWAP further enhances the precision of the entry and exit points, making it an excellent choice for traders looking to improve their technical analysis and trading outcomes. This tool is especially valuable for those who prefer customizable inputs and a systematic approach to trading, ensuring that the indicator adapts to various market conditions and individual trading styles.
Best regards
Chervolino
Price & Volume Breakout Fibonacci Probability [TradeDots]📝 OVERVIEW
The "Price & Volume Breakout Fibonacci Probability" indicator is designed to detect the probability of the maximum run-up and drawdown of each breakout trade on an asset, assisting traders in optimizing their take profit and stop loss strategies.
🧮 CALCULATIONS
The algorithm detects price and volume breakouts to activate the Fibonacci levels displayed on the chart. It calculates these levels using the period pivot high and low, with the close price of the breakout bar as the reference price.
The indicator then forward-tests within an user-selected number of bars, detecting the maximum run-up and drawdown during that period. Consequently, it calculates the probability of the price hitting either side of the Fibonacci levels, showing the likelihood of reaching take profit and stop loss targets for each breakout trade.
📊 EXAMPLE
The above example shows two breakout trades, circled within the yellow rectangle zone.
The first trade has a maximum run-up above the +0.382 Fibonacci level zone and a maximum drawdown below the -0.618 Fibonacci level zone.
When the price reaches the maximum run-up, it only has a ~45% probability of moving further upward into the last two zones (25% + 19.44%). This indicates that setting a take profit at a higher level may have less than a 50% chance of success.
Conversely, when the price reaches its maximum drawdown, there is only an ~8% probability of moving further downward into the last drawdown zone. This could indicate a potential reversal.
⚙️ SETTINGS
Breakout Condition: Determines the type of breakout condition to track: "Price", "Volume", "Price & Volume".
Backtest Period: The maximum run-up and drawdown are detected within this bar period.
Price Breakout Period: Specifies the number of bars the price needs to break out from.
Volume Breakout Period: Specifies the number of bars the volume needs to break out from.
Trendline Confirmation: Confirms that the close price needs to be above the trendline.
📈 HOW TO USE
By understanding the probabilities of price movements to both the upside and downside, traders can set take profit and stop loss targets with greater accuracy.
For instance, placing a stop loss order below the zone with the highest probability minimizes the chances of being stopped out of a profitable trade. Conversely, setting a take profit target at the zone with the highest probability increases the win rate.
Additionally, if the price breaches multiple Fibonacci levels during the breakout period, it may indicate an abnormal state, signaling a potential reversal or pullback. This can help traders exit trades in a timely manner.
Traders can adjust their take profit and stop loss levels based on their individual risk tolerance.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Morning & Evening Star Pro (Candle Pattern)Hello Traders!
The Morning & Evening Star Pro indicator often catches the absolute top or bottom of a move and is a reliable reversal indicator. It also provides excellent entries in a strong trending market. For example, in an uptrend you can use a morning star as a pullback entry signal.
The indicator is an advanced tool for identifying powerful reversal patterns in the market. It combines traditional candlestick analysis with modern technical indicators to provide traders with high-probability entry and exit signals.
Key features:
Accurate pattern detection:
Utilizes sophisticated algorithms to identify genuine Morning Star and Evening Star patterns, filtering out false signals.
Trend filter:
Incorporates a customizable Simple Moving Average (SMA) to align signals with the overall market trend, enhancing trade quality.
Volatility awareness:
Integrates Average True Range (ATR) calculations to ensure detected patterns are significant relative to recent price action.
Visual clarity:
Highlights Morning Star and Evening Star patterns with customizable colors and shapes, making them easy to spot on the chart.
Flexible customization:
Offers a wide range of user inputs to tailor the indicator to various trading styles and preferences.
Filtered signal display:
Option to show filtered-out signals, providing insight into the indicator's decision-making process.
Morning Star
Is a bearish reversal (or continuation) pattern consisting of three candles:
A large bearish candle
A small-bodied candle like a Doji or Pin bar
A bullish candle
Evening Star
Is a bullish reversal (or continuation) pattern consisting of three candles:
A large bullish candle
A small-bodied candle like a Doji or Pin bar
A bearish candle
Key differences in this implementation
The middle candle can be either a Doji or a Pin bar, expanding the traditional definition.
The second candle can be a Pin bar, and the third candle can be an outside bar reversal, allowing for more flexibility in pattern recognition.
What makes this indicator unique
Comprehensive pattern analysis:
Goes beyond simple price action by considering multiple factors such as candle body ratios, wick lengths, and relative positions to previous candles.
Adaptive to market conditions:
Uses dynamic thresholds based on recent volatility (ATR) to adjust pattern detection criteria.
Educational value:
The option to display filtered signals helps traders understand why some patterns are rejected, aiding in skill development.
How to Trade with this Indicator:
This indicator often catches the absolute top or bottom of a move and is a reliable reversal indicator. It also provides excellent entries in a trending market. For example, in a strong uptrend you can use morning star signals to enter in a pullback.
Bullish Opportunities:
Look for Morning Star patterns (aqua-colored candles and labels) as potential buy signals.
Bearish Opportunities:
Watch for Evening Star patterns (orange-colored candles and labels) as potential sell signals.
Entry: At next bar open (after the aqua-colored candle for bullish or orange-colored candle for bearish completes)
Stop loss: 2 ticks below/above the pattern's low/high.
Stop loss alternative: If the colored candle is a very strong candle (e.g. for morning star a candle with almost no down wick and a close near the top) the stop goes 2 ticks below/above the colored candle.
Take profit: 3R or use a trailing stop.
Trend Alignment:
For conservative trading, only take trades in the direction of the overall trend as indicated by the SMA.
Note: if you want to see candle coloring of the morning and evening star, you must put the indicator to the top of the object tree.
