Price & Momentum Reversal Indicator [TradeDots]Price & Momentum Divergence Indicator is a variant of the Chande Momentum Oscillator (CMO), designed to identify reversal patterns in overvalued and undervalued markets. This indicator aims to mitigate the common problem of all oscillating indicators: false buy/sell signals during prolonged market trends, by incorporating a volume-weighted approach and momentum analysis.
📝 HOW IT WORKS
Price Extremeness Calculation
The indicator evaluates the extremeness of the current price by analyzing price changes over a fixed window of candlesticks.
It separates the price changes into positive and negative changes, then multiplies them by the bar volume to obtain volume-weighted values, giving higher significance to bars with larger volumes.
Extremeness Ratio
The ratio is calculated by taking the difference between the total positive changes and total negative changes, and then dividing this result by the sum of the total positive and negative changes.
The result is then smoothed to reduce market noise and rescaled to a range between -100 to 100, where 100 indicates all price changes within the window are positive.
Momentum Analysis
Momentum is calculated by measuring the rate of change of the smoothed extremeness ratio, indicating whether market extremeness is slowing and showing signs of reversion.
Reversal Signal Confirmation
For an asset to be considered a reversal, it has to be in the overvalued or undervalued zone (exceeding the overvalued & undervalued threshold). It must then show a slowed momentum change and a price reversion.
Lastly, candlestick analysis is used to confirm the reversal signal, ensuring there is no room for further breakout price movement.
🛠️ HOW TO USE
Candlestick Visualization
Candlestick bodies are painted with gradient colors representing the smoothed price extremeness (OBOS Index), ranging from -100 (solid red) to 100 (solid green). The exact value is displayed in a table at the bottom right corner.
Slowing price momentum is indicated with blue (bearish) and purple (bullish) colors, showing market pressure from the opposite side.
Reversal Confirmation
A decrease in price momentum combined with a price reversal triggers a signal label on the candlestick, indicating a potential pullback or reversal. This can serve as a reference for better entry and exit points.
⭐️ Premium Features
Higher Timeframe (HTF) Analysis
The indicator includes a feature to apply the same algorithm to a selected higher timeframe, ensuring trend alignment across multiple timeframes.
Alert Functions
Real-time notifications for overvalued and undervalued conditions, allowing traders to monitor trades and reversal signals anywhere and anytime.
❗️LIMITATIONS
Accuracy decreases in volatile and noisy markets.
Extended bullish or bearish market conditions may affect performance.
See Author's instructions below to get instant access to this indicator.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Contrarian
Signals & Overlays [UAlgo]The Signals & Overlays indicator is a comprehensive trading tool designed to provide traders with a holistic view of market conditions. It combines multiple analysis techniques to offer insights into trend direction, potential reversal points, and optimal entry and exit levels. This versatile indicator is suitable for various trading styles and timeframes, also has Beginner-Friendly presets to enable multiple features at once within one-click.
🔶 Key Features:
🔹 Contrarian Signals:
This feature identifies potential trend reversals and market turning points. These contrarian signals are displayed as arrow markers on the chart, alerting traders to possible opportunities that go against the prevailing trend. The signals are based on a combination of price action, momentum, and volatility factors, providing a multi-faceted approach to market analysis.
Customizable Settings :
Signal Sensitivity: Adjustable from 0.1 to 10.0. This controls how sensitive the indicator is to potential reversal signals.
🔹 Reversal Zones:
This feature utilizes statistical methods that compute a smoothed average and associated bands around a data series using Gaussian weights. The Gaussian distribution helps to assign more weight to data points near the center of the window, and the bands represent the average plus/minus a scaled measure of deviation.
This technique is often used in financial analysis to detect trends and measure volatility to identify key areas where price reversals are more likely to occur. These zones providing a dynamic representation of potential support and resistance areas. Traders can use these zones to anticipate potential price reactions and plan their entries and exits accordingly.
Users can also customize the responsiveness of the Reversal Zones through the "Zone Speed" setting. This allows for fine-tuning the model's sensitivity to price changes:
Swift Mode: Quickly adapts to recent price movements, ideal for short-term trading.
Standard Mode: Balances recent and historical data for a medium-term perspective.
Slow Mode: Emphasizes longer-term trends, suitable for position trading.
