[SGM Ordinal Patterns]An ordinal pattern is a concept used in mathematics and time series analysis. It is a way of describing the relative order of values in a sequence. Rather than focusing on the exact values, we are interested in how they compare to each other.
An ordinal pattern will tell you how these values are positioned relative to each other.
We do not look at the exact values, but only their order.
Concrete Example
• 4 (position 1 in the original sequence) is in position 2 in the ordered sequence.
• 7 (position 2 in the original sequence) is in position 3 in the ordered sequence.
• 2 (position 3 in the original sequence) is in position 1 in the ordered sequence.
The ordinal pattern for this sequence is then (2,3,1)(2, 3, 1)(2,3,1).
Script Explanation
This script analyzes ordinal patterns based on the closing prices of the last three bars and calculates the future gains associated with each ordinal pattern.
The main elements of the script are:
1. ordinal_pattern Function:
o Determines the ordinal pattern based on three past closing values.
o Returns an index (from 0 to 5) corresponding to one of the six possible ordinal patterns.
2. Calculations and Storage:
o For each new bar, the last three closes are used to identify the ordinal pattern.
o Future gains are calculated and associated with the previous ordinal pattern.
o Return statistics (mean, standard deviation and Sharpe ratio) are calculated for each pattern.
3. Visualization:
o Draws lines connecting the last three closes.
o Tables displaying the number of occurrences, distributions, and return statistics for each ordinal pattern.
What the Script Shows:
• Table motifs_table : Number of occurrences and distribution of each ordinal pattern. An uneven distribution between patterns (different by one sixth for each pattern) can indicate market inefficiency.
• Table pattern_analysis : Analysis of returns (mean, standard deviation, Sharpe ratio) for each ordinal pattern.
• Table current_motif_table : Ordinal pattern of the last bar.
This script helps to understand and visualize how ordinal patterns influence future returns of financial asset prices. An uneven distribution of patterns can indicate market inefficiencies.
Chart patterns
NOVO ALGO - Starry SkyGeneral Description:
This indicator provides the possible buy and sell entry with the estimated risk and its corresponding Stop Loss (SL) value.
It has originally developed for 1-min chart and works the best on this time-frame. It may work on the other time-frames, but its profitability has not been checked. So, I would rather recommend to use and apply it only on 1-min chart.
Novelty of the indicator:
Trading in 1-min chart consists of dealing with so many small swings and price variations which are very local and does not affect the general trend even in the 5-min time frame.
We call these small price variations and swings 'Noise'.
The novelty of the indicator is in a parameter which we call the Noise Level and filtering length.
It has been widely used in the Fluid Dynamics and in the Large Eddy Simulations where small noises of flow is removed by a dynamic filter.
In this indicator, we have tried to incorporate the same idea but in the price trend detection.
For the current version, we have used a less tolerance for noise level which results in much less signals compared to the full capacity of the indicator. It roughly sends out around 10-15% of the total confirmed positions.
How it detects the entry positions
To define the entry point, 5 main properties are considered and checked at 3 main time frames including 1-min, 5-min, and 15-min.
These time-frames are selected based on the fact that the target chart is in 1-min.
The 5 properties evaluated are:
1- Smooth Moving Average
2- Bollinger Band
3- Price Regression
4- Candle Pattern
5- Volume
Detailed Description:
Detect a possible entry by Smooth Moving Average:
- At each time frame, 3 lengths are considered to calculate the price moving average values; i.e. short, medium and long lengths.
- The interaction of these MAs, of course, defines the local trend of the price generally. It also provides an idea about the strength of the trend.
- The information calculated at 1-min time frame triggers the possible buy/sell. However, it waits until getting confirmation from the upper time frame (5-min).
- We use the MAs of 15-min time frame to define the general dominant price trend and stop reverse signals when the trend is fully dominant in one direction.
When a possible entry position is triggered by the MAs, at that very price bar we calculate the noise level.
If the noise level is higher than a certain predefined value, then the signal is rejected. Otherwise the signal gets out.
The threshold we use to define if a signal is noisy or not is normalized so it can be used without any concern at different markets.
We believe the calculations and ideas behind the Noise Level is what makes this indicator unique and practical.
We define the noise level parameter based on the following properties:
1- Smooth Moving Average at upper time frame (basically 15-min):
If a possible signal is against the trend of the upper time-frame, the noise level is increased.
If it is in the direction of the upper time-frame trend, then the noise level is untouched.
As already mentioned, different lengths are used. So, as the length of MA is larger its impact on the noise level is considered higher.
2- Bollinger Band of upper time frames (5-min and 15-min)
We employ bollinger bands to define 4 regions.
1. Above the upper band
2. Between middle and upper band
3. Between Lower and middle bands
4. Below the lower band
Then use these 4 regions along with the candle position and price regression.
For example, if the price regression line and candle position are on the same region of BB, then we assume less possibility for reverse or strong trend.
Consequently, we increase the noise level parameter. On the other hand, if they belong to two different region, we assume more possibility for big price change, and so we lower the noise level.
3- Price Regression
We use average price regression line to filter out very small swings in the price. We have also set a criterion of continuity for the regression line that ensures small price variation and swings are left out and filtered.
This will come with the sot of delay in the confirmation of signal, but we found it very important to remove very small swings of price that, for example, consists of only few bars in 1-min chart.
We have also used the position of the regression line along with the regions defied by BBs to evaluate the strength of a newly detected trend.
As candles will always reach to the regression at some point, if a possible entry is detected and the regression line and candles belong to two different region, we assume a strong price change. But if they belong to the same region, we increase the noise level and will assume that it might be a small swing.
4- Candle Pattern
We assumed several rules for candles shape and prices to define if a price movement is strong or it is just a small swing. For example we expect the price to be increase in the last 2-3 candles if we should call a entry for long position.
These set of self-made rules have been extracted by using the visual inspections of the price movement. This has been done much more advanced for long entry position which has resulted in more long signals by the indicator.
5- Volume
We use volume of trades in 1-min, 5-min, and 15-min to evaluate the strength of the trend. We use both absolute and what we call directional volume! The directional volume is the volume with the sign of the candle. This helps us to know if the reverse trend supported by enough volume or it is just a small swing.
For example, if the directional volume of 1-min can surpass the 5-min directional volume, this indicates to us that the importance of 5-min data and its validity is less. So, more focus will be put on the 1-min volume data and the direction it indicates.
Money Management:
Profit calculation: the profit is calculated based on the user defined leverage (default 100x). The user has the option to change the buy/sell leverages to the desired values.
Risk assessment: The user has the option to adjust the risk of the trades. Then the SL value will be calculated for each trade according to the defined risk value.
If a value of zero is set for the risk, then the indicator will define the local SL of each trade based on the pivot point.
As in 1-min trading, the prices are noise and include several small swings and consequently several minor pivot points, we filtered the pivot points that belong to the super small swings detected by our noise level indicator.
Suggestion
I found it more profitable to make the trades risk-free when their profits passes 10% (with leverage 100x). Then, readjust the TP of trades if the trend is in the direction of the position.
I would recommend to observe the performance of the indicator for a day or two, before actually trading with its signals. This will help to have a better understanding of the leverage and risk you may apply.
Bullish Breakout After ConsolidationDescription:
The Bullish Breakout After Consolidation Indicator is designed to help traders identify potential bullish breakout opportunities following a period of tight price consolidation. This indicator combines price action and volume analysis to signal when a stock may experience a significant upward movement.
Features:
Consolidation Range Tightness: The indicator identifies periods where the stock price consolidates within a narrow range, defined as a range less than 2% of the lowest low during the consolidation period. This tight consolidation is often a precursor to strong price movements.
Breakout Detection: Once the price breaks above the highest high of the consolidation range, and this breakout occurs after a specified number of days post-consolidation, the indicator marks it as a potential breakout opportunity.
Volume Confirmation: To avoid false breakouts, the indicator requires increased trading volume during the breakout. This ensures that the breakout is supported by substantial market activity.
Visual Cues:
Breakout Label: A "Breakout" label appears above the bar where a valid breakout occurs, making it easy to spot potential entry points.
Support and Resistance Lines: Horizontal lines plot the highest high (resistance) and lowest low (support) during the consolidation period, helping traders visualize the breakout levels.
Moving Averages: Optional 20-day and 50-day simple moving averages are plotted for additional trend confirmation.
How to Use:
Apply the Indicator: Add the indicator to your chart in TradingView to start analyzing potential breakouts.
Observe Consolidation: Look for tight consolidation periods where the price trades within a narrow range.
Identify Breakouts: Watch for breakouts where the price moves above the highest high of the consolidation range, supported by increased volume.
Confirm with Labels: The "Breakout" label will help you quickly identify valid breakout signals.
Parameters:
Consolidation Length: Number of days to consider for consolidation.
Range Percentage: Maximum percentage range for consolidation tightness.
Days After Consolidation: Number of days post-consolidation to check for the breakout.
Note: As with any trading tool, it is important to use this indicator as part of a broader trading strategy and in conjunction with other forms of analysis.
Disclaimer: This indicator is provided for educational purposes and should not be construed as financial advice. Trading involves risk and may not be suitable for all investors.
Entropy Volatility Index [CHE]I Entropy Volatility Index (EVI)
II An Experimental Script for Measuring Market Volatility
III Introduction
The Entropy Volatility Index (EVI) is an experimental indicator based on concepts from thermodynamics and information theory. The goal of the EVI is to quantify market uncertainty and volatility by calculating the entropy of price changes.
IV Basic Concepts
Entropy in Thermodynamics
Entropy is a measure of disorder or randomness in a system.
The second law of thermodynamics states that entropy in a closed system tends to increase over time.
Entropy in Information Theory
In information theory, entropy measures the uncertainty or information content of a random variable.
The entropy H of a random variable X with probability distribution P(x) is calculated as:
H(X) = -∑ P(x) log P(x)
V Derivation of the EVI
Calculation of Price Changes
Absolute price changes are calculated to serve as the basis for probability calculations.
Creation of the Histogram
A histogram is created and initialized to count the frequency of price changes.
Updating the Histogram
The histogram is updated by counting the frequency of each price change.
Calculation of Probabilities
The probabilities of the price changes are calculated based on their frequencies in the histogram.
