Effective Volume (ADV) v3Effective Volume (ADV) v3: Enhanced Accumulation/Distribution Analysis Tool
This indicator is an updated version of the original script by cI8DH, now upgraded to Pine Script v5 with added functionality, including the Volume Multiple feature. The tool is designed for analyzing Accumulation/Distribution (A/D) volume, referred to here as "Effective Volume," which represents the volume impact in alignment with price direction, providing insights into bullish or bearish trends through volume.
Accumulation/Distribution Volume Analysis : The script calculates and visualizes Effective Volume (ADV), helping traders assess volume strength in relation to price action. By factoring in bullish or bearish alignment, Effective Volume highlights points where volume strongly supports price movements.
Volume Multiple Feature for Volume Multiplication : The Volume Multiple setting (default value 2) allows you to set a multiplier to identify bars where Effective Volume exceeds the previous bar’s volume by a specified factor. This feature aids in pinpointing significant shifts in volume intensity, often associated with potential trend changes.
Customizable Aggregation Types : Users can choose from three volume aggregation types:
Simple - Standard SMA (Simple Moving Average) for averaging Effective Volume
Smoothed - RMA (Recursive Moving Average) for a less volatile, smoother line
Cumulative - Accumulated Effective Volume for ongoing trend analysis
Volume Divisor : The “Divide Vol by” setting (default 1 million) scales down the Effective Volume value for easier readability. This allows Effective Volume data to be aligned with the scale of the price chart.
Visualization Elements
Effective Volume Columns : The Effective Volume bar plot changes color based on volume direction:
Green Bars : Bullish Effective Volume (volume aligns with price movement upwards)
Red Bars : Bearish Effective Volume (volume aligns with price movement downwards)
Moving Average Lines :
Volume Moving Average - A gray line representing the moving average of total volume.
A/D Moving Average - A blue line showing the moving average of Accumulation/Distribution (A/D) Effective Volume.
High ADV Indicator : A “^” symbol appears on bars where the Effective Volume meets or exceeds the Volume Multiple threshold, highlighting bars with significant volume increase.
How to Use
Analyze Accumulation/Distribution Trends : Use Effective Volume to observe if bullish or bearish volume aligns with price direction, offering insights into the strength and sustainability of trends.
Identify Volume Multipliers with Volume Multiple : Adjust Volume Multiple to track when Effective Volume has notably increased, signaling potential shifts or strengthening trends.
Adjust Volume Display : Use the volume divisor setting to scale Effective Volume for clarity, especially when viewing alongside price data on higher timeframes.
With customizable parameters, this script provides a flexible, enhanced perspective on Effective Volume for traders analyzing volume-based trends and reversals.
Consolidation
Range Tightening Indicator (RTI)The Range Tightening Indicator (RTI) quantifies price volatility relative to recent price action, helping traders identify low-volatility consolidations that often precede breakouts.
Range Tightening is calculated by measuring the range between each bar’s high and low prices over a chosen lookback period.
A 5-bar period is recommended for shorter-term momentum setups and a 15-bar period is recommended for swing trading. An option for a custom period is available to suit specific strategies. The default look back for custom is 50, ideal for longer term traders.
Other Key Features:
Dynamic Color Coding: The RTI line turns green when volatility doubles after a drop to or below 20, flagging significant volatility shifts commonly seen before breakouts.
Low-Volatility Dots: Orange dots appear on the RTI line when two or more consecutive bars show RTI values below 20, visually marking extended low-volatility periods.
Volatility Zones: Shaded zones provide quick context:
Zone 1 (0-5): Extremely tight volatility, shown in red.
Zone 2 (5-10): Low volatility, shown in light green.
Zone 3 (10-15): Moderate low volatility, shown in green.
The RTI indicator is ideal for traders looking to anticipate breakout conditions, with features that highlight consolidation phases, support momentum strategies, and help improve entry timing by focusing on shifts in volatility.
This indicator was inspired after Deepvue's RMV Indicator, but uses a different calculation. Results may vary.
Candle Range Detector [UAlgo]The "Candle Range Detector " is a Pine Script™ indicator designed to identify trading opportunities based on the concept of price consolidation and breakout. It analyzes the price range of a specified number of previous candles and detects when subsequent candles stay within that range (consolidation). The indicator then highlights potential breakouts above or below the range and provides calculated Take Profit (TP) and Stop Loss (SL) levels based on your chosen method (percentage or Average True Range - ATR).
🔶 Key Features
Configurable Range: Define the minimum number of candles required to establish a valid price range.
Breakout Detection: Identify potential breakouts above or below the established range based on your selection (close price or wick).
Take Profit & Stop Loss Levels: The indicator calculates TP and SL levels based on your chosen method (percentage or ATR) and user-defined multipliers. The calculated TP and SL levels are visualized as horizontal lines with corresponding labels ("Take Profit" and "Stop Loss").
Optional Count Display: You can choose to display the number of candles currently within the range.
🔶 Disclaimer:
Not Financial Advice: This indicator is intended for educational and informational purposes only. It does not constitute financial advice or recommendations to buy, sell, or hold any financial instruments.
Use at Own Risk: Trading involves substantial risk of loss and is not suitable for all investors. Users of this indicator should exercise caution and conduct their own research and analysis before making any trading decisions.
Performance Not Guaranteed: Past performance is not indicative of future results. While the indicator aims to assist traders in analyzing market trends, there is no guarantee of accuracy or success in trading operations.
🔷 Related Scripts
Range Finder
Wave Consolidation [LuxAlgo]The Wave Consolidation indicator uses market profiles to highlight consolidation zones based on upward and downward moves determined when a Higher-High or Lower-Low is created.
Users can control the amount of consolidation zones to display and the sensitivity of the swing point detection used to return those zones.
🔶 USAGE
These zones are intended as areas of interest to traders where price has seen historical interactions, which can be interpreted as support and resistance. By identifying these areas of interest before the price returns to them, traders are able to anticipate and prepare for various scenarios and respond dynamically to the behavior of the market, as seen below.
Rejection: A quick move away from the zone may indicate that the area is either overvalued or undervalued, leading to a fast movement in the opposite direction.
Breakthrough: Moving beyond a zone could indicate acceptance at that specific price, potentially signaling a shift in momentum or the start of a new trend. In a strong major trend, zones created from smaller trends could be used as price targets for taking profit and managing risk.
Consolidation: Holding these zones might suggest a market in balance at these levels, this could lead to opportunities for range-bound trading.
Below is an example of the Rejection and Consolidation scenarios described above.
Note: By analyzing the tests and retests of these zones, traders can also gain further insight into where participants are interacting in the market.
🔶 DETAILS
The full process for acquiring and managing these zones is described in the sub-sections below.
🔹 Creation
By only considering market movements creating a higher-high or lower-low, we can identify meaningful, directional, moves which can then be used to calculate zones.
Once a move is identified, the script calculates a volume profile spanning the length of the given move.
The width of the zones is determined starting from the POC of the profile and expanding outwards until the value of the profile's row falls below the profile's average.
Note: By increasing the "Multiplier" Input, Users can increase the threshold the script uses to determine zone width in multiples of Standard Deviations above the Average.
