Money Flow Profile [Angel Algo]Money Flow Profile
Overview
This indicator is designed to analyze trading activity and identify key supply and demand zones using volume and money flow data. It is an advanced tool for traders who want to incorporate volume profile analysis into their trading strategy, enhancing their ability to spot potential reversal zones and understand market sentiment.
Features
1. Customizable Lookback Period
Description: Users can specify the number of bars to consider in the volume profile calculation, allowing for flexible analysis over different periods.
Functionality: This setting adjusts the depth of historical data analyzed, enabling traders to tailor the indicator to various trading styles and timeframes.
2. Row Size Configuration
Description: This input determines the number of rows (or price levels) displayed in the volume profile.
Functionality: By adjusting the row size, traders can get a more granular or more generalized view of trading activity at different price levels.
3. Data Source Selection
Options: Volume, Money Flow
Description: Traders can choose between using traditional volume data or money flow for the volume profile calculation.
Functionality: Money flow incorporates both price and volume to give a more comprehensive view of market buying and selling pressure, while volume focuses solely on trading activity.
Volume:
Money Flow:
4. Color Gradient for Volume Intensity
Description: The script allows setting maximum and minimum colors to create a gradient that visually represents the intensity of trading activity.
Functionality: This visual aid helps traders quickly identify areas of high and low trading activity, enhancing the interpretability of the volume profile.
Advanced Analysis: Supply and Demand Zones
1. Sentiment Analysis-Based Zoning
Description: The script analyzes the volume profile bars above and below the current close price to detect zones with significant buying or selling pressure.
Methodology:
Supply Zones: Identified by analyzing bars above the current close and finding the area with the highest selling pressure, indicated by volume delta.
Demand Zones: Identified by analyzing bars below the current close and finding the area with the highest buying pressure.
2. Volume Delta Calculation
Description: Volume delta, the difference between buy and sell volumes, is used to gauge the strength of buying or selling pressure at each price level.
Functionality: This calculation helps pinpoint the most significant supply and demand zones, providing traders with potential entry and exit points based on market sentiment.
Usage Scenario
This indicator is particularly useful for traders who focus on intraday trading, swing trading, or any strategy that benefits from understanding volume dynamics and sentiment at specific price levels. It allows traders to visually assess which levels are likely to act as resistance or support, based on historical trading activity and current market sentiment.
Conclusion
By integrating both traditional and innovative analytical methods, this Indicator offers a powerful tool for market analysis. Its flexibility and depth provide traders with valuable insights into market dynamics.
Money Flow Index (MFI)
Money Flow Index Trend Zone Strength [UAlgo]The "Money Flow Index Trend Zone Strength " indicator is designed to analyze and visualize the strength of market trends and OB/OS zones using the Money Flow Index (MFI). The MFI is a momentum indicator that incorporates both price and volume data, providing insights into the buying and selling pressure in the market. This script enhances the traditional MFI by introducing trend and zone strength analysis, helping traders identify potential trend reversals and continuation points.
🔶 Customizable Settings
Amplitude: Defines the range for the MFI Zone Strength calculation.
Wavelength: Period used for the MFI calculation and Stochastic calculations.
Smoothing Factor: Smoothing period for the Stochastic calculations.
Show Zone Strength: Enables/disables visualization of the MFI Zone Strength line.
Show Trend Strength: Enables/disables visualization of the MFI Trend Strength area.
Trend Strength Signal Length: Period used for the final smoothing of the Trend Strength indicator.
Trend Anchor: Selects the anchor point (0 or 50) for the Trend Strength Stochastic calculation.
Trend Transform MA Length: Moving Average length for the Trend Transform calculation.
🔶 Calculations
Zone Strength (Stochastic MFI):
The highest and lowest MFI values over a specified amplitude are used to normalize the MFI value:
MFI Highest: Highest MFI value over the amplitude period.
MFI Lowest: Lowest MFI value over the amplitude period.
MFI Zone Strength: (MFI Value - MFI Lowest) / (MFI Highest - MFI Lowest)
By normalizing and smoothing the MFI values, we aim to highlight the relative strength of different market zones.
Trend Strength:
The smoothed MFI zone strength values are further processed to calculate the trend strength:
EMA of MFI Zone Strength: Exponential Moving Average of the MFI Zone Strength over the wavelength period.
Stochastic of EMA: Stochastic calculation of the EMA values, smoothed with the same smoothing factor.
Purpose: The trend strength calculation provides insights into the underlying market trends. By using EMA and stochastic functions, we can filter out noise and better understand the overall market direction. This helps traders stay aligned with the prevailing trend and make more informed trading decisions.
🔶 Usage
Interpreting Zone Strength: The zone strength plot helps identify overbought and oversold conditions. A higher zone strength indicates potential overbought conditions, while a lower zone strength suggests oversold conditions, can suggest areas for entry/exit decisions.
Interpreting Trend Strength: The trend strength plot visualizes the underlying market trend, can help signal potential trend continuation or reversal based on the chosen anchor point.
Using the Trend Transform: The trend transform plot provides an additional layer of trend analysis, helping traders identify potential trend reversals and continuation points.
Combine the insights from the zone strength and trend strength plots with other technical analysis tools to make informed trading decisions. Look for confluence between different indicators to increase the reliability of your trades.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Fusion MFI RSIHello fellas,
This superb indicator summons two monsters called Relative Strength Index (RSI) and Money Flow Index (MFI) and plays the Yu-Gi-Oh! card "Polymerization" to combine them.
Overview
The Fusion MFI RSI Indicator is an advanced analytical tool designed to provide a nuanced understanding of market dynamics by combining the Relative Strength Index (RSI) and the Money Flow Index (MFI). Enhanced with sophisticated smoothing techniques and the Inverse Fisher Transform (IFT), this indicator excels in identifying key market conditions such as overbought and oversold states, trends, and potential reversal points.
Key Features (Brief Overview)
Fusion of RSI and MFI: Integrates momentum and volume for a comprehensive market analysis.
Advanced Smoothing Techniques: Employs Hann Window, Jurik Moving Average (JMA), T3 Smoothing, and Super Smoother to refine signals.
Inverse Fisher Transform (IFT) Enhances the clarity and distinctiveness of indicator outputs.
Detailed Feature Analysis
Fusion of RSI and MFI
RSI (Relative Strength Index): Developed by J. Welles Wilder Jr., the RSI measures the speed and magnitude of directional price movements. Wilder recommended using a 14-day period and identified overbought conditions above 70 and oversold conditions below 30.
MFI (Money Flow Index): Created by Gene Quong and Avrum Soudack, the MFI combines price and volume to measure trading pressure. It is typically calculated using a 14-day period, with over 80 considered overbought and under 20 as oversold.
Application in Fusion: By combining RSI and MFI, the indicator leverages RSI's sensitivity to price changes with MFI's volume-weighted confirmation, providing a robust analysis tool. This combination is particularly effective in confirming the strength behind price movements, making the signals more reliable.
Advanced Smoothing Techniques
Hann Window: Traditionally used to reduce the abrupt data discontinuities at the edges of a sample, it is applied here to smooth the price data.
Jurik Moving Average (JMA): Known for preserving the timing and smoothness of the data, JMA reduces market noise effectively without significant lag.
T3 Smoothing: Developed to respond quickly to market changes, T3 provides a smoother response to price fluctuations.
