Uptrick: Momentum Channel Indicator
### 🌟 **Uptrick: Momentum Channel Indicator (MC_Ind)** 🌟
The **"Uptrick: Momentum Channel Indicator"** is a powerful tool designed to help traders gauge market momentum and identify potential overbought or oversold conditions. Whether you're a day trader, swing trader, or long-term investor, this indicator can be your compass 🧭 in the complex world of trading.
### 🎯 **Purpose of the Indicator**
The primary goal of the **Momentum Channel Indicator** is to measure the deviation of price from its moving average (the mid-point) and to smooth this deviation to identify momentum shifts. By plotting overbought and oversold levels, the indicator helps traders spot potential reversal points where the market might change direction, offering valuable entry or exit signals.
### 🔧 **Inputs & Parameters**
Let's break down the input parameters that you can adjust to tailor the indicator to your trading style:
1. **`length1` (Channel Length) 📏**: This is the period over which the moving average (mid-point) and price deviation are calculated. The default value is 14, meaning the last 14 bars are considered for calculations.
2. **`length2` (Smoothing Length) 🧘**: This parameter controls the smoothing of the channel index, with a default value of 28. The higher the value, the smoother the momentum line, reducing noise and making trends more visible.
3. **`overbought1` & `overbought2` (Overbought Levels) 🔴**: These levels, set at 70 and 65 by default, represent the threshold above which the market is considered overbought, potentially signaling a selling opportunity.
4. **`oversold1` & `oversold2` (Oversold Levels) 🟢**: Similarly, these levels, set at -70 and -65, mark the threshold below which the market is considered oversold, indicating a potential buying opportunity.
### 🛠️ **How the Indicator Works**
Now, let's dive into the mechanics of the Momentum Channel Indicator:
1. **Mid-Point Calculation 🏁**: The mid-point is calculated using a simple moving average (SMA) of the closing prices over the `length1` period. This mid-point acts as a reference line from which deviations are measured.
2. **Price Deviation 📊**: The price deviation is the absolute difference between the closing price and the mid-point, smoothed over the same period (`length1`). This represents the typical price movement away from the mid-point.
3. **Channel Index 📉**: The channel index is calculated by dividing the price deviation by a fraction (0.01) of the mid-point, providing a normalized measure of how far the price has deviated from the average.
4. **Smoothing of the Channel Index 🌊**: The smoothed index (`mci1`) is calculated by applying a smoothing filter (SMA) over the channel index using the `length2` parameter. This helps reduce noise and highlight the true momentum of the market.
5. **Momentum Lines 📈**:
- **`mci1`**: The main momentum line, representing the smoothed channel index.
- **`mci2`**: A secondary momentum line, which is a further smoothed version of `mci1` using a 6-period SMA.
6. **Signal Lines 🚦**:
- **Overbought & Oversold Levels**: Horizontal lines plotted at `overbought1`, `overbought2`, `oversold1`, and `oversold2` levels serve as visual cues for overbought and oversold conditions.
- **Zero Line**: A central reference line at 0, indicating neutral momentum.
### 📈 **How to Use the Indicator**
#### 1. **Day Traders ⚡**
For day traders, the Momentum Channel Indicator can be a quick signal generator for short-term trades. Here's how you can use it:
- **Identify Entry Points 🎯**: Look for a **bullish crossover** when `mci1` crosses above `mci2` from below the `oversold1` level. This signals a potential upward reversal.
- **Spot Exit Points 🏁**: Watch for a **bearish crossunder** when `mci1` crosses below `mci2` from above the `overbought1` level. This could indicate a downward reversal.
- **Scalping 🔄**: In a fast-moving market, use the indicator to scalp by entering and exiting trades at these crossover points, with a tight stop-loss strategy.
#### 2. **Swing Traders 🎢**
Swing traders benefit from using the Momentum Channel Indicator to identify potential reversal points over a longer period:
- **Trend Confirmation 📊**: Use the smoothing effect of `mci2` to confirm trends. If `mci2` remains consistently above 0, it indicates a strong bullish trend, and vice versa.
- **Overbought/Oversold Reversals 🚀**: Enter trades when the price approaches the overbought or oversold levels (`overbought1`, `oversold1`). Combine this with other indicators, such as RSI, for more reliable signals.
- **Hold Positions 🧗**: Let the momentum lines guide your hold strategy. If the momentum lines stay aligned (both `mci1` and `mci2` are moving in the same direction), consider holding the position until a crossover or reversal signal appears.
#### 3. **Long-Term Investors 🏦**
For long-term investors, the Momentum Channel Indicator helps in fine-tuning entry and exit points based on broader market momentum:
- **Divergence Analysis 📐**: Look for divergence between the price and the momentum lines. If the price makes new highs but the momentum lines do not, it could signal a weakening trend and a potential reversal.
- **Strategic Entry/Exit 🏹**: Use the `overbought2` and `oversold2` levels to strategically enter or exit positions. These secondary levels provide an early warning before the market reaches extreme conditions.
- **Risk Management 🛡️**: The indicator can also be used as part of a risk management strategy by identifying when to reduce exposure in overbought markets or increase exposure in oversold markets.
### 🖼️ **Visualization & Interpretation**
The Momentum Channel Indicator is visually intuitive, with each component providing key insights:
1. **Momentum Lines (MCI1 & MCI2) 📈**:
- **Blue Line (`mci1`)**: Represents the main momentum line, providing immediate insights into market direction.
- **Orange Line (`mci2`)**: A secondary momentum line, further smoothed to confirm trends.
2. **Overbought/Oversold Levels 🔴🟢**:
- **Solid & Dashed Lines**: These lines highlight overbought and oversold regions, guiding traders on when to consider entering or exiting trades.
3. **MCI Difference (Purple Area) 🌌**:
- **Shaded Area**: The difference between `mci1` and `mci2`, shaded in purple, helps visualize the strength of the momentum. The larger the shaded area, the stronger the momentum.
### 🚀 **Advanced Tips & Tricks**
For those looking to maximize the potential of the Momentum Channel Indicator, here are some advanced strategies:
1. **Combine with Volume Indicators 📊**: Use volume indicators like OBV (On-Balance Volume) or Volume Oscillator to confirm momentum signals. For instance, a bullish crossover combined with increasing volume can reinforce a buy signal.
2. **Multiple Timeframe Analysis 🕒**: Apply the Momentum Channel Indicator across multiple timeframes (e.g., daily and weekly) to get a more comprehensive view of the market. This can help in aligning short-term trades with long-term trends.
3. **Adjusting Parameters 🔄**: Depending on market conditions, tweak the `length1` and `length2` parameters. In a highly volatile market, shorter lengths might provide quicker signals, whereas in a stable market, longer lengths could smooth out noise.
4. **Divergence & Convergence 📐**: Watch for divergence between price and momentum lines as a leading indicator of potential reversals. Convergence (when the price and momentum move in sync) can confirm the strength of the trend.
### **Conclusion**
The **Uptrick: Momentum Channel Indicator** is a versatile tool that can be customized for various trading styles and market conditions. Whether you're trading in fast-paced environments or analyzing long-term trends, this indicator offers a clear and intuitive way to gauge market momentum, identify potential reversals, and make informed trading decisions.
By understanding and applying the principles outlined above, you can harness the full power of this indicator, transforming your trading strategy from good to great! 🌟
Centered Oscillators
Uptrick: MultiTrend Squeeze System**Uptrick: MultiTrend Squeeze System Indicator: The Ultimate Trading Tool for Precision and Versatility 📈🔥**
### Introduction
The MultiTrend Squeeze System is a powerful, multi-faceted trading indicator designed to provide traders with precise buy and sell signals by combining the strengths of multiple technical analysis tools. This script isn't just an indicator; it's a comprehensive trading system that merges the power of SuperTrend, RSI, Volume Filtering, and Squeeze Momentum to give you an unparalleled edge in the market. Whether you're a day trader looking for short-term opportunities or a swing trader aiming to catch longer-term trends, this indicator is tailored to meet your needs.
### Key Features and Unique Aspects
1. **SuperTrend with Dynamic Adjustments 📊**
- **Adaptive SuperTrend Calculation:** The SuperTrend is a popular trend-following indicator that adjusts dynamically based on market conditions. It uses the Average True Range (ATR) to calculate upper and lower bands, which shift according to market volatility. This script takes it further by combining it with the RSI and Volume filtering to provide more accurate signals.
- **Direction Sensitivity:** The SuperTrend here is not static. It adjusts based on the direction of the previous SuperTrend value, ensuring that the indicator remains relevant even in choppy markets.
2. **RSI Integration for Overbought/Oversold Conditions 💹**
- **RSI Calculation:** The Relative Strength Index (RSI) is incorporated to identify overbought and oversold conditions, adding an extra layer of precision. This helps in filtering out false signals and ensuring that trades are taken only in optimal conditions.
- **Customizable RSI Settings:** The RSI settings are fully customizable, allowing traders to adjust the RSI length and the overbought/oversold levels according to their trading style and market.
3. **Volume Filtering for Enhanced Signal Confirmation 📉**
- **Volume Multiplier:** This unique feature integrates volume analysis, ensuring that signals are only generated when there is sufficient market participation. The Volume Multiplier can be adjusted to filter out weak signals that occur during low-volume periods.
- **Optional Volume Filtering:** Traders have the flexibility to turn the volume filter on or off, depending on their preference or market conditions. This makes the indicator versatile, allowing it to be used across different asset classes and market conditions.
4. **Squeeze Momentum Indicator (SMI) for Market Pressure Analysis 💥**
- **Squeeze Detection:** The Squeeze Momentum Indicator detects periods of market compression and expansion. This script goes beyond the traditional Bollinger Bands and Keltner Channels by incorporating true range calculations, offering a more nuanced view of market momentum.
- **Customizable Squeeze Settings:** The lengths and multipliers for both Bollinger Bands and Keltner Channels are customizable, giving traders the flexibility to fine-tune the indicator based on their specific needs.
5. **Visual and Aesthetic Customization 🎨**
- **Color-Coding for Clarity:** The indicator is color-coded to make it easy to interpret signals. Bullish trends are marked with a vibrant green color, while bearish trends are highlighted in red. Neutral or unconfirmed signals are displayed in softer tones to reduce noise.
- **Histogram Visualization:** The primary trend direction and strength are displayed as a histogram, making it easy to visualize the market's momentum at a glance. The height and color of the bars provide immediate feedback on the strength and direction of the trend.
