Intraday SeasonalityDay trading trend filter indicator designed to hep get better entries or exits based on historical opens and closes each hour.
This indicator is NOT designed as an entry or exit signal. The purpose behind it is to give you statistical information about how likely certain times of day are either bullish, bearish or neutral and use that to confirm or reject other trading signals.
For example you might be anticipating a breakout based on your strategy or another indicator but see that the next few hours are usually bearish and re-evaluate entering the trade.
The Intraday Seasonality indicator calculates the percentage of candles per hour that had a higher close than open.
Default settings are:
- a look-back of 90 days.
- extreme bullish (bright green) above 74%
-extreme bearish (bright red) below 25%
- bullish (green) above 55%
- bearish (red) below 45%
- neutral (white) exactly 50%
- no trend (gray) 46% - 54%
All of these are updatable via the settings.
This indicator is designed to work only on the 1 hour timeframe.
To use the indicator set your local timezone offset in the indicator settings.
*Due to daylight savings and certain timezones changing throughout the year there is a timezone override in the indicator settings if the indicator doesn't pick up the correct local time.
Trendstrength
SMA + Trend Strength + Trailing Stop LossThe 'SMA + Trend Strength + Trailing Stop Loss' indicator was designed for swing trading long positions over the course of days/weeks. The benefit of the indicator is to identify areas where the market of a given asset is showing signs of a strong uptrend, divergences, and fear. A 13-bar simple moving average is color coded to four colors based on 5 given conditions at a time, which are represented as a trend meter on the bottom right of the screen. A trailing stop loss indicator is included to secure your profits or limit your loss in case the market reverses on you unexpected. Please use this indicator responsibly with proper risk management, and never rely on the indicator by itself for buy and sell signals.
When the simple moving average color is green, it means that at least 4 of 5 conditions are confirming a move upwards, this is when you can take an entry into a trade based on your entry strategy. As the trend continues, the color will eventually change to yellow signaling a divergence. This is when you can use your exit strategy to find a good point to sell. It is wise not to take new positions when the color is trending yellow.
If the color changes from yellow to orange, that is a warning sign that the trend is about to change or has begun to change. Prices may have already fallen. However, sometimes the color will change from yellow back to green signaling a continuation of the trend. You can either keep holding or take a new position in this instance.
When the color is red, this signals fear in the market, you should stay out of the market at first. However, as the market consolidates and the color starts changing back to orange, this is an opportunity to take a long position at a reasonably low price.
Simple Moving Average (13-Bar) Color Explanation:
The colors change based on 5 market conditions represented in the trend meter.
Green: Strong Uptrend
Yellow: Divergence Present
Orange: Warning
Red: Fear
Trend Meter Explanation:
The trend meter draws 5 arrows indicating bullish or bearish presence.
LL = Lower Lows - Detects when the market is trending with lower lows.
HH = Higher Highs - Detects when the market is trending with higher highs.
MA = SMA Direction - A formula is used to determine the direction of the SMA.
DI = Directional Index - Identifies when upwards momentum is trending.
RSI = Relative Strength Index - Identifies when the RSI is in an uptrend state.
Note: For advanced users, this indicator has a hidden DMI(4, 4, 4) and RSI(14) indicator used to determine the last two conditions. The Directional Index is based on a DI Plus momentum moving average to determine a momentum trend and the RSI trending over 50 will constitute an uptrend signal as below 50 it will point down.
Trailing stop loss:
The trailing stop loss is determined based on the lowest price of the last 8 bars.
A gray step-line is drawn at the suggested stop activation price.
A red step-line is drawn at the suggested stop limit price.
When the price breaches the trailing stop, a red X will appear below the bar.
You can turn each of these features on or off based on your preference. Happy trading!
Price movement indicatorThis indicator shows us if the price is moving up or down based on the ratio of current price vs previous bar.
If this ratio is above 1 then this indicates that the price is increasing, while if the ratio is below 1 the price is decreasing.
HOW TO USE:
Set the desired EMA length, number of previous bars to compare with and offset.
