Multi-Feature IndicatorThe Multi-Feature Indicator combines three popular technical analysis tools — RSI, Moving Averages (MA), and MACD — into a single indicator to provide unified buy and sell signals. This script is designed for traders who want to filter out noise and focus on signals confirmed by multiple criteria.
Features:
RSI (Relative Strength Index):
Measures momentum and identifies overbought (70) and oversold (30) conditions.
A signal is triggered when RSI crosses these thresholds.
Moving Averages (MA):
Uses a short-term moving average (default: 9 periods) and a long-term moving average (default: 21 periods).
Buy signals occur when the short-term MA crosses above the long-term MA, indicating an uptrend.
Sell signals occur when the short-term MA crosses below the long-term MA, indicating a downtrend.
MACD (Moving Average Convergence Divergence):
A trend-following momentum indicator that shows the relationship between two moving averages of an asset's price.
Signals are based on the crossover of the MACD line and its signal line.
Unified Buy and Sell Signals:
Buy Signal: Triggered when:
RSI crosses above 30 (leaving oversold territory).
Short-term MA crosses above the long-term MA.
MACD line crosses above the signal line.
Sell Signal: Triggered when:
RSI crosses below 70 (leaving overbought territory).
Short-term MA crosses below the long-term MA.
MACD line crosses below the signal line.
Visualization:
The indicator plots the short-term and long-term moving averages on the price chart.
Green "BUY" labels appear below price bars when all buy conditions are met.
Red "SELL" labels appear above price bars when all sell conditions are met.
Parameters:
RSI Length: Default is 14. This controls the sensitivity of the RSI.
Short MA Length: Default is 9. This determines the short-term trend.
Long MA Length: Default is 21. This determines the long-term trend.
Use Case:
The Multi-Feature Indicator is ideal for traders seeking higher confirmation before entering or exiting trades. By combining momentum (RSI), trend (MA), and momentum shifts (MACD), it reduces false signals and enhances decision-making.
How to Use:
Apply the indicator to your chart in TradingView.
Look for "BUY" or "SELL" signals, which appear when all conditions align.
Use this tool in conjunction with other analysis techniques for best results.
Note:
The default settings are suitable for many assets, but you may need to adjust them for different timeframes or market conditions.
This indicator is meant to assist in trading decisions and should not be used as the sole basis for trading.
Trend Analysis
ROC with AveragesMain Idea
This script provides traders with a comprehensive view of market momentum by calculating the Rate of Change (ROC) and categorizing its impact into averages of positive, negative, and total values.
Key Features
Rate of Change (ROC) Calculation: Measures the percentage change in closing prices over a user-defined period.
Categorical Averages:
Positive Average: Average ROC for upward movements.
Negative Average: Average ROC for downward movements.
Total Average: Aggregate average across all movements.
Dynamic Visualization: Plots ROC alongside its categorized averages for better trend analysis.
Benefits
Simplifies the evaluation of market trends by breaking down data into actionable insights.
Helps traders identify the strength of upward or downward movements.
Offers a clear visual representation for quick decision-making.
This structure highlights the purpose and value of the script while aligning with the Minto Pyramid Principle. Let me know if you'd like further refinements!
الفكرة الرئيسية
يوفر هذا السكربت للمتداولين رؤية شاملة لزخم السوق من خلال حساب معدل التغير (ROC) وتصنيفه إلى متوسطات القيم الإيجابية والسلبية والإجمالية.
المميزات الرئيسية
حساب معدل التغير (ROC): يقيس النسبة المئوية للتغير في أسعار الإغلاق خلال فترة محددة يختارها المستخدم.
المتوسطات التصنيفية:
المتوسط الإيجابي: متوسط معدل التغير للحركات الصعودية.
المتوسط السلبي: متوسط معدل التغير للحركات الهبوطية.
المتوسط الإجمالي: متوسط إجمالي يشمل جميع الحركات.
تصور ديناميكي: يعرض معدل التغير إلى جانب المتوسطات المصنفة لتسهيل تحليل الاتجاهات.
الفوائد
يبسط تقييم اتجاهات السوق من خلال تقسيم البيانات إلى رؤى قابلة للتنفيذ.
يساعد المتداولين على تحديد قوة الحركات الصعودية أو الهبوطية.
يقدم تمثيلاً بصرياً واضحاً لاتخاذ قرارات سريعة ودقيقة.
Heikin Ashi Candles - [Better Overlay]Heikin Ashi Candles - Better Overlay
Heikin Ashi candles are a unique charting technique designed to smooth price data, making it easier to identify trends and potential reversals. The "Heikin Ashi Candles - Better Overlay" indicator takes this concept further by introducing enhancements like a moving average based on the Heikin Ashi values and an overlay of actual price dynamics. This blog explores the functionality and features of this indicator.
Key Features
1. Heikin Ashi Candle Plotting
The indicator calculates Heikin Ashi values (open, high, low, and close) to plot candles directly on the chart. These candles provide a clearer view of market trends by reducing noise commonly seen in standard candlesticks.
- Heikin Ashi Close: The average of open, high, low, and close prices.
- Heikin Ashi Open: A smoothed value derived from the previous Heikin Ashi open and close values.
- Heikin Ashi High/Low: The highest and lowest prices between the Heikin Ashi open, close, and the actual high/low of the period.
The candle colors are intuitive:
- Green: Indicates bullish movement.
- Red: Indicates bearish movement.
The indicator uses semi-transparent candle bodies to ensure better visibility of the actual price chart underneath.
2. Heikin Ashi Moving Average
The indicator includes an optional moving average calculated from the Heikin Ashi values. This moving average helps traders identify the overall trend direction and its strength.
- The length of the moving average is adjustable via input settings.
- The color of the moving average line reflects its trend:
- Green: Uptrend.
- Red: Downtrend.
3. Dynamic Actual Price Line
To maintain a connection with real-time price data, the indicator overlays a dashed line representing the actual closing price of the asset. This feature provides valuable context when analyzing Heikin Ashi data, ensuring traders do not lose sight of the actual price levels.
Customization Options
The indicator offers several customization settings for better usability:
- Heikin Ashi Moving Average:
- Toggle to show or hide the moving average.
- Adjustable length for the moving average, ranging from 1 to 500 periods.
- Candle Styling:
- The colors and transparency levels of the candles are predefined to maintain chart clarity.
- Users can visually distinguish Heikin Ashi data from the actual price chart.
Practical Use Cases
1. Trend Identification
Heikin Ashi candles smooth out noise, making it easier to identify trends. Bullish and bearish candle coloring provides a quick visual cue for market sentiment.
2. Trend Strength and Reversals
The Heikin Ashi moving average serves as a reliable indicator of trend strength. A change in the color of the moving average can indicate a potential trend reversal.
3. Real-Time Price Reference
The dynamic price line ensures traders have a clear reference to the actual closing price, which is crucial for making informed decisions in real-time markets.
Conclusion
The "Heikin Ashi Candles - Better Overlay" indicator is a versatile tool for traders looking to combine the smoothing benefits of Heikin Ashi candles with the precision of real-time price data. Its additional features, like the Heikin Ashi moving average and dynamic price line, make it a comprehensive solution for both trend-following and real-time trading strategies.
This indicator is a great addition to any trader's toolkit, offering clarity and actionable insights without overcomplicating the chart. Give it a try to explore its potential in your trading journey.
Adaptive Trend Flow [QuantAlgo]Adaptive Trend Flow 📈🌊
The Adaptive Trend Flow by QuantAlgo is a sophisticated technical indicator that harnesses the power of volatility-adjusted EMAs to navigate market trends with precision. By seamlessly integrating a dynamic dual-EMA system with adaptive volatility bands, this premium tool enables traders and investors to identify and capitalize on sustained market moves while effectively filtering out noise. The indicator's unique approach to trend detection combines classical technical analysis with modern adaptive techniques, providing traders and investors with clear, actionable signals across various market conditions and asset class.
💫 Indicator Architecture
The Adaptive Trend Flow provides a sophisticated framework for assessing market trends through a harmonious blend of EMA dynamics and volatility-based boundary calculations. Unlike traditional moving average systems that use fixed parameters, this indicator incorporates smart volatility measurements to automatically adjust its sensitivity to market conditions. The core algorithm employs a dual EMA system combined with standard deviation-based volatility bands, creating a self-adjusting mechanism that expands and contracts based on market volatility. This adaptive approach allows the indicator to maintain its effectiveness across different market phases - from ranging to trending conditions. The volatility-adjusted bands act as dynamic support and resistance levels, while the gradient visualization system provides instant visual feedback on trend strength and duration.
📊 Technical Composition and Calculation
The Adaptive Trend Flow is composed of several technical components that create a dynamic trending system:
Dual EMA System: Utilizes fast and slow EMAs for primary trend detection
Volatility Integration: Computes and smooths volatility for adaptive band calculation
Dynamic Band Generation: Creates volatility-adjusted boundaries for trend validation
Gradient Visualization: Provides progressive visual feedback on trend strength
📈 Key Indicators and Features
The Adaptive Trend Flow utilizes customizable length parameters for both EMAs and volatility calculations to adapt to different trading styles. The trend detection component evaluates price action relative to the dynamic bands to validate signals and identify potential reversals.
