CCI based support and resistance strategy
WARNING:
Commissions and slippage has not been considered! Don’t take it easy adding commissions and slippage could turns a fake-profitable strategy to a real disaster.
We consider account size as 10k and we enter 1000 for each trade.
Less than 100 trades is too small sample community and it’s not reliable, Also the performance of the past do not guarantee future performance. This result was handpicked by author and will differ by other timeframes, instruments and settings.
*PLEASE SHARE YOUR SETTINGS THAT WORK WITH THE COMMUNITY.
Introduction:
The CCI-based dynamic support and resistance is a "Bands and Channels" kind of indicator consisting an upper and lower band. This is a strategy which uses CCI-based (Made by me) indicator to execute trades.
SL and TP are calculated based on max ATR during last selected time period. You can edit strategy settings using "Ksl", "Ktp" and the other button for time period. “KSL” and “KTP” are 2.5 and 5 by default.
Bands are calculated regarding CCI previous high and low pivot. CCI length, right pivot length and left pivot length are 50.
A dynamic support and resistance has been calculated using last upper-cci minus a buffer and last lower-cci plus the buffer. The buffer is 10.
If "Trend matter?" button is on you can detect trend by color of the upper and lower line. Green is bullish and red is bearish! "Trend matter?" is on.
The "show mid?" button makes mid line visible, which is average of upper and lower lines, visible. The button is not active by default.
Reaction to the support could be a buy signal while a reaction to the resistance could interpreted as a sell signal.
How this strategy work?
Donald Lambert, a technical analyst, created the CCI, or Commodity Channel Index, which he first published in 1980. CCI is calculated regarding CCI can be used both as trend-detector or an oscillator. As an oscillator most traders believe in static predefined levels. Overbought and oversold candles which are clear in the chart could be used as sell and buy signals.
During my trading career I’ve noticed that there might be some reversal points for the CCI. I believe CCI could have to potential to reverse more from lately reversal point. Of course, just like other trading strategies we are talking about probabilities. We do not expect a win trade each time.
On price chart
Now this the question! What price should the instrument reach that CCI turns to be equal to our reversing aim for CCI? Imagine we have found last important bearish reversal of CCI in 200. Now, if we need the CCI to be 200 what price should we wait for?
How to calculate?
This is the CCI formula:
CCI = (Typical Price - SMA of TP) / (0.015 x Mean Deviation)
Where, Typical Price (TP) = (High + Low + Close)/3
For probable reversing points, high and low pivots of 50 bars have been used.
So we do have an Upper CCI and a Lower CCI. They are valid until the next pivot is available.
By relocating factors in CCI formula you can reach the “Typical Price”.
“
Typical Price = CCI (0.015 * Mean Deviation) + SMA of TP
So we could have a Support or Resistance by replacing CCI with Upper and Lower CCI.
A buy signal is valid if the trend is bullish (or “trend matter” is off) and lowest low of last 2 candles is lower than support and close is greater than both support and open.
A Sell signal is produced in opposite situation.
There are 2+1 options for trend!
Trend matter box is on by default, which means we’ll just open trades in direction of the trend. It’s available to turn it off.
Other 2 options are cross and slope. Cross calculated by comparing fast SMA and slow SMA. The slope one differentiate slow SMA to last “n” one.
Considering last day and today highest ATR as the ATR to calculating SL and TP is our unique technique.
Oscillators
Instant RSI (IRSI)
Instant RSI is tailored for users seeking an effective RSI indicator for charts with limited historical data, such as new symbols or very high time frame charts. Its distinctiveness lies in employing a Chebyshev filter, an innovative approach that allows the RSI to initiate calculations with just two data points. The Chebyshev filter, traditionally used in signal processing, helps in smoothing data while minimizing lag, a critical aspect in fast-moving financial markets.
Key Features:
Chebyshev Filter Integration: The Chebyshev filter is fine-tuned to mimic a 14-period RMA's behavior, enhancing the RSI's responsiveness and accuracy with minimal data.
Customizable RSI and MA Settings: Users can modify the RSI's source, length, ripple effect, and style. An optional moving average overlay, also based on Chebyshev filtering, tuned to mimic an EMA set to 14.
Divergence Detection: I have also included the ability to adjust the divergence settings to allow for more flexibility over the built in RSI.
The script operates by applying the Chebyshev filter to the price movement's up and down components, forming the basis of the RSI calculation. When the moving average feature is activated, it further processes the RSI value through the Chebyshev filter for additional smoothing. This dual application of the Chebyshev filter is central to the script's design, offering a unique solution for situations where traditional RSI calculations might be less reliable due to data scarcity.
The divergence detection feature enhances the script's utility by signaling potential trend reversals, critical for strategic decision-making in trading. These features are visually represented on the chart, ensuring that users can easily interpret and react to the indicators.
In general this indicator should produce the exact same output as the built in RSI. This indicator is specifically designed to be used in conditions where the built in RSI will not work due to limited data.
In summary, the "Instant RSI" script is a practical option for those dealing with limited data scenarios, offering a unique blend of Chebyshev filter application for more responsive market analysis.
Smart Money Oscillator [ChartPrime]The "Smart Money Oscillator " is a premium and discount zone oscillator with BOS and CHoCH built in for further analysis of price action. This indicator works by first determining the the premium and discount zones by using pivot points and high/lows. The top of this oscillator represents the current premium zone while the bottom half of this oscillator represents the discount zone. This oscillator functionally works like a stochastic oscillator with more sophisticated upper and lower bounds generated using smart money concept theories. We have included a moving average to allow the user to visualize the currant momentum in the oscillator. Another key feature we have included lagging divergences to help traders visualize potential reversal conditions.
