[blackcat] L2 Price Envelope TrackerLevel: 2
Background
Price envelopes sare shown at a set percentage above and below a moving average. They are used to indicate overbought and oversold levels and can be traded individually or in conjunction with a momentum indicator.
Function
L2 Price Envelope Tracker is an innovative indicator that use customized envelope of price to disclose overbought and oversold periods. With this function, long and short entries can be further developped in this pine script.
Key Signal
sma5 --> typical price moving average line
resistance --> upper envelope as resistance line
support ---> lower envelope as support line
Pros and Cons
Pros:
1. easy observe overbought and oversold zone
2. disclose exact long and short entries in overbought and oversold zones
Cons:
1. Only applicable for the trading pairs that support financial() functions. crypto/xau/xag/indice are not applicable
2. Need to tune r1 and s1 for different trading pairs
Remarks
NA
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
