Silen's EMA AreasAre you tired of reading candles? 🧨 Do you want to bring more meaning to your chart? 🧹
Then this is the script for you!
This script does:
- Add several meaningfully pre-configured EMA lines to your chart - up to EMA 300
- Colors the areas between EMA lines in 3d colors - green and red
- The Smaller the EMA, the firmer the color
- Highlights the EMA 300 in a golden color
What is the meaning of this?
Let me introduce a new word to you: EMA FOLDING .
Yes, you heard right. With this indicator you can see in 3D how EMA lines are folding above and below each other, indicating severe mood swings in the chart.
This helps you keep track of what your instrument is actually doing while it enables you to cancel out the noise and messyness of ordinary candles which can be quite random and hard to read.
Once an EMA is fully positive or negatively folded (all ema lines are green and above each other from largest EMA to smallest EMA and vice versa for negatively folded) you can be sure that you are in a Trend or certain mood (for higher timeframes, from 15mins on).
I don't ever want to read any chart without having this indicator on. Whenever I present charts to anybody I use this indicator - and the feedback is insanely positive. People tend to read and understand charts much better with this indicator than just staring at candles.
Why is this indicator different to other EMA indicators and should thereby not be deleted by the TradingView Team due to redundance with other EMA indicators?
- This is not a simple indicator for EMAs
- Rather, this is an indicator to better and easier read the whole chart
- You can detect mood swings very easily which is very hard to do with a normal EMA indicator
- I haven't found any EMA indicator on TradingView that does this job so i sincerely believe it is extremely unique
- I sincerely believe it can help people get a much better understanding of charts without actualy getting into details of EMA's or even needing to know what an EMA is.
This indicator isn't intended for trading purposes, rather it is intended to give you a better and easier understanding of the chart. Of course - you can also use it for your trading but like I said, that is not the primary intended purpose.
This indicator comes pre-configured with quite optimal values (in my opinion) but of course can be fully customized. 🧮
Test it for yourself!
Chỉ báo và chiến lược
MA Touch Alert SystemThis is a alert system This Pine Script creates an alert system in TradingView to notify you whenever the price touches a specified moving average. With adjustable settings, you can set your preferred moving average period, such as 50 or 200. The script calculates this moving average and triggers an alert if the price crosses it from above or below, enabling you to stay informed about important trend reversals. A visual on-chart label marks these points, and the alert condition ensures you receive notifications through TradingView. Perfect for traders looking to automate key level monitoring, this script supports trend-following and reversal strategies.
Adaptive Support & Resistance Zones Description:
The Enhanced Support and Resistance Zones indicator identifies and visualizes significant support and resistance areas on the chart, helping traders spot potential reversal or breakout points. This tool offers advanced customization options for zone thickness, lookback period, validation criteria, and zone expiration, making it adaptable for various trading styles and market conditions.
Key Features:
1. Zone Thickness Multiplier: The Zone Thickness Multiplier controls the visual “thickness” of each support and resistance zone, allowing traders to adjust the width based on volatility or personal preference. A higher multiplier increases the zone’s range, capturing a wider area around the support or resistance level.
2. Lookback Periods for Support and Resistance: The Lookback for Resistance and Lookback for Support inputs define the number of bars analyzed to identify swing highs and lows, respectively. This allows traders to adjust how far back the script should search for key levels, which can be useful when adjusting for different timeframes or varying levels of historical significance in zones.
3. Minimum Touch Count: To filter out weak zones, the Minimum Touch Count setting establishes the required number of price “touches” (or tests) within a zone before it’s considered valid. By increasing this value, traders can focus only on zones that the price has interacted with frequently, indicating stronger potential support or resistance.
4. Zone Expiration Bars: The Zone Expiration Bars setting enables automatic expiration of older zones, reducing chart clutter from outdated levels. This parameter specifies the maximum number of bars a zone will remain active after its creation. When the set limit is reached, the zone is cleared, allowing the indicator to stay responsive to more recent price action.
5. Dynamic Visualization by Touch Count: Zones with more touches are displayed with a thicker line, visually emphasizing the strength of these areas. Zones with fewer touches are shown with a thinner line, helping traders easily distinguish between stronger and weaker support and resistance levels.
6. Alerts for Zone Touches: Alerts can be configured to notify traders when the price touches the support or resistance zones, offering real-time notifications for potential trading opportunities.
How to Use:
1. Adjusting Zone Thickness: Use the Zone Thickness Multiplier to expand or contract the width of each zone. A higher multiplier may be beneficial in volatile markets, where price tends to fluctuate around levels rather than touching them precisely. Lower values can provide a more precise zone in less volatile environments.
2. Setting Lookback Periods for Zone Identification: The Lookback for Resistance and Lookback for Support inputs allow traders to define how many historical bars to analyze for determining key levels. Longer lookbacks may be useful on higher timeframes to capture more significant support or resistance, while shorter lookbacks can be suitable for lower timeframes or more recent levels.
3. Filtering with Minimum Touch Count: Increase the Minimum Touch Count to filter for stronger zones. For example, setting a minimum touch count of 3 will display only zones that have been tested by the price at least three times, indicating potentially stronger support or resistance.
4. Configuring Zone Expiration: Use Zone Expiration Bars to limit how long each zone remains on the chart, helping to keep the focus on more recent levels. Expiring zones after a set number of bars can be especially useful on lower timeframes, where older levels may no longer be relevant.
5. Using Alerts for Real-Time Notifications: Set up alerts to receive notifications when price enters the support or resistance zones, allowing you to monitor potential trade setups without needing to watch the chart continuously.
This indicator is well-suited for traders aiming to identify high-quality support and resistance areas while managing chart clarity. With these customizable options, traders can adapt the indicator to match their unique trading style and market focus. For best results, test these settings on your preferred timeframe and adjust parameters to fit specific trading goals and market conditions.
Adaptive MA Crossover with ATR-Based Risk MarkersDescription:
The Cross MA Entry Indicator with ATR-Based Stop-Loss and Take-Profit Markers is a powerful tool designed to help traders identify trend-following opportunities while managing risk effectively. By combining customizable moving average (MA) crossovers with ATR-based stop-loss (SL) and take-profit (TP) markers, this indicator provides a complete entry and risk management framework in a single script.
Unique Features:
1. Versatile Moving Average Combinations: The indicator allows users to select from four types of moving averages—SMA, EMA, DEMA, and TEMA—for both fast and slow lines, enabling a variety of crossover configurations. This flexibility helps traders tailor entry signals to specific trading strategies, asset types, or market conditions, enhancing the adaptability of the indicator across different styles and preferences.
2. ATR-Based Dynamic Risk Management: Leveraging the Average True Range (ATR), the indicator dynamically calculates stop-loss and take-profit levels based on market volatility. This approach adjusts to changing market conditions, making it more responsive and reliable for setting realistic, volatility-based risk parameters.
