Chaos CypherOverview
Technically a smooth linear rate transformation, the "Chaos Cypher" drew some inspiration from the principles of Markov and chaos. Aside from price action, this combination provides a different lens through which to observe and interpret market movements. Markov models are based on the principle that future states depend only on the current state, not on the sequence of events that preceded it. Chaos theory deals with systems that are highly sensitive to initial conditions, a concept popularly referred to as the butterfly effect.
Efficient with Minimal Data: Designed to perform efficiently, the CC indicator is particularly useful in situations regardless of extensive historical data, except for obvious back testing, while still providing strength at identifying potential overbought/oversold zones and critical divergences.
Simplified Momentum Analysis: With further inspiration from the triple smoothed exponential rate, the CC actually uses linear regression for its calculations. This approach allows for a clear and more straightforward identification of deviations in momentum. The smoothing helps allow it to provide details while still operating at a fast pace due to the regression speed.
Adaptable to Various Timeframes: The transformation calculation then employed effectively narrows its scope in relation to the pace, enhancing its applicability across multiple timeframes and periods. This flexibility makes it a versatile tool suitable for various strategies and market conditions.
Fisher Transform Style Presentation: The indicator is presented in a style reminiscent of the Fisher Transform. However, this method of the script recalculates based on every individual dataset. To maintain efficiency, the adjustable length only applies to the regression rate.
The Chaos Cypher when compared to the Fisher Transform
Inversion Option for Leads: Lastly, an intriguing find when testing this script is the potential of the inversion option. This aspect proved particularly useful when searching for pullbacks on a trending market.
Conclusion
This indicator is designed to be forward-thinking and attempts to combine theoretical concepts with practicality. It has the ability to work with minimal data, adapt to various timeframes, and provide clear views of market movements. It back tested very well even when unrealistically used as a sole instrument.
"Two states differing by imperceptible amounts may eventually evolve into two considerably different states ... If, then, there is any error whatever in observing the present state—and in any real system such errors seem inevitable—an acceptable prediction of an instantaneous state in the distant future may well be impossible....In view of the inevitable inaccuracy and incompleteness of weather observations, precise very-long-range forecasting would seem to be nonexistent." -Edward Norton Lorenz
M-oscillator
Blockunity Regime Monitoring (BRM)Efficiently analyze market conditions and detect overheating zones.
Regime Monitoring (BRM) is here to help you analyze the behavior of financial markets. The oscillator allows you to observe when an asset’s trend is likely to reverse. The trend is also given by the indicator, as is the phase the market is in (trending or congested). The BRM also provides the state of the Choppiness Index, indicating whether or not the asset is about to enter a more volatile phase.
The Idea
The goal is to provide the community with a comprehensive tool for tracking market conditions, with a visual approach to identifying overheating zones.
How to Use
This tool consists of 3 main components:
An oscillator, which we describe in detail below.
Bar color to transcribe oscillator information directly onto the graph. To activate Bar Color, make sure the first option is checked in the settings. You must also uncheck "Borders" and "Wick" in your Chart Settings.
A panel that summarizes the status of various indicator information.
Elements
The Regime Monitoring oscillator
The oscillator provides several information points. First, it gives the market trend of the asset:
Green: Bullish trend.
Red: Bearish trend.
Blue: Contested trend.
It then indicates areas of overheating, where it is considered statistically probable that we will see a change in trend dynamics. These moments are shown in yellow.
This market trend is also indicated in the table.
If you see that the oscillator is above or below these limits, but not yellow, this is because we use a Choppiness Index to filter this information.
The "Enable Choppiness Index Filter" is enabled by default in the settings. So, if the Chop is discharged (under 38.2), then the oscillator's overheating state is ignored.
You can see the difference in the images below, the first with the filter and the other without:
Market Phase
We use a Vertical Horizontal Filter (VHF) to define the market phase the asset is in. This phase can have two values:
Trending: Assets evolve within a trend.
Congestion: The asset is in a moment of congestion.
Chop State
Visualize the Choppiness Index, indicating whether an asset is gearing up to enter a phase of increased volatility. It can be:
Charged: Chop is considered to indicate to be entering a stable phase.
Neutral: Chop is neutral and does not provide any specific information.
Discharged: Chop is considered to indicate a continuation of the trend.
In addition, with the "Show Choppiness Index" option, you can plot the Chop on the oscillator:
Other Settings
You can also modify the standard Regime Monitoring parameters (Lookback, Smoothing, Limits), display or hide certain components, and change all the colors.
How it Works
Regime Monitoring's main oscillator is established as follows:
We calculate the percentage of times the closing price was higher than the opening price. This is then divided by a lookback period, which in this case defaults to 20. This calculation gives a probability of the current regime.
Market Forecast w/ Signals [QuantVue]The Market Forecast With Signals Indicator is an upgraded version of the popular ThinkorSwim platforms Market Forecast. This upgraded version utilizes stochastic oscillators, moving averages, and momentum calculations to find potential buying and selling opportunities.
