200 MAThis is a 200-period Simple Moving Average (SMA) indicator, widely used to identify long-term market trends. The MA 200 is a key level for gauging overall market strength and potential support or resistance
Indicators and strategies
100 MAThis is a 100-period Simple Moving Average (SMA) indicator, designed to highlight longer-term trends. The MA 100 provides insight into overall market direction and helps identify key support and resistance levels.
50 MAThis is a simple 50-period Simple Moving Average (SMA) indicator, designed to identify medium-term trends. The MA 50 helps in spotting potential support and resistance levels and aids in filtering market movements.
THUAN RSIgiá trên rsi rất tiện dụng cho ae chuyên phái rsi, chỉ báo động lượng và biên độ giá real time
MohdTZ - SUPER indicatorInspired by my mentor Paradise, I've developed a custom indicator that combines five powerful tools into one.
This is especially designed for users who are using the free TradingView plan and are limited to a single indicator. With this all-in-one solution, you no longer have to compromise.
The combined indicator includes:
Paradise Money Noodle
EMA 200
EMA 13
SuperTrend Indicator
Watermark Labeling
This setup brings clarity, efficiency, and power—all within a single script.
goats ATR signals📘 Educational Overview
This script is built for traders and students of the markets who want to understand how momentum, trend filtering, and trade planning can work together in a visual and rule-based environment.
At its core, it uses the Average True Range (ATR) to detect high-volatility breakout opportunities. Signals are only triggered when volatility exceeds a configurable threshold and are further filtered by two layers of EMA cloud trends—helping learners see how multi-timeframe confluence improves trade quality.
Once a signal is triggered, the script automatically calculates entry, stop-loss, and take-profit levels based on tick distance and reward/risk logic. These levels are drawn directly on the chart with transparent boxes and dotted lines, giving traders a clear sense of how risk is defined and how structured trade planning can work.
Additional tools include:
VWAP for intraday bias learning.
A 420-period WMA Bollinger band to demonstrate long-term mean reversion zones.
An optional trade history table that tracks and displays simulated trade outcomes for review and study.
This indicator is not for live trading—it is meant to help traders:
Study how volatility and trend signals interact.
Visually understand trade management structures.
Build intuition around risk/reward scenarios and backtest logic.
⚠️ This is for educational use only. It is not a trading signal service or financial advice. The goal is to support learning and strategy development in a transparent, rule-based way.
GoatsMACDThis is a multi-layered trend scalping tool that combines MACD cross signals with dynamic trend filters including Bollinger Bands, EMA clouds, and VWAP for clearer trend identification and trade timing.
🔍 Features:
MACD Cross Dots: Tiny dots mark MACD bullish and bearish crossovers directly on the oscillator pane.
Customizable MACD Settings: Toggle between EMA or SMA calculation for MACD, with adjustable fast/slow lengths and signal smoothing.
Bollinger Bands Overlay: Optional 420-period BB with 0.5 standard deviation for mean reversion and volatility compression.
Triple EMA Clouds:
Cloud 1: EMA 21 vs 55
Cloud 2: EMA 89 vs 120
Cloud 3: EMA 200 vs 240
Each cloud changes color based on bullish/bearish EMA relationships to confirm trend strength and direction.
VWAP Support: Plots a session-based VWAP as an additional dynamic support/resistance zone.
Alerts Included: Receive alerts on bullish or bearish MACD crossovers.
🧠 How to Use:
Use MACD dots to spot early trend shifts.
Confirm direction with the EMA clouds: trade only in alignment with cloud direction.
Use Bollinger Bands and VWAP for entries near key zones.
Ideal for scalping, trend following, or confirmation on multi-timeframe setups.
