Scalping con EMA y RSIes una nueva extrategia que estoy poniendo en practiva basada en. dosmedias mobiles y elrsi si algunprofesional la pudiera revisary desirme si estoy iniciando bien para mi seria un honor
Penunjuk dan strategi
EMA Crossover Strategy - High Reward, Low Loss Trading Indicator🔹 Created by Aniketsinh
🚀 About This Strategy:
The EMA Crossