Liquitive Buy/Sell Dollar Averager

3 Jan

Liquitive Buy/Sell Dollar Averager Indicator

The "Liquitive Buy/Sell Dollar Averager" is a versatile trading tool designed for intraday and multi-timeframe analysis, combining advanced range-bound calculations, RSI normalization, volume spikes, and candle pattern recognition to identify optimal buy and sell conditions. This indicator is particularly suitable for traders employing strategies that focus on dollar-cost averaging, position scaling, and systematic buy/sell decision-making.

Key Features:
Adaptive RSI-Based Levels:

Dynamically calculates inner bounds (IB) and outer bounds (OB) using RSI and price ranges, helping to identify overbought and oversold conditions relative to the price action.
Normalizes RSI values to the price range for seamless visualization overlaid on the chart.
Volume and Candle Analysis:

Detects significant volume spikes relative to a moving average, signaling increased market activity.
Identifies spiking green/red candles to capture momentum-driven price movements.
Dynamic Support and Resistance:

Calculates and plots support and resistance levels based on recent swing highs and lows.
Median and boundary lines help visualize key price levels for decision-making.
Profitability Check:

Buy and Sell Signals:
Checks profitability thresholds based on percentage gains/losses.
Incorporates logic for "time to buy" and "time to sell" using target profit margins.
Implements average move percentage to define realistic thresholds for buy/sell actions.
Time-Based Trading Restrictions:

Configures trading logic to disallow trades after a specific time (e.g., 3:40 PM for intraday sessions).
Ensures logical entry and exit decisions are only made within active trading hours.
Color-Coded Visualization:

Background colors dynamically shift between green (bullish), red (bearish), and neutral, depending on RSI and price position relative to the inner bounds.
Opacity of the background adjusts based on normalized RSI differences to provide a visual cue of market strength.
Customizable Parameters:

Allows user input for key settings like lookback periods, RSI length, percent ranges, volume thresholds, and transparency levels, enabling flexible configuration tailored to individual strategies.
Actionable Alerts and Signals:

Plots "Open Position", "Add to Position", and "Close Position" markers directly on the chart, making it easy to follow systematic trading rules.
How It Works:
Buy Signals:
Triggered when price conditions, volume spikes, and RSI-based thresholds align with profitability metrics.
Designed for dollar-cost averaging, identifying opportunities to add to long positions or open new positions.
Sell Signals:
Evaluates profitability conditions to identify when to close or scale out of positions.
Incorporates real-time evaluation of market momentum and profitability.

8 Jan

Nota Keluaran

Liquitive Buy/Sell Dollar Averager

Overview
The Liquitive Buy/Sell Dollar Averager is an advanced Pine Script indicator designed for traders seeking optimized buy and sell signals. By analyzing price action, volume spikes, RSI normalization, and aggregated average prices, the script provides actionable insights for managing trades. It is tailored for users who aim to average buy signals and make informed sell decisions based on calculated move percentages.

Features

1. Buy Signal Logic
Averaging Buy Signals:
Aggregates the average close price across multiple buy signals.
Updates the average close price dynamically (lastBuyClose).

Primary Buy Conditions:
Volume Spike with Green Candle:
Identifies green candles with sizes above the average.
Confirms volume spikes exceeding the defined threshold.
Reversal from Persistent Red Pattern:
Detects transitions from a bearish trend to bullish momentum.
RSI-Based Bullish Signals:
Normalized RSI crosses bullishly above the lower (blue) or upper (orange) Inner Bounds (IB).
Background Color Transition:
Shifts from red to green indicate bullish sentiment.

Secondary Buy Conditions:
Includes persistent green backgrounds or consecutive bullish RSI crossovers.

Profitability Check for Buy Signals:
Ensures prices are below a calculated profitability threshold:
Threshold = Last Sell Close * (1 - (Average Move Percentage / 100))

2. Sell Signal Logic
Averaging Sell Signals:
Aggregates the average close price across multiple sell signals (lastSellClose).

Primary Sell Conditions:
Volume Spike with Red Candle:
Identifies red candles with sizes above the average.
Confirms volume spikes exceeding the defined threshold.
Reversal from Persistent Green Pattern:
Detects transitions from a bullish trend to bearish momentum.
RSI-Based Bearish Signals:
Normalized RSI crosses bearishly below the upper (orange) or lower (blue) Inner Bounds (IB).
Background Color Transition:
Shifts from green to red indicate bearish sentiment.

Profitability Check for Sell Signals:
Disabled: Sell signals do not evaluate profitability.

