Ultimate Momentum"Ultimate Momentum" – Elevating Your Momentum Analysis
Experience a refined approach to momentum analysis with "Ultimate Momentum," a sophisticated indicator seamlessly combining the strengths of RSI and CCI. This tool offers a nuanced understanding of market dynamics with the following features:
1. Harmonious Fusion: Witness the dynamic interplay between RSI and CCI, providing a comprehensive understanding of market nuances.
2. Optimized CCI Dynamics: Delve confidently into market intricacies with optimized CCI parameters, enhancing synergy with RSI for a nuanced perspective on trends.
3. Standardized Readings: "Ultimate Momentum" standardizes RSI and CCI, ensuring consistency and reliability in readings for refined signals.
4. Native TradingView Integration: Immerse yourself in the reliability of native TradingView codes for RSI and CCI, ensuring stability and compatibility.
How RSI and CCI Work Together:
RSI (Relative Strength Index): Captures price momentum with precision, measuring the speed and change of price movements.
CCI (Commodity Channel Index): Strategically integrated to complement RSI, offering a unique perspective on price fluctuations and potential trend reversals.
Why "Ultimate Momentum"?
In a crowded landscape, "Ultimate Momentum" stands out, redefining how traders interpret momentum. Gain a profound understanding of market dynamics, spot trend reversals, and make informed decisions.
Your Insights Matter:
Share your suggestions to enhance "Ultimate Momentum" in the comments. Your feedback is crucial as we strive to deliver an unparalleled momentum analysis tool.
Centered Oscillators
Triple Confirmation Kernel Regression Base [QuantraSystems]Kernel Regression Oscillator - BASE
Introduction
The Kernel Regression Oscillator (ᏦᏒᎧ) represents an advanced tool for traders looking to capitalize on market trends.
This Indicator is valuable in identifying and confirming trend directions, as well as probabilistic and dynamic oversold and overbought zones.
It achieves this through a unique composite approach using three distinct Kernel Regressions combined in an Oscillator. The additional Chart Overlay Indicator adds confidence to the signal.
This methodology helps the trader to significantly reduce false signals and offers a more reliable indication of market movements than more widely used indicators can.
Legend
The upper section is the Overlay. It features the Signal Wave to display the current trend.
Its Overbought and Oversold zones start at 50% and end at 100% of the selected Standard Deviation (default σ = 3), which can indicate extremely rare situations which can lead to either a softening momentum in the trend or even a mean reversion situation.
The lower one is the Base Chart - This Indicator.
It features the Kernel Regression Oscillator to display a composite of three distinct regressions, also displaying current trend.
Its Overbought and Oversold zones start at 50% and end at 100% of the selected Standard Deviation (default σ = 2), which can indicate extremely rare situations.
Case Study
To effectively utilize the ᏦᏒᎧ, traders should use both the additional Overlay and the Base
Chart at the same time. Then focus on capturing the confluence in signals, for example:
If the 𝓢𝓲𝓰𝓷𝓪𝓵 𝓦𝓪𝓿𝓮 on the Overlay and the ᏦᏒᎧ on the Base Chart both reside near the extreme of an Oversold zone the probability is higher than normal that momentum in trend may soften or the token may even experience a reversion soon.
If a bar is characterized by an Oversold Shading in both the Overlay and the Base Chart, then the probability is very high to experience a reversion soon.
In this case the trader may want to look for appropriate entries into a long position, as displayed here.
If a bar is characterized by an Overbought Shading in either Overlay or Base Chart, then the probability is high for momentum weakening or a mean reversion.
In this case the trade may have taken profit and closed his long position, as displayed here.
Please note that we always advise to find more confluence by additional indicators.
Recommended Settings
Swing Trading (1D chart)
Overlay
Bandwith: 45
Width: 2
SD Lookback: 150
SD Multiplier: 2
Base Chart
Bandwith: 45
SD Lookback: 150
SD Multiplier: 2
Fast-paced, Scalping (4min chart)
Overlay
Bandwith: 75
Width: 2
SD Lookback: 150
SD Multiplier: 3
Base Chart
Bandwith: 45
SD Lookback: 150
SD Multiplier: 2
Notes
The Kernel Regression Oscillator on the Base Chart is also sensitive to divergences if that is something you are keen on using.
For maximum confluence, it is recommended to use the indicator both as a chart overlay and in its Base Chart.
Please pay attention to shaded areas with Standard Deviation settings of 2 or 3 at their outer borders, and consider action only with high confidence when both parts of the indicator align on the same signal.
This tool shows its best performance on timeframes lower than 4 hours.
Traders are encouraged to test and determine the most suitable settings for their specific trading strategies and timeframes.
The trend following functionality is indicated through the "𝓢𝓲𝓰𝓷𝓪𝓵 𝓦𝓪𝓿𝓮" Line, with optional "Up" and "Down" arrows to denote trend directions only (toggle “Show Trend Signals”).
Methodology
The Kernel Regression Oscillator takes three distinct kernel regression functions,
used at similar weight, in order to calculate a balanced and smooth composite of the regressions. Part of it are:
The Epanechnikov Kernel Regression: Known for its efficiency in smoothing data by assigning less weight to data points further away from the target point than closer data points, effectively reducing variance.
The Wave Kernel Regression: Similarly assigning weight to the data points based on distance, it captures repetitive and thus wave-like patterns within the data to smoothen out and reduce the effect of underlying cyclical trends.