Calculation of Entropy
Entropy is calculated using the probabilities of price changes. Higher entropy indicates higher uncertainty or disorder in the market.
Plotting the Indicator
The EVI is plotted to visually represent market volatility and uncertainty.
VI Interpretation of the EVI
High EVI Values
High Volatility: Strong and irregular price movements.
High Uncertainty: Increased market uncertainty.
Possible Market Turning Points: Indicators of potential trend changes.
Low EVI Values
Low Volatility: More consistent and predictable price movements.
Stability: More stable market phases.
Trend Consistency: Indicators of stable trends or sideways movements.
VII Conclusion
The Entropy Volatility Index (EVI) is an experimental script that applies concepts from thermodynamics and information theory to measure market volatility. It offers a new perspective on market uncertainty and can be used as an additional tool for traders.
VIII Example Use Cases
Identifying Volatile Phases: Use the EVI to identify periods of high volatility and prepare for potential rapid price movements.
Risk Management: Adjust your risk management strategy based on the EVI. During high EVI periods, consider hedging positions or adjusting position sizes.
Complementing Other Indicators: Combine the EVI with other technical indicators (e.g., RSI, MACD) for a more comprehensive view of market conditions.
I hope this experimental script provides valuable insights. Thank you for your feedback and suggestions for improvement.
Best regards,
Chervolino
Moving Average Confluence [ST]Moving Average Confluence
Description in English:
This indicator uses multiple moving averages (SMA, EMA, WMA) with different periods to identify confluence points that can indicate support or resistance zones.
Detailed Explanation:
Configuration:
SMA Length: This input defines the period for the Simple Moving Average (SMA). The default value is 50.
EMA Length: This input defines the period for the Exponential Moving Average (EMA). The default value is 50.
WMA Length: This input defines the period for the Weighted Moving Average (WMA). The default value is 50.
Confluence Threshold: This input defines the maximum allowable difference between the moving averages to consider them in confluence. The default value is 0.01.
Calculation of Moving Averages:
SMA: Calculated as the simple arithmetic mean of the closing prices over the specified period.
EMA: Calculated by giving more weight to recent prices.
WMA: Calculated by weighting the closing prices based on their age.
Identification of Confluence:
Confluence is identified when the differences between SMA, EMA, and WMA are all within the specified threshold. This can indicate potential support or resistance zones.
Plotting:
The SMA, EMA, and WMA are plotted with different colors for easy identification.
Confluence points are marked with yellow labels on the chart.
Indicator Benefits:
Support and Resistance Identification: Helps traders identify potential support and resistance zones through the confluence of different moving averages.
Visual Cues: Provides clear visual signals for confluence points, aiding in making informed trading decisions.
Customizable Parameters: Allows traders to adjust the periods of the moving averages and the confluence threshold to suit different trading strategies and market conditions.
Justification of Component Combination:
Combining multiple types of moving averages (SMA, EMA, WMA) provides a comprehensive view of market trends. Identifying confluence points where these averages are close together can indicate strong support or resistance levels.
How Components Work Together:
The script calculates the SMA, EMA, and WMA for the specified periods.
It then checks if the differences between these moving averages are within the specified threshold.
When a confluence is detected, it is marked on the chart with a yellow label, providing a clear visual signal to the trader.
Título: Confluência de Médias Móveis
Descrição em Português:
Este indicador utiliza várias médias móveis (SMA, EMA, WMA) com diferentes períodos para identificar pontos de confluência que podem indicar zonas de suporte ou resistência.
Explicação Detalhada:
Configuração:
Comprimento da SMA: Este parâmetro define o período para a Média Móvel Simples (SMA). O valor padrão é 50.
Comprimento da EMA: Este parâmetro define o período para a Média Móvel Exponencial (EMA). O valor padrão é 50.
Comprimento da WMA: Este parâmetro define o período para a Média Móvel Ponderada (WMA). O valor padrão é 50.
Limite de Confluência: Este parâmetro define a diferença máxima permitida entre as médias móveis para considerá-las em confluência. O valor padrão é 0.01.
Cálculo das Médias Móveis:
SMA: Calculada como a média aritmética simples dos preços de fechamento ao longo do período especificado.
EMA: Calculada atribuindo mais peso aos preços mais recentes.
WMA: Calculada ponderando os preços de fechamento com base em sua idade.
Identificação de Confluência:
A confluência é identificada quando as diferenças entre SMA, EMA e WMA estão todas dentro do limite especificado. Isso pode indicar potenciais zonas de suporte ou resistência.
Plotagem:
A SMA, EMA e WMA são plotadas com cores diferentes para fácil identificação.
Pontos de confluência são marcados com etiquetas amarelas no gráfico.
Benefícios do Indicador:
Identificação de Suporte e Resistência: Ajuda os traders a identificar potenciais zonas de suporte e resistência através da confluência de diferentes médias móveis.
Sinais Visuais Claros: Fornece sinais visuais claros para pontos de confluência, auxiliando na tomada de decisões informadas.
Parâmetros Personalizáveis: Permite que os traders ajustem os períodos das médias móveis e o limite de confluência para se adequar a diferentes estratégias de negociação e condições de mercado.
Justificação da Combinação de Componentes:
Combinar vários tipos de médias móveis (SMA, EMA, WMA) fornece uma visão abrangente das tendências do mercado. Identificar pontos de confluência onde essas médias estão próximas pode indicar níveis fortes de suporte ou resistência.
Como os Componentes Funcionam Juntos:
O script calcula a SMA, EMA e WMA para os períodos especificados.
Em seguida, verifica se as diferenças entre essas médias móveis estão dentro do limite especificado.
Quando uma confluência é detectada, ela é marcada no gráfico com uma etiqueta amarela, fornecendo um sinal visual claro para o trader.
Reversal Finder [SMRT Algo]The Reversal Indicator is designed for traders who use contrarian strategies, focusing on identifying potential reversal points in the market. This indicator leverages mean and deviation calculations, along with bar pattern movements, to provide insights into price movements and potential turning points.
Features:
The Reversal Indicator is tailored for contrarian trading, which involves taking positions against the trend to capitalize on potential reversals. This approach is inherently riskier, as it aims to identify precise highs and lows in the market.
Configurable Sensitivity: Traders can adjust the sensitivity of the indicator, which determines how many confirmation candles are required before a signal is generated. Higher sensitivity values mean more confirmation candles, resulting in later but more reliable signals. This feature allows traders to balance between early entries and signal accuracy.
Separate Buy & Sell Sensitivities: Buy and sell sensitivities can be adjusted separately which provides greater flexibility, enabling traders to fine-tune the indicator based on market conditions or personal trading preferences.
Reversal Bands: The indicator features color-coded bands (green, yellow, red) that represent different levels of price overextension. The dynamic nature of these bands, which adjust based on real-time market data, provides a constantly updated visual representation of potential reversal zones.
- Green Band: Indicates the initial phase where price is starting to get overextended.
- Yellow Band: Suggests a moderate level of overextension.
- Red Band: Signals a high likelihood of reversal due to significant overextension.
Signal Generation: The indicator only searches for buy or sell signals when the price enters these reversal bands, thereby focusing on zones with a higher probability of a reversal.
Take Profit (TP) & Stop Loss (SL) Features: The indicator includes predefined TP and SL levels, calculated based on a risk-to-reward ratio with respect to the stop loss. For instance, TP1 corresponds to a 1:1 ratio, up to TP3, allowing traders to manage risk effectively and set realistic profit targets.
Band-Based Take Profit: In addition to standard TP levels, traders can use the reversal bands themselves as take profit zones, targeting the green, yellow, or red areas to close trades. This dual-layered approach provides more nuanced trade management options.
Alert System: The indicator allows traders to set alerts for when signals are generated, ensuring they do not miss potential trading opportunities.
A signal is generate when we have x-consecutive bullish/bearish bars for a buy or sell signal respectively. This is what the 'Sensitivity' input controsl for in the settings. A signal is only generated when price enters the deviation bands, as those are areas where a reversal is of higher probability.
The Reversal indicator uses mean and deviation calculations, which are fundamental to the Reversal Indicator, providing a statistical baseline for identifying overextended price movements. By measuring how far price deviates from its mean, the indicator identifies conditions where a reversal is more likely. This statistical foundation ensures that the signals are based on objective data, rather than subjective judgment.
The integration of bar pattern analysis with mean and deviation calculations allows the indicator to add a layer of context to the raw data. Bar patterns are used to confirm potential reversals by analyzing the formation of candles and the overall structure of the price action. This component enhances the accuracy of signals by ensuring they are not only statistically significant but also contextually relevant.
The Reversal Indicator’s unique sensitivity adjustment feature allows traders to fine-tune the responsiveness of the signals. This flexibility means the indicator can be adapted to various market conditions, enhancing its utility across different trading environments. The separate adjustment for buy and sell sensitivities further allows traders to customize the indicator based on their specific trading strategies, whether they are more conservative or aggressive in their approach.
The Reversal Indicator's unique combination of statistical and pattern-based analysis, customizable settings, and dynamic real-time components offers significant added value compared to standard indicators.
The SMRT Algo Suite, which the Reversal Finder is a part of, offers a comprehensive set of tools and features that extend beyond the capabilities of standard or open-source indicators, providing significant additional value to users.
What you also get with the SMRT Algo Suite:
Advanced Customization: Users can customize various aspects of the indicator, such as toggling the confirmation signals on or off and adjusting the parameters of the MA Filter. This customization enhances the adaptability of the tool to different trading styles and market conditions.
Enhanced Market Understanding: The combination of pullback logic, dynamic S/R zones, and MA filtering offers traders a nuanced understanding of market dynamics, helping them make more informed trading decisions.
Unique Features: The specific combination of pullback logic, dynamic S/R, and multi-level TP/SL management is unique to SMRT Algo, offering features that are not readily available in standard or open-source indicators.
Educational and Support Resources: As with other tools in the SMRT Algo suite, this indicator comes with comprehensive educational resources and access to a supportive trading community, as well as 24/7 Discord support.
The educational resources and community support included with SMRT Algo ensure that users can maximize the indicators’ potential, offering guidance on best practices and advanced usage.
SMRT Algo believe that there is no magic indicator that is able to print money. Indicator toolkits provide value via their convinience, adaptibility and uniqueness. Combining these items can help a trader make more educated; less messy, more planned trades and in turn hopefully help them succeed.