6. **Alerts for Real-Time Trading 🚨**
- **Custom Alerts:** The script is equipped with custom alerts that notify traders when a buy or sell signal is generated. These alerts can be configured to send notifications through various channels, including email, SMS, or directly to the trading platform.
- **Immediate Reaction:** The alerts are triggered based on the confluence of SuperTrend, RSI, and Volume signals, ensuring that traders are notified only when the most robust trading opportunities arise.
7. **Comprehensive Input Customization ⚙️**
- **SuperTrend Settings:** Adjust the ATR length and factor to control the sensitivity of the SuperTrend. This allows you to adapt the indicator to different market conditions, whether you're trading a volatile cryptocurrency or a more stable stock.
- **RSI Settings:** Customize the RSI length and thresholds for overbought and oversold conditions, enabling you to tailor the indicator to your specific trading strategy.
- **Volume Settings:** The Volume Multiplier and the option to toggle the volume filter provide an additional layer of customization, allowing you to fine-tune the indicator based on market liquidity and participation.
- **Squeeze Momentum Settings:** The lengths and multipliers for Bollinger Bands and Keltner Channels can be adjusted to detect different levels of market compression, providing flexibility for both short-term and long-term traders.
### How It Works: A Deep Dive Into the Mechanics 🛠️
1. **SuperTrend Calculation:**
- The SuperTrend is calculated using the ATR, which measures market volatility. The indicator creates upper and lower bands around the price, adjusting these bands based on the current level of market volatility. The direction of the trend is determined by the position of the price relative to these bands.
- The script enhances the standard SuperTrend by ensuring that the bands do not flip-flop too quickly, reducing the chances of false signals in a choppy market. The direction is confirmed by checking the position of the close relative to the previous band, making the trend detection more reliable.
2. **RSI Integration:**
- The RSI is calculated over a customizable length and compared to user-defined overbought and oversold levels. When the RSI crosses below the oversold level, and the SuperTrend indicates a bullish trend, a buy signal is generated. Conversely, when the RSI crosses above the overbought level, and the SuperTrend indicates a bearish trend, a sell signal is triggered.
- The combination of RSI with SuperTrend ensures that trades are only taken when there is a strong confluence of signals, reducing the chances of entering trades during weak or indecisive market phases.
3. **Volume Filtering:**
- The script calculates the average volume over a 20-period simple moving average. The volume filter ensures that buy and sell signals are only valid when the current volume exceeds a multiple of this average, which can be adjusted by the user. This feature helps filter out weak signals that might occur during low-volume periods, such as just before a major news event or during after-hours trading.
- The volume filter is particularly useful in markets where volume spikes are common, as it ensures that signals are only generated when there is significant market interest in the direction of the trend.
4. **Squeeze Momentum:**
- The Squeeze Momentum Indicator (SMI) adds a layer of market pressure analysis. The script calculates Bollinger Bands and Keltner Channels, detecting when the market is in a "squeeze" — a period of low volatility that typically precedes a significant price move.
- When the Bollinger Bands are inside the Keltner Channels, the market is in a squeeze (compression phase). This is often a precursor to a breakout or breakdown. The script colors the histogram bars black during this phase, indicating a potential for a strong move. Once the squeeze is released, the bars are colored according to the direction of the SuperTrend, signaling a potential entry point.
5. **Integration and Signal Generation:**
- The script brings together the SuperTrend, RSI, Volume, and Squeeze Momentum to generate highly accurate buy and sell signals. A buy signal is triggered when the SuperTrend is bullish, the RSI indicates oversold conditions, and the volume filter confirms strong market participation. Similarly, a sell signal is generated when the SuperTrend is bearish, the RSI indicates overbought conditions, and the volume filter is met.
- The combination of these elements ensures that the signals are robust, reducing the likelihood of entering trades during weak or indecisive market conditions.
### Practical Applications: How to Use the MultiTrend Squeeze System 📅
1. **Day Trading:**
- For day traders, this indicator provides quick and reliable signals that can be used to enter and exit trades multiple times within a day. The volume filter ensures that you are trading during the most liquid times of the day, increasing the chances of successful trades. The Squeeze Momentum aspect helps you catch breakouts or breakdowns, which are common in intraday trading.
2. **Swing Trading:**
- Swing traders can use the MultiTrend Squeeze System to identify longer-term trends. By adjusting the ATR length and factor, you can make the SuperTrend more sensitive to catch longer-term moves. The RSI and Squeeze Momentum aspects help you time your entries and exits, ensuring that you get in early on a trend and exit before it reverses.
3. **Scalping:**
- For scalpers, the quick signals provided by this system, especially in combination with the volume filter, make it easier to take small profits repeatedly. The histogram bars give you a clear visual cue of the market's momentum, making it easier to scalp effectively.
4. **Position Trading:**
- Even position traders can benefit from this indicator by using it to confirm long-term trends. By adjusting the settings to less sensitive parameters, you can ensure that you are only entering trades when a strong trend is confirmed. The Squeeze Momentum indicator will help you stay in the trade during periods of consolidation, waiting for the next big move.
### Conclusion: Why the MultiTrend Squeeze System is a Game-Changer 🚀
The MultiTrend Squeeze System is not just another trading indicator; it’s a comprehensive trading strategy encapsulated within a single script. By combining the power
of SuperTrend, RSI, Volume Filtering, and Squeeze Momentum, this indicator provides a robust and versatile tool that can be adapted to various trading styles and market conditions.
**Why is it Unique?**
- **Multi-Dimensional Analysis:** Unlike many other indicators that rely on a single data point or calculation, this script incorporates multiple layers of analysis, ensuring that signals are based on a confluence of factors, which increases their reliability.
- **Customizability:** The vast range of input settings allows traders to tailor the indicator to their specific needs, whether they are trading forex, stocks, cryptocurrencies, or commodities.
- **Visual Clarity:** The color-coded bars, labels, and signals make it easy to interpret the market conditions at a glance, reducing the time needed to make trading decisions.
Whether you are a novice trader or an experienced market participant, the MultiTrend Squeeze System offers a powerful toolset to enhance your trading strategy, reduce risk, and maximize your potential returns. With its combination of trend analysis, momentum detection, and volume filtering, this indicator is designed to help you trade with confidence and precision in any market condition.
Volume-Weighted RSI with HMA SmoothingThis script combines a Volume-Weighted RSI, smoothed with a custom Hull Moving Average (HMA), with a modified MACD based on normalized net volume.
Volume-Weighted RSI: It is calculated by adjusting the closing price with a normalized On-Balance Volume (OBV) and then applying an RSI. This approach weights the RSI according to volume, providing a more accurate measure of the strength of the price movement.
Modified HMA: A Hull Moving Average (HMA) is used to smooth the Volume-Weighted RSI, enhancing the ability to identify market trend changes.
Possible Reversal from Oversold:
The Volume-Weighted RSI crosses above the oversold level.
It is displayed as an upward green triangle at the bottom of the chart, indicating that the market might be exhausting its oversold conditions and potentially starting an upward reversal.
Possible Reversal from Overbought:
The Volume-Weighted RSI crosses below the overbought level.
It is displayed as a downward red triangle at the top of the chart, indicating that the market might be exhausting its overbought conditions and potentially starting a downward reversal.
Confirmation with the Modified MACD: For a more robust interpretation, the behavior of the modified MACD can be observed alongside the RSI cross.
The MACD is also modified, using normalized net volume (calculated as the cumulative change in the closing price multiplied by volume) as the input instead of the standard closing price.
The direction and color change of the MACD bars indicate the market's momentum.
Alerts: Alerts are set to trigger automatically when the modified RSI crosses the oversold or overbought levels.
Español:
Este script combina un RSI ponderado por volumen, suavizado con un Hull Moving Average (HMA) personalizado, con un MACD modificado basado en volumen neto normalizado.
RSI Ponderado por Volumen: Se calcula ajustando el precio de cierre con un OBV (On-Balance Volume) normalizado y luego aplicando un RSI. Este enfoque pondera el RSI según el volumen, proporcionando una medida más precisa de la fuerza del movimiento del precio.
HMA Modificado: Se utiliza un Hull Moving Average (HMA) para suavizar el RSI Ponderado por Volumen, mejorando la capacidad de identificar cambios en la tendencia del mercado.
Posible Reversión desde Sobreventa:
El RSI Ponderado por Volumen cruza por encima del nivel de sobreventa.
Se muestra como un triángulo verde hacia arriba en la parte inferior del gráfico, indicando que el mercado podría estar agotando las condiciones de sobreventa y comenzar una posible reversión al alza.
Posible Reversión desde Sobrecompra:
El RSI Ponderado por Volumen cruza por debajo del nivel de sobrecompra.
Se muestra como un triángulo rojo hacia abajo en la parte superior del gráfico, indicando que el mercado podría estar agotando las condiciones de sobrecompra y comenzar una posible reversión a la baja.
Confirmación con el MACD Modificado: Para una interpretación más robusta, se puede observar el comportamiento del MACD modificado junto con el cruce del RSI.
El MACD también está modificado, utilizando el volumen neto normalizado (calculado como el cambio acumulativo en el precio de cierre multiplicado por el volumen) como entrada en lugar del precio de cierre estándar.
La dirección y el cambio de color de las barras del MACD indican el impulso del mercado.
Alertas: Las alertas están configuradas para activarse automáticamente cuando el RSI modificado cruza los niveles de sobreventa o sobrecompra.
Percentage Range High/Low LevelsPercentage Range High/Low Levels Indicator
Overview
The "Percentage High/Low Levels" indicator is a versatile tool designed to help traders visualize key price levels that are a certain percentage away from the current price. Instead of using traditional volatility measures like the Average True Range (ATR), this script allows traders to plot lines above and below the current price based on a user-defined percentage. These levels can act as potential support and resistance zones, helping traders in decision-making processes such as setting targets, stop-losses, or identifying overbought and oversold conditions.
How It Works
Percentage-Based Calculation:
The script calculates two levels: a high level and a low level. These are determined by adding and subtracting a specified percentage from the current price. For example, if you set the percentage to 1%, the script will plot a line 1% above the current price (high level) and another line 1% below the current price (low level).
Timeframe Selection:
You can choose the timeframe over which the percentage levels are calculated. This means that the levels can be based on different timeframes, such as daily, weekly, or monthly data, depending on your trading strategy.
Customization Options:
Line Extension: The lines can be extended to the left, right, both directions, or neither, depending on your preference.
Colors: You can customize the colors of both the high and low lines and their respective labels.