The Logistic Kernel Regression: This uses the logistic function in order to assign weights by probability distribution on the distance between data points and target points. It thus avoids both bias and variance to a certain level.
kernel(source, bandwidth, kernel_type) =>
switch kernel_type
"Epanechnikov" => math.abs(source) <= 1 ? 0.75 * (1 - math.pow(source, 2)) : 0.0
"Logistic" => 1/math.exp(source + 2 + math.exp(-source))
"Wave" => math.abs(source) <= 1 ? (1 - math.abs(source)) * math.cos(math.pi * source) : 0.
kernelRegression(src, bandwidth, kernel_type) =>
sumWeightedY = 0.
sumKernels = 0.
for i = 0 to bandwidth - 1
base = i*i/math.pow(bandwidth, 2)
kernel = kernel(base, 1, kernel_type)
sumWeightedY += kernel * src
sumKernels += kernel
(src - sumWeightedY/sumKernels)/src
// Triple Confirmations
Ep = kernelRegression(source, bandwidth, 'Epanechnikov' )
Lo = kernelRegression(source, bandwidth, 'Logistic' )
Wa = kernelRegression(source, bandwidth, 'Wave' )
By combining these regressions in an unbiased average, we follow our principle of achieving confluence for a signal or a decision, by stacking several edges to increase the probability that we are correct.
// Average
AV = math.avg(Ep, Lo, Wa)
The Standard Deviation bands take defined parameters from the user, in this case sigma of ideally between 2 to 3,
to help the indicator detect extremely improbable conditions and thus take an inversely probable signal from it to forward to the user.
The parameter settings and also the visualizations allow for ample customizations by the trader. The indicator comes with default and recommended settings.
For questions or recommendations, please feel free to seek contact in the comments.
BDC - Bitcoin (BTC) Dominance Change [Logue]Bitcoin Dominance Change. Interesting things tend to happen when the Bitcoin dominance increases or decreases rapidly. Perhaps because there is overexuberance in the market in either BTC or the alts. In back testing, I found a rapid 13-day change in dominance indicates interesting switches in the BTC trends. Prior to 2019, the indicator doesn't work as well to signal trend shifts (i.e., local tops and bottoms) likely based on very few coins making up the crypto market.
The BTC dominance change is calculated as a percentage change of the daily dominance. You are able to change the upper bound, lower bound, and the period (daily) of the indicator to your own preferences. The indicator going above the upper bound or below the lower bound will trigger a different background color.
Use this indicator at your own risk. I make no claims as to its accuracy in forecasting future trend changes of Bitcoin.
Price PressureDescription:
The Price Pressure Indicator, developed by OmegaTools, is a robust and versatile tool designed to assist traders in analyzing market dynamics and identifying potential trend shifts. This open-source script, offers a unique approach to understanding price pressure over specified periods, enhancing the user's ability to make informed trading decisions.
Key Features:
1. Dynamic Length Configuration: The indicator allows users to customize the length parameter, ranging from 9 to 100, providing flexibility in adapting to different market conditions.
2. Extensions Control: Traders can fine-tune the extension levels (ob) between 50 and 90, allowing for precise adjustments based on their risk tolerance and trading preferences.
3. Normalization and Oscillation: The script employs a normalization function to standardize price data, offering a clearer representation of market pressure. The resulting oscillator visualizes the normalized pressure, highlighting potential market trends.
4. Pressure Calculation: The indicator calculates price pressure by considering the difference between the previous high and the current close, as well as the difference between the current close and the previous low. This innovative approach enhances the accuracy of pressure analysis.
5. Smoothing Option: While the script currently uses a simple moving average for smoothing, traders have the option to explore other smoothing methods by uncommenting the "smt" input line.
6. Visual Clarity: The indicator provides a visually intuitive representation of pressure and signal lines, aiding traders in quickly interpreting market conditions. The color-coded display enhances user experience, with the ability to discern bullish and bearish pressures.
7. Premium and Discount Zones: The script identifies premium and discount areas, assisting traders in spotting potential buying or selling opportunities. The premium and discount lines can be adjusted based on individual risk tolerance and strategy.
How to Use:
1. Adjust the length and extension parameters based on your trading preferences.
2. Interpret the oscillator and signal lines for insights into market pressure.
3. Utilize premium and discount zones to identify potential entry or exit points.
4. Experiment with different smoothing options for a customized analysis.
Concepts and Methodology:
The Price Pressure Indicator utilizes a normalization function and oscillation to quantify market pressure. By calculating the difference between highs and lows, the script provides a nuanced understanding of current market conditions. The smoothing option further refines the analysis, offering traders a comprehensive tool for trend identification.
Explore, experiment, and leverage the power of the Price Pressure Indicator to enhance your trading strategy on TradingView.
Chaos CypherOverview
Technically a smooth linear rate transformation, the "Chaos Cypher" drew some inspiration from the principles of Markov and chaos. Aside from price action, this combination provides a different lens through which to observe and interpret market movements. Markov models are based on the principle that future states depend only on the current state, not on the sequence of events that preceded it. Chaos theory deals with systems that are highly sensitive to initial conditions, a concept popularly referred to as the butterfly effect.
Efficient with Minimal Data: Designed to perform efficiently, the CC indicator is particularly useful in situations regardless of extensive historical data, except for obvious back testing, while still providing strength at identifying potential overbought/oversold zones and critical divergences.
Simplified Momentum Analysis: With further inspiration from the triple smoothed exponential rate, the CC actually uses linear regression for its calculations. This approach allows for a clear and more straightforward identification of deviations in momentum. The smoothing helps allow it to provide details while still operating at a fast pace due to the regression speed.
Adaptable to Various Timeframes: The transformation calculation then employed effectively narrows its scope in relation to the pace, enhancing its applicability across multiple timeframes and periods. This flexibility makes it a versatile tool suitable for various strategies and market conditions.
Fisher Transform Style Presentation: The indicator is presented in a style reminiscent of the Fisher Transform. However, this method of the script recalculates based on every individual dataset. To maintain efficiency, the adjustable length only applies to the regression rate.
The Chaos Cypher when compared to the Fisher Transform
Inversion Option for Leads: Lastly, an intriguing find when testing this script is the potential of the inversion option. This aspect proved particularly useful when searching for pullbacks on a trending market.
Conclusion
This indicator is designed to be forward-thinking and attempts to combine theoretical concepts with practicality. It has the ability to work with minimal data, adapt to various timeframes, and provide clear views of market movements. It back tested very well even when unrealistically used as a sole instrument.
"Two states differing by imperceptible amounts may eventually evolve into two considerably different states ... If, then, there is any error whatever in observing the present state—and in any real system such errors seem inevitable—an acceptable prediction of an instantaneous state in the distant future may well be impossible....In view of the inevitable inaccuracy and incompleteness of weather observations, precise very-long-range forecasting would seem to be nonexistent." -Edward Norton Lorenz
Dynamic Volume-Volatility Adjusted MomentumThis Indicator in a refinement of my earlier script PC*VC Moving average Old with easier to follow color codes, overbought and oversold zones. This script has converted the previous script into a standardized measure by converting it into Z-scores and also incorporated a volatility based dynamic length option. Below is a detailed Explanation.
The "Dynamic Volume-Volatility Adjusted Momentum" or "Nasan Momentum Oscillator" is designed to capture market momentum while accounting for volume and volatility fluctuations. It leverages the Typical Price (TP), calculated as the average of high, low, and close prices, and introduces the Price Coefficient (PC) based on deviations from the simple moving average (SMA) across various time frames. Additionally, the Volume Coefficient (VC) compares current volume to SMA, and calculates Intraday Volatility (IDV) which gauges the daily price range relative to the close. Then intraday volatility ratio is calculated ( IDV Ratio) as the ratio of current Intraday Volatility (IDV) to the average of IDV for three different length periods, which provides a relative measure of current intraday volatility compared to its recent historical average. An inter-day ATR based Relative Volatility (RV) is calculated to adjusts for changing market volatility based on which the dynamic length adjustment adapts the moving average (standard length is 14). The PC *VC/IDV Ratio integrates price, volume, and volatility information which provides a volume and volatility adjusted momentum. This volume and volatility adjusted momentum is converted into a standardized Z-Score. The Z-Score measures deviations from the mean. Color-coded plots visually represent momentum, and thresholds aid in identifying overbought or oversold conditions.
The indicator incorporates a nuanced approach to emphasize the joint impact of price and volume while considering the stabilizing effect of lower intraday volatility. Placing the volume ratio (VC) in the numerator means that higher volume positively contributes to the overall ratio, aligning with the observation that increased volumes often accompany robust price movements. Simultaneously, the decision to include the inverse of intraday volatility (1/IDV) in the denominator acts as a dampener, reducing the impact of extreme intraday volatility on the momentum indicator. This design choice aims to filter out noise, giving more weight to significant price changes supported by substantial trading activity. In essence, the indicator's design seeks to provide a more robust momentum measure that balances the influence of price, volume, and volatility in the analysis of market dynamics.
OneThingToRuleThemAll [v1.4]This script was created because I wanted to be able to display a contextual chart of commonly used indicators for scalping and swing traders, with the ability to control the visual representation on the charts as their cross-overs, cross-unders, or changes of state happen in real time. Additionally, I wanted the ability to control how or when they are displayed. While looking through other community projects, I found they lacked the ability to full customize the output controls and values used for these indicators.
The script leverages standard RSI/MACD/VWAP/MVWAP/EMA calculations to help a trader visually make more informed decisions on entering or exiting a trade, depending on their understanding on what the indicators represent. Paired with a table directly on the chart, it allows a trader to quickly reference values to make more informed decisions without having to look away from the price action or look through multiple indicator outputs.
The main functionality of the indicator is controlled within the settings directly on the chart. There a user can enable the visual representations, or disable, and configure how they are displayed on the charts by altering their values or style types.
Users have the ability to enable/disable visual representations of:
The indicator chart
RSI Cross-over and RSI Reversals
MACD Uptrends and Downtrends
VWAP Cross-overs and Cross-unders
VWAP Line
MVWAP Cross-overs and Cross-unders
MVWAP Line
EMA Cross-overs and Cross-unders
EMA Line
Some traders like to use these visual indications as thresholds to enter or exit trades. Its best to find out which ones work the best with the security you are trying to trade. Personally, I use the table as a reference in conjunction with the RSI chart indicators to help me decide a logical trailing stop if I am scalping. Some users might like the track EMA200 crossovers, and have visual representations on the chart for when that happens. However, users may use the other indicators in other methods, and this script provides the ability to be able to configure those both visually and by value.
The pine script code is open source and itself is fairly straightforward, it is mostly written to provide the ultimate level of control the the user of the various indicators. Please reach out to me directly if you would like a further understanding of the code and an explanation on anything that may be unclear.
Enjoy :)
-dead1.
TSI Market Timer + Volatility MeterThis is the TSI Market Timer. It is years in the making and it is comprised of four indicators in one. The stock (or source) is run through an indicator called the True Strength Indicator with settings(5,15) , then the TSI is run on both the Index(SPY) by default and what I call a Trigger line which is basically the TSI applied to the DXY (US Dollar Index).
Midline Volatility Indicator:
Lastly, we have a volatility indicator on the midline. The colors of the midline indicate levels of volatility. For the lowest volatility in the last 100 days, the dot turns dark blue. For the lowest volatility in 30 days, the dot turns aqua. For regular volatility, it remains orange. And last, for higher volatility of the last 100 days, it turns red. These are more or less arbitrary but they do come in handy.
Settings for Green/Red Shading:
Next on the indicator are the settings. You can toggle a color change between the stock/source and the index(spy). If the stock/source is greater than the index, it will color the area in between a green and if it is below the index, it will be red.
There is also a toggle for the stock/source and the trigger/DXY. This will also show green when the stock is above the trigger and red if it is below the trigger.
By turning on both of these, you get light green and dark green areas as well as red and darker red areas. The lighter green represent when the stock is above both the index and the trigger and conversely for the red areas.
Settings for vertical line crossings:
When the stock crosses the trigger/dxy line, it shows a green vertical line signal. When the stock crosses below the trigger/dxy, a red vertical line is shown.
You can turn these off by toggling them in the settings.
Stacked Condition:
Lastly, we have a "stacked condition" which shows up as a white triangle at the bottom when the condition of the stock being above the index and the trigger below the zero line.
New Highs:
If you see the stock line turn lime green, this indicates a new high was reached for the last 255 days/periods. This is like a new 52 week high signal.
Note:
This indicator is made mostly for the stock market. It may work ok during the week for crypto but using the trigger/dxy and index lines on the weekends doesn't work too well as they will be flat.
Also note that this indicator is not a recommendation to buy or sell any stock/instrument. It is only a study of market conditions. Any analysis should be followed up with volume analysis or other confirming indicators.
Fisher Transform RevisitedFisher Transform developped by Ehlers is used mostly to detect peaks and troughs, which it does with little lag, but there are many false signals. Looking at its formula and construction, we can revisit it for the purpose of detecting trends and flat market.
How do we want to do that? There are 3 different actions:
Increase the default value from usual 9 or 10 to 30
Show the indicator as seen from upper time frame with synthetic rolling candles
Change the weights in first formula in order to saturate the input signal, push the trend data to the limits, so therefore leaving a good view when market is flat
As can be seen from the chart above, the revisited Fisher is above 2 for uptrend markets, below -2 for downtrending markets and in-between when the market is flat.
Notes
Weights for Fisher transform formula can be changed as parameters. Recommended valeus are 0.6 and 0.6 to saturate signal. You may come back to original formula by setting 0.33 and 0.66.
Parameter n allows view from upper time, a multiple of current time frame. n = 1 for current chart, n = 5 for 5 minutes view on the 1 min chart
Usage
Of course, it should be not be used in standalone mode. Indicator is for trend traders who can stay away when market is flat. Trend start when indicator goes above 2 but like all trade indicators, it will be late; it is therefore a good idea to change n back to 1 to get a timely entry, to be confirmed of course with other elements of technical analysis.
Dynamic Trend Fusion (DTF)The "Dynamic Trend Fusion" (DTF) indicator is a powerful technical analysis tool for traders. It stands out from other indicators due to its adaptability and ability to provide insights into different trading styles. Users can choose from various trading options such as "Short-term Trading," "Long-term Trading," "Aggressive Short-term," "Conservative Long-term," "Balanced Approach," "High Sensitivity," "Low Sensitivity," "Day Trading," and "Swing Trading." These options allow traders to customize the indicator to suit their specific trading strategies.
DTF combines the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators, normalizing them to a similar scale for a comprehensive view of market conditions. It then calculates a combined value and smoothes it using a moving average.
One of its standout features is the ability to identify bullish and bearish states, which is represented visually on the chart. When the indicator detects a transition from a bullish to a bearish state or vice versa, the color of the line changes.
Additionally, DTF offers alert conditions, notifying users when the market shifts into a bullish or bearish state, allowing for timely decision-making.
In summary, the DTF indicator sets itself apart by providing traders with a versatile tool that can be tailored to various trading styles and offers clear visual signals for trend changes, enhancing trading precision and efficiency.
Multi-data oscillatorThe multi-data oscillator is a tool created to help traders visualize clearly how an oscillator works and moves considering different input parameters.
In this tool, you can choose to visualize the script as the RSI, the CCI, the LOC indicator, a custom-created formula that simply shows the location of the data considering X past values, or the average of all of these three indicators.
In the settings, you can choose both the length of the indicator and the smoothing factor.
Additionally, the indicator has a gradient color that changes considering the deviation and the variance of the different lines used to calculate the average line, displayed with more thickness.
[KVA]nRSIThe nRSI stands as a groundbreaking enhancement of the traditional Relative Strength Index (RSI), specifically engineered for traders seeking a more refined and accurate tool in fast-moving markets.
Customizable Price Change Period (n): Unlike the traditional RSI which solely relies on a fixed period for average gains and losses, the nRSI introduces an additional parameter, n, to calculate price changes.
This adaptation focuses on minimizing market noise, sharpening the indicator's sensitivity to genuine trends and patterns.
Enhanced Signal Precision : By reducing the influence of short-term price spikes and fluctuations, the nRSI delivers a more precise signal. This precision is particularly crucial in volatile market conditions, where traditional indicators may be swayed by transient movements.
Ideal Usage
Strategic Trading Decisions : Ideal for traders who need to filter out insignificant price movements to make more strategic, informed trading decisions.
Reliable Divergence Spotting : Enhanced noise reduction aids in identifying more reliable divergences, key for predicting potential market reversals.
Trend Confirmation : The smoothed RSI, assisted by the moving average, becomes an invaluable tool for confirming the validity of market trends, minimizing false signals.
Detrended Price Rate of ChangeThe Detrended Price Rate of Change is an oscillator developed to help traders identify potential conditions of overbought and oversold markets.
The formula of the oscillator includes both the Detrended price formula, useful to spot divergences, and the Rate of change simplified formula, which helps in identifying overextended markets and gives useful information on price momentum.
Enhanced McClellan Summation Index
The Enhanced McClellan Summation Index (MSI) is a comprehensive tool that transforms the MSI indicator with Heikin-Ashi visualization, offering improved trend analysis and momentum insights. This indicator includes MACD and it's histogram calculations to refine trend signals, minimize false positives and offer additional momentum analysis.
Methodology:
McClellan Summation Index (MSI) -
The MSI begins by calculating the ratio between advancing and declining issues in the specified index.
float decl = 𝘐𝘯𝘥𝘪𝘤𝘦 𝘥𝘦𝘤𝘭𝘪𝘯𝘪𝘯𝘨 𝘪𝘴𝘴𝘶𝘦𝘴
float adv = 𝘐𝘯𝘥𝘪𝘤𝘦 𝘢𝘥𝘷𝘢𝘯𝘤𝘪𝘯𝘨 𝘪𝘴𝘴𝘶𝘦𝘴
float ratio = (adv - decl) / (adv + decl)
It then computes a cumulative sum of the MACD (the difference between a 19-period EMA and a 39-period EMA) of this ratio. The result is a smoothed indicator reflecting market breadth and momentum.
macd(float r) =>
ta.ema(r, 19) - ta.ema(r, 39)
float msi = ta.cum(macd(ratio))
Heikin-Ashi Transformation -
Heikin-Ashi is a technique that uses a modified candlestick formula to create a smoother representation of price action. It averages the open, close, high, and low prices of the current and previous periods. This transformation reduces noise and provides a clearer view of trends.
type bar
float o = open
float h = high
float l = low
float c = close
bar b = bar.new()
float ha_close = math.avg(b.o, b.h, b.l, b.c)
MACD and Histogram -
The Enhanced MSI incorporates MACD and histogram calculations to provide additional momentum analysis and refine trend signals. The MACD represents the difference between the 12-period EMA and the 26-period EMA of the MSI. The histogram is the visual representation of the difference between the MACD and its signal line.
Options:
Index Selection - Choose from TVC:NYA , NASDAQ:NDX , or TVC:XAX to tailor the MSI-HA to the desired market index.
MACD Settings - Adjust the parameters for the MACD calculation to fine-tune the indicator's responsiveness.
Ratio Multiplier - Apply scaling to the MSI to suit different market conditions and indices.
Benefits of Heikin-Ashi -
Smoothed Trends - Heikin-Ashi reduces market noise, providing a more apparent and smoothed representation of trends.
Clearer Patterns - Candlestick patterns are more distinct, aiding in the identification of trend reversals and continuations.
Utility and Use Cases:
Trend & Momentum Analysis - Utilize the tool's Heikin-Ashi visualization for clearer trend identification in confluence with it's MACD and histogram to gain additional insights into the strength and direction of trends, while filtering out potential false positives.
Breadth Analysis - Explore market breadth through the MSI's cumulative breadth indicator, gauging the overall health and strength of the underlying market.
- Alerts Setup Guide -
The Enhanced MSI is a robust indicator that combines the breadth analysis of the McClellan Summation Index with the clarity of Heikin-Ashi visualization and additional momentum insights from MACD and histogram calculations. Its customization options make it adaptable to various indices and market conditions, offering traders a comprehensive tool for trend and momentum analysis.
MACD Pulse CheckThis custom script, titled " MACD Pulse Check ," is a modified and enhanced version of the traditional Moving Average Convergence Divergence (MACD) indicator, commonly used in trading for trend-following and momentum strategies. Here's a breakdown of its features and benefits over the traditional MACD:
Multiple MACD Lines with Different Parameters:
The script calculates six different MACD lines using various combinations of fast, slow, and signal lengths. This diverse range allows for a more comprehensive analysis of the market momentum and trend across different time scales and sensitivities.
Average of MACD Lines:
By averaging these six MACD lines, the script creates a more smoothed and potentially less noisy signal. This can help in reducing false signals and improving the reliability of trend indications.
Sideways Market Detection:
A unique feature of this script is its ability to identify sideways or range-bound markets using a user-defined threshold. This is calculated by comparing the current price to the price five candles ago and seeing if the change is within a certain percentage threshold. Identifying sideways markets is crucial as trend-following strategies like MACD typically perform poorly in these conditions.
Visual and Color-Coded Signals:
The script plots shapes (circles) on the chart, where the color (green for bullish, red for bearish, sideways price action will display as either a dull green or a dull red) quickly indicates the market condition. This visual representation makes it easier to interpret the signals at a glance, and spot sideways price action while still having a general idea of trend.
Benefits for Traders:
Versatility: By averaging multiple MACD lines, traders get a more nuanced view of the market momentum, potentially leading to more informed trading decisions.
Reduced False Signals:
The averaging process and sideways market detection can help in filtering out false or weak signals, which is a common issue with the traditional MACD.
Ease of Use:
The color-coded visual signals simplify the process of identifying market trends and conditions, making the tool accessible even for less experienced traders.
In summary, "MACD Pulse Check" enhances the traditional MACD by providing a more comprehensive, and visually intuitive tool, potentially leading to better trading decisions in varying market conditions. However, it's important to note that no indicator is foolproof and should always be used in conjunction with other analysis methods and sound risk management practices.
MACD_RSI_trend_followingINFO:
This indicator can be used to build-up a strategy for trading of assets which are currently in trending phase.
My preference is to use it on slowly moving assets like GOLD and on higher timeframes, but practice may show that we find more usefull cases.
This script uses two indicators - MACD and RSI, as the timeframe that those are extracted for is configurable (defaults with the Chart TF, but can be any other selected by the user).
The strategy has the following simple idea - buy if any if the conditions below is true:
The selected TF MACD line crosses above the signal line and the TF RSI is above the user selected trigger value
The selected TF MACD line is above the signal line and the TF RSI crosses above the user selected trigger value
Once we're in position we wait for the selected TF MACD line to cross below the signal line, and then we set a SL at the low of that bar
DETAILS and USAGE:
In the current implementation I find two possible use cases for the indicator:
as a stand-alone indicator on the chart which can also fire alerts that can help to determine if we want to manually enter/exit trades based on them
can be used to connect to the Signal input of the TTS (TempalteTradingStrategy) by jason5480 in order to backtest it, thus effectively turning it into a strategy (instructions below in TTS CONNECTIVITY section)
In the example below we see a position opened at the bar after the buy indicator from the script has been triggered, and then later after the SL indicator from the script has been triggered a SL has been set on the lower wick of the closing candle, and the position eventually got closed once the price hit that level. Note that most of the drawing on the example snapshot below are from the TTS indicator following the buy/sell/SL conditions themseves:
Trading period can be selected from the indicator itself to limit to more interesting periods.
Arrow indications are drawn on the chart to indicate the trading conditions met in the script - green arrow for a buy signal indication and orange for LTF crossunder to indicate setting of SL.
SETTINGS:
Leaving all of the settings as in vanilla use case, as both the MACD and RSI indicator's settings follow the default ones for the stand-alone indicators themselves.
The start-end date is a time filter that can be extermely usefull when backtesting different time periods.
Pesonal preference is using the script on a D/W timeframe, while the indicator is configured to use Monthly chart.
The default value of the RSI filter is left to 50, which can be changed. I.e. if the RSI is above 50 we have a regime filter based on the MACD criteria.
EXTERNAL LIBRARIES:
The script uses a couple of external libraries:
HeWhoMustNotBeNamed/enhanced_ta/14 - collection of TA indicators
jason5480/tts_convention/3 - more details about the Template Trading Strategy below
I would like to highly appreciate and credit the work of both HeWhoMustNotBeNamed and jason5480 for providing them to the community.
TTS SETTINGS (NEEDED IF USED TO BACKTEST WITH TTS):
The TempalteTradingStrategy is a strategy script developed in Pine by jason5480, which I recommend for quick turn-around of testing different ideas on a proven and tested framework
I cannot give enough credit to the developer for the efforts put in building of the infrastructure, so I advice everyone that wants to use it first to get familiar with the concept and by checking
by checking jason5480's profile www.tradingview.com
The TTS itself is extremely functional and have a lot of properties, so its functionality is beyond the scope of the current script -
Again, I strongly recommend to be thoroughly epxlored by everyone that plans on using it.
In the nutshell it is a script that can be feed with buy/sell signals from an external indicator script and based on many configuration options it can determine how to execute the trades.
The TTS has many settings that can be applied, so below I will cover only the ones that differ from the default ones, at least according to my testing - do your own research, you may find something even better :)
The current/latest version that I've been using as of writing and testing this script is TTSv48
Settings which differ from the default ones:
from - False (time filter is from the indicator script itself)
Deal Conditions Mode - External (take enter/exit conditions from an external script)
🔌Signal 🛈➡ - MACD_RSI_trend_following: 🔌Signal to TTSv48 (this is the output from the indicator script, according to the TTS convention)
Sat/Sun - true (for crypto, in order to trade 24/7)
Order Type - STOP (perform stop order)
Distance Method - HHLL (HigherHighLowerLow - in order to set the SL according to the strategy definition from above)
The next are just personal preferenes, you can feel free to experiment according to your trading style
Take Profit Targets - 0 (either 100% in or out, no incremental stepping in or out of positions)
Dist Mul|Len Long/Short- 10 (make sure that we don't close on profitable trades by any reason)
Quantity Method - EQUITY (personal backtesting preference is to consider each backtest as a separate portfolio, so determine the position size by 100% of the allocated equity size)
Equity % - 100 (note above)
Dual_MACD_trendingINFO:
This indicator is useful for trending assets, as my preference is for low-frequency trading, thus using BTCUSD on 1D/1W chart
In the current implementation I find two possible use cases for the indicator:
- as a stand-alone indicator on the chart which can also fire alerts that can help to determine if we want to manually enter/exit trades based on the signals from it (1D/1W is good for non-automated trading)
- can be used to connect to the Signal input of the TTS (TempalteTradingStrategy) by jason5480 in order to backtest it, thus effectively turning it into a strategy (instructions below in TTS CONNECTIVITY section)
Trading period can be selected from the indicator itself to limit to more interesting periods.
Arrow indications are drawn on the chart to indicate the trading conditions met in the script - light green for HTF crossover, dark green for LTF crossover and orange for LTF crossunder.
Note that the indicator performs best in trending assets and markets, and it is advisable to use additional indicators to filter the trading conditions when market/asset is expected to move sideways.
DETAILS:
It uses a couple of MACD indicators - one from the current timeframe and one from a higher timeframe, as the crossover/crossunder cases of the MACD line and the signal line indicate the potential entry/exit points.
The strategy has the following flow:
- If the weekly MACD is positive (MACD line is over the signal line) we have a trading window.
- If we have a trading window, we buy when the daily macd line crosses AND closes above the signal line.
- If we are in a position, we await the daily MACD to cross AND close under the signal line, and only then place a stop loss under the wick of that closing candle.
The user can select both the higher (HTF) and lower (LTF) timeframes. Preferably the lower timeframe should be the one that the Chart is on for better visualization.
If one to decide to use the indicator as a strategy, it implements the following buy and sell criterias, which are feed to the TTS, but can be also manually managed via adding alerts from this indicator.