⚙️ Customizable Inputs:
Full control over MACD lengths and moving average type
Adjustable BB settings
Modify each EMA pair independently for all clouds
My script//@version=5
strategy("Advanced Breakout + EMA Trend Strategy ", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=10)
// === INPUTS === //
fastEMA_len = input.int(9, title="Fast EMA")
slowEMA_len = input.int(21, title="Slow EMA")
atrLen = input.int(14, title="ATR Length")
atr_mult_sl = input.float(1.5, title="ATR Stop Loss Multiplier")
atr_mult_tp = input.float(3.0, title="ATR Take Profit Multiplier")
consolidationBars = input.int(20, title="Consolidation Lookback")
volumeSpikeMult = input.float(1.8, title="Volume Spike Multiplier")
leverage = input.int(10, title="Leverage", minval=1)
// === CALCULATIONS === //
fastEMA = ta.ema(close, fastEMA_len)
slowEMA = ta.ema(close, slowEMA_len)
atr = ta.atr(atrLen)
rangeHigh = ta.highest(high, consolidationBars)
rangeLow = ta.lowest(low, consolidationBars)
volumeAvg = ta.sma(volume, consolidationBars)
// === MARKET CONDITIONS === //
isTrendingUp = fastEMA > slowEMA
isTrendingDown = fastEMA < slowEMA
isConsolidating = (rangeHigh - rangeLow) / close < 0.02
isBreakoutUp = close > rangeHigh and volume > volumeAvg * volumeSpikeMult
isBreakoutDown = close < rangeLow and volume > volumeAvg * volumeSpikeMult
// === ENTRY CONDITIONS === //
enterLong = isConsolidating and isBreakoutUp and isTrendingUp
enterShort = isConsolidating and isBreakoutDown and isTrendingDown
// === EXIT PRICES === //
longSL = close - atr * atr_mult_sl
longTP = close + atr * atr_mult_tp
shortSL = close + atr * atr_mult_sl
shortTP = close - atr * atr_mult_tp
// === ENTRY/EXIT EXECUTION === //
if (enterLong)
strategy.entry("Long", strategy.long, comment="Long Entry")
strategy.exit("TP/SL Long", from_entry="Long", stop=longSL, limit=longTP)
if (enterShort)
strategy.entry("Short", strategy.short, comment="Short Entry")
strategy.exit("TP/SL Short", from_entry="Short", stop=shortSL, limit=shortTP)
// === CHART PLOTTING === //
plot(fastEMA, color=color.green, title="Fast EMA")
plot(slowEMA, color=color.red, title="Slow EMA")
plotshape(enterLong, title="Long Entry", location=location.belowbar, color=color.green, style=shape.labelup, text="BUY")
plotshape(enterShort, title="Short Entry", location=location.abovebar, color=color.red, style=shape.labeldown, text="SELL")
// === ALERT MESSAGES === //
alertcondition(enterLong, title="Long Signal", message="Long Entry Signal: BUY at {{close}} | Leverage: " + str.tostring(leverage))
alertcondition(enterShort, title="Short Signal", message="Short Entry Signal: SELL at {{close}} | Leverage: " + str.tostring(leverage))
OBV with MA & Bollinger Bands by Marius1032OBV with MA & Bollinger Bands by Marius1032
This script adds customizable moving averages and Bollinger Bands to the classic OBV (On Balance Volume) indicator. It helps identify volume-driven momentum and trend strength.
Features:
OBV-based trend tracking
Optional smoothing: SMA, EMA, RMA, WMA, VWMA
Optional Bollinger Bands with SMA
Potential Combinations and Trading Strategies:
Breakouts: Look for price breakouts from the Bollinger Bands, and confirm with a rising OBV for an uptrend or falling OBV for a downtrend.
Trend Reversals: When the price touches a Bollinger Band, examine the OBV for divergence. A bullish divergence (price lower low, OBV higher low) near the lower band could signal a reversal.
Volume Confirmation: Use OBV to confirm the strength of the trend indicated by Bollinger Bands. For example, if the BBs indicate an uptrend and OBV is also rising, it reinforces the bullish signal.
1. On-Balance Volume (OBV):
Purpose: OBV is a momentum indicator that uses volume flow to predict price movements.
Calculation: Volume is added on up days and subtracted on down days.
Interpretation: Rising OBV suggests potential upward price movement. Falling OBV suggests potential lower prices.
Divergence: Divergence between OBV and price can signal potential trend reversals.
2. Moving Average (MA):
Purpose: Moving Averages smooth price fluctuations and help identify trends.
