Multi-Average Trend Indicator (MATI)[FibonacciFlux]Multi-Average Trend Indicator (MATI)
Overview
The Multi-Average Trend Indicator (MATI) is a versatile technical analysis tool designed for traders who aim to enhance their market insights and streamline their decision-making processes across various timeframes. By integrating multiple advanced moving averages, this indicator serves as a robust framework for identifying market trends, making it suitable for different trading styles—from scalping to swing trading.
MATI 4-hourly support/resistance
MATI 1-hourly support/resistance
MATI 15 minutes support/resistance
MATI 1 minutes support/resistance
Key Features
1. Diverse Moving Averages
- COVWMA (Coefficient of Variation Weighted Moving Average) :
- Provides insights into price volatility, helping traders identify the strength of trends in fast-moving markets, particularly useful for 1-minute scalping .
- DEMA (Double Exponential Moving Average) :
- Minimizes lag and quickly responds to price changes, making it ideal for capturing short-term price movements during volatile trading sessions .
- EMA (Exponential Moving Average) :
- Focuses on recent price action to indicate the prevailing trend, vital for day traders looking to enter positions based on current momentum.
- KAMA (Kaufman's Adaptive Moving Average) :
- Adapts to market volatility, smoothing out price action and reducing false signals, which is crucial for 4-hour day trading strategies.
- SMA (Simple Moving Average) :
- Provides a foundational view of the market trend, useful for swing traders looking at overall price direction over longer periods.
- VIDYA (Variable Index Dynamic Average) :
- Adjusts based on market conditions, offering a dynamic perspective that can help traders capture emerging trends.
2. Combined Moving Average
- The MATI's combined moving average synthesizes all individual moving averages into a single line, providing a clear and concise summary of market direction. This feature is especially useful for identifying trend continuations or reversals across various timeframes .
3. Dynamic Color Coding
- Each moving average is visually represented with color coding:
- Green indicates bullish conditions, while Red suggests bearish trends.
- This visual feedback allows traders to quickly assess market sentiment, facilitating faster decision-making.
4. Signal Generation and Alerts
- The indicator generates buy signals when the combined moving average crosses above its previous value, indicating a potential upward trend—ideal for quick entries in scalping.
- Conversely, sell signals are triggered when the combined moving average crosses below its previous value, useful for exiting positions or entering short trades.
Insights and Applications
1. Scalping on 1-Minute Charts
- The MATI excels in fast-paced environments, allowing scalpers to identify quick entry and exit points based on short-term trends. With dynamic signals and alerts, traders can react swiftly to price movements, maximizing profit potential in brief price fluctuations.
2. Day Trading on 4-Hour Charts
- For day traders, the MATI provides essential insights into intraday trends. By analyzing the combined moving average and its relation to individual moving averages, traders can make informed decisions on when to enter or exit positions, capitalizing on daily price swings.
3. Swing Trading on Daily Charts
- The MATI also serves as a valuable tool for swing traders. By evaluating longer-term trends through the combined moving average, traders can identify potential swing points and adjust their strategies accordingly. The flexibility of adjusting the lengths of the moving averages allows for tailored approaches based on market volatility.
Benefits
1. Clarity and Insight
- The combination of diverse moving averages offers a clear visual representation of market trends, aiding traders in making informed decisions across multiple timeframes.
2. Flexibility and Customization
- With adjustable parameters, traders can adapt the MATI to their specific strategies, making it suitable for various market conditions and trading styles.
3. Real-Time Alerts and Efficiency
- Built-in alerts minimize response times, allowing traders to capitalize on opportunities as they arise, regardless of their trading style.
Conclusion
The Multi-Average Trend Indicator (MATI) is an essential tool for traders seeking to enhance their technical analysis capabilities. By seamlessly integrating multiple moving averages with dynamic color coding and real-time alerts, this indicator provides a comprehensive approach to understanding market trends. Its versatility makes it an invaluable asset for scalpers, day traders, and swing traders alike.
Important Note
As with any trading tool, thorough analysis and risk management are crucial when using this indicator. Past performance does not guarantee future results, and traders should always be prepared for market fluctuations.
Tìm kiếm tập lệnh với "GOLD"
Advanced Economic Indicator by USCG_VetAdvanced Economic Indicator by USCG_Vet
tldr:
This comprehensive TradingView indicator combines multiple economic and financial metrics into a single, customizable composite index. By integrating key indicators such as the yield spread, commodity ratios, stock indices, and the Federal Reserve's QE/QT activities, it provides a holistic view of the economic landscape. Users can adjust the components and their weights to tailor the indicator to their analysis, aiding in forecasting economic conditions and market trends.
Detailed Description
Overview
The Advanced Economic Indicator is designed to provide traders and investors with a powerful tool to assess the overall economic environment. By aggregating a diverse set of economic indicators and financial market data into a single composite index, it helps identify potential turning points in the economy and financial markets.
Key Features:
Comprehensive Coverage: Includes 14 critical economic and financial indicators.
Customizable Components: Users can select which indicators to include.
Adjustable Weights: Assign weights to each component based on perceived significance.
Visual Signals: Clear plotting with threshold lines and background highlights.
Alerts: Set up alerts for when the composite index crosses user-defined thresholds.
Included Indicators
Yield Spread (10-Year Treasury Yield minus 3-Month Treasury Yield)
Copper/Gold Ratio
High Yield Spread (HYG/IEF Ratio)
Stock Market Performance (S&P 500 Index - SPX)
Bitcoin Performance (BLX)
Crude Oil Prices (CL1!)
Volatility Index (VIX)
U.S. Dollar Index (DXY)
Inflation Expectations (TIP ETF)
Consumer Confidence (XLY ETF)
Housing Market Index (XHB)
Manufacturing PMI (XLI ETF)
Unemployment Rate (Inverse SPY as Proxy)
Federal Reserve QE/QT Activities (Fed Balance Sheet - WALCL)
How to Use the Indicator
Configuring the Indicator:
Open Settings: Click on the gear icon (⚙️) next to the indicator's name.
Inputs Tab: You'll find a list of all components with checkboxes and weight inputs.
Including/Excluding Components
Checkboxes: Check or uncheck the box next to each component to include or exclude it from the composite index.
Default State: By default, all components are included.
Adjusting Component Weights:
Weight Inputs: Next to each component's checkbox is a weight input field.
Default Weights: Pre-assigned based on economic significance but fully adjustable.
Custom Weights: Enter your desired weight for each component to reflect your analysis.
Threshold Settings:
Bearish Threshold: Default is -1.0. Adjust to set the level below which the indicator signals potential economic downturns.
Bullish Threshold: Default is 1.0. Adjust to set the level above which the indicator signals potential economic upswings.
Setting the Timeframe:
Weekly Timeframe Recommended: Due to the inclusion of the Fed's balance sheet data (updated weekly), it's best to use this indicator on a weekly chart.
Changing Timeframe: Select 1W (weekly) from the timeframe options at the top of the chart.
Interpreting the Indicator:
Composite Index Line
Plot: The blue line represents the composite economic indicator.
Movement: Observe how the line moves relative to the threshold lines.
Threshold Lines
Zero Line (Gray Dotted): Indicates the neutral point.
Bearish Threshold (Red Dashed): Crossing below suggests potential economic weakness.
Bullish Threshold (Green Dashed): Crossing above suggests potential economic strength.
Background Highlights
Red Background: When the composite index is below the bearish threshold.
Green Background: When the composite index is above the bullish threshold.
No Color: When the composite index is between the thresholds.
Understanding the Components
1. Yield Spread
Description: The difference between the 10-year and 3-month U.S. Treasury yields.