Stochastic Oscillator
The indicator calculates three variations of the Fast Stochastic Oscillator for different time periods:
🔹Intermediate: Calculated over a medium-term period (default 31 bars).
🔹Momentum: Calculated over a short-term period (default 5 bars).
🔹Near Term: Calculated over a very short-term period (default 3 bars).
These calculations involve finding the highest and lowest values within their respective periods and comparing the current close to this range.
Moving Average Smoothing
The results of the Fast Stochastic Oscillator for the Intermediate and Near Term are then smoothed using a Simple Moving Average (SMA):
🔹Intermediate: 5-period SMA of the Intermediate Stochastic Oscillator.
🔹Near Term: 2-period SMA of the Near Term Stochastic Oscillator.
Momentum Indicator
A custom momentum calculation is performed, using the recent high and low prices over four periods.
Display
The indicator plots the smoothed Intermediate, Near Term, and custom Momentum calculations as separate lines on the chart.
Trading Signals
While the original indicator plots the lines mentioned above, the Market Forecast w/ Signals goes a step further by identifying key moments when nuanced signals fire. The built in alerts and visual aids make spotting these trading opportunities a breeze.
Clusters - Bullish and Bearish clusters are identified based on the convergence of all three lines (Intermediate, Near, and Momentum) above 80 (Bearish) or below 20 (Bullish).
The background color of the chart changes to indicate these clusters, aiding in quick identification of market extremes.
Trend Reversals - Marked with labels on the chart, this is based on the direction of the cluster (bullish or bearish) and the subsequent price movement crossing a threshold determined during the cluster formation.
Divergences - Divergences between the Near Term line and price highs/lows are detected using pivot points. These divergences are then plotted as lines on the chart, highlighting potential discrepancies between price action and momentum, which can signal reversals.
Indicator Features:
🔹Custom Colors
🔹Show/Hide Signals
🔹Alerts
Give this indicator a BOOST and COMMENT your thoughts!
We hope you enjoy.
Cheers!
RSI MFI MultiTimeframe Oversold/OverboughtHello Traders,
This indicator is designed to easily visualize the overbought/oversold states of RSI and MFI across multiple timeframes.
The indicator is very straightforward.
The deeper the red, the closer it is to 0, and the deeper the green, the closer it is to 100. The intermediate values are rendered in a transparent gray to focus on the key regions.
However, I understand that traders may have an interest in knowing the most recent state of the oscillator, whether it was overbought or oversold.
For this reason, I have included the 'Gradient Color' option in the color settings.
By turning off this option, you can easily see at a glance which region the oscillator was in most recently.
(Gradient Color Option Off)
In addition, I know that many traders are interested in the actual RSI/MFI values across multiple timeframes.
Thus, I have displayed the RSI/MFI values for each timeframe on the far right.
Furthermore, although the name of this indicator is RSI MFI MultiTimeframe Oversold/Overbought, I have also included the Stochastic RSI as an option, as I find it personally useful.
Feel free to use it if you find it helpful.
TSI Market Timer + Volatility MeterThis is the TSI Market Timer. It is years in the making and it is comprised of four indicators in one. The stock (or source) is run through an indicator called the True Strength Indicator with settings(5,15) , then the TSI is run on both the Index(SPY) by default and what I call a Trigger line which is basically the TSI applied to the DXY (US Dollar Index).
Midline Volatility Indicator:
Lastly, we have a volatility indicator on the midline. The colors of the midline indicate levels of volatility. For the lowest volatility in the last 100 days, the dot turns dark blue. For the lowest volatility in 30 days, the dot turns aqua. For regular volatility, it remains orange. And last, for higher volatility of the last 100 days, it turns red. These are more or less arbitrary but they do come in handy.
Settings for Green/Red Shading:
Next on the indicator are the settings. You can toggle a color change between the stock/source and the index(spy). If the stock/source is greater than the index, it will color the area in between a green and if it is below the index, it will be red.
There is also a toggle for the stock/source and the trigger/DXY. This will also show green when the stock is above the trigger and red if it is below the trigger.
By turning on both of these, you get light green and dark green areas as well as red and darker red areas. The lighter green represent when the stock is above both the index and the trigger and conversely for the red areas.
Settings for vertical line crossings:
When the stock crosses the trigger/dxy line, it shows a green vertical line signal. When the stock crosses below the trigger/dxy, a red vertical line is shown.
You can turn these off by toggling them in the settings.
Stacked Condition:
Lastly, we have a "stacked condition" which shows up as a white triangle at the bottom when the condition of the stock being above the index and the trigger below the zero line.
New Highs:
If you see the stock line turn lime green, this indicates a new high was reached for the last 255 days/periods. This is like a new 52 week high signal.
Note:
This indicator is made mostly for the stock market. It may work ok during the week for crypto but using the trigger/dxy and index lines on the weekends doesn't work too well as they will be flat.
