Trailing Stop Loss Smart [TradingFinder] Market Trend + CVD/EMA🔵 Introduction
Trailing Stop Loss (TSL) is one of the most powerful tools available. A Trailing Stop Loss is a modification of a typical stop order that adjusts dynamically based on market price movement. It can be set at a defined percentage or dollar amount away from the security's current market price, making it a flexible tool for locking in profits while minimizing risk. Unlike standard stop-loss orders, a Trailing Stop follows the market in the direction of the trade, protecting gains without requiring constant manual adjustments.
The Trailing Stop Loss Smart (TFlab Trailing Stop) indicator takes this concept even further by incorporating advanced metrics like Cumulative Volume Delta (CVD), volume dynamics, and Average True Range (ATR). This combination not only enhances risk management but also acts as a trend identifier, providing traders with a powerful tool to capitalize on both short-term and long-term price movements.
This indicator also supports various Order Types, allowing for flexible strategies that include a trailing stop/stop-loss combo to maximize winning trades while minimizing losses. The trailing stop limit is particularly useful for traders who want to set their stop at a precise level relative to the current market price, either by a percentage or a dollar amount. The Trailing Stop Loss Smart indicator can help ensure that traders do not exit too early during trends, while the stop-loss feature kicks in during reversals.
The advantages of using a Trailing Stop Loss are its ability to protect profits and reduce the emotional decision-making process in volatile markets. However, like all trading strategies, it has disadvantages, such as the risk of triggering too early during normal market fluctuations. By understanding how the Trailing Stop Loss Smart indicator integrates features like CVD, ATR, and volume analysis, traders can leverage its full potential while navigating these pros and cons.
With its unique ability to track market movements and trends using Cumulative Volume Delta, volume dynamics, and ATR-based trailing stops, this indicator offers a complete solution for traders looking to secure profits while minimizing downside risk. Whether you're employing a simple trailing stop or a trailing stop/stop-loss combo, this tool provides all the flexibility and precision needed to execute winning trades in various markets, including Forex, Crypto, and Stock.
🔵 How to Use
The Trailing Stop Loss Smart indicator integrates multiple advanced components to provide traders with superior risk management and trend identification.
Here’s how each part of the logic works :
🟣 Cumulative Volume Delta (CVD) Logic
The CVD tracks buying and selling pressure by calculating the difference between upward and downward price movements. When there’s more buying pressure, the CVD is positive, indicating a potential bullish trend. Conversely, more selling pressure results in a negative CVD, pointing to a bearish trend.
CVD Trend Detection : The indicator determines whether the market is in a bullish or bearish phase by comparing the CVD to its moving average. A bullish trend is confirmed when the CVD is above its moving average and the price is closing higher.
A bearish trend occurs when the CVD is below its moving average and the price is closing lower. This trend detection is critical for determining whether the trailing stop should be placed below the price (bullish) or above it (bearish).
🟣 Volume Dynamics
Volume is a key factor in identifying market strength. The Trailing Stop Loss Smart indicator pulls volume data based on the market selected (Forex, Crypto, or Stock) and adjusts the trailing stop based on whether the market is experiencing high volume or low volume.
High Volume : When the current volume exceeds the average volume, the market is in a high-volume state. During these conditions, the trailing stop is placed closer to the price, as high volume often indicates strong trends with less chance of reversals.
Low Volume : In low-volume conditions, the trailing stop gives the market more room to breathe by placing the stop further away from the price. This prevents premature stop-outs in periods of reduced market activity.
🟣 ATR-Based Trailing Stop
The Average True Range (ATR) is used to measure market volatility. The Trailing Stop Loss Smart uses the ATR to dynamically adjust the stop-loss distance.
Bullish Market : When a bullish trend is detected, the trailing stop is placed below the lowest price of the recent bars (determined by the Bar Back parameter), and adjusted by the ATR Multiplier. This allows for tighter protection during strong bullish trends.
Bearish Market : When the market is bearish, the trailing stop is placed above the highest price of recent bars, also adjusted by the ATR Multiplier. This ensures that short positions are safeguarded against sudden reversals.
🟣 Dynamic Stop-Loss Updates
The trailing stop is updated every few bars (according to the Refiner parameter), ensuring it remains relevant to the most recent price action and volume changes. This dynamic feature ensures the stop-loss adapts to both trending and volatile market conditions, without requiring manual intervention.
High Volume with Trends : In periods of high volume and a confirmed trend, the stop-loss is positioned tightly to lock in profits while minimizing the risk of reversal.
Low Volume with Trends : In low-volume conditions, the stop-loss is placed further from the price, allowing the market to move freely without triggering premature exits.
🟣 Visual Representation
The indicator visually represents the trailing stop on the chart, with green lines indicating bullish trends and red lines for bearish trends. This visual aid helps traders quickly assess the state of the market and the position of their trailing stop in real-time.
🔵 Settings
The Trailing Stop Loss Smart indicator offers several customizable settings to suit various trading strategies. Understanding these inputs is key to optimizing the tool for your specific trading style.
🟣 General Settings
Cumulative Mode : This controls how the CVD is calculated.
You can choose between :
EMA : Exponential Moving Average smoothing.
Periodic : Sums the delta over a fixed period.
CVD Period : Defines the look-back period for CVD calculation. A longer period smooths the data, making it less sensitive to short-term fluctuations.
Ultra Data : This Boolean input aggregates volume across multiple exchanges for a more comprehensive view of market activity.
Market Ultra Data : Select between Forex, Crypto, and Stock to ensure the indicator pulls accurate volume data for your market.
🟣 Logical Settings
Moving Average CVD Period : Defines the period for the moving average of the CVD. A longer period smooths the trend, reducing noise.
Moving Average Volume Period : Sets the period for the moving average used to distinguish between high and low volume conditions.
Level Finder Bar Back : Determines how many bars to look back when identifying the highest or lowest price for trailing stop placement.
Levels update per candles : Sets how often (in bars) the trailing stop should be updated to remain in sync with market movements.
ATR On : Toggles the use of ATR to adjust the trailing stop based on volatility.
ATR Multiplie r: Defines how far the stop is placed from the price based on the ATR. A larger multiplier increases the stop distance, reducing the likelihood of getting stopped out during market fluctuations.
ATR Multiplier Adjusts the distance of the trailing stop based on the ATR. A higher multiplier places the stop further from the price, providing more breathing room in volatile markets.
🔵 Conclusion
The Trailing Stop Loss Smart indicator is a comprehensive tool for traders looking to manage risk while identifying market trends. By incorporating Cumulative Volume Delta (CVD) to detect buying and selling pressure, volume dynamics to gauge market activity, and ATR to adjust for volatility, this indicator ensures that stop-loss levels are both adaptive and protective.
Whether you’re trading in Forex, Crypto, or Stock markets, the Trailing Stop Loss Smart allows you to capitalize on trends while dynamically adjusting to changing market conditions. Its ability to distinguish between high-volume and low-volume periods ensures that you’re not stopped out prematurely during periods of consolidation or market hesitation.
By providing real-time visual feedback, dynamic adjustments, and trend identification, this indicator serves as a vital tool for traders aiming to maximize profits while minimizing risk. Its versatility and adaptability make it an essential part of any trader’s toolkit, helping you stay ahead in fast-moving markets while safeguarding your positions.
Educational
Abdozo - Highlight First DaysAbdozo - Highlight First Days Indicator
This Pine Script indicator helps traders easily identify key timeframes by highlighting the first trading day of the week and the first day of the month. It provides visual markers directly on your chart, helping you stay aware of potential market trends and turning points.
