Predictive Indicator Matrix v2 (public)Predictive Indicator Matrix for TradingView
The "Predictive Indicator Matrix" is an advanced analytical tool for TradingView, designed to work across multiple timeframes from 1D to 5m. It employs a complex algorithm combining various technical indicators such as the Ichimoku Cloud, ADX, five EMAs, slow and fast versions of MACD, Stochastic Oscillator, and RSI. This combination is meticulously curated to provide a multifaceted view of the market.
The uniqueness of this script lies in its trigonometric and mathematical logic. It utilizes trigonometric functions, like the arctangent and cosine functions, to calculate the 'bias' and 'score' of market trends, presented in decimal percentages (%). These calculations are pivotal in understanding market dynamics and potential directional changes. The 'bias' is calculated using the cosine of the arctangent of the ratio between current and previous scores, adjusted for market shift. This innovative approach provides a nuanced understanding of market momentum and trend strength.
Furthermore, the script dynamically generates prediction lines based on these calculations. These lines represent potential future market paths, plotted using the current market data and the calculated levels from the matrix. This feature visually represents the script's analysis, offering users an intuitive and actionable insight into potential market movements.
The integration of these indicators, along with the trigonometric calculations, makes the script not only unique but also a powerful tool for traders. It encapsulates various market aspects in one matrix, offering a comprehensive analysis that goes beyond traditional indicator-based strategies.
Note 1: This tool is intended for market analysis and should not be construed as investment advice.
Note 2: Community engagement is encouraged. For additional features like a time display on the table, please provide feedback in the comments. I am open to incorporating such features to enhance the tool's utility based on user preference.
Average True Range (ATR)
Ranges With Targets [ChartPrime]The Ranges With Targets indicator is a tool designed to assist traders in identifying potential trading opportunities on a chart derived from breakout trading. It dynamically outlines ranges with boxes in real-time, providing a visual representation of price movements. When a breakout occurs from a range, the indicator will begin coloring the candles. A green candle signals a long breakout, suggesting a potential upward movement, while a red candle indicates a short breakout, suggesting a potential downward movement. Grey candles indicate periods with no active trade. Ranges are derived from daily changes in price action.
This indicator builds upon the common breakout theory in trading whereby when price breaks out of a range; it may indicate continuation in a trend.
Additionally, users have the ability to customize their risk-reward settings through a multiplier referred to as the Target input. This allows traders to set their Take Profit (TP) and Stop Loss (SL) levels according to their specific risk tolerance and trading strategy.
Furthermore, the indicator offers an optional stop loss setting that can automatically exit losing trades, providing an additional layer of risk management for users who choose to utilize this feature.
A dashboard is provided in the top right showing the statistics and performance of the indicator; winning trades; losing trades, gross profit and loss and PNL. This can be useful when analyzing the success of breakout trading on a particular asset or timeframe.
Anticipated Profit Targets (APT)Anticipated Profit Targets (APT)
Purpose:
The Anticipated Profit Targets script is a specialized tool designed to assist traders in visualizing potential exit points for their trades. This is achieved by leveraging the Average True Range (ATR), a renowned measure of market volatility.
How It Works:
ATR Computations: At its core, the script calculates the ATR based on a user-defined number of periods. The ATR captures the range between the high and low prices of an asset over a specific duration, providing a snapshot of its volatility.
Multiplier Application: To fine-tune the profit targets, the ATR is multiplied by a user-defined multiplier. This step adjusts the ATR value, setting the profit targets at a distance from the current price, thus accounting for potential price movements.
Adaptable Timeframes: One of the standout features of this script is its adaptability. Users can select their desired timeframe for the profit target calculations. This flexibility means that a trader can be on a 15-minute chart but visualize profit targets based on the volatility of a 1-hour chart.
Visual Representation: The calculated profit targets are then overlaid onto the current chart. This visual aid provides traders with a clear perspective of potential exit points in relation to ongoing price movements.
Originality and Usefulness:
While the concept of using ATR for setting profit targets isn't new, this script's adaptability across timeframes and its user-centric customization options make it a unique offering. The combination of ATR with dynamic multipliers and timeframe adaptability ensures that traders get a tool tailored to their specific needs, rather than a one-size-fits-all solution.