3. Customizable Risk/Reward Ratio: Users can define their preferred risk/reward ratio (e.g., 2:1, 3:1) to tailor take-profit levels relative to stop-loss distances. This feature empowers traders to align trades with their individual risk management strategies and objectives, while maintaining consistency and discipline in execution.
4. Streamlined Visualization of Entry and Risk Levels: Upon a crossover, the indicator places discrete markers at the calculated SL and TP levels, avoiding clutter while providing traders with an immediate view of potential risk and reward. Small dots represent SL and TP levels, offering a clean, clear display of critical decision points.
How to Use:
1. Entry Signals from MA Crossovers: This indicator generates entry signals when the selected moving averages cross, with green markers indicating long entries and red markers indicating short entries. The customizable MA selection enables traders to optimize crossover signals for various timeframes and asset classes.
2. Integrated Risk Markers: SL and TP levels are shown as small dots at the crossover point, based on the ATR multiplier and risk/reward ratio settings. These markers allow traders to quickly visualize the defined risk and potential reward for each entry.
This indicator offers a comprehensive solution for trend-following strategies by combining entry signals with adaptive risk management. Suitable for multiple timeframes, it allows for backtesting and adjustments to ATR and risk/reward parameters for improved alignment with individual trading goals. As with all strategies, thorough testing is recommended to ensure compatibility with your trading approach.
Demo GPT - Day Trading Scalping StrategyOverview:
This strategy is designed for day trading and scalping, utilizing a combination of technical indicators, candlestick patterns, and volume analysis to determine entry and exit points. It focuses on capturing short-term price movements while ensuring that trades are executed under specific market conditions.
Key Components:
Technical Indicators Used:
Exponential Moving Average (EMA): The strategy uses the 20-period EMA to identify the trend direction. The EMA smooths out price data, helping traders make more informed decisions about potential buy or sell signals.
Volume Weighted Average Price (VWAP): VWAP is used to measure the average price a security has traded at throughout the day, based on both volume and price. This indicator helps assess whether the current price is above or below the average trading price.
Camarilla Pivot Points: The strategy calculates four levels of Camarilla pivots (S2, S3, R2, R3) based on the highest and lowest prices over the last 14 daily candles. These levels act as potential support and resistance zones, guiding entry and exit decisions.
Candlestick Analysis:
Buy Condition: A buy signal is triggered when:
The first candle (previous candle) is green (close > open).
The second candle (current candle) is also green and opens above the first candle.
The volume of the current candle exceeds the 20-period moving average of volume, indicating strong buying interest.
Sell Condition: A sell signal is triggered when:
The first candle is red (close < open).
The second candle opens below the first red candle.
The volume of the current candle also exceeds the 20-period moving average of volume, indicating strong selling pressure.
Position Management:
The strategy enters a long position (buy) when the buy condition is met and closes the long position when the sell condition is met. This approach aims to capture upward momentum while avoiding extended exposure to downside risks.
Trading Settings:
Capital Management: The strategy uses 100% of available capital for each trade, allowing for maximum exposure to potential gains.
Commission and Slippage: The script includes settings for a commission rate of 0.1% and slippage of 3, accounting for trading costs and potential price changes during order execution.
Date Filtering: The strategy allows users to set a start date (January 1, 2018) and an end date (December 31, 2069) for trade execution, providing flexibility in backtesting and live trading.
Visualization:
The script plots the 20 EMA, VWAP, and the Camarilla pivot levels on the chart for visual reference.
Buy and sell signals are visually represented with shapes on the chart, making it easy to identify potential trade opportunities at a glance.
Volume is plotted in a separate pane to assess trading activity, and a horizontal line at zero provides a reference point.
Summary:
This Day Trading Scalping Strategy is designed to exploit short-term price movements by using a combination of EMAs, VWAP, and Camarilla pivot levels, alongside candlestick patterns and volume analysis. It is well-suited for traders looking to make quick trades based on real-time market conditions while maintaining a disciplined approach to entry and exit points. The strategy is highly visual, allowing traders to quickly assess market conditions and make informed trading decisions.
Feel free to modify or adjust any aspects of the strategy according to your specific trading goals or preferences!
Long Short MomentumThis indicator is designed to visualize short-term and long-term momentum trends.The indicator calculates two momentum lines based on customizable lengths: a short momentum (Short Momentum) over a smaller period and a long momentum (Long Momentum) over a longer period. These lines are plotted relative to the chosen price source, typically the closing price.
The histogram, colored dynamically based on momentum direction, gives visual cues:
Green: Both short and long momentum are positive, indicating an upward trend.
Red: Both are negative, indicating a downward trend.
Gray: Mixed momentum, suggesting potential trend indecision.
PTS - Bollinger Bands with Trailing StopPTS - Bollinger Bands with Trailing Stop Strategy
Overview
The "PTS - Bollinger Bands with Trailing Stop" strategy is designed to capitalize on strong bullish market movements by combining the Bollinger Bands indicator with a dynamic trailing stop based on the Average True Range (ATR). This strategy aims to enter long positions during upward breakouts and protect profits through an adaptive exit mechanism.
Key Features
1. Bollinger Bands Indicator
Basis Moving Average Type: Choose from SMA, EMA, SMMA, WMA, or VWMA for the Bollinger Bands' basis line. Length: Adjustable period for calculating the moving average and standard deviation (default is 20). Standard Deviation Multiplier (StdDev): Determines the width of the bands (default is 2.0). Source: Select the price data used for calculations (default is the closing price).
2. Entry Conditions
The strategy enters a long position when the closing price crosses above the upper Bollinger Band , indicating strong upward momentum.
3. Exit Conditions
Trailing Stop Loss: Implemented using ATR to adjust dynamically with market volatility. ATR Length: Period for calculating ATR (default is 14). ATR Multiplier for Trailing Stop: Determines how closely the trailing stop follows the price (default is 2.0). Close Below Lower Bollinger Band: The strategy exits the long position if the closing price crosses below the lower Bollinger Band .
4. Risk Management
Commission and Slippage: Commission is set at 0.1%; slippage is set to 3. Position Sizing: Uses 100% of equity per trade (adjustable).
5. Date Range Filter
Specify the time period during which the strategy is active. Start Date: January 1, 2018. End Date: December 31, 2069.
Customizable Inputs
BB Length: Adjust the period for Bollinger Bands calculation. BB StdDev: Modify the standard deviation multiplier. Basis MA Type: Select the moving average type. Source: Choose the price data source. Offset: Shift the Bollinger Bands on the chart. ATR Length: Set the period for ATR calculation. ATR Multiplier for Trailing Stop: Adjust the trailing stop sensitivity.