Features:
- Highlight First Day of the Week (Monday): Automatically marks Mondays to help you track weekly market cycles.
- Highlight First Day of the Month: Spot the start of each month with ease to analyze monthly performance and trends.
Quarterly Highlight ModelDiscover a new edge in your market analysis with our latest TradingView script. Designed to highlight quarterly performance, this tool not only offers insights into individual companies but also serves as a powerful lens to examine broader market trends.
Key Features:
- Quarterly Highlights: Easily identify and analyze each company's performance across four quarters, with each quarter represented by a unique color for clear visual distinction.
- Trend Analysis: Use quarterly data to spot trends and make informed decisions.
Enhance your trading strategy with deeper insights and a comprehensive view of market conditions. Check it out and let’s revolutionize the way we understand the markets!
Visualization of price changes with Updated LineThis indicator is used to identify the upward or downward momentum of a trend and to visualize the corresponding price fluctuations.
Calculation of the Fluctuation
The price fluctuation (Fluctuation) is calculated and added to the rising fractuation array if it is rising or to the falling fractuation array if it is falling.
Calculating Moving Averages
A moving average is calculated for each fractuation to determine the momentum or strength of the trend. In this case, the higher the value of the moving average, the stronger the momentum in that direction.
Generation of Cross Signals
Detects the point at which a rising moving average crosses a falling moving average. At this crossing point, a triangle shape will be plotted on the chart at the timing of a possible trend turning point or push.
Displaying Lines
Based on this crosspoint, a line is drawn. This line represents a push in the direction of the trend and helps to identify price reversals and pushes. The line will rise when the uptrend is strengthening and fall when the downtrend is gaining momentum.
Thus, the signals and lines used to determine trend pushes and momentum are plotted visually and designed to help traders make decisions based on this information.
Alternative Shark Harmonic Pattern [TradingFinder] ALT Shark🔵 Introduction
The Alternative Shark harmonic pattern, similar to the original Shark harmonic pattern introduced by Scott Carney, is a powerful tool in technical analysis used to identify potential reversal zones (PRZ) in financial markets.
These harmonic patterns help traders spot key turning points in market trends by relying on specific Fibonacci ratios. The Alternative Shark pattern is particularly unique due to its distinct Fibonacci retracements within the PRZ, which differentiate it from the standard Shark pattern and provide traders with more precise entry and exit signals.
By focusing on harmonic patterns and utilizing tools like the Harmonic Pattern Indicator, traders can easily identify both the Shark and Alternative Shark patterns, making it easier to find PRZs and capture potential trend reversals. This enhanced detection of potential reversal zones allows for better trade optimization and improved risk management.
Incorporating the Alternative Shark pattern into your technical analysis strategy enables you to enhance your trading performance by identifying market reversals with greater accuracy, improving the timing of your trades, and reducing risks associated with sudden market shifts.
🟣 Understanding the Types of Alternative Shark Pattern
The Alternative Shark harmonic pattern, much like the original Shark pattern, forms at the end of price trends and is divided into two types: Bullish and Bearish Alternative Shark patterns.
Bullish Alternative Shark Pattern :
This pattern typically forms at the end of a downtrend, signaling a potential reversal into an uptrend. Traders can use this pattern to identify buy entry points. The image below illustrates the core components of the Bullish Alternative Shark Pattern.
Bearish Alternative Shark Pattern :
Conversely, the Bearish Alternative Shark Pattern appears at the end of an uptrend and signals a potential reversal to a downtrend. This variation allows traders to adjust their strategies for selling. The image below outlines the characteristics of the Bearish Alternative Shark Pattern.
🟣 Differences Between Shark and Alternative Shark Patterns
Although both patterns share similar structures and serve as tools for identifying price reversals, there is one key difference between them :
AB to XA Ratio : In the Shark pattern, the AB leg retraces between 1 and 2 of the XA leg, whereas in the Alternative Shark pattern, this retracement is reduced to 0.382 to 0.618 of the XA leg. This difference in the retracement ratio leads to slightly different trade signals and can affect the timing of entry and exit points.
Other ratios and reversal signals remain consistent between the two patterns, but this difference in the AB to XA ratio provides traders with more nuanced opportunities to optimize their trades.
🔵 How to Use
🟣 Trading with the Bullish Alternative Shark Pattern
The Bullish Alternative Shark Pattern functions similarly to the traditional Bullish Shark, acting as a reversal pattern that helps traders recognize the end of a downtrend and the beginning of an uptrend.
The main distinction lies in the reduced AB retracement, which can offer more refined entry signals. Once the pattern completes, traders can look to enter buy trades and place a stop-loss below the lowest point of the pattern for effective risk management.
🟣 Trading with the Bearish Alternative Shark Pattern
The Bearish Alternative Shark Pattern operates much like the Bearish Shark pattern but with the adjusted AB to XA ratio. This difference provides traders with unique entry points for sell trades. Once the pattern is fully identified, traders can enter short positions, placing a stop-loss above the highest point of the pattern to safeguard against market fluctuations.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Forma t: If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵 Conclusion
The Alternative Shark harmonic pattern, despite its structural similarity to the traditional Shark pattern, introduces a key difference in the AB to XA ratio, making it a valuable addition to the trader’s toolkit. This subtle variation enables traders to pinpoint reversal points with greater accuracy and fine-tune their trading strategies.
As with any technical pattern, it is crucial to use the Alternative Shark pattern in combination with other technical indicators and strong risk management practices. Incorporating this pattern into a broader trading strategy can help traders enhance their ability to detect and capitalize on market reversals more effectively.
Fibonacci Retracement Levels (Horizontal)With this, you should be able to see the Fibonacc-i retracement levels plotted as horizontal lines on your chart. If needed, you can adjust the len parameter to increase or decrease the lookback period used to calculate the high and low points.
Horizontal Lines: I've added horizontal lines for each Fibonacci retracement level (0%, 23.6%, 38.2%, 50%, 61.8%, 100%), starting from the current bar index to ensure they extend horizontally across the chart.
Labels: Labels are now placed on the right side of the chart for each level so you can easily identify the Fibonacci levels.
MomentumSignal Kit RSI-MACD-ADX-CCI-CMF-TSI-EStoch// ----------------------------------------
// Description:
// ----------------------------------------
// MomentumKit RSI/MACD-ADX-CCI-CMF-TSI-EStoch Suite is a comprehensive momentum indicator suite designed to provide robust buy and sell signals through the consensus of multiple normalized momentum indicators. This suite integrates the following indicators:
// - **Relative Strength Index (RSI)**
// - **Stochastic RSI**
// - **Moving Average Convergence Divergence (MACD)** with enhanced logic
// - **True Strength Index (TSI)**
// - **Commodity Channel Index (CCI)**
// - **Chaikin Money Flow (CMF)**
// - **Average Directional Index (ADX)**
// - **Ehlers' Stochastic**
//
// **Key Features:**
// 1. **Normalization:** Each indicator is normalized to a consistent scale, facilitating easier comparison and interpretation across different momentum metrics. This uniform scaling allows traders to seamlessly analyze multiple indicators simultaneously without the confusion of differing value ranges.
//
// 2. **Consensus-Based Signals:** By combining multiple indicators, MomentumKit generates buy and sell signals based on the agreement among various momentum measurements. This multi-indicator consensus approach enhances signal reliability and reduces the likelihood of false positives.
//
// 3. **Overlap Analysis:** The normalization process aids in identifying overlapping signals, where multiple indicators point towards a potential change in price or momentum. Such overlaps are strong indicators of significant market movements, providing traders with timely and actionable insights.
//
// 4. **Enhanced Logic for MACD:** The MACD component within MomentumKit utilizes enhanced logic to improve its responsiveness and accuracy in detecting trend changes.
//
// 5. **Debugging Features:** MomentumKit includes advanced debugging tools that display individual buy and sell signals generated by each indicator. These features are intended for users with technical and programming skills, allowing them to:
// - **Visualize Signal Generation:** See real-time buy and sell signals for each integrated indicator directly on the chart.
// - **Adjust Signal Thresholds:** Modify the criteria for what constitutes a buy or sell signal for each indicator, enabling tailored analysis based on specific trading strategies.
// - **Filter and Manipulate Signals:** Enable or disable specific indicators' contributions to the overall buy and sell signals, providing flexibility in signal generation.
// - **Monitor Indicator Behavior:** Utilize debug plots and labels to understand how each indicator reacts to market movements, aiding in strategy optimization.
//
// **Work in Progress:**
// MomentumKit is continuously evolving, with ongoing enhancements to its algorithms and user interface. Current debugging features are designed to offer deep insights for technically adept users, allowing for extensive customization and fine-tuning. Future updates aim to introduce more user-friendly interfaces and automated optimization tools to cater to a broader audience.
//
// **Usage Instructions:**
// - **Visibility Controls:** Users can toggle the visibility of individual indicators to focus on specific momentum metrics as needed.
// - **Parameter Adjustments:** Each indicator comes with customizable parameters, allowing traders to fine-tune the suite according to their trading strategies and market conditions.
// - **Debugging Features:** Enable the debugging mode to visualize individual indicator signals and adjust their contribution to the overall buy/sell signals. This requires a basic understanding of the underlying indicators and their operational thresholds.
//
// **Benefits:**
// - **Simplified Analysis:** Normalization simplifies the process of analyzing multiple indicators, making it easier to identify consistent signals across different momentum measurements.
// - **Improved Decision-Making:** Consensus-based signals backed by multiple normalized indicators provide a higher level of confidence in trading decisions.
// - **Versatility:** Suitable for various trading styles and market conditions, MomentumKit offers a versatile toolset for both novice and experienced traders.
//
// **Technical Requirements:**
// - **Programming Knowledge:** To fully leverage the debugging and signal manipulation features, users should possess a foundational understanding of Pine Script and the mechanics of momentum indicators.
// - **Customization Skills:** Ability to adjust indicator parameters and debug filters to align with specific trading strategies.
//
// **Disclaimer:**
// This indicator suite is intended for educational and analytical purposes only and does not constitute financial advice. Trading involves significant risk, and past performance is not indicative of future results. Always conduct your own analysis or consult a qualified financial advisor before making trading decisions.
Time Based 3 Candle Model CRT FrameworkThe 3 Candle Model Overview:
The 3 Candle Model serves as a sophisticated framework for traders to navigate the complexities of financial markets, particularly within futures and forex trading. This guide not only elaborates on the model's key features but also emphasizes its originality and practical usefulness in the TradingView community. The core principle of the 3 Candle Model revolves around understanding how candle patterns can represent significant price ranges, offering valuable insights into potential market movements. By integrating the model with other critical trading concepts such as the Power of Three (PO3), Open-High-Low-Close (OHLC), and Turtle Soup setups, traders can enhance their ability to identify high-probability trades and achieve better trading outcomes.
Indicator includes:
3 Customizable Timeframe choices to fractally frame 3 candle models for precision
Live Timers for each timeframe to always be aware of the models timing
Parent Candle tracking on every preffered timeframe until new models parent candle is printed
Key Features of the 3 Candle Model
The 3 Candle Model primarily utilizes a three-candle structure, where the first candle establishes a price range, the second candle may act as a confirmation (often termed a "turtle soup"), and the third candle provides the breakout or continuation. This structure is pivotal in determining entry and exit points for trades, ensuring that each trading decision is backed by solid price action analysis.
OHLC Principle:
The Open-High-Low-Close (OHLC) concept is integral to the 3 Candle Model, allowing traders to analyze price action more effectively. Understanding the relationship between these four price points helps traders gauge market sentiment and potential reversals. By incorporating OHLC into the model, traders can develop a deeper understanding of market structure and its implications for future price movements.
Delivery States:
The 3 Candle Model emphasizes the importance of delivery states, which refer to the market's phase during specific time frames. Recognizing these states aids traders in determining the appropriate conditions for entering trades, particularly when combined with the power of three and candle range patterns. This understanding is crucial for positioning trades in alignment with market momentum.
High Probability Setups:
By aligning the 3 Candle Model with inside bar setups, traders can optimize their strategies for high-probability outcomes. This approach capitalizes on the inherent fractal nature of price movements, where previous patterns repeat at different scales. The combination of the model and inside bar setups enhances the trader's toolkit, allowing for more strategic trade placements.
Turtle Soup Formation:
The 3 Candle Model intricately connects with the Turtle Soup concept, which focuses on false breakouts. Identifying these formations at critical levels enhances the trader's ability to anticipate reversals or continuation patterns. The timing of these setups, particularly during specified times like 3:00 AM, 6:00 AM, 9:00 AM, and 1:00 PM, is crucial for maximizing trade success.
Using the 3 Candle Model in Trading
Integration with PO3:
The Power of Three (PO3) is a fundamental aspect of the 3 Candle Model that emphasizes the significance of three distinct stages of price delivery. Traders can leverage this principle by observing the initial range, confirming patterns, and executing trades during the third phase, leading to higher risk-to-reward ratios. This three-stage approach enhances a trader's ability to make informed decisions based on market behavior.
Targeting Midpoints:
Successful application of the 3 Candle Model involves targeting the midpoints of identified ranges. This practice not only provides strategic entry points but also enhances the probability of reaching desired profit levels. By targeting these midpoints, traders can refine their exit strategies and manage risk more effectively.
Aligning with Market Timing:
Timing is everything in trading. By synchronizing the 3 Candle Model setups with the aforementioned key timeframes, traders can better position themselves to exploit market dynamics. This alignment also facilitates the identification of high-quality trades that exhibit strong potential for profitability.
Prioritizing A+ Setups:
By focusing on the 3 Candle Model and its associated concepts, traders can prioritize A+ setups that exhibit a strong alignment of factors. This methodical approach enhances the quality of trades taken, leading to improved overall performance. By cultivating a strategy centered on high-probability setups, traders can maximize their return on investment.
Ensuring Originality and Usefulness
To meet the TradingView community guidelines, it is essential that this script is both original and useful. The 3 Candle Model, in its essence, is designed to provide traders with a unique perspective on market movements, free from generic or rehashed strategies. This tool integrates unique interpretations of the three-candle model and the associated strategies that are distinctly articulated and innovative.
Practical Applications: there are many practical applications of the 3 Candle Model in various trading contexts. This model in conjunction with other strategies to cultivate high-probability trade setups that can enhance performance across diverse market conditions.
Educational Value: This script is crafted with educational value in mind, providing insights that extend beyond mere trading signals. It encourages users to develop a deeper understanding of market mechanics and the interplay between price action, time, and trader psychology.
Conclusion
The 3 Candle Model provides a comprehensive framework for traders to enhance their trading strategies in the futures and forex markets. By understanding and applying the principles of this model alongside the Power of Three, OHLC concepts, and Turtle Soup formations, traders can significantly improve their ability to identify high-probability trades. The emphasis on timing, delivery states, and alignment of ranges ensures that traders are well-equipped to navigate the complexities of market movements, ultimately leading to more consistent and rewarding trading outcomes.
As trading involves risk, it is essential for traders to utilize these principles judiciously and maintain a disciplined approach to their trading strategies. By adhering to the TradingView community guidelines and emphasizing originality, usefulness, and detailed descriptions, this 3 Candle Model script stands as a valuable resource for traders seeking to refine their skills and achieve greater success in the financial markets.
