TMC - THE MAGICAL CORD by MrCryptoBTC

TMC - THE MAGICAL CORD By MrCryptoBTC (Not For Sale - FREE)

The "TMC - THE MAGICAL CORD" indicator by MrCryptoBTC is a simple trend-following tool designed for TradingView, utilizing Volume-Weighted Average Price (VWAP) crossovers to identify market trends and generate trading signals. It plots two VWAP lines—a fast VWAP and a slow VWAP—and uses their relationship to determine trend direction. The indicator provides "BUY" signals for entering bullish trends and "SELL" signals for entering bearish trends. The VWAP lines are dynamically coloured to reflect the trend, and alerts are included to notify traders of trend changes.

How It Works
1. Trend Identification:
* The indicator calculates two VWAPs: a fast VWAP (fast_length) and a slow VWAP (slow_length), both weighted by volume using the rma (Running Moving Average) function applied to the product of hlc3(average of high, low, and close) and volume, divided by the rma of volume.
* A Buy trend is identified when the fast VWAP crosses above the slow VWAP, triggering a "BUY" signal with a cyan label above the candle.
* A Sell trend is identified when the fast VWAP crosses below the slow VWAP, triggering a "SELL" signal with a red label below the candle.
* The VWAP lines are plotted with dynamic coloring: green during an uptrend (fast VWAP > slow VWAP), red during a downtrend (fast VWAP < slow VWAP), and silver when neutral.

2. Visualization:
* The fast and slow VWAP lines are plotted on the chart, with a filled area between them to visually highlight the trend direction.
* "BUY" and "SELL" labels are placed at the high or low of the candle where the crossover occurs, providing clear entry signals.

3. Alerts:
* Alerts are set up for "BUY" and "SELL" signals, notifying traders of trend changes with messages like "VWAP GREEN - Buy Signal" and "VWAP RED - Sell Signal."

Recommended Setup
* Timeframes:
* Scalping/Day Trading: Use on lower timeframes like 5-minute or 15-minute charts for quicker signals.
* Swing Trading: Use on higher timeframes like 1-hour or 4-hour charts for more reliable trends.