Stoch RSI and RSI Buy/Sell Signals with MACD Trend FilterDescription of the Indicator
This Pine Script is designed to provide traders with buy and sell signals based on the combination of Stochastic RSI, RSI, and MACD indicators, enhanced by the confirmation of candle colors. The primary goal is to facilitate informed trading decisions in various market conditions by utilizing different indicators and their interactions. The script allows customization of various parameters, providing flexibility for traders to adapt it to their specific trading styles.
Usefulness
This indicator is not just a mashup of existing indicators; it integrates the functionality of multiple momentum and trend-detection methods into a cohesive trading tool. The combination of Stochastic RSI, RSI, and MACD offers a well-rounded approach to analyzing market conditions, allowing traders to identify entry and exit points effectively. The inclusion of color-coded signals (strong vs. weak) further enhances its utility by providing visual cues about the strength of the signals.
How to Use This Indicator
Input Settings: Adjust the parameters for the Stochastic RSI, RSI, and MACD to fit your trading style. Set the overbought/oversold levels according to your risk tolerance.
Signal Colors:
Strong Buy Signal: Indicated by a green label and confirmed by a green candle (close > open).
Weak Buy Signal: Indicated by a blue label and confirmed by a green candle (close > open).
Strong Sell Signal: Indicated by a red label and confirmed by a red candle (close < open).
Weak Sell Signal: Indicated by an orange label and confirmed by a red candle (close < open).
Example Trading Strategy Using This Indicator
To effectively use this indicator as part of your trading strategy, follow these detailed steps:
Setup:
Timeframe : Select a timeframe that aligns with your trading style (e.g., 15-minute for intraday, 1-hour for swing trading, or daily for longer-term positions).
Indicator Settings : Customize the Stochastic RSI, RSI, and MACD parameters to suit your trading approach. Adjust overbought/oversold levels to match your risk tolerance.
Strategy:
1. Strong Buy Entry Criteria :
Wait for a strong buy signal (green label) when the RSI is at or below the oversold level (e.g., ≤ 35), indicating a deeply oversold market. Confirm that the MACD shows a decreasing trend (bearish momentum weakening) to validate a potential reversal. Ensure the current candle is green (close > open) if candle color confirmation is enabled.
Example Use : On a 1-hour chart, if the RSI drops below 35, MACD shows three consecutive bars of decreasing negative momentum, and a green candle forms, enter a buy position. This setup signals a robust entry with strong momentum backing it.
2. Weak Buy Entry Criteria :
Monitor for weak buy signals (blue label) when RSI is above the oversold level but still below the neutral (e.g., between 36 and 50). This indicates a market recovering from an oversold state but not fully reversing yet. These signals can be used for early entries with additional confirmations, such as support levels or higher timeframe trends.
Example Use : On the same 1-hour chart, if RSI is at 45, the MACD shows momentum stabilizing (not necessarily negative), and a green candle appears, consider a partial or cautious entry. Use this as an early warning for a potential bullish move, especially when higher timeframe indicators align.
3. Strong Sell Entry Criteria :
Look for a strong sell signal (red label) when RSI is at or above the overbought level (e.g., ≥ 65), signaling a strong overbought condition. The MACD should show three consecutive bars of increasing positive momentum to indicate that the bullish trend is weakening. Ensure the current candle is red (close < open) if candle color confirmation is enabled.
Example Use : If RSI reaches 70, MACD shows increasing momentum that starts to level off, and a red candle forms on a 1-hour chart, initiate a short position with a stop loss set above recent resistance. This is a high-confidence signal for potential price reversal or pullback.
4. Weak Sell Entry Criteria :
Use weak sell signals (orange label) when RSI is between the neutral and overbought levels (e.g., between 50 and 64). These can indicate potential short opportunities that might not yet be fully mature but are worth monitoring. Look for other confirmations like resistance levels or trendline touches to strengthen the signal.
Example Use : If RSI reads 60 on a 1-hour chart, and the MACD shows slight positive momentum with signs of slowing down, place a cautious sell position or scale out of existing long positions. This setup allows you to prepare for a possible downtrend.
Trade Management:
Stop Loss : For buy trades, place stop losses below recent swing lows. For sell trades, set stops above recent swing highs to manage risk effectively.
Take Profit : Target nearby resistance or support levels, apply risk-to-reward ratios (e.g., 1:2), or use trailing stops to lock in profits as price moves in your favor.
Confirmation : Align these signals with broader trends on higher timeframes. For example, if you receive a weak buy signal on a 15-minute chart, check the 1-hour or daily chart to ensure the overall trend is not bearish.
Real-World Example: Imagine trading on a 15-minute chart :
For a buy:
A strong buy signal (green) appears when the RSI dips to 32, MACD shows declining bearish momentum, and a green candle forms. Enter a buy position with a stop loss below the most recent support level.
Alternatively, a weak buy signal (blue) appears when RSI is at 47. Use this as a signal to start monitoring the market closely or enter a smaller position if other indicators (like support and volume analysis) align.
For a sell:
A strong sell signal (red) with RSI at 72 and a red candle signals to short with conviction. Place your stop loss just above the last peak.
A weak sell signal (orange) with RSI at 62 might prompt caution but can still be acted on if confirmed by declining volume or touching a resistance level.
These strategies show how to blend both strong and weak signals into your trading for more nuanced decision-making.
Technical Analysis of the Code
1. Stochastic RSI Calculation:
The script calculates the Stochastic RSI (stochRsiK) using the RSI as input and smooths it with a moving average (stochRsiD).
Code Explanation : ta.stoch(rsi, rsi, rsi, stochLength) computes the Stochastic RSI, and ta.sma(stochRsiK, stochSmoothing) applies smoothing.
2. RSI Calculation :
The RSI is computed over a user-defined period and checks for overbought or oversold conditions.
Code Explanation : rsi = ta.rsi(close, rsiLength) calculates RSI values.
3. MACD Trend Filter :
MACD is calculated with fast, slow, and signal lengths, identifying trends via three consecutive bars moving in the same direction.
Code Explanation : = ta.macd(close, macdLengthFast, macdLengthSlow, macdSignalLength) sets MACD values. Conditions like macdLine < macdLine confirm trends.
4. Buy and Sell Conditions :
The script checks Stochastic RSI, RSI, and MACD values to set buy/sell flags. Candle color filters further confirm valid entries.
Code Explanation : buyConditionMet and sellConditionMet logically check all conditions and toggles (enableStochCondition, enableRSICondition, etc.).
5. Signal Flags and Confirmation :
Flags track when conditions are met and ensure signals only appear on appropriate candle colors.
Code Explanation : Conditional blocks (if statements) update buyFlag and sellFlag.
6. Labels and Alerts :
The indicator plots "BUY" or "SELL" labels with the RSI value when signals trigger and sets alerts through alertcondition().
Code Explanation : label.new() displays the signal, color-coded for strength based on RSI.
NOTE : All strategies can be enabled or disabled in the settings, allowing traders to customize the indicator to their preferences and trading styles.
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Multi Fibonacci Supertrend with Signals【FIbonacciFlux】Multi Fibonacci Supertrend with Signals (MFSS)
Overview
The Multi Fibonacci Supertrend with Signals (MFSS) is an advanced technical analysis tool that combines multiple Supertrend indicators using Fibonacci ratios to identify trend directions and potential trading opportunities.
Key Features
1. Fibonacci-Based Supertrend Levels
* Factor 1 (Weak) : 0.618 - The golden ratio
* Factor 2 (Medium) : 1.618 - The Fibonacci ratio
* Factor 3 (Strong) : 2.618 - The extension ratio
2. Visual Components
* Multi-layered Trend Lines
* Different line weights for easy identification
* Progressive transparency from Factor 1 to Factor 3
* Color-coded trend directions (Green for bullish, Red for bearish)
* Dynamic Fill Areas
* Gradient fills between price and trend lines
* Visual representation of trend strength
* Automatic color adjustment based on trend direction
* Signal Indicators
* Clear BUY/SELL labels on chart
* Position-adaptive signal placement
* High-visibility color scheme
3. Signal Generation Logic
The system generates signals based on two key conditions:
* Primary Condition :
* BUY : Price crossunder Supertrend2 (Factor 1.618)
* SELL : Price crossover Supertrend2 (Factor 1.618)
* Confirmation Filter :
* Signals only trigger when Supertrend3 confirms the trend direction
* Reduces false signals in volatile markets
Technical Details
Input Parameters
* ATR Period : 10 (default)
* Customizable for different market conditions
* Affects sensitivity of all Supertrend levels
* Factor Settings :
* All factors are customizable
* Default values based on Fibonacci sequence
* Minimum value: 0.01
* Step size: 0.01
Alert System
* Built-in alert conditions
* Customizable alert messages
* Real-time notification support
Use Cases
* Trend Trading
* Identify strong trend directions
* Filter out weak signals
* Confirm trend continuations
* Risk Management
* Multiple trend levels for stop-loss placement
* Clear entry and exit signals
* Trend strength visualization
* Market Analysis
* Multi-timeframe analysis capability
* Trend strength assessment
* Market structure identification
Benefits
* Reliability
* Based on proven Supertrend algorithm
* Enhanced with Fibonacci mathematics
* Multiple confirmation levels
* Clarity
* Clear visual signals
* Easy-to-interpret interface
* Reduced noise in signal generation
* Flexibility
* Customizable parameters
* Adaptable to different markets
* Suitable for various trading styles
Performance Considerations
* Optimized code structure
* Efficient calculation methods
* Minimal resource usage
Installation and Usage
Setup
* Add indicator to chart
* Adjust parameters if needed
* Enable alerts as required
Best Practices
* Use with other confirmation tools
* Adjust factors based on market volatility
* Consider timeframe appropriateness
Backtesting Results and Strategy Performance
This indicator is specifically designed for pullback trading with optimized risk-reward ratios in trend-following strategies. Below are the detailed backtesting results from our proprietary strategy implementation:
BTCUSDT Performance (Binance)
* Test Period: Approximately 7 years
* Risk-Reward Ratio: 2:1
* Take Profit: 8%
* Stop Loss: 4%
Key Metrics (BTCUSDT):
* Net Profit: +2,579%
* Total Trades: 551
* Win Rate: 44.8%
* Profit Factor: 1.278
* Maximum Drawdown: 42.86%
ETHUSD Performance (Binance)
* Risk-Reward Ratio: 4.33:1
* Take Profit: 13%
* Stop Loss: 3%
Key Metrics (ETHUSD):
* Net Profit: +8,563%
* Total Trades: 581
* Win Rate: 32%
* Profit Factor: 1.32
* Maximum Drawdown: 55%
Strategy Highlights:
* Optimized for pullback trading in strong trends
* Focus on high risk-reward ratios
* Proven effectiveness in major cryptocurrency pairs
* Consistent performance across different market conditions
* Robust profit factor despite moderate win rates
Note: These results are from our proprietary strategy implementation and should be used as reference only. Individual results may vary based on market conditions and implementation.
Important Considerations:
* The strategy demonstrates strong profitability despite lower win rates, emphasizing the importance of proper risk-reward ratios
* Higher drawdowns are compensated by significant overall returns
* The system shows adaptability across different cryptocurrencies with consistent profit factors
* Results suggest optimal performance in volatile crypto markets
Real Trading Examples
BTCUSDT 4-Hour Chart Analysis
Example of pullback strategy implementation on Bitcoin, showing clear trend definition and entry points
ETHUSDT 4-Hour Chart Analysis
Ethereum chart demonstrating effective signal generation during strong trends
BTCUSDT Detailed Signal Example (15-Minute Scalping)
Close-up view of signal generation and trend confirmation process on 15-minute timeframe, demonstrating the indicator's effectiveness for scalping operations
Chart Analysis Notes:
* Green and red zones clearly indicate trend direction
* Multiple timeframe confirmation visible through different Supertrend levels
* Clear entry signals during pullbacks in established trends
* Precise stop-loss placement opportunities below support levels
Implementation Guidelines:
* Wait for main trend confirmation from Factor 3 (2.618)
* Enter trades on pullbacks to Factor 2 (1.618)
* Use Factor 1 (0.618) for fine-tuning entry points
* Place stops below the relevant Supertrend level
Footnotes:
* Charts provided are from Binance exchange, using both 4-hour and 15-minute timeframes
* Trading view screenshots captured during actual market conditions
* Indicators shown: Multi Fibonacci Supertrend with all three factors
* Time period: Recent market activity showing various market conditions
Important Notice:
These charts are for educational purposes only. Past performance does not guarantee future results. Always conduct your own analysis and risk management.
Disclaimer
This indicator is for informational purposes only. Past performance is not indicative of future results. Always conduct proper risk management and due diligence.
License
Open source under MIT License
Author's Note
Contributions and suggestions for improvement are welcome. Please feel free to fork and enhance.
Universal Ratio Trend Matrix [InvestorUnknown]The Universal Ratio Trend Matrix is designed for trend analysis on asset/asset ratios, supporting up to 40 different assets. Its primary purpose is to help identify which assets are outperforming others within a selection, providing a broad overview of market trends through a matrix of ratios. The indicator automatically expands the matrix based on the number of assets chosen, simplifying the process of comparing multiple assets in terms of performance.
Key features include the ability to choose from a narrow selection of indicators to perform the ratio trend analysis, allowing users to apply well-defined metrics to their comparison.
Drawback: Due to the computational intensity involved in calculating ratios across many assets, the indicator has a limitation related to loading speed. TradingView has time limits for calculations, and for users on the basic (free) plan, this could result in frequent errors due to exceeded time limits. To use the indicator effectively, users with any paid plans should run it on timeframes higher than 8h (the lowest timeframe on which it managed to load with 40 assets), as lower timeframes may not reliably load.
Indicators:
RSI_raw: Simple function to calculate the Relative Strength Index (RSI) of a source (asset price).
RSI_sma: Calculates RSI followed by a Simple Moving Average (SMA).
RSI_ema: Calculates RSI followed by an Exponential Moving Average (EMA).
CCI: Calculates the Commodity Channel Index (CCI).
Fisher: Implements the Fisher Transform to normalize prices.
Utility Functions:
f_remove_exchange_name: Strips the exchange name from asset tickers (e.g., "INDEX:BTCUSD" to "BTCUSD").
f_remove_exchange_name(simple string name) =>
string parts = str.split(name, ":")
string result = array.size(parts) > 1 ? array.get(parts, 1) : name
result
f_get_price: Retrieves the closing price of a given asset ticker using request.security().
f_constant_src: Checks if the source data is constant by comparing multiple consecutive values.