Super Smoother: Filters out high-frequency noise while retaining important trends.
Application in Fusion: These techniques are chosen to refine the output of the combined RSI and MFI values, ensuring the indicator remains responsive yet stable, providing clearer and more actionable signals.
Inverse Fisher Transform (IFT):
Developed by John Ehlers, the IFT transforms oscillator outputs to enhance the clarity of extreme values. This is particularly useful in this fusion indicator to make critical turning points more distinct and actionable.
Mathematical Calculations for the Fusion MFI RSI Indicator
RSI (Relative Strength Index)
The RSI is calculated using the following steps:
Average Gain and Average Loss: First, determine the average gain and average loss over the specified period (typically 14 days). This is done by summing all the gains and losses over the period and then dividing each by the period.
Average Gain = (Sum of Gains over the past 14 periods) / 14
Average Loss = (Sum of Losses over the past 14 periods) / 14
Relative Strength (RS): This is the ratio of average gain to average loss.
RS = Average Gain / Average Loss
RSI: Finally, the RSI is calculated using the RS value:
RSI = 100 - (100 / (1 + RS))
MFI (Money Flow Index)
The MFI is calculated using several steps that incorporate both price and volume:
Typical Price: Calculate the typical price for each period.
Typical Price = (High + Low + Close) / 3
Raw Money Flow: Multiply the typical price by the volume for the period.
Raw Money Flow = Typical Price * Volume
Positive and Negative Money Flow: Compare the typical price of the current period to the previous period to determine if the money flow is positive or negative.
If today's Typical Price > Yesterday's Typical Price, then Positive Money Flow = Raw Money Flow; Negative Money Flow = 0
If today's Typical Price < Yesterday's Typical Price, then Negative Money Flow = Raw Money Flow; Positive Money Flow = 0
Money Flow Ratio: Calculate the ratio of the sum of Positive Money Flows to the sum of Negative Money Flows over the past 14 periods.
Money Flow Ratio = (Sum of Positive Money Flows over 14 periods) / (Sum of Negative Money Flows over 14 periods)
MFI: Finally, calculate the MFI using the Money Flow Ratio.
MFI = 100 - (100 / (1 + Money Flow Ratio))
Fusion of RSI and MFI
The final Fusion MFI RSI value could be calculated by averaging the IFT-transformed values of RSI and MFI, providing a single oscillator value that reflects both momentum and volume-weighted price action:
Fusion MFI RSI = (MFI weight * MFI) + (RSI weight * RSI)
Suggested Settings and Trading Rules
Original Usage
RSI: Wilder suggested buying when the RSI moves above 30 from below (enter long) and selling when the RSI moves below 70 from above (enter short). He recommended exiting long positions when the RSI reaches 70 or higher and exiting short positions when the RSI falls below 30.
MFI: Quong and Soudack recommended buying when the MFI is below 20 and starts rising (enter long), and selling when it is above 80 and starts declining (enter short). They suggested exiting long positions when the MFI reaches 80 or higher and exiting short positions when the MFI falls below 20.
Fusion Application
Settings: Use a 14-day period for this indicator's calculations to maintain consistency with the original settings suggested by the inventors.
Trading Rules:
Enter Long Signal: Consider entering a long position when both RSI and MFI are below their respective oversold levels and begin to rise. This indicates strong buying pressure supported by both price momentum and volume.
Exit Long Signal: Exit the long position when either RSI or MFI reaches its respective overbought threshold, suggesting a potential reversal or decrease in buying pressure.
Enter Short Signal: Consider entering a short position when both indicators are above their respective overbought levels and begin to decline, suggesting that selling pressure is mounting.
Exit Short Signal: Exit the short position when either RSI or MFI falls below its respective oversold threshold, indicating diminishing selling pressure and a potential upward reversal.
How to Use the Indicator
Select Source and Timeframe: Choose the data source and the timeframe for analysis.
Configure Fusion Settings: Adjust the weights for RSI and MFI.
Choose Smoothing Technique: Select and configure the desired smoothing method to suit the market conditions and personal preference.
Enable Fisherization: Optionally apply the Inverse Fisher Transform to enhance signal clarity.
Customize Visualization: Set up gradient coloring, background plots, and bands according to your preferences.
Interpret the Indicator: Use the Fusion value and visual cues to identify market conditions and potential trading opportunities.
Conclusion
The Fusion MFI RSI Indicator integrates classical and modern technical analysis concepts to provide a comprehensive tool for market analysis. By combining RSI and MFI with advanced smoothing techniques and the Inverse Fisher Transform, this indicator offers enhanced insights, aiding traders in making more informed and timely trading decisions. Customize the settings to align with your trading strategy and leverage this powerful tool to navigate financial markets effectively.
Best regards,
simwai
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Credits to:
@loxx – T3
@everget – JMA
@cheatcountry – Hann Window
RSI, STOCHASTIC RSI AND MFI COMBOCombining the Relative Strength Index (RSI), Stochastic RSI (StochRSI), and Money Flow Index (MFI) can provide traders with a comprehensive approach to analyze market momentum, overbought/oversold conditions, and money flow. Each indicator offers unique insights, and their combination can help confirm trading signals and filter out false signals. Let's delve into each indicator and then discuss how they can be used together:
Relative Strength Index (RSI) 14: DA BLUE LINE
The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify overbought (>70) and oversold (<30) conditions. A reading above 70 may indicate that an asset is overbought and could be due for a pullback, while a reading below 30 may suggest that an asset is oversold and could be due for a bounce.
Stochastic RSI (StochRSI) 14: DA RED LINE
The StochRSI is an oscillator that combines the features of both the Stochastic Oscillator and RSI. It measures the relative position of the RSI within its range over a specific period (e.g., 14 periods). Like the RSI, the StochRSI oscillates between 0 and 100 and is used to identify overbought and oversold conditions. Typically:
A StochRSI above 0.8 may suggest overbought conditions.
A StochRSI below 0.2 may indicate oversold conditions.
Money Flow Index (MFI) 14: DA PURPLE LINE
The MFI is a momentum oscillator that measures the inflow and outflow of money into an asset over a specific period (e.g., 14 periods). It oscillates between 0 and 100 and is used to identify overbought and oversold conditions based on both price and volume. Generally:
An MFI above 80 may indicate overbought conditions.
An MFI below 20 may suggest oversold conditions.
Combining RSI, StochRSI, and MFI:
When combining RSI, StochRSI, and MFI, traders can use the following approach to analyze the market:
Identify Overbought/Oversold Conditions:
Look for confluence between RSI, StochRSI, and MFI readings to identify overbought and oversold conditions.
For example, if RSI > 70, StochRSI > 0.8, and MFI > 80, it may suggest a strong overbought condition, potentially indicating a reversal or pullback.
Confirm Trend Strength:
Use the RSI, StochRSI, and MFI to confirm the strength of a trend.
A rising trend with RSI, StochRSI, and MFI above 50 may suggest strong bullish momentum, while a falling trend with readings below 50 may indicate strong bearish momentum.
Divergence Analysis:
Look for divergences between price and RSI, StochRSI, or MFI to identify potential trend reversals.
For example, if the price makes a higher high, but RSI, StochRSI, or MFI makes a lower high (bearish divergence), it may suggest weakening bullish momentum and potential downside.