Economic Significance: An inverted yield curve (negative spread) has historically preceded recessions.
2. Copper/Gold Ratio
Description: The price ratio of copper to gold.
Economic Significance: Copper is tied to industrial demand; gold is a safe-haven asset. The ratio indicates risk sentiment.
3. High Yield Spread (HYG/IEF Ratio)
Description: Ratio of high-yield corporate bonds (HYG) to intermediate-term Treasury bonds (IEF).
Economic Significance: Reflects investor appetite for risk; widening spreads can signal credit stress.
4. Stock Market Performance (SPX)
Description: S&P 500 Index levels.
Economic Significance: Broad measure of U.S. equity market performance.
5. Bitcoin Performance (BLX)
Description: Bitcoin Liquid Index price.
Economic Significance: Represents risk appetite in speculative assets.
6. Crude Oil Prices (CL1!)
Description: Front-month crude oil futures price.
Economic Significance: Influences inflation and consumer spending.
7. Volatility Index (VIX)
Description: Market's expectation of volatility (fear gauge).
Economic Significance: High VIX indicates market uncertainty; inverted in the indicator to align directionally.
8. U.S. Dollar Index (DXY)
Description: Value of the U.S. dollar relative to a basket of foreign currencies.
Economic Significance: Affects international trade and commodity prices; inverted in the indicator.
9. Inflation Expectations (TIP ETF)
Description: iShares TIPS Bond ETF prices.
Economic Significance: Reflects market expectations of inflation.
10. Consumer Confidence (XLY ETF)
Description: Consumer Discretionary Select Sector SPDR Fund prices.
Economic Significance: Proxy for consumer confidence and spending.
11. Housing Market Index (XHB)
Description: SPDR S&P Homebuilders ETF prices.
Economic Significance: Indicator of the housing market's health.
12. Manufacturing PMI (XLI ETF)
Description: Industrial Select Sector SPDR Fund prices.
Economic Significance: Proxy for manufacturing activity.
13. Unemployment Rate (Inverse SPY as Proxy)
Description: Inverse of the SPY ETF price.
Economic Significance: Represents unemployment trends; higher inverse SPY suggests higher unemployment.
14. Federal Reserve QE/QT Activities (Fed Balance Sheet - WALCL)
Description: Total assets held by the Federal Reserve.
Economic Significance: Indicates liquidity injections (QE) or withdrawals (QT); impacts interest rates and asset prices.
Customization and Advanced Usage
Adjusting Weights:
Purpose: Emphasize components you believe are more predictive or relevant.
Method: Increase or decrease the weight value next to each component.
Example: If you think the yield spread is particularly important, you might assign it a higher weight.
Disclaimer
This indicator is for educational and informational purposes only. It is not financial advice. Trading and investing involve risks, including possible loss of principal. Always conduct your own analysis and consult with a professional financial advisor before making investment decisions.
Fibonacci Cloud MTF [TrendX_]The Fibonacci Cloud MTF Indicator is an innovative trading tool crafted to assist traders in dynamically identifying key Fibonacci retracement levels. Unlike traditional methods that depend on static pivot points, this indicator effectively plots the Fibonacci golden zone - ranging from 0.382 to 0.618 - using the most recent highs and lows. This dynamic approach provides a more nuanced and responsive analysis of price movements, allowing traders to observe real-time reactions to significant Fibonacci levels. Furthermore, the indicator functions as a trend-following mechanism, signaling potential uptrends when the price crosses above the 0.618 fibonacci retracement level and indicating downtrends when it dips below.
💎 KEY FEATURES
Dynamic Fibonacci Levels: The indicator calculates Fibonacci retracement levels based on the latest highs and lows, providing a more relevant framework for current market conditions.
Golden Zone Focus: It emphasizes the Fibonacci golden zone (0.382 - 0.618), which is widely regarded as a critical area for potential reversals or continuations.
Multi-timeframe Analysis: The ability to view Fibonacci levels across multiple timeframes allows traders to identify trends and potential entry points more effectively.
Trend-Following Signals: Clear trend directions relative to the 0.618 level.
⚙️ USAGES
Identifying Key Retracement Levels: Traders can use the plotted Fibonacci levels to determine potential pullback or throwback at the key Fibonacci areas.
Trend Confirmation: By observing price interactions with the 0.618 level, traders can confirm ongoing trends and make more informed decisions about entering or exiting positions.
Multi-timeframe Strategies: The indicator allows traders to align strategies across different timeframes, improving overall trading effectiveness.
🔎 BREAKDOWN
Dynamic Fibonacci Levels: By calculating Fibonacci retracement levels from the latest highs and lows, traders receive a more accurate representation of current market sentiment. This dynamic approach ensures that the levels adapt to changing market conditions, making them more relevant for decision-making.
Golden Zone Focus: This highlights the Fibonacci golden zone, particularly the range between 0.382 and 0.618. This zone is widely regarded as a pivotal area for potential price reversals or continuations, serving as key support and resistance levels. Prices often react strongly at these points, making them crucial for pinpointing potential entry and exit opportunities in your trading strategy.
Multi-timeframe Analysis: Incorporating multi-timeframe analysis allows traders to observe how Fibonacci levels behave across different timeframes. This feature helps traders identify broader trends while also pinpointing short-term opportunities.
Trend-Following Strategies: Uptrend trigger - When the price crosses above the 0.618 level, it triggers uptrend, conversely, when the price crosses below the 0.618 level, it triggers a downtrend.
DISCLAIMER
This indicator is not financial advice, it can only help traders make better decisions. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur. Therefore, one should always exercise caution and judgment when making decisions based on past performance.
RSI-based MACDThe RSI is one of the most popular indicators available. This indicator, which represents the strength of market momentum based on the gains and losses over the past 14 candlesticks, is rational and is mainly used as an oscillator to determine overbought or oversold conditions. However, because the RSI is an older indicator, its very simple design—displaying only a single line on the graph—may feel somewhat lacking in functionality to modern traders. The main issue is that there is no objective measure to determine whether the RSI is currently rising or falling.
That’s when I came up with the idea of calculating the MACD based on the smoothed values of the RSI. As is well known, the MACD is an indicator that represents the distance between moving averages, designed to show when the moving averages cross as the value falls below zero. By observing the golden crosses and death crosses of the MACD and signal line, one can anticipate the golden and death crosses of the moving averages. Applying the same logic, I thought that calculating the MACD based on RSI values would allow us to predict the rise and fall of the RSI by observing these golden and death crosses.
Currently, the RSI is often used as a contrarian indicator to determine overbought and oversold conditions, but with this approach, I believe the RSI can instead function extremely well as a trend-following indicator. Whenever an uptrend occurs, the RSI inevitably rises, and when a downtrend occurs, the RSI inevitably falls. Therefore, by predicting the rise and fall of the RSI, it becomes possible to forecast what kind of trend is likely to develop.
In this indicator, the MACD calculated from the RSI is displayed, with the original RSI line plotted above it. Since the scales of the RSI and MACD are different, I originally wanted to provide a separate scale for the RSI on the left side. However, due to TradingView’s limitations, it seems quite difficult to display more than one scale in a single panel, so I had to give up on that. Instead, I ask that you mentally multiply the RSI values displayed on the right by 10—for example, 2.11 indicates 21.1%.
Additionally, as a bonus, I’ve included a feature that detects divergences. With these features, I believe this has become the most useful indicator when compared to existing RSI-based indicators. I hope you find it helpful in your trading.
Dysmen signalsDysmen Signals Indicator
The "Dysmen Signals" indicator is designed to provide clear buy and sell signals based on the crossover of various Exponential Moving Averages (EMAs). This indicator employs a combination of short-term and long-term EMA crossovers to identify potential trading opportunities, while also highlighting significant market movements through specific signals such as the Golden Cross and Death Cross.
