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Candlestick analysis

Equilibrium Candles + Pattern [Honestcowboy]The Equilibrium Candles is a very simple trend continuation or reversal strategy depending on your settings. How an Equilibrium Candle is created: We calculate the equilibrium by measuring the mid point between highest and lowest point over X amount of bars back. This now is the opening price for each bar and will be considered a green bar if price closes above equilibrium. Bars get shaded by checking if regular candle close is higher than open etc. So you still see what the normal candles are doing. Why are they useful? The equilibrium is calculated the same as Baseline in Ichimoku Cloud. Which provides a point where price is very likely to retrace to. This script visualises the distance between close and equilibrium using candles. To provide a clear visual of how price relates to this equilibrium point. This also makes it more straightforward to develop strategies based on this simple concept and makes the trader purely focus on this relationship and not think of any Ichimoku Cloud theories. Script uses a very simple pattern to enter trades: It will count how many candles have been one directional (above or below equilibrium) Based on user input after X candles (7 by default) script shows we are in a trend (bg colors) On the first pullback (candle closes on other side of equilibrium) it will look to enter a trade. Places a stop order at the high of the candle if bullish trend or reverse if bearish trend. If based on user input after X opposite candles (2 by default) order is not filled will cancel it and look for a new trend. Use Reverse Logic: There is a use reverse logic in the settings which on default is turned on. It will turn long orders into short orders making the stop orders become limit orders. It will use the normal long SL as target for the short. And TP as stop for the short. This to provide a means to reverse equity curve in case your pair is mean reverting by nature instead of trending. ATR Calculation: Averaged ATR, which is using ta.percentile_nearest_rank of 60% of a normal ATR (14 period) over the last 200 bars. This in simple words finds a value slightly above the mean ATR value over that period. Big Candle Exit Logic: Using Averaged ATR the script will check if a candle closes X times that ATR from the equilibrium point. This is then considered an overextension and all trades are closed. This is also based on user input. Simple trade management logic: Checks if the user has selected to use TP and SL, or/and big candle exit. Places a TP and SL based on averaged ATR at a multiplier based on user Input. Closes trade if there is a Big Candle Exit or an opposite direction signal from indicator. Script can be fully automated to MT5 There are risk settings in % and symbol settings provided at the bottom of the indicator. The script will send alert to MT5 broker trying to mimic the execution that happens on tradingview. There are always delays when using a bridge to MT5 broker and there could be errors so be mindful of that. This script sends alerts in format so they can be read by tradingview.to which is a bridge between the platforms. Use the all alert function calls feature when setting up alerts and make sure you provide the right webhook if you want to use this approach. There is also a simple buy and sell alert feature if you don't want to fully automate but still get alerts. These are available in the dropdown when creating an alert. Almost every setting in this indicator has a tooltip added to it. So if any setting is not clear hover over the (?) icon on the right of the setting. The backtest uses a 4% exposure per trade and a 10 point slippage. I did not include a commission cause I'm not personaly aware what the commissions are on most forex brokers. I'm only aware of minimal slippage to use in a backtest. Trading conditions vary per broker you use so always pay close attention to trading costs on your own broker. Use a full automation at your own risk and discretion and do proper backtesting.
Pine Script™ strategy
by Honestcowboy
Mini ChartDescription: The indicator displays a mini candlestick chart as a table. You can add up to 3 such charts and use different assets / timeframes in any of them. Each chart can have a max of 15-20 candles (depending on the settings). You can customise the colors and styles, including price scale, grid and a volume chart. If you hover on any displayed candle, you will see price and volume info for that candle. The candles can also be highlighted based on price or volume. The indicator can display data from both higher and lower timeframes, but is not updating very quickly if you display too many candles. Inputs: Each mini chart has inputs for: - Number of candles - Timeframe - Asset - Table position - Table height - Grid resolution - Left and Right price scales - Candle highlighting (which can be based on Min/Max price, Min/Max Volume, Rising/Falling Volume) - And a checkbox for displaying volume chart below the candles Below those inputs you have inputs for customising all the mini charts with the following: - Header and Footer info - Colors and styles of the charts, candles and price scales - Sizing and spacing of the candles - Height of the volume chart and padding of the price chart Note: The indicator utilises "table" objects. The limit of table cells for a chart is 10,000. Thus, the more candles you display in the mini charts, the more laggy the indicator will feel, and at some point you may surpass the 10,000 cells limit, at which point you're going to get an error. The indicator might not update very quickly, especially if you're using data from lower timeframes.
Pine Script™ indicator
by sabricat
Immediate Rebalance ICT [TradingFinder] No Imbalances - MTF Gaps🔵 Introduction The concept of "Immediate Rebalance" in technical analysis is a powerful and advanced strategy within the ICT (Inner Circle Trader) framework, widely used to identify key market levels. Unlike the "Fair Value Gap," which leaves a price gap requiring a retracement for a fill, an Immediate Rebalance fills the gap immediately, representing an instant balance that strengthens the prevailing market trend. This structure allows traders to quickly spot critical price zones, capitalizing on strong trend continuations without the need for price retracement. The "Immediate Rebalance ICT" indicator leverages this concept, providing traders with automated identification of critical supply and demand zones, order blocks, liquidity voids, and key buy-side and sell-side liquidity levels. Through features like crucial liquidity points and immediate rebalancing areas, this tool enables traders to perform precise real-time market analysis and seize profitable opportunities. 🔵 How to Use The Immediate Rebalance indicator assists traders in identifying reliable trading signals by detecting and analyzing Immediate Rebalance zones. By focusing on supply and demand areas, the indicator pinpoints optimal entry and exit positions. Here’s how to use the indicator in both bearish (Supply Immediate Rebalance) and bullish (Demand Immediate Rebalance) structures : 🟣 Bullish Structure (Demand Immediate Rebalance) In a bullish scenario, the indicator detects a Demand Immediate Rebalance formed by two consecutive bullish candles with overlapping wicks. This structure signifies an immediate demand zone, where price instantly balances within the zone, reducing the likelihood of a revisit and indicating potential upside momentum. Zone Identification : Look for two consecutive bullish candles with overlapping wicks, forming a demand zone. This structure, due to its rapid balance, usually does not require a revisit and supports further upward movement. Entry and Exit Levels : If price revisits this zone, percentage markers, particularly 50% and 75%, act as supportive levels, creating ideal entry points for long positions. Example : In the second image, an example of a Demand Immediate Rebalance is shown, where overlapping bullish candle shadows indicate immediate balance, supporting the continuation of the bullish trend. 