[UST] Protein+Support/Resistance Script: A Comprehensive Overview
Thanks to Pmgjiv for providing the foundation to this improved Version.
In the world of trading, having a robust support and resistance analysis tool can make a significant difference in decision-making and overall strategy. Let's delve into the enhancements made to the support/resistance script and how each component contributes to a trader's arsenal:
Changes and improvements made for the script to help Traders make better rational decisions in their Trading:
1. Multiple Timeframes:
Integrating multiple timeframes into the analysis provides a multi-dimensional view of the market. Traders can now assess price action across different time horizons simultaneously. This feature allows for a deeper understanding of market dynamics and helps in identifying significant support and resistance levels across various timeframes.
2. Timeframe Labels Inside Zones:
By including timeframe labels within the zones, traders can easily identify the origin of each support or resistance level. This contextual information enhances clarity and facilitates more informed decision-making, especially when navigating through multiple timeframes.
3. Visual Zone Update:
Visual updates on zones enable traders to track changes in support and resistance levels in real-time. This dynamic feature enhances the analytical process by providing immediate insights into evolving market conditions, thereby enabling traders to adapt their strategies accordingly.
4. Zones Hit:
Understanding the frequency and intensity of zone hits offers valuable insights into the strength and relevance of support and resistance levels. Traders can gauge the significance of each zone based on its historical interaction with price, thereby gaining a deeper understanding of market sentiment and potential trading opportunities.
5. Option to Turn off Current Timeframe:
The ability to toggle off the current timeframe streamlines chart analysis by focusing only on the most critical support and resistance zones. This decluttering feature helps traders prioritize key levels, reducing cognitive overload and enhancing decision-making efficiency.
Explanation of Additional Functions:
a. Lookback:
The 'lookback' parameter allows traders to customize the age of support and resistance zones based on their trading style and preferences. By adjusting the lookback setting, traders can choose whether to prioritize recent price action or consider historical data, thus tailoring the analysis to their specific trading strategies.
b. Swinglength:
Swinglength determines the sensitivity of the support and resistance zones. By modifying this parameter, traders can control how aggressively the script identifies pivot points. A higher swinglength value results in smoother, more stable zones, whereas a lower value increases sensitivity, capturing smaller price movements.
c. ZigZag Indicator:
The ZigZag indicator plays a pivotal role in identifying significant price reversals. Its period setting determines the number of price bars considered before confirming a pivot point. Traders can utilize this indicator to identify key turning points in the market, aiding in the identification of robust support and resistance levels.
Impact of Sensitivity on Zones:
Adjusting the sensitivity of the ZigZag indicator directly influences the identification and delineation of support and resistance zones. Higher sensitivity levels result in fewer but more robust zones, capturing significant price movements. Conversely, lower sensitivity levels yield more zones, accommodating smaller price fluctuations but potentially introducing noise into the analysis.
d. S/R Range:
The ability to adjust the width of support and resistance zones allows traders to customize the breadth of key areas on a chart. Choosing a wider range encompasses a broader spectrum of prices, thereby identifying more comprehensive support and resistance levels. This flexibility enables traders to adapt their analysis to different market conditions and trading strategies.
Utilization in Trading:
Comprehensive Analysis: By incorporating multiple timeframes, traders gain a holistic view of market dynamics, enabling them to identify high-probability trading opportunities across various horizons.
Contextual Understanding: Timeframe labels within zones provide context, helping traders understand the significance of each level in relation to different timeframes and market conditions.
Real-time Adaptability: Visual zone updates facilitate real-time analysis, allowing traders to adjust their strategies promptly in response to changing market conditions.
Informed Decision-making: By considering zone hits, traders can assess the strength and relevance of support and resistance levels, enhancing their ability to make informed trading decisions.
Customized Analysis: Adjustable parameters such as lookback, swinglength, and sensitivity empower traders to tailor the analysis to their individual trading styles and preferences, enhancing precision and effectiveness.
In summary, these enhancements to the support/resistance script provide traders with a powerful toolkit for analyzing market dynamics, identifying key levels, and executing well-informed trading strategies across various timeframes and market conditions.
Support
Multi Pivot (S/R) & Previous Period (OHLC)█ Multi Pivot (Support/Resistance) & Previous Period (Open/High/Low/Close)
The previous script was deleted because of a copyrighted word.
From JayRogers description.
█ Multi Pivot Selector
Allows you to set up to 3 distinct sets of pivots, each with their own resolution settings and the ability to select how many support|resistance levels are shown.
The maximum amount of S|R levels available varies with different pivot types, the options available are:
Traditional
Fibonacci
Woodie
Classic
Copyrighted word
Camarilla
Fibonacci Extended
█ Previous Period Levels
A simple but highly customisable display of previous higher time-frame OHLC values.
Customised resolution input which excludes time frames lower than 1 hour while extending the common higher reference inputs.
This script is based on JayRogers script, I only added some features so please check out his script.
I added the timeframe in the labels, in order to make it easier to differentiate when using multiple pivot set.
As well as making it possible to change the lines color of each pivot set separately.
Labels can now be displayed on each side (right, left and both) or just disabled.
The type of pivot can be shown on the right side.
Lines extension can be disabled and lines width value can be changed.
I also added another one of his script to display OHLC levels, I made similar changes.
Converted to Pine Script v5.
Previous Period Levels - X Alerts
Pivotal - Multi Pivot Selector (which was also deleted because of the copyrighted word)
All Time High (ATH) Levels [LuxAlgo]The All Time High (ATH) Levels indicator displays a user-set amount of historical all-time high levels made on the user's chart, highlighting potential key price levels.
Displayed levels can be filtered out based on their duration, as well as their relative distance from each other.
The script also evaluates the role a level might have as a support or resistance using a percentage, classifying ATH levels as either support or resistance depending on the result.
🔶 USAGE
On certain assets market participants give a high level of attention to all-time highs made by an asset, with the most pertinent example being Bitcoin.
Previous all-time highs can play important roles as psychological price levels, with the most recent ones often offering major resistance points, and older ones being used as support.
Users can filter out temporary ATHs using the ATH Minimum Duration setting, removing any ATH that lasts less than the user-specified number of bars. Higher values of this setting effectively preserve ATHs that become distinguishable peaks. These can offer more significant support/resistance levels.
When displaying each historical level some of them can be very close to each other. Users can use the "Minimum Distance Between ATH" setting to filter out levels too close to each other, with higher values of this setting returning more spaced levels. Distances are first evaluated from the most recent ATH. Note that this setting can cause repainting.
