MTF SqzMom [tradeviZion]Credits:
John Carter for creating the TTM Squeeze and TTM Squeeze Pro.
Lazybear for the original interpretation of the TTM Squeeze: Squeeze Momentum Indicator.
Makit0 for evolving Lazybear's script by incorporating TTM Squeeze Pro upgrades – Squeeze PRO Arrows.
MTF SqzMom - Multi-Timeframe Squeeze & Momentum Tool
MTF SqzMom is a tool designed to help traders easily monitor squeeze and momentum signals across multiple timeframes in a simple, organized format. Built using Pine Script 5, it ensures that data remains consistent, even when switching between different time intervals on the chart.
Key Features:
Multi-Timeframe Monitoring: Track squeeze and momentum signals across various timeframes, all in one view. This includes key timeframes like 1-minute, 5-minute, hourly, and daily.
Dynamic Table Display: A color-coded table that automatically adjusts based on the selected timeframes, offering a clear view of market conditions.
Alerts for Key Market Events: Get notifications when a squeeze starts or fires across your chosen timeframes, so you can stay informed without needing to monitor the chart continuously.
Customizable Appearance: Tailor the look of the table by selecting colors for squeeze levels and momentum shifts, and choose the best position on your chart for easy access.
How It Works:
MTF SqzMom is based on the concept of the squeeze, which signals periods of lower volatility where price breakouts may occur. The tool tracks this by monitoring the contraction of Bollinger Bands within Keltner Channels. Along with this, it provides momentum analysis to help you gauge the potential direction of the market after a squeeze.
Squeeze Conditions: The script tracks four levels of squeeze conditions (no squeeze, low, mid, and high), each represented by a different color in the table.
Momentum Analysis: Momentum is visually represented by colors indicating four stages: up increasing, up decreasing, down increasing, and down decreasing. This color coding helps you quickly assess whether the market is gaining or losing momentum.
Using Alerts:
You can enable two types of alerts: when a squeeze starts (indicating consolidation) and when a squeeze fires (indicating a breakout). These alerts cover all timeframes you’ve selected, so you never miss important signals.
How to Set It Up:
1. Enable Alerts in Settings: Turn on "Alert for Squeeze Start" and "Alert for Squeeze Fire" in the settings.
2. Add Alerts to Your Chart:
Click the three dots next to the indicator name.
Select "Add alert on tradeviZion - MTF SqzMom."
3. Customize and Save: Adjust alert options, choose your notification type, and click "Create."
Why Use MTF SqzMom ?
Consistent Data: The tool ensures that squeeze and momentum data remain consistent, even when you switch between chart intervals.
Real-Time Alerts: Stay updated with alerts for squeeze conditions without needing to constantly watch the chart.
Simple to Use, Customizable to Fit: You can easily adjust the table’s look and choose the timeframes and colors that best suit your trading style.
Acknowledgment:
While this tool builds on the TTM Squeeze concept developed by John Carter of Simpler Trading, it offers added flexibility through multi-timeframe analysis, alerts, and customizability to make monitoring market conditions more accessible.
Volatility
Arjunology for Stocks IndicatorArjunology for Stocks Indicator is a unique trend-following and exit management system that combines the power of Exponential Moving Averages (EMA) and Average True Range (ATR) to capture market trends and manage trade exits dynamically. It is designed to help traders identify potential buy and sell points based on market trends while incorporating volatility adjustments to avoid false signals and provide more reliable trade entries and exits.
Key Features:
1. Exponential Moving Averages (EMAs):
• Two EMAs (Short EMA and Long EMA) are used to determine trend direction and potential crossover signals.
• Short EMA reacts quickly to price changes, giving an indication of shorter-term trends.
• Long EMA provides a more stable measure of the overall trend direction, helping filter out market noise.
• Bullish Crossovers: When the short EMA crosses above the long EMA, it signals a potential uptrend (buy condition).
• Bearish Crossovers: When the short EMA crosses below the long EMA, it signals a potential downtrend (sell condition).
2. Average True Range (ATR):
• ATR is used to assess market volatility and avoid false signals during low volatility periods.
• A trailing stop loss mechanism based on ATR ensures that the indicator adapts to the current market environment, with higher volatility allowing for wider stops and lower volatility leading to tighter stops.
• A flat ATR threshold is used to avoid signals during quiet periods, where price movement may be too insignificant to trade effectively.
3. Buy and Sell Visual Cues:
• Green Triangle at the bottom of the candle when a bullish crossover (buy) condition is met.
• Red Triangle at the top of the candle when a bearish crossover (sell) condition is met.
• These visual cues help traders quickly identify trade entry points based on the trend signals.
4. Dynamic Exit Management:
• The indicator provides an Blue candle background to highlight exit points, with an “EXIT” label at the bottom of the candle in blue. This visual exit signal ensures clarity when a trade should be exited based on the trend reversal.
Justification for Combining EMAs and ATR in This Script:
The Exponential Moving Averages (EMAs) and Average True Range (ATR) serve complementary purposes in this script, enhancing each other’s functionality to provide a more complete trading system:
1. Trend Identification with EMAs:
• The combination of short and long EMAs is a widely trusted method for determining the trend direction. The crossovers between these EMAs provide clear entry signals for buy or sell trades. However, relying solely on EMAs can lead to false signals during periods of low volatility or market consolidation.
2. ATR for Volatility and Stop Loss:
• To prevent false signals during low-volatility conditions, the script uses ATR as a filter. This ensures that trades are only taken when the market has enough momentum, reducing the risk of being caught in “choppy” conditions where price action may be flat and untradeable.
• Additionally, the ATR-based trailing stop provides dynamic trade management, adjusting stop-loss levels according to the current volatility. This makes the system adaptive and prevents tight stops in volatile conditions or unnecessarily wide stops in calm markets.
3. Why They Work Together:
• The EMAs handle the trend direction, which is the foundation of the trading system, while the ATR adjusts the trade management to account for changing volatility. This means that the trader is always entering trades that are likely to follow a strong trend, while avoiding stagnant markets and using volatility-adaptive exit points.
• Without ATR, EMAs might generate signals during low-volatility periods that are unreliable. On the other hand, ATR alone wouldn’t provide a clear direction for trend-following. Together, these indicators create a balanced approach where trades are not only timely but also carefully managed.
How to Use:
• Buy Entry: Enter when the green triangle appears, indicating a bullish EMA crossover.
• Sell Entry: Enter short when the red triangle appears, indicating a bearish EMA crossover.
• Exit: Follow the orange background and blue “EXIT” label as a visual cue to exit the trade.
The combination of these tools allows traders to identify meaningful trend reversals while also managing risk dynamically, making the Arjunology for Stocks Indicator both versatile and effective for various market conditions.
TechniTrend: Dynamic Local Fibonacci LevelsTechniTrend: Dynamic Local Fibonacci Levels
Description: The "Dynamic Local Fibonacci Levels" indicator dynamically displays Fibonacci levels only when the market is experiencing significant volatility. By detecting volatile price movements, this tool helps traders focus on Fibonacci retracement levels that are most relevant during high market activity, reducing noise from calm market periods.
Key Features:
Adaptive Fibonacci Levels: The indicator calculates and plots Fibonacci levels (from 0 to 1) only during periods of high volatility. This helps traders focus on actionable levels during significant price swings.
Customizable Chart Type: Users can choose between Candlestick charts (including shadows) or Line charts (excluding shadows) to determine the high and low price points for Fibonacci level calculations.
Volatility-Based Detection: The Average True Range (ATR) is used to detect significant volatility. Traders can adjust the ATR multiplier to fine-tune the sensitivity of the indicator to price movements.
Fully Customizable Fibonacci Levels: Traders can modify the default Fibonacci levels according to their preferences or trading strategies.
Real-Time Volatility Confirmation: Fibonacci levels are displayed only if the price range between the local high and low exceeds a user-defined volatility threshold, ensuring that these levels are only plotted when the market is truly volatile.
Customization Options:
Chart Type: Select between "Candles (Includes Shadows)" and "Line (Excludes Shadows)" for detecting price highs and lows.
Length for High/Low Detection: Choose the period for detecting the highest and lowest price in the given time frame.
ATR Multiplier for Volatility Detection: Adjust the sensitivity of the volatility threshold by setting the ATR multiplier.
Fibonacci Levels: Customize the specific Fibonacci levels to be displayed, from 0 to 1.
Usage Tips:
Focus on Key Levels During Volatility: This indicator is best suited for periods of high volatility. It can help traders identify potential support and resistance levels that may be more significant in turbulent markets.
Adjust ATR Multiplier: Depending on the asset you're trading, you might want to fine-tune the ATR multiplier to better suit the market conditions and volatility.