Label Size: The size of the labels can be adjusted, allowing you to tailor the visibility of the levels to your charting needs.
Label Placement and Styling:
The labels indicating the price levels are placed above the lines to keep your chart clean and readable. The labels are transparent and do not have a background, ensuring they don't obscure any important chart information. You can also adjust the distance of the labels from the current bar using the label offset feature.
How to Use
Selecting the Percentage:
Choose a percentage that aligns with your trading strategy. A smaller percentage might be useful for intraday trading, while a larger percentage could be more appropriate for swing or position trading.
Choosing the Timeframe:
Set the timeframe to match the period over which you are analyzing the market. For example, if you are trading on a daily chart, you might want to select the daily timeframe.
Customizing Visuals:
Use the input options to adjust the colors, label sizes, and line extensions according to your preference. This helps in maintaining a chart setup that is both functional and visually appealing.
Interpreting the Levels:
The high and low levels can act as dynamic support and resistance levels. If the price approaches one of these levels, it may either reverse or break through, depending on the market conditions. Traders can use these levels to set stop-loss orders, take-profit targets, or even enter new positions based on price action around these zones.
Concepts Underlying the Calculation
The indicator is based on the concept of price percentage levels, which are straightforward yet powerful tools in technical analysis. Unlike volatility-based indicators that adapt to changing market conditions, percentage levels provide fixed reference points, allowing traders to gauge potential price movements in a consistent manner. This can be particularly useful in trending markets, where the price often respects certain percentage-based levels as it progresses in its direction.
By offering a clear, customizable approach to plotting these levels, the "Percentage High/Low Levels" indicator becomes a valuable addition to any trader's toolkit, regardless of the market or timeframe they are working with.
Best Practices
Testing and Validation: Before using this indicator in live trading, it is advisable to test it on historical data or in a demo environment to understand how it behaves in different market conditions.
Combination with Other Indicators: For enhanced accuracy, consider using this indicator in combination with trend indicators (like moving averages) or momentum oscillators (like RSI) to confirm potential reversal points or breakouts.
This indicator is suitable for traders looking to incorporate a systematic approach to identifying key price levels that are easy to interpret and adjust according to market conditions.
Heartbeat Momentum Strategy BetaHeartbeat Momentum Strategy Beta
Overview
The Heartbeat Momentum Strategy is an innovative approach to market analysis that draws inspiration from the rhythmic patterns of a heartbeat. This strategy aims to identify significant momentum shifts in the market by comparing short-term and long-term moving averages, analogous to detecting irregularities in a heartbeat.
Key Concepts
Market Heartbeat: The difference between short-term and long-term moving averages, representing the market's current 'pulse'.
Heartbeat Volatility: Measured by the standard deviation of the market heartbeat.
Momentum Signals: Generated when the heartbeat deviates significantly from its normal range.
How It Works
Calculates a short-term moving average (default 5 periods) and a long-term moving average (default 20 periods) of the closing price.
Computes the 'heartbeat' by subtracting the long-term MA from the short-term MA.
Measures the volatility of the heartbeat using its standard deviation over the long-term period.
Generates buy signals when the heartbeat exceeds 2 standard deviations above its mean.
Generates sell signals when the heartbeat falls 2 standard deviations below its mean.
Indicator Components
Blue Line: Short-term moving average
Red Line: Long-term moving average
Green Triangles: Buy signals
Red Triangles: Sell signals
Background Color: Light green during buy signals, light red during sell signals
Strategy Parameters
Short MA Window: The period for the short-term moving average (default: 5)
Long MA Window: The period for the long-term moving average (default: 20)
Standard Deviation Threshold: The number of standard deviations to trigger a signal (default: 2.0)
Interpretation
Buy Signal: Indicates a potential strong upward momentum shift. Consider opening long positions or closing short positions.
Sell Signal: Suggests a potential strong downward momentum shift. Consider opening short positions or closing long positions.
No Signal: The market is moving within its normal rhythm. Maintain current positions or look for other entry opportunities.
Customization
Users can adjust the strategy parameters to suit different assets, timeframes, or trading styles:
Decrease the MA windows for more frequent signals (more suitable for shorter timeframes).
Increase the MA windows for fewer, potentially more significant signals (better for longer timeframes).
Adjust the Standard Deviation Threshold to fine-tune sensitivity (lower for more signals, higher for fewer but potentially stronger signals).
Risk Management
While this strategy can provide valuable insights into market momentum, it should not be used in isolation:
Always use stop-loss orders to manage potential losses.
Consider the overall market context and other technical/fundamental factors.
Be aware of potential false signals, especially in ranging or highly volatile markets.
Backtest and forward-test the strategy with different parameters before live trading.
Conclusion
The Heartbeat Momentum Strategy offers a unique perspective on market movements by treating price action like a heartbeat. By identifying significant deviations from the normal market rhythm, it aims to capture strong momentum shifts while filtering out market noise. As with any trading strategy, use it as part of a comprehensive trading plan and always practice sound risk management.
Uptrick: Adaptive Volatility Oscillator### **Overview and Purpose**
The **"Uptrick: Adaptive Volatility Oscillator"** is a sophisticated technical analysis tool designed to identify and visualize volatility trends within the financial markets. This indicator is particularly useful for traders and analysts who seek to understand the market's underlying momentum by analyzing the relationship between volume and price changes. It adapts to changing market conditions, providing a dynamic way to gauge overbought and oversold levels, identify potential reversals, and track the strength of market movements.
### **Core Components**
1. **Volume Oscillator Calculation**:
- **Purpose**: The volume oscillator is at the heart of this indicator. It measures the directional momentum of volume by comparing current volume levels with those of previous periods.
- **How It Works**: The oscillator calculates the difference between current and past volume levels, determining whether the market is experiencing buying or selling pressure. This is normalized to ensure the oscillator's values are comparable across different time frames and market conditions.
- **Normalized Oscillator**: To make the oscillator's readings more meaningful, the values are normalized by adjusting for standard deviation over a long period (150 bars). This step helps in smoothing out the noise and highlights significant shifts in market activity.
2. **Adaptive Filter Calculation**:
- **Purpose**: The adaptive filter refines the raw oscillator data to create a smoother signal that is responsive to market changes without being overly reactive to minor fluctuations.
- **Adaptive Coefficient**: This coefficient, set by the user, controls the sensitivity of the filter. A higher coefficient makes the filter more sensitive to recent changes, while a lower coefficient gives more weight to past data.
- **How It Works**: The filter applies a weighted average to the oscillator values, where recent data is given more importance. This creates a dynamic signal that adapts to the market's changing conditions, highlighting significant trends and potential turning points.
3. **Signal Line**:
- **Purpose**: The signal line serves as a benchmark for the filtered oscillator values, providing a basis for comparison to determine the current trend's strength.
- **Smoothing**: The signal line is smoothed over a user-defined period to ensure it represents the underlying trend accurately. This smoothing process reduces the noise and allows traders to focus on the more meaningful movements.
4. **Overbought/Oversold Zones**:
- **Purpose**: These zones help traders identify when the market is potentially overstretched and due for a correction. They are crucial for timing entry and exit points.
- **Thresholds**: The user-defined thresholds represent levels where the oscillator values are considered extreme. When the oscillator crosses these levels, it signals that the market may be overbought or oversold.
- **Visual Cues**: The indicator plots these zones on the chart, making it easy for traders to see when the market enters these critical areas. This visualization is vital for spotting potential reversals or continuations in the trend.
5. **Histogram Visualization**:
- **Purpose**: The histogram provides a visual representation of the volatility in the market, making it easier to interpret the oscillator's readings.
- **Color Coding**: The histogram bars are color-coded based on the filtered oscillator's relationship with the signal line. Green bars indicate a positive momentum (bullish), while red bars indicate negative momentum (bearish). This color-coding helps traders quickly assess the market's current state.
- **Intensity of Movement**: The height and color intensity of the histogram bars reflect the strength of the underlying trend. Higher bars with more intense colors signify stronger market movements.
6. **Buy and Sell Signals**:
- **Purpose**: The indicator provides explicit buy and sell signals based on the oscillator's interaction with the signal line and the overbought/oversold thresholds.
- **Buy Signal**: A buy signal is generated when the filtered oscillator crosses above the signal line while in the oversold zone. This suggests that the market may be reversing upwards from an oversold condition.
- **Sell Signal**: Conversely, a sell signal is generated when the filtered oscillator crosses below the signal line while in the overbought zone, indicating a potential downward reversal from an overbought condition.
- **Visual Representation**: These signals are visually represented on the chart with specific symbols, such as green circles for buy signals and red circles for sell signals, making them easy to spot.
### **Usefulness and Applications**
1. **Trend Identification**:
- The indicator is highly effective in identifying the current trend and its strength. By analyzing the relationship between the oscillator and the signal line, traders can determine whether the market is in an uptrend, downtrend, or ranging. The adaptive nature of the filter ensures that the trend signals remain relevant even as market conditions change.
2. **Volatility Analysis**:
- Understanding market volatility is crucial for risk management and strategy development. This indicator provides a clear view of how volatility is evolving, helping traders adjust their strategies accordingly. For example, higher volatility might suggest the need for tighter stop losses or more conservative position sizes.
3. **Overbought/Oversold Detection**:
- The overbought and oversold zones are essential for identifying potential reversal points. These zones can be used to time entries and exits, particularly in markets that are prone to mean reversion. The visual cues provided by the indicator make it easier to spot when the market might be overstretched.
4. **Adaptive Filtering**:
- The adaptive filter is a significant advantage of this indicator. Unlike static filters, which might lag or react too quickly to noise, the adaptive filter adjusts to the market's pace. This makes the indicator versatile, suitable for different market conditions, and less prone to giving false signals.
5. **Visual Clarity**:
- The indicator is designed with visual clarity in mind. The color-coded bars and overbought/oversold zones make it easy to interpret the market's current state at a glance. This is particularly useful for traders who rely on quick decision-making or need to monitor multiple assets simultaneously.
6. **Customizability**:
- The indicator offers several user inputs that allow traders to customize it according to their trading style and market of interest. This includes the length of the volume period, the sensitivity of the adaptive filter, and the thresholds for overbought/oversold conditions. Such flexibility makes it a valuable tool for both short-term traders and long-term investors.