🔹 SR Classification
The script evaluates the ability of an ATH level to act as a support or resistance since its occurrence, and measures its strength as a percentage, with higher percentage values suggesting a stronger support or resistance.
Levels classified with "R" suggest that the price was located below the level most of the time, indicative of a resistance, while a level classified with "S" suggests that the price was located above the level most of the time, indicative of a support.
Percentages between 99% to 50% are often indicative of supports/resistances being tested, while values below 50% reflect more centered levels. A value of 100% suggests that an ATH level was not tested enough. users can filter out any level with a percentage below the "Minimum %" setting.
🔶 SETTINGS
Show Last ATH: Specify the amount of most recent ATH's to display.
ATH Minimum Duration: Minimum duration (in bars) of an ATH, that is the minimum number of bars that must elapse before another ATH can be made.
Minimum Distance Between ATH: Minimum distance between displayed ATH levels, starting from the most recent ATH. This distance is a multiple of the average true range.
🔹 SR Classification
Show SR%: Show percentage as well as ATH level classification.
Minimum %: Minimum percentage values required to display an ATH level.
Periodic OHLHere is another experience on working with 'time' variable :)
This script generates potential support and resistance levels based on daily, weekly, and monthly open, high, and low prices. In such indicators, security calls produce effective results. However, similar tasks can also be performed by built-in variables. This script serves as an example of how alternative methods can be constructed.
The originality of the indicator is based on its ability to visualise the current open, high and low prices from the bar at which they occur. You can also display levels simultaneously.
I hope it helps everyone...
DISCLAIMER
This is just an indicator, nothing more. It is provided for informational and educational purposes exclusively. The utilization of this script does not constitute professional or financial advice. The user solely bears the responsibility for risks associated with script usage. Do not forget to manage your risk. And trade as safely as possible. Best of luck!
Market Activity Risk"Market Activity Risk" (MAR) - Is a dynamic tool designed to structurize the competitive landscape of blockchain transaction blocks, offering traders a strategic edge in anticipating market movements.
By capturing where market participants are actively buying and selling, the MAR indicator provides insights into areas of high competition, allowing traders to make informed decisions and potentially front-run transactions.
At the heart of this tool are blockchain transaction fees , they can represent daily shifts in transaction fee pressures.
By measuring momentum in fees, we can analyze the urgency and competition among traders to have their transactions processed first. This indicator is particularly good at revealing potential support or resistance zones, areas where traders are likely to defend their positions or increase their stakes, thus serving as critical junctures for strategic decision-making.
Key Features:
Adaptable Standard Deviation Settings: Users have the flexibility to adjust the length of the standard deviation and its multipliers, managing the risk bands to their individual risk tolerance.
Color-Coded Risk Levels: The MAR indicator employs an intuitive color scheme, making it easy to interpret the data at a glance.
Multi-Currency Compatibility: While designed with Bitcoin in mind, the MAR indicator is versatile, functioning effectively across various cryptocurrencies including Ethereum, XRP, and several other major altcoins. This broad compatibility ensures that traders across different market segments can leverage the insights provided by this tool.
Customizable Moving Average: The 730-day moving average setting is thoughtfully chosen to reflect the nuances of a typical cryptocurrency cycle, capturing long-term trends and fluctuations. However, recognizing the diverse needs and perspectives of traders, the indicator allows for the moving average period to be modified.
EPS GridIntroduction:
This simple indicator offers insights into the relationship between stock prices and earnings, aiding in the assessment of valuation dynamics during different periods.
Understanding Price-to-Earnings (P/E) Ratio:
The commonly used Price to Earnings (P/E) ratio, calculated as Current Price divided by Earnings Per Share (EPS) over the trailing 12 months (TTM), serves as a fundamental metric. Here, we use this formula to estimate a stock's price. For instance, multiplying EPS by 10 provides an approximation of the stock price with a P/E ratio of 10.
The Grid Concept:
Utilizing this principle, a visual grid is constructed to illustrate how stock prices correlate with earnings. This grid facilitates the identification of both potential bargains and overvalued stocks.
How to Utilize:
This indicator is pre-configured with earnings multiples of 10, 15, 20, and 25. Simply add it to your chart and observe whether earnings demonstrate consistent growth. If prices lag behind earnings, a potential catch-up phase may ensue in the future.
Happy Investing!
Embark on your investment journey armed with this indicator, and may it guide you towards informed decisions and successful ventures.
Session Levels Predictor [LuxAlgo]The "Session Levels Predictor" indicator predicts the maximum/minimum levels that will be made within a user-specified session. Hit rate percentages are displayed to measure how often a specific level has been hit.
🔶 USAGE
The indicator can be used to estimate the expected maximum/minimum levels within a specified session, these are directly displayed at the start of a session. This operation can be useful to set take profits/stop losses levels when we expect to exit within a specific session.
Users can display up to 3 upper and lower extremities on their chart (by default only 2 upper and lower extremities are displayed), with their distance from the session opening price being determined by the user-set percentile setting, values closer to 100 will return levels farther away from the session opening price.
Predicting maximum/minimum levels effectively allows obtaining support/resistance levels for the user-defined session, with a breakout probability indicating how easy it can be for the price to reach the estimated levels. These levels can be extended outside the specified session, allowing to test their relevancy as support/resistance levels to prices outside the specified sessions.
🔶 DETAILS
To predict maximum/minimum levels made within a session we keep a record of the distance between a session's maximum/minimum value and the session opening price (opening price when the session starts).
By using the percentile_nearest_rank() on our recorded distances we draw levels from the session opening price. If a level is hit between 2 sessions, this is saved for further calculations.
Lastly, a % hit rate of these levels is shown at the sessions open, indicating the probability that these levels could be hit before the next session.
🔹 array.percentile_nearest_rank()
Returns the value for which the specified percentage of array values (percentile) is less than or equal to it, using the nearest-rank method.
For example, taking the 75th percentile from our recorded distances between the maximum session level and session opening price will return a new distance where 75% of the recorded distances are lower.
The same goes for the green session's open - low levels
🔶 SETTINGS
Session: User-defined session interval, uses the symbol timezone.
Percentile (1, 2, 3): K-th percentile used to estimate session max/min levels, higher values will return more distant levels.
Max Population: Maximum amount of recorded distance data for the calculation of percentiles.
🔹 Style
Extend Middle Line: Toggle to extend the blue Middle Line to the next session - Default disabled
Ichimoku Clouds Strategy Long and ShortOverview:
The Ichimoku Clouds Strategy leverages the Ichimoku Kinko Hyo technique to offer traders a range of innovative features, enhancing market analysis and trading efficiency. This strategy is distinct in its combination of standard methodology and advanced customization, making it suitable for both novice and experienced traders.