Usage Guidelines:
After adding the script to the chart, traders can adjust the input parameters to their preferences. The anticipated profit targets will then be displayed, offering potential exit points. It's recommended to use these targets in conjunction with other technical indicators and chart patterns for a holistic trading strategy.
Features:
ATR Periods: The ATR is calculated using a user-defined number of periods. By default, it's set to 14 periods, a standard setting. The ATR gauges the asset's volatility, and adjusting the periods can increase or decrease its sensitivity to recent price fluctuations.
ATR Multiplier: The ATR is multiplied by a user-defined factor to determine the profit targets. With a default multiplier of 1.5, the profit target will be positioned 1.5 times the ATR above (for bullish trades) or below (for bearish trades) the current price.
Target Timeframe: Traders can choose the timeframe for which the profit targets are calculated. This feature enables viewing of profit targets from higher timeframes on the current chart. For instance, while observing a 15-minute chart, one can see the 1-hour profit targets.
Visual Indicators:
1. Two lines are plotted: the bullish target (in green) and the bearish target (in red).
2. At the onset of each new candle in the selected higher timeframe, labels indicating the precise profit target values are displayed.
3. Price scale labels also showcase the profit targets, offering a quick reference for potential exit points.
Customization:
Traders can modify the following parameters:
1. ATR Periods: Adjusting the number of periods can refine the ATR's sensitivity to price changes.
2. Multiplier for ATR: Tweaking this value alters the distance between the profit targets and the current price.
3. Timeframe for Profit Targets: A variety of timeframes are available, granting flexibility in viewing profit targets.
How to Use:
After integrating the script into their chart, traders can modify the input parameters as desired. The anticipated profit targets will then be overlaid on the chart, offering potential exit points. When used alongside other technical indicators and chart patterns, this tool can enhance trading decision-making.
Note: This script is designed for educational purposes and should not be considered as financial advice. Always conduct your own research and consult with a financial advisor before making any trading decisions.
ATR SpikeALWAYS TRADE THE DIRECTION OF THE TREND
This indicator is useful for 5-minute Bank Nifty intraday trading.
It compares the Open-Close value for a 5-minute bar with the current ATR value.
When a bar has higher than the ATR value then it means that the current bar has a higher Open-Close than the ATR.
This means that after a period of dull action, some action has taken place.
And more action will follow in the direction of the immediate trend.
It signals the start of momentum which I look for as a intraday trader.
Feel free to experiment and change values as it suits you.
I use it on Bank Nifty only on 5 minute timeframe with 14 period ATR.
MA Slope [EMA Magic]█ Overview:
The MA Slope calculates the slope based on a given moving average.
The Moving Average Slope indicator allows you to identify the direction and the strength of a trend.
It calculates the rate of change in percentage based on the user-defined moving average.
█ Calculation: This indicator calculates the slope based on the changes of moving average and normalizes it with Average True Range(ATR).
The default value of ATR is 7.I recommend not changing it unless you know exactly what are you doing.
█ Input Settings:
The settings are divided into three sections:
The first section is for time frame adjustments. Modify it separately from the chart, Allows you to use moving averages from different time frames.
In the second section, you can configure the base calculation,including Moving Average and Average True Range(ATR) settings.
In the third section, you can detect breakout and sudden change signals, which are highlighted in the background of the indicator.
Note that When you change the breakout limit value, it also affects the band limit indicator on your chart.
To avoid signal confusion, use only one at a time.
Here is the example the breakout signals:
█ Usage:
When the slope is increasing, it indicates an uptrend.
When the slope is decreasing, it indicates a downtrend.
When the slope is moving around zero and choppy, it indicates no specific trend or price is in a range zone.
Uptrend and Range Zone example:
Downtrend example:
Slope peaks on extreme levels can signal a potential trend reversal point.
Breakout of the upper or lower bands can be translated into a trading signal.Indicating that price will probably continue to move in the direction of the breakout.
Favor long setups when the slope is increasing or it is positive and favor short setups when the slope is decreasing or it is negative.
Fits with any moving average you use, e.g., EMA, WMA, MA Ribbon, and more.
█ Alert
Alerts are available for both signal conditions.
█ Recap
Take the time to study price movements alongside this indicator for a deeper understanding.Whether you're a novice or experienced trader, this indicator can come helpful
TrendCryptoThe _trendcrypto script is a trading strategy that uses a variety of indicators to identify potential trading opportunities, including the Parabolic SAR, ADX, and RSI.
