Custom Range Creator + Normalized Oscillators (Obv, Rsi, Mfi) Hello Traders!
Custom Range Creator is a specialized trading tool designed for traders who incorporate range analysis into their trading strategy.
Once you set the desired number of past candles or provide a manual input, the indicator will automatically draw a range for you. This unique feature allows you to customize the range based on the highest and lowest points within a specified number of bars, known as the "Dynamic Range." Furthermore, you have the flexibility to define up to three additional ranges manually using custom inputs. The lines and labels associated with these ranges can be fully customized in terms of style, color, and width to align with your personal preferences.
Dynamic Range Capabilities:
The indicator automatically generates a range by default, identifying the highest and lowest points within the last 200 bars. However, you have the ability to define the number of bars back by adjusting the setting in the menu. Moreover you can define the range based on either the wicks or the bodies of the candles.
The range includes the following components:
☀ Range High: The highest price point within the selected number of bars in the past
☀ Range Low: The lowest price point within the selected number of bars in the past
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, effectively identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
By incorporating these critical levels within a price range, our Dynamic Range provides you with a comprehensive view of how the market evolves, enabling you to make more informed trading decisions.
Manual Ranges Capabilities:
In addition to the Dynamic Range, you can manually define up to three more ranges. By specifying your desired high and low price values as inputs, the system automatically draws the range based on your inputs. Once drawn, you can further adjust the range using the bar offset option, which allows you to shift the entire range backward or forward by a specified number of bars.
Each manually defined range includes the following components:
☀ Range High: Your user-defined highest price point
☀ Range Low: Your user-defined lowest price point
☀ Range Mid-Point: The calculated middle value between the Range High and Range Low
☀ First Quartile (Q1): The midpoint between the Range Low and the Range Mid-Point, identifying the 25% level within the range
☀ Third Quartile (Q3): The midpoint between the Range Mid-Point and the Range High, identifying the 75% level within the range
This allows you to precisely define your desired price range and visually represent it on the chart. The customizable manual ranges provide you with a powerful tool for analyzing price dynamics and identifying potential support and resistance levels.
Both Dynamic Range and Manual Ranges Capabilities:
a) Timeframe-Adaptive: This indicator dynamically adjusts to your selected timeframe. Whether you are a day trader or a long-term investor, this tool adapts to meet your needs.
b) Complete Customization: You have the flexibility to customize every aspect of "Custom Range Indicator". You can modify the color, style, and width of each of the five lines to seamlessly integrate them into your chart setup. Choose from various line styles, including solid, dashed, or dotted, and select colors that suit your visual preferences. Additionally, you can customize the color and text of the labels. Additionally, you can utilize the bar offset option to fine-tune the placement of the range within your analysis.
c) Hide Lines and Labels: You have the option to hide each line or label of the range individually, or hide the entire range with labels or without labels. This customization feature allows you to focus on specific aspects of the chart and declutter the visual representation of the ranges when needed.
Normalized Oscillators
Normalization is a process applied in data handling and statistics, and in the context of trading indicators, it can be incredibly useful. Trading indicators such as Volume, the Relative Strength Index (RSI), the Money Flow Index (MFI), and On Balance Volume (OBV), often vary in their range and scale.
Normalization adjusts these values to fit within a specific range, making different indicators directly comparable and aiding in the interpretation of their relationship and impact on price action. This can offer additional insights for traders, making it easier to identify trends, patterns, and potential trading signals across different indicators.
This indicator offers a selection of three oscillators to normalize and Volume Data:
☀Volume: The amount of a particular asset that is traded within a particular period.
☀Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in a market.
☀Money Flow Index (MFI): A momentum indicator that uses price and volume data to identify overbought or oversold signals in an asset.
☀On Balance Volume (OBV): A technical trading momentum indicator that uses volume flow to predict changes in price. It does this by cumulatively adding volume on days when the price increases, and subtracting volume on days when the price decreases.
This script also offers aesthetic customizations for the plot, which can enhance readability and visual appeal:
✔"Plot Color": This input lets users select the color of the plotted line on the chart, allowing for personalization and better visual differentiation when multiple indicators are used.
✔"Plot Width": Users can also adjust the thickness of the plotted line, enhancing visibility based on individual preference or screen resolution.
Why is useful the Normalization?