The indicator incorporates multi-layered visualization with:
Color-coded basis and trend lines (bullish/bearish)
Adaptive volatility-based bands
Progressive gradient background for trend duration
Clear trend reversal signals (𝑳/𝑺)
Smooth fills between key levels
Programmable alerts for trend changes
⚡️ Practical Applications and Examples
✅ Add the Indicator: Add the indicator to your TradingView chart by clicking on the star icon to add it to your favorites ⭐️
👀 Monitor Trends: Watch the basis line and trend band interactions to identify trend direction and strength. The gradient background intensity indicates trend duration and conviction.
🎯 Track Signals: Pay attention to the trend reversal markers that appear on the chart:
→ Long signals (𝑳) appear when price action confirms a bullish trend reversal
→ Short signals (𝑺) indicate validated bearish trend reversals
🔔 Set Alerts: Configure alerts for trend changes in both bullish and bearish directions, ensuring you never miss significant technical developments.
🌟 Summary and Tips
The Adaptive Trend Flow by QuantAlgo is a sophisticated technical tool designed to support trend-following strategies across different market environments and asset class. By combining dual EMA analysis with volatility-adjusted bands, it helps traders and investors identify significant trend changes while filtering out market noise, providing validated signals. The tool's adaptability through customizable EMA lengths, volatility smoothing, and sensitivity settings makes it suitable for various trading timeframes and styles, allowing users to capture trending opportunities while maintaining protection against false signals.
Key parameters to optimize for your trading and/or investing style:
Main Length: Adjust for more or less sensitivity to trend changes (default: 10)
Smoothing Length: Fine-tune volatility calculations for signal stability (default: 14)
Sensitivity: Balance band width for trend validation (default: 2.0)
Visual Settings: Customize appearance with color and display options
The Adaptive Trend Flow is particularly effective for:
Identifying sustained market trends
Detecting trend reversals with confirmation
Measuring trend strength and duration
Filtering out market noise and false signals
Remember to:
Allow the indicator to validate trend changes before taking action
Use the gradient background to gauge trend strength
Combine with volume analysis for additional confirmation
Consider multiple timeframes for a complete market view
Adjust sensitivity based on market volatility conditions
[Marmotte] Support & ResistanceDynamic Support/Resistance Indicator
Available on charts of all symbols, not just Bitcoin.
Timeframe
The chart time to base the support/resistance values on.
This value cannot be less than the current chart timeframe.
ex) Current chart timeframe = 15 minutes, option value = 60 (1 hour) O
ex) Current chart timeframe = 4 hours, option = 60 (1 hour) X
Mode
This is how support/resistance values are calculated.
The “Pivot” option takes the PivotHigh and PivotLow for a specific period of time (number of candles).
The “Normal” option is used to get the Highest and Lowest for a specific time period (number of candles).
Lookback Candle
When set to 20 and the “Pivot” option is selected, the highest price of the 20 candles before the specific candle is selected.
If set to 20 and the “Normal” option is selected, the highest price of the 20 candles before the current candle is selected.
Sensitivity
This option only applies when “General” is selected.
Different support/resistance values calculated based on sensitivity
Extract the reference high/low for the “Lookback Candle” in the selected “Timeframe” based on the “Mode”.
Compare the Bar Index (candle order) of the extracted reference high/low and divide the upside/downside (ex: up if the reference low came before the reference high, down if the reference high came before the reference low, etc.).
Now, based on the baseline high/low and up/down, calculate the , and plot them on the chart.
Updates the extracted values based on the “base value” when the reference high/low for the “calculation period (number of candles)” in the selected “chart time” changes.
The indicator is built with simple logic that automatically identifies tops and bottoms, and then calculates and plots the corresponding Fibonacci retracements and extensions.
Therefore, it is not recommended to trade blindly on the support/resistance plotted by the indicator.
The indicator can be used to enhance the ability of support-resistance lines or to reference support-resistance on longer time frames from shorter time frames. For example, you can set up a 4-hour support/resistance on a 15-minute timeframe. This way, you can see the support/resistance of a higher timeframe that looks like a pullback/recovery in the short term, but is more reliable and can be used as a reference for trading.
The recommended time frame is 4 hour.
Please note that this may not work properly on symbols with too small an amount (e.g. it does not work properly on symbols like 0.005$)
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동적 지지/저항선 인디케이터
비트코인뿐 아니라 모든 심볼의 차트에서 사용가능합니다.
차트 시간
지지/저항 값을 계산에 기본이 될 차트 시간입니다.
이 값은 현재 차트 타임프레임보다 작을 수 없습니다.
ex) 현재 차트 타임프레임 = 15분, 옵션값 = 60(1시간) O
ex) 현재 차트 타임프레임 = 4시간, 옵션값 = 60(1시간) X
베이스 값
지지/저항 값을 계산하는 방법입니다.
"피봇고저" 옵션은 특정 기간(캔들 수)의 PivotHigh, PivotLow를 구하여 사용합니다.
"일반고저" 옵션은 특정 기간(캔들 수)의Highest, Lowest를 구하여 사용합니다.
계산 기간
20으로 설정 후 "Pivot" 옵션을 선택한 경우, 특정 캔들 이전 20개의 캔들 중 해당 캔들이 제일 고가가 높을 때 선택
20으로 설정 후 "Normal" 옵션을 선택한 경우, 현재 캔들 이전 20개의 캔들 중 가장 고가 선택
민감도
해당 옵션은 "Normal"를 선택했을때만 적용됩니다.
민감도에 따라 계산되는 지지/저항 값이 다름
선택한 "차트 시간"에서 "계산 기간(캔들 수)" 동안의 기준 고가/저가를 "모드"에 기반하여 추출합니다.
추출된 기준 고가/저가의 Bar Index(캔들 순서)를 비교하여 상승/하락을 나눕니다. (ex. 기준 저가가 기준 고가보다 먼저 나왔다면 상승, 기준 고가가 기준 저가보다 먼저 나왔다면 하락)
이제 기준 고가/저가와 상승/하락을 토대로 , 을 계산하여 차트에 그립니다.
선택한 "차트 시간"에서 "계산 기간(캔들 수)" 동안의 기준 고가/저가를 "모드"에 기반하여 추출한 값이 변경될 때 업데이트 됩니다.
해당 지표는 고점과 저점을 자동으로 식별하여 상승/하락을 파악 후 그에 맞는 피보나치 되돌림 및 확장을 계산하여 그려주는 간단한 로직으로 만들어졌습니다.
그렇기에 해당 지표에서 그려주는 지지/저항을 맹목적으로 믿고 트레이딩에 임하는 것은 권장하지 않습니다.
해당 지표는 지지저항선의 능력을 키우거나 단기 프레임에서 장기 프레임의 지지저항을 참고하는데 사용할 수 있습니다. 예를 들어서 15분 타임프레임에서 4시간 지지/저항을 설정하여 확인할 수 있습니다. 이렇게되면 단기적으로는 하락/상승처럼 보이지만, 비교적 신뢰도가 더 높은 상위 타임프레임의 지지/저항을 확인하여 매매에 참고로 사용할 수 있습니다.
권장 타임 프레임은 1시간 입니다.
너무 금액이 작은 심볼에선 제대로 동작하지 않을 수 있습니다. (ex. 0.005$와 같은 심볼에서는 제대로 작동하지 않음)
Index Trend MapThe Index Trend Map is a versatile and powerful tool designed to provide a sentiment heatmap for major market indices. This indicator tracks the average trend direction across multiple indices data points, including a default setting for S&P 500 Futures ( NYSE:ES ), Nasdaq 100 Futures ( SEED_ALEXDRAYM_SHORTINTEREST2:NQ ), Dow Jones Futures ( SEED_CRYPTOSLATE_VANTAGEPOINT:YM ), Russell 2000 Futures ( CAPITALCOM:RTY ) and traditionally inverse data points like the VIX– allowing traders to quickly assess overall market sentiment and make more informed trading decisions.
Key Features:
Sentiment Heatmap: Displays a color-coded heatmap for indices, with green indicating bullish sentiment and red indicating bearish sentiment. Each index’s sentiment is calculated on a scale from 0 to 100, with 50 as the neutral point.
Bullish/Bearish Percentages: Real-time calculations of the percentage of indices in bullish or bearish territory are displayed in a dynamic table for easy reference.
Tracks Major Indices: Monitors popular indices or their related futures contracts with the option to include custom tickers.
Inverse Sentiment Options: Allows users to invert sentiment calculations for specific symbols (e.g., VIX or DXY) to reflect their inverse relationship to broader market trends.
Customizable Moving Averages: Choose from SMA, EMA, WMA, or DEMA to tailor the trend calculation to your trading strategy.
Overlay Sentiment Colors on Candles: Option to display sentiment as green (bullish) or red (bearish) directly on price chart candles, enhancing market trend visibility.
Heatmap Visualization:
The heatmap assigns each index a sentiment score based on its calculated average.