Through this detailed exploration of the 3 Candle Model, traders will not only learn to recognize and exploit key patterns in price action but also appreciate the interconnectedness of various trading strategies that can significantly enhance their performance and profitability.
Futures Beta Overview with Different BenchmarksBeta Trading and Its Implementation with Futures
Understanding Beta
Beta is a measure of a security's volatility in relation to the overall market. It represents the sensitivity of the asset's returns to movements in the market, typically benchmarked against an index like the S&P 500. A beta of 1 indicates that the asset moves in line with the market, while a beta greater than 1 suggests higher volatility and potential risk, and a beta less than 1 indicates lower volatility.
The Beta Trading Strategy
Beta trading involves creating positions that exploit the discrepancies between the theoretical (or expected) beta of an asset and its actual market performance. The strategy often includes:
Long Positions on High Beta Assets: Investors might take long positions in assets with high beta when they expect market conditions to improve, as these assets have the potential to generate higher returns.
Short Positions on Low Beta Assets: Conversely, shorting low beta assets can be a strategy when the market is expected to decline, as these assets tend to perform better in down markets compared to high beta assets.
Betting Against (Bad) Beta
The paper "Betting Against Beta" by Frazzini and Pedersen (2014) provides insights into a trading strategy that involves betting against high beta stocks in favor of low beta stocks. The authors argue that high beta stocks do not provide the expected return premium over time, and that low beta stocks can yield higher risk-adjusted returns.
Key Points from the Paper:
Risk Premium: The authors assert that investors irrationally demand a higher risk premium for holding high beta stocks, leading to an overpricing of these assets. Conversely, low beta stocks are often undervalued.
Empirical Evidence: The paper presents empirical evidence showing that portfolios of low beta stocks outperform portfolios of high beta stocks over long periods. The performance difference is attributed to the irrational behavior of investors who overvalue riskier assets.
Market Conditions: The paper suggests that the underperformance of high beta stocks is particularly pronounced during market downturns, making low beta stocks a more attractive investment during volatile periods.
Implementation of the Strategy with Futures
Futures contracts can be used to implement the betting against beta strategy due to their ability to provide leveraged exposure to various asset classes. Here’s how the strategy can be executed using futures:
Identify High and Low Beta Futures: The first step involves identifying futures contracts that have high beta characteristics (more sensitive to market movements) and those with low beta characteristics (less sensitive). For example, commodity futures like crude oil or agricultural products might exhibit high beta due to their price volatility, while Treasury bond futures might show lower beta.
Construct a Portfolio: Investors can construct a portfolio that goes long on low beta futures and short on high beta futures. This can involve trading contracts on stock indices for high beta stocks and bonds for low beta exposures.
Leverage and Risk Management: Futures allow for leverage, which means that a small movement in the underlying asset can lead to significant gains or losses. Proper risk management is essential, using stop-loss orders and position sizing to mitigate the inherent risks associated with leveraged trading.
Adjusting Positions: The positions may need to be adjusted based on market conditions and the ongoing performance of the futures contracts. Continuous monitoring and rebalancing of the portfolio are essential to maintain the desired risk profile.
Performance Evaluation: Finally, investors should regularly evaluate the performance of the portfolio to ensure it aligns with the expected outcomes of the betting against beta strategy. Metrics like the Sharpe ratio can be used to assess the risk-adjusted returns of the portfolio.
Conclusion
Beta trading, particularly the strategy of betting against high beta assets, presents a compelling approach to capitalizing on market inefficiencies. The research by Frazzini and Pedersen emphasizes the benefits of focusing on low beta assets, which can yield more favorable risk-adjusted returns over time. When implemented using futures, this strategy can provide a flexible and efficient means to execute trades while managing risks effectively.
References
Frazzini, A., & Pedersen, L. H. (2014). Betting against beta. Journal of Financial Economics, 111(1), 1-25.
Fama, E. F., & French, K. R. (1992). The cross-section of expected stock returns. Journal of Finance, 47(2), 427-465.
Black, F. (1972). Capital Market Equilibrium with Restricted Borrowing. Journal of Business, 45(3), 444-454.
Ang, A., & Chen, J. (2010). Asymmetric volatility: Evidence from the stock and bond markets. Journal of Financial Economics, 99(1), 60-80.
By utilizing the insights from academic literature and implementing a disciplined trading strategy, investors can effectively navigate the complexities of beta trading in the futures market.
Judas Swing ICT 01 [TradingFinder] New York Midnight Opening M15🔵 Introduction
The Judas Swing (ICT Judas Swing) is a trading strategy developed by Michael Huddleston, also known as Inner Circle Trader (ICT). This strategy allows traders to identify fake market moves designed by smart money to deceive retail traders.
By concentrating on market structure, price action patterns, and liquidity flows, traders can align their trades with institutional movements and avoid common pitfalls. It is particularly useful in FOREX and stock markets, helping traders identify optimal entry and exit points while minimizing risks from false breakouts.
In today's volatile markets, understanding how smart money manipulates price action across sessions such as Asia, London, and New York is essential for success. The ICT Judas Swing strategy helps traders avoid common pitfalls by focusing on key movements during the opening time and range of each session, identifying breakouts and false breakouts.
By utilizing various time frames and improving risk management, this strategy enables traders to make more informed decisions and take advantage of significant market movements.
In the Judas Swing strategy, for a bullish setup, the price first touches the high of the 15-minute range of New York midnight and then the low. After that, the price returns upward, breaks the high, and if there’s a candlestick confirmation during the pullback, a buy signal is generated.
bearish setup, the price first touches the low of the range, then the high. With the price returning downward and breaking the low, if there’s a candlestick confirmation during the pullback to the low, a sell signal is generated.
🔵 How to Use
To effectively implement the Judas Swing strategy (ICT Judas Swing) in trading, traders must first identify the price range of the 15-minute window following New York midnight. This range, consisting of highs and lows, sets the stage for the upcoming movements in the London and New York sessions.
🟣 Bullish Setup
For a bullish setup, the price first moves to touch the high of the range, then the low, before returning upward to break the high. Following this, a pullback occurs, and if a valid candlestick confirmation (such as a reversal pattern) is observed, a buy signal is generated. This confirmation could indicate the presence of smart money supporting the bullish movement.
🟣 Bearish Setup
For a bearish setup, the process is the reverse. The price first touches the low of the range, then the high. Afterward, the price moves downward again and breaks the low. A pullback follows to the broken low, and if a bearish candlestick confirmation is seen, a sell signal is generated. This confirmation signals the continuation of the downward price movement.
Using the Judas Swing strategy enables traders to avoid fake breakouts and focus on strong market confirmations. The strategy is versatile, applying to FOREX, stocks, and other financial instruments, offering optimal trading opportunities through market structure analysis and time frame synchronization.
To execute this strategy successfully, traders must combine it with effective risk management techniques such as setting appropriate stop losses and employing optimal risk-to-reward ratios. While the Judas Swing is a powerful tool for predicting price movements, traders should remember that no strategy is entirely risk-free. Proper capital management remains a critical element of long-term success.
By mastering the ICT Judas Swing strategy, traders can better identify entry and exit points and avoid common traps from fake market movements, ultimately improving their trading performance.
🔵 Setting
Opening Range : High and Low identification time range.
Extend : The time span of the dashed line.
Permit : Signal emission time range.
🔵 Conclusion
The Judas Swing strategy (ICT Judas Swing) is a powerful tool in technical analysis that helps traders identify fake moves and align their trades with institutional actions, reducing risk and enhancing their ability to capitalize on market opportunities.