While this area is similar to a VP Value Area, it is not intended to replicate a value zone. The calculation is not concerned with capturing any % of the total profile's volume within the zone and only analyzes based on a fixed inclusion threshold.
🔹 Management
To keep clutter to a minimum, If a new zone overlaps a recently created zone, the zones are grouped as one. This is especially helpful in areas where prices are ranging, creating multiple zones in a very similar area.
Zones before management:
Zones after management:
🔹 Deletion
Just because a zone is crossed, does not make it immediately unimportant!
Once a Zone is mitigated (crossed in the opposite direction of its bias) it is reduced to a single dotted line representing the outer threshold for the zone. These lines are important to watch, as the price will often retest a break. For this reason, they will stay on the chart until the next swing point is detected when they will finally be deleted for good.
Below is an example of activity around a broken zone before it is deleted.
Below is the same example 2bBars later , once the new swing is confirmed, the dotted lines are deleted and new zones are created.
Notice how the newly formed resistance zone is in the same area where we noticed sellers previously.
🔶 SETTINGS
🔹 Structure
Display Structure: Determines if swing structures are displayed.
Structure Length: Sets Length for structure identification.
🔹 Zones
Volume-Based Calculations: Opt to use a "Volume" based Profile Calculation instead of the default "Price Action" based Calculation.
Display Count: Sets the specific number of bullish and bearish zones to display on the chart.
Multiplier: Sets the multiplier to use for the value cut-off for determining zone boundaries.
🔹 Style
Display Average Lines: Toggles on/off the average (mid) lines for the zones.
Consolidation & Head and Shoulders ScannerHello Traders!
The Consolidation & Head and Shoulders Scanner utilizes a unique swing-based pattern recognition to pinpoint consolidation and (inverse) head and shoulders patterns in real-time with unparalleled precision.
The rectangle pattern, also known as a trading range or a consolidation pattern, is characterized by horizontal lines that act as support and resistance levels, creating a rectangular shape.
The head and shoulders chart pattern is a technical analysis pattern used to identify potential trend reversals in financial markets. It consists of three swing highs (peaks), with the middle peak being the highest and the two outside swing highs being slightly lower. The middle peak is referred to as the "head" and the two outside peaks are referred to as the "shoulders."
The pattern typically forms after an uptrend and is in most cases a bearish signal. The neckline is a support level that connects the lows of the two shoulders. Once the price breaks below the neckline, the pattern is confirmed, and a new down trend starts. Conversely, an "inverse head and shoulders" pattern forms after a downtrend and is a bullish signal.
The Consolidation & Head and Shoulders Scanner is designed to operate in a fully automated manner, detecting consolidation patterns, head and shoulders patterns and inverse head and shoulders patterns across the symbol and timeframe that you select. It grants you the ability to simultaneously scan for patterns across as many as 20 distinct symbols.
Feature List
Real-time consolidation and (inverse) head and shoulders pattern detection
Breakout alerts
Customizable pattern size and accuracy
Customizable look and feel
The value of this indicator is to support traders to easily identify consolidations and (inverse) head and shoulders patterns in an automated way and across many different markets at the same time. The special swing-based pattern recognition makes this indicator unique. The trader saves a lot of time scanning the markets for consolidation and head and shoulders patterns, since finding the pattern and alerting for a breakout is done automatically for the trader.
For a visualization of the detected patterns, you can add the TRN Consolidation and Range Pattern and the TRN Head and Shoulders Pattern indicators to your chart.
How does Consolidation & Head and Shoulders Scanner work?
On the right side of the chart, you can find a table displaying the symbols monitored by our scanner for pattern and breakout detection (first column). The table provides information on the status of each symbol.
ACTIVE – Pattern building up
UP – Upside Breakout
DN – Downside Breakout
UP CONF – Upside Breakout confirmed
DN CONF – Downside Breakout confirmed
FAILED – Pattern failed to get confirmed
This visual representation allows you to quickly identify the evolving pattern dynamics across different symbols, helping you stay informed and make timely trading decisions.
In the second and fifth column, the status of consolidation patterns with two different consolidation sizes gets displayed. In the third and fourth column, the status of detected long and short head and shoulders patterns is displayed. The same goes for column seven and eight but with a different head and shoulders size which is customizable in the settings.
The scanner operates specifically on the timeframe you have selected in TradingView, ensuring that the detected patterns and breakouts align precisely with your trading perspective. F If the scanner displays a pattern or a breakout, you just can switch to this instrument and start trading it if you like what you see.
Follow these instructions to discover how you can utilize the scanner for seamless and simplified chart pattern detection like never before:
Add Symbols
Go to indicator settings and scroll down to the "Symbols" section. The enabled symbols can be recognized by the check marks. Click on one of them and use the search function to add the symbol of your choice to the scanner. You can search for up to 20 different Symbols at the same time.
Use Alerts (optional but recommended)
You can also use the built-in alerts to easily get notified when a pattern occurs. In the indicator settings in the "Alerts" section you can choose whether you want to get notified when a pattern is
in the making (Pattern active),
confirms an up breakout (B/O Up Confirmed)
confirms a down breakout (B/O Down Confirmed)
(Unconfirmed) in case a pattern breakout occurs, even if the pattern is not yet confirmed
This allows you to stay informed about potential breakout opportunities that are still awaiting confirmation.
Customization and Settings
The indicator can scan for smaller and larger patterns at the same time. Adjust the consolidation and head and shoulders sizes in the indicator settings to align them with your preferences. A larger size results in larger patterns. Depending on the asset class, the market or the market phase, different sizes can be used for pattern detection.
To detect more patterns, increase the tolerance level, even though it may result in lower accuracy. However, be mindful that a higher tolerance level may result in more patterns hitting their stop-loss.
Risk Disclaimer
The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.
Consolidation Score ScreenerIn trading, a consolidation range is like a timeout after a big move in the price of a stock or symbol.
It's when the market takes a breather, neither pushing the price up nor down too hard.
Visually, it looks like the price moving sideways on a chart , with highs and lows staying within a certain range.
so this indicator is created to help myself and you decide if its a ranging market and what's the score of that consolidation range
The score ranges between 0 and 10 , where 10 is the max consolidation score , meaning this stock or the symbol is at its highest peak of consolidation .
What would you see using this indicator ?
Symbols circles , inside these circles it will print the consolidation score ..
in the middle of the indicator it will show the range of all the 20 symbols scores .
so it will give you like overall ranging value for your 20 symbols
Settings :
TimeFrame : TimeFrame input to select which time frame you want your indicator to analysis
Range length : The Range that you would want your indicator to take into consideration when doing its analysis .
Features :
20 symbols analysis
Multi timeframe capability
Enjoy .
Consolidation and Range PatternHello Traders!
The TRN Consolidation and Range Pattern indicator utilizes a unique swing-based pattern recognition to pinpoint consolidation zones in real-time with unparalleled precision. The rectangle pattern, also known as a trading range or a consolidation pattern, is characterized by horizontal lines that act as support and resistance levels, creating a rectangular shape.
The value of this indicator is to support traders to easily identify consolidations and ranges. The special swing-based pattern recognition and the numerous built-in premium features make this indicator unique. Below, you'll find a list of these features.