RISK DISCLAIMER
Trading involves significant risk, and most day traders lose money. All content, tools, scripts, articles, and educational materials provided by SMRT Algo are intended solely for informational and educational purposes. Past performance is not indicative of future results. Always conduct your own research and consult with a licensed financial advisor before making any trading decisions.
Prometheus Black-Scholes Option PricesThe Black-Scholes Model is an option pricing model developed my Fischer Black and Myron Scholes in 1973 at MIT. This is regarded as the most accurate pricing model and is still used today all over the world. This script is a simulated Black-Scholes model pricing model, I will get into why I say simulated.
What is an option?
An option is the right, but not the obligation, to buy or sell 100 shares of a certain stock, for calls or puts respective, at a certain price, on a certain date (assuming European style options, American options can be exercised early). The reason these agreements, these contracts exist is to provide traders with leverage. Buying 1 contract to represent 100 shares of the underlying, more often than not, at a cheaper price. That is why the price of the option, the premium , is a small number. If an option costs $1.00 we pay $100.00 for it because 100 shares * 1 dollar per share = 100 dollars for all the shares. When a trader purchases a call on stock XYZ with a strike of $105 while XYZ stock is trading at $100, if XYZ stock moves up to $110 dollars before expiration the option has $5 of intrinsic value. You have the right to buy something at $105 when it is trading at $110. That agreement is way more valuable now, as a result the options premium would increase. That is a quick overview about how options are traded, let's get into calculating them.
Inputs for the Black-Scholes model
To calculate the price of an option we need to know 5 things:
Current Price of the asset
Strike Price of the option
Time Till Expiration
Risk-Free Interest rate
Volatility
The price of a European call option 𝐶 is given by:
𝐶 = 𝑆0 * Φ(𝑑1) − 𝐾 * 𝑒^(−𝑟 * 𝑇) * Φ(𝑑2)
where:
𝑆0 is the current price of the underlying asset.
𝐾 is the strike price of the option.
𝑟 is the risk-free interest rate.
𝑇 is the time to expiration.
Φ is the cumulative distribution function of the standard normal distribution.
𝑑1 and 𝑑2 are calculated as:
𝑑1 = (ln(𝑆0 / 𝐾) + (𝑟 + (𝜎^2 / 2)) * 𝑇) / (𝜎 * sqrt(𝑇))
𝑑2= 𝑑1 - (𝜎 * sqrt(𝑇))
𝜎 is the volatility of the underlying asset.
The price of a European put option 𝑃 is given by:
𝑃 = 𝐾 * 𝑒^(−𝑟 * 𝑇) * Φ(−𝑑2) − 𝑆0 * Φ(−𝑑1)
where 𝑑1 and 𝑑2 are as defined above.
Key Assumptions of the Black-Scholes Model
The price of the underlying asset follows a lognormal distribution.
There are no transaction costs or taxes.
The risk-free interest rate and volatility of the underlying asset are constant.
The underlying asset does not pay dividends during the life of the option.
The markets are efficient, meaning that all known information is already reflected in the prices.
Options can only be exercised at expiration (European-style options).
Understanding the Script
Here I have arrows pointing to specific spots on the table. They point to Historical Volatility and Inputted DTE . Inputted DTE is a value the user may input to calculate premium for options that expire in that many days. Historical Volatility , is the value calculated by this code.
length = 252 // One year of trading days
hv = ta.stdev(math.log(close / close ), length) * math.sqrt(365)
And then made daily like the Black-Scholes model needs from this step in the code.
hv_daily = request.security(syminfo.tickerid, "1D", hv)
The user has the option to input their own volatility to the Script. I will get into why that may be advantageous in a moment. If the user chooses to do so the Script will change which value it is using as so.
hv_in_use = which_sig == false ? hv_daily : sig
There is a lot going on in this image but bare with me, it will all make sense by the end. The column to the far left of both the green and maroon colored columns represent the strike price of the contract, if the numbers are white that means the contract is out of the money, gray means in the money. If you remember from the calculation this represents the price to buy or sell shares at, for calls or puts respective. The column second from the left shows a value for Simulated Market Price . This is a necessary part of this script so we can show changes in implied volatility. See, when we go to our brokerages and look at options prices, sure the price was calculated by a pricing model, but that is rarely the true price of the model. Market participant sentiment affects this value as their estimates for future volatility, Implied Volatility changes.
For example, if a call option is supposed to be worth $1.00 from the pricing model, however everyone is bullish on the stock and wants to buy calls, the premium may go to $1.20 from $1.00 because participants juice up the Implied Volatility . Higher Implied Volatility generally means higher premium, given enough time to expiration. Buying an option at $0.80 when it should be worth $1.00 due to changes in sentiment is a big part of the Quant Trading industry.
Of course I don't have access to an actual exchange so get prices, so I modeled participant decisions by adding or subtracting a small random value on the "perfect premium" from the Black-Scholes model, and solving for implied volatility using the Newton-Raphson method.
It is like when we have speed = distance / time if we know speed and time , we can solve for distance .
This is what models the changing Implied Volatility in the table. The other column in the table, 3rd from the left, is the Black-Scholes model price without the changes of a random number. Finally, the 4th column from the left is that Implied Volatility value we calculated with the modified option price.
More on Implied Volatility
Implied Volatility represents the future expected volatility of an asset. As it is the value in the future it is not know like Historical Volatility, only projected. We provide the user with the option to enter their own Implied Volatility to start with for better modeling of options close to expiration. If you want to model options 1 day from expiration you will probably have to enter a higher Implied Volatility so that way the prices will be higher. Since the underlying is so close to expiration they are traded so much and traders manipulate their Implied Volatility , increasing their value. Be safe while trading these!
Thank you all for clicking on my indicator and reading this description! Happy coding, Happy trading, Be safe!
Good reference: www.investopedia.com
Gartley Harmonic Pattern [TradingFinder] Harmonic Chart patterns🔵 Introduction
Research by H.M. Gartley and Scott Carney emphasizes the importance of harmonic patterns in technical analysis for predicting market movements. Gartley's work, particularly the Gartley 222 pattern, is detailed in his book "Profits in the Stock Market" and relies on the specific placement of points X, A, B, C, and D.
🟣 Defining the Gartley Pattern
The Gartley pattern is a powerful technical analysis tool often seen at the end of a trend, signaling a potential reversal. Ideally, it forms during the first and second waves of Elliott Wave theory, with wave XA representing wave 1 and the entire ABCD correction representing wave 2.
While patterns outside this structure are also valid, the key points of the Gartley pattern align closely with Fibonacci retracement levels. Specifically, point B corrects wave XA to the 61.8% level, point C lies between 38% and 79% of wave AB, and point D extends between 113% and 162% of wave BC.
The bullish Gartley pattern, shown below, forms at the end of a downtrend and signals a potential buying opportunity.
Bullish :
Bearish :
🔵 How to Use
🟣 Bullish Gartley Pattern
To spot a bullish Gartley pattern, follow these rules: the move from point X to point A (the first leg) must be upward. The subsequent move from point A to point B is downward, followed by an upward move from point B to point C.
Finally, the move from point C to point D is downward. On a chart, this pattern resembles the letter M. After the final leg of this pattern, prices are expected to rise from point D.
🟣 Bearish Gartley Pattern
A bearish Gartley pattern forms similarly to the bullish one but in reverse. The initial move from point X to point A should be downward. The next move from point A to point B is upward, followed by a downward move from point B to point C.
The final leg moves upward from point C to point D. This pattern appears as a W on charts, indicating that prices are likely to fall from point D after the final move.
By understanding and identifying Gartley patterns, traders can enhance their technical analysis and improve their decision-making in financial markets. These patterns, when correctly identified, offer significant insights into potential market reversals and continuation patterns.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
SL ManagerSTOP LOSS MANAGER
Overview:
The "SL Manager" indicator is designed to assist traders in managing their stop loss (SL) and take profit (TP) levels for both long and short positions. This tool helps you visualize intermediate levels, enhancing your trading decisions by providing crucial information on the chart.
Usage:
This indicator is particularly useful for traders who want to manage their trades more effectively by visualizing potential adjustment points for their stop loss and take profit levels. It helps in making informed decisions to maximize profits and minimize risks by providing clear levels to take partial profits and adjust stop losses.
Features:
Position Input: Select between "long" and "short" positions.
Entry Price: Specify the entry price of your trade.
Take Profit: Define the price level at which you want to take profit.
Stop Loss: Set the stop loss price level to manage your risk.
Intermediate Levels:
For both long and short positions, the indicator calculates and plots the following intermediate levels:
50% Take Profit (TP 50%): Midway between the entry price and the take profit level, where you can take partial profits and move your SL up to the 25% mark.
75% Take Profit (TP 75%): Three-quarters of the way from the entry price to the take profit level, where you can take partial profits and move your SL to breakeven.
Stop Loss Move to 25% (SL Move to 25%): A level where the stop loss can be adjusted to lock in profits.
Visualization:
The indicator plots the calculated levels directly on the chart, provided the data for the current day is available. Different color codes and line styles distinguish between the various levels:
TP 50% and TP 75% are plotted in green.
SL Move to 25% is plotted in red .
Entry/Breakeven is plotted in blue.
MACD with SAR Indicator [CHE] MACD with SAR Indicator
Introduction
"The whole is greater than the sum of its parts. " The "MACD with SAR Indicator" is an innovative technical analysis tool that combines the strengths of the Moving Average Convergence Divergence (MACD) indicator with the Parabolic Stop and Reverse (SAR) indicator. This indicator provides traders with an enhanced method to detect trend changes and determine optimal entry and exit points in the market by using the SAR based on the MACD line to better identify reversal points. The combination generates clear trend reversal signals, which are visually represented through long (L) and short (S) signals on the chart.
Originality and Usefulness
This indicator differs from traditional MACD or SAR indicators by combining the trend-following calculations of the SAR with the trend strength and momentum calculations of the MACD. This enables a more precise identification of trend changes and provides clear buy and sell signals, which is particularly useful for manual traders.
Key Features and Functionality
1. Combination of MACD and SAR
- Why this Combination?: The MACD is known for its ability to measure the strength and direction of a trend, while the SAR is specifically designed to identify reversal points. By combining these two indicators, traders can better understand both the trend strength and potential turning points in the market.