Understanding the concepts of Premium and Discount zones, as well as Break of Structure (BoS) and Change of Character (CHoCH), is crucial for traders using the Smart Money Oscillator. These concepts are rooted in market structure analysis, which involves studying price levels and movements.
Premium Zone is where the price is considered to be relatively high or 'overbought'. In this zone, prices have risen significantly and may indicate that the asset is becoming overvalued, potentially leading to a reversal or slowdown in the upward trend.
The Discount Zone represents a 'discount' or 'oversold' area. Here, prices have fallen substantially, suggesting that the asset might be undervalued. This could be an indicator of a potential upward reversal or a pause in the downward trend.
Break of Structure (BoS) is about the continuation of a trend. In a bullish trend, a BoS is identified by the break of a recent higher high. In a bearish trend, it's the break of a recent Lower Low. BoS indicates that the trend is strong and likely to continue in its current direction. It's a sign of strength in the prevailing trend, whether up or down.
Change of Character (CHoCH) is an indication of a potential end to a trend. It occurs when there's a significant change in the market's behavior, contradicting the current trend. For example, in an uptrend characterized by higher highs and higher lows, a CHoCH may occur if a new high is formed but then is followed by an impulsive move downwards. This suggests that the bullish trend may be weakening and a bearish reversal could be imminent. CHoCH is essentially a sign of trend exhaustion and potential reversal.
With each consecutive BoS, the signal line of the oscillator will deepen in color. This allows you to visually see the strength of the current trend. The maximum strength of the trend is found by keeping track of the maximum number of consecutive BoS's within a window of 10. This calculation excludes periods without any BoS's to allow for a more stable max.
Quick Update is a feature that implements a more aggressive algorithm to update the highs and lows. Instead of updating the pivot points exclusively to update the range levels, it will attempt to use the current historical highs/lows to update the bounds. This results in a more responsive range at the cost of stability. There are pros and cons for both settings. With Quick Update disabled, the indicator will allow for strong reversals to register without the indicator maxing out. With Quick Update enabled, the indicator will show shorter term extremes with the risk of the signal being pinned to the extremities during strong trends or large movements. With Quick Update disabled, the oscillator prioritizes stability, using a more historical perspective to set its bounds. When Quick Update is enabled, the oscillator becomes more responsive, adjusting its bounds rapidly to reflect the latest market movements.
The Scale Offset feature allows the indicator to break the boundaries of the oscillator. This can be useful when the market is breaking highs or lows allowing the user to identify extremities in price. With Scale Offset disabled the oscillator will always remain inside of the boundaries because the extremities will be updated instantly. When this feature is enabled it will update the boundaries one step behind instead of updating it instantly. This allows the user to more easily see overbought and oversold conditions at the cost of incurring a single bar lag to the boundaries. Generally this is a good idea as this behavior makes the oscillator more sensitive to recent price spikes or drops, reflecting sudden market movements more accurately. It accentuates the extremities of the market conditions, potentially offering a more aggressive analysis. The main trade-off with the Scale Offset feature is between sensitivity and potential overreaction. It offers a more immediate and exaggerated reflection of market conditions but might also lead to misinterpretations in certain scenarios, especially in highly volatile markets.
Divergence is used to predict potential trend reversals. It occurs when the price of an asset and the reading of an oscillator move in opposite directions. This discrepancy can signal a weakening of the current trend and possibly indicate a potential reversal.
Divergence doesn't always lead to a trend reversal, but it's a warning sign that the current trend might be weakening. Divergence can sometimes give false signals, particularly in strongly trending markets where the oscillator may remain in overbought or oversold conditions for extended periods. The lagging nature of using pivot points to calculate divergences means that all divergences are limited by the pivot look forward input. The upside of using a longer look forward is that the divergences will be more accurate. The obvious con here is that it will be more delayed and might be useless by the time it appears. Its recommended to use the built in divergences as a way to learn how these are formed so you can make your own in real time.
By default, the oscillator uses a smoothing of 3 to allow for a more price like behavior while still being rather smooth compared to raw price data. Conversely, you can increase this value to make this indicator behave smoother. Something to keep in mind is that the amount of delay from real time is equal to half of the smoothing period.
We have included a verity of alerts in this indicator. Here is a list of all of the available alerts: Bullish BOS, Bearish BOS, Bullish CHoCH, Bearish CHoCH, Bullish Divergence, Hidden Bullish Divergence, Bearish Divergence, Hidden Bearish Divergence, Cross Over Average, Cross Under Average.
Below are all of the inputs and their tooltips to get you started:
Settings:
Smoothing: Specifies the degree of smoothing applied to the oscillator. Higher values result in smoother but potentially less responsive signals.
Average Length: Sets the length of the moving average applied to the oscillator, affecting its sensitivity and smoothness.
Pivot Length: Specifies the forward-looking length for pivot points, affecting how the oscillator anticipates future price movements. This directly impacts the delay in finding a pivot.
Max Length: Sets the maximum length to consider for calculating the highest values in the oscillator.
Min Length: Defines the minimum length for calculating the lowest values in the oscillator.
Quick Update: Activates a faster update mode for the oscillator's extremities, which may result in less stable range boundaries.
Scale Offset: When enabled, delays updating minimum and maximum values to enhance signal directionality, allowing the signal to occasionally exceed normal bounds.
Candle Color: Enables coloring of candles based on the current directional signal of the oscillator.