Feature List
Real-time consolidation/range detection
Visualization of entry, stop-loss and take-profit levels
Pattern performance statistics
Calculation of risk rewards ratio
Risk Management
Breakout alerts
Customizable pattern size and accuracy
Customizable look and feel
The trader saves a lot of time scanning the markets for consolidation patterns, since everything is done automatically for the trader: Finding the consolidation, looking and alerting for a breakout, computing the entry, stop loss and take profit levels as well as handling the risk management and computing the optimal order quantity. Now, we describe how a combination of these features enhances the trading performance of confirmed consolidation patterns.
How to Trade with the TRN Consolidation and Range Pattern
Identify the Pattern
Add the TRN Consolidation and Range Pattern to your chart and look for the pattern on the asset and timeframe of your choice. The pattern is detected in real-time. If the pattern develops further in the next bars, then the indicator updates the consolidation zone until a breakout is confirmed.
You can also use the built-in alerts to easily get notified when a pattern occurs. In the indicator settings in the "Alerts" section you can choose whether you want to get notified when a pattern is in the making (Pattern active), confirms a breakout to the upside (B/O Up Confirmed) or confirms a breakout to the downside (B/O Down Confirmed). By selecting the "Unconfirmed" option, you will receive notifications when a pattern breakout occurs, even if it is not yet confirmed. This allows you to stay informed about potential breakout opportunities that are still awaiting confirmation.
Check Pattern Statistics
The pattern statistics make it easy for you to see how successful a pattern is on the asset and timeframe you are watching. You should always check them out before entering a trade. The chart displays the statistics in the upper right corner. These statistics are categorized into two sections: "long" for patterns with an upward breakout and "short" for patterns with a downward breakout.
In the initial columns, labeled as "short" and "long", the identified breakouts are further divided based on whether the risk-reward ratio (R) is below a specified value (< x) or equal to/greater than the specified value (>= x). The following columns represent the count of the events:
1. Occ. (Occurrence) categorized according to the values of R from the first column
2. TP1, TP2, TP3 (Take Profit) - targets 1, 2 and 3
3. SL (Stop Loss)
4. T/O (Time Out) - neither stop loss or targets where hit in a certain amount of time
Breakout – Entry, Stop Loss and Targets
The indicator automatically displays the entry price line (EP) in grey et the point where the price breaks through the resistance or support levels, indicating that the consolidation period is over. Once a breakout has been confirmed, place a buy order near the EP level for a long position, or a sell order for a short position. Set your stop-loss at the price level of the red stop-loss line (SL) and set your take-profits at the price level of the green take-profit-lines (TP1, TP2, TP3). Note that your risk-reward ratio (R) was calculated based on TP1.
Risk Management
The TRN Consolidation and Range Pattern comes with a built-in risk management feature. Just go to the settings and scroll down to the section "Risk Management".
Here you can enter your Account Size and the percentage you want to Risk when you enter a position after a pattern breakout.
In the "Trade Management" section, you have the option to define the minimum accepted risk-reward ratio for confirmed rectangles. This means that breakouts of patterns failing to meet the minimum risk-reward ratio will not be considered as confirmed signals.
If a breakout gets confirmed, the indicator automatically calculates the position size (Quantity). You can read the quantity from the gray entry point line (EP), which is located to the right of the risk-reward ratio (R).
Customization and Settings
The indicator can scan for smaller and larger patterns at the same time. Adjust the consolidation sizes in the indicator settings to align them with your preferences. A larger size results in larger consolidations. Depending on the asset class, the market or the market phase, different sizes can be used for the consolidation detection.
To detect more patterns, increase the tolerance level, even though it may result in lower accuracy. However, be mindful that a higher tolerance level may result in more patterns hitting their stop-loss. Look for a tolerance level that leads to favorable statistics and focus on trading patterns with a proven performance history.
Finally, you have the flexibility to customize various visual elements, such as the color of the pattern and whether to display values like price, target, or risk-reward ratio on your chart. You can also choose where these values appear.
Computation Details
The real-time detection of the consolidations and ranges utilizes a unique swing-based pattern recognition. The difference to other swing-based computations is that the pivot points are identified without a look-ahead value. The result is a faster and better real-time detection. Furthermore, the detection of equal lows or highs which form a support or resistance level is based on a dynamic volatility measurement similar to the ATR. The tolerance level unites several internal parameters into one and results in a user-friendly setting.
Risk Disclaimer
The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.
Range Finder [UAlgo]🔶 Description:
The "Range Finder " indicator aims at identifying and visualizing price ranges within a specified number of candles. By utilizing the Average True Range (ATR) indicator and Simple Moving Average (SMA), it detects potential breakout conditions and tracks consecutive candles that remain within the breakout range. This indicator offers flexibility by allowing users to customize settings such as range length, method for determining range breaks (based on either candle close or wick), and visualization options for displaying range breaks on the chart.
🔶 Key Features
Identifying Ranges: The Range Finder automatically adapts to the market by continuously evaluating the Average True Range (ATR) and its Simple Moving Average (SMA). This helps in dynamically adjusting the range based on market volatility.
Range Length: Users can specify the number of candles to be used for constructing the range via the "Range Length" input setting. This allows for customization based on trading strategies and preferences.
Range Break Method: The indicator offers the flexibility to choose between two methods for identifying range breaks. Users can select between "Close" or "Wick" based on their preference for using the closing price or the highs and lows (including wicks) of candles for defining the breakout.
Show Range Breaks: This option enables visual representation of range breaks on the chart. When activated, labels with the letter "B" will appear at the breakout point, colored according to the breakout direction (upward breakouts in the chosen up range color and downward breakouts in the chosen down range color).
Range Color Customization: The indicator provides the ability to personalize the visual appearance of the range by selecting preferred colors for ranges indicating potential upward and downward breakouts.
🔶 Disclaimer
It's important to understand that the Range Finder indicator is intended for informational purposes only and should not be solely relied upon for making trading decisions. Trading financial instruments involves inherent risks, and past performance is not necessarily indicative of future results.
Fractal Consolidations [Pro+]Introduction:
Fractal Consolidations Pro+ pushes the boundaries of Algorithmic Price Delivery Analysis. Tailored for traders seeking precision and efficiency to unlock hidden insights, this tool empowers you to dissect market Consolidations on your terms, live, in all asset classes.
What is a Fractal Consolidation?
Consolidations occur when price is trading in a range. Normally, Consolidation scripts use a static number of "lookback candles", checking whether price is continuously trading inside the highest and lowest price points of said Time window.
After years spent studying price action and numerous programming attempts, this tool succeeds in veering away from the lookback candle approach. This Consolidation script harnesses the delivery mechanisms and Time principles of the Interbank Price Delivery Algorithm (IPDA) to define Fractal Consolidations – solely based on a Timeframe Input used for context.
Description:
This concept was engineered around price delivery principles taught by the Inner Circle Trader (ICT). As per ICT, it's integral for an Analyst to understand the four phases of price delivery: Consolidation , Expansion , Retracement , and Reversal .
According to ICT, any market movement originates from a Consolidation, followed by an Expansion .
When Consolidation ranges begin to break and resting liquidity is available, cleaner Expansions will take place. This tool's value is to visually aid Analysts and save Time in finding Consolidations in live market conditions, to take advantage of Expansion moves.