Recommended Settings:
ATR Multiplier: 1.5
Fibonacci Levels: Default levels set to 0.00, 0.114, 0.236, 0.382, 0.5, 0.618, 0.786, and 1.0
Length for High/Low Detection: 55
Use this indicator to detect key Fibonacci retracement levels in volatile market conditions and make more informed trading decisions based on price dynamics and volatility.
TechniTrend: Strong Candles DetectorTechniTrend: Strong Candles Detector
Description:
The TechniTrend: Strong Candles Detector indicator is designed to identify strong candlestick patterns based on customizable thresholds of candle strength, volume, and price volatility. By detecting significant candles that have a high proportion of body relative to total range, the indicator helps traders identify potential shifts in market direction, making it a useful tool for trend analysis and reversal spotting.
Key Features:
Candle Strength Detection: The indicator calculates the strength of a candle based on the ratio of its body (difference between open and close) to its total range (high minus low). If the body size exceeds a user-defined threshold, the candle is flagged as strong. This helps traders quickly identify key candles that may signal market movements.
Volume Confirmation (Optional): An optional volume confirmation allows the indicator to only flag candles as "strong" if the trading volume during the candle exceeds the average volume over a customizable period. This can help validate that a candle’s movement is backed by significant market participation.
Volatility Body Confirmation (Optional): Users can further refine the detection by requiring that the body of a strong candle exceed the average body size (volatility) of previous candles. This ensures that candles with greater price movement are prioritized.
Customizable Inputs:
Strength Threshold: Defines the minimum ratio of body to total range for a candle to be considered strong.
Moving Average Type: Choose from SMA, EMA, or WMA for calculating the moving average of volume or body volatility.
Volume and Body Confirmation: Adjust the percentage thresholds for the difference between the current volume/body size and their average values.
Visual Alerts: The indicator marks strong bullish candles with green upward labels below the candle, and strong bearish candles with red downward labels above the candle. Additionally, strong candles can be highlighted with a customizable background color for easier visualization.
How It Works:
Strength Ratio:
The core of this indicator is the calculation of the strength ratio, which is defined as the body size (open-close) divided by the total range (high-low). If the body size is larger relative to the total range and exceeds the user-defined threshold, the candle is flagged as strong.
Volume and Volatility Confirmation:
For traders seeking additional confirmation, the indicator can be configured to only mark candles if the current volume or body volatility exceeds the average by a user-defined percentage. These confirmations can be toggled on or off to suit different trading strategies.
Customization Options:
Strength Threshold (0-1):
Sets the minimum strength required for a candle to be flagged. A higher value will result in fewer but more significant candles being marked.
Volume Confirmation:
Toggle on to require a higher volume compared to the average volume for a candle to be confirmed as strong.
Volatility Body Confirmation:
Toggle on to require a larger candle body compared to the average body size for further confirmation.
Candle Color:
Choose the background color used to highlight strong candles.
Recommended Settings:
Strength Threshold: 0.7 (for a good balance between body and range)
Volume Difference: 0.05 (5% above the average volume)
Body Volatility Difference: 0.05 (5% above the average body size)
Length: 14 (for volume and volatility moving averages)
Conclusion: The TechniTrend: Strong Candles Detector is an easy-to-use yet powerful tool for traders who want to identify key candles that signal potential market trends. Its customizable settings allow for fine-tuning to fit different trading styles, whether looking for high-volume breakouts or significant price movements. The indicator offers both a visual and configurable alert system to help traders make more informed decisions.
MJForex Breakout Detector X SessionsThis Pine Script code is a Breakout Detector with Trading Session highlights for use on a financial chart. Here's a detailed breakdown of its functionality:
1. Breakout Detection
The main purpose of this script is to detect breakouts based on specific price levels (like highs and lows) within a given lookback period. It identifies different types of breakouts in real time, specifically:
Higher High (HH): The highest price in the lookback period is exceeded, suggesting bullish momentum.
Higher Low (HL): A low that is higher than the previous low, which might indicate a potential upward trend continuation.
Lower High (LH): The price makes a lower high than the previous high, indicating a possible downward reversal.
Lower Low (LL): A low that is lower than the previous low, indicating bearish momentum.
Breakout Logic:
A buy signal is generated when there is a breakout above a Higher High or a Higher Low, signaling a potential bullish trend.
A sell signal is generated when there is a breakout below a Lower High or a Lower Low, signaling a potential bearish trend.
These signals are plotted on the chart using shapes (green triangles for buy signals and red triangles for sell signals).
2. Candle Body vs. Wick Consideration
The indicator allows you to choose whether the breakout is detected based on the candle body (the open and close prices) or the wick (the high and low prices).
This is controlled by a user input (use_body), so you can switch between these modes depending on your preference.
3. Trading Session Highlights
The script also visually highlights different trading sessions on the chart. Three sessions can be configured:
First Session (e.g., Asia/Tokyo)
Second Session (e.g., Europe/London)
Third Session (e.g., America/New York)
Each session is colored differently on the chart's background (blue, yellow, and green), helping you easily visualize which trading session is currently active.
4. Real-Time Alerts
The script generates real-time alerts when a breakout occurs.
Alerts are sent based on the current price action without waiting for the candle to close, which helps traders respond quickly to potential breakout signals and be aware of the particular zone or area.
Alerts:
A Buy alert is triggered when there's a Higher High (HH) or Higher Low (HL) breakout.
A Sell alert is triggered when there's a Lower High (LH) or Lower Low (LL) breakout.
These alerts can be used to notify traders when certain breakout conditions are met, allowing them to take action immediately.
5. Customizability
The script allows for several customizable inputs:
Lookback Period: The number of bars used to calculate the highest high and lowest low (default is 5).
Breakout Detection Toggle: You can choose whether to show the breakout signals on the chart.
Session Visibility: You can turn on/off the visual highlights for the trading sessions.
Body/Wick Toggle: You can select whether to consider the candle body or the wick when detecting breakouts.
In Summary:
Breakout Detection: Detects and highlights Higher High, Higher Low, Lower High, and Lower Low breakouts on the chart, generating buy/sell signals.
Candle Body/Wick Option: You can choose to detect breakouts based on the body or wick of the candle.
Real-Time Alerts: Sends alerts as soon as a breakout occurs, without waiting for the candle to close.
Trading Session Highlights: Highlights different global trading sessions for easy visual reference on the chart.
This indicator is particularly useful for traders who want to identify key breakouts and visually track trading sessions across different markets.
Sigma 2.0 - Advanced Buy and Sell Signal IndicatorOverview:
Sigma 2.0 is a sophisticated trading indicator designed to help traders identify potential buy and sell opportunities across various financial markets. By leveraging advanced mathematical calculations and incorporating multiple analytical tools, Sigma 2.0 aims to enhance trading strategies by providing precise entry and exit signals.
Key Features:
Advanced Sigma Calculations:
Utilizes a combination of Exponential Moving Averages (EMAs) and price deviations to calculate the Sigma lines (sigma1 and sigma2).
Detects potential trend reversals through the crossover of these Sigma lines.
Customizable Signal Filtering:
Offers the ability to filter buy and sell signals based on user-defined thresholds.
Helps reduce false signals in volatile markets by setting overbought and oversold levels.
Overbought and Oversold Detection:
Identifies extreme market conditions where price reversals are more likely.
Changes the background color of the chart to visually indicate overbought or oversold states.
Integration of Exponential Moving Averages (EMAs):
Includes EMAs of different lengths (10, 21, 55, 200) to assist in identifying market trends.
EMAs act as dynamic support and resistance levels.
Higher Timeframe Signal Incorporation:
Allows users to include signals from a higher timeframe to align trades with the broader market trend.
Enhances the reliability of signals by considering multiple timeframes.
Custom Alerts:
Provides alert conditions for both buy and sell signals.
Enables traders to receive notifications, ensuring timely decision-making.
How It Works:
Sigma Calculation Methodology:
The indicator calculates an average price (ap) and applies EMAs to derive the Sigma lines.
sigma1 represents the smoothed price deviation, while sigma2 is a moving average of sigma1.
A crossover of sigma1 above sigma2 generates a buy signal, indicating potential upward momentum.
Conversely, a crossover of sigma1 below sigma2 generates a sell signal.
Signal Filtering and Thresholds:
Users can enable filtering to only consider signals when sigma1 is below or above certain thresholds.
This helps in focusing on more significant market movements and reducing noise.
Overbought/Oversold Levels:
The indicator monitors sigma1 to detect when the market is in extreme conditions.
Background color changes provide a quick visual cue for these conditions.
EMA Analysis:
The plotted EMAs help in confirming the trend direction.
They can be used alongside Sigma signals to validate trade entries and exits.
Higher Timeframe Signals:
Incorporates signals from a user-selected higher timeframe.
Helps in aligning trades with the overall market trend, increasing the potential success rate.