### **Conclusion**
The "Uptrick: Adaptive Volatility Oscillator" is a powerful and versatile indicator that blends volume analysis with adaptive filtering to provide a nuanced view of market trends and volatility. Its ability to identify overbought and oversold conditions, coupled with its adaptive nature, makes it an indispensable tool for traders looking to gain an edge in the markets. Whether you're aiming to spot trend reversals, confirm the strength of ongoing trends, or manage risk through volatility analysis, this indicator offers the insights needed to make informed trading decisions. Its clear visual signals and customizable parameters further enhance its utility, making it suitable for a wide range of trading strategies and market environments.
Multiple EMA Indicator [Pineify]TradingView Multiple EMA Indicator: A Comprehensive Trend Analysis Tool
The TradingView Multiple EMA Indicator is a powerful and versatile tool designed to provide traders with a comprehensive view of market trends across multiple timeframes. By incorporating five Exponential Moving Averages (EMAs) with customizable lengths and sources, this indicator offers a nuanced approach to trend analysis, suitable for both novice and experienced traders.
Key Features:
Five customizable EMAs for multi-timeframe analysis
Flexible source inputs for each EMA
Color-coded plots for easy visual interpretation
Overlay functionality for direct price action comparison
How It Works:
This indicator calculates and displays five separate EMAs on your chart, each with its own customizable length and source. The EMAs are color-coded for easy identification:
EMA-1: Red
EMA-2: Light Green
EMA-3: Light Blue
EMA-4: Purple
EMA-5: Yellow
By default, the indicator uses the following settings:
EMA-1: 10-period EMA of close price
EMA-2: 20-period EMA of close price
EMA-3: 50-period EMA of close price
EMA-4: 100-period EMA of close price
EMA-5: 200-period EMA of close price
However, users can easily adjust these settings to suit their specific trading strategies and preferences.
Trading Ideas and Insights:
The Multiple EMA Indicator offers several ways to analyze market trends and generate trading signals:
Trend Identification: The alignment of the EMAs can help identify the overall trend. When shorter-term EMAs are above longer-term EMAs, it suggests an uptrend, and vice versa for a downtrend.
Dynamic Support and Resistance: Each EMA can act as a dynamic support or resistance level. Price bouncing off these levels can indicate potential entry or exit points.
Crossovers: When a shorter-term EMA crosses above a longer-term EMA, it may signal a bullish trend change. Conversely, a bearish signal may occur when a shorter-term EMA crosses below a longer-term EMA.
Trend Strength: The spacing between the EMAs can indicate trend strength. Wide spacing suggests a strong trend, while narrow spacing or intertwining EMAs may indicate consolidation or a weakening trend.
Multi-Timeframe Analysis: By using different EMA lengths, traders can gain insights into short-term, medium-term, and long-term trends simultaneously.
How to Use the Indicator:
Add the indicator to your chart and adjust the input parameters as needed.
Observe the relative positions of the EMAs to identify the overall trend direction.
Look for potential entry signals when price or shorter-term EMAs cross above or below longer-term EMAs.
Use the EMAs as dynamic support and resistance levels for setting stop-loss and take-profit orders.
Combine the Multiple EMA Indicator with other technical analysis tools, such as oscillators or volume indicators, for more comprehensive trading decisions.
Customization Options:
The indicator offers extensive customization options, allowing traders to tailor it to their specific needs:
Adjust the length of each EMA to focus on different timeframes
Change the source of each EMA (e.g., close, open, high, low, HL2, HLC3, OHLC4)
Modify the color and line thickness of each EMA for better visibility
Conclusion:
The TradingView Multiple EMA Indicator is a versatile and powerful tool for trend analysis and trade decision-making. By providing a multi-faceted view of market trends, it enables traders to make more informed decisions based on a comprehensive understanding of price action across various timeframes.
Remember that while this indicator can be a valuable tool in your trading arsenal, it should not be used in isolation. Always combine it with other forms of analysis and proper risk management techniques for the best results.
We hope this indicator enhances your trading experience and contributes to your success in the markets. Happy trading!
RSI Slope Filtered Signals [UAlgo]The "RSI Slope Filtered Signals " is a technical analysis tool designed to enhance the accuracy of RSI (Relative Strength Index) signals by incorporating slope analysis. This indicator not only considers the RSI value but also analyzes the slope of the RSI over a specified number of bars, providing a more refined signal that accounts for the momentum and trend strength. By utilizing both positive and negative slope arrays, the indicator dynamically adjusts its thresholds, ensuring that signals are responsive to changing market conditions. This tool is particularly useful for traders looking to identify overbought and oversold conditions with a higher degree of precision, filtering out noise and providing clear visual cues for potential market reversals.
🔶 Key Features
Dynamic Slope Analysis: Measures the slope of RSI over a customizable number of bars, offering insights into the momentum and trend direction.
Adaptive Thresholds: Uses historical slope data to calculate dynamic thresholds, adjusting signal sensitivity based on market conditions.
Normalized Slope Calculation: Normalizes the slope values to provide a consistent measure across different market conditions, making the indicator more versatile.
Clear Signal Visualization: The indicator plots both positive and negative normalized slopes with color gradients, visually representing the strength of the trend.
Overbought and Oversold Signals: Plots overbought and oversold signals directly on the chart when the calculated value reaches the user-specified threshold, helping traders identify potential reversal points.
Customizable Settings: Allows users to adjust the RSI length, slope measurement bars, and lookback periods, providing flexibility to tailor the indicator to different trading strategies.
🔶 Interpreting the Indicator
The "RSI Slope Filtered Signals " indicator is designed to be easy to interpret. Here's how you can use it:
Normalized Slope: The indicator plots the normalized slope of the RSI, with values above zero indicating positive momentum and values below zero indicating negative momentum. A higher positive slope suggests a strong upward trend, while a deeper negative slope indicates a strong downward trend.
Reversal Signals: The indicator plots several horizontal lines at different thresholds (+3, +2, +1, 0, -1, -2, -3). These levels are used to gauge the strength of the momentum based on the normalized slope. For example, a normalized slope crossing above the +2 threshold may indicate a strong bullish trend, while crossing below the -2 threshold may suggest a strong bearish trend. These thresholds help in understanding the intensity of the current trend and provide context for interpreting the indicator's signals.
This indicator generates overbought and oversold signals not solely based on the RSI entering extreme levels (above 70 for overbought and below 30 for oversold), but also by considering the behavior of the normalized slope relative to specific thresholds. Specifically, the Overbought Signal (🔽) is triggered when the RSI is above 70 and the normalized slope from the previous bar is greater than or equal to the upper threshold, with the current slope being lower than the previous slope, indicating a potential bearish reversal as momentum may be slowing down.
Similarly, the Oversold Signal (🔼) is generated when the RSI is below 30 and the normalized slope from the previous bar is less than or equal to the lower threshold, with the current slope being higher than the previous slope, signaling a potential bullish reversal as the downward momentum may be weakening.
Area Plots: The indicator also plots the positive and negative slopes as filled areas, providing a quick visual cue for the strength and direction of the trend. Green areas represent positive slopes (upward momentum), while red areas represent negative slopes (downward momentum).
By combining these elements, the "RSI Slope Filtered Signals " provides a comprehensive view of the market's momentum, helping traders make more informed decisions by filtering out false signals and focusing on the significant trends.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Average of CBO and CBO divergence histogramShort Description:
This indicator combines a Custom Bias Oscillator (CBO) with its Divergence Histogram and computes their average for use to assess the market's bias based on candlestick analysis, from the aforementioned CBO indicator.
Full Description:
Overview:
This indicator integrates two powerful analytical tools into a single script: a Custom Bias Oscillator (CBO) and its Divergence Histogram. This indicator provides traders with a comprehensive view of market bias and divergence between price movements and volume, enhanced by an optional signal line derived from the combined average of these metrics.
Key Features:
Custom Bias Oscillator (CBO):
The CBO is calculated based on the body and wick biases of candlesticks, normalized by the Average True Range (ATR) to account for market volatility.
The CBO is scaled by the divergence between the Rate of Change (ROC) of volume and the ROC of the adjusted bias, ensuring it reflects potential reversals or continuations in the market.
Divergence Histogram:
The Divergence Histogram is derived from the difference between the CBO and its signal line.
This difference is normalized and plotted to provide visual cues for potential divergences, which may indicate trend exhaustion or the beginning of a new trend.
Combined Average with Signal Line:
The indicator calculates the average of the CBO and the normalized divergence, creating a combined signal that offers a more rounded perspective on market conditions.
A signal line, generated by smoothing the combined average, is plotted to help traders identify potential buy or sell signals based on crossovers.
Customization:
The indicator includes customizable parameters for the periods of the oscillator, signal line, ATR, ROC, and the combined signal line, allowing traders to tailor the indicator to different market conditions and timeframes.
How to Use:
Buy Signal: Consider a long position when the combined average crosses above the signal line, indicating potential bullish momentum.
Sell Signal: Consider a short position when the combined average crosses below the signal line, indicating potential bearish momentum.
Divergence Analysis: Use the Divergence Histogram to identify areas where price movements may be diverging from volume, signaling potential reversals or corrections.
Disclaimer:
This indicator is designed for educational and informational purposes only. It is not financial advice. Always perform your own analysis before making any investment decisions. Past performance is not indicative of future results.
[KVA] KMACDKMACD Indicator: Advanced Market Analysis Through Central Tendency Metrics
The KMACD (KAMVIA Moving Average Convergence Divergence) indicator is an advanced, multi-dimensional tool designed to provide traders and analysts with a deeper understanding of market dynamics. By integrating the classical MACD framework with statistical measures of central tendency, KMACD offers a sophisticated approach to identifying trends, reversals, and potential trading opportunities.
Key Features of the KMACD Indicator:
1. Enhanced MACD Calculation :
- The KMACD employs dual moving averages (fast and slow) of user-defined types (SMA, EMA, WMA) to calculate the MACD line, which represents the difference between these moving averages. This traditional approach is further enhanced by customizable signal smoothing, allowing users to fine-tune the sensitivity of the indicator.
2. Central Tendency Metrics :
- The indicator integrates additional statistical measures, such as Mean, Median, Mode, Standard Deviation, and Variance, calculated over a rolling window. These metrics provide insights into the central tendencies of the MACD values, helping traders understand the overall trend direction and the dispersion of price movements around the trend.
3. RSI-Like Oscillator :
- A unique RSI-like value derived from the MACD line is included to highlight overbought and oversold conditions. This offers a dual-layered perspective, combining the power of MACD and RSI methodologies, to signal potential market extremes with greater precision.
4. Customizable Visual Elements :
- KMACD allows users to toggle the visibility of the MACD line, Signal line, and Histogram, providing flexibility in how the data is presented. The histogram dynamically changes color—green when above zero, indicating bullish momentum, and red when below zero, indicating bearish momentum.