CME_MINI:ES1! 15-Minute Consolidation setting up an Expansion move, on the 10 Minute Chart:
Fractal Consolidations Pro+ doesn't only assist in confirming Higher Timeframe trend continuations and exposing opportunities on Lower Timeframes. It's also designed for both advanced traders and new traders to save Time and energy in navigating choppy or rangebound environments.
CME_MINI:ES1! 30 Minute Consolidation forming Live, on the 5 Minute Chart:
By analyzing past price action, traders will find algorithmic signatures when Consolidations are taking place, therefore providing a clearer view of where and when price is likely to contract, continue consolidating, breakout, retrace, or reverse. A prominent signature to consider when using this script is ICT's Market Maker Buy/Sell Models. These signatures revolve around the engineering of Consolidations to manipulate price in a specific direction, to then reverse at the appropriate Time. Each stage of the Market Maker Model can be identified and taken advantage of using Fractal Consolidations.
CME_MINI:NQ1! shift of the Delivery Curve from a Sell Program to a Buy Program, Market Maker Buy Model
Key Features:
Tailored Timeframes: choose the Timeframe that suits your model. Whether you're a short-term enthusiast eyeing 1 Hour Consolidations or a long-term trend follower analyzing 4 Hour Consolidations, this tool gives you the freedom to choose.
FOREXCOM:EURUSD Fractal Consolidations on a 15 Minute Chart:
Auto-Timeframe Convenience: for those who prefer a more dynamic and adaptive approach, our Auto Timeframe feature effortlessly adjusts to the most relevant Timeframe, ensuring you stay on top of market consolidations without manually adjusting settings.
Consolidation Types: define consolidations as contractions of price based on either its wick range or its body range.
COMEX:GC1! 4 Hour Consolidation differences between Wick-based and Body-based on a 1 Hour Chart:
Filtering Methods: combine previous overlapping Consolidations, merging them into one uniform Consolidation. This feature is subject to repainting only while a larger Consolidation is forming , as smaller Consolidations are confirmed. However once established, the larger Consolidation will not repaint .
FOREXCOM:GBPUSD 15 Minute Consolidation Differences between Filter Consolidations ON and OFF:
IPDA Data Range Filtering: this feature gives the Analyst control for selective visibility of Consolidations in the IPDA Data Range Lookback . The Analyst can choose between 20, 40, and 60 days as per ICT teachings, or manually adjust through Override.
INDEX:BTCUSD IPDA40 Data Range vs. IPDA20 Data Range:
Extreme Float: this feature provides reference points when the price is outside the highest or lowest liquidity levels in the chosen IPDA Data Range Lookback. These Open Float Extremes offer critical insights when the market extends beyond the Lookback Consolidation Liquidity Levels . This feature helps identify liquidity extremes of interest that IPDA will consider, which is crucial for traders in understanding market movements beyond the IPDA Data Ranges.
INDEX:ETHUSD Extreme Float vs. Non-Extreme Float Liquidity:
IPDA Override: the Analyst can manually override the default settings of the IPDA Data Range Lookback, enabling more flexible and customized analysis of market data. This is particularly useful for focusing on recent price actions in Lower Timeframes (like viewing the last 3 days on a 1-minute timeframe) or for incorporating a broader data range in Higher Timeframes (like using 365 days to analyze Weekly Consolidations on a daily timeframe).
Liquidity Insight: gain a deeper understanding of market liquidity through customizable High Resistance Liquidity Run (HRLR) and Low Resistance Liquidity Run (LRLR) Consolidation colors. This feature helps distinguishing between HRLR (high resistance, delayed price movement) and LRLR (low resistance, smooth price movement) Consolidations, aiding in quick assessment of market liquidity types.
TVC:DXY Low Resistance vs. High Resistance Consolidation Liquidity Behaviour and Narrative:
Liquidity Raid Type: decide whether to categorize a Consolidation liquidity raid by a wick or body trading through a level.
CBOT:ZB1! Wick vs. Body Liquidity Raid Type:
Customizable User Interface: tailor the visual representation to align with your preferences. Personalize your trading experience by adjusting the colors of consolidation liquidity (highs and lows) and equilibrium, as well as line styles.
Consolidation indicator█ Overview
The "Consolidation Indicator" is a custom indicator for TradingView designed to identify consolidation periods in the price chart. Consolidation typically occurs when the price of an asset moves within a narrow range, and this indicator helps traders recognize such conditions. It can be a useful tool for traders looking to identify potential breakouts or periods of reduced volatility.
█ Indicator Settings
1 — Timeframe: This setting allows you to select the timeframe for which you want to analyze consolidation. You can choose from various timeframes available in TradingView.
2 — Price Smoothing Length: This parameter controls the smoothing of price data. You can adjust the value, with a minimum of 1, to control the level of smoothing applied to the price data.
3 — Average Range Length (range_len): This setting defines the length of the average range used in the calculation of the indicator. By default, it is set to 14.
4 — Threshold for Narrow Range (NR_threshold): The indicator will consider a price range as narrow if it falls below this threshold as a percentage of the average range. It is set to 80% by default.
5 — Consecutive Narrow Ranges for Consolidation: This parameter allows you to specify how many consecutive narrow price ranges are required to confirm a consolidation period. The default value is 3.
6 — Candle Color: You can choose the color for the consolidation candles. The default is a bright green color.
█ Indicator Output
The indicator visually displays consolidation and breakout periods on the price chart using colored candles and breakout icons.
• Candles: During a consolidation period, the indicator colorizes the candles in a specified color (default is green) with a transparency that decreases as the number of consecutive narrow ranges increases. This allows you to easily spot consolidation periods on the chart.
• Breakout Icons: The indicator also places a breakout icon (💥) below the price chart to indicate potential breakout opportunities. When a breakout condition is met, the icon appears with an orange color.
█ Alerts
The indicator provides two alert conditions:
1 — Consolidation Begins: This alert triggers when a consolidation period starts. It indicates that the price is moving within a narrow range compared to the average range.
2 — Breakout: This alert triggers when a potential breakout from the consolidation is detected.
█ How to Use
1 — Apply the "Consolidation Indicator" to your TradingView chart by adding it as a custom indicator.
2 — Customize the indicator settings based on your trading preferences, such as timeframe, smoothing length, and threshold for a narrow range.
3 — Monitor the chart for colored candles. The indicator will color candles to highlight consolidation periods.
4 — Look for the breakout icon (💥) below the chart, which indicates potential breakout opportunities.
5 — Set up alerts to be notified when a consolidation begins or a breakout is detected, helping you stay on top of potential trading opportunities.
Keep in mind that this indicator is a tool to assist in identifying consolidation periods, and it should be used in conjunction with other analysis methods for comprehensive trading decisions.
Search for consolidations - AstroHubThe indicator is designed to identify consolidation periods on the chart of a trading instrument.
Key factors and parameters to consider when using this indicator:
1. Consolidation length (consol_length): This parameter allows you to set the length of the period in which consolidation will be sought. The higher the value, the longer consolidation periods will be taken into account. The recommended value is 20.