How to Use:
Adding the Indicator to Your Chart:
Search for "Sigma 2.0" in the TradingView Indicators menu and add it to your chart.
Configuring the Settings:
Adjust the Sigma configurations (Channel Length, Average Length, Signal Line Length) to suit your trading style.
Set the overbought and oversold levels according to your risk tolerance.
Choose whether to filter signals by thresholds.
Select the higher timeframe for additional signal confirmation.
Interpreting the Signals:
Buy Signals:
Indicated by a green triangle below the price bar.
Occur when sigma1 crosses above sigma2 and other conditions are met.
Sell Signals:
Indicated by a red triangle above the price bar.
Occur when sigma1 crosses below sigma2 and other conditions are met.
Higher Timeframe Signals:
Plotted with lime (buy) and maroon (sell) triangles.
Help confirm signals in the current timeframe.
Utilizing EMAs:
Observe the EMAs to gauge the overall trend.
Consider aligning buy signals when the price is above key EMAs and sell signals when below.
Setting Up Alerts:
Use the built-in alert conditions to receive notifications for buy and sell signals.
Customize alert messages as needed.
Credits:
Original Concept Inspiration:
This indicator is inspired by the WaveTrend oscillator and other momentum-based indicators.
Special thanks to the original authors whose work laid the foundation for this enhanced version.
Disclaimer:
Trading involves significant risk, and past performance is not indicative of future results.
This indicator is a tool to assist in analysis and should not be the sole basis for any trading decision.
Always perform thorough analysis and consider multiple factors before entering a trade.
Note:
Ensure your chart is clean and only includes this indicator when publishing.
The script is open-source and can be modified to fit individual trading strategies.
For any questions or support, feel free to reach out or comment.
Hyperbolic Tangent Volatility Stop [InvestorUnknown]The Hyperbolic Tangent Volatility Stop (HTVS) is an advanced technical analysis tool that combines the smoothing capabilities of the Hyperbolic Tangent Moving Average (HTMA) with a volatility-based stop mechanism. This indicator is designed to identify trends and reversals while accounting for market volatility.
Hyperbolic Tangent Moving Average (HTMA):
The HTMA is at the heart of the HTVS. This custom moving average uses a hyperbolic tangent transformation to smooth out price fluctuations, focusing on significant trends while ignoring minor noise. The transformation reduces the sensitivity to sharp price movements, providing a clearer view of the underlying market direction.
The hyperbolic tangent function (tanh) is commonly used in mathematical fields like calculus, machine learning and signal processing due to its properties of “squashing” inputs into a range between -1 and 1. The function provides a non-linear transformation that can reduce the impact of extreme values while retaining a certain level of smoothness.
tanh(x) =>
e_x = math.exp(x)
e_neg_x = math.exp(-x)
(e_x - e_neg_x) / (e_x + e_neg_x)
The HTMA is calculated by applying a non-linear transformation to the difference between the source price and its simple moving average, then adjusting it using the standard deviation of the price data. The result is a moving average that better tracks the real market direction.
htma(src, len, mul) =>
tanh_src = tanh((src - ta.sma(src, len)) * mul) * ta.stdev(src, len) + ta.sma(src, len)
htma = ta.sma(tanh_src, len)
Important Note: The Hyperbolic Tangent function becomes less accurate with very high prices. For assets priced above 100,000, the results may deteriorate, and for prices exceeding 1 million, the function may stop functioning properly. Therefore, this indicator is better suited for assets with lower prices or lower price ratios.
Volatility Stop (VolStop):
HTVS employs a Volatility Stop mechanism based on the Average True Range (ATR). This stop dynamically adjusts based on market volatility, ensuring that the indicator adapts to changing conditions and avoids false signals in choppy markets.
The VolStop follows the price, with a higher ATR pushing the stop farther away to avoid premature exits during volatile periods. Conversely, when volatility is low, the stop tightens to lock in profits as the trend progresses.
The ATR Length and ATR Multiplier are customizable, allowing traders to control how tightly or loosely the stop follows the price.
pine_volStop(src, atrlen, atrfactor) =>
if not na(src)
var max = src
var min = src
var uptrend = true
var float stop = na
atrM = nz(ta.atr(atrlen) * atrfactor, ta.tr)
max := math.max(max, src)
min := math.min(min, src)
stop := nz(uptrend ? math.max(stop, max - atrM) : math.min(stop, min + atrM), src)
uptrend := src - stop >= 0.0
if uptrend != nz(uptrend , true)
max := src
min := src
stop := uptrend ? max - atrM : min + atrM
Backtest Mode:
HTVS includes a built-in backtest mode, allowing traders to evaluate the indicator's performance on historical data. In backtest mode, it calculates the cumulative equity curve and compares it to a simple buy and hold strategy.
Backtesting features can be adjusted to focus on specific signal types, such as Long Only, Short Only, or Long & Short.
An optional Buy and Hold Equity plot provides insight into how the indicator performs relative to simply holding the asset over time.
The indicator includes a Hints Table, which provides useful recommendations on how to best display the indicator for different use cases. For example, when using the overlay mode, it suggests displaying the indicator in the same pane as price action, while backtest mode is recommended to be used in a separate pane for better clarity.
The Hyperbolic Tangent Volatility Stop offers traders a balanced approach to trend-following, using the robustness of the HTMA for smoothing and the adaptability of the Volatility Stop to avoid whipsaw trades during volatile periods. With its backtesting features and alert system, this indicator provides a comprehensive toolkit for active traders.
Multi-Step FlexiSuperTrend - Indicator [presentTrading]This version of the indicator is built upon the foundation of a strategy version published earlier. However, this indicator version focuses on providing visual insights and alerts for traders, rather than executing trades. This one is mostly for @thorcmt.
█ Introduction and How it is Different
The **Multi-Step FlexiSuperTrend Indicator** is a versatile tool designed to provide traders with a highly customizable and flexible approach to trend analysis. Unlike traditional supertrend indicators, which focus on a single factor or threshold, the **FlexiSuperTrend** allows users to define multiple levels of take-profit targets and incorporate different trend normalization methods.
It comes with several advanced customization features, including multi-step take profits, deviation plotting, and trend normalization, making it suitable for both novice and expert traders.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
The **Multi-Step FlexiSuperTrend** works by calculating a supertrend based on multiple factors and incorporating oscillations from trend deviations. Here’s a breakdown of how it functions:
🔶 SuperTrend Calculation
At the heart of the indicator is the SuperTrend formula, which dynamically adjusts based on price movements.
🔶 Normalization of Deviations
To enhance accuracy, the **FlexiSuperTrend** calculates multiple deviations from the trend and normalizes them.
🔶 Multi-Step Take Profit Levels
The indicator allows setting up to three take profit levels, which are displayed via price level alerts. lows traders to exit part of their position at various profit intervals.
For more detail, please check the strategy version - Multi-Step-FlexiSuperTrend-Strategy:
and 'FlexiSuperTrend-Strategy'
█ Trade Direction
The **Multi-Step FlexiSuperTrend Indicator** supports both long and short trade directions.
This flexibility allows traders to adapt to trending, volatile, or sideways markets.
█ Usage
To use the **FlexiSuperTrend Indicator**, traders can set up their preferences for the following key features:
- **Trading Direction**: Choose whether to focus on long, short, or both signals.
- **Indicator Source**: The price source to calculate the trend (e.g., close, hl2).
- **Indicator Length**: The number of periods to calculate the ATR and trend (the larger the value, the smoother the trend).
- **Starting and Increment Factor**: These adjust how reactive the trend is to price movements. The starting factor dictates how far the initial trend band is from the price, and the increment factor adjusts subsequent trend deviations.
The indicator then displays buy and sell signals on the chart, along with alerts for each take-profit level.
Local picture
█ Default Settings
The default settings of the **Multi-Step FlexiSuperTrend** are carefully designed to provide an optimal balance between sensitivity and accuracy. Let’s examine these default parameters and their effect on performance:
🔶 Indicator Length (Default: 10)
The **Indicator Length** determines the lookback period for the ATR calculation. A smaller value makes the indicator more reactive to price changes, but may generate more false signals. A longer length smooths the trend and reduces noise but may delay signals.
Effect on performance: Shorter lengths perform better in volatile markets, while longer lengths excel in trending markets.
🔶 Starting Factor (Default: 0.618)
This factor adjusts the starting distance of the SuperTrend from the current price. The smaller the starting factor, the closer the trend is to the price, making it more sensitive. Conversely, a larger factor allows more distance, reducing sensitivity but filtering out false signals.
Effect on performance: A smaller factor provides quicker signals but can lead to frequent false positives. A larger factor generates fewer but more reliable signals.
🔶 Increment Factor (Default: 0.382)
The **Increment Factor** controls how the trend bands adjust as the price moves. It increases the distance of the bands from the price with each iteration.