Normalization plays a crucial role in trading as it helps bring together diverse sets of information to support more informed decision-making. For instance, observing the correlation between the price chart and oscillators like On Balance Volume (OBV) near range levels can provide valuable insights.
Consider this example using a daily (1D) Ethereum (ETH) chart:
We observe that the price is at a Range Quarter, making a higher high while the OBV makes a higher low. This scenario presents a significant degree of confluence. The price is at a critical range level and there is a bearish divergence between the OBV and the price. Such confluence often indicates a potential shift in market dynamics, and as observed, the price trends lower subsequently.
Below is the same scenario represented on a linear chart, providing a clearer visualization:
Normalization enables us to make these comparisons more accurately, ultimately leading to more reliable trading signals and better trading outcomes. By adjusting the scale of various indicators to a standard range, traders can directly compare and correlate them to price action, making it easier to spot trends, divergences, and other key market patterns.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Obvdivergence
Adjusted OBV with Cross & DivergenceOBV is a technical indicator used to observe changes in volume. Traditional OBV calculate all historical volume, it makes the OBV being usually higher than 0.
What I think of this is that calculating volume for a period of time is more useful than all historical volume.
So I made some adjustments to the OBV Period, only calculating the volume from the past 120 days.
Why It's 120 days?
Because I backtested COINBASE:BTCUSDT, it has better performance.
In addition, I also set up MA12 and MA30, which is the MA OF OBV. What it does is to provide entry signal for trading.
This is what you can use this indicator(see Chart):
1. OBV Divergence(Top divergence = bearish, Bottom divergence = bullish)
2. Observe the OBV is in Uptrend or Downtrend(Uptrend = bullish, Downtrend = bearish)
3. The crossing of two MA12 and MA30 can be used as an entry signal(Golden cross = bullish, Death Cross = bearish)
4. Use Deduction ball to see OBV goes up or down in the next few candles
How to know if OBV has Divergence?
Price Higher + Lower OBV = Top divergence
Price Lower + Higher OBV = Bottom divergence
How to see if OBV is in Uptrend or Downtrend?
If OBV is above MA12/MA30, it's in uptrend, if OBV is below MA12/MA30, it's downtrend.(See chart)
What is Deduction ball?
It's used to compare to the volume 120 days ago, this can help to see if OBV goes up or down in the next few candle.
Why use MA12/MA30 with 120 days volume?
Because I backtested COINBASE: BTCUSDT, and found that it has higher winning rate.
中文說明（Chinese Explanation）：
OBV是用來觀察成交量變化的技術指標。 傳統的OBV計算所有的歷史成交量，使得OBV經常為正。
我的想法是，計算一段時間的交易量比所有歷史交易量更有用。
所以我對 OBV 時間長短做了一些調整，只計算過去 120 天的交易量。
為什麼是120天？
因為我回測了COINBASE:BTCUSDT，它的性能更好。
另外，我還設置了MA12和MA30，也就是OBV的簡單移動平均。 它的作用是為交易提供入場信號。
這是您可以使用該指標的內容（見圖表）：
1. OBV背離（頂部背離=看跌，底部背離=看漲）
2.觀察OBV處於上升趨勢還是下降趨勢（上升趨勢=看漲，下降趨勢=看跌）
3.兩條MA12和MA30的交叉可以作為入場信號（黃金交叉=看漲，死亡交叉=看跌）
4. 使用抵扣球查看 OBV 在接下來的幾根蠟燭中會上升還是下降
如何知道OBV是否有背離？
價格更高 + 更低的 OBV = 頂部背離
價格更低 + 更高 OBV = 底部背離
如何查看 OBV 處於上升趨勢還是下降趨勢？
如果 OBV 高於 MA12/MA30，則處於上升趨勢，如果 OBV 低於 MA12/MA30，則處於下降趨勢。（見圖表）
什麼是抵扣球？
它用於與 120 天前的成交量進行比較，這有助於查看 OBV 在接下來的幾根蠟燭中是上漲還是下跌。
為什麼使用MA12/MA30 與120長度的成交量？
因為我回測了COINBASE: BTCUSDT，發現它的勝率更高。
Strength of Divergence Across Multiple IndicatorsOverview:
One-stop shop for all your divergence needs, including:
(1) A single metric for divergence strength across multiple indicators.