5. Horizontal Line Customization :
- The indicator includes customizable horizontal lines for the zero level, overbought, and oversold thresholds. These lines serve as visual cues to identify key price levels and market conditions.
6. Adaptive to Various Market Conditions :
- KMACD's comprehensive features make it adaptable to various market conditions, from trending markets to sideways consolidations. Whether you're looking to capture momentum shifts or identify potential reversal points, KMACD provides the analytical power needed to make informed trading decisions.
How to Use KMACD:
- Trend Identification : Use the MACD line in conjunction with central tendency measures (Mean, Median, Mode) to gauge the overall market trend and its strength. A rising MACD line, supported by higher mean and median values, typically indicates an uptrend.
- Momentum Analysis : The histogram and RSI-like value help in identifying the momentum behind price movements. Positive histogram bars suggest increasing bullish momentum, while negative bars suggest increasing bearish momentum.
- Overbought/Oversold Conditions : Monitor the RSI-like oscillator and the overbought/oversold levels to detect when the market may be poised for a reversal.
- Divergence Detection : Look for divergences between the MACD line and price action, supported by the central tendency measures, to spot potential reversal points.
Conclusion
The KMACD indicator is more than just a traditional MACD; it’s a comprehensive tool designed to cater to both novice and experienced traders. By incorporating central tendency metrics and customizable features, KMACD stands out as a versatile and powerful indicator that enhances market analysis and trading strategies. Whether you're navigating volatile markets or steady trends, KMACD offers the precision and depth needed to stay ahead.
ELMo HeatmapA heatmap display of the Entropy, Liquidity, and Momentum (ELMo) strategy status across a group of tickers.
Background color indicates ELMo's opinion of that row(green - bull, red - bear). White dots indicate bullish signals and black are bearish signals.
Top row is current ticker, remaining 7 rows are each a configurable ticker. The defaults are:
SPY
QQQ
DIA
IWM
BTCUSD
GLD
TLT
If you have appropriate data feeds, I also like the following ticker list:
ES1!
NQ1!
YM1!
RTY1!
BTC1!
GC1!
VX1!
MACD with 1D Stochastic Confirmation Reversal StrategyOverview
The MACD with 1D Stochastic Confirmation Reversal Strategy utilizes MACD indicator in conjunction with 1 day timeframe Stochastic indicators to obtain the high probability short-term trend reversal signals. The main idea is to wait until MACD line crosses up it’s signal line, at the same time Stochastic indicator on 1D time frame shall show the uptrend (will be discussed in methodology) and not to be in the oversold territory. Strategy works on time frames from 30 min to 4 hours and opens only long trades.
Unique Features
Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Higher time frame confirmation: Strategy utilizes 1D Stochastic to establish the major trend and confirm the local reversals with the higher probability.
Trailing take profit level: After reaching the trailing profit activation level scrip activate the trailing of long trade using EMA. More information in methodology.
Methodology
The strategy opens long trade when the following price met the conditions:
MACD line of MACD indicator shall cross over the signal line of MACD indicator.
1D time frame Stochastic’s K line shall be above the D line.
1D time frame Stochastic’s K line value shall be below 80 (not overbought)
When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility.
At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with EMA. If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”.
Strategy settings
In the inputs window user can setup the following strategy settings:
ATR Stop Loss (by default = 3.25, value multiplied by ATR to be subtracted from position entry price to setup stop loss)
ATR Trailing Profit Activation Level (by default = 4.25, value multiplied by ATR to be added to position entry price to setup trailing profit activation level)
Trailing EMA Length (by default = 20, period for EMA, when price reached trailing profit activation level EMA will stop out of position if price closes below it)
User can choose the optimal parameters during backtesting on certain price chart, in our example we use default settings.
Justification of Methodology
This strategy leverages 2 time frames analysis to have the high probability reversal setups on lower time frame in the direction of the 1D time frame trend. That’s why it’s recommended to use this strategy on 30 min – 4 hours time frames.
To have an approximation of 1D time frame trend strategy utilizes classical Stochastic indicator. The Stochastic Indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period. It's used to identify overbought and oversold conditions. The indicator ranges from 0 to 100, with readings above 80 indicating overbought conditions and readings below 20 indicating oversold conditions.
It consists of two lines:
%K: The main line, calculated using the formula (CurrentClose−LowestLow)/(HighestHigh−LowestLow)×100 . Highest and lowest price taken for 14 periods.
%D: A smoothed moving average of %K, often used as a signal line.
Strategy logic assumes that on 1D time frame it’s uptrend in %K line is above the %D line. Moreover, we can consider long trade only in %K line is below 80. It means that in overbought state the long trade will not be opened due to higher probability of pullback or even major trend reversal. If these conditions are met we are going to our working (lower) time frame.
On the chosen time frame, we remind you that for correct work of this strategy you shall use 30min – 4h time frames, MACD line shall cross over it’s signal line. The MACD (Moving Average Convergence Divergence) is a popular momentum and trend-following indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in a stock's price.
The MACD consists of three components:
MACD Line: This is the difference between a short-term Exponential Moving Average (EMA) and a long-term EMA, typically calculated as: MACD Line=12-period EMA−26-period
Signal Line: This is a 9-period EMA of the MACD Line, which helps to identify buy or sell signals. When the MACD Line crosses above the Signal Line, it can be a bullish signal (suggesting a buy); when it crosses below, it can be a bearish signal (suggesting a sell).
Histogram: The histogram shows the difference between the MACD Line and the Signal Line, visually representing the momentum of the trend. Positive histogram values indicate increasing bullish momentum, while negative values indicate increasing bearish momentum.
In our script we are interested in only MACD and signal lines. When MACD line crosses signal line there is a high chance that short-term trend reversed to the upside. We use this strategy on 45 min time frame.
ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 30%
Maximum Single Position Loss: -4.79%
Maximum Single Profit: +20.14%
Net Profit: +2361.33 USDT (+44.72%)
Total Trades: 123 (44.72% win rate)
Profit Factor: 1.623
Maximum Accumulated Loss: 695.80 USDT (-5.48%)
Average Profit per Trade: 19.20 USDT (+0.59%)
Average Trade Duration: 30 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe between 30 min and 4 hours and chart (optimal performance observed on 45 min BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
DIVERGENCE SPOT X P.FUTURES (BYBIT and BINANCE) [GUSLM]Author's note:
When I searched the Trading View libraries, I didn't find what I was looking for. I noticed that the crypto market currently uses a lot more derivatives called "Perpetual" Futures, while the price is always formulated based on the spot price, or the real coin.
I wanted something that would mark the difference in real time between the spot price and the perpetual futures, creating a bar history. Since the relationship between them generates algorithms on exchanges to formulate payment rates for the lowest side, and to formulate the "market price" of the perpetual futures (without expiration), which are not the value of the last trade. I found several scripts that try to show the relationship between the funding rate and the rate, or the increase in these over time. But they don't show the direct action of the two prices in real time, nor a history of this difference.
The usefulness of this script is that at times you will see jumps in the price difference and can make assessments from this. Associated with another funding rate script it becomes even more interesting. I also didn't find coverage for the two brokers that my friends and I operate with, so I enabled it for use on these two brokers.
Function:
It works for the BYBIT and BINANCE exchanges. In coins that have both markets (Spot and Perpetual futures).
It shows in bars the real-time activity of the two markets, the difference between them. A configurable historical average, and bars for each candle. The last one is in real time.
How it works:
The script will detect which coin you are looking at, and will use its algorithm to detect if there is an opposite pair. If it is spot, it will identify and look for the perpetual future, and if it is future, it will find the spot prices. It will calculate the difference between them in %, using 0.05 as the default threshold - normally used by brokers as "zero". The futures on average are currently 0.05 higher than the spot in price. And it will show this difference in a bar, green and upwards if the futures are higher, and red if they are lower. and its respective normalized value in %(100)
Example of use:
1: you can check for possible movement patterns in relation to the expectation of future prices and spot, over time.
2. Main: you will notice at times normally prior to larger price movements, the indicator will pulse, indicating changes in the price difference of perpetual futures in relation to spot. - e.g.: in large purchases in spot that pull the price up by buying more positions in the order book, you will see a downward pulse in the indicator bar. as well as in the opposite direction, being an upward pulse.
3. The movement may sometimes be in futures, so you will see the opposite happening, it may be useful to add the opposite currency pair as an additional price, to identify with certainty who is "pulling" whether it is spot or perpetual. But in both cases the possible interpretation is the same. the expectation of futures in relation to the spot price is higher or lower than the average, and there are or are not pulses in one direction or another.
Summary: by following this indicator you can see the real-time vision of large purchases in spot, for example. Someone with great market power may have a future position, and is triggering purchases or ignition in the direction of their position in spot, for example.
Warning: many other indicators and market insights are needed to have a view of the whole and interpret these signals and bar movements. Use and observation lead to an understanding for future actions. But it should always be based on a global context. This is not an indicator to be used alone.
Warning 2: if the opposite pair is not available (exchange only has a spot market, for example) nothing will appear in the indicator. And if it is an exchange other than BYBIT or BINANCE, nothing will probably appear either.
Moments Functions
This script is a TradingView Pine Script (version 5) for calculating and plotting statistical moments of a financial series. Here's a breakdown of what it does:
Script Overview
Purpose:
The script calculates and visualizes moments such as Mean, Variance, Skewness, and Kurtosis of a price series.
It also provides the option to display log returns and various statistical bands.
Inputs:
Moments Selection: Choose from Mean, Variance, Skewness, or Excess Kurtosis.
Source Settings: Define the lookback period and source data (e.g., closing price or log returns).
Plot Settings: Control visibility and styling of plots, bands, and information panels.
Colors Settings: Customize colors for different plot elements.
Functions:
f_va(): Computes sample variance.
f_sd(): Computes sample standard deviation.
f_skew(): Computes sample skewness.
f_kurt(): Computes sample kurtosis.
seskew(): Calculates the standard error of skewness.
sekurt(): Calculates the standard error of kurtosis.
skewcv(): Computes critical values for skewness.
kurtcv(): Computes critical values for kurtosis.
Outputs:
Plots:
Moment values (Mean, Variance, Skewness, Kurtosis).
Log Returns (if selected).
Standard Deviation Bands (if selected).
Critical Values for Skewness and Kurtosis (if selected).
Information Panel: Displays current statistical values and their significance.
Customization:
Users can customize appearance and behavior of the script through various input options, including colors, line thickness, and background settings.