Effect on performance: A higher increment factor can result in wider stop-loss or trend reversal bands, allowing for longer trends to develop without frequent exits. A lower factor keeps the bands closer to the price and is more suited for shorter-term trades.
🔶 Take Profit Levels (Default: 2%, 8%, 18%)
The default take-profit levels are set at 2%, 8%, and 18%. These values represent the thresholds at which the trader can partially exit their positions. These multi-step levels are highly customizable depending on the trader’s risk tolerance and strategy.
Effect on performance: Lower take-profit levels (e.g., 2%) capture small, quick profits in volatile markets, while higher levels (8%-18%) allow for a more gradual exit in strong trends.
🔶 Normalization Method (Default: None)
The default normalization method is **None**, meaning the deviations are not normalized. However, enabling normalization (e.g., **Max-Min**) can improve the clarity of the indicator’s signals in volatile or choppy markets by smoothing out the noise.
Effect on performance: Using a normalization method can reduce the effect of extreme deviations, making signals more stable and less prone to false positives.
Trend CCITrend CCI (TCCI) Indicator
Description:
The Trend CCI (TCCI) indicator is a unique combination of the Commodity Channel Index (CCI) and the Average True Range (ATR), designed to identify trends and market reversals with a refined sensitivity to price volatility. The indicator plots the CCI, adjusted by an ATR filter, and color-codes the trendline to signal uptrends and downtrends.
How It Works:
This indicator uses the CCI to measure price momentum and an ATR-based filter to smooth out market noise, making it easier to detect significant shifts in the market trend. Key parameters such as the ATR Period, ATR Multiplier, and CCI Period have been carefully chosen to optimize the indicator's performance:
1. ATR Period (default: 18)
The ATR Period determines the number of periods used to calculate the **Average True Range**, which reflects market volatility. In this case, an **ATR Period of 18** has been selected for several reasons:
Balance between responsiveness and noise reduction : A period of 18 strikes a balance between being responsive to recent price movements and filtering out minor fluctuations. Shorter ATR periods might be too reactive, creating false signals, while longer periods might miss shorter-term trends.
Adaptable to various market conditions : An 18-period ATR is suitable for both intraday and swing trading strategies, making it versatile across different time frames.
Standard industry practice : Many traders use ATR settings between 14 and 20 periods as a convention for detecting reliable volatility levels.
2. ATR Multiplier (default: 1.5)
The ATR Multiplier is applied to the ATR value to define how sensitive the indicator is to volatility. In this case, a multiplier of 1.5 has been chosen:
Avoiding whipsaws in low volatility markets: By setting the multiplier to 1.5, the indicator filters out smaller, less significant price movements, reducing the likelihood of whipsaw signals (i.e., false trend reversals during periods of low volatility).
Optimizing signal accuracy: A moderate multiplier like 1.5 ensures that the indicator only generates signals when the price moves a significant distance from the average range. Higher multipliers (e.g., 2.0) may ignore valid opportunities, while lower multipliers (e.g., 1.0) might create too many signals.
Enhancing trend clarity : The multiplier’s role in widening the range allows the indicator to respond more clearly during periods of strong trends, reducing signal noise and false positives.
3. CCI Period (default: 63)
The CCI Period defines the number of periods used to calculate the Commodity Channel Index. A 63-period CCI is selected based on the following considerations:
Smoothing the momentum calculation: A longer period, such as 63, is used to smooth out the CCI and reduce the effects of short-term price fluctuations. This period captures longer-term momentum, making it ideal for identifying more significant market trends.
-Filtering out short-term noise: While shorter CCI periods (e.g., 14 or 20) may be more reactive, they tend to produce more signals, some of which may be false. A 63-period CCI focuses on stronger and more sustained price movements, providing fewer but higher-quality signals.
Adapted to intermediate trading: A 63-period CCI aligns well with traders looking for medium-term trend-following strategies, striking a balance between long-term trend identification and responsiveness to significant price shifts.
How to Use:
Green Area: When the trendline turns green, it signals that the CCI is positive, reflecting upward momentum. This can be interpreted as a buy signal, indicating the potential for long positions or continuing bullish trades.
Red Area: When the trendline turns red, it signals that the CCI is negative, reflecting downward momentum. This can be interpreted as a sell signal, indicating potential short positions or bearish trades.
ATR Filter: The ATR helps reduce false signals by ignoring minor price movements. Traders can adjust the ATR Multiplier to make the indicator more or less sensitive based on market conditions. A lower multiplier (e.g., 1.2) may increase signal frequency, while a higher multiplier (e.g., 2.0) reduces it.
Originality:
The Trend CCI (TCCI) stands out due to its combination of the CCI and ATR. While many indicators simply plot raw CCI values, this script enhances the CCI’s effectiveness by incorporating an ATR-based volatility filter. This ensures that only significant trends trigger signals, making it a more reliable tool in volatile markets. The choice of the ATR period, multiplier, and CCI period ensures a refined balance between trend detection and noise reduction, distinguishing it as a powerful trend-following indicator.
Additionally, the visual aspect—using color-coded trendlines that dynamically shift between green and red—simplifies the interpretation of market trends, offering traders a clear and immediate understanding of trend direction and momentum strength.
Final Recommendations:
Use in Trending Markets The TCCI is most effective in trending markets, where its signals align with broader market momentum. In sideways or low-volatility markets, consider adjusting the ATR multiplier or using other complementary indicators to confirm the signals.
Risk Management: Always integrate robust risk management practices, such as using stop-loss orders and position sizing, to protect against sudden market reversals or periods of heightened volatility.
Adjust for Volatility: Consider the volatility of the asset being traded. In highly volatile assets, a higher ATR multiplier (e.g., 2.0) may be necessary to filter out noise, while in more stable assets, a lower multiplier (e.g., 1.2) might generate earlier signals.
By using the Trend CCI (TCCI) indicator with a deeper understanding of its key parameters, traders can better identify trends, reduce noise, and improve their overall decision-making in the markets.
Good Profits!
Uptrick: Market MoodsThe "Uptrick: Market Moods" indicator is an advanced technical analysis tool designed for the TradingView platform. It combines three powerful indicators—Relative Strength Index (RSI), Average True Range (ATR), and Bollinger Bands—into one cohesive framework, aimed at helping traders better understand and interpret market sentiment. By capturing shifts in the emotional climate of the market, it provides a holistic view of market conditions, which can range from calm to stressed or even highly excited. This multi-dimensional analysis tool stands apart from traditional single-indicator approaches by offering a more complete picture of market dynamics, making it a valuable resource for traders looking to anticipate and react to changes in market behavior.
The RSI in the "Uptrick: Market Moods" indicator is used to measure momentum. RSI is an essential component of many technical analysis strategies, and in this tool, it is used to identify potential market extremes. When RSI values are high, they indicate an overbought condition, meaning the market may be approaching a peak. Conversely, low RSI values suggest an oversold condition, signaling that the market could be nearing a bottom. These extremes provide crucial clues about shifts in market sentiment, helping traders gauge whether the current emotional state of the market is likely to result in a reversal. This understanding is pivotal in predicting whether the market is transitioning from calm to stressed or from excited to overbought.
The Average True Range adds another layer to this analysis by offering insights into market volatility. Volatility is a key factor in understanding the mood of the market, as periods of high volatility often reflect high levels of excitement or stress, while low volatility typically indicates a calm, steady market. ATR is calculated based on the range of price movements over a given period, and the higher the value, the more volatile the market is. The "Uptrick: Market Moods" indicator uses ATR to dynamically gauge volatility levels, helping traders understand whether the market is currently moving in a way that aligns with its emotional mood. For example, an increase in ATR accompanied by an RSI value that indicates overbought conditions could suggest that the market is in a highly excited state, with the potential for either strong momentum continuation or a sharp reversal.
Bollinger Bands complement these tools by providing visual cues about price volatility and the range within which the market is likely to move. Bollinger Bands plot two standard deviations away from a simple moving average of the price. This banding technique helps traders visualize how far the price is likely to deviate from its average over a certain period. The "Uptrick: Market Moods" indicator uses Bollinger Bands to establish price boundaries and identify breakout conditions. When prices break above the upper band or below the lower band, it often signals that the market is either highly stressed or excited. This breakout condition serves as a visual representation of the market mood, alerting traders to moments when prices are moving beyond typical ranges and when significant emotional shifts are occurring in the market.
