ICT opening price lineShows you the opening price of a certain time of day. I will show as line starting from the time selected and ending a few bars into the future. Available times are the ones ICT said are relevant for framing a premium and discount using opening prices: 00:00, 8:30 and 13:30. To show all 3 you have to add the indicator 3 times.
The script offers some customization on how the line should look line and if you want a label telling the time of it after the line.
Multitimeframe
Time - Bar StatusCandlestick analysis
The Indicator "Bar Status" will display the current open candle state and the last three close candles state based on the logic below.
Abbreviations.
OC = Open Candle (if in no state listed below)
FB = False Break
BO = Break Out
IN = Inside Bar
FBR = False Break Reversal
Logic:
OC = This is the current open candle yet to close. Its status will change as it progresses through time until close.
Green False Break Revers (FBR) = bar Close is higher than previous bar Close AND bar High is higher than previous bar High AND bar Low is lower than previous bar Low.
Green False Break (FB) = bar Close is lower than previous bar High AND bar High is higher than previous bar High.
Green Breakout (BO) = bar Close is higher than previous bar Close AND bar High is higher than previous bar High.
Green Inside Bar (IN) = bar High is lower than previous bar High AND bar Low is higher than previous bar Low.
Red False Break Revers (FBR) = bar Close is lower than previous bar Close AND bar Low is lower than previous bar Low AND bar High is Higher than previous bar High.
Red False Break (FB) = bar Close is higher than previous bar Low AND bar Low is lower than previous bar Low.
Red Breakout (BO) = bar Close is lower than previous bar Close AND bar Low is lower than previous bar Low.
Red Inside Bar (IN) = bar High is lower than previous bar High AND bar Low is higher than previous bar Low.
The end column is the current open candle/bar.
The second from the end column is the last closed candle/bar.
The third from the end column is the second closed candle/bar.
The forth from the end column is the third closed candle/bar.
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Also Includes candle countdown timer, of various candles. i.e. 4 hour, 1 hour, 15min, 5 min.
Market Structure & Session Alerts### Market Structure & Session Alerts Indicator
#### Overview
The "Market Structure & Session Alerts" indicator is a comprehensive tool designed to assist traders in identifying key market structure levels, detecting liquidity sweeps, and receiving alerts for specific trading sessions. This indicator is particularly useful for traders who want to keep an eye on previous high and low levels and be alerted during pre-London and pre-New York sessions.
#### Features
1. **Previous High/Low Levels:**
- **Daily, Weekly, and Monthly Highs and Lows:** The indicator plots the previous day, week, and month high and low levels on the chart. These levels can be crucial for identifying support and resistance zones.
- **Toggle Display:** Users can choose to show or hide these levels using the "Show Previous Day/Week/Month High/Low" option.
2. **Liquidity Sweep Detection:**
- **Liquidity Sweep Identification:** The indicator detects liquidity sweeps when the current price closes above the previous day's high. This can signal potential reversals or continuations in the market.
- **Visual Alerts:** When a liquidity sweep is detected, a green triangle is plotted below the bar.
3. **Session Alerts:**
- **Session Timings:** Users can set specific start and end times for the pre-London and pre-New York sessions to match their timezone.
- **Visual Background Highlight:** The background of the chart is highlighted in yellow during the defined session times to provide a visual cue.
- **Alert Messages:** The indicator can generate alerts to notify traders when the market enters the pre-London or pre-New York session.
4. **Current Price Line:**
- The current price is plotted as a black line, providing a clear visual reference for the current market price.
#### How to Use
1. **Input Parameters:**
- `Show Previous Day/Week/Month High/Low`: Enable or disable the display of previous high/low levels.
- `Show Liquidity Sweep`: Enable or disable the detection and display of liquidity sweeps.
- `Show Session Alerts`: Enable or disable session alerts and background highlights.
2. **Session Timing Adjustments:**
- Set the `Pre-London Start`, `Pre-London End`, `Pre-New York Start`, and `Pre-New York End` times according to your timezone to ensure accurate session alerts.
3. **Alerts:**
- Make sure alerts are enabled in your TradingView settings to receive notifications when the market enters the pre-London or pre-New York sessions.
#### Example Use Cases
- **Day Traders:** Identify potential support and resistance levels using the previous day's high and low.
- **Swing Traders:** Use weekly and monthly high and low levels to determine significant market structure points.
- **Scalpers:** Detect liquidity sweeps to identify potential quick trades.
- **Session Traders:** Be alerted when the market enters key trading sessions to align your trading strategy with major market activities.
This indicator combines multiple market analysis tools into one, providing a robust system for traders to enhance their trading decisions and market awareness.
Power Hour Money StrategyDescription of the Pine Script Code: "Power Hour Money Strategy"
This Pine Script strategy, "Power Hour Money Strategy," is designed to trade based on the alignment of multiple time frames (month, week, day, and hour). The strategy aims to enter long or short positions depending on whether all selected time frames are in sync (all green for long positions, all red for short positions). Additionally, the script includes configurations for trading during specific sessions and automatically closing positions at the end of the trading day.
Core Features:
1. Time Frame Sync Check:
- The strategy evaluates whether the current price is higher than the opening price for the month, week, day, and hour to determine if each time frame is "green" (bullish) or "red" (bearish).
2. Session Control:
- The user can select between different trading sessions:
- "NY Session 9:30-11:30"
- "Extended NY Session 8-4"
- "All Sessions"
- Trades are only executed if the current time falls within the selected session.
3. Trailing Stop Mechanism:
- The strategy includes an optional trailing stop mechanism for both long and short positions.
- The trailing stop is configured with a percentage loss from the current price to protect gains.
4. End-of-Day Position Management:
- An option is provided to automatically close all positions at the end of the trading day (5:45 PM Eastern Time).
Detailed Code Breakdown:
1. Input Settings:
- **Session Selection**: Allows the user to choose the trading session.
- **End-of-Day Close**: Option to automatically close positions at the end of the day.
- **Trailing Stop Loss**: Enables or disables the trailing stop loss feature and sets the percentage for long and short positions.
2. Time Frame Calculations:
- The script uses `request.security` to get the opening prices for higher time frames (monthly, weekly, daily, and hourly).
- It compares the current close price to these opening prices to determine if each time frame is green or red.
3. Session Time Definitions:
- Defines the start and end times for the NY session (9:30-11:30 AM) and the extended session (8:00 AM - 4:00 PM).
4. Trade Execution:
- The strategy checks if all selected time frames are in sync and if the current time falls within the trading session.
- If all conditions are met, it enters a long or short position.
5. Trailing Stop Loss Implementation:
- Adjusts the stop price based on the trailing percentage and the current position's size.
- Automatically exits positions if the trailing stop condition is met.
6. End-of-Day Close Implementation:
- Uses a timestamp to check if the current time is 5:45 PM Eastern Time.
- Closes all positions if the end-of-day condition is met.
7. Plotting and Logging:
- Plots indicators to visualize the green/red status of each time frame.
- Logs information about the status of each time frame for debugging and analysis.
Example Usage:
Entering a Long Position: If the month, week, day, and hour are all green and the current time is within the selected session, a long position is entered.
Entering a Short Position: If the month, week, day, and hour are all red and the current time is within the selected session, a short position is entered.
Trailing Stop: Protects gains by exiting the position if the price moves against the set trailing stop percentage.
End-of-Day Close: Automatically closes all open positions at 5:45 PM Eastern Time if enabled.
This strategy is particularly useful for traders who want to ensure that multiple time frames are in alignment before entering a trade and who wish to manage positions effectively throughout the trading day with specific session controls and trailing stops.
Dynamic Support & Resistance Tracker with MTFDynamic Support & Resistance Tracker with Weekly, Monthly & Daily Levels
The Dynamic Support & Resistance Tracker is designed to help traders identify key support and resistance levels across multiple timeframes, enhancing market analysis and decision-making. This indicator calculates and plots support and resistance levels for daily, weekly, and monthly periods, along with extension lines that provide insights into potential price targets.
Key Features:
Multi-Timeframe Analysis:
Daily Levels: Identifies the high, low, and midpoint for each trading day. These levels help traders recognize important price points for short-term trading strategies.
Weekly Levels: Plots the high, low, and midpoint for each week. This feature is valuable for swing traders who need to understand broader market trends.
Monthly Levels: Displays the high, low, and midpoint for each month, which is essential for long-term investors.
Extension Lines:
Calculates extension lines beyond the standard support and resistance levels to help anticipate potential price targets and reversals. These extensions are based on the distance between the high/low and midpoint levels.
Real-Time Updates:
Automatically updates the levels based on the most recent market data, ensuring traders have the most current information for their analysis.
Clear Visuals:
The indicator provides clearly labeled and color-coded lines for easy identification of key levels, improving the visual clarity of market analysis.
How It Works:
Daily, Weekly, and Monthly Levels: The indicator calculates the high, low, and midpoint levels for daily, weekly, and monthly timeframes and plots them on the chart. These levels serve as potential areas of support and resistance where price action may react.
Extension Lines: The extension lines are calculated based on the distance between the high/low and midpoint levels, projecting potential areas where price may find support or resistance beyond the standard levels.
Automatic Updates: The indicator continuously updates the plotted levels based on the latest market data, providing real-time insights.
Benefits:
Improved Market Analysis: By providing a clear view of support and resistance levels across multiple timeframes, this indicator helps traders understand market trends and price movements more effectively.
Informed Trading Decisions: The detailed plotting of levels and extensions allows traders to make more informed decisions, enhancing their trading strategies.
Versatility: Suitable for various trading styles, including intraday trading, swing trading, and long-term investing.
Instructions for Use:
Analyze the Levels: Observe the plotted high, low, and mid-levels for daily, weekly, and monthly timeframes.
Plan Your Trades: Use the identified support and resistance levels to set your entry and exit points, stop-losses, and profit targets.
Monitor the Market: Stay updated with real-time adjustments of the levels, ensuring you always have the latest market information.
Note: This indicator is designed to enhance your trading analysis by providing clear and reliable support and resistance levels. However, it should be used as part of a comprehensive trading strategy and not as the sole basis for trading decisions.
Price Time DilationCalculate the relative proper price time dilation between two observers in special relativity.
In summary, calculates how much time dilation occurs due to relative velocity between two observers according to special relativity principles. It is then applied in a trading context to visualize this effect on price action using a histogram plot.
Disclaimer:
It's worth mentioning that this code is experimental and might not have a specific purpose and, or meaning within the context of trading strategies or financial context.
MAC Investor V3.0 [VK]This indicator combines multiple functionalities to assist traders in making informed decisions. It primarily uses Heikin Ashi candles, Moving Averages, and a Price Action Channel (PAC) to provide signals for entering and exiting trades. Here's a detailed breakdown:
Inputs
MAC Length: Sets the length for the PAC calculation.
Use Heikin Ashi Candles: Option to use Heikin Ashi candles for calculations.
Show Coloured Bars around MAC: Option to color bars based on their relation to the PAC.
Show Long/Short Signals: Options to display long and short signals.
Show MAs? : Option to show moving averages on the chart.
Show MAs Trend at the Bottom?: Option to show trend signals at the bottom of the chart.
MA Lengths: Length settings for three different moving averages.
Change MA Color Based on Direction?: Option to change the color of moving averages based on trend direction.
MA Higher TimeFrame: Allows setting a higher timeframe for moving averages.
Show SL-TP Lines: Option to display Stop Loss and Take Profit lines.
SL/TP Percentages: Set the percentages for Stop Loss and three levels of Take Profit.
Calculations and Features
Heikin Ashi Candles: Calculations are based on Heikin Ashi candle data if selected.
Price Action Channel (PAC): Uses Exponential Moving Averages (EMA) of the high, low, and close to create a channel.
Bar Coloring: Colors the bars based on their position relative to the PAC.
Long and Short Signals: Uses crossovers of the close price and PAC upper/lower bands to generate signals.
Moving Averages (MA): Plots three moving averages and colors them based on their trend direction.
Overall Trend Indicators: Uses triangles at the bottom of the chart to show the overall trend of the MAs.
Stop Loss and Take Profit Levels: Calculates and plots these levels based on user-defined percentages from the entry price.
Alerts: Provides alerts for long and short signals.
Use Cases and How to Use
Identifying Trends: The PAC helps to identify the trend direction. If the closing price is above the PAC upper band, it suggests an uptrend; if below the lower band, it suggests a downtrend.
Entering Trades: Use the long and short signals to enter trades. A long signal is generated when the closing price crosses above the PAC upper band, and a short signal is generated when it crosses below the PAC lower band.