Labels:
Enable BOS/CHoCH Labels: Activates the display of BOS (Break of Structure) and CHoCH (Change of Character) labels on the chart.
Visual Padding: Turns on additional visual padding at the top and bottom of the chart to accommodate labels. Determines the amount of visual padding added to the chart for label display.
Divergence:
Divergence Pivot: Defines the number of bars to the right of the pivot in divergence calculations, influencing the oscillator's responsiveness.
Divergence Pivot Forward: Directly impacts latency. Longer periods results in more accurate results at the sacrifice of delay.
Upper Range: Sets the upper range limit for divergence calculations, influencing the oscillator's sensitivity to larger trends.
Lower Range: Determines the lower range limit for divergence calculations, affecting the oscillator's sensitivity to shorter trends.
Symbol: Allows selection of the label style for divergence indicators, with options for text or symbolic representation.
Regular Bullish: Activates the detection and marking of regular bullish divergences in the oscillator.
Hidden Bullish: Enables the identification and display of hidden bullish divergences.
Regular Bearish: Turns on the feature to detect and highlight regular bearish divergences.
Hidden Bearish: Activates the functionality for detecting and displaying hidden bearish divergences.
Color:
Bullish: Determines the minimum/maximum color gradient for bullish signals, impacting the chart's visual appearance.
Bearish: Defines the minimum/maximum color gradient for bearish signals, affecting their visual representation.
Average: Specifies the color for the average line of the oscillator, enhancing chart readability.
CHoCH: Sets the color for bullish/bearish CHoCH (Change of Character) signals.
Premium/Discount: Determines the color for the premium/discount zone in the oscillator's visual representation.
Text Color: Sets the color for the text in BoS/CHoCH labels.
Regular Bullish: Defines the color used to represent regular bullish divergences.
Hidden Bullish: Specifies the color for hidden bullish divergences.
Regular Bearish: Determines the color for hidden bearish divergences.
Divergence Text Color: Specifies the color for the text in divergence labels.
Doda StochasticThe Doda Stochastic Indicator is an oscillator designed to identify primary trends in asset price movements, operating on a scale from 0 to 100. It offers potential buying signals when it fluctuates between 0 and 20, and potential selling signals when it trends between 80 and 100. To reinforce the reliability of these signals, traders often complement them with price action indicators.
The indicator aims to display a modified version of the Stochastic Oscillator, highlighting filtered stochastic values along with related signals.
Traders often use Stochastic indicators to identify potential reversal points or overbought/oversold conditions in the market. The modified version might aim to reduce noise or improve signals compared to the standard Stochastic oscillator. Adjusting the input parameters can alter the sensitivity of the indicator to market movements.
It can also be used to identify trend by considering Doda Stochatic's Moving Average crossing the midline level. If it is above it is uptrend and if below midline then it is downtrend. It does not repaint. It is a lagging indicator because it heavily depends on Moving Averages.
What makes the Doda Stochastic Indicator unique is its attempt to eliminate false or misleading signals commonly found in standard stochastic tools. Instead of relying solely on the 20 and 80 markings for overbought and oversold conditions, it uses the crossing of the green and red lines within these segments to identify signals. However, fully grasping its functionality is pivotal to maximising its utility.
The indicator strategically analyses price movements by scrutinising key price levels, market momentum, and unexpected shifts in trends. By default, it operates with a bar count of 2000 and a PDS value of 13.0, parameters that have undergone extensive testing. It's important to note that tweaking these settings might not always be necessary, as they are well-calibrated.
How to Use the Doda Stochastic Indicator:
Setting up the Indicator:
- Begin incorporating the Doda Stochastic Indicator into your trading strategy once you're confident in identifying significant support and resistance levels.
Strategy with Doda Stochastic:
- Buy Signal Criteria:
- Asset displaying an upward trend.
- Green line crossing above the red line on the indicator.
- Confirm entry with bullish candlestick patterns.
- Set stop loss below the nearest swing low.
- Set take profit at the nearest resistance zone or exit when the green line crosses below the red line.
- Implement risk management with a risk-to-reward ratio of at least 1:2.
- Sell Signal Criteria:
- Asset demonstrating a downtrend.
- Green line crossing below the red line on the indicator.
- Confirm entry with bearish candlestick patterns.
- Set stop loss above the nearest swing high.
- Set take profit at the nearest support zone or exit when the green line crosses above the red line.
- Implement risk management with a risk-to-reward ratio of at least 1:2.
Advantages and Disadvantages:
Pros:
- Analyses crucial price levels, market momentum, and unexpected trend changes.
- Identifies overbought and oversold levels.
Cons:
- Overbought and oversold levels may not always lead to immediate price reversals.
- Signals might occasionally misinterpret a trend reversal as a correction, and vice versa.
The strength of the indicator lies in its intricate approach to price analysis and its effort to minimize false signals. However, traders should exercise caution and consider supplementary confirmation signals for more robust trade decisions.
Activity & Chop ScoreRelease Notes:
The Activity and Chop Score was designed to help traders quickly determine if a market is active and/or choppy (not moving with any urgency). Slow and chopping markets should be approached with caution or avoided.
How does it work? The Activity Score incorporates momentum and the linear regression. Momentum (change in price over time) is compared over a long and short time period. Active markets are when those are moving together. This is combined with a linear regression of the price to determine the Correlation Coefficient (r^2) to measure of trend strength. The score is a is the average of the two momentum values, normalized by the standard deviation, and scaled by the trend (r^2 value). Chop is defined as divergence between long and short momentum periods. The divergences (chop) are quantified with a Jaccard Similarity Score, normalized by the standard deviation, and averaged to create a score.