Key Variables and Constants
Constants:
zscoreS and zscoreL: Z-scores for confidence intervals based on sample size.
skewrv and kurtrv: Reference values for skewness and excess kurtosis.
Sample Functions:
f_va() and f_sd(): Custom functions to calculate sample variance and standard deviation.
f_skew() and f_kurt(): Custom functions to calculate skewness and kurtosis.
Critical Values:
Functions skewcv() and kurtcv() calculate critical values used to assess statistical significance of skewness and kurtosis.
Plotting
Plot Types:
Mean, variance, skewness, and excess kurtosis are plotted based on user selection.
Log returns are plotted if enabled.
Standard deviation bands and critical values are plotted if enabled.
Labels:
Information panel labels display mean, variance/standard deviation, skewness, and kurtosis values along with their significance.
Example Usage
To use this script:
Add it to a TradingView chart.
Adjust inputs to configure which statistical moments to display, the source data, and the appearance of the plots.
Review the plotted data and labels to analyze the statistical properties of the selected price series.
This script is useful for traders and analysts looking to perform advanced statistical analysis on financial data directly within TradingView.
When comparing two stock prices over a period of time, the statistical moments—mean, variance, skewness, and kurtosis—can provide a deep insight into the behavior of the stock prices and their distributions. Here’s what each moment signifies in this context:
1. Mean
Definition: The mean (or average) is the sum of the stock prices over the period divided by the number of data points. It represents the central value of the price series.
Interpretation: When comparing two stocks, the mean tells you the average price level of each stock over the period. A higher mean indicates that, on average, the stock price is higher compared to another stock with a lower mean.
Comparison Insight: If Stock A has a higher mean price than Stock B, it implies that Stock A's prices are generally higher than those of Stock B over the given period.
2. Variance
Definition: Variance measures the dispersion or spread of the stock prices around the mean. It is the average of the squared differences from the mean.
Interpretation: A higher variance indicates that the stock prices fluctuate more widely from the mean, implying greater volatility. Conversely, a lower variance indicates more stable and predictable prices.
Comparison Insight: Comparing the variances of two stocks helps in assessing which stock has more price volatility. If Stock A has a higher variance than Stock B, it means Stock A's prices are more volatile and less predictable compared to Stock B.
3. Skewness
Definition: Skewness measures the asymmetry of the distribution of stock prices around the mean. It can be positive, negative, or zero:
Positive Skewness: The distribution has a long right tail, with more frequent small returns and fewer large positive returns.
Negative Skewness: The distribution has a long left tail, with more frequent small returns and fewer large negative returns.
Zero Skewness: The distribution is symmetric around the mean.
Interpretation: Skewness tells you about the direction of outliers in the stock price distribution. Positive skewness means a higher probability of large positive returns, while negative skewness means a higher probability of large negative returns.
Comparison Insight: By comparing skewness, you can understand the nature of extreme returns for two stocks. For example, if Stock A has positive skewness and Stock B has negative skewness, Stock A might have more frequent large gains, whereas Stock B might have more frequent large losses.
4. Kurtosis
Definition: Kurtosis measures the "tailedness" of the distribution of stock prices. It indicates how much of the distribution is in the tails versus the center. High kurtosis means more outliers (extreme returns), while low kurtosis means fewer outliers.
Interpretation:
High Kurtosis: Indicates a higher likelihood of extreme price movements (both high and low) compared to a normal distribution.
Low Kurtosis: Indicates that extreme price movements are less common.
Comparison Insight: Comparing kurtosis between two stocks shows which stock has more extreme returns. If Stock A has higher kurtosis than Stock B, it means Stock A has more frequent extreme price changes, suggesting more risk or opportunities for large gains or losses.
Summary
Mean: Compares average price levels.
Variance: Compares price volatility.
Skewness: Compares the asymmetry of price movements.
Kurtosis: Compares the likelihood of extreme price changes.
By analyzing these statistical moments, you can gain a comprehensive view of how the two stocks behave relative to each other, which can inform investment decisions based on risk, return expectations, and the nature of price movements.
Double CCI Confirmed Hull Moving Average Reversal StrategyOverview
The Double CCI Confirmed Hull Moving Average Strategy utilizes hull moving average (HMA) in conjunction with two commodity channel index (CCI) indicators: the slow and fast to increase the probability of entering when the short and mid-term uptrend confirmed. The main idea is to wait until the price breaks the HMA while both CCI are showing that the uptrend has likely been already started. Moreover, strategy uses exponential moving average (EMA) to trail the price when it reaches the specific level. The strategy opens only long trades.
Unique Features
Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Double trade setup confirmation: Strategy utilizes two different period CCI indicators to confirm the breakouts of HMA.
Trailing take profit level: After reaching the trailing profit activation level scrip activate the trailing of long trade using EMA. More information in methodology.
Methodology
The strategy opens long trade when the following price met the conditions:
Short-term period CCI indicator shall be above 0.
Long-term period CCI indicator shall be above 0.
Price shall cross the HMA and candle close above it with the same candle
When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility.
At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with EMA. If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”.
Strategy settings
In the inputs window user can setup the following strategy settings:
ATR Stop Loss (by default = 1.75)
ATR Trailing Profit Activation Level (by default = 2.25)
CCI Fast Length (by default = 25, used for calculation short term period CCI
CCI Slow Length (by default = 50, used for calculation long term period CCI)
Hull MA Length (by default = 34, period of HMA, which shall be broken to open trade)
Trailing EMA Length (by default = 20)
User can choose the optimal parameters during backtesting on certain price chart.
Justification of Methodology
Before understanding why this particular combination of indicator has been chosen let's briefly explain what is CCI and HMA.
The Commodity Channel Index (CCI) is a momentum-based technical indicator used in trading to measure a security's price relative to its average price over a given period. Developed by Donald Lambert in 1980, the CCI is primarily used to identify cyclical trends in a security, helping traders to spot potential buying or selling opportunities.
The CCI formula is:
CCI = (Typical Price − SMA) / (0.015 × Mean Deviation)
Typical Price (TP): This is calculated as the average of the high, low, and closing prices for the period.
Simple Moving Average (SMA): This is the average of the Typical Prices over a specific number of periods.
Mean Deviation: This is the average of the absolute differences between the Typical Price and the SMA.
The result is a value that typically fluctuates between +100 and -100, though it is not bounded and can go higher or lower depending on the price movement.
The Hull Moving Average (HMA) is a type of moving average that was developed by Alan Hull to improve upon the traditional moving averages by reducing lag while maintaining smoothness. The goal of the HMA is to create an indicator that is both quick to respond to price changes and less prone to whipsaws (false signals).
How the Hull Moving Average is Calculated?
The Hull Moving Average is calculated using the following steps:
Weighted Moving Average (WMA): The HMA starts by calculating the Weighted Moving Average (WMA) of the price data over a period square root of n (sqrt(n))
Speed Adjustment: A WMA is then calculated for half of the period n/2, and this is multiplied by 2 to give more weight to recent prices.
Lag Reduction: The WMA of the full period n is subtracted from the doubled n/2 WMA.
Final Smoothing: To smooth the result and reduce noise, a WMA is calculated for the square root of the period n.
The formula can be represented as:
HMA(n) = WMA(WMA(n/2) × 2 − WMA(n), sqrt(n))
The Weighted Moving Average (WMA) is a type of moving average that gives more weight to recent data points, making it more responsive to recent price changes than a Simple Moving Average (SMA). In a WMA, each data point within the selected period is multiplied by a weight, with the most recent data receiving the highest weight. The sum of these weighted values is then divided by the sum of the weights to produce the WMA.
This strategy leverages HMA of user given period as a critical level which shall be broken to say that probability of trend change to the upside increased. HMA reacts faster than EMA or SMA to the price change, that’s why it increases chances to enter new trade earlier. Long-term period CCI helps to have an approximation of mid-term trend. If it’s above 0 the probability of uptrend increases. Short-period CCI allows to have an approximation of short-term trend reversal from down to uptrend. This approach increases chances to have a long trade setup in the direction of mid-term trend when the short-term trend starts to reverse.
ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements. It’s also important to make a note, that script uses HMA to enter the trade, but for trailing it leverages EMA. It’s used because EMA has no such fast reaction to price move which increases probability not to be stopped out from any significant uptrend move.
Backtest Results
Operating window: Date range of backtests is 2022.07.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 100%
Maximum Single Position Loss: -4.67%
Maximum Single Profit: +19.66%
Net Profit: +14897.94 USDT (+148.98%)
Total Trades: 104 (36.54% win rate)
Profit Factor: 2.312
Maximum Accumulated Loss: 1302.66 USDT (-9.58%)
Average Profit per Trade: 143.25 USDT (+0.96%)
Average Trade Duration: 34 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 2h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Market Breadth - AsymmetrikMarket Breadth - Asymmetrik User Manual
Overview
The Market Breadth - Asymmetrik is a script designed to provide insights into the overall market condition by plotting three key indicators based on stocks within the S&P 500 index. It helps traders assess market momentum and strength through visual cues and is especially useful for understanding the proportion of stocks trading above their respective moving averages.
Features
1. Market Breadth Indicators:
- Breadth 20D (green line): Represents the percentage of stocks in the S&P 500 that are above their 20-day moving average.
- Breadth 50D (yellow line): Represents the percentage of stocks in the S&P 500 that are above their 50-day moving average.
- Breadth 100D (red line): Represents the percentage of stocks in the S&P 500 that are above their 100-day moving average.
2. Horizontal Lines for Context:
- Green line at 10%
- Lighter green line at 20%
- Grey line at 50%
- Light red line at 80%
- Dark red line at 90%
3. Background Color Alerts:
- Green background when all three indicators are under 20%, indicating a potential oversold market condition.
- Red background when all three indicators are over 80%, indicating a potential overbought market condition.
Interpreting the Indicator
- Market Breadth Lines: Observe the plotted lines to assess the percentage of stocks above their moving averages.
- Horizontal Lines: Use the horizontal lines to quickly identify important threshold levels.
- Background Colors: Pay attention to background colors for quick insights:
- Green: All indicators suggest a potentially oversold market condition (below 20).
- Red: All indicators suggest a potentially overbought market condition (above 80).
Troubleshooting
- If the indicator does not appear as expected, please contact me.
- This indicator works only on daily and weekly timeframes.
Conclusion
This Market Breadth Indicator offers a visual representation of market momentum and strength through three key indicators, helping you identify potential buying and selling zones.