Inputs:
General settings allow users to select the number of tickers for analysis (used_assets) and choose the trend indicator (RSI, CCI, Fisher, etc.).
Table settings customize how trend scores are displayed in terms of text size, header visibility, highlighting options, and top-performing asset identification.
The script includes inputs for up to 40 assets, allowing the user to select various cryptocurrencies (e.g., BTCUSD, ETHUSD, SOLUSD) or other assets for trend analysis.
Price Arrays:
Price values for each asset are stored in variables (price_a1 to price_a40) initialized as na. These prices are updated only for the number of assets specified by the user (used_assets).
Trend scores for each asset are stored in separate arrays
// declare price variables as "na"
var float price_a1 = na, var float price_a2 = na, var float price_a3 = na, var float price_a4 = na, var float price_a5 = na
var float price_a6 = na, var float price_a7 = na, var float price_a8 = na, var float price_a9 = na, var float price_a10 = na
var float price_a11 = na, var float price_a12 = na, var float price_a13 = na, var float price_a14 = na, var float price_a15 = na
var float price_a16 = na, var float price_a17 = na, var float price_a18 = na, var float price_a19 = na, var float price_a20 = na
var float price_a21 = na, var float price_a22 = na, var float price_a23 = na, var float price_a24 = na, var float price_a25 = na
var float price_a26 = na, var float price_a27 = na, var float price_a28 = na, var float price_a29 = na, var float price_a30 = na
var float price_a31 = na, var float price_a32 = na, var float price_a33 = na, var float price_a34 = na, var float price_a35 = na
var float price_a36 = na, var float price_a37 = na, var float price_a38 = na, var float price_a39 = na, var float price_a40 = na
// create "empty" arrays to store trend scores
var a1_array = array.new_int(40, 0), var a2_array = array.new_int(40, 0), var a3_array = array.new_int(40, 0), var a4_array = array.new_int(40, 0)
var a5_array = array.new_int(40, 0), var a6_array = array.new_int(40, 0), var a7_array = array.new_int(40, 0), var a8_array = array.new_int(40, 0)
var a9_array = array.new_int(40, 0), var a10_array = array.new_int(40, 0), var a11_array = array.new_int(40, 0), var a12_array = array.new_int(40, 0)
var a13_array = array.new_int(40, 0), var a14_array = array.new_int(40, 0), var a15_array = array.new_int(40, 0), var a16_array = array.new_int(40, 0)
var a17_array = array.new_int(40, 0), var a18_array = array.new_int(40, 0), var a19_array = array.new_int(40, 0), var a20_array = array.new_int(40, 0)
var a21_array = array.new_int(40, 0), var a22_array = array.new_int(40, 0), var a23_array = array.new_int(40, 0), var a24_array = array.new_int(40, 0)
var a25_array = array.new_int(40, 0), var a26_array = array.new_int(40, 0), var a27_array = array.new_int(40, 0), var a28_array = array.new_int(40, 0)
var a29_array = array.new_int(40, 0), var a30_array = array.new_int(40, 0), var a31_array = array.new_int(40, 0), var a32_array = array.new_int(40, 0)
var a33_array = array.new_int(40, 0), var a34_array = array.new_int(40, 0), var a35_array = array.new_int(40, 0), var a36_array = array.new_int(40, 0)
var a37_array = array.new_int(40, 0), var a38_array = array.new_int(40, 0), var a39_array = array.new_int(40, 0), var a40_array = array.new_int(40, 0)
f_get_price(simple string ticker) =>
request.security(ticker, "", close)
// Prices for each USED asset
f_get_asset_price(asset_number, ticker) =>
if (used_assets >= asset_number)
f_get_price(ticker)
else
na
// overwrite empty variables with the prices if "used_assets" is greater or equal to the asset number
if barstate.isconfirmed // use barstate.isconfirmed to avoid "na prices" and calculation errors that result in empty cells in the table
price_a1 := f_get_asset_price(1, asset1), price_a2 := f_get_asset_price(2, asset2), price_a3 := f_get_asset_price(3, asset3), price_a4 := f_get_asset_price(4, asset4)
price_a5 := f_get_asset_price(5, asset5), price_a6 := f_get_asset_price(6, asset6), price_a7 := f_get_asset_price(7, asset7), price_a8 := f_get_asset_price(8, asset8)
price_a9 := f_get_asset_price(9, asset9), price_a10 := f_get_asset_price(10, asset10), price_a11 := f_get_asset_price(11, asset11), price_a12 := f_get_asset_price(12, asset12)
price_a13 := f_get_asset_price(13, asset13), price_a14 := f_get_asset_price(14, asset14), price_a15 := f_get_asset_price(15, asset15), price_a16 := f_get_asset_price(16, asset16)
price_a17 := f_get_asset_price(17, asset17), price_a18 := f_get_asset_price(18, asset18), price_a19 := f_get_asset_price(19, asset19), price_a20 := f_get_asset_price(20, asset20)
price_a21 := f_get_asset_price(21, asset21), price_a22 := f_get_asset_price(22, asset22), price_a23 := f_get_asset_price(23, asset23), price_a24 := f_get_asset_price(24, asset24)
price_a25 := f_get_asset_price(25, asset25), price_a26 := f_get_asset_price(26, asset26), price_a27 := f_get_asset_price(27, asset27), price_a28 := f_get_asset_price(28, asset28)
price_a29 := f_get_asset_price(29, asset29), price_a30 := f_get_asset_price(30, asset30), price_a31 := f_get_asset_price(31, asset31), price_a32 := f_get_asset_price(32, asset32)
price_a33 := f_get_asset_price(33, asset33), price_a34 := f_get_asset_price(34, asset34), price_a35 := f_get_asset_price(35, asset35), price_a36 := f_get_asset_price(36, asset36)
price_a37 := f_get_asset_price(37, asset37), price_a38 := f_get_asset_price(38, asset38), price_a39 := f_get_asset_price(39, asset39), price_a40 := f_get_asset_price(40, asset40)
Universal Indicator Calculation (f_calc_score):
This function allows switching between different trend indicators (RSI, CCI, Fisher) for flexibility.
It uses a switch-case structure to calculate the indicator score, where a positive trend is denoted by 1 and a negative trend by 0. Each indicator has its own logic to determine whether the asset is trending up or down.
// use switch to allow "universality" in indicator selection
f_calc_score(source, trend_indicator, int_1, int_2) =>
int score = na
if (not f_constant_src(source)) and source > 0.0 // Skip if you are using the same assets for ratio (for example BTC/BTC)
x = switch trend_indicator
"RSI (Raw)" => RSI_raw(source, int_1)
"RSI (SMA)" => RSI_sma(source, int_1, int_2)
"RSI (EMA)" => RSI_ema(source, int_1, int_2)
"CCI" => CCI(source, int_1)
"Fisher" => Fisher(source, int_1)
y = switch trend_indicator
"RSI (Raw)" => x > 50 ? 1 : 0
"RSI (SMA)" => x > 50 ? 1 : 0
"RSI (EMA)" => x > 50 ? 1 : 0
"CCI" => x > 0 ? 1 : 0
"Fisher" => x > x ? 1 : 0
score := y
else
score := 0
score
Array Setting Function (f_array_set):
This function populates an array with scores calculated for each asset based on a base price (p_base) divided by the prices of the individual assets.
It processes multiple assets (up to 40), calling the f_calc_score function for each.
// function to set values into the arrays
f_array_set(a_array, p_base) =>
array.set(a_array, 0, f_calc_score(p_base / price_a1, trend_indicator, int_1, int_2))
array.set(a_array, 1, f_calc_score(p_base / price_a2, trend_indicator, int_1, int_2))
array.set(a_array, 2, f_calc_score(p_base / price_a3, trend_indicator, int_1, int_2))
array.set(a_array, 3, f_calc_score(p_base / price_a4, trend_indicator, int_1, int_2))
array.set(a_array, 4, f_calc_score(p_base / price_a5, trend_indicator, int_1, int_2))
array.set(a_array, 5, f_calc_score(p_base / price_a6, trend_indicator, int_1, int_2))
array.set(a_array, 6, f_calc_score(p_base / price_a7, trend_indicator, int_1, int_2))
array.set(a_array, 7, f_calc_score(p_base / price_a8, trend_indicator, int_1, int_2))
array.set(a_array, 8, f_calc_score(p_base / price_a9, trend_indicator, int_1, int_2))
array.set(a_array, 9, f_calc_score(p_base / price_a10, trend_indicator, int_1, int_2))
array.set(a_array, 10, f_calc_score(p_base / price_a11, trend_indicator, int_1, int_2))
array.set(a_array, 11, f_calc_score(p_base / price_a12, trend_indicator, int_1, int_2))
array.set(a_array, 12, f_calc_score(p_base / price_a13, trend_indicator, int_1, int_2))
array.set(a_array, 13, f_calc_score(p_base / price_a14, trend_indicator, int_1, int_2))
array.set(a_array, 14, f_calc_score(p_base / price_a15, trend_indicator, int_1, int_2))
array.set(a_array, 15, f_calc_score(p_base / price_a16, trend_indicator, int_1, int_2))
array.set(a_array, 16, f_calc_score(p_base / price_a17, trend_indicator, int_1, int_2))
array.set(a_array, 17, f_calc_score(p_base / price_a18, trend_indicator, int_1, int_2))
array.set(a_array, 18, f_calc_score(p_base / price_a19, trend_indicator, int_1, int_2))
array.set(a_array, 19, f_calc_score(p_base / price_a20, trend_indicator, int_1, int_2))
array.set(a_array, 20, f_calc_score(p_base / price_a21, trend_indicator, int_1, int_2))
array.set(a_array, 21, f_calc_score(p_base / price_a22, trend_indicator, int_1, int_2))
array.set(a_array, 22, f_calc_score(p_base / price_a23, trend_indicator, int_1, int_2))
array.set(a_array, 23, f_calc_score(p_base / price_a24, trend_indicator, int_1, int_2))
array.set(a_array, 24, f_calc_score(p_base / price_a25, trend_indicator, int_1, int_2))
array.set(a_array, 25, f_calc_score(p_base / price_a26, trend_indicator, int_1, int_2))
array.set(a_array, 26, f_calc_score(p_base / price_a27, trend_indicator, int_1, int_2))
array.set(a_array, 27, f_calc_score(p_base / price_a28, trend_indicator, int_1, int_2))
array.set(a_array, 28, f_calc_score(p_base / price_a29, trend_indicator, int_1, int_2))
array.set(a_array, 29, f_calc_score(p_base / price_a30, trend_indicator, int_1, int_2))
array.set(a_array, 30, f_calc_score(p_base / price_a31, trend_indicator, int_1, int_2))
array.set(a_array, 31, f_calc_score(p_base / price_a32, trend_indicator, int_1, int_2))
array.set(a_array, 32, f_calc_score(p_base / price_a33, trend_indicator, int_1, int_2))
array.set(a_array, 33, f_calc_score(p_base / price_a34, trend_indicator, int_1, int_2))
array.set(a_array, 34, f_calc_score(p_base / price_a35, trend_indicator, int_1, int_2))
array.set(a_array, 35, f_calc_score(p_base / price_a36, trend_indicator, int_1, int_2))
array.set(a_array, 36, f_calc_score(p_base / price_a37, trend_indicator, int_1, int_2))
array.set(a_array, 37, f_calc_score(p_base / price_a38, trend_indicator, int_1, int_2))
array.set(a_array, 38, f_calc_score(p_base / price_a39, trend_indicator, int_1, int_2))
array.set(a_array, 39, f_calc_score(p_base / price_a40, trend_indicator, int_1, int_2))
a_array
Conditional Array Setting (f_arrayset):
This function checks if the number of used assets is greater than or equal to a specified number before populating the arrays.
// only set values into arrays for USED assets
f_arrayset(asset_number, a_array, p_base) =>
if (used_assets >= asset_number)
f_array_set(a_array, p_base)
else
na
Main Logic
The main logic initializes arrays to store scores for each asset. Each array corresponds to one asset's performance score.
Setting Trend Values: The code calls f_arrayset for each asset, populating the respective arrays with calculated scores based on the asset prices.
Combining Arrays: A combined_array is created to hold all the scores from individual asset arrays. This array facilitates further analysis, allowing for an overview of the performance scores of all assets at once.
// create a combined array (work-around since pinescript doesn't support having array of arrays)
var combined_array = array.new_int(40 * 40, 0)
if barstate.islast
for i = 0 to 39
array.set(combined_array, i, array.get(a1_array, i))
array.set(combined_array, i + (40 * 1), array.get(a2_array, i))
array.set(combined_array, i + (40 * 2), array.get(a3_array, i))
array.set(combined_array, i + (40 * 3), array.get(a4_array, i))
array.set(combined_array, i + (40 * 4), array.get(a5_array, i))
array.set(combined_array, i + (40 * 5), array.get(a6_array, i))
array.set(combined_array, i + (40 * 6), array.get(a7_array, i))
array.set(combined_array, i + (40 * 7), array.get(a8_array, i))
array.set(combined_array, i + (40 * 8), array.get(a9_array, i))
array.set(combined_array, i + (40 * 9), array.get(a10_array, i))
array.set(combined_array, i + (40 * 10), array.get(a11_array, i))
array.set(combined_array, i + (40 * 11), array.get(a12_array, i))
array.set(combined_array, i + (40 * 12), array.get(a13_array, i))
array.set(combined_array, i + (40 * 13), array.get(a14_array, i))
array.set(combined_array, i + (40 * 14), array.get(a15_array, i))
array.set(combined_array, i + (40 * 15), array.get(a16_array, i))
array.set(combined_array, i + (40 * 16), array.get(a17_array, i))
array.set(combined_array, i + (40 * 17), array.get(a18_array, i))
array.set(combined_array, i + (40 * 18), array.get(a19_array, i))
array.set(combined_array, i + (40 * 19), array.get(a20_array, i))
array.set(combined_array, i + (40 * 20), array.get(a21_array, i))
array.set(combined_array, i + (40 * 21), array.get(a22_array, i))
array.set(combined_array, i + (40 * 22), array.get(a23_array, i))
array.set(combined_array, i + (40 * 23), array.get(a24_array, i))
array.set(combined_array, i + (40 * 24), array.get(a25_array, i))
array.set(combined_array, i + (40 * 25), array.get(a26_array, i))
array.set(combined_array, i + (40 * 26), array.get(a27_array, i))
array.set(combined_array, i + (40 * 27), array.get(a28_array, i))
array.set(combined_array, i + (40 * 28), array.get(a29_array, i))
array.set(combined_array, i + (40 * 29), array.get(a30_array, i))
array.set(combined_array, i + (40 * 30), array.get(a31_array, i))
array.set(combined_array, i + (40 * 31), array.get(a32_array, i))
array.set(combined_array, i + (40 * 32), array.get(a33_array, i))
array.set(combined_array, i + (40 * 33), array.get(a34_array, i))
array.set(combined_array, i + (40 * 34), array.get(a35_array, i))
array.set(combined_array, i + (40 * 35), array.get(a36_array, i))
array.set(combined_array, i + (40 * 36), array.get(a37_array, i))
array.set(combined_array, i + (40 * 37), array.get(a38_array, i))
array.set(combined_array, i + (40 * 38), array.get(a39_array, i))
array.set(combined_array, i + (40 * 39), array.get(a40_array, i))
Calculating Sums: A separate array_sums is created to store the total score for each asset by summing the values of their respective score arrays. This allows for easy comparison of overall performance.