Indicator Components
1. Exponential Moving Averages (EMAs)
- EMA 14: A short-term EMA calculated over 14 periods.
- EMA 20: Another short-term EMA calculated over 20 periods.
- EMA 50: A mid-term EMA used as a trend filter.
- EMA 200: A long-term EMA representing the overall trend.
2. Buy and Sell Signals
- Buy Signal: This is triggered when the EMA 14 crosses above the EMA 20 and the closing price is above the EMA 50. This suggests a bullish trend in the market.
- Sell Signal: This is triggered when the EMA 14 crosses below the EMA 20 and the closing price is below the EMA 50. This indicates a bearish trend in the market.
3. Golden Cross and Death Cross
- Golden Cross (GC): Occurs when the EMA 50 crosses above the EMA 200. This is a strong bullish signal indicating a potential long-term upward trend.
- Death Cross (DC): Occurs when the EMA 50 crosses below the EMA 200. This is a strong bearish signal suggesting a potential long-term downward trend.
4. Signal Visualization
- Buy and Sell signals are marked on the chart with green and red triangles respectively. These signals help traders identify potential entry and exit points.
- Golden Cross and Death Cross signals are indicated with yellow and purple diamonds respectively, providing insight into major market trend shifts.
5. Candle Coloring
- Candles are colored green if a buy signal is active and red if a sell signal is active. This visual aid helps in quickly identifying the prevailing market sentiment.
6. EMA 200 Plotting
- The EMA 200 is plotted as a white, semi-thick line on the chart. This line serves as a reference for the overall long-term trend.
Detailed Code Explanation
- EMA Calculations: The script calculates the EMA for 14, 20, 50, and 200 periods using the ta.ema function.
- Crossover Conditions: It uses the ta.crossover and ta.crossunder functions to detect when the EMAs cross each other, triggering buy and sell signals.
- Plotting Signals: The plotshape function is utilized to display BUY and SELL signals as well as Golden Cross and Death Cross signals on the chart.
- Candle Coloring Logic: A variable direction is used to store the current market direction based on the latest signal, which then determines the candle colors using the barcolor function.
- EMA 200 Display: The plot function is used to draw the EMA 200 line on the chart with the specified color and thickness.
By employing this indicator, traders can gain valuable insights into potential market trends and make more informed trading decisions based on the crossover of key EMAs.
Support and resistance levels (Day, Week, Month) + EMAs + SMAs(ENG): This Pine 5 script provides various tools for configuring and displaying different support and resistance levels, as well as moving averages (EMA and SMA) on charts. Using these tools is an essential strategy for determining entry and exit points in trades.
Support and Resistance Levels
Daily, weekly, and monthly support and resistance levels play a key role in analyzing price movements:
Daily levels: Represent prices where a cryptocurrency has tended to bounce within the current trading day.
Weekly levels: Reflect strong prices that hold throughout the week.
Monthly levels: Indicate the most significant levels that can influence price movement over the month.
When trading cryptocurrencies, traders use these levels to make decisions about entering or exiting positions. For example, if a cryptocurrency approaches a weekly resistance level and fails to break through it, this may signal a sell opportunity. If the price reaches a daily support level and starts to bounce up, it may indicate a potential long position.
Market context and trading volumes are also important when analyzing support and resistance levels. High volume near a level can confirm its significance and the likelihood of subsequent price movement. Traders often combine analysis across different time frames to get a more complete picture and improve the accuracy of their trading decisions.
Moving Averages
Moving averages (EMA and SMA) are another important tool in the technical analysis of cryptocurrencies:
EMA (Exponential Moving Average): Gives more weight to recent prices, allowing it to respond more quickly to price changes.
SMA (Simple Moving Average): Equally considers all prices over a given period.
Key types of moving averages used by traders:
EMA 50 and 200: Often used to identify trends. The crossing of the 50-day EMA with the 200-day EMA is called a "golden cross" (buy signal) or a "death cross" (sell signal).
SMA 50, 100, 150, and 200: These periods are often used to determine long-term trends and support/resistance levels. Similar to the EMA, the crossings of these averages can signal potential trend changes.
Settings Groups:
EMA Golden Cross & Death Cross: A setting to display the "golden cross" and "death cross" for the EMA.
EMA 50 & 200: A setting to display the 50-day and 200-day EMA.
Support and Resistance Levels: Includes settings for daily, weekly, and monthly levels.
SMA 50, 100, 150, 200: A setting to display the 50, 100, 150, and 200-day SMA.
SMA Golden Cross & Death Cross: A setting to display the "golden cross" and "death cross" for the SMA.
Components:
Enable/disable the display of support and resistance levels.
Show level labels.
Parameters for adjusting offset, display of EMA and SMA, and their time intervals.
Parameters for configuring EMA and SMA Golden Cross & Death Cross.
EMA Parameters:
Enable/disable the display of 50 and 200-day EMA.
Color and style settings for EMA.
Options to use bar gaps and the "LookAhead" function.
SMA Parameters:
Enable/disable the display of 50, 100, 150, and 200-day SMA.
Color and style settings for SMA.
Options to use bar gaps and the "LookAhead" function.
Effective use of support and resistance levels, as well as moving averages, requires an understanding of technical analysis, discipline, and the ability to adapt the strategy according to changing market conditions.
(RUS) Данный Pine 5 скрипт предоставляет разнообразные инструменты для настройки и отображения различных уровней поддержки и сопротивления, а также скользящих средних (EMA и SMA) на графиках. Использование этих инструментов является важной стратегией для определения точек входа и выхода из сделок.
Уровни поддержки и сопротивления
Дневные, недельные и месячные уровни поддержки и сопротивления играют ключевую роль в анализе движения цен:
Дневные уровни: Представляют собой цены, на которых криптовалюта имела тенденцию отскакивать в течение текущего торгового дня.
Недельные уровни: Отражают сильные цены, которые сохраняются в течение недели.
Месячные уровни: Указывают на наиболее значимые уровни, которые могут влиять на движение цены в течение месяца.
При торговле криптовалютами трейдеры используют эти уровни для принятия решений о входе в позицию или закрытии сделки. Например, если криптовалюта приближается к недельному уровню сопротивления и не удается его преодолеть, это может стать сигналом для продажи. Если цена достигает дневного уровня поддержки и начинает отскакивать вверх, это может указывать на возможность открытия длинной позиции.
Контекст рынка и объемы торговли также важны при анализе уровней поддержки и сопротивления. Высокий объем при приближении к уровню может подтвердить его значимость и вероятность последующего движения цены. Трейдеры часто комбинируют анализ различных временных рамок для получения более полной картины и улучшения точности своих торговых решений.
Скользящие средние
Скользящие средние (EMA и SMA) являются еще одним важным инструментом в техническом анализе криптовалют:
EMA (Exponential Moving Average): Экспоненциальная скользящая средняя, которая придает большее значение последним ценам. Это позволяет более быстро реагировать на изменения в ценах.
SMA (Simple Moving Average): Простая скользящая средняя, которая равномерно учитывает все цены в заданном периоде.
Основные виды скользящих средних, которые используются трейдерами:
EMA 50 и 200: Часто используются для выявления трендов. Пересечение 50-дневной EMA с 200-дневной EMA называется "золотым крестом" (сигнал на покупку) или "крестом смерти" (сигнал на продажу).
SMA 50, 100, 150 и 200: Эти периоды часто используются для определения долгосрочных трендов и уровней поддержки/сопротивления. Аналогично EMA, пересечения этих средних могут сигнализировать о возможных изменениях тренда.