Combination with OBV: Pairing OBV with MAs helps confirm trends and identify potential reversals. A crossover of the OBV line and its MA can signal a trend reversal or continuation.
3. Bollinger Bands (BB):
Purpose: BBs measure market volatility and help identify potential breakouts and trend reversals.
Structure: They consist of a moving average (typically 20-period) and two standard deviation bands.
Combination with OBV: Combining BBs with OBV allows for a multifaceted approach to market analysis. For example, a stock hitting the lower BB with a rising OBV could indicate accumulation and a potential upward reversal.
Created by: Marius1032
WR-Top Dip signals
This script is a technical analysis tool for stocks that calculates the Williams %R (WR) indicator and displays tops and bottoms signals on the chart. The WR indicator is an oscillator that measures the momentum of the stock's price movement over a certain period of time. It is based on the highest and lowest prices over a certain period of time and is expressed as a percentage of the difference between the current price and the highest price (or lowest price) over that period. The WR indicator ranges from 0 to -100, with 0 indicating that the stock is oversold and -100 indicating that the stock is overbought.
The script provides default parameters of WR1:84 and WR2:168, which are suitable for most traders. However, you can modify the parameters according to your needs, such as WR1:55 and WR2:144. The WR1 parameter is the number of periods used to calculate the first WR line, and the WR2 parameter is the number of periods used to calculate the second WR line. The two lines are then plotted on the chart, and their crossing generates the tops and bottoms signals.
The tops and bottoms signals are determined by the crossing of two different time periods of the WR indicator. When the shorter-term WR line (WR1) crosses below the upper limit (usually set at -20), and the longer-term WR line (WR2) does not cross below the upper limit, a tops signal is generated. This indicates that the stock is overbought and may be a good time to sell. Conversely, when the shorter-term WR line (WR1) crosses above the lower limit (usually set at -80), and the longer-term WR line (WR2) does not cross above the lower limit, a bottoms signal is generated. This indicates that the stock is oversold and may be a good time to buy.
In addition to displaying the WR indicator and tops and bottoms signals, the script also includes some drawing and alert features. You can draw horizontal lines at the upper and lower limits to help you identify when the WR indicator crosses them. You can also set alerts to notify you when a tops or bottoms signal is generated.
Please note that this script is just one tool among many for technical analysis, and you should use it in conjunction with other tools and your own analysis to make your own buy or sell decisions. The purpose of this description is to help users understand the script's functionality and how to use it. If you have any questions, please refer to TradingView's community rules or contact TradingView customer service.
Money MovementThe “Main Force Volume” indicator is designed to help traders quickly and easily capture the movements of the main force in the cryptocurrency market. In this market, prices are often influenced by human manipulation, and it can be difficult for traders to identify the movements of the main force. This indicator is designed to help traders recognize the main force’s movements and identify key areas of support and resistance.
The indicator consists of two types of red columns: upward red columns and downward red columns. Upward red columns are used to determine the bottom area according to different cycles. When the market is in a downtrend, upward red columns may appear, indicating that the main force has begun to intervene and that a bottom area may be forming. The longer the upward red columns, the more solid the bottom area may be.
Downward red columns, on the other hand, are used to judge the top area according to different cycles. When the market is in an uptrend, downward red columns may appear, representing selling pressure from the main force. As the downward red columns gradually exhaust their volume, a relative top area may be forming. This indicates that the main force has sold almost all of its holdings and that there may be no further upward momentum.
To use the indicator, traders should look for patterns of upward and downward red columns on the chart. When upward red columns appear, traders should look for a longer-term trend reversal and consider buying opportunities. When downward red columns appear, traders should look for a potential top and consider selling opportunities.
It is important to note that this indicator is just one tool among many for technical analysis, and traders should use it in conjunction with other tools and their own analysis to make their own buy or sell decisions. The purpose of this description is to help users understand the indicator’s functionality and how to use it. If you have any questions, please refer to TradingView’s community rules or contact TradingView customer service.
