H-Infinity Volatility Filter [QuantAlgo]Introducing the H-Infinity Volatility Filter by QuantAlgo 📈💫
Enhance your trading/investing strategy with the H-Infinity Volatility Filter , a powerful tool designed to filter out market noise and identify clear trend signals in volatile conditions. By applying an advanced H∞ filtering process, this indicator assists traders and investors in navigating uncertain market conditions with improved clarity and precision.
🌟 Key Features:
🛠 Customizable Noise Parameters: Adjust worst-case noise and disturbance settings to tailor the filter to various market conditions. This flexibility helps you adapt the indicator to handle different levels of market volatility and disruptions.
⚡️ Dynamic Trend Detection: The filter identifies uptrends and downtrends based on the filtered price data, allowing you to quickly spot potential shifts in the market direction.
🎨 Color-Coded Visuals: Easily differentiate between bullish and bearish trends with customizable color settings. The indicator colors the chart’s candles according to the detected trend for immediate clarity.
🔔 Custom Alerts: Set alerts for trend changes, so you’re instantly informed when the market transitions from bullish to bearish or vice versa. Stay updated without constantly monitoring the charts.
📈 How to Use:
✅ Add the Indicator: Add the H-Infinity Volatility Filter to your favourites and apply it to your chart. Customize the noise and disturbance parameters to match the volatility of the asset you are trading/investing. This allows you to optimize the filter for your specific strategy.
👀 Monitor Trend Shifts: Watch for clear visual signals as the filter detects uptrends or downtrends. The color-coded candles and line plots help you quickly assess market conditions and potential reversals.
🔔 Set Alerts: Configure alerts to notify you when the trend changes, allowing you to react quickly to potential market shifts without needing to manually track price movements.
🌟 How It Works and Academic Background:
The H-Infinity Volatility Filter is built on the foundations of H∞ (H-infinity) control theory , a mathematical framework originating from the field of engineering and control systems. Developed in the 1980s by notable engineers such as George Zames and John C. Doyle , this theory was designed to help systems perform optimally under uncertain and noisy conditions. H∞ control focuses on minimizing the worst-case effects of disturbances and noise, making it a powerful tool for managing uncertainty in complex environments.
In financial markets, where unpredictable price fluctuations and noise often obscure meaningful trends, this same concept can be applied to price data to filter out short-term volatility. The H-Infinity Volatility Filter adopts this approach, allowing traders and investors to better identify potential trends by reducing the impact of random price movements. Instead of focusing on precise market predictions, the filter increases the probability of highlighting significant trends by smoothing out market noise.
This indicator works by processing historical price data through an H∞ filter that continuously adjusts based on worst-case noise levels and disturbances. By considering several past states, it estimates the current price trend while accounting for potential external disruptions that might influence price behavior. Parameters like "worst-case noise" and "disturbance" are user-configurable, allowing traders to adapt the filter to different market conditions. For example, in highly volatile markets, these parameters can be adjusted to manage larger price swings, while in more stable markets, they can be fine-tuned for smoother trend detection.
The H-Infinity Volatility Filter also incorporates a dynamic trend detection system that classifies price movements as bullish or bearish. It uses color-coded candles and plots—green for bullish trends and red for bearish trends—to provide clear visual cues for market direction. This helps traders and investors quickly interpret the trend and act on potential signals. While the indicator doesn’t guarantee accuracy in trend prediction, it significantly reduces the likelihood of false signals by focusing on meaningful price changes rather than random fluctuations.
How It Can Be Applied to Trading/Investing:
By applying the principles of H∞ control theory to financial markets, the H-Infinity Volatility Filter provides traders and investors with a sophisticated tool that manages uncertainty more effectively. Its design makes it suitable for use in a wide range of markets—whether in fast-moving, volatile environments or calmer conditions.
The indicator is versatile and can be used in both short-term trading and medium to long-term investing strategies. Traders can tune the filter to align with their specific risk tolerance, asset class, and market conditions, making it an ideal tool for reducing the effects of market noise while increasing the probability of detecting reliable trend signals.
For investors, the filter can help in identifying medium to long-term trends by filtering out short-term price swings and focusing on the broader market direction. Whether applied to stocks, forex, commodities, or cryptocurrencies, the H-Infinity Volatility Filter helps traders and investors interpret market behavior with more confidence by offering a more refined view of price movements through its noise reduction techniques.
Disclaimer:
The H-Infinity Volatility Filter is designed to assist in market analysis by filtering out noise and volatility. It should not be used as the sole tool for making trading or investment decisions. Always incorporate other forms of analysis and risk management strategies. No statements or signals from this indicator or us should be considered financial advice. Past performance is not indicative of future results.
Forex
Forex Macro Metrics [MacroGlide]"Forex Macro Metrics " is a powerful tool for analyzing macroeconomic metrics, designed to help traders make more informed decisions in the forex market. This indicator displays key economic indicators such as interest rates, money supply (M1 and M2), unemployment rate, and government debt for various currencies and their pairs, allowing users to assess the macroeconomic differences between the base and quote currencies.
Key Features:
• Interest Rates Display: Includes interest rates for major world currencies with the ability to show the differential between the base and quote currencies.
• Money Supply Analysis (M1 and M2): Displays the money supply for both the base and quote currencies, including differential calculations.
• Unemployment Rate: Compares the unemployment rates between currencies, showing the differences on the chart.
• Government Debt: Shows government debt levels for the base and quote currencies with differential calculations.
• Customizable Options: Enable/disable specific metrics and adjust colors for better visual clarity.
How to Use:
• Select a Currency Pair: Apply the indicator to your chart and choose the desired currency pair. The indicator will automatically load the relevant data for the base and quote currencies.
• Adjust Display Settings: Use the indicator settings to enable or disable specific metrics and their differentials.
• Analyze the Data: Compare the economic conditions of the two currencies through the charts and identify potential trading opportunities based on macroeconomic differences.
Methodology:
The indicator uses economic data available through TradingView tickers to calculate the values of the base and quote currencies. Differentials are calculated by subtracting the values of the quote currency from the base currency, allowing for a visual assessment of their differences. The displayed data includes historical changes, helping to identify trends and potential reversal points.
Originality and Usefulness:
"Forex Macro Metrics " is a unique tool that combines several key macroeconomic indicators into one comprehensive indicator. This simplifies the analysis process for traders looking to understand the fundamental differences between currencies. Using this approach provides an advantage in assessing long-term trends and potential shifts in currency pairs driven by changes in macroeconomic conditions.
Charts:
The indicator displays data in the form of lines and areas on the chart, with interest rates shown as lines for the base and quote currencies, accompanied by an area representing the differential. For money supply (M1 and M2), lines are drawn for each currency, with areas highlighting the differences. Similarly, the unemployment rate and government debt are displayed with clear visual separation of the data and their differentials, making it easy to compare and analyze the macroeconomic conditions of the currencies involved.
Enjoy the game!
VS Dynamic Candle Replicator ProThe "VS Dynamic Candle Replicator Pro" is a powerful and flexible Pine Script™ indicator designed for traders who want to gain a better understanding of price action by replicating key candle movements across various timeframes. This indicator allows users to project the Open, High, Low, and Close of any candle from a selected timeframe onto the current chart, making it easy to compare candle dynamics, anticipate future price movements, and identify potential reversal or continuation points.
By visually projecting past candles from any timeframe and adjusting their properties such as color, size, and offset, traders can gain unique insights into market conditions. Whether you are a day trader or a swing trader, this tool offers an innovative way to visualize price patterns and make informed decisions.
Indicator Description:
The VS Dynamic Candle Replicator Pro dynamically replicates a selected timeframe's candle and overlays it on your current chart. This enables you to visually monitor how past candle characteristics influence the present market behavior.
This indicator is equipped with two main components:
Dynamic Candle Replicator:
This feature allows users to project a candle from a chosen timeframe onto the current chart. You can choose the candle’s position, appearance, and even toggle the visualization on or off. For example, you can project a daily candle onto a 15-minute chart and compare how intraday movements correspond to the daily range.
Previous Daily Candle Projection:
Users can also choose to display the previous daily candle (or any other timeframe) directly on the chart. This helps to see the momentum carried from the previous day and its impact on today’s price action.
Both of these components feature full customization of candle width, line width, and colors. Additionally, the indicator labels key price levels—Open, High, Low, and Close—so traders can clearly identify critical support and resistance levels.
Features & Settings:
1. Timeframe Selection:
Timeframe: Choose which timeframe’s candle you want to replicate. Options include anything from intraday periods (like 1 minute) to daily, weekly, or even monthly candles. This flexibility allows traders to seamlessly shift between different market perspectives.
2. Candle Offset & Sizing:
Offset (bars to the right): Control how many bars the replicated candle is shifted to the right. This is useful for visual clarity, allowing you to isolate the replicated candle from the current price action.
Candle Width & Line Width: Adjust the visual thickness of the candle body and the wicks for better visibility.
3. Candle Color Customization:
Bullish/Bearish Colors: Choose distinct colors for bullish and bearish candles. This visual cue makes it easier to distinguish market trends at a glance.
4. Projected Levels (Lines & Labels):
Dynamic labels and lines mark the Open, High, Low, and Close levels of the replicated candle. These are also fully customizable in terms of color, line style, and label positioning.
5. Vertical Offset:
Adjust the vertical positioning of labels for the price levels to prevent overlapping and ensure clarity on the chart.
6. Toggle Features:
Show or hide both the dynamic replicator candle and the previous daily candle at any time to declutter the chart when needed.