Группы настроек:
EMA Golden Cross & Death Cross: Настройка для отображения "золотого креста" и "креста смерти" для EMA.
EMA 50 & 200: Настройка для отображения 50-дневной и 200-дневной EMA.
Уровни поддержки и сопротивления: Включает настройки для дневных, недельных и месячных уровней.
SMA 50, 100, 150, 200: Настройка для отображения 50, 100, 150 и 200-дневных SMA.
SMA Golden Cross & Death Cross: Настройка для отображения "золотого креста" и "креста смерти" для SMA.
Компоненты:
Включение/отключение отображения уровней поддержки и сопротивления.
Показ ярлыков уровней.
Параметры для настройки смещения, отображения EMA и SMA, а также их временных интервалов.
Параметры для настройки EMA и SMA Golden Cross & Death Cross.
Параметры EMA:
Включение/отключение отображения 50 и 200-дневных EMA.
Настройки цвета и стиля для EMA.
Опции для использования разрыва баров и функции "LookAhead".
Параметры SMA:
Включение/отключение отображения 50, 100, 150 и 200-дневных SMA.
Настройки цвета и стиля для SMA.
Опции для использования разрыва баров и функции "LookAhead".
Эффективное использование уровней поддержки и сопротивления, а также скользящих средних, требует понимания технического анализа, дисциплины и умения адаптировать стратегию в зависимости от изменяющихся условий рынка.
ABC PatternThe indicator, named "ABC Pattern," is designed to identify specific bullish and bearish patterns on a price chart. Here's a simple explanation of what it does:
What the Indicator Does:
1. Identifies Bullish Patterns:
- The indicator looks for a sequence of candles where certain conditions are met to form a bullish pattern.
- When it detects a bullish pattern, it colors the candle that occurred three periods ago in gold.
2. Identifies Bearish Patterns:
- Similarly, it looks for a sequence of candles where certain conditions are met to form a bearish pattern.
- When it detects a bearish pattern, it colors the candle that occurred three periods ago in pinkish.
3. Creates Alerts:
- Whenever a bullish or bearish pattern is identified, the indicator generates an alert.
- The alert message includes the type of pattern (bullish or bearish), the price level at the time of detection, and the date and time of the pattern formation.
Detailed Conditions:
- Bullish Pattern:
- The current candle closes higher than it opened.
- The previous candle also closes higher than it opened.
- Two candles ago, the candle closed lower than it opened.
- Three candles ago, the candle closed higher than it opened.
- The highest price of two candles ago is below the current close.
- The lowest price of three candles ago is above the close of two candles ago.
- The highest price of three candles ago is below the current close.
- Bearish Pattern:
- The current candle closes lower than it opened.
- The previous candle also closes lower than it opened.
- Two candles ago, the candle closed higher than it opened.
- Three candles ago, the candle closed lower than it opened.
- The lowest price of two candles ago is above the current close.
- The highest price of three candles ago is below the close of two candles ago.
- The lowest price of three candles ago is above the current close.
Visual Representation:
- Gold Color: Indicates a detected bullish pattern.
- Pinkish Color: Indicates a detected bearish pattern.
Alerts:
- Alert Message: "ABC Pattern has appeared!"
- Detailed Alerts: Include the type of pattern, price level, and timestamp for better analysis and decision-making.
This indicator helps traders visually and audibly detect potential bullish and bearish patterns on their charts, aiding in making more informed trading decisions.
EMA Cross Fibonacci Entry with RetracementThe EMA Cross Fibonacci Entry with Retracement is a trading strategy that combines two popular technical analysis tools: Exponential Moving Averages (EMAs) and Fibonacci retracement levels. Here's a brief overview of how this strategy typically works:
### Exponential Moving Averages (EMAs)
1. **EMAs Calculation**: EMAs give more weight to recent price data, making them more responsive to price changes. Commonly used periods for EMAs in this strategy are the 50-period and 200-period EMAs.
2. **EMA Cross**: The strategy looks for a "golden cross" (short-term EMA crosses above the long-term EMA) as a potential buy signal, and a "death cross" (short-term EMA crosses below the long-term EMA) as a potential sell signal.
### Fibonacci Retracement Levels
1. **Fibonacci Retracement**: This tool is used to identify potential support and resistance levels based on the Fibonacci sequence. The key retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.
2. **Drawing Retracement Levels**: Traders draw Fibonacci retracement levels from a significant peak to a significant trough (or vice versa) to identify potential retracement levels where the price might reverse.
### Combining EMA Cross with Fibonacci Retracement
1. **Identify EMA Cross**: First, traders look for an EMA cross. For example, a golden cross where a shorter EMA (e.g., 50 EMA) crosses above a longer EMA (e.g., 200 EMA) suggests a bullish trend.
2. **Wait for Retracement**: After identifying a cross, traders wait for the price to retrace to a Fibonacci level. The key levels to watch are 38.2%, 50%, and 61.8%.
3. **Entry Point**: The entry point is when the price retraces to a Fibonacci level and shows signs of reversal (e.g., bullish candlestick patterns, support at Fibonacci levels). This is typically when traders enter a long position.
4. **Confirmation with EMA**: Ensure that the EMAs support the trend. For a buy entry, the short-term EMA should remain above the long-term EMA.
### Example of a Bullish Entry
1. **Golden Cross**: 50 EMA crosses above 200 EMA.
2. **Retracement**: Price retraces to the 38.2% Fibonacci level.
3. **Entry Signal**: At the 38.2% level, a bullish candlestick pattern (e.g., hammer) forms, indicating potential support.
4. **Entry Point**: Enter a long position at the close of the bullish candlestick.
### Risk Management
1. **Stop Loss**: Place a stop loss below the next Fibonacci retracement level or below the recent swing low to limit potential losses.
2. **Take Profit**: Set a take profit target based on a risk-reward ratio, previous resistance levels, or further Fibonacci extensions.
### Conclusion
The EMA Cross Fibonacci Entry with Retracement strategy is a systematic approach to identifying entry points in a trending market. By combining the responsiveness of EMAs with the predictive power of Fibonacci retracement levels, traders aim to enter trades at optimal points, increasing their chances of success while managing risk effectively.
Combined IndicatorSummary
This custom Pine Script combines three main indicators into one, each with its own functionalities and visual cues. It provides a comprehensive approach to trend analysis by integrating short-term, medium-term, and long-term indicators. Each part of the indicator can be toggled on or off independently to suit the trader’s needs.
Part 1: EMA 14 and EMA 200
Purpose: This part of the indicator is designed to identify short-term and long-term trends using Exponential Moving Averages (EMA). It helps traders spot potential entry and exit points based on the relationship between short-term and long-term moving averages.
Visuals:
• EMA 14: Plotted in blue (#2962ff)
• EMA 200: Plotted in red (#f23645)
Signals:
• Long Signal: Generated when EMA 14 crosses above EMA 200, indicating a potential upward trend.
• Short Signal: Generated when EMA 14 crosses below EMA 200, indicating a potential downward trend.
Usage: Toggle this part on or off using the checkbox input to focus on short-term vs. long-term trends.
Part 2: EMA 9 and SMA 20
Purpose: This part combines Exponential and Simple Moving Averages to provide a medium-term trend analysis. It helps smooth out price data and identify potential trend reversals and continuation patterns.
Visuals:
• EMA 9: Plotted in green
• SMA 20: Plotted in dark red
Usage: Toggle this part on or off using the checkbox input to focus on medium-term trends and price smoothing.