The script first calculates the RMA, SMA, and trend direction. The RMA is a moving average that is weighted more heavily towards recent prices. The SMA is a simple moving average that gives equal weight to all prices in the period. The trend direction is calculated by comparing the current price to the price a certain number of periods ago.
The script then uses the RMA, SMA, and trend direction to identify potential trading opportunities. If the current price is above the RMA and the trend direction is up, the script will generate a buy signal. If the current price is below the RMA and the trend direction is down, the script will generate a sell signal.
The script also calculates the Parabolic SAR, which is a technical indicator that helps traders identify potential trend reversals. The Parabolic SAR is calculated using a formula that takes into account the high and low prices of a security over a specified period of time.
The script also calculates the ADX, which is a trend strength indicator. The ADX is calculated using a formula that takes into account the difference between the high and low prices of a security, as well as the difference between the closing price and the previous close.
The script also calculates the RSI, which is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is calculated over a specified period of time, and the default value in the code is 14.
The script also allows users to specify a stop loss and take profit level for each trade. The default stop loss level is 4% and the default take profit level is 7%.
Open, Open +/- EMA ATR Lines with LabelsThis indicator provides traders with a clear visualization of the opening price and its potential movement range for a specific timeframe, based on the Exponential Moving Average (EMA) of the Average True Range (ATR).
Features:
Opening Price Line: A green line representing the opening price for the chosen timeframe.
EMA ATR Lines:
An upper blue line, calculated as the opening price plus the EMA of the ATR.
A lower blue line, calculated as the opening price minus the EMA of the ATR.
Labels: Each line comes with a label on its right side, displaying the price level and, for the EMA ATR lines, the distance in pips from the opening price.
Custom Timeframes: Users can select their desired timeframe for calculations, making this tool versatile for different trading strategies.
Usage:
The EMA-smoothed ATR provides a measure of volatility. By plotting this value above and below the opening price, traders get a sense of potential price movement for the selected timeframe. This can be particularly useful for setting stop losses, take profit levels, or identifying breakout points.
For instance, if the price breaks above the upper EMA ATR line, it might indicate a potential upward move, especially if other market conditions align.
Customization:
Timeframe: Choose from various timeframes like 1-minute, 5-minutes, daily, weekly, and more.
ATR Length: Adjust the length of the ATR for more or less sensitivity.
This indicator is designed to offer traders a quick way to gauge potential price movement for their chosen timeframe. By combining the principles of the opening price and volatility measured by the EMA-smoothed ATR, it provides a straightforward yet powerful tool for various trading scenarios.
[Spinn] Average True RangeThe "Average True Range" indicator is a popular tool that measures price volatility. In this modified indicator, I present two methods of calculating ATR: the outdated classical one based on RMA (EMA, SMA, WMA), and the modernized one using the Super Smoother filter.
Why has exponential smoothing become outdated?
Exponential smoothing (EMA) has drawbacks, especially when it comes to identifying cyclical components in the data (and RMA is a variant of EMA). EMA creates phase shifts and distortions, making it less predictable and accurate in tracking real price movements. Modern filters, such as Super Smoother, offer a higher degree of adaptability and precision while ensuring significantly less lag, better smoothness, and superior cycle detection.
Why use more contemporary filters like Super Smoother?
The Super Smoother filter combines exponential smoothing and trigonometric functions for more accurate and smooth tracking of price movements. This filter enhances cycle tracking and reduces the lag often found when using EMA. As a result, signals based on Super Smoother are often more precise and representative of real price movements.
Drawbacks of other smoothing filters commonly used with ATR:
SMA. The lag is (N-1)/2, where N = period. This is terrible.
WMA. According to John F. Ehlers, "It appears that the WMA was invented by a trader who did not have a firm grasp of filter theory in hopes of reducing lag". It has been proven that WMA has worse suppression than the equivalent SMA, and WMA has more delay in the passband than the equivalent EMA. In short, WMA has drawbacks but no advantages compared to other popular moving averages.
It is also a good idea to use the median to average the results.
Test, experiment, use!
Consolidation indicator█ Overview
The "Consolidation Indicator" is a custom indicator for TradingView designed to identify consolidation periods in the price chart. Consolidation typically occurs when the price of an asset moves within a narrow range, and this indicator helps traders recognize such conditions. It can be a useful tool for traders looking to identify potential breakouts or periods of reduced volatility.