🟣 Bearish Structure (Supply Immediate Rebalance) In a bearish setup, the indicator identifies a Supply Immediate Rebalance when two consecutive bearish candles with overlapping wicks appear. This formation signals an immediate supply zone, suggesting a high probability of trend continuation to the downside, with minimal expectation for price to retrace back to this area. Zone Identificatio n: Look for two consecutive bearish candles with overlapping shadows. This structure forms a supply area where price is expected to continue its downtrend without revisiting the zone. Entry and Exit Level s: Should price revisit this zone, percentage-based levels (e.g., 50% and 75%) serve as potential resistance points, optimizing entry for short positions, especially if the downtrend is expected to persist. Example : The attached chart illustrates a Supply Immediate Rebalance, where overlapping candle shadows define this area, reassuring traders of a continued downward trend with a low likelihood of price returning to this zone. 🔵 Settings ImmR Filter : This filter allows users to adjust the detection of Immediate Rebalance zones in four modes, from "Very Aggressive" to "Very Defensive," based on zone width. The chosen mode controls the sensitivity of Immediate Rebalance detection, allowing users to fine-tune the indicator to their trading style. Multi Time Frame : Enabling this option allows users to set the indicator to a specific timeframe (1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, daily, weekly, or monthly), broadening the perspective for identifying Immediate Rebalance zones across multiple timeframes. 🔵 Conclusion The Immediate Rebalance indicator, based on rapid balancing zones within supply and demand areas, serves as a powerful tool for market analysis and improving trade decision-making. By accurately identifying zones where price achieves instant balance without gaps, the indicator highlights areas likely to support strong trend continuations, exempt from common retracements. The indicator’s use of percentage levels enables traders to pinpoint optimal entry and exit points more effectively, with levels like 50% and 75% acting as support within demand zones and resistance within supply zones. This empowers traders to ride strong trends without the worry of abrupt reversals. Overall, the Immediate Rebalance is a reliable tool for both professional and beginner traders seeking precise methods to recognize supply and demand zones, capitalizing on consistent trends. By choosing appropriate settings and focusing on the zones highlighted by this indicator, traders can enter trades with greater confidence and improve their risk management.
Pine Script™ indicator
by TFlab
Momentum Entry & Trend Strategy M5Momentum Entry & Trend Strategy M5 Description: The Momentum Entry & Trend Strategy M5 is an indicator script designed to assist traders in determining optimal buy and sell moments based on momentum and trend analysis. This script operates using two different momentum levels—Momentum Length for Entry (5) and Momentum Length for Trend (10)—along with the HMA (Hull Moving Average) indicator for trend confirmation. Key Features: Momentum Entry: Calculates momentum using the difference between the current price and the price from previous periods to determine the strength and direction of price movements. Trend Identification: Utilizes two momentum levels (5 and 10) to identify bullish and bearish trend conditions. HMA for Trend Confirmation: The HMA indicator is used to provide trend confirmation signals. When HMA indicates bullish, a buy signal is displayed; conversely, a bearish HMA results in a sell signal. Signal Display: Displays buy (BUY) and sell (SELL) signals on the chart when the conditions for market entry are met, providing clear visualization for traders. Background Color: Offers a green background for uptrends and a red background for downtrends, allowing traders to easily identify the overall market condition. ATR (Average True Range): Calculates and plots a smoothed ATR to help traders measure market volatility. Settings: Momentum Length for Entry: 5 (to determine entry signals) Momentum Length for Trend: 10 (to determine trend conditions) HMA Length: 300 (period length for HMA to confirm trends) ATR Length: 14 (period length for ATR to measure volatility) Benefits: This script is designed to provide visual and data-driven guidance for better trading decision-making. By combining momentum and trend analysis, traders can enhance the accuracy of their signals and reduce the risk of errors when identifying entry and exit points in the market. Note: This script is intended for use on the M5 time frame but can be adjusted for other time frames as needed. It is always recommended to conduct thorough testing before applying trading strategies on a live account.
Pine Script™ indicator
by decrypt017
Presidential Election Day Projection This indicator analyzes historical price movements during US Presidential elections from 1972-2020. It provides projected price levels based on normalized percentage moves from the daily open, helping traders understand potential price action on the election day. Features Analyzes election day candles from 1972-2020 Filters by Democratic or Republican victories Shows both average and median projections Projects high, low, and close levels Comprehensive statistics table with party-specific analysis The indicator works exclusively on the daily timeframe and projects price levels based on the current day's open price. It normalizes historical moves as percentages to maintain relevance across different price ranges and time periods. Key Components Average projections Median projections Election Day High, Low and Close All data presented in the table, lines filtered according to user input. Notes Works only on daily timeframe Updates projections based on each day's opening price Historical data covers 13 presidential elections All projections are based on normalized percentage moves
Pine Script™ indicator
by HKBrit
1
The Ultimate Indicator by ATK The Ultimate Indicator By ATK This all-in-one trading indicator integrates multiple advanced tools to provide ICT traders with deep insights into market structure, liquidity zones, Fair Value Gaps (FVG), and AI-powered signals. Whether you’re a scalper or a long-term trader, this indicator offers real-time analysis and helps identify potential trading opportunities in dynamic markets. 🔵 Key Features 🔹 2 options for checking SMT (Separation and Divergence) Detection: First - Compares highs and lows of a primary symbol (e.g., NQ1!) with a user-defined comparison symbol (e.g., ES1!). Automatically detects and visualizes discrepancies (red for highs, blue for lows) between the symbols. Offers customizable comparison settings and alerts for divergence detection. Second - Real-time SMT comparison between two tickers - red/green lines. 🔹 Market Structure Change (MSS) & Break of Structure (BOS) Detection: Identifies market structure shifts and breakouts, crucial for spotting potential reversals. Customizable sensitivity and length settings to adapt to various market conditions and trading strategies. Use 3 different timeframes on the same chart. 🔹 Buy Side & Sell Side Liquidity Zones: Highlights liquidity zones on both buy and sell sides, offering a clear view of market pressure points. Configurable settings for detection length, margin, and alert conditions for liquidity sweeps like the 15-minute Buy Side Liquidity (BSL) and Sell Side Liquidity (SSL). These lines from Swing Highs & Lows: Automatically plots horizontal lines at the most recent swing highs and lows. Lines are removed once the closing price breaches these levels, ensuring real-time updates and clean charting. 