How to Use the VS Dynamic Candle Replicator Pro:
Select the Desired Timeframe:
Begin by choosing the timeframe for the candle you want to replicate. For example, if you want to observe the behavior of a daily candle on a 5-minute chart, set the timeframe to "1D".
Set the Offset and Size:
Customize the position of the replicated candle by adjusting the "Offset (bars to the right)" input. This ensures the replicated candle does not interfere with the current price action. You can also adjust the size of the candle body and wicks for optimal visibility.
Customize Colors:
Choose your preferred colors for bullish and bearish candles to quickly recognize the market sentiment represented by the replicated candle. This is particularly helpful for distinguishing between periods of upward and downward momentum.
Enable or Disable Features:
You can toggle the display of the dynamic replicator candle and the previous daily candle depending on what you want to focus on. This flexibility is useful for decluttering your chart when you need to focus on specific price patterns.
Observe Key Levels:
The indicator will project lines and labels marking the Open, High, Low, and Close of the selected timeframe candle. These key levels act as crucial support and resistance zones and provide insights into potential price reactions.
Monitor Price Action Around Replicated Candles:
Use the replicated candle as a reference to compare the current price action. This can be a helpful tool in identifying trends, spotting reversals, or confirming price breakouts.
Applications:
Day Trading: Overlay higher timeframe candles (such as daily or 4-hour candles) on shorter timeframes (e.g., 5-minute or 15-minute charts) to better understand the broader context and key levels.
Swing Trading: Visualize how daily or weekly candles align with intraday movements to make more informed decisions on trend continuations or reversals.
Key Level Identification: The projected Open, High, Low, and Close levels serve as important reference points for support and resistance, helping traders execute more precise entries and exits.
Conclusion:
The VS Dynamic Candle Replicator Pro is an innovative tool designed for traders who want to enhance their market analysis by comparing past and present price action in a visually intuitive manner. Its high level of customization and ease of use make it a valuable asset for traders of all experience levels. Whether you are looking to improve your understanding of market dynamics or refine your trading strategy, this indicator provides the necessary tools to gain a clearer perspective on price movements.
Embrace a smarter way of analyzing the market with the VS Dynamic Candle Replicator Pro and take your trading to the next level!
Forex Session Tracker [MacroGlide]Forex Session Tracker is a tool designed to track and visualize trading activity across the four key Forex market sessions: New York, London, Tokyo, and Sydney. The indicator helps traders see the time intervals of each session, their impact on price movements, and analyze volatility within these sessions.
Key Features:
• Session Visualization: The indicator highlights price ranges during the New York, London, Tokyo, and Sydney sessions using different colors, making data easier to visually interpret and analyze. Users can customize the color scheme for each session.
• Price Change Analysis: The indicator tracks the opening prices of each session and calculates the price changes by the session's close. This allows traders to assess market dynamics within each session and make informed trading decisions.
• Average Price Changes: The average price change for a specified number of sessions is calculated for each session, helping to identify trends and volatility levels.
• Time Zone Support: The indicator takes into account time zones, allowing users to adjust the display according to their location or use the market's time zone.
• Interactive Dashboard: The built-in dashboard shows the status of each session in real-time (active or inactive), recent price changes, and average changes, providing quick access to key information directly on the chart.
How to Use:
• Add the indicator to your chart and configure the displayed sessions according to your needs.
• Use color differentiation to easily identify active trading sessions and assess their impact on price movements.
• Monitor price changes in each session and analyze averages for a deeper understanding of market trends.
Methodology:
The indicator uses the time intervals of each trading session to calculate and display opening prices, price ranges, and price changes for the session. Based on this data, the Forex Session Tracker visualizes the session's high and low prices and calculates the average price change over the last several sessions. All data is displayed in real-time, considering the user's time zone settings or the market's time zone.
Originality and Usefulness:
Forex Session Tracker stands out for its ability to combine price change information from several key trading sessions into one indicator, providing traders with a simple and clear way to analyze market activity across different time zones.
Charts:
The indicator displays clean and clear charts, where each trading session is highlighted with its own color, making visual interpretation easier. The charts focus only on essential information for analysis: opening prices, session ranges, and price changes. The integrated dashboard provides quick access to key session metrics, such as activity status, recent price changes, and average values for the selected period. These features make the charts highly useful for rapid analysis and trading decision-making.
Enjoy the game!
Project Monday Strategy [AlgoAI System]Overview
Project Monday is a sophisticated trading strategy designed for active market participants. This strategy can be used alongside other forms of technical analysis, providing traders with additional tools to enhance their market insights. While it offers a flexible approach for identifying and exploiting market inefficiencies, Project Monday does not fit every market condition and requires adjustments. Its core principles include technical analysis and risk management, all aimed at making informed trading decisions and managing risk effectively.
Features
Project Monday Strategy works in any market and includes many features:
Efficient Trading Presets: Offers ready-to-use presets that allow traders to start efficient trading with one click.
Confirmation Signals: Provides signals to help traders validate trends, emphasizing informed decision-making (not to be followed blindly).
Reversal Signals: Identifies signals to alert traders to potential reversals, encouraging careful analysis (not to be followed blindly).
Adaptability: Can be adjusted to fit different market conditions, ensuring ongoing effectiveness.
Multi-Market Application: Suitable for use across various asset classes including stocks, forex, commodities, and cryptocurrencies.
Integration: Can be used alongside other technical analysis tools for enhanced decision-making.
Position Sizing: Allows traders to determine optimal trade size using backtesting and trading performance dashboard.
Backtesting: Supports historical testing to refine and validate the strategy.
Continuous Monitoring: Includes features for ongoing performance evaluation and strategy adjustments.
Unique Project Monday Strategy Features on TradingView:
Adaptive Position Sizing: Dynamically adjusts the size of each position based on market conditions and predefined risk management criteria, ensuring optimal trade sizing and risk exposure.
Preliminary Position Opening: Allows traders to enter a position in anticipation of a signal confirmation, enabling them to capture early market movements and improve entry points.
Preliminary Position Closing: Enables traders to exit a position before a signal reversal, helping to lock in profits and minimize potential losses during volatile market conditions.
Adjusting Strategy Parameters:
Price Band Inputs:
Project Monday Strategy uses a set of configurable inputs to tailor its behavior according to the trader's preferences. The following are the key inputs for the price band calculations. Signals are not generated when the price remains within these bands.
“Length of Calculation” determines how many historical data points are used in the trend calculation. A shorter “Length of Calculation” will make the Price Band more responsive to recent price changes but may also increase the noise and the likelihood of false signals. A longer “Length of Calculation” will make the Price Band smoother, with less noise, but may cause more lag in reacting to price changes.
“Offset” determines the position of the Gaussian filter, which is used to weight the data points in the trend calculation. The offset is expressed as a fraction of the “Length of Calculation”, with a value between 0 and 1. A higher “Offset” will shift the Gaussian filter closer to the more recent data points, making the Price Band more responsive to recent price changes but potentially increasing noise. A lower “Offset” will shift the Gaussian filter closer to the centre of the window, resulting in a smoother Price Band but potentially introducing more lag.
“Sigma” refers to the standard deviation used in the Gaussian distribution function. This parameter determines the smoothness of the curve and the degree to which data points close to the centre of the “Length of Calculation” are weighted more heavily than those further away. A smaller “Sigma” will result in a narrower Gaussian filter, leading to a more responsive Price Band but with a higher chance of noise and false signals. A larger “Sigma” will result in a wider Gaussian filter, creating a smoother Price Band but with more lag.
Adjust the “Source” inputs to specify which type of price data should be used for strategy calculations and signal generation.
“Width of Band” input determines the multiplier for the band width. A higher value of “Width of Band” makes the price band wider, which generates fewer signals due to the lower probability of the price moving outside the band. Conversely, a lower multiplier makes the band narrower, generating more signals but also increasing the likelihood of false signals.
Direction input:
The Project Monday strategy includes an input to specify the direction of trades, allowing traders to control whether the strategy should consider long positions, short positions, or both. The following input parameter is used for this purpose:
This input parameter allows traders to define the type of positions the strategy will take. It has three options:
Only Long: The strategy will generate signals exclusively for buying or closing short positions, focusing on potential uptrends.
Only Short: The strategy will generate signals exclusively for selling or closing long positions, focusing on potential downtrends.
Both: The strategy will generate signals for both buying (long positions) and selling (short positions), allowing for a more comprehensive trading approach that captures opportunities in both rising and falling markets.
Signals Filter:
The Project Monday strategy includes inputs to filter signals based on higher timeframes and the length of the data used for filtering. These inputs help traders refine the strategy's performance by considering broader market trends and smoothing out short-term fluctuations.
Filter Timeframe input specifies the timeframe used for filtering signals. By choosing a higher timeframe, traders can filter out noise from shorter timeframes and focus on more significant trends. The options range from intraday minutes (e.g., 1, 5, 15 minutes) to daily (1D, 2D, etc.), weekly (1W, 2W, etc.), and monthly (1M) timeframes. This allows traders to align their strategy with their preferred trading horizon and market perspective.
Filter Length input defines the number of data points used for filtering signals on the selected timeframe. A longer filter length will smooth out the data more, helping to identify sustained trends and reduce the impact of short-term fluctuations. Conversely, a shorter filter length will make the filter more responsive to recent price changes, potentially generating more signals but also increasing sensitivity to market noise.
Adaptive Position Size:
The Project Monday strategy incorporates inputs for unique feature Adaptive Position Sizing (APS), which dynamically adjusts the size of trades based on market conditions and specified parameters. This feature helps optimize risk management and trading performance.
Enable Adaptive Position Size: Users can check or uncheck this box to enable or disable the Adaptive Position Size feature. When checked, the strategy dynamically adjusts position sizes based on the defined parameters. This allows traders to scale their positions according to market volatility and other factors, enhancing risk management and potentially improving returns. When unchecked, the strategy will not adjust position sizes adaptively, and positions will remain fixed as per other settings.
“Timeframe for Adaptive Position Size “input specifies the timeframe used for calculating the position size. Options range from intraday minutes (e.g., 30, 60 minutes) to daily (1D, 3D), weekly (1W), and monthly (1M) timeframes. Selecting an appropriate timeframe helps align position sizing calculations with the trader’s overall strategy and market perspective, ensuring that position sizes are adjusted based on relevant market data.
“APS Length” input defines the number of data points used to calculate the adaptive position size. A longer APS length will result in higher position sizes. Conversely, a shorter APS length will result in smaller position sizes.
Anticipatory Trading:
Project Monday Strategy includes inputs for unique feature Anticipatory Trading, allowing traders to open and close positions preliminarily based on certain conditions. This feature aims to provide an edge by taking action before traditional signals confirm.
Enable Preliminary Position Opening: Users can check or uncheck this box to enable or disable Preliminary Position Opening. When enabled, the strategy will open positions based on preliminary conditions before the standard signals are confirmed. This can help traders capitalize on early trend movements and potentially gain a better entry point.
Enable Preliminary Position Closing: Users can check or uncheck this box to enable or disable Preliminary Position Closing. When enabled, the strategy will close positions based on preliminary conditions before the standard exit signals are confirmed. This can help traders lock in profits or limit losses by exiting positions at the early signs of trend reversals.
“Position Size in %” input specifies the position size as a percentage of the trading capital. By setting this value, traders can control the amount of capital allocated to each trade. For example, a risk value of 40% means that 40% of the available trading capital will be used for each anticipatory trade. This helps in managing risk and ensuring that the position size aligns with the trader's risk tolerance and overall strategy.
Usage:
Signal Generation
Long signal indicates a potential uptrend, suggesting either buying or closing a short position. Short signal indicates a potential downtrend, suggesting either selling or closing a long position. Signals are generated on your chart when the price moves beyond a calculated price band based on the current trend.
Signal Filtering
The strategy includes a filtering mechanism based on the current or another timeframe. Filtering works best with higher timeframes. This component calculates the trend on a higher timeframe and predicts the trend, ensuring trades on the current timeframe are only opened if they align with the higher timeframe trend. Setting the right filter timeframe is crucial for obtaining the best signals.
Position Direction
Users can choose the direction of positions to open via the settings box. Options include only long positions, only short positions, or both.
Adaptive Position Size (APS)
Users can enable the Adaptive Position Size feature to adjust position sizes based on trend strength. The strategy evaluates the strength of the current trend based on a higher timeframe. The stronger the trend, the larger the position size for opening a position.
Anticipatory Trading
Users can activate this unique feature to enhance trading decisions. The strategy assesses the likelihood of receiving a main signal. If the opportunity appears strong, it opens a partial position, as specified in the settings box. As the probability of the signal strengthens, the strategy gradually increases the position size.
Exit Strategy
The strategy exits positions based on receiving a reverse signal. Positions opened through “Anticipatory trading” are exited incrementally as each preliminary signal reverses.
By following these steps, traders can implement the strategy to navigate various market scenarios, manage risk, and adjust trading performance over time. Adjusting parameters and monitoring signals diligently are key to adapting the strategy to individual trading styles and market conditions.
You will get
By purchasing the Project Monday strategy, you not only gain access to a cutting-edge system but also receive ready-to-use presets designed to help you start trading immediately and achieve optimal results. Additionally, you benefit from comprehensive support and the option to request custom presets for your desired financial instruments through our dedicated support team, ensuring you have the tools and assistance needed for successful trading.
Risk Disclaimer
This information is not a personalized investment recommendation, and the financial instruments or transactions mentioned in it may not be appropriate for your financial situation, investment objective(s), risk tolerance, and/or expected return. AlgoAI shall not be liable for any losses incurred in the event of transactions or investments in financial instruments mentioned in this information.
VWMA Multiple TimeframesVWMA Multiple Timeframes Indicator
This TradingView indicator plots the Volume Weighted Moving Average (VWMA) across multiple timeframes on your chart. The VWMA is a type of moving average that gives more weight to periods with higher volume, making it a valuable tool for traders who want to incorporate volume into their technical analysis.
Features:
Multi-timeframe Analysis: This indicator calculates and plots the VWMA on five different timeframes:
Weekly (W)
Daily (D)
4 Hours (240 minutes)
1 Hour (60 minutes)
15 Minutes
Visual Representation: Each timeframe's VWMA is plotted with a different color, making it easy to distinguish between them on the chart:
Weekly VWMA: Gray
Daily VWMA: Blue
4 Hours VWMA: Red
1 Hour VWMA: Green
15 Minutes VWMA: Purple
How to Use:
Trend Identification: Use the VWMA to identify the direction of the trend on different timeframes. For example, if the VWMA is trending upwards on multiple timeframes, it indicates a strong upward trend.
Support and Resistance: The VWMA can act as dynamic support or resistance levels. Price bouncing off a VWMA line might indicate a continuation of the trend.
Volume Confirmation: The VWMA considers volume, making it useful for confirming the strength of price movements. High volume moves that cause the VWMA to change direction can be more significant than low volume moves.
This indicator is ideal for traders who use multi-timeframe analysis and want to incorporate volume into their trend and support/resistance identification. Feel free to customize the periods and timeframes to suit your trading style.
FX Index Curve Oscillator (FICO)We can approximate the TVC:DXY with simple multiplication, rather than using geometric weighted averages; the values will be different, but the charts will look almost the same. Because we can make a "good enough" version of DXY, we can also extend this concept to the other major currencies:
AUD - Yellow
CAD - Red
CHF - Orange
EUR - Purple
GBP - Green
JPY - White
NZD - Lime green
USD - Blue
This indicator works by constructing an "index" for each currency, performing a lookback to figure out the rate of change, and then smoothing the values. These values are fed through an oscillator to normalize them between -1.00 and +1.00, before finally being smoothed again. Interestingly, using HMA to smooth them the second time will cause the values to leak past 1.00, which we can also use as a signal.
If you want to change the values, I find that the biggest difference comes from the lookback and oscillator settings; the MA/smoothing is probably good enough. The default settings are for doing forex trades on the daily chart. Other timeframes are possible, but I could not find any settings that work. It might also be possible to use a similar approach on other assets (crypto, metals, indexes, etc) but I have not tried yet.
In my own testing, what I found to be a good approach is to look for a currency to be above +1 and another to be below -1, and then look for color changes; ideally this will happen on the same bar/candle.
You can also consider two line crosses, breaking above or below 1, etc as other entry signals. I find that price will either move immediately, or take a candle or two to retrace and then start moving.
Happy trading!
Unfortunately, the indicator pane can get quite crowded; if you're testing for a single currency pair, you may want to disable some of the plotted lines:
Fisher Transform on RSIOverview
The Fisher Transform on RSI indicator combines the Relative Strength Index (RSI) with the Fisher Transform to offer a refined tool for identifying market turning points and trends. By applying the Fisher Transform to the RSI, this indicator converts RSI values into a Gaussian normal distribution, enhancing the precision of detecting overbought and oversold conditions. This method provides a clearer and more accurate identification of potential market reversals than the standard RSI.
Key/Unique Features
Fisher Transform Applied to RSI : Transforms RSI values into a Gaussian normal distribution, improving the detection of overbought and oversold conditions.
Smoothing : Applies additional smoothing to the Fisher Transform, reducing noise and providing clearer signals.
Signal Line : Includes a signal line to identify crossover points, indicating potential buy or sell signals.
Custom Alerts : Built-in alert conditions for bullish and bearish crossovers, keeping traders informed of significant market movements.
Visual Enhancements : Background color changes based on crossover conditions, offering immediate visual cues for potential trading opportunities.
How It Works
RSI Calculation : The indicator calculates the Relative Strength Index (RSI) based on the selected source and period length.
Normalization : The RSI values are normalized to fit within a range of -1 to 1, which is essential for the Fisher Transform.
Fisher Transform : The normalized RSI values undergo the Fisher Transform, converting them into a Gaussian normal distribution.
Smoothing : The transformed values are smoothed using a simple moving average to reduce noise and provide more reliable signals.
Signal Line : A signal line, which is a simple moving average of the smoothed Fisher Transform, is plotted to identify crossover points.
Alerts and Visuals : Custom alert conditions are set for bullish and bearish crossovers, and the background color changes to indicate these conditions.
Usage Instructions
Trend Identification : Use the Fisher Transform on RSI to identify overbought and oversold conditions with enhanced precision, aiding in spotting potential trend reversals.
Trade Signals : Monitor the crossovers between the smoothed Fisher Transform and the signal line. A bullish crossover suggests a potential buying opportunity, while a bearish crossover indicates a potential selling opportunity.
Alerts : Set custom alerts based on the built-in conditions to receive notifications when important crossover events occur, ensuring you never miss a trading opportunity.
Visual Cues : Utilize the background color changes to quickly identify bullish (green) and bearish (red) conditions, providing immediate visual feedback on market sentiment.
Complementary Analysis : Combine this indicator with other technical analysis tools and indicators to enhance your overall trading strategy and make more informed decisions.
PUMP IndicatorsPUMP Indicator Description
★ Supported Markets and Assets
The PUMP indicator is a versatile tool that can be effectively applied to various markets and assets, including:
▶ Korean Stocks: KOSPI, KOSDAQ, etc.
▶ U.S. Stocks: NYSE, NASDAQ, etc.
▶ Cryptocurrencies: Major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), etc.
▶ Futures: Major futures contracts like gold, silver, crude oil, etc.
▶ ETFs: SPY, QQQ, etc.
★ Indicator Description
The PUMP indicator is designed to analyze price divergence and volatility.
It is provided with minimal representation on the chart, allowing users to use it in conjunction with other indicators, such as classical RSI, TRIX, CCI, ADX, BWI, Bollinger Bands, etc.
Everything displayed on the chart can be turned on or off in the options, allowing users to customize their setup.
The PUMP indicator is based on the concept of the MACD indicator, which calculates the difference between the leading line and the lagging line to generate signals.
GOOD, UP, and CR signals predict price increases.
DOWN and BAD signals predict price decreases.
WARN emphasizes that the buy position is not certain, regardless of price increases or decreases.
Therefore, the PUMP indicator is good to use with other indicators. It visually displays divergence and volatility signals along with the MACD movements below, and users can receive alerts for movements in their interested stocks using the alarm function.
It can be used as an indicator for viewing buy and sell signals, as well as predicting the price flow.
▶ (Drawback) Unlike typical TRIX, RSI, TRIX, CCI, ADX, BWI indicators, which are implemented in a new lower window, the PUMP indicator displays both signals and the leading and lagging lines simultaneously, so it is not implemented in a new window, meaning the baseline may vary depending on the daily chart appearance.
★ The PUMP indicator consists of the following components:
▶ PUMP Indicator Leading and Lagging Lines
PUMP t: Leading line (yellow)
PUMP p: Lagging line (blue)
The MACD displayed at the bottom of the chart calculates the divergence between the PUMP t leading line and the PUMP p lagging line.
▶ EA Formula
The core calculation of the PUMP indicator is as follows:
EA (Exponential Average): 100 * (eavg1 / eavg2)
Where eavg1 is the short-term EMA, and eavg2 is the long-term EMA.
It calculates the divergence of the index.
▶ The PUMP indicator is a fixed indicator (cannot be arbitrarily modified).
▶ Highlights: The method of calculating the interval or number of uses is an important part of the index calculation and is therefore private.
★ Signal Description
The PUMP indicator provides a total of six major signals:
▶ UP Signal: Occurs when the divergence between the MACD PUMP t leading line and PUMP p lagging line narrows, and the divergence of the exponential moving average widens compared to before.
▶ DOWN Signal: Occurs when the MACD PUMP t leading line crosses above the PUMP p lagging line.
▶ GOOD Signal: Represents an UP signal with added volume.
(The GOOD signal is not necessarily better than the UP signal. If a GOOD signal appears in a stock that has sufficiently fallen in price, it helps understand that a rebound has started. Therefore, the GOOD signal is made to find a rebound in stocks that have continuously declined, rather than finding signals in consistently rising prices.)
▶ BAD Signal: Occurs when the PUMP t leading line crosses above the 0 baseline, indicating a potential sell signal.
▶ WARN Signal: A warning signal occurring at high levels, indicating that buying is not recommended (regardless of buy or sell).
▶ CR Signal: Occurs in all sections where the PUMP t leading line crosses below the PUMP p lagging line.
★ Lower MACD Horizontal Baseline
The PUMP indicator provides three horizontal baselines from the MACD indicator for additional analysis:
▶ Pump H
▶ PUMP M
▶ PUMP L
It visually provides the divergence of the lower MACD indicator for rising and falling changes, with the default set to 0, and users can change the numbers in the options as needed.
★ Moving Averages
The PUMP indicator provides three basic moving averages:
▶ Buzz 7: 7-day moving average
▶ Buzz 26: 26-day moving average
▶ Buzz 120: 120-day moving average
The number of moving averages is fixed, but users can use them in conjunction with the moving averages provided by TradingView as needed.
★ Alert Function
Using the Alert function of TradingView, you can set alerts for various signals generated by the PUMP indicator.
▶ GOOD Signal Alert
▶ UP Signal Alert
▶ CR Signal Alert
▶ DOWN Signal Alert
▶ BAD Signal Alert
▶ WARN Signal Alert
★ Usage
1. The PUMP indicator is not focused on buy and sell signals but calculates the current price movement and divergence and is designed to express it through MACD leading and lagging lines and signals.
2. The PUMP indicator can be used alone or in conjunction with other indicators for technical analysis.
3. You can analyze buy and sell using the signals of the PUMP indicator along with fundamental analysis, such as news, issues, national policies, company profits, and sales increases.
4. The MACD leading and lagging lines at the bottom of the chart move inversely to the price, ensuring that the PUMP indicator does not interfere when used with other indicators.
5. You can receive real-time alerts using the alarm function.
Below, we attach pictures to help users understand.
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PUMP 인디케이터 설명(한글)
★ 지원되는 시장 및 자산
PUMP 표시기는 다음과 같은 다양한 시장 및 자산에 효과적으로 적용할 수 있는 다용도 도구입니다:
▶ 한국주식: KOSPI, KOSDAQ 등.
▶ 미국주식: NYSE, NASDAQ 등.
▶ 암호화폐: 비트코인(BTC), 이더리움(ETH) 등 주요 암호화폐.
▶ 선물 : 금, 은, 원유 등 주요 선물 계약.
▶ 상장지수펀드(ETF) : SPY, QQQ 등.
★ 지표 설명
PUMP 지표는 가격 이격과 변동성을 분석하도록 설계되었습니다.
사용자가 만든 지표 또는 고전 RSI, TRIX, CCI, ADX, BWI, Bollinger Bands 등과 함께 사용할 수 있게 차트에 최소한의 표현으로 제공됩니다.
그리고 차트에 표현되는 모든 것들을 옵션에서 on / off 가능하게 하였기에 사용자가 커스텀 할 수 있게 하였습니다.
PUMP 지표 신호를 생성하기 위해 선행 라인과 후행 라인 간의 차이를 계산하는 MACD 지표의 개념을 기반으로 합니다.
GOOD, UP, CR 신호는 가격 상승을 예측합니다.
DOWN, BAD 신호는 가격 하락을 예측합니다.
WARN은 가격 상승과 하락에 관계없이, 매수 자리는 확실히 아님을 강조한 신호입니다.
그러므로 PUMP 지표는 다른 지표와 함께 사용하기 좋고, 이격과 변동성을 신호와 하단 MACD 움직임을 눈으로 볼 수 있으며, 알람 기능을 활용하여 관심 있는 종목의 움직임을 알람으로 받아 볼 수 있는 지표입니다.
매수와 매도를 보는 지표로 사용할 수 있으며, 가격의 흐름을 예상하는 지표로 사용할 수 있습니다.
▶ (단점) 보통의 TRIX, RSI, TRIX, CCI, ADX, BWI 지표들은 하단의 새로운 창에서 구현됩니다. 하지만 PUMP 지표는 신호와 하단 선행과 후행을 동시에 표현하기 때문에 새로운 창에서 구현되지 않기에 기준 축이 일봉의 모습에 따라 달라질 수 있습니다.
★ PUMP 지표는 다음과 같은 구성요소로 구성됩니다
▶ PUMP 지표 선행과 후행
PUMP t : 선행라인 (노란색)
PUMP p : 후행라인 (파란색)
차트 하단에 나타나는 MACD는 PUMP t선행라인과 PUMP p 후행라인의 이격도를 계산합니다.
▶ EA공식
PUMP 지표의 핵심 계산식은 다음과 같습니다:
EA(지수평균): 100 * (eavg1 / eavg2)
여기서 eavg1은 단기 EMA이고 eavg2는 장기 EMA입니다.
지수의 이격도를 계산합니다.
▶ PUMP 지표는 고정 지표입니다. (임의 수정 불가)
▶ 강조 : 이격의 계산법이나 사용하는 숫자는 지표 계산의 중요한 부분이므로 비공개입니다.
★ 신호 설명
PUMP 표시등은 총 6개의 주요 신호를 제공합니다:
▶ UP 신호: MACD PUMP t 선행과 PUMP p 후행의 이격이 줄어들 때, 지수 이동 평균의 이격도가 이전 보다 넓어지면 발생합니다.
▶ DOWN 신호: MACD PUMP t 선행이 PUMP p 후행을 상향 교차할 때 발생합니다.
▶ GOOD 신호: 거래량이 추가된 UP 신호를 나타냅니다.
(GOOD 신호가 UP 신호보다 좋다기 보다, 충분히 가격 하락한 종목에서 GOOD 신호가 나온다면 반등이 시작되는 것을 이해할 수 있게 만든 지표입니다. 그러므로 GOOD 신호는 가격이 꾸준히 상승하는 곳에서 신호를 찾기보다, 지속 하락하다 반등을 찾는 신호로 만들었습니다.)
▶ BAD 신호: PUMP t 선행이 0 기준선 이상으로 교차할 때 발생하며, 이는 잠재적인 판매 신호를 나타냅니다.
▶ 경고 신호: 높은 수준에서 발생하는 경고 신호로, 매수가 권장되지 않음을 나타냅니다(매수, 매도와 무관함).
▶ CR 신호: PUMP t 선행 라인이 PUMP p 후행 라인 아래로 교차하는 모든 구간에서 발생합니다.
★ 하단 MACD 가로 기준선
PUMP 표시기는 추가 분석을 위해 MACD 지표에서 3가지 가로 기준을 제공합니다:
▶ pump H
▶ PUMP M
▶ PUMP L
하단의 MACD 지표의 이격도를 상승 및 하강의 변화를 시각적으로 기준을 만들 수 있게 제공하며, 기본은 0으로 제공하고, 사용자의 필요에 따라 옵션에서 숫자를 변경할 수 있게 하였습니다.
★ 이동 평균
PUMP 표시기는 세 가지 기본 이동 평균을 제공 합니다:
▶ Buzz 7: 7일 이동 평균
▶ Buzz 26: 26일 이동 평균
▶ Buzz 120 : 120일 이동 평균
이동 평균의 수는 고정되어 있지만, 사용자는 필요에 따라 TradingView에서 제공하는 이동 평균과 함께 사용할 수 있습니다.
★ 알림 기능
TradingView의 Alert 기능을 사용하여 PUMP 지표 생성되는 다양한 신호에 대한 Alert를 설정할 수 있습니다.
▶ GOOD 신호 알림
▶ UP 신호 알림
▶ CR 신호 알림
▶ DOWN 신호 알림
▶ BAD 신호 알림
▶ WARN 신호 알림
★ 사용법
1.PUMP 지표는 매수와 매도에 중점을 둔 지표가 아니며 현재 가격의 움직임과 이격도를 계산하며 MACD 선행과 후행 그리고 신호로 표현하기 위해 만들어진 지표입니다.
2. PUMP 지표는 단일로 사용할 수 있고, 또는 다른 지표와 함께 기술적분석으로 사용할 수 있습니다.
3. 뉴스와 이슈, 국가의 정책, 회사의 이익, 매출의 상승 등 기본적분석과 함께 PUMP 지표의 신호를 이용하여 매수와 매도 분석을 할 수 있습니다.
4. 차트 하단의 MACD 선행과 후행은 가격의 움직임을 반대로 움직이며, 가격과 반대로 움직이게 함으로써 다른 지표와 함께 사용하였을 때, PUMP 지표가 방해가 되지 않게 하였습니다.
5. 알람을 사용하여 실시간으로 알람을 받아 보실 수 있습니다.
아래 사진을 첨부하여 사용자 이해를 돕습니다.
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UP신호는 이격을
▶ The UP signal indicates horizontal divergence.
CR신호는 선행이 후행을 아래로 돌파
▶ The CR signal indicates vertical divergence when the leading line crosses below the lagging line.
WARN 신호를 확인
▶ Check the WARN signal.
BAD와 DOWN 신호
▶ BAD and DOWN signals.
PUMP 지표의 기준 3개
3 criteria for PUMP indicators
따로 그림을 그리지 않은 차트
▶ A chart without separate drawings.
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다른 지표와 + 조합
+ Combination with other indicators
Macro Risk On/Off SentimentOverview
As an Ichimoku trader, I've always found it crucial to understand the broader market sentiment before entering trades. That's why I developed this Macro Risk On/Off Sentiment Indicator. It's designed to provide a comprehensive view of global market risk sentiment by analysing multiple factors across different asset classes. By combining nine key market indicators, it produces an overall risk sentiment score, giving me a clearer picture of the market's mood before I apply my Ichimoku strategy.
Rationale
While Ichimoku is powerful for identifying trends and potential entry points, I realised it doesn't always capture the broader market context. Markets don't exist in isolation—they're influenced by a myriad of factors including volatility, economic indicators, and cross-asset relationships. By creating this indicator, I aimed to fill that gap, providing myself with a macro view that complements my Ichimoku analysis.
How It Works
The indicator analyses nine different market factors:
VIX (Volatility Index): Measures market expectations of near-term volatility.
S&P 500 Performance: Represents the overall US stock market performance.
US 10-Year Treasury Yield: Indicates bond market sentiment and economic outlook.
Gold Price Movement: Often seen as a safe-haven asset.
US Dollar Index: Measures the strength of the USD against a basket of currencies.
Emerging Markets Performance: Represents risk appetite for higher-risk markets.
High Yield Bond Spreads: Indicates credit market risk sentiment.
Copper/Gold Ratio: An economic growth indicator.
Put/Call Ratio: Measures overall market sentiment based on options trading.
Each factor is assigned a score based on its z-score relative to its recent history, then weighted according to its perceived importance. The overall risk score is a weighted average of these individual scores.
How I Use It
Before applying my Ichimoku strategy, I first check this indicator to gauge the overall market sentiment:
I look at the blue line plotted on the chart, which represents the overall risk score.
I note the background colour: green for risk-on (positive score) and red for risk-off (negative score).
I check the label in the lower-left corner, which provides specific FX pair recommendations and market expectations.
In a risk-on environment (positive score):
I focus on long positions in AUD/JPY, NZD/JPY, EUR/USD, etc.
I look for short opportunities in USD/CAD, USD/NOK, etc.
I expect commodities and yields to rise
In a risk-off environment (negative score):
I focus on long positions in USD/JPY, USD/CHF, USD/CAD
I look for short opportunities in AUD/USD, NZD/USD, EUR/USD
I expect increased volatility and falling yields
The strength of the sentiment is reflected in how close the score is to either 1 (strong risk-on) or -1 (strong risk-off). This helps me gauge how aggressive or conservative I should be with my Ichimoku trades.
Customisation
I've designed this indicator to be flexible. You can modify it to:
Adjust the lookback period and moving average length (both default to 30)
Change the weighting of different factors in the final score calculation
Include or exclude specific factors based on your analysis needs
By combining this Macro Risk On/Off Sentiment Indicator with my Ichimoku analysis, I've found I can make more informed trading decisions, taking into account both the technical setups I see on the chart and the broader market context.
Price Excess with Adjustable RecoveryIndicator: Price Excess with Adjustable Recovery
This indicator detects excessive price movements and displays a potential recovery level. It is particularly useful for identifying trading opportunities after significant market movements.
>> Key Features:
1. Detection of upward and downward price excesses
2. Display of an adjustable recovery level
3. Customizable parameters to adapt to different instruments and timeframes
>> Adjustable Parameters:
- Period: Number of candles for calculating the average and standard deviation (default: 14)
- Excess Threshold: Number of standard deviations to consider a movement as excessive (default: 1.5)
- Recovery Percentage: Recovery level as a percentage (default: 50%)
>> Usage:
1. Red triangles indicate a downward excess
2. Green triangles signal an upward excess
3. The blue line represents the potential recovery level
>> Possible Strategies:
- Counter-trend: Consider buying during downward excesses and selling during upward excesses
- Trend-following: Use the recovery level as a potential profit target
>> Usage Tips:
- Combine this indicator with other technical analysis tools to confirm signals
- Adjust the parameters according to the asset's volatility and your trading horizon
- Use appropriate risk management, as excessive movements can sometimes continue
Feel free to experiment with the parameters to find the configuration that best suits your trading style. Happy trading!
By DL INVEST
Tripart Super Forex IndicatorOverview
The “Tripart Super Forex Indicator” is an advanced trading tool designed specifically for intraday trading and scalping. It combines the power of Exponential Moving Averages (EMAs), Average True Range (ATR), and the Relative Strength Index (RSI) to generate precise buy and sell signals. This indicator helps traders identify trend direction, volatility, and momentum, ensuring well-timed entry and exit points in the forex market.
What It Does
The Tripart Super Forex Indicator provides traders with the following:
1. Entry Signals: Buy and sell signals are generated based on the crossover of short-
term and long-term EMAs combined with ATR-based volatility filtering.
2. Exit Signals: Exit signals are generated using RSI to identify overbought and oversold
conditions, ensuring timely exits to lock in profits.
3. Trailing Stop-Loss: Dynamic trailing stop-loss levels are calculated using ATR to
manage risk effectively during trades.
How It Works
1. Exponential Moving Averages (EMAs):
• Short-term EMA: Represents recent price trends, reacting quickly to price changes.
• Long-term EMA: Represents longer price trends, providing a smoother view of the
market direction.
• Buy Signal: Generated when the short-term EMA crosses above the long-term EMA,
and the closing price is above the long-term EMA plus a multiple of the ATR.
• Sell Signal: Generated when the short-term EMA crosses below the long-term EMA,
and the closing price is below the long-term EMA minus a multiple of the ATR.
2. Average True Range (ATR):
• Measures market volatility.
• Used to filter out signals during low volatility periods, ensuring trades are only taken
during significant price movements.
• ATR is also used to calculate dynamic trailing stop-loss levels to protect gains and
manage risk.
3. Relative Strength Index (RSI):
• Measures the speed and change of price movements.
• Exit Buy Signal: Triggered when RSI falls below the overbought level minus a defined
threshold, indicating potential for price reversal.
• Exit Sell Signal: Triggered when RSI rises above the oversold level plus a defined
threshold, indicating potential for price reversal.
• Helps ensure exits are timely and consistent with momentum changes.
How to Use It
1. Adding the Indicator :
• Add the “Tripart Super Forex Indicator” to your chart from the TradingView library.
• The indicator will overlay buy and sell signals on the price chart and plot EMAs if
enabled.
2. Configuring Settings :
• Customize the EMA lengths, ATR length, ATR multiplier, RSI length, RSI overbought
and oversold levels, and RSI exit threshold to suit your trading strategy.
• Optionally enable or disable the display of EMAs and ATR on the chart for a cleaner
view.
3. Interpreting Signals :
• Buy Signal: Look for green “Buy” labels below the candlesticks indicating a potential
long entry.
• Sell Signal: Look for red “Sell” labels above the candlesticks indicating a potential
short entry.
• Exit Buy Signal: Look for yellow “Exit Buy” labels below the candlesticks indicating a
recommended exit from long positions.
• Exit Sell Signal: Look for orange “Exit Sell” labels above the candlesticks indicating a
recommended exit from short positions.
4. Risk Management :
• Use the dynamic trailing stop-loss levels plotted on the chart to manage open trades
and protect profits.
• Adjust the trailing stop multiplier based on your risk tolerance and market conditions.
Concepts Underlying Calculations
• Trend Detection: Utilizes the crossover of short-term and long-term EMAs to identify
trend direction and potential entry points.
• Volatility Filtering: Incorporates ATR to filter signals during low volatility periods,
ensuring trades are taken during significant price movements.
• Momentum-Based Exits: Uses RSI to detect overbought and oversold conditions for
timely exits, preventing premature or delayed exits.
By integrating these concepts, the Tripart Super Forex Indicator provides a comprehensive and robust tool for intraday trading and scalping, helping traders make informed decisions and improve their trading performance.
Feel free to reach out for further support or clarification on using the Tripart Super Forex Indicator. Happy trading!
Forex SessionThis Trading View script highlights the trading sessions for New York, European, and Asian markets on the chart and adds labels at the start of each session. The script uses Pine Script version 5 and converts local session times to UTC to accurately display the session times regardless of your local Time zone.
Features :
Session Times:
New York: 8:30 AM to 3:00 PM (Eastern Time, GMT-4)
European: 8:00 AM to 4:30 PM (London Time, GMT+1)
Asian: 9:00 AM to 6:00 PM (Tokyo Time, GMT+9)
Background Highlighting: The script shades the background for each session.
New York Session: Blue
European Session: Green
Asian Session: Red
Today's sessions are shaded with 90% opacity.
Tomorrow's sessions are shaded with 70% opacity.
How It Works :
Session Times Conversion: The script converts the session times from local timezones to UTC
using the timestamp function.
Background Coloring: The bgcolor function is used to shade the background for each session.
Sniper BreakoutThis indicator is based on 3 indicator :=
1) Forex Market Session 2) Ema 200 3) Volume
This indicator is for Forex market ..in Forex market (ex- Eur/Usd ) price often (67%) do rotation in every session means example :let suppose a trade take trade in asian session and have 30 pips stop loss 67 % chance price will come back to entry price after London session or New York session so trade have less chance to make trade without hitting stop loss
in this indicator we are using Forex market session indicator to get session range start to end ..this indicator will only search opportunity in London And New York Session range and that can be customize from input section . user can select time zone and time of session from input section indicator and color of session .
next indicator using 200 length Exponential Moving Average for trend identification .if close price is above 200 Ema means trend is upside moving & if close price is below 200 Ema means price is moving downside .user can change length and source of Ema from input section .
Third and most important part is volume indicator when a session start (Example-London session it keep Look back 6 previous candle and compare volume imbalance between look back candle .look back candle can be customize from input section default look back candle input is (6).
next we are using trade range time to only show trade on certain time because often market convert into trading range so given specific input time it only take trade when volume and price is rising or falling .time range can be selected from input section .
Trade Entry Buy Signal -if price is either London or New York session and price is above 200 Ema and volume not in imbalance last number of candle it give Feb (first entry buy ) we keep save high price of every candle after Feb (label ) signal .if any candle break above Feb label it show a confirm buy signal ..Below in example as we can see
Example Image Buy Signal -
in this above example step -1 we searching imbalance of volume and price as we can see imbalance of volume and price on green candle .next we look price is above 200 ema .next step(2) we got Feb (first entry buy ) signal this is not a confirm buy signal .we save high of candle next candle high close above previous candle high we got confirm buy signal .
Trade Entry Sell Signal - if price is either London or New York session and price is below 200 Ema and volume not in imbalance last number of candle it give Feb (first entry Sell ) we keep save low price of every candle after Fes (label ) signal .if any candle break below Fes label it show a confirm sell signal ..Below in example as we can see
step-1 starting of london session we start getting imbalance between price and volume .price is getting rejected but volume is rising on green candle we got fes (first entry sell signal ).next we save low of fes candle but price close above that low of candle we dont get confirm sell entry next price break below low of previous candle so open a new sell signal ..
Example 3 - No Confirm buy/sell Signal
In this above Image example we did not get any confirm signal...we got first entry buy signal but price did not close high of candle in london session .so that day chance price can go any side ..
Example 4 -Feb signal and later confirm buy entry
in this above example we got imbalance of volume and feb(first entry buy signal) but we dont get any confirm buy signal price is just going high then previous candle ..later we see price crossover high of previous candle we got confirm buy signal
Use Of Indicator - This indicator helps traders identify potential trade setups by signaling the first entry points and confirming them later. It's particularly useful for avoiding getting caught in price rotations and aligning trades with significant volume and price movements. Traders should analyze price action and news before confirming a trade.
strategy_helpersThis library is designed to aid traders and developers in calculating risk metrics efficiently across different asset types like equities, futures, and forex. It includes comprehensive functions that calculate the number of units or contracts to trade, the value at risk, and the total value of the position based on provided entry prices, stop levels, and risk percentages. Whether you're managing a portfolio or developing trading strategies, this library provides essential tools for risk management. Functions also automatically select the appropriate risk calculation method based on asset type, calculate leverage levels, and determine potential liquidation points for leveraged positions. Perfect for enhancing the precision and effectiveness of your trading strategies.
Library "strategy_helpers"
Provides tools for calculating risk metrics across different types of trading strategies including equities, futures, and forex. Functions allow for precise control over risk management by calculating the number of units or contracts to trade, the value at risk, and the total position value based on entry prices, stop levels, and desired risk percentage. Additional utilities include automatic risk calculation based on asset type, leverage level calculations, and determination of liquidation levels for leveraged trades.
calculate_risk(entry, stop_level, stop_range, capital, risk_percent, trade_direction, whole_number_buy)
Calculates risk metrics for equity trades based on entry, stop level, and risk percent
Parameters:
entry (float) : The price at which the position is entered. Use close if you arent adding to a position. Use the original entry price if you are adding to a position.
stop_level (float) : The price level where the stop loss is placed
stop_range (float) : The price range from entry to stop level
capital (float) : The total capital available for trading
risk_percent (float) : The percentage of capital risked on the trade. 100% is represented by 100.
trade_direction (bool) : True for long trades, false for short trades
whole_number_buy (bool) : True to adjust the quantity to whole numbers
Returns: A tuple containing the number of units to trade, the value at risk, and the total value of the position:
calculate_risk_futures(risk_capital, stop_range)
Calculates risk metrics for futures trades based on the risk capital and stop range
Parameters:
risk_capital (float) : The capital allocated for the trade
stop_range (float) : The price range from entry to stop level
Returns: A tuple containing the number of contracts to trade, the value at risk, and the total value of the position:
calculate_risk_forex(entry, stop_level, stop_range, capital, risk_percent, trade_direction)
Calculates risk metrics for forex trades based on entry, stop level, and risk percent
Parameters:
entry (float) : The price at which the position is entered. Use close if you arent adding to a position. Use the original entry price if you are adding to a position.
stop_level (float) : The price level where the stop loss is placed
stop_range (float) : The price range from entry to stop level
capital (float) : The total capital available for trading
risk_percent (float) : The percentage of capital risked on the trade. 100% is represented by 100.
trade_direction (bool) : True for long trades, false for short trades
Returns: A tuple containing the number of lots to trade, the value at risk, and the total value of the position:
calculate_risk_auto(entry, stop_level, stop_range, capital, risk_percent, trade_direction, whole_number_buy)
Automatically selects the risk calculation method based on the asset type and calculates risk metrics
Parameters:
entry (float) : The price at which the position is entered. Use close if you arent adding to a position. Use the original entry price if you are adding to a position.
stop_level (float) : The price level where the stop loss is placed
stop_range (float) : The price range from entry to stop level
capital (float) : The total capital available for trading
risk_percent (float) : The percentage of capital risked on the trade. 100% is represented by 100.
trade_direction (bool) : True for long trades, false for short trades
whole_number_buy (bool) : True to adjust the quantity to whole numbers, applicable only for non-futures and non-forex trades
Returns: A tuple containing the number of units or contracts to trade, the value at risk, and the total value of the position:
leverage_level(account_equity, position_value)
Calculates the leverage level used based on account equity and position value
Parameters:
account_equity (float) : Total equity in the trading account
position_value (float) : Total value of the position taken
Returns: The leverage level used in the trade
calculate_liquidation_level(entry, leverage, trade_direction, maintenance_margine)
Calculates the liquidation price level for a leveraged trade
Parameters:
entry (float) : The price at which the position is entered
leverage (float) : The leverage level used in the trade
trade_direction (bool) : True for long trades, false for short trades
maintenance_margine (float) : The maintenance margin requirement, expressed as a percentage
Returns: The price level at which the position would be liquidated, or na if leverage is zero
[Forex Fondamental Overview SGM]Fundamental analysis tool designed for currency trading in financial markets. The script generates a dashboard that displays key economic indicators for two selected currencies. Here is what makes this script particularly interesting for a trader:
1. Direct comparison between two currencies: The script allows you to choose two currencies (from a predefined list) and directly compare their key economic indicators such as interest rate, GDP growth, debt-to-GDP ratio, unemployment rate, inflation (CPI and PPI), and the services and manufacturing PMI indices. This gives you immediate insight into the economic strengths and weaknesses of each currency, which is crucial for making informed trading decisions.
2. Automatic data updating: Indicator values are updated automatically using security requests (request.security) that pull the most recent data available. This means you don't need to manually update data or check multiple sources; the script takes care of that for you.
3. Currency Relative Strength Calculation: The script calculates a strength index for each currency based on its economic indicators, and then it determines a relative strength index for the currency pair. This allows you to quickly see which currency is currently strongest, providing a basis for "buy strength, sell weakness" trading strategies.
4. Intuitive visualization: Results are presented in clear tables with colored indicators, making the information quickly digestible. For example, the background color changes depending on the relative strength of the currency pair, giving you an immediate visual signal of the overall trend.
5. Adaptability to different trading strategies: Whether you are a swing trader, a day trader, or a scalper, understanding the economic state of currencies can help you align your trading positions with underlying macroeconomic trends. This script gives you this information without requiring detailed economic analysis on your part.
In short, this script is a powerful tool for any Forex trader who wants to integrate fundamental analysis into their trading routine without bothering with the complexity of tracking and analyzing a multitude of economic indicators manually.
AllTheUpsTheresAlwaysDowns "AllTheUpsTheresAlwaysDowns" ☆ATUTAD☆ // w%r + ma indicator designed for forex trading.
This indicator combines the Williams %R, moving averages, and session tracking.
Key Inputs:
Williams%Range Period: Adjusts the sensitivity of the Williams %R calculation.
Moving Average Period: Defines the period for the moving average used in the indicator.
Overbought and Oversold Thresholds: Sets the thresholds for identifying overbought and oversold conditions.
Features:
Williams %R Calculation: Calculates the Williams %R, a momentum oscillator that measures overbought and oversold levels.
Moving Averages: Plots two moving averages to capitalize on and visualize trend direction.
Session Tracking: Identifies the start and end of trading sessions (Tokyo, London, New York) for better session-based analysis.
Signal Generation: Generates buy/sell signals based on Williams %R levels and moving average crossovers.
Color Coding: Visualizes color-coded bars and shapes to highlight different market conditions and signal types.
Alerts: For buy/sell signals and overbought/oversold conditions to prompt timely actions.
Usage Tips:
Interpret Signals: Trend direction through buy/sell signals and overbought/oversold trend,- reversal / breakout line conditions for potential trading opportunities.
Session Awareness: Take into account the trading sessions (Tokyo, London, New York) to move along with the market dynamics during different times of the day.
Confirmation: Use additional technical analysis tools to confirm signals before executing trades. For example the Williams Percetange Range indicator.
Risk Management: Trade with proper risk management strategies to avoid potential losses.
HappyTrading
Swing Sniper by Republic of TradersSwing Sniper: A Comprehensive Market Reversal Indicator
Description:
Swing Sniper, developed by Republic of Traders, is a sophisticated trading indicator designed for traders who require precise market reversal signals. It performs optimally across all trading instruments and timeframes, offering both reliability and precision.
How It Works:
Swing Sniper employs a complex signal generation mechanism that activates only when six distinct conditions align within a specific timeframe. This includes:
A modified Commodity Channel Index (CCI) that helps identify short-term price fluctuations.
A Relative Momentum Index (RMI) utilized for recognizing long-term market trends.
A Supertrend indicator serves as a dynamic trend filter.
Several custom parameters that enhance signal reliability.
These components work synergistically to ensure that each trading signal is robust and well-founded. The indicator specializes in capturing significant market reversals by requiring a confirmation of trend reversal through a break and close above or below a previous supply/demand zone.
Usage Instructions:
Upon a valid signal, Swing Sniper advises traders that a potential market reversal has occurred and an entry may be considered in the direction of the new trend. Traders are recommended to set alerts for "once per candle close," allowing them to monitor multiple charts and timeframes simultaneously. Proper risk management is encouraged by placing stop losses just below or above the previous swing low or high and the signal candle's low or high. Take profits should similarly be set to capitalize on potential swings.
Why Choose Swing Sniper:
Swing Sniper is designed not only as a tool for generating entries but as a strategic component of your trading methodology. It brings a clear, analytical approach to navigating the markets, supported by detailed and logical indicator collaboration. This ensures users understand the underlying mechanics and can apply the tool effectively within their trading strategy.
Commitment to Originality and Utility:
Swing Sniper is a unique creation, adhering to TradingView’s standards by offering actionable insights that are distinct from other indicators available on the platform. It is meticulously crafted, featuring an original combination of technical analysis tools tailored to enhance market reversal detection.
Disclaimer:
Past performance is not indicative of future results. Always exercise due diligence and consider market conditions when trading.
Visualization Aid:
The accompanying chart visualization helps users identify signal examples, marked with a red triangle for market reversals short and a green triangle for market reversals long.
Embrace the strategic depth and precision of Swing Sniper and enhance your trading confidence and accuracy in financial markets.
RSI AcceleratorThe Relative Strength Index (RSI) is like a fitness tracker for the underlying time series. It measures how overbought or oversold an asset is, which is kinda like saying how tired or energized it is.
When the RSI goes too high, it suggests the asset might be tired and due for a rest, so it could be a sign it's gonna drop. On the flip side, when the RSI goes too low, it's like the asset is pumped up and ready to go, so it might be a sign it's gonna bounce back up. Basically, it helps traders figure out if a stock is worn out or revved up, which can be handy for making decisions about buying or selling.
The RSI Accelerator takes the difference between a short-term RSI(5) and a longer-term RSI(14) to detect short-term movements. When the short-term RSI rises more than the long-term RSI, it typically refers to a short-term upside acceleration.
The conditions of the signals through the RSI Accelerator are as follows:
* A bullish signal is generated whenever the Accelerator surpasses -20 after having been below it.
* A bearish signal is generated whenever the Accelerator breaks 20 after having been above it.
Historical Correlation [LuxAlgo]The Historical Correlation tool aims to provide the historical correlation coefficients of up to 10 pairs of user-defined tickers starting from a user-defined point in time.
Users can choose to display the historical values as lines or the most recent correlation values as a heat map.
🔶 USAGE
This tool provides historical correlation coefficients, the correlation coefficient between two assets highlight their linear relationship and is always within the range (-1, 1).
It is a simple and easy to use statistical tool, with the following interpretation:
Positive correlation (values close to +1.0): the two assets move in sync, they rise and fall at the same time.
Negative correlation (values close to -1.0): the two assets move in opposite directions: when one goes up, the other goes down and vice versa.
No correlation (values close to 0): the two assets move independently.
The user must confirm the selection of the anchor point in order for the tool to be executed; this can be done directly on the chart by clicking on any bar, or via the date field in the settings panel.
For the parameter Anchor period , the user can choose between the following values NONE, HOURLY, DAILY, WEEKLY, MONTHLY, QUARTERLY and YEARLY. If NONE is selected, there will be no resetting of the calculations, otherwise the calculations will start from the first bar of the new period.
There is a wide range of trading strategies that make use of correlation coefficients between assets, some examples are:
Pair Trading: Traders may wish to take advantage of divergences in the price movements of highly positively correlated assets; even highly positively correlated assets do not always move in the same direction; when assets with a correlation close to +1.0 diverge in their behavior, traders may see this as an opportunity to buy one and sell the other in the expectation that the assets will return to the likely same price behavior.
Sector rotation: Traders may want to favor some sectors that are expected to perform in the next cycle, tracking the correlation between different sectors and between the sector and the overall market.
Diversification: Traders can aim to have a diversified portfolio of uncorrelated assets. From a risk management perspective, it is useful to know the correlation between the assets in your portfolio, if you hold equal positions in positively correlated assets, your risk is tilted in the same direction, so if the assets move against you, your risk is doubled. You can avoid this increased risk by choosing uncorrelated assets so that they move independently.
Hedging: Traders may want to hedge positions with correlated assets, from a hedging perspective, if you are long an asset, you can hedge going long a negative correlated asset or going short a positive correlated asset.
Traders generally need to develop awareness, a key point is to be aware of the relationships between the assets we hold or trade, the historical correlation is an invaluable tool in our arsenal which allows us to make better informed decisions.
On this chart we have an example of historical correlations for several futures markets.
We can clearly see how positively correlated the Nasdaq100 and Dow30 are with the SP500 over the whole period, or how the correlation between the Euro and the SP500 falls from almost +85% to almost -4% since 2021.
As we can see, correlations, like everything else in the market, are not static and vary over time depending on many factors, from macro to technical and everything in between.
🔹 Heatmap
The chart above shows the tool with the default settings and the Drawing Mode set to 'HEATMAP'.
We can see the current correlation between the assets, in this case the FX pairs.
The highest positive correlation is +90% (+0.90) between EURUSD and GBPUSD.
The highest negative correlation is -78% (-0.78) between EURUSD and USDJPY.
The pair with no correlation is AUDUSD and EURCAD with 1% (0.01)
On the above chart we can see the current correlations for the futures markets.
Currently, the assets that are less correlated to the SP500 are NaturalGas and the Euro, the more positive correlations are Nasdaq100 and Dow20, and the more negative correlations are the Yen, Treasury Bonds and 10-Year Notes.
🔶 DETAILS
🔹 Anchor Period
This chart shows the standard FX correlations with the Anchor Period set to `MONTHLY`.
We can clearly see how the calculations restart with the new month, in this case we can clearly see the differences between the correlations from month to month.
Let us look at the correlation coefficient between GBPUSD and USDJPY
In January, their correlation started at close to -100%, rose to close to +50%, only to fall to close to 0% and remain there for the second half of the month.
In February it was -90% in the first few days of the month and is now around -57%.
And between AUDUSD and EURCAD
Last month their correlation was negative for most of the month, reaching -70% and ending around -14%.
This month their correlation has never gone below +21% and at the time of writing is close to +53%.
🔶 SETTINGS
Anchor point: Starting point from which the tool is executed
Anchor period: At the beginning of each new period, the tool will reset the calculations
Pairs from 1 to 10: For each pair of tickers, you can: enable/disable the pair, select the color and specify the two tickers from which you wish to obtain the correlation
🔹 Style
Drawing Mode: Output style, `LINES` will show the historical correlations as lines, `HEATMAP` will show the current correlations with a color gradient from green for correlations near 1 to red for correlations near -1.
ATH Gain PotentialThe indicator quantifies the relative position of a symbol's current closing price in relation to its historical all-time high (ATH).
By evaluating the ratio between the ATH and the present closing price, it provides an analytical framework to estimate the potential gains that could accrue if the symbol were to revert to its ATH from a specified reference point. The ratio serves as a quantitative measure for assessing the distance between the current market value and the symbol's historical peak, enabling investors to gauge the prospective profitability of a return to the ATH.
Volume Speed [By MUQWISHI]▋ INTRODUCTION :
The “Volume Dynamic Scale Bar” is a method for determining the dominance of volume flow over a selected length and timeframe, indicating whether buyers or sellers are in control. In addition, it detects the average speed of volume flow over a specified period. This indicator is almost equivalent to Time & Sales (Tape) .
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▋ OVERVIEW:
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▋ ELEMENTS
(1) Volume Dynamic Scale Bar. As we observe, it has similar total up and down volume values to what we're seeing in the table. Note they have similar default inputs.
(2) A notice of a significant volume came.
(3) It estimates the speed of the average volume flow. In the tooltip, it shows the maximum and minimum recorded speeds along with the time since the chart was updated.
(4) Info of entered length and the selected timeframe.
(5) The widget will flash gradually for 3 seconds when there’s a significant volume occurred based on the selected timeframe.
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▋ INDICATOR SETTINGS:
(1) Timezone.
(2) Widget location and size on chart.
(3) Up & Down volume colors.
(4) Option to enable a visual flash when a single volume is more than {X value} of Average. For instance, 2 → means double the average volume.
(5) Fetch data from the selected lower timeframe.
(6) Number of bars at chosen timeframe.
(7) Volume OR Price Volume.
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▋ COMMENT:
The Volume Dynamic Scale Bar should not be taken as a major concept to build a trading decision.
Please let me know if you have any questions.
Thank you.
Forex Master Pattern Screener 2Overview
The Forex Master Pattern Screener 2 is based on the Master Pattern, which includes contraction, expansion, and trend phases. This indicator is designed to identify and visualize market volatility, market phases, multi-timeframe contractions, liquidity points, and pivot calculations. It provides a clear image of the market's expansion and contraction phases. It's based on an alternative form of technical analysis that reveals the psychological patterns of financial markets through three phases.
Unlike the other master pattern indicators that just use highs and lows and aren't as accurate for finding contractions, this one uses actual measures of volatility to find extremely low levels of volatility and has customizable parameters depending on what you want to do.
What is the Forex Master Pattern?
The Forex Master Pattern is a framework that revolves around understanding market cycles, comprising the three main phases: contraction, expansion, and trend.
Contraction Phase: During this phase, the market has low volatility and is consolidating within a narrow range. Institutional volume tends to be low, and it's suggested to avoid trade entries during this period.
Expansion Phase: Volatility starts to increase, and there start to be bigger moves in price. Institutional traders start accumulating positions in this phase, and they might manipulate prices to draw in retail traders, creating liquidity for their own buying or selling goals.
Trend Phase: This final phase completes the market cycle. Institutional traders begin taking profits, leading to a reversal. This triggers panic among retail traders, resulting in liquidations and stops. This generates liquidity for institutional traders to profit, leaving retail traders with overvalued positions.
Value Line:
The "value line" acts as the fair value zone or the neutral belief zone where buyers and sellers agree on fair value. It can be likened to the center of gravity and is created during contraction zones.
Applications:
Identifying these phases and understanding the value lines can help traders determine the market's general direction and make better trading decisions.
This isn't a strategy but a concept explaining market behavior, allowing traders to develop various strategies based on these principles
The contractions, which are based on volatility calculations, can help you find out when big moves will occur, known as expansions.
How traders can use this indicator
1. Identifying Market Phases:
Contraction Phase: Look for periods where the market has low volatility and is contracting, indicated by a narrow range and highlighted by the contraction box. During this phase, traders prepare for a breakout but usually avoid making new trades until a clearer trend emerges.
Expansion Phase: When the indicator signals an expansion, it suggests that the market is moving out of consolidation and may be beginning a new trend. Traders might look for entry points here, anticipating a continuation of the trend.
Trend Phase: As the market enters this phase, traders look for signs of sustained movement in one direction and consider positions that benefit from this trend.
2. Multi-Timeframe Analysis:
By looking at multiple timeframes, traders can get a broader view of the market. For instance, a contraction phase in a shorter timeframe within an expansion phase in a longer timeframe might suggest a pullback in an overall uptrend. This indicator comes with a MTF contraction screener that is customizable.
2. Fair Value Lines:
The fair value acts like a "center of gravity.". Traders could use this as a reference point for understanding market sentiment and potential reversal points. This indicator shows these values in the middle of the contraction boxes.
3. Volatility Analysis:
This indicator's volatility settings can help traders understand the market's current volatility state. High volatility indicates a more active market with larger, faster moves, while low volatility might suggest caution and tighter stop-losses or take-profits. If volatility is contracting, then an expansion is imminent. This indicator shows the volatility with percentile ranks in 0-100 values and also alerts you when volatility is contracting, aka the contraction phase.
Volatility Calculations:
This indicator uses a geometric standard deviation to measure volatility based on historical price data. This metric quantifies the variability of price changes over a specified lookback period and then computes a percentile rank within a defined sample period. This percentile calculation helps evaluate the current volatility compared to historical levels.
Based on the percentile rank, the indicator sets thresholds to determine whether the current volatility is within a range considered "contraction" or not. For example, if there are really low levels of volatility on the percentile rank, then there is currently a contraction phase. The indicator also compares the volatility value against a moving average, where values above the current moving average value signal the expansion phase.
Multi-Timeframe Analysis (MTF):
This indicator comes with a multi-timeframe table that shows contractions for 5 different timeframes, and the table is customizable.
Bands:
This indicator comes with bands that are constructed based on the statistical calculations of the standard deviation applied to the log-transformed closing prices. It is commonly assumed that the distribution of prices fits some type of right-skewed distribution. To remove most of the skewness, you can use a log transformation , which makes the distribution more symmetrical and easier to analyze, thus the use of these bands . These bands are in the 2 standard deviation range. You can use these bands to trade at extreme levels. The band parameter is based on the contraction volatility lookback, which is in the Volatility Model Settings tab.
Ways the bands could be used with the contractions:
1. Identifying Breakout trades:
Contraction Zones: These zones indicate periods of low volatility where the market is consolidating. There are usually narrow price ranges, which are considered a build-up phase before a significant price move in any direction.
Bands: When the contraction zone occurs, you might notice the bands tightening around the price on smaller lookback periods, reflecting the decreased volatility. A continuous widening of the bands could then signal the beginning of an expansion phase, indicating a potential breakout opportunity.
2. Enhancing Trade Timing:
Before the Breakout: During the contraction phase, the bands might move closer together, reflecting the lower volatility. You can monitor this phase closely and prepare for a potential expansion. The bands can provide additional confirmation; for instance, a price move toward one of the bands might show an extreme occurrence and might show what the direction of the breakout could be.
After the breakout: Once the price breaks out of the contraction zone and goes to the expansion phase, and if it coincides with the bands widening significantly, it could reinforce the strength and potential sustainability of the new trend, providing a clearer entry.
3. Price-touching bands during a contraction:
If the price repeatedly touches one of the bands during a contraction phase, it might suggest a buildup of pressure in that direction. For example, if the price is consistently touching the upper band even though the bands are narrow, it might suggest bullish pressure that could occur once the expansion phase begin.
4. Price at the band extreme levels during Expansion:
If the price is at the extreme levels of the bands once the expansion phase occurs, it might indicate unsustainable levels and a low probability of the price continuing beyond those levels. Potentially signaling that a reversal will occur. Some trades could use these extremes to place entries during the expansion phases.
Liquidity Levels:
This script comes with liquidity points, whose functionality goes towards identifying pivotal levels in price action, focusing on swing highs and swing lows in the market. These points represent areas where significant buying (for swing lows) or selling (for swing highs) activity has occurred, implying potential levels or resistance in the price movement.
These liquidity points, often identified as highs and lows, are points where market participants have shown interest in the past. These levels can act as psychological indications where traders might place orders, leading to increased trading activity when these levels are approached or breached. When used with the Forex Master Pattern phases, liquidity levels can enhance trades placed with this indicator. For instance, if the market is expanding and approaches a significant liquidity level, there might be a higher chance of a breakout or reversal, showing a possible entry or exit point.
Liquidity Levels in the Contraction Phase:
Accumulation and Distribution: During the contraction phase, liquidity levels can indicate where huge positions are likely accumulating or distributing quietly. If price is near a known liquidity level and in a contraction phase, it might suggest that a large market player is building a position in anticipation of the next move.
Breakout Points: Liquidity levels can also give clues about where price could go after the breakout from the contraction phase. A break above a liquidity level might indicate a strong move to come as the market overcomes significant selling pressure.
Liquidity Levels in Expansion Phase:
Direct Confirmation: As the expansion phase begins, breaking through liquidity levels can confirm the new trend's direction. If the price moves past these levels with huge volume, it might indicate that the market has enough momentum to continue the trend.
Target Areas: Liquidity levels can act as target areas during the expansion phase. Traders using this indicator could look to take profits if the price approaches these levels, possibly expecting a reaction from the market.