How can you use it? This indicator is best used on lower timeframes. Activity Scores Values below 1 are considered low and values over 2 are high. Avoid markets where the Activity Score is below 1. There is an alert threshold in the options. Pivots are worth paying attention too as well as they indicate the start and stop of a recent move. You can compare markets or assets with the Chop Score. You make chose to avoid those with higher Chop Score. The position of the two lines relative to each other are useful. Ideally, the Activity Score is higher than the Chop Score. As with any indicators, it should be used in combination with others that best suits your trading style.
Stochastic RSI Buy/Sell SignalThis indicator will show you a red circle above candles when Stoch RSI K value is greater than your "overbought" value, and a green circle above candles when Stoch RSI K value is below your "oversold" value. Updatable oversold and overbought values.
Open Interest OscillatorIn the middle of a bustling cryptocurrency market, with Bitcoin navigating a critical phase and the community hype over potential ETF approvals, current funding rates, and market leverage, the timing is optimal to harness the capabilities of sophisticated trading tools.
Meet the Open Interest Oscillator – special indicator tailored for the volatile arena of cryptocurrency trading. This powerful instrument is adept at consolidating open interest data from a multitude of exchanges, delivering an in-depth snapshot of market sentiment across all timeframes, be it a 1-minute sprint or a weekly timeframe.
This versatile indicator is compatible with nearly all cryptocurrency pairs, offering an expansive lens through which traders can gauge the market's pulse.
Key Features:
-- Multi-exchange Data Aggregation: This feature taps into the heart of the crypto market by aggregating open interest data from premier exchanges such as BINANCE, BITMEX, BITFINEX, and KRAKEN. It goes a step further by integrating data from various pairs and stablecoins, thus providing traders with a rich, multi-dimensional view of market activities.
-- Open Interest Bars: Witness the flow of market dynamics through bars that depict the volume of positions being opened or closed, offering a clear visual cue of trading behavior. In this mode, If bars are going into negative zone, then traders are closing their positions. If they go into positive territory - leveraged positions are being opened.
-- Bollinger Band Integration: Incorporate a layer of statistical analysis with standard deviation calculations, which frame the open interest changes, giving traders a quantified edge to evaluate the market's volatility and momentum.
-- Oscillator with Customizable Thresholds: Personalize your trading signals by setting thresholds that resonate with your unique trading tactics. This customization brings the power of tailored analytics to your strategic arsenal.
-- Max OI Ceiling Setting: In the fast-paced crypto environment where data can surge to overwhelming levels, the Max OI Ceiling ensures you maintain a clear view by capping the open interest data, thus preserving the readability and interpretability of information, even when market activity reaches feverish heights.
Relative Strength Trend Indicator (RSTI)This indicator is called the "Relative Strength Trend Indicator" (RSTI), designed to assess the relative strength of a trend.
Here is a detailed explanation of how it works and how traders can interpret it:
Indicator Operation:
1. Data Source (src): The indicator considers a data source, typically the closing price (close), but this can be adjusted according to the trader's preferences.
2. Period Length (Length): This determines the period used to calculate the simple moving average (SMA) of the data source. A longer period smoothes the indicator, while a shorter period makes it more responsive.
3. Multiplier (Multiplier): This is a multiplication factor applied to the Average True Range (ATR), adjusting the width of the bands.
4. Signal Length (Signal Length): This period is used to calculate the simple moving average of the relative strength (l_strength). It determines the sensitivity of the signal to changes in relative strength.
Interpretation of the Indicator:
1. Upper Strength Band (Upper Level): This line is drawn at 80 and represents a high strength level. When relative strength exceeds this value, it may indicate a potential overbought market.
2. Lower Strength Band (Lower Level): This line is drawn at 20 and represents a low strength level. When relative strength is below this value, it may indicate a potential oversold market.
3. RSTI Strength: The main line of the indicator, representing the calculated relative strength. When this line exceeds 50, it may indicate an uptrend, while a value below 50 may indicate a downtrend.
4. Filling Zones: These colored zones between levels 80 and 50, and between 50 and 20, can help quickly visualize relative strength. A colored zone above 50 indicates positive strength, while a colored zone below 50 indicates negative strength.
Qualities of the Indicator:
1. Adaptability: The use of ATR and the flexibility of parameters (length, multiplier, signal_length) allow the indicator to adapt to different market conditions.
2. Visual Clarity: Colored filling zones and horizontal lines make it easy to visualize relative strength levels.
3. Strength Signal: The signal line (RSTI Strength) allows traders to quickly spot changes in relative strength, facilitating decision-making.
4. Responsiveness: The combination of smoothed moving averages and relative strength indicators allows responsiveness to trend changes while reducing false signals.
It is essential to note that while this indicator can provide valuable insights, it is always recommended to use it in conjunction with other technical analysis tools for informed decision-making.
ROC & EMAIn summary, this allows you to plot the ROC, its EMA, and dynamically display the value of this EMA on the chart.
You can configure different lengths and colors.
Unpretentious code, just for the pleasure of sharing.
Thank you for sharing your comments with me, which will be welcome.
Ultimate Momentum"Ultimate Momentum" – Elevating Your Momentum Analysis
Experience a refined approach to momentum analysis with "Ultimate Momentum," a sophisticated indicator seamlessly combining the strengths of RSI and CCI. This tool offers a nuanced understanding of market dynamics with the following features:
1. Harmonious Fusion: Witness the dynamic interplay between RSI and CCI, providing a comprehensive understanding of market nuances.