Sentiment values above the 50 midline indicate bullish sentiment, while those below 50 indicate bearish sentiment.
Dynamic Table:
Located in the bottom right corner, this table displays real-time percentages of indices that are bullish and bearish. Example: If 4 out of 6 index data points are bullish, the table will show 66.6% bullish and 33.3% bearish.
Best Used For:
Intraday Traders: Assess real-time index sentiment during active market hours to make data-driven trading decisions.
Swing Traders: Monitor index trends over time to identify shifts in market sentiment and positioning opportunities.
Market Breadth Analysis: Identify broader market strength or weakness by analyzing multiple indices simultaneously.
Temporary Help Services Jobs - Trend Allocation StrategyThis strategy is designed to capitalize on the economic trends represented by the Temporary Help Services (TEMPHELPS) index, which is published by the Federal Reserve Economic Data (FRED). Temporary Help Services Jobs are often regarded as a leading indicator of labor market conditions, as changes in temporary employment levels frequently precede broader employment trends.
Methodology:
Data Source: The strategy uses the FRED dataset TEMPHELPS for monthly data on temporary help services.
Trend Definition:
Uptrend: When the current month's value is greater than the previous month's value.
Downtrend: When the current month's value is less than the previous month's value.
Entry Condition: A long position is opened when an uptrend is detected, provided no position is currently held.
Exit Condition: The long position is closed when a downtrend is detected.
Scientific Basis:
The TEMPHELPS index serves as a leading economic indicator, as noted in studies analyzing labor market cyclicality (e.g., Katz & Krueger, 1999). Temporary employment is often considered a proxy for broader economic conditions, particularly in predicting recessions or recoveries. Incorporating this index into trading strategies allows for aligning trades with potential macroeconomic shifts, as suggested by research on employment trends and market performance (Autor, 2001; Valetta & Bengali, 2013).
Usage:
This strategy is best suited for long-term investors or macroeconomic trend followers who wish to leverage labor market signals for equity or futures trading. It operates exclusively on end-of-month data, ensuring minimal transaction costs and noise.
Divergence-Weighted clouds V 1.0Comprehensive Introduction to Divergence-Weighted Clouds V 1.0 (DW)
In financial markets, the analysis of volume and price plays a fundamental role in identifying trends, reversals, and making trading decisions. Volume indicates the level of market interest and liquidity focused on an asset, while price reflects changes in supply and demand. Alongside these two elements, market volatility, support and resistance levels, and cash flow are also critical factors that help analysts form a comprehensive view of the market. The Divergence-Weighted Clouds V 1.0 (DW) indicator is designed to simultaneously analyze these fundamental elements and other important market dynamics. To achieve this, it utilizes data generated from 13 distinct indicators, each measuring specific aspects of the market:
Trend and Momentum: Analyzing the direction and strength of price movements.
Volume and Cash Flow: Understanding the inflow and outflow of capital in the market.
Oscillators: Identifying overbought and oversold conditions.
Support and Resistance Levels: Highlighting key price levels.
The Core Challenge: Standardizing Diverse Data
The primary challenge lies in the fact that the outputs of these indicators differ significantly in scale and meaning. For example:
Volume often generates very large values (e.g., millions of shares).
Oscillators provide data within fixed ranges (e.g., 0 to 100).
Price-based metrics may vary in entirely different scales (e.g., tens or hundreds of units).
These differences make direct comparison of the data impractical. The DW indicator resolves this challenge through an advanced mathematical methodology:
Normalization and Hierarchical Evaluation:
To standardize the data, a process called hierarchical EMA evaluation is employed. Initially, the raw outputs of each indicator are computed over different timeframes using Exponential Moving Averages (EMA) based on prime-number intervals.
Hierarchical Scoring:
A pyramid-like structure is used to evaluate the performance of each indicator. This method examines the relationships and distances between EMAs for each indicator and assigns a numerical score.
Final Integration and Aggregation:
The scores of all 13 indicators are then mathematically aggregated into a single number. This final value represents the overall market performance at that moment, enabling a unified interpretation of volume, price, and volatility.
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Indicators Used in DW
To achieve this comprehensive analysis, DW leverages 13 carefully selected indicators, each offering unique insights into market dynamics:
Trend and Momentum
- ALMA (Arnaud Legoux Moving Average): Reduces lag for faster trend identification.
- Aroon Up: Analyzes the stability of uptrends.
- ADX (Average Directional Index): Measures the strength of a trend.
Volume and Cash Flow
- CMF (Chaikin Money Flow): Identifies cash flow based on price and volume.
- EFI (Elder’s Force Index): Evaluates the strength of price changes alongside volume.
- Volume Delta: Tracks the balance between buying and selling pressure.
- Raw Volume: Analyzes unprocessed volume data.
Oscillators
- Fisher Transform: Normalizes data to detect price reversals.
- MFI (Money Flow Index): Identifies overbought and oversold levels.
Support, Resistance, and Price Dynamics
- Ichimoku Lines (Tenkan-sen & Kijun-sen): Analyzes support and resistance levels.
- McGinley Dynamic: Minimizes errors caused by rapid price movements.
- Price Hierarchy: Evaluates the relative position of prices across timeframes.
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Example: Hierarchical Scoring for Price Analysis
To illustrate how the DW indicator processes data, let’s take the price as an example and analyze it using the first four prime numbers (2, 3, 5, and 7) as intervals for Exponential Moving Averages (EMAs). This example will demonstrate how the indicator evaluates price relationships and assigns a hierarchical score.
Step-by-Step Calculation:
1. Raw Data:
Let’s assume the closing prices for a specific asset over recent days are as follows:
Day 1: 100
Day 2: 102
Day 3: 101
Day 4: 104
Day 5: 103
Day 6: 105
Day 7: 106
2. Calculate EMAs for Prime Number Intervals:
Using the prime-number intervals (2, 3, 5, 7), we calculate the EMAs for these timeframes:
EMA(2): Averages the last 2 closing prices equal to 105.33
EMA(3): Averages the last 3 closing prices equal to 104.25
EMA(5): Averages the last 5 closing prices equal to 103.17
EMA(7): Averages the last 7 closing prices equal to 102.67
3. Compare EMAs Hierarchically:
To assign a score, the relationships between the EMAs are analyzed hierarchically. We evaluate whether each smaller EMA is greater or less than the larger ones:
Compare EMA(2) to EMA(3), EMA(5), and EMA(7):
EMA(2) > EMA(3):105.33>104.25 => +1
EMA(2) > EMA(5): 105.33>103.17 => +1
EMA(2) > EMA(7): 105.33 > 102.67 => +1
Compare EMA(3) to EMA(5) and EMA(7):
EMA(3) > EMA(5) : 104.25>103.17 => +1
EMA(3) > EMA(7):104.25 >102.67 => +1
Compare EMA(5) to EMA(7):
EMA(5) > EMA(7):103.17>102.67 => +1
Assign a Score:
Each positive comparison adds +1 to the score. In this example:
Total Score for Price = 1+1+1+1+1+1+1=6
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Logic Behind Scoring:
The score reflects the "steepness" or "hierarchy" of price movement across different timeframes:
A higher score indicates that shorter EMAs are consistently above longer ones, signaling a strong upward trend.
A lower score or negative values would indicate the opposite (e.g., short-term prices lagging behind long-term averages, signaling weakness or potential reversal).
This method ensures that even complex data points (like price, volume, or oscillators) can be distilled into a single, comparable numerical value. When repeated across all 13 indicators, it enables the DW indicator to create a unified, normalized score that represents the overall market condition.
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Settings and Customization in Divergence-Weighted Clouds V 1.0 (DW)
The Divergence-Weighted Clouds V 1.0 (DW) indicator provides extensive customization options to empower traders to fine-tune the analysis according to their specific needs and trading strategies. Each of the 13 indicators is fully customizable through the settings menu, allowing adjustments to parameters such as lookback periods, sensitivity, and calculation methods. This flexibility ensures that DW can adapt seamlessly to a wide range of market conditions and asset classes.
Key Features of the Settings Menu
1. Global Settings:
Lookback Periods: Define the timeframe for data aggregation and analysis across all indicators.
Normalization Settings: Adjust parameters to refine the process of scaling diverse outputs to a comparable range.
Divergence Sensitivity: Control the weight given to indicators deviating from the average, enabling a focus on outliers or broader trends.
2. Indicator-Specific Settings:
Each of the 13 indicators has its own dedicated section in the settings menu for precise customization. Examples include:
ALMA (Arnaud Legoux Moving Average):
Window Size: Set the number of bars used for calculating the average.
Offset: Control the sensitivity of trend detection.
Sigma: Adjust the smoothing factor for the calculation.
Aroon Up:
Length: Modify the lookback period for identifying highs and evaluating uptrends.
ADX (Average Directional Index):
DI Length: Specify the period for calculating directional indicators (DI).
ADX Smoothing: Adjust the smoothing period for trend strength analysis.
3. Oscillator Settings:
Fisher Transform:
Length: Customize the period for normalization and detecting reversals.
Money Flow Index (MFI):
Length: Set the timeframe for analyzing overbought and oversold conditions.