2. Calculation of the mathematical model: The indicator is based on a mathematical model that calculates the average price range (avg_range) within the specified consolidation period. Then, the exponential moving average of the obtained values is averaged (ta.rma) to obtain consolidation. If the price range is smaller than the consolidation value, the current period is considered consolidation.
3. Chart display: The program allows you to display consolidation on the chart as a label (plotshape) beneath the candlesticks. Consolidation will be shown in blue with the label "Consolidation". The indicator is placed below the current candlesticks.
How to use the indicator:
1. Load the script into your market analysis platform (e.g. TradingView).
2. Set the desired consolidation length (consol_length).
3. The indicator will automatically calculate consolidation based on the specified length.
4. Blue labels with the text "Consolidation" will be displayed on the chart for each consolidation period.
Important points to consider when using this indicator:
1. The indicator does not predict the direction of price movement after consolidation. It only shows consolidation periods on the chart.
2. The results of the indicator may vary depending on the chosen consolidation length. It is recommended to conduct several experiments with different values to find the optimal period for the instrument and timeframe.
I hope this description helps you better understand and assess the functionality and application of this indicator. Good luck with your usage!
TrendCylinder (Expo)█ Overview
The TrendCylinder is a dynamic trading indicator designed to capture trends and volatility in an asset's price. It provides a visualization of the current trend direction and upper and lower bands that adapt to volatility changes. By using this indicator, traders can identify potential breakouts or support and resistance levels. While also gauging the volatility to generate trading ranges. The indicator is a comprehensive tool for traders navigating various market conditions by providing a sophisticated blend of trend-following and volatility-based metrics.
█ How It Works
Trend Line: The trend line is constructed using the closing prices with the influence of volatility metrics. The trend line reacts to sudden price changes based on the trend factor and step settings.
Upper & Lower Bands: These bands are not static; they are dynamically adjusted with the calculated standard deviation and Average True Range (ATR) metrics to offer a more flexible, real-world representation of potential price movements, offering an idea of the market's likely trading range.
█ How to Use
Identifying Trends
The trend line can be used to identify the current market trend. If the price is above the trend line, it indicates a bullish trend. Conversely, if the price is below the trend line, it indicates a bearish trend.
Dynamic Support and Resistance
The upper and lower bands (including the trend line) dynamically change with market volatility, acting as moving targets of support and resistance. This helps set up stop-loss or take-profit levels with a higher degree of accuracy.
Breakout vs. Reversion Strategies
Price movements beyond the bands could signify strong trends, making it ideal for breakout strategies.
Fakeouts
If the price touches one of the bands and reverses direction, it could be a fakeout. Traders may choose to trade against the breakout in such scenarios.
█ Settings
Volatility Period: Defines the look-back period for calculating volatility. Higher values adapt the bands more slowly, whereas lower values adapt them more quickly.
Trend Factor: Adjusts the sensitivity of the trend line. Higher values produce a smoother line, while lower values make it more reactive to price changes.
Trend Step: Controls the pace at which the trend line adjusts to sudden price movements. Higher values lead to a slower adjustment and a smoother line, while lower values result in quicker adjustments.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Consolidation Spotter Multi Time FrameThis tool is designed for traders looking to spot areas of consolidation on their charts across various time frames. It highlights these consolidation areas using visually appealing boxes, making it easier to identify potential breakout or breakdown zones.
How To Use:
Spotting Consolidation: When you see a box form on your chart, this represents a consolidation zone. Within this zone, the price is moving sideways without a strong upward or downward trend.
Anticipating Breakouts & Breakdowns: Watch the price as it approaches the edges of the box. A movement outside the box can signal a potential breakout (if above the box) or a breakdown (if below the box). This is where momentum shifts can happen.
Momentum Confirmation: Once the price clearly moves out of the box, it indicates a momentum shift. If the price moves upwards out of the box, this can be seen as bullish momentum. Conversely, if the price moves downwards out of the box, this can be seen as bearish momentum.
To use the tool effectively, adjust the settings to suit your trading style, choose your preferred visual theme, and watch as the script highlights key consolidation areas on your chart.
Tip: To visualize fractals, consider using multiple instances of the "Consolidation Spotter" indicator, each set to a different timeframe. This approach allows you to observe consolidations nested within larger consolidations, offering deeper insights into market structures. 😉
Consolidation Finder Expo [serkany88]It's relatively easy to create a repainting system where you can detect consolidation but it can be pretty hard to detect breakouts while the consolidation is happening live. This experimental approach came to my mind after brainstorming a bit.
What it does
This indicator DOES NOT REPAINT and try to show consolidation zones by coloring the bars or background to a selected color(default white)
How it works
In this approach we use weighted standard deviation of Vidya (Variable Index Dynamic Average created by Tushar Chande). The reason we use vidya is it's length is actually being adapted to volatility and lookback is dynamically adjusted. After getting vidya of base we also create same length vidya of high's and low's and get weighted standard deviation of those. After this we add and subtract those with base vidya and and get their average with our multiplier weight starting from the first bar. If our current value is higher than the average it means we are not in consolidation, else we are thus the bar and background will be painted.
How to use
Consolidation Finder can be used with your existing bot strategy as an additional filter or can be used with your manual trading system as an additional filter or detect breakouts. But be aware that you might need to tinker with length and multipliers in the settings depending on your timeframe to get best results possible before using it reliably. You can also enable the plots of vidya's from the style tab which is disabled by default to see how the deviations actually move if you are interested in it.
Price Legs: Average Heights; 'Smart ATR'Price Legs: Average Heights; 'Smart ATR'. Consol Range Gauge
~~ Indicator to show small and large price legs (based on short and long input pivot lengths), and calculating the average heights of these price legs; counting legs from user-input start time ~~
//Premise: Wanted to use this as something like a 'Smart ATR': where the average/typical range of a distinct & dynamic price leg could be calculated based on a user-input time interval (as opposed to standard ATR, which is simply the average range over a consistent repeating period, with no regard to market structure). My instinct is that this would be most useful for consolidated periods & range trading: giving the trader an idea of what the typical size of a price leg might be in the current market state (hence in the title, Consol Range gauge)
//Features & User inputs:
-Start time: confirm input when loading indicator by clicking on the chart. Then drag the vertical line to change start time easily.
-Large Legs (toggle on/off) and user-input pivot lookback/lookforward length (larger => larger legs)
-Small Legs (toggle on/off) and user-input pivot lookback/lookforward length (smaller => smaller legs)
-Display Stats table: toggle on/off: simple view- shows the averages of large (up & down), small (up & down), and combined (for each).
-Extended stats table: toggle on/off option to show the averages of the last 3 legs of each category (up/down/large/small/combined)
-Toggle on/off Time & Price chart text labels of price legs (time in mins/hours/days; price in $ or pips; auto assigned based on asset)
-Table position: user choice.
//Notes & tips:
-Using custom start time along with replay mode, you can select any arbitrary chunk of price for the purpose of backtesting.
-Play around with the pivot lookback lengths to find price legs most suitable to the current market regime (consolidating/trending; high volatility/ low volatility)
-Single bar price legs will never be counted: they must be at least 2 bars from H>>L or L>>H.
//Credits: Thanks to @crypto_juju for the idea of applying statistics to this simple price leg indicator.
Simple View: showing only the full averages (counting from Start time):
View showing ONLY the large legs, with Time & Price labels toggled ON:
Moving Average-TREND POWER v2.0-(AS)HELLO:
-This indicator is a waaaay simpler version of my other script - Moving Average-TREND POWER v1.1-(AS).
HOW DOES IT WORK:
-Script counts number of bars below or above selected Moving Average (u can se them by turning PLOT BARS on). Then multiplies number of bars by 0.01 and adds previous value. So in the uptrend indicator will be growing faster with every bar when price is above MA. When MA crosess price Value goes to zero so it shows when the market is ranging.
If Cross happens when number of bars is higher than Upper threshold or below Lower threshold indicator will go back to zero only if MA crosses with high in UPtrend and low in DNtrend. If cross happens inside THSs Value will be zero when MA crosses with any type of price source like for example (close,high,low,ohlc4,hl etc.....).This helps to get more crosess in side trend and less resets during a visible trend
HOW TO SET:
Just select what type of MA you want to use and Length. Then based on your preference set values of THSs'
OTHER INFORMATIONS:
-Script was created and tested on EURUSD 5M.
-For bigger trends choose slowerMAs and bigger periods and the other way around for short trends (FasterMAs/shorter periods)
-Below script code you can find not used formulas for calculating indicator value(thanks chat GPT), If you know some pinescript I encourage you to try try them or maybe bulid better ones. Script uses most basic one.
-Pls give me some feedback/ideas to improve and check out first version. Its way more complicated for no real reason but still worth to take a look'
-Also let me know if you find some logical errors in the code.
Enjoy and till we meet again.
Moving Average - TREND POWER v1.1- (AS)0)NOTE:
This is first version of this indicator. It's way more complicated than it should be. Check out Moving Average-TREND POWER v2.1-(AS), its waaaaay less complicated and might be better.Enjoy...
1)INTRODUCTION/MAIN IDEA:
In simpliest form this script is a trend indicator that rises if Moving average if below price or falling if above and going back to zero if there is a crossover with a price. To use this indicator you will have to adjust settings of MAs and choose conditions for calculation.
While using the indicator we might have to define CROSS types or which MAs to use. List of what cross types are defined in the script and Conditiones to choose from.The list will be below.
2) COMPOSITION:
-MA1 can be defined by user in settings, possible types: SMA, EMA, RMA, HMA, TEMA, DEMA, LSMA, WMA.
-MA2 is always ALMA
3) OVERLAY:
Default is false but if you want to see MA1/2 on chart you can change code to true and then turn on overlay in settings. Most plot settings are avalible only in OV=false.
if OV=true possible plots ->MA1/2, plotshape when choosen cross type
if OV=false -> main indicator,TSHs,Cross counter
4)PRESETS :
Indicator has three modes that can be selected in settings. First two are presets and do not require selecting conditions as they set be default.
-SIMPLE - most basic
-ABSOLUTE - shows only positive values when market is trending or zero when in range
-CUSTOM - main and the most advanced form that will require setting conditions to use in calculating trend
4.1)SIMPLE – this is the most basic form of conditions that uses only First MA. If MA1 is below selected source (High/Low(High for Uptrend and Low for DNtrend or OHLC4) on every bar value rises by 0.02. if it above Low or OHLC4 it falls by 0.02 with every bar. If there is a cross of MA with price value is zero. This preset uses CROSS_1_ULT(list of all cross types below)
4.2) ABSOLUTE – does not show direction of the trend unlike others and uses both MA1 and MA2. Uses CROSS type 123_ULT
4.3) CUSTOM – here we define conditions manually. This mode is defined in parts (5-8 of description)
5)SETTINGS:
SOURCE/OVERLAY(line1) – select source of calculation form MA1/MA2, select for overlay true (look point 3)
TRESHOLDS(line2). – set upper and lower THS, turn TSHs on/off
MA1(line3) – Length/type of MA/Offset(only if MA type is LSM)
MA2(line4) – length/offset/sigma -(remember to set ma in the way that in Uptrend MA2MA1 in DNtrend)
Use faster MA types for short term trends and slower types / bigger periods for longer term trends, defval MA1/2 settings
are pretty much random so using them is not recomended.
CROSSshape(line5) – choose which cross type you want to plot on chart(only in OV=true) or what type you want to use in counting via for loops,
CROSScount(line6) – set lookback for type of cross choosen above
BOOLs in lines 5 and 6 - plotshape if OV=true/plot CROSScount histogram (if OV=false)
Lines 7 and 8 – PRESET we want to use /SRC for calculation of indicator/are conditions described below/which MAs to use/Condition for
reducing value t 0 - (if PRESET is ABSOLUTE or SIMPLE only SRC should be set(Line 8 does not matter if not CUSTOM))
5)SOURCE for CONDS:
Here you can choose between H/L and OHLC. If H/L value grow when MAlow. If OHLC MAOHLC. H/L is set by default and recommended. This can be selected for all presets not only CUSTOM
6)CROSS types LIST:
“1 means MA1, 2 is MA2 and 3 I cross of MA1/MA2. L stands for low and H for high so for example 2H means cross of MA2 and high”
NAME -DEFINITION Number of possible crosses
1L - cross of MA1 and low 1
1H - cross of MA1 and high 1
1HL - cross of MA1 and low or MA1 and high 2 -1L/1H
2L - cross of MA2 and low 1
2H - cross of MA2 and high 1
2HL - cross of MA2 and low or MA1 and high 2 -2L/2H
12L - cross of MA1 and low or MA2 and low 2 -1L/2L
12H - cross of MA1 and high or MA2 and high 2 -1H/2H
12HL - MA1/2 and high/low 4 -1H/1L/2H/2L
3 -cross of MA1 and MA2 1
123HL -crosses from 12HL or 3 5 -12HL/3
1_ULT - cross of MA1 with any of price sources(close,low,high,ohlc4 etc…)
2_ULT - cross of MA2 with any of price sources(close,low,high,ohlc4 etc…)
123_ULT – all crosses possible of MA1/2 (all of the above so a lot)
7)CRS CONDS:
“conditions to reduce value back to zero”
>/< - 0 if indicator shows Uptrend and there’s a cross with high of selected MA or 0 if in DNtrend and cross with low. Better for UP/DN trend detection
ALL – 0 if cross of MA with high or low no matter the trend, better for detecting consolidation
ULT – if any cross of selected MA, most crosses so goes to 0 most often
8)MA selection and CONDS:
-MA1: only MA1 is used,if MA1 below price value grows and the other way around
MA1price =-0.02
-MA2 – only MA2 is used, same conditions as MA1 but using MA2
MA2price =-0.02
-BOTH – MA1 and MA2 used, grows when MA1 if below, grows faster if MA1 and MA2 are below and fastest when MA1 and MA2 are below and MA2price=-0.02
-MA1 and MA2 >price=-0.03
-MA1 and MA2 ?price and MA2>MA1=-0.04
9)CONDITIONS SELECTION SUMMARRY:
So when CUSTOM we choose :
1)SOURCE – H/L or OHLC
2)MAs – MA1/MA2/BOTH
3)CRS CONDS (>/<,ALL,ULT)
So for example...
if we take MA1 and ALL value will go to zero if 1HL
if MA1 and >/< - 0 if 1L or 1H (depending if value is positive or negative).(1L or 1H)
If ALL and BOTH zero when 12HL
If BOTH and ULT value goes back to zero if Theres any cross of MA1/MA2 with price or cross of MA1 and MA2.(123_ULT)
If >/< and BOTH – 0 if 12L in DNtrend or 12H if UPtrend
10) OTHERS
-script was created on EURUSD 5M and wasn't tested on different markets
-default values of MA1/MA2 aren't optimalized so do not
-There might be a logical error in the script so let me know if you find it (most probably in 'BOTH')
-thanks to @AlifeToMake for help
-if you have any ideas to improve let me know
-there are also tooltips to help
Liquidity Sentiment Profile [LuxAlgo]The Liquidity Sentiment Profile is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights within a sequence of profiles the distribution of the liquidity and the market sentiment at specific price levels.