Ranking Assets: The final part of the code ranks the assets based on their total scores stored in array_sums. It assigns a rank to each asset, where the asset with the highest score receives the highest rank.
// create array for asset RANK based on array.sum
var ranks = array.new_int(used_assets, 0)
// for loop that calculates the rank of each asset
if barstate.islast
for i = 0 to (used_assets - 1)
int rank = 1
for x = 0 to (used_assets - 1)
if i != x
if array.get(array_sums, i) < array.get(array_sums, x)
rank := rank + 1
array.set(ranks, i, rank)
Dynamic Table Creation
Initialization: The table is initialized with a base structure that includes headers for asset names, scores, and ranks. The headers are set to remain constant, ensuring clarity for users as they interpret the displayed data.
Data Population: As scores are calculated for each asset, the corresponding values are dynamically inserted into the table. This is achieved through a loop that iterates over the scores and ranks stored in the combined_array and array_sums, respectively.
Automatic Extending Mechanism
Variable Asset Count: The code checks the number of assets defined by the user. Instead of hardcoding the number of rows in the table, it uses a variable to determine the extent of the data that needs to be displayed. This allows the table to expand or contract based on the number of assets being analyzed.
Dynamic Row Generation: Within the loop that populates the table, the code appends new rows for each asset based on the current asset count. The structure of each row includes the asset name, its score, and its rank, ensuring that the table remains consistent regardless of how many assets are involved.
// Automatically extending table based on the number of used assets
var table table = table.new(position.bottom_center, 50, 50, color.new(color.black, 100), color.white, 3, color.white, 1)
if barstate.islast
if not hide_head
table.cell(table, 0, 0, "Universal Ratio Trend Matrix", text_color = color.white, bgcolor = #010c3b, text_size = fontSize)
table.merge_cells(table, 0, 0, used_assets + 3, 0)
if not hide_inps
table.cell(table, 0, 1,
text = "Inputs: You are using " + str.tostring(trend_indicator) + ", which takes: " + str.tostring(f_get_input(trend_indicator)),
text_color = color.white, text_size = fontSize), table.merge_cells(table, 0, 1, used_assets + 3, 1)
table.cell(table, 0, 2, "Assets", text_color = color.white, text_size = fontSize, bgcolor = #010c3b)
for x = 0 to (used_assets - 1)
table.cell(table, x + 1, 2, text = str.tostring(array.get(assets, x)), text_color = color.white, bgcolor = #010c3b, text_size = fontSize)
table.cell(table, 0, x + 3, text = str.tostring(array.get(assets, x)), text_color = color.white, bgcolor = f_asset_col(array.get(ranks, x)), text_size = fontSize)
for r = 0 to (used_assets - 1)
for c = 0 to (used_assets - 1)
table.cell(table, c + 1, r + 3, text = str.tostring(array.get(combined_array, c + (r * 40))),
text_color = hl_type == "Text" ? f_get_col(array.get(combined_array, c + (r * 40))) : color.white, text_size = fontSize,
bgcolor = hl_type == "Background" ? f_get_col(array.get(combined_array, c + (r * 40))) : na)
for x = 0 to (used_assets - 1)
table.cell(table, x + 1, x + 3, "", bgcolor = #010c3b)
table.cell(table, used_assets + 1, 2, "", bgcolor = #010c3b)
for x = 0 to (used_assets - 1)
table.cell(table, used_assets + 1, x + 3, "==>", text_color = color.white)
table.cell(table, used_assets + 2, 2, "SUM", text_color = color.white, text_size = fontSize, bgcolor = #010c3b)
table.cell(table, used_assets + 3, 2, "RANK", text_color = color.white, text_size = fontSize, bgcolor = #010c3b)
for x = 0 to (used_assets - 1)
table.cell(table, used_assets + 2, x + 3,
text = str.tostring(array.get(array_sums, x)),
text_color = color.white, text_size = fontSize,
bgcolor = f_highlight_sum(array.get(array_sums, x), array.get(ranks, x)))
table.cell(table, used_assets + 3, x + 3,
text = str.tostring(array.get(ranks, x)),
text_color = color.white, text_size = fontSize,
bgcolor = f_highlight_rank(array.get(ranks, x)))
Simultaneous INSIDE Bar Break IndicatorSimultaneous Inside Bar Break Indicator (SIBBI) for The Strat Community
Overview:
The Simultaneous Inside Bar Break Indicator (SIBBI) is designed to help traders using The Strat methodology identify one of the most powerful breakout patterns: the Simultaneous Inside Bar Break across multiple symbols. This indicator detects when all four user-selected symbols form inside bars on the previous candle and then break those inside bars in the same direction (either bullish or bearish) on the current candle.
Inside bars represent consolidation periods where price action does not break the high or low of the previous candle. When a simultaneous break occurs across multiple symbols, this often signals a strong move in the market, making this a key actionable signal in The Strat trading strategy.
Key Features:
Multi-Symbol Analysis: You can track up to four different symbols simultaneously. By default, the indicator comes with SPY, QQQ, IWM, and DIA, but you can modify these to track any other assets or symbols.
Inside Bar Detection: The indicator checks whether all four symbols have inside bars on the previous candle. It only triggers when all symbols meet this condition, making it a highly specific and reliable signal.
Simultaneous Break Detection: Once all symbols have inside bars, the indicator waits for a breakout in the same direction across all four symbols. A simultaneous bullish break (prices breaking above the previous candle’s high) triggers a green label, while a simultaneous bearish break (prices breaking below the previous candle’s low) triggers a red label.
Dynamic Label Timeframe: The indicator dynamically adjusts the timeframe in the label based on the user’s selected timeframe. This allows traders to know precisely which timeframe the break is occurring on. If the user selects "Chart Timeframe," the indicator will evolve with the current chart's timeframe, making it more versatile.
Timeframe Flexibility: The indicator can be set to analyze any timeframe—15-minute, 30-minute, 60-minute, daily, weekly, and so on. It only works for the specific timeframe you set it to in the settings. If set to "Chart Timeframe," the label will adapt dynamically based on the timeframe you are currently viewing.
Customizable Labels: The user can choose the size of the labels (tiny, small, or normal), ensuring that the visual output is tailored to individual preferences and chart layouts.
Best Use Case:
The Simultaneous Inside Bar Break Indicator is particularly powerful when applied to multiple timeframes. Here’s how to use it for maximum impact:
Multi-Timeframe Setup: Set the indicator on various timeframes (e.g., 15-minute, 30-minute, 60-minute, and daily) across multiple charts. This allows you to monitor different timeframes and identify when lower timeframe breaks trigger potential moves on higher timeframes.
Anticipating Strong Moves: When a simultaneous inside bar break occurs on one timeframe (e.g., 30-minute), keep an eye on the higher timeframes (e.g., 60-minute or daily) to see if those timeframes also break. This stacking of inside bar breaks can signal powerful market moves.
Higher Conviction Signals: The indicator is designed to provide high-conviction signals. Since it requires all four symbols to break in the same direction simultaneously, it reduces false signals and focuses on higher probability setups, which is crucial for traders using The Strat to time their trades effectively.
How the Indicator Works:
Inside Bar Formation: The indicator first checks that all four selected symbols had inside bars in the previous bar (i.e., the current high and low are contained within the previous bar’s high and low).
Simultaneous Break Detection: After detecting inside bars, the indicator checks if all four symbols break out in the same direction—bullish (breaking above the previous bar’s high) or bearish (breaking below the previous bar’s low).
Label Display: When a simultaneous inside bar break occurs, a label is plotted on the chart—either green for a bullish break (below the candle) or red for a bearish break (above the candle). The label will display the timeframe you set in the settings (e.g., "IBSB 60" for a 60-minute break).
Chart Timeframe Option: If you prefer, you can set the indicator to evolve with the chart’s current timeframe. In this mode, the label will not show a specific timeframe but will still display the simultaneous inside bar break when it occurs.
Recommendations for Usage:
Focus on Multiple Timeframes: The Strat methodology is all about understanding the relationship between different timeframes. Use this indicator on multiple timeframes to get a better picture of potential moves.
Pair with Other Strat Techniques: This indicator is most powerful when combined with other Strat tools, such as broadening formations, timeframe continuity, and actionable signals (e.g., 2-2 reversals). The simultaneous inside bar break can help confirm or invalidate other signals.
Customize Symbols and Timeframes: Although the default symbols are SPY, QQQ, IWM, and DIA, feel free to replace them with symbols more relevant to your trading. This indicator works well across equities, indices, futures, and forex pairs.
How to Set It Up:
Select Symbols: Choose four symbols that you want to track. These can be index ETFs (like SPY and QQQ), individual stocks, or any other tradable instruments.
Set Timeframe: In the indicator’s settings, choose a specific timeframe (e.g., 15-minute, 30-minute, daily). The label will reflect the selected timeframe, making it clear which time-based break you are seeing.
Optional - Chart Timeframe Mode: If you want the indicator to adapt to the chart’s current timeframe, select the "Chart Timeframe" option in the settings. The indicator will plot the breaks without showing a specific timeframe in the label.
Customize Label Size: Depending on your chart layout and personal preference, you can adjust the size of the labels (tiny, small, or normal) in the settings.
Conclusion:
The Simultaneous Inside Bar Break Indicator is a powerful tool for traders using The Strat methodology, offering a highly specific and reliable signal that can indicate potential large market moves. By monitoring multiple symbols and timeframes, you can gain deeper insight into the market's behavior and act with greater confidence. This indicator is ideal for traders looking to catch high-conviction moves and align their trades with broader market continuity.
Note: The indicator works best when paired with multi-timeframe analysis, allowing you to see how breaks on lower timeframes might influence larger trends. For traders who prefer simplicity, setting it to the "Chart Timeframe" mode offers flexibility while maintaining the core benefits of this indicator.
Post-Open Long Strategy with ATR-based Stop Loss and Take ProfitThe "Post-Open Long Strategy with ATR-Based Stop Loss and Take Profit" is designed to identify buying opportunities after the German and US markets open. It combines various technical indicators to filter entry signals, focusing on breakout moments following price lateralization periods.
Key Components and Their Interaction:
Bollinger Bands (BB):
Description: Uses BB with a 14-period length and standard deviation multiplier of 1.5, creating narrower bands for lower timeframes.
Role in the Strategy: Identifies low volatility phases (lateralization). The lateralization condition is met when the price is near the simple moving average of the BB, suggesting an imminent increase in volatility.
Exponential Moving Averages (EMA):
10-period EMA: Quickly detects short-term trend direction.
200-period EMA: Filters long-term trends, ensuring entries occur in a bullish market.
Interaction: Positions are entered only if the price is above both EMAs, indicating a consolidated positive trend.
Relative Strength Index (RSI):
Description: 7-period RSI with a threshold above 30.
Role in the Strategy: Confirms the market is not oversold, supporting the validity of the buy signal.
Average Directional Index (ADX):
Description: 7-period ADX with 7-period smoothing and a threshold above 10.
Role in the Strategy: Assesses trend strength. An ADX above 10 indicates sufficient momentum to justify entry.
Average True Range (ATR) for Dynamic Stop Loss and Take Profit:
Description: 14-period ATR with multipliers of 2.0 for Stop Loss and 4.0 for Take Profit.
Role in the Strategy: Adjusts exit levels based on current volatility, enhancing risk management.
Resistance Identification and Breakout:
Description: Analyzes the highs of the last 20 candles to identify resistance levels with at least two touches.
Role in the Strategy: A breakout above this level signals a potential continuation of the bullish trend.
Time Filters and Market Conditions:
Trading Hours: Operates only during the opening of the German market (8:00 - 12:00) and US market (15:30 - 19:00).
Panic Candle: The current candle must close negative, leveraging potential emotional reactions in the market.
Avoiding Entry During Pullbacks:
Description: Checks that the two previous candles are not both bearish.
Role in the Strategy: Avoids entering during a potential pullback, improving trade success probability.
Post-Open Long Strategy with ATR-Based Stop Loss and Take Profit
The "Post-Open Long Strategy with ATR-Based Stop Loss and Take Profit" is designed to identify buying opportunities after the German and US markets open. It combines various technical indicators to filter entry signals, focusing on breakout moments following price lateralization periods.
Key Components and Their Interaction:
Bollinger Bands (BB):
Description: Uses BB with a 14-period length and standard deviation multiplier of 1.5, creating narrower bands for lower timeframes.
Role in the Strategy: Identifies low volatility phases (lateralization). The lateralization condition is met when the price is near the simple moving average of the BB, suggesting an imminent increase in volatility.
Exponential Moving Averages (EMA):
10-period EMA: Quickly detects short-term trend direction.
200-period EMA: Filters long-term trends, ensuring entries occur in a bullish market.
Interaction: Positions are entered only if the price is above both EMAs, indicating a consolidated positive trend.
Relative Strength Index (RSI):
Description: 7-period RSI with a threshold above 30.
Role in the Strategy: Confirms the market is not oversold, supporting the validity of the buy signal.
Average Directional Index (ADX):
Description: 7-period ADX with 7-period smoothing and a threshold above 10.