Customizable Settings :
Zone Data Source: Users can select which price data (open, high, low, close, etc.) to use for zone calculations.
Zone Speed: Choosable between "Swift", "Standard", and "Slow", affecting how quickly the zones adapt to price changes.
🔹 Smart Trail:
The Smart Trail feature provides an adaptive trend-following mechanism. It plots a dynamic line that adjusts based on price action and volatility, helping traders stay in trending moves while providing a trailing stop-loss reference. This feature is particularly useful for managing open positions and optimizing exit points.
🔹 Trend Cloud:
Generates a specialized trend indicator using double-smoothed EMAs applied to closing prices and the high-low price range. It visualizes market trends and volatility by shading the area between different indicator values over time. The color of the shading changes to reflect whether the current trend is strengthening or weakening.
The Trend Cloud feature provides a visually intuitive representation of the overall market trend. It generates a dynamic colored cloud on the chart that helps traders quickly assess the current market direction and strength. Bullish trends represented by blue clouds and bearish trends by red clouds.
🔹 Trend Analyzer:
The Trend Analyzer component provides an in-depth analysis of the current market trend. It uses a customizable moving average system to determine the trend direction and strength. The analyzer can be configured to focus on short-term, medium-term, or long-term trends, allowing traders to align their strategy with their preferred trading timeframe.
Customizable Settings :
Analyzer Calculation Period: Adjustable period for trend analysis calculations.
Analyzer Mode: Selectable between "Short-Term", "Medium-Term", and "Long-Term".
Analyzer Calculation Source: Customizable price data source for trend analysis.
Use Heikin Ashi: Option to use Heikin Ashi candles instead of regular candles for calculations.
🔹 TP/Exit/Entry Levels:
The indicator calculates and displays potential take profit (TP), exit, and entry levels based on market structure and volatility. These levels are marked on the chart, offering traders guidance on optimal points for trade management. This feature can be particularly helpful for setting profit targets and managing risk.
🔹 Dashboard:
The customizable dashboard provides a quick overview of key market metrics. It displays information such as trend strength, volume analysis, market volatility, the current state of the Trend Catcher and the market is "Bearish" or "Bullish". This at-a-glance summary helps traders make informed decisions without the need to switch between multiple indicators.
Customizable Settings :
Toggle: Option to display or hide the dashboard.
Dashboard Position and Size: Selectable between "Top Right", "Bottom Right", and "Bottom Left". Adjustable size to "Tiny", "Small" or "Normal".
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
RSI + FIB HH LL StopLoss Finder／Contrarian TradesThis indicator is a multi-timeframe indicator that works in any timeframe.
It takes a price reading of the highest or lowest bar in the past based on Fibonacci numbers and plots it.
In addition, the RSI smoothed by a 5-day moving average can be used to detect signs that previous highs or lows will be reached in advance.
This gives insight into determining stop-loss values or entering the market in a contrarian manner.
This is an example of BTCUSDT 4Hour Chart
Here is BTCUSDT 1Hour Chart
For scalpers BTCUSDT 15min Chart Example
Fibonacci Number is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, ...
FIbonacci Ratio is 0.236, 0.382, 0.5, 0.618, 1, 1.618, 2.618, 4.236, ...
K's Reversal Indicator IIIK's Reversal Indicator III is based on the concept of autocorrelation of returns. The main theory is that extreme autocorrelation (trending) that coincide with a technical signals such as one from the RSI, may result in a powerful short-term signal that can be exploited.
The indicator is calculated as follows:
1. Calculate the price differential (returns) as the current price minus the previous price.
2. the correlation between the current return and the return from 14 periods ago using a lookback of 14 periods.
3. Calculate a 14-period RSI on the close prices.
To generate the signals, use the following rules:
* A bullish signal is generated whenever the correlation is above 0.60 while the RSI is below 40.
* A bearish signal is generated whenever the correlation is above 0.60 while the RSI is above 60.
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.
Return Abnormality Score [SpiritualHealer117]The Return Abnormality Score indicator is designed to help traders identify potential reversals in price by detecting abnormal daily returns beyond a certain significance level. The indicator uses a normal cumulative distribution function to calculate the probability of the daily return and flags it when it exceeds the specified significance level.