4. Volume and Cash Flow Settings:
Chaikin Money Flow (CMF):
Length: Define the period for analyzing cash flow based on price and volume.
Volume Delta:
Timeframe: Select a custom timeframe for analyzing buying and selling pressure.
5. Support and Resistance Settings:
In the Support and Resistance category of the DW indicator, we address the logic behind four components:
McGinley Dynamic
Price Hierarchy
Base Line
Conversion Line
The settings structure for this section primarily focuses on McGinley Dynamic, while the other three elements—Price Hierarchy, Base Line, and Conversion Line—operate based on predefined values derived from the mathematical structure and logic of the DW indicator. Let’s explore this in detail:
McGinley Dynamic
Length: The only customizable setting in this category. Users can adjust the length parameter to tailor the responsiveness of the McGinley Dynamic to different market conditions. McGinley Dynamic adapts dynamically to the speed of price changes, reducing lag and minimizing false signals. Its flexibility allows it to serve as both a trendline and a support/resistance guide.
Price Hierarchy
The Price Hierarchy component in DW leverages a pyramid structure and triangular scoring based on prime-number intervals (e.g., 2, 3, 5, 7). This methodology ensures a mathematically robust framework for evaluating the relative position of prices across multiple timeframes.
Why No Settings for Price Hierarchy?
The unique properties of prime numbers make them ideal for constructing this hierarchical scoring system. Changing these intervals would compromise the integrity of the calculations, as they are specifically designed to ensure precision and consistency. Therefore, no customization is allowed for this component in the settings menu.
Conversion Line and Base Line
The Conversion Line (Tenkan-sen) and Base Line (Kijun-sen) are integral components derived from DW’s scoring methodology and represent short-term and medium-term equilibrium levels, respectively. These lines are calculated using the Ichimoku framework, which provides a reliable and well-recognized mathematical basis:
Conversion Line: The average of the highest high and lowest low over a fixed period of 9 bars.
Base Line: The average of the highest high and lowest low over a fixed period of 26 bars./list]
Both lines are utilized in DW as part of the 13 generated indicator variables to assess market equilibrium.
Why Default Values for Conversion and Base Lines?
These values are fixed to the default Ichimoku parameters to:
- Ensure consistency with the broader Ichimoku logic for users familiar with its methodology.
- Prevent confusion in the settings menu, as customization of these parameters is unnecessary for DW’s scoring system.
Important Note: While these lines are derived using Ichimoku logic, they are not standalone Ichimoku components but are embedded into DW’s mathematical structure. In the next section, we will elaborate on how the Ichimoku framework is employed for the graphical visualization of DW’s calculations.
Displaying the Results of 13 Indicator Integration in DW Indicator
The Divergence-Weighted Clouds V 1.0 (DW) employs a rigorous methodology to integrate 13 distinct indicators into a single, normalized output. Here's how the process works, followed by an explanation of the visualization strategy leveraging Ichimoku logic.
Simultaneous Evaluation of 13 Indicators
1. Mathematical Integration Logic:
Normalization: The outputs of all 13 indicators (e.g., ALMA, ADX, CMF) are normalized into comparable ranges, ensuring compatibility despite their diverse scales.
Hierarchical Scoring with Prime Intervals: For each indicator, Exponential Moving Averages (EMAs) are calculated using prime-number intervals (e.g., 2, 3, 5, 7). These EMAs are evaluated through a triangular scoring system, creating individual scores for each indicator.
Divergence Weighting: Indicators showing significant divergence from group averages are given higher weights, amplifying their influence on the final score.
2. Unified Score Calculation:
The normalized and weighted outputs of all 13 indicators are aggregated into a single score.
This score represents the overall behavior of the market, based on the simultaneous evaluation of trend, volume, oscillators, and price metrics.
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Challenge of Visualizing Results
The next challenge lies in effectively visualizing the score to make it actionable for traders. The DW indicator resolves this challenge by leveraging the Ichimoku framework.
Why Ichimoku for Visualization?
The Ichimoku system is known for its clear and predictive visualization capabilities, making it ideal for representing DW’s complex calculations:
1. Cloud-Based Display: Ichimoku Clouds (Kumo) are intuitive for identifying equilibrium zones and future price movements.
2. Projection Ability: The forward-projected Leading Spans (Senkou A and B) provide predictive insights based on past and current data.
3. Trader Familiarity: Ichimoku is widely recognized, reducing the learning curve for users.
Implementation of Ichimoku Logic
1. Mapping Score to Price:
The score is normalized and mapped to price using a scale factor, ensuring alignment with price data while preserving DW’s analytical integrity.
2. Ichimoku Cloud Lines:
Conversion Line (Tenkan-sen): Short-term equilibrium based on the score, calculated using a 9-period high-low average.
Base Line (Kijun-sen): Medium-term equilibrium calculated using a 26-period high-low average.
Leading Spans (Senkou A & B):
- Senkou A: Average of the Conversion and Base Lines.
- Senkou B: High-low average over a 52-period window.
Lagging Span (Chikou): Unlike traditional Ichimoku, DW’s Lagging Span reflects the Nebula Score shifted backward, providing a historical perspective on combined indicator behavior
3. Cloud Dynamics:
The Kumo Cloud is filled based on the relative position of Senkou A and Senkou B, using color shading to distinguish bullish and bearish conditions.
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Customization in Computational Settings
The core computational components of DW allow some customization for sensitivity adjustments:
Divergence Sensitivity: Controls the weight assigned to indicators with higher divergence.
Volatility Normalization: Adjusts the lookback period for volatility adjustments, refining the Nebula Score scaling.
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Advantages of Using Ichimoku Logic
1. Predictive Visualization:
The forward-projected cloud provides actionable insights for identifying trends and reversals earlier than traditional Ichimoku.
2. Aligned Lagging Span:
DW’s Lagging Span represents the normalized evaluation of all 13 indicators, offering a unique perspective beyond just closing price.
3. Intuitive Interpretation:
Traders familiar with Ichimoku can easily interpret DW’s outputs, making it accessible and effective.
Conclusion
By combining rigorous mathematical evaluation with Ichimoku’s visualization strengths, DW provides traders with a clear, actionable representation of market conditions. This ensures that the complex integration of 13 indicators is not only analytically robust but also visually intuitive.
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Comparison Between Divergence-Weighted Clouds V 1.0 (DW) and Traditional Ichimoku: NVIDIA 4H Chart
The chart showcases a side-by-side comparison of the Divergence-Weighted Clouds V 1.0 (DW) indicator (on the left) and the Traditional Ichimoku indicator (on the right). This comparison highlights the differences in how the two indicators interpret market trends and project equilibrium zones using their respective methodologies.
Key Observations and Insights
1. Base and Conversion Line Movements:
On Thursday, November 21, 2024, 17:30, in the DW indicator (left chart), the Base Line crosses above the Conversion Line, signaling a shift in medium-term equilibrium relative to short-term equilibrium.
On the Traditional Ichimoku (right chart), this crossover is not reflected until Monday, November 25, 2024, 17:30, occurring 4 days later.
Significance:
The DW indicator identifies the crossover and equilibrium shift significantly earlier due to its ability to process and normalize data from 13 distinct indicators.
This predictive capability provides traders with earlier insights, enabling them to anticipate changes and adjust their strategies proactively.
2. Cloud Dynamics and Leading Spans:
In both charts, the cloud (Kumo) represents the equilibrium and potential support/resistance zones.
The DW indicator’s Leading Span A and Leading Span B react faster to market changes, creating a more responsive and forward-looking cloud compared to the traditional Ichimoku.
Example:
On the DW chart (left), the cloud begins shifting to reflect the crossover earlier, signaling potential future support/resistance levels.
In the Ichimoku chart (right), the cloud reacts more slowly, lagging behind the DW indicator.
3. Lagging Span (Chikou Line):
In the DW indicator, the Lagging Span is based on the normalized output of the 13 indicators, reflecting their aggregated behavior rather than just the closing price shifted backward as in the traditional Ichimoku.
This provides a unique perspective on past market strength, aligning the Lagging Span more closely with the overall market condition derived from DW’s computations.
4. Price Alignment:
In the DW indicator, all normalized scores and values are mapped to align with price action, ensuring that the visualization remains intuitive while incorporating complex calculations.
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Advantages of DW Over Traditional Ichimoku
1.Earlier Signal Detection:
As demonstrated by the Base and Conversion Line crossover, DW detects changes in market equilibrium 4 days earlier, giving traders a significant advantage in anticipating price movements.
2. Enhanced Predictive Power:
The Leading Spans in DW’s cloud react faster, providing clearer forward-looking support and resistance zones compared to the traditional Ichimoku.
3. Comprehensive Data Integration:
While the Ichimoku relies solely on price-based calculations, DW integrates outputs from 13 distinct indicators, offering a more robust and comprehensive analysis of market conditions.
4. Alignment with Market Behavior:
The DW Lagging Span reflects the aggregated score of multiple indicators, aligning more closely with overall market sentiment and providing a deeper context than the price-based Lagging Span in Ichimoku.