Exit Strategies: Utilize the Stop Loss (SL) and Take Profit (TP) levels to manage risk and lock in profits. These levels are automatically calculated based on the entry price and user-defined percentages.
Trend Confirmation with MAs: The moving averages provide additional confirmation of the trend. When all three MAs are trending in the same direction (e.g., all green for an uptrend), it adds confidence to the trade signal.
Overall Trend Indicators: The triangles at the bottom of the chart show the overall trend direction of the MAs:
Green Triangle: All three MAs are trending upwards, indicating a strong uptrend.
Red Triangle: All three MAs are trending downwards, indicating a strong downtrend.
Yellow Triangle: Mixed signals from the MAs, indicating no clear trend.
Bar Coloring for Quick Analysis: The colored bars give a quick visual cue about the market condition, aiding in faster decision-making.
Alerts: Set up alerts to get notified when a long or short signal is generated, allowing you to act promptly without constantly monitoring the chart.
Maximizing Profit
To maximize profit with this indicator:
Follow the Signals: Use the long and short signals to time your entries. Ensure you follow the trend indicated by the PAC and MAs.
Risk Management: Always set your Stop Loss and Take Profit levels to manage risk. This will help you cut losses early and secure profits.
Confirm with MAs: Look for confirmation from the moving averages. When all MAs align with the signal, it indicates a stronger trend.
Overall Trend Indicators: Pay attention to the triangles at the bottom for overall trend confirmation. Only enter trades when the overall trend is in your favor.
Heikin Ashi for Smoothing: Use Heikin Ashi candles for smoother trends and fewer false signals.
Backtesting: Test the indicator on historical data to understand its performance and adjust settings as necessary.
Adapt to Market Conditions: Adjust the lengths of PAC and MAs based on the market's volatility and timeframe you are trading on.
How to Use the Indicator
Add to Chart: Add the indicator to your TradingView chart.
Configure Settings: Customize the input settings to fit your trading strategy and timeframe.
Monitor Signals: Watch for long and short signals and observe the trend direction with the PAC and MAs.
Check Overall Trend: Look at the triangles at the bottom of the chart to see the overall trend direction of the MAs.
Set Alerts: Configure alerts to get notified of new signals.
Manage Trades: Use the SL and TP levels to manage your trades effectively.
ICT Turtle Soup | Flux Charts💎 GENERAL OVERVIEW
Introducing our new ICT Turtle Soup Indicator! This indicator is built around the ICT "Turtle Soup" model. The strategy has 5 steps for execution which are described in this write-up. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new ICT Turtle Soup Indicator :
Implementation of ICT's Turtle Soup Strategy
Adaptive Entry Method
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The ICT Turtle Soup strategy may have different implementations depending on the selected method of the trader. This indicator's implementation is described as :
1. Mark higher timerame liquidity zones.
Liquidity zones are where a lot of market orders sit in the chart. They are usually formed from the long / short position holders' "liquidity" levels. There are various ways to find them, most common one being drawing them on the latest high & low pivot points in the chart, which this indicator does.
2. Mark current timeframe market structure.
The market structure is the current flow of the market. It tells you if the market is trending right now, and the way it's trending towards. It's formed from swing higs, swing lows and support / resistance levels.
3. Wait for market to make a liquidity grab on the higher timeframe liquidity zone.
A liquidity grab is when the marked liquidity zones have a false breakout, which means that it gets broken for a brief amount of time, but then price falls back to it's previous position.
4. Buyside liquidity grabs are "Short" entries and Sellside liquidity grabs are "Long" entries by default.
5. Wait for the market-structure shift in the current timeframe for entry confirmation.
A market-structure shift happens when the current market structure changes, usually when a new swing high / swing low is formed. This indicator uses it as a confirmation for position entry as it gives an insight of the new trend of the market.
6. Place Take-Profit and Stop-Loss levels according to the risk ratio.
This indicator uses "Average True Range" when placing the stop-loss & take-profit levels. Average True Range calculates the average size of a candle and the indicator places the stop-loss level using ATR times the risk setting determined by the user, then places the take-profit level trying to keep a minimum of 1:1 risk-reward ratio.
This indicator follows these steps and inform you step by step by plotting them in your chart.
🚩UNIQUENESS
This indicator is an all-in-one suit for the ICT's Turtle Soup concept. It's capable of plotting the strategy, giving signals, a backtesting dashboard and alerts feature. It's designed for simplyfing a rather complex strategy, helping you to execute it with clean signals. The backtesting dashboard allows you to see how your settings perform in the current ticker. You can also set up alerts to get informed when the strategy is executable for different tickers.
⚙️SETTINGS
1. General Configuration
MSS Swing Length -> The swing length when finding liquidity zones for market structure-shift detection.
Higher Timeframe -> The higher timeframe to look for liquidity grabs. This timeframe setting must be higher than the current chart's timeframe for the indicator to work.
Breakout Method -> If "Wick" is selected, a bar wick will be enough to confirm a market structure-shift. If "Close" is selected, the bar must close above / below the liquidity zone to confirm a market structure-shift.
Entry Method ->
"Classic" : Works as described on the "HOW DOES IT WORK" section.
"Adaptive" : When "Adaptive" is selected, the entry conditions may chance depending on the current performance of the indicator. It saves the entry conditions and the performance of the past entries, then for the new entries it checks if it predicted the liquidity grabs correctly with the current setup, if so, continues with the same logic. If not, it changes behaviour to reverse the entries from long / short to short / long.
2. TP / SL
TP / SL Method -> If "Fixed" is selected, you can adjust the TP / SL ratios from the settings below. If "Dynamic" is selected, the TP / SL zones will be auto-determined by the algorithm.
Risk -> The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
Modern Trend IdentifierThis is an update by Lightangel112 to Trendilo (Open-Source).
Thanks @ Lightangel112
The Modern Trend Identifier (MTI) is a sophisticated technical analysis tool designed for traders and analysts seeking to accurately determine market trends. This indicator leverages the Arnaud Legoux Moving Average (ALMA) to smooth price data and calculate percentage changes, providing a clearer and more responsive trend analysis. MTI is engineered to highlight trend direction with visual cues, fill areas between the indicator and its bands, and color bars based on trend direction, making it a powerful tool for identifying market momentum and potential reversals.
Capabilities
Smoothing and Trend Calculation:
Utilizes ALMA to smooth price data, reducing noise and providing a clearer view of the trend.
Calculates percentage changes in price over a user-defined lookback period.
Dynamic Range Adjustment:
Normalizes the ALMA percentage change values to ensure they stay within a -100 to 100 range.
Uses a combination of linear and smoothstep compression to handle extreme values without losing sensitivity.
Trend Direction and Highlighting:
Determines the trend direction based on the relationship between the smoothed ALMA percentage change and dynamically adjusted RMS (Root Mean Square) bands.
Colors the trend line to visually indicate whether the market is in an uptrend, downtrend, or neutral state.
Dynamic Threshold Calculation:
Calculates dynamic thresholds using percentile ranks to adapt to changing market conditions.
Visualization Enhancements:
Fills areas between the ALMA percentage change line and its RMS bands to provide a clear visual indication of the trend strength.
Offers the option to color price bars based on the identified trend direction.
Customizable Settings:
Provides extensive customization options for lookback periods, smoothing parameters, ALMA settings, band multipliers, and more.
Allows users to enable or disable various visual enhancements and customize their appearance.
Use Cases
Trend Identification:
MTI helps traders identify the current market trend, whether it's bullish, bearish, or neutral. This can be particularly useful for trend-following strategies.
Momentum Analysis:
By highlighting areas of strong momentum, MTI enables traders to spot potential breakouts or breakdowns. This can be useful for both entry and exit decisions.
Support and Resistance Levels:
The dynamic threshold bands can act as support and resistance levels. Traders can use these levels to set stop-loss and take-profit orders.
Divergence Detection:
MTI can help in identifying divergences between price and the indicator, which can signal potential trend reversals. This is useful for traders looking to capitalize on trend changes.
Risk Management:
The fill areas and colored bars provide clear visual cues about trend strength and direction, aiding in better risk management. Traders can adjust their positions based on the strength of the trend.
Backtesting:
The extensive customization options allow traders to backtest different settings and parameters to optimize their trading strategies for various market conditions.
Multiple Timeframes:
MTI can be applied to multiple timeframes, from intraday charts to daily, weekly, or monthly charts, making it a versatile tool for traders with different trading styles.
Example Scenarios
Day Trading:
A day trader can use MTI on a 5-minute chart to identify intraday trends. By adjusting the lookback period and smoothing parameters, the trader can quickly spot potential entry and exit points based on short-term momentum changes.
Swing Trading:
A swing trader might apply MTI to a 4-hour chart to identify medium-term trends. The dynamic thresholds can help in setting appropriate stop-loss levels, while the trend direction highlighting aids in making informed decisions about holding or exiting positions.
Position Trading:
For a position trader using a daily chart, MTI can help identify the overarching trend. The trader can use the fill areas and bar coloring to assess the strength of the trend and make decisions about entering or exiting long-term positions.
Market Analysis:
An analyst could use MTI to study historical price movements and identify patterns. By examining how the indicator reacted to past market conditions, the analyst can gain insights into potential future price movements.
In summary, the Modern Trend Identifier (MTI) is a versatile and powerful tool that enhances trend analysis with advanced smoothing techniques, dynamic adjustments, and comprehensive visual cues. It is designed to meet the needs of traders and analysts across various trading styles and timeframes, providing clear and actionable insights into market trends and momentum.
Updated with the following:
Additions and Enhancements in MTI
Grouped Inputs with Descriptive Tooltips:
Inputs are organized into groups for better clarity.
Each input parameter includes a descriptive tooltip.
Dynamic Threshold Calculation:
Added dynamic threshold calculation using percentile ranks to adapt to changing market conditions.
Normalization and Compression:
Added normalization factor to ensure plots are within -100 to 100 range.
Introduced smoothstep function for smooth transition and selectively applied linear and smoothstep compression to values outside -80 to 100 range.
Enhanced Visualization:
Highlighted trend direction with RGB colors.
Enhanced fill areas between the ALMA percentage change line and its RMS bands.
Colored price bars based on the identified trend direction.
RMS Lines Adjustment:
Dynamically adjusted RMS calculation without strict capping.
Ensured RMS lines stay below fill areas to maintain clarity.
Descriptive and Organized Code:
Enhanced code clarity with detailed comments.
Organized code into logical sections for better readability and maintenance.
Key Differences and Improvements.
Input Customization:
Trendilo: Inputs are simple and ungrouped.
MTI: Inputs are grouped and include tooltips for better user guidance.
Trend Calculation:
Trendilo: Uses ALMA and calculates percentage change.
MTI: Enhanced with normalization, compression, and dynamic threshold calculation.
Normalization and Compression:
Trendilo: No normalization or compression applied.
MTI: Normalizes values to -100 to 100 range and applies smoothstep compression to handle extreme values.
Dynamic RMS Adjustment:
Trendilo: Simple RMS calculation.
MTI: Dynamically adjusted RMS calculation to ensure clarity in visualization.
Visual Enhancements:
Trendilo: Basic trend highlighting and filling.
MTI: Enhanced visual cues with RGB colors, dynamic threshold bands, and improved fill areas.
Code Clarity:
Trendilo: Functional but lacks detailed comments and organization.
MTI: Well-organized, extensively commented code for better readability and maintainability.
CPR By Ask Dinesh Kumar(ADK)Simple CPR Indicator to increase probability of profitable trades:
The Central Pivot Range (CPR) is a trading tool used by traders to identify potential support and resistance levels in the market. Here's a simplified explanation of how traders can potentially profit using the Central Pivot Range with 10 lines:
1. *Understanding CPR*: CPR consists of three lines: the pivot point (PP), upper resistance level (R1), and lower support level (S1). Additionally, traders often add five more of profitable tradeslines above and below the PP to create a 10-line CPR.
2. *Identify Trend*: Determine the prevailing market trend. If the market is bullish, traders will look for buying opportunities near support levels. If the market is bearish, they'll seek selling opportunities near resistance levels.
3. *Entry Points*: Look for entry points near the support (S1) or resistance (R1) levels within the CPR. These levels can act as potential turning points where price may reverse.
4. *Risk Management*: Set stop-loss orders to manage risk. Stop-loss orders should be placed slightly below support levels for long positions and slightly above resistance levels for short positions.