Thought for 1m 7s
Description for the "PTS - Bollinger Bands with Trailing Stop" Strategy
PTS - Bollinger Bands with Trailing Stop Strategy
Overview
The "PTS - Bollinger Bands with Trailing Stop" strategy is designed to capitalize on strong bullish market movements by combining the Bollinger Bands indicator with a dynamic trailing stop based on the Average True Range (ATR). This strategy aims to enter long positions during upward breakouts and protect profits through an adaptive exit mechanism.
Key Features
1. Bollinger Bands Indicator
Basis Moving Average Type: Choose from SMA, EMA, SMMA, WMA, or VWMA for the Bollinger Bands' basis line. Length: Adjustable period for calculating the moving average and standard deviation (default is 20). Standard Deviation Multiplier (StdDev): Determines the width of the bands (default is 2.0). Source: Select the price data used for calculations (default is the closing price).
2. Entry Conditions
The strategy enters a long position when the closing price crosses above the upper Bollinger Band , indicating strong upward momentum.
3. Exit Conditions
Trailing Stop Loss: Implemented using ATR to adjust dynamically with market volatility. ATR Length: Period for calculating ATR (default is 14). ATR Multiplier for Trailing Stop: Determines how closely the trailing stop follows the price (default is 2.0). Close Below Lower Bollinger Band: The strategy exits the long position if the closing price crosses below the lower Bollinger Band .
4. Risk Management
Commission and Slippage: Commission is set at 0.1%; slippage is set to 3. Position Sizing: Uses 100% of equity per trade (adjustable).
5. Date Range Filter
Specify the time period during which the strategy is active. Start Date: January 1, 2018. End Date: December 31, 2069.
Customizable Inputs
BB Length: Adjust the period for Bollinger Bands calculation. BB StdDev: Modify the standard deviation multiplier. Basis MA Type: Select the moving average type. Source: Choose the price data source. Offset: Shift the Bollinger Bands on the chart. ATR Length: Set the period for ATR calculation. ATR Multiplier for Trailing Stop: Adjust the trailing stop sensitivity.
How the Strategy Works
1. Initialization
Calculates Bollinger Bands and ATR based on selected parameters.
2. Entry Logic
Opens a long position when the closing price exceeds the upper Bollinger Band.
3. Exit Logic
Uses a trailing stop loss based on ATR. Exits if the closing price drops below the lower Bollinger Band.
4. Date Filtering
Executes trades only within the specified date range.
Advantages
Adaptive Risk Management: Trailing stop adjusts to market volatility. Simplicity: Clear entry and exit signals. Customizable Parameters: Tailor the strategy to different assets or conditions.
Considerations
Aggressive Position Sizing: Using 100% equity per trade is high-risk. Market Conditions: Best in trending markets; may produce false signals in sideways markets. Backtesting: Always test on historical data before live trading.
Disclaimer
This strategy is intended for educational and informational purposes only. Trading involves significant risk, and past performance is not indicative of future results. Assess your financial situation and consult a financial advisor if necessary.
Usage Instructions
1. Apply the Strategy: Add it to your TradingView chart. 2. Configure Inputs: Adjust parameters to suit your style and asset. 3. Analyze Backtest Results: Use the Strategy Tester. 4. Optimize Parameters: Experiment with input values. 5. Risk Management: Evaluate position sizing and incorporate risk controls.
Final Notes
The "PTS - Bollinger Bands with Trailing Stop" strategy provides a framework to leverage momentum breakouts while managing risk through adaptive trailing stops. Customize and test thoroughly to align with your trading objectives.
Dual Momentum StrategyThis Pine Script™ strategy implements the "Dual Momentum" approach developed by Gary Antonacci, as presented in his book Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk (McGraw Hill Professional, 2014). Dual momentum investing combines relative momentum and absolute momentum to maximize returns while minimizing risk. Relative momentum involves selecting the asset with the highest recent performance between two options (a risky asset and a safe asset), while absolute momentum considers whether the chosen asset has a positive return over a specified lookback period.
In this strategy:
Risky Asset (SPY): Represents a stock index fund, typically more volatile but with higher potential returns.
Safe Asset (TLT): Represents a bond index fund, which generally has lower volatility and acts as a hedge during market downturns.
Monthly Momentum Calculation: The momentum for each asset is calculated based on its price change over the last 12 months. Only assets with a positive momentum (absolute momentum) are considered for investment.
Decision Rules:
Invest in the risky asset if its momentum is positive and greater than that of the safe asset.
If the risky asset’s momentum is negative or lower than the safe asset's, the strategy shifts the allocation to the safe asset.
Scientific Reference
Antonacci's work on dual momentum investing has shown the strategy's ability to outperform traditional buy-and-hold methods while reducing downside risk. This approach has been reviewed and discussed in both academic and investment publications, highlighting its strong risk-adjusted returns (Antonacci, 2014).
Reference: Antonacci, G. (2014). Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk. McGraw Hill Professional.
MAPE of Expected Value and Percent ResidualsOverview
This indicator calculates and visualizes the Mean Absolute Percentage Error (MAPE) and the percent residuals of the expected value compared to the actual closing price. The purpose of this indicator is to provide insights into the accuracy of price forecasts by comparing predicted values to actual market outcomes. The expected values are derived from the transform model, which uses the mean line from the mean and standard deviation lines as an indicator for expected price movement. Users can customize the number of periods over which calculations are averaged.
Inputs
Mean Period (Bars) : Specifies the number of bars used to calculate the moving average of the change between closing prices. This value should match the value used in the mean and standard deviation lines indicator.
MAPE Period (Bars) : Specifies the number of bars used to calculate the moving average of the absolute percentage error.
Outputs
Percent Residuals Histogram : Displays the percentage error between the predicted (expected) value and the actual closing price. The bars are color-coded, with green indicating positive residuals (i.e., the actual value is higher than the predicted value) and red indicating negative residuals (i.e., the actual value is lower than the predicted value).
Reference Line : A horizontal line at zero is added to the chart to indicate the baseline for percent residuals.
Mean Absolute Percentage Error (MAPE) Line : Plots the moving average of the absolute percentage error over the specified period, helping users gauge the average accuracy of their predictions over time.
Methodology
Calculation of Individual Bar Normalized Residuals: The normalized residuals for each bar are computed by taking the difference between the actual closing price and the predicted (expected) value, divided by the closing price. If the actual closing price is above the expected value, the residual is considered positive and is represented in green; otherwise, it is negative and represented in red. This normalization provides a standardized measure of deviation that allows for consistent comparison across different bars.
Mean Absolute Percentage Error (MAPE) Calculation: Over the user-defined period, the absolute values of the normalized residuals are computed and subsequently averaged to determine the Mean Absolute Percentage Error (MAPE). This metric quantifies the average magnitude of the forecast errors, providing a clear indication of the model's predictive accuracy over time.
How to Use
Add Indicators to Chart : First, apply the mean and standard deviation lines indicator to the chart, then add the MAPE of Expected Value and Percent Residuals indicator to evaluate the accuracy of price forecasts.
