Rally Base Drop SND Pivots [LuxAlgo]The Rally Base Drop SND Pivots indicator uses "Rally", "Base", and "Drop" Candles to determine pivot points at which supply and demand (SND) levels are drawn.
🔶 USAGE
Rally, Base, and Drop (RBD) candles create a formula for seeing market structure through a fixed methodology. We are able to use this concept to point out pivot areas where Rallies and Drops directly meet.
The RBD SND Pivots are similar to traditionally identified "fractal" pivot points, with one key difference.
RBD SND Pivots detect a specific number of Rally and Drop candles directly back-to-back, requiring one side of the pivot to contain entirely green candles and the other to be entirely red candles or vice versa.
Since these pivot levels are based on Rally, Base, and Drop candles, the method directly implements rigid logic to further structure a trading system when utilizing these pivot levels with traditional SND concepts.
Furthermore, by implementing this logic when looking for pivots, a significant portion of potential noise is naturally filtered out.
🔶 DETAILS
In typical SND systems, the term "Base" is used for multiple meanings.
In this indicator, the base is a product of a pivot being formed. Once a Pivot is identified, the "Base" is marked as the first Rally or Drop of the second half of the pivot formation.
Once the pivot is identified, the high or low of the base candle is used to measure the pivot level.
🔶 SETTINGS
Length: Sets the number of Rally and Drop Candles that the script will require to identify pivots.
Ex. "3" = 3 Rally followed by 3 Drop
Historical Lookback: Hides historic levels based on a bar # Lookback from the current bar.
When set to 0, all Levels will display. (0 by default)
BASE
Indecisive CandlesAn Indecisive Candle, often referred to as a Base Candle, is a pivotal element in technical analysis, particularly for identifying institutional supply and demand zones. These candles are characterized by their small bodies and long wicks, reflecting a balance between buyers and sellers, indicating a potential pause or consolidation in the market.
To calculate whether a candle qualifies as an indecisive candle based on the criterion that its body (the absolute difference between its open and close prices) is less than or equal to 50% of the total range of the candle (the difference between its high and low prices).
Key Features:
Small Real Body: Signifies minimal movement from open to close, indicating market indecision.
Long Upper and Lower Wicks: Show that both bulls and bears attempted to control the price, but neither succeeded, leading to a standoff.
Formation Context: Typically found at the end of a strong trend or within a consolidation phase, hinting at a potential reversal or continuation pattern.
Usage in Identifying Institutional Supply and Demand:
Supply Zones: When an Indecisive Candle forms after a rally, it can mark the onset of an institutional supply zone, suggesting that large entities are starting to sell, leading to potential downward pressure.
Demand Zones: Conversely, when this candle appears after a downtrend, it often signals the emergence of a demand zone, where institutions begin to accumulate, anticipating a price increase.
Trading Strategies:
Zone Identification: Use Indecisive Candles to pinpoint key supply and demand zones on your chart, enhancing the accuracy of your support and resistance levels.
Confirmation: Look for confirmation from subsequent price action or volume spikes to validate the presence of institutional activity before making trading decisions.
Risk Management: Place stop-loss orders beyond the wicks of these candles to protect against false breakouts or continued indecision.
Conclusion:
Indecisive Candles are essential tools for traders looking to understand market sentiment and institutional behavior. By mastering their identification and interpretation, you can enhance your ability to spot high-probability trading opportunities and manage risks effectively.
Identify Rally, Base & Drop CandleThis Pine Script indicator identifies and labels rally, base, and drop candles on your chart, aiding traders in recognizing key price action phases. Rally candles represent periods of upward price momentum, typically characterized by strong bullish movement. Base candles indicate consolidation or sideways movement, suggesting a temporary pause in the trend. Drop candles signify downward price momentum, often accompanied by strong bearish movement. By identifying these distinct candle types, traders can gain insights into the market's current phase and potential future price movements.
Key Features:
Identifies rally, base, and drop candles based on customizable criteria such as body percentage.
Labels each candle type for easy visualization and interpretation.
Helps traders identify trend continuation or potential reversal points.
Compatible with various timeframes and trading instruments.
Customizable parameters allow traders to adjust the sensitivity of the identification process to suit their trading strategies.
Usage Instructions:
Apply the indicator to your chart.