Part 3: Golden Cross and Death Cross
Purpose: This part identifies long-term bullish and bearish market conditions using the 50-day and 200-day Simple Moving Averages (SMA). It highlights major trend changes that can inform long-term investment decisions.
Visuals:
• 50-day SMA: Plotted in gold (#ffe600)
• 200-day SMA: Plotted in black
Signals:
• Golden Cross: Generated when the 50-day SMA crosses above the 200-day SMA, indicating a potential long-term upward trend.
• Death Cross: Generated when the 50-day SMA crosses below the 200-day SMA, indicating a potential long-term downward trend.
Usage: Toggle this part on or off using the checkbox input to focus on long-term trend changes.
How to Use
1. Enable/Disable Indicators: Use the checkboxes provided in the input settings to enable or disable each part of the indicator according to your analysis needs.
2. Interpret Signals: Look for crossover events to determine potential entry and exit points based on the relationship between the moving averages.
3. Visual Confirmation: Use the color-coded lines and shape markers on the chart to visually confirm signals and trends.
4. Customize Settings: Adjust the lengths of the EMAs and SMAs in the input settings to suit your trading strategy and the specific asset you are analyzing.
Practical Application
• Short-Term Trading: Use the EMA 14 and EMA 200 signals to identify quick trend changes.
• Medium-Term Trading: Use the EMA 9 and SMA 20 to capture medium-term trends and reversals.
• Long-Term Investing: Monitor the Golden Cross and Death Cross signals to make decisions based on long-term trend changes.
Example of Unique Features
• Integrated Toggle System: Allows users to enable or disable specific parts of the indicator to customize their analysis.
• Multi-Tier Trend Analysis: Combines short-term, medium-term, and long-term indicators to provide a comprehensive view of the market.
Micho 150 SMA indicatorAMEX:SPY NASDAQ:MSFT This Pine Script indicator is designed to assist traders by displaying a 150-day Simple Moving Average (SMA) and a stop loss level based on a user-defined percentage below the 150-day SMA. It also marks significant crossover events with labels and highlights potential trend changes using Golden Cross and Death Cross indicators.
Features:
150-Day Simple Moving Average (SMA):
The script calculates and plots the 150-day SMA of the closing prices. This is a common technical indicator used to determine the overall trend of a security. The 150-day SMA is plotted in gray on the chart.
Stop Loss Price:
Users can define a stop loss percentage through an input field. This percentage is used to calculate a stop loss price that is plotted 1% (or user-defined percentage) below the 150-day SMA. The stop loss line is plotted in red on the chart. This helps traders manage risk by indicating a price level where they might consider exiting a trade to prevent further losses.
Buy and Sell Signals:
The script identifies potential buy and sell signals based on crossovers of the closing price with the 150-day SMA:
Buy Signal: When the closing price crosses above the 150-day SMA.
Sell Signal: When the closing price crosses below the 150-day SMA.
Labels are plotted at the crossover points to indicate "start follow" for buy signals (in green) and "check stoploss" for sell signals (in red).
Golden Cross and Death Cross:
The script also identifies Golden Cross and Death Cross events:
Golden Cross: Occurs when the 50-day SMA crosses above the 200-day SMA. This is generally considered a bullish signal indicating a potential upward trend.
Death Cross: Occurs when the 50-day SMA crosses below the 200-day SMA. This is generally considered a bearish signal indicating a potential downward trend.
These crossover events are marked with labels on the chart: "Golden Cross" (in yellow) and "Death Cross" (in yellow)
Multiple MAs Signals with RSI MA Filter & Signal About the Script
The "Multiple Moving Averages Signals with RSI MA Filter and Golden Signals" script is a comprehensive trading tool designed to provide traders with detailed insights and actionable signals based on multiple moving averages and RSI (Relative Strength Index). This script combines traditional moving average crossovers with RSI filtering to enhance the accuracy of trading signals and includes "golden" signals to highlight significant long-term trend changes.
This script integrates several technical indicators and concepts to create a robust and versatile trading tool. Here's why this combination is both original and useful:
1. Multiple Moving Averages:
- Why Use Multiple MAs: Different types of moving averages (SMA, EMA, SMMA, WMA, VWMA, Hull) offer unique perspectives on price trends and volatility. Combining them allows traders to capture a more comprehensive view of the market.
- Purpose: Using multiple moving averages helps identify trend direction, support/resistance levels, and potential reversal points.
2. RSI MA Filter:
- Why Use RSI: RSI is a momentum oscillator that measures the speed and change of price movements. It is used to identify overbought or oversold conditions in a market.
- Purpose: Filtering signals with RSI moving averages ensures that trades are taken in line with the prevailing momentum, reducing the likelihood of false signals.
3. Golden Signals:
- Why Use Golden Crosses: A golden cross (50-period MA crossing above the 200-period MA) is a well-known bullish signal, while a death cross (50-period MA crossing below the 200-period MA) is bearish. These signals are widely followed by traders and institutions.
- Purpose: Highlighting these significant long-term signals helps traders identify major buy or sell opportunities and align with broader market trends.
How the Script Works
1. Moving Average Calculations:
- The script calculates multiple moving averages (MA1 to MA5) based on user-selected types (SMA, EMA, SMMA, WMA, VWMA, Hull) and periods (9, 21, 50, 100, 200).
- Golden Moving Averages: Separately calculates 50-period and 200-period moving averages for generating golden signals.
2. RSI and RSI MA Filter:
- RSI Calculation: Computes the RSI for the given period.
- RSI MA: Calculates a moving average of the RSI to smooth out the RSI values and reduce noise.
- RSI MA Filter: Traders can enable/disable RSI filtering and set custom thresholds to refine long and short signals based on RSI momentum.
3. Long & Short Signal Generation:
- Long Signal: Generated when the short-term moving average crosses above both the mid-term and long-term moving averages, and the RSI MA is below the specified threshold (if enabled).
- Short Signal: Generated when the short-term moving average crosses below both the mid-term and long-term moving averages, and the RSI MA is above the specified threshold (if enabled).
4. Golden Signals:
- Golden Long Signal: Triggered when the 50-period golden moving average crosses above the 200-period golden moving average.
- Golden Short Signal: Triggered when the 50-period golden moving average crosses below the 200-period golden moving average.
How to Use the Script
1. Customize Inputs:
- Moving Averages: Choose the type of moving averages and set the periods for up to five different moving averages.
- RSI Settings: Adjust the RSI period and its moving average period. Enable or disable RSI filtering and set custom thresholds for long and short signals.
- Signal Colors: Customize the colors for long, short, and golden signals.
- Enable/Disable Signals: Toggle the visibility of long, short, and golden signals.
2. Observe Plots and Signals:
- The script plots the selected moving averages on the chart.
- Long and short signals are marked with labels on the chart, with customizable colors for easy identification.
- Golden signals are highlighted with specific labels to indicate significant long-term trend changes.
3. Analyze and Trade:
- Use the generated signals as part of your trading strategy. The script provides visual cues to help you make informed decisions about entering or exiting trades based on multiple technical indicators.
Unique Features
1. Integration of Multiple Moving Averages: Combines various moving average types to provide a holistic view of market trends.
2. RSI MA Filtering: Enhances signal accuracy by incorporating RSI momentum, reducing the likelihood of false signals.
3. Golden Signals: Highlights significant long-term trend changes, aligning with broader market movements.
4. Customizability: Offers extensive customization options, allowing traders to tailor the script to their specific trading strategies and preferences.
feel free to comments.
VIX and SKEW RSI Moving AveragesSKEW and VIX are both indicators of market volatility and risk, but they represent different aspects.
VIX (CBOE Volatility Index) :.