5. *Profit Targets*: Determine profit targets based on the distance between entry point and the next support or resistance level. Some traders use a risk-reward ratio to ensure potential profits outweigh potential losses.
6. *Confirmation*: Use additional technical indicators or price action patterns to confirm potential entry or exit points within the CPR.
7. *Monitor Price Action*: Continuously monitor price action around the CPR levels. Traders should be prepared to adjust their positions if price breaks through support or resistance levels convincingly.
8. *Trade Management*: Once in a trade, actively manage it by adjusting stop-loss orders, trailing stops, or taking partial profits as price moves in the desired direction.
9. *Market Conditions*: Consider broader market conditions, such as economic indicators, geopolitical events, or news releases, which can impact price movements and the effectiveness of CPR.
10. *Practice and Analysis*: Practice using CPR on historical price charts and analyze past trades to refine strategies and improve decision-making skills.
Remember, trading involves risks, and no strategy guarantees profits. It's essential to thoroughly understand the concepts behind CPR and practice disciplined risk management to increase the likelihood of successful trades.
How does central pivot range work:
Sure here's a concise explanation of how the Central Pivot Range (CPR) works in 10 points:
1. *Calculation*: CPR is calculated using the previous day's high (H), low (L), and close (C) prices.
2. *Pivot Point (PP)*: The central point of CPR is the average of the previous day's high, low, and close prices: PP = (H + L + C) / 3.
3. *Upper Resistance Levels (R1, R2, R3)*: These are potential price levels above the pivot point where resistance may occur. They are calculated by adding a multiple of the range (H - L) to the pivot point: R1 = (2 * PP) - L, R2 = PP + (H - L), R3 = PP + 2 * (H - L).
4. *Lower Support Levels (S1, S2, S3)*: These are potential price levels below the pivot point where support may occur. They are calculated similarly to resistance levels but subtracting multiples of the range from the pivot point: S1 = (2 * PP) - H, S2 = PP - (H - L), S3 = PP - 2 * (H - L).
5. *Trading Signals*: Traders use CPR to identify potential support and resistance levels where price may reverse or stall.
6. *Range Bound Markets*: In range-bound markets, traders may buy near support levels (S1, S2, S3) and sell near resistance levels (R1, R2, R3).
7. *Breakout Trading*: When price breaks through a CPR level convincingly, it may indicate a potential trend continuation or reversal, providing breakout trading opportunities.
8. *Volume and Momentum*: Traders often look for confirmation from volume and momentum indicators when price approaches CPR levels.
9. *Intraday Trading*: CPR can be applied to intraday timeframes as well, providing shorter-term traders with potential trading levels for the day.
10. *Dynamic Indicator*: CPR is dynamic and recalculates daily based on new price data, allowing traders to adapt their strategies to current market conditions.
Understanding how to interpret CPR levels and integrate them into a trading strategy can help traders identify potential entry and exit points in the market.
Engulfing with Fibonacci LevelsIndicator Explanation
The indicator identifies bullish and bearish engulfing patterns and plots Fibonacci levels based on these patterns. Here's a detailed explanation of the script:
1. Bullish Engulfing Pattern
A bullish engulfing pattern is identified when:
- The previous candle is bearish (`close < open `).
- The current candle is bullish (`close > open`).
- The low of the current candle is lower than the low of the previous candle (`low < low `).
- The current candle's close is higher than the previous candle's open (`close > open `).
When a bullish engulfing pattern is identified:
- Fibonacci levels are plotted from the low (0%) to the high (100%) of the bullish candle.
- A green dot is plotted below the bullish candle to indicate a buy signal.
2. Bearish Engulfing Pattern
A bearish engulfing pattern is identified when:
- The previous candle is bullish (`close > open `).
- The current candle is bearish (`close < open`).
- The high of the current candle is higher than the high of the previous candle (`high > high `).
- The current candle's close is lower than the previous candle's open (`close < open `).
When a bearish engulfing pattern is identified:
- Fibonacci levels are plotted from the high (0%) to the low (100%) of the bearish candle.
- A red dot is plotted above the bearish candle to indicate a sell signal.
3. Plotting Fibonacci Levels
For both bullish and bearish patterns, Fibonacci levels are plotted at:
- 0% (high for bullish, low for bearish)
- 50%
- 61.8%
- 79%
- 100% (low for bullish, high for bearish)
Smart Money Concept (SMC) Explanation
Bearish Signal
In the context of Smart Money Concepts (SMC), a bearish engulfing pattern can indicate:
- **Buy Side Liquidity Grab**: The high of the current bearish candle goes above the high of the previous bullish candle, potentially grabbing buy-side liquidity (stop losses of short positions or buy stops).
- **Break of Structure (BoS)**: The close of the bearish candle below the open of the previous bullish candle indicates a shift in market structure.
After identifying this bearish engulfing pattern, a smart money trader might:
1. Wait for the market to retrace 50% of the bearish candle.
2. Enter a sell trade around the 50% retracement level, anticipating a continuation of the downward move.
#### Bullish Signal
Similarly, a bullish engulfing pattern can indicate:
- **Sell Side Liquidity Grab**: The low of the current bullish candle goes below the low of the previous bearish candle, potentially grabbing sell-side liquidity (stop losses of long positions or sell stops).
- **Break of Structure (BoS)**: The close of the bullish candle above the open of the previous bearish candle indicates a shift in market structure.
After identifying this bullish engulfing pattern, a smart money trader might:
1. Wait for the market to retrace 50% of the bullish candle.
2. Enter a buy trade around the 50% retracement level, anticipating a continuation of the upward move.
The indicator helps traders identify key engulfing patterns that align with smart money concepts of liquidity grabs and breaks of structure. By plotting Fibonacci levels, it visually aids traders in waiting for optimal retracement levels (50%) to enter trades in the direction of the anticipated move. This approach leverages the idea that significant market participants often seek liquidity and cause structural shifts, providing entry opportunities for informed traders.
[GYTS-Pro] Flux Composer🧬 Flux Composer (Professional Edition)
🌸 Confluence indicator in GoemonYae Trading System (GYTS) 🌸
The Flux Composer is a powerful tool in the GYTS suite that is designed to aggregate signals from multiple Signal Providers, apply advanced decaying functions, and offer customisable and advanced confluence mechanisms. This allows making informed decisions by considering the strength and agreement ("when all stars align") of various input signals.
🌸 --------- TABLE OF CONTENTS --------- 🌸
1️⃣ Main Highlights
2️⃣ Flux Composer’s Features
Multi Signal Provider support
Advanced decaying functions
Customisable Flux confluence mechanisms
Actionable trading experience
Filtering options
User-friendly experience
Upgrades compared to Community Edition
3️⃣ User Guide
Selecting Signal Providers
Connecting Signal Providers to the Flux Composer
Understanding the Flux
Tuning the decaying functions
Choosing Flux confluence mechanism
Choosing sensitivity
Utilising the filtering options
Interpreting the Flux for trading signals
4️⃣ Limitations
🌸 ------ 1️⃣ --- MAIN HIGHLIGHTS --- 1️⃣ ------ 🌸
- Signal aggregation : Combines signals from multiple different 📡 Signal Providers, each of which can be tuned and adjusted independently.
- Decaying function : Utilises advanced decaying functions to model the diminishing effect of signals over time, ensuring that recent signals have more weight. In addition to the decaying effect, the "quality" of the original signals (e.g. a "strong" GDM from WaveTrend 4D ) are accounted for as well.
- Flux confluence mechanism : The aggregation of all decaying functions form the "Flux", which is the core signal measurement of the Flux Composer. Multiple mechanisms are available for creating the Flux and effectively using it for actionable trading signals.
- Visualisation : Provides detailed visualisation options to help users understand and tune the contributions of individual Signal Providers and their decaying functions.
- Backtesting : The 🧬 Flux Composer is a core component of the TradingView suite of the 🌸 GoemonYae Trading System (GYTS) 🌸. It connects multiple 📡 Signal Providers, such as the WaveTrend 4D, and processes their signals to produce a unified "Flux". This Flux can then be used by the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
🌸 ------ 2️⃣ --- FLUX COMPOSER'S FEATURES --- 2️⃣ ------ 🌸
Let's delve into more details...
💮 1. Multi Signal Provider support
Using the name of the GYTS "🎼 Order Orchestrator" as an analogy: Imagine a symphony where each instrument plays its own unique part, contributing to the overall harmony. The Flux Composer operates similarly, integrating multiple Signal Providers to create a comprehensive and robust trading signal -- the "Flux". Currently, it supports up to four streams from the WaveTrend 4D's ’s Gradient Divergence Measure (GDM) and another four streams from the Quantile Median Cross (QMC). These can be either four "Professional Edition" Signal Providers or eight "Community Editions".
Note that the GDM includes 2 different continuous signals and the QMC 3 different continuous signals (from different frequencies). This means that the Community Edition can handle 2*2 + 2*3 = 10 different continuous signals and the Professional Edition as much as 20.
As GYTS evolves, more Signal Providers will be added; at the moment of releasing the Flux Composer, only WaveTrend 4D is publicly available.
💮 2. Advanced decaying functions
A trading signal can be relevant today, less relevant tomorrow, and irrelevant in a week's time. In other words, its relevance diminishes, or decays , over time. The Flux Composer utilises decaying functions that ensure that recent signals carry more weight, while older signals fade away. This is crucial for accurate signal processing. The intensity and decay settings allow for precise control, allowing emphasising certain signals based on their strength and relevance over time. On top of that, unlike binary signals ("buy now"), the Flux Composer utilises the actual values from the Signal Providers, differentiating between the exact quality of signals, and thus offering a detailed representation of the trading landscape. We will illustrate this in a further section.
💮 3. Customisable Flux confluence mechanisms
Another core component of the Flux Composer is the ability of intelligently combining the decaying functions. It offers four sophisticated confluence mechanisms: Amplitude Compression, Accentuated Amplitude Compression, Trigonometric, and GYTSynthesis. Each mechanism has its unique way of processing the Flux, tailored to different trading needs. For instance, the Amplitude Compression method scales the Flux based on recent values, much like the Stochastic Oscillator, while the Trigonometric method uses smooth functions to reduce outliers’ impact. The GYTSynthesis is a proprietary method, striking a balance between signal strength and discriminative power.
We'll discuss this in more detail in the User Guide section.
💮 4. Actionable trading experience
While the mathematical abilities might seem overwhelming, the goal of the Flux Composer is to transform complex signal data into actionable trading signals. When the Flux reaches certain thresholds, it generates clear bullish or bearish signals, making it easy for traders to interpret. The inclusion of upper and lower thresholds (UT and LT) helps in identifying strong signals visually and should be a familiar behaviour similar to how many other indicators operate. Furthermore, the Flux Composer can plot trading signals directly on the oscillator, showing triangle shapes for buy or sell signals. This visual aid is complemented by the possibility to setup TradingView alerts.
💮 5. Filtering options
The Professional Edition also offers filtering options to possibly further improve the quality of Flux signals. Signal streams can be divided into “Signal Flux” and “Filter Flux.” The Filter Flux acts as a gatekeeper, ensuring that only signals meeting the Filter's criteria (which consist of similar UT/LT thresholds) are considered for trading. This dual-layer approach enhances the reliability of trading signals, reducing the chances of false positives.
💮 6. User-friendly experience
GYTS is all about sophisticated, robust methods but also "elegance". One of the interpretations of the latter, is that the users' experience is very important. Despite the Flux Composer's mathematical underpinnings, it offers intuitive settings that with omprehensive tooltips to help with a smooth setup process. For those looking to fine-tune their signals, the Flux Composer allows the visualisation of individual decaying functions. This feature helps users understand the impact of each setting and make informed adjustments. Additionally, the background of the chart can be coloured to indicate the trading direction suggested by the Filter Flux, providing an at-a-glance overview of market conditions.
💮 7. Upgrades compared to Community Edition
Number of signal streams -- At the moment of writing, the Professional Edition works with 4x GDM and 4x QMC signal streams from WaveTrend 4D Signal Provider , while Community Edition (CE) Flux Composer (FC) only works with 2x GDM and 2x QMC signal streams.
Flux confluence mechanism -- CE includes the Amplitude Compression and Trigonometric confluence mechanisms, while the Pro Edition also includes the Accentuated Amplitude Compression and the GYTSynthesis mechanisms.
Signal streams as filters -- The Pro Edition can use Signal Providers as filters.