Traders can use this indicator by monitoring the abnormality score. If the daily return is negative, the probability is multiplied by a negative number. Therefore, if the abnormality score goes above the positive threshold, it suggests that the price is oversold, while if it goes below the negative threshold, it indicates that the price is overbought. It can also be helpful for spotting bear or bull traps due to their irregular behavior.
Depending on the trader's preference, the indicator can be smoothed or unsmoothed.
This indicator should be paired with other technical analysis tools like SSL Hybrid for trend confirmation, and proper risk management strategies.
Exhaustion Table [SpiritualHealer117]A simple indicator in a table format, is effective for determining when an individual stock or cryptocurrency is oversold or overbought.
Using the indicator
In the column "2σ" , up arrows indicate that the asset is very overbought , down arrows indicate that an asset is very oversold , and an equals sign indicates that the indicator is neutral.
In the column "σ" , up arrows indicate that the asset is overbought , down arrows indicate that an asset is oversold , and an equals sign indicates that the indicator is neutral.
What indicator is
The indicator shows the exhaustion (percentage gap between the closing price and a moving average) at 5 given lengths, 15, 30, 50, 100, and 300. It compares that to two thresholds for exhaustion: one standard deviation out and one two standard deviations out.
Regression Fit Bollinger Bands [Spiritualhealer117]This indicator is best suited for mean reversion trading, shorting at the upper band and buying at the lower band, but it can be used in all the same ways as a standard bollinger band.
It differs from a normal bollinger band because it is centered around the linear regression line, as opposed to the moving average line, and uses the linear regression of the standard deviation as opposed to the standard deviation.
This script was an experiment with the new vertical gradient fill feature.
Infiten's Adjusted Bull-Bear Power Oscillator An extension of TradingView's new ADR and bull-bear power indicators, this indicator is helpful for spotting abnormal bullish and bearish activity to get good contrarian entry points.
How to interpret the indicator
When the white columns cross over the red line, it's a bearish indicator since the asset has been overbought.
When the white columns cross under the green line, it's a bullish indicator since the asset has been oversold.
How it's calculated
The adjusted bull-bear power oscillator is calculated by multiplying the bull-bear power indicator by my NDO indicator, to adjust the bull-bear power for volume. The upper green line and lower red line are calculated as the product of a multiplier input and the average daily range indicator.
Autodrawn Pivot Levels IndicatorAn experiment with pinescript's line.new() function. The Autodrawn Pivot Levels indicator draws horizontal lines in areas where prices have been flat, which serve as pivot points. This can be useful for pivot trading as it visually shows several critical levels
Infiten's Return Candle OscillatorInfiten's Return Candle Oscillator is an oscillator which shows the percentage return on the open, high, close and low over a customizable period in the form of candlesticks. It may be helpful for seeing volatility, swing trading, or mean reversion trading.
The RCO consists of two plotted elements :
RCO Candles (short length): candlesticks which are plotted with low = the product of the percentage changes in the low over a period, high = the product of the percentage changes in the high over a period, close = the product of the percent changes in close over a period, and open = the product of the percentage changes in return over a period. Similarly to with standard candlesticks, if the percentage change on the close is higher than the percentage change on the open, the candlestick is green, otherwise it is red.
Smoothed RCO Line (long length) : a moving average of the average of the low, close, open and high calculated for the RCO Candles. The line's transparency is determined by the percentage difference between the RCO and the highest or lowest RCO over the long length. A more transparent line means that the RCO is closer to the highest or lowest RCO, and may be indicative of a reversal, or weakening trend.
Infiten's Price Percentage Oscillator Channel (PPOC Indicator)What is the script used for?
Infiten's Price Percentage Oscillator (PPOC Indicator) can be used as a contrarian indicator for volatile stocks and futures to indicate reversals, areas of support and resistance. For longer term trading, if the Short SMA or prices go above the High PPO Threshold line, it is a sign that the asset is overbought, whereas prices or the Short SMA going below the Low PPO Threshold line indicates that the asset is oversold.
What lines can be plotted?
Low PPO Thresh - Calculated as -PPO Threshold * Short MA + Long MA : Gives the price below which the PPO hits your lower threshold
High PPO Thresh - Calculated as PPO Threshold * Short MA + Long MA : Gives the price above which the PPO hits your upper threshold
MA PPO : Plots candles with the Low PPO Thresh as the low, High PPO Thresh as the high, Short MA as the open, and Long MA as the close.