The VIX is a well-known indicator for predicting future market volatility. It is calculated primarily based on S&P 500 options premiums and indicates the degree of market instability and risk.
Typically, when the VIX is high, market participants view the future as highly uncertain and expect sharp volatility in stock prices. It is generally considered an indicator of market fear.
SKEW Index :.
The SKEW is a measure of how much market participants estimate the risk of future declines in stock prices, calculated by the CBOE (Chicago Board Options Exchange) and derived from the premium on S&P 500 options.
If the SKEW is high, market participants consider the risk of future declines in stock prices to be high. This generally indicates a "fat tail at the base" of the market and suggests that the market perceives it as very risky.
These indicators are used by market participants to indicate their concerns and expectations about future stock price volatility. In general, when the VIX is high and the SKEW is high, the market is considered volatile and risky. Conversely, when the VIX is low and the SKEW is low, the market is considered relatively stable and low risk.
Inverse Relationship between SKEW and VIX
It is often observed that there is an inverse correlation between SKEW and VIX. In general, the relationship is as follows
High VIX and low SKEW: When the VIX is high and the SKEW is low, the market is considered volatile while the risk of future stock price declines is low. This indicates that the market is exposed to sharp volatility, but market participants do not expect a major decline.
Low VIX and High SKEW: A low VIX and high SKEW indicates that the market is relatively stable, while the risk of future declines in stock prices is considered high. This indicates that the market is calm, but market participants are wary of a sharp future decline.
This inverse correlation is believed to be the result of market participants' psychology and expectations affecting the movements of the VIX and SKEW. For example, when the VIX is high, it is evident that the market is volatile, and under such circumstances, people tend to view the risk of a sharp decline in stock prices as low. Conversely, when the VIX is low, the market is considered relatively stable and the risk of future declines is likely to be higher.
SKEWVIX RSIMACROSS
In order to compare the trends of the SKEW and VIX, the 50-period moving average of the Relative Strength Index (RSI) was used for verification. the RSI is an indicator of market overheating or overcooling, and the 50-period moving average can be used to determine the medium- to long-term trend. This analysis reveals how the inverse correlation between the SKEW and the VIX relates to the long-term moving average of the RSI.
how to use
Moving Average Direction
Rising blue for VIXRSI indicates increased uncertainty in the market
Rising red for SKEWRSI indicates optimism and beyond
RSI moving average crossing
When the SKEW is dominant, market participants are considered less concerned about a black swan event (significant unexpected price volatility). This suggests that the market is stable and willing to take risks. On the other hand, when the VIX is dominant, it indicates increased market volatility. Investors are more concerned about market uncertainty and tend to take more conservative positions to avoid risk. The direction of the moving averages and the crossing of the moving averages of the two indicators can give an indication of the state of the market.
SKEW>VIX Optimistic/Goldilocks
VIX>SKEW Uncertainty/turbulence
The market can be judged as follows.
BestRegards
Temporal Value Tracker: Inception-to-Present Inflation Lens!What we're looking at here is a chart that does more than just display the price of gold. It offers us a time-traveling perspective on value. The blue line, that's our nominal price—it's the straightforward market price of gold over time. But it's the red line that takes us on a deeper journey. This line adjusts the nominal price for inflation, showing us the real purchasing power of gold.
Now, when we talk about 'real value,' we're not just philosophizing. We're anchoring our prices to a point in time when the journey began—let's say when gold trading started on the markets, or any inception point we choose. By 'shadowing' certain years—say, from the 1970s when the gold standard was abandoned—we can adjust this chart to reflect what the inflation-adjusted price means since that key moment in history.
By doing so, we're effectively isolating our view to start from that pivotal year, giving us insight into how gold, or indeed any asset, has held up against the backdrop of economic changes, policy shifts, and the inevitable rise in the cost of living. If you're analyzing a stock index like the S&P 500, you might begin your inflation-adjusted view from the index's inception date, which allows you to measure the true growth of the market basket from the moment it started.
This adjustment isn't just academic. It influences how we perceive value and growth. Consider a period where the nominal price skyrockets. We might toast to our brilliance in investment! But if the inflation-adjusted line lags, what we're seeing is nominal growth without real gains. On the other hand, if our red line outpaces the blue even during stagnant market periods, we're witnessing real growth—our asset is outperforming the eroding effects of inflation.
Every asset class can be evaluated this way. Stocks, bonds, real estate—they all have their historical narratives, and inflation adjustment tells us if these stories are tales of genuine growth or illusions masked by inflation.
So, as informed traders and investors, we need to keep our eyes on this inflation-adjusted line. It's our measure against the silent thief that is inflation. It ensures we're not just keeping up with the Joneses of the market, but actually outpacing them, building real wealth over time
Technical Candle Alerts [SS]Releasing this fun little project indicator.
What is it?
The Technical Candle Alert indicator provides alerts based on multiple underlying technicals, including MFI, RSI, Stochastics, Z-Score, Pivot points and the EMA 50 and EMA 200 Death and Golden Cross.
What does it do?
The indicator looks back over a designated timeframe to look for max and min values of technicals, as well as track the EMA200 and EMA50.
When a candle approaches a previous max zone, pivot point or there is a death or golden cross, the indicator will signal on the candle that has triggered this event. Then you, as the trader, can determine whether you want to listen to the signal or ignore it.
How Does it Work?
The indicator is set to default and generally accepted settings for technicals, however you can modify them as you prefer.
The indicator is also programmed to identify the strongest trend period and set that as the lookback length. The theory is, you want to look at max and min technicals as well as pivot points in a recent area of a strong trend. However, if you want to over-ride the auto trend identification, you can simply unselect "Autotrend" and put in your desired manual lookback length.
The indicator will then keep track of max values for the various technicals and present you with alerts directly over the candle when a Max or Min value is triggered, or a pivot point is entered, etc.
Here are some examples:
Golden Cross:
Death Cross:
Previous Pivot Points:
Various Alerts:
Customization:
You can customize which alerts you want to turn off and on.
As well, there is a signal delay setting (wait setting). This prevents repeated, unnecessary signaling of the same signal. The default wait time is 5 signals, however you can adjust based on your desired tolerance. If you want it to always signal, adjust it to 0.
As indicated before, you can also adjust all of the technicals and the pivot bars for high and low pivots and you can manually set your lookback length.
That is the indicator in a nutshell, let me know if you have any questions that may not have been covered in the description. Its pretty straight forward once you play around with it.
Safe trades everyone and thanks for checking this out!
Cynical Cold IndexThis TradingView indicator calculates the Cynical Cold Index, which is a weighted basket of commodity prices designed to track economic conditions. It compares the price of a given asset to the index value.
Weights the commodities as percentages:
Gold: 10%
Oil: 15%
Coffee: 5%
Natural Gas: 10%
Silver: 15%
Sugar: 5%
Corn: 5%
Wheat: 5%
Cotton: 10%
Copper: 10%
Iron Ore: 5%
Live Cattle: 5%
Urea: 5%
nVPSA - Normalized Volume-Price Spread AnalysisNormalized volume-price spread analysis indicator can be helpfully tool in Tom's William metodology - VSA.
The indicator use normalized data by y/x(max) operation, where x(max) is the biggest value in range. Indicator separate spread to four levels - standard divation is separator.
The indicator graphically shows:
- normalized volume, visualized by wide column,
- normalized price spread, visualized by narrow column,
- linear regression calculated from normalized volume, visualised by crosses,
- linear regression from normalized price spread, visualized by circles.
Columns are marked by five colors according to standard deviation:
- blue xsecond deviation, xfourth deviation,
- gold when volume or price spread achive new maximum in analysis range.