2. Optimized CCI Dynamics: Delve confidently into market intricacies with optimized CCI parameters, enhancing synergy with RSI for a nuanced perspective on trends.
3. Standardized Readings: "Ultimate Momentum" standardizes RSI and CCI, ensuring consistency and reliability in readings for refined signals.
4. Native TradingView Integration: Immerse yourself in the reliability of native TradingView codes for RSI and CCI, ensuring stability and compatibility.
How RSI and CCI Work Together:
RSI (Relative Strength Index): Captures price momentum with precision, measuring the speed and change of price movements.
CCI (Commodity Channel Index): Strategically integrated to complement RSI, offering a unique perspective on price fluctuations and potential trend reversals.
Why "Ultimate Momentum"?
In a crowded landscape, "Ultimate Momentum" stands out, redefining how traders interpret momentum. Gain a profound understanding of market dynamics, spot trend reversals, and make informed decisions.
Your Insights Matter:
Share your suggestions to enhance "Ultimate Momentum" in the comments. Your feedback is crucial as we strive to deliver an unparalleled momentum analysis tool.
Donchian Channels StrengthTL;DR - A different approach calculating strength based on Donchain channels
My approach calculating strength by using the difference between price and donchain average. It is possible to use the highest/lowest value of a given source (like close) or to use the highest high/lowest low (by using the option 'include wicks') for the strength calculation
I added multiple moving averages which can be used in the calculations incl. SMMA (RMA) which is used in RSI calculation and works best for me.
Usage is similar to RSI: DC Strength oscillates between 0 and 100. Low values (<20) indicate a bearish situation while high values (>80) indicate bullish ones. Center line (50) crossings can also indicate a possible trend change.
Ichimoku OscillatorFans of the Ichimoku cloud indicator may enjoy this lower study version.
It's all the exact same representation but the cloud is converted to an oscillation in histogram or classic cloud fill formats.
All of the original lines, except Kumo cloud lines, are provided but adjusted to be positionally accurate to the oscillation values.
The oscillation value is calculated simply by absolute subtraction of span a and b lines and as such become an additional width detection mechanism in what I consider to be a slightly cleaner display.
Since the entire cloud can be removed from the main chart, it's necessary to understand price location relative to the values which is calculated and displayed as the 'Price' plot. It is positionally accurate to the oscillation and cross signals can be observed.
My hope is that this serves as a foundation for others to create interesting Ichimoku lower study indicators, and to provide relief to traders looking for cleaner main charts.
I've done my best to ensure accuracy but if any issues are found please let me know.
Feedback and suggestions are welcome, enjoy.
Simple Neural Network Transformed RSI [QuantraSystems]Simple Neural Network Transformed RSI
Introduction
The Simple Neural Network Transformed RSI (ɴɴᴛ ʀsɪ) stands out as a formidable tool for traders who specialize in lower timeframe trading.
It is an innovative enhancement of the traditional RSI readings with simple neural network smoothing techniques.
This unique blend results in fairly accurate signals, tailored for swift market movements. The ɴɴᴛ ʀsɪ is particularly resistant to the usual market noise found in lower timeframes, ensuring a clearer view of short-term trends.
Furthermore, its diverse range of visualization options adds versatility, making it a valuable tool for traders seeking to capitalize on short-duration market dynamics.
Legend
In the Image you can see the BTCUSD 1D Chart with the ɴɴᴛ ʀsɪ in Trend Following Mode to display the current trend. This is visualized with the barcoloring.
Its Overbought and Oversold zones start at 50% and end at 100% of the selected Standard Deviation (default σ = 2), which can indicate extremely rare situations which can lead to either a softening momentum in the trend or even a mean reversion situation.
Here you can also see the original Indicator line and the Heikin Ashi transformed Indicator bars - more on that now.
Notes
Quantra Standard Value Contents:
To draw out all the information from the indicator calculation we have added a Heikin-Ashi (HA) Candle Visualization.
This HA transformation smoothens out the indicator values and gives a more informative look into Momentum and Trend of the Indicator itself.
This allows early entries and exits by observing the HA transformed Indicator values.
To diversify, different visualization options are available, either a classic line, HA transformed or Hybrid, which contains both of the previous.
To make Quantra's Indicators as useful and versatile as possible we have created options
to change the barcoloring and thus the derived signal from the indicator based on different modes.
Option to choose different Modes:
Trend Following (Indicator above mid line counts as uptrend, below is downtrend)
Extremities (Everything going beyond the Deviation Bands in a Mean Reversion manner is highlighted)
Candles (Color of HA candles as barcolor)
Reversion (HA ONLY) (Reversion Signals via the triangles if HA candles change state outside of the Deviation Bands)
- Reversion Signals are indicated by the triangles in the Heikin-Ashi or Hybrid visualization when the HA Candles revert
from downwards to upwards or the other way around OUTSIDE of the SD Bands.
Depending on the Indicator they signal OB/OS areas and can either work as high probability entries and exits for Mean Reversion trades or
indicate Momentum slow downs and potential ranges.
Please use another indicator to confirm this.
Case Study
To effectively utilize the NNT-RSI, traders should know their style and familiarize themselves with the available options.
As stated above, you have multiple modes available that you can combine as you need and see fit.
In the given example mostly only the mode was used in an isolated fashion.
Trend Following:
Purely relied on State Change - Midline crossover
Could be combined with Momentum or Reversion analysis for better entries/exits.
Extremities:
Ideal entry/exit is in the accordingly colored OS/OB Area, the Reversion signaled the latest possible entry/exit.