Markets:
It can be used to all markets.
Vertical Horizontal Moving Average [AneoPsy & alexgrover] Moving average adapting to the strength of the trend, this is made possible by using the square of the vertical-horizontal filter as a smoothing factor. Alerts are included with two different types of conditions available to the user.
Settings
Length : Period of the moving average
Src : Input data for the indicator
Alerts : Types of conditions to be used in the alerts, when set to "VHMA Direction Change" alerts are triggered once the VHMA is either rising or declining, else the alerts are based on the crosses between Src and the VHMA
Usage
The VHMA can be used as a fast or slow-moving average in a moving average crossover system, or as input for other indicators.
VHMA of with length = 25 and sma with length = 200.
VHMA with length = 25 used as input for the RSI with length = 14.
Details
The vertical-horizontal filter is a measure of the strength of the trend and lay in a (0,1) range, to calculate it you just need to divide the rolling range over with the rolling sum of the absolute price changes, squaring the result allow to get lower results with higher values of length .
Squared vertical horizontal filter with length = 50, the value is low when the market is ranging and high when trending.
To set the alerts go in the alert panel, click on create alert, and select VHMA in "condition", choose between the buy or sell alert. If Src = closing price or another indicator dependant on the closing price select in options "once per bar close", if the indicator using the opening or lagged closing prices values as input select "One per bar" instead.
Thanks
Thanks to AneoPsy for adding the color change, the idea to use two kinds of conditions for the alert, and for its feedback, you can follow him
www.tradingview.com
and finally thanks to you for reading and for your support, only one last script left for the month, then we'll start July with some pretty interesting indicators, I hope you'll like them ^^/
Colored Directional Movement and Bollinger Band's Cloud by DGTThis study combines Bollinger Bands, one of the most popular technical analysis indicators on the market, and Directional Movement (DMI), which is another quite valuable technical analysis indicator.
Bollinger Bands used in conjunction with Directional Movement (DMI) may help getting a better understanding of the ever changing landscape of the market and perform more advanced technical analysis
Here are details of the concept applied
1- Plots Bollinger Band’s (BB) Cloud colored based on Bollinger Band Width (BBW) Indicator’s value
Definition
Bollinger Bands (created by John Bollinger ) are a way to measure volatility . As volatility increases, the wider the bands become and similarly as volatility decreases, the gap between bands narrows
Bollinger Bands, in widely used approach, consist of a band of three lines. Likewise common usage In this study a band of five lines is implemented
The line in the middle is a Simple Moving Average (SMA) set to a period of 20 bars (the most popular usage). The SMA then serves as a base for the Upper and Lower Bands. The Upper and Lower Bands are used as a way to measure volatility by observing the relationship between the Bands and price. the Upper and Lower Bands in this study are set to two and three standard deviations (widely used form is only two standard deviations) away from the SMA (The Middle Line), hence there are two Upper Bands and two Lower Bands. The background between two Upper Bands is filled with a green color and the background between two Lower Bands is filled with a red color. In this we have obtained Bollinger Band’s (BB) Clouds (Upper Cloud and Lower Cloud)
Additionally the intensity of the color of the background is calculated with Bollinger Bands Width ( BBW ), which is a technical analysis indicator derived from the standard Bollinger Bands indicator. Bollinger Bands Width, quantitatively measures the width between the Upper and Lower Bands. In this study the intensity of the color of the background is increased if BBW value is greater than %25
What to look for
Price Actions : Prices are almost always within the bands especially at this study the bands of three standard deviations away from the SMA. Price touching or breaking the BB Clouds could be considered as buying or selling opportunity. However this is not always the case, there are exceptions such as Walking the Bands. “Walking the Bands” can occur in either a strong uptrend or a strong downtrend. During a strong trend, there may be repeated instances of price touching or breaking through the BB Clouds. Each time that this occurs, it is not a signal, it is a result of the overall strength of the move. In this study in order to get a better understanding of the trend and add ability to perform some advanced technical analysis Directional Movement Indicator (DMI) is added to be used in conjunction with Bollinger Bands.