DSL Oscillator [BigBeluga]DSL Oscillator BigBeluga
The DSL (Discontinued Signal Lines) Oscillator is an advanced technical analysis tool that combines elements of the Relative Strength Index (RSI), Discontinued Signal Lines, and Zero-Lag Exponential Moving Average (ZLEMA). This versatile indicator is designed to help traders identify trend direction, momentum, and potential reversal points in the market.
What are Discontinued Signal Lines (DSL)?
Discontinued Signal Lines are an extension of the traditional signal line concept used in many indicators. While a standard signal line compares an indicator's value to its smoothed (slightly lagging) state, DSL takes this idea further by using multiple adaptive lines that respond to the indicator's current value. This approach provides a more nuanced view of the indicator's state and momentum, making it easier to determine trends and desired states of the indicator.
🔵 KEY FEATURES
● Discontinued Signal Lines (DSL)
Uses multiple adaptive lines that respond to the indicator's value
Provides a more nuanced view of the indicator's state and momentum
Helps determine trends and desired states of the indicator more effectively
Available in "Fast" and "Slow" modes for different responsiveness
Acts as dynamic support and resistance levels for the oscillator
● DSL Oscillator
Based on a combination of RSI and Discontinued Signal Lines
// Discontinued Signal Lines
dsl_lines(src, length)=>
UP = 0.
DN = 0.
UP := (src > ta.sma(src, length)) ? nz(UP ) + dsl_mode / length * (src - nz(UP )) : nz(UP )
DN := (src < ta.sma(src, length)) ? nz(DN ) + dsl_mode / length * (src - nz(DN )) : nz(DN )
Smoothed using Zero-Lag Exponential Moving Average for reduced lag
// Zero-Lag Exponential Moving Average function
zlema(src, length) =>
lag = math.floor((length - 1) / 2)
ema_data = 2 * src - src
ema2 = ta.ema(ema_data, length)
ema2
Oscillates between 0 and 100
Color-coded for easy interpretation of market conditions
● Signal Generation
Generates buy signals when the oscillator crosses above the lower DSL line below 50
Generates sell signals when the oscillator crosses below the upper DSL line above 50
Signals are visualized on both the oscillator and the main chart
● Visual Cues
Background color changes on signal occurrences for easy identification
Candles on the main chart are colored based on the latest signal
Oscillator line color changes based on its position relative to the DSL lines
🔵 HOW TO USE
● Trend Identification
Use the color and position of the DSL Oscillator relative to its Discontinued Signal Lines to determine the overall market trend
● Entry Signals
Look for buy signals (green circles) when the oscillator crosses above the lower DSL line
Look for sell signals (blue circles) when the oscillator crosses below the upper DSL line
Confirm signals with the triangles on the main chart and background color changes
● Exit Signals
Consider exiting long positions on exit signals and short positions on Entery signals
Watch for the oscillator crossing back between the DSL lines as a potential early exit signal
● Momentum Analysis
Strong momentum is indicated when the oscillator moves rapidly towards extremes and away from the DSL lines
Weakening momentum can be spotted when the oscillator struggles to reach new highs or lows, or starts converging with the DSL lines
The space between the DSL lines can indicate potential momentum strength - wider gaps suggest stronger trends
● Confirmation
Use the DSL lines as dynamic support/resistance levels for the oscillator
Look for convergence between oscillator signals and price action on the main chart
Combine signals with other technical indicators or chart patterns for stronger confirmation
🔵 CUSTOMIZATION
The DSL Oscillator offers several customization options:
Adjust the main calculation length for the DSL lines
Choose between "Fast" and "Slow" modes for the DSL lines calculation
By fine-tuning these settings, traders can adapt the DSL Oscillator to various market conditions and personal trading strategies.
The DSL Oscillator provides a multi-faceted approach to market analysis, combining trend identification, momentum assessment, and signal generation in one comprehensive tool. Its dynamic nature and visual cues make it suitable for both novice and experienced traders across various timeframes and markets. The integration of RSI, Discontinued Signal Lines, and ZLEMA offers traders a sophisticated yet intuitive tool to inform their trading decisions.
The use of Discontinued Signal Lines sets this oscillator apart from traditional indicators by providing a more adaptive and nuanced view of market conditions. This can potentially lead to more accurate trend identification and signal generation, especially in markets with varying volatility.
Traders can use the DSL Oscillator to identify trends, spot potential reversals, and gauge market momentum. The combination of the oscillator, dynamic signal lines, and clear visual signals provides a holistic view of market conditions. As with all technical indicators, it's recommended to use the DSL Oscillator in conjunction with other forms of analysis and within the context of a well-defined trading strategy.
Supply and Demand Zones with Enhanced SignalsThis Pine Script indicator combines supply and demand zone analysis with dynamic buy/sell signals to enhance trading strategies. It provides a robust framework for identifying optimal trading opportunities and managing existing trades.
Key Features:
Supply and Demand Zones: The indicator identifies significant supply and demand zones based on recent price action. These zones are plotted as horizontal lines to help traders visualize potential reversal points.
Exponential Moving Average (EMA): A 21-period EMA is used to determine the prevailing trend and generate buy and sell signals.
Relative Strength Index (RSI): The 14-period RSI is utilized to filter buy and sell signals, providing additional context on overbought and oversold conditions.
Signal Generation:
Buy Signal: Triggered when the price crosses above the EMA and RSI indicates that the market is not overbought.
Sell Signal: Triggered when the price crosses below the EMA and RSI indicates that the market is not oversold.
Enhanced Exit Signals:
Exit Buy Signal: Generated if an opposite sell signal occurs or the higher timeframe RSI indicates overbought conditions.
Exit Sell Signal: Generated if an opposite buy signal occurs or the higher timeframe RSI indicates oversold conditions.
Trade Management:
Tracks active trades and provides exit signals based on the occurrence of opposite trading signals. This helps in managing positions more effectively and reducing potential losses.
Usage:
Supply and Demand Zones: Look for price action around these zones to identify potential trading opportunities.
EMA and RSI: Use buy and sell signals in conjunction with EMA and RSI to validate trading decisions.
Higher Timeframe RSI: Utilize this for additional confirmation and exit signals.
Plotting:
Supply Zone: Plotted as a red horizontal line.
Demand Zone: Plotted as a green horizontal line.
EMA: Plotted as a blue line.
Buy and Sell Signals: Indicated by green and red triangle shapes, respectively.
Exit Signals: Indicated by blue and orange X shapes.
This indicator is designed to help traders make informed decisions by combining technical analysis with strategic trade management.
Custom Supertrend Multi-Timeframe Indicator [Pineify]Supertrend Multi-Timeframe Indicator
Introduction
The Supertrend Multi-Timeframe Indicator is an advanced trading tool designed to help traders identify trend directions and potential buy/sell signals by combining Supertrend indicators from multiple timeframes. This script is original in its approach to integrating Supertrend calculations across different timeframes, providing a more comprehensive view of market trends.
Concepts and Calculations
The indicator utilizes the Supertrend algorithm, which is based on the Average True Range (ATR). The Supertrend is a popular tool for trend-following strategies, and this script enhances its capabilities by incorporating data from a larger timeframe.
Supertrend Factor: Determines the sensitivity of the Supertrend line.
ATR Length: Defines the period for calculating the Average True Range.
Larger Supertrend Factor and ATR Length: Applied to the larger timeframe for a broader trend perspective.
Larger Timeframe: The higher timeframe from which the secondary Supertrend data is sourced.
How It Works
The script calculates the Supertrend for the current timeframe using the specified factor and ATR length.
Simultaneously, it requests Supertrend data from a larger timeframe.
Buy and sell signals are generated based on crossovers and crossunders of the Supertrend lines from both timeframes.
Visual cues (up and down arrows) are plotted on the chart to indicate buy and sell signals.
Background colors change to reflect the trend direction: green for an uptrend and red for a downtrend.
Usage
Add the indicator to your TradingView chart.
Customize the Supertrend factors, ATR lengths, and larger timeframe according to your trading strategy.
Enable or disable buy and sell alerts as needed.
Monitor the chart for visual signals and background color changes to make informed trading decisions.
Note: The indicator is best used in conjunction with other technical analysis tools and should not be relied upon as the sole basis for trading decisions.
Conclusion
The Supertrend Multi-Timeframe Indicator offers a unique and powerful way to analyze market trends by leveraging the strengths of the Supertrend algorithm across multiple timeframes. Its customizable settings and clear visual signals make it a valuable addition to any trader's toolkit.
Relative Strength according to Oster (RSO)Overview:
Relative Strength according to Oster (RSO) is an innovative tool that redefines how traders assess an asset's market strength. Moving beyond traditional indicators, RSO offers a sophisticated and highly responsive measure of an asset's potential to continue performing well. By integrating groundbreaking methodologies, RSO equips traders with unparalleled insights into market dynamics, making it an essential tool for anyone looking to stay ahead in today's fast-paced trading environment.
Understanding RSL (Relative Strength according to Levy):
At its core, Relative Strength according to Levy (RSL) is a powerful concept rooted in the idea that an asset currently exhibiting strength is more likely to maintain or even enhance that strength in the future. RSL calculates this by comparing an asset's current price to its moving average, providing a clear picture of its relative performance over time. The further its value is above 1, the higher the market momentum and vice versa. This relationship to the moving average is crucial, as it indicates not just where the asset stands today but also its trajectory in the context of historical performance. The ability to identify assets that consistently outperform is a game-changer for traders, and RSL has long been a cornerstone in this pursuit.
RSO vs. Traditional RSL: A Leap Forward
The RSO takes the traditional RSL concept and propels it into new territory with its innovative correlation-based approach. This is where RSO truly shines, offering a unique and sophisticated analysis that goes far beyond the basics.
Why RSO is Revolutionary:
Correlation Adjustment: The RSO doesn’t just measure an asset’s strength in isolation. Instead, it adjusts its readings based on how closely the asset's price movements correlate with a chosen benchmark. This groundbreaking feature ensures that the RSO is not just reactive to past performance but also predictive of how the asset might behave relative to the broader market, adding a layer of precision that is unparalleled in traditional strength indicators.
Superior Strength Option: With the RSO, traders have the option to include superior strength factors, adding another dimension of insight. This feature allows for more stable and reliable long-term signals. On the flip side, those who prefer a more dynamic trading style can opt to exclude this factor for more frequent, shorter-term signals. This level of customization is rare and sets the RSO apart as a truly adaptable tool.