HA Candles:
Specifically applicable for strong trends. Powerful and fast tool.
Can whip if used as sole condition.
Reversions:
Shows the single entry and exit bars which have a positive expected value outcome.
Can also be used as confirmation or as last signal.
Please note that we always advise to find more confluence by additional indicators.
Traders are encouraged to test and determine the most suitable settings for their specific trading strategies and timeframes.
In the showcased trades the default settings were used.
Methodology
The Simple Neural Network Transformed RSI uses a simple neural network logic to process RSI values, smoothing them for more accurate trend analysis.
This is achieved through a linear combination of RSI values over a specified input length, weighted evenly to produce a neural network output.
// Simple neural network logic (linear combination with weighted aggregation)
var float inputs = array.new_float(nnLength, na)
for i = 0 to nnLength - 1
array.set(inputs, i, rsi1 )
nnOutput = 0.0
for i = 0 to nnLength - 1
nnOutput := nnOutput + array.get(inputs, i) * (1 / nnLength)
nnOutput
This output is then compared against a standard or dynamic mean line to generate trend following signals.
Mean = ta.sma(nnOutput, sdLook)
cross = useMean? 50 : Mean
The indicator also incorporates Heikin Ashi candlestick calculations to provide additional insights into market dynamics, such as trend strength and potential reversals.
// Calculate Heikin Ashi representation
ha = ha(
na(nnOutput ) ? nnOutput : nnOutput ,
math.max(nnOutput, nnOutput ),
math.min(nnOutput, nnOutput ),
nnOutput)
Standard deviation bands are used to create dynamic overbought and oversold zones, further enhancing the tool's analytical capabilities.
// Calculate Dynamic OB/OS Zones
stdv_bands(_src, _length, _mult) =>
float basis = ta.sma(_src, _length)
float dev = _mult * ta.stdev(_src, _length)
= stdv_bands(nnOutput, sdLook,sdMult/2)
= stdv_bands(nnOutput, sdLook, sdMult)
The Standard Deviation bands take defined parameters from the user, in this case sigma of ideally between 2 to 3,
to help the indicator detect extremely improbable conditions and thus take an inversely probable signal from it to forward to the user.
The parameter settings and also the visualizations allow for ample customizations by the trader.
For questions or recommendations, please feel free to seek contact in the comments.
MCG - Meme Coin Gains [Logue]Meme Coin Gains. Investor preference for meme coin trading may signal irrational exuberance in the crypto market. If a large spike in meme coin gains is observed, a top may be near. Therefore, the gains of the most popular meme coins (DOGE, SHIB, SATS, ORDI, BONK, PEPE, and FLOKI) were averaged together in this indicator to help indicate potential mania phases, which may signal nearing of a top. Two simple moving averages of the meme coin gains are used to smooth the data and help visualize changes in trend. In back testing, I found a 10-day "fast" sma and a 20-day "slow" sma of the meme coin gains works well to signal tops and bottoms when extreme values of this indicator are reached.
Meme coins were not traded heavily prior to 2020. Therefore, there is only one cycle to test at the time of initial publication. Also, the meme coin space moves fast, so more meme coins may need to be added later. Also, once a meme coin has finished its mania phase where everyone and their mother has heard of it, it doesn't seem to run again (at least with the data up until time of publication). Therefore, the value of this indicator may not be great unless it is updated frequently.
The two moving averages are plotted. For the indicator, top and bottom "slow" sma trigger lines are plotted. The sma trigger line and the periods (daily) of the moving averages can be modified to your own preferences. The "slow" sma going above or below the trigger lines will print a different background color. Plot on a linear scale if you want to view this as similar to an RSI-type indicator. Plot on a log scale if you want to view as similar to a stochastic RSI.
Use this indicator at your own risk. I make no claims as to its accuracy in forecasting future trend changes of Bitcoin or the crypto market.
BDC - Bitcoin (BTC) Dominance Change [Logue]Bitcoin Dominance Change. Interesting things tend to happen when the Bitcoin dominance increases or decreases rapidly. Perhaps because there is overexuberance in the market in either BTC or the alts. In back testing, I found a rapid 13-day change in dominance indicates interesting switches in the BTC trends. Prior to 2019, the indicator doesn't work as well to signal trend shifts (i.e., local tops and bottoms) likely based on very few coins making up the crypto market.
The BTC dominance change is calculated as a percentage change of the daily dominance. You are able to change the upper bound, lower bound, and the period (daily) of the indicator to your own preferences. The indicator going above the upper bound or below the lower bound will trigger a different background color.
Use this indicator at your own risk. I make no claims as to its accuracy in forecasting future trend changes of Bitcoin.
Best scalping toolExplanation:
This script is a comprehensive indicator that combines three essential technical analysis tools: Money Flow Index (MFI), Relative Strength Index (RSI), and Bollinger Bands (Bollinger %B). It provides insights into market conditions related to cross points of mfi,rsi and B%B.
A buy condition is created when the last candle RSI and MFI are under the bollinger bands, and then in the actual candle the RSI cross up the bollinger low band.
A sell condition is created when the last candle RSI and MFI are above the bollinger bands, and then in the actual candle the RSI cross down the bollinger high band.
Key Components:
MFI (Money Flow Index):
Utilizes the MFI indicator based on a specified length.
Overbought and oversold levels (80 and 20, respectively).
RSI (Relative Strength Index): (Adapted to the mfi chart)
Allows selection of different moving average types (SMA, EMA, etc.) for the RSI calculation.
RSI along with upper and lower bands (70 and 30).