Role in the Strategy: Assesses trend strength. An ADX above 10 indicates sufficient momentum to justify entry.
Average True Range (ATR) for Dynamic Stop Loss and Take Profit:
Description: 14-period ATR with multipliers of 2.0 for Stop Loss and 4.0 for Take Profit.
Role in the Strategy: Adjusts exit levels based on current volatility, enhancing risk management.
Resistance Identification and Breakout:
Description: Analyzes the highs of the last 20 candles to identify resistance levels with at least two touches.
Role in the Strategy: A breakout above this level signals a potential continuation of the bullish trend.
Time Filters and Market Conditions:
Trading Hours: Operates only during the opening of the German market (8:00 - 12:00) and US market (15:30 - 19:00).
Panic Candle: The current candle must close negative, leveraging potential emotional reactions in the market.
Avoiding Entry During Pullbacks:
Description: Checks that the two previous candles are not both bearish.
Role in the Strategy: Avoids entering during a potential pullback, improving trade success probability.
Entry and Exit Conditions:
Long Entry:
The price breaks above the identified resistance.
The market is in a lateralization phase with low volatility.
The price is above the 10 and 200-period EMAs.
RSI is above 30, and ADX is above 10.
No short-term downtrend is detected.
The last two candles are not both bearish.
The current candle is a "panic candle" (negative close).
Order Execution: The order is executed at the close of the candle that meets all conditions.
Exit from Position:
Dynamic Stop Loss: Set at 2 times the ATR below the entry price.
Dynamic Take Profit: Set at 4 times the ATR above the entry price.
The position is automatically closed upon reaching the Stop Loss or Take Profit.
How to Use the Strategy:
Application on Volatile Instruments:
Ideal for financial instruments that show significant volatility during the target market opening hours, such as indices or major forex pairs.
Recommended Timeframes:
Intraday timeframes, such as 5 or 15 minutes, to capture significant post-open moves.
Parameter Customization:
The default parameters are optimized but can be adjusted based on individual preferences and the instrument analyzed.
Backtesting and Optimization:
Backtesting is recommended to evaluate performance and make adjustments if necessary.
Risk Management:
Ensure position sizing respects risk management rules, avoiding risking more than 1-2% of capital per trade.
Originality and Benefits of the Strategy:
Unique Combination of Indicators: Integrates various technical metrics to filter signals, reducing false positives.
Volatility Adaptability: The use of ATR for Stop Loss and Take Profit allows the strategy to adapt to real-time market conditions.
Focus on Post-Lateralization Breakout: Aims to capitalize on significant moves following consolidation periods, often associated with strong directional trends.
Important Notes:
Commissions and Slippage: Include commissions and slippage in settings for more realistic simulations.
Capital Size: Use a realistic trading capital for the average user.
Number of Trades: Ensure backtesting covers a sufficient number of trades to validate the strategy (ideally more than 100 trades).
Warning: Past results do not guarantee future performance. The strategy should be used as part of a comprehensive trading approach.
With this strategy, traders can identify and exploit specific market opportunities supported by a robust set of technical indicators and filters, potentially enhancing their trading decisions during key times of the day.
DP-OCR MTF & MA 2024This script developed is designed for multi-timeframe analysis of previous open, close, and range, with additional signal plots based on various percentage extension levels. It also incorporates EMA calculations for crossover strategies. Here's a quick breakdown of what the script does:
Key Features:
1. Timeframes:
o Two separate timeframes (TF1 and TF2), which can be set by the user (e.g., 15 mins, 30 mins, daily, etc.). The script computes price actions and extensions for both timeframes. For better analysis, use Daily in TF1 and Weekly in TF2
2. Extension Levels:
o Calculates and plots 10%, 21%, 31%, 51%, and 61% extensions (both positive and negative) for each timeframe.
o The most commonly used extension levels are 61%, 31%, -61%, and -21%.
o These extension levels can be turned on or off by the user.
3. Open/Close/Range:
o Tracks the high, low, open, and close for both timeframes.
o Highlights open/close gaps.
o Plots the previous high/low range for both timeframes with a fill and different colors based on price movement.
How to Use:
• You can toggle specific extension levels on or off in the script’s settings.
• For example, when price hits a +61% extension, it could signal a breakout, and when it hits a -61% extension, it may indicate a potential retracement.
• Use these levels in conjunction with your price action analysis to set entry/exit points or stop-loss levels.
4. Today’s Open:
o Plots today’s opening price for both timeframes.
How to Use:
• Use today’s open as a key reference point to determine the day’s price action.
• Compare today’s open with the previous high/low or extension levels to evaluate possible trends or reversals.
5. EMA Calculations:
o The script calculates 5, 15, and 20 period EMAs and plots them on the chart.
o Additional EMA crossover signals can be included for strategy optimization.
How to Use:
• Observe the EMAs for potential crossover signals. For example, a 5-period EMA crossing above a 15-period or 20-period EMA may signal a buy opportunity, while a crossover in the opposite direction may signal a sell.
• Combine the EMA crossovers with extension levels or previous price data to refine your entries and exits.
Customizations Available:
• Users can select whether to display extension levels for either timeframe.
• The script allows automatic adaptation to intraday, daily, weekly, or monthly timeframes based on the current chart settings.
Moreover, the extension levels are calculated based on the previous period’s range, with the most commonly usable extension levels being 61, 31, -61, and -21. These levels are often used for identifying potential price retracements, breakouts, or reversal points in technical analysis.
Trend and RSI Bias FusionTrend and RSI Bias Fusion Indicator
This is my first ever indicator. I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share this because I believe in learning and earing together as a community. I will later share the rest of the indicators I have created. This is my first time ever sharing any indicator so if you guys have any questions or suggestions write them.
Overview
The "Trend and RSI Bias Fusion" indicator is a versatile tool designed to help traders identify key market trends, potential reversals, momentum shifts, and RSI-based pullbacks. This indicator fuses trend analysis and RSI bias into a single, comprehensive visual, making it easier to make informed trading decisions across various timeframes and market conditions.
Features
Dual Timeframe Analysis: Combines trend analysis on a higher timeframe (e.g., Daily) with RSI analysis on a lower timeframe (e.g., 4-Hour), providing a more granular view of market conditions. You can, however, choose any timeframe you want for instance 12hr with trend and 2hr RSI analysis.
Trend and Momentum Visualization: The indicator uses Exponential Moving Averages (EMAs) to determine trend direction and colors the chart background to reflect bullish or bearish trends, along with momentum strength.
RSI Bias Detection: Automatically identifies overbought and oversold conditions using the RSI, providing a clear indication of potential market reversals or continuations.
Color-Coded Bars: Optionally color codes bars based on either trend direction or RSI bias, giving you a quick visual cue of the market's state.
Reversal Markers: Displays trend reversal markers on the chart when the short-term EMA crosses over or under the long-term EMA.
Calculation Details
Exponential Moving Averages (EMAs): The indicator calculates short-term and long-term EMAs using the closing prices.
The crossover between these EMAs is used to determine the trend direction:
Short-Term EMA: Typically a 14-period EMA.
Long-Term EMA: Typically a 50-period EMA.
Momentum: Calculated using the RSI and then centered around zero by subtracting 50. This allows the indicator to distinguish between positive and negative momentum.
RSI Bias: The RSI is calculated on a lower timeframe to detect overbought (above 60) and oversold (below 40) conditions, which are used to determine the bias:
RSI Above 60: Indicates potential overbought conditions (bearish bias).
RSI Below 40: Indicates potential oversold conditions (bullish bias).
How to Use the Indicator
Select Your Timeframes: Choose your preferred trend timeframe (e.g., Daily) and RSI timeframe (e.g., 4-2 Hour) in the indicator settings. These should match your trading strategy and the asset class you're analyzing.
Interpret Trend and Momentum
Background Color: The background color reflects the current trend direction:
Green/Lime: Uptrend, with lime indicating positive momentum.
Red/Maroon: Downtrend, with maroon indicating positive momentum within a downtrend.
Momentum Histogram: The histogram plot shows momentum, color-coded by the trend. A histogram above zero with green/lime indicates bullish momentum, while below zero with red/maroon indicates bearish momentum.
Image above: Both RSI and Trend are set to daily, uses RSI bar color
Read RSI Bias:
The RSI bias line helps identify the current market state relative to overbought or oversold levels. The RSI value is plotted on the chart, with lines at 60 and 40 to mark these levels.
When the RSI crosses above 60, it suggests a bearish bias; crossing below 40 suggests a bullish bias.
Use Reversal Markers: The indicator places small circles on the chart at points where the short-term EMA crosses the long-term EMA, signaling potential trend reversals.
Bar Color Customization:
You can choose to color the bars based on either the trend or the RSI bias in the indicator settings. In the Images below I have changed the colors to fit my personal style , Blue for uptrend and Pink for downtrend:
Trend-Based: Bars will reflect the trend direction (green for uptrend or in this case blue, red for downtrend or in this case pink).
RSI-Based: Bars will reflect RSI conditions (yellow for overbought, maroon for oversold).
Image above: RSI is set to 4hr and Trend is set to daily, uses RSI bar color
Image above: RSI is set to 4hr and Trend is set to daily, uses Trend bar color
Image above: Both RSI and Trend are set to daily, uses RSI bar color
Image above: Both RSI and Trend are set to daily, uses Trend bar color
Image above: Both RSI and Trend are set to daily, without bar color
Image above: Both RSI and Trend are set to daily, how it looks on a clean chart
Example Use Case Swing Traders:
For instance, if you're trading a 4-hour chart of USDCHF:
Set the trend timeframe to Daily and the RSI timeframe to 4-Hour.
Watch for background color shifts and reversal markers to determine trend direction.
Use RSI bias to time your entries and exits, especially around overbought/oversold levels.
Enable bar coloring to quickly see when conditions favor either trend continuation or reversal.
This indicator is particularly effective for swing traders and those who want to align their trades with higher timeframe trends while using momentum and RSI for entry and exit signals.
For Day Traders
Timeframe Selection:
Trend Timeframe: Set to a higher intraday timeframe such as the 1 or 2 Hour chart.
RSI Timeframe: Set to a shorter timeframe like 15-10 Minutes or 5-Minutes to capture finer details of intraday momentum shifts.
Using the Indicator:
Trend Identification: Day traders can use the background color to quickly identify whether the market is in a bullish or bearish trend on the 1-Hour chart. A green background suggests looking for long opportunities, while a red background suggests short opportunities.
Momentum Analysis: The histogram can help day traders gauge the strength of the current trend. For example, if the histogram is green and above zero, the trader may consider buying pullbacks within the trend.
RSI Bias: Monitor RSI levels on the lower timeframe (e.g., 15-Minutes). If the RSI crosses below 40, it indicates an oversold condition, potentially signaling a buying opportunity, especially if it aligns with a bullish trend on the higher timeframe.
Trade Execution:
Look for entries when the RSI shows a reversal or pullback in the direction of the higher timeframe trend.
Use the trend reversal markers to confirm potential intraday reversals, adding extra confidence to trade setups.
For Scalpers
Timeframe Selection:
Trend Timeframe: Set to a short intraday timeframe like 15-Minutes or 5-Minutes.
RSI Timeframe: Use an even shorter timeframe, such as 1-Minute, to capture rapid price movements.
Final Notes:
The "Trend and RSI Bias Fusion" indicator is a powerful tool that combines trend analysis, momentum assessment, and RSI insights into one cohesive package. By integrating these different aspects, the indicator helps traders navigate complex market environments with greater clarity and confidence. Customize the settings to fit your specific trading style and market and use it to stay ahead of market trends and potential reversals.
My Scripts/Indicators/Ideas /Systems that I share are only for educational purposes!
MTOBVR_CheckOverview.
This indicator checks to see if the OBV follows a specific pattern and visually displays the trend of the OBV on different time legs. It also has the ability to set alerts when certain conditions are met.
How to use
Setting up the indicator
Add a new indicator on a chart in TradingView.
Copy the code into the “Pine Script™ Editor” and save it as a new script.
Apply the script to your chart.
Indicator Functions
OBV Calculation
Calculates OBV for each time frame (5-minute, 15-minute, 30-minute, 1-hour, 4-hour, daily, and weekly) and displays it on the chart OBV is an indicator that combines price changes and trading volume.
Pattern Detection
Detects whether a particular pattern, such as a double or triple bottom, appears in the OBV. This allows us to identify buy or sell signals.
When these patterns are detected, the background color changes.
Background Color Change
When an OBV forms a particular pattern, the background color of the chart changes. This provides visual confirmation that a pattern has appeared.
Minimum pattern (min_bool): when the 5-, 15-, and 30-minute conditions for OBV are met.
High hourly pattern (h_bool): when the condition is met for the 1-hour, 4-hour, and daily legs of the OBV.
One-week pattern (range_obv_1w_bool): when the condition is met for the 1-week OBV pattern.
When all conditions are met: when the minimum pattern, high hourly pattern, and one-week pattern are all met.
Alert Settings
You can set alerts when certain conditions are met. This allows you to receive signals in real time.
Minimum conditions (min_bool): conditions at 5, 15, and 30 minutes of OBV.
High timeframe condition (h_bool): condition on the 1-hour, 4-hour, and daily legs of the OBV.
When all conditions are met: When all of the above conditions are met.
One-week condition (range_obv_1w_bool): Condition for the one-week leg of the OBV.
When all conditions are met: when the minimum, high time leg, and one week conditions are all met.
Arrows
OBV_ALL_UP: A green triangle arrow is displayed when the OBV is rising on all time legs.
OBV_ALL_DOWN: A red triangle arrow appears when the OBV is falling on all time legs.
Usage Notes
Time Leg Settings: This script uses OBVs of different time legs to detect patterns. Depending on the time leg used, appropriate settings and interpretation are required.
Alert settings: In order to activate the alert function, the alert conditions and notification method must be configured using TradingView's alert system.
This indicator allows you to visually see trends and patterns in the OBV across multiple time frames, allowing you to make more informed trading decisions.
Control Candle Range [UkutaLabs]Control Candle Range
█ OVERVIEW
The Control Candle Range is a powerful trading tool that automatically identifies control candles in real time. The versatile ranges drawn by this indicator can be used in a variety of trading strategies because they can be used as ranges as well as areas of support and resistance.
The purpose of this script is to simplify the trading experience of users by automatically identifying and displaying Control Candle Ranges.