Also note that this indicator is not a recommendation to buy or sell any stock/instrument. It is only a study of market conditions. Any analysis should be followed up with volume analysis or other confirming indicators.
Advanced Divergence OscillatorIntroduction to ADO
The Advanced Divergence Oscillator (ADO) is a modern tool crafted for traders in various markets like stocks, forex, or cryptocurrencies. Imagine it as a smart gadget that helps you understand the ebb and flow of market prices. Unlike standard tools, ADO provides a more nuanced view, enabling you to grasp subtle changes in market trends.
Functionality of ADO
ADO operates by observing and comparing market price movements over different timeframes. Picture a racetrack where cars are moving at various speeds. Some are racing ahead, while others are gradually picking up pace. ADO keeps track of these varying 'speeds' in market prices.
By analyzing these movements, ADO generates a smooth, flowing line – the oscillator. This line moves in a wave-like pattern, offering hints about the market's momentum and possible future trends. When the line moves up, it suggests increasing prices, and when it moves down, it hints at falling prices.
How to Use ADO
Setup: You can easily integrate ADO into your trading platform, adjusting settings like length and color to suit your preference.
Reading the Oscillator: Watch for the oscillator's movement. Rising and falling patterns can indicate potential buying or selling opportunities.
Identifying Divergences: ADO excels in spotting divergences – situations where market prices and the oscillator don't align. For instance, if prices are climbing but the oscillator is falling, it might signal a potential price drop ahead.
Brief History of the Ultimate Oscillator
The concept of oscillators in trading isn’t new. The Ultimate Oscillator, developed by Larry Williams in the 1970s, is a foundational tool in this field. Williams' innovation was to combine short, intermediate, and long-term market trends into a single oscillator. This approach offered a more comprehensive market view, helping traders make informed decisions.
The ADO is a step further in this evolution. It takes the core principles of the Ultimate Oscillator and enhances them with proper smoothing and divergence detection methods. This evolution represents the continuous effort in the trading community to refine tools for better market analysis and decision-making.
Fisher Transform RevisitedFisher Transform developped by Ehlers is used mostly to detect peaks and troughs, which it does with little lag, but there are many false signals. Looking at its formula and construction, we can revisit it for the purpose of detecting trends and flat market.
How do we want to do that? There are 3 different actions:
Increase the default value from usual 9 or 10 to 30
Show the indicator as seen from upper time frame with synthetic rolling candles
Change the weights in first formula in order to saturate the input signal, push the trend data to the limits, so therefore leaving a good view when market is flat
As can be seen from the chart above, the revisited Fisher is above 2 for uptrend markets, below -2 for downtrending markets and in-between when the market is flat.
Notes
Weights for Fisher transform formula can be changed as parameters. Recommended valeus are 0.6 and 0.6 to saturate signal. You may come back to original formula by setting 0.33 and 0.66.
Parameter n allows view from upper time, a multiple of current time frame. n = 1 for current chart, n = 5 for 5 minutes view on the 1 min chart
Usage
Of course, it should be not be used in standalone mode. Indicator is for trend traders who can stay away when market is flat. Trend start when indicator goes above 2 but like all trade indicators, it will be late; it is therefore a good idea to change n back to 1 to get a timely entry, to be confirmed of course with other elements of technical analysis.
Multi-data oscillatorThe multi-data oscillator is a tool created to help traders visualize clearly how an oscillator works and moves considering different input parameters.
In this tool, you can choose to visualize the script as the RSI, the CCI, the LOC indicator, a custom-created formula that simply shows the location of the data considering X past values, or the average of all of these three indicators.
In the settings, you can choose both the length of the indicator and the smoothing factor.
Additionally, the indicator has a gradient color that changes considering the deviation and the variance of the different lines used to calculate the average line, displayed with more thickness.
RS for VPAThis is a supporting Indicator for the Volume Price Analysis Script VPA 5.0.
Purpose
To indicate the performance of the stock compared to an Index or any other selected stock. It also provides an idea about the strength of the Reference Index as well.
Description
The indicator is an unbound oscillator moving around a zero line. If the stock is strong then the values are positive and if it is weak the values are negative. If the stock is performing better (Stronger) than the Index the indicator is positive and colored green. If the stock is weaker than the Index it is negative and is colored Red.
The background indicates the strength of the Reference Index/Stock. Bullishness/up trend of the Index/Stock is indicated by yellow colour. Short term uptrend, Mid term uptrend and Long term trends are indicated by different shades of yellow varying from light to Dark. The bearishness / down trend is indicated by blue back ground.