Bollinger Bands:
Provides upper and lower Bollinger Bands based on the RSI's standard deviation.
Visualization Options:
Allows the user to choose between show the buy (green arrow) and the sell (red arrow) .
How It Works:
The indicator amalgamates these three powerful technical indicators to help traders identify potential entry or exit points. The green arrow its a buy signal and the red arrow is a sell signal.
By offering configurable settings and clear visual cues, this indicator assists traders in recognizing critical market conditions and potential trading opportunities.
Disclaimer: This indicator should be used as a tool in a broader trading strategy and not solely for making trading decisions. It's recommended to combine it with other technical or fundamental analysis for comprehensive trading decisions.
Advanced Volatility Oscillator with SignalsTitle: Advanced Volatility Oscillator with Signals (AVO-S)
In-Depth Description:
Introduction:
The Advanced Volatility Oscillator with Signals (AVO-S) is designed to offer traders a nuanced understanding of market volatility, combining traditional concepts with innovative visual aids and signal interpretation. This indicator is tailored for diverse financial markets, helping to identify potential trend reversals and momentum shifts.
Calculation and Methodology:
Spike Calculation: The core of AVO-S is the 'spike', calculated as the difference between the closing and opening prices (spike = close - open). This measure provides a straightforward gauge of intra-period volatility.
Standard Deviation: The indicator employs standard deviation to assess the variability of the 'spike', offering a dynamic threshold for understanding market extremities (stdDev = stdev(spike, length)).
Colored Columns: These columns visually represent the 'spike'. Their color changes based on the spike’s value relative to the zero line and the standard deviation threshold, providing an immediate visual cue of market state.
Blue Columns: Indicate moderate positive movement when the spike is above zero but below the standard deviation.
Green and Red Columns: Suggest stronger bullish (above standard deviation) and bearish (below negative standard deviation) movements, respectively.
Bullish and Bearish Signals:
The indicator generates signals based on the relationship between the 'spike' and its standard deviation.
Bullish Signals: Shown as upward triangles, these are formed when the 'spike' crosses above the standard deviation, indicating potential upward momentum.
Bearish Signals: Represented by downward triangles, these signals are generated when the 'spike' falls below the negative standard deviation, hinting at potential downward trends.
Usage and Application:
Traders can use the colored columns to quickly assess market sentiment and volatility.
The bullish and bearish signals serve as potential indicators for market entry or exit points, or for further analysis in conjunction with other technical tools.
Inspiration and Credits:
Inspired by Veryfid's original Volatility Oscillator, the AVO-S refines and builds upon these ideas to provide a comprehensive and user-friendly tool for market analysis. This indicator is a testament to the continuous evolution of technical analysis tools in the trading community.
Donchian Channels %I enjoy Donchian Channels for identifying trends. However, I hate having them on my chart. They are next to impossible to interpret at a glance. This script converts DCs to a % making a useful oscillator. The horizontal lines on the chart correspond to the Fib retracements below 50%. There are many ways to trade using this script and it works on any time frame. Moving average crosses are worth your attention, particularly, the 34 period MA (purple line). Enjoy and happy trading.
Fusion: Aroon trend matching with dual thresholds 2Same as previous one, just making the code publicly available.
You set an upper and lower threshold and when both are met a direction is determined.
I use this primarily as a confirmation indicator of a trend.
The addition to the normal Aroon is simply the threshold settings and the visuals. There is even an option to see the length you are using which I find useful when the length is long, say 40+ so you don't forget that it's considerably longer than how it's normally used.
Additionally it defaults to the normal colors we are familar with for up and down (long/short) but you can choose Aroon colors if you wish with just a checkbox.
The length is certainly not optimized so set to whatever suits your needs. The Aroon default is 14, I used 6 for one particular case so that's what it ended up being for this indicator.
I default to a dark theme so if you are using a light theme you may need to change some brightness settings.
Finally, if you find value please do make a comment, give a thumbs up etc.
Enjoy and good luck!
Amazing Oscillator (AO) [Algoalpha]Description:
Introducing the Amazing Oscillator indicator by Algoalpha, a versatile tool designed to help traders identify potential trend shifts and market turning points. This indicator combines the power of the Awesome Oscillator (AO) and the Relative Strength Index (RSI) to create a new indicator that provides valuable insights into market momentum and potential trade opportunities.
Key Features:
Customizable Parameters: The indicator allows you to customize the period of the RSI calculations to fine-tune the indicator's responsiveness.
Visual Clarity: The indicator uses user-defined colors to visually represent upward and downward movements. You can select your preferred colors for both bullish and bearish signals, making it easy to spot potential trade setups.
AO and RSI Integration: The script combines the AO and RSI indicators to provide a comprehensive view of market conditions. The RSI is applied to the AO, which results in a standardized as well as a less noisy version of the Awesome Oscillator. This makes the indicator capable of pointing out overbought or oversold conditions as well as giving fewer false signals
Signal Plots: The indicator plots key levels on the chart, including the RSI threshold(Shifted down by 50) at 30 and -30. These levels are often used by traders to identify potential trend reversal points.
Signal Alerts: For added convenience, the indicator includes "x" markers to signal potential buy (green "x") and sell (red "x") opportunities based on RSI crossovers with the -30 and 30 levels. These alerts can help traders quickly identify potential entry and exit points.
Composite RSI [KFB Quant]The Composite RSI (CRSI) is a momentum oscillator that combines 5 adjustable RSI's. It also has a Z-Score to make it easier to identify potential market extremes.