Cycling Between Expansion and Contraction : One of the most well-known theories in regards to Bollinger Bands is that volatility typically fluctuates between periods of expansion (Bands Widening : surge in volatility and price breaks through the BB Cloud) and contraction (Bands Narrowing : low volatility and price is moving relatively sideways). Using Bollinger Bands in conjunction with Bollinger Bands Width may help identifying beginning of a new directional trend which can result in some nice buying or selling signals. Of course the trader should always use caution
2- Plots Colored Directional Movement Line
Definition
Directional Movement (DMI) (created by J. Welles Wilder ) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX) , Plus Directional Indicator (+D I) and Minus Directional Indicator (-D I) . ADX's purposes is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to compliment the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.
This study combines all three lines in a single colored shapes series plotted on the top of the price chart indicating the trend strength with different colors and its direction with triangle up and down shapes.
What to look for
Trend Strength : Analyzing trend strength is the most basic use for the DMI. Wilder believed that a DMI reading above 25 indicated a strong trend, while a reading below 20 indicated a weak or non-existent trend
Crosses : DI Crossovers are the significant trading signal generated by the DMI
With this study
A Strong Trend is assumed when ADX >= 25
Bullish Trend is defined as (+D I > -DI ) and (ADX >= 25), which is plotted as green triangle up shape on top of the price chart
Bearish Trend is defined as (+D I < -DI ) and (ADX >= 25), which is plotted as red triangle down shape on top of the price chart
Week Trend is assumed when 17< ADX < 25, which is plotted as black triangles up or down shape, depending on +DI-DI values, on top of the price chart
Non-Existent Trend is assumed when ADX < 17, which is plotted as yellow triangles up or down shape, depending on +DI-DI values, on top of the price chart
Additionally intensity of the colors used in all cases above are defined by comparing ADX’s current value with its previous value
Summary of the Study:
Even more simplified and visually enhanced DMI drawing comparing to its classical usage (may require a bit practice to get used to it)
As said previously, to get a better understanding of the trend and add ability to perform some advanced technical analysis Directional Movement Indicator (DMI) is used in conjunction with Bollinger Bands.
PS: Analysis and tests are performed with high volatile Cryptocurrency Market
Source of References : definitions provided herein are gathered from TradingView’s knowledgebase/library
Disclaimer: The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd tradingview user liable for any possible claim for damages arising from any decision you make based on use of the script
Ehlers Correlation Cycle IndicatorThe Correlation Cycle Indicator was created by John Ehlers (Stocks & Commodities V. 38:06 (8–15)) and this is technically part of three indicators in one so I'm splitting each one to a separate script. This particular indicator was designed for trend direction and trend strength and simply buy when it is green and sell when it turns red. Also keep in mind that the higher the indicator is above the signal then the stronger the trend and when they are close together, conditions get choppy.
Let me know if you would like to see me publish other scripts or if you want something custom done!
Trend Direction Force IndexThis is my own version of the famous Trend Direction Force Index and I modified the original to make my version react quickly to any trend. I have color coded the indicator to make it extremely easy to read so if it is green then buy and red then sell.
This was a custom request so if you would like more then just send me a message!
GRAB or TrendStrength Bars with Highlights[Salty]GRAB or TrendStrength Bars with Propulsion Dots and Highlights for Squeeze Pro, CCI-Arrows, and SlowStoch
This indicator shows GRAB or TrendStrength candles and allows several moving averages to be displayed at the same time.
It has arrows and diamonds above or below the candles to show CCI values above 100 or below -100 with the arrow pointing in the direction of the momentum.
Diamonds indicate slightly weaker momentum than arrows, but still consider strong.
It has background coloring that is light green to show bullish trends and light red to show bearish trends that are derived from slow stochastics.
In general Darker colors are used for down moves and lighter colors are use to show up moves. Also, red indicates bearish, and green indicates bullish throughout.
It has yellow background to show squeezes with additional Squeeze Pro information shown at the bottom of the chart in the form of letters and momentum arrows.