Combining RSI, StochRSI, and MFI can offer traders a more holistic view of market momentum, overbought/oversold conditions, and money flow. Backtest it let me know your success.
MFI PRO### MFI Indicator Guide
This guide provides a detailed explanation of the "MFI KriptoFun" indicator, which is designed for use on the TradingView platform. This custom script helps traders visualize significant changes in volume and price range through the use of graphical shapes plotted on the trading chart.
#### Indicator Description:
The "MFI KriptoFun" indicator plots different shapes (circles and triangles) on the chart to signify specific trading signals based on volume and price range dynamics. Each shape and color represents a unique market condition, aiding traders in making informed decisions.
#### Shapes and Colors:
1. Gray Circle: Indicates that the current price range is greater than the previous period's, but the volume has decreased and the percentage decrease in volume is more than 10% compared to the previous period.
2. Blue Circle: Plotted when there is an increase in volume by at least 10% compared to the previous period, while the price range has decreased.
3. Green Circle: Appears when both volume and price range have increased compared to the previous period.
4. Red Circle: Shows a decrease in both volume and price range compared to the previous period.
5. Blue Triangle: This shape is used to denote an increase in both volume and price range, with the closing and opening prices of the current period falling within the same third of the price range (lower, middle, or upper). Additionally, there must be a significant volume difference of at least 10%.
#### How to Use:
- Installation: To use this indicator, simply add it to your TradingView chart by copying the Pine Script code into the Pine Editor and adding it to your chart.
- Interpretation:
- Gray Circle: Caution may be warranted as decreasing volume with increasing price range could indicate weakening momentum.
- Blue Circle: Potential bullish signal if accompanied by other positive indicators.
- Green Circle: Strong bullish signal suggesting increasing buyer interest.
- Red Circle: Bearish signal indicating potential downward movement.
- Blue Triangle: Strong bullish signal, particularly if confirmed by additional analysis.
#### Settings:
The indicator does not have configurable settings through input options; however, users can modify the source code to adjust thresholds or conditions as per their trading strategy.
#### Conclusion:
The "MFI KriptoFun" indicator provides a visual representation of significant market movements, helping traders identify potential buy or sell opportunities based on volume and price action. As with all trading tools, it is recommended to use this indicator in conjunction with other analyses to validate trading signals.
Money Flow DashboardThe Money Flow Dashboard is my take on trying to replicate the great and mighty Market Cipher's Money Flow and pack it into a comprehensive dashboard format with access to various timeframes.
If Money Flow is king 👑, then follow the Money 💸
How to Use Money Flow Dashboard:
1. Timeframe Selection: Choose the relevant timeframes based on your trading style and preferences. Enable or disable timeframes in the settings to focus on the most relevant ones for your strategy.
2. Dashboard Interpretation: The Money Flow Dashboard displays green (🟢) and red (🔴) symbols to indicate when the Money Flow is in green or in red zone. You can also leverage the Money Flow values on the dashboard to better interpret sentiment and its changes.
3. Dashboard Placement: To maximize effectiveness, consider placing the Money Flow Dashboard alongside your Market Cipher indicator, allowing for seamless analysis of market dynamics on multiple timeframes at the same time.
4. Confirmation and Strategy: Consider Money Flow Dashboard signals as confirmation for your trading strategy. For instance, in an uptrend, look for long opportunities when the dashboard displays consistent green symbols. Conversely, in a downtrend, focus on short opportunities when red symbols dominate.
5. Risk Management: As with any indicator, use Money Flow Dashboard in conjunction with proper risk management techniques. Avoid trading solely based on indicator signals; instead, integrate them into a comprehensive trading plan.
Money Flow Index Divergences [UAlgo]🔶 Description:
This script aims providing traders with comprehensive insights into market dynamics. The indicator offers a multi-faceted approach to technical analysis, encompassing various features to enhance trading decision-making:
🔶Key Features:
Money Flow Index Oscillator Settings: Users can customize the length of the MFI oscillator and the confluence bar length to suit their trading preferences.
Gradient Color Visualization: The indicator utilizes gradient colors to visually represent the MFI oscillator, with colors shifting based on MFI values for enhanced clarity.
Confluence Area Calculation: A confluence area is calculated based on the specified length, providing additional context for MFI movements (Aims to provide longer-term information).
Divergence Detection: The script identifies bullish and bearish divergences by comparing price action with MFI oscillator movements, aiding traders in spotting potential trend reversals.
Customizable Sensitivity: Traders can adjust the sensitivity settings for divergence detection according to their trading strategies.
🔶Calculations:
MFI Calculation:
The script starts by calculating the Money Flow Index (MFI) using the ta.mfi() function, which takes the typical price (hlc3) and a length parameter (default set to 14). The MFI is normalized to a range between 0 and 1 for color gradient calculations.
Another MFI is calculated with a longer length (lengthConfluence, default set to 50) for confluence analysis. Similar to the MFI calculation, the highest and lowest MFI values within the confluence length are determined. The MFI values within the confluence length are normalized. The normalized MFI values are used to calculate the gradient color for the confluence area.
Gradient Color Calculations:
Two sets of RGB color values (redRGB, greenRGB, blueRGB) and (redRGB2, greenRGB2, blueRGB2) are defined to create a gradient color scheme for the MFI plot. The MFI value is normalized between the highest and lowest MFI values within the specified length. The normalized MFI value is then used to calculate the red, green, and blue components of the gradient color.
Plotting Confluence Area:
Two horizontal lines (upperArea and lowerArea) are plotted to highlight the confluence area.
The area between these lines is filled with the gradient color representing MFI confluence.
Divergence Calculations:
Bullish and bearish divergences are identified based on specific conditions related to the MFI and price action.
Bullish divergence occurs when the MFI makes a lower low while price makes a higher low.
Bearish divergence occurs when the MFI makes a higher high while price makes a lower high.
The sensitivity (Pivot calculation length) of divergence detection can be adjusted.
Overall, this script provides a comprehensive analysis of the Money Flow Index, including plotting the MFI with a gradient color scheme, identifying confluence areas, and detecting bullish and bearish divergences to aid traders in making informed decisions.
🔶Disclaimer:
-This script is provided for informational and educational purposes only and should not be considered financial advice.
-Trading involves risk, and users should conduct their own research and analysis before making any investment decisions.
-The author of this script and UAlgo are not liable for any losses incurred as a result of using this indicator.
-Users are encouraged to exercise caution and practice risk management when trading in the financial markets.
RSI/MFI Selling Sentiment IndexPsychological Sales Index (Psychological Sales Index)
Fundamental Indicators of Market Sentiment: The Importance of MFI and RSI
The two fundamental indicators that best reflect market sentiment are Money Flow Index (MFI) and Relative Strength Index (RSI). MFI is an indicator of the flow of funds in a market by combining price and volume, which is used to determine whether a stock is over-bought or over-selling. RSI is an indicator of the overheating of the market by measuring the rise and fall of prices, which is applied to the analysis of the relative strength of stock prices. These two indicators allow a quantitative assessment of the market's buying and selling pressure, which provides important information to understand the psychological state of market participants.
Using timing and fundamental metrics
In order to grasp the effective timing of the sale, in-depth consideration was needed on how to use basic indicators. MFI and RSI represent the buying and selling pressures of the market, respectively, but there is a limit to reflecting the overall trend of the market alone. As a result, a study on how to capture more accurate selling points was conducted by comprehensively considering technical analysis along with psychological factors of the market.