Unique Features:
Enhanced Interpretation: The strategy introduces weak, neutral, and strong bullish/bearish signals, enabling detailed interpretation of the Ichimoku cloud and direct chart plotting.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Dual Trading Modes: Long and Short modes are available, allowing alignment with market trends.
Flexible Risk Management: Offers three styles in each mode, combining fixed risk management with dynamic indicator states for versatile trade management.
Indicator Line Plotting: Enables plotting of Ichimoku indicator lines on the chart for visual decision-making support.
Methodology:
The strategy utilizes the standard Ichimoku Kinko Hyo model, interpreting indicator values with settings adjustable through a user-friendly menu. This approach is enhanced by TradingView's built-in strategy tester for customization and market selection.
Risk Management:
Our approach to risk management is dynamic and indicator-centric. With data from the last year, we focus on dynamic indicator states interpretations to mitigate manual setting causing human factor biases. Users still have the option to set a fixed stop loss and/or take profit per position using the corresponding parameters in settings, aligning with their risk tolerance.
Backtest Results:
Operating window: Date range of backtests is 2023.01.01 - 2024.01.04. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Maximum Single Position Loss: -6.29%
Maximum Single Profit: 22.32%
Net Profit: +10 901.95 USDT (+109.02%)
Total Trades: 119 (51.26% profitability)
Profit Factor: 1.775
Maximum Accumulated Loss: 4 185.37 USDT (-22.87%)
Average Profit per Trade: 91.67 USDT (+0.7%)
Average Trade Duration: 56 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters. Backtest is calculated using deep backtest option in TradingView built-in strategy tester
How to Use:
Add the script to favorites for easy access.
Apply to the desired chart and timeframe (optimal performance observed on the 1H chart, ForEx or cryptocurrency top-10 coins with quote asset USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Multi VWAP [MW]Introduction
The Multi VWAP tool extends the concept of using the Anchored Volume Weighted Average Price, popularized by its founder, Brian Shannon, founder of AlphaTrends, and creates automatic AVWAPS for multiple anchor points, such as for 2-day, 3-day, 4-day, 5-day, and custom date anchors as well as automagically creating month-to-date and year-to-date anchors. Currently, most standard VWAP tools allow users to place custom anchored VWAPs, but the routine of doing this for every equity being watched can become cumbersome. This tool makes that process multi-times easier. Brian Shannon is also the author of “Maximum Trading Gains With Anchored VWAP: The Perfect Combination of Price, Time, and Volume”. Available at Amazon.
Settings
Daily VWAP : A continuous line of the the daily Volume Weighted Average Price (VWAP)
Weekly VWAP : A continuous line of the weekly VWAP
2-Day AVWAP : The anchored VWAP from 2 trading days ago (holidays and weekends are excluded in this calculation)
3-Day AVWAP : The anchored VWAP from 3 trading days ago
4-Day AVWAP : The anchored VWAP from 4 trading days ago
5-Day AVWAP : The anchored VWAP from 5 trading days ago. The slope of this line and the position of the price relative to this line can be used to determine trend direction.
10-Day AVWAP : The anchored VWAP from 10 trading days ago
Month-to-Date AVWAP : The anchored VWAP from the beginning of the current month
Year-to-Date AVWAP : The anchored VWAP from the beginning of the current year
Custom Date AVWAP : Sets a date to begin an anchored VWAP starting from any time.
Use only the most recent VWAP for Week, Month, and Year: Toggles on and off the continuous weekly, monthly, and yearly VWAPs
Calculations
This indicator does not provide buy or sell signals. It is simply the VWAP calculated starting from an “anchor point”, or start time. It is the calculated by the summation of Price x Volume / Volume for the period starting at the anchor point.
How to Interpret
According to Brian Shannon, VWAP is an objective measure of what the average trader has paid for a particular equity over a given period, and is the value that large institutional investors frequently use as a trade signal. Therefore, by definition, when the price is above an AVWAP, buyers are in control for that period of time. Likewise, if the price is below the AVWAP, sellers are in control for that period of time.
Shannon also distinguishes the importance of an increasing or decreasing 5 day VWAP, which reflects the price sentiment, objectively, for roughly the last trading week, or 5 trading days. Pricing below a decreasing 5-day VWAP is considered very bearish, while pricing above an increasing 5-day VWAP is considered bullish and is recommended before considering long positions.
Additionally, a custom VWAP can be generated to coincide with important events, such as FOMC meetings, CPI reports, earnings reports, etc.
Practically speaking, price action can tend to change direction when a significant VWAP is hit, voiding buy and sell signals. Like moving averages, this indicator can show, in real-time, how a buy or sell signal should be interpreted. A significant AVWAP line is a point of interest, and can serve as strong support or resistance, because large institutions may be using those values for entries or exits. For a great analysis of how to use AVWAP, visit the AlphaTrends channel on Youtube here or you can buy Brian Shannon’s “Anchored VWAP” book on Amazon.
Other Usage Notes and Limitations
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
Additionally, the indicator may take a little longer to load than usual. On the rare occasion where it fails to load, you may need to remove the indicator and add it back to your chart. Also, if you do encounter this problem, avoid redrawing your chart while the indicator is being added to the screen.
Acknowledgements
This script uses the MarketHolidays library by @Protervus. Also, for debugging, the JavaScript-style Debug Console by @algotraderdev and the TimeFormattingLibrary by @twingall were invaluable. And, of course, without Brian Shannon's books, videos, and interviews, this indicator would would not be possible.
RMB - High and LowDescription:
Introducing the "RMB - High and Low" indicator, a versatile and powerful tool designed for traders who seek a comprehensive view of the market across multiple time frames. This indicator is tailored to identify and display key support and resistance levels, adapting to your chosen time frame - from as short as 15 minutes to as long as a week.
Key Features:
Multi-Time Frame Flexibility : Easily switch between 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, daily, and weekly time frames to align with your trading strategy and market analysis.
Dynamic Support and Resistance Levels : The indicator plots the highest high (resistance) and the lowest low (support) for the selected time frame, providing real-time insights into market behavior and potential pivot points.
Time Frame-Specific Labels : Each resistance and support line is labeled with the corresponding time frame, offering a clear and immediate reference, enhancing your chart analysis and decision-making process.
User-Friendly Interface : A simple and intuitive input interface allows for quick adjustments, making it easy to toggle between different time frames based on your trading needs.