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Final Note
The chart comparison illustrates how the Divergence-Weighted Clouds V 1.0 (DW) indicator outperforms traditional Ichimoku in terms of signal responsiveness and predictive accuracy. By combining the mathematical rigor of DW’s calculations with the visual clarity of Ichimoku, traders gain a powerful tool for analyzing market trends and making informed decisions.
Look at the DW chart (left) to see how early signals and cloud adjustments provide actionable insights compared to the slower reactions of the Traditional Ichimoku chart (right).
BK MA Horizontal Lines
Indicator Description:
I am incredibly proud and excited to share my first indicator with the TradingView community! This tool has been instrumental in helping me optimize my positioning and maximize my trades.
Moving Averages (MAs) are among the top three most crucial indicators for trading, and I believe that the Daily, Weekly, and Monthly MAs are especially critical. The way I’ve designed this indicator allows you to combine MAs from your Daily timeframe with one or two from the Weekly or Monthly timeframes, depending on what is most relevant for the specific product or timeframe you’re analyzing.
For optimal use, I recommend:
Spacing your chart about 11 spaces from the right side.
Setting the Labels at 10 in the indicator configuration.
Keeping the line thickness at size 1, while using size 2 for my other indicator, "BK BB Horizontal Lines", which follows a similar concept but applies to Bollinger Bands.
If you find success with this indicator, I kindly ask that you give back in some way through acts of philanthropy, helping others in the best way you see fit.
Good luck to everyone, and always remember: God gives us everything. May all the glory go to the Almighty!
Consecutive Candles DevisSoHi Traders !!!
Level Calculation:
50% and 23.6% Fibonacci levels are calculated based on the open and close of the previous candles.
Consecutive Candle Check:
For an uptrend: Each candle's low must not touch the 50% levels of the previous candles.
For a downtrend: Each candle's high must not touch the 50% levels of the previous candles.
Pullback Level:
When a long signal is triggered, the current candle's low is recorded as a pullback level.
When a short signal is triggered, the current candle's high is recorded as a pullback level.
Breakout and Signal Generation:
If the price breaks above the calculated level, a long signal is generated; if it breaks below, a short signal is generated.
These signals are visualized on the chart.
Continuity:
The system checks the last signal to ensure the validity of new signals, maintaining the consistency of consecutive signals.
Relative StrengthThis strategy employs a custom "strength" function to assess the relative strength of a user-defined source (e.g., closing price, moving average) compared to its historical performance over various timeframes (8, 34, 20, 50, and 200 periods). The strength is calculated as a percentage change from an Exponential Moving Average (EMA) for shorter timeframes and a Simple Moving Average (SMA) for longer timeframes. Weights are then assigned to each timeframe based on a logarithmic scale, and a weighted average strength is computed.
Key Features:
Strength Calculation:
Calculates the relative strength of the source using EMAs and SMAs over various timeframes.
Assigns weights to each timeframe based on a logarithmic scale, emphasizing shorter timeframes.
Calculates a weighted average strength for a comprehensive view.
Visualizations:
Plots the calculated strength as a line, colored green for positive strength and red for negative strength.
Fills the background area below the line with green for positive strength and red for negative strength, enhancing visualization.
Comparative Analysis:
Optionally displays the strength of Bitcoin (BTC), Ethereum (ETH), S&P 500, Nasdaq, and Dow Jones Industrial Average (DJI) for comparison with the main source strength.
Backtesting:
Allows users to specify a start and end time for backtesting the strategy's performance.
Trading Signals:
Generates buy signals when the strength turns positive from negative and vice versa for sell signals.
Entry and exit are conditional on the backtesting time range.
Basic buy and sell signal plots are commented out (can be uncommented for visual representation).
Risk Management:
Closes all open positions and cancels pending orders outside the backtesting time range.
Disclaimer:
Backtesting results do not guarantee future performance. This strategy is for educational purposes only and should be thoroughly tested and refined before risking capital.
Additional Notes:
- The strategy uses a custom "strength" function that can be further customized to explore different timeframes and weighting schemes.
- Consider incorporating additional technical indicators or filters to refine the entry and exit signals.
- Backtesting with different parameters and market conditions is crucial for evaluating the strategy's robustness.
Levels Strength Index [BigBeluga]Levels Strength Index provides a unique perspective on market strength by comparing price positions relative to predefined levels, delivering a dynamic probability-based outlook for potential up and down moves.
🔵 Idea:
The Levels Strength Index analyzes the price position against a series of calculated levels, assigning probabilities for upward and downward movements. These probabilities are displayed in percentage form, providing actionable insights into market momentum and strength. The color-coded display visually reinforces whether the price is predominantly above or below key levels, simplifying trend analysis.
🔵 Key Features:
Dynamic Probability Calculation: The indicator compares the current price position relative to 10 predefined levels, assigning an "Up" and "Down" percentage. For example, if the price is above 8 levels, it will display 80% upward and 20% downward probabilities.
Color-Coded Trend Visualization: When the price is above the majority of levels, the display turns green, signaling strength. Conversely, when below, it shifts to orange, reflecting bearish momentum.
Clear Up/Down Probability Labels: Probabilities are displayed with directional arrows next to the price, instantly showing the likelihood of upward or downward moves.
Probability-Based Price Line: The price line is color-coded based on the probability percentages, allowing a quick glance at the prevailing trend and market strength. This can be toggled in the settings.
Customizable Transparency: Adjust the transparency of the levels to seamlessly integrate the indicator with your preferred chart setup.
Fully Configurable: Control key parameters such as the length of levels and price color mode (trend, neutral, or none) through intuitive settings.
🔵 When to Use:
The Levels Strength Index is ideal for traders looking to:
Identify strong upward or downward market momentum using quantified probabilities.
Visualize price strength relative to key levels with intuitive color coding.
Supplement existing level-based strategies by combining probabilities and market positioning.
Gain instant clarity on potential market moves with percentage-based insights.
Whether you're trading trends or ranges, this tool enhances decision-making by combining level-based analysis with a dynamic probability system, offering a clear, actionable perspective on market behavior.
Compare TOTAL, TOTAL2, TOTAL3, and OTHERSCompare TOTAL, TOTAL2, TOTAL3, and OTHERS
This indicator compares the performance of major cryptocurrency market cap indices: TOTAL, TOTAL2, TOTAL3, and OTHERS. It normalizes each index's performance relative to its starting value and visualizes their relative changes over time.
Features
- Normalized Performance: Tracks the percentage change of each index from its initial value.
- Customizable Timeframe: Allows users to select a base timeframe for the data (e.g., daily, weekly).
- Dynamic Labels: Displays the latest performance of each index as a label on the chart, aligned to the right of the corresponding line for easy comparison.
- Color-Coded Lines: Each index is assigned a distinct color for clear differentiation:
-- TOTAL (Blue): Represents the total cryptocurrency market cap.
-- TOTAL2 (Green): Excludes Bitcoin.
-- TOTAL3 (Orange): Excludes Bitcoin and Ethereum.
-- OTHERS (Red): Represents all cryptocurrencies excluding the top 10 by market cap.
- Baseline Reference: Includes a horizontal line at 0% for reference.
Use Cases:
- Market Trends: Identify which segments of the cryptocurrency market are outperforming or underperforming over time.
- Portfolio Insights: Assess the impact of Bitcoin and Ethereum dominance on the broader market.
- Market Analysis: Compare smaller-cap coins (OTHERS) with broader indices (TOTAL, TOTAL2, and TOTAL3).
This script is ideal for traders and analysts who want a quick, visual way to track how different segments of the cryptocurrency market perform relative to each other over time.
Note: The performance is normalized to highlight percentage changes, not absolute values.
Santa's Adventure [AlgoAlpha]Introducing "Santa's Adventure," a unique and festive TradingView indicator designed to bring the holiday spirit to your trading charts. With this indicator, watch as Santa, his sleigh, Rudolf the reindeer, and a flurry of snowflakes come to life, creating a cheerful visual experience while you monitor the markets.
Key Features:
🎁 Dynamic Santa Sleigh Visualization : Santa's sleigh, Rudolf, and holiday presents adapt to price movements and chart structure.
🎨 Customizable Holiday Colors : Adjust colors for Santa’s outfit, Rudolf’s nose, sleigh, presents, and more.
❄️ Realistic Snow Animation : A cascade of snowflakes decorates your charts, with density and range adjustable to suit your preferences.
📏 Adaptive Scaling : All visuals scale based on price volatility and market dynamics.
🔄 Rotation by Trend : Santa and his entourage tilt to reflect market trends, making it both functional and fun!
How to Use :
Add the Indicator to Your Chart : Search for "Santa's Adventure" in the TradingView indicator library and add it to your favorites. Use the input menu to adjust snow density, sleigh colors, and other festive elements to match your trading style or holiday mood.
Observe the Market : Watch Santa’s sleigh glide across the chart while Rudolf leads the way, with snowflakes gently falling to enhance the visual charm.