How it Works
The relative strength is calculated by using the formula
RS = Gain of the stock / (Gain of the Ref. Index -1)
= (Stock Price today / Stock Price (N period ago)) /
(Index Price today / Index price (N period ago)) – 1
The Index strength is calculated as below
Short term trend up = 5 ema > 22 ema
Mid Term trend up = 22 ema > 60 ema
Long term trend up = 60 ema > 130 ema
Trend down = 5 ema < 22 ema
How to use
Use this indicator to assist your Price Action Analysis using VPA 5.0. When the Price action and volume indicates Bullishness, you can check if the relative strength is also supporting (Positive and in green Territory). This adds credibility to the Price action. Also check if the index is also positive (the Back ground is yellow). This makes the Price action even stronger. Ideally both the stock and index should be strong. Many time you would find the that the stock is in green territory but the index is in blue territory. This calls for some caution in evaluating the Price Action.
When the price action is positive but the relative strength is negative then one should be cautious and wait for the relative strength to turn positive before any entry decision.
Option for the Indicator
One can select the following from the setting for the indicator
1. Index or reference stock – Default is CNX 500
2. Relative Strength Calculation period – Default is 22
3. The EMA periods for the Index/Reference stock strength calculation
[KVA]nRSIThe nRSI stands as a groundbreaking enhancement of the traditional Relative Strength Index (RSI), specifically engineered for traders seeking a more refined and accurate tool in fast-moving markets.
Customizable Price Change Period (n): Unlike the traditional RSI which solely relies on a fixed period for average gains and losses, the nRSI introduces an additional parameter, n, to calculate price changes.
This adaptation focuses on minimizing market noise, sharpening the indicator's sensitivity to genuine trends and patterns.
Enhanced Signal Precision : By reducing the influence of short-term price spikes and fluctuations, the nRSI delivers a more precise signal. This precision is particularly crucial in volatile market conditions, where traditional indicators may be swayed by transient movements.
Ideal Usage
Strategic Trading Decisions : Ideal for traders who need to filter out insignificant price movements to make more strategic, informed trading decisions.
Reliable Divergence Spotting : Enhanced noise reduction aids in identifying more reliable divergences, key for predicting potential market reversals.
Trend Confirmation : The smoothed RSI, assisted by the moving average, becomes an invaluable tool for confirming the validity of market trends, minimizing false signals.
Detrended Price Rate of ChangeThe Detrended Price Rate of Change is an oscillator developed to help traders identify potential conditions of overbought and oversold markets.
The formula of the oscillator includes both the Detrended price formula, useful to spot divergences, and the Rate of change simplified formula, which helps in identifying overextended markets and gives useful information on price momentum.
ATH Drawdown Indicator by Atilla YurtsevenThe ATH (All-Time High) Drawdown Indicator, developed by Atilla Yurtseven, is an essential tool for traders and investors who seek to understand the current price position in relation to historical peaks. This indicator is especially useful in volatile markets like cryptocurrencies and stocks, offering insights into potential buy or sell opportunities based on historical price action.
This indicator is suitable for long-term investors. It shows the average value loss of a price. However, it's important to remember that this indicator only displays statistics based on past price movements. The price of a stock can remain cheap for many years.
1. Utility of the Indicator:
The ATH Drawdown Indicator provides a clear view of how far the current price is from its all-time high. This is particularly beneficial in assessing the magnitude of a pullback or retracement from peak levels. By understanding these levels, traders can gauge market sentiment and make informed decisions about entry and exit points.
2. Risk Management:
This indicator aids in risk management by highlighting significant drawdowns from the ATH. Traders can use this information to adjust their position sizes or set stop-loss orders more effectively. For instance, entering trades when the price is significantly below the ATH could indicate a higher potential for recovery, while a minimal drawdown from the ATH may suggest caution due to potential overvaluation.
3. Indicator Functionality:
The indicator calculates the percentage drawdown from the ATH for each trading period. It can display this data either as a line graph or overlaid on candles, based on user preference. Horizontal lines at -25%, -50%, -75%, and -100% drawdown levels offer quick visual cues for significant price levels. The color-coding of candles further aids in visualizing bullish or bearish trends in the context of ATH drawdowns.
4. ATH Level Indicator (0 Level):
A unique feature of this indicator is the 0 level, which signifies that the price is currently at its all-time high. This level is a critical reference point for understanding the market's peak performance.
5. Mean Line Indicator:
Additionally, this indicator includes a 'Mean Line', representing the average percentage drawdown from the ATH. This average is calculated over more than a thousand past bars, leveraging the law of large numbers to provide a reliable mean value. This mean line is instrumental in understanding the typical market behavior in relation to the ATH.
Disclaimer:
Please note that this ATH Drawdown Indicator by Atilla Yurtseven is provided as an open-source tool for educational purposes only. It should not be construed as investment advice. Users should conduct their own research and consult a financial advisor before making any investment decisions. The creator of this indicator bears no responsibility for any trading losses incurred using this tool.
Please remember to follow and comment!
Trade smart, stay safe
Atilla Yurtseven
Dope DPOThe "Dope DPO" (DDPO) indicator is a technical analysis tool designed for traders to identify trends and potential trend changes in the market. It's based on the concept of the Detrended Price Oscillator (DPO), but with several enhancements for greater versatility and user customization.