Since usually the LTF is preceeding the crossover compared to the HTF, then my interpretation of the strategy and flow that it follows is allowing two different ways to enter a trade:
- crossover (and bar close) of the macd over the signal line in the HIGH TIMEFRAME (no need to look at the LOWER TIMEFRMAE)
- crossover (and bar close) of the macd over the signal line in the LOW TIMEFRAME, as in this case we need to check also that the macd line is over the signal line for the HIGH TIMEFRAME as well (like a regime filter)
The exit of the trade is based on the lower timeframe MACD only, as we create a stop loss equal to the lower wick of the bar, once the macd line crosses below the signal line on that timeframe
SETTINGS:
All of the indicator's settings are for the vanilla/general case.
User can set all of the MACD parameters for both the higher and lower (current) timeframes, currently left to default of the MACD stand-alone indicator itself.
The start-end date is a time filter that can be extermely usefull when backtesting different time periods.
TTS SETTINGS (NEEDED IF USED TO BACKTEST WITH TTS)
The TempalteTradingStrategy is a strategy script developed in Pine by jason5480, which I recommend for quick turn-around of testing different ideas on a proven and tested framework
I cannot give enough credit to the developer for the efforts put in building of the infrastructure, so I advice everyone that wants to use it first to get familiar with the concept and by checking
by checking jason5480's profile www.tradingview.com
The TTS itself is extremely functional and have a lot of properties, so its functionality is beyond the scope of the current script -
Again, I strongly recommend to be thoroughly epxlored by everyone that plans on using it.
In the nutshell it is a script that can be feed with buy/sell signals from an external indicator script and based on many configuration options it can determine how to execute the trades.
The TTS has many settings that can be applied, so below I will cover only the ones that differ from the default ones, at least according to my testing - do your own research, you may find something even better :)
The current/latest version that I've been using as of writing and testing this script is TTSv48
Settings which differ from the default ones:
- from - False (time filter is from the indicator script itself)
- Deal Conditions Mode - External (take enter/exit conditions from an external script)
- 🔌Signal 🛈➡ - Dual_MACD: 🔌Signal to TTSv48 (this is the output from the indicator script, according to the TTS convention)
- Sat/Sun - true (for crypto, in order to trade 24/7)
- Order Type - STOP (perform stop order)
- Distance Method - HHLL (HigherHighLowerLow - in order to set the SL according to the strategy definition from above)
The next are just personal preferenes, you can feel free to experiment according to your trading style
- Take Profit Targets - 0 (either 100% in or out, no incremental stepping in or out of positions)
- Dist Mul|Len Long/Short- 10 (make sure that we don't close on profitable trades by any reason)
- Quantity Method - EQUITY (personal backtesting preference is to consider each backtest as a separate portfolio, so determine the position size by 100% of the allocated equity size)
- Equity % - 100 (note above)
EXAMPLES:
If used as a stand-alone indicator, the green arrows on the bottom will represent:
- light green - MACD line crossover signal line in the HTF
- darker green - MACD line crossover signal line in the LTF
- orange - MACD line crossunder signal line in the LTF
I recommend enabling the alerts from the script to cover those cases.
If used as an input to the TTS, we'll get more decorations on the chart from the TTS itself.
In the example below we open a trade on the next day of LTF crossover, then a few days later a crossunder in the LTF occurs, so we set a SL at the low of the wick of this day. Few days later the price doesn't recover and hits that SL, so the position is closed.
K`s Extreme DurationExtreme duration uses a special combination of the RSI and its relative position to deliver a reversal signal.
The following are the conditions to generate signals:
* Bullish signal: The current 8-period RSI is below 50 and above 35 while the previous 5 RSI's are below 35.
* Bearish signal: The current 8-period RSI is above 50 and below 65 while the previous 5 RSI's are above 65.
MACD_base_and_reference_TF//====================================================================================================================
The "MACD_with_reference" indicator aims to illustrate the MACD (Moving Average Convergence Divergence) on two distinct timeframes: the base timeframe (typically the chart's timeframe, e.g., 1D) and the reference timeframe (defaulted to 1W). This tool provides a means to determine momentum shifts within the stock, potentially guiding traders in adjusting or trimming positions.
// ================================================== INFO ==================================================
Key Features of the Indicator:
- Dual Timeframe MACD: Displays MACD on both the primary (base) and higher (reference) timeframes - transparent.
- Momentum Analysis: indication of MACD crossdown of the signal line on the refenence TF to indicate momentum loss on the higher timeframe, guiding decisions to manage positions.
- MACD Line Status: Beneath the chart, a red/green bar line signifies the MACD line's position relative to the signal line on the higher timeframe.
- Alert Creation: Allows for alerts on the MACD and signal line crossdown on the higher timeframe, aiding in planning stop-loss settings for owned stocks.
// ================================================== NOTES ==================================================
The "MACD_with_reference" indicator finds optimal usage in several scenarios:
- Chart Analysis: Replacing the MACD indicator during chart reviews.
- Alert Setup: Setting alerts for owned stocks to plan ahead for stop-loss placements or position closures.
// ================================================== TODO ==================================================
//#endregion ========================================================================================================
// Continue the script code...
Fisher+ [OSC]The Fisher Transform Indicator is classified as an oscillator, meaning that its value swings above and below a central point. This characteristic allows traders to identify overbought and oversold conditions, providing potential clues about market reversals. As mentioned previously, it is an oscillator so the strength of the move is displayed by how long the fisher line stays above/below zero. Indicator can be used to aid in confluence near supply/demand zones.