█ Indicator Settings
1 — Timeframe: This setting allows you to select the timeframe for which you want to analyze consolidation. You can choose from various timeframes available in TradingView.
2 — Price Smoothing Length: This parameter controls the smoothing of price data. You can adjust the value, with a minimum of 1, to control the level of smoothing applied to the price data.
3 — Average Range Length (range_len): This setting defines the length of the average range used in the calculation of the indicator. By default, it is set to 14.
4 — Threshold for Narrow Range (NR_threshold): The indicator will consider a price range as narrow if it falls below this threshold as a percentage of the average range. It is set to 80% by default.
5 — Consecutive Narrow Ranges for Consolidation: This parameter allows you to specify how many consecutive narrow price ranges are required to confirm a consolidation period. The default value is 3.
6 — Candle Color: You can choose the color for the consolidation candles. The default is a bright green color.
█ Indicator Output
The indicator visually displays consolidation and breakout periods on the price chart using colored candles and breakout icons.
• Candles: During a consolidation period, the indicator colorizes the candles in a specified color (default is green) with a transparency that decreases as the number of consecutive narrow ranges increases. This allows you to easily spot consolidation periods on the chart.
• Breakout Icons: The indicator also places a breakout icon (💥) below the price chart to indicate potential breakout opportunities. When a breakout condition is met, the icon appears with an orange color.
█ Alerts
The indicator provides two alert conditions:
1 — Consolidation Begins: This alert triggers when a consolidation period starts. It indicates that the price is moving within a narrow range compared to the average range.
2 — Breakout: This alert triggers when a potential breakout from the consolidation is detected.
█ How to Use
1 — Apply the "Consolidation Indicator" to your TradingView chart by adding it as a custom indicator.
2 — Customize the indicator settings based on your trading preferences, such as timeframe, smoothing length, and threshold for a narrow range.
3 — Monitor the chart for colored candles. The indicator will color candles to highlight consolidation periods.
4 — Look for the breakout icon (💥) below the chart, which indicates potential breakout opportunities.
5 — Set up alerts to be notified when a consolidation begins or a breakout is detected, helping you stay on top of potential trading opportunities.
Keep in mind that this indicator is a tool to assist in identifying consolidation periods, and it should be used in conjunction with other analysis methods for comprehensive trading decisions.
Energy Remainder based on ATR % passedDescription:
This indicator presents a visual representation of the percentage of the Daily Average True Range (ATR) that an asset has covered. The core idea behind the indicator is to gauge the remaining “ energy ” or potential price movement capacity of an asset within the trading day. By comparing the current intraday range to the daily ATR, traders can determine if there's still room for the asset to move, and hence, if it's an opportune moment to take a position.
Concept:
The indicator primarily helps in understanding how much of the daily ATR an asset has covered. If an asset has covered less than 50% of the ATR, it implies that there's still significant energy left. In other words, there's a good potential for further movement, making it a viable point to consider entering a trade. Conversely, if an asset has covered more than 50% of the ATR, the remaining energy or potential for further significant movement is low. In such scenarios, entering a trade might be late, as the potential returns could be limited.
Usage:
1. Green Bars: Represents the asset has covered less than 50% of its daily ATR. This suggests there's still ample energy left, and the asset has the potential for further movement.
2. Orange Bars: Indicates the asset has covered more than 50% but less than 100% of its daily ATR. It implies that the asset has used a good chunk of its daily range, but there's still some energy left.
3. Red Bars: Represents the asset has covered more than 100% of its daily ATR. This typically suggests that the asset has exhausted its daily range potential, and there's limited energy left for significant movement.
Considerations:
While this indicator provides valuable insights into the potential price movement of an asset, it's always recommended to use it in conjunction with other technical analysis tools and methods for a comprehensive trading approach.
Happy trading!
ATR Multiples PlottedInspired by @jeffsuntrading and @Fred6724 's ATR% multiple from 50-MA .
There are no catch-all values, however a high of 6 and a low of -4 generally has been valuable to me. I tend to look at the historical highs and lows of the indicator, and adjust the Value High and Value Low accordingly to get an idea when profit-taking may be sensible.
The essence is the difference between price and the selected moving average, measured in ATRs.