Key Features of the Dope DPO Indicator:
Averaging Multiple Periods: The indicator averages the DPO calculations over ten different time periods. This averaging helps in smoothing out the volatility and providing a more comprehensive view of the market trend.
Customizable Smoothing: Users can choose the length of the smoothing as well as the type of moving average (SMA, EMA, WMA, or RMA) for smoothing. This allows for flexibility in how the indicator responds to price changes.
Trend Change Detection: The indicator includes a feature to detect changes in the market trend. It does this by comparing the current value of the smoothed DPO to its value a specified number of bars back. This helps in identifying potential reversals or shifts in momentum.
Dynamic Color Coding: The indicator uses color coding (green and red) to visually represent the trend direction. If the smoothed DPO is trending upwards compared to a previous value, the color will be green, indicating bullish momentum. Conversely, a red color signifies bearish momentum.
Horizontal Reference Lines: It includes horizontal lines at specific levels (overbought, zero, and oversold) to provide reference points for interpreting the indicator's values.
Usage:
Traders can use the Dope DPO to gauge the overall market trend and to look for potential entry and exit points based on trend changes.
The color-coded histogram makes it easy to spot when the trend might be reversing, which can be particularly useful in conjunction with other technical analysis tools.
The flexibility in choosing the smoothing method and length allows traders to tailor the indicator to different trading styles and timeframes.
Pullback and Throwback Candle [TrendX_]Pullback and Throwback candles can help traders determine the the potential reversal points
USAGE
The indicator identifies pullback and throwback in overbought and oversold zones by measuring the distance between the price and its relative strength index.
A Pullback is an expected rebound in a downtrend (painted in green area), while a Throwback is a bounceback from an uptrend (painted in red area).
The strategy is useful for valuing reversal points. Accordingly, it can also be helpful for traders to use alongside other Technical Analysis indicators.
DISCLAIMER
This indicator is not financial advice, it can only help traders make better decisions.
There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur.
Therefore, one should always exercise caution and judgment when making decisions based on past performance.
Standardized SuperTrend Oscillator
The Standardized SuperTrend Oscillator (SSO) is a versatile tool that transforms the SuperTrend indicator into an oscillator, offering both trend-following and mean reversion capabilities. It provides deeper insights into trends by standardizing the SuperTrend with respect to its upper and lower bounds, allowing traders to identify potential reversals and contrarian signals.
Methodology:
Lets begin with describing the SuperTrend indicator, which is the fundamental tool this script is based on.
SuperTrend:
The SuperTrend is calculated based on the average true range (ATR) and multiplier. It identifies the trend direction by placing a line above or below the price. In an uptrend, the line is below the price; in a downtrend, it's above the price.
pine_st(float src = hl2, float factor = 3., simple int len = 10) =>
float atr = ta.atr(len)
float up = src + factor * atr
up := up < nz(up ) or close > nz(up ) ? up : nz(up )
float lo = src - factor * atr
lo := lo > nz(lo ) or close < nz(lo ) ? lo : nz(lo )
int dir = na
float st = na
if na(atr )
dir := 1
else if st == nz(up )
dir := close > up ? -1 : 1
else
dir := close < lo ? 1 : -1
st := dir == -1 ? lo : up
SSO Oscillator:
The SSO is derived from the SuperTrend and the source price. It calculates the standardized difference between the SuperTrend and the source price. The standardization is achieved by dividing this difference by the distance between the upper and lower bounds of the SuperTrend.
float sso = (src - st) / (up - lo)
Components and Features:
SuperTrend of Oscillator - An additional SuperTrend based on the direction and volatility of the oscillator, behaving as the SuperTrend OF the SuperTrend. This provides further trend analysis of the underlying broad trend regime.
Reversion Tracer - The RSI of the direction of the original SuperTrend, providing a dynamic threshold for premium and discount price areas.
float rvt = ta.rsi(dir, len)
Heikin Ashi Transform - An option to apply the Heikin Ashi transform to the source price of the oscillator, providing a smoother visual representation of trends.
Display Modes - Choose between Line mode for a standard oscillator view or Candle mode, displaying the oscillator as Heikin Ashi candles for more in-depth trend analysis.
Contrarian and Reversion Signals:
Contrarian Signals - Based on the SuperTrend of the oscillator, these signals can act as potential buy or sell indications, highlighting potential trend exhaustion or premature reversals.
Reversion Signals - Generated when the oscillator crosses above or below the Reversion Tracer, signaling potential mean reversion opportunities or trend breakouts.
Utility and Use Cases:
Trend Analysis - Utilize the SSO as a trend-following tool with the added benefits of the oscillator's SuperTrend and Heikin Ashi transform.
Valuation Analysis - Leverage the oscillator's reversion signals for identifying potential mean reversion opportunities in the market.
The Standardized SuperTrend Oscillator enhances the capabilities of the SuperTrend indicator, offering a balanced approach to both trend-following and mean reversion strategies. Its customizable options and contrarian signals make it a valuable instrument for traders seeking comprehensive trend analysis and potential reversal signals.