The importance of ADX integration and weighting
The "Average Regional Index (ADX)" was missing in the early version. ADX is an indicator of the strength of a trend, and has experienced a problem of less accuracy in selling sentiment indicators, especially in the upward trend. To address this, we incorporated ADX and adopted a method of adjusting the weights of MFI and RSI according to the values of ADX. A high ADX value implies the existence of a strong trend, in which case it is appropriate to reduce the influence of MFI and RSI to give more importance to the strength of the trend. Conversely, a low ADX value increases the influence of MFI and RSI, putting more weight on the psychological elements of the market.
How to use and interpret
The user can adjust several parameters. Key inputs include 'Length', 'Overbought Threshold', 'DI Length', and 'ADX Smoothing'. These parameters are used to set the calculation period, overselling threshold, DI length, and ADX smoothing period of the indicator, respectively. The script calculates the psychological selling index based on MFI, RSI, and ADX. The calculated index is normalized to values between 0 and 100 and is displayed in the graph. Values above 'Overbought Threshold' indicate an overselling state, which can be interpreted as a potential selling signal. This index allows investors to comprehensively evaluate the psychological state of the market and the strength of trends, which can be used to make more accurate selling decisions.
Best scalping toolExplanation:
This script is a comprehensive indicator that combines three essential technical analysis tools: Money Flow Index (MFI), Relative Strength Index (RSI), and Bollinger Bands (Bollinger %B). It provides insights into market conditions related to cross points of mfi,rsi and B%B.
A buy condition is created when the last candle RSI and MFI are under the bollinger bands, and then in the actual candle the RSI cross up the bollinger low band.
A sell condition is created when the last candle RSI and MFI are above the bollinger bands, and then in the actual candle the RSI cross down the bollinger high band.
Key Components:
MFI (Money Flow Index):
Utilizes the MFI indicator based on a specified length.
Overbought and oversold levels (80 and 20, respectively).
RSI (Relative Strength Index): (Adapted to the mfi chart)
Allows selection of different moving average types (SMA, EMA, etc.) for the RSI calculation.
RSI along with upper and lower bands (70 and 30).
Bollinger Bands:
Provides upper and lower Bollinger Bands based on the RSI's standard deviation.
Visualization Options:
Allows the user to choose between show the buy (green arrow) and the sell (red arrow) .
How It Works:
The indicator amalgamates these three powerful technical indicators to help traders identify potential entry or exit points. The green arrow its a buy signal and the red arrow is a sell signal.
By offering configurable settings and clear visual cues, this indicator assists traders in recognizing critical market conditions and potential trading opportunities.
Disclaimer: This indicator should be used as a tool in a broader trading strategy and not solely for making trading decisions. It's recommended to combine it with other technical or fundamental analysis for comprehensive trading decisions.
RSI/MFI Ultimate MAHello!
Today, I want to discuss a special indicator that I've developed. centers around a weighted moving average based on RSI/MFI.
1. Development Purpose
The primary goal of this indicator is to provide clearer insights into bullish and bearish signals in the market. It applies a weight to the RSI (Relative Strength Index) and MFI (Money Flow Index) values to offer more sensitive and predictive trend signals than traditional moving averages.
2. Usefulness
This indicator aids traders in identifying market volatility and bullish or bearish trends more easily. It is particularly responsive to market volatility, providing more accurate information for trading decisions.
3. Real-World Usage Examples
When applied to actual market data, this indicator clearly delineates bullish or bearish sections with its weighted moving average line. For instance, an upward trending moving average line indicates a bullish signal, while a downward trend suggests bearish momentum.
4. Meaning of Parameter Values
option: Allows choosing between RSI or MFI, each analyzing different market signals.
osc_len: Adjusting the oscillator length alters sensitivity.
ma_len: Setting the moving average length helps to modulate responsiveness to market fluctuations.
weight: Changing the weight fine-tunes the sensitivity of the moving average line.
By adjusting these parameters, the indicator can be customized to suit various market conditions.
Wishing you a successful trading day. Thank you!
RMI Trend SniperThe "RMI Trend Sniper" is a powerful trend-following indicator designed to help traders identify potential buy and sell signals in the market.
It combines elements of the Relative Strength Index (RSI) and the Money Flow Index (MFI) to provide a comprehensive view of market momentum and strength.
🔷 Key Features:
🔹 Customizable Settings : Tailor the indicator to your trading preferences with customizable input parameters, including RSI and MFI lengths, threshold levels, and visual settings.
🔹 Momentum Signals : The indicator generates clear bullish and bearish momentum signals, allowing you to spot potential trend reversals or continuations.
🔹 The positive condition considers the previous RMI value, current RMI value, and positive change in the 5-period exponential moving average (EMA) of the closing price.
🔹 The negative condition looks at the current RMI value and negative change in the 5-period EMA.
🔹 Visual Bands : Visualize market volatility with dynamically plotted bands around the Range Weighted Moving Average (RWMA), providing insights into potential price fluctuations.
🔹 Candlestick Coloring : Easily identify bullish and bearish conditions with color-coded candlesticks, helping you make informed trading decisions.
The "RMI Trend Sniper" is a versatile tool suitable for traders of all experience levels. Whether you are a novice or an experienced trader, this indicator can help you enhance your technical analysis and improve your trading strategies.
Machine Learning: MFI Heat Map [YinYangAlgorithms]Overview:
MFI Heat Maps are a visually appealing way to display the values of 29 different MFIs at the same time while being able to make sense of it. Each plot within the Indicator represents a different MFI value. The higher you get up, the longer the length that was used for this MFI. This Indicator also features the use of Machine Learning to help balance the MFI levels. It doesn’t solely rely upon Machine Learning but instead incorporates a growing length MFI averaged with the Machine Learning MFI at any given index.
For instance, say we are calculating the 10th plot from the bottom, the MFI would be an average of:
MFI(source, 11)
Machine Learning MFI at Index of 10
We do it this way as they both help smooth each other out without relying solely on just one calculation method.
Due to plot limitations, you are capped at 28 Plot Amounts within this indicator, but that is still quite a bit of information you can glean from a Heat Map.
The Machine Learning used in this indicator is of the K-Nearest Neighbor (KNN). It uses a Fast and Slow MFI calculation then sorts through them over Machine Learning Length and calculates the differences between them. It then slices off KNN length to create our Max/Min Distances allotted. It adds the average between Fast and Slow MFIs to a Viable Distances array if their distances are within the KNN Min/Max distance. It then averages all distances in the Viable Distances array and returns the result.
The result of the KNN Function is saved to another ML Data array whose length is that of Plot Amount (Heat Map Size). This way each Index of the ML Data array can be indexed according to the Heat Map Size.
The Average of the ML Data array is the MFI line (white) that you’ll see plotted on the Indicator. There is also the SMA of the MFI Average (orange) which is likewise plotted. These plots allow you to visualize where the ML MFI is sitting and can potentially be useful for seeing when the MFI Average and SMA cross over and under each other.
We’ve heard many people talk highly of RSI, but sadly not too many even refer to MFI. MFI oftentimes may be overlooked, especially with new traders who may not even know what it is. Essentially MFI is an RSI but it also incorporates Volume into its calculations, which in our opinion leads to a more accurate reading; afterall, what is price movement without Volume.