GKD-C Trend Magic [Loxx]The Giga Kaleidoscope GKD-C Trend Magic is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Trend Magic
Trend Magic is a very old MT4 indicator used in Forex trading. Trend Magic utilizes the Average True Range (ATR) and the Commodity Channel Index (CCI) to determine market conditions. Firstly, the ATR is calculated based on a specific period to gauge market volatility. Using this, potential upward and downward thresholds are determined from the high and low prices, respectively. The CCI is then computed for a given period using a typical price (average of high, low, and close). Depending on the CCI's value, the algorithm sets a threshold value and assigns a corresponding color, green for positive CCI values indicating potential upward momentum, and red for negative values, indicating potential downward momentum.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
GKD-C Alpha Trend [Loxx]The Giga Kaleidoscope GKD-C Alpha Trend is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Alpha Trend
Alpha Trend first determines the average true range (ATR) and computes up and down trends based on the ATR. It then evaluates conditions based on relative strength index (RSI) or money flow index (MFI) to define a value named 'Alpha'. The algorithm then compares the current 'Alpha' value to its previous values to determine potential buy or sell signals. Finally, it counts the number of bars (or periods) since the last buy or sell signal was triggered and uses this information generate signals.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
Average True Range (ATR) % KTSLSome traders calculate using percentages when trading. The original ATR indicator calculates using price movements, so it differs for each stock. To avoid this, I changed the ATR indicator to show price movement as a percentage. The red line is the percentage value of the volatility of the original ATR indicator. The white line is 1.6 times the original indicator. The green line is 2.5 times the white line. These values can be adjusted. I wish you good luck.
True Range Moving Average Deviation🔶 Overview
The True Range Moving Average Deviation Indicator (TRMAD) is a technical analysis tool that combines elements of price deviation, volatility, and overbought/oversold conditions.
🔶 Key Components
Current price (Close) : most recent closing price of the asset.
Moving Average (MA) : represents a smoothed trendline of the asset's closing prices over a specified period. By default, TRMAD uses the Simple Moving Average (SMA) with a 20-period setting.
Average True Range (ATR) : reflects the average price range between the high and low over a given time frame. By default, TRMAD uses a 14-period ATR setting with a Simple Moving Average (SMA) calculation. ATR quantifies the historical price volatility of the asset, which is crucial for normalizing the price deviation.
🔶 Calculation
(Close - MA) / ATR
🔶 Interpretation
When TRMAD is above +3 ATR , it is often considered an indication that the asset may be overbought, suggesting a potential reversal or correction to the downside.
When TRMAD is below -3 ATR , it is often considered an indication that the asset may be oversold, suggesting a potential reversal or bounce to the upside.
TRMAD values around 0 ATR may indicate a balanced market condition.
🔶 Usage
🔹 Overbought and Oversold Conditions:
TRMAD can help identify overbought and oversold conditions. When TRMAD reaches or exceeds certain user-defined thresholds (e.g., +3 ATR or -3 ATR), it can signal that the asset is in an extreme condition.
Traders can use these extreme conditions to adjust their positions or look for potential reversal opportunities.
🔹 Divergence Analysis:
Traders often analyze divergences between the TRMAD indicator and price movements. For example, if the price is making higher highs while TRMAD is making lower highs (bearish divergence), it could indicate a potential trend reversal.
🔹 Trend Confirmation:
TRMAD can be used in conjunction with other technical indicators to confirm trends. For example, if TRMAD is consistently positive during an uptrend, it can provide confirmation of the trend's strength.
Positive TRMAD : When TRMAD is positive but hasn't reached the overbought threshold (e.g., +3 ATR), it suggests that there is some bullish momentum, but traders may exercise caution and look for other confirming signals before considering a long position.
Negative TRMAD : When TRMAD is negative but hasn't reached the oversold threshold (e.g., -3 ATR), it suggests some bearish sentiment, but traders may want to seek additional confirmation before considering a short position.
🔹 Risk Management:
Traders can use TRMAD as part of their risk management strategy. For instance, if TRMAD suggests that an asset is overbought, a trader might consider tightening their stop-loss orders to manage potential downside risk.
🔶 Credits
The idea about this indicator came from Fabio Figueiredo (Vlad)
VWAP Divergence | Flux ChartsThe VWAP Divergence indicator aims to find divergences between price action and the VWAP indicator. It uses filters to filter out many of the false divergences and alert high quality, accurate signals.