Visual Clarity : Designed with distinct color coding - green for resistance and red for support - ensuring that key levels are easily identifiable at a glance.
Ideal Use Cases:
Day Trading: Utilize shorter time frames to capture quick market movements and identify intraday pivot points.
Swing Trading: Leverage longer time frames to understand broader market trends and establish entry and exit points.
Diverse Strategies: Whether you're scalping, trend following, or employing mean reversion tactics, adapt the indicator to fit your unique approach.
Conclusion:
The "RMB - High and Low" indicator is a must-have tool for traders who demand flexibility and precision in their technical analysis. By offering insights across various time frames, this indicator empowers you to make well-informed decisions, adapt to market changes swiftly, and enhance your trading performance.
CANDLE LEVELS [PRO]This indicator provides you with 55 levels! with labels to help you identify quickly where current price is in relation to the OPEN, CLOSE, HIGH OF DAY and LOW OF DAY to a respective level. Choose from levels as low as the 5 minute time frame all the way up to 200 days. All of the levels except the day's OPEN, HIGH OF DAY AND LOW OF DAY use the PREVIOUS time frame's level. In other words, when you're looking at the "1 DAY HIGH", that's actually the previous day's HIGH OF DAY. Whether you're a scalper on the lower time frames or a swing trader that mainly uses the 1 hour and above, these candle levels can be an invaluable source of support and resistance; in other words you'll often see price bounce off of a level (whether price is increasing or decreasing) once or multiple times and that could be an indication of a price's direction. Another way that you could utilize this indicator is to use it in confluence with other popular signals, such as an EMA crossover. For instance, you could watch as price rises above the 21 EMA all the while price is also crossing up and over the previous day's HIGH OF DAY with a relative volume that's double that of the previous week's average. These are just a few of some potential bullish signals that you could look for to go long on a trade using the candle levels provided.
I've made this indicator extremely customizable:
⚡Each level has 2 labels: 1 "at level" and 1 "at right", each label and price can be disabled
⚡Each label has its own input for label padding. The "at right" label padding input allows you to zoom in and out of a chart without the labels moving along their respective axis
⚡Each label's text can be customized via an "input.string" code base
⚡Each level's label can be changed via a plot style setting to determine if the label is centered with it's respective level or rides along the top of it
⚡Significant figures input allows you to round price up or down
⚡A "bias EMA" tool that color codes the candles and price line to show you where price is in relation to the 21 EMA (or another value that you pick). As a result, this can be an effective visual to help reduce cognitive load
⚡A "fill level" where color is determined by price opening above or below the previous day's close
⚡A "use current close" setting that's great to use in pre-market as it shows you where price is in relation to the previous days' close
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🙏Thanks to (c)satymahajan for the inspiration behind the ATR "previous close" and "bias candle" code base
🙏Thanks to my mentor (c)SimpleCryptoLife for the libraries and extensive code to help create this indicator
Targets For Many Indicators [LuxAlgo]The Targets For Many Indicators is a useful utility tool able to display targets for many built-in indicators as well as external indicators. Targets can be set for specific user-set conditions between two series of values, with the script being able to display targets for two different user-set conditions.
Alerts are included for the occurrence of a new target as well as for reached targets.
🔶 USAGE
Targets can help users determine the price limit where the price might start deviating from an indication given by one or multiple indicators. In the context of trading, targets can help secure profits/reduce losses of a trade, as such this tool can be useful to evaluate/determine user take profits/stop losses.
Due to these essentially being horizontal levels, they can also serve as potential support/resistances, with breakouts potentially confirming new trends.
In the above example, we set targets 3 ATR's away from the closing price when the price crosses over the script built-in SuperTrend indicator using ATR period 10 and factor 3. Using "Long Position Target" allows setting a target above the price, disabling this setting will place targets below the price.
Users might be interested in obtaining new targets once one is reached, this can be done by enabling "New Target When Reached" in the target logic setting section, resulting in more frequent targets.
Lastly, users can restrict new target creation until current ones are reached. This can result in fewer and longer-term targets, with a higher reach rate.
🔹 Dashboard
A dashboard is displayed on the top right of the chart, displaying the amount, reach rate of targets 1/2, and total amount.
This dashboard can be useful to evaluate the selected target distances relative to the selected conditions, with a higher reach rate suggesting the distance of the targets from the price allows them to be reached.
🔶 DETAILS
🔹 Indicators
Besides 'External' sources, each source can be set at 1 of the following Build-In Indicators :
ACCDIST : Accumulation/distribution index
ATR : Average True Range
BB (Middle, Upper or Lower): Bollinger Bands
CCI : Commodity Channel Index
CMO : Chande Momentum Oscillator
COG : Center Of Gravity
DC (High, Mid or Low): Donchian Channels
DEMA : Double Exponential Moving Average
EMA : Exponentially weighted Moving Average
HMA : Hull Moving Average
III : Intraday Intensity Index
KC (Middle, Upper or Lower): Keltner Channels
LINREG : Linear regression curve
MACD (macd, signal or histogram): Moving Average Convergence/Divergence
MEDIAN : median of the series
MFI : Money Flow Index
MODE : the mode of the series
MOM : Momentum
NVI : Negative Volume Index
OBV : On Balance Volume
PVI : Positive Volume Index
PVT : Price-Volume Trend
RMA : Relative Moving Average
ROC : Rate Of Change
RSI : Relative Strength Index
SMA : Simple Moving Average
STOCH : Stochastic
Supertrend
TEMA : Triple EMA or Triple Exponential Moving Average
VWAP : Volume Weighted Average Price
VWMA : Volume-Weighted Moving Average
WAD : Williams Accumulation/Distribution
WMA : Weighted Moving Average
WVAD : Williams Variable Accumulation/Distribution
%R : Williams %R
Each indicator is provided with a link to the Reference Manual or to the Build-In Indicators page.
The latter contains more information about each indicator.
Note that when "Show Source Values" is enabled, only values that can be logically found around the price will be shown. For example, Supertrend , SMA , EMA , BB , ... will be made visible. Values like RSI , OBV , %R , ... will not be visible since they will deviate too much from the price.
🔹 Interaction with settings
This publication contains input fields, where you can enter the necessary inputs per indicator.
Some indicators need only 1 value, others 2 or 3.
When several input values are needed, you need to separate them with a comma.
You can use 0 to 4 spaces between without a problem. Even an extra comma doesn't give issues.
The red colored help text will guide you further along (Only when Target is enabled)
Some examples that work without issues:
Some examples that work with issues:
As mentioned, the errors won't be visible when the concerning target is disabled
🔶 SETTINGS
Show Target Labels: Display target labels on the chart.