Tutorial:
You may be thinking, this Indicator looks appealing to the eye, but how do I benefit from it trading wise?
Before we get into our visual examples, let's talk briefly about what makes Heat Maps in general a useful tool for trading. Heat Maps give us the ability to visualize and understand lots of data while removing the clutter. We can understand the data of 29 different MFIs without having to look at and decipher 29 different MFI plots. When you overlay too many MFI lines on top of each other, they can be very difficult to read and oftentimes end up actually hindering your Technical Analysis. For this reason, we have a simple solution to this problem; Heat Maps. This MFI Heat Map allows you to easily know (in a relative %) what the MFI level is for varying lengths. For Instance, the First (bottom) plot indexes an MFI of (K(0) (loop of Plot Amount) + Smoothing Length (default 1)) = 1. Since this is indexing (usually) a very low length, it will change much quicker. Whereas the Last (top) plot indexes an MFI of (K(27) (loop of Plot Amount) + Smoothing Length (default 1)) = 28. This is indexing a much higher length of MFI which results in the MFI the higher you go up in the Heat Map to move much slower.
Heat Maps give us the ability to see changes happening over multiple MFIs at the same time, which can be very useful for seeing shifts in MFI / Momentum. Remember, MFI incorporates Volume, so even if the price goes up a lot, if there was low volume, the MFI won’t move as much as an RSI would. However, likewise, if there is high volume but low price movement, the MFI will move slightly more than the RSI.
Heat Maps change color based on their MFI level. If the MFI is >= 90 it is HOT (red), if the MFI <= 9 it is COLD (teal, think of ICE). Green represents an MFI of 50-59 and Dark Blue represents an MFI of 40-49. Green and Dark blue are the most common colors as all the others are more ‘Extreme’ MFI levels.
Okay, time to get to the Examples :
Since there is so much going on in Heat Maps, we’ve decided to focus this tutorial to this specific area and talk about individual locations before talking about it as a whole.
If you refer to the example above where there are 2 white circles; these white circles are highlighting a key location you’ll be wanting to identify within your Heat Maps, many things are happening here:
The MFI crossed over the SMA (bullish).
The Heat Map started changing from mid/dark Blue (30-50 MFI) to Green (50-59 MFI) around the midline (the 50% dashed like).
The Lower levels of the Heat Map are turning Yellow/Orange/Red (60-100 MFI).
The Upper Levels of the Heat Map are still Light Blue - Green (10-50 MFI).
The 4 Key points above, all point towards potential Bullish Momentum changes. You’re likely wondering, but why? Let's discuss about each one in more specific detail:
1. The MFI crossed over the SMA (bullish): What this tells us is that the current MFI Average is now greater than its average over the last (default) 16 bars. This means there's been a large amount of Money Flow (Price and Volume) recently (subjectively based on the last (default) 16 average). This is one of the leading Bullish / Bearish signals you will see within this Indicator. You can enable Signals within the Settings and/or even add Alerts for when these crossings occur.
2. The Heat Map started changing from mid/dark Blue (30-50 MFI) to Green (50-59 MFI) around the midline (the 50% dashed like): This shows us that the index’s in the mid (if using all 28 heat map plots it would be at 14) has already received some of this momentum change. If you look at the second white circle (right), you’ll also notice the higher MFI plot indexes are also green. This is because since their length is long they still have some momentum and strength from the first white circle (left). Just because the first white circle failed in its bullish push, doesn’t mean it didn’t achieve momentum that would later on help to push the price up.
3. The Lower levels of the Heat Map are turning Yellow/Orange/Red (60-100 MFI): It occurred somewhat in the left white circle, but mainly in the right white circle. This shows us the MFI is very high on the lower lengths, this may lead to the current, middle and higher length MFIs following suit soon. Remember it has to work its way up, the higher levels can’t go red unless the lower levels go red first and the higher levels can also lag quite a bit behind and take awhile to catch up, this is normal, expected and meant to happen. Vice versa is also true with getting higher levels to go cold (light teal (think of ICE)).
4. The Upper Levels of the Heat Map are still Light Blue - Green (10-50 MFI): You might think at first that this is a bad thing, but it's not! Remember you want to be Fearful when others are Greedy and Greedy when others are Fearful! You don’t want to buy when the higher levels have a high MFI, you want to buy when you see the momentum pushing up in the lower MFI levels (getting yellow/orange/red in the low levels) while it is still Cold in the higher levels (BLUE OR GREEN, nothing higher than green as it is already slightly too high). There will be many times that it is Yellow or possibly Orange in the high levels and the bullish push still happens, but this is much more risky! The key to trading is to minimize risks while maximizing potential.
Hopefully now you’re getting an idea of how to spot potential bullish momentum changes, but what about bearish momentum changes? Technically they are the exact opposite, so we don’t need to go into as much detail, but lets still take a look at a few examples:
In the example above we marked the 3 times where it was displaying overly bullish characteristics. We marked the bullish momentum occurring with arrows. If you look closely at the start of the arrow to where it finishes, you’ll notice how the heat (HOT)(RED) works its way up from the lower levels to the higher levels. We then see the MFI to SMA cross under. In all 3 of these examples the heat made it all the way to the top of the chart. These are all very bearish signals that represent a bearish momentum movement that may occur soon.
Also, please note, the level the MFI is at DOES matter! That line isn’t there simply for you to see when there are crosses over and under. The MFI is considered to be Overbought when it is greater than 70 (the upper white dashed line, it is just formatted to be on a different scale cause there are 28 plots, but it represents 70). The MFI is considered to be Oversold when it is less than 30 (the lower white dashed line).
If we look to the left a little here where a big drop in price occurred shortly after our MFI and SMA crossed, would we have been able to identify it using the Heat Maps? Likely, No. There was some color change in the lower levels a few bars prior that went yellow/orange/red but before this cross happened they all went back to Dark Blue. In the middle section when the cross happened it was only Green and Yellow and in the upper section we are Blue. This would be a very risky trade to go on as the only real Bearish Indication was the MFI to SMA cross under. Remember, you want to reduce risk, you don’t want to simply trade on everytime the MFI and SMA cross each other or you’ll be getting yourself into many risky trades based on false signals.
Based on what you’ve learned above, can you see the signs that are indicating where this white circle may have potential for a bullish momentum change?
Now that we are more zoomed in, you may also be noticing there are colors to the price bars. This can be disabled in the settings, but just so you know what they mean, let’s zoom in a little more and talk about it.
We’ve condensed the Indicator a bit so you can see the bars better here. The colors that are displayed on these bars are the Heat Map value for your MFI (the white line in the Indicator). This way you can better see when the Price is Hot and Cold. As you may see while looking, the colors generally go from cold to hot when bullish momentum is happening and hot to cold when bearish momentum is happening. We don’t recommend solely looking at the bars as indicators to MFI momentum change, as seeing the Heat Map will give you much more data; however it can be nice to see the Heat Map projected on the bars rather than trying to eyeball it yourself or hover over each bar specifically to see their levels.
We will conclude our Tutorial here. Hopefully this has given you some insight to how useful Heat Maps can be and why it works well with a Machine Learning (KNN) Model applied to the MFI.