By leveraging key levels such as range highs and lows, fake breakouts, and candlestick confirmations, traders can enter trades with more precision. This strategy is applicable in forex, stocks, and other financial markets and, with proper risk management, can lead to consistent trading success.
Risk Reward CalculatorPlanning your trading is an important step that you must do before buying the stock.
Risk and Reward Calculator is an important tool for the trader.
With this calculator, you only need to put the capital for one trade and it will automaticaly put the plan for you. But if you want to enter your plan for buy and sell, you just need to check the button and enter the number. the risk and reward calculator will suggest position size based on the information.
The Steps to use Risk Reward Calculator
1. enter how many percentage you can accept if your analysis is wrong.
2. enter how much money you want to trade
3. it will automaticaly calculate the plan for you
4. you can change the reward
5. but if you want to enter your own number, you can check the box. After that enter the number you want for your new plan.
Vertical Lines & Price RangeThis Pine Script indicator visually marks significant historical price points on the chart by drawing vertical lines at intervals of 6 months, 3 months, and 1 month ago. Each vertical line is accompanied by a label indicating the time frame (6M, 3M, 1M). Additionally, it calculates and displays the percentage change between the closing prices at 6 months ago and 3 months ago, as well as between 3 months ago and 1 month ago, using horizontal lines to connect these price points. This tool is useful for analyzing trends and price movements over time, providing traders with a clear visual representation of historical performance.
Business Cycle Indicators (Normalized)This script aggregates and normalizes several key economic indicators to provide a comprehensive view of the business cycle and overall market conditions. By combining these indicators into a single, normalized average line, the script helps identify overarching trends and shifts in the economy, aiding in more informed trading and investment decisions.
Included Indicators:
Inverted National Financial Conditions Index (NFCI):
Symbol: FRED:NFCI
Measures financial stress in the markets. An inverted NFCI aligns higher values with positive financial conditions.
Inverted Net Percentage of Banks Tightening Lending Standards (DRTSCIS):
Symbol: FRED:DRTSCIS
Reflects changes in bank lending practices. Inverting this indicator means higher values indicate easing lending standards, which is generally positive for economic growth.
HYG Close Price (iShares High Yield Corporate Bond ETF):
Symbol: AMEX:HYG
Represents the performance of high-yield corporate bonds, providing insight into credit market conditions.
Inverted High-Yield Credit Spread (BAMLH0A0HYM2):
Symbol: FRED:BAMLH0A0HYM2
Measures the spread between high-yield bonds and risk-free securities. A narrower (inverted) spread indicates better market conditions.
Manufacturing/Non-Manufacturing New Orders Ratio:
Symbols: ECONOMICS:USMNO (Manufacturing), ECONOMICS:USNMNO (Non-Manufacturing)
Compares manufacturing to non-manufacturing new orders to gauge shifts in economic activity.
US PMI (Purchasing Managers' Index):
Symbol: ECONOMICS:USBCOI
An indicator of the economic health of the manufacturing sector.
10-Year Inflation Breakeven (T10YIE):
Symbol: FRED:T10YIE
Represents market expectations of inflation over the next ten years.
Inverted 10-Year Real Yield (DFII10):
Symbol: FRED:DFII10
Reflects the real yield on 10-year Treasury Inflation-Protected Securities (TIPS). Inverted to align higher values with positive economic sentiment.
Copper/Gold Ratio:
Symbols: CAPITALCOM:COPPER (Copper), TVC:GOLD (Gold)
Compares the prices of copper and gold, often used as a barometer for global economic activity.
Features:
Normalized Indicators: Each indicator is normalized to a 0-100 scale to facilitate direct comparison, regardless of their original units or scales.
Normalized Average Line: Calculates and plots the average of all available normalized indicators, providing a single line that represents the combined economic signals.
Customizable Display:
Show Individual Indicators: Option to display individual normalized indicators for detailed analysis.
Show Normalized Average Line: Option to display the normalized average line for a consolidated view.
Dynamic Labeling: Displays the latest value of the normalized average directly on the chart for quick reference.
How to Use:
Adding the Script:
Apply the script to a chart in TradingView using a timeframe that aligns with the frequency of the economic data (daily or weekly recommended).
Customization:
Show Normalized Average Line: Enabled by default to display the combined indicator.
Show Individual Indicators: Enable this option in the script settings to display all individual normalized indicators.
Interpretation:
Normalized Scale (0-100): Higher values generally indicate stronger economic conditions, while lower values may suggest weakening conditions.
Trend Analysis: Use the normalized average line to identify trends and potential turning points in the business cycle.
Notes:
Data Availability: Ensure you have access to all the data sources used in the script. Some data feeds may require specific TradingView subscriptions.
Indicator Limitations: Economic indicators are subject to revisions and may not reflect real-time market conditions.
No Investment Advice: This script is a tool for analysis and should not be considered as financial advice. Always conduct your own research before making investment decisions.
Consecutive CandlesTrading as Easy as One, Two, and Three
Unlock the power of simplicity in trading with this innovative script inspired by KepalaBesi. Designed for traders of all levels, this script provides a user-friendly approach to market analysis, enabling you to make informed trading decisions effortlessly.
Key Features:
Simplified Signals: Receive clear buy and sell signals based on robust technical indicators. The script streamlines your trading process, allowing you to focus on execution rather than analysis.
Customizable Settings: Tailor the script to fit your trading style. Adjust parameters to suit your risk tolerance and market preferences, ensuring a personalized trading experience.
Visual Clarity: Benefit from intuitive visual cues on your chart, making it easy to identify optimal entry and exit points. The clean interface helps you make quick decisions without confusion.
Whether you’re a seasoned trader or just starting, "Trading as Easy as One, Two, and Three" simplifies your trading journey, turning complex strategies into straightforward actions. Embrace a more efficient way to trade and elevate your performance in the markets!
Get Started Today!
Join the community of traders who have discovered the ease of trading with KepalaBesi's inspired script. Elevate your trading experience and achieve your financial goals with confidence!
Overnight Positioning w EMA - Strategy [presentTrading]I've recently started researching Market Timing strategies, and it’s proving to be quite an interesting area of study. The idea of predicting optimal times to enter and exit the market, based on historical data and various indicators, brings a dynamic edge to trading. Additionally, it is integrated with the 3commas bot for automated trade execution.
I'm still working on it. Welcome to share your point of view.
█ Introduction and How it is Different
The "Overnight Positioning with EMA " is designed to capitalize on market inefficiencies during the overnight trading period. This strategy takes a position shortly before the market closes and exits shortly after it opens the following day. What sets this strategy apart is the integration of an optional Exponential Moving Average (EMA) filter, which ensures that trades are aligned with the underlying trend. The strategy provides flexibility by allowing users to select between different global market sessions, such as the US, Asia, and Europe.
It is integrated with the 3commas bot for automated trade execution and has a built-in mechanism to avoid holding positions over the weekend by force-closing positions on Fridays before the market closes.
BTCUSD 20 mins Performance
█ Strategy, How it Works: Detailed Explanation
The core logic of this strategy is simple: enter trades before market close and exit them after market open, taking advantage of potential price movements during the overnight period. Here’s how it works in more detail:
🔶 Market Timing
The strategy determines the local market open and close times based on the selected market (US, Asia, Europe) and adjusts entry and exit points accordingly. The entry is triggered a specific number of minutes before market close, and the exit is triggered a specific number of minutes after market open.