Technically, the "Uptrick: Market Moods" indicator has been developed using TradingView’s Pine Script language, a highly efficient language for building custom indicators. It employs functions like ta.rsi, ta.atr, and ta.sma to perform the necessary calculations. The use of these built-in functions ensures that the calculations are both accurate and efficient, allowing the indicator to operate in real-time without lagging, even in volatile market conditions. The ta.rsi function is used to compute the Relative Strength Index, while ta.atr calculates the Average True Range, and ta.sma is used to smooth out price data for the Bollinger Bands. These functions are applied dynamically within the script, allowing the "Uptrick: Market Moods" indicator to respond to changes in market conditions in real time.
The user interface of the "Uptrick: Market Moods" indicator is designed to provide a visually intuitive experience. The market mood is color-coded on the chart, making it easy for traders to identify whether the market is calm, stressed, or excited at a glance. This feature is especially useful for traders who need to make quick decisions in fast-moving markets. Additionally, the indicator includes an interactive table that updates in real-time, showing the most recent mood state and its frequency. This provides valuable statistical insights into market behavior over specific time frames, helping traders track the dominant emotional state of the market. Whether the market is in a prolonged calm state or rapidly transitioning through moods, this real-time feedback offers actionable data that can help traders adjust their strategies accordingly.
The RSI component of the "Uptrick: Market Moods" indicator helps detect the speed and direction of price movements, offering insight into whether the market is approaching extreme conditions. By providing signals based on overbought and oversold levels, the RSI helps traders decide whether to enter or exit positions. The ATR element acts as a volatility gauge, dynamically adjusting traders’ expectations in response to changes in market volatility. Meanwhile, the Bollinger Bands help identify trends and potential breakout conditions, serving as an additional confirmation tool that highlights when the price has moved beyond normal boundaries, indicating heightened market excitement or stress.
Despite the robust capabilities of the "Uptrick: Market Moods" indicator, it does have limitations. In markets affected by sudden shifts, such as those driven by major news events or external economic factors, the indicator’s performance may not always be reliable. These external factors can cause rapid mood swings that are difficult for any technical analysis tool to fully anticipate. Additionally, the indicator’s complexity may pose a learning curve for novice traders, particularly those who are unfamiliar with the concepts of RSI, ATR, and Bollinger Bands. However, with practice, traders can become proficient in using the tool to its full potential, leveraging the insights it provides to better navigate market shifts.
For traders seeking a deeper understanding of market sentiment, the "Uptrick: Market Moods" indicator is an invaluable resource. It is recommended for those dealing with medium to high volatility instruments, where understanding emotional shifts can offer a strategic advantage. While it can be used on its own, integrating it with other forms of analysis, such as fundamental analysis and additional technical indicators, can enhance its effectiveness. By confirming signals with other tools, traders can reduce the likelihood of false signals and improve their overall trading strategy.
To further enhance the accuracy of the "Uptrick: Market Moods" indicator, it can be integrated with volume-based tools like Volume Profile or On-Balance Volume (OBV). This combination allows traders to confirm the moods identified by the indicator with volume data, providing additional confirmation of market sentiment. For example, when the market is in an excited mood, an increase in trading volume could reinforce the reliability of that signal. Conversely, if the market is stressed but volume remains low, traders may want to proceed with caution. Using multiple indicators together creates a more comprehensive trading approach, helping traders better manage risk and make informed decisions based on multiple data points.
In conclusion, the "Uptrick: Market Moods" indicator is a powerful and unique addition to the suite of technical analysis tools available on TradingView. It provides traders with a multi-dimensional view of market sentiment by combining the analytical strengths of RSI, ATR, and Bollinger Bands into a single tool. Its ability to capture and interpret the emotional mood of the market makes it an essential tool for traders seeking to gain an edge in understanding market behavior. While the indicator has certain limitations, particularly in rapidly shifting markets, its ability to provide real-time insights into market sentiment is a valuable asset for traders of all experience levels. Used in conjunction with other tools and sound trading practices, the "Uptrick: Market Moods" indicator offers a comprehensive solution for navigating the complexities of financial markets.
High Yield Spread Strategy with SMA FilterThis Pine Script strategy is designed for statistical analysis and research purposes only, not for live trading or financial decision-making. The script evaluates the relationship between financial volatility (measured by either the VIX or the High Yield Spread) and market positioning strategies (long or short) based on user-defined conditions. Specifically, it allows users to test the assumption that elevated levels of VIX or the High Yield Spread may justify short positions in the market—a widely held belief in financial circles—but this script demonstrates that shorting is not always the optimal choice, even under these conditions.
Key Components:
1. High Yield Spread and VIX:
• High Yield Spread is the difference between the yields of corporate high-yield (or “junk”) bonds and U.S. Treasury securities. A rising spread often reflects increased market risk perception.
• VIX (Volatility Index) is often referred to as the market’s “fear gauge.” Higher VIX levels usually indicate heightened market uncertainty or expected volatility.
2. Strategy Logic:
• The script allows users to specify a threshold for the VIX or High Yield Spread, and it automatically evaluates if the spread exceeds this level, which traditionally would suggest an environment for higher market risk and thus potentially favoring short trades.
• However, the strategy provides flexibility to enter long or short positions, even in a high-risk environment, emphasizing that a high VIX or High Yield Spread does not always warrant shorting.
3. SMA Filter:
• A Simple Moving Average (SMA) filter can be applied to the price data, where positions are only entered if the price is above or below the SMA (depending on the trade direction). This adds a technical component to the strategy, incorporating price trends into decision-making.
4. Hold Duration:
• The script also allows users to define how long to hold a position after entering, enabling an analysis of different timeframes.
Theoretical Background:
The traditional belief that high VIX or High Yield Spreads favor short positions is not universally supported by research. While a spike in the VIX or credit spreads is often associated with increased market risk, research suggests that excessive volatility does not always lead to negative returns. In fact, high volatility can sometimes signal an approaching market rebound.
For example:
• Studies have shown that long-term investments during periods of heightened volatility can yield favorable returns due to mean reversion. Whaley (2000) notes that VIX spikes are often followed by market recoveries as volatility tends to revert to its mean over time .
• Research by Blitz and Vliet (2007) highlights that low-volatility stocks have historically outperformed high-volatility stocks, suggesting that volatility may not always predict negative returns .
• Furthermore, credit spreads can widen in response to broader market stress, but these may overshoot the actual credit risk, presenting opportunities for long positions when spreads are high and risk premiums are mispriced .
Educational Purpose:
The goal of this script is to challenge assumptions about shorting during volatile periods, showing that long positions can be equally, if not more, effective during market stress. By incorporating an SMA filter and customizable logic for entering trades, users can test different hypotheses regarding the effectiveness of both long and short positions under varying market conditions.
Note: This strategy is not intended for live trading and should be used solely for educational and statistical exploration. Misinterpreting financial indicators can lead to incorrect investment decisions, and it is crucial to conduct comprehensive research before trading.
References:
1. Whaley, R. E. (2000). “The Investor Fear Gauge”. The Journal of Portfolio Management, 26(3), 12-17.
2. Blitz, D., & van Vliet, P. (2007). “The Volatility Effect: Lower Risk Without Lower Return”. Journal of Portfolio Management, 34(1), 102-113.
3. Bhamra, H. S., & Kuehn, L. A. (2010). “The Determinants of Credit Spreads: An Empirical Analysis”. Journal of Finance, 65(3), 1041-1072.
This explanation highlights the academic and research-backed foundation of the strategy and the nuances of volatility, while cautioning against the assumption that high VIX or High Yield Spread always calls for shorting.
Liquidity_Detection_Fx_Shepherd [ALLDYN]### Breakdown of the Basic "Fx_Shepherd_Liquidity" Script
#### 1. **Purpose of the Script:**
This basic version of the "Fx_Shepherd_Liquidity" script is designed to help traders detect potential liquidity grabs by analyzing price movements and candle patterns in the market. It works by identifying large price deviations and compares multiple candles to detect liquidity sweeps either to the upside or downside.
#### 2. **How it Works:**
- **User Inputs:**
- `Maru_rate`: This is a user-defined percentage that helps determine how much the price movement of a candle needs to deviate from the candle's range (high - low) to be considered a liquidity grab.
- `Compare`: Another percentage input used to compare the relative size of three candles versus one candle.
- `MA`: This represents the "Big candle period," or the moving average period for big candles.
- `urgent_rate`: This is used to determine urgency by comparing the current candle's range to an SMA of previous candles.
- **Key Calculation Steps:**
- **Candle Deviation (Up and Down):**
- `Up` measures how much the current candle closes above its open (bullish deviation).
- `Down` measures how much the current candle closes below its open (bearish deviation).
- **Average Deviations:**
- `UP_Sum` and `Do_Sum` calculate the SMA of Up and Down deviations, respectively, over the defined period (MA). These averages help detect when a candle deviates significantly from the norm.
- **Urgency Detection:**
- `Check_Up_Urgent` and `Check_Dow_Urgent` are conditions that check if the current candle’s high-low range exceeds the defined urgent rate. This signals whether the price movement is "urgent" or significant.