PLEASE NOTE: You can adjust the line width for the Heat Map within the settings. If you condense the Indicator a lot or have a small screen, likely use a length of 1-2. If you have it stretched out or a large screen, a length of 2-3 will work nice. You just don’t want to have the lines overlapping or it defeats the purpose of a Heat Map. Also, the bigger the linewidth, generally you’ll want to increase the Transparency within the Settings also as it can get quite bright and hurt your eyes over time.
Settings:
MFI:
Show MFI and SMA Crossing Signals: MFI and SMA Crossing is one of the leading Bullish and Bearish Signals in this Indicator. You can also add alerts for these signals.
Plot Amount: How many plots are used in this Heat Map. (2 - 28).
Source: The Source to use in all MFI calculations.
Smooth Initial MFI Length: How much to smooth the Fast and Slow MFI calculation by. 1 = No smoothing.
MFI SMA Length: What length we smooth the MFI Average over to get our MFI SMA.
Machine Learning:
Average MFI data by adding a lookback to the Source: While populating our Heat Map with the MFI's, should use use the Source each MFI Length increase or should we also lookback a Source each MFI Length Increase.
KNN Distance Requirement: To be a valid KNN, it needs to abide by a Distance calculation. Generally only Max is used, but you can change it if it suits your trading style better.
Machine Learning Length: How much ML data should we store? The longer the length generally the smoother the result; which may not be as accurate for something like a Heat Map, so keeping this relatively low may lead to more accurate results.
KNN Length: How many KNN are used in the slice to calculate max/min distance allowed.
Fast Length: Fast MFI length used in KNN to calculate distances by comparing its distance with the Slow MFI Length.
Slow Length: Slow MFI length used in KNN to calculate distances by comparing its distance with the Fast MFI Length.
Smoothing Length: When populating our Heat Map, at what length do we start our MFI calculations with (A Higher value with result in a slower and more smoothed MFI / Heat Map).
Colors:
Change Bar Color: Change bar colors to MFI Avg Color.
Heat Map Transparency: If there isn't any transparency it can be a little hard on the eyes. The Greater the Line Width, generally the more transparency you'll want for your eyes.
Line Width: Set how wide the Heat Map lines are
MFI 90-100 Color: Color when the MFI is between these levels.
MFI 80-89 Color: Color when the MFI is between these levels.
MFI 70-79 Color: Color when the MFI is between these levels.
MFI 60-69 Color: Color when the MFI is between these levels.
MFI 50-59 Color: Color when the MFI is between these levels.
MFI 40-49 Color: Color when the MFI is between these levels.
MFI 30-39 Color: Color when the MFI is between these levels.
MFI 20-29 Color: Color when the MFI is between these levels.
MFI 10-19 Color: Color when the MFI is between these levels.
MFI 0-100 Color: Color when the MFI is between these levels.
If you have any questions, comments, ideas or concerns please don't hesitate to contact us.
HAPPY TRADING!
GKD-E MFI [Loxx]The Giga Kaleidoscope GKD-E MFI is an exit module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-E MFI
The Money Flow Index (MFI) is a technical analysis indicator that tracks the flow of money into and out of a security over a specified period of time. It is a momentum oscillator that ranges between 0 to 100 and is used to identify overbought or oversold conditions in a traded security. The MFI considers both price changes and trading volume, making it similar to the Relative Strength Index (RSI) but with the added dimension of volume. Typically, readings above 80 suggest that an asset may be overbought, indicating potential for a price decline, while readings below 20 suggest it may be oversold, indicating potential for a price increase.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
GKD-C Alpha Trend [Loxx]The Giga Kaleidoscope GKD-C Alpha Trend is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Alpha Trend
Alpha Trend first determines the average true range (ATR) and computes up and down trends based on the ATR. It then evaluates conditions based on relative strength index (RSI) or money flow index (MFI) to define a value named 'Alpha'. The algorithm then compares the current 'Alpha' value to its previous values to determine potential buy or sell signals. Finally, it counts the number of bars (or periods) since the last buy or sell signal was triggered and uses this information generate signals.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
Heuristic Bg Color Hodl/swing/scalp [Ox_kali]The "Heuristic BG Color Hodl/Swing/Scalp " is a multi-faceted technical indicator designed to aid traders across varying investment strategies such as long-term holding (Hodl), swing trading, and scalping. Optimized to run on a range of timeframes from seconds to months. Built upon an intricate layering of moving averages, market oscillators. The indicator displays a color range from light green to deep red, based on market conditions. This tool aims to provide an analytical edge by visualizing market conditions in a straightforward manner. Incorporating both trend-following and oscillatory components both trend-following and oscillating components to furnish a more rounded view of the market. Note that this indicator is best used in conjunction with other forms of market analysis and should not be solely relied upon for making trading decisions.
Key Features:
Multiple Moving Averages: Utilizes Fast and Slow MAs to identify trend momentum.
Modified RSI and MFI: Incorporates RSI and MFI to gauge overbought and oversold conditions.
Stoch RSI Indicator: Used to provide additional confirmation for trading signals.
Dynamic Background Color: Highlights potential Buy and Sell zones using background color for easier visual interpretation.
Alert Conditions: Trigger customizable alerts for Buy and Sell zones.
Functionality Analysis:
The script allows you to select the type and period for Fast and Slow moving averages. It uses these MAs to calculate an underlying trend momentum, further refined by a user-defined MA.
The RSI and MFI are used to identify overbought and oversold conditions calculated and smoothed over a user-defined period. The Stoch RSI gives an additional layer of confirmation, allowing traders to identify more reliable trading signals.
The script's main visual feature is the background color, which changes based on potential Buy and Sell zones. It provides two layers for each, enabling traders to understand the strength of the signal. Notably, the indicator is particularly optimized for identifying Buy Zones and is more functional for detecting Sell Zones when applied to larger timeframes.
Trading Application:
The "Heuristic BG Color Hodl/Swing/Scalp" indicator can adapt to various trading styles, from long-term investment to short-term trading. When the background turns green, it signifies a potential Buy Zone, ideal for entering long positions. Conversely, a red background indicates a Sell Zone, suggesting it may be a good time to exit positions or go short.
Traders can also utilize the alert conditions set within the script to receive real-time notifications, making it easier to capitalize on potential market opportunities.
Please note that the "Heuristic BG Color Hodl/Swing/Scalp" by Ox_kali is intended for educational purposes only and does not constitute financial advice. This indicator is not a guarantee of future market performance and should be used alongside proper risk management strategies. Ensure you fully understand the methodology and limitations of this indicator before making any trading decisions. Past performance is not indicative of future results.
Gradient Money Flow Divergence DetectorThe "Gradient Money Flow Divergence Detector" indicator has several use cases for traders. Let's explore the main use cases:
1. Money Flow Analysis : The primary purpose of this indicator is to analyze money flow in a particular asset. The Money Flow Index (MFI) is a momentum indicator that uses price and volume data to assess the buying and selling pressure in a market. Traders can use the MFI to identify overbought and oversold conditions, potential trend reversals, and divergences between the MFI and price movement.
2. Divergence Detection : The indicator incorporates a divergence detection mechanism for multiple timeframes (micro, sub-mid, mid, and macro). Divergence occurs when the price movement and an indicator (MFI in this case) move in opposite directions, signaling a potential shift in the price trend. Traders can use divergences to anticipate trend reversals or trend continuation.