Enhanced MA Cloud Guru Pro (With Visual Controls)Enhanced MA Cloud Guru Pro
The Enhanced MA Cloud Guru Pro is an advanced multi-timeframe trend-following and momentum indicator designed to help traders identify high-quality entries and exits using dynamic moving average clouds.
This tool visualizes the alignment and interaction between short-term and long-term moving averages while integrating volume and momentum filters to reduce false signals.
🔍 Features:
Customizable Moving Averages – Choose SMA, EMA, WMA, or HMA for six different lengths.
MA Clouds – Highlights trend strength and direction with color-coded MA clouds (MA1–3 and MA4–6).
Visual Cues – Clear chart symbols for:
Contrarian entries (MA1 crosses MA3 against the longer-term trend)
Momentum-based cloud breaks (MA1–3 cloud crosses MA5)
Price breaking above or below the 100-period MA (MA5)
Volume Filtering – Signals require above-average volume for confirmation.
Cooldown Logic – Prevents signal spamming and enforces spacing between trades.
Minimalist Dashboard Ready – Designed for clean chart readability.
🧠 Use Case:
Ideal for trend traders and swing traders looking for MA cross confirmation with momentum validation. Can also be used to filter signals for discretionary or automated systems.
HOG Super CrossHOG Super Cross – Trend-Confirmed Crossover System
📊 Overview
Blends crossover signals with trend confirmation logic using dual moving averages. Designed to highlight directional strength while reducing noise from false breakouts or sideways action.
⚙️ How It Works
• Two MAs (Fast and Slow) – default: 9 and 21
• Crossover arrows appear when the Fast MA crosses the Slow MA
• Slope dots appear when the Fast MA slope flips direction (up/down)
• Trend confirmation requires:
– Price is above/below the Slow MA
– Fast MA is on the same side
– Both MA slopes are aligned
• Fast MA color-coded for clarity:
– Green = Bull trend
– Red = Bear trend
– Gray = Neutral
🎯 Inputs
• Source (price)
• Fast MA Length
• Slow MA Length
• MA Type (EMA, SMA, WMA, HMA)
✅ Benefits
• Entry arrows filtered by structural and slope alignment
• Optional slope dots offer early momentum signals
• Clean chart view—only fast MA is shown for minimal clutter
• Repaint-safe—signals plot on confirmed bar closes
📈 Use Cases
• Signal confirmation on 1H, 4H, or Daily trend trades
• Use alongside volume, momentum, or market structure tools
• Turn off dots/arrows for pure trend-only view
⚠️ Notes
• Not a complete strategy—best used with a broader system
• Trend confirmation improves crossover reliability in live markets
Squeeze Momentum Long-Only Strategy v5This strategy is a refined long-only version of the popular Squeeze Momentum Indicator by LazyBear, enhanced with modern multi-filter techniques for improved precision and robustness.
📈 Core Idea
The strategy aims to capture explosive upside moves after periods of low volatility ("squeeze") — confirmed by breakout momentum, strong volume, macro trend alignment, and market context. Trades are entered only long, making it suitable for bullish assets or trending environments like crypto.
🔍 How It Works
1. Squeeze Detection
Detects a "squeeze" condition when Bollinger Bands (BB) contract inside Keltner Channels (KC).
A squeeze releases (entry signal) when BB expand outside KC — implying a potential breakout.
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sqzOff → Squeeze released → Price may expand directionally
2. Momentum Filter (Modified Squeeze Histogram)
Uses a custom linear regression-based histogram (val) to gauge price momentum.
Only enters long when:
val > 0 (bullish momentum)
val is rising for two consecutive bars (to avoid false starts)
val exceeds a configurable threshold
3. Volume Filter
Confirms strength of breakout by requiring:
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Current volume > Volume Moving Average × Multiplier
This ensures that breakouts are backed by real participation, reducing weak or manipulated moves.
4. Trend Filter (HTF SMA)
Uses a higher timeframe (e.g., Daily) Simple Moving Average to define trend bias.
Only takes long trades if price is above the selected trend SMA (e.g., 50-period SMA on D timeframe).
Helps avoid countertrend trades during bear phases or consolidations.
5. Volatility Filter
Uses ATR to measure recent volatility.