Linear regression uses three colors:
- green when volume/spread is up bar by bar,
- red when volume/spread is down bar by bar,
- black when volume/spread is down two times bar by bar.
Additionally, it is posible to use alarm on Golden Bar. Colors and range values are editable from indicator settings.
comm_idxThis script displays information about the components of the Goldman Sachs Commodity Index. The index is based on futures contracts in the categories of agricultural products, softs commodities, livestock, energies, industrial metals, and precious metals. The statistics displayed in the table are:
change: 1-day % change
from ma: the % change from a moving average
corr idx: correlation of the contract to the GSCI
The lengths for the moving average and correlation statistic can be set using the inputs.
See the script source for the symbols used for each commodity. Although most of the symbols correspond to the actual futures contract used to compute the index, LME contracts are not available on tradingview. Hence, corresponding HKEX contracts are used for the industrial metals.
Trend Indicator with RSI and Fibbonacci Band 0.702 crossingsToday we have a new Indicator set, which I created using inspiration from the Trend Magic Indicator from KivancOzbilgic and adding several new aspects to it and a slightly modified calculation of the trend indicator itself.
You can change the inputs by changing the pre set values in the settings, but I found the current settings quite accurate. Feel free to experiment to fine tune the indicators.
Here are the details of the script:
Trend indicated within candles and as a line
- bullish and bearish trends are now also indicated within the candle based on the CCI calculation.
- Bullish is indicated by a green circle below the candle or as one may call it a "dot"
- bearish trend is indicated by a red circle above the candle
Entry Signal based on RSI crossing its EMA
- my motivation was to have a clearer entry signal besides highlighting a trend, which can not really be used to identify a good entry but to give confidence or when loosing trend to give an exit signal.
- after studiying the RSI and how it works together with its EMA it looks quite interesting as an entry or exit signal. But be cautios if the EMA and RSI values are moving in a narrow area we get a lot of crosses and therefore signals which should rather be ignored rather to be act on. So the the range where the cross happens is also quite important. But this aspect is not yet reflected as a rule/ logic.
But I am thinking of adding something.. or alternativly best to switch to another timeframe to get some better data
RSI overbought and oversold as Diamonds
- I also added key indications of oversold or overbought as Blue and Pink diamonds, can be considered as additional information to maybe identify a short term top or bottom.. but its not very accurate.
Entry signal based on crossing Fibbonachi Band 0.702
- So far the 0.702 seems to be quite an interesting retracement level which seems to be met a lot of times
- based on the assumption the price will evantually hit the 0.702 either direction I wanted to get a signal when this happens
- BUT! a big but, unfortunalty the Fibbonachi bands tend to bloat up in case of high volatility so it is not easy to find the crossing on higher timeframes
Here are the standard value which I found quite accurate for the assets I use this indicator set:
CCI Period = 5
ATR Multiplier = 1
ATR Period = 1
Source = High Low Close (hlc3 average value of the candle
Here the inputs used for the RSI Crossing signal (here you should play around a little to see which entry would have been best..)
RSI Length = 14
RSI Oversold = 25 (to be used for the "golden" entry signal based on the FBB crossing)
RSI Overbought = 80 (to be used for the "golden" entry signal based on the FBB crossing)
RSI Moving Average Length
In future versions I will add options to activate or deactive some of the plotting and espacially this golden dot when the fibbonachi band is being crossed needs some fine tuning..
And lets see if there is a way to fix the bloating of those bands..
Move Magnitude Visualizer (beta)This experimental visualizer measures all price differences across a range of samples to determine what is normal for a measure of time. Based on whether a recent change in price over time has exceeded the norm, a line is drawn to indicate the magnitude/severity of that move. In short, it attempts to visualize when a move is outside the norm and when it may be risky to join that move.
A thick red line = greater than 3 standard deviations.
An orangish/goldish line = greater than 2 standard deviations.
A thin dotted yellow = greater than 1 standard deviation.
In the end, I've always wanted a tool that gave me a visual warning to when a move is abnormally severe and shouldn't be trusted. RSI and other indicators only work with specific lengths, this attempt to be a deviation detector that isn't bound by length or time-frame.
This is a work in progress, so feedback is appreciated. I don't have a strong idea yet how to properly visualize this data.
It is very compute heavy and some users may experience timeouts. I've done everything I can think of to eliminate redundant computer and to optimize for PineScript.
Visible Fibonacci█ OVERVIEW
This indicator displays Fibonacci retracement and extension levels on the price chart using data within the chart's visible range, providing traders with an automated alternative to our well-known drawing tool .
█ CONCEPTS
Fibonacci sequence and the Golden ratio
The Fibonacci sequence is a sequence of numbers where each term is the sum of the previous two terms. In his book Liber Abaci , Fibonacci used this sequence to estimate the growth of rabbit populations. Although most commonly associated with Fibonacci, this numeric sequence appeared in Indian mathematics as early as 200 BC. As this sequence approaches infinity, the ratio of the last element to the preceding approaches the Golden ratio (1.618033...), a well-known metallic ratio theoretically observed in many natural and synthetic systems. Many traders believe that the Fibonacci sequence and the Golden ratio carry significance in the financial markets.
Fibonacci retracements and extensions
Fibonacci retracements and extensions are extremely popular in technical analysis. They are created by connecting two extreme points, typically pivot points, by a trend line and multiplying the range between them by the ratios of steps in the Fibonacci sequence, or more precisely, powers of the Golden Ratio, to produce estimated levels of support and resistance. The ratios used for retracement multipliers are typically the Golden ratio raised to the power of 0, -0.5, -1, -2, and -3, or 1, 0.786, 0.618, 0.382, and 0.236, respectively. It is also common to see traders use a retracement ratio of 0.5. The ratios used for extension multipliers are typically the Golden ratio raised to the power of 0.5, 1, 2, and 3, or 1.272, 1.618, 2.618, and 4.236, respectively. Traders often combine these retracement and extension ratios with others they deem significant for a more personalized output.
Zig Zag
Zig Zag is a popular indicator that filters out minor price fluctuations to denoise data and emphasize trends. Traders commonly use Zig Zag for trend confirmation, identifying potential support and resistance, and pattern detection. It is formed by identifying significant local high and low points in alternating order and connecting them with straight lines, omitting all other data points from their output. There are several ways to calculate the Zig Zag's data points and the conditions by which its direction changes. This script uses the highest and lowest values over a specified length to estimate the locations of pivots. The Zig Zag reverses its direction when a new high or low emerges in the opposite direction. Additionally, enabling the "Detect additional pivots" option in the script settings will locate extra pivots when the number of bars in which no new pivot occurs exceeds the Zig Zag length.
Visible Fibonacci
This script uses the chart's visible bars to calculate and display an automated Fibonacci retracement tool with extreme points based on either of two calculation methods:
• Visible Chart Range: This method uses the highest and lowest points from the visible chart range for Fibonacci level calculation.
• Visible Zig Zag: This method uses historical pivots from a Zig Zag indicator for level calculation. The "nth Last Pivot" input in the script settings controls how many pivots back from the last visible one will be used to calculate the Fibonacci levels.
As traders pan and zoom on their charts, the script dynamically recalculates its values explicitly using the bars within the visible range.
Note that levels drawn outside the range between the high and low points may affect the scale of the chart. To prevent this, select the "Scale price chart only" option in the chart settings.
█ FOR Pine Script™ CODERS
• This script utilizes functions from the VisibleChart library by our resident PineCoders . The library exploits the chart.left_visible_bar_time and chart.right_visible_bar_time variables, which return the opening time of the leftmost and rightmost bars on the chart. They are only two of many new built-ins in the `chart.*` namespace. See this blog post for more information, or look them up by typing "chart." in the Pine Script™ Reference Manual .
