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MDX:Time the selling:VSMarketTrend
The MDX: Time the Sell indicator is designed to identify high-probability profit-booking points and potential trend shift zones by combining price deviation analysis with multi-layered market context filters.
It builds upon the Mean Deviation Index (MDX) concept — measuring how far price has moved away from its mean — but enhances it with dynamic EMA structures, volatility normalization, and momentum overlays.
Data Sources
Price & Volume Data: Direct from TradingView’s built-in real-time feed.
ATR & Volatility Metrics: Based on TradingView’s ATR and standard deviation functions.
EMA Structures: Multiple EMAs for both long-term and short-term market bias tracking.
VWAP: Used for intraday institutional bias measurement.
RSI: Period-specific overbought/oversold detection.
Custom MDX Calculation: Uses an ATR-filtered EMA process to normalize price deviations across different market conditions.
Calculation Approach (High-Level)
While the exact logic is internal, here’s the conceptual flow:
Baseline Mean → Built using an ATR-adjusted EMA to represent a smoothed market mean that adapts to volatility.
Deviation Measurement → Compares current price against the mean, adjusted for ATR to avoid noise.
Trend Context Filters → Multiple EMA layers (short, medium, long) combined with MACD, RSI, and VWAP context.
Signal Structuring →
Red Top Line → Long-term EMA of MDX, representing strong deviation extremes.
Dotted Lower Line → Short-term EMA of MDX, used for quicker turn detection.
Grey MDX Line → Base deviation measurement, showing live market stretch from mean.
How to Use This Indicator
Best Use Case: Timing Profit Booking
Primary Sell Alert → When the MDX line touches the red top line, it indicates a significant overextension from the mean, often preceding a correction. This is where profit booking is most effective.
Sell Confirmation → Red or orange vertical lines mark complete exit zones based on multi-condition trend weakening.
High-Risk Overbought Zone → Blue vertical lines appear when RSI > 80, warning of potential pullbacks even if trend remains intact.
Buy Zone Detection
Green Vertical Line → Suggests a possible re-entry or add-on point, where deviation and momentum align for potential upward continuation.
Visual Guide
Grey Line → Live MDX reading.
Dotted Line (Lower) → Short-term MDX EMA.
Red Line (Upper) → Long-term MDX EMA.
Vertical Green → Possible buy/add zone.
Vertical Red/Orange → Full sell/offload signal.
Blue Vertical → RSI-based overbought warning.
another example
Trading Tips
Use with Trend Context → Best results when aligned with higher timeframe trend direction.
Pair with Volume Analysis → Large deviation + volume spike often signals strong reversal probability.
Avoid Overtrading → Wait for the MDX to reach extreme red-line contact before aggressive selling.
Multi-Timeframe Check → Confirm signals on both your trading and one higher timeframe for higher accuracy.
It builds upon the Mean Deviation Index (MDX) concept — measuring how far price has moved away from its mean — but enhances it with dynamic EMA structures, volatility normalization, and momentum overlays.
Data Sources
Price & Volume Data: Direct from TradingView’s built-in real-time feed.
ATR & Volatility Metrics: Based on TradingView’s ATR and standard deviation functions.
EMA Structures: Multiple EMAs for both long-term and short-term market bias tracking.
VWAP: Used for intraday institutional bias measurement.
RSI: Period-specific overbought/oversold detection.
Custom MDX Calculation: Uses an ATR-filtered EMA process to normalize price deviations across different market conditions.
Calculation Approach (High-Level)
While the exact logic is internal, here’s the conceptual flow:
Baseline Mean → Built using an ATR-adjusted EMA to represent a smoothed market mean that adapts to volatility.
Deviation Measurement → Compares current price against the mean, adjusted for ATR to avoid noise.
Trend Context Filters → Multiple EMA layers (short, medium, long) combined with MACD, RSI, and VWAP context.
Signal Structuring →
Red Top Line → Long-term EMA of MDX, representing strong deviation extremes.
Dotted Lower Line → Short-term EMA of MDX, used for quicker turn detection.
Grey MDX Line → Base deviation measurement, showing live market stretch from mean.
How to Use This Indicator
Best Use Case: Timing Profit Booking
Primary Sell Alert → When the MDX line touches the red top line, it indicates a significant overextension from the mean, often preceding a correction. This is where profit booking is most effective.
Sell Confirmation → Red or orange vertical lines mark complete exit zones based on multi-condition trend weakening.
High-Risk Overbought Zone → Blue vertical lines appear when RSI > 80, warning of potential pullbacks even if trend remains intact.
Buy Zone Detection
Green Vertical Line → Suggests a possible re-entry or add-on point, where deviation and momentum align for potential upward continuation.
Visual Guide
Grey Line → Live MDX reading.
Dotted Line (Lower) → Short-term MDX EMA.
Red Line (Upper) → Long-term MDX EMA.
Vertical Green → Possible buy/add zone.
Vertical Red/Orange → Full sell/offload signal.
Blue Vertical → RSI-based overbought warning.
another example
Trading Tips
Use with Trend Context → Best results when aligned with higher timeframe trend direction.
Pair with Volume Analysis → Large deviation + volume spike often signals strong reversal probability.
Avoid Overtrading → Wait for the MDX to reach extreme red-line contact before aggressive selling.
Multi-Timeframe Check → Confirm signals on both your trading and one higher timeframe for higher accuracy.
Skrip dilindungi
Skrip ini diterbitkan sebagai sumber tertutup. Akan tetapi, anda boleh menggunakannya dengan percuma dan tanpa had – ketahui lebih lanjut di sini.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Skrip dilindungi
Skrip ini diterbitkan sebagai sumber tertutup. Akan tetapi, anda boleh menggunakannya dengan percuma dan tanpa had – ketahui lebih lanjut di sini.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.