Filters out periods of low ATR to avoid trading in choppy, compressed markets.
🎯 Entry Conditions (All Must Be True):
Squeeze releases upward (sqzOff)
Momentum (val) is positive and rising (2-bar confirmation)
Momentum exceeds a minimum strength threshold
Volume spikes above average
Price is above HTF trend SMA
ATR is above its moving average (indicating active market)
🏁 Exit Condition
Closes the trade only when val < 0 → Momentum flips bearish.
(Optional extensions like trailing stops or take-profit rules can be added.)
⚙️ Customization Options
Momentum strength threshold
Volume multiplier
ATR length & filter threshold
HTF trend timeframe (e.g., "D", "3D", "W")
Trend SMA length
KC/BB settings for squeeze tuning
📊 Best Use Cases
Crypto (BTC, ETH, altcoins in uptrends)
Equities in trending sectors
Avoid in sideways, illiquid, or heavily news-driven markets
✅ Benefits
High precision due to multi-layered confirmation
Avoids overtrading in poor conditions
Focuses on clean, high-quality breakout trades
Flexible for risk management add-ons
Swing Trend: 200 EMA + ATR (Long Only)🧠 Strategy Concept:
This swing trading strategy is designed specifically for Ethereum (ETH) on timeframes like 4H or Daily, but it is flexible enough to work across other volatile assets or timeframes with some tuning.
The system combines trend confirmation via a 200-period Exponential Moving Average (EMA) with volatility filtering using the Average True Range (ATR). It aims to capture medium-term bullish swings while avoiding weak or sideways markets.
📈 Entry Logic:
A long position is opened only when both of the following conditions are true:
Price is above the 200 EMA
→ This confirms a longer-term uptrend.
Price is also greater than (EMA + ATR × Multiplier)
→ This volatility buffer ensures we only enter after strong directional moves and avoid minor pullbacks or choppy price action.
The ATR multiplier is customizable (default = 1.5).
ATR length defaults to 14 periods.
✅ This double filter helps reduce false positives and ensures that entries happen only in strong bullish momentum.
💡 Exit Logic:
The exit rule is simple:
Close the position when the price crosses below the 200 EMA, indicating a potential trend reversal or weakening trend.
This approach:
Protects gains by exiting early during trend breakdowns.
Avoids unnecessary complexity like static stop-loss or take-profit.
You can manually add SL/TP logic if desired.
⚙️ Strategy Settings:
EMA Length = 200
ATR Length = 14
ATR Multiplier = 1.5
Position Sizing = 10% of equity per trade (adjustable in strategy settings)
📊 Use Case:
Optimized for swing traders who prefer long-only positions in bull markets.
Particularly effective on ETHUSDT, but applicable to BTC, SOL, etc.
Best used during periods of trending market behavior — avoid sideways or range-bound conditions.
🛠️ Customization Tips:
Timeframe: Works best on 4H or 1D charts; avoid low timeframes unless volatility filtering is adjusted.
EMA Length: Increase to 300–400 for more conservative filtering.
ATR Multiplier: Raise to 2–2.5 to reduce frequency of entries and increase selectivity.
Stop-loss / Take-profit: You can add static or trailing SL/TP for tighter risk control if desired.
📌 Strategy Summary:
Feature Setting
Trend Filter 200 EMA
Volatility Gate ATR (×1.5)
Entry Type Long only
Exit Trigger Close < EMA
Style Trend-following Swing Strategy
Killzones [Plug&Play]Highlight the most important institutional trading hours with precision.
The Setup Agent Killzones indicator automatically plots vertical lines to mark the key “Killzone” windows each day — London (08:00–09:00) and New York (15:00–16:00), shown in UK time. These timeframes represent periods of high volatility, where smart money activity is most likely to create the day’s major moves.
How it works:
Instantly visualise the London and New York Killzones with subtle vertical lines.
Customise which sessions to show to fit your trading style.
Stay focused on the windows where market makers are most active.
Perfect for intraday traders and anyone using session-based strategies.
Combine with our session indicator for a complete Plug&Play edge.