Red dots above the candle represent bearish divergences, while green dots below the candle represent bullish divergences.
The main filter for divergences focuses on ATR and the price movement in the past candles up to the lookback period. Divergences are determined when a price movement over the lookback period is sharp enough to be greater/less than the ATR multiplier multiplied by the ATR.
Settings
Under "Divergence Settings", both the lookback period and ATR multiplier can be adjusted.
Due to the nature of the calculations, the ATR multiplier and the lookback period should be set lower on higher time frames. As price movements become more averaged, for example on the 15 minute chart, sharp price movements happen less frequently and are often contained in fewer candles as they happen on lower time frames. Less volatile stocks such as KO, CL, or BAC should also use lower ATR multipliers and lower lookback periods.
Under "Visual Settings", you can change the color of the VWAP line, show alternating VWAP colors, adjust divergence signal size, and show the VWAP line.
GKD-C Trend Direction [Loxx]The Giga Kaleidoscope GKD-C Trend Direction is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Trend Direction
Trend Direction relies both on the Average True Range (ATR) – a measure of market volatility – and the market's closing price. If ATR Smoothing is set to greater than 0, the ATR is smoothed using an Exponential Moving Average (EMA). This ATR is then multiplied by a factor to derive a threshold. Using this threshold and the market's close price, the code determines the position of the plotted line. The plotted line's color changes based on the close price's relationship to this derived value: green if the close price is above, and red if below, signifying the trend's upward or downward direction respectively.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
ATR Adaptive RSI OscillatorThe " ATR Adaptive RSI Oscillator " is a versatile technical analysis tool designed to help traders make informed decisions in dynamic market conditions. It combines the Relative Strength Index (RSI) with the Average True Range (ATR) to provide adaptive and responsive insights into price trends.
Key Features :
Adaptive RSI Periods : The indicator introduces the concept of adaptive RSI periods based on the ATR (Average True Range) of the market. When enabled, it dynamically adjusts the RSI calculation period, offering longer periods during high volatility and shorter periods during low volatility. This adaptability enhances the accuracy of RSI signals across varying market conditions.
Volume-Based Smoothing : The indicator includes a smoothing feature that computes a time-decayed weighted moving average of RSI values over the last two bars, using volume-based weights. This approach offers a time-sensitive smoothing effect, reducing noise for a clearer view of trend strength compared to the standard RSI.
Divergence Detection : Traders can enable divergence detection to identify potential reversal points in the market. The indicator highlights regular bullish and bearish divergences, providing valuable insights into market sentiment shifts.
Customizable Parameters : Traders have the flexibility to customize various parameters, including RSI length, adaptive mode, ATR length, and divergence settings, to tailor the indicator to their trading strategy.
Overbought and Oversold Levels : The indicator includes overbought (OB) and oversold (OS) boundary lines that can be adjusted to suit individual preferences. These levels help traders identify potential reversal zones.
The "ATR Adaptive RSI Oscillator" is a powerful tool for traders seeking to adapt their trading strategies to changing market dynamics. Whether you're a trend follower or a contrarian trader, this indicator provides valuable insights to support your decision-making process.
ATR Trend Reversal Zone indicatorThis indicator helps avoid taking reversal trades too close to the 21 EMA, which may fail since the market often continues its trend after retracing from the 21 EMA level. It does not generate a direct signal for reversal trades but rather indicates points where you can consider potential reversal trades based on your trading methodology
This script defines an indicator that calculates the 21 Exponential Moving Average (EMA) and the Average True Range (ATR) for a given period. It then computes the distance between the most recent closing price and the 21 EMA in terms of ATR units. If this distance is equal to or greater than 3 ATRs, a small green circle is plotted below the corresponding bar on the chart, indicating a potential reversal condition.
Smoothing ATR bandThere are two bands calculated with the ATR and I added "Smoothing" into the script.
Smoothing ATR with multiplier can display two bands above and below the price.
We can ONLY find some ATR bands in Community Scripts with "Basic" setting which is used to set Stop Loss.
And yet , Smoothing ATR with multiplier is capable of making traders manifestly recognize OverBought & OverSold.
FurtherMore, I added a condition with "plotshape", which is "Stop Hunt"
Stop Hunt is an absolutely usual strategy to clean the leverage and it always makes high volatility moves.