Short SMA : plots the short simple moving average
Long SMA : plots the long simple moving average
Customizable Values :
Short MA Length : the number of bars back used to calculate the short moving average for a PPO
Long MA Length : the number of bars back used to calculate the long moving average for a PPO
PPO Threshold : the percent difference from the moving average expressed as a decimal (0.5 = 50%)
Recommendations:
Longer timeframes like 300 days are best with larger PPO Thresholds, I recommend using a PPO Threshold of 0.5 or higher. For shorter timeframes like 14 days I recommend setting smaller PPO Thresholds, like 0.3 or lower. I find that these values typically capture the most extremes in price action.
Anti-Breakout StrategyAnti-Breakout Strategy
Description:
This is a contrarian entry strategy for trading false breakouts. The high/low of the breakout bar is used for the entry in the opposite direction.
To reduce repainting set ptype variable to OHL3.
(VIP) Sniper ScannerScript is able to scan up to 5 instruments per one instance of indicator being added to chart. In case of need to monitor more instruments in parallel, please add more instances of indicator to chart. Limit of 5 instruments is applied due to Pine limitations and performance.
Please wait couple of seconds for recalculations that happen in background after changing settings of the indicator.
Scanner is checking per instrument for any entry opportunities, taking into account:
- volume spikes (anomalies)
- appearance of Contrarian Zones (accordingly to Greed & Fear logic)
- Stochastic divergences
- MFI Extreme Zones (Oversold & Overbought) exit as great opportunities to open new position
Timeframe of scanner: is automatically set to the same as the chart; example: if you want to perform scan for Daily timeframe , please select chart also to Daily timeframe
Default settings works quite efficiently on various markets and timeframes, but feel free to experiment!
To get access to indicator, become our subscriber - leave me a message or visit Documentation of my scripts mentioned in my signature.
(VIP) Contrarian Reversal Zones Script is showing potential reversal zones on chart, based on calculations of High/Low of selected period, smoothing it with selected type of Moving Average and applying Standard Deviation. Preferred to be used for contrarian traders. Another alternative usage would be to lock profit from open positions as this is very often early warning before reversal ahead.
If you're interested with access to indicator, please contact me via DM (private message) on Tradingview.com ;)
Trend & Contrarian (Expo)Trend & Contrarian (Expo) is a powerful trend tool with adaptive contrarian- signals. A strong trend is displayed by the background color and the unique Trend dots/line can be used to confirm a strong trend or to identify early trend reversals. The contrarian-signals are adapting dynamically to price moves and should be used as 'preparation' or 'warning' prior to trigger, should be confirmed by a trend reversals signal or by other indicators.
The contrarian signals should only be used if the user fully understands how they work, please test the feature before entering a trade based on it. However, these signals can be very valuable if used correctly.
Green background color ➞ Strong Positive Trend
Red background color ➞ Strong Negative Trend
No background color? ➞ No strong trend. The Trend Dots/line determine the trend
HOW TO USE
Identify strong trends
Identify trend reversals
Identify contrarian signals
INDICATOR IN ACTION
4-hour chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas 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, 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/strategies/ideas are only for educational purposes!
ACCESS THE INDICATOR
• Contact me on TradingView or use the links below
QUANTUMQUANTUM INDICATOR
Contains trend and contrarian buy and sell signals. Fear and greed levels lines.
You can select signal risk level 1 to 6.
Trend signal buy color : lime and sell color : red
Contrarian signal buy color : orange and navy and sell color : blue
Signals are numbered 1 to 6
open indicator settings and select risk level
1 very low risk signal
2 low risk risk signal
3 normal risk
4 normal risk
5 high risk signals
6 very high risk signals
indicator contains key levels. Support and resistance lines. And you can see breakout and breakdown arrows. When Rahul Mohindar indicator give buy signal tha price bar color change blue and sell signal price bar change gray color. When Know Sure Thing indicator give you buy signal the price bar color change aqua and sell signal black.
For access message me.
