L1 Moving Average Fingerprint for Long Entry

14 thg 9, 2020

Level: 1

Background
This script combines moving average processing with highest high and lowest low to disclose the "fingerprint" of a specific trading pair to describe its unique behavior.

Function

Moving Average Fingerprint for Long Entry is a Level 1 pine script. It utilize several moving average of inherent highest high and lowest low and combine them with customized fingerprint coefficients to depict the unique behavior of a specific trading pair across multiple markets for long entry point identification.

Key Signal

• FingerPrint1~6 are basic-level fingerprints with moving average of highest high and lowest low.
  
  
• FingerPrint7~8 are composite fingerprint definitions with coefficients/weights,where coefficients/weights need to be tuned to discover the inherent "fingerprint" of a specific trading pair.
  
  
• FingerPrint10~12 are composite fingerprint calculation for long entry alerts
  
  
• ReadytoLong is a long entry filter where long entry point may happen within it. By using crossover() function to a customized threshold value, you can define accurate long entries.
  
  

Pros and Cons

Pros:

*1. Combine moving average and extreme points to disclose a trading pair behavior.
*2. Smart to tune specific set of parameters to obtain unique fingerprints of trading pairs.
*3. Smart position sizing scheme by adjusting the threshold values.

Cons:

*1. Require tune input parameters for each trading pair in a specific period and time frame.
*2. Only long entry was studied, no short entry and re-entry are available yet to form as a trading system.
*3. "ReadytoLong" is an inaccurate range where multiple long entries may happen at improper points in chop market.
*4. Complex input parameters to obtain a unique fingerprint set.


Remarks

Although I wrote pine script for more than two years, this is the first script published in the community. I will publish more with my works in this platform.

Hope the community can improve this concept and make it as a trading system.


Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

20 thg 3

Phát hành các Ghi chú

UP GRADE TO PINE V6:

OVERVIEW This indicator identifies optimal conditions for initiating long trades by analyzing smoothed moving average fingerprints derived from price action patterns across multiple timeframes. It provides tiered readiness scores displayed visually with color-coded backgrounds and directional icons signaling small/middle/large position sizing opportunities.
FEATURES
• Utilizes proprietary XSA (eXponential Smoothing Adaptation) algorithm for robust averaging calculations
• Generates twelve progressive fingerprint layers combining highest highs/lowest lows with weighted coefficients
• Creates three distinct entry tiers through threshold-based crossover triggers
• Includes fully customizable parameter controls for gene lengths (MAGene#), coefficient weights (FPCoeff#), and lookback windows
• Dynamic visualization system highlights market preparedness states

HOW TO USE

Add the script to your trading view chart
Fine-tune parameters according to desired risk profile and timeframe analysis • Shorter MAGene values increase responsiveness → higher false signals risk • Longer FPLookback extends historical pattern recognition window
Monitor colored backdrop for baseline sentiment indication: [color=#00FF00]Green[/color] – Increasing long opportunity likelihood
Initiate orders upon arrow appearance below candlesticks:
Yellow ▲: Risk 1% capital (low confidence)
Lime ▲▲: Risk 2% (moderate confidence)
Green ▲▲▲: Risk 3%+ (high confidence)
LIMITATIONS
• Heavy reliance on past volatility patterns may delay responses during sudden trend reversals
• Optimal performance observed in trending markets rather than ranging conditions
• Requires iterative backtesting to calibrate parameter combinations effectively

NOTES
• Critical to maintain consistent parameter relationships between MAGene# and corresponding FP Coefficients groups
• Backtesting recommended with 'What If' scenarios for varying market regimes