Candle Coloring: Apply candle coloring based on the most recent active target.
Target 1 and Target 2 use the same settings below:
Enable Target: Display the targets on the chart.
Long Position Target: Display targets above the price a user selected condition is true. If disabled will display the targets below the price.
New Target Condition: Conditional operator used to compare "Source A" and "Source B", options include CrossOver, CrossUnder, Cross, and Equal.
🔹 Sources
Source A: Source A input series, can be an indicator or external source.
External: External source if 'External" is selected in "Source A".
Settings: Settings of the selected indicator in "Source A", entered settings of indicators requiring multiple ones must be comma separated, for example, "10, 3".
Source B: Source B input series, can be an indicator or external source.
External: External source if 'External" is selected in "Source B".
Settings: Settings of the selected indicator in "Source B", entered settings of indicators requiring multiple ones must be comma separated, for example, "10, 3".
Source B Value: User-defined numerical value if "value" is selected in "Source B".
Show Source Values: Display "Source A" and "Source B" on the chart.
🔹 Logic
Wait Until Reached: When enabled will not create a new target until an existing one is reached.
New Target When Reached: Will create a new target when an existing one is reached.
Evaluate Wicks: Will use high/low prices to determine if a target is reached. Unselecting this setting will use the closing price.
Target Distance From Price: Controls the distance of a target from the price. Can be determined in currencies/points, percentages, ATR multiples, ticks, or using multiple of external values.
External Distance Value: External distance value when "External Value" is selected in "Target Distance From Price".
buy/sell signals with Support/Resistance (InvestYourAsset) 📣The present indicator is a MACD based buy/sell signals indicator with support and resistance, that can be used to identify potential buy and sell signals in a security's price.
📣It is based on the MACD (Moving Average Convergence Divergence) indicator, which is a momentum indicator that shows the relationship between two moving averages of a security's price.
📣 The indicator also plots support and resistance levels, which can be used to confirm buy and sell signals. The support and resistance can also be used as a stoploss for existing position.
👉 To use the indicator, simply add it to your trading chart. The indicator will plot three sections:
📈 Price and Signals: This section plots the security's price and the MACD buy and sell signals.
📈 MACD Oscillator: This section plots the MACD oscillator, which is a histogram that shows the difference between the two moving averages.
📈 Moving Averages: This section plots the two moving averages that the MACD oscillator is based on.
📈 Support and Resistance: This section plots support and resistance levels, which are calculated based on the security's recent price action.
👉 To identify buy and sell signals, you can look for the following:
📈 Buy signal: When shorter Moving Average crosses over longer Moving Average.
📈 Sell signal: When shorter moving average crosses under longer moving average.
📈 You can also look for divergences between the MACD oscillator and the security's price. A divergence occurs when the MACD oscillator is moving in one direction, but the security's price is moving in the opposite direction. Divergences can be a sign of a potential trend reversal.
👉 To confirm buy and sell signals, you can look for support and resistance levels take a look at below snapshot. If a buy signal occurs at a support level, it is a stronger signal than if it occurs at a random price level. Similarly, if a sell signal occurs at a resistance level, it is a stronger signal than if it occurs at a random price level.
⚡ Here is a example of how to use the indicator to identify buy signal:
☑ Add the indicator to your trading chart.
☑Look for a buy signal when short MA crosses over Long MA.
☑Look for the buy signal to occur at a support level.
☑Enter a long position at the next candle.
☑Place a stop loss order below the support level.
☑Take profit when the MACD line crosses below the signal line, or when the security reaches a resistance level.
⚡ Here is an example of how to use the indicator to identify a sell signal:
☑Add the indicator to your trading chart.
☑Look for a sell signal, when shorter moving average crosses under longer moving average.
☑Look for the sell signal to occur at a resistance level.
☑Enter a short position at the next candle.
☑Place a stop loss order above the resistance level.
☑Take profit when the MACD line crosses above the signal line, or when the security reaches a support level.
✅Things to consider while using the indicator:
📈Look for buy signals in an uptrend and sell signals in a downtrend. This will increase the likelihood of your trades being successful.
📈Place your stop losses below the previous swing low or support for buy signals and above the previous swing high or resistance for sell signals. This will help to limit your losses if the trade goes against you.
📈Consider taking profits at key resistance and support levels. This will help you to lock in your profits and avoid giving them back to the market.
Follow us for timely updates regarding indicators that we may publish in future and give it a like if you appreciate the indicator.
Extended Parallel ChannelsThis indicator provides an enhanced version of the popular Parallel Channel tool by allowing channel boundaries to be extended above and below the primary channel. It can also serve as a general tool for drawing parallel lines and grid lines to aid technical analysis.
🟠 Application
There are two primary ways extended channels can provide valuable insights:
🔵 Support and Resistance Levels
When prices break out of a channel, they often encounter strong resistance at approximately the 100% extension point. Breakout traders can utilize the extended channel boundary to place take-profit orders. Meanwhile, reversal traders can look for entry opportunities at this level.
🔵 Grid / Martingale Trading
Grid Trading and Martingale Trading strategies rely heavily on grid lines. This indicator streamlines that process by enabling traders to effortlessly plot grid lines across the chart.
🟠 Instructions
Upon adding the indicator, the user will be prompted to set the channel boundaries by placing three anchor points on the chart. The first two anchors determine one boundary line, while the third anchor determine the other boundary line.
Once the three anchors are positioned, the indicator automatically plots the resulting channel as well as the extended lines. The anchor points are highlighted as movable blue circles, allowing the user to dynamically adjust the channel formation by dragging the anchors to new locations as needed.
SMA Crossover Support & Resistance [Rami_LB]This indicator draws a horizontal line on the price chart at the point where two pre-defined SMA (Simple Moving Average) lines intersect. It is most useful for identifying crossed SMA lines on the 1-hour chart and then trading on smaller chart intervals.
For optimal performance, it is recommended to customize the values of the SMA lines individually for each currency pair, as these values can vary from one pair to another. To do this, switch to the 1-hour chart and adjust the SMA parameters until you visually observe that these settings would yield favorable results based on historical data. Certainly, you can also adjust the length of the lines accordingly when you switch from the 1-hour chart to smaller timeframes.
Please note that this indicator allows traders to visually identify potential trend changes and crossovers between short-term and long-term moving averages, aiding in decision-making for trading strategies.