When high> above band and close< above band , long signal, it means it had been abundantly bought but the larger traders weren't satisfied; therefore, they quickly sold out to lower the price. The sell condition is on the contrary.
The signals mainly make traders manifestly recognize OverBought & OverSold.
TTP SuperTrend ADXThis indicator uses the strength of the trend from ADX to decide how the SuperTrend (ST) should behave.
Motivation
ST is a great trend following indicator but it's not capable of adapting to the trend strength.
The ADX, Average Directional Index measures the strength of the trend and can be use to dynamically tweak the ST factor so that it's sensitivity can adapt to the trend strength.
Implementation
The indicator calculates a normalised value of the ADX based on the data available in the chart.
Based on these values ST will use different factors to increase or reduce the factor use by ST: expansion or compression.
ST expansion vs compression
Expanding the ST would mean that the stronger a trends get the ST factor will grow causing it to distance further from the price delaying the next ST trend flip.
Compressing the ST would mean that the stronger a trends get the ST factor will shrink causing it to get closer to the price speeding up the next ST trend flip.
Features
- Alerts for trend flip
- Alerts for trend status
- Backtestable stream
- SuperTrend color gets more intense with the strength of the trend
Advanced Weighted Residual Arbitrage AnalyzerThe Advanced Weighted Residual Arbitrage Analyzer is a sophisticated tool designed for traders aiming to exploit price deviations between various asset pairs. By examining the differences in normalized price relations and their weighted residuals, this indicator provides insights into potential arbitrage opportunities in the market.
Key Features:
Multiple Relation Analysis: Analyze up to five different asset relations simultaneously, offering a comprehensive view of potential arbitrage setups.
Normalization Functions: Choose from a variety of normalization techniques like SMA, EMA, WMA, and HMA to ensure accurate comparisons between different price series.
Dynamic Weighting: Residuals are weighted based on their correlation, ensuring that stronger correlations have a more pronounced impact on the analysis. Weighting can be adjusted using several functions including square, sigmoid, and logistic.
Regression Flexibility: Incorporate linear, polynomial, or robust regression to calculate residuals, tailoring the analysis to different market conditions.
Customizable Display: Decide which plots to display for clarity and focus, including normalized relations, weighted residuals, and the difference between the screen relation and the average weighted residual.
Usage Guidelines:
Configure the asset pairs you wish to analyze using the Symbol Relations group in the settings.
Adjust the normalization, volatility, regression, and weighting functions based on your preference and the specific characteristics of the asset pairs.
Monitor the weighted residuals for deviations from the mean. Larger deviations suggest stronger arbitrage opportunities.
Use the difference plot (between the screen relation and average weighted residual) as a quick visual cue for potential trade setups. When this plot deviates significantly from zero, it indicates a possible arbitrage opportunity.
Regularly update and adjust the parameters to account for changing market conditions and ensure the most accurate analysis.
In the Advanced Weighted Residual Arbitrage Analyzer , the value set in Alert Threshold plays a crucial role in delineating a normalized band. This band serves as a guide to identify significant deviations and potential trading opportunities.
When we observe the plots of the green line and the purple line, the Alert Threshold provides a boundary for these plots. The following points explain the significance:
Breach of the Band: When either the green or purple line crosses above or below the Alert Threshold , it indicates a significant deviation from the mean. This breach can be interpreted as a potential trading signal, suggesting a possible arbitrage opportunity.
Convergence to the Mean: If the green line converges with the purple line , it denotes that the price relation has reverted to its mean. This convergence typically suggests that the arbitrage opportunity has been exhausted, and the market dynamics are returning to equilibrium.
Trade Execution: A trader can consider entering a trade when the lines breach the Alert Threshold . The return of the green line to align closely with the purple line can be seen as a signal to exit the trade, capitalizing on the reversion to the mean.
By monitoring these plots in conjunction with the Alert Threshold , traders can gain insights into market imbalances and exploit potential arbitrage opportunities. The convergence and divergence of these lines, relative to the normalized band, serve as valuable visual cues for trade initiation and termination.
When you're analyzing relations between two symbols (for instance, BINANCE:SANDUSDT/BINANCE:NEARUSDT ), you're essentially looking at the price relationship between the two underlying assets. This relationship provides insights into potential imbalances between the assets, which arbitrage traders can exploit.