Set Parameters : Set the `Mean Period (Bars)` to be the same value in both the mean and standard deviation lines indicator and the MAPE indicator to ensure accuracy. Adjust the `MAPE Period (Bars)` to fine-tune the length of historical data used in calculating the MAPE.
Interpret Residuals and MAPE : Use the percent residuals histogram to understand how the actual closing price deviates from predictions. The MAPE line helps track the average prediction accuracy over time.
This tool is particularly useful for traders who want to evaluate the performance of their price prediction models based on the transform model and track how well their expected values, derived from mean and standard deviation lines , align with actual market movements.
Delta Volume-ATR ChangeDelta Volume-ATR Change Indicator
The Delta Volume-ATR Change Indicator is designed to analyze the effectiveness of volume in relation to price volatility by comparing the percentage change in volume with the percentage change in ATR over the last two bars. This indicator provides insights into how volume changes impact price movement, allowing traders to gauge the strength or weakness of market momentum based on volume efficiency.
Formula:
% Volume Change = (Volume - Volume ) / Volume * 100
% ATR Change = (ATR - ATR ) / ATR * 100
Delta = % Volume Change - % ATR Change
The result, Delta, shows the difference between the volume change and ATR change, with positive delta indicating a stronger volume impact and negative delta suggesting weaker volume support relative to price movement.
Features:
Multiple Display Styles: Choose from three visualization styles — Histogram, Line, or Columns — to display delta values in a way that best fits your analysis style.
Delta Smoothing: The smoothed Delta line (using an SMA with customizable length) provides a clearer trend of volume efficiency over time.
Color Coding: Delta bars change color based on direction — green for positive values and red for negative, allowing for quick visual assessment of volume effectiveness.
Applications:
Identify market conditions where high volume is driving price effectively (positive Delta).
Detect instances of low volume efficiency, where price changes may not be fully supported by volume (negative Delta).
Useful for short-term and swing traders looking to understand volume patterns in relation to volatility.
This indicator is a valuable tool for traders seeking to gain insights into volume and volatility interplay, helping improve timing and reliability in market entries and exits.
ChikouTradeIndicatorndicator Title: ChikouTradeIndicator
Short Title: CTI
Description:
The ChikouTradeIndicator (CTI) is designed to help traders identify potential trend reversals by analyzing short-term and long-term price ranges. It calculates the midpoint of the highest high and lowest low over two customizable lengths – the Turning Length (TL) and the Kumo Length (KL) – and determines market momentum by plotting the difference between these midpoints.
How It Works:
- Positive values (above the zero line) indicate bullish momentum, suggesting potential buying opportunities.
- Negative values (below the zero line) indicate bearish momentum, suggesting potential selling opportunities.
Features:
- Two customizable inputs:
- TL (Turning Length): Period used to calculate the short-term high/low midpoint.
- KL (Kumo Length): Period used to calculate the longer-term high/low midpoint.
Disclaimer:
This indicator is intended as a supportive tool to enhance trading analysis. It does not guarantee profitability and should be used with caution. Trading involves risk, and users should perform their own research before making any trading decisions. The developer is not responsible for any losses incurred through the use of this indicator.
Daily Structure Cycles - Session - PDH/PDLDescription:
The Session Windows indicator visualizes predefined trading sessions on the chart, highlighting key price ranges with customizable background colors and labels. Designed to track session-specific high and low levels, this tool provides visual guidance for analyzing market behavior across different trading windows. It includes three customizable sessions—Asian, Window 1, and Window 2—that can be toggled on or off.
How It Works:
Each session is marked with a colored box, representing the high and low range for that session. Border colors and box transparency can be customized, allowing for easy visual differentiation.
The indicator also displays the high and low levels of the previous day, marked as PDH (Previous Day High) and PDL (Previous Day Low). When the current price crosses these levels, the line style changes, signaling potential support or resistance levels.
Labels for each session high and low are positioned based on the user-defined offset and alignment options, providing easy-to-read markers at the end of each session.
Usage: This indicator helps traders observe price behavior within distinct trading sessions and how the current price interacts with previous day’s highs and lows, which may offer insight into support/resistance zones. Traders can use this tool to spot breakout or reversal points as price moves through session highs/lows or crosses the previous day’s levels.
Customization Options:
Session Settings: Choose session times for Asian, Window 1, and Window 2.
Color Settings: Set different colors for session background and border lines.
Label Positioning: Adjust label offset and vertical position for high/low markers.
PDH/PDL Levels: Toggle lines for previous day’s high and low, with color and line style options.
Limitations: This indicator is designed for visualization purposes and is best used alongside other tools for confirmation, as it does not provide standalone buy or sell signals.
Fibonacci ATR Fusion - Strategy [presentTrading]Open-script again! This time is also an ATR-related strategy. Enjoy! :)
If you have any questions, let me know, and I'll help make this as effective as possible.
█ Introduction and How It Is Different
The Fibonacci ATR Fusion Strategy is an advanced trading approach that uniquely integrates Fibonacci-based weighted averages with the Average True Range (ATR) to identify and capitalize on significant market trends.
Unlike traditional strategies that rely on single indicators or static parameters, this method combines multiple timeframes and dynamic volatility measurements to enhance precision and adaptability. Additionally, it features a 4-step Take Profit (TP) mechanism, allowing for systematic profit-taking at various levels, which optimizes both risk management and return potential in long and short market positions.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
The Fibonacci ATR Fusion Strategy utilizes a combination of technical indicators and weighted averages to determine optimal entry and exit points. Below is a breakdown of its key components and operational logic.
🔶 1. Enhanced True Range Calculation
The strategy begins by calculating the True Range (TR) to measure market volatility accurately.
TR = max(High - Low, abs(High - Previous Close), abs(Low - Previous Close))
High and Low: Highest and lowest prices of the current trading period.
Previous Close: Closing price of the preceding trading period.
max: Selects the largest value among the three calculations to account for gaps and limit movements.
🔶 2. Buying Pressure (BP) Calculation
Buying Pressure (BP) quantifies the extent to which buyers are driving the price upwards within a period.
BP = Close - True Low
Close: Current period's closing price.
True Low: The lower boundary determined in the True Range calculation.
🔶 3. Ratio Calculation for Different Periods
To assess the strength of buying pressure relative to volatility, the strategy calculates a ratio over various Fibonacci-based timeframes.
Ratio = 100 * (Sum of BP over n periods) / (Sum of TR over n periods)
n: Length of the period (e.g., 8, 13, 21, 34, 55).
Sum of BP: Cumulative Buying Pressure over n periods.
Sum of TR: Cumulative True Range over n periods.
This ratio normalizes buying pressure, making it comparable across different timeframes.
🔶 4. Weighted Average Calculation
The strategy employs a weighted average of ratios from multiple Fibonacci-based periods to smooth out signals and enhance trend detection.