Fearzone & Greedzone Levels - Contrarian & Breakout (Expo)"Be fearful when others are greedy, and greedy when others are fearful" - Warren Buffett. Fearzone & Greedzone Levels - Contrarian & Breakout (Expo) is a contrarian and breakout indicator that gives us an indication when fear and greed begins to take over in the market. Traders should be prepared for increased volatility and good trading opportunities.
This indicator can both be used to identify potential reversal points and be used to identify breakouts from previous Fear and Greed Levels.
The Fearzone and Greedzone can be visualized with candlesticks or with circles depending on what you prefer.
Alert conditions are added.
HOW TO USE
1. Use the indicator to identify when investors are fearful and greedy.
2. Use the indicator to identify potential reversal points.
3. Use the indicator to identify potential breakouts.
INDICATOR IN ACTION
4 hour chart
4 hour chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas 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, 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 are only for educational purposes!
GreedZone indicator - Contrarian Indicator"Be fearful when others are greedy, and greedy when others are fearful" - Warren Buffett. Greedzone is a contrarian indicator that gives us an indication when greed begins to take over in the market. Traders should be prepared for increased volatility and good trading opportunities.
The Greedzone is visualized with green candlesticks above the price.
HOW TO USE
1. Use the indicator to identify when investors are greedy.
2. Use the indicator to identify potential reversal points.
INDICATOR IN ACTION
1 hour chart
5 min chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas 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, 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 are only for educational purposes!
Fearzone (Expo) - Contrarian Indicator"Be fearful when others are greedy, and greedy when others are fearful" - Warren Buffett. Fearzone is a contrarian indicator that gives us an indication when fear begins to take over in the market. Traders should be prepared for increased volatility and good trading opportunities.
The Fearzone is visualized with red candlesticks below the price.
This version of the FearZone indicator is slightly different from the one ©kruskakli has published.
HOW TO USE
1. Use the indicator to identify when investors are fearful.
2. Use the indicator to identify potential reversal points.
INDICATOR IN ACTION
1 hour chart
5 min chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas 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, 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 are only for educational purposes!
Trend Checker by Hally - IndicatorIt is an indicator that overlaps MACD and Stochastics.
It has both characteristics.
The trend changes when two lines intersect.
I think the reaction is bad in the range market.
Also, when there are Stochastics and MACD lines above the indicator, it is possible to think whether it is overbought while riding the trend, and it may be helpful for making decisions such as "maybe it will reverse soon". Hmm.
Also, I think it is better to use it in combination with other indicators.
This is my first pine script, and I couldn't find it even if I searched for the script with overlapping indicators of different scales, so I tried making it by trial and error.
I hope it helps somebody trying to do the same.
MACDとStochasticsを重ね合わせたインジケーターです。
それぞれの特徴を併せ持っています。
2本のラインが交差する時トレンドが変化します。
レンジ相場では反応が悪いと思います。
また、インジケーターの上の位置にStochasticsとMACDラインがあるときはトレンドに乗りながらも買われすぎかどうか考えられることが出来ますし、「そろそろ反転するかも」などの判断の助けになるかもしれません。
また、他の指標との併用して使うほうが良いと思います。
pineスクリプトは初めてで、異なるスケールのインジケーターを重ね合わせていスクリプトは探しても見つからなかったので試行錯誤で作ってみました。
同じようなことをやろうとしてる誰かの参考になれば幸いです。
Smart Envelope - Running Away From The TrendIntroduction
Envelopes indicators consist in displaying one upper and one lower extremity on the price chart. They are most of the time built by adding/subtracting a volatility estimator (rolling stdev, atr, range...etc) to a central tendency estimator (SMA, EMA, LSMA...etc) . Their interpretation is often subject to debate amongst technical analyst, some will use a support and resistance methodology, where price will start a downtrend once it cross the upper extremity, and a down trend once it cross the lower one. Others will prefer a breakout methodology, where price will reach higher highs once it cross the upper extremity, and lower lows when it cross the lower one. Because of price non stationarity its hard to select the best methodology, the support and resistance one will mostly work on ranging markets, while the breakout methodology mostly work on trending ones.
Therefore new methods where proposed, instead of using moving averages with a high lag, faster filters where used, such as the least squares moving average or zero lag exponential moving average, other band indicators where also created using adaptive filters, but improvements remain relatively low. The most difficult task would be to make extremities with the ability to return accurate support and resistances levels, and today i want to provide a new way to construct such extremities by using the recursive bands framework that allow extremely creative and efficient indicators.