Breach of the Lower Band: If the purple line touches or crosses below the lower Alert Threshold , it indicates that the first symbol (in our example, SANDUSDT ) is undervalued relative to the second symbol ( NEARUSDT ). In practical terms:
Action: You would consider buying the first symbol ( SANDUSDT ) and selling the second symbol ( NEARUSDT ).
Rationale: The expectation is that the price of the first symbol will rise, or the price of the second symbol will fall, or both, thereby converging back to their historical mean relationship.
Breach of the Upper Band: Conversely, if the difference plot touches or crosses above the upper Alert Threshold , it suggests that the first symbol is overvalued compared to the second. This implies:
Action: You'd consider selling the first symbol ( SANDUSDT ) and buying the second symbol ( NEARUSDT ).
Rationale: The anticipation here is that the price of the first symbol will decrease, or the price of the second will increase, or both, bringing the relationship back to its historical average.
Convergence to the Mean: As mentioned earlier, when the green line aligns closely with the purple line, it's an indication that the assets have returned to their typical price relationship. This serves as a signal for traders to consider closing out their positions, locking in the gains from the arbitrage opportunity.
It's important to note that when you're trading based on symbol relations, you're essentially betting on the relative performance of the two assets. This strategy, often referred to as "pairs trading," seeks to capitalize on price imbalances between related financial instruments. By taking opposing positions in the two symbols, traders aim to profit from the eventual reversion of the price difference to the mean.
Double Supertrend HTF FilterDouble Supertrend HTF Filter: A Comprehensive Market Direction Tool
The Double Supertrend HTF Filter is an innovative tool designed for traders who seek a more holistic view of market trends. At its core, the indicator combines two Supertrends from different higher timeframes, providing a layered perspective on the market's direction. Instead of juggling between multiple timeframes or charts, traders get a consolidated view with this indicator. One of its standout features is the horizontal line at the bottom of the chart, which visually represents the alignment of the two Supertrends – a simple yet powerful way to gauge the combined sentiment of the two higher timeframes on your chart.
The Supertrend Indicator: Origins and Rationale
The Supertrend indicator, a popular tool among traders, was developed by Olivier Seban. At its essence, the Supertrend is a trend-following indicator, designed to identify and visualize the current market trend. It operates using average true range (ATR) values and price data, effectively smoothing out market noise to present clearer trend directions. When prices move with a consistent momentum upwards or downwards, the Supertrend remains below or above the price respectively, signaling the prevailing trend's direction. The rationale behind the Supertrend is its ability to adapt to price volatility. By factoring in the average true range, it dynamically adjusts itself, ensuring that it's not just based on price but also the inherent volatility of the market. This adaptability makes it a valuable tool for traders, offering insights into potential trend reversals and potential entry or exit points.
Filter Usage
The main idea behind the Double Supertrend HTF is to use the indicator as a filter in addition to a signal indicator to your liking. To illustrate, consider incorporating it with a MACD Oscillator, such as the one detailed in this article: When the solid line at the bottom of the chart turns green, it signals that both supertrends are up and thus allows for long positions, indicating a bullish sentiment across both the chosen higher timeframes. Conversely, a red line permits short positions, hinting at a bearish trend. Should the line turn yellow, it's a sign of caution. The market is indecisive, and it might be prudent to refrain from taking any trades until a clearer direction emerges.
Features of the Indicator
Understanding that traders have different preferences, the Double Supertrend HTF Filter comes with customizable features. With the easy user interface you can change the timeframe, ATR and factor to your preferred trading strategy. The default settings are set for the 30 minutes and 4 hour timeframe, which is my personal preference for scalping trades on lower timeframes (eg. 1min, 5 min, 10 min, 15 min). While the dual Supertrend lines offer valuable insights, a chart can become cluttered when combined with other indicators. Therefore, traders have the option to toggle on or off the display of the Supertrends. This ensures that you have the flexibility to maintain a clean chart view while still benefiting from the insights the tool provides at the bottom of the chart.
A Note on Usage
It's essential to highlight that the Double Supertrend HTF Filter is for educational purposes. While it offers a unique perspective on market trends and can be a valuable addition to a trader's toolkit, it's merely an example of how one can use the Supertrend as a filter. Always conduct thorough research and consider your trading strategy before making any decisions.
If you have any comments or ideas how to combine this filter with other indicators feel free to leave a comment.