Confluence Buy-Sell Indicator with Fibonacci The script is a "Confluence Indicator with Fibonacci" designed to work on the TradingView platform. This indicator combines multiple technical analysis strategies to generate buy and sell signals based on user-defined confluence criteria. Here's a breakdown of its features:
Confluence Criteria: Users can enable or disable various strategies like MACD, RSI, Bollinger Bands, Divergence, Fibonacci, and Moving Average. The number of strategies that need to align for a signal to be generated can be set by the user.
Strategies Included:
MACD Strategy: Uses the Moving Average Convergence Divergence method to identify buy/sell opportunities.
RSI Strategy: Utilizes the Relative Strength Index to detect overbought or oversold conditions.
Bollinger Bands Strategy: Incorporates Bollinger Bands to identify volatility and potential buy/sell signals.
Divergence Strategy: A basic implementation that detects bullish and bearish divergences using the RSI.
Fibonacci Strategy: Uses Fibonacci retracement levels to determine potential support and resistance levels.
Moving Average Strategy: Employs a crossover system between the 50-period and 200-period simple moving averages.
Additional Features:
Support & Resistance: Identifies major support and resistance levels from the last 50 bars.
Pivot Points: Calculates pivot points to determine potential turning points.
Stop Loss Levels: Automatically calculates and plots stop-loss levels for buy and sell signals.
NYC Midnight Level: Option to display the New York City midnight price level.
Visualization: Plots buy and sell signals on the chart with green and red markers respectively.
Adequate Category:
"Technical Analysis Indicators & Overlays" or "Strategy & Scripting Tools".
VWAP Balance ZonesVWAP Balance Zones (VBZ) Is based on 3 concepts.
Many Traders use VWAP to help determine Price Trends.
Trends are typically identified by new Highs or new Lows.
Balanced is found when Supply and Demand are mostly Equal.
VBZ tracks the daily, weekly, and monthly highs and lows; Then plots the average (50%) between the VWAP and the respective extremes.
50% VWAP Zones can be considered significant since they attempt to identify the equilibrium between market participants within the current trend, serving as key reference points to consider for decision making. >While in an uptrend, Buyers may see price falling to the Hi 50% as an attractive value entry for the continuation upwards.
>While ALSO in an uptrend, Sellers may see price falling to the Hi 50% as a change in sentiment with more downwards movement on the way.
Because of these conflicting mindsets, these zones are thought to display areas of balance between buyers and sellers, which can serve as potential decision points throughout the day.
VBZ Draws Zones from the Daily (High/Low/Close) VWAPs and the Day's (High/Low/Close) extremes as seen below.
Technically speaking, an average between vwap and extreme is a single point, to make these into zones I am using multiple sources for vwap and tracking different points of the bar throughout the day (ex. Close VWAP & Daily Highest Close)
Weekly and Monthly are only displaying the Average Price between the VWAP and the (Weekly or Monthly) High/Low.
These hold up as important levels for speculation; however, since most action will be discovered at the daily zones, I am not displaying the zones for the Weekly and Monthly to keep noise to a minimum.
Unique Behaviors:
- Weekly values are hidden on the first day of the week since they are similar to the daily values on the first day of the week.
- Monthly values are hidden in the first week of the month for the same reason.
Delta Zones Buy/Sell PressureScript Description:
Delta Zones Buy/Sell Pressure Indicator
Description:
The "Delta Zones Buy/Sell Pressure" indicator, created by the original author "scarf", is a technical tool that unveils key areas of buying and selling pressure in the market. This indicator utilizes the concept of Delta, calculating differences between open, close, high, and low prices. When these differences exceed a threshold determined by the user-defined standard deviation, areas of intense buying (indicated by green boxes) and selling pressure (indicated by red boxes) on the chart are identified.
How It Works:
The indicator calculates Delta using various combinations of candle prices to determine buying and selling pressure. When Delta surpasses a certain level, indicated by the user-defined standard deviation, visual signals in the form of boxes on the chart are generated. These boxes highlight specific areas where buying or selling pressure is particularly strong, aiding traders in identifying potential entry and exit points in the market.
How to Use:
* When a green box is drawn, it indicates strong buying pressure in the market. This can be interpreted as a signal to consider long positions.
* When a red box is drawn, it indicates strong selling pressure in the market. This can be interpreted as a signal to consider short positions.
* Use these signals in combination with your own analysis and risk management strategies to make informed trading decisions.
Originality:
What makes this indicator original is its unique approach to identifying specific areas of buying and selling pressure. By calculating Delta in multiple ways and utilizing standard deviation as a filter, this indicator provides clear and concise visual signals about market activity. The combination of these features distinguishes it as a valuable tool for traders seeking a better understanding of market behavior. This modification differs from the original by displaying the information on the price chart with horizontal bars, below each delta, instead of an oscillator at the bottom similar to the volume indicator.
Final Recommendations:
Consider Market Trends:
Before making any trading decisions using the Delta Zones Buy/Sell Pressure Indicator, it is crucial to analyze the prevailing market trends. Assess the overall direction of the market, whether it's trending upward, downward, or moving sideways. Align your trades with the dominant trend to increase the probability of successful outcomes. The indicator's signals can be more reliable when they align with the broader market trend.
Evaluate Macro-Economic Factors:
Additionally, take into account macro-economic factors that could influence price movements. Factors such as economic indicators, geopolitical events, interest rate decisions, and global market sentiments can significantly impact the financial markets. Stay updated with relevant news and economic reports to anticipate potential market shifts. Understanding the broader economic context can help you interpret the indicator's signals within a more informed framework.
Practice Risk Management:
Regardless of the signals provided by the Delta Zones Buy/Sell Pressure Indicator, always implement effective risk management strategies. This includes setting stop-loss orders, diversifying your portfolio, and only risking a small percentage of your trading capital on each trade. By managing your risk, you can protect your investments and ensure longevity in the market, even during volatile periods.
Continuous Learning and Adaptation:
Financial markets are dynamic and constantly evolving. Continuously educate yourself about new trading strategies, technical analysis tools, and economic developments. Stay open to adapting your trading approach based on changing market conditions. Regularly reviewing your trading strategy and adjusting it according to your experiences and market feedback can significantly enhance your trading performance over the long term.
Seek Professional Advice if Necessary:
If you are uncertain about specific market trends, indicators, or economic factors, don't hesitate to seek guidance from financial advisors or professionals. Their expertise can provide valuable insights and help you make well-informed decisions, especially in complex or uncertain market environments.
By incorporating these recommendations into your trading approach, you can enhance your decision-making process, mitigate risks, and increase your overall chances of successful trading outcomes. Remember, the key to successful trading lies not only in the tools you use but also in your ability to interpret them within the broader market context.