Weighted Avg = (w1 * Ratio_p1 + w2 * Ratio_p2 + w3 * Ratio_p3 + w4 * Ratio_p4 + Ratio_p5) / (w1 + w2 + w3 + w4 + 1)
w1, w2, w3, w4: Weights assigned to each ratio period.
Ratio_p1 to Ratio_p5: Ratios calculated for periods p1 to p5 (e.g., 8, 13, 21, 34, 55).
This weighted approach emphasizes shorter periods more heavily, capturing recent market dynamics while still considering longer-term trends.
🔶 5. Simple Moving Average (SMA) of Weighted Average
To further smooth the weighted average and reduce noise, a Simple Moving Average (SMA) is applied.
Weighted Avg SMA = SMA(Weighted Avg, m)
- m: SMA period (e.g., 3).
This smoothed line serves as the primary signal generator for trade entries and exits.
🔶 6. Trading Condition Thresholds
The strategy defines specific threshold values to determine optimal entry and exit points based on crossovers and crossunders of the SMA.
Long Condition = Crossover(Weighted Avg SMA, Long Entry Threshold)
Short Condition = Crossunder(Weighted Avg SMA, Short Entry Threshold)
Long Exit = Crossunder(Weighted Avg SMA, Long Exit Threshold)
Short Exit = Crossover(Weighted Avg SMA, Short Exit Threshold)
Long Entry Threshold (T_LE): Level at which a long position is triggered.
Short Entry Threshold (T_SE): Level at which a short position is triggered.
Long Exit Threshold (T_LX): Level at which a long position is exited.
Short Exit Threshold (T_SX): Level at which a short position is exited.
These conditions ensure that trades are only executed when clear trends are identified, enhancing the strategy's reliability.
Previous local performance
🔶 7. ATR-Based Take Profit Mechanism
When enabled, the strategy employs a 4-step Take Profit system to systematically secure profits as the trade moves in the desired direction.
TP Price_1 Long = Entry Price + (TP1ATR * ATR Value)
TP Price_2 Long = Entry Price + (TP2ATR * ATR Value)
TP Price_3 Long = Entry Price + (TP3ATR * ATR Value)
TP Price_1 Short = Entry Price - (TP1ATR * ATR Value)
TP Price_2 Short = Entry Price - (TP2ATR * ATR Value)
TP Price_3 Short = Entry Price - (TP3ATR * ATR Value)
- ATR Value: Calculated using ATR over a specified period (e.g., 14).
- TPxATR: User-defined multipliers for each take profit level.
- TPx_percent: Percentage of the position to exit at each TP level.
This multi-tiered exit strategy allows for partial position closures, optimizing profit capture while maintaining exposure to potential further gains.
█ Trade Direction
The Fibonacci ATR Fusion Strategy is designed to operate in both long and short market conditions, providing flexibility to traders in varying market environments.
Long Trades: Initiated when the SMA of the weighted average crosses above the Long Entry Threshold (T_LE), indicating strong upward momentum.
Short Trades: Initiated when the SMA of the weighted average crosses below the Short Entry Threshold (T_SE), signaling robust downward momentum.
Additionally, the strategy can be configured to trade exclusively in one direction—Long, Short, or Both—based on the trader’s preference and market analysis.
█ Usage
Implementing the Fibonacci ATR Fusion Strategy involves several steps to ensure it aligns with your trading objectives and market conditions.
1. Configure Strategy Parameters:
- Trading Direction: Choose between Long, Short, or Both based on your market outlook.
- Trading Condition Thresholds: Set the Long Entry, Short Entry, Long Exit, and Short Exit thresholds to define when to enter and exit trades.
2. Set Take Profit Levels (if enabled):
- ATR Multipliers: Define how many ATRs away from the entry price each take profit level is set.
- Take Profit Percentages: Allocate what percentage of the position to close at each TP level.
3. Apply to Desired Chart:
- Add the strategy to the chart of the asset you wish to trade.
- Observe the plotted Fibonacci ATR and SMA Fibonacci ATR indicators for visual confirmation.
4. Monitor and Adjust:
- Regularly review the strategy’s performance through backtesting.
- Adjust the input parameters based on historical performance and changing market dynamics.
5. Risk Management:
- Ensure that the sum of take profit percentages does not exceed 100% to avoid over-closing positions.
- Utilize the ATR-based TP levels to adapt to varying market volatilities, maintaining a balanced risk-reward ratio.
█ Default Settings
Understanding the default settings is crucial for optimizing the Fibonacci ATR Fusion Strategy's performance. Here's a precise and simple overview of the key parameters and their effects:
🔶 Key Parameters and Their Effects
1. Trading Direction (`tradingDirection`)
- Default: Both
- Effect: Determines whether the strategy takes both long and short positions or restricts to one direction. Selecting Both allows maximum flexibility, while Long or Short can be used for directional bias.
2. Trading Condition Thresholds
Long Entry (long_entry_threshold = 58.0): Higher values reduce false positives but may miss trades.
Short Entry (short_entry_threshold = 42.0): Lower values capture early short trends but may increase false signals.
Long Exit (long_exit_threshold = 42.0): Exits long positions early, securing profits but potentially cutting trends short.
Short Exit (short_exit_threshold = 58.0): Delays short exits to capture favorable movements, avoiding premature exits.
3. Take Profit Configuration (`useTakeProfit` = false)
- Effect: When enabled, the strategy employs a 4-step TP mechanism to secure profits at multiple levels. By default, it is disabled to allow users to opt-in based on their trading style.
4. ATR-Based Take Profit Multipliers
TP1 (tp1ATR = 3.0): Sets the first TP at 3 ATRs for initial profit capture.
TP2 (tp2ATR = 8.0): Targets larger trends, though less likely to be reached.
TP3 (tp3ATR = 14.0): Optimizes for extreme price moves, seldom triggered.
5. Take Profit Percentages
TP Level 1 (tp1_percent = 12%): Secures 12% at the first TP.
TP Level 2 (tp2_percent = 12%): Exits another 12% at the second TP.
TP Level 3 (tp3_percent = 12%): Closes an additional 12% at the third TP.
6. Weighted Average Parameters
Ratio Periods: Fibonacci-based intervals (8, 13, 21, 34, 55) balance responsiveness.
Weights: Emphasizes recent data for timely responses to market trends.
SMA Period (weighted_avg_sma_period = 3): Smoothens data with minimal lag, balancing noise reduction and responsiveness.
7. ATR Period (`atrPeriod` = 14)
Effect: Sets the ATR calculation length, impacting TP sensitivity to volatility.
🔶 Impact on Performance
- Sensitivity and Responsiveness:
- Shorter Ratio Periods and Higher Weights: Make the weighted average more responsive to recent price changes, allowing quicker trade entries and exits but increasing the likelihood of false signals.