🔶 EMA Filter
The strategy includes an optional EMA filter to help ensure that trades are taken in the direction of the prevailing trend. The EMA is calculated over a user-defined timeframe and length. The entry is only allowed if the closing price is above the EMA (for long positions), which helps to filter out trades that might go against the trend.
The EMA formula:
```
EMA(t) = +
```
Where:
- EMA(t) is the current EMA value
- Close(t) is the current closing price
- n is the length of the EMA
- EMA(t-1) is the previous period's EMA value
🔶 Entry Logic
The strategy monitors the market time in the selected timezone. Once the current time reaches the defined entry period (e.g., 20 minutes before market close), and the EMA condition is satisfied, a long position is entered.
- Entry time calculation:
```
entryTime = marketCloseTime - entryMinutesBeforeClose * 60 * 1000
```
🔶 Exit Logic
Exits are triggered based on a specified time after the market opens. The strategy checks if the current time is within the defined exit period (e.g., 20 minutes after market open) and closes any open long positions.
- Exit time calculation:
exitTime = marketOpenTime + exitMinutesAfterOpen * 60 * 1000
🔶 Force Close on Fridays
To avoid the risk of holding positions over the weekend, the strategy force-closes any open positions 5 minutes before the market close on Fridays.
- Force close logic:
isFriday = (dayofweek(currentTime, marketTimezone) == dayofweek.friday)
█ Trade Direction
This strategy is designed exclusively for long trades. It enters a long position before market close and exits the position after market open. There is no shorting involved in this strategy, and it focuses on capturing upward momentum during the overnight session.
█ Usage
This strategy is suitable for traders who want to take advantage of price movements that occur during the overnight period without holding positions for extended periods. It automates entry and exit times, ensuring that trades are placed at the appropriate times based on the market session selected by the user. The 3commas bot integration also allows for automated execution, making it ideal for traders who wish to set it and forget it. The strategy is flexible enough to work across various global markets, depending on the trader's preference.
█ Default Settings
1. entryMinutesBeforeClose (Default = 20 minutes):
This setting determines how many minutes before the market close the strategy will enter a long position. A shorter duration could mean missing out on potential movements, while a longer duration could expose the position to greater price fluctuations before the market closes.
2. exitMinutesAfterOpen (Default = 20 minutes):
This setting controls how many minutes after the market opens the position will be exited. A shorter exit time minimizes exposure to market volatility at the open, while a longer exit time could capture more of the overnight price movement.
3. emaLength (Default = 100):
The length of the EMA affects how the strategy filters trades. A shorter EMA (e.g., 50) reacts more quickly to price changes, allowing more frequent entries, while a longer EMA (e.g., 200) smooths out price action and only allows entries when there is a stronger underlying trend.
The effect of using a longer EMA (e.g., 200) would be:
```
EMA(t) = +
```
4. emaTimeframe (Default = 240):
This is the timeframe used for calculating the EMA. A higher timeframe (e.g., 360) would base entries on longer-term trends, while a shorter timeframe (e.g., 60) would respond more quickly to price movements, potentially allowing more frequent trades.
5. useEMA (Default = true):
This toggle enables or disables the EMA filter. When enabled, trades are only taken when the price is above the EMA. Disabling the EMA allows the strategy to enter trades without any trend validation, which could increase the number of trades but also increase risk.
6. Market Selection (Default = US):
This setting determines which global market's open and close times the strategy will use. The selection of the market affects the timing of entries and exits and should be chosen based on the user's preference or geographic focus.
Cumulative Volume Delta Histogram [TradingFinder] CVD Histogram🔵 Introduction
To fully understand Cumulative Volume Delta (CVD), it’s important to start by explaining Volume Delta. In trading, "Delta" refers to the difference between two values or the rate of change between two data points. Volume Delta represents the difference between buying and selling pressure for each candlestick on a chart, and this difference can vary across different time frames.
A positive delta indicates that buying volume exceeds selling volume, while a negative delta shows that selling pressure is stronger. When buying and selling volumes are equal, the volume delta equals zero.
The Cumulative Volume Delta (CVD) indicator tracks the cumulative difference between buying and selling volumes over time, helping traders analyze market dynamics and identify reliable trading signals through CVD divergences.
🔵 How to Use
Cumulative Volume Delta (CVD) is an essential technical analysis tool that aggregates delta values for each candlestick, creating a comprehensive indicator. This helps traders evaluate overall buying and selling pressure over market swings.
Unlike standard Volume Delta, which compares the delta on a candle-by-candle basis, CVD provides a broader view of buying and selling pressure during market trends. A downward-trending CVD suggests that selling pressure is dominant, which is typically a bearish signal.
Conversely, an upward-trending CVD indicates bullish sentiment, suggesting buyers are in control. This analysis becomes even more valuable when compared with price action and market structure, helping traders predict the direction of asset prices.
🟣 How to Use CVD in Trend Analysis and Market Reversals
Understanding how to detect trend changes using Cumulative Volume Delta is crucial for traders. Typically, CVD aligns with market structure, moving in the same direction as price trends.
However, divergences between CVD and price movements or signs of volume exhaustion can be powerful indicators of potential market reversals. Recognizing these patterns helps traders make more informed decisions and improve their trading strategies.
🟣 How to Spot Trend Exhaustion with CVD
CVD is particularly effective for identifying trend exhaustion in the market. For instance, if an asset's price hits a new low, but CVD doesn’t follow, this might indicate a lack of seller interest, signaling potential exhaustion and a possible reversal.
Similarly, if an asset reaches a new high but CVD fails to follow, it can suggest that buyers lack the strength to push the market higher, indicating a possible reversal to the downside.
🟣 How to Use CVD Divergence in Price Trend Analysis
Another effective use of CVD is identifying divergences in price trends. For example, if CVD breaks a previous high or low while the price remains stable, this divergence may indicate that buying or selling pressure is being absorbed.
For instance, if CVD rises sharply without a corresponding increase in asset prices, it may suggest that sellers are absorbing the buying pressure, which could lead to a strong sell-off. Conversely, if prices remain stable while CVD declines, it may indicate that buyers are absorbing selling pressure, likely leading to a price increase once the selling subsides.
🟣 CVD Display, Candlestick vs. Histogram – What’s the Difference?
CVD can be displayed in two different formats :
Candlestick Display : In this format, the data is shown as green and red candlesticks, each representing the difference in buying and selling pressure over a given time period. This display allows traders to visually analyze market pressure along with price changes.
Histogram Display : Here, the data is represented as vertical green and red bars, where each bar’s height corresponds to the volume delta. This format offers a clearer view of the strengths and weaknesses in market buying and selling pressure.
🟣 What are the Key Settings for CVD?
Cumulative Mode : CVD offers three modes: "Total," "Periodic," and "EMA." In "Total" mode, CVD accumulates the delta from the beginning to the end of the session. In "Periodic" mode, it accumulates volume periodically, resetting at specific intervals. In "EMA" mode, the CVD is smoothed using an Exponential Moving Average (EMA) to filter out short-term fluctuations.
Period : The "Period" setting allows you to define the number of bars or intervals for "Periodic" and "EMA" modes. A shorter period captures more short-term movements, while a longer period smooths out the fluctuations and provides a broader view of market trends.
Market Ultra Data : This feature integrates data from 26 major brokers into the volume calculations, providing more reliable volume data. It’s important to specify the type of market you are analyzing (Forex, crypto, etc.) as different brokers contribute to different markets. Enabling this setting ensures the highest accuracy in volume analysis.
🔵 Conclusion
Cumulative Volume Delta (CVD) is a powerful technical indicator that helps traders assess buying and selling pressure by aggregating the delta values of each candlestick. Whether displayed as candlesticks or histograms, CVD provides insights into market trends, helping traders make informed decisions.