🔹 Fair Value Gap (FVG) Detection: Detects FVG formations on 5-minute and 1-minute charts, making it ideal for scalpers capturing liquidity gaps. Includes directional arrows and customizable alerts based on higher and lower timeframe FVG analysis, helping traders time their entry and exit points. 🔹IFVG (Inverse fair value gap) - yellow 🔹IFVG + SMT - Light blue 🔹IFVG + SMT + HTF FVG - green/red (1 min only) 🔹IFVG + SMT + BSL/SSL Swept - green/red (1 min only) for example: 🔹 Capture and plot significant price levels at specific times throughout the trading day: TDO (True Day Open): The price at which a market opens at 12:00 AM US. TMSO (True Micro Session Open): The open price of the Q2 of the micro session. RVT (Revolving True Open): The price recorded at 12:00 PM US. AO (Asia True Open Price): The price captured at 7:30 PM US, specifically representing the opening price of the Asian session. LO (London True Open Price): 1:30 AM US AM (New York Session - Afternoon Market True Open Price): 7:30 AM US PM (Post Market Open Price): 1:30 PM US. For example TMSO: 🔹 AI-Powered Entry Detection: The script helps identify entry points based on specific candle patterns, while also considering the exponential moving averages (EMAs) for trend confirmation. 🔶FFMS Strategy: (First Five Minute Strategy) Check 5-min time frame if the price is between the high and low of the previous day. then, when NYO if there is retest on the High/Low on the 5-min chart after crossover or crossunder the 5 minute first candle high/low lines. 🔶PSP & PSP + FVG 🔹The Precision Swing Point (PSP). It helps you visually identify price decorrelation (type of SMT) among key futures contracts (NQ/ES or NQ/ES/YM/ZB) and set alerts for these significant market movements. 🔹The PSP HTF 15 Min + FVG LTF 1 Min In this strategy the script is looking for PSP in HTF (15-Min) and capture the FVG in LTF (1-Min) only if its between High and Low of the PSP. If there is a retracement in parallel micro session time, for example: Q1 with Q3 or Q2 with Q4, Q3 with Q1, etc… if the retracement was happened and the price close above/below the high/low of the FVG from the LTF that captured according to the direction for long/short, it plots an arrow. Update the script that checks the purple arrows and shows all of them each time there is a new PSP in a 15-minute timeframe and then FVG in 1 Min timeframe with the reference to the TDO/TMSO/Open session for example: Step 1: PSP 15Min LOW/HIGH Lines look for FVG by the conditions above - purple arrow Step 2:FVG founded - purple arrow SMT Fill on 15 min timeframe + IFVG 1 min - Detected option: When Sym1 closed above/below FVG and Sym2 didn't it is SMT FILL (15 Min timeframe) White arrows when captured SMT FIll + IFVG: option to turn on alert on this strategy too. 🔹Detect liquidity swept on 15-min timeframe by $$ - green/red 🔹Detect liquidity to sweep zones on by diamonds - green/red 🔹Alerts for all Events and full scenarios. Real-time notifications ensure traders can act quickly on potential trade setups. 🔵 Conclusion: This Ultimate Indicator by ATK brings together critical elements of market analysis in one tool for ICT traders, offering real-time insights, alerts, and visual aids to enhance trading strategies. Whether you’re focused on short-term price action or long-term market trends, this indicator provides the tools necessary for informed decision-making and improved trading performance.
Pine Script™ indicator
by avielkomemi
Rolling ATR Bands | Flux Charts💎 GENERAL OVERVIEW Introducing the Rolling ATR Bands indicator! This indicator overlays adaptive bands around the price, using the Average True Range (ATR) to define dynamic support and resistance levels. The Rolling ATR Bands are color-coded to visually indicate potential trend strength, shifting between bearish, neutral, and bullish colors. This tool can help traders interpret price volatility, as well as identify probable trend changes, continuations, or reversals. For more information about the process, check the "HOW DOES IT WORK ?" section. Features of the new Rolling ATR Bands: ATR Bands With Customizable ATR Length & Multiplier Smooth Trend Strength With Adjustable Smoothing Options Color-coded bands Representing Bearish, Neutral, or Bullish Trends Alerts for Retests & Breaks Customizable Visuals 📌 HOW DOES IT WORK? The Rolling ATR Bands indicator calculates the ATR based on the specified length and multiplier to form upper and lower bands around the price. These bands adapt with market volatility, widening during high volatility and contracting during lower volatility periods. In addition, the indicator calculates a "trend strength" score by combining an interpolated RSI, Supertrend, and EMA crossover. This score is smoothed with a customizable length, and a color gradient is applied to visually denote the strength of bearish, neutral, or bullish conditions. Here's how to interpret the bands: Upper Band: Acts as dynamic resistance; when price approaches or touches it, this often suggests potential overbought conditions. Lower Band: Acts as dynamic support; touching or nearing this band might indicate potential oversold conditions. Color Shifts: Color changes indicate shifts in trend direction. For example, a green color suggests a bullish trend, while red hints at bearish tendencies. 🚩 UNIQUENESS What sets the Rolling ATR Bands apart is the combined use of interpolated RSI, Supertrend, and EMA cross values, creating a weighted trend strength score. This integration allows for nuanced, color-coded visual cues that respond quickly to trend changes without excessive noise, offering traders an intuitive view of both trend direction and potential momentum. You can also set up alerts for retest & alerts for upper and lower bands to get informed of potential movements. ⚙️ SETTINGS 1. General Configuration ATR Length : Controls the ATR calculation length for the bands. Smoothing: Adjusts the trend strength smoothing to control sensitivity to trend changes. ATR Multiplier : Sets the width of the bands by multiplying the ATR value. Trend Smoothing : Higher settings will result in longer periods of time required for trend to change direction from bullish to bearish and vice versa.
Pine Script™ indicator
by fluxchart
2
David_30-Minute Boxes This indicator draws boxes for 30-minute intervals on the chart, highlighting significant price movements. The boxes begin at 00:00 and end at 22:00. Each box is color-coded according to price action: Green Box: The closing price at the end of the 30-minute period is above the opening price. Red Box: The closing price at the end of the 30-minute period is below the opening price. Dark Green Box: The closing price at the end of the box is higher than the high of the previous box. Dark Red Box: The closing price at the end of the box is lower than the low of the previous box. The boxes dynamically adjust within each 30-minute interval to reflect the high and low of the period. The border of each box is fully transparent for a clean and uncluttered visual display. Optional Candle Numbering In the indicator settings, you can enable or disable the numbering of individual candles within each box. The numbering restarts at 1 for each new box, helping to track the progression of individual 30-minute intervals. Use Cases This indicator is particularly useful for traders who want to analyze short-term movements and the dynamics within 30-minute intervals. The color-coding of the boxes provides quick visual insights into the strength of price action within a time interval, making it easier to spot momentum shifts or important support and resistance levels.