█ USAGE
A Control Candle is a candle that is followed by two consecutive inside candles. When this pattern is detected, this indicator will automatically identify it and draw a range in real time. This range will continue to extend as long as candles continue to close within the range of the Control Candle. It is important to note that a Control Candle is still valid if the price action exits its range as long as it closes within its range.
This script also supports higher time frame mapping, allowing you to draw Control Candle Ranges from higher timeframes onto lower timeframe charts. This is a powerful feature that allows users to see multiple timeframes worth of information at a glance on one single chart.
Each Control Candle Range will also be displayed with a label to allow users to understand at a glance which timeframe the range is being drawn from. These labels can be turned off in the settings.
The user also has the ability to adjust the color of each timeframe’s ranges.
█ SETTINGS
Configuration
• Show Labels: Determines whether or not identifying labels are displayed on ranges.
• Label Size: Determines the size of labels.
• Text Alignment: Determines where labels are drawn on ranges.
• Max Display: Determines the maximum number of ranges that can be drawn from each timeframe.
Current Timeframe
• Display (On/Off): Determines whether or not ranges from the current timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the current timeframe.
5 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 5 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 5 minute timeframe.
15 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 15 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 15 minute timeframe.
30 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 30 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 30 minute timeframe.
60 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 60 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 60 minute timeframe.
240 Minute (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the 240 minute timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the 240 minute timeframe.
Daily (Higher Timeframe)
• Display (On/Off): Determines whether or not ranges from the daily timeframe will be drawn on the chart.
• Color: Determines the color of ranges drawn from the daily timeframe.
Rsi Long-Term Strategy [15min]Hello, I would like to present to you The "RSI Long-Term Strategy" for 15min tf
The "RSI Long-Term Strategy " is designed for traders who prefer a combination of momentum and trend-following techniques. The strategy focuses on entering long positions during significant market corrections within an overall uptrend, confirmed by both RSI and volume. The use of long-term SMAs ensures that trades are made in line with the broader market trend. The stop-loss feature provides risk management by limiting losses on trades that do not perform as expected. This strategy is particularly well-suited for longer-term traders who monitor 15-minute charts but look for substantial trend reversals or continuations.
Indicators and Parameters:
Relative Strength Index (RSI):
- The RSI is calculated using a 10-period length. It measures the magnitude of recent price changes to evaluate overbought or oversold conditions. The script defines oversold conditions when the RSI is at or below 30 and overbought conditions when the RSI is at or above 70.
Volume Condition:
-The strategy incorporates a volume condition where the current volume must be greater than 2.5 times the 20-period moving average of volume. This is used to confirm the strength of the price movement.
Simple Moving Averages (SMA):
- The strategy uses two SMAs: SMA1 with a length of 250 periods and SMA2 with a length of 500 periods. These SMAs help identify long-term trends and generate signals based on their crossover.
Strategy Logic:
Entry Logic:
A long position is initiated when all the following conditions are met:
The RSI indicates an oversold condition (RSI ≤ 30).
SMA1 is above SMA2, indicating an uptrend.
The volume condition is satisfied, confirming the strength of the signal.
Exit Logic:
The strategy closes the long position when SMA1 crosses under SMA2, signaling a potential end of the uptrend (a "Death Cross").
Stop-Loss:
A stop-loss is set at 5% below the entry price to manage risk and limit potential losses.
Buy and sell signals are highlighted with circles below or above bars:
Green Circle : Buy signal when RSI is oversold, SMA1 > SMA2, and the volume condition is met.
Red Circle : Sell signal when RSI is overbought, SMA1 < SMA2, and the volume condition is met.
Black Cross: "Death Cross" when SMA1 crosses under SMA2, indicating a potential bearish signal.
to determine the level of stop loss and target point I used a piece of code by RafaelZioni, here is the script from which a piece of code was taken
I hope the strategy will be helpful, as always, best regards and safe trades
;)
Thrax - QuickStrike 5-Mins Scalping** Indicator Description **
1. Price Change Threshold (%) – The minimum price change required for a candle to be recognized as significant. Candles exceeding this threshold are considered potential candidates for zone creation. Default value for 5 min is 0.5%. As you move on higher timeframe the threshold should increase
2. Percentage Change for Zones (%) – The amount of price movement needed to form a dynamic support or resistance zone. Tweak this to control how sensitive the indicator is to price fluctuations. 5 min default value is 1%. For 15 min suggested is 2-3%.
3. Break Threshold for Zones (%) – Defines how much price must break above or below a zone for it to be removed from the chart/mitigated. Keeps the chart clean by removing invalidated zones. Default value is 0.1% in 5 min, for 15 min it is 0.5%.
4. Buy Zone Retracement Level (%) – The percentage retracement level for defining the inner buy zone within a broader bullish zone. Ideal for timing precision entries. Ideal value is 75%
5. Sell Zone Retracement Level (%) – The percentage retracement level used to determine the inner sell zone within a larger bearish zone. Helps in identifying potential reversal areas or exits. Ideal value is 25%
By tailoring these inputs, traders can fully customize the indicator to suit their scalping strategies, enhancing their ability to navigate fast-moving markets with confidence.
---------------------------------------------------------------------------
There are two primary approaches for scalping using this indicator:
1. Candle-Based Scalping:
a. Bullish Signal: When you observe a bullish candle highlighted in blue (by default), you can consider entering a long position at the close of this candle. It’s advisable to wait for the candle to close before taking action. For a more aggressive scalp, you might take profits based on your scalp target after a few subsequent candles. If the price remains stagnant or moves unfavorably in the next few candles, you can exit with a small loss. Alternatively, if you have a higher risk tolerance, you may hold the position even if the price initially declines within a set percentage.
b. Bearish Signal: For a bearish candle highlighted in yellow, you can enter a short trade at the close of the candle. Similar to the bullish setup, you have the option to exit after a few candles if the price doesn’t move as expected or hold the position with a higher risk tolerance if the price goes up initially.
2. Zone-Based Scalping:
Entering Zones: Monitor the price as it enters a defined support or resistance zone. If you are open to higher risk, you can enter a trade immediately upon the price entering the zone. For a more cautious approach with a smaller stop loss, wait for the price to reach a retracement level within the zone before initiating your trade. This approach allows for a more precise entry but may result in missing out on trades if the price reverses before hitting the retracement level. Conversely, entering at the zone’s boundary offers the potential for early trade capture but comes with a higher stop loss risk.
Adjust these strategies based on your risk tolerance and trading preferences to optimize your scalping opportunities.
Macro Times [Blu_Ju]About ICT Macro Times:
The Inner Circle Trader (ICT) has taught that there are certain time sessions when the Interbank Price Delivery Algorithm (IPDA) is running a macro. The macro itself could be a repricing macro, a consolidation macro, etc. - this depends on where price currently is in relation to its draw. The times the macro is active do not change however, and are always the following (in New York local time):
8:50-9:10 (premarket macro)
9:50-10:10 (AM macro 1)
10:50-11:10 (AM macro 2)
11:50-12:10 (lunch macro)
13:10-13:40 (PM macro)
15:15-15:45 (final hour macro)
Because these times are fixed, traders can anticipate a setup is likely to form in or around these sessions. Setups may involve sweeps of liquidity (highs/lows), repricing to inefficiencies (e.g., fair value gaps), breaker setups, etc. (The specific setup involved is beyond the scope of this script; this script is concerned with visually marking the time sessions only.)
About this Script:
The scope of this script is to visually identify the macro active time sessions. This script draws vertical lines to mark the start and end of the macro time sessions. Optionally, the user can use a background color for the macro session with or without the vertical lines. The user can also toggle on or off any of the macro sessions, if he or she is only interested in certain ones. The user also has the freedom to change the times of the macro sessions if he or she is interested in a different time.
What makes this script unique is that it plots the macro time sessions after midnight for each day, before the real-time bar reaches the macro times. This is advantageous to the trader, as it gives the trader a visual cue that the macro times are approaching. When watching price it is easy to lose track of time, and the purpose of this script is to help the trader maintain where price is in relation to the macro time sessions in a simple, visual way.
Fine-tune Inputs: Fourier Smoothed Volume zone oscillator WFSVZ0Use this Strategy to Fine-tune inputs for the (W&)FSVZ0 Indicator.
Strategy allows you to fine-tune the indicator for 1 TimeFrame at a time; cross Timeframe Input fine-tuning is done manually after exporting the chart data.
I suggest using "Close all" input False when fine-tuning Inputs for 1 TimeFrame. When you export data to Excel/Numbers/GSheets I suggest using "Close all" input as True, except for the lowest TimeFrame.
MEANINGFUL DESCRIPTION:
The Volume Zone oscillator breaks up volume activity into positive and negative categories. It is positive when the current closing price is greater than the prior closing price and negative when it's lower than the prior closing price. The resulting curve plots through relative percentage levels that yield a series of buy and sell signals, depending on level and indicator direction.
The Wavelet & Fourier Smoothed Volume Zone Oscillator (W&)FSVZO is a refined version of the Volume Zone Oscillator, enhanced by the implementation of the Discrete Fourier Transform . Its primary function is to streamline price data and diminish market noise, thus offering a clearer and more precise reflection of price trends.
By combining the Wavalet and Fourier aproximation with Ehler's white noise histogram, users gain a comprehensive perspective on volume-related market conditions.
HOW TO USE THE INDICATOR:
The default period is 2 but can be adjusted after backtesting. (I suggest 5 VZO length and NoiceR max length 8 as-well)
The VZO points to a positive trend when it is rising above the 0% level, and a negative trend when it is falling below the 0% level. 0% level can be adjusted in setting by adjusting VzoDifference. Oscillations rising below 0% level or falling above 0% level result in a natural trend.
HOW TO USE THE STRATEGY:
Here you fine-tune the inputs until you find a combination that works well on all Timeframes you will use when creating your Automated Trade Algorithmic Strategy. I suggest 4h, 12h, 1D, 2D, 3D, 4D, 5D, 6D, W and M.
When I ndicator/Strategy returns 0 or natural trend , Strategy Closes All it's positions.
ORIGINALITY & USFULLNESS:
Personal combination of Fourier and Wavalet aproximation of a price which results in less noise Volume Zone Oscillator.
The Wavelet Transform is a powerful mathematical tool for signal analysis, particularly effective in analyzing signals with varying frequency or non-stationary characteristics. It dissects a signal into wavelets, small waves with varying frequency and limited duration, providing a multi-resolution analysis. This approach captures both frequency and location information, making it especially useful for detecting changes or anomalies in complex signals.
The Discrete Fourier Transform (DFT) is a mathematical technique that transforms discrete data from the time domain into its corresponding representation in the frequency domain. This process involves breaking down a signal into its individual frequency components, thereby exposing the amplitude and phase characteristics inherent in each frequency element.
This indicator utilizes the concept of Ehler's Universal Oscillator and displays a histogram, offering critical insights into the prevailing levels of market noise. The Ehler's Universal Oscillator is grounded in a statistical model that captures the erratic and unpredictable nature of market movements. Through the application of this principle, the histogram aids traders in pinpointing times when market volatility is either rising or subsiding.
DETAILED DESCRIPTION:
My detailed description of the indicator and use cases which I find very valuable.
What is oscillator?
Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets.
What is volume zone oscillator?
Price Zone Oscillator measures if the most recent closing price is above or below the preceding closing price.
Volume Zone Oscillator is Volume multiplied by the 1 or -1 depending on the difference of the preceding 2 close prices and smoothed with Exponential moving Average.
What does this mean?
If the VZO is above 0 and VZO is rising. We have a bullish trend. Most likely.
If the VZO is below 0 and VZO is falling. We have a bearish trend. Most likely.
Rising means that VZO on close is higher than the previous day.
Falling means that VZO on close is lower than the previous day.
What if VZO is falling above 0 line?
It means we have a high probability of a bearish trend.
Thus the indicator returns 0 and Strategy closes all it's positions when falling above 0 (or rising bellow 0) and we combine higher and lower timeframes to gauge the trend.
In the next Image you can see that trend is negative on 4h, negative on 12h and positive on 1D. That means trend is negative.
I am sorry, the chart is a bit messy. The idea is to use the indicator over more than 1 Timeframe.
What is approximation and smoothing?
They are mathematical concepts for making a discrete set of numbers a
continuous curved line.
Fourier and Wavelet approximation of a close price are taken from aprox library.
Key Features:
You can tailor the Indicator/Strategy to your preferences with adjustable parameters such as VZO length, noise reduction settings, and smoothing length.
Volume Zone Oscillator (VZO) shows market sentiment with the VZO, enhanced with Exponential Moving Average (EMA) smoothing for clearer trend identification.
Noise Reduction leverages Euler's White noise capabilities for effective noise reduction in the VZO, providing a cleaner and more accurate representation of market dynamics.
Choose between the traditional Fast Fourier Transform (FFT) , the innovative Double Discrete Fourier Transform (DTF32) and Wavelet soothed Fourier soothed price series to suit your analytical needs.
Image of Wavelet transform with FAST settings, Double Fourier transform with FAST settings. Improved noice reduction with SLOW settings, and standard FSVZO with SLOW settings:
Fast setting are setting by default:
VZO length = 2
NoiceR max Length = 2
Slow settings are:
VZO length = 5 or 7
NoiceR max Length = 8
As you can see fast setting are more volatile. I suggest averaging fast setting on 4h 12h 1d 2d 3d 4d W and M Timeframe to get a clear view on market trend.
What if I want long only when VZO is rising and above 15 not 0?
You have set Setting VzoDifference to 15. That reduces the number of trend changes.
Example of W&FSVZO with VzoDifference 15 than 0:
VZO crossed 0 line but not 15 line and that's why Indicator returns 0 in one case an 1 in another.
What is Smooth length setting?
A way of calculating Bullish or Bearish (W&)FSVZO .
If smooth length is 2 the trend is rising if:
rising = VZO > ta.ema(VZO, 2)
Meaning that we check if VZO is higher that exponential average of the last 2 elements.
If smooth length is 1 the trend is rising if:
rising = VZO_ > VZO_
Use this Strategy to fine-tune inputs for the (W&)FSVZO Indicator.