Ultimate RSIThis indicator is a customized version of the RSI indicator that by default utilizes Bollinger Bands. It have included two layers of bands, with separate standard deviations. The indicator is fully customizable.
The indicator displays bullish and bearish divergence from price.
You are able to change the moving average that is used to calculate both the RSI itself, as well as the moving average used for the Bollinger Bands.
I have included fills that color the background to indicate various zones of RSI values.
Price tends to either reject or move quickly at these levels.
I have a yellow RSI zone that indicates a sideways market with little to no momentum with default values of 45 to 55. These are areas where trading is stagnant and you should likely avoid placing trades.
There is now an ATR feature to adjust the Bollinger Bands with ATR (Average True Range).
In order to trade with this indicator, you should watch for the white line (RSI) to cross into the Bollinger Bands, then cross over the yellow moving average (Basis line), where you would enter a BUY or SELL.
Watch this indicator in action and look for patterns. Draw vertical lines on the chart where you would have wanted to buy or sell and study this to understand how to make better trading decisions.
NOTE:
While not required in order to use this indicator, it was designed to visually work with another indicator of mine called The Ultimate Buy and Sell Indicator. I recommend using both together as they are a strong pair of indicators that share the same settings. This indicator while it can be used independently can also help you visualize the settings changes made to the other one which are unable to be displayed on the main chart by that indicator.
Oscillator Volume Profile [Trendoscope®]The Oscillator Volume Profile indicator is designed to construct a volume profile based on predefined oscillator levels. It integrates volume data with oscillator readings to offer a unique perspective on market dynamics.
🎲 Selectable Oscillators:
Users can select from an array of oscillator options for the basis of the volume profile, including:
Relative Strength Index (RSI)
Chande Momentum Oscillator (CMO)
Center of Gravity (COG)
Money Flow Index (MFI)
Rate of Change (ROC)
Commodity Channel Index (CCI)
Stochastic Oscillator (Stoch)
True Strength Index (TSI)
Williams %R (WPR)
The length parameters - Length, Fast Length, Slow Length allows users to define the period over which the chosen oscillator is calculated, tailoring the sensitivity of the indicator to their trading strategy.
🎲 Dynamic Overbought/Oversold Ranges:
This indicator enhances traditional concepts by introducing dynamic overbought and oversold levels. These adaptable thresholds are calculated using various methods, including:
🎯 Highest/Lowest Range Method : This method establishes the range based on the highest and lowest values of the oscillator within the last N bars.
🎯 Moving Average Range Method : The range is derived from a moving average of the oscillator, providing a smoothed threshold that reflects more recent market conditions.
In addition to these methods, the indicator incorporates a unique 'Sticky Border' feature:
🎯 Sticky Border: With this option enabled, the dynamic ranges maintain their levels until the oscillator breaks out of the range. Once a breakout occurs, the levels are recalculated and updated. This mechanism ensures that the borders remain consistent and relevant, only adjusting to significant market movements that warrant a recalculation.
Users can select their preferred method for determining dynamic ranges, allowing for a customized approach that aligns with their analysis and trading strategy. The sticky border feature further refines this functionality, offering continuity until a decisive market move occurs.
🎲 Volume Profile Calculation Parameters:
🎯 Trend Filter: The indicator provides a versatile trend filter with four selectable options:
Uptrend: The volume profile is calculated when the oscillator indicates an uptrend.
Downtrend: The volume profile is calculated when the oscillator indicates a downtrend.
Any: The volume profile is calculated regardless of the trend.
External: Users can input values from an external indicator. The volume profile is then calculated only when the external indicator's value is non-zero, integrating external analysis into the volume profile construction.
🎯 Precision: Users have the option to define the precision for calculating the volume profile, which is crucial due to the varying scales of different oscillators (e.g., some oscillators range from 0 to 100, while others from -1 to 1). Selecting an appropriate precision ensures that the volume profile is accurately aligned with the minimal price range significant to the chosen oscillator. This setting requires user intervention for optimal configuration, as automatic calculation is not feasible due to the diverse nature of oscillator ranges.
🎯 Number of Bars: Users can select a specific number of bars for volume profile calculation, or opt to include all available historical bars for a comprehensive profile.
🎲 Selecting the right precision:
Users must select the right precision based on their choice of indicator. For example, RSI values range from 0-100. Hence, the default precision of 1 work fine on RSI as the volume profiles are plotted from 0 to 100 at the interval of 0.1
But, the default precision of 1 will not be ok on TSI because TSI values range from -1 to 1. Hence, using 1 as precision will result in very less volume profile lines as shown below.
Due to this, it is necessary to increase the precision for oscillators such as TSI where the range between highest and lowest value is far less. Once we set the precision to 2, we can see more appropriate volume profile division.