Configure the settings according to your preferences
Observe the labeled candles on the chart to identify rally, base, and drop phases.
Consider additional analysis and risk management strategies to confirm trading decisions and manage risk effectively.
Disclaimer: This indicator is provided for informational and educational purposes only. It is not intended as financial advice or trading recommendations. Trading involves risks, and it's essential to conduct thorough research and practice proper risk management techniques.
Incomplete Session Candle - Incomplete Timeframe Candle Marker The "Incomplete Session Candle - Incomplete Timeframe Candle Marker" is an advanced tool tailored for technical analysts who understand the importance of accurate timeframes in their charting. While the indicator is not limited to the Indian market, its genesis is rooted in the nuances of trading sessions like those in India, which span 375 minutes from 9:15 AM to 3:30 PM.
Key Features:
Detects if the current timeframe is intraday (minutes or hours).
Calculates the expected duration of the candle for the chosen timeframe.
Highlights candles that don't achieve their expected session duration by placing a cross shape above the bar.
Compatible across various intraday timeframes, aiding traders in spotting discrepancies promptly.
Why We Made This: Not Just for India:
While we looked at the Indian market, this indicator works everywhere. Regular timeframes like 30 minutes, 1 hour, and 2 hours often end with incomplete candles, especially at the end of the trading day. For example:
A 30-minute timeframe makes 13 candles, but the last one is only 15 minutes long.
A 1-hour timeframe shows 7 candles, but the last one is just the last 15 minutes.
By switching to different timeframes like 25 minutes, 75 minutes, and 125 minutes, you get more complete information for better trading decisions. Learn more about this in our article: "Power of 25, 75, and 125-Minute Timeframes in the Indian Market", recognized by Trading View's Editors' Pick.
Benefits:
The indicator extends its benefits even to users without access to certain timeframes. It accommodates traders using a 1-hour timeframe (pertaining to Indian traders). By employing this indicator, traders consistently remain mindful of incomplete candles within their chosen timeframe
For those who utilize concepts like RBR, RBD, DBR, and DBD, this indicator is paramount. An incomplete candle can skew analysis, leading to potential misinterpretations of base or leg candles.
Final thoughts:
In markets like the Indian stock market, adopting such a tool is not just beneficial, but necessary. Whether you have access to unconventional timeframes or are using traditional ones, recognizing and accounting for the limitations of incomplete candles is critical & it's important to know if your candles fit the timeframe properly. This indicator gives you a better view of the market, which helps you make smarter trades.
Lastly, Thank you for your support! Your likes & comments. If you want to give any feedback then you can give in comment section.
Let's conquer the markets together!
Offset ProjectIntended for use with CPI symbols like:
CPIAUCNS (all items)
CPILFENS (core)
Shows the CPI values from a year ago, next to the current values. This makes it easier to visualize the base effects .
Has a ' max inflation rate ' parameter. This is shown as a red line. So for example, if it's set to 3, then CPI must stay below the red line in in order for the inflation rate to stay below 3.
TTP QFL OptimiserThis tool is designed to help finding the best take profit and stop loss levels when trading with QFL bases (Quick Fingers Luc).
You can use it to see the average drawdown among all historic bases broken for an asset and then find the drawdowns that are more frequent using the percentile parameters provided.
For example, by knowing that 98% of the bases got broken with a drawdown of up to 5% can become extremely useful for deciding where to place your take profit or stop loss levels.
It supports QFL 1H, 2H and 4H but make sure to set the chart timeframe to a lower timeframe than QFL to obtain valid results.
Two percentiles are provided to be able to evaluate potential TP and SL at the same time.
Steps:
- Load an asset in the 15min TF
- Select the QFL version: 1H more deals / lower quality vs 4H less deals/ better quality
- Find a percentile that triggers enough deals (example: 70) and then another percentile that doesn't get hit too much (example: 98)
- Confirm the values p1 and p2 provided in the table and the white and grey lines for the results of which drawdown percentages correspond to such selection of percentiles
Once having p1 and p2 use your backtesting and forward testing tools to confirm and adjust accordingly.
