This indicator is a combination of a few things in order to work with a unique trading style gleaned from Callme100k, jrgreatness, TrustMyLevels , FaithInTheStrat, Rob Smith and Saty Mahajan.
This Indicator is created to help you day trade using, ATR Fibonacci Levels, Price Action and Momentum.
It displays Fibonacci Levels Based on ATR to indicate when a security is 0.236, 0.382 +- the Days Open, +- the Days Open, 0.618 +- the Days Open and 1.0 +- Days Open.
To understand this script you need to understand Average True Range (ATR) 1 Bar Inside Bar 2 Bar Outside Bar (Break either the top or bottom) 3 Bar Engulfing Bar Strat Setups - 212, 322, 312 Fibonacci - 0.236, 0.382, 0.618, 1.0 Moving Averages
A Trend is considered bullish when (green) Current Price is greater than the Fast EMA Value (8) Fast EMA is greater than PIVOT EMA Value (21) Pivot EMA is greater than SLOW EMA Value (34) OR Hull is trending up and the Price is above the Volume Weighted Moving Average and price is above VWAP
A trend is considered Bearish when (red) Current Price is less than the Fast EMA Value (8) Fast EMA is less than PIVOT EMA Value (21) Pivot EMA is less than SLOW EMA Value (34) OR Hull is trending down and the Price is below the Volume Weighted Moving Average and price is below VWAP
If these conditions are not met then the Momentum is in Conflict (orange)
The Momentum band will match the color of the current trend
The table that is present can be turned off at any time lets you see
1) If Moving Averages are showing bullish, bearish or in conflict 2) If There us Time Frame Continuity, (if 5 min up, are all the other timeframes up also) 3) How much of the ATR have we moved on the day 4) Are we in Call or Put range for the day based on ATR Fib Levels
The Ideal situation for entering a call 1) Momentum is Green 2) FTFC on Green 3) A Strat Actionable Signal is present 4) You are in the call range, 0.236 - 0.618 ATR + the Price 5) The ATR still has room, I.e only 50% of the ATR has been run already
Ideal situation from entering a put 1) Momentum is red 2) FTFC on Red 3) A Strat Actionable Signal is present 4) You are in the put range, 0.236 - 0.618 ATR - the Price 5) The ATR still has room, I.e only 50% of the ATR has been run already
Exit the trade for these reasons you entered (for profit or loss) 1) ATR has no more room 2) FTFC is now in conflict 3) Momentum has shifted
Take Profit when 1) You reach a new ATR Level 0.618, 1.0 , -0.618, -1, etc
Passive Stop Loss 1) Open Price if you are aggressive 2) Next ATR Level Down or Up
Feel free to take profit and leave runners
This script does not give signals, you should do your own research, I am not a financial advisors, I am simply applying principles of seasoned veterans to code. You make all decisions about how you buy, sell and trade. The creator of this script makes no promises and takes no responsibility for your personal trading.
To research the methods described above look up Rob Smith : The Strat Saty Mahajan : ATR Levels Fibonacci Using the HULL Moving Average Exponential Moving Averages VWAP VWMA
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Minor change
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Minor Update on text typo
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Fixed 3-2 Setup and 3-1 Setup to show up on chart
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added 5 day back testing
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Minor Change
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Added Back Testing and 5 days, Adjusted entry levels 0.146
Entry Level = 0.146 * ATR plus or minus(+/-) the days open price Money Level = 0.236 * ATR +/- the days open price Good Money Level = 0.382 * ATR +/- the days open price Great Money Level = 0.618 * ATR +/- the days open price Baller Money Level = ATR +/- the days open price
The entry number is your potential entry, the money number is your Price Target (PT), or potential exit… check FTFC (Full TimeFrame Continuity and Momentum)!!!
You can use indicator either for calls or puts, but, depending on the market direction, play what you see and not what you think!
Keep it simple, control those emotions, wait for your confirmations, buy the options contracts you can afford, and let the charts do the rest…
This also works with advanced strategies like Straddle, Strangle and Iron Condor
Straddle/Strangle Example ( Not financial advice) 1) Buy Call and Put at Open (or atleast at the same time) at the same strike, or using the 0.146 +/- levels as the strike 2) Hold both until 1 reaches 0.236 +/- and cut the loser( or more aggressively by another option on the winning side), if price action starts moving to 0.382 (use strat 1,2,3 and actionable signals) 3) exit winner when the price action goes against you, (if you doubled down you can leave a runner to see if it gets to +/- 0.618) 4) If you kept the loser sell it either when price action retraces to 0.236, or if continue to move against you.
Iron Condor Example (Not financial advice)
1) Buy Put at - 1 ATR 2) Buy A Call at +1 ATR 3) Sell A Put at -.236 ATR 4) Sell A Call at +.236 ATR 5) Open Iron Condor at OPEN and ext IRON Condor at close to Day Close
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Minor Updates on Plotting
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You can now toggle between a small chart and a large chart
Large Chart is optimal for desktop and has all data Small Chart is for mobile trading and gives only the most important Data Full Time Frame Continuity ATR Fib Levels If Momentum is Bullish, Choppy or Bearish
Wow. Script is super intense, however I am new to the strat so not surprising. Thanks
abb24
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.what is the best time frame. The script is very good. However description of strategy is not clear. Kindly eleborate it from beiginers perspective
bigpoppacode97964
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@abb24, 1 minute through15 minute Time Frames. It is made for Day Trading Options using The Strat and Momentum Strategy.
Can also be adapted to futures.
abb24
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@bigpoppacode97964, Thanks for your prompt response. i have tried to read Rob Smith Strats but but could not uderstand.Kindly enlighten me with Strat 212,322, 312 and big numbers 1, 2, 3 on chart. Thans a lot again.
bigpoppacode97964
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@abb24, 1 Bar Inside Bar (The price action neither breaks the previous high or low of the previous bar) 2 Bar Outside Bar (Break either the high or low of previous bar) 3 Bar Engulfing Bar (Break both the high and low of previous bar)
2-1-2 - 2bar then a 1 bar then a 2 bar etc Look up the Strat Entries online, I don't want to give financial advice, but 212 322 312 are significant to the Strat for establishing potential entries....
@bigpoppacode97964 Hi, and thank you for your time in advance. I trade stock indexes, primarily SPY & QQQ, and sometimes equities such as TSLA, NVDA, AAPL, etc. I'm not yet into options, though I would love to eventually. But, for now, if I deselect the: "Show Strat Candle Setups and Indicators" choice, and use all other choices, would this indicator work as effectively for equities?
bigpoppacode97964
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@BJordanM, hey missed this. That would work fine, but I would tell you before you turn off the Strat Setups Watch some youtube videos on ‘The Strat’ methodology first. You might realize it’s actually for you.