- How Components Work Together: The MACD measures the difference between fast and slow moving averages, indicating market momentum. The SAR follows the MACD line instead of the price and marks potential reversal points more accurately. When the MACD signals a new trend and the SAR confirms it, the indicator provides reliable trading opportunities.
2. Adjustable Parameters
- MACD Settings: Users can adjust the lengths of the fast and slow moving averages (default: 28 and 38 periods) and the signal smoothing (default: 9 periods) to tailor the indicator to different market conditions.
- SAR Settings: Users can adjust the start value (default: 0.01), increment (default: 0.01), and maximum value (default: 0.18) of the SAR to control sensitivity and responsiveness.
3. Visual Representation and Signals
- Color-Coded Histograms: The histogram shows the difference between the MACD and signal line and is color-coded to highlight the direction of the trend.
- Signal Labels: The indicator automatically adds "L" (Long) and "S" (Short) labels on the chart to show the current positions to traders.
4. Alert Settings
- Custom Alerts: Alerts can be set to notify traders when the MACD and SAR experience significant state changes, such as when the histogram switches from rising to falling or vice versa.
5. Toggle Display
- Display Mode: Users can toggle the display of the MACD_SAR oscillator and MACD to focus on the information most relevant to their trading strategy.
Application and Benefits
- Versatility: This indicator can be used in various market conditions and for different trading strategies, including trend following and reversal trading.
- Ease of Interpretation: The clear visual representation and automatic signals make it easier for traders to identify trading opportunities and track trends.
- Customizability: With numerous settings options, the indicator can be tailored to individual preferences and specific market conditions.
Conclusion
The "MACD with SAR Indicator" is a valuable tool for traders seeking precise and reliable signals to identify market trends and make profitable trading decisions. With its extensive customization options, powerful features, and the ability to toggle displays, this indicator provides excellent support for technical analysis.
By emphasizing the synergy between the MACD and SAR indicators, highlighting the default settings, and clarifying that the SAR is based on the MACD line and generates clear trend reversal signals through long and short labels, this revised description should help users understand the functionalities and advantages of your indicator while meeting TradingView's publication requirements.
Best regards Chervolino
Gaussian Weighted Moving Average with Forecast [CHE]Presentation for TradingView: Gaussian Weighted Moving Average with Forecast
Introduction
Welcome to our presentation on the "Gaussian Weighted Moving Average with Forecast" (GWMA). This script, written in Pine Script™, offers an enhanced method for analyzing and predicting price movements on TradingView. The script combines Gaussian Weighted Moving Averages and polynomial regression to provide accurate and customizable forecasts.
Overview
Title: Gaussian Weighted Moving Average with Forecast
Author: chervolino
License: Mozilla Public License 2.0
Main Features
1. Gaussian Weighted Moving Average (GWMA):
- Calculates a weighted moving average using a Gaussian weighting function.
- Parameters for length and standard deviation allow fine-tuning of the smoothing effect.
2. Polynomial Regression with Forecast:
- Creates a model to predict future price movements.
- Adjustable length and degree of polynomial regression.
- Option to extrapolate predictions and visualize them.
3. Visual Representation:
- Uses lines and colors to depict trend changes.
- Customizable colors for upward and downward trends.
Input Parameters
Length: Length of the moving average (default: 50)
Standard Deviation: Standard deviation for Gaussian weighting (default: 10.0)
Width: Width of the plotted lines (default: 1)
Colors: Customizable colors for upward and downward trends
Forecast Length: Length of the forecast period (default: 20)
Extrapolate Length: Length of the extrapolation (default: 50)
Polynomial Degree: Degree of the polynomial regression (default: 3)
Lock Forecast: Option to lock and stabilize the forecast
Core Algorithms
1. Gaussian Weight Calculation:
gaussian_weight(x, std_dev) =>
1 / (std_dev * math.sqrt(2 * math.pi)) * math.exp(-0.5 * math.pow(x / std_dev, 2))
2. GWMA Calculation:
calculate_gwma(length, std_dev) =>
// Algorithm to calculate the weighted moving average
3. Initialize Lines for Polynomial Regression:
initialize_lines_array(extrapolate, length) =>
// Initialize array lines
4. Create Design Matrix for Polynomial Regression:
get_design_matrix(length, degree) =>
// Create the design matrix
5. Calculate and Plot Polynomial Regression:
calculate_polynomial_regression(src, length, degree, extrapolate, lines_arr, lock, width, upward_color, downward_color) =>
// Algorithm to calculate polynomial regression and plot the forecast
Combining Indicators: Originality and Usefulness
The combination of Gaussian Weighted Moving Average and polynomial regression provides traders with a robust tool for trend analysis and prediction. The GWMA smooths out price data while emphasizing recent prices, making it sensitive to short-term trends. Polynomial regression, on the other hand, offers a mathematical approach to model and forecast future prices based on historical data. By integrating these two methodologies, traders can achieve a more comprehensive view of market trends and potential future movements, making the tool highly valuable for decision-making.
Explanation for Users
Most TradingView users are not familiar with Pine Script, so a clear description is essential for understanding how to use the script.
Gaussian Weighted Moving Average (GWMA): This indicator calculates a moving average using Gaussian weights, which gives more importance to recent prices. The length and standard deviation parameters allow users to control the sensitivity and smoothness of the average.
Polynomial Regression with Forecast: This feature uses polynomial regression to model the price trend and predict future movements. Users can adjust the length of the historical data used, the degree of the polynomial, and the length of the forecast. The script plots these predictions, making it easier for traders to visualize potential future price paths.
Visualization of Results
1. GWMA Plotting:
plot(gaussian_ma_result, title="GWMA", color=line_color, linewidth=width_input)
2. Forecast Extrapolation:
plot(forecast_val, 'Extrapolation', offset=extrapolate_setting, linewidth=width_input, style=plot.style_circles)
Conclusion
The "Gaussian Weighted Moving Average with Forecast" script provides a powerful tool for analyzing and predicting price movements on TradingView. By combining Gaussian weighting and polynomial regression, it offers a precise and customizable method for trend analysis and forecasting.
Thank you for your attention! For any questions or further information, please feel free to reach out.
Pro V3 [SMRT Algo]SMRT Algo Suite is a versatile toolkit featuring advanced features designed to deliver valuable signals and insights, catering to every trader's technical analysis requirements with precise data.
The SMRT Algo V3 represents a groundbreaking, comprehensive solution built from the ground up for traders.
While SMRT Algo can complement other technical analysis methods, it is also designed to function effectively as a standalone indicator adaptable to any trading style. Each feature is designed with the understanding that not all technical indicators suit every market condition.
The optimal approach to leveraging this indicator is to explore its diverse features gradually, select a few that best match your trading style, and use them consistently to develop a personalized SMRT Algo strategy.
Features:
Buy & Sell Signals: Clear buy and sell signals displayed on the chart, with ‘+’ indicating strong signals and normal signals without ‘+’.
Candle Coloring: Blue and red candle colors to signify bullish and bearish trends, respectively.
Signal Sensitivity: Adjust the frequency of signals to match your trading preferences.
MA Filter: Customizable moving average filter to ensure trades align with the prevailing trend.
Dashboard: Multi-timeframe analysis with information on various timeframes, offering quick decision-making capabilities and a customizable dashboard size.
Trailing Stop Loss: Suggestions for trailing stop losses to maximize profits while minimizing risk.
Power MA: A custom moving average that closely follows price, highlighting short-term market trends.
ChoCh/Bos: Displays internal market structure, including changes of character and breaks of structure.
Market Structure: Shows external market structure, detailing changes of character, breaks of structure, and pivot points.
Support & Resistance: Key support and resistance zones plotted on the chart.
Reversals: Highlights areas with a high likelihood of reversal using diamond markers.
Reversal Bands: Zones where price is likely to reverse or correct.
Trend Lines: Auto-plotted trendlines for quick and easy analysis.
Retest Zones: Ideal for break-and-retest traders, identifying key retest zones for entries and re-entries
Take Profit & Stop Loss: Customizable take profit and stop loss points.
Full Any Alert() Function Call Conditions: Create custom alerts directly to your TradingView device for timely notifications.
Additional features: A set of toggles turning on/off these indicators.
SMRT Algo Pro V3 offers a comprehensive set of features designed to enhance your trading experience by providing actionable insights and customizable tools for all trading styles.
SMRT Algo Pro V3 Confirmation Signals and Candle Coloring
The signals in SMRT Algo Pro V3 can generate both normal and strong labels, with strong signals marked by the "+" symbol. These signals are closely linked to the candle coloring, providing a visual representation of trend development to help navigate various market conditions effectively.
Candle Coloring:
Blue Candles: Indicate bullish trends.
Red Candles: Indicate bearish trends.
Candles will turn blue when there is a buy signal, and turn red when there is a sell signal.
The candle coloring is especially useful when interpreting signals. For instance, a consistent series of blue candles alongside buy signals suggests a strong uptrend, reducing the likelihood of a fake-out. Conversely, a series of red candles with sell signals indicates a strong downtrend.
Dashboard for Multi-Timeframe Analysis
The dashboard provides a consolidated view of multiple timeframes, helping traders make quick decisions based on comprehensive data. This feature reduces the need to switch between charts, streamlining the analysis process.
The dashboard will show the trend of higher timeframes, based on signal calculation and the trend filter.
Note on the dashboard: To reduce memory load, it will only display information from the current timeframe and up.
Trailing Stop Loss
This component workw to maximize profits and manage risk. The Trailing Stop Loss feature provides dynamic stop loss levels. Traders can use this feature to place their stop loss in profit while price goes in favor of your direction, so that less profit is left on the table, should the trade reverse against you.
Green trailing stop loss ranges are shown for buy trades, while red lines are shown for sell trades. This can be used together with the buy & sell signals to trail the stop loss for those trades.
Power MA
The Power MA follows the price closely, indicating short-term market trends and potential exit points. Traders can use the Power MA to determine when to enter a trade. For example, if the Pro V3 prints a buy signal, but the power MA is red (indicating that the market is short term bearish), it can act as a confirmation to stay out of that trade. Conversely, if the power MA is blue, then it can be an added confirmation to enter the buy trade based on the signals.
