[blackcat] L2 Reversal Labels

12 Jan 2022

Level: 2

Background

There is a Chinese proverb that says: "The great way leads to simplicity". This indicator is the representative of this meaning. Through the processing of the most common MACD indicator data, it is possible to quickly determine the market price: whether the current price is at a historical high or low, whether a reversal will happen soon, etc. at a glance.



Function

This indicator performs screening and filtering through the fast and slow line data corresponding to the output of the standard MACD indicator, so as to realize the function of judging the top and bottom of the trend.

Inputs

N/A

Key Signal

Near Top --> Top is reached and reversal may happen soon. (red labels)
Near Bottom --> Bottom is reached and reversal may happen soon. (green labels)

Remarks

This is a Level 2 free and open source indicator.

Feedbacks are appreciated.

14 Feb 2022

Nota Keluaran

Add more methods to set up alert

14 Feb 2022

Nota Keluaran

Thanks to romainmarzullo ! after adding a shorttitle, alerts are available now!

19 Apr

Nota Keluaran

OVERVIEW
The [blackcat] L2 Reversal Labels indicator helps traders identify potential reversal points in the market using Moving Average Convergence Divergence (MACD). By analyzing MACD crossovers and price action, this indicator plots labels on the chart to indicate near-top and near-bottom zones. It also generates alerts to notify users of these potential reversals, aiding in timely decision-making 📉↗️.

FEATURES

Calculates MACD components: MACD Line, Signal Line, and Histogram
Identifies near-top and near-bottom zones based on MACD crossovers and price action 📊
Plots clear labels on the chart:
"Near Top" labeled in red at potential tops.
"Near Bottom" labeled in green at potential bottoms.
Generates alerts for both top and bottom reversal signals 🔔
Supports customizable alert conditions for personalized notifications 🛎️
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Observe the plotted labels on the chart indicating potential reversal zones.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Combine this indicator with other tools for confirmation before making trading decisions.
LIMITATIONS

The indicator relies solely on MACD, which might not capture all market nuances.
False signals can occur in ranging or sideways markets 🌪️.
Users should always confirm signals with other forms of analysis.
NOTES

Ensure that you have sufficient historical data available for accurate MACD calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize alert conditions as needed to fit your trading strategy.