3. Multiple Lookback Analysis : The indicator allows traders to assess divergences and money flow trends across various time horizons by providing divergence detection for different lengths. This can help traders identify confluence areas where divergences align on multiple timeframes, strengthening the potential signal.
4. Overbought and Oversold Conditions : The indicator plots horizontal lines at MFI levels of 20, 50, and 80. These levels can be used to identify overbought (MFI above 80) and oversold (MFI below 20) conditions. Traders may look for potential reversal signals when the MFI reaches extreme levels.
5. Confirmation of Price Trends : The indicator's color gradient visually represents the MFI value, which can help traders confirm the strength of a prevailing price trend. For example, an uptrend with a consistently high MFI might suggest strong buying pressure, reinforcing the bullish bias.
6. Fine-Tuning Divergence Signals : Traders can adjust the parameters of divergence detection (e.g., pivot points, rangeUpper, rangeLower) to fine-tune the sensitivity of the divergence signals. This allows for greater customization based on individual trading preferences.
7. Combining with Other Indicators : The indicator can be used in combination with other technical indicators or price action analysis to strengthen trading decisions. For example, traders may look for divergences in conjunction with support and resistance levels or chart patterns to increase the probability of successful trades.
8. Trend Reversal Confirmation : When a divergence is detected, it may indicate a potential trend reversal. Traders can use other confirmation signals (e.g., candlestick patterns, trendline breaks) to validate the reversal before making trading decisions.
Remember that no single indicator should be used in isolation, and it's essential to use the indicator in combination with other confirmations such as support and resistance, and analysis methods for more robust trading strategies. Additionally, thorough backtesting and practice in a demo environment are recommended before using the indicator in live trading.
Discrete Fourier Transformed Money Flow IndexThe Discrete Fourier Transform Money Flow Index indicator integrates the Money Flow Index (MFI) with Discrete Fourier Transform (credit to author wbburgin - May 26 2023 ) smoothing to offer a refined and smoothed depiction of the MFI's underlying trend. The MFI is calculated using the formula: MFI = 100 - (100 / (1 + MR)), where a high MFI value indicates robust buying pressure (signaling an overbought condition), and a low MFI value indicates substantial selling pressure (signaling an oversold condition).
Why is the DFT and MFI combined?
The aim of this combination between DFT and MFI is to effectively filter out short-term fluctuations and noise, enabling a clearer assessment of the overall trend. This smoothing process enhances the reliability of the MFI by emphasizing dominant and sustained buying or selling pressures. This script executes a full DFT but only uses filtering from one frequency component. The choice to focus on the magnitude at index 0 is significant as it captures the dominant or fundamental frequency in the data. By analyzing this primary cyclic behavior, we can identify recurring patterns and potential turning points more easily. This streamlined approach simplifies interpretation and enhances efficiency by reducing complexity associated with multiple frequency components. Overall, focusing on the dominant frequency and applying it to the MFI provides a concise and actionable assessment of the underlying data.
Note: The FMFI indicator provides both smoothed and non-smoothed versions of the MFI, with the option to toggle the original non-smoothed MFI on or off in the settings.
Application
FMFI functions as a trend-following indicator. Bullish trends are denoted by the color white, while bearish trends are represented by the color purple. Circles plotted on the FMFI indicate regular bull and bear signals. Additionally, red arrows indicate a strong negative trend, while green arrows indicate a strong positive trend. These arrows are calculated based on the presence of regular bull and bear signals within overbought and oversold zones. To enhance its effectiveness, it is recommended to combine this indicator with other complementary technical analysis tools and integrate it into a comprehensive trading strategy. Traders are encouraged to explore a wide range of settings and timeframes to align the indicator with their unique trading preferences and adapt it to the current market conditions. By doing so, traders can optimize the indicator's performance and increase their potential for successful trading outcomes.
Utility
Traders and investors can employ this indicator to enhance their trend-following strategies. The white-colored components of the FMFI can help identify potential buying zones, while the purple-colored components can assist in identifying potential selling points. The red and green arrows can be used to pinpoint moments of strong bull or bear momentum, allowing traders to position themselves advantageously in their trading activities. Please note that future performance of any trading strategy is fundamentally unknowable, and past results do not guarantee future performance.
adaptive_mfi
█ Description
Money flow an indexed value-based price and volume for the specified input length (lookback period). In summary, a momentum indicator that attempt to measure the flow of money (identify buying/selling pressure) through the asset within a specified period of time. MFI will oscillate between 0 to 100, oftentimes comprehend the analysis with oversold (20) or overbought (80) level, and a divergence that spotted to signaling a further change in trend/direction. As similar to many other indicators that use length (commonly a fixed value) as an input parameter, can be optimized by applied an adaptive filter (Ehlers), to solve the measuring cycle period. In this indicator, the adaptive measure of dominant cycle as an input parameter for the lookback period/n, will be applied to the money flow index.
█ Money Flow Index
mfi = 100 - (100/(1 + money_flow_ratio))
where:
n = int(dominant_cycle)
money_flow_ratio = n positive raw_money_flow / n negative raw_money_flow
raw_money_flow = typical_price * volume
typical_price = hlc3
█ Feature
The indicator will have a specified default parameter of: hp_period = 48; source = ohlc4
Horizontal line indicates positive/negative money flow
MFI Color Scheme: Solid; Normalized
Ultimate Volume Custom ScreenerThis indicator will allow you to make your custom volume TradingView screener without coding. Add it to the chart, and select up to 40 symbols and up to five indicators. The screener will do the rest for you. The indicator will form a lovely table with all values and highlighted signals. It allows also to filter symbols based on the values of indicators and sends results as an alert.
The screener is highly customizable, and you can choose its position on the chart, sorting, order of the columns, colors for the tables, and all signals separately. You can easily change parameters for all supported indicators.
Supported indicators
Currently, there are 15 different custom indicators available. Current list of indicators:
Accumulation/Distribution (Acm/Dst)
Chaikin Money Flow (CMF)
Ease of Movement (EOM)
Klinger Oscillator (KO)
Money Flow Index (MFI)
Negative Volume Index (NVI)
On Balance Volume (OBV)
Positive Volume Index (PVI)
Price
Price-Volume Trend (PVT)
Volume
Volume MA (VMA)
Volume Percentile (V-Prct)
Volume RSI (V-RSI)
Volume Weighted Average Price (VWAP)
We're already working on adding a few more supported indicators. If you have any ideas about the indicators you want to see in our screener, contact us, and we'll consider them.
Filters
You can combine up to 5 filters on all selected indicators.
This will split the screen table into two parts. The top one will contain symbols that satisfy all conditions:
Alerts
You can also create an alert and receive a filtered symbol at the end of every bar.
Disclaimer
Please remember that past performance may not be indicative of future results.
Due to various factors, including changing market conditions, the strategy may no longer perform as well as in historical backtesting.
This post and the script don’t provide any financial advice.
RSI-MFI Machine Learning [ Manhattan distance ]The RSI-MFI Machine Learning Indicator is a technical analysis tool that combines the Relative Strength Index (RSI) and Money Flow Index (MFI) indicators with the Manhattan distance metric.
It aims to provide insights into potential trade setups by leveraging machine learning principles and calculating distances between current and historical data points.
The indicator starts by calculating the RSI and MFI values based on the specified periods for each indicator.
The RSI measures the strength and speed of price movements, while the MFI evaluates the inflow and outflow of money in the market.