Market Structure
The inclusion of ChoCh/Bos (Change of Character and Break of Structure) helps traders understand internal and external market shifts. The ChoCh/Bos shows internal market structure, while the Market Structure feature shows the external market structure. This feature is crucial for identifying key turning points and potential trend continuations, as well as ICT traders.
We recommend traders to use this as an added confirmation, for example, once a buy signal is printed, wait for an internal or external Choch/BOS, possibly indicating that the market is now in control of the bulls. From there traders an either enter off another signal from the V3 or wait for the retest from the Retest Zones feature of the V3.
Support & Resistance, Reversals, and Reversal Bands
These features highlight critical market levels and areas where price is likely to reverse or correct. They are essential for traders looking to capitalize on key support and resistance zones or potential reversal points.
They can be used together with the buy & sell signals. An example is when a sell signal appears, we can look for potential trade exits either at the S/R zones, the reversal diamonds that are printed on the candle, or when price touches the reversal bands.
Trend Lines
Auto-plotted trend lines and the trend ribbon provide insights into longer-term trends. They can be used together with the buy sell features of the V3, e.g. if a sell signal is printed, but price is in the lower half of the trend lines, we can assume that price is in an area of premium for our short trade. Traders can choose whether to wait for price to retrace back into an area of discount (top half of the trend line), where they can look to short.
Retest Zones
The Retest Zones feature identifies optimal entry and re-entry points for break-and-retest strategies. As mentioned earlier, this feature can be used together with other features to act as a re-entry or further confirmation before entering a trade.
Traders can wait for a signal to be printed by the V3, and wait for further confrirmation from the retest zones to enter at a better price. This feature can be used together with the signals, and the market structure features to create a simple break & retest strategy.
Take Profit Modes:
SMRT Algo Pro V3 includes a versatile Take Profit Mode designed to help traders optimize their exits:
Hybrid Mode: Displays Take Profit, entry, and stop loss lines on the chart for the current position. Additionally, small circles labeled TP1, TP2, and TP3 indicate the points where take profit levels were hit.
Minimal Mode: Only displays the small circles labeled TP1, TP2, and TP3, providing a cleaner chart view while still indicating take profit hits.
Traditional Mode Only: Displays only the lines for Take Profit, entry, and stop loss, without the small circles.
Take profits are based off of 1:1, 1:2 and 1:3 risk to reward ratio with respect to the stop loss.
These modes offer flexibility for traders to choose their preferred level of detail on the chart, helping them to manage their trades effectively and track their take profit levels clearly.
The features of SMRT Algo Pro V3 can significantly strengthen your market analysis by providing additional confluences. These features allow traders to cross-verify signals and trends, making their strategies more robust and reliable. Here's how you can leverage these features:
SMRT Algo Pro V3 offers a comprehensive suite of tools and features that extend beyond the capabilities of standard or open-source indicators, providing significant additional value to users.
Integrated System: Unlike basic or open-source tools that may require multiple installations and configurations, SMRT Algo Pro V3 combines all necessary indicators into a cohesive system.
Advanced Customization: The toolkit offers extensive customization options, including signal sensitivity adjustments, customizable MA Filters, and various Take Profit Modes. These features allow traders to tailor the system to their specific trading styles and risk tolerance, providing a level of personalization that free tools often lack.
Real-Time Market Adaptation: SMRT Algo Pro V3 includes features like a deep learning dashboard and real-time market data integration, which continuously update and adapt to changing market conditions. This ensures that users receive the most current and relevant signals, enhancing decision-making accuracy.
Educational Support: Alongside the tools, SMRT Algo provides comprehensive educational resources and tutorials, helping traders understand how to effectively use the system and develop robust trading strategies. This educational aspect adds significant value, especially for beginners looking to deepen their knowledge.
Comprehensive Analysis Tools: The inclusion of multi-timeframe analysis, a detailed dashboard, and advanced market structure indicators help traders make more informed decisions by offering a complete picture of market dynamics.
Support and Community: Subscribers to SMRT Algo Pro V3 gain access to dedicated 24/7 support and an active trading community. This support network can be invaluable for troubleshooting, strategy development, and gaining insights from other experienced traders.
SMRT Algo believe that there is no magic indicator that is able to print money. Indicator toolkits provide value via their convinience, adaptibility and uniqueness. Combining these items can help a trader make more educated; less messy, more planned trades and in turn hopefully help them succeed.
RISK DISCLAIMER
Trading involves significant risk, and most day traders lose money. All content, tools, scripts, articles, and educational materials provided by SMRT Algo are intended solely for informational and educational purposes. Past performance is not indicative of future results. Always conduct your own research and consult with a licensed financial advisor before making any trading decisions.
Consolidation Range Detector [Pt]█ Author's Note:
After extensively reviewing the existing consolidation detection tools in the TradingView library, I found that none fully met my expectations. Some tools were overly sensitive, producing too many invalid ranges, while others lacked the necessary sensitivity. Consequently, I decided to develop my own tool. I hope that you, fellow traders, find it valuable and enjoy using it.
█ Description:
The Consolidation Range Detector is a sophisticated TradingView tool designed to identify and visualize periods of price consolidation on any financial chart. This indicator employs advanced algorithms to detect ranges where price movements are confined, helping traders spot potential breakout zones and make informed trading decisions.
█ Key Features:
► Customizable Detection Sensitivity: Adjust the sensitivity of the detection algorithm to suit your trading strategy, ensuring a precise fit within the consolidation range.
► Dynamic Coloring: Choose between random or fixed colors for the consolidation ranges, with options to match different background color schemes (Dark, Light, Neutral).
► Visual Clarity: Highlight detected consolidation ranges directly on the chart with customizable color schemes to enhance visibility and provide clear visual cues.
► ATR-Based Validation: Ensures detected consolidation ranges are significant and reliable by using the Average True Range (ATR) for validation.
█ User-Defined Inputs:
► Minimum Detection Bars: Set the minimum number of bars required to detect a consolidation range.
► Max Range Multiplier: Define the maximum range for detection as a multiple of the ATR.
► Detection Sensitivity: Adjust the sensitivity of the detection algorithm. Higher values mean a tighter fit within the consolidation range.
► Color Options: Choose the color for the consolidation range boxes and decide whether to use random colors.
► Color Scheme (Background): Select a color scheme for the chart background (Dark, Light, Neutral).
█ How It Works:
► Range Detection: The indicator scans the chart for potential consolidation ranges based on user-defined parameters. It calculates the average price and ATR to determine the significance of the range.
► Validation: Each detected range is validated based on criteria such as ATR threshold, range validity, average price comparison, and the number of touches at the range boundaries.
► Visualization: Validated ranges are highlighted on the chart with colored boxes, providing a clear visual cue of potential consolidation zones.
█ Usage Examples:
► Example 1:
The image below showcases the Consolidation Range Detector in action on a chart of S&P 500 E-mini Futures. The indicator highlights several consolidation ranges with different colors, demonstrating its ability to adapt to varying market conditions and visually emphasize key areas of price consolidation. The annotations for breakouts and price reactions are manually marked to illustrate the practical application of the tool in identifying potential trading opportunities based on these key areas.
█ Practical Applications:
► Identify Breakout Zones: Use the detected consolidation ranges to identify potential breakout zones, helping to anticipate significant price movements.
► Identify Key Price Levels: The tool helps in pinpointing key price levels where there is a high probability of significant price reactions, providing crucial insights for trading strategies.
► Enhance Technical Analysis: Integrate the Consolidation Range Detector into your existing technical analysis toolkit to improve the accuracy of your trading decisions.
█ Conclusion:
The Consolidation Range Detector is a powerful tool for traders looking to identify periods of price consolidation and potential breakout zones. With its customizable settings and advanced detection algorithms, it provides a reliable and visual method to enhance your trading strategy. Whether you're a beginner or an experienced trader, this indicator can add significant value to your technical analysis.
█ Cautionary Note:
While the Consolidation Range Detector is a powerful tool, it's important to combine it with other indicators and analysis methods for comprehensive trading decisions. Always consider market context and external factors when interpreting detected consolidation ranges.
Algo Market Structure (Nephew_Sam_)This indicator takes a different approach into reading market structure.
The key difference between this logic compared to the pivot logic is; we read highs and lows based on bullish and bearish candles. Ie:
Pivot method - highest/lowest point in previous and next X candles
Algo method - Bullish candle(s) followed by a bearish candle and vice versa
More explanation in each of the key feature below.
Here are all of the concepts and features included in the indicator:
Timeframe
- You can select the timeframe of the indicator (has to be higher or equal to the chart timeframe)
- Min option is the minimum timeframe to show the indicator. If you show daily structure on 1m chart, you can run into a timeout error so keep it close to the chart timeframe.
- Recommended timeframe for no bugs is the current chart timeframe.
Structure
The structure is calculated using a combination of candle patterns (ie. pivot top = Bullish x3-Bearish-Bullish) and marks out circle labels after a new HH or LL
Structure high = 1 or more consecutive bull candles followed by a bear candle
Structure low = 1 or more consecutive bear candles followed by a bull candle
Structure direction change = when the second previous H/L is taken out (TLQ)
ILQ - Inducement Liquidity concept
In a bearish example this is the most recent structure high.
TLQ
In a bearish example this is the second most recent structure high.
This is also what helps define our structure direction. If broken, the structure changes (bullish / bearish) and plots a bos line.
EPA - Efficient price action
When price returns back to previous structure point after bos. Similar to an ICT breaker.
Note: It might be a little, just a little buggy if you have set your indicator timeframe to higher than the chart timeframe.
Extremes Zones
The final zone to find a trade entry before a structural shift. These are wick of the TLQ candle. This is select the wick of the current timeframe candle even if indicator is set to higher timeframe.
MSU
Tiny arrow labels at the bottom of your chart. Plots the arrows when price is between an ILQ and TLQ
VTA
Valid trading range. This is when we get some sort of a structure pattern. Plots a box when price induces previous structure point and then breaks structure in the opposite direction. Here are the patterns:
Bull VTA - HH-LL-HH
Bear VTA - LL-HH-LL
Bull Strict VTA - LL-HH-LL-HH
Bear Strict VTA - HH-LL-HH-LL
Bar colors
Changes the bar color based on the structure to all green/red.