(Strategy allows you to fine-tune the indicator for 1 TimeFrame at a time; cross Timeframe Input fine-tuning is done manually after exporting the chart data)
I suggest using " Close all " input False when fine-tuning Inputs for 1 TimeFrame . When you export data to Excel/Numbers/GSheets I suggest using " Close all " input as True , except for the lowest TimeFrame . I suggest using 100% equity as your default quantity for fine-tune purposes. I have to mention that 100% equity may lead to unrealistic backtesting results. Be avare. When backtesting for trading purposes use Contracts or USDT.
Statistics • Chi Square • P-value • SignificanceThe Statistics • Chi Square • P-value • Significance publication aims to provide a tool for combining different conditions and checking whether the outcome is significant using the Chi-Square Test and P-value.
🔶 USAGE
The basic principle is to compare two or more groups and check the results of a query test, such as asking men and women whether they want to see a romantic or non-romantic movie.
–––––––––––––––––––––––––––––––––––––––––––––
| | ROMANTIC | NON-ROMANTIC | ⬅︎ MOVIE |
–––––––––––––––––––––––––––––––––––––––––––––
| MEN | 2 | 8 | 10 |
–––––––––––––––––––––––––––––––––––––––––––––
| WOMEN | 7 | 3 | 10 |
–––––––––––––––––––––––––––––––––––––––––––––
|⬆︎ SEX | 10 | 10 | 20 |
–––––––––––––––––––––––––––––––––––––––––––––
We calculate the Chi-Square Formula, which is:
Χ² = Σ ( (Observed Value − Expected Value)² / Expected Value )
In this publication, this is:
chiSquare = 0.
for i = 0 to rows -1
for j = 0 to colums -1
observedValue = aBin.get(i).aFloat.get(j)
expectedValue = math.max(1e-12, aBin.get(i).aFloat.get(colums) * aBin.get(rows).aFloat.get(j) / sumT) //Division by 0 protection
chiSquare += math.pow(observedValue - expectedValue, 2) / expectedValue
Together with the 'Degree of Freedom', which is (rows − 1) × (columns − 1) , the P-value can be calculated.
In this case it is P-value: 0.02462
A P-value lower than 0.05 is considered to be significant. Statistically, women tend to choose a romantic movie more, while men prefer a non-romantic one.
Users have the option to choose a P-value, calculated from a standard table or through a math.ucla.edu - Javascript-based function (see references below).
Note that the population (10 men + 10 women = 20) is small, something to consider.
Either way, this principle is applied in the script, where conditions can be chosen like rsi, close, high, ...
🔹 CONDITION
Conditions are added to the left column ('CONDITION')
For example, previous rsi values (rsi ) between 0-100, divided in separate groups
🔹 CLOSE
Then, the movement of the last close is evaluated
UP when close is higher then previous close (close )
DOWN when close is lower then previous close
EQUAL when close is equal then previous close
It is also possible to use only 2 columns by adding EQUAL to UP or DOWN
UP
DOWN/EQUAL
or
UP/EQUAL
DOWN
In other words, when previous rsi value was between 80 and 90, this resulted in:
19 times a current close higher than previous close
14 times a current close lower than previous close
0 times a current close equal than previous close
However, the P-value tells us it is not statistical significant.
NOTE: Always keep in mind that past behaviour gives no certainty about future behaviour.
A vertical line is drawn at the beginning of the chosen population (max 4990)
Here, the results seem significant.
🔹 GROUPS
It is important to ensure that the groups are formed correctly. All possibilities should be present, and conditions should only be part of 1 group.
In the example above, the two top situations are acceptable; close against close can only be higher, lower or equal.
The two examples at the bottom, however, are very poorly constructed.
Several conditions can be placed in more than 1 group, and some conditions are not integrated into a group. Even if the results are significant, they are useless because of the group formation.
A population count is added as an aid to spot errors in group formation.
In this example, there is a discrepancy between the population and total count due to the absence of a condition.
The results when rsi was between 5-25 are not included, resulting in unreliable results.
🔹 PRACTICAL EXAMPLES
In this example, we have specific groups where the condition only applies to that group.
For example, the condition rsi > 55 and rsi <= 65 isn't true in another group.
Also, every possible rsi value (0 - 100) is present in 1 of the groups.
rsi > 15 and rsi <= 25 28 times UP, 19 times DOWN and 2 times EQUAL. P-value: 0.01171
When looking in detail and examining the area 15-25 RSI, we see this:
The population is now not representative (only checking for RSI between 15-25; all other RSI values are not included), so we can ignore the P-value in this case. It is merely to check in detail. In this case, the RSI values 23 and 24 seem promising.
NOTE: We should check what the close price did without any condition.
If, for example, the close price had risen 100 times out of 100, this would make things very relative.
In this case (at least two conditions need to be present), we set 1 condition at 'always true' and another at 'always false' so we'll get only the close values without any condition:
Changing the population or the conditions will change the P-value.
In the following example, the outcome is evaluated when:
close value from 1 bar back is higher than the close value from 2 bars back
close value from 1 bar back is lower/equal than the close value from 2 bars back
Or:
close value from 1 bar back is higher than the close value from 2 bars back
close value from 1 bar back is equal than the close value from 2 bars back
close value from 1 bar back is lower than the close value from 2 bars back
In both examples, all possibilities of close against close are included in the calculations. close can only by higher, equal or lower than close
Both examples have the results without a condition included (5 = 5 and 5 < 5) so one can compare the direction of current close.
🔶 NOTES
• Always keep in mind that:
Past behaviour gives no certainty about future behaviour.
Everything depends on time, cycles, events, fundamentals, technicals, ...
• This test only works for categorical data (data in categories), such as Gender {Men, Women} or color {Red, Yellow, Green, Blue} etc., but not numerical data such as height or weight. One might argue that such tests shouldn't use rsi, close, ... values.
• Consider what you're measuring
For example rsi of the current bar will always lead to a close higher than the previous close, since this is inherent to the rsi calculations.
• Be careful; often, there are na -values at the beginning of the series, which are not included in the calculations!
• Always keep in mind considering what the close price did without any condition
• The numbers must be large enough. Each entry must be five or more. In other words, it is vital to make the 'population' large enough.
• The code can be developed further, for example, by splitting UP, DOWN in close UP 1-2%, close UP 2-3%, close UP 3-4%, ...
• rsi can be supplemented with stochRSI, MFI, sma, ema, ...
🔶 SETTINGS
🔹 Population
• Choose the population size; in other words, how many bars you want to go back to. If fewer bars are available than set, this will be automatically adjusted.
🔹 Inputs
At least two conditions need to be chosen.
• Users can add up to 11 conditions, where each condition can contain two different conditions.
🔹 RSI
• Length
🔹 Levels
• Set the used levels as desired.
🔹 Levels
• P-value: P-value retrieved using a standard table method or a function.
• Used function, derived from Chi-Square Distribution Function; JavaScript
LogGamma(Z) =>
S = 1
+ 76.18009173 / Z
- 86.50532033 / (Z+1)
+ 24.01409822 / (Z+2)
- 1.231739516 / (Z+3)
+ 0.00120858003 / (Z+4)
- 0.00000536382 / (Z+5)
(Z-.5) * math.log(Z+4.5) - (Z+4.5) + math.log(S * 2.50662827465)
Gcf(float X, A) => // Good for X > A +1
A0=0., B0=1., A1=1., B1=X, AOLD=0., N=0
while (math.abs((A1-AOLD)/A1) > .00001)
AOLD := A1
N += 1
A0 := A1+(N-A)*A0
B0 := B1+(N-A)*B0
A1 := X*A0+N*A1
B1 := X*B0+N*B1
A0 := A0/B1
B0 := B0/B1
A1 := A1/B1
B1 := 1
Prob = math.exp(A * math.log(X) - X - LogGamma(A)) * A1
1 - Prob
Gser(X, A) => // Good for X < A +1
T9 = 1. / A
G = T9
I = 1
while (T9 > G* 0.00001)
T9 := T9 * X / (A + I)
G := G + T9
I += 1
G *= math.exp(A * math.log(X) - X - LogGamma(A))
Gammacdf(x, a) =>
GI = 0.
if (x<=0)
GI := 0
else if (x
Chisqcdf = Gammacdf(Z/2, DF/2)
Chisqcdf := math.round(Chisqcdf * 100000) / 100000
pValue = 1 - Chisqcdf
🔶 REFERENCES
mathsisfun.com, Chi-Square Test
Chi-Square Distribution Function
Wavelet & Fourier Smoothed Volume zone oscillator (W&)FSVZO Indicator id:
USER;e7a774913c1242c3b1354334a8ea0f3c
(only relevant to those that use API requests)
MEANINGFUL DESCRIPTION:
The Volume Zone oscillator breaks up volume activity into positive and negative categories. It is positive when the current closing price is greater than the prior closing price and negative when it's lower than the prior closing price. The resulting curve plots through relative percentage levels that yield a series of buy and sell signals, depending on level and indicator direction.
The Wavelet & Fourier Smoothed Volume Zone Oscillator (W&)FSVZO is a refined version of the Volume Zone Oscillator, enhanced by the implementation of the Discrete Fourier Transform. Its primary function is to streamline price data and diminish market noise, thus offering a clearer and more precise reflection of price trends.
By combining the Wavalet and Fourier aproximation with Ehler's white noise histogram, users gain a comprehensive perspective on volume-related market conditions.
HOW TO USE THE INDICATOR:
The default period is 2 but can be adjusted after backtesting. (I suggest 5 VZO length and NoiceR max length 8 as-well)
The VZO points to a positive trend when it is rising above the 0% level, and a negative trend when it is falling below the 0% level. 0% level can be adjusted in setting by adjusting VzoDifference. Oscillations rising below 0% level or falling above 0% level result in natural trend.
ORIGINALITY & USFULLNESS:
Personal combination of Fourier and Wavalet aproximation of a price which results in less noise Volume Zone Oscillator.
The Wavelet Transform is a powerful mathematical tool for signal analysis, particularly effective in analyzing signals with varying frequency or non-stationary characteristics. It dissects a signal into wavelets, small waves with varying frequency and limited duration, providing a multi-resolution analysis. This approach captures both frequency and location information, making it especially useful for detecting changes or anomalies in complex signals.
The Discrete Fourier Transform (DFT) is a mathematical technique that transforms discrete data from the time domain into its corresponding representation in the frequency domain. This process involves breaking down a signal into its individual frequency components, thereby exposing the amplitude and phase characteristics inherent in each frequency element.
This indicator utilizes the concept of Ehler's Universal Oscillator and displays a histogram, offering critical insights into the prevailing levels of market noise. The Ehler's Universal Oscillator is grounded in a statistical model that captures the erratic and unpredictable nature of market movements. Through the application of this principle, the histogram aids traders in pinpointing times when market volatility is either rising or subsiding.
DETAILED DESCRIPTION:
My detailed description of the indicator and use cases which I find very valuable.
What is oscillator?
Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets.
What is volume zone oscillator?
Price Zone Oscillator measures if the most recent closing price is above or below the preceding closing price.
Volume Zone Oscillator is Volume multiplied by the 1 or -1 depending on the difference of the preceding 2 close prices and smoothed with Exponential moving Average.
What does this mean?
If the VZO is above 0 and VZO is rising. We have a bullish trend. Most likely.
If the VZO is below 0 and VZO is falling. We have a bearish trend. Most likely.
Rising means that VZO on close is higher than the previous day.
Falling means that VZO on close is lower than the previous day.
What if VZO is falling above 0 line?
It means we have a high probability of a bearish trend.
Thus the indicator returns 0 when falling above 0 (or rising bellow 0) and we combine higher and lower timeframes to gauge the trend.
In the next Image you can see that trend is positive on 4h, neutral on 12h and positive on 1D. That means trend is positive.
I am sorry, the chart is a bit messy. The idea is to use the indicator over more than 1 Timeframe.
What is approximation and smoothing?
They are mathematical concepts for making a discrete set of numbers a
continuous curved line.
Fourier and Wavelet approximation of a close price are taken from aprox library.
Key Features:
You can tailor the indicator to your preferences with adjustable parameters such as VZO length, noise reduction settings, and smoothing length.
Volume Zone Oscillator (VZO) shows market sentiment with the VZO, enhanced with Exponential Moving Average (EMA) smoothing for clearer trend identification.
Noise Reduction leverages Euler's White noise capabilities for effective noise reduction in the VZO, providing a cleaner and more accurate representation of market dynamics.
Choose between the traditional Fast Fourier Transform (FFT), the innovative Double Discrete Fourier Transform (DTF32) and Wavelet soothed Fourier soothed price series to suit your analytical needs.
Image of Wavelet transform with FAST settings, Double Fourier transform with FAST settings. Improved noice reduction with SLOW settings, and standard FSVZO with SLOW settings:
Fast setting are setting by default:
VZO length = 2
NoiceR max Length = 2
Slow settings are:
VZO length = 5 or 7
NoiceR max Length = 8
As you can see fast setting are more volatile. I suggest averaging fast setting on 4h 12h 1d 2d 3d 4d W and M Timeframe to get a clear view on market trend.
What if I want long only when VZO is rising and above 15 not 0?
You have set Setting VzoDifference to 15. That reduces the number of trend changes.
Example of W&FSVZO with VzoDifference 15 than 0:
VZO crossed 0 line but not 15 line and that's why Indicator returns 0 in one case an 1 in another.
What is Smooth length setting?
A way of calculating Bullish or Bearish FSVZO.
If smooth length is 2 the trend is rising if:
rising = VZO > ta.ema(VZO, 2)
Meaning that we check if VZO is higher that exponential average of the last 2 elements.
If smooth length is 1 the trend is rising if:
rising = VZO_ > VZO_
Rising is boolean value, meaning TRUE if rising and FALSE if falling.
Mathematical equations presented in Pinescript:
Fourier of the real (x axis) discrete:
x_0 = array.get(x, 0) + array.get(x, 1) + array.get(x, 2)
x_1 = array.get(x, 0) + array.get(x, 1) * math.cos( -2 * math.pi * _dir / 3 ) - array.get(y, 1) * math.sin( -2 * math.pi * _dir / 3 ) + array.get(x, 2) * math.cos( -4 * math.pi * _dir / 3 ) - array.get(y, 2) * math.sin( -4 * math.pi * _dir / 3 )
x_2 = array.get(x, 0) + array.get(x, 1) * math.cos( -4 * math.pi * _dir / 3 ) - array.get(y, 1) * math.sin( -4 * math.pi * _dir / 3 ) + array.get(x, 2) * math.cos( -8 * math.pi * _dir / 3 ) - array.get(y, 2) * math.sin( -8 * math.pi * _dir / 3 )
Euler's Noice reduction with both close and Discrete Furrier approximated price.
w = (dft1*src - dft1 *src ) / math.sqrt(math.pow(math.abs(src- src ),2) + math.pow(math.abs(dft1 - dft1 ),2))
filt := na(filt ) ? 0 : c1 * (w*dft1 + nz(w *dft1 )) / 2.0 /math.abs(dft1 -dft1 ) + c2 * nz(filt ) - c3 * nz(filt )
Usecase:
First option:
Select the preferred version of DFT and noise reduction settings based on your analysis requirements.