L = Low compression squeeze, S = Normal Squeeze, and H = High Compression Squeeze.
It has a set of propulsion dots for each Moving Average. The trend is consider bullish when green colored dots print, and bearish when red dots print.
3 ATR Keltner channels are printed. The first two show the values used by the squeeze by default
2 Bolinger Bands are displayed based on the values used by the Squeeze by default.
1 VWAP line may be displayed.
TIP: overlaying the TICK symbol is great for confirming a bias where positive values are bullish and negative values are bearish.
Donato Trend Stength IndexThis indicator is a basic way to look at longer periods of time and look for exhaustion based on closes above or below RSI50. The first output is RSI14 the second is a rolling 100 day aggregate of closes where 50 acts as 0. As of now it appears totals of 1200+ /-1200- could be considered overbought / oversold, respectively. Totals near or above / below 2000 / -2000 (respectively) could be great indicators of extreme trend exhaustion and impending reversal.
EQma - Adaptive Smoothing Based On Optimal Markets DetectionIntroduction
"You don’t put sunscreen when there is no sun, you don’t use an umbrella when there is no rain, you don’t use a kite when there is no wind, so why would you use a trend following strategy when there is no trend ?"
This is how i start my 4th paper "A New Technical Indicator For Optimal Markets Detection" where i present two new technical indicators. We talked about the first one, running equity, which aim to detect the best moment to enter trades, based on this new metric i made an adaptive moving average.
You can see the full paper here figshare.com
The Indicator
The moving average is based on exponential averaging and use a smoothing variable alpha based on the running equity metric, in order to calculate alpha the running equity is divided by the optimal equity which show the best returns possible for the conditions used. Basically the indicator work as follow :
When the running equity is close to the optimal equity it means that the price need no/little filtering since it does not contain information that need to be filtered, therefore alpha is high, however when the running equity is far from the optimal equity this mean that the price posses malign information that need to be removed.
This is why the indicator will be closer to the price when length is high :
See the full paper for an explanation on how this work.
I added various options for the indicator, one will reduce the lag by squaring alpha, thus giving for length = 14 :
The efficient option will make use of recursion to provide a more efficient indicator :
In green the efficient version, note how this option can allow a better fit with the price.
Conclusion
This is an indicator but at its core its rather a framework, if you have read the paper you'll see that the conditions are just 1 and -1 that changes with time, basically its like making a strategy with :
Condition = if buy then 1 else if sell then -1 else Precedent value of condition.
So those two indicators allow to give useful and usable information about your strategy. I hope it can be of use for anyone here, if so don't hesitate to send me what you made using the proposed indicator (and with all my indicators in general). If you are writing a paper and you think this indicator could fit in your work then let me know so i can be aware of it :)
Thanks for reading !
Acknowledgement
My papers are quite ridiculous but they still manage to get some views, some researchers don't even reach those number in so little time which is quite unfortunate but also really motivating for me, so thanks to those who take time to read them and give me some feedback :)
Running Equity - A New Indicator For Optimal Markets DetectionIntroduction
Winning trades and gaining profits in trading is not impossible, however having gross profits superior to gross losses is what make trading challenging, it is logical to think that it is better to open a position when the probability of winning the trade is high, such probability can’t be measured with accuracy but a lot of metrics have been proposed in order to help determining when to open positions, technical analysis support the fact that a trending market is the best market condition for opening a position, which is logical when using a trend following strategy, therefore a long-term positive auto-correlated market is optimal for trading, this is why this paper present a new method for detecting optimal markets conditions in order to open a position.
The Indicator
The proposed indicator is based on the assumption that positive returns using a trend following strategy are a strong indication of trend strength, the proposed indicator is built from the conditions of a simple SMA cross trend following strategy, which are to go long when price > SMA and to go short when price < SMA. Then the equity from those conditions is built, in order to provide a more flexible indicator, length control the period of the sum.
When the indicator is positive it means that the market allow for potential returns, it can thus be considered being trending. Else a negative value of the indicator indicate a ranging market that won't allow for returns.