VWAP Divergence | Flux ChartsVWAP Divergence indicator by FluxCharts turned strategy, with trailing stop-loss capabilities. Will give entry signals for Divergences'. Also has calculations for positions.
GoatsADX)This TradingView indicator implements the Average Directional Index (ADX) along with Directional Movement Indicators (DI+ and DI-) to help traders identify trend strength and direction. It features:
Customizable length and ADX threshold inputs
ADX line colored white when rising and grey when falling for easy trend strength visualization
DI+ and DI- lines plotted with subtle black coloring for clean visuals
Background fills between DI lines and below ADX threshold to highlight key market states
Buy and sell signals plotted as arrows based on ADX crossing threshold with directional bias
Alert conditions for automated notifications on buy and sell signals
Nirav - Opening Range with Breakouts & TargetsUsed for Credit Spreads: Opening Range with Breakouts & Targets
Smart Composite Strategy {Darkoexe}This strategy is a multi-confirmation trend-based system that combines several powerful community concepts into a cohesive trade automation framework. It’s designed to help identify high-probability directional trades with built-in dynamic exits, take-profits, and intelligent trend filters.
🧩 What Makes It Unique
Rather than relying on a single signal or open-source indicator, this strategy blends three well-established concepts:
G-Trend Reversal Detection – A trailing ATR-based trend switch logic to determine core market direction.
Bull/Bear Candle Momentum Filter – Counts candle colors over a lookback period to evaluate directional conviction.
Multi-timeframe CCI Rider & Ultimate RSI – Uses smoothed momentum values to confirm continuation and strength.
Trades are only entered when all modules are in agreement — filtering out noisy entries and aligning with prevailing momentum.
⚙️ Strategy Components
Entry Triggers:
A confirmed trend switch via G-Trend logic.
Favorable bullish or bearish candle momentum.
Multi-timeframe momentum alignment using:
CCI EMA
Augmented RSI signal line
Exits:
Optional G-Trend signal reversal exit.
Configurable stop-loss and take-profit levels, based on percentages.
Partial TP1-based exit, with dynamic stop-loss movement to entry upon trigger.
Customization:
Backtesting window control (start/end date).
Toggle for stop loss, take profit, TP1 percent, and SL trail logic.
Toggle to use or skip trend-based exit logic.
🎯 Use Case
This strategy is best suited for:
Swing traders or intraday trend-followers.
Users wanting layered confirmation rather than single-indicator entries.
Markets with clear institutional flows or trending behavior.
⚠️ Notes & Limitations
This strategy uses components from other publicly available indicators, including:
G-Trend
CCI Rider by Stefan Loosli
Ultimate RSI by LuxAlgo
All code has been integrated and adapted into a unified logic tree.
The strategy operates using historical price data and may not account for real-time slippage or fees.
Always forward test in live or paper environments before relying on performance.
Creflo C's BS Detector✅ Buy Signal Triggers when:
All of the following conditions are true:
📈 close > ema5 — price is above the short-term trend.
🔁 ema10 > ema21 — confirms near-term bullish momentum.
📊 close > ema50 — strong medium-term trend.
🏗️ close > ema200 — long-term trend is bullish.
💪 RSI > sma(RSI, 2) — momentum is increasing.
🏔️ close >= 85% of the 104-week high — stock is near its 2-year highs.
⚔️ (60-bar performance > SPY's 60-bar performance) — stock is outperforming the market.
⏱️ It's been at least 21 bars since the last signal — you’re clear to fire again.
❌ Sell Signal Triggers when any one of the following is true:
🚨 close < chandelierExit
Defined as 21-bar high - (3 × ATR(21))
This is a trailing stop based on volatility.
❌ close < ema21 — loss of short-term support.
⚠️ close < ema50 — medium-term trend breakdown.
💀 close < ema200 — long-term trend cracked.
AND:
⏱️ It's been at least 21 bars since the last signal
Long-Leg Doji Breakout StrategyThe Long-Leg Doji Breakout Strategy is a sophisticated technical analysis approach that capitalizes on market psychology and price action patterns.