Note: for this to work, you will have to right click on the indicator, then under visual order select 'bring to front'
Table
This table plots the structure stats/data
1. If structure is bullish / bearish
2. If price is efficient or not
3. If there is an MSU
4. If price is inside a VTA
Disclaimer: This indicator is fully written from scratch by me, the idea behind the concepts come from AlgoHub material on Youtube. Do NOT use this code for reselling purposes and if anything is created using any part of this code, the source code should be public.
Harmonic Patterns [WinWorld]PREFACE
This indicator was made with the help of our team's fellow friend and harmonic patterns expert, whose support we deeply appreciate — @Muneer_Gove
DESCRIPTION
Harmonic patterns are one the most recognizable and popular trading concepts in the word of trading.
They are distinct formations, found in the financial markets, that predict potential price movements based on Fibonacci ratios. These patterns, which include the Gartley, Bat, Alt Bat, Butterfly and etc., identify specific and repetitive price structures that can forecast future price reversals. By incorporating these patterns into trading process, one does gain an opportunity to profit from repetetitve price movements.
The whole thing about harmonic pattern is the process of finding them. The basic step-by-step guide to build a harmonic pattern is this:
Locate significant highs and lows on the chart, which form the basis of the pattern. The best tools to use for this purple is zigzag, because zigzag indicator draw lines, which will be helpful quite helpful in the process and will save you a lot of time;
Use Fibonacci tools to measure the retracement and extension levels between legs of pattern — distances between pair of points . Each harmonic pattern has specific Fibonacci ratios that define its structure;
Draw lines connecting the pivot points according to the pattern's structure. For example, a Gartley pattern connects five points (X, A, B, C, D) in a specific sequence and ratio;
Ensure that the identified structure adheres to the harmonic pattern’s Fibonacci requirements. If the points align within the acceptable ranges, the pattern is valid.
In order to better understand this process let's see an example of the pattern from our indicator right away:
This is a Butterfly pattern. Its set of retracememt ratios is as follows:
AB/XA = 0.756 to 0.816
BC/AB = 0.382 to 0.990
CD/BC = 1.618 to 2.618
AD/XA = 1.27
Below you can see that each ratio of the pattern is successfully met:
* Note : white lines — ratio range, yellow line — point 's price level in between ranges.
AB/XA Ratio
BC/AB Ratio
CD/BC Ratio
AD/XA Ratio
SETTINGS
Main Settings
Failed Patterns — shows/hides patterns, which meet one of these conditions:
— Price crossed level of point C before reaching PRZ;
— New pattern appeared and PRZ of previous pattern was not reached;
Completed Patterns — shosw/hides patterns, whose PRZ was reached;
Dashboard — shows/hides dashboard, which displays active patterns (patterns, which can be used to trade).
Alert Settings
PRZ — enables/disables alert of event, when price reaches PRZ.
ZigZag Settings
Depth #1-9 — shows/hides patterns of the chosen zigzag copy. Here you can choose customize depth number.
Pattern Visual Controls
Bullish Patterns — shows/hides bullish patterns;
Bearish Patterns — shows/hides bearish patterns;
Pending Patterns — shows/hides patterns, whose PRZ has not been reached yet;
list of pattern names — hides/shows chosen pattern.
Colours
Bullish — colour of bullish patterns;
Bearish — colour of bearish patterns.
IMPORTANT CONCEPTS
PRZ — entry target level.
If its text near the line level is purple, it means that PRZ has NOT been reached yet.
If it is white, it means that PRZ has been reached.
In order for SL or TP to be counted when price reaches, price has to reach PRZ first with its high/low.
SL — stop-loss.
If its near the line level is red, it means that SL has NOT been reached yet.
If it is white, it means that SL has been reached.
If it is gray, it means that SL has been invalidated — price crossed with high/low the level of point C before reaching PRZ.
If SL is reached and price reaches TP targets, they will be counted.
SL of each pattern are built by individual ratio. For example, in Butterfly pattern SL ratio is 1.414 and it is calculated as (SL - A)/XA.
IMPORTANT NOTE : SL is reached when price crosses SL level with candle's close (!)
TP — take-profit.
If its near the line level is green, it means that TP has NOT been reached yet.
If it is white, it means that TP has been reached.
If one of the TP targets is reached and price reached SL, it will not be counted.
IMPORTANT NOTE : TP is reached when price crosses TP level with candle's high/low(!)
TP of each pattern are built by same the ratios for all patterns, but it is calculated by individual algorithm. For example, in the same Butterfly pattern TP ratio will be 0.382, 0.500 and 0.618 and they will be placed as Fibonacci retracement grid from point A to point D ( same for formula for all other patterns, excluding the ones listed next ), BUT on Shark , Muner and AB=CD pattern the same TP will be placed as Fibonacci retracement grid from point C to point D
WHY USE THIS INDICATOR?
Our Harmic Patterns indicator uses zigzag, which is based on depth mechanic. In order to identify the maximum possible amount of patterns this indicator runs 9 copies of the same zigzags with different depth values. Each copy of zigzag can be turned off in the settings individually.
At the moment of publishing, this indicator can autmatically identify 10 patterns:
Crab
Deep Crab
Gartley
Deep Gartley
Bat
Alt Bat
Muner
Butterfly
Shark
AB=CD
Things, that make this indicator different from other harmonic pattern indicator, are:
Advanced pattern recognition and validation process. We have implemeted special logic, which allows the indicator to draw fully accurate patterns, which satisfy industry standards.
For example, let's say we have a bearish pattern. We take points X an A. If there is a price's high, that is above X point's high, such pattern should be automatically invalidated. We have found even one indicator that does perform such validation process, and our indicator does that. . And this is just one example, we have much of such mechanics implemeted thanks to Mr. Muner's knowledge.
Advanced pattern extension mechanics . Right this mechanic applies to only one pattern — Shark. Its classic CD/BC ratio is 0.886, but when price moves in a way so this ratio now equals to 1.13, this signal the indicator to redraw the pattern, based on this new CD/BC ratio. We haven't found any indicator on the market that has such mechanic implemented.
Dashboard for displaying active patterns . On this dashboard you can find patterns, whose SL and TP have not been touched yet. If price touches the SL or TP of the pattern, this pattern is removed from the dashboard, because it is considered finished.
At the moment of publishing this dashboard only shows the patterns from the current timeframe.
Informative alert when price reaches PRZ of the pattern . Many other indicator do not provide details of this event, which requires trader to waste his time on opening up the chart and searching for this event. Our indicator allows trader to see the PRZ price right when alert happens and open up the trade much fastr.
Alert message is made by this template:
, : PRZ was reached at on
Example:
BTCUSDT, long Bat: PRZ was reached at 70,000 on 15m.
ALERTS
At the moment of publishing this indicator offers one alert, which happens when price reaches PRZ level.
HOW CAN I GET THE MOST OUT OF THIS INDICATOR?
This indicator can act as the standalone tool, because PRZ, TP and SL are assigned to each pattern and tracked during the pattern's life period.
You can this indicator with any other strategy or indicator, because this indicator is basically a tool that shows the trader repetitive price formations, after which price tends to go a certaion direction in the most cases, allowing trader to profit from it.
You can try combining Harmonic Patterns indicator with Smart Money tools, made by our team, because Smart Money strategies basically show the most liquid price zones and levels, which can be used to find an entry opportunity and Harmonic Patterns indicator can be added to make a final decision on the entry.
If you are interested in trying these two strategies together, feel free to learn Smart Money trading strategy by reading our Advanced SMC guide, which is available in our eductional materials.
SUMMARY
Harmonic Patterns indicator is an advanced tool of technical analysis, which automatically finds 10 most used harmonic patterns on the chart, assign PRZ, TP and SL targets to them and tracks them during each pattern 'life period'.
While searching for these patterns, this indicator performs series of validation techniques, that allow trader to see only the most valid patterns, which have a higher changes to succeed.
This indicator can be used both as a standalone tool and as 'team player' for any stategy by being the tool, which can be used for making a final decision on an entry target.
AFTERWORD
This indicator has been developed for more than 2 weeks, which consisted of everyday discussions, bug fixes and special additons to the algorithm in order to making patterns more valid, so we really hope you will find a great use of this indicator and it will help you recude time on the analysis and boost your profits :)
We want to express our gratitude to @Muneer_Gove once again, because he has done huge job helping us fine-tuning the algorithm, building complex pattern validatiom and extension logic and fixing bugs. Thank you!
Best of luck , traders!
— with love, WinWorld Team
Money Flow Index Crossover IndicatorThe "Money Flow Index Crossover Indicator" is a specialized technical analysis tool designed to assist traders by providing a clear visualization of potential buy and sell signals based on the Money Flow Index (MFI) and its smoothed moving average (SMA). This indicator delineates overbought and oversold zones, offering valuable insights into market dynamics. It operates as an oscillator on a separate pane, helping traders identify bullish and bearish market conditions with greater precision. By incorporating k-Nearest Neighbor (KNN) machine learning techniques, this indicator enhances the reliability and accuracy of the signals provided.
Originality and Usefulness:
This script is not just a simple mashup of existing indicators but integrates multiple components to create a unique and comprehensive analysis tool. The combined information from the MFI, its smoothed moving average, and the KNN machine learning techniques influence the form and accuracy of the Money Flow Index Average line and the Smoothed Money Flow Index line giving a visually helpful representation of overbought and oversold conditions. These lines are displayed in an oscillator style crossover, allowing users to visualize potential buy and sell zones for setting up potential signals. The user can adjust various settings of these tools behind the code to fine-tune the behavior and sensitivity of these lines. This integration provides a more robust and insightful trading tool that can adapt to different market conditions and trading styles.
How It Works:
Inputs:
MFI Settings:
Show Signals: Allows users to toggle the display of MFI and SMA crossing signals, which are critical for identifying potential market reversals.
Plot Amount: Determines the number of plots in the heat map, ranging from 2 to 28, enabling customization based on user preference.
Source: Defines the data source for MFI calculations, typically set to OHLC4 for a balanced view of price movements.
Smooth Initial MFI Length: Specifies the smoothing length for the initial MFI calculations to reduce noise and enhance signal clarity.
MFI SMA Length: Sets the length for the SMA used to smooth the MFI average, providing a more stable reference line.