Predictive Channels [LuxAlgo]The Predictive Channels indicator is a real-time estimate of a trend channel. The indicator returns 2 resistances, 2 supports, and an average line.
🔶 USAGE
The Predictive Channels attempt to find a real-time estimate of an underlying linear trend in the price, the returned supports/resistances are constructed from this estimate.
The area between the price and the estimated trend is also highlighted, with a green color when the price is above the estimated trend, indicating a bullish variation relative to the trend, and a red color indicating a bearish variation.
Price deviating significantly from an estimated trend will return new channels. The Factor setting controls the allowed distance between the price and the trend estimate, with higher values allowing for greater distances and less frequent channels.
The Slope setting will affect the steepness of the channels, with lower values returning steeper channels, this can cause the price to more quickly deviate from the estimated trend, increasing the frequency at which new channels are created.
🔶 SETTINGS
Factor: Multiplicative factor, determines the allowed distance between the price and an estimated trend before a new channel is constructed.
Slope: Controls the line steepness of the channels, with lower values returning steeper lines.
Order Block v1Hello Traders :)
I am Only Fibonacci.
While coding this indicator, I examined many concepts and decided to blend them.
I took the method shared by most traders and added different perspectives and options.
First of all, you can choose how many order block regions you want to see on the screen.
Note: The levels displayed on the screen are the sum of bears and bulls.
You can also choose whichever you want to see, bearish or bullish.
You can specify the precision of pivot points.
Whether you want to select a zone with a body or a zone with a wick, you can see this in the settings.
You can extend the regions infinitely with the right extension option.
Histogram-based price zonesThis indicator provides a new approach to creating price zones that can be used as support and resistance. The approach does not use pivot points or Fibonacci levels. Instead, it uses the frequency of occurence of local maxima and minima to determine zones of interest where price often changed direction.
The algorithm is as follows:
- Gather price data from the last Lookback trading periods
- Calculate rolling minima and rolling maxima along the price points with window size Window size
- Build a histogram from the rolling extrema which are binned into different zones. The number of bins and therefore the width of a zone can be adjusted with the parameter Zone width factor
- Select only the top fullest bins. The number of bins selected for plotting can be controlled with Zone multiplier
The result are a number of boxes that appear on the chart which mark levels of interest to watch for. You can combine multiple instances of this indicator on different settings to find zones that are very relevant.
Shown as an example is the Nasdaq 100 futures ( NQ1! ) on the D timeframe with levels built from the last 100 periods with default settings. The boxes are the only output of the indicator, no signals are created.
Support and Resistance: Triangles [YinYangAlgorithms]Overview:
Triangles have always been known to be the strongest shape. Well, why wouldn’t that likewise apply to trading? This Indicator will create Upwards and Downwards Triangles which in turn create Support and Resistance locations. For example, we find 2 highs that meet the criteria (within deviation %, Minimum Distance and Lookback Distance). We calculate the distance between these two and create an Equilateral Triangle Downwards (You can adjust the % if you want more of an Isosceles Triangle). The midpoint (tip) of this triangle is the Support and the bottom (base) of it is the Resistance. The exact opposite applies for an Upwards Triangle.
The reason why Triangles may make for good Support and Resistance locations is the % 's used, much like the fibonacci, use ratios relevant in nature and everywhere in the world around us, so why not for trading too?
Tutorial:
If you look at the locations we’ve circled above, all of them exhibit strong rejections are predictive Support and Resistance locations plotted by the triangles created. There can only ever be 1 Upward and 1 Downward Triangle at a time, so when a new one is created, the Support and Resistance locations are moved.
If you scroll back far enough you’ll notice the Triangles disappear but their Support and Resistance locations are still plotted. This has to do with the fact you are allowed only so many Lines plotted and when a new Triangle is created, an old one will be removed. The Support and Resistance locations however will stay.
If we look at the example above, you can see the Support and Resistance locations the Triangles made here may have helped predict where the price would struggle to surpass.
By default the Look Back Distance is set to 50 and the Min Distance is 10 (settings used in all previous examples). However, you can modify these to make Triangles more ‘Rare’ and therefore the Support and Resistance locations change less. In the example above for Instance we left Look Back Distance to 50 but changed Min Distance from 10 to 25. This results in Support and Resistance locations that may hold better in the long term.
If we scroll back a bit, we can see the settings ‘Look Back Distance’ 50 and ‘Minimum Distance’ 25 had done a decent job at predicting the ATH resistance and many Support and Resistance locations around it. Keep in mind, previous results don’t mean future results, but Triangles may create ratios which apply well to trading.
We will conclude our Tutorial here. Hopefully you can see the benefit to the ratio Triangles make when predicting Support and Resistance locations.
Settings:
Show Triangles: If all you want to know is the Support and Resistance locations, there’s no need to draw the Triangles.
Triangle Zones: What types of triangles should we create our zones for? Options are Upward, Downward, Both, None.
Max Deviation Allowed: Maximum Deviation up or down from the last bars High/Low for potential to create a Triangle.
Lookback Distance: How far back we look to see for potential of a High/Low within Deviation range.
Min Distance: This is so triangles are spaced properly and not from 2 bars beside each other. Min distance allocated between 2 points to create a Triangle.
Bar Percent Increase: How much % multiplier do we apply for each bar spacing of the triangle. 0.005 creates a close to Equilateral Triangle, but other values like 0.004 and 0.006 seem to work well too.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
Machine Learning: Support and Resistance [YinYangAlgorithms]Overview:
Support and Resistance is normally based upon Pivot Points and Highest Highs and Lowest Lows. Many times coders even incorporate Volume, RSI and other factors into the equation. However there may be a downside to doing a pure technical approach based on historical levels. We live in a time where Machine Learning is becoming more and more used; thus we have decided to create a Machine Learning Support and Resistance Projection based Indicator. Rather than using traditional Support and Resistance calculations using historical data, we have taken a rather different approach. This Indicator instead attempts to Predict and Project where Support and Resistance locations will be based on a Machine Learning Model using a form of KNN (k-Nearest Neighbors).
Since this indicator creates a Projection of where it deems Support and Resistance will be, it has the ability to move its Support and Resistance before the price even gets to it if it believes it will surpass its projections. This may create a more accurate placement of Support and Resistance as they’re not based on historical levels.
This Indicator does not Repaint.
How it works:
This Indicator makes its projections based on the source you provide (by default close) of the previous bar and submits the source, RSI and EMA to our Projection Function to get its projection of the current bar.
The Projection function essentially calculates potential movement after finding the differences between the source the MA from the current bar, previous bar and average over the span of Machine Learning Length.