- **Liquidity Detection:**
- **For Upward Liquidity:**
- The script checks if the candle is bullish (`close > open`) and whether the price deviation (`close - open`) meets or exceeds the user-defined `Maru_rate`.
- The script then compares the size of the previous three candles (`high - low`) with a single candle (`Compare`) to confirm a liquidity grab.
- Finally, it looks for continuous upward candle patterns to confirm the strength of the move.
- **For Downward Liquidity:**
- Similar logic applies, but for bearish candles. It checks whether the candle is bearish (`close < open`) and applies the same size comparisons to detect downward liquidity grabs.
- **Candle Highlighting:**
- If the conditions for a liquidity grab are met (both urgency and size), the script changes the bar color to green for upward liquidity and yellow for downward liquidity. These colored bars visually highlight the candles that meet the liquidity grab conditions.
- The script also colors up to three consecutive candles if they meet the liquidity grab conditions (offset = -1, -2).
#### 3. **Benefits of Using This Script:**
- **Liquidity Grab Detection:**
This script helps detect potential liquidity grabs, which occur when large players in the market push the price in a direction to trigger stop-losses or lure retail traders into a position before reversing the price direction. By detecting these movements, traders can avoid being trapped and potentially take advantage of the upcoming reversal.
- **Simple & Lightweight:**
The script uses basic inputs and calculations to detect liquidity grabs, making it easy to use and understand. It's less complex than the advanced version, which makes it suitable for traders who prefer simplicity or are new to liquidity grab detection.
- **Visual Clarity:**
The script uses color changes (green for upward grabs and yellow for downward grabs) to help traders easily spot potential liquidity grab areas on the chart. These visual cues make it more straightforward to interpret.
#### 4. **When to Use This Basic Version:**
- **Quick Liquidity Detection:** This script is ideal for traders who need a quick way to detect potential liquidity grabs without the complexity of managing dynamic parameters or volume confirmation.
- **Simplified Trading Strategies:** If your trading strategy doesn’t rely heavily on volume or multi-timeframe liquidity grab adjustments, this script can work well for basic setups where price action is the primary indicator.
- **Faster Execution:** Since this version doesn’t require dynamic adjustments or volume confirmation, it executes faster, making it suitable for traders who need lightweight tools to stay on top of fast-moving markets.
### Conclusion:
The basic version of the **Fx_Shepherd_Liquidity** script offers a simplified tool for detecting potential liquidity grabs. Its straightforward design, adjustable Maru rate, and visual bar color changes make it easy to integrate into any trading strategy focused on price action. While it lacks the advanced features of the premium version, it serves as a solid, lightweight solution for traders who prefer simplicity over complexity.
Heatmap Volume ProfileThe Volume Profile with Support/Resistance indicator is a powerful tool designed to help traders visually identify support and resistance zones based on volume analysis at specific price levels. Unlike traditional volume indicators that focus on time-based volume, this indicator analyzes the volume traded at various price levels, offering a clearer view of where the strongest buying and selling forces are concentrated.
Key Features:
Volume Heatmap: The indicator displays a colored heatmap that varies based on the volume traded at different price levels. "Hot zones" (red) indicate areas with high volume, while "cold zones" (blue) represent areas with low volume.
Automatic Detection of Support and Resistance Levels: In addition to the heatmap, the indicator automatically detects price levels where the volume reaches a significant threshold. These levels are marked with white lines on the chart, highlighting potential support and resistance zones.
Adjustable Granularity: The number of price bands can be adjusted, allowing for finer or broader volume analysis. This helps customize the analysis based on the volatility of the asset and the chosen time frame.
Configurable Analysis Period: The number of historical bars used for volume analysis can be defined by the user, enabling the analysis of short-term or long-term volume trends.
Customizable Support/Resistance Threshold: A parameter allows you to define the threshold at which a volume level is considered significant enough to be marked as support or resistance.
Indicator Parameters:
Number of Price Bands (Granularity):
This parameter controls how finely the price is divided into bands. The higher the number of bands, the more precise the volume analysis. The default is set to 50 bands.
Color Transparency:
This parameter adjusts the transparency of the heatmap colors, making it easier to read when overlaid on the price chart.
Number of Bars for Analysis:
Defines the historical period used for volume analysis. The default is 200 bars, but it can be adjusted based on your time frame and the asset being analyzed.
Volume Threshold for Support/Resistance:
This setting allows you to define the intensity of volume (between 0.1 and 1.0) necessary for a price level to be marked as support or resistance. This parameter ensures that only the most relevant levels are displayed.
Practical Use:
Identify Support and Resistance Zones: Traders can use the levels marked by this indicator to identify areas where significant volumes have been traded, signaling potential support or resistance. These zones are often where the market may reverse direction or confirm a trend.
Detect Congestion Zones: The heatmap allows traders to easily spot volume congestion zones, where prices tend to stall due to the high concentration of trading at those levels.
Improve Decision-Making: By combining price-level volume analysis, traders can better understand where the market’s key forces are located, allowing for more informed entry and exit strategies.
Example of Use:
Support: If a support line is detected at a price level with high volume, it may represent an area where buyers are heavily concentrated, making it more difficult for the price to break below that level.
Resistance: Conversely, a resistance line indicates a zone where sellers have a significant presence, suggesting that the price may struggle to move above that level without strong momentum.
Target Audience:
This indicator is ideal for:
Day traders looking to spot short-term reversal points based on volume concentration.
Swing traders identifying key zones to place limit orders or stops.
Long-term traders who want to analyze volume clusters over an extended period to determine critical levels to watch.
Conclusion:
The Volume Profile with Support/Resistance indicator is an essential tool for any trader looking to understand how volume behaves at each price level. With its intuitive visualizations and automatically marked levels, this indicator makes it easy to spot important support and resistance zones, helping traders optimize their strategies and anticipate market movements more effectively.
Risk Contract Table by Soothing TradesDescription:
Risk Contract Table by Soothing Trades
This script provides an intuitive table that displays the calculated risk in dollars for various contract sizes based on the size of the last closed candle.
It is designed to help traders quickly assess their risk exposure based on the most recent price movement.
Key Features:
Automatic and Manual Tick Value Calculation: Automatically fetches the tick value for your instrument.
You can also override it with a manual input using a convenient checkbox.
Customizable Contract Sizes: Easily input your preferred contract sizes.
The script dynamically adjusts the table headers and risk calculations based on your inputs.
Real-Time Updates:
The table updates with each new candle close, ensuring that your risk calculations are always based on the latest candle size.
User-Friendly Display: The table is displayed directly on your chart with customizable colors for both text and background, making it easy to match your chart’s theme.
How to Use:
Tick Value: By default, the script uses the automatic tick value.
To manually set the tick value, check the "Use Manual Tick Value" box and enter your desired value.
Contract Sizes: You can input the number of contracts for each category (5ct, 10ct, 15ct, 17ct). The script calculates and displays the risk for each contract size based on the tick movement of the last closed candle only.
Real-Time Calculations: Risk calculations are updated only after the candle is closed, so there are no misleading values during live market activity.
Customization Options:
Manual Tick Value Override: Use a custom tick value by enabling the "Use Manual Tick Value" option.
Custom Contract Sizes: Input your desired contract sizes, and the table headers and risk calculations will update accordingly.
Color Customization: Customize the text and background colors to fit your chart’s aesthetic.
How It Works:
The script calculates the tick movement from the last closed candle and multiplies it by the specified tick value and the number of contracts.
You can choose to use the default automatic tick value or manually input your own.
A table appears on the chart showing the risk for different contract sizes based solely on the size of the last candle, providing a quick snapshot of potential exposure from the most recent price movement.
This script is ideal for traders who want to keep a quick and accurate overview of their potential risk exposure based on the size of the most recent price action.
Whether you are scalping, day trading, or holding positions overnight, this tool by Soothing Trades will help you stay informed and make better trading decisions.
Happy Trading!
- use at own risk, for education and test purpose only.
Developed by Soothing Trades
Outlier changes alertAn indicator that calculates click (price change), percentage change, and Z-score changes while displaying outliers based on defined ranges.
Outlier Detection:
Mark outliers (for price, percentage, Z-score) based on user-defined thresholds. For example, any price movement exceeding a certain Z-score or percentage change could be marked as an outlier and displayed on chart.
Indicator Overview:
1. Click (Price Change):
Calculate the absolute price change from one period to another (e.g., from the current closing price to the previous closing price).
2. Percentage Change:
Calculate the percentage price change over a specific period, showing how much the price has changed in relative terms compared to the previous price.
3. Z-Score:
Compute the Z-score to standardize the price change relative to its historical average and standard deviation. The Z-score helps in detecting whether a price movement is an outlier or falls within a normal range of volatility.