Enhanced Market Insights: RSO’s correlation-based approach doesn’t just show how strong an asset is—it reveals how that strength is likely to develop in relation to the benchmark's underlying trends. This isn’t merely about comparing performance; it’s about understanding the asset’s potential trajectory in a much broader market context. Such insight is invaluable for making informed, strategic trading decisions.
Practical Application:
The RSO isn’t just innovative in theory; it’s designed for practical, real-world trading. Traders can set customized alerts based on RSO’s readings, ensuring they’re always aware of key buy or sell signals as they occur. The flexibility to include or exclude superior strength factors means that RSO can be tailored to fit any trading style, whether focused on long-term investments or short-term opportunities.
Conclusion:
In conclusion, the Relative Strength according to Oster (RSO) is more than just an indicator; it’s a breakthrough in market analysis. By integrating correlation adjustments and offering unparalleled customization options, RSO provides traders with insights that are both deeper and more actionable than ever before. This innovative tool is designed to empower traders, giving them the edge they need to succeed in an increasingly complex market landscape. Whether you’re a seasoned trader or just starting out, the RSO is a must-have tool for navigating market trends with confidence and precision.
Price & Momentum Reversal Indicator [TradeDots]Price & Momentum Divergence Indicator is a variant of the Chande Momentum Oscillator (CMO), designed to identify reversal patterns in overvalued and undervalued markets. This indicator aims to mitigate the common problem of all oscillating indicators: false buy/sell signals during prolonged market trends, by incorporating a volume-weighted approach and momentum analysis.
📝 HOW IT WORKS
Price Extremeness Calculation
The indicator evaluates the extremeness of the current price by analyzing price changes over a fixed window of candlesticks.
It separates the price changes into positive and negative changes, then multiplies them by the bar volume to obtain volume-weighted values, giving higher significance to bars with larger volumes.
Extremeness Ratio
The ratio is calculated by taking the difference between the total positive changes and total negative changes, and then dividing this result by the sum of the total positive and negative changes.
The result is then smoothed to reduce market noise and rescaled to a range between -100 to 100, where 100 indicates all price changes within the window are positive.
Momentum Analysis
Momentum is calculated by measuring the rate of change of the smoothed extremeness ratio, indicating whether market extremeness is slowing and showing signs of reversion.
Reversal Signal Confirmation
For an asset to be considered a reversal, it has to be in the overvalued or undervalued zone (exceeding the overvalued & undervalued threshold). It must then show a slowed momentum change and a price reversion.
Lastly, candlestick analysis is used to confirm the reversal signal, ensuring there is no room for further breakout price movement.
🛠️ HOW TO USE
Candlestick Visualization
Candlestick bodies are painted with gradient colors representing the smoothed price extremeness (OBOS Index), ranging from -100 (solid red) to 100 (solid green). The exact value is displayed in a table at the bottom right corner.
Slowing price momentum is indicated with blue (bearish) and purple (bullish) colors, showing market pressure from the opposite side.
Reversal Confirmation
A decrease in price momentum combined with a price reversal triggers a signal label on the candlestick, indicating a potential pullback or reversal. This can serve as a reference for better entry and exit points.
⭐️ Premium Features
Higher Timeframe (HTF) Analysis
The indicator includes a feature to apply the same algorithm to a selected higher timeframe, ensuring trend alignment across multiple timeframes.
Alert Functions
Real-time notifications for overvalued and undervalued conditions, allowing traders to monitor trades and reversal signals anywhere and anytime.
❗️LIMITATIONS
Accuracy decreases in volatile and noisy markets.
Extended bullish or bearish market conditions may affect performance.
See Author's instructions below to get instant access to this indicator.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Momentum Trend [MT]The Momentum Trend indicator is an innovative technical analysis tool designed to capture and visualize momentum trends in financial markets. This advanced indicator goes beyond traditional momentum measures, offering a unique perspective on price action and trend strength.
Core Functionality:
Trend Momentum Index (TMI) Calculation:
At the heart of this indicator is the Trend Momentum Index (TMI), a proprietary algorithm that combines moving averages with price action analysis to gauge momentum. The TMI is calculated using a user-defined source, length, and moving average type.
Dynamic Trend Visualization:
The indicator uses a color-coded column plot to represent the TMI values, providing an intuitive visual representation of trend strength and direction. The colors change based on specific conditions, offering instant insights into the current market state.
Adaptive Momentum Analysis:
The TMI adapts to changing market conditions by comparing current values to historical ones, allowing for a more nuanced understanding of momentum shifts.
Key Inputs and Their Significance:
TMI Source:
Allows users to select the price data for TMI calculations. The default is the closing price, but users can choose alternative sources for different analytical perspectives.
TMI Length:
Defines the lookback period for the TMI calculation. The default of 8 provides a balance between responsiveness and stability, but users can adjust this to suit their trading style.
Moving Average Type:
Users can select from various moving average types (SMA, EMA, SMMA, WMA, VWMA) for the base calculation, allowing for customization based on trading preferences.
What Makes It Unique:
Comprehensive Momentum Analysis:
The TMI combines elements of trend following and momentum, providing a more holistic view of market dynamics than traditional momentum indicators.
Multi-Faceted Trend Identification:
The color-coding system doesn't just show bullish or bearish trends, but also identifies accelerating and decelerating momentum in both directions.
Flexible Moving Average Integration:
The ability to choose different moving average types allows traders to fine-tune the indicator's responsiveness and smoothness.
Visual Clarity:
The column-style plot with color changes offers clear, at-a-glance insights into trend strength and direction.
Momentum Comparison Logic:
The indicator incorporates logic to compare current momentum changes with recent historical changes, providing context for the current market state.
The Momentum Trend indicator represents a sophisticated approach to momentum and trend analysis. By combining moving averages, price action, and comparative momentum logic, it offers traders a powerful tool for identifying potential trend continuations, reversals, and momentum shifts.
This indicator is particularly valuable for traders looking to:
- Identify the start of new trends
- Spot potential trend reversals
- Gauge the strength of ongoing trends
- Time entries and exits based on momentum shifts
Trend Strength with Volatility and Volume [ST]Trend Strength with Volatility and Volume
Description in English:
This indicator combines market volatility and trading volume to measure the current trend strength. It helps identify when the trend is gaining or losing momentum.
Detailed Explanation:
Configuration:
Length: This input defines the period over which the moving average is calculated. The default value is 14.
MA Type: This input allows you to choose between a Simple Moving Average (SMA) and an Exponential Moving Average (EMA).
Volatility Length: This input defines the period over which the ATR (Average True Range) is calculated. The default value is 14.
Volume Length: This input defines the period over which the moving average of volume is calculated. The default value is 14.
Trend Strength Calculation:
Moving Average (MA): The script calculates the moving average of the closing price based on the selected type (SMA or EMA) and period.
Volatility (ATR): The ATR is used to measure market volatility over the specified period.
Volume MA: The script calculates the moving average of the trading volume based on the selected type (SMA or EMA) and period.
Trend Strength: The trend strength is calculated as the difference between the closing price and the moving average, divided by the volatility, and multiplied by the volume normalized by its moving average.
Plotting:
The trend strength is plotted as a line chart. Positive values indicate a strong upward trend, while negative values indicate a strong downward trend.
A horizontal line is added at the zero level to help identify the neutral point.
Indicator Benefits:
Trend Identification: Helps traders identify the strength of the current trend by combining price, volatility, and volume.
Visual Cues: Provides clear visual signals for trend strength, aiding in making informed trading decisions.
Customizable Parameters: Allows traders to adjust the length of the moving averages, ATR, and volume to suit different trading strategies and market conditions.
Justification of Component Combination:
Combining price, volatility, and volume provides a comprehensive measure of trend strength. This combination enhances the trader's ability to make informed decisions based on multiple market factors.
How Components Work Together:
The script calculates the moving average of the closing price and trading volume.
It measures market volatility using the ATR.
The trend strength is calculated by combining these components, providing a robust measure of the current trend's strength.
Título: Força da Tendência com Volatilidade e Volume
Descrição em Português:
Este indicador combina a volatilidade do mercado, medida pelo ATR (Average True Range), e o volume de negociações para medir a força da tendência atual. Ele ajuda a identificar quando a tendência está ganhando ou perdendo força.
Explicação Detalhada:
Configuração:
Comprimento: Este parâmetro define o período para o cálculo da média móvel. O valor padrão é 14.
Tipo de MA: Este parâmetro permite escolher entre uma Média Móvel Simples (SMA) e uma Média Móvel Exponencial (EMA).
Comprimento da Volatilidade: Este parâmetro define o período para o cálculo do ATR (Average True Range). O valor padrão é 14.
Comprimento do Volume: Este parâmetro define o período para o cálculo da média móvel do volume. O valor padrão é 14.
Cálculo da Força da Tendência:
Média Móvel (MA): O indicador calcula a média móvel do preço de fechamento com base no tipo selecionado (SMA ou EMA) e período.
Volatilidade (ATR): O ATR é usado para medir a volatilidade do mercado ao longo do período especificado.
Média Móvel do Volume: O indicador calcula a média móvel do volume de negociação com base no tipo selecionado (SMA ou EMA) e período.
Força da Tendência: A força da tendência é calculada como a diferença entre o preço de fechamento e a média móvel, dividida pela volatilidade e multiplicada pelo volume normalizado pela sua média móvel.
Plotagem:
A força da tendência é plotada como um gráfico de linhas. Valores positivos indicam uma forte tendência de alta, enquanto valores negativos indicam uma forte tendência de baixa.
Uma linha horizontal é adicionada no nível zero para ajudar a identificar o ponto neutro.
Benefícios do Indicador:
Identificação de Tendências: Este indicador ajuda os traders a identificar a força da tendência atual, combinando preço, volatilidade e volume.
Sinais Visuais Claros: Fornece sinais visuais claros para a força da tendência, facilitando a tomada de decisões informadas.
Parâmetros Personalizáveis: Os traders podem ajustar o comprimento das médias móveis, ATR e volume para se adequar a diferentes estratégias de negociação e condições de mercado.
Justificação da Combinação de Componentes:
A combinação de preço, volatilidade e volume fornece uma medida abrangente da força da tendência.
Isso melhora a capacidade dos traders de tomar decisões informadas com base em múltiplos fatores do mercado.
Como os Componentes Funcionam Juntos:
O indicador calcula a média móvel do preço de fechamento e do volume de negociação.
Mede a volatilidade do mercado usando o ATR.
A força da tendência é calculada combinando esses componentes, fornecendo uma medida robusta da força da tendência atual.