How It Works :
The indicator uses price volatility and market data to dynamically position Santa, his sleigh, Rudolf, and presents on the chart. Santa's Sleigh angle adjusts based on price trends, reflecting market direction. Santa's sleigh and the snowstorm are plotted using advanced polyline arrays for a smooth and interactive display. A festive algorithm powers the snowfall animation, ensuring a consistent and immersive holiday atmosphere. The visuals are built to adapt seamlessly to any market environment, combining holiday cheer with market insights.
Add "Santa's Adventure" to your TradingView charts today and bring the holiday spirit to your trading journey, Merry Christmas! 🎅🎄
Brijesh TTrades candle plot"Brijesh TTrades candle plot" is a powerful and customizable indicator that allows you to overlay higher timeframe candles directly on your chart. Choose your desired timeframe (e.g., Daily, Hourly) and plot up to 10 recent candles with precise control over color, wick style, and width. The candles are offset by 40 bars to the right, providing a clear and unobstructed view of the current price action. Ideal for multi-timeframe analysis and gaining deeper insights into market trends.
Intelligent Support & Resistance Lines (MTF)This script automatically detects and updates key Support & Resistance (S/R) levels using a higher timeframe (MTF) approach. By leveraging volume confirmation, levels are only identified when significant volume (relative to the SMA of volume) appears. Each level is drawn horizontally in real time, and whenever the market breaks above a resistance level (and retests it), the script automatically converts that resistance into support. The opposite occurs if the market breaks below a support level.
Key Features:
Multi-Timeframe (MTF) Data
Select a higher timeframe for more robust S/R calculations.
The script fetches High, Low, Volume, and SMA of Volume from the chosen timeframe.
Automatic Role Reversal
Resistance becomes Support if a breakout retest occurs.
Support becomes Resistance if a breakdown retest occurs.
Dynamic Line Width & Labeling
Each S/R line’s thickness increases with additional touches, making frequently tested levels easier to spot.
Labels automatically display the number of touches (e.g., “R 3” or “S 2”) and can have adjustable text size.
Volume Threshold
Only significant pivots (where volume exceeds a specified multiplier of average volume) are plotted, reducing noise.
Horizontal Offset for Clarity
Lines are drawn with timestamps instead of bar_index, ensuring that old levels remain visible without chart limitations.
Adjustable Maximum Levels
Maintain a clean chart by limiting how many S/R lines remain at once.
How It Works:
Pivot Detection: The script identifies swing highs and lows from the higher timeframe (timeframeSR).
Volume Check: Only pivots with volume ≥ (SMA Volume * volumeThreshold) qualify.
Line Creation & Updates: New lines are drawn at these pivots, labeled “R #” or “S #,” indicating how many times they’ve been touched.
Role Reversal: If price breaks above a resistance and retests it from above, that line is removed from the resistance array and re-created in the support array (and vice versa).
Inputs:
Timeframe for S/R: Choose the higher timeframe for S/R calculations.
Swing Length: Number of bars to consider in a pivot calculation.
Minimum Touches: Minimum required touches before drawing or updating a level.
Volume Threshold (Multiplier): Determines how much volume (relative to SMA) is needed to confirm a pivot.
Maximum Number of Levels: Caps how many S/R lines can be shown at once.
Color for Resistance & Color for Support: Customize your preferred colors for lines and labels.
Label Size: Select from "tiny", "small", "normal", "large", or "huge" to resize the labels.
Disclaimer:
This script is intended for educational purposes and should not be interpreted as financial or investment advice. Always conduct your own research or consult a qualified professional before making trading decisions.
MA Deviation Suite [InvestorUnknown]This indicator combines advanced moving average techniques with multiple deviation metrics to offer traders a versatile tool for analyzing market trends and volatility.
Moving Average Types :
SMA, EMA, HMA, DEMA, FRAMA, VWMA: Standard moving averages with different characteristics for smoothing price data.
Corrective MA: This method corrects the MA by considering the variance, providing a more responsive average to price changes.
f_cma(float src, simple int length) =>
ma = ta.sma(src, length)
v1 = ta.variance(src, length)
v2 = math.pow(nz(ma , ma) - ma, 2)
v3 = v1 == 0 or v2 == 0 ? 1 : v2 / (v1 + v2)
var tolerance = math.pow(10, -5)
float err = 1
// Gain Factor
float kPrev = 1
float k = 1
for i = 0 to 5000 by 1
if err > tolerance
k := v3 * kPrev * (2 - kPrev)
err := kPrev - k
kPrev := k
kPrev
ma := nz(ma , src) + k * (ma - nz(ma , src))
Fisher Least Squares MA: Aims to reduce lag by using a Fisher Transform on residuals.
f_flsma(float src, simple int len) =>
ma = src
e = ta.sma(math.abs(src - nz(ma )), len)
z = ta.sma(src - nz(ma , src), len) / e
r = (math.exp(2 * z) - 1) / (math.exp(2 * z) + 1)
a = (bar_index - ta.sma(bar_index, len)) / ta.stdev(bar_index, len) * r
ma := ta.sma(src, len) + a * ta.stdev(src, len)
Sine-Weighted MA & Cosine-Weighted MA: These give more weight to middle bars, creating a smoother curve; Cosine weights are shifted for a different focus.
Deviation Metrics :
Average Absolute Deviation (AAD) and Median Absolute Deviation (MAD): AAD calculates the average of absolute deviations from the MA, offering a measure of volatility. MAD uses the median, which can be less sensitive to outliers.
Standard Deviation (StDev): Measures the dispersion of prices from the mean.
Average True Range (ATR): Reflects market volatility by considering the day's range.
Average Deviation (adev): The average of previous deviations.
// Calculate deviations
float aad = f_aad(src, dev_len, ma) * dev_mul
float mad = f_mad(src, dev_len, ma) * dev_mul
float stdev = ta.stdev(src, dev_len) * dev_mul
float atr = ta.atr(dev_len) * dev_mul
float avg_dev = math.avg(aad, mad, stdev, atr)
// Calculated Median with +dev and -dev
float aad_p = ma + aad
float aad_m = ma - aad
float mad_p = ma + mad
float mad_m = ma - mad
float stdev_p = ma + stdev
float stdev_m = ma - stdev
float atr_p = ma + atr
float atr_m = ma - atr
float adev_p = ma + avg_dev
float adev_m = ma - avg_dev
// upper and lower
float upper = f_max4(aad_p, mad_p, stdev_p, atr_p)
float upper2 = f_min4(aad_p, mad_p, stdev_p, atr_p)
float lower = f_min4(aad_m, mad_m, stdev_m, atr_m)
float lower2 = f_max4(aad_m, mad_m, stdev_m, atr_m)
Determining Trend
The indicator generates trend signals by assessing where price stands relative to these deviation-based lines. It assigns a trend score by summing individual signals from each deviation measure. For instance, if price crosses above the MAD-based upper line, it contributes a bullish point; crossing below an ATR-based lower line contributes a bearish point.
When the aggregated trend score crosses above zero, it suggests a shift towards a bullish environment; crossing below zero indicates a bearish bias.
// Define Trend scores
var int aad_t = 0
if ta.crossover(src, aad_p)
aad_t := 1
if ta.crossunder(src, aad_m)
aad_t := -1
var int mad_t = 0
if ta.crossover(src, mad_p)
mad_t := 1
if ta.crossunder(src, mad_m)
mad_t := -1
var int stdev_t = 0
if ta.crossover(src, stdev_p)
stdev_t := 1
if ta.crossunder(src, stdev_m)
stdev_t := -1
var int atr_t = 0
if ta.crossover(src, atr_p)
atr_t := 1
if ta.crossunder(src, atr_m)
atr_t := -1
var int adev_t = 0
if ta.crossover(src, adev_p)
adev_t := 1
if ta.crossunder(src, adev_m)
adev_t := -1
int upper_t = src > upper ? 3 : 0
int lower_t = src < lower ? 0 : -3
int upper2_t = src > upper2 ? 1 : 0
int lower2_t = src < lower2 ? 0 : -1
float trend = aad_t + mad_t + stdev_t + atr_t + adev_t + upper_t + lower_t + upper2_t + lower2_t
var float sig = 0
if ta.crossover(trend, 0)
sig := 1
else if ta.crossunder(trend, 0)
sig := -1
Backtesting and Performance Metrics
The code integrates with a backtesting library that allows traders to:
Evaluate the strategy historically
Compare the indicator’s signals with a simple buy-and-hold approach
Generate performance metrics (e.g., mean returns, Sharpe Ratio, Sortino Ratio) to assess historical effectiveness.
Practical Usage and Calibration
Default settings are not optimized: The given parameters serve as a starting point for demonstration. Users should adjust:
len: Affects how smooth and lagging the moving average is.
dev_len and dev_mul: Influence the sensitivity of the deviation measures. Larger multipliers widen the bands, potentially reducing false signals but introducing more lag. Smaller multipliers tighten the bands, producing quicker signals but potentially more whipsaws.
This flexibility allows the trader to tailor the indicator for various markets (stocks, forex, crypto) and time frames.
Disclaimer
No guaranteed results: Historical performance does not guarantee future outcomes. Market conditions can vary widely.