Filtering Bad Trades
The indicator can be used to filter bad trades entries, in this example a Bollinger band breakout strategy is used, without any changes the strategy return the following equity on EURUSD
The proposed indicator is then applied with the following conditions : buy and sell only if Req > 0
With an indicator period = 100 we filtered unprofitable trades.
Conclusion
I presented a new indicator for the detection of optimal markets based on a running equity. I hope both indicators may find applications in technical analysis and help investors get pertinent outputs from them.
it would mean a lot if you could read the original paper : figshare.com
Relative Vigor IndexHere we are looking at a trend strength indicator based on the Relative Vigor Index(RVI). The RVI measures trend strength by comparing the open-close and high-low ranges for the current and three most recent periods. As a zero-centered oscillator, the RVI oscillates above and below zero to signal the strength of the trend.
As there are different ways to interpret the RVI, we have included 3 different modes for traders to choose from in the input option menu:
1. Zero-Crossing:
The RVI Histogram will turn green when it crosses above zero and red when it crosses below. Therefore, a green RVI means the trend is bullish and red means bearish. This mode is better for longer-term swing trading in comparison to the other 2 modes.
2. Increasing / Decreasing:
The RVI histogram will turn green when it is increasing(rvi >= rvi ) and red when it is decreasing. A green RVI is viewed as a bullish signal and red means bearish. This mode is a good middle-ground between the Zero-Crossing and Signal Comparison modes.
3. Signal Comparison:
Here, the RVI is compared to its signal line. If the RVI is greater than its signal line, the histogram is green, indicating a bullish trend, while red means bearish. This mode is preferred for scalping.
Hope everyone finds this one useful!
You can check out our other invite only studies/strategies at our website: profitprogrammers.com
Surface Roughness EstimatorIntroduction
Roughness of a signal is often non desired since smooth signals are easier to analyse, its logical to say that anything interacting with rough price is subject to decrease in accuracy/efficiency and can induce non desired effects such as whipsaws. Being able to measure it can give useful information and potentially avoid errors in an analysis.
It is said that roughness appear when a signal have high-frequencies (short wavelengths) components with considerable amplitudes, so its not wrong to say that "estimating roughness" can be derived into "estimating complexity".
Measuring Roughness
There are a lot of way to estimate roughness in a signal, the most well know method being the estimation of fractal dimensions. Here i will use a first order autocorrelation function.
Auto-correlation is defined by the linear relationship between a signal and a delayed version of itself, for exemple if the price goes on the same direction than the price i bars back then the auto-correlation will increase, else decrease. So what this have to do with roughness ? Well when the auto-correlation decrease it means that the dominant frequency is high, and therefore that the signal is rough.
Interpretation Of The Indicator
When the indicator is high it means that price is rough, when its low it indicate that price is smooth. Originally its the inverse way but i found that it was more convenient to do it this way. We can interpret low values of the indicator as a trending market but its not totally true, for example high values dont always indicate that the market is ranging.
Here the comparison with the indicator applied to price (orange) and a moving average (purple)
The average measurement applied to a moving average is way lower than the one using the price, this is because a moving average is smoother than price.
Its also interesting to see that some trend strength estimator like efficiency ratio can treat huge volatility signals as trend as shown below.
Here the efficiency ratio treat this volatile movement as a trending market, our indicator instead indicate that this movement is rough, such indication can avoid situation where price is followed by another huge volatile movement in the opposite direction.
Its important to make the distinction between volatility and trend strength, the trend is defined by low frequencies components of a signal, therefore measuring trend strength can be resumed as measuring the amplitude of such frequencies, but roughness estimation can do a great job as well.
Conclusion
I have showed how to estimate roughness in price and compared how our indicator behaved in comparison with a classic trend strength measurement tool. Filters or any other indicator can be way more efficient if they know how to filter according to a situation, more commonly smoothing more when price is rough and smoothing less when price is smooth. Its good to have a wider view of how market is behaving and not sticking with the binary view of "Trending" and "Ranging" .
I hope you find a use to this script :)
Best Regards