Demand and Supply Conditions with SignalsIntroduction:
This document outlines a trading strategy that utilizes price action analysis and color signals to make informed trading decisions. The strategy focuses on identifying demand and supply conditions, curve patterns, and generating signals based on historical price data. The colors associated with each condition and signal serve as visual indicators to assist in decision-making.
I. Strategy Overview:
Objective:
The objective of this trading strategy is to identify potential trading opportunities based on price action analysis and color signals.
Key Components:
Demand Condition: A green upward-facing triangle indicates a potential demand condition.
Supply Condition: A red downward-facing triangle indicates a potential supply condition.
Curve Pattern Condition: A blue upward-facing triangle indicates a potential curve pattern condition.
Signal Condition: A yellow upward-facing triangle indicates a potential buy signal.
II. Understanding the Colors:
* Green: Represents the demand condition, which suggests potential buying pressure in the market. A green upward-facing triangle is plotted on the chart when the demand condition is met at a specific candle or bar.
* Red: Represents the supply condition, which suggests potential selling pressure in the market. A red downward-facing triangle is plotted on the chart when the supply condition is met at a specific candle or bar.
* Blue: Represents the curve pattern condition, which suggests the presence of a specific pattern based on price action analysis. A blue upward-facing triangle is plotted on the chart when the curve pattern condition is met at a specific candle or bar.
* Yellow: Represents the signal condition, which is a combination of the demand condition and the curve pattern condition. A yellow upward-facing triangle is plotted on the chart when the signal condition is met at a specific candle or bar, indicating a potential buy signal.
III. Decision-Making Process:
* Demand and Supply Conditions: Identify potential buying opportunities when a green demand condition is present. Consider potential selling opportunities when a red supply condition is present. Use these conditions to assess the overall market sentiment and potential price reversals.
* Curve Patterns: Analyze the presence of blue curve pattern conditions to identify specific price patterns. These patterns can provide additional confirmation for potential trading decisions.
* Signal Condition: Pay attention to the yellow signal condition, which indicates a potential buy signal. Evaluate the overall market context and consider entering a buy position when the signal condition is met.
* Risk Management: Implement proper risk management techniques such as setting stop-loss orders and position sizing to protect against potential losses.
IV. Conclusion:
This trading strategy leverages price action analysis and color signals to identify potential trading opportunities. The colors associated with each condition and signal serve as visual aids to highlight specific points on the chart. It's important to thoroughly backtest and validate the strategy before applying it to real-world trading scenarios. Additionally, always consider market conditions, risk management, and individual trading preferences when making trading decisions.
Disclaimer: Trading involves risks, and this document does not guarantee profitable outcomes. Traders should exercise caution and perform their own due diligence before engaging in any trading activity.
Remember to continually review and adapt your trading strategy based on market conditions and personal experiences to enhance its effectiveness.
TechniTrend: Average VolatilityTechniTrend: Average Volatility
Description:
The "Average Volatility" indicator provides a comprehensive measure of market volatility by offering three different types of volatility calculations: High to Low, Body, and Shadows. The indicator allows users to apply various types of moving averages (SMA, EMA, SMMA, WMA, and VWMA) on these volatility measures, enabling a more flexible approach to trend analysis and volatility tracking.
Key Features:
Customizable Volatility Types:
High to Low: Measures the range between the highest and lowest prices in the selected period.
Body: Measures the absolute difference between the opening and closing prices of each candle (just the body of the candle).
Shadows: Measures the difference between the wicks (shadows) of the candle.
Flexible Moving Averages:
Choose from five different types of moving averages to apply on the calculated volatility:
SMA (Simple Moving Average)
EMA (Exponential Moving Average)
SMMA (RMA) (Smoothed Moving Average)
WMA (Weighted Moving Average)
VWMA (Volume-Weighted Moving Average)
Custom Length:
Users can customize the period length for the moving averages through the Length input.
Visualization:
Three separate plots are displayed, each representing the average volatility of a different type:
Blue: High to Low volatility.
Green: Candle body volatility.
Red: Candle shadows volatility.
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This indicator offers a versatile and highly customizable tool for analyzing volatility across different components of price movement, and it can be adapted to different trading styles or market conditions.
Options Series - Explode BB⭐ Bullish Zone:
⭐ Bearish Zone:
⭐ Neutral Zone:
The provided script integrates Bollinger Bands with different lengths (20 and 200 periods) and applies customized candle coloring based on certain conditions. Here's a breakdown of its importance and insights:
⭐ 1. Dual Bollinger Bands (BBs):
Bollinger Bands (BB) with 20-period length:
This is the standard setting for Bollinger Bands, with a 20-period simple moving average (SMA) as the central line and upper/lower bands derived from the standard deviation.
These bands are used to identify volatility. Wider bands indicate higher volatility, while narrower bands indicate low volatility.
200-period BB:
This is a longer-term indicator providing insight into the overall trend and long-term volatility.
The 200-period bands filter out noise and offer a "macro" view of price movements compared to the 20-period bands, which focus on short-term price actions.
⭐ 2. Overlay of Bollinger Bands and SMA:
The script plots the Bollinger Bands along with the SMA (Simple Moving Average) of the 200-period BB. This gives traders both a short-term (20-period) and long-term (200-period) perspective, which is valuable for detecting major trend shifts or key support and resistance zones.
Using multiple time frames (20-period for short-term and 200-period for long-term) can help traders spot both immediate opportunities and overarching trends.
⭐ 3. Candle Coloring Based on Key Conditions:
Bullish Signal (GreenFluroscent): When the price closes above the upper 200-period Bollinger Band, the candle turns green, indicating a potential bullish breakout.
Bearish Signal (RedFluroscent): If the price closes below the lower 200-period Bollinger Band, the candle turns red, suggesting a bearish breakout.
Neutral or Uncertain Market: Candles are gray when the price remains between the upper and lower bands, indicating a lack of a strong directional bias.
This color-coded visualization allows traders to quickly assess market sentiment based on the Bollinger Bands' extremes.
⭐ 4. Strategic Importance of the Setup:
Multi-timeframe Analysis: Combining short-term (20-period) and long-term (200-period) Bollinger Bands enables traders to assess the market's overall volatility and trend strength. The longer-term bands act as a reference for broader trend direction, while the shorter-term bands can signal shorter-term pullbacks or entry/exit points.
Breakout Identification: By color-coding the candles when prices cross either the upper or lower 200-period bands, the script makes it easier to spot potential breakouts. This can be particularly helpful in trading strategies that rely on volatility expansions or trend-following tactics.
⭐ 5. Customization and Flexibility:
Custom Colors: The script uses distinct fluorescent green and red colors to highlight key bullish and bearish conditions, providing clear visual cues.
Simplicity with Flexibility: Despite its simplicity, the script leaves room for customization, allowing traders to adjust the Bollinger Band multipliers or apply different conditions to candle coloring for more nuanced setups.
This script enhances standard Bollinger Band usage by introducing multi-timeframe analysis, breakout signals, and visual cues for trend strength, making it a powerful tool for both trend-following and mean-reversion strategies.
🚀 Conclusion:
This script effectively simplifies volatility analysis by visually marking bullish, bearish, and neutral zones, making it a robust tool for identifying trade opportunities across multiple timeframes. Its dual-band approach ensures both trend-following and mean-reversion strategies are supported.
GAP Momentum Oscillator
This function calculates GAP Momentum, a measure of momentum based on the gaps between opening and closing prices over several periods.
Gaps are calculated for defined periods (here, by default, 14 periods). It determines :
UpGaps: the sum of positive gaps, i.e. openings that are higher than the previous period's close.
DnGaps: the sum of negative gaps, i.e. openings below the previous period's close.
It then calculates the GAP Momentum as the ratio between the sum of the up gaps and the sum of the down gaps, multiplied by 100. If the total of the down gaps is zero, the ratio takes a default value of 1 to avoid division by zero.
Standard Deviation based Upper Lower RangeThis script makes use of historical data for finding the standard deviation on daily returns. Based on the mean and standard deviation, the upper and lower range for the stock is shown upto 2x standard deviation. These bounds can be treated as volatility range for the next n trading sessions. This volatility is based on historical data. Users can change the lookback historical period, and can also set the time period (days) for upcoming trading sessions.
This indicator can be useful in determining stoploss and target levels along with the traditional support/resistance levels. It can also be useful in option trading where one needs to determine a range beyond which it is safe to sell an option.
A range of 1 SD has around 65% to 68% probability that it will not be breached. A range of 2 SD has around 95% probability that it will not be breached.
The indicator is based on Normal distribution theory. In future editions, I envision to also calculate the skewness and kurtosis so that we can determine if a stock is properly following Normal Distribution theory. That may further favor the calculated range.