🎲 Note of thanks:
This publication uses polyline feature for drawing volume profiles. The advantage of using polyline is that we can overcome max 500 lines issue that we face by using the regular line objects. More details of polyline can be found in the tradingview blog post
Further, using polyline for display of volume profiles is inspired by the publications of fikira and KioseffTrading
K`s Extreme DurationExtreme duration uses a special combination of the RSI and its relative position to deliver a reversal signal.
The following are the conditions to generate signals:
* Bullish signal: The current 8-period RSI is below 50 and above 35 while the previous 5 RSI's are below 35.
* Bearish signal: The current 8-period RSI is above 50 and below 65 while the previous 5 RSI's are above 65.
2Rsi buy & sell & candlesticks patterns in rsi[Trader's Journal]An Ingenious Trading Indicator: RSI, Japanese Candlesticks, and Buy/Sell Signals
The world of trading is a subtle game of analysis, where the smallest piece of information can make the difference between success and failure. In this perpetual quest to anticipate market movements, one indicator stands out: the Relative Strength Index (RSI), a powerful tool that measures the strength of price movements. However, RSI alone may not always suffice for informed trading decisions.
This is where our indicator comes into play, adding a new dimension to your analysis. The indicator skillfully combines RSI with Japanese candlesticks, those small candles rich in market movement information. The goal is clear: to generate buy and sell signals during trend reversals while keeping a keen eye on overbought and oversold zones.
RSI: Guardian of Extremes
The RSI is a basic tool that measures buying and selling pressure on an asset. It oscillates between 0 and 100, signaling overbought levels when the RSI exceeds 70 and oversold levels below 30. These extreme zones are often the stage for trend reversals, but timing is crucial.
Japanese Candlesticks: Messengers of the Market
Japanese candlesticks are more than just candles on a chart. They depict market emotions, reflecting the ongoing struggle between buyers and sellers. Trend reversals are typically heralded by specific candlestick patterns such as the Bearish Engulfing, Evening Star, or Inverted Hammer. These candlesticks act as powerful visual signals.
The Indicator in Action: Timing and Confirmation
When the RSI reaches the overbought zone (above 70) or oversold zone (below 30), our indicator is on alert. This is when vigilance is at its peak. However, buy and sell signals don't occur automatically. They await confirmation from Japanese candlesticks.
For a sell signal, the indicator awaits an exit from the overbought zone, followed by a bearish reversal candlestick. When these conditions are met, the sell signal is triggered. For a buy signal, the process is similar, but upon exiting the oversold zone and in the presence of a bullish candlestick.
The Elegance of the Combination
The beauty of this indicator lies in its ability to combine RSI analysis with the power of Japanese candlesticks. It doesn't just predict trend reversals, it does so elegantly, demanding visual confirmation, thus avoiding false signals.
As the market moves relentlessly, this indicator is your ally for making informed decisions. It reminds you that the wisdom of trading lies in combining different analytical tools to decipher the mysteries of the financial market. Envelop your trading strategies with this indicator, and witness how it can illuminate your path to success.
Fisher+ [OSC]The Fisher Transform Indicator is classified as an oscillator, meaning that its value swings above and below a central point. This characteristic allows traders to identify overbought and oversold conditions, providing potential clues about market reversals. As mentioned previously, it is an oscillator so the strength of the move is displayed by how long the fisher line stays above/below zero. Indicator can be used to aid in confluence near supply/demand zones.
White Line = Fisher
Red/Blue Line = Moving Average
--Changes color whether fisher line is above/below the MA
Red/Blue Shaded Line = Moving Average
--Changes color based on a smoothing factor
Red/Blue Shaded Fill = Asset in Overbought/Oversold Conditions
Red/Blue Circles = Asset in Extreme Overbought/Oversold Conditions
Red/Blue Triangles = MACD Signals Below/Above "0"
Divergence Labels = Asset Signaling Divergence
The moving average line will turn red/blue as long as the fisher line is below/above the moving average. The shaded MA line will switch colors based on if it is moving in an up/down trend. The MA can also be used as a signal and treated similar to an oscillator. Market trending conditions will either keep the MA below/above the dashed zero line.
MACD code credited to LazyBear's MACD Leader indicator. It is used to filter out/confirm any signals such as divergences. As long as the MACD Leader line is above both the MACD line and signal lines then it'll signal with with a triangle. MACD divergences will be added at a later time.
MA + MACD alert TrendsThis is a strategy/combination of warning indicators using 6MA+MACD.
The strategy details are as follows: This is a simple warning strategy created so that we don't have to monitor the candlestick chart too often.
Note: This isn't an entry strategy; it's a signaling strategy for upcoming trends. For maximum efficiency, we should incorporate more formulas into the command. In the case below, I use Fibonacci to enter the command.
This strategy setting works for a 15-minute time frame, but it can still work for different time frames.
It has been working well with Gold and USOIL for the last two years, as well as with currency pairs like EURUSD and many others.
Components:
EMA100 + EMA200 + MA400 + MA800
MACD (timeframe greater than 1 timeframe)
Fibonacci retreat.