🌸 ------ 3️⃣ --- USER GUIDE --- 3️⃣ ------ 🌸
💮 1. Selecting Signal Providers
The Flux Composer’s foundation lies in its Signal Providers. When starting with the Flux Composer, using a single Signal Provider can already provide significant value due to the nature of decaying functions. For instance, the WaveTrend 4D signal provider includes up to 5 signal types (GDM and QMC in different frequencies) in a single direction (long/short). Moreover, the various confluence mechanisms that enhance the resulting Flux result in improved discrimination between weak and strong signals. This approach is akin to ensemble learning in machine learning, where multiple models are combined to improve predictive performance.
While using a single Signal Provider is beneficial, the true power of the Flux Composer is realised with multiple Signal Providers. Here are two general approaches to selecting Signal Providers:
Diverse Behaviours
Use Signal Providers with different behaviours, such as WaveTrend 4D on various assets/timeframes or entirely different Signal Providers. This approach leverages diversification to achieve robustness, rooted in the principle that varied sources enhance the overall signal quality. To explain this with an analogy, this strategy aligns with the theory of diversification in portfolio management, where combining uncorrelated assets reduces overall risk. Similarly, combining uncorrelated signals can mitigate the risk of signal failure. A practical example can be integrating a mean-reversion signal with a trend-following signal -- these can balance each other out, providing more stable outputs over different market conditions.
Enhancing a Single Provider
If you consider a particular Signal Provider highly effective, you could improve its robustness by using multiple instances with slight variations. These variations could include different sources (e.g., close, HL2, HLC3), data providers (same asset across different brokers/exchanges), or parameter adjustments. This method mirrors Monte Carlo simulations, often used in risk management and derivative pricing, which involve running many simulations with varied inputs to estimate the probability of different outcomes. By applying similar principles, the strategy becomes less susceptible to overfitting, ensuring the signals are not overly dependent on specific data conditions.
💮 2. Connecting Signal Providers to the Flux Composer
Moving on to practicalities: how do you connect Signal Providers with the Flux Composer? You may have noticed that when you open the drawdown of a data source in a TradingView indicator (with "open", "high", "low", etc.), you also see names from other indicators on your chart. We call these "streams", and the Signal Providers are designed such that they output this stream in a way that the Flux Composer can interpret it. Thus, to connect a Signal Provider with the Flux Composer, you should first have that Signal Provider on your chart. Obviously you should set it up an a way that it seems to provide good signals. After that, in the Data Stream dropdown in the Flux Composer, you can select the stream that is outputted by your Signal Provider. This will always be with a prefix of "🔗 STREAM" (after the Signal Provider's indicator name). See the chart below.
There is one important nuance: when you have multiple (similar) Signal Providers on your chart, it may be hard to select the correct data stream in the Flux Composer as the names of the streams keep repeating when you use identical indicators. So be sure to be attentive as you might end up using the same signals multiple times.
Also, the Signal Providers have an "Indicator name" parameter (and another parameter to repeat this name) that is handy to use when you have multiple Signal Providers on your screen. It is handy to give names that describe the unique settings of that Signal Provider so you can better differentiate what you are looking at on your screen.
💮 3. Understanding the Flux
Let's understand how the Signal Provider's signals are processed. In the chart below, you see we have one Signal Provider (WaveTrend 4D) connected to the Flux Composer and that it gives a bearish QMC signal. The Flux Composer converts this into a decaying function. You can show these functions per Signal Provider when the option "Show decaying function of Signal Provider" is enabled (as it is in the chart).
In our opinion, of crucial importance is the ability to process the quality of signals, rather than just any signal. In mathematical terms, we are interested in continuous signals as these provide a spectrum of values. These signals can reflect varying degrees of market sentiment or trend strength, offering richer information than binary signals, which offer only two states (e.g., buy/sell). Especially in the context of the Flux Composer, where you aggregate multiple signals, it makes a big difference whether you combine 10 weak signals or 10 strong signals. To illustrate this principle, look at the chart below where there are 4 signals of different strengths. As you can see, each of the signals affects the Flux with different intensities.
💮 4. Tuning the decaying functions
As previously mentioned, the decaying functions are a way to give more importance to recent signals while allowing older ones to fade away gradually. This mimics the natural way we assess information, giving more weight to recent events. The decaying functions in the Flux Composer are highly customisable while remaining easy to use. You can adjust the initial intensity , which sets the starting strength of a signal, and the decay rate, which determines how quickly this signal diminishes over time. Let's look at specific examples.
If we add 3 Flux Composers on the chart, connect the same Signal Provider, keep all settings the same with one exception, we get the chart below. Here we have changed the "intensity" parameter of the specific signal. As you can see, the decaying functions are different. The intensity determines the initial strength of the decayed function. Adjusting the intensity allows you to emphasise certain signal types based on their perceived reliability or importance.
Let's now keep the intensity the same ("normal"), but change the "decay" parameter. As you can see in the image below, the decay controls how quickly the signal’s strength diminishes over time. By adjusting the decay, you can model the longevity of the signal’s impact. A faster decay means the signal loses its influence quickly, while a slower decay means it remains relevant for a longer period.
So how do multiple signals interact? You can see this as a simple "stacking of decaying functions" (although there is more to it, see next section). In the chart below we different strenghts of signals and different decay rates to illustrate how the Flux is constructed.
Hopefully this helps with developing some intuition how signals are converted to decaying functions, how you can control them, and how the Flux is constructed. When tuning these parameters, use the visualisation options to see how individual decaying functions contribute to the overall Flux. This helps in understanding and refining the parameters to achieve the desired trading signal behaviour.
💮 5. Choosing Flux confluence mechanism
While we mentioned that the Flux is a "stacking of individual decaying functions", in the back-end, that is not exactly that simple. Like previously mentioned, for GYTS, "elegance" is very important. One of the interpretations is "user friendliness" and the Flux confluence mechanism is one of the essential developments for this characteristic. The Flux confluence mechanism is critical in synthesising the aggregated signals into the Flux. The choice of mechanism affects how the signals are combined and the resulting trading signals. The Professional Edition offers four distinct mechanisms, each with its strengths.
The Amplitude Compression mechanism is intuitive, scaling the Flux based on recent values, intuitively not unlike the method of the well-known Stochastic Oscillator. The Accentuated Amplitude Compression method takes this a step further, giving more weight to strong Flux values. The Trigonometric mechanism smooths the Flux and reduces the impact of outliers, providing a balanced approach. Finally, the GYTSynthesis mechanism, a proprietary approach, balances signal strength and discriminative power, making it easier to tune and generalise.
It's difficult to convey the workings of the Flux confluence mechanism in a chart, but let's take the opportunity to show how the Flux would look like when connecting both one WaveTrend 4D Signal Provider signals to four Flux Composers with default settings, except the Flux confluence mechanism:
You may notice subtle differences between the four methods. They react differently to different values and their overall shape is slightly be different. The Amplitude Compression is more "pointy" and GYTSynthesis doesn't react to low values. There are many nuances, especially in combination with tuning the sensitivity and upper/lower threshold (UT/LT) parameters.
💮 6. Choosing sensitivity
Speaking of the sensitivity , this parameters fine-tunes how responsive the Flux is to the input signals. Higher sensitivity results in more pronounced responses, leading to more frequent trading signals. Lower sensitivity makes the Flux less responsive, resulting in fewer but potentially more reliable signals.
You might think that changing the upper/lower threshold (UT/LT) parameters would be equivalent, but that's not the case. The sensitivity In case of the Amplitude Compression mechanisms, changing the sensitivity would change the relative Flux shape over time, and with the Trigonometric and GYTSynthesis mechanisms, the Flux shape itself (independent of time) would change. In other words, these are all good parameters for tuning.
💮 7. Utilising the filtering options
When choosing the signal stream of a Signal Provider, you can also change the default "Signal" category of that Signal Provider to a "Filter". In the example below, two Signal Providers are connected; the second is set as a filter. You can see that a second row of a Flux is shown in the Flux Composer (this visualisation can be disabled), corresponding with the signals of the second Signal Provider.
Logically, only when the Filter Flux gives a signal in a certain direction, signals from the regular Signal Flux are registered. Generally speaking, for this use case it is handy to set the thresholds for the Filter Flux low and possibly to decrease the decay rate so that the filtering is active for a long enough time.
💮 8. Interpreting the Flux for trading signals
Lastly, the Signal Flux gives buy and sell signals when it crosses the upper/lower thresholds (UT/LT), when the filter allows it (if enabled). This can be visualised with the triangles as you may have seen in the charts in the previous sections. For people using TradingView's alerts -- these would work too out of the box. And finally, for backtesting and possibly trade automation, we will have the GYTS "🎼 Order Orchestrator" that connects with the Flux Composer.
🌸 ------ 4️⃣ --- LIMITATIONS --- 4️⃣ ------ 🌸
Only 🌸 GYTS 📡 Signal Providers are supported, as there is a specific method to pass continuous (non-binary) data in the data stream
At the moment of release, only the WaveTrend 4D Signal Provider is available. Other Signal Providers will be gradually released.
[GYTS-CE] Flux Composer🧬 Flux Composer (Community Edition)
🌸 Confluence indicator in GoemonYae Trading System (GYTS) 🌸
The Flux Composer is a powerful tool in the GYTS suite that is designed to aggregate signals from multiple Signal Providers, apply customisable decaying functions, and offer customisable and advanced confluence mechanisms. This allows making informed decisions by considering the strength and agreement ("when all stars align") of various input signals.
🌸 --------- TABLE OF CONTENTS --------- 🌸
1️⃣ Main Highlights
2️⃣ Flux Composer’s Features
Multi Signal Provider support
Advanced decaying functions
Customisable Flux confluence mechanisms
Actionable trading experience
User-friendly experience
3️⃣ User Guide
Selecting Signal Providers
Connecting Signal Providers to the Flux Composer
Understanding the Flux
Tuning the decaying functions
Choosing Flux confluence mechanism
Choosing sensitivity
Interpreting the Flux for trading signals
4️⃣ Limitations
🌸 ------ 1️⃣ --- MAIN HIGHLIGHTS --- 1️⃣ ------ 🌸
- Signal aggregation : Combines signals from multiple different 📡 Signal Providers, each of which can be tuned and adjusted independently.
- Decaying function : Utilises advanced decaying functions to model the diminishing effect of signals over time, ensuring that recent signals have more weight. In addition to the decaying effect, the "quality" of the original signals (e.g. a "strong" GDM from WaveTrend 4D with GDM ) are accounted for as well.
- Flux confluence mechanism : The aggregation of all decaying functions form the "Flux", which is the core signal measurement of the Flux Composer. Multiple mechanisms are available for creating the Flux and effectively using it for actionable trading signals.
- Visualisation : Provides detailed visualisation options to help users understand and tune the contributions of individual Signal Providers and their decaying functions.
- Backtesting : The 🧬 Flux Composer is a core component of the TradingView suite of the 🌸 GoemonYae Trading System (GYTS) 🌸. It connects multiple 📡 Signal Providers, such as the WaveTrend 4D, and processes their signals to produce a unified "Flux". This Flux can then be used by the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
🌸 ------ 2️⃣ --- FLUX COMPOSER'S FEATURES --- 2️⃣ ------ 🌸
Let's delve into more details...
💮 1. Multi Signal Provider support
Using the name of the GYTS "🎼 Order Orchestrator" as an analogy: Imagine a symphony where each instrument plays its own unique part, contributing to the overall harmony. The Flux Composer operates similarly, integrating multiple Signal Providers to create a comprehensive and robust trading signal -- the "Flux". Currently, it supports up to two streams from the WaveTrend 4D’s Gradient Divergence Measure (GDM) and another two streams from the WaveTrend 4D's Quantile Median Cross (QMC) .
Note that the GDM includes 2 different continuous signals and the QMC 3 different continuous signals (from different frequencies). This means that the Community Edition can handle 2*2 + 2*3 = 10 different continuous signals.
As GYTS evolves, more Signal Providers will be added; at the moment of releasing the Flux Composer, only WaveTrend 4D with GDM and with QMC are publicly available.
💮 2. Advanced decaying functions
A trading signal can be relevant today, less relevant tomorrow, and irrelevant in a week's time. In other words, its relevance diminishes, or decays , over time. The Flux Composer utilises decaying functions that ensure that recent signals carry more weight, while older signals fade away. This is crucial for accurate signal processing. The intensity and decay settings allow for precise control, allowing emphasising certain signals based on their strength and relevance over time. On top of that, unlike binary signals ("buy now"), the Flux Composer utilises the actual values from the Signal Providers, differentiating between the exact quality of signals, and thus offering a detailed representation of the trading landscape. We will illustrate this in a further section.