CVD is particularly useful in identifying divergences and exhaustion in market trends. For example, if CVD does not align with price movements, it can signal a potential trend reversal. Traders use this tool to fine-tune their entry and exit points and better predict future market movements.
In summary, CVD is a versatile tool for analyzing volume data and understanding the balance of buying and selling pressure in the market, making it an invaluable asset in any trader’s toolkit
Volume-Supported Linear Regression Trend TableThe "Volume-Supported Linear Regression Trend Table" (VSLRT Table) script helps traders identify buy and sell opportunities by analyzing price trends and volume dynamics across multiple timeframes. It uses linear regression to calculate the trend direction and volume strength, visually representing this data with color-coded signals on the chart and in a table. Green signals indicate buying opportunities, while red signals suggest selling, with volume acting as confirmation of trend strength. Traders can use these signals for both short and long positions, with additional risk management and multi-timeframe validation to enhance the strategy.
------------------------------------------------------------------------------
To use the "Volume-Supported Linear Regression Trend Table" (VSLRT Table) script in a trading strategy, you would incorporate it into your decision-making process to identify potential buy and sell opportunities based on the trend and volume dynamics. Here’s how you could apply it for trading:
1. Understanding the Key Elements:
Trend Direction (Slope of Price): The script uses linear regression to assess the trend direction of the price. If the price slope is positive, the asset is likely in an uptrend; if it's negative, the asset is in a downtrend.
Volume-Backed Signals: The buy or sell signal is not only based on the price trend but also on volume. Volume is crucial in validating the strength of a trend; large volume often indicates strong interest in a direction.
2. Interpreting the Table and Signals:
The table displayed at the bottom-right of your TradingView chart gives you a clear overview of the trends across different timeframes:
Trend Colors:
Green hues (e.g., ccol11, ccol12, etc.): Indicate a buying trend supported by volume.
Red hues (e.g., ccol21, ccol22, etc.): Indicate a selling trend supported by volume.
Gray: Indicates weak or unclear trends where no decisive direction is present.
Buy/Sell Signals:
The script plots triangles on the chart:
Upward triangle below the bar signals a potential buy.
Downward triangle above the bar signals a potential sell.
3. Building a Trading Strategy:
Here’s how you can incorporate the script’s information into a trading strategy:
Buy Signal (Long Entry):
Look for green triangles (indicating a buy signal) below a bar.
Confirm that the trend color in the table for the relevant timeframe is green, which shows that the buy signal is supported by strong volume.
Ensure that the price is in an uptrend (positive slope) and that volume is increasing on upward moves, as this indicates buying interest.
Execute a long position when these conditions align.
Sell Signal (Short Entry):
Look for red triangles (indicating a sell signal) above a bar.
Confirm that the trend color in the table for the relevant timeframe is red, which shows that the sell signal is supported by strong volume.
Ensure that the price is in a downtrend (negative slope) and that volume is increasing on downward moves, indicating selling pressure.
Execute a short position when these conditions align.
Exiting the Trade:
Exit a long position when a sell signal (red triangle) appears, or when the trend color in the table shifts to red.
Exit a short position when a buy signal (green triangle) appears, or when the trend color in the table shifts to green.
4. Multi-Timeframe Confirmation:
The script provides trends across multiple timeframes (tf1, tf2, tf3), which can help in validating your trade:
Short-Term Trading: Use shorter timeframes (e.g., 3, 5 minutes) for intraday trades. If both short and medium timeframes align in trend direction (e.g., both showing green), it strengthens the signal.
Longer-Term Trading: If you are trading on a higher timeframe (e.g., daily or weekly), confirm that the lower timeframes align with your intended trade direction.
5. Adding Risk Management:
Stop-Loss: Place stop-losses below recent lows (for long trades) or above recent highs (for short trades) to minimize risk.
Take Profit: Consider taking profit at key support/resistance levels or based on a fixed risk-to-reward ratio (e.g., 2:1).
Example Strategy Flow:
For Long (Buy) Trade:
Signal: A green triangle appears below a candle (Buy signal).
Trend Confirmation: Check that the color in the table for your selected timeframe is green, confirming the trend is supported by volume.
Execute Long: Enter a long trade if the price is trending upward (positive price slope).
Exit Long: Exit when a red triangle appears above a candle (Sell signal) or if the trend color shifts to red in the table.
For Short (Sell) Trade:
Signal: A red triangle appears above a candle (Sell signal).
Trend Confirmation: Check that the color in the table for your selected timeframe is red, confirming the trend is supported by volume.
Execute Short: Enter a short trade if the price is trending downward (negative price slope).
Exit Short: Exit when a green triangle appears below a candle (Buy signal) or if the trend color shifts to green in the table.
6. Fine-Tuning:
Backtesting: Before trading live, use TradingView’s backtesting features to test the strategy on historical data and optimize the settings (e.g., length of linear regression, timeframe).
Combine with Other Indicators: Use this strategy alongside other technical indicators (e.g., RSI, MACD) for better confirmation.
In summary, the script helps identify trends with volume support, giving more confidence in buy/sell decisions. Combining these signals with risk management and multi-timeframe analysis can create a solid trading strategy.
90 Minute Cycles Full90-Minute Cycles Indicator for London and NY Sessions
This is a more streamlined version of the 90-minute cycle indicator by sunwoo101.
The 90-Minute Cycles Indicator is built to help traders easily follow and trade around key market cycles during the London and New York sessions. Marking important 90-minute intervals and highlighting the True Cycle Open Price provides clear visual cues to help you make more informed trading decisions.
Key Features:
90-Minute Cycles for London and NY: The indicator automatically draws vertical lines marking every 90-minute cycle for the London and NY sessions. These lines are great for timing your trades and spotting potential shifts in market momentum.
True Cycle Open Price: A horizontal line is drawn at the True Cycle Open Price, which stays visible throughout the session. This gives you a key reference point for price levels that tend to act as support or resistance.
Customizable Visuals: You can fully personalize the indicator’s appearance - adjusting the colors and line styles and even controlling when the lines appear - so it blends perfectly with your existing charts.
All Cycles Drawn from the Start: Unlike other indicators, this one draws all the 90-minute cycles right when the session begins, so you can see the full day’s potential market moves as soon as the first cycle starts.
What’s Different About This Indicator:
London Session Support: In addition to the NY session, you now have 90-minute cycles for the London session, complete with its own True Cycle Open Price.
Better Customization: You have more control over the visual aspects of the indicator, so it can be tailored to fit your specific charting preferences.
Complete Cycle Visibility: All cycles are drawn immediately when the session starts, providing a full view of the day’s key moments right from the opening.
How to Use:
This indicator is perfect for scalping and short-term trading. Whether trading Forex or Indices and following SMT concepts, the cycle timing can help you pinpoint the best times for entering and exiting trades. The True Cycle Open Price is a crucial level of support or resistance throughout the session, making it a key marker to watch.
Scalpers: Use the 90-minute cycle lines to time your trades with the market's rhythm.
Day Traders: This indicator tracks the London and NY sessions, making it an excellent tool for day trading strategies where timing is critical.
Multi-Session Support:
Whether you're trading the London or New York session, the indicator will automatically adjust to your time zone and align the cycles to the relevant session. This helps you stay on top of key market activity across major trading hubs without changing anything manually.
Magnificent 7 Overall Percentage Change with MA and Angle LabelsMagnificent 7 Overall Percentage Change with MA and Angle Labels
Overview:
The "Magnificent 7 Overall Percentage Change with MA and Angle Labels" indicator tracks the percentage change of seven key tech stocks (Apple, Microsoft, Amazon, NVIDIA, Tesla, Meta, and Alphabet) and displays their overall average percentage change on the chart. It also provides a moving average of this overall change and calculates the angle of the moving average to help traders gauge the momentum and direction of the overall trend.