By combining these two indicators, the indicator captures both price momentum and money flow dynamics.
To apply machine learning principles , the indicator utilizes the Manhattan distance metric to quantify the similarity or dissimilarity between different data points.
The Manhattan distance is calculated by taking the absolute differences between corresponding RSI and MFI values of the current point and historical points.
Next, the indicator determines the nearest neighbors based on the calculated Manhattan distances.
The number of nearest neighbors is determined by the square root of the specified count of neighbors.
By identifying similar patterns and behaviors in the historical data, the indicator aims to uncover potential trade opportunities.
Trade signals are generated based on the calculated distances. The indicator compares each distance with the maximum distance encountered so far.
If a new maximum distance is found, it updates the value and considers the corresponding direction as a potential trade signal. The trade signals are stored in an array for further analysis.
Furthermore, the indicator considers the price action and a calculated regression line to differentiate between long and short trade signals.
Long trade signals are identified when the closing price is above the regression line, indicating a potentially bullish setup.
Short trade signals are identified when the closing price is below the regression line, indicating a potentially bearish setup.
The RSI-MFI Machine Learning Indicator visualizes the regression line on the price chart and labels the bars accordingly. It highlights the regression line with different colors based on the trade signals, making it easier for traders to identify potential entry or exit points.
Traders can use the RSI-MFI Machine Learning Indicator as a tool to analyze price movements, evaluate market conditions based on RSI and MFI, leverage machine learning concepts to find similar patterns, and make informed trading decisions.
D-BoT Alpha Volume SpikeHello traders, Let me explain the code and provide an example of how to trade using this indicator.
The code you provided is a Pine Script indicator that combines multiple technical indicators, such as Supertrend, ADX, RSI, and MFI, to generate buy and sell signals. Here's a breakdown of the code:
User Settings:
The user can adjust parameters like overbought_limit, oversold_limit, volume_multiplier, volume_ma_length, volume_spike_multiple, lookback_period, and use_extremities_confirmation according to their preference.
Calculate Supertrend:
The Supertrend indicator is calculated using three different ATR lengths (supertrend_atr_period1, supertrend_atr_period2, supertrend_atr_period3) and corresponding factors (supertrend_factor1, supertrend_factor2, supertrend_factor3).
The supertrend_value1, supertrend_value2, and supertrend_value3 represent the Supertrend values, while trend_direction1, trend_direction2, and trend_direction3 indicate the trend direction (negative for downtrend, positive for uptrend).
Candle calculations:
The high and low values are checked to identify bullish and bearish candles based on specific conditions.
Volume Spikes:
Volume spikes are detected by comparing the current volume with a median volume over a specified lookback period.
If the volume exceeds a certain multiple of the median volume and the DI+ value is greater than the DI- value, an "up" signal is generated. Similarly, if the DI- value is greater than the DI+ value, a "down" signal is generated.
Additional Filters (RSI and MFI):
Relative Strength Index (RSI) and Money Flow Index (MFI) are used as additional filters.
The RSI and MFI parameters can be adjusted according to the user's preference.
The signals generated by the volume spikes are filtered based on RSI and MFI conditions.
Plotting:
The indicator plots shapes (triangles) to represent buy and sell signals.
The Supertrend lines are plotted using different colors and transparency levels based on the distance from the current price.
The "bodyMiddle" plot is used for filling the area between the Supertrend lines.
Example Trade Scenario:
Let's consider an example trade scenario using this indicator:
When the indicator generates an "up" signal (trendBuy = true), indicating a potential bullish trend, and all the confirmation conditions (RSI, MFI, Supertrend) are met, you can consider opening a long position.
Conversely, when the indicator generates a "down" signal (trendSell = true), indicating a potential bearish trend, and all the confirmation conditions are met, you can consider opening a short position.
Remember, this is just an example, and it's crucial to perform thorough analysis and consider other factors before making trading decisions. It's recommended to backtest the strategy, assess risk management, and apply appropriate position sizing techniques.
Please note that the code provided is a simplified version, and there might be additional factors and considerations specific to your trading strategy that are not included in this code. *******"I have also reviewed the following indicators, and the volume calculation approaches of my friends have been very helpful in creating this indicator: "Volume Spikes " © tradeforopp and "Volume Spikes & Growing Volume Signals With Alerts & Scanner" © FriendOfTheTrend."*******
AlphaTrend - ScreenerScreener version of AlphaTrend indicator:
BUY / LONG when AlphaTrend line crosses above its 2 bars offsetted line, and there would be a green filling between them
SELL / SHORT when AlphaTrend line crosses below its 2 bars offsetted line, and filling would be red then.
Default values:
Coefficient: 1, which is the factor of the trailing ATR value
Common Period: 14, which is the length of ATR MFI and RSI
AlphaTrend default uses MFI in the calculation, and MFI (Money Flow Index) needs the volume data of the chart.
If your chart doesn't have the volume data, please select the "Change Calculation" option to use RSI instead of MFI.
Screener Panel:
You can explore 20 different and user-defined tickers, which can be changed from the SETTINGS (shares, crypto, commodities...) on this screener version.
The screener panel shows up right after the bars on the right side of the chart.
Tickers seen in green are the ones that are in an uptrend, according to AlphaTrend.
The ones that appear in red are those in the SELL signal, in a downtrend.
The numbers in front of each Ticker indicate how many bars passed after the last BUY or SELL signal of AlphaTrend.
For example, according to the indicator, when BTCUSDT appears in (3) and in GREEN, Bitcoin switched to BUY signal 3 bars ago.
Stochastic Momentum Index (SMI) of Money Flow Index (MFI)"He who does not know how to make predictions and makes light of his opponents, underestimating his ability, will certainly be defeated by them."
(Sun Tzu - The Art of War)
▮ Introduction
The Stochastic Momentum Index (SMI) is a technical analysis indicator that uses the difference between the current closing price and the high or low price over a specific time period to measure price momentum.
On the other hand, the Money Flow Index (MFI) is an indicator that uses volume and price to measure buying and selling pressure.
When these two indicators are combined, they can provide a more comprehensive view of price direction and market strength.
▮ Improvements
By combining SMI with MFI, we can gain even more insights into the market. One way to do this is to use the MFI as an input to the SMI, rather than just using price.
This means we are measuring momentum based on buying and selling pressure rather than just price.
Another way to improve this indicator is to adjust the periods to suit your specific trading needs.
▮ What to look
When using the SMI MFI indicator, there are a few things to look out for.
First, look at the SMI signal line.
When the line crosses above -40, it is considered a buy signal, while the crossing below +40 is considered a sell signal.
Also, pay attention to divergences between the SMI MFI and the price.
If price is rising but the SMI MFI is showing negative divergence, it could indicate that momentum is waning and a reversal could be in the offing.
Likewise, if price is falling but the SMI MFI is showing positive divergence, this could indicate that momentum is building and a reversal could also be in the offing.
In the examples below, I show the use in conjunction with the price SMI, in which the MFI SMI helps to anticipate divergences:
In summary, the SMI MFI is a useful indicator that can provide valuable insights into market direction and price strength.
By adjusting the timeframes and paying attention to divergences and signal line crossovers, traders can use it as part of a broader trading strategy.
However, remember that no indicator is a magic bullet and should always be used in conjunction with other analytics and indicators to make informed trading decisions.