Flag DetectorThis script attempts to find consolidations or retracements within the context of a previous uptrend - basically looking for flag type patterns. It first measures an initial move (referred to as the flag pole in this script) and then looks for consolidation after that move within a certain range. If the consolidation is within the rage, it plots a dot under the candle to show you the consolidation areas. It's not fool proof, but seems to do a decent job of identifying pullbacks and sideways consolidations reasonably well.
Carrey's Structure Supply and DemandThis script uses basic Rally Base Rally, Rally Base Drop, Drop Base Drop, and Drop Base Rally concepts to draw supply and demand zones. While the script is designed to account for multiple (up to 5) candles in the "base" phase, the box it will draw will only be the high and low of the last candle before the final Rally/Drop candle.
Adaptive Momentum BaseThe Adaptive Momentum Base, (AMB), is a momentum based indicator which measures the momentum change in the recent candles and changes the colour of bar which it occurred on.
Momentum is used as a confirmation to show that the market may move in favour of your direction if the momentum is present for that direction.
Trade Example:
If you have long/short positions open and the market is moving in your favour, the signal will indicate to hold on to the position for a while has the price action has not been completed.
Script Explained:
AMB works by using the velocity created by the bars during the period of the "lookback" which is then used to formulate the momentum. The momentum is then compared against the previous bars and if a spike in momentum occurs, the indicator will follow to give a signal.
(IK) Base Break BuyThis strategy first calculates areas of support (bases), and then enters trades if that support is broken. The idea is to profit off of retracement. Dollar-cost-averaging safety orders are key here. This strategy takes into account a .1% commission, and tests are done with an initial capital of 100.00 USD. This only goes long.
The strategy is highly customizable. I've set the default values to suit ETH/USD 15m. If you're trading this on another ticker or timeframe, make sure to play around with the settings. There is an explanation of each input in the script comments. I found this to be profitable across most 'common sense' values for settings, but tweaking led to some pretty promising results. I leaned more towards high risk/high trade volume.
Always remember though: historical performance is no guarantee of future behavior . Keep settings within your personal risk tolerance, even if it promises better profit. Anyone can write a 100% profitable script if they assume price always eventually goes up.
Check the script comments for more details, but, briefly, you can customize:
-How many bases to keep track of at once
-How those bases are calculated
-What defines a 'base break'
-Order amounts
-Safety order count
-Stop loss
Here's the basic algorithm:
-Identify support.
--Have previous candles found bottoms in the same area of the current candle bottom?
--Is this support unique enough from other areas of support?
-Determine if support is broken.
--Has the price crossed under support quickly and with certainty?
-Enter trade with a percentage of initial capital.
-Execute safety orders if price continues to drop.
-Exit trade at profit target or stop loss.
Take profit is dynamic and calculated on order entry. The bigger the 'break', the higher your take profit percentage. This target percentage is based on average position size, so as safety orders are filled, and average position size comes down, the target profit becomes easier to reach.
Stop loss can be calculated one of two ways, either a static level based on initial entry, or a dynamic level based on average position size. If you use the latter (default), be aware, your real losses will be greater than your stated stop loss percentage . For example:
-stop loss = 15%, capital = 100.00, safety order threshold = 10%
-you buy $50 worth of shares at $1 - price average is $1
-you safety $25 worth of shares at $0.9 - price average is $0.966
-you safety $25 worth of shares at $0.8. - price average is $0.925
-you get stopped out at 0.925 * (1-.15) = $0.78625, and you're left with $78.62.
This is a realized loss of ~21.4% with a stop loss set to 15%. The larger your safety order threshold, the larger your real loss in comparison to your stop loss percentage, and vice versa.
Indicator plots show the calculated bases in white. The closest base below price is yellow. If that base is broken, it turns purple. Once a trade is entered, profit target is shown in silver and stop loss in red.
Pocket Pivot IndicatorFrom Gil Morales and Chris Kacher (O'Neil's disciples). Designed to find buy points in bases and continuation buy points in an uptrend. The volume today must be greater then the maximum down volume of the past 10 trading days. Recommended to use in conjunction with the 10 day and/or 50 day moving average.
Typical use :
Scan for pocket pivots.
Is stock strong fundamentally? i.e- leader in it's sector
Has the stock developed a base ?(see O'Neil's work for base discussion)
Is the stock breaking through or bouncing off the 10 period sma? (can use 50 sma too)
If so.. a possible buy.
Cheers
David