Potential movement is defined as:
Average Difference + Average(Machine Learning Average, Average Last Distance)
Average Difference: (Absolute value of Current Source - Current MA) - (Absolute value of Machine Learning Average - Machine Learning MA)
Average Last Distance: Average(Current Source - Current MA, Previous Source - Previous MA)
It then predicts the next bars directional movement (bullish or bearish bar) using several factors:
Previous Source > Previous MA
Current Source - Current MA > Average Source - Average MA
Current RSI > Previous RSI
Current RSI > 30 and Previous RSI <= 30
Current RSI < 70 and Previous RSI >= 70
This helps us to predict the direction the next bar may move.
We then calculate a multiplier that we apply to our Potential Movement value to get our final result which is our Current Bars Close Projection.
Our multiplier is calculated using:
(Current RSI > 30 and Previous RSI <= 30) OR (Current RSI < 70 and Previous RSI >= 70)
Current Source - Current MA > Previous Source - Previous MA
We then create an array and fill it with the previous X projections (Machine Learning Length) and send it to another function. This function, if told to, will sort the data accordingly and then output the KNN average of the length given.
We calculate and plot various KNN lengths to create different Zones:
Strong Support: Length of 2 but sort the data Ascending (low to high)
Strong Resistance: Length of 2 but sort the data Descending (high to low)
Support: Length of Machine Length Length / 10 or Min of 2 sorted by Ascending
Resistance: Length of Machine Length Length / 10 or Min of 2 sorted by Descending
There are also 4 other plots you may be wondering what they are, there is your AVG, VWMA, Long Term Memory and Current Projection.
By default your Current Projection is disabled in settings but you can enable it if you are curious to see how the projections for each close are calculated. It is, however, not a crucial point of interest (white line).
The average is simply the average value of the Machine Learning Data (purple line).
The VWMA is a VWMA calculation applied to our Data over a length specified in settings (by default 1)(blue line). The VWMA is crucial when combined with the Avg as they can cross over and under each other. These crosses represent potential Bullish and Bearish zones.
Lastly, but certainly not least, we have the Long Term Memory (maroon line). The Long Term Memory can be displayed either as an ‘Average’, ‘Hard Line’ or ‘None’. The Long Term Average is only updated every Machine Learning Length Bar Index’s and is populated with the average of the Machine Learning Data. For Instance, if Machine Learning Length is set to 100, the Long Term Memory is only updated every 100 bars, and since its length is the same as the Machine Learning Length, that means its data is composed of 10,000 bars worth of data. The Long Term Memory may be very beneficial for determining where Support and Resistance lie over the Long Term within a Machine Learning Algorithm. When set to ‘Average’ it plots the connection lines diagonally, and although they may be more visually appealing, they’re less useful when it comes to actually seeing support and resistance as generally speaking, support and resistance lie on the horizontal. When set to ‘Hard Line’ the Long Term Memory is connected with hard lines and holds the price value until the next time it is updated. This makes it much more useful for potentially identifying Support and Resistance.
Tutorial:
Here is an overview of what the Indicator looks like, now let's start to dissect it.
In the example above we can see how all of the lines between the Major Support and Resistance zones may act as BOTH Support and Resistance depending on which side the price is currently on. In the circle on the left, we can see how it can fluctuate between the two. If you look at the circle on the right, we can see how the Average line acts as a strong support before it fails to maintain it. Generally speaking, most Support and Resistance locations may potentially fail to hold after 3 tests, as the Average did in this example.
As you can see, the Support and Resistance doesn’t wait to be tested before adjusting, which is why there are 2 lines which create their zones. The inner line is the Support/Resistance and the outer line is the Strong Support/Resistance. The Yellow Circle shows the inner line was able to calculate the moving resistance correctly and then adjusted accordingly as it was projecting the price to keep increasing. However, if you look at the White Circle, you can see that since there was first a crash, and then parabolic movement, that the inner zone could not move and predict the resistance as well as the outer zone could.
We consider the price to be ‘Overvalued’ when it is above the VWMA (blue line) and ‘Undervalued’ when it is below the VWMA. It is considered ‘fair’ price when it is within the VWMA to Average zone (between the blue and purple lines). If you look at the example above, you’ll notice where the two yellow circles are, it is not only considered ‘Overvalued’, but it then proceeds to ride the inner resistance line upwards. This is common when the market is overly bullish and vice versa when it is bearish. Please keep in mind, although it is common, it doesn’t mean a correction can’t happen.
In this example above we look at the last bull run that may have started due to the halving. This bull run was very bullish as you can see in the example above. The price was constantly sitting within the Resistance Zone and the VWMA that was very close to it was constantly acting as a Support. Naturally, due to the Algorithm used in this Indicator, as the momentum starts to slow down, the VWMA (blue line) will start to space out more and more from the Resistance Zone. This doesn’t mean the momentum is gone, it just means it may be slowing down.
Unfortunately we have to study the Bear Market with a different perspective than the Bull Market. However, there are still some similarities within the two. If you refer to the example above and the previous example, you can clearly see that the Bull Market loves to stay with the Resistance Zone and use the VWMA as a Support. However, the Bear Market does not. This is a normal occurrence, however we can see from the example above you may see a correction / horizontal movement when the Outer Support Line is touched. If you look at all 3 yellow circles, the Outer Support Line was touched, then either a small correction or horizontal consolidation occurred.
We will conclude our Tutorial here, hopefully you’ll be able to benefit from a moving Support and Resistance calculated with Machine Learning that projects its locations, rather than using traditional calculations.
Settings:
Source: This source is the base for all our calculations
Machine Learning Length: How much projection data are we storing and using to make calculations.
Smoothing Length: We need to smooth calculations such as RSI, EMA and VWMA. What length are we smoothing it with?
VWMA ML Projection Length: How far into our Machine Learning data should we average for our VWMA. Please note the 'Smoothing Length' is still applied here after getting the Projection Average.
Long Term Memory: Long term memory has the same storage length but is only updated once per Machine Learning Length. For instance, if Machine Learning Length is 100, it will save the Average of our data once every 100 bars. This means its memory is an average of 10,000 bars of Machine Learning. 'Average' connects its values diagonally whereas 'Hard Line' holds its value until it changes.
Use Average Last Distance In Potential Movement: This can help accuracy but generally also displaces the Support and Resistance by projecting it further.
Show Current Projection: Projections occur for each bar, and our Machine Learning utilizes these projections by storing and evaluating them. This toggle will display the Current Projection Line which is used to create all our Projections.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