• This script's architecture utilizes user-defined types (UDTs) to create custom objects which are the equivalent of variables containing multiple parts, each able to hold independent values of different types . The recently added feature was announced in this blog post.
Look first. Then leap.
Seasonal tendency: week-on-week % change and 10yr Averages-shows week-on-week % change, and 10yr averages of these % changes
-scan across the 10yr averages to get a good idea of the seasonality of an asset
-best used on commodities with strong seasonal tendencies (Gold, Wheat, Coffee, Lean hogs etc)
-works only on daily timeframe
-by default it will compare SMA(length) in the following way, BTC: Sunday cf previous Sunday | ES/Gold: Monday cf previous Monday
-for most assets, 5 daily bars in a week (SMA(5)) => that's the default. For BTC can change this to 7.
~~inputs:
-change input year to show any previous decade of asset's history; the table will display over that year on the chart
-choose expression for Average of % change week on week: SMA, ohlc4, vwma, vwap (default SMA)
-choose number of daily bars in a week (i.e. SMA length)
-change label sizes/colors
~~notes:
-When applied to current year: will print the 10yr average for previous weeks in the year; 9yr average for future weeks in the year
-drawings and SMA plot on the above chart are just to show visually how the week's average is calculated, and how this lines up with the label
-current week of year will highlight in large font orange by default
-the first 2 weeks of the year are omitted because of a bug i can't figure out, which throws out bad numbers.
-cannot print all the values for each of previous 10yrs; 'code too long' error. Could likely do this via using matrices but would require a rewrite
17th Dec 2022
@twingall
[blackcat] L3 YACD38Level 3
Background
"3/8 moving average" golden cross enters, and dead cross exits.
Function
This set of methods is an improved moving average usage - "38 moving average usage", we need to use three moving averages:
3-day, 8-day and 21-day moving averages.
Why is it the 3-day, 8-day, and 21-day moving averages? Most of my friends may not be clear. 3, 8, and 21 are all Fibonacci numbers, also known as the golden section numbers. The Fibonacci number is a basic pattern of nature, which exists in all things. If you don’t understand it, you can go to a certain degree to understand it. In short, it is a very magical existence.
Keep in mind the principle of only doing uptrends and not downtrends. Then we have to use our 21-day moving average skillfully. The 21-day moving average happens to be the average price line for one month. We take it as the decision-making line. When the decision-making line goes down or goes flat, we mainly wait and see; , the operation success rate is higher!
Let's directly share the technical points of "38 moving average usage":
1. Entry point: the 3-day line crosses the 8-day line to form a golden cross, or both the 3-day and 8-day line cross the 21-day moving average; the position of the golden cross must be above the 21-day moving average, and it is invalid if it is below;
2. Basis for holding shares: After entering the market, the moving averages are arranged in a long position, and the K-line rises along the 3-day and 8-day moving averages, hold it patiently, and sell for whatever reason you buy!
3. Exit point: When the 3-day moving average crosses the 8-day moving average to form a dead cross, or the 3-day and 8-day moving averages break below the 21-day moving average, then decisively leave the market;
Note: "38 moving average usage" only needs to refer to the moving average, and the other most reference quantities can be changed. As long as the above conditions are met, you can boldly intervene, and after the intervention, you will rise to the top! Don't underestimate the usage of this set of moving averages, carefully comprehend and memorize them by heart, and be able to achieve the unity of knowledge and action, and you will be able to stand up and be the master from now on!
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The Investment ClockThe Investment Clock was most likely introduced to the general public in a research paper distributed by Merrill Lynch. It’s a simple yet useful framework for understanding the various stages of the US economic cycle and which asset classes perform best in each stage.
The Investment Clock splits the business cycle into four phases, where each phase is comprised of the orientation of growth and inflation relative to their sustainable levels:
Reflation phase (6:01 to 8:59): Growth is sluggish and inflation is low. This phase occurs during the heart of a bear market. The economy is plagued by excess capacity and falling demand. This keeps commodity prices low and pulls down inflation. The yield curve steepens as the central bank lowers short-term rates in an attempt to stimulate growth and inflation. Bonds are the best asset class in this phase.
Recovery phase (9:01 to 11:59): The central bank’s easing takes effect and begins driving growth to above the trend rate. Though growth picks up, inflation remains low because there’s still excess capacity. Rising growth and low inflation are the Goldilocks phase of every cycle. Stocks are the best asset class in this phase.
Overheat phase(12:01 to 2:59): Productivity growth slows and the GDP gap closes causing the economy to bump up against supply constraints. This causes inflation to rise. Rising inflation spurs the central banks to hike rates. As a result, the yield curve begins flattening. With high growth and high inflation, stocks still perform but not as well as in recovery. Volatility returns as bond yields rise and stocks compete with higher yields for capital flows. In this phase, commodities are the best asset class.
Stagflation phase (3:01 to 5:59): GDP growth slows but inflation remains high (sidenote: most bear markets are preceded by a 100%+ increase in the price of oil which drives inflation up and causes central banks to tighten). Productivity dives and a wage-price spiral develops as companies raise prices to protect compressing margins. This goes on until there’s a steep rise in unemployment which breaks the cycle. Central banks keep rates high until they reign in inflation. This causes the yield curve to invert. During this phase, cash is the best asset.
Additional notes from Merrill Lynch:
Cyclicality: When growth is accelerating (12 o'clock), Stocks and Commodities do well. Cyclical sectors like Tech or Steel outperform. When growth is slowing (6 o'clock), Bonds, Cash, and defensives outperform.
Duration: When inflation is falling (9 o'clock), discount rates drop and financial assets do well. Investors pay up for long duration Growth stocks. When inflation is rising (3 o'clock), real assets like Commodities and Cash do best. Pricing power is plentiful and short-duration Value stocks outperform.
Interest Rate-Sensitives: Banks and Consumer Discretionary stocks are interest-rate sensitive “early cycle” performers, doing best in Reflation and Recovery when central banks are easing and growth is starting to recover.
Asset Plays: Some sectors are linked to the performance of an underlying asset. Insurance stocks and Investment Banks are often bond or equity price sensitive, doing well in the Reflation or Recovery phases. Mining stocks are metal price-sensitive, doing well during an Overheat.
About the indicator:
This indicator suggests iShares ETFs for sector rotation analysis. There are likely other ETFs to consider which have lower fees and are outperforming their sector peers.
You may get errors if your chart is set to a different timeframe & ticker other than 1d for symbol/tickers GDPC1 or CPILFESL.
Investment Clock settings are based on a "sustainable level" of growth and inflation, which are each slightly subjective depending on the economist and probably have changed since the last time this indicator was updated. Hence, the sustainable levels are customizable in the settings. When I was formally educated I was trained to use average CPI of 3.1% for financial planning purposes, the default for the indicator is 2.5%, and the Medium article backtested and optimized a 2% sustainable inflation rate. Again, user-defined sustainable growth and rates are slightly subjective and will affect results.
I have not been trained or even had much experience with MetaTrader code, which is how this indicator was originally coded. See the original Medium article that inspired this indicator if you want to audit & compare code.
Hover over info panel for detailed information.
Features: Advanced info panel that performs Investment Clock analysis and offers additional hover info such as sector rotation suggestions. Customizable sustainable levels, growth input, and inflation input. Phase background coloring.
⚠ DISCLAIMER: Not financial advice. Not a trading system. DYOR. I am not affiliated with Medium, Macro Ops, iShares, or Merrill Lynch.
About the Author: I am a patent-holding inventor, a futures trader, a hobby PineScripter, and a former FINRA Registered Representative.