How to adjust the indicator
Inside the Length & Impact Configuration tab you can adjust the length and impact of each RSI as well as the Z-Score length specific to your needs. The default length inputs are 7, 14, 30, 60, 90 (RSI 1 - RSI 5) and the default impact is set to 1.0 for all RSI's. Default length for Z-Score is 360.
Inside the Style Configuration tab you can pick what you want to display(plot). The options are: CRSI, Z-Score, Overview Table and the individual RSI's.
Inside the Color Configuration tab you can customize the color of each plot.
How the script works
CRSI = rsi_sum / imp_sum
Z-Score = (crsi - crsi_mean) / crsi_stdev
rsi_sum = (rsi_1 -50) + (rsi_2 -50) + (rsi_3 -50) + (rsi_4 -50) + (rsi_5 -50)
imp_sum = imp_1 + imp_2 + imp_3 + imp_4 + imp_5
crsi_mean = Average of the crsi over the defined period in Z-Score Length
crsi_stdev = StDev of crsi over the defined period in Z-Score Length
This is not financial advice. Trading is risky & most traders lose money. Past performance does not guarantee future results. This indicator is for informational & educational purposes only.
Christmas Toolkit [LuxAlgo]It's that time of the year... and what would be more appropriate than displaying Christmas-themed elements on your chart?
The Christmas Toolkit displays a tree containing elements affected by various technical indicators. If you're lucky, you just might also find a precious reindeer trotting toward the tree, how fancy!
🔶 USAGE
Each of the 7 X-mas balls is associated with a specific condition.
Each ball has a color indicating:
lime: very bullish
green: bullish
blue: holding the same position or sideline
red: bearish
darkRed: very bearish
From top to bottom:
🔹 RSI (length 14)
rsi < 20 - lime (+2 points)
rsi < 30 - green (+1 point)
rsi > 80 - darkRed (-2 points)
rsi > 70 - red (-1 point)
else - blue
🔹 Stoch (length 14)
stoch < 20 - lime (+2 points)
stoch < 30 - green (+1 point)
stoch > 80 - darkRed (-2 points)
stoch > 70 - red (-1 point)
else - blue
🔹 close vs. ema (length 20)
close > ema 20 - green (+1 point)
else - red (-1 point)
🔹 ema (length 20)
ema 20 rises - green (+1 point)
else - red (-1 point)
🔹 ema (length 50)
ema 50 rises - green (+1 point)
else - red (-1 point)
🔹 ema (length 100)
ema 100 rises - green (+1 point)
else - red (-1 point)
🔹 ema (length 200)
ema 200 rises - green (+1 point)
else - red (-1 point)
The above information can also be found on the right side of the tree.
You'll see the conditions associated with the specific X-mas ball and the meaning of color changes. This can also be visualized by hovering over the labels.
All values are added together, this result is used to color the star at the top of the tree, with a specific color indicating:
lime: very bullish (> 6 points)
green: bullish (6 points)
blue: holding the same position or sideline
red: bearish (-6 points)
darkRed: very bearish (< -6 points)
Switches to green/lime or red/dark red can be seen by the fallen stars at the bottom.
The Last Switch indicates the latest green/lime or red/dark red color (not blue)
🔶 ANIMATION
Randomly moving snowflakes are added to give it a wintry character.
There are also randomly moving stars in the tree.
Garland rotations, style, and color can be adjusted, together with the width and offset of the tree, put your tree anywhere on your chart!
Disabling the "static tree" setting will make the needles 'move'.
Have you happened to see the precious reindeer on the right? This proud reindeer moves towards the most recent candle. Who knows what this reindeer might be bringing to the tree?
🔶 SETTINGS
Width: Width of tree.
Offset: Offset of the tree.
Garland rotations: Amount of rotations, a high number gives other styles.
Color/Style: sets the color & style of garland stars.
Needles: sets the needle color.
Static Tree: Allows the tree needles to 'move' with each tick.
Reindeer Speed: Controls how fast the deer moves toward the most recent bar.
🔶 MESSAGE FROM THE LUXALGO TEAM
It has been an honor to contribute to the TradingView community and we are always so happy to see your supportive messages on our scripts.
We have posted a total of 78 script publications this year, which is no small feat & was only possible thanks to our team of Wizard developers @alexgrover + @dgtrd + @fikira , the development team behind Pine Script, and of course to the support of our legendary community.
Happy Holidays to you all, and we'll see ya next year! ☃️
RSI/MFI Ultimate MAHello!
Today, I want to discuss a special indicator that I've developed. centers around a weighted moving average based on RSI/MFI.
1. Development Purpose
The primary goal of this indicator is to provide clearer insights into bullish and bearish signals in the market. It applies a weight to the RSI (Relative Strength Index) and MFI (Money Flow Index) values to offer more sensitive and predictive trend signals than traditional moving averages.
2. Usefulness
This indicator aids traders in identifying market volatility and bullish or bearish trends more easily. It is particularly responsive to market volatility, providing more accurate information for trading decisions.
3. Real-World Usage Examples
When applied to actual market data, this indicator clearly delineates bullish or bearish sections with its weighted moving average line. For instance, an upward trending moving average line indicates a bullish signal, while a downward trend suggests bearish momentum.
4. Meaning of Parameter Values
option: Allows choosing between RSI or MFI, each analyzing different market signals.
osc_len: Adjusting the oscillator length alters sensitivity.
ma_len: Setting the moving average length helps to modulate responsiveness to market fluctuations.
weight: Changing the weight fine-tunes the sensitivity of the moving average line.
By adjusting these parameters, the indicator can be customized to suit various market conditions.
Wishing you a successful trading day. Thank you!