User responsibility: Traders should combine this indicator with other forms of analysis, appropriate risk management, and careful calibration of parameters.
RSI Divergence + Sweep + Signal + Alerts Toolkit [TrendX_]The RSI Toolkit is a powerful set of tools designed to enhance the functionality of the traditional Relative Strength Index (RSI) indicator. By integrating advanced features such as Moving Averages, Divergences, and Sweeps, it helps traders identify key market dynamics, potential reversals, and newly-approach trading stragies.
The toolkit expands on standard RSI usage by incorporating features from smart money concepts (Just try to be creative 🤣 Hope you like it), providing a deeper understanding of momentum, liquidity sweeps, and trend reversals. It is suitable for RSI traders who want to make more informed and effective trading decisions.
💎 FEATURES
RSI Moving Average
The RSI Moving Average (RSI MA) is the moving average of the RSI itself. It can be customized to use various types of moving averages, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Relative Moving Average (RMA), and Volume-Weighted Moving Average (VWMA).
The RSI MA smooths out the RSI fluctuations, making it easier to identify trends and crossovers. It helps traders spot momentum shifts and potential entry/exit points by observing when the RSI crosses above or below its moving average.
RSI Divergence
RSI Divergence identifies discrepancies between price action and RSI momentum. There are two types of divergences: Regular Divergence - Indicates a potential trend reversal; Hidden Divergence - Suggests the continuation of the current trend.
Divergence is a critical signal for spotting weakness or strength in a trend. Regular divergence highlights potential trend reversals, while hidden divergence confirms trend continuation, offering traders valuable insights into market momentum and possible trade setups.
RSI Sweep
RSI Sweep detects moments when the RSI removes liquidity from a trend structure by sweeping above or below the price at key momentum level crossing. These sweeps are overlaid on the RSI chart for easier visualized.
RSI Sweeps are significant because they indicate potential turning points in the market. When RSI sweeps occur: In an uptrend - they suggest buyers' momentum has peaked, possibly leading to a reversal; In a downtrend - they indicate sellers’ momentum has peaked, also hinting at a reversal.
(Note: This feature incorporates Liquidity Sweep concepts from Smart Money Concepts into RSI analysis, helping RSI traders identify areas where liquidity has been removed, which often precedes a trend reversal)
🔎 BREAKDOWN
RSI Moving Average
How MA created: The RSI value is calculated first using the standard RSI formula. The MA is then applied to the RSI values using the trader’s chosen type of MA (SMA, EMA, RMA, or VWMA). The flexibility to choose the type of MA allows traders to adjust the smoothing effect based on their trading style.
Why use MA: RSI by itself can be noisy and difficult to interpret in volatile markets. Applying moving average would provide a smoother, more reliable view of RSI trends.
RSI Divergence
How Regular Divergence created: Regular Divergence is detected when price forms HIGHER highs while RSI forms LOWER highs (bearish divergence) or when price forms LOWER lows while RSI forms HIGHER lows (bullish divergence).
How Hidden Divergence created: Hidden Divergence is identified when price forms HIGHER lows while RSI forms LOWER lows (bullish hidden divergence) or when price forms LOWER highs while RSI forms HIGHER highs (bearish hidden divergence).
Why use Divergence: Divergences provide early warning signals of a potential trend change. Regular divergence helps traders anticipate reversals, while hidden divergence supports trend continuation, enabling traders to align their trades with market momentum.
RSI Sweep
How Sweep created: Trend Structure Shift are identified based on the RSI crossing key momentum level of 50. To track these sweeps, the indicator pinpoints moments when liquidity is removed from the Trend Structure Shift. This is a direct application of Liquidity Sweep concepts used in Smart Money theories, adapted to RSI.
Why use Sweep: RSI Sweeps are created to help traders detect potential trend reversals. By identifying areas where momentum has exhausted during a certain trend direction, the indicator highlights opportunities for traders to enter trades early in a reversal or continuation phase.
⚙️ USAGES
Divergence + Sweep
This is an example of combining Devergence & Sweep in BTCUSDT (1 hour)
Wait for a divergence (regular or hidden) to form on the RSI. After the divergence is complete, look for a sweep to occur. A potential entry might be formed at the end of the sweep.
Divergences indicate a potential trend change, but confirmation is required to ensure the setup is valid. The RSI Sweep provides that confirmation by signaling a liquidity event, increasing the likelihood of a successful trade.
Sweep + MA Cross
This is an example of combining Devergence & Sweep in BTCUSDT (1 hour)
Wait for an RSI Sweep to form then a potential entry might be formed when the RSI crosses its MA.
The RSI Sweep highlights a potential turning point in the market. The MA cross serves as additional confirmation that momentum has shifted, providing a more reliable and more potential entry signal for trend continuations.
DISCLAIMER
This indicator is not financial advice, it can only help traders make better decisions. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur. Therefore, one should always exercise caution and judgment when making decisions based on past performance.
HPDR Bands IndicatorThe HPDR Bands indicator is a customizable tool designed to help traders visualize dynamic price action zones. By combining historical price ranges with adaptive bands, this script provides clear insights into potential support, resistance, and midline levels. The indicator is well-suited for all trading styles, including trend-following and range-bound strategies.
Features:
Dynamic Price Bands: Calculates price zones based on historical highs and lows, blending long-term and short-term price data for responsive adaptation to current market conditions.
Probability Enhancements: Includes a probability plot derived from the relative position of the closing price within the range, adjusted for volatility to highlight potential price movement scenarios.
Fibonacci-Like Levels: Highlights key levels (100%, 95%, 88%, 78%, 61%, 50%, and 38%) for intuitive visualization of price zones, aiding in identifying high-probability trading opportunities.
Midline Visualization: Displays a midline that serves as a reference for price mean reversion or breakout analysis.
How to Use:
Trending Markets: Use the adaptive upper and lower bands to gauge potential breakout or retracement zones.
Range-Bound Markets: Identify support and resistance levels within the defined price range.
Volatility Analysis: Observe the probability plot and its sensitivity to volatility for informed decision-making.
Important Notes:
This script is not intended as investment advice. It is a tool to assist with market analysis and should be used alongside proper risk management and other trading tools.
The script is provided as-is and without warranty. Users are encouraged to backtest and validate its suitability for their specific trading needs.
Happy Trading!
If you find this script helpful, consider sharing your feedback or suggestions for improvement. Collaboration strengthens the TradingView community, and your input is always appreciated!
RM - VWMA -> ZscoreRM - VWMA -> Zscore Indicator
The VWMA -> Zscore Indicator blends volume-weighted moving averages (VWMA) with Z-score analysis, offering traders a robust method to evaluate market dynamics and identify momentum shifts with precision.
Key Features
Volume-Weighted Moving Average (VWMA):
Incorporates price and True Range (TR) for weighted averages.
Smoothing option with triple exponential moving average (TEMA) for cleaner signals.
Z-Score Analysis:
Quantifies deviations of VWMA from the mean using standard deviation.
Detects overbought (positive Z-scores) or oversold (negative Z-scores) conditions.
Diversified VWMA Inputs:
Applies VWMA across multiple lengths (+/- offsets) to reflect short-term and long-term trends.
Averages results for a comprehensive market assessment.
Dynamic Bar Visualization:
Customizable red or green bars based on trend direction.
Gradient intensity reflects Z-score strength.
How It Works
VWMA Calculation:
Utilizes price and True Range to calculate VWMA, factoring in both volume and volatility.
Optional smoothing reduces noise for a refined display.
Z-Score Conversion:
Converts VWMA data into Z-scores for relative strength measurement.
Positive Z-scores suggest bullish pressure.
Negative Z-scores indicate bearish pressure.
Scoring Mechanism:
Evaluates multiple VWMA inputs for directional trends.
Aggregates scores into an average for overall market.
Bar Coloring:
Red or green bars represent market conditions (bullish or bearish).
Gradient bar colors show the strength of Z-score deviations.
How to Use
Spot Momentum Shifts:
Monitor Z-scores crossing above or below 0 for potential trend reversals.
Confirm Market Trends:
Use bar colors and average scores to validate market direction.
Green bars indicate upward momentum; red bars signal downward momentum.
Customization Options:
Adjust VWMA lengths, Z-score lengths, and smoothing settings to fit your strategy.
Enable or disable specific bar color options for visual preference.
Example Use Cases
Trend Confirmation:
Validate the market direction before entering a trade.
Reversal Points:
Identify overbought/oversold zones using extreme Z-score values.
Market Pressure Visualization:
Use gradient colors to gauge the intensity of buying or selling pressure.
Disclaimer
The VWMA -> Zscore Indicator is a tool for technical analysis and does not provide guaranteed results. Always complement its insights with other indicators and risk management practices.