White Line = Fisher
Red/Blue Line = Moving Average
--Changes color whether fisher line is above/below the MA
Red/Blue Shaded Line = Moving Average
--Changes color based on a smoothing factor
Red/Blue Shaded Fill = Asset in Overbought/Oversold Conditions
Red/Blue Circles = Asset in Extreme Overbought/Oversold Conditions
Red/Blue Triangles = MACD Signals Below/Above "0"
Divergence Labels = Asset Signaling Divergence
The moving average line will turn red/blue as long as the fisher line is below/above the moving average. The shaded MA line will switch colors based on if it is moving in an up/down trend. The MA can also be used as a signal and treated similar to an oscillator. Market trending conditions will either keep the MA below/above the dashed zero line.
MACD code credited to LazyBear's MACD Leader indicator. It is used to filter out/confirm any signals such as divergences. As long as the MACD Leader line is above both the MACD line and signal lines then it'll signal with with a triangle. MACD divergences will be added at a later time.
Spot-Vol CorrelationSpot-Vol Correlation Script Guide
Purpose:
This TradingView script measures the correlation between percentage changes in the spot price (e.g., for SPY, an ETF that tracks the S&P 500 index) and the changes in volatility (e.g., as indicated by the VIX, the Volatility Index). Its primary objective is to discern whether the relationship between spot price and volatility behaves as expected ("normal" condition) or diverges from the expected pattern ("abnormal" condition).
Normal vs. Abnormal Correlation:
Normal Correlation: Historically, the VIX (or volatility) and the spot price of major indices like the S&P 500 have an inverse relationship. When the spot price of the index goes up, the VIX tends to go down, indicating lower volatility. Conversely, when the index drops, the VIX generally rises, signaling increased volatility.
Abnormal Correlation: There are instances when this inverse relationship doesn't hold, and both the spot price and the VIX move in the same direction. This is considered an "abnormal" condition and might indicate unusual market dynamics, potential uncertainty, or impending shifts in market sentiment.
Using the Script:
Inputs:
First Symbol: This is set by default to VIX, representing volatility. However, users can input any other volatility metric they prefer.
Second Symbol: This is set to SPY by default, representing the spot price of the S&P 500 index. Like the first symbol, users can substitute SPY with any other asset or index of their choice.
Length of Calculation Period: Users can define the lookback period for the correlation calculation. By default, it's set to 10 periods (e.g., days for a daily chart).
Upper & Lower Bounds of Normal Zone: These parameters define the range of correlation values that are considered "normal" or expected. By default, this is set between -0.60 and -1.00.
Visuals:
Correlation Line: The main line plot shows the correlation coefficient between the two input symbols. When this line is within the "normal zone", it indicates that the spot price and volatility are inversely correlated. If it's outside this zone, the correlation is considered "abnormal".
Green Color: Indicates a period when the spot price and VIX are behaving as traditionally expected (i.e., one rises while the other falls).
Red Color: Denotes a period when the spot price and VIX are both moving in the same direction, which is an abnormal condition.
Shaded Area (Normal Zone): The area between the user-defined upper and lower bounds is shaded in green, highlighting the range of "normal" correlation values.
Interpretation:
Monitor the color and position of the correlation line relative to the shaded area:
If the line is green and within the shaded area, the market dynamics are as traditionally expected.
If the line is red or outside the shaded area, users should exercise caution as this indicates a divergence from typical behavior, which can precede significant market moves or heightened uncertainty.
S/R and Reversal BarsToday I'm proposing an idea to form S/R with a slightly different basic idea. This is a combination of CCI and candlestick study, and we will use this to mark possible reversal candles and possible S/R lines.
This is nothing complicated, I've used a basic CCI indicator with certain rules/system to mark S/R levels on the chart. (Have loaded traditional CCI indicator on bottom for comparison)
S/R levels are market as followed
Cross -
Lime = Support
Red = Resistance
Zero/Balance line - Yellow circles
The idea is to use this indicator to trade sideways market more successfully, in trending market this can be futile if you are not waiting for the break-out or breakdowns with confirmation.
Since this is based on CCI, it will give static result only when bar is closed, till then it will be susceptible for repaint. This is inherited nature from CCI readings on current bar. I could change this to only making reading on closed bar (historical bar), but that takes away from the uniqueness of this indicator in giving early indications.
This is a great tool for intraday scalping, but it does work on all timeframes, it's not bound by granularity.
This is for education purpose only.
Past success or seemingly positive results on published posts are not indication of future success.
TASC 2023.11 VAcc█ OVERVIEW
The November 2023 edition of TASC's Traders' Tips features an article titled "VAcc: A Momentum Indicator Based On Velocity And Acceleration" by Scott Cong. This script implements the author's momentum indicator based on simple physics concepts.
█ CONCEPTS
The indicator is named VAcc as it is derived from the average velocity (V) and acceleration (Acc) over a specified lookback period. Consequently, its readings reflect two valuable characteristics of price data: rate (indicating the speed at which the price is moving) and rate of change (indicating whether the price is speeding up or slowing down).
In the article, the author reports that for longer periods, VAcc behaves similarly to the MACD , albeit with a more responsive nature. For shorter periods, VAcc exhibits characteristics reminiscent of the stochastic oscillator , but it trends more prominently and is less prone to overbought/oversold saturation.
To incorporate VAcc into trading strategies, the author suggests considering the following two permutations for the velocity and acceleration data series:
Strong upward condition: Velocity is rising, and acceleration is rising above zero.
Strong downward condition: Velocity is falling, and acceleration is falling.
In the current implementation, the chart displays the average velocity as a line, while the average acceleration is presented as a histogram.
█ CALCULATIONS
The calculation of VAcc involves the following steps:
For the current closing price, C , and for each bar C (i) within a specified lookback period from the current bar, the script calculates velocities, V (i) = ( C - C (i))/i. These velocities are then subjected to an exponential moving average to obtain the smoothed average velocity.
Similarly, for each bar within the lookback period, accelerations are calculated as Acc (i) = ( V - V (i))/i and then averaged without smoothing.