💮 3. Customisable Flux confluence mechanisms
Another core component of the Flux Composer is the ability of intelligently combining the decaying functions. It offers two sophisticated confluence mechanisms: Amplitude Compression and Trigonometric. Each mechanism has its unique way of processing the Flux, tailored to different trading needs. The Amplitude Compression method scales the Flux based on recent values, much like the Stochastic Oscillator, while the Trigonometric method uses smooth functions to reduce outliers’ impact We'll discuss this in more detail in the User Guide section.
💮 4. Actionable trading experience
While the mathematical abilities might seem overwhelming, the goal of the Flux Composer is to transform complex signal data into actionable trading signals. When the Flux reaches certain thresholds, it generates clear bullish or bearish signals, making it easy for traders to interpret. The inclusion of upper and lower thresholds (UT and LT) helps in identifying strong signals visually and should be a familiar behaviour similar to how many other indicators operate. Furthermore, the Flux Composer can plot trading signals directly on the oscillator, showing triangle shapes for buy or sell signals. This visual aid is complemented by the possibility to setup TradingView alerts.
💮 5. User-friendly experience
GYTS is all about sophisticated, robust methods but also "elegance". One of the interpretations of the latter, is that the users' experience is very important. Despite the Flux Composer's mathematical underpinnings, it offers intuitive settings that with omprehensive tooltips to help with a smooth setup process. For those looking to fine-tune their signals, the Flux Composer allows the visualisation of individual decaying functions. This feature helps users understand the impact of each setting and make informed adjustments.
🌸 ------ 3️⃣ --- USER GUIDE --- 3️⃣ ------ 🌸
💮 1. Selecting Signal Providers
The Flux Composer’s foundation lies in its Signal Providers. When starting with the Flux Composer, using a single Signal Provider can already provide significant value due to the nature of decaying functions. For instance, the WaveTrend 4D signal provider includes up to two GDM and three QMC signals in a single direction (long/short). Moreover, the various confluence mechanisms that enhance the resulting Flux result in improved discrimination between weak and strong signals. This approach is akin to ensemble learning in machine learning, where multiple models are combined to improve predictive performance.
While using a single Signal Provider is beneficial, the true power of the Flux Composer is realised with multiple Signal Providers. Here are two general approaches to selecting Signal Providers:
Diverse Behaviours
Use Signal Providers with different behaviours, such as WaveTrend 4D on various assets/timeframes or entirely different Signal Providers. This approach leverages diversification to achieve robustness, rooted in the principle that varied sources enhance the overall signal quality. To explain this with an analogy, this strategy aligns with the theory of diversification in portfolio management, where combining uncorrelated assets reduces overall risk. Similarly, combining uncorrelated signals can mitigate the risk of signal failure. A practical example can be integrating a mean-reversion signal with a trend-following signal -- these can balance each other out, providing more stable outputs over different market conditions.
Enhancing a Single Provider
If you consider a particular Signal Provider highly effective, you could improve its robustness by using multiple instances with slight variations. These variations could include different sources (e.g., close, HL2, HLC3), data providers (same asset across different brokers/exchanges), or parameter adjustments. This method mirrors Monte Carlo simulations, often used in risk management and derivative pricing, which involve running many simulations with varied inputs to estimate the probability of different outcomes. By applying similar principles, the strategy becomes less susceptible to overfitting, ensuring the signals are not overly dependent on specific data conditions.
💮 2. Connecting Signal Providers to the Flux Composer
Moving on to practicalities: how do you connect Signal Providers with the Flux Composer? You may have noticed that when you open the drawdown of a data source in a TradingView indicator (with "open", "high", "low", etc.), you also see names from other indicators on your chart. We call these "streams", and the Signal Providers are designed such that they output this stream in a way that the Flux Composer can interpret it. Thus, to connect a Signal Provider with the Flux Composer, you should first have that Signal Provider on your chart. Obviously you should set it up an a way that it seems to provide good signals. After that, in the Data Stream dropdown in the Flux Composer, you can select the stream that is outputted by your Signal Provider. This will always be with a prefix of "🔗 STREAM" (after the Signal Provider's indicator name). See the chart below.
There is one important nuance: when you have multiple (similar) Signal Providers on your chart, it may be hard to select the correct data stream in the Flux Composer as the names of the streams keep repeating when you use identical indicators. So be sure to be attentive as you might end up using the same signals multiple times.
Also, the Signal Providers have an "Indicator name" parameter (and another parameter to repeat this name) that is handy to use when you have multiple Signal Providers on your screen. It is handy to give names that describe the unique settings of that Signal Provider so you can better differentiate what you are looking at on your screen.
💮 3. Understanding the Flux
Let's understand how the Signal Provider's signals are processed. In the chart below, you see we have one Signal Provider (WaveTrend 4D) connected to the Flux Composer and that it gives a bearish QMC signal. The Flux Composer converts this into a decaying function. You can show these functions per Signal Provider when the option "Show decaying function of Signal Provider" is enabled (as it is in the chart).
In our opinion, of crucial importance is the ability to process the quality of signals, rather than just any signal. In mathematical terms, we are interested in continuous signals as these provide a spectrum of values. These signals can reflect varying degrees of market sentiment or trend strength, offering richer information than binary signals, which offer only two states (e.g., buy/sell). Especially in the context of the Flux Composer, where you aggregate multiple signals, it makes a big difference whether you combine 10 weak signals or 10 strong signals. To illustrate this principle, look at the chart below where there are 4 signals of different strengths. As you can see, each of the signals affects the Flux with different intensities.
💮 4. Tuning the decaying functions
As previously mentioned, the decaying functions are a way to give more importance to recent signals while allowing older ones to fade away gradually. This mimics the natural way we assess information, giving more weight to recent events. The decaying functions in the Flux Composer are highly customisable while remaining easy to use. You can adjust the initial intensity , which sets the starting strength of a signal, and the decay rate, which determines how quickly this signal diminishes over time. Let's look at specific examples.
If we add 3 Flux Composers on the chart, connect the same Signal Provider, keep all settings the same with one exception, we get the chart below. Here we have changed the "intensity" parameter of the specific signal. As you can see, the decaying functions are different. The intensity determines the initial strength of the decayed function. Adjusting the intensity allows you to emphasise certain signal types based on their perceived reliability or importance.
Let's now keep the intensity the same ("normal"), but change the "decay" parameter. As you can see in the image below, the decay controls how quickly the signal’s strength diminishes over time. By adjusting the decay, you can model the longevity of the signal’s impact. A faster decay means the signal loses its influence quickly, while a slower decay means it remains relevant for a longer period.
So how do multiple signals interact? You can see this as a simple "stacking of decaying functions" (although there is more to it, see next section). In the chart below we use different "intensity" and "decay" parameters to discuss how the Flux is created.
Hopefully this helps with developing some intuition how signals are converted to decaying functions, how you can control them, and how the Flux is constructed. When tuning these parameters, use the visualisation options to see how individual decaying functions contribute to the overall Flux. This helps in understanding and refining the parameters to achieve the desired trading signal behaviour.
💮 5. Choosing Flux confluence mechanism
While we mentioned that the Flux is a "stacking of individual decaying functions", in the back-end, that is not exactly that simple. Like previously mentioned, for GYTS, "elegance" is very important. One of the interpretations is "user friendliness" and the Flux confluence mechanism is one of the essential developments for this characteristic. The Flux confluence mechanism is critical in synthesising the aggregated signals into the Flux. The choice of mechanism affects how the signals are combined and the resulting trading signals. The Community Edition offers two distinct mechanisms, each with its strengths.
The Amplitude Compression mechanism is intuitive, scaling the Flux based on recent values, intuitively not unlike the method of the well-known Stochastic Oscillator. On the other hand, the Trigonometric mechanism smooths the Flux and reduces the impact of outliers, providing a balanced approach. It's difficult to convey the workings of the Flux confluence mechanism in a chart, but let's take the opportunity to show how the Flux would look like when connecting both GDM and QMC signals to two Flux Composers with default settings, except the Flux confluence mechanism:
You can notice that the upper Flux Converter (FC) triggered two signals while the other FC triggered only one. There are more nuances, especially in combination with tuning the sensitivity and upper/lower threshold (UT/LT) parameters.
💮 6. Choosing sensitivity
Speaking of the sensitivity , this parameters fine-tunes how responsive the Flux is to the input signals. Higher sensitivity results in more pronounced responses, leading to more frequent trading signals. Lower sensitivity makes the Flux less responsive, resulting in fewer but potentially more reliable signals.
You might think that changing the upper/lower threshold (UT/LT) parameters would be equivalent, but that's not the case. The sensitivity In case of the Amplitude Compression mechanism, changing the sensitivity would change the relative Flux shape over time, and with the Trigonometric mechanism, the Flux shape itself (independent of time) would change. In other words, these are all good parameters for tuning.
💮 8. Interpreting the Flux for trading signals
Lastly, the Signal Flux gives buy and sell signals when it crosses the upper/lower thresholds (UT/LT) This can be visualised with the triangles as you may have seen in the charts in the previous sections. For people using TradingView's alerts -- these would work out of the box. And finally, for backtesting and possibly trade automation, we will have the GYTS "🎼 Order Orchestrator" that connects with the Flux Composer.
🌸 ------ 4️⃣ --- LIMITATIONS --- 4️⃣ ------ 🌸
Only 🌸 GYTS 📡 Signal Providers are supported, as there is a specific method to pass continuous (non-binary) data in the data stream
At the moment of release, only WaveTrend 4D with GDM and with QMC are available. Other Signal Providers will be gradually released.
Cumulative Volume Delta (MTF)Cumulative Volume Delta (CVD) Indicator
The Cumulative Volume Delta (CVD) indicator is a powerful analytical tool used to understand the behavior and dynamics of market participants through volume analysis. It tracks the net difference between buying and selling pressure, providing insights into market trends and potential reversals. Here's a detailed description of this indicator and its components:
The Cumulative Volume Delta (CVD) indicator calculates the cumulative net difference between buying and selling volume over a specified period. By analyzing this net difference, traders can gain insights into the underlying strength or weakness of a price movement, helping to identify trends, reversals, and potential breakout points.
Key Components:
Bull & Bear Power Calculation:
Bull Power: Represents the strength of buyers in the market. It is calculated based on the relationship between the current and previous price bars. A higher Bull Power indicates stronger buying pressure.
Bear Power: Represents the strength of sellers in the market. It is also calculated based on the relationship between the current and previous price bars. A higher Bear Power indicates stronger selling pressure.
Bull & Bear Volume Calculation:
Bull Volume: The volume attributed to buying pressure. It is calculated by taking the proportion of Bull Power relative to the total of Bull Power and Bear Power, multiplied by the total volume.
Bear Volume: The volume attributed to selling pressure. It is calculated similarly to Bull Volume but using Bear Power.
Delta Calculation:
Delta: The net difference between Bull Volume and Bear Volume for each bar. A positive Delta indicates more buying pressure, while a negative Delta indicates more selling pressure.
Cumulative Volume Delta (CVD):
CVD: The running total of the Delta values over time. It accumulates the net buying and selling pressure to provide a visual representation of the market's cumulative sentiment.
Moving Average of CVD (CVD MA):
CVD MA: A simple moving average of the CVD, used to smooth out fluctuations and help identify the overall trend. It provides a baseline to compare the current CVD value against, highlighting divergences or convergences.
Multi-Timeframe Functionality:
The enhanced version of the CVD indicator includes multi-timeframe (MTF) capabilities, allowing users to select and analyze data from different timeframes. This feature enhances the versatility of the indicator by providing a broader perspective on market dynamics across various time intervals.
Practical Applications:
Trend Identification: By tracking the CVD and its moving average, traders can identify the prevailing trend. An upward-sloping CVD indicates sustained buying pressure, while a downward-sloping CVD indicates sustained selling pressure.
Divergences: Divergences between the CVD and price can signal potential reversals. For example, if the price is making new highs but the CVD is not, it may indicate weakening buying pressure and a potential reversal.
Breakout Confirmation: Significant changes in the CVD can confirm breakouts. A sharp increase in the CVD during a price breakout indicates strong buying support, adding confidence to the breakout.
Support and Resistance Levels: The CVD can help identify significant support and resistance levels based on changes in volume dynamics. For instance, a notable increase in buying volume at a support level can reinforce its strength.