The Liquidity Sentiment Profile allows traders to reveal significant price levels, dominant market sentiment, support and resistance levels, supply and demand zones, liquidity availability levels, liquidity gaps, consolidation zones, and more based on price and volume data.
Liquidity refers to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.
🔶 USAGE
A Liquidity Sentiment Profile is a combination of a liquidity and a sentiment profile, where the right part of the profile displays the distribution of the traded activity at different price levels and the left part displays the market sentiment at those price levels.
The Liquidity Sentiment Profiles are visualized with different colors, where each color has a different meaning.
The Liquidity Sentiment Profiles aim to present Value Areas based on the significance of price levels, thus allowing users to identify value areas that can be formed more than once within the range of a single profile.
Level of Significance Line - displays the changes in the price levels with the highest traded activity (developing POC)
🔶 SETTINGS
The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Sentiment Profiles
Anchor Period: The indicator resolution is set by the input of the Anchor Period, the default option is AUTO.
🔹 Liquidity Profile Settings
Liquidity Profile: Toggles the visibility of the Liquidity Profiles
High Traded Nodes: Threshold and Color option for High Traded Nodes
Average Traded Nodes: Color option for Average Traded Nodes
Low Traded Nodes: Threshold and Color option for Low Traded Nodes
🔹 Sentiment Profile Settings
Sentiment Profile: Toggles the visibility of the Sentiment Profiles
Bullish Nodes: Color option for Bullish Nodes
Bearish Nodes: Color option for Bearish Nodes
🔹 Other Settings
Level of Significance: Toggles the visibility of the Level of Significance Line
Profile Price Levels: Toggles the visibility of the Profile Price Levels
Number of Rows: Specify how many rows each profile histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and fewer historical profiles will be displayed
Profile Width %: Alters the width of the rows in the histogram, relative to the profile length
Profile Range Background Fill: Toggles the visibility of the Profiles Range
🔶 LIMITATIONS
The amount of drawing objects that can be used is limited, as such using a high number of rows can display fewer historical profiles and occasionally incomplete profiles.
🔶 RELATED SCRIPTS
🔹 Buyside-Sellside-Liquidity
🔹 ICT-Concepts
🔹 Swing-Volume-Profiles
Moving Average Contrarian IndicatorThis indicator is designed to identify potential turning points in the market. By measuring the distance between the price and a moving average, and normalizing it, the MACI provides valuable insights into market sentiment and potential reversals. In this article, we will explore the calculation, interpretation, and practical applications of the MACI, along with its potential limitations.
The MACI is calculated in several steps. First, a moving average is computed using a user-defined length, representing the average price over the specified period. The distance between the current price and the moving average is then determined. This distance is normalized using the highest and lowest distances observed within the chosen length, resulting in a value between 0 and 100. Higher MACI values indicate that the price is relatively far from the moving average, potentially signaling an overextension, while lower values suggest price consolidation or convergence with the moving average.
Altering the parameters of the Moving Average Contrarian Indicator can provide traders with additional flexibility and adaptability to suit different market conditions and trading styles. By adjusting the length parameter, traders can customize the sensitivity of the indicator to price movements. A shorter length may result in more frequent and responsive signals, which can be useful for short-term traders aiming to capture quick price reversals. On the other hand, a longer length may provide smoother signals, suited for traders who prefer to focus on longer-term trends and are less concerned with minor fluctuations. Experimenting with different parameter values allows traders to fine-tune the indicator to align with their preferred trading timeframes and risk tolerance. However, it is essential to strike a balance and avoid excessive parameter adjustments that may lead to over-optimization or curve fitting. Regular evaluation and optimization based on historical data and real-time market observations can help identify the most suitable parameter values for optimal performance.
The coloration of the Moving Average Contrarian Indicator provides visual cues that assist traders in interpreting its signals. The background color, set based on the indicator's values, adds an additional layer of context to the chart. When the indicator is indicating bullish conditions, the background color is set to lime, suggesting a favorable environment for long positions. Conversely, when the indicator signals bearish conditions, the background color is set to fuchsia, indicating a potential advantage for short positions. In neutral or transitional periods, the background color is set to yellow, indicating caution and the absence of a clear bias.
The bar color complements the histogram and provides additional visual clarity. When the MACI value is greater than the MACI SMA value and exceeds the threshold of 30, the bars are colored lime, signaling potential bullish conditions. Conversely, when the MACI value is below the MACI SMA value and falls below the threshold of 70, the bars are colored fuchsia, indicating potential bearish conditions. For values that fall between these thresholds, the bars are colored yellow, highlighting a neutral or transitional state.
Practical Uses and Strategies:
The MACI offers traders and analysts valuable insights into market dynamics and potential reversal points. When the MACI is above its moving average and above a predefined threshold (e.g., 30), it suggests that prices have deviated significantly from the average and may be overbought. This could serve as an early indication for potential short-selling opportunities or taking profits on existing long positions. Conversely, when the MACI is below its moving average and below a predefined threshold (e.g., 70), it suggests oversold conditions, potentially signaling a buying opportunity. Traders can combine MACI with other technical indicators or price patterns to further refine their trading strategies.
The MACI can be a powerful tool for identifying potential market reversals. When the MACI reaches extreme levels, such as above 70 or below 30, it indicates overbought or oversold conditions, respectively. Traders can use these signals to anticipate price reversals and adjust their trading strategies accordingly. For example, when the MACI enters the overbought zone, traders may consider initiating short positions or tightening stop-loss levels on existing long positions. Conversely, when the MACI enters the oversold zone, it may indicate a buying opportunity, prompting traders to consider initiating long positions or loosening stop-loss levels.
The MACI can also be used in conjunction with price action to identify potential divergence patterns. Divergence occurs when the MACI and price move in opposite directions. For instance, if the price is making higher highs while the MACI is making lower highs, it suggests a bearish divergence, indicating a potential trend reversal. Conversely, if the price is making lower lows while the MACI is making higher lows, it suggests a bullish divergence, signaling a potential trend reversal to the upside. Traders can use these divergence patterns as additional confirmation signals when making trading decisions.
Limitations:
-- Sideways and Choppy Markets : The MACI performs best in trending markets where price movements are more pronounced. In sideways or choppy markets with limited directional bias, the MACI may generate false signals or provide less reliable indications. Traders should exercise caution when relying solely on the MACI in such market conditions and consider incorporating additional analysis techniques or filters to confirm potential signals.