Pine Script™ indicator
by GolfTrade
ARMORE Capital: Support–Resistance Levels v2.0 [Enhanced]Enhanced S/R Levels with Signals The "Enhanced S R Levels with Signals" indicator is designed to help traders and investors identify key Support and Resistance levels on a price chart. It also includes LONG and SHORT signals to help you see potential buy and sell opportunities. Here's a beginner-friendly breakdown of how it works and how to use it: How it Works Support and Resistance Levels: Support Levels (blue lines) are prices where the stock tends to find a "floor" or buying interest, potentially pushing the price up. These levels are calculated based on the lowest prices over a period, with the sensitivity setting helping adjust the distance between each support level. Resistance Levels (red lines) are prices where the stock often encounters a "ceiling" or selling interest, which could push the price down. These levels are calculated based on the highest prices over a period, with sensitivity adjusting the distance between each resistance level. The indicator plots up to five support and five resistance lines, giving you a layered view of price levels where the market may react. LONG and SHORT Signals: LONG Signal (green arrow pointing up): When the closing price goes above the closest support level, the indicator shows a LONG signal below the bar, suggesting a potential upward trend. SHORT Signal (red arrow pointing down): When the closing price goes below the closest resistance level, the indicator shows a SHORT signal above the bar, indicating a potential downward trend. Background Ribbons: When a LONG condition is met, a faint green background appears on the chart as a visual cue. When a SHORT condition is met, a faint red background appears to signal potential bearish pressure. How to Use It 1. Finding Entry and Exit Points: Use the LONG and SHORT signals as a guide, but remember to consider other factors before making trading decisions. A LONG signal suggests that price may rise, while a SHORT signal indicates potential downside. 2. Support & Resistance Levels: Treat these levels as potential points of interest. Prices often react at support or resistance, so you can look for confirmation (e.g., reversal patterns, volume spikes) around these levels. 3. Experiment with Sensitivity: Adjust the "Sensitivity" setting to see how it changes the spacing of support and resistance levels. Higher sensitivity may show more frequent support/resistance levels, which can be helpful for short-term traders. DISCLAIMER : This is purely experimental and shouldn't be considered a blatant Buy-Sell Indicator. Please feel free to use it to supplement your research, share it with your friends, iterate and improve upon it, and use it to build better, more powerful tools! Remember, always combine technical indicators with other analysis methods and manage your risk responsibly. Happy Trading!
Pine Script™ indicator
by armorecapital
Market Structure Overlay🚀 Market Structure Overlay Indicator 🚀 🔍 Overview The Market Structure Overlay (MSO) is a sophisticated technical analysis tool created to analyze price action and understand market structure in a more precise way. It identifies Break of Structure (BOS), Market Structure Breaks (MSBs), Equal Highs (EQH), and Equal Lows (EQL) with meticulous precision by utilizing both wicks and closing prices for better accuracy. The MSO is suitable for all trading timeframes, providing traders with the flexibility to observe and trade on any scale, from intraday to long-term trends. ⚙️ How It Works The MSO uses advanced logic to detect critical price levels that highlight structural changes in the market. It calculates swing highs and lows using user-defined settings, allowing for customization in market structure analysis. The indicator further highlights BOS and MSB levels by leveraging supply and demand detection, offering a comprehensive understanding of trend reversals and continuation points. ✨ Key features include: 📈 Bullish and Bearish BOS/MSB Lines: MSO differentiates between bullish and bearish structural events, which helps traders understand the prevailing trend and identify key pivot points. 🎨 Customizable Appearance: Traders can personalize line styles and colors for BOS/MSB, trendlines and EQH/EQL, making the tool integrate seamlessly into any chart setup. 🔄 Swing Length and Demand Memory Settings: MSO allows users to specify the swing length for BOS lookback and how many historical zones should be stored on the chart, enhancing control over how much data is analyzed visually. 📊 Market Structure Elements Explained Break of Structure (BOS): A BOS occurs when the price breaks through a previous Higher High (HH) or Lower Low (LL), indicating a continuation of the current trend. It helps confirm the prevailing market direction. Market Structure Break (MSB): occurs when a Higher Low (HL) or Lower High (LH) is broken, signaling a potential shift in the market trend. This typically marks the beginning of a trend reversal. Equal Highs (EQH) and Equal Lows (EQL): These levels are areas of liquidity where previous highs or lows are tested again by the market, often signifying areas of accumulation or distribution. EQH and EQL are crucial for recognizing potential liquidity traps. Trendlines: Trendlines are used to connect successive highs or lows, providing a visual representation of the current direction of the market. They help traders understand trend momentum and potential breakouts. 🔥 Key Features and Benefits ✅ Accurate Market Structure Detection The Market Structure Overlay identifies Break of Structure (BOS) and Market Structure Breaks (MSB) events that indicate potential trend changes or continuations. The indicator also distinguishes between bullish and bearish market structures using color-coded lines and custom labels, which helps in immediately identifying market dynamics. 📊 Supply and Demand Zones for BOS/MSB Detection The MSO uses Supply and Demand Zones as part of the detection logic for BOS and MSB. Although these zones are not directly plotted, they play a key role in determining when a significant structural break occurs. This unique approach enhances the accuracy of BOS and MSB identification, as it takes into account areas of accumulation or distribution that often serve as precursors to trend shifts. 🔍 Equal Highs and Lows Detection The MSO features Equal Highs (EQH) and Equal Lows (EQL) detection, which is a significant indicator for liquidity zones where potential orders might be resting. These areas often trigger key price actions as they get tested or broken. ⚙️ Customizable Settings Users can customize the indicator’s behavior, including choosing whether to use candle wicks or closing prices, setting swing lengths for identifying key levels, and specifying memory for storing past zones. This flexibility allows traders to adjust the indicator to suit their personal trading strategy and preferences. ⏱️ Multi-Timeframe Highs and Lows The indicator includes multi-timeframe support for significant highs and lows (daily, weekly, monthly, yearly). This helps traders understand where they are in the larger market context, especially when making decisions during intra-session trading. 🔎 Precise Detection Approach Unlike traditional market structure indicators that rely heavily on simple pivot points, the MSO employs a more advanced and precise detection mechanism for BOS and MSB. Traditional pivot points typically use a lookback function to identify highs and lows over a fixed period, which can lead to false signals due to market noise or temporary price fluctuations. In contrast, the MSO records and checks swing and interim points against stored memory, only signaling structural breaks after a thorough evaluation. This results in a non-repainting and highly accurate depiction of market structure, minimizing false alerts and providing traders with reliable insights based on price action that remains consistent once confirmed. 