Smart Vision Community is a Basic version but Helpful and Free indicator to help you able to build a simple trading system with 2 main steps:
- Step 1: Check overall market trend by Supertrend signal, or MA line.
- Step 2: Confirm/double check the signal by using Revert Bands and/or Peaks - Valleys lines (that aim to work as Support - Resistance levels)
Although some of above factors look like traditional. However, we added some improvements to let them more flexible and the most important this is reduce noises. This is very helpful. Especially, when you trade in short timeframes and/or in some markets that the price changes extremely high and generate lot of noising signals such as Cryptocurrencies.
To reduce noises and let the signals more smoothing, this indicator:
- Uses the price of 10 recent Close price as the data source to calculate Supertrend, MA line and Revert Bands.
- Allows you change from High/Low prices to Open/Close prices to calculate
- Allows you combine more than just one signal
To let you able to flexible in your trading market and trading style, this indicator allows you:
- Change the look back period to detect Support - Resistance levels for just recent times or for a long time ago.
- Change the Sensitivity Level of Supertrend to set it more or less sensitive with the market price.
- Switch between High/Low and Open/Close prices for .
- Use difference formula to calculate MA. It is up to your trading style.
To let you easy to use and having a consistent trading system, everything is provided in just a single indicator.
II - Settings & Interpretation:
1. Peaks & Valleys Levels
- Show Peaks & Valleys Levels: Show Peaks and Valleys as Support - Resistance levels
- Length: Look back period to calculate Peaks & Valleys Levels.
==> You can use these levels as Support - Resistance levels.
Note: Although we show levels as lines to easier to see when there are many things in the chart, they actually are areas.
- Show Supertrend: Show/Hide Supertrend
- Sensitivity Level: The sensitivity when calculate market trend. Higher level means more sensitive and it helps to capture the trend sooner. However, higher level also mean easier to get wrong signals. It is up to your trading style
==> You can use this to see overall market trend.
- Red Line and Red Cloud mean the market trend is .
- Blue Line and Blue Cloud mean the market trend is .
- Show Channels: Show/Hide
- Donchian Source: Select the data source to calculate . Original use High & Low prices to calculate
- Length: Look back period to calculate channels.
==> You can use this as another way to see overall market trend.
- Upper Channel reaches a higher high means the market trend is
- Lower Channel reaches a lower low means the market trend is
4. Moving Average
- Show Moving Average: Show/Hide Moving Average
- Moving Average Type: The moving average formula. We provide 7 difference ways/formula to calculate MA ( , , , , RMA, , )
- Length: The look back period
==> A way to see the market price in a smoothing line. This MA line (with Formula and Length) is also used as the Base Line to calculate Trend Reversion Bands.
5. Trend Reversion Bands
- Show Trend Reversion Bands: Show/Hide Trend Reversion Bands
==> Trend reversion bands are calculated to measure the revert strength in short-term. When the price is too high or too low, it will revert to the opposite side. And reversion bands help to calculate too high and too low prices in that period. These bands are calculated based on the MA line and using Fibonacci levels to calculate the revert strength. This can be used as a dynamic Support - Resistance levels.
III - Suggested usage:
1. Adjust the inputs to match with your trading style, the market and timeframe you are trading.
2. Check the overall market trend by Supertrend signal, or MA line. Consider to Buy/Long when there is a Buy signal and Sell/Short when there is a Sell signal.
3. Confirm the signal by using MA line, Peaks & Valleys Levels and/or Trend Reversion Bands. For example, when the price passes over the MA line or just break a Support - but not too close the Revert Bands...
4. Make your trading decision.
- Please always use more than 1 signal before you make a trading decision. Although this indicator tried to reduce noises, only one signal is not reliable
- The signal is just confirmed when the candle is closed
IV - Useable markets:
Able to use in all markets: Stocks, Currencies, Cryptocurrencies, Bonds....
V - Useable timeframes:
Able to use in all timeframes: M15, M30, H1, H2, H3, H4, D1
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In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.