-- Lagging Indicator : The MACI is a lagging indicator, as it relies on moving averages and historical price data. It may not provide timely signals for very short-term trading or capturing rapid price movements. Traders should be aware that there may be a delay between the occurrence of a signal and its confirmation by the MACI.
-- False Signals : Like any technical indicator, the MACI is not immune to false signals. It is essential to use the MACI in conjunction with other technical indicators, chart patterns, or fundamental analysis to increase the probability of accurate predictions. Combining multiple confirmation signals can help filter out false signals and enhance the overall reliability of trading decisions.
-- Market Conditions : It's important to consider that the effectiveness of the MACI may vary across different markets and asset classes. Each market has its own characteristics, and what works well in one market may not work as effectively in another. Traders should evaluate the performance of the MACI within their specific trading environment and adapt their strategies accordingly.
This indicator can be a valuable addition to a trader's toolkit, offering insights into potential entry and exit points. However, it should be used in conjunction with other analysis techniques and should not be relied upon as a standalone trading signal. Understanding its calculation, interpreting its values, and considering its limitations will empower traders to make more informed decisions in their pursuit of trading success.
Base Finder DailyThe Base Finder Daily is the companion tool to the original Base Finder which is used to identify consolidation periods in a stock's advance. The Base Finder Daily allows traders to zoom in from the weekly chart and get a more precise view of the daily price action during a basing period.
Base Finder Daily identifies three different types of bases (Flat Base, High Tight Flag, Consolidation) and provides key information about the consolidation such as the depth, length, and pivot point. This information allows traders to compare and analyze the best basing patterns quickly and easily.
This tool helps traders of all levels train their eye to identify potential trading opportunities that might have otherwise gone unnoticed.
Base Finder is a must-have tool for any trader, especially those that have studied the work of William O’Neil. Base Finder stacks up base for base with MarketSmith.
Easily customize the settings, from the look to the intricacies of a consolidation.
Default base settings:
Flat Base
length: 25 days minimum
depth: <= 15%
High Tight Flag
Flag Pole: up 80% or more in less than 40 days
Flag: Less than 25% correction in 10-20 days
Consolidation:
length: minimum 30 days
depth: <= 35%
Notes
This indicator is meant to be used on the daily timeframe.
In order to see the stats labels hover your mouse over the left side high of the consolidation and please make sure the indicator is brought to the front using the visual order of your chart. If the visual order is not correct you will not be able to see the stats label.
Disclaimer:
This indicator is for informational and educational purposes only. Do your own research before making any trade decisions. We accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
Base FinderThe Base Finder is a powerful tool to identify consolidation periods in a stock's advance. With this indicator, traders can effortlessly spot consolidation patterns on their charts providing them with a deeper understanding of the stock's price action.
Base Finder goes beyond identifying consolidation patterns, as it also offers key information about the consolidation such as the depth, length, pivot point, and the number of accumulation or distribution weeks throughout the pattern. This information allows traders to compare and analyze the best basing patterns quickly and easily.
With Base Finder, traders can differentiate between a Flat Base, a High Tight Flag, or a consolidation, like a cup with handle or double bottom base.
This tool helps traders of all levels train their eye to identify potential trading opportunities that might have otherwise gone unnoticed.
Base Finder is a must-have tool for any trader, especially those that have studied the work of William O’Neil. Base Finder stacks up base for base with MarketSmith.
Easily customize the settings, from the look to the intricacies of a consolidation.
Default base and accumulation/distribution settings:
Flat Base
length: 5 weeks minimum
depth: <= 15%
High Tight Flag
Flag Pole: up 80% or more in less than 8 weeks
Flag: Less than 25% correction in 2-4 weeks
Consolidation:
length: minimum 6 weeks
depth: <= 35%
Accumulation Week:
Current candle closes lower, but in the upper half of the weekly closing range on above average volume. OR Current candle closes positive in the upper 40% of the weekly closing range on above average volume.
Distribution Week:
Current candle closes positive, but in the lower quartile of the weekly closing range on above average volume. OR Current candle closes down on the week in the lower half of the weekly closing range on above average volume.
Notes
This indicator is meant to be used on the weekly timeframe.
In order to see the stats labels hover your mouse over the left side high of the consolidation and please make sure the indicator is brought to the front using the visual order of your chart. If the visual order is not correct you will not be able to see the stats label.
Disclaimer:
This indicator is for informational and educational purposes only. Do your own research before making any trade decisions. We accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
Braid Filter+OVERVIEW
The Braid Filter indicator was initially made by Robert Hill and published in the Stocks and Commodities Magazine in 2006. This version of the Braid Filter expands upon Hill's original one by adding much more customization and tweaking abilities. Instead of using a simple moving average to calculate the Braid Filter, this version allows you to choose between 43 different moving average calculation types to suit your needs. The original also just used the close price for calculating its moving averages, however, this version allows you to specify different source prices, including the close, median (hl2), typical (hlc3), mean (ohlc4), and weighted (hlcc4) prices. This version also allows you to edit the lookback period for the average true range calculation. It also renamed some arbitrarily named input fields to make them more readable and understandable. Finally, it includes multi-timeframe support and the ability to color bars based on signals.
The Braid Filter calculates 3 average prices:
A short-term average close price
A medium-term average open price
A long-term average close price
It then finds the minimum and maximum of these three average prices. Then it calculates the difference between the highest and lowest average price. This difference is what the histogram shows. Then the filter line is calculated based on the ATR.
CONCEPTS
This indicator can be used to determine the start of trends. It can also be used to determine when the market is consolidating.
When the bar turns green, the average close price is greater than the average open price, indicating bullish momentum. In addition, if the histogram is green, the difference between the highest average price and the lowest average price is high enough to surpass the filter line. This means that not only is there bullish momentum, but there is stronger than average bullish momentum. Therefore, it is safe to assume that the market will trend higher. When the histogram turns red, this situation plays out except in reverse, indicating that the market will trend lower.
If the histogram color is gray, the difference between the highest average price and the lowest average price used to calculate the Braid Filter is meager. Since the highest and lowest average is close together, the price is unlikely to travel far in one direction. Therefore, it is safe to assume that the market is consolidating when this happens.
HOW DO I READ THIS INDICATOR
The signals between the histogram and filter are calculated as follows:
If the histogram is above the filter line and the fast average close price is greater than the average open price, the histogram is colored green, indicating bullish conditions.
If the histogram is above the filter line and the fast average close price is less than the average open price, the histogram is colored red, indicating bearish conditions.
If the histogram is below the filter line, the histogram is colored gray, indicating neutral conditions.
range_statA basic statistic to describe "ranges". There are three inputs:
- short range
- long range
- moving average length
The output is a ratio of the short range to the long range. In the screenshot example, the short range is a single day (bar) and the long range is five days. A value near "1" would mean that every day entirely fills the five day range, and that a consolidation is likely present. A value near 0 would mean that each day fills only a small portion of the five day range, and price is probably "trending".
The moving average length is for smoothing the result (which also lags it of course).
The mean, and +- 2 standard deviations are plotted as fuchsia colored lines.