- Longer Ratio Periods and Lower Weights: Provide smoother signals with fewer false positives but may delay trade entries, potentially missing out on significant price moves.
- Profit Taking:
- ATR Multipliers: Higher multipliers set take profit levels further away, targeting larger price movements but reducing the probability of reaching these levels.
- Fixed Percentages: Allocating equal percentages at each TP level ensures consistent profit realization and risk management, preventing overexposure.
- Trade Direction Control:
- Selecting Specific Directions: Restricting trades to Long or Short can align the strategy with market trends or personal biases, potentially enhancing performance in trending markets.
- Risk Management:
- Take Profit Percentages: Dividing the position into smaller percentages at multiple TP levels helps lock in profits progressively, reducing risk and allowing the remaining position to ride further trends.
- Market Adaptability:
- Weighted Averages and ATR: By combining multiple timeframes and adjusting to volatility, the strategy adapts to different market conditions, maintaining effectiveness across various asset classes and timeframes.
---
If you want to know more about ATR, can also check "SuperATR 7-Step Profit".
Enjoy trading.
Jackson Volume breaker Indication# Jackson Volume Breaker Beta
### Advanced Volume Analysis Indicator
## Description
The Jackson Volume Breaker Beta is a sophisticated volume analysis tool that helps traders identify buying and selling pressure by analyzing price action and volume distribution. This indicator separates and visualizes buying and selling volume based on where the price closes within each candle's range, providing clear insights into market participation and potential trend strength.
## Key Features
1. **Smart Volume Distribution**
- Automatically separates buying and selling volume
- Color-coded volume bars (Green for buying, Red for selling)
- Winning volume always displayed on top for quick visual reference
2. **Real-time Volume Analysis**
- Shows current candle's buy/sell ratio
- Displays total volume with smart number formatting (K, M, B)
- Percentage-based volume distribution
3. **Technical Overlays**
- 20-period Volume Moving Average
- Dynamic scaling relative to price action
- Clean, uncluttered visual design
## How to Use
### Installation
1. Add the indicator to your chart
2. Adjust the Volume Scale input based on your preference (default: 0.08)
3. Toggle the Moving Average display if desired
### Reading the Indicator
#### Volume Bars
- **Green Bars**: Represent buying volume
- **Red Bars**: Represent selling volume
- **Stacking**: The larger volume (winning side) is always displayed on top
- **Height**: Relative to the actual volume, scaled for chart visibility
#### Information Table
The top-right table shows three key pieces of information:
1. **Left Percentage**: Winning side's volume percentage
2. **Middle Percentage**: Losing side's volume percentage
3. **Right Number**: Total volume (abbreviated)
### Trading Applications
1. **Trend Confirmation**
- Strong buying volume in uptrends confirms bullish pressure
- High selling volume in downtrends confirms bearish pressure
- Volume divergence from price can signal potential reversals
2. **Support/Resistance Breaks**
- High volume on breakouts suggests stronger moves
- Low volume on breaks might indicate false breakouts
- Monitor volume distribution for break direction confirmation
3. **Reversal Identification**
- Volume shift from selling to buying can signal potential bottoms
- Shift from buying to selling can indicate potential tops
- Use with price action for better entry/exit points
## Input Parameters
1. **Volume Scale (0.01 to 1.0)**
- Controls the height of volume bars
- Default: 0.08
- Adjust based on your chart size and preference
2. **Show MA (True/False)**
- Toggles 20-period volume moving average
- Useful for identifying volume trends
- Default: True
3. **MA Length (1+)**
- Changes the moving average period
- Default: 20
- Higher values for longer-term volume trends
## Best Practices
1. **Multiple Timeframe Analysis**
- Compare volume patterns across different timeframes
- Look for volume convergence/divergence
- Use higher timeframes for major trend confirmation
2. **Combine with Other Indicators**
- Price action patterns
- Support/resistance levels
- Momentum indicators
- Trend indicators
3. **Volume Pattern Recognition**
- Monitor for unusual volume spikes
- Watch for volume climax patterns
- Identify volume dry-ups
## Tips for Optimization
1. Adjust the Volume Scale based on your chart size
2. Use smaller timeframes for detailed volume analysis
3. Compare current volume bars to historical patterns
4. Watch for volume/price divergences
5. Monitor volume distribution changes near key price levels
## Note
This indicator works best when combined with proper price action analysis and risk management strategies. It should not be used as a standalone trading system but rather as part of a comprehensive trading approach.
## Version History
- Beta Release: Initial public version
- Features buy/sell volume separation, moving average, and real-time analysis
- Optimized for both intraday and swing trading timeframes
## Credits
Developed by Jackson based on other script creators
Special thanks to the trading community for feedback and suggestions
Volume Based Price Prediction [EdgeTerminal]This indicator combines price action, volume analysis, and trend prediction to forecast potential future price movements. The indicator creates a dynamic prediction zone with confidence bands, helping you visualize possible price trajectories based on current market conditions.
Key Features
Dynamic price prediction based on volume-weighted trend analysis
Confidence bands showing potential price ranges
Volume-based candle coloring for enhanced market insight
VWAP and Moving Average overlay
Customizable prediction parameters
Real-time updates with each new bar
Technical Components:
Volume-Price Correlation: The indicator analyzes the relationship between price movements and volume, Identifies stronger trends through volume confirmation and uses Volume-Weighted Average Price (VWAP) for price equilibrium
Trend Strength Analysis: Calculates trend direction using exponential moving averages, weights trend strength by relative volume and incorporates momentum for improved accuracy
Prediction Algorithm: combines current price, trend, and volume metrics, projects future price levels using weighted factors and generates confidence bands based on price volatility
Customizable Parameters:
Moving Average Length: Controls the smoothing period for calculations
Volume Weight Factor: Adjusts how much volume influences predictions
Prediction Periods: Number of bars to project into the future
Confidence Band Width: Controls the width of prediction bands
How to use it:
Look for strong volume confirmation with green candles, watch for prediction line slope changes, use confidence bands to gauge potential volatility and compare predictions with key support/resistance levels
Some useful tips:
Start with default settings and adjust gradually
Use wider confidence bands in volatile markets
Consider prediction lines as zones rather than exact levels
Best applications of this indicator:
Trend continuation probability assessment
Potential reversal point identification
Risk management through confidence bands
Volume-based trend confirmation
ATR-Based Trend Oscillator with Donchian ChannelsThis script, my Magnum Opus, combines the best elements of trend detection into a powerful ATR-based trend strength oscillator. It has been meticulously engineered to give traders a consistent edge in trend analysis across any asset, including highly volatile markets like crypto and forex. The oscillator normalizes trend strength as a percentage of ATR, smoothing out noise and allowing the oscillator to remain highly responsive while adapting to varying asset volatility.