How it works:
Real-Time Percentage Change: The indicator calculates the percentage change of each of the "Magnificent 7" stocks compared to their previous day's closing price, giving a snapshot of the market's performance.
Overall Average: It then computes the average of the seven stocks' percentage changes to reflect the broader movement of these major tech companies.
Moving Average: The indicator offers a choice of four types of moving averages (SMA, EMA, WMA, or VWMA) to smooth the overall percentage change, allowing traders to focus on the trend rather than short-term fluctuations.
Slope and Angle Calculation: To provide additional insights, the indicator calculates the slope of the moving average and converts it into an angle (in degrees). This can help traders determine the strength of the trend—steeper angles often indicate stronger momentum.
Key Features:
Percentage Change of the "Magnificent 7":
Tracks the percentage change of Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), NVIDIA (NVDA), Tesla (TSLA), Meta (META), and Alphabet (GOOGL) on the current chart's timeframe.
Overall Average Change:
Computes the average percentage change across all seven stocks, giving a combined view of how the most influential tech stocks are performing.
Customizable Moving Averages:
Offers four types of moving averages (SMA, EMA, WMA, VWMA) to provide flexibility in tracking the trend of the overall percentage change.
Angle Calculation:
Measures the angle of the moving average in degrees, which helps assess the strength of the market’s momentum. Alerts and visual cues can be triggered based on the angle's steepness.
Visual Cues:
The percentage change is plotted in green when positive and red when negative, with a background color that changes accordingly. A zero line is plotted for reference.
Use Case:
This indicator is ideal for traders and investors looking to track the collective performance of the most dominant tech companies in the market. It provides real-time insights into how the "Magnificent 7" stocks are moving together and offers clues about potential market momentum based on the direction and angle of their average percentage change.
Customization:
Moving Average Type and Length: Choose between different types of moving averages (SMA, EMA, WMA, VWMA) and adjust the length to suit your preferred timeframe.
Angle Threshold: Set an angle threshold to trigger alerts when the moving average slope becomes too steep, indicating strong momentum.
Alerts:
Alerts can be created based on the crossing of the moving average or when the angle of the moving average exceeds a specified threshold. This ensures traders are notified when the trend is accelerating or decelerating significantly.
Conclusion:
The "Magnificent 7 Overall Percentage Change with MA and Angle Labels" indicator is a powerful tool for those wanting to monitor the performance of the most influential tech stocks, analyze their overall trend, and receive timely alerts when market conditions shift.
Candle Speed and AccelerationCandle Speed and Acceleration Indicator
This indicator calculates the speed and acceleration of candlesticks in points per minute (P/M), providing traders with insights into the momentum and volatility of price movements during the trading session.
Features:
Speed Calculation: Measures the change in price per minute, helping you understand how quickly the market is moving.
Acceleration Measurement: Tracks the change in speed between consecutive candles, offering an additional layer of momentum analysis.
Real-Time Display: Shows the current, previous, and second previous candles' speed and acceleration in a table on the chart.
Crosshair Integration: Displays speed and acceleration at the crosshair location, offering instant feedback as you hover over the chart.
Alerts: Notifies you when candle speed exceeds a customizable threshold, helping you catch significant market moves as they happen.
Permanent Markers: Marks candles on the chart when the speed threshold is exceeded, visually highlighting high-speed candles.
This tool is essential for traders who want to analyze the momentum and acceleration of market movements, providing clear visual cues and alerts for potential trading opportunities.
[Becak] - Swing Point Retracement & Prediction" - Swing Point Retracement & Prediction," is designed to identify swing points in price action, calculate retracement levels, and predict potential future price levels. It's a technical analysis tool that can help traders identify potential support and resistance levels, as well as possible reversal points.
HOW IT WORK
Swing Point Detection:
The indicator uses the ta.pivothigh() and ta.pivotlow() functions to identify swing highs and lows within a specified lookback period.
Retracement Levels:
When a new swing point is detected, the indicator calculates a retracement level based on the user-defined retracement percentage. It draws a dashed blue line at the retracement level, along with a yellow circle and a label showing the price.
Swing Point Labeling:
Swing highs are marked with a green "H" label and the price, and Swing lows are marked with a red "L" label and the price.
Price Prediction:
Based on the most recent swing point, the indicator attempts to predict the next potential high or low. It draws a purple dashed line extending into the future, indicating the predicted price level.
HOW TO USE THIS INDICATOR:
adjust the input parameters:
"Swing Point Lookback": Determines how far back the indicator looks to identify swing points. A larger value will result in fewer, more significant swing points.
"Retracement %": Sets the percentage for calculating retracement levels. 50% is a common Fibonacci retracement level, but you can adjust this based on your trading strategy.
"Prediction Length": Determines how far into the future the prediction line extends.
Interpret the results:
Use the swing point labels (H and L) to quickly identify recent highs and lows. The blue dashed lines and yellow circles indicate potential support or resistance levels based on the retracement percentage. The purple dashed line shows a potential future price target. This can be used to set profit targets or identify potential reversal zones.
Combine with other analysis:
This indicator works best when combined with other forms of analysis, such as trend lines, moving averages, or candlestick patterns.
Use the retracement levels and predictions as potential entry or exit points, but always confirm with other indicators or price action signals.
Inflation-Adjusted Price IndicatorThis indicator allows traders to adjust historical prices for inflation using customizable CPI data. The script computes the adjusted price by selecting a reference date, the original price, and the CPI source (US CPI or custom input) and plots it as a line on the chart. Additionally, a table summarizes the adjusted price values and average and total inflation rates.
While the indicator serves as a standalone tool to understand inflation's impact on prices, it is a supportive element in more advanced trading strategies requiring accurate analysis of inflation-adjusted data.
Disclaimer
Please remember that past performance may not be indicative of future results.
Due to various factors, including changing market conditions, the strategy may no longer perform as well as in historical backtesting.
This post and the script don’t provide any financial advice.
ICT CheckListCredit to the owner of this script "TalesOfTrader"
The Awakening Checklist indicator is a tool designed to help traders evaluate certain key market conditions and elements before making trading decisions. It consists of a series of questions that the trader must answer using the options "Yes", "No" or "N/A" (not applicable).
“Has Asia Session ended?” : This question aims to determine if the Asian trading session has ended. The answer to this question can influence trading strategies depending on market conditions.
“Have you identified potential medium induction?” : This question concerns the identification of potential average inductions on the market. Recognizing these inductions can help traders anticipate future price movements.
"Have you identified potential PoI's": This question asks about the identification of potential points of interest on the market. These points of interest can indicate areas of significant support or resistance.
"Have you identified in which direction they are creating lQ?" : This question aims to determine in which direction market participants create liquidity (lQ). Understanding this dynamic can help make informed trade decisions.
“Have they induced Asia Range”: This question concerns the induction of the Asian range by market participants. Recognizing this induction can be important in assessing future price movements.
“Have you had a medium induction”: This question asks about the presence of a medium induction on the market. The answer to this question can influence trading prospects.
“Do you have a BoS away from the induction”: This question aims to find out if the trader has an offer (BoS) far from the identified induction. This can be a risk management strategy.
"Doas your induction PoI have imbalance": This question concerns the imbalance of points of interest (PoI) linked to induction. Recognizing this imbalance can help anticipate price movements.
“Do you have a valid target in mind”: This question aims to find out if the trader has a clear trading objective in mind. Having a goal can help guide trading decisions and manage risk.