🎨 Visualization Options The MSO uses color-coded BOS and MSB lines to easily differentiate between bullish and bearish scenarios. Users also have options to visualize equal highs/lows (EQH/EQL) to recognize potential liquidity points. A detailed breakdown of Supply and Demand Zones helps traders identify high-probability areas for entries and exits. Additionally, the indicator allows traders to toggle visibility of key elements, including trend lines, labels, and multi-timeframe levels. 📝 Summary The Market Structure Overlay is an essential tool for understanding price behavior and structural shifts in any financial market. Its use of sophisticated logic to detect structural breaks, coupled with customizable visualizations, allows traders to gain a nuanced view of market dynamics. The supply and demand zones, together with the BOS, MSB, EQH, and EQL labels, provide a strong foundation for both trend-following and reversal trading strategies. MSO is not just a tool for understanding market direction—it's designed to enhance decision-making by delivering reliable and actionable insights into market structure. This indicator provides a seamless blend of market theory with advanced technical features, making it a valuable asset for serious traders. 📊 Key Visual Examples: 📈 Bullish and Bearish BOS/MSB Lines 📸 🌀 Trendlines 📸 ⚠️ Note: This indicator should be used as part of a broader trading strategy. Always confirm your entries and exits with additional tools and analysis methods. 💡
Pine Script™ indicator
by Kazo_
ICT Open Range Gap & 1st FVG (fadi)In his 2024 mentorship program, ICT detailed how price action interacts with Open Range Gaps and the initial 1-minute Fair Value Gap following the market open at 9:30 AM. What is an Open Range Gap? An Open Range Gap occurs when the market opens at 9:30 AM at a higher or lower level compared to the previous day's close at 4:14 PM, primarily relevant in futures trading. According to ICT, there is a statistical probability of 70% that the price action will close 50% or more of the Open Range Gap within the first 30 minutes of trading (9:30 AM to 10:00 AM). What is the First 1-Minute Fair Value Gap? ICT places significant emphasis on the first 1-minute Fair Value Gap (FVG) that forms after the market opens at 9:30 AM. The FVG must occur at 9:31 AM or later to be considered valid. This gap often presents key opportunities for traders, as it represents a temporary imbalance between supply and demand that the market seeks to correct. Understanding and leveraging these patterns can enhance trading strategies by offering insights into potential price movements shortly after market open. ICT Open Range Gap & 1st FVG This indicator is engineered to identify and highlight the Open Range Gaps and the first 1-minute Fair Value Gap. Furthermore, it functions across multiple timeframes, from seconds to hours, catering to various trading preferences. This flexibility is particularly beneficial for traders who favor higher timeframes or wish to observe these patterns' application at broader intervals. Settings The Open Range Gap indicator offers flexible display settings. It identifies the quadrants and provides optional color coding to distinguish them. Additionally, it tracks the "fill" level to visualize how far the price action has progressed into the gap, enhancing traders' ability to monitor and analyze price movements effectively. By default, the Open Range Gap will stop extending at 10:00 AM; however, there is an option to continue extending until the end of the trading day. The 1st Fair Value Gap (FVG) can be viewed on any timeframe the indicator is active on, offering various styling options to match each trader's preferences. While the 1st FVG is particularly relevant to the day it is created, previous 1st FVGs within the same week may provide additional value. This indicator allows traders to extend Monday's 1st FVG, marking the first FVG of the week, or to extend all 1st FVGs throughout the week.
Pine Script™ indicator
by fadizeidan
16
Custom Time Frame BackgroundThis indicator allows you to highlight custom time frames on your chart with alternating background colors. It's particularly useful for visualizing specific intervals that are not standard on TradingView, such as 4-hour, 6-hour, or any other custom duration you choose. Features: Customizable time frames: Set any combination of minutes, hours, and days Fallback to daily/weekly coloring if no custom time frame is set User-defined colors for alternating backgrounds How to use: Add the indicator to your chart In the settings, input your desired custom time frame: Set 'Custom Minutes' for intervals less than an hour Use 'Custom Hours' for hourly intervals Use 'Custom Days' for daily intervals Adjust 'Color 1' and 'Color 2' to your preferred background colors Examples: For a 4-hour time frame: Set Custom Hours to 4 For a 6-hour time frame: Set Custom Hours to 6 For a 2-day time frame: Set Custom Days to 2 If all inputs are set to 0, the indicator will default to daily coloring for intraday charts and weekly coloring for higher timeframes. This indicator helps traders visually segment their charts into custom intervals, making it easier to identify patterns and trends over specific time periods.
Pine Script™ indicator
by foreseersfx
Previous Day Max 15-Mins Move High/LowIntroduction This TradingView script is designed to help traders quickly identify significant price movement levels from the previous trading day based on the 15-minute time frame. It finds the largest high-to-low range of any 15-minute candle from the prior day and draws horizontal lines at those levels. These levels can help traders set potential support and resistance zones, aiding in intraday trading decisions and market analysis. In many trading strategies, significant levels from previous sessions are crucial for determining potential support and resistance points. By identifying the largest price move from the prior day’s 15-minute candles, this script can highlight areas of market interest where volatility was at its highest. Traders can use these levels to: Anticipate potential reversal points. Plan entries and exits based on key support and resistance. Gauge market sentiment by observing how the price reacts to these levels during the current session. This can be especially valuable in fast-paced trading environments or when analyzing shorter time frames. The lines extend across all time frames, so you can use this script on higher time frames as well to see previous-day levels while zooming out.
Pine Script™ indicator
by vslsanthosh
MultiTimeframe Candles for Full Time Frame Continuity AnalysisIn honor of Rob Smith (R.I.P), the creator of TheStrat, I decided to try to figure out how to make an indicator that graphically shows you the price levels and movements on higher timeframes. The goal is to have full timeframe continuity with TheStrat. Ideally when you are analyzing the lower time, you want it to be in continuity with the higher time frames. How to Use It: All you have to do is put on the indicator the number of times you desire. So if you want the hourly, the daily, the weekly, and the monthly, then you have to just put on the indicator 4 times--once for each timeframe. Then you go into each one you put on the chart and go to the drop down menu where you choose the timeframe you want displayed. In the future, I'll do a video to show you exactly how that works, but I think you guys can figure it out.