Bar Outlines [UkutaLabs]█ OVERVIEW
The Bar Outlines indicator will automatically draw bars from higher time frames onto lower time frames, allowing traders to analyse multiple levels of information at a glance. This indicator is intended to assist traders by allowing them to see different depths of the market on one single chart, as well as to improve the clarity of other indicators that mirror higher time frame data.
The purpose of this script is to simplify the experience of users by allowing them to mirror bars from several higher time frame options onto lower time frame charts.
█ USAGE
Users can choose between several different time frames that they would like to have displayed on their lower time frame charts.
The colors of these bars are customizable, allowing users to distinguish between bullish and bearish bars, as well as making it easier to understand which time frame the bars are being mirrored from if they choose to mirror multiple time frames.
The mirrored bars also contain two sections. The main section is a solid section that represents the body of the higher time frame bar, and the secondary section is a border that represents the wick of the higher time frame bar, making it easier for the user to get all the information they need about the higher time frame bar at a glance.
█ SETTINGS
Configuration
- Max Bars to Display: Determines the number of higher time frame bars to draw on the chart. This number is for each higher time frame that the user has enabled, not the total.
5 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 5 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 5 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 5 minute time frame.
15 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 15 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 15 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 15 minute time frame.
30 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 30 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 30 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 30 minute time frame.
60 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 60 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 60 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 60 minute time frame.
240 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 240 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 240 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 240 minute time frame.
Daily (Higher Time Frame)
- Display (On/Off): Determines whether bars from the daily chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the daily time frame.
- Bearish Color: Determines the color of bearish bars drawn from the daily time frame.
Table Volume MultiframeDescription
The Table Volume Multiframe indicator displays volume information across multiple timeframes in a convenient table format. Users can customize the table's position, size, and the specific timeframes to be displayed. This indicator helps traders analyze volume trends and divergences across different timeframes, providing a comprehensive view of market activity. The table shows the total volume, buy percentage, sell percentage, and a countdown timer for the next bar close for each selected timeframe. The countdown function updates consistently to provide real-time information.
Features
- Customizable table position and size
- Selectable timeframes
- Displays volume, buy percentage, sell percentage
- Countdown timer for next bar close
- Real-time updates
Average price in candlePlots the average price a security had within a candle.
So, for example: If you have a 15m candle, and price stayed near the candle's high for 10 out of the 15 minutes, you would expect the average price top be near the candle's high as well. And that's actually how it is.
(Blue 10:30 candle in the screenshot.)
I think this "average in-candle price" could be a useful thing to know. You can't gather this information from the normal chart (as you would need to go to a lower timeframe). Plus this plot can be smoother than plots of, say, closing price or hl2.
The calculation happens in a lower timeframe which is selected automatically. There is a precision selector which allows you to influence this. By default, at least 10 values are sampled for each candle.
If you have TradingView Premium, the script is able to use second-based intervals to look inside 1m candles. (Tick the corresponding checkbox to enable this.)
How it works: I collect timestamps and hl2 values from the lower timeframe. (I figure hl2 is the best choice here because a close is so arbitrary. If we don't have further information, our guess is the average is simply exactly in the middle of the candle's range.)
Then I throw the last close and current close (from the CHART timeframe) into the mix and calculate an average of the prices we collected weighted by the duration that price was in effect.
tl;dr; It's just math baby
CARNAC Trading Support and Resistance LevelsOverview
The "Carnac Trading Support and Resistance Levels" indicator is a powerful tool designed to help traders identify key support and resistance levels across multiple timeframes. This tool enhances trading strategies by visually marking significant price levels and providing configurable stop-loss and alert features.
Features
Support and Resistance Levels: Automatically calculates and plots support and resistance levels for the following timeframes:
5 minutes (5M)
10 minutes (10M)
15 minutes (15M)
30 minutes (30M)
1 hour (1H)
2 hours (2H)
4 hours (4H)
6 hours (6H)
12 hours (12H)
1 day (1D)
1 week (1W)
1 month (1M)
Configurable Stop-Loss (SL) Levels: Adds a stop-loss line below each support level and above each resistance level with customizable padding (as a percentage).
Visual Labels: Clearly labels support, resistance, and stop-loss levels with the corresponding prices and timeframes for easy identification.
Line Customization:
Support Levels: Green lines with varying thickness based on the timeframe.
Resistance Levels: Red lines with varying thickness based on the timeframe.
Stop-Loss Levels: Gray dotted lines for clear distinction.
Alerts: Alerts trigger when the price gets to a configurable percentage from the support or resistance levels, helping you stay informed about potential buying and selling opportunities.
Visibility Toggling: Easily toggle the visibility of support and resistance levels for each timeframe (default enabled for 2H, 4H, and 1D).
How to Use
Add the Indicator:
Navigate to the TradingView Pine Editor.
Paste the provided Pine Script code and click "Add to Chart."
Configure Inputs:
Lookback Periods: Adjust the lookback periods for each timeframe to suit your analysis needs.
Padding Percentage: Set the padding percentage for the stop-loss levels to define the distance below the support levels and above the resistance levels.
Visibility: Toggle the visibility of the support and resistance levels for each timeframe as needed (default enabled for 2H, 4H, and 1D).
Alert Trigger Distance: Set the alert trigger distance as a percentage to determine when the alerts should be triggered.
Interpret the Plotted Levels:
Green Lines: Indicate support levels for the respective timeframes.
Red Lines: Indicate resistance levels for the respective timeframes.
Gray Dotted Lines: Represent the stop-loss levels below each support level and above each resistance level, with the specified padding.
Labels: Provide clear indications of the price levels and their respective timeframes in white text for visibility.
Identifying Buying and Selling Opportunities:
Buying Opportunities:
Look for the price to approach or bounce off a support level (green line).
Confirm the potential for a reversal by checking if the price is nearing a key support level from multiple timeframes.
Use the stop-loss level (gray dotted line) to set your stop-loss order below the support level to minimize risk.
Selling Opportunities:
Look for the price to approach or get rejected at a resistance level (red line).
Confirm the potential for a reversal by checking if the price is nearing a key resistance level from multiple timeframes.
Use the stop-loss level (gray dotted line) to set your stop-loss order above the resistance level to minimize risk.
Alerts:
Alerts will notify you when the price gets within the specified percentage distance from each support or resistance level.
Use these alerts to stay informed about potential buying and selling opportunities.
True Market Structure {DCAquant}
True Market Structure
Overview
The True Market Structure is a technical analysis tool designed for use across all timeframes. It identifies and visualizes market structure breaks (MSBs) and break of structure (BOS) events, emphasizing interim highs and lows using the "Deroz Wick" system. Unlike many other indicators, this tool does not rely on traditional pivot points, making it a unique addition to any trader's toolkit.
How It Works
The True Market Structure indicator uses a combination of algorithms to detect and highlight significant market structure events. By analyzing price action and identifying key levels, the indicator aids in understanding potential reversal points and trend continuations.
Bull and Bear Market Structures: Differentiates between bullish and bearish market structures, applying distinct color settings for easy visualization.
Customizable Settings: Users can tailor the indicator’s appearance and functionality to their preferences, including toggling lines, labels, and selecting between SWING and INTERIM MS settings.
How our market structure indicator is different
All known market structure indicators work with pivot points. This is a lookback function to find highs and lows within a certain period and then producing market structure.
Our indicator doesn't work like this as the DCAquant True Market Structure finds swing and interim lows and saves it into memory thus giving us the ability to create real market structure breaks and BOS’s.
This is achieved when an MSB or BOS is triggered the script will perform a check through its memory to find previous Interim or swing which ever setting the user has selected.
A saved interim or swing will never change unless it is broken giving you true market structure, this Indicator cannot repaint because it only produces breaks whenever candle is closed.
The next MSB or BOS you see on the chart are the direct function of saved memory points which gives clear indication of true market structure.
Almost 500 lines of code to give you True Market Structure usable on any timeframe.
Key Features
1. Market Structure Breaks (MSBs) and Break of Structure (BOS)
Market Structure Breaks (MSBs): Occur when the price breaks through a previous significant high or low, indicating a potential reversal or continuation of the current trend.
Break of Structure (BOS): Highlights significant breaks in market structure, providing insights into potential trend changes.
2. Visualization Options
Customizable colour settings for both bull and bear market structures, ensuring it integrates with any chart setup.
Options to enable or disable lines and labels for flexible information display.
3. The WICK System
Standard WICK System: Identifies wicks based on standard high/low calculations.
Deroz WICK System: Enhances the standard WICK system by looking back at price history and replacing the standard wick if an even lower or higher wick is found in the subsequent bar.
4. MS Settings
SWING Setting: Sets future MSB events at swing highs/lows, offering a broader market perspective.
INTERIM Setting: Sets future MSB events at interim highs/lows, providing more immediate and frequent market structure updates.
Understanding Market Structure
Market structure is defined by a series of price actions that form recognizable patterns indicating the current trend. Key elements include:
Higher Highs (HH) and Higher Lows (HL): Indicate an uptrend, where each successive high and low is higher than the previous one.
Lower Highs (LH) and Lower Lows (LL): Indicate a downtrend, where each successive high and low is lower than the previous one.
These patterns help traders identify trend direction and potential reversal points. In an uptrend, traders look for higher highs and higher lows to continue, whereas in a downtrend, they look for lower highs and lower lows.
Application in Breakout Trading
Market structure analysis is crucial for breakout trading, where traders seek to capitalize on significant price movements following a break of established price levels.
Uptrend Breakouts: Traders watch for breaks above higher highs as potential entry points for long positions.
Downtrend Breakouts: Traders watch for breaks below lower lows as potential entry points for short positions.
The True Market Structure indicator assists by visually marking these critical levels, simplifying the process of identifying and acting on breakout opportunities.
Visual Representation
Indicator Settings
Standard WICK vs. Deroz WICK System:
Standard WICK
Deroz WICK
SWING MSB
INTERIM MSB
Summary
The True Market Structure indicator provides a clear and detailed view of market structure changes. By highlighting key MSB and BOS events and incorporating advanced wick detection through the Deroz WICK system, this tool can aid in making informed decisions based on a thorough understanding of market dynamics. However DCAquant recommends using this indicator as part of a system.
ALT Trend DetectionALT Trend Detection Indicator
Overview:
The "ALT Trend Detection" indicator is designed to help traders analyze the relationship between Bitcoin's dominance, Bitcoin's price, and the potential impact on altcoin prices. This indicator uses various time frames and average true range (ATR) calculations to detect trends and provide insights into the altcoin market conditions based on Bitcoin's movements.
How It Works:
BTC Dominance and Price Data:
The indicator fetches Bitcoin dominance data (percentage of the total cryptocurrency market cap that Bitcoin represents) and Bitcoin price data using the selected time frame.
It calculates whether Bitcoin dominance and price are trending up, down, or remaining stable based on ATR calculations.
Altcoin Trend Detection:
The indicator then evaluates different scenarios based on the combination of Bitcoin dominance and price movements. These scenarios help predict the potential impact on altcoin prices.
For instance, if Bitcoin dominance is up and Bitcoin price is up, it might indicate a bearish trend for altcoins. Conversely, if Bitcoin dominance is down and Bitcoin price is up, it might indicate a bullish trend for altcoins (altseason).
Table Display:
The indicator displays a table on the chart that summarizes the current conditions for Bitcoin dominance, Bitcoin price, and the expected impact on altcoins. Each cell in the table is color-coded to provide a quick visual representation of the trends.
Usage:
Add the indicator to your TradingView chart.
Customize the time frame, ATR multiplier, table position, table size, and background color as per your preference.
Observe the table displayed on the chart. It shows the current state of Bitcoin dominance, Bitcoin price, and the potential trend for altcoin prices based on predefined scenarios.
Use this information to make informed trading decisions about altcoins. For example, if the table shows "ALT SEASON" in green, it might be a good time to consider investing in altcoins.
By analyzing the interaction between Bitcoin dominance and price, this indicator helps traders identify potential opportunities and risks in the altcoin market.
AlgoBuilder [Trend-Following] | FractalystWhat's the strategy's purpose and functionality?
This strategy is designed for both traders and investors looking to rely on and trade based on historical and backtested data using automation. The main goal is to build profitable trend-following strategies that outperform the underlying asset in terms of returns while minimizing drawdown. For example, as for a benchmark, if the S&P 500 (SPX) has achieved an estimated 10% annual return with a maximum drawdown of -57% over the past 20 years, using this strategy with different entry and exit techniques, users can potentially seek ways to achieve a higher Compound Annual Growth Rate (CAGR) while maintaining a lower maximum drawdown.