Machine Learning Settings:
Use KInSource: Option to average MFI data by adding a lookback to the source, improving the accuracy of historical comparisons.
KNN Distance Requirement: Defines the distance calculation method for KNN (Max, Min, Both) to refine the data filtering process.
Machine Learning Length: Specifies the amount of machine learning data stored for smoothing results, balancing between responsiveness and stability.
KNN Length: Sets the number of KNN used to calculate the allowable distance range, enhancing the precision of the machine learning model.
Fast and Slow Lengths: Defines the lengths for fast and slow MFI calculations, allowing the indicator to capture different market dynamics.
Smoothing Length: Determines the length at which MFI calculations start for a more smoothed result, reducing false signals.
Variables and Functions:
KNN Function: Filters machine learning data to calculate valid distances based on defined criteria, ensuring more accurate MFI averages.
MFI Calculations: Computes both fast and slow MFI values, applies smoothing, and stores them for KNN processing to refine signal generation.
MFI KNN Calculation: Uses the KNN function to calculate the machine learning average of MFI values, enhancing signal reliability.
MFI Average and SMA: Calculates the average and smoothed MFI values, which are crucial for determining crossover signals.
Calculations:
MFI Values: Calculates current fast and slow MFI values and applies smoothing to reduce market noise.
Storage Arrays: Stores MFI data in arrays for KNN processing, enabling historical comparison and pattern recognition.
KNN Processing: Computes the machine learning average of MFI values using the KNN function, improving the robustness of signals.
MFI Average: Scales the MFI average to fit the heat map and calculates the smoothed SMA, providing a clear visual representation of trends.
Crossover Signals: Identifies bullish (MFI crossing above SMA) and bearish (MFI crossing below SMA) signals, which are key for making trading decisions.
Plots and Visuals:
MFI Average and SMA Lines: Plots the MFI average and smoothed SMA on the chart, allowing traders to easily visualize market trends and potential reversals.
Zones: Defines and plots overbought, neutral, and oversold zones for easy visualization. The recommended settings for these zones are:
Overbought Zone: Level set to approximately 24.6, indicating a potential market top.
Neutral Zone: Level set to 14, representing a balanced market condition.
Oversold Zone: Level set to 5.4, signaling a potential market bottom.
Crossover Marks: Plots circles on the chart to indicate bullish and bearish crossover signals, making it easier to spot entry and exit points.
Visual Alerts:
Bullish and Bearish Alerts: one can see overbought and oversold conditions and up alert conditions for bullish and bearish MFI crossover signals, enabling traders to have access to visual cues when these events are on trajectory to occur and, if they occur, act promptly with the visual representation of its zones.
Why It's Helpful:
The "Money Flow Index Crossover Indicator" provides traders with a sophisticated tool to identify potential buy and sell conditions based on the combined information of the MFI and its smoothed moving average. The KNN machine learning techniques enhance the accuracy of this indicator's clear visual representation of overbought, neutral, and oversold zones. This combination of data represented on the chart helps traders make informed decisions about market conditions. This indicator is particularly useful for traders looking to refine their entry and exit points by leveraging advanced data analysis in respect to overbought and oversold conditions.
Disclaimer:
This indicator is intended to assist traders in making informed decisions based on technical analysis. However, it is not a guarantee of future performance and should be used in conjunction with other analysis techniques and risk management practices. Past performance is not indicative of future results, and traders should exercise caution and perform their own due diligence before making any trading decisions.
Crab Harmonic Pattern [TradingFinder] Harmonic Chart patterns🔵 Introduction
The Crab pattern is recognized as a reversal pattern in technical analysis, utilizing Fibonacci numbers and percentages for chart analysis. This pattern can predict suitable price reversal areas on charts using Fibonacci ratios.
The structure of the Crab pattern can manifest in both bullish and bearish forms on the chart. By analyzing this structure, traders can identify points where the price direction changes, which are essential for making informed trading decisions.
The pattern's structure is visually represented on charts as shown below. To gain a deeper understanding of the Crab pattern's functionality, it is beneficial to become familiar with its various harmonic forms.
🟣 Types of Crab Patterns
The Crab pattern is categorized into two types based on its structure: bullish and bearish. The bullish Crab is denoted by the letter M, while the bearish Crab is indicated by the letter W in technical analysis.
Typically, a bullish Crab pattern signals a potential price increase, whereas a bearish Crab pattern suggests a potential price decrease on the chart.
The direction of price movement depends significantly on the price's position within the chart. By identifying whether the pattern is bullish or bearish, traders can determine the likely direction of the price reversal.
Bullish Crab :
Bearish Crab :
🔵 How to Use
When trading using the Crab pattern, crucial parameters include the end time of the correction and the point at which the chart reaches its peak. Generally, the best time to buy is when the chart nears the end of its correction, and the best time to sell is when it approaches the peak price.
As we discussed, the end of the price correction and the time to reach the peak are measured using Fibonacci ratios. By analyzing these levels, traders can estimate the end of the correction in the chart waves and select a buying position for their stock or asset upon reaching that ratio.
🟣 Bullish Crab Pattern
In this pattern, the stock price is expected to rise at the pattern's completion, transitioning into an upward trend. The bullish Crab pattern usually begins with an upward trend, followed by a price correction, after which the stock resumes its upward movement.
If a deeper correction occurs, the price will change direction at some point on the chart and rise again towards its target price. Price corrections play a critical role in this pattern, as it aims to identify entry and exit points using Fibonacci ratios, allowing traders to make purchases at the end of the corrections.
When the price movement lines are connected on the chart, the bullish Crab pattern resembles the letter M.
🟣 Bearish Crab Pattern
In this pattern, the stock price is expected to decline at the pattern's completion, leading to a strong downward trend. The bearish Crab pattern typically starts with a price correction in a downward trend and, after several fluctuations, reaches a peak where the direction changes downward, resulting in a significant price drop.
This pattern uses Fibonacci ratios to identify points where the price movement is likely to change direction, enabling traders to exit their positions at the chart's peak. When the price movement lines are connected on the chart, the bearish Crab pattern resembles the letter W.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Trendline Cross CountThe Trendline Cross Count indicator is an innovative technical analysis tool that revolutionizes the way traders interact with trendlines. This cutting-edge indicator doesn't just identify trendlines - it quantifies their impact on price action in real-time, providing traders with unprecedented insight into market structure.
Core Functionality:
Trendline Cross Quantification:
At the heart of this indicator is its ability to display the actual number of trendlines being crossed by the current price. The algorithm doesn't just count intersections; it evaluates the significance of each trendline, weighing factors such as trendline duration, number of touch points, and historical reliability.
Dynamic Trendline Generation:
The indicator employs an advanced pivot-based trendline detection system. It continuously scans the chart for significant pivot points and constructs trendlines based on these pivots. The innovation lies in its ability to adapt to changing market conditions, constantly updating its trendline library.
Confluence Analysis:
By tracking multiple trendlines simultaneously, the indicator provides a real-time measure of trendline confluence. This allows traders to identify areas where multiple significant trendlines converge, potentially signaling powerful support or resistance levels.
Key Inputs and Their Significance:
Trendline Source:
This input allows traders to select the price data used for trendline analysis. While the default is the closing price, the flexibility to choose other price points enables traders to tailor the analysis to their specific trading style or market preferences.
Pivot Size:
This crucial parameter defines the lookback period for identifying pivot points. The default value of 3 strikes a balance between sensitivity and reliability, but adjusting this value can dramatically alter the indicator's behavior. Lower values increase sensitivity but may introduce noise, while higher values provide more stable, long-term trendlines.
Pivot Sequence:
This innovative feature allows traders to focus on specific market structures. Options include:
"LL" (Lower Lows): Focuses on downtrends
"HH" (Higher Highs): Emphasizes uptrends
"Any": Provides a comprehensive view of all trendlines
What Makes It Unique:
The Trendline Cross Count indicator stands out due to several groundbreaking features:
Quantitative Trendline Analysis:
While most indicators simply draw trendlines, this tool quantifies their impact, providing a numerical representation of market structure complexity.
Adaptive Pivot Detection:
The indicator's ability to dynamically adjust its pivot detection based on market volatility ensures relevance across all market conditions.
Sequence-Based Filtering:
The unique pivot sequence option allows traders to focus on specific trend types, a feature not found in conventional trendline tools.
Real-Time Confluence Measurement:
By providing a live count of intersecting trendlines, traders gain instant insight into potential support and resistance strength.
Significance Algorithm:
Not all trendlines are created equal. This indicator employs an algorithm to weigh the importance of each trendline, ensuring that the cross count reflects truly significant levels.
This indicator represents a significant advancement in trendline analysis, offering insights that are not readily available through traditional methods. Its ability to quantify trendline interactions in real-time provides traders with a unique edge in understanding market structure and potential price movements. The Trendline Cross Count indicator is not just a tool, but a gateway to a new dimension of technical analysis.
R-Squared Trend Strength and Direction [CHE] Introduction
TradingView is a web-based platform that allows traders and investors to conduct comprehensive technical analyses, develop trading strategies, and track market movements in real-time. One of the many features TradingView offers is the ability to create custom indicators using Pine Script. In this presentation, we will focus on the implementation and application of an R-Squared indicator for analyzing trend strength and direction, as well as using the T3 indicator for trend direction confirmation.
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What is R-Squared?
R-Squared (R²), also known as the coefficient of determination, is a statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable(s). In technical analysis, R-Squared is used to quantify the clarity of a trend. A higher R-Squared indicates a clearer trend, less affected by random price fluctuations.
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Pine Script: Implementing the R-Squared Indicator
Inputs:
- Source: The data source to be analyzed, such as the average of high and low prices.
- Period: The period length for calculating sums and R-Squared values.
Sum Calculations:
- Sum X and Sum XX: These sums relate to the indices of the selected period.
- Sum XY and Sum YY: These sums relate to the products of the indices and their respective price values.
- Sum Y: The sum of price values over the chosen period.
Q-Values Calculation:
- Q-values are used to calculate the R-Squared value, which indicates trend clarity.
Trend State:
- Based on the R-Squared value, a trend state is determined, indicating whether a clear trend is present. Specific threshold values are used to identify trend changes.
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Using the T3 Indicator
The T3 indicator is used exclusively for confirming the trend direction in this strategy. It helps verify the direction of the trend identified by the R-Squared indicator.