Uptrend alert:
Candles on both EMAs (100-200) + 2 SMAs (400-800)
In the previous 80 candles:
EMA100 cross up to EMA200
At the same time, the MACD cross up 0.
The uptrend warning will trigger when EMA6 cuts down to MA10. That's when the price creates the top and we'll wait for the market to go back to the Fibonacci threshold of 0.618 and start buying (or wait for markets to break up the trendline to buy).
Downtrend alert:
Candles are below both EMAs ( 100-200 ) + 2 SMAs ( 400-800 )
In the previous 80 candles:
EMA100 cross down to EMA200
At the same time, the MACD cross down zero.
The downtrend warning will trigger when EMA6 cuts to MA10. That's when the price creates a bottom and we'll wait for the market to go back to the Fibonacci threshold of 0.618 and start selling (or wait for the market to break down the trendline to sell).
Recommended RR: 1:1
If you have any questions please let me know!
Voluminati: Uncovering Market SecretsVoluminati: Uncovering Market Secrets
Overview:
The Voluminati indicator dives deep into the secrets of trading volume, providing traders with unique insights into the market's strength and direction. This advanced tool visualizes the Relative Strength Index (RSI) of trading volume alongside the traditional RSI of price, presenting an enriched perspective on market dynamics.
Features:
Volume RSI: A unique twist on the traditional RSI, the Volume RSI measures the momentum of trading volume. This can help identify periods of increasing buying or selling pressure.
Traditional RSI: The renowned momentum oscillator that measures the speed and change of price movements. Useful for identifying overbought or oversold conditions.
Moving Averages: Both the Volume RSI and traditional RSI come with optional moving averages. These can be toggled on or off and are customizable in type (SMA or EMA) and length.
Overbought & Oversold Fills: Visual aids that highlight regions where the Volume RSI is in overbought (above 70) or oversold (below 30) territories. These fills help traders quickly identify potential reversal zones.
How to Use:
Look for divergence between the Volume RSI and price, which can indicate potential reversals.
When the Volume RSI moves above 70, it might indicate overbought conditions, and when it moves below 30, it might indicate oversold conditions.
The optional moving averages can be used to identify potential crossover signals or to smooth out the oscillators for a clearer trend view.
Customizations:
Toggle the display of the traditional RSI and its moving average.
Choose the type (SMA/EMA) and length for both the Volume RSI and traditional RSI moving averages.
Note: Like all indicators, the Voluminati is best used in conjunction with other tools and analysis techniques. Always use proper risk management.
Momentum Madness (AKA: Moms Mad)The "Momentum Madness" indicator is a customizable technical analysis tool designed for TradingView. It aims to help traders assess price momentum and make informed trading decisions. Below is a description of how this indicator works:
Indicator Title and Settings:
The indicator is titled "Momentum Madness" with a short title "Moms Mad."
Users can customize various settings to tailor the indicator to their preferences.
Input Parameters:
Traders can set the lengths (periods) for four different momentum calculations (len1, len2, len3, len4).
They can specify a lookback period for trend direction determination.
Users can choose from three smoothing types (RMA, SMA, EMA) and set the smoothing length (smoothLength).
The indicator offers options to adjust momentum calculations based on volume (useVolumeWeight), RSI (useRSIAdjustment), and MACD (useMACDAdjustment).
If the trend filter is enabled (useTrendFilter), the indicator considers whether the price is above the 200-period SMA.
Traders can incorporate Bollinger Bands adjustments (useBBAdjustment) and set the Bollinger Bands length (bbLength).
A volatility adjustment can be applied (useVolatilityAdjustment), using the Average True Range (ATR) with a specified length (atrLength).
Smoothing Function:
The indicator offers three smoothing options: RMA, SMA, and EMA, allowing users to select their preferred method for smoothing price data.
Momentum Calculations:
The indicator calculates four different momentum values (mom1, mom2, mom3, mom4) by subtracting the current price from historical prices based on the specified lengths.
Enhancement Features:
Users can enhance momentum calculations through volume weighting, RSI adjustment, MACD adjustment, trend filtering, Bollinger Bands adjustment, and volatility adjustment, depending on their preferences.
Trend Direction Detection:
The indicator identifies the trend direction based on the comparison of the current momentum (mom4Smooth) with a momentum value from a specified lookback period. It determines whether the trend is bullish (green), bearish (red), or neutral (no change).
Plots:
The indicator visualizes the four smoothed momentum values (mom1Smooth, mom2Smooth, mom3Smooth, mom4Smooth) as separate plots on the chart, each with its own customizable color.
A zero line is displayed for reference (yellow).
The average momentum (averageMomentumSmooth) is plotted and can be customized with its own color.
The "Momentum 4" plot dynamically changes color based on trend direction (green for bullish, red for bearish).
Fill:
The indicator fills the area between the "Momentum 4" plot and the zero line with a customizable color to highlight bullish or bearish momentum.
Look for crossover events by studying the chart and understanding what they all mean. Happy trading :)