Key Features:
ATR-Based Oscillator: Measures trend strength in relation to Average True Range, which enhances accuracy and consistency across different assets. By normalizing to ATR, the oscillator produces stable and reliable values that capture shifts in trend momentum effectively.
Dual Moving Averages for Smoothing: This script features two customizable moving averages to help confirm trend direction and strength, making it adaptable for short- and long-term analysis alike.
Donchian Channels for Strength Bounds: A Donchian Channel over the smoothed trend strength oscillator visually bounds strength levels, enabling traders to spot breakout points or reversals quickly.
Ideal for Multi-Asset Trading: The versatility of this indicator makes it a perfect choice across various asset classes, from stocks to forex and cryptocurrencies, maintaining consistency in signals and reliability.
Suggested Pairing: Use this oscillator alongside a directional indicator, such as the Vortex Indicator, to confirm trend direction. This pairing allows traders to understand not only the strength but also the direction of the trend for optimized entry and exit points.
Why This Indicator Will Elevate Your Trading: This trend strength oscillator has been refined to provide clarity and edge for any trader. By incorporating ATR-based normalization, it maintains accuracy in volatile and steady markets alike. The Donchian Channels add structure to trend strength, giving clear overbought and oversold signals, while the two moving averages ensure that lag is minimized without sacrificing accuracy.
Whether you're scalping or trend-trading, this oscillator will enhance your ability to detect and interpret trend strength, making it an essential tool in any trading arsenal.
Volume TableDisplays a table of volume and short volume.
When chart timeframe is intraday or daily, table will show daily values. If chart is on weekly, table will show weekly values. If chart is on monthly, table will show monthly values.
If a ticker doesn’t have short volume, uncheck “Show Short Volume” in settings for table to work.
Table rows:
Date row (Day/Week/Month) text:
Green when close > open
Red when close < open
White when close equals open
Volume (Vol) row text:
Default: Black
If “Check for inside candles” is checked, when the high and low (or open and close if “Use H/L not O/C” is unchecked) is within the previous time period (day/week/month), text will be white
Volume (Vol) row background:
Default: Gray
Colored based on values and colors set in settings:
>= Very High Volume
>= High Volume
<= Low Volume
<= Very Low Volume
Short Volume (SV) row cell background color:
SV < “Lower Threshold”: Black
“Lower Threshold” <= SV < “Low Threshold”: Gray
“Low Threshold” < SV < First “Short Volume Color Increment”: Silver
“Short Volume Color Increment's (5 million increments by default): purple, blue, teal, green, lime, yellow, orange, red, maroon, white
Short Volume text color is just colored to be visible based on SV cell background.
There are labels that can be displayed to look back at data further back than the table goes (recommend being on the daily timeframe).
Price Movement Predictor (PMP)The Price Movement Predictor (PMP) is a versatile trading indicator designed to assist traders in identifying potential buy and sell opportunities in the market. This indicator utilizes a combination of technical analysis tools to generate signals based on the relative strength index (RSI) and moving averages, ensuring a robust and strategic approach to trading.
Key Features:
RSI-Based Signal Generation:
The indicator monitors the RSI to identify overbought and oversold conditions in the market.
A buy signal is generated when the RSI drops below a predefined oversold threshold, indicating potential upward price movement.
Conversely, a sell signal is triggered when the RSI exceeds a specified overbought level, suggesting a possible price decline.
Moving Average Confirmation:
The indicator employs two moving averages: a short-term and a long-term moving average.
Buy and sell signals are confirmed only after a crossover event occurs, ensuring that trades are entered in alignment with market trends.
The short moving average crossing above the long moving average confirms a buy signal, while a crossover below confirms a sell signal.
Take Profit and Stop Loss Management:
The PMP includes adjustable take profit and stop loss levels, which are automatically calculated based on user-defined percentages.
Labels indicating the take profit (TP) and stop loss (SL) levels are plotted on the chart, helping traders manage their risk effectively.
Alerts are available for both TP and SL conditions, allowing traders to stay informed about their trade outcomes.
User-Friendly Interface:
The indicator provides an intuitive setup with adjustable parameters for moving average lengths, RSI levels, and TP/SL ratios.
Clear buy and sell signals are displayed directly on the chart, making it easy for traders to act on potential opportunities.
Usage:
The Price Movement Predictor is ideal for traders who seek a systematic approach to identify trading opportunities and manage risk. By combining RSI signals with moving average crossovers, the indicator helps filter out false signals and enhances the accuracy of trade entries. It is suitable for various trading styles, including day trading, swing trading, and long-term investing.
Uphorico Candle RangesThis script allows you to see the high and low prices of a specific previous timeframe directly on your TradingView chart. You can choose which previous period to view—previous month, week, day, or last Monday—and the script will plot two horizontal lines for the high and low prices of that period. These lines help you quickly identify key levels based on past performance.
Features of the Script:
1. Select Previous Timeframe: You can choose between:
• Month: Shows the high and low of the previous month.
• Week: Shows the high and low of the previous week.
• Day: Shows the high and low of the previous day.
• Monday: Shows the high and low of the most recent Monday.
2. Line Customization:
• Color: Choose different colors for the high and low lines.
• Thickness: Adjust the line thickness (1–5).
• Style: Choose from solid, dashed, or dotted lines.
3. Touch Source Candle Option:
• If enabled, the lines will start directly at the last candle of the selected timeframe (e.g., at the last candle of the previous month or week).
• If disabled, the lines will start from the current bar and extend to the right.
How It Works:
• The script retrieves the high and low prices from your selected previous timeframe and draws two horizontal lines (one for the high and one for the low).
• These lines provide a quick visual reference for key support and resistance levels based on past periods, making it easier to spot potential price action zones.
This tool is designed to be simple and customizable, helping you analyze past levels and make better trading decisions.
Trend Momentum Indicator with MACD ConfirmationTrend Momentum Indicator with MACD Confirmation
Overview: The Trend Momentum Indicator with MACD Confirmation is a versatile trading tool designed to help traders identify potential buy and sell signals in the market based on the interaction between price action, a Simple Moving Average (SMA), and the Moving Average Convergence Divergence (MACD) indicator. This strategy aims to enhance trading decisions by waiting for MACD confirmation before executing trades, thereby reducing false signals.
Components:
Simple Moving Average (SMA):
The SMA is calculated over a user-defined period (default: 20 bars) and serves as a trend indicator. It provides a smoothed representation of price action and helps traders identify the overall market direction.
MACD:
The MACD is calculated using standard parameters (12 for fast length, 26 for slow length, and 9 for signal length) but can be adjusted to suit individual trading preferences. The MACD consists of two lines:
MACD Line: The difference between the fast and slow EMAs.
Signal Line: An EMA of the MACD Line, which helps indicate buy and sell conditions.
Buy and Sell Signals:
Buy Signal: A buy signal is triggered when the price crosses above the SMA, coupled with the MACD line crossing above the signal line, indicating a bullish momentum.
Sell Signal: A sell signal occurs when the price crosses below the SMA, alongside the MACD line crossing below the signal line, indicating a bearish momentum.
Visual Features:
The SMA is plotted on the main price chart, allowing traders to easily visualize trend direction.
Buy signals are indicated by green triangle shapes below the price bars, while sell signals are shown by red triangle shapes above the price bars.
Optionally, a MACD histogram can be plotted to visualize the difference between the MACD line and the signal line, helping to confirm trade signals visually.
Usage:
This indicator is suitable for various trading styles, including day trading, swing trading, and trend-following strategies. It can be applied to any financial instrument, including stocks, forex, and cryptocurrencies.
Traders should consider combining this indicator with additional tools and analysis to enhance decision-making and manage risk effectively.
Daily BreadWhat it does:
This script uses specific multiple true ranges from a 30 EMA baseline to plot lines that represent 10% buying increments. Although the common period for ATR is 14, this script employs a period of 20 for smoothing that I have determined is more effective when used with a daily candle chart. It includes onscreen trend signals to identify an uptrend or downtrend when the 50 EMA crosses the 90 EMA and will also display a coloured directional signal at each candle beyond an EMA cross to identify the current trend.
The script plots a scale of percentage labels at the end of each line to identify the percent of an account intended to be in short or longer term trades.
How it does it:
The script uses a 30 EMA baseline and then multiplies ATR increments of +1, +2, +4 and -1 through -7. These ATR multiples and the EMA are plotted as 11 lines, 10 of which make up the range of 10% increments from 10% to 100% with the 11th line being the High Band representing the extreme high or expected sale of any holdings. The percentage label scale uses variable declarations to position and colour match a percentage label to each line.
Intended use:
It is intended to be used for short term trading or long term investing with a daily market index chart such as SPY and multiple exchange traded funds that track said market index. A different ETF is purchased when a daily SPY candle reaches a lower buy band using 10% of a total account value. The sale of any ETFs is at the discretion of the trader and dependent on investment strategy (short term trading or long term inventing) and the trend. When short term trading in a downtrend or when daily candles are below the 50 EMA, selling would be done every 2 to 3 bands above a buy to mitigate the risk of a significant portion of an account getting caught in a downtrend. In an uptrend the High Band would be used to sell any holdings.
TrendWave VWAP Indicator with ATR-based SignalsThe TrendWave VWAP Indicator with ATR-Based Signals is a robust TradingView tool for traders who prioritize precision and adaptability. This indicator combines the Volume-Weighted Average Price (VWAP) with the Average True Range (ATR) to provide actionable entry and exit signals while dynamically filtering out sideways market conditions. Designed with flexibility in mind, the indicator offers extensive customization options to tailor signals and filtering to individual trading styles.
Key Features and Customizable Settings
VWAP Integration
VWAP offers a volume-weighted benchmark, ideal for tracking price trends in relation to average trading levels. Customization: Traders can enable or disable VWAP functionality via a toggle, allowing easy adjustments based on market conditions or strategy preferences.
ATR-Based Signal Levels
ATR provides volatility-based levels for precise entry and exit points by measuring average price range. Customization: Traders can set the ATR length (default: 14) and the multiplier (default: 1.5) for adjusting sensitivity. A sideways threshold can be set to control the ATR value at which the indicator pauses signals, helping to avoid low-volatility markets.
Signal Cooldown
To reduce noise in choppy conditions, a signal cooldown enforces a minimum number of bars between signals. Customization: The cooldown period (default: 10 bars) can be adjusted to match preferred trading frequency and discipline requirements.
Signal Logic
Long Entry: Activated when price crosses above the VWAP in a trending market. Cooldown applies to avoid consecutive signals.
Long Exit: Triggered when price crosses below the VWAP.
Short Entry: Initiated when price crosses below the VWAP, in non-sideways conditions.
Short Exit: Occurs when price crosses back above the VWAP following a short position.
Visual Indicators
The VWAP is displayed as a line on the chart for easy trend reference. Entry and exit signals are clearly marked with color-coded shapes, enhancing readability without clutter.
Practical Application
The TrendWave VWAP Indicator with ATR-Based Signals provides tailored entries and exits for trending markets. Its customization options make it suitable for traders who require flexibility and precision in varying market conditions. By adjusting VWAP, ATR, and cooldown parameters, users can fine-tune the indicator to suit different trading styles, making it an essential tool for disciplined trading in dynamic markets.
HBK Price Action Strategy HBKPrice Action Strategy for XAUUSD with a Favorable Risk-Reward Ratio
Understanding the Strategy:
This strategy leverages price action principles to identify potential entry and exit points for XAUUSD on a 5-minute timeframe. The core idea is to identify price action patterns that suggest a high probability of a particular direction, and then to set stop-loss and take-profit levels to manage risk and reward.
Key Price Action Patterns to Watch:
Pin Bar: A pin bar is a candlestick with a long wick in one direction and a small body in the opposite direction. It often signals a reversal in the current trend.
Inside Bar: An inside bar forms when the current candle's high is lower than the previous candle's high, and the current candle's low is higher than the previous candle's low. It often indicates indecision or a potential breakout.
Engulfing Pattern: An engulfing pattern occurs when the current candle completely engulfs the previous candle. A bullish engulfing pattern signals a potential uptrend, while a bearish engulfing pattern signals a potential downtrend.
Risk-Reward Ratio:
A favorable risk-reward ratio is crucial for long-term trading success. Aim for a minimum risk-reward ratio of 1:2, meaning you risk $1 to potentially gain $2.
Entry and Exit Signals:
Long Entry:
Identify a bullish pin bar or engulfing pattern.
Wait for a confirmation candle to close above the pin bar's high or the engulfing pattern's high.
Place a stop-loss below the recent swing low.
Set a take-profit target at a key resistance level or a multiple of the stop-loss distance.
Short Entry:
Identify a bearish pin bar or engulfing pattern.
Wait for a confirmation candle to close below the pin bar's low or the engulfing pattern's low.
Place a stop-loss above the recent swing high.
Set a take-profit target at a key support level or a multiple of the stop-loss distance.
Additional Tips:
Use Support and Resistance Levels: Identify key support and resistance levels to set your stop-loss and take-profit targets.
Consider Market Sentiment: Pay attention to market sentiment and news events that may impact gold prices.
Manage Risk: Always use stop-loss orders to limit potential losses.
Be Patient: Don't force trades. Wait for high-probability setups.
Practice Discipline: Stick to your trading plan and avoid impulsive decisions.
Remember:
Price action trading requires practice and patience.
Backtest your strategy on historical data to refine your approach.
Always adapt to changing market conditions.
By following these guidelines and practicing disciplined risk management, you can increase your chances of success in trading XAUUSD on a 5-minute timeframe.