Leverage the script to identify Bullish and Bearish trends, shown with green and red triangle.
Combine Different Timeframes to accurately determine market trend.
Second option:
Pull the data with API sockets to automate your trading journey.
plot(close, title="ClosePrice", display=display.status_line)
plot(open, title="OpenPrice", display=display.status_line)
plot(greencon ? 1 : redcon ? -1 : 0, title="position", display=display.status_line)
Use ClosePrice, OpenPrice and "position" titles to easily read and backtest your strategy utilising more than 1 Time Frame.
Indicator id:
USER;e7a774913c1242c3b1354334a8ea0f3c
(only relevant to those that use API requests)
Enhanced High Volume AbsorptionDescription of the "Enhanced High Volume Absorption" Indicator
The "Enhanced High Volume Absorption" indicator is a specialized trading tool designed for the TradingView platform, optimized for the 15-minute chart timeframe. It offers traders a unique approach to analyzing market momentum and strength by focusing on significant volume movements, which are often precursors to major price shifts.
What the Indicator Does:
High Volume Detection: This indicator identifies periods of high volume trading, which is a key indicator of strong market interest. High volume periods often precede significant price movements, making this an essential tool for anticipating market trends.
Volume Absorption Analysis: It analyzes the absorption of volume in the market. Absorption here refers to situations where the market is able to absorb trading volumes significantly higher than the average without a corresponding substantial change in price. This can be an indication of strong underlying market strength or weakness.
Price Movement Correlation: The script correlates volume spikes with price movements (upward or downward) to provide context to the volume absorption. This correlation helps determine whether the absorption is due to buying pressure (bullish indication) or selling pressure (bearish indication).
How It Does It:
Moving Average Comparisons: The script calculates short-term and long-term Simple Moving Averages (SMAs) of trading volumes. By comparing current volumes to these averages, it determines if the current volume is significantly higher than usual.
Volume Thresholds: It uses user-defined multipliers and minimum volume thresholds to filter significant volume events, ensuring that only notable volume spikes are considered.
Impact Analysis: Alongside volume analysis, the script computes the price change and its impact as a percentage of the current price, providing insights into the magnitude of price movements during these high-volume periods.
How to Use It:
Market Entry and Exit Points: The indicator can be used to spot potential entry and exit points. For example, a high volume absorption event with a minimal price change might indicate a strong support or resistance level.
Confirming Market Sentiment: It can be used in conjunction with other technical indicators to confirm market trends or reversals. High volume absorption aligned with other bullish or bearish indicators can provide a stronger case for a market move.
Scalping and Short-Term Trading: Optimized for the 15-minute timeframe, this indicator is particularly useful for scalpers and short-term traders. It helps in identifying quick market movements and can be a crucial part of a scalping strategy.
Originality and Underlying Concepts:
The originality of this indicator lies in its specific focus on volume absorption and its impact on price, especially tailored for short-term trading scenarios. Unlike many indicators that only analyze price movements or standard volume analysis, this script delves deeper into how the market is reacting to volume spikes, offering a nuanced view of market dynamics
that is often overlooked. The concept of volume absorption, coupled with the analysis of price movement direction, provides a unique perspective on market strength or weakness.
This tool is distinct in its approach as it doesn't just follow trends or provide generic scalping signals. Instead, it offers a methodical analysis of volume dynamics in relation to price action. By focusing on how the market absorbs volume, the indicator gives traders insights into whether current market movements are backed by substantial trading activity or if they are more likely to be short-lived.
Understanding volume absorption is crucial, especially in a 15-minute trading environment where market movements are swift and require quick decision-making. This indicator aids in identifying those moments when the market shows a significant reaction (or lack thereof) to large volumes, indicating potential setup for a strong move or reversal.
In summary, the "Enhanced High Volume Absorption" indicator is a valuable tool for traders who want to incorporate volume analysis into their trading strategy, especially in a fast-paced, short-term trading environment. It provides a deeper understanding of market dynamics, enabling traders to make more informed decisions based on the interplay between volume and price action.
Intraday FIB ScalpingThe Intraday Fibonacci Levels Indicator is a powerful tool designed to enhance trading decisions in intraday markets. Leveraging the dynamic nature of Fibonacci retracement levels, this indicator utilizes the high and low prices observed within the first 15 minutes of the trading session to plot key levels and establish potential entry and exit zones.
Key Features:
Automatic Calculation: The indicator swiftly calculates Fibonacci retracement levels based on the highest high and lowest low recorded during the initial 15 minutes of the trading day. This ensures a quick and accurate representation of potential support and resistance levels.
Zone Marking for Precision: The indicator marks specific zones on the chart, providing traders with clear visual cues for potential entry and exit points. These zones are strategically aligned with Fibonacci levels, offering a systematic approach to decision-making.
User-Friendly Interface: With a user-friendly interface, the Intraday Fibonacci Levels Indicator is suitable for both novice and experienced traders. The intuitive design allows for easy interpretation of signals and levels.
By harnessing the power of Fibonacci retracement levels and incorporating them into an intraday context, this indicator empowers traders with a systematic and data-driven approach to decision-making. Whether identifying entry points, setting stop losses, or planning exit strategies, the Intraday Fibonacci Levels Indicator serves as a valuable ally in navigating the complexities of intraday trading.
How to Trade using these Levels?
With this indicator, you can see all the levels between whole number and its corresponding 0.272 were highlighted. That is where we need to look for intraday trade entry. If any of the level broken on either side and the bar closes below ore above the highlighted area, we should enter the trade in that direction with immediate next FIB level as TP1 and subsequent level as TP2. And, an opposite directional close above or below the highlighted level will be considered as stop loss exit.
We prefer to trade in 3 minutes or 5 minutes timeframe for intraday trading.
How we plot the levels?
We are incorporating ORB into Fibonacci to plot intraday trading levels. We use high and low of first 15 minutes candle of each new trading session to arrive the levels for that session.
When market is trading above or below initially plotted levels, user can extend the levels by enabling extentions provided in user settings
Channels With Patterns [ChartPrime]The Channels With Patterns indicator is an attempt at minimizing the delay in forming a trend channel. This indicator uses a single pivot in conjunction with a smooth version of the price to estimate the direction of an emerging trend. Using ATR, this indicator estimates the volatility of the new trend by adjusting the channel size by a multiple of the current ATR.
One of the biggest complains for any trend indicator is that it takes too long to create a channel or trend line. This indicator estimates the trend channel by checking if the price is moving in the correct direction and then it projects the channel from a single pivot. To allow for some margin of error, this script uses an offset to help center the channel.
This offset is generated from the ATR at the time of formation. In conjunction with forming estimated trend channels, this indicator features select candle stick patterns. These candle stick patterns are filtered by location in the formed trend channel. If the price is within an extremity of the trend channel it will appear. Filtering classical vanilla candle stick patterns using this methodology can result in some interesting results and possible confluence points for traders. For example; a bearish hammer appearing when filtered in an upper zone might add an extra level of realtime unique confluence traders.
Traders can use this script as a general trend line indicator that is a bit more forward looking than others, or it can be used it as its full blown trend channel estimator. Due to the fact that this is an estimate using the minimum possible information to make the channel, its accuracy will not always be perfect and can suffer compared to alternative methods.
When configuring the indicator it is important to understand the role of each input. Here is a description of all of the settings provided:
Presets (`preset`): This input allows users to quickly configure the indicator based on the market they are trading in. Selecting "Stocks," "Forex," or "Crypto" automatically adjusts various parameters to settings deemed optimal for these markets. The "User" option lets traders manually configure settings for a more personalized approach.
Style (`style`): This setting determines how pivot points are calculated. "Wick" uses the high and low of candlesticks (including wicks), which can be more sensitive to market extremes. "Body" uses only the open and close prices (the body of the candlesticks), potentially offering a more stable pivot point calculation.
Break Style (`break_style`): This option defines what price is used to determine if a channel has been broken. "Close" uses the closing price of a candlestick, while "High/Low" uses the highest and lowest prices. This affects how channel breaks are identified and can influence trading signals.
Instant Mode (`instant`): When enabled, this feature allows the indicator to form channels more quickly by initiating them as soon as potential formations are detected. This can provide earlier signals but may increase the risk of false positives.
ATR Length (`atr_length`): This input sets the period for the Average True Range (ATR), a common volatility indicator. A longer ATR period may smooth out the channel but could delay responsiveness to market changes. A shorter period might make the channel more responsive but potentially more erratic.
Offset Center (`offset`): Adjusts the vertical positioning of the channel. This can help in aligning the channel more accurately with the price action, depending on market conditions and personal trading strategies.
Size (`atr_multiplier`): Alters the channel's size relative to the ATR. A higher multiplier makes a wider channel, which might be useful in more volatile markets. A lower multiplier tightens the channel, which could be better for less volatile conditions.
Padding % (`padding`): This setting adjusts the padding within the top and bottom quarters of the channel. It essentially fine-tunes the channel's sensitivity to price movements near its boundaries.
Pivot Length (`pivot_length`): Determines the number of bars used to calculate pivot points. A longer length may provide more significant pivot points but can reduce the number of channels formed.
Pivot Look Forward (`look_forward`): Sets the number of bars to look forward in the pivot calculation, affecting how quickly the channel adapts to new pivots.
Average H/L Length (`avg_length`): Controls the smoothing of the high and low prices used in the channel calculation. A longer average length can lead to smoother, more gradual channel slopes.
Enable Hammer (`enable_hammer`): When enabled, the indicator will highlight Hammer candlestick patterns, which are often considered bullish reversal indicators.
Enable Inverted Hammer (`enable_ihammer`): This toggles the display of Inverted Hammer patterns, typically viewed as potential bullish reversal signals.
Enable Bullish Engulfing (`enable_bullish_engulfing`): Enables the identification of Bullish Engulfing patterns, another type of bullish reversal indicator.
Enable Bearish Engulfing (`enable_bearish_engulfing`): When activated, this highlights Bearish Engulfing patterns, which are often interpreted as bearish reversal signals.
Extend Channel (`extend`): This option, when enabled, extends the drawn channels forward until they are either broken or a new channel is formed.
Show Break Label (`show_break_label`): Toggles the display of labels indicating where the channel has been broken, providing visual cues for potential trade entries or exits.
Channel History Length (`history_length`): Determines how many historical channels are displayed on the chart. This can be useful for analyzing past performance and patterns.
Channel Colors (`top_color`, `bottom_color`, `center_color`): These settings allow customization of the channel's appearance by setting the colors of the top, bottom, and center lines.
Line Transparency (`line_trans`): Adjusts the transparency of the channel lines, helping to balance visibility with chart readability.
Center Line Transparency (`center_trans`): Specifically sets the transparency level of the center line of the channel.
Channel Fill Transparency (`fill_trans`): Modifies the transparency of the filled areas between the channel lines, which can enhance chart clarity and focus on the price action.
Break Colors (`break_up_color`, `break_down_color`): Sets the colors for labels that appear when the channel is broken, either upwards or downwards.
Break Label Text Color (`text_color`): Determines the color of the text in the break labels, enhancing readability based on the chart's background and color scheme.
Candle Pattern Colors (`h_color`, `ih_color`, `bullish_engulfing_color`, `bearish_engulfing_color`): These inputs allow for the customization of the colors used to highlight various candle patterns on the chart.
Candle Pattern Text Color (`candle_text_color`): Sets the color of the text for labels associated with candle pattern indicators.
Alerts (`new_channel_alert`, `break_alert`, `hammer_alert`, `ihammer_alert`, `bullish_engulfing_alert`, `bearish_engulfing_alert`): These toggles enable or disable alerts for different events, such as the formation of new channels, channel breaks, or the appearance of specific candle patterns. This feature is crucial for traders who rely on timely notifications for potential trading opportunities.
We have provided a few presets to allow you to get a feeling for how the indicator works with different settings easily. Here is a description of the settings used in each preset:
Stocks Preset:
Style: "Wick"
Break Style: False (High/Low)
Instant Mode: True
ATR Length: 10
Size (ATR Multiplier): 4
Pivot Length: 10
Pivot Look Forward: 15
Average H/L Length: 18
Forex Preset:
Style: "Wick"
Break Style: False (High/Low)
Instant Mode: True
ATR Length: 100
Size (ATR Multiplier): 5
Pivot Length: 10
Pivot Look Forward: 15
Average H/L Length: 18
Crypto Preset:
Style: "Wick"
Break Style: False (High/Low)
Instant Mode: True
ATR Length: 10
Size (ATR Multiplier): 4
Pivot Length: 10
Pivot Look Forward: 15
Average H/L Length: 18
This script first starts by defining and collecting the relevant data for the main body of the code with data(). This generates the pivot data, the levels, the ranges, the averages, the deltas, and finally the candle sticks. Once there is a higher low, or lower high detected via the pivots and the current price it triggers the formation of the new channel. It takes the delta between the last pivot and the current average price and projects the trend channel using this delta. If the price exceeds the extremities of the channel it will classify this as a break from the estimated structure and begin looking for a new channel. The idea is that when trending, the price will oscillate between extremities as defined by a range and direction. If the price is inside of one of these extremities the script will look for candle stick patterns. This is how the script operates.