Although the strategy can be applied to all markets and timeframes, it is most effective on stocks, indices, future markets, cryptocurrencies, and commodities and JPY currency pairs given their trending behaviors.
In trending market conditions, the strategy employs a combination of moving averages and diverse entry models to identify and capitalize on upward market movements. It integrates market structure-based trailing stop-loss mechanisms across different timeframes and provides exit techniques, including percentage-based and risk-reward (RR) based take profit levels.
Additionally, the strategy has also a feature that includes a built-in probability and sentiment function for traders who want to implement probabilities and market sentiment right into their trading strategies.
Performance summary, weekly, and monthly tables enable quick visualization of performance metrics like net profit, maximum drawdown, compound annual growth rate (CAGR), profit factor, average trade, average risk-reward ratio (RR), and more. This aids optimization to meet specific goals and risk tolerance levels effectively.
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How does the strategy perform for both investors and traders?
The strategy has two main modes, tailored for different market participants: Traders and Investors.
Trading:
1. Trading (1x):
- Designed for traders looking to capitalize on bullish trending markets.
- Utilizes a percentage risk per trade to manage risk and optimize returns.
- Suitable for active trading with a focus on trend-following and risk management.
- (1x) This mode ensures no stacking of positions, allowing for only one running position or trade at a time.
◓: Mode | %: Risk percentage per trade
2. Trading (2x):
Similar to the 1x mode but allows for two pyramiding entries.
This approach enables traders to increase their position size as the trade moves in their favor, potentially enhancing profits during strong bullish trends.
◓: Mode | %: Risk percentage per trade
3. Investing:
- Geared towards investors who aim to capitalize on bullish trending markets without using leverage while mitigating the asset's maximum drawdown.
- Utilizes 100% of the equity to buy, hold, and manage the asset.
- Focuses on long-term growth and capital appreciation by fully investing in the asset during bullish conditions.
- ◓: Mode | %: Risk not applied (In investing mode, the strategy uses 100% of equity to buy the asset)
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What's the purpose of using moving averages in this strategy? What are the underlying calculations?
Using moving averages is a widely-used technique to trade with the trend.
The main purpose of using moving averages in this strategy is to filter out bearish price action and to only take trades when the price is trading ABOVE specified moving averages.
The script uses different types of moving averages with user-adjustable timeframes and periods/lengths, allowing traders to try out different variations to maximize strategy performance and minimize drawdowns.
By applying these calculations, the strategy effectively identifies bullish trends and avoids market conditions that are not conducive to profitable trades.
The MA filter allows traders to choose whether they want a specific moving average above or below another one as their entry condition.
This comparison filter can be turned on (>/<) or off.
For example, you can set the filter so that MA#1 > MA#2, meaning the first moving average must be above the second one before the script looks for entry conditions. This adds an extra layer of trend confirmation, ensuring that trades are only taken in more favorable market conditions.
MA #1: Fast MA | MA #2: Medium MA | MA #3: Slow MA
⍺: MA Period | Σ: MA Timeframe
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What entry modes are used in this strategy? What are the underlying calculations?
The strategy by default uses two different techniques for the entry criteria with user-adjustable left and right bars: Breakout and Fractal.
1. Breakout Entries :
- The strategy looks for pivot high points with a default period of 3.
- It stores the most recent high level in a variable.
- When the price crosses above this most recent level, the strategy checks if all conditions are met and the bar is closed before taking the buy entry.
◧: Pivot high left bars period | ◨: Pivot high right bars period
2. Fractal Entries :
- The strategy looks for pivot low points with a default period of 3.
- When a pivot low is detected, the strategy checks if all conditions are met and the bar is closed before taking the buy entry.
◧: Pivot low left bars period | ◨: Pivot low right bars period
By utilizing these entry modes, the strategy aims to capitalize on bullish price movements while ensuring that the necessary conditions are met to validate the entry points.
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What type of stop-loss identification method are used in this strategy? What are the underlying calculations?
Initial Stop-Loss:
1. ATR Based:
The Average True Range (ATR) is a method used in technical analysis to measure volatility. It is not used to indicate the direction of price but to measure volatility, especially volatility caused by price gaps or limit moves.
Calculation:
- To calculate the ATR, the True Range (TR) first needs to be identified. The TR takes into account the most current period high/low range as well as the previous period close.
The True Range is the largest of the following:
- Current Period High minus Current Period Low
- Absolute Value of Current Period High minus Previous Period Close
- Absolute Value of Current Period Low minus Previous Period Close
- The ATR is then calculated as the moving average of the TR over a specified period. (The default period is 14).
Example - ATR (14) * 1.5
⍺: ATR period | Σ: ATR Multiplier
2. ADR Based:
The Average Day Range (ADR) is an indicator that measures the volatility of an asset by showing the average movement of the price between the high and the low over the last several days.
Calculation:
- To calculate the ADR for a particular day:
- Calculate the average of the high prices over a specified number of days.
- Calculate the average of the low prices over the same number of days.
- Find the difference between these average values.
- The default period for calculating the ADR is 14 days. A shorter period may introduce more noise, while a longer period may be slower to react to new market movements.
Example - ADR (14) * 1.5
⍺: ADR period | Σ: ADR Multiplier
Application in Strategy:
- The strategy calculates the current bar's ADR/ATR with a user-defined period.
- It then multiplies the ADR/ATR by a user-defined multiplier to determine the initial stop-loss level.
By using these methods, the strategy dynamically adjusts the initial stop-loss based on market volatility, helping to protect against adverse price movements while allowing for enough room for trades to develop.
Trailing Stop-Loss:
One of the key elements of this strategy is its ability to detec buyside and sellside liquidity levels across multiple timeframes to trail the stop-loss once the trade is in running profits.
By utilizing this approach, the strategy allows enough room for price to run.
There are two built-in trailing stop-loss (SL) options you can choose from while in a trade:
1. External Trailing Stop-Loss:
- Uses sell-side liquidity to trail your stop-loss, allowing price to consolidate before continuation. This method is less aggressive and provides more room for price fluctuations.
Example - External - Wick below the trailing SL - 12H trailing timeframe
⍺: Exit type | Σ: Trailing stop-loss timeframe
2. Internal Trailing Stop-Loss:
- Uses the most recent swing low with a period of 2 to trail your stop-loss. This method is more aggressive compared to the external trailing stop-loss, as it tightens the stop-loss closer to the current price action.
Example - Internal - Close below the trailing SL - 6H trailing timeframe
⍺: Exit type | Σ: Trailing stop-loss timeframe
Each market behaves differently across various timeframes, and it is essential to test different parameters and optimizations to find out which trailing stop-loss method gives you the desired results and performance.
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What type of break-even and take profit identification methods are used in this strategy? What are the underlying calculations?
For Break-Even:
- You can choose to set a break-even level at which your initial stop-loss moves to the entry price as soon as it hits, and your trailing stop-loss gets activated (if enabled).
- You can select either a percentage (%) or risk-to-reward (RR) based break-even, allowing you to set your break-even level as a percentage amount above the entry price or based on RR.
For TP1 (Take Profit 1):
- You can choose to set a take profit level at which your position gets fully closed or 50% if the TP2 boolean is enabled.
- Similar to break-even, you can select either a percentage (%) or risk-to-reward (RR) based take profit level, allowing you to set your TP1 level as a percentage amount above the entry price or based on RR.
For TP2 (Take Profit 2):
- You can choose to set a take profit level at which your position gets fully closed.
- As with break-even and TP1, you can select either a percentage (%) or risk-to-reward (RR) based take profit level, allowing you to set your TP2 level as a percentage amount above the entry price or based on RR.
The underlying calculations involve determining the price levels at which these actions are triggered. For break-even, it moves the initial stop-loss to the entry price and activate the trailing stop-loss once the break-even level is reached.
For TP1 and TP2, it's specifying the price levels at which the position is partially or fully closed based on the chosen method (percentage or RR) above the entry price.
These calculations are crucial for managing risk and optimizing profitability in the strategy.
⍺: BE/TP type (%/RR) | Σ: how many RR/% above the current price
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What's the ADR filter? What does it do? What are the underlying calculations?
The Average Day Range (ADR) measures the volatility of an asset by showing the average movement of the price between the high and the low over the last several days.
The period of the ADR filter used in this strategy is tied to the same period you've used for your initial stop-loss.
Users can define the minimum ADR they want to be met before the script looks for entry conditions.
ADR Bias Filter:
- Compares the current bar ADR with the ADR (Defined by user):
- If the current ADR is higher, it indicates that volatility has increased compared to ADR (DbU).(⬆)
- If the current ADR is lower, it indicates that volatility has decreased compared to ADR (DbU).(⬇)
Calculations:
1. Calculate ADR:
- Average the high prices over the specified period.
- Average the low prices over the same period.
- Find the difference between these average values in %.
2. Current ADR vs. ADR (DbU):
- Calculate the ADR for the current bar.
- Calculate the ADR (DbU).
- Compare the two values to determine if volatility has increased or decreased.
By using the ADR filter, the strategy ensures that trades are only taken in favorable market conditions where volatility meets the user's defined threshold, thus optimizing entry conditions and potentially improving the overall performance of the strategy.
>: Minimum required ADR for entry | %: Current ADR comparison to ADR of 14 days ago.
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What's the probability filter? What are the underlying calculations?
The probability filter is designed to enhance trade entries by using buyside liquidity and probability analysis to filter out unfavorable conditions.
This filter helps in identifying optimal entry points where the likelihood of a profitable trade is higher.
Calculations:
1. Understanding Swing highs and Swing Lows
Swing High: A Swing High is formed when there is a high with 2 lower highs to the left and right.
Swing Low: A Swing Low is formed when there is a low with 2 higher lows to the left and right.
2. Understanding the purpose and the underlying calculations behind Buyside, Sellside and Equilibrium levels.
3. Understanding probability calculations
1. Upon the formation of a new range, the script waits for the price to reach and tap into equilibrium or the 50% level. Status: "⏸" - Inactive
2. Once equilibrium is tapped into, the equilibrium status becomes activated and it waits for either liquidity side to be hit. Status: "▶" - Active
3. If the buyside liquidity is hit, the script adds to the count of successful buyside liquidity occurrences. Similarly, if the sellside is tapped, it records successful sellside liquidity occurrences.
5. Finally, the number of successful occurrences for each side is divided by the overall count individually to calculate the range probabilities.
Note: The calculations are performed independently for each directional range. A range is considered bearish if the previous breakout was through a sellside liquidity. Conversely, a range is considered bullish if the most recent breakout was through a buyside liquidity.
Example - BSL > 50%
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What's the sentiment Filter? What are the underlying calculations?
Sentiment filter aims to calculate the percentage level of bullish or bearish fluctuations within equally divided price sections, in the latest price range.
Calculations:
This filter calculates the current sentiment by identifying the highest swing high and the lowest swing low, then evenly dividing the distance between them into percentage amounts. If the price is above the 50% mark, it indicates bullishness, whereas if it's below 50%, it suggests bearishness.
Sentiment Bias Identification:
Bullish Bias: The current price is trading above the 50% daily range.
Bearish Bias: The current price is trading below the 50% daily range.
Example - Sentiment Enabled | Bullish degree above 50% | Bullish sentimental bias
>: Minimum required sentiment for entry | %: Current sentimental degree in a (Bullish/Bearish) sentimental bias
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What's the range length Filter? What are the underlying calculations?
The range length filter identifies the price distance between buyside and sellside liquidity levels in percentage terms. When enabled, the script only looks for entries when the minimum range length is met. This helps ensure that trades are taken in markets with sufficient price movement.
Calculations:
Range Length (%) = ( ( Buyside Level − Sellside Level ) / Current Price ) ×100
Range Bias Identification:
Bullish Bias: The current range price has broken above the previous external swing high.
Bearish Bias: The current range price has broken below the previous external swing low.
Example - Range length filter is enabled | Range must be above 5% | Price must be in a bearish range
>: Minimum required range length for entry | %: Current range length percentage in a (Bullish/Bearish) range
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What's the day filter Filter, what does it do?
The day filter allows users to customize the session time and choose the specific days they want to include in the strategy session. This helps traders tailor their strategies to particular trading sessions or days of the week when they believe the market conditions are more favorable for their trading style.
Customize Session Time:
Users can define the start and end times for the trading session.
This allows the strategy to only consider trades within the specified time window, focusing on periods of higher market activity or preferred trading hours.
Select Days:
Users can select which days of the week to include in the strategy.
This feature is useful for excluding days with historically lower volatility or unfavorable trading conditions (e.g., Mondays or Fridays).