Core Concept: The strategy identifies Long-Leg Doji candlestick patterns, which represent periods of extreme market indecision where buyers and sellers are in equilibrium. These patterns often precede significant price movements as the market resolves this indecision.
Pattern Recognition: The algorithm uses strict mathematical criteria to identify authentic Long-Leg Doji patterns. It requires the candle body to be extremely small (≤0.1% of the total range) while having long wicks on both sides (at least 2x the body size). An ATR filter ensures the pattern is significant relative to recent volatility.
Trading Logic: Once a Long-Leg Doji is identified, the strategy enters a "waiting mode," monitoring for a breakout above the doji's high (long signal) or below its low (short signal). This confirmation approach reduces false signals by ensuring the market has chosen a direction.
Risk Management: The strategy allocates 10% of equity per trade and uses a simple moving average crossover for exits. Visual indicators help traders understand the pattern identification and trade execution process.
Psychological Foundation: The strategy exploits the natural market cycle where uncertainty (represented by the doji) gives way to conviction (the breakout), creating high-probability trading opportunities.
The strength of this approach lies in its ability to identify moments when market sentiment shifts from confusion to clarity, providing traders with well-defined entry and exit points while maintaining proper risk management protocols.
How It Works
The strategy operates on a simple yet powerful principle: identify periods of market indecision, then trade the subsequent breakout when the market chooses direction.
Step 1: Pattern Detection
The algorithm scans for Long-Leg Doji candles, which have three key characteristics:
Tiny body (open and close prices nearly equal)
Long upper wick (significant rejection of higher prices)
Long lower wick (significant rejection of lower prices)
Step 2: Confirmation Wait
Once a doji is detected, the strategy doesn't immediately trade. Instead, it marks the high and low of that candle and waits for a definitive breakout.
Step 3: Trade Execution
Long Entry: When price closes above the doji's high
Short Entry: When price closes below the doji's low
Step 4: Exit Strategy
Positions are closed when price crosses back through a 20-period moving average, indicating potential trend reversal.
Market Psychology Behind It
A Long-Leg Doji represents a battlefield between bulls and bears that ends in a stalemate. The long wicks show that both sides tried to push price in their favor but failed. This creates a coiled spring effect - when one side finally gains control, the move can be explosive as trapped traders rush to exit and momentum traders jump aboard.
Key Parameters
Doji Body Threshold (0.1%): Ensures the body is truly small relative to the candle's range
Wick Ratio (2.0): Both wicks must be at least twice the body size
ATR Filter: Uses Average True Range to ensure the pattern is significant in current market conditions
Position Size: 10% of equity per trade for balanced risk management
Pros:
High Probability Setups: Doji patterns at key levels often lead to significant moves as they represent genuine shifts in market sentiment.
Clear Rules: Objective criteria for entry and exit eliminate emotional decision-making and provide consistent execution.
Risk Management: Built-in position sizing and exit rules help protect capital during losing trades.
Market Neutral: Works equally well for long and short positions, adapting to market direction rather than fighting it.
Visual Confirmation: The strategy provides clear visual cues, making it easy to understand when patterns are forming and trades are triggered.
Cons:
False Breakouts: In choppy or ranging markets, price may break the doji levels only to quickly reverse, creating whipsaws.
Patience Required: Traders must wait for both pattern formation and breakout confirmation, which can test discipline during active market periods.
Simple Exit Logic: The moving average exit may be too simplistic, potentially cutting profits short during strong trends or holding losers too long during reversals.
Volatility Dependent: The strategy relies on sufficient volatility to create meaningful doji patterns - it may underperform in extremely quiet markets.
Lagging Entries: Waiting for breakout confirmation means missing the very beginning of moves, reducing potential profit margins.
Best Market Conditions
The strategy performs optimally during periods of moderate volatility when markets are making genuine directional decisions rather than just random noise. It works particularly well around key support/resistance levels where the market's indecision is most meaningful.
Optimization Considerations
Consider combining with additional confluence factors like volume analysis, support/resistance levels, or other technical indicators to improve signal quality. The exit strategy could also be enhanced with trailing stops or multiple profit targets to better capture extended moves while protecting gains.
Best for Index option,
Enjoy !!