The Main Idea
With classical bands indicators, the upper and lower extremity will still be correlated with the main trend, the problem behind such method is that we can't use a support and resistance methodology with trending markets, the fact that reversals exist tells us that our extremities will always be crossed by the main trend, here is an example :
Here the support is correlated with the main trend, in order for it to be accurate we must assume the trend will go on for ever, and will only detect higher lows, this is what we expect with the orange line, but we can see that a severe down trend totally destroy our plan.
In short we need to give some headroom to our extremities, and thus one extremity can't be correlated with the main trend.
The proposed Indicator
We want to minimize the correlation between the extremities, so if the upper extremity rise, the lower one must fall. This allow to give some headroom and allow the user to anticipate larger movements, this is how bands seeking to give support and resistances points should work.
The indicator has a length setting that control the wideness of the extremities, unlike other indicators low values such as 14 can still create really wide bands, take that into account.
length = 5. Lower length values allow for more motion from the extremities, but does not necessarily involve detecting shorter terms support and resistances levels. The factor setting is not that important, but it allow to return extremities with more motion when high, and really wide bands when below 1 and greater than 0.
Central Tendency Estimator
Something fun with the recursive band framework is that the bands are no longer based on the central tendency estimator but its the central tendency estimator who is based on the bands. The central tendency estimator can also provide support and resistances points with the price, like classical moving averages, altho its lack of motion is this time a downside.
Conclusion
Altho the extremities are more accurate than other band indicators, the problem remain the same, larger trend will always break the extremities and continue creating higher/lower highs/lows, at this point our stop loss would certainly be triggered. This is a huge downsides of contrarian strategy, we sure might anticipate reversals earlier, but we are exposed to larger price movements, therefore the risk is extreme.
But the proposed methodology might still prove useful to develop more robust support and resistances levels based on envelopes indicators.
Thanks for reading !
Call / All Ratio ( C / A ) - NoldoFirst of all this script inspired by MagicEins' Put/Call-Ratio-Buschi script .
What is the Put-Call Ratio
The put-call ratio is an indicator ratio that provides information about relative trading volumes of an underlying security's put options to its call options. The put-call ratio has long been viewed as an indicator of investor sentiment in the markets, where a large proportion of puts to calls indicates bearish sentiment, and vice versa. Technical traders use the put-call ratio as an indicator of performance and as a barometer of overall market sentiment. Put-call ratios on broader indexes such as the S&P 500 are also used as more general gauges of market climate.
Put-Call Ratio Interpretation
One way to interpret the put-call ratio is to say that a higher ratio means it's time to sell and a lower ratio means it's time to buy, because when the ratio is high it suggests that people are either expecting or protecting more readily against a future decline in the price of the underlying. A Put-Call ratio between 0.5 and 1 is considered a sideways trend in the markets.
Some also view the Put-Call ratio as a contrarian indicator. Traders know that derivatives are used to do more than place bets; they are used as hedges and insurance. If there's a lot of insurance being placed to the sell side, it means traders are worried about prices falling.
Some traders buy when the put-call ratio is above 1, meaning the market is out of balance to the sell side, and sell when the put-call ratio is below 1, meaning the market is out of balance to the buy side. These traders are looking to make money on the correction. The interpretation of the ratio is left to the analyst's or trader's investment philosophy.
Reference : Investopedia (www.investopedia.com)
Let' s start.
In short, calls represent "bulls" and puts represent "bears".
Some analysts do the opposite,for trend reversals the choice is up to you.
I usually look at the opposite comments in commercial positions because I look at this flow angle neutral.
If you want to do the opposite, you must create Put / All Ratio.
So i created this ratio to observe easily movements under or over 0.50 area .
Or you can take the point close to 0.50 as a horizontal trend. Many more comments can be made.I have a few ideas about this, and I'm going to publish them soon . My best suggestion is that it covers a single bar and is very volatile, so you can look for averages and strong accelerations.
This code is open source under the MIT license. If you have any improvements or corrections to suggest, please send me a pull request via the github repository github.com
Stay tuned , best regards.