Benefits:
Focus on Optimal Trading Periods:
By customizing session times and days, traders can focus on periods when the market is more likely to present profitable opportunities.
Avoid Unfavorable Conditions:
Excluding specific days or times can help avoid trading during periods of low liquidity or high unpredictability, such as major news events or holidays.
Increased Flexibility: The filter provides increased flexibility, allowing traders to adapt the strategy to their specific needs and preferences.
Example - Day filter | Session Filter
θ: Session time | Exchange time-zone
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What tables are available in this script?
Table Type:
- Summary: Provides a general overview, displaying key performance parameters such as Net Profit, Profit Factor, Max Drawdown, Average Trade, Closed Trades, Compound Annual Growth Rate (CAGR), MAR and more.
CAGR: It calculates the 'Compound Annual Growth Rate' first and last taken trades on your chart. The CAGR is a notional, annualized growth rate that assumes all profits are reinvested. It only takes into account the prices of the two end points — not drawdowns, so it does not calculate risk. It can be used as a yardstick to compare the performance of two strategies. Since it annualizes values, it requires a minimum 4H timeframe to display the CAGR value. annualizing returns over smaller periods of times doesn't produce very meaningful figures.
MAR: Measure of return adjusted for risk: CAGR divided by Max Drawdown. Indicates how comfortable the system might be to trade. Higher than 0.5 is ideal, 1.0 and above is very good, and anything above 3.0 should be considered suspicious and you need to make sure the total number of trades are high enough by running a Deep Backtest in strategy tester. (available for TradingView Premium users.)
Avg Trade: The sum of money gained or lost by the average trade generated by a strategy. Calculated by dividing the Net Profit by the overall number of closed trades. An important value since it must be large enough to cover the commission and slippage costs of trading the strategy and still bring a profit.
MaxDD: Displays the largest drawdown of losses, i.e., the maximum possible loss that the strategy could have incurred among all of the trades it has made. This value is calculated separately for every bar that the strategy spends with an open position.
Profit Factor: The amount of money a trading strategy made for every unit of money it lost (in the selected currency). This value is calculated by dividing gross profits by gross losses.
Avg RR: This is calculated by dividing the average winning trade by the average losing trade. This field is not a very meaningful value by itself because it does not take into account the ratio of the number of winning vs losing trades, and strategies can have different approaches to profitability. A strategy may trade at every possibility in order to capture many small profits, yet have an average losing trade greater than the average winning trade. The higher this value is, the better, but it should be considered together with the percentage of winning trades and the net profit.
Winrate: The percentage of winning trades generated by a strategy. Calculated by dividing the number of winning trades by the total number of closed trades generated by a strategy. Percent profitable is not a very reliable measure by itself. A strategy could have many small winning trades, making the percent profitable high with a small average winning trade, or a few big winning trades accounting for a low percent profitable and a big average winning trade. Most trend-following successful strategies have a percent profitability of 15-40% but are profitable due to risk management control.
BE Trades: Number of break-even trades, excluding commission/slippage.
Losing Trades: The total number of losing trades generated by the strategy.
Winning Trades: The total number of winning trades generated by the strategy.
Total Trades: Total number of taken traders visible your charts.
Net Profit: The overall profit or loss (in the selected currency) achieved by the trading strategy in the test period. The value is the sum of all values from the Profit column (on the List of Trades tab), taking into account the sign.
- Monthly: Displays performance data on a month-by-month basis, allowing users to analyze performance trends over each month.
- Weekly: Displays performance data on a week-by-week basis, helping users to understand weekly performance variations.
- OFF: Hides the performance table.
Labels:
- OFF: Hides labels in the performance table.
- PnL: Shows the profit and loss of each trade individually, providing detailed insights into the performance of each trade.
- Range: Shows the range length and Average Day Range (ADR), offering additional context about market conditions during each trade.
Profit Color:
- Allows users to set the color for representing profit in the performance table, helping to quickly distinguish profitable periods.
Loss Color:
- Allows users to set the color for representing loss in the performance table, helping to quickly identify loss-making periods.
These customizable tables provide traders with flexible and detailed performance analysis, aiding in better strategy evaluation and optimization.
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User-input styles and customizations:
To facilitate studying historical data, all conditions and rules can be applied to your charts. By plotting background colors on your charts, you'll be able to identify what worked and what didn't in certain market conditions.
Please note that all background colors in the style are disabled by default to enhance visualization.
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How to Use This Algobuilder to Create a Profitable Edge and System:
Choose Your Strategy mode:
- Decide whether you are creating an investing strategy or a trading strategy.
Select a Market:
- Choose a one-sided market such as stocks, indices, or cryptocurrencies.
Historical Data:
- Ensure the historical data covers at least 10 years of price action for robust backtesting.
Timeframe Selection:
- Choose the timeframe you are comfortable trading with. It is strongly recommended to use a timeframe above 15 minutes to minimize the impact of commissions on your profits.
Set Commission and Slippage:
- Properly set the commission and slippage in the strategy properties according to your broker or prop firm specifications.
Parameter Optimization:
- Use trial and error to test different parameters until you find the performance results you are looking for in the summary table or, preferably, through deep backtesting using the strategy tester.
Trade Count:
- Ensure the number of trades is 100 or more; the higher, the better for statistical significance.
Positive Average Trade:
- Make sure the average trade value is above zero.
(An important value since it must be large enough to cover the commission and slippage costs of trading the strategy and still bring a profit.)
Performance Metrics:
- Look for a high profit factor, MAR (Mar Ratio), CAGR (Compound Annual Growth Rate), and net profit with minimum drawdown. Ideally, aim for a drawdown under 20-30%, depending on your risk tolerance.
Refinement and Optimization:
- Try out different markets and timeframes.
- Continue working on refining your edge using the available filters and components to further optimize your strategy.
Automation:
- Once you’re confident in your strategy, you can use the automation section to connect the algorithm to your broker or prop firm.
- Trade a fully automated and backtested trading strategy, allowing for hands-free execution and management.
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What makes this strategy original?
1. Incorporating direct integration of probabilities into the strategy.
2. Leveraging market sentiment to construct a profitable approach.
3. Utilizing built-in market structure-based trailing stop-loss mechanisms across various timeframes.
4. Offering both investing and trading strategies, facilitating optimization from different perspectives.
5. Automation for efficient execution.
6. Providing a summary table for instant access to key parameters of the strategy.
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How to use automation?
For Traders:
1. Ensure the strategy parameters are properly set based on your optimized parameters.
2. Enter your PineConnector License ID in the designated field.
3. Specify the desired risk level.
4. Provide the Metatrader symbol.
5. Check for chart updates to ensure the automation table appears on the top right corner, displaying your License ID, risk, and symbol.
6. Set up an alert with the strategy selected as Condition and the Message as {{strategy.order.alert_message}}.
7. Activate the Webhook URL in the Notifications section, setting it as the official PineConnector webhook address.
8. Double-check all settings on PineConnector to ensure the connection is successful.
9. Create the alert for entry/exit automation.
For Investors:
1. Ensure the strategy parameters are properly set based on your optimized parameters.
2. Choose "Investing" in the user-input settings.
3. Create an alert with a specified name.
4. Customize the notifications tab to receive alerts via email.
5. Buying/selling alerts will be triggered instantly upon entry or exit order execution.
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Strategy Properties
This script backtest is done on 4H COINBASE:BTCUSD , using the following backtesting properties:
Balance: $5000
Order Size: 10% of the equity
Risk % per trade: 1%
Commission: 0.04% (Default commission percentage according to TradingView competitions rules)
Slippage: 75 ticks
Pyramiding: 2
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Terms and Conditions | Disclaimer
Our charting tools are provided for informational and educational purposes only and should not be construed as financial, investment, or trading advice. They are not intended to forecast market movements or offer specific recommendations. Users should understand that past performance does not guarantee future results and should not base financial decisions solely on historical data.
Built-in components, features, and functionalities of our charting tools are the intellectual property of @Fractalyst Unauthorized use, reproduction, or distribution of these proprietary elements is prohibited.
By continuing to use our charting tools, the user acknowledges and accepts the Terms and Conditions outlined in this legal disclaimer and agrees to respect our intellectual property rights and comply with all applicable laws and regulations.
Pvsra Candles Boxes and VolumeIntroduction:
The PVSRA Candles and Liquidity Zones Indicator is a indicator created to support your trading analysis on TradingView. This indicator integrates PVSRA candle analysis, liquidity zone identification, gap detection, and volume visualization, providing a detailed view of market dynamics.
Key Features:
PVSRA Candles: The indicator detects PVSRA candle patterns, which are based on price, volume, and support/resistance analysis. These candles illustrate the interaction between price movements and volume activity, offering insights into market behavior.
Liquidity Zones: The indicator marks liquidity zones, representing areas of unrecovered liquidity on both PVSRA candles and regular candles. These zones can help you identify key price levels and areas of interest for price action.
Gap Detection: The indicator automatically identifies and highlights price gaps on the chart. These gaps can indicate strong market sentiment and potential areas for price retracement or continuation.
Custom PVSRA Zones: You can plot custom PVSRA zones from higher timeframes onto the current chart, enabling the analysis of key levels and trends from multiple timeframes for a broader market perspective.
Midpoints with Price Labels: Each zone, whether it's a PVSRA zone or a custom zone, includes midpoints and price labels, aiding in the quick identification of important levels within each zone.
Volume Visualization: The indicator offers an option to display the volume of PVSRA candles directly on the PVSRA candle zones, providing additional context to understand volume activity within each zone.
Customization Options: Extensive customization options allow you to tailor the indicator to your preferences, including color schemes, wick inclusion, volume visualization, and other parameters.
Usage Instructions:
Apply the indicator to your TradingView chart.
Customize the indicator's settings based on your preferences, such as color schemes, wick inclusion, volume visualization, gap detection, and other parameters.
Observe the PVSRA candles, liquidity zones, gaps, and custom zones plotted on the chart.
Analyze the interactions between price, volume, gaps, and liquidity zones to identify potential trade setups.
Combine the insights from PVSRA candles, liquidity zones, gap detection, and volume visualization with your existing trading strategy and risk management techniques for informed decision-making.
Conclusion:
The PVSRA Candles and Liquidity Zones Indicator provides traders with a comprehensive toolset for analyzing PVSRA candle patterns, liquidity zones, gap detection, and volume visualization. By utilizing this indicator's features and customization options, you can enrich your trading analysis.
Please ensure to thoroughly test the indicator and its functionality within your trading strategy before applying it to live trading scenarios. Happy trading!
Open Interest liquidation map [Ox_kali]This script is inspired by @LeviathanCapital work on aggregating Open Interest , as presented in the Open Interest Suite Aggregated script. This script aims to provide a liquidation map of Open Interest by identifying significant anomalies across multiple trading platforms. By integrating data from Binance, BitMEX, and Kraken, this script tries to offer a comprehensive and detailed view of Open Interest movements and attempts to define zones of interest.
Key Points
1. Multiple Data Sources : The script retrieves Open Interest data from several trading platforms, including Binance (USDT, USD, BUSD), BitMEX (USD, USDT), and Kraken (USD).
2. Anomaly Detection : Utilizes a simple moving average (SMA) to calculate the average size of Open Interest candles and identify anomalies based on a user-specified size factor.
3. Background Coloring : Offers an option to color the background of the charts based on detected anomalies, allowing for clear visualization of significant movements.
4. Dynamic Support and Resistance Zones : Defines and dynamically updates support and resistance zones based on Open Interest anomalies.
5. Alerts : Configures alerts to notify the user when an Open Interest anomaly is detected.
Trading Utility
This script can be useful for monitoring significant changes in Open Interest and potential liquidation zones across multiple platforms. The main trading applications include:
1. Identifying Liquidation Points : By detecting Open Interest anomalies, it is possible to identify potential liquidation points where significant price movements might occur.
2. Multi-Platform Analysis : By aggregating Open Interest data from multiple platforms, a more comprehensive market overview is obtained.
3. Detecting Support and Resistance Zones : Dynamic support and resistance zones help identify key price levels where trend reversals might occur.
4. Customized Alerts: Anomaly alerts allow for automated responses to market changes.
Conclusion
The “Open Interest liquidation map ” script is an experimental tool for analyzing Open Interest across multiple trading platforms. Inspired by Leviathan’s work, this script attempts to identify liquidation and interest zones. This is an experimental version, and I welcome any comments and feedback for improvement.
Please note that the Open Interest liquidation map is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