Time based Insights [Digit23]Description:
The NSE Trading Time Insights indicator is a powerful tool designed for traders on the National Stock Exchange (NSE) of India. It provides a comprehensive overview of different trading sessions throughout the day, offering valuable insights into market characteristics and potential trading strategies for each time period.
Key Features:
1. Dynamic Session Display: The indicator automatically detects the current trading session and highlights it in the table.
2. Customizable Table: Users can choose to display either a full table showing all sessions or focus on the current session only.
3. User-Editable Content: Time ranges, session characteristics, and trading insights are fully customizable by the user.
4. Visual Customization: Table position and color scheme can be adjusted to suit individual preferences.
5. Market Status Indicator: Clearly shows when the market is closed.
Sessions Covered:
1. Opening Bell
2. Mid-Morning
3. Lunch Hour
4. Early Afternoon
5. Power Hour
For each session, the indicator displays:
- Time Range
- Session Name
- Market Characteristics
- Trading Insights
Customization Options:
- Table Position: Choose from top-left, top-right, bottom-left, or bottom-right of the chart.
- Color Scheme: Customize colors for header, cells, highlighting, and market closed status.
- Session Details: Edit time ranges, characteristics, and trading insights for each session.
Usage:
This indicator is particularly useful for:
1. New traders learning about intraday market dynamics on the NSE.
2. Experienced traders looking for a quick reference of session characteristics.
3. Traders developing or refining time-based trading strategies.
4. Anyone seeking to understand the typical flow of the trading day on the NSE.
Note:
The indicator uses the chart's time to determine the current session. Ensure your chart is set to the correct time zone for accurate results.
Disclaimer:
This indicator is for informational purposes only. The provided insights and characteristics are general in nature and may not reflect current market conditions. Always conduct your own analysis and risk assessment before making trading decisions.
Dynamic Resistance and Support LinesThis script is designed to dynamically plot support and resistance lines based on full-dollar and half-dollar price levels relative to the close price on a chart. The script is particularly useful for day traders and scalpers, as it helps visualize key psychological price levels that often act as support and resistance zones in volatile and fast-moving markets in real time.
Key Features:
Dynamic Resistance and Support Levels:
Full-dollar levels: These are calculated by rounding the close price to the nearest full dollar and then extending the levels by adding and subtracting increments of 1 (e.g., $1, $2, $3).
Half-dollar levels: These are calculated by adding and subtracting 0.5 increments to the nearest full-dollar price, providing additional reference points. The historical full-dollar levels remain where support and resistance may have occurred in the past.
Extend Lines:
You can toggle whether the support and resistance lines are extended to the right, left, or both directions. This allows flexibility in projecting potential future areas of support or resistance.
Custom Line Extension:
The user can set the number of bars (or time periods) that the support and resistance lines will extend, giving control over how long the levels remain on the chart.
Color-Coded Lines:
Red lines represent full-dollar resistance and support levels.
Blue lines represent half-dollar levels, making it easy to differentiate between key psychological price zones.
Line Flexibility:
The script allows the lines to extend both left and right on the chart, making it useful for analyzing historical price action or projecting future price movements. The number of bars for extension is customizable, allowing for tailored setups.
Nearest Full Dollar Plot:
The nearest full-dollar price level is plotted as a yellow circle on the chart. This serves as a quick visual cue for traders to monitor price proximity to critical levels.
Benefits in Day Trading, Scalping, and Volatile Markets:
Visualizing Key Psychological Levels:
Full-dollar and half-dollar price levels often act as psychological barriers for traders. This script helps traders easily identify these levels, which are important in both fast-moving markets and during sideways consolidation.
Improved Decision-Making:
By automatically drawing these support and resistance levels, the script helps day traders and scalpers make quicker and more informed decisions, especially in volatile markets where every second counts.
Adaptability to Market Conditions:
The flexibility of extending lines based on trader preferences allows the user to adapt the script to various market conditions, such as high volatility or trend-based trading, providing a clear view of potential breakout or reversal areas.
Better Risk Management:
Having predefined support and resistance levels helps traders better manage risk, as these levels can act as logical areas for setting stop losses or taking profits.
This script is especially valuable for traders looking to capitalize on quick market movements or identify key entry and exit points during market volatility.
H-Infinity Volatility Filter [QuantAlgo]Introducing the H-Infinity Volatility Filter by QuantAlgo 📈💫
Enhance your trading/investing strategy with the H-Infinity Volatility Filter , a powerful tool designed to filter out market noise and identify clear trend signals in volatile conditions. By applying an advanced H∞ filtering process, this indicator assists traders and investors in navigating uncertain market conditions with improved clarity and precision.
🌟 Key Features:
🛠 Customizable Noise Parameters: Adjust worst-case noise and disturbance settings to tailor the filter to various market conditions. This flexibility helps you adapt the indicator to handle different levels of market volatility and disruptions.
⚡️ Dynamic Trend Detection: The filter identifies uptrends and downtrends based on the filtered price data, allowing you to quickly spot potential shifts in the market direction.
🎨 Color-Coded Visuals: Easily differentiate between bullish and bearish trends with customizable color settings. The indicator colors the chart’s candles according to the detected trend for immediate clarity.
🔔 Custom Alerts: Set alerts for trend changes, so you’re instantly informed when the market transitions from bullish to bearish or vice versa. Stay updated without constantly monitoring the charts.
📈 How to Use:
✅ Add the Indicator: Add the H-Infinity Volatility Filter to your favourites and apply it to your chart. Customize the noise and disturbance parameters to match the volatility of the asset you are trading/investing. This allows you to optimize the filter for your specific strategy.
👀 Monitor Trend Shifts: Watch for clear visual signals as the filter detects uptrends or downtrends. The color-coded candles and line plots help you quickly assess market conditions and potential reversals.
🔔 Set Alerts: Configure alerts to notify you when the trend changes, allowing you to react quickly to potential market shifts without needing to manually track price movements.
🌟 How It Works and Academic Background:
The H-Infinity Volatility Filter is built on the foundations of H∞ (H-infinity) control theory , a mathematical framework originating from the field of engineering and control systems. Developed in the 1980s by notable engineers such as George Zames and John C. Doyle , this theory was designed to help systems perform optimally under uncertain and noisy conditions. H∞ control focuses on minimizing the worst-case effects of disturbances and noise, making it a powerful tool for managing uncertainty in complex environments.
In financial markets, where unpredictable price fluctuations and noise often obscure meaningful trends, this same concept can be applied to price data to filter out short-term volatility. The H-Infinity Volatility Filter adopts this approach, allowing traders and investors to better identify potential trends by reducing the impact of random price movements. Instead of focusing on precise market predictions, the filter increases the probability of highlighting significant trends by smoothing out market noise.
This indicator works by processing historical price data through an H∞ filter that continuously adjusts based on worst-case noise levels and disturbances. By considering several past states, it estimates the current price trend while accounting for potential external disruptions that might influence price behavior. Parameters like "worst-case noise" and "disturbance" are user-configurable, allowing traders to adapt the filter to different market conditions. For example, in highly volatile markets, these parameters can be adjusted to manage larger price swings, while in more stable markets, they can be fine-tuned for smoother trend detection.
The H-Infinity Volatility Filter also incorporates a dynamic trend detection system that classifies price movements as bullish or bearish. It uses color-coded candles and plots—green for bullish trends and red for bearish trends—to provide clear visual cues for market direction. This helps traders and investors quickly interpret the trend and act on potential signals. While the indicator doesn’t guarantee accuracy in trend prediction, it significantly reduces the likelihood of false signals by focusing on meaningful price changes rather than random fluctuations.
How It Can Be Applied to Trading/Investing:
By applying the principles of H∞ control theory to financial markets, the H-Infinity Volatility Filter provides traders and investors with a sophisticated tool that manages uncertainty more effectively. Its design makes it suitable for use in a wide range of markets—whether in fast-moving, volatile environments or calmer conditions.
The indicator is versatile and can be used in both short-term trading and medium to long-term investing strategies. Traders can tune the filter to align with their specific risk tolerance, asset class, and market conditions, making it an ideal tool for reducing the effects of market noise while increasing the probability of detecting reliable trend signals.
For investors, the filter can help in identifying medium to long-term trends by filtering out short-term price swings and focusing on the broader market direction. Whether applied to stocks, forex, commodities, or cryptocurrencies, the H-Infinity Volatility Filter helps traders and investors interpret market behavior with more confidence by offering a more refined view of price movements through its noise reduction techniques.
Disclaimer:
The H-Infinity Volatility Filter is designed to assist in market analysis by filtering out noise and volatility. It should not be used as the sole tool for making trading or investment decisions. Always incorporate other forms of analysis and risk management strategies. No statements or signals from this indicator or us should be considered financial advice. Past performance is not indicative of future results.