Pine Script™ indicator
by hardwaybets
1
Ultimate Machine Learning MACD (Deep Learning Edition)This script is a "Deep Learning MACD" indicator that combines traditional MACD calculations with advanced machine learning techniques, including recursive feedback, adaptive learning rates, Monte Carlo simulations, and volatility-based adjustments. Here’s a breakdown of its key components: Inputs Lookback: The length of historical data (1000 by default) used for learning and volatility measurement. Momentum and Volatility Weighting: Adjusts how much momentum and volatility contribute to the learning process (momentum weight: 1.2, volatility weight: 1.5). MACD Lengths: Defines the range for MACD fast and slow lengths, starting at minimum of 1 and max of 1000. Learning Rate: Defines how much the model learns from its predictions (very small learning rate by default). Adaptive Learning: Enables dynamic learning rates based on market volatility. Memory Factor: A feedback factor that determines how much weight past performance has in the current model. Simulations: The number of Monte Carlo simulations used for probabilistic modeling. Price Change: Calculated as the difference between the current and previous close. Momentum: Measured using a lookback period (1000 bars by default). Volatility: Standard deviation of closing prices. ATR: Average true range over 14 periods for measuring market volatility. Custom EMA Calculation Implements an exponential moving average (EMA) formula from scratch using a recursive calculation with a smoothing factor. Dynamic Learning Rate Adjusts the learning rate based on market volatility. When volatility is high, the learning rate increases, and when volatility is low, it decreases. This makes the model more responsive during volatile markets and more stable during calm periods. Error Calculation and Adjustment Error Calculation: Measures the difference between the predicted value (via Monte Carlo simulations) and the true MACD value. Adjust MACD Length: Uses the error to adjust the fast and slow MACD lengths dynamically, so the system can learn from market conditions. Probabilistic Monte Carlo Simulation Runs multiple simulations (200 by default) to generate probabilistic predictions. It uses random values weighted by momentum and volatility to simulate various market scenarios, enhancing prediction accuracy. MACD Calculation (Learning-Enhanced) A custom MACD function that calculates: Fast EMA and Slow EMA for MACD line. Signal Line: An EMA of the MACD line. Histogram: The difference between the MACD and signal lines. Adaptive MACD Calculation Adjusts the fast and slow MACD lengths based on the error from the Monte Carlo prediction. Calculates the adaptive MACD, signal, and histogram using dynamically adjusted lengths. Recursive Memory Feedback Stores previous MACD values in an array (macdMemory) and averages them to create a feedback loop. This adds a "memory" to the system, allowing it to learn from past behaviors and refine future predictions. Volatility-Based Reinforcement Introduces a volatility reinforcement factor that influences the signal based on market conditions. It adds volatility awareness to the feedback system, making the system more reactive during high volatility periods. Smoothed MACD After all the adjustments, the MACD line is further smoothed based on the current market volatility, resulting in a final smoothed MACD. Key Features Monte Carlo Simulation: Runs multiple simulations to enhance predictions based on randomness and market behavior. Adaptive Learning: Dynamic adjustments of learning rates and MACD lengths based on market conditions. Recursive Feedback: Uses past data as feedback to refine the system’s predictions over time. Volatility Awareness: Integrates market volatility into the system, making the MACD more responsive to market fluctuations. This combination of traditional MACD with machine learning creates an adaptive indicator capable of learning from past behaviors and adjusting its sensitivity based on changing market conditions.
Pine Script™ indicator
by Cmo22
Ultimate Machine Learning RSI (Deep Learning Edition)This script represents an advanced implementation of a Machine Learning-based Relative Strength Index (RSI) indicator in Pine Script, incorporating several sophisticated techniques to create a more adaptive, intelligent, and responsive RSI. Key Components and Features: Lookback Period: The period over which the indicator "learns" from past data, set to 1000 bars by default. Momentum and Volatility Weighting: These factors control how much the momentum and volatility of the market influence the learning and signal generation. RSI Length Range: The minimum and maximum values for the RSI length, allowing the algorithm to adjust the RSI length dynamically. Learning Rate: Controls how quickly the system adapts to new data. An adaptive learning rate can change based on market volatility. Memory Factor: Influences how much the system "remembers" previous performance when making adjustments. Monte Carlo Simulations: Used for probabilistic modeling to create a more robust signal. \ Price Change: Tracks the difference between the current close and the previous close. Momentum: A measure of the rate of change in the price over the lookback period. Volatility: Calculated using the standard deviation of the close prices. ATR (Average True Range): Tracks the volatility of the market over a short period to influence decisions. Monte Carlo Simulation: Probabilistic Signal: This uses multiple random simulations (Monte Carlo) to generate potential future signals. These simulations are weighted by the momentum and volatility of the market. A cluster factor further enhances the simulation based on volatility regimes. Z-Score for Extreme Conditions: Z-Score: Measures how extreme current price movements are compared to the historical average, providing context for identifying overbought and oversold conditions. Dynamic Learning Rate: The learning rate adjusts based on the volatility of the market, becoming more responsive in high-volatility periods and slower in low-volatility markets. This prevents the system from overreacting to noise but ensures responsiveness to significant shifts. Recursive Learning and Feedback: Error Calculation: The system calculates the difference between the true RSI and the predicted RSI, creating an error that is fed back into the system to adjust the RSI length and other parameters dynamically. RSI Length Adjustment: Based on the error, the RSI length is adjusted, ensuring that the system evolves over time to better reflect market conditions. Adaptive Smoothing: In periods of high volatility, the indicator applies a Triple Exponential Moving Average (TEMA) for faster adaptation, while in quieter markets, it uses an Exponential Moving Average (EMA) for smoother adjustments. Recursive Memory Feedback: The system maintains a memory of past RSI values, which helps refine the output further. The memory factor influences how much weight is given to past performance versus the current adaptive signal. Volatility-Based Reinforcement: Higher market volatility increases the impact of this memory feedback, making the model more reactive in volatile conditions. Multi-Factor Dynamic Thresholds: Dynamic Overbought/Oversold: Instead of fixed RSI levels (70/30), the thresholds adjust dynamically based on the Z-Score, making the system more sensitive to extreme market conditions. Combined Multi-Factor Signal: The final output signal is the result of combining the true RSI, adaptive RSI, and the probabilistic signal generated from the Monte Carlo simulations. This creates a robust, multi-factor signal that incorporates various market conditions and machine learning techniques. Visual Representation: The final combined signal is plotted in blue on the chart, along with reference lines at 55 (overbought), 10 (oversold), and 35 (neutral). Alerts are set up to trigger when the combined signal crosses above the dynamic overbought level or below the dynamic oversold level. Conclusion: This "Ultimate Machine Learning RSI" script leverages multiple machine learning techniques—probabilistic modeling, adaptive learning, recursive feedback, and dynamic thresholds—to create an advanced, highly responsive RSI indicator. The result is an RSI that continuously learns from market conditions, adjusts itself in real-time, and provides a more nuanced and robust signal compared to traditional fixed-length RSI. This indicator pushes the boundaries of what's possible with Pine Script and introduces cutting-edge techniques for technical analysis.