(2) Labels that make it easy to spot where the truly strong divergence is by showing the overall divergence strength value along with the number of divergent indicators. Hovering over the label shows a breakdown of each divergent indicator and its individual divergence strength value.
(3) Fully customizable, including inputs for pivot lengths, divergence types, and weights for every component of the divergence strength calculation. This allows you to quickly and easily optimize the output for any chart. Don't worry, the default settings will have you covered if you're not interested in what's going on under the hood.
The Divergence Strength Calculation:
The total divergence strength value is the sum of the divergence strengths of all indicators for which divergence was detected at a given bar. Each indicator's individual divergence strength is comprised of two basic components: (1) |ΔPrice| - the magnitude of the change in price over the divergence period (pivot-to-pivot), and (2) |ΔIndicator| - the magnitude of the change in indicator value over the divergence period.
Because different indicators' scales and volatility can vary greatly, the Δ values are expressed in terms of standard deviation to ensure that the values are meaningful and equitable across all indicators and assets/instruments/currency pairs, etc:
|ΔIndicator| = |indicator_value_1 - indicator_value_2| / 2 * StDev(indicator_series,100)
Calculation Weights:
All components of the calculation are weighted and can be modified on the Inputs page in settings (weights are simply multipliers). For example, if you think hidden divergence should carry less weight than regular divergence, you can assign it a lesser weight. Or if you think RSI divergence is worth more than OBV divergence, you can adjust their weights accordingly. List of weights:
Regular divergence weight - default = 1
Hidden divergence weight - default = 1
ΔPrice weight - default = 0.5 (multiplied by the ΔPrice component)
ΔIndicator weight - default = 1.5 (multiplied by the ΔIndicator component)
RSI weight - default = 1.1
OBV weight - default = 0.8
MACD weight - default = 0.9
STOCH weight - default = 0.9
Development for additional indicators is ongoing, as is research into the optimal weight configuration(s).
Other Inputs:
Pivot lengths - specify the number of bars before and after each pivot high/low to consider it a valid candidate for divergence.
Lookback bars and Lookback pivots - specify the number of bars or the number of pivots to look back across.
Price sources - specify separate price sources for bullish and bearish divergence
Display settings - specify how lines and labels should display, including which divergence strength values should show the largest labels. Include/exclude specific divergence types and indicators.
Please report any bugs, or let me know if you have any enhancement suggestions or requests for additional indicators.
@reees
BankNifty - OBVThis script tries to draw OBV for BankNifty using Futures Volume along with Average OBV. For Nifty50 just change the Futures Volume symbol in settings. Look at devations in Price vs OBV or Average OBV breakout.
NSE:NIFTY
NSE:BANKNIFTY
On Balance Volume Disparity IndicatorThe On Balance Volume Disparity Indicator was created by Phillip C. Holt (Stocks & Commodities V. 14:6 (265-269)). This converts the classic OBV indicator into Bollinger Bands and calculates the percentage of where the value lies within the Bollinger Bands. Buy when the obvdi rises above its signal line and sell when it falls below the signal line.
This was a special request so let me know what other indicators you would like me to write scripts for!
On Balance Volume ReflexThe On Balance Volume Reflex Indicator was developed by Fred Purifoy (Stocks & Commodities V 6:4 142-144) and it is similar in calculation to the On Balance Volume indicator but uses a lookback period for the change comparisons. Buy when the OVR is above the signal and sell when it falls below the signal.
I have included my On Balance Volume Modified Indicator to highlight the differences between both indicators.
Let me know if you would like to see me write scripts for more indicators!
On Balance Volume ModifiedHere is a smoothed version of the classic OBV indicator with a signal line. You can use it to look for signal line crossovers and divergences. The signal line is a 10-day EMA of the OBVM line. Typically, the signal line can vary from 10 to 50.
This was just published by Vitali Apirine in the latest issue of Stocks & Commodities (April 2020) p22-25
Please let me know if you want me to publish any other indicators or if you have any questions!
[CryptoWho] Multi DivergencesThis script looks for divergences on up to six indicators, sums them up and draw a histogram below the chart.
You have several options to customize the output:
1. indicators: RSI, Stoch RSI, MACD, CCI, OBV, WaveTrend (LazyBear)
2. Divergences: Regular, hidden, both
3. Lookback period for divergences
BITSTAMP:BTCUSD