Awesome Oscillator Twin Peaks Strategy
1. The indicator identifies both bullish and bearish twin peaks:
- Bullish: Two consecutive valleys below zero, where the second valley is higher than the first
- Bearish: Two consecutive peaks above zero, where the second peak is lower than the first
2. Visual elements:
- AO histogram with color-coding for increasing/decreasing values
- Triangle markers for confirmed twin peak signals
- Zero line for reference
- Customizable colors through inputs
3. Built-in safeguards:
- Minimum separation between peaks to avoid false signals
- Maximum time window for pattern completion
- Clear signal reset conditions
4. Alert conditions for both bullish and bearish signals
To use this indicator:
1. Add it to your TradingView chart
2. Customize the input parameters if needed
3. Look for triangle markers that indicate confirmed twin peak patterns
4. Optional: Set up alerts based on the signal conditions
Ichimoku ACE ClubA. Overview:
This script is a custom implementation of the Ichimoku Cloud indicator for the TradingView platform, built using Pine Script version 4. It adds additional features like custom "Knife" lines and circle markers for specific data points. The indicator overlays on the chart and plots various elements of the Ichimoku system, including the Tenkan, Kijun, Chikou, and Kumo Cloud.
B. Inputs:
1. Tenkan (TS): This is the short-term moving average line (default period: 9).
2. Kijun (KJ): This is the medium-term moving average line (default period: 17).
3. Knife1 (K1): This line is based on a longer-term moving average (default period: 65).
4. Knife2 (K2): Another long-term moving average line (default period: 129).
5. Chikou Displacement (Chikou_Disp): The Chikou Span is plotted with a delay of 26 periods by default.
6. Displacement (disp): Determines the horizontal shift of the Kumo cloud.
C. Functions:
- `donchian(len)`: This function calculates the Donchian channel, which is the average of the highest high and the lowest low over the given period (len).
- `mf(len, offset)`: This function calculates the highest high and the lowest low over the given period, with an offset applied.
D. Plots:
1. Tenkan, Kijun, Knife1, and Knife2: These are plotted as lines with different colors and thicknesses.
- Tenkan is blue.
- Kijun is red.
- Knife1 is yellow.
- Knife2 is orange.
2. Chikou Span: This is plotted with a displacement and shown in purple.
3. Kumo Cloud: The cloud is formed by plotting two lines, Span A (green) and Span B (magenta), which represent the top and bottom of the cloud, respectively. The space between these lines is filled with a semi-transparent color, either green or magenta, depending on the relative position of the two spans.
E. Circle Markers:
- Additional circle markers are plotted for each of the Tenkan, Kijun, Knife1, and Knife2 lines at various offsets, helping to visualize the historical data points for each of these indicators. These circles are color-coded according to the line they correspond to.
F. Customization:
- The indicator allows customization of the lengths (periods) for Tenkan, Kijun, Knife1, Knife2, and other components via the script's input fields.
G. Conclusion:
This Ichimoku-based indicator provides a detailed view of the market's trend strength and direction. It offers a unique addition with the Knife lines and visual aids like circle markers for specific periods, which helps traders make better-informed decisions based on Ichimoku analysis.
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You can modify the parameters such as `TS`, `KJ`, `K1`, `K2`, and `disp` according to your trading preferences. The colors and line thicknesses can also be adjusted for better visual representation.
Magic Candles PRO [MW]The Magic Candles indicator provides users with low risk/high reward entries on small candles with big volume. It uses calculations that uniquely define high volume/low price movement (volume hammer) candles and engulfing pattern candles. In theory, measuring a volume hammer candle seems relatively simple, but it is in the definition of high and low with respect to volume and price movement, and with respect to each other that requires a novel method of defining the relationship. The definition that is ultimately used gives users the ability to identify candles that typically precede large price movements, because the volume necessary to drive the price exists by definition even though it is not reflected in the size of the current candle.
Similarly, engulfing candle patterns are useful because they show an acceleration of price movement from the previous candle. The difficulty in calculating engulfing candles, as with volume hammer candles, is in the interpretation of candle size, or “engulfing”. In many cases, engulfing simply means that a candle has reversed direction from the previous candle, and the body of the previous candle sits between the open and close of the new candle. Sometimes wicks are used, sometimes they aren’t. Our differentiation is that we allow the user to change “engulfing” to their preference, so that it can include candle bodies, full candles, dojis, and candle patterns where the body of the previous candle is not necessarily in between the open and close of the new candle. It also uses a double stochastic calculation on ATRs that filter out engulfing candles that may not be as meaningful.
Settings
Volume Hammer Candles
ATR Period: The ATR period that is used to compare the candle size against. (Default: 5)
Candle Portion to Use: The candle size can be defined as just the body, or the entire candle. (Default: Candle Body)
Volume Absorption Threshold: The threshold for the volume ratio relative to the candle size ratio. (Default: 4.5)
Volume ATR Period: The ATR period that is used to compare the volume against. (Default: 3)
3 Consecutive Volume increases and 3 Bullish Candles: (Default: ON)
3 Consecutive Volume Increases and 3 Bearish Candles: (Default: ON)
2 Consecutive Volume increases Prior to Current Candle: (Default: ON)
Engulfing Pattern Candles
Show Engulfing Candles: (Default: ON)
Include Candle Wicks in Calculation: (Default: ON)
Show Bullish Candles: (Default: ON)
Show Bearish Candles: (Default: ON)
Use Dojis for Reversed Candles: Typically engulfing candles are compared against candles that are in the opposite direction of the new candle. However, dojis, or candles with small candle bodies and relatively large wicks, can be optionally used to measure against. (Default: OFF)
ATR Period 1: We use 2 levels of stochastic calculation to compare against in order to determine if an engulfing candle is valid. This is the shorter period ATR. (Default: 14)
ATR Period 2: The 2nd of 2 ATR periods used in a 2-level stochastic calculation that’s used to evaluate valid engulfing candles. (Default: 21)
Stochastic Period: The Stochastic Period used for both levels of ATR calculations. (Default: 14)
Smoothing: The period used to “smooth” the stochastic curves. (Default: 3)
Calculations
This indicator uses a comparison between relative volume (raw volume compared to its average true range) and relative price action as determined by candle size (specifically, candle size compared to the average true range of the candle size). The ratio between the relative volume and relative price action are compared as a ratio. Once that ratio hits a defined threshold a signal is generated in the form of a bright yellow bar, which we refer to as a “volume hammer”, because of the heavy volume acting on an unmoving object (price).
The indicator also identifies engulfing candle patterns by
Determining the candle body size or full candle size.
Checking to see if there was a reversal of direction, or checking to see if the first candle was a doji (small body with relatively large wicks).
Calculating the stochastic ATR patterns across two periods in order to normalize the ATR behavior for comparison.
Calculating the delta between those stochastic ATRs
Calculating the stochastic patterns of the delta between the stochastic ATRs to add further sensitivity to the comparison between candles.
How to Use
Volume Hammer
When a bright yellow bar appears in the lower window it means that the ratio of relative volume to relative price movement is very high, which indicates that a volatile move will occur within the next candle or so. In this scenario using a small risk that is not much larger than the candle itself can be paired with a large reward/risk ratio when setting a take profit target.
For example, if the body of a candle has a range of less than $0.02 and the full candle is less than $0.10 in range, then a $0.10 stop can be used with the expectation that the large volume will generate a volatile move in one direction or the other. The expected move is generally 3x the size of the full candle, but typically more.
Sometimes, however, that 3x move will reverse and turn into even a larger move in the opposite direction if a key support or resistance level is hit. So, it is very useful to use this indicator with a tool that can identify key support/demand zones and resistance/supply zones such as the Magic Order Blocks or QQQ and SPY Price Levels for equities based on the NASDAQ and S&P 500. It can also be combined with indicators that provide upper and lower bounds like Magic Linear Regression Channel , ATR Bands (Keltner Channel) Wick and SRSI Signals , and/or Bollinger Band Wick and SRSI Signals .
Additionally, the bright yellow candles have color-coded indicators that reflect the behavior of preceding volume behavior.
- Orange Dot - 3 consecutive candles of increasing volume
- Green Dot - 3 consecutive candles of increasing volume with a bullish candle pattern
- Red Dot - 3 consecutive candles of increasing volume with a bearish candle pattern
- Blue Dot - 2 consecutive candles of increasing volume followed by a candle with volume that is greater than the starting candle.
These only reflect the volume and candle pattern. They can provide insight, but should not be used as buy or sell signals, especially when encountered at key price levels.
Engulfing Candle Pattern
Frequently, the bright yellow bar in the lower window will be followed by an engulfing candle in the main chart. Engulfing candle patterns can themselves be useful on their own in a market that is not highly volatile. They tend to be indicative of price reversals, or trend continuations following consolidation. Following an engulfing candle, risk can be set at the “far end” of the candle with the expectation that if it does accurately define the direction, then the price will be less likely to go back to the candle’s starting price.
Other Usage Notes and Limitations
Occasionally a large gray bar will appear that is above the relative volume to relative candle size threshold. This indicates that although there is little price movement when compared to the volume, the actual volume is trailing off. This could lead to a quick move in a bullish or bearish direction, but it potentially would not be as sustained as in the case where volume has been consistently rising.
There are also faded yellow bars that appear when volume is increasing when the relative price movement is small. However, when the ratio of the relative volume is not large enough when compared to the price movement (i.e. it does not meet the threshold requirement) its color remains a dim yellow color.
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.