Pine Script™ indicator
by Cmo22
Ultimate Multi-Physics Financial IndicatorThe Ultimate Multi-Physics Financial Indicator is an advanced Pine Script designed to combine various complex theories from physics, mathematics, and statistical mechanics to create a holistic, multi-dimensional approach to market analysis. Let’s break down the core concepts and how they’re applied in this script: 1. Fractal Geometry: Recursive Pattern Recognition Purpose: This part of the script uses fractal geometry to recursively analyze price pivots (highs and lows) for detecting patterns. Fractals: The fractalHigh and fractalLow signals represent key turning points in the market. The script goes deeper by recursively analyzing layers of pivot sequences, adding "depth" to the recognition of patterns. Recursive Depth: It breaks down each detected pivot into smaller components, giving more nuance to market pattern recognition. This provides a broader context for how prices have behaved historically at various levels of recursion. 2. Quantum Mechanics: Adaptive Probabilistic Monte Carlo with Correlation Purpose: This component integrates randomness (from Monte Carlo simulations) with current market behavior using correlation. Randomness Weighted by Correlation: By generating random probabilities and weighting them based on how well the market aligns with recent trends, it creates a probabilistic signal. The random values are scaled by a correlation factor (close prices and their moving average), adding adaptive elements where randomness is adjusted by current market conditions. 3. Thermodynamics: Adaptive Efficiency Ratio (Entropy-Like Decay) Purpose: This section uses principles from thermodynamics, where efficiency in price movement is dynamically adjusted by recent volatility and changes. Efficiency Ratio: It calculates how efficiently the market is moving over a certain period. The "entropy decay factor" reflects how stable the market is. Higher entropy (chaos) results in lower efficiency, while stable periods maintain higher efficiency. 4. Chaos Theory: Lorenz-Driven Market Oscillation Purpose: Instead of using a basic Average True Range (ATR) indicator, this section applies chaos theory (using a Lorenz attractor analogy) to describe complex market oscillations. Lorenz Attractor: This models market behavior with a chaotic system that depends on the historical price changes at different time intervals. The attractor value quantifies the level of "chaos" or unpredictability in the market. 5. String Theory: Multi-Layered Dimensional Analysis of RSI and MACD Purpose: Combines traditional indicators like the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) with momentum for multi-dimensional analysis. Interaction of Layers: Each layer (RSI, MACD, and momentum) is treated as part of a multi-dimensional structure, where they influence one another. The final signal is a blended outcome of these key metrics, weighted and averaged for complexity. 6. Fluid Dynamics: Adaptive OBV (Pressure-Based) Purpose: This section uses fluid dynamics to understand how price movement and volume create pressure over time, similar to how fluids behave under different forces. Adaptive OBV: Traditional OBV (On-Balance Volume) is adapted by using statistical smoothing to measure the "pressure" exerted by volume over time. The result is a signal that shows where there might be building momentum or pressure in the market based on volume dynamics. 7. Recursive Synthesis of Signals Purpose: After calculating all the individual signals (fractal, quantum, thermodynamic, chaos, string, and fluid), the script synthesizes them into one cohesive signal. Recursive Feedback Loop: Each signal is recursively influenced by others, forming a feedback loop that allows the indicator to continuously learn from new data and self-adjust. 8. Signal Smoothing and Final Output Purpose: To avoid noise in the output, the final combined signal is smoothed using an Exponential Moving Average (EMA), which helps stabilize the output for easier interpretation. 9. Dynamic Color Coding Based on Signal Extremes Purpose: Visual clarity is enhanced by using color to highlight different levels of signal strength. Color Coding: The script dynamically adjusts colors (green, orange, red) based on the strength of the final signal relative to its percentile ranking in historical data, making it easier to spot bullish, neutral, or bearish signals. The "Ultimate Multi-Physics Financial Indicator" integrates a diverse array of scientific principles — fractal geometry, quantum mechanics, thermodynamics, chaos theory, string theory, and fluid dynamics — to provide a comprehensive market analysis tool. By combining probabilistic simulations, multi-dimensional technical indicators, and recursive feedback loops, this indicator adapts dynamically to evolving market conditions, giving traders a holistic view of market behavior across various dimensions. The result is an adaptive and flexible tool that responds to both short-term and long-term market changes
Pine Script™ indicator
by Cmo22
1
Advanced Physics Financial Indicator Each component represents a scientific theory and is applied to the price data in a way that reflects key principles from that theory. Detailed Explanation 1. Fractal Geometry - High/Low Signal Concept: Fractal geometry studies self-similar patterns that repeat at different scales. In markets, fractals can be used to detect recurring patterns or turning points. Implementation: The script detects pivot highs and lows using ta.pivothigh and ta.pivotlow, representing local turning points in price. The fractalSignal is set to 1 for a pivot high, -1 for a pivot low, and 0 if there is no signal. This logic reflects the cyclical, self-similar nature of price movements. Practical Use: This signal is useful for identifying local tops and bottoms, allowing traders to spot potential reversals or consolidation points where fractal patterns emerge. 2. Quantum Mechanics - Probabilistic Monte Carlo Simulation Concept: Quantum mechanics introduces uncertainty and probability into systems, much like how future price movements are inherently uncertain. Monte Carlo simulations are used to model a range of possible outcomes based on random inputs. Implementation: In this script, we simulate 100 random outcomes by generating a random number between -1 and 1 for each iteration. These random values are stored in an array, and the average of these values is calculated to represent the Quantum Signal. Practical Use: This probabilistic signal provides a sense of randomness and uncertainty in the market, reflecting the possibility of price movement in either direction. It simulates the market’s chaotic nature by considering multiple possible outcomes and their average. 3. Thermodynamics - Efficiency Ratio Signal Concept: Thermodynamics deals with energy efficiency and entropy in systems. The efficiency ratio in financial terms can be used to measure how efficiently the price is moving relative to volatility. Implementation: The Efficiency Ratio is calculated as the absolute price change over n periods divided by the sum of absolute changes for each period within n. This ratio shows how much of the price movement is directional versus random, mimicking the concept of efficiency in thermodynamic systems. Practical Use: A high efficiency ratio suggests that the market is trending smoothly (high efficiency), while a low ratio indicates choppy, non-directional movement (low efficiency, or high entropy). 4. Chaos Theory - ATR Signal Concept: Chaos theory studies how complex systems are highly sensitive to initial conditions, leading to unpredictable behavior. In markets, chaotic price movements can often be captured through volatility indicators. Implementation: The script uses a very long ATR period (1000) to reflect slow-moving chaos over time. The Chaos Signal is computed by measuring the deviation of the current price from its long-term average (SMA), normalized by ATR. This captures price deviations over time, hinting at chaotic market behavior. Practical Use: The signal measures how far the price deviates from its long-term average, which can signal the degree of chaos or extreme behavior in the market. High deviations indicate chaotic or volatile conditions, while low deviations suggest stability. 