3. Key Calculation Logic
Normalized RSI:
RSI values are scaled to align with price ranges for enhanced visualization.
Inner and Outer Bounds (IB & OB):
Inner Bounds (IB): Calculated percentages within Outer Bounds (OB) for actionable levels.
Outer Bounds (OB): Extreme highs and lows over a defined lookback period.
Average Move Percentage:
Determines the expected move between Inner Bounds for profitability checks.

4. Customization Options
Lookback Periods: Define the range for calculating bounds.
Volume Spike Percentage: Adjust thresholds for identifying significant volume changes.
RSI Settings: Tailor RSI parameters for short- and long-term analysis.
Visualization Settings:
Toggle display for Inner Bounds, Outer Bounds, Center Line, Normalized RSI, and SMA.
Customize SMA periods with predefined options (e.g., 5, 10, 20, 50, 100, 200).
Indicator Brightness: Adjust transparency for visual clarity.

Visual Indicators

Key Plots
Outer Bounds (OB):
Red line (upper) and green line (lower) represent extreme price ranges.
Inner Bounds (IB):
Orange line (upper) and blue line (lower) indicate actionable zones.
Center Line:
Purple line represents the midpoint of OB.
Normalized RSI:
A dynamic RSI line scaled to price ranges.
Close SMA:
Moving Average of close prices based on user-defined periods.

Signal Markers
Buy Signal (Green Triangles):
Large triangle: Indicates the opening of a new position.
Small triangle: Indicates adding to an existing position.
Sell Signal (Red Triangles):
Large triangle: Indicates the closing of a position.

Workflow
1. User Inputs: Customize lookback periods, RSI settings, and visualization preferences.
2. Dynamic Calculations:
RSI values are normalized.
Inner and Outer Bounds (IB & OB) are calculated for actionable trading levels.
Average close prices are dynamically updated for buy and sell conditions.
3. Signal Generation:
Buy signals are triggered based on profitability checks and aggregated buy conditions.
Sell signals are triggered based on aggregated sell conditions without profitability checks.
4. Visual Representation: Signals, RSI, and bounds are plotted for intuitive decision-making.

Recommendations

Best Timeframes: Effective for intraday and swing trading strategies.
Market Conditions: Works well in trending and range-bound markets with sufficient volume.
Customization: Use the input options to fine-tune the indicator to match your trading style.

This document highlights the core functionalities, making it easier to integrate the indicator into your trading workflow. Happy trading!

14 Jan

Nota Keluaran

Release Notes
In this release, the following issue has been addressed:
- Incorrect calculations of the Close Position signal relative to the average close prices of previously opened Open Position and Add signals. This issue is now resolved.

27 Jan

Nota Keluaran

New Features and Inputs
Target Gain Adjustment (targetGain):

A new input to adjust the target gain calculation, allowing for dynamic fine-tuning of profitability targets.
Maximum Drawdown Signals (maxDrawDownSignals):

Introduced an input to limit the number of buy signals during a drawdown period. Prevents overbuying in adverse conditions.
Show Trend Option:

Added a toggle to display the trend based on new parameters (trendFactor and trendPeriods).
Trend Parameters:

Introduced trendFactor and trendPeriods inputs to customize the trend calculation.
Show Gain Target:

A new toggle to enable or disable the display of the gain target line on the chart.
Adjustments to Buy and Sell Logic
Improved Buy Logic:

The primaryBuyCondition now integrates:
Start of Uptrend (startTrendUp): Signals the beginning of an upward trend based on directional changes.
Green candle with volume spikes and other preconditions.
Enhanced Sell Logic:

The primarySellCondition incorporates:
Start of Downtrend (startTrendDown): Detects when the direction reverses downward.
Exhausting Trend: Considers when the trend reaches exhaustion.
Profitability and Signal Count Tracking:

Buy and Sell logic now accounts for signal counts, ensuring logical toggling between buy and sell modes based on maximum drawdowns.
Visualization Updates
Target Price Line:

Introduced a visual line (targetPriceLine) to display calculated target prices for enhanced decision-making.
Additional Plot Customization:

Options to display or hide the following:
Inner Bounds (ARIB)
Close SMA
Center Line
Trend lines and target gains
Bug Fixes
Resolved Calculation Errors in Buy/Sell Averages:

Fixed incorrect calculations of lastBuyClose and lastSellClose averages when handling multiple buy/add signals.
Enhanced logging to debug average price calculations during buy and sell events.
Volume Spike Threshold Fix:

Adjusted the default volume spike percentage for more accurate detection of significant market activity.
Other Changes
Enhanced Logging:

Added warning logs for buy and sell events to provide greater transparency and debugging capabilities.
Default Parameter Adjustments:

Updated defaults for certain inputs to improve usability:
lookbackPeriod: Set to a smaller default for faster feedback.
volumeSpikePct: Increased default for better spike detection.