On a more technical level, this script is meant to showcase Pine Script's custom types and methods. We have made use of a properties pattern allows functions to use a minimal number of arguments. This allows you to add new inputs without modifying a string of functions. The use of methods and data structures allows the main body of the code to be easy to understand and for the script as a whole to be easily modified. We have made sure that the script is modular so that users can incorporate this into their own custom scripts. It should be easy to expand on this script as the main logic is fairly compact and open for easy modification. All features are packed into their own function for easy use elsewhere. This is particularly evident in the candle stick section. I have simplified the process of creating candle stick patterns by creating a type. All users have to do is make methods for this type.
candle()=>
polarity = open < close
body_top = math.max(open, close)
body_bottom = math.min(open, close)
body_range = body_top - body_bottom
top_wick = high - body_top
bottom_wick = body_bottom - low
average_body = ta.ema(body_range, 14)
average_top_wick = ta.ema(top_wick, 14)
average_bottom_wick = ta.ema(bottom_wick, 14)
has_body = body_range != 0
has_top_wick = top_wick != 0
has_bottom_wick = bottom_wick != 0
above_average_body = body_range > average_body
above_average_top_wick = top_wick > average_top_wick
above_average_bottom_wick = bottom_wick > average_bottom_wick
candle_data.new(
polarity
, body_top
, body_bottom
, body_range
, top_wick
, bottom_wick
, average_body
, average_top_wick
, average_bottom_wick
, has_body
, has_top_wick
, has_bottom_wick
, above_average_body
, above_average_top_wick
, above_average_bottom_wick
)
In conclusion, this script offers a blend of rapid trend channel formation and candlestick pattern recognition, making it a unique tool for traders looking for a more proactive approach to trend analysis.
Opening Range Gaps [TFO]This indicator displays Opening Range Gaps with an adjustable time window. Its intention is to capture the discrepancy between the close price of previous and new Real Trading Hours (RTH) sessions, i.e. yesterday's close compared to today's open. A gap will be drawn from this area with a solid line denoting its midpoint, and dashed lines denoting the upper and lower quartiles of its range. Its color is determined by whether the new session open price is above or below the previous session close.
The Gap Session parameter allows users to define the specific time window for which to capture the "gap" in price. Using U.S. index futures as an example, we can use 16:00 - 09:30 (EST) to capture the discrepancy between the previous day's close price and the current day's open price. However, this parameter is left as adjustable for users that may want to observe different markets or simply experiment with different time windows.
Show Session Delineations will draw vertical timestamps denoting the start and end times of the provided Gap Session. Track Start Price serves as a visual aid to track the initial price of the Gap Session until its end price is validated, for easy visual verification of a gap's upper and lower bounds. With both options turned off, the indicator will only display the gap boxes and lines, as shown here:
Extend Boxes will draw all gaps with an indefinite extension to the right. This can get messy with a large number of boxes, which is why we have a Keep Last parameter to limit how many sessions' drawings should be stored. Any drawings that were made beyond this number of sessions in the past will automatically be deleted.
The Timeframe Limit will dictate that the indicator as a whole will only draw objects on timeframes less than or equal to this timeframe, determined by the user. In some cases this may help users avoid resolution errors which may arise from using timeframes that are too large for a given session. For example, if a user wanted to track a Gap Session of 16:15-09:30, the Timeframe Limit should be set to 15 minutes because the close price at 16:15 cannot be observed on a 30 minute chart (or greater).
Strong Pullback Indicator [Rami_LB]Strong Pullback Indicator
Description:
The Strong Pullback Indicator is designed to identify potential pullbacks or even trend reversals by utilizing a specific candlestick pattern in conjunction with the Relative Strength Index (RSI). It is advised to employ this indicator in chart intervals of 15 minutes or higher, as intervals below 15 minutes may generate excessive false signals.
Working Mechanism:
Upon detecting the designated candlestick pattern, the indicator examines whether any of the last five candles exhibit RSI values below 30 or above 70 across at least four distinct time intervals, depending on whether the pattern is bullish or bearish. The RSI calculations incorporate eight different intervals: 1 minute (1m), 5 minutes (5m), 15 minutes (15m), 30 minutes (30m), 1 hour (1h), 2 hours (2h), 4 hours (4h), and 1 day (1d). An arrow is rendered above or below the current candle only when these conditions are met.
Users have the option to adjust the number of overbought or oversold intervals, as well as the general settings for the RSI.
SL/TP Lines:
The indicator can also serve as a trade signal to initiate trades in the opposite direction. To evaluate the potential success of a trade in a backtesting scenario, SL (Stop Loss) and TP (Take Profit) lines can be displayed on the chart. The SL is calculated by taking the distance from the close of the current candle to the high/low of the previous candle and multiplying it by 2.
In the settings, you can alter the Risk Reward Ratio (RRR) of the trade. Given the pullback nature of this indicator, a RRR of 1:1 is deemed logical, thus set as the default value.
Bullish vs. Bearish Candle Counter:
An additional feature of this indicator is its ability to analyze the last 100 candles to ascertain the ratio of bullish to bearish candles. When a 60% threshold is reached, the chart background color alters accordingly. This feature was conceived after a thorough analysis of over 50,000 candles of a currency pair revealed nearly identical counts of bullish and bearish candles, suggesting a market tendency to maintain this balance.
Within the settings, you have the flexibility to modify the number of candles to be analyzed and the percentage threshold for each candle type.
Should you have any ideas on how to enhance the accuracy of this indicator, or suggestions for other indicators that could improve the signals, feel free to leave a comment.
RSI + Fibonacci HH LL Support Resistance I have integrated my past scripts and brushed them up further.
This tool allows for support/resistance, stop loss, take profit, and trend analysis using RSI and Fibonacci ratios.
For example, the Fibonacci ratio is used as follows
l1 = m - dist * 0.618
l2 = m - dist * 1.618
l3 = m - dist * 2.618
l4 = m - dist * 4.235
l5 = m - dist * 6.857
l6 = m - dist * 11.089
When the Fibonacci ratio reaches 2.618 or higher and the RSI smoothed by the 5-day EMA is oversold/overbought, the bar color is changed by a gradation.
We have tried to make the design as beautiful and good-looking as possible. You can also hide the lines to suit your own preference.
Example usages are here:
BTCUSDT 1Hour Chart
Using Fibonacci numbers
BTCUSDT 15min Chart, for Scalping
Here, to set the highest and lowest prices one hour ago, "4" is substituted as the calculation: 15 minutes x 4 = 60
BTCUSDT 15min Chart, for Scalping
To set the highest and lowest prices 4 hours ago , "4" is substituted as the calculation: 15 minutes x 16 = 240
BTCUSDT 15min Chart, for Scalping
To draw yesterday's high and low as support/resistance lines, I substituted the number "96" as 1440/15=96.
BTCUSDT 1min Chart, for Scalping
Substituted "60" to trail the highest and lowest prices over a 60-minute period on a 1-minute chart, and removed lines to beautify
BTCUSDT 1day Chart, for Long-Term Investers
This is an example of using "90" because it is a 1-day chart and assumes that 3 months = 90 days in order to trail the highest and lowest prices over a 3-month period and no lines.
My past scripts are here:
RSI + FIB HH LL StopLoss Finder／Contrarian Trades
Fibonacci HH LL TRAMA Band
Incomplete Session Candle - Incomplete Timeframe Candle Marker The "Incomplete Session Candle - Incomplete Timeframe Candle Marker" is an advanced tool tailored for technical analysts who understand the importance of accurate timeframes in their charting. While the indicator is not limited to the Indian market, its genesis is rooted in the nuances of trading sessions like those in India, which span 375 minutes from 9:15 AM to 3:30 PM.
Key Features:
Detects if the current timeframe is intraday (minutes or hours).
Calculates the expected duration of the candle for the chosen timeframe.
Highlights candles that don't achieve their expected session duration by placing a cross shape above the bar.
Compatible across various intraday timeframes, aiding traders in spotting discrepancies promptly.
Why We Made This: Not Just for India:
While we looked at the Indian market, this indicator works everywhere. Regular timeframes like 30 minutes, 1 hour, and 2 hours often end with incomplete candles, especially at the end of the trading day. For example:
A 30-minute timeframe makes 13 candles, but the last one is only 15 minutes long.
A 1-hour timeframe shows 7 candles, but the last one is just the last 15 minutes.
By switching to different timeframes like 25 minutes, 75 minutes, and 125 minutes, you get more complete information for better trading decisions. Learn more about this in our article: "Power of 25, 75, and 125-Minute Timeframes in the Indian Market", recognized by Trading View's Editors' Pick.
Benefits:
The indicator extends its benefits even to users without access to certain timeframes. It accommodates traders using a 1-hour timeframe (pertaining to Indian traders). By employing this indicator, traders consistently remain mindful of incomplete candles within their chosen timeframe
For those who utilize concepts like RBR, RBD, DBR, and DBD, this indicator is paramount. An incomplete candle can skew analysis, leading to potential misinterpretations of base or leg candles.
Final thoughts:
In markets like the Indian stock market, adopting such a tool is not just beneficial, but necessary. Whether you have access to unconventional timeframes or are using traditional ones, recognizing and accounting for the limitations of incomplete candles is critical & it's important to know if your candles fit the timeframe properly. This indicator gives you a better view of the market, which helps you make smarter trades.
Lastly, Thank you for your support! Your likes & comments. If you want to give any feedback then you can give in comment section.
Let's conquer the markets together!
ICT Silver Bullet [LuxAlgo]The ICT Silver Bullet indicator is inspired from the lectures of "The Inner Circle Trader" (ICT) and highlights the Silver Bullet (SB) window which is a specific 1-hour interval where a Fair Value Gap (FVG) pattern can be formed.
When a FVG is formed during the Silver Bullet window, Support & Resistance lines will be drawn at the end of the SB session.
There are 3 different Silver Bullet windows (New York local time):
The London Open Silver Bullet (3 AM — 4 AM ~ 03:00 — 04:00)
The AM Session Silver Bullet (10 AM — 11 AM ~ 10:00 — 11:00)
The PM Session Silver Bullet (2 PM — 3 PM ~ 14:00 — 15:00)
🔶 USAGE
The ICT Silver Bullet indicator aims to provide users a comprehensive display as similar as possible to how anyone would manually draw the concept on their charts.
It's important to use anything below the 15-minute timeframe to ensure proper setups can display. In this section, we are purely using the 3-minute timeframe.
In the image below, we can see a bullish setup whereas a FVG was successfully retested during the Silver Bullet session. This was then followed by a move upwards to liquidity as our target.
Alternatively, you can also see below a bearish setup utilizing the ICT Silver Bullet indicator outlined.
At this moment, the indicator has removed all other FVGs within the Silver Bullet session & has confirmed this FVG as the retested one.
There is also a support level marked below to be used as a liquidity target as per the ICT Silver Bullet concept suggests.
In the below chart we can see 4 separate consecutive examples of bullish & bearish setups on the 3-minute chart.
🔶 CONCEPTS
This technique can visualize potential support/resistance lines, which can be used as targets.
The script contains 2 main components:
• forming of a Fair Value Gap (FVG)
• drawing support/resistance (S/R) lines
🔹 Forming of FVG
1 basic principle: when a FVG at the end of the SB session is not retraced, it will be made invisible.
Dependable on the settings, different FVG's will be shown.
• 'All FVG': all FVG's are shown, regardless the trend
• 'Only FVG's in the same direction of trend': Only FVG's are shown that are similar to the trend at that moment (trend can be visualized by enabling ' Show ' -> ' Trend ')
-> only bearish FVG when the trend is bearish vs. bullish FVG when trend is bullish
• 'strict': Besides being similar to the trend, only FVG's are shown when the closing price at the end of the SB session is:
– below the top of the FVG box (bearish FVG)
– above bottom of the FVG box (bullish FVG)
• 'super-strict': Besides being similar to the trend, only FVG's are shown when the FVG box is NOT broken
in the opposite direction AND the closing price at the end of the SB session is:
– below bottom of the FVG box (bearish FVG)
– above the top of the FVG box (bullish FVG)
' Super-Strict ' mode resembles ICT lectures the most.
🔹 Drawing support/resistance lines
When the SB session has ended, the script draws potential support/resistance lines, again, dependable on the settings.
• Previous session (any): S/R lines are fetched between current and previous session.
For example, when current session is ' AM SB Session (10 AM — 11 AM) ', then previous session is
' London Open SB (3 AM — 4 AM) ', S/R lines between these 2 sessions alone will be included.
• Previous session (similar): S/R lines are fetched between current and previous - similar - session.
For example, when current session is ' London Open SB (3 AM — 4 AM)' , only S/R lines between
current session and previous ' London Open SB (3 AM — 4 AM) ' session are included.
When a new session starts, S/R lines will be removed, except when enabling ' Keep lines (only in strict mode) '
This is not possible in ' All FVG ' or ' Only FVG's in the same direction of trend ' mode, since the chart would be cluttered.
Note that in ' All FVG ' or ' Only FVG's in the same direction of trend ' mode, both, Support/Resistance lines will be shown,
while in Strict/Super-Strict mode:
• only Support lines will be shown if a bearish FVG appears
• only Resistance lines if a bullish FVG is shown
The lines will still be drawn the the end of the SB session, when a valid FVG appears,
but the S/R lines will remain visible and keep being updated until price reaches that line.
This publication contains a "Minimum Trade Framework (mTFW)", which represents the best-case expected price delivery, this is not your actual trade entry - exit range.
• 40 ticks for index futures or indices
• 15 pips for Forex pairs.
When on ' Strict/Super-Strict ' mode, only S/R lines will be shown which are:
• higher than the lowest FVG bottom + mTFW, in a bullish scenario
• lower than the highest FVG bottom - mTFW, in a bearish scenario
When on ' All FVG/Only FVG's in the same direction of trend ' mode, or on non-Forex/Futures/Indices symbols, S/R needs to be higher/lower than SB session high/low.
🔶 SETTINGS
(Check CONCEPTS for deeper insights and explanation)
🔹 Swing settings (left): Sets the length, which will set the lookback period/sensitivity of the Zigzag patterns (which directs the trend)
🔹 Silver Bullet Session; Show SB session: show lines and labels of SB session
Labels can be disabled separately in the ' Style ' section, color is set at the ' Inputs ' section.
🔹 FVG
– Mode
• All FVG
• Only FVG's in the same direction of trend
• Strict
• Super-Strict
– Colors
– Extend: extend till last bar of SB session
🔹 Targets – support/resistance lines
– Previous session (any): S/R lines fetched between current and previous SB session
– Previous session (similar): S/R lines fetched between current and previous similar SB session
– Colors
– Keep lines (only in strict mode)
🔹 Show
– MSS ~ Session: Show Market Structure Shift , only when this happens during a SB session
– Trend: Show trend (Zigzag, colored ~ trend)