5. Network Theory - Correlation with BTC Concept: Network theory studies how different components within a system are interconnected. In markets, assets are often correlated, meaning that price movements in one asset can influence or be influenced by another. Implementation: This indicator calculates the correlation between the asset’s price and the price of Bitcoin (BTC) over 30 periods. The Network Signal shows how connected the asset is to BTC, reflecting broader market dynamics. Practical Use: In a highly correlated market, BTC can act as a leading indicator for other assets. A strong correlation with BTC might suggest that the asset is likely to move in line with Bitcoin, while a weak or negative correlation might indicate that the asset is moving independently. 6. String Theory - RSI & MACD Interaction Concept: String theory attempts to unify the fundamental forces of nature into a single framework. In trading, we can view the RSI and MACD as interacting forces that provide insights into momentum and trend. Implementation: The script calculates the RSI and MACD and combines them into a single signal. The formula for String Signal is (RSI - 50) / 100 + (MACD Line - Signal Line) / 100, normalizing both indicators to a scale where their contributions are additive. The RSI represents momentum, and MACD shows trend direction and strength. Practical Use: This signal helps in detecting moments where momentum (RSI) and trend strength (MACD) align, giving a clearer picture of the asset's direction and overbought/oversold conditions. It unifies these two indicators to create a more holistic view of market behavior. 7. Fluid Dynamics - On-Balance Volume (OBV) Signal Concept: Fluid dynamics studies how fluids move and flow. In markets, volume can be seen as a "flow" that drives price movement, much like how fluid dynamics describe the flow of liquids. Implementation: The script uses the OBV (On-Balance Volume) indicator to track the cumulative flow of volume based on price changes. The signal is further normalized by its moving average to smooth out fluctuations and make it more reflective of price pressure over time. Practical Use: The Fluid Signal shows how the flow of volume is driving price action. If the OBV rises significantly, it suggests that there is strong buying pressure, while a falling OBV indicates selling pressure. It’s analogous to how pressure builds in a fluid system. 8. Final Signal - Combining All Physics-Based Indicators Implementation: Each of the seven physics-inspired signals is combined into a single Final Signal by averaging their values. This approach blends different market insights from various scientific domains, creating a comprehensive view of the market’s condition. Practical Use: The final signal gives you a holistic, multi-dimensional view of the market by merging different perspectives (fractal behavior, quantum probability, efficiency, chaos, correlation, momentum/trend, and volume flow). This approach helps traders understand the market's dynamics from multiple angles, offering deeper insights than any single indicator. 9. Color Coding Based on Signal Extremes Concept: The color of the final signal plot dynamically reflects whether the market is in an extreme state. Implementation: The signal color is determined using percentiles. If the Final Signal is in the top 55th percentile of its range, the signal is green (bullish). If it is between the 45th and 55th percentiles, it is orange (neutral). If it falls below the 45th percentile, it is red (bearish). Practical Use: This visual representation helps traders quickly identify the strength of the signal. Bullish conditions (green), neutral conditions (orange), and bearish conditions (red) are clearly distinguished, simplifying decision-making.
Pine Script™ indicator
by Cmo22
Price Action StrategyThe **Price Action Strategy** is a tool designed to capture potential market reversals by utilizing classic reversal candlestick patterns such as Hammer, Shooting Star, Doji, and Pin Bar near dinamic support and resistance levels. ***Note to moderators - The moving average was removed from the strategy because it was not suitable for the strategy and not participating in the entry or exit criteria. - The moving average length has been replaced/renamed by the support/resistance lenght. - The bullish engulfing and bearish engulfing patterns were also removed because in practice they were not working as entry criteria, since the candle price invariably closes far from the support/resistance level even considering the sensitivity range. There was no change in the backtest results after removing these patterns. ### Key Elements of the Strategy 1. Support and Resistance Levels - Support and resistance are pivotal price levels where the asset has previously struggled to move lower (support) or higher (resistance). These levels act as psychological barriers where buying interest (at support) or selling interest (at resistance) often increases, potentially causing price reversals. - In this strategy, support is calculated as the lowest low and resistance as the highest high over a 16-period length. When the price nears these levels, it indicates possible zones for a reversal, and the strategy looks for specific candlestick patterns to confirm an entry. 2. Candlestick Patterns - This strategy uses classic reversal patterns, including: - **Hammer**: Indicates a buy signal, suggesting rejection of lower prices. - **Shooting Star**: Suggests a sell signal, showing rejection of higher prices. - **Doji**: Reflects indecision and potential reversal. - **Pin Bar**: Represents price rejection with a long shadow, often signaling a reversal. By combining these reversal patterns with the proximity to dinamic support or resistance levels, the strategy aims to capture potential reversal movements. 3. Sensitivity Level - The sensitivity parameter adjusts the acceptable range (Default 0.018 = 1.8%) around support and resistance levels within which reversal patterns can trigger trades (i.e. the closing price of the candle must occur within the specified range defined by the sensitivity parameter). A higher sensitivity value expands this range, potentially leading to less accurate signals, as it may allow for more false positives. 4. Entry Criteria - **Buy (Long)**: A Hammer, Doji, or Pin Bar pattern near support. - **Sell (Short)**: A Shooting Star, Doji, or Pin Bar near resistance. 5. Exit criteria - Take profit = 9.5% - Stop loss = 16% 6. No Repainting - The Price Action Strategy is not subject to repainting. 7. Position Sizing by Equity and risk management - This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 16% from the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management. 8. Backtest results - This strategy was subjected to deep backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data. 9. Chart Visualization - Support and resistance levels are displayed as green (support) and red (resistance) lines. - Only the candlestick pattern that generated the entry signal to triger the trade is identified and labeled on the chart. During the operation, the occurrence of new Doji, Pin Bar, Hammer and Shooting Star patterns will not be demonstrated on the chart, since the exit criteria are based on percentage take profit and stop loss. Doji: Pin Bar and Doji Shooting Star and Doji Hammer 10. Default settings Chart timeframe: 20 min Moving average lenght: 16 Sensitivity: 0.018 Stop loss (%): 16 Take Profit (%): 9.5 BYBIT:1000000MOGUSDT.P
Pine Script™ strategy
by felipemiransan