T3 Indicator Calculation:
- The T3 indicator uses a series of exponential smoothings to smooth price movements and provide a clearer view of the trend direction.
- The T3 indicator confirms the trend direction indicated by the R-Squared indicator.
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Functioning of the R-Squared and T3 Combination
1. Input Parameters:
- Define the data source and period length for calculating sums and R-Squared values.
2. Sum Calculations:
- Calculate various sums over the defined period needed to derive Q-values.
3. Q-Values Calculation:
- Derive Q1, Q2, and Q3 from the sums to calculate the R-Squared value.
4. Trend State:
- Use the R-Squared value to determine if a clear trend is present, utilizing threshold values to recognize trend changes.
5. Trend Direction Confirmation with T3:
- Calculate the T3 indicator to confirm the trend direction. The T3 is used solely for direction confirmation, not for clarity.
6. Long and Short Conditions:
- Define long and short entry conditions based on the combination of R-Squared and T3 indicators, and visualize them on the chart.
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Conclusion
The R-Squared indicator is a powerful tool for analyzing the clarity of a trend. By integrating it into TradingView using Pine Script, traders can make informed decisions and optimize their trading strategies. The T3 indicator is used exclusively in this strategy to confirm the trend direction, enhancing the accuracy of trading signals.
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Questions and Discussion
Are there any questions about the implementation or application of the R-Squared indicator in TradingView? How can we further improve this indicator or integrate it into existing strategies?
Best regards
Chervolino
Advanced Fully Reversed Candles with Reversed IchimokuThe "Advanced Fully Reversed Candles with Reversed Ichimoku" indicator is a sophisticated tool designed for traders who seek a unique perspective on market dynamics. This innovative indicator not only reverses the traditional candlestick chart but also inverts the Ichimoku Cloud components, providing a comprehensive view of the market's inverted behavior.
Key Features:
Reversed Candlestick Chart:
The indicator recalculates the OHLC (Open, High, Low, Close) prices by reversing them along the price axis. This means that what typically would be an upward movement is displayed as a downward movement, and vice versa. This reversal provides an alternative view that can help traders identify hidden patterns and potential reversal points that might not be obvious on a standard chart.
Reversed Ichimoku Cloud:
All components of the Ichimoku Cloud indicator are recalculated based on the reversed price data. This includes:
Tenkan-sen (Conversion Line): Reversed based on the highest and lowest prices over the specified period.
Kijun-sen (Base Line): Reversed in a similar manner to the Tenkan-sen, providing a medium-term perspective on price trends.
Senkou Span A (Leading Span A): Reversed to form one boundary of the Kumo (cloud), offering insight into future support and resistance levels.
Senkou Span B (Leading Span B): Reversed to form the other boundary of the Kumo, complementing Senkou Span A.
Chikou Span (Lagging Span): Reversed and plotted backward for additional confirmation of trend direction and strength.
Dynamic Price Range Calculation:
The indicator dynamically calculates the maximum and minimum prices over the last 500 bars (or the available range if fewer bars are present). This ensures that the reversal is always based on the most relevant data, providing accurate and up-to-date visualizations.
Visual Enhancements:
The reversed candlesticks are color-coded for easy interpretation: green for upward movements and red for downward movements, based on the reversed data.
The Ichimoku Cloud is filled with semi-transparent colors to clearly distinguish between bullish and bearish conditions even in its reversed state.
Debugging Aids:
For transparency and accuracy, the indicator plots the maximum and minimum price lines used for the reversal calculations. This allows users to verify the internal workings of the indicator and ensure the reversal logic is correctly applied.
Usage:
This indicator is ideal for advanced traders and analysts who want to explore market behavior from an unconventional angle. By reversing both the candlestick chart and the Ichimoku Cloud, it provides a unique perspective that can uncover new trading opportunities and enhance market analysis.
Customization:
Users can customize the periods for the Tenkan-sen, Kijun-sen, and Senkou Span B, as well as the displacement for the Ichimoku Cloud. This flexibility allows traders to adapt the indicator to their specific trading strategies and timeframes.
Conclusion:
The "Advanced Fully Reversed Candles with Reversed Ichimoku" indicator is a powerful tool that transforms traditional market analysis. By inverting both price movements and key technical indicators, it opens up a new dimension of trading insights, helping traders to see the market in a completely different light.
Parameters:
Tenkan-sen period (default: 9)
Kijun-sen period (default: 26)
Senkou Span B period (default: 52)
Displacement (default: 26)
How to Apply:
Add the script to your TradingView account via the Pine Editor.
Customize the parameters according to your trading strategy.
Analyze the reversed candlestick chart and Ichimoku Cloud to gain unique insights into market trends and potential reversal points.
Edufx's Power of ThreeIndicator Overview
Name: Edufx's Power of Three
Purpose:
To highlight the high and low price ranges of specific hourly candles on a chart.
To visualize these ranges using rectangles.
Features
Visibility Toggle:
Users can enable or disable the visibility of the rectangles highlighting the high and low price ranges of the specified candles.
Customizable Rectangle Length:
Users can adjust the length of the rectangles that extend from the specified candle's high and low prices.
Price Range Tracking:
The high and low prices of the specified candles are tracked and stored.
Rectangle Drawing:
Rectangles are drawn from 5 bars before the end of the specified hour, highlighting the high and low price ranges.
How It Works
Price Range Tracking:
During each specified hour, the high and low prices are updated with the highest and lowest prices observed.
Rectangle Drawing:
At the end of each specified hour, the high and low prices are used to draw rectangles extending 5 bars backward from the end of the hour.
Rectangles are color-coded (red, green, and blue) for easy identification.
Usage
This indicator is useful for traders who want to monitor and react to key price levels at specific times of the day.
The visual rectangles help in identifying potential trading opportunities based on price action relative to these key levels.
Example
If the price moves above the high of the specified candle but fails to close above it, a visual rectangle will highlight this price range.
Similarly, if the price moves below the low of the specified candle but fails to close below it, the rectangle will indicate this range.
This indicator provides visual aids to assist traders in making informed decisions based on the behavior of price at specific key levels.
All Possible Trendlines W/AlertsCore Functionality:
Trendline Detection: The system uses a proprietary algorithm that goes beyond traditional pivot point connection methods. It analyzes price action patterns and market structure to identify potential trendlines that many traders might overlook. This includes not just obvious trendlines, but also subtle ones that could become significant in the future.
Significance Evaluation: Unlike conventional indicators that treat all trendlines equally, the system employs a unique scoring system to evaluate each trendline's importance. This system considers factors such as the number of touch points, the length of the trendline, and its historical reliability in predicting price movements. This allows traders to focus on the most relevant trendlines.
Dynamic Updating: The AITI continuously reassesses and adjusts trendlines as new price data becomes available. This dynamic approach ensures that the indicator adapts to changing market conditions, providing up-to-date and relevant information.
What Makes It Original:
The AITI's originality lies in its holistic approach to trendline analysis. While most indicators focus on identifying a few key trendlines, this system aims to present a complete picture of all possible trendlines in the market. This comprehensive view allows traders to:
- Gain deeper insights into market structure and potential price movements.
- Identify less obvious but potentially significant trendlines that other traders might miss.
- Understand the relative importance of different trendlines, rather than treating all trendlines as equally significant.
The indicator's ability to dynamically update and re-evaluate trendlines in real-time sets it apart from static trendline tools. This ensures that traders always have the most current and relevant information at their disposal.
By providing a more nuanced and complete view of trendlines, the AITI enables traders to make more informed decisions based on a deeper understanding of market structure. This approach to trendline analysis is not readily available in open-source alternatives, making the AITI a valuable tool for traders seeking a more comprehensive technical analysis solution.
MNQ/NQ Rotations [Tiestobob]### Indicator Description: MNQ/NQ Rotations
TO BE USED ONLY ON THE CONTINOUS CONTRACTS NQ1! and MNQ1! It will not work on others or the forward contracts of these.
#### Overview
The MNQ/NQ Rotations indicator is designed for traders of Nasdaq futures (MNQ and NQ) to visualize key price levels where typical market rotations occur. This indicator identifies and highlights the xxx.20 and xxx.80 levels based on empirical data and trading experience, allowing traders to recognize potential support and resistance points during trading sessions.
#### Key Features
- **Timeframe Selection**: The indicator allows users to specify a timeframe for identifying breakout candles, ensuring flexibility across different trading strategies.
- **Active Trading Range**: Users can define an active trading range, focusing the analysis on specific hours when the market is most active.
- **Visual Representation**: The indicator paints horizontal lines at key price levels (xxx.20 and xxx.80), extending them across a user-defined length to aid in visual analysis.
- **Customization**: Users can customize the color of the lines to match their charting preferences.
#### Inputs
- **Timeframe (`tf`)**: Defines the timeframe to select the breakout candle (default: 1 minute).
- **Active Trading Range (`session`)**: Specifies the time range for identifying breakout candles (default: 08:00-12:00).
- **Line Color (`line_color`)**: Allows customization of the line color (default: purple).
#### Logic
1. **Session Validation**: The indicator checks if the current bar falls within the specified active trading range.
2. **Price Point Calculation**: For each candle close, the indicator calculates the nearest xxx.20 and xxx.80 levels.
3. **Line Drawing**: Horizontal lines are drawn at these key levels, extending a specified length forward to highlight potential rotation points.
#### Use Cases
- **Support and Resistance Identification**: By highlighting the xxx.20 and xxx.80 levels, traders can easily spot areas where the market is likely to reverse or consolidate.
- **Breakout Trading**: Traders can use the indicator to identify breakout levels and set appropriate entry points.
- **Risk Management**: The visual cues provided by the indicator can help traders set more effective stop-loss and take-profit levels.
#### Example
A trader using a 1-minute timeframe with an active trading range from 08:00 to 12:00 will see horizontal lines painted at the nearest xxx.20 and xxx.80 levels for each candle close during this period. These lines serve as visual markers for typical rotation points, aiding in decision-making and trade planning.
#### Conclusion
The MNQ/NQ Rotations indicator is a powerful tool for traders looking to enhance their market analysis of Nasdaq futures. By focusing on empirically derived rotation levels, this indicator provides clear visual cues for identifying key price levels, supporting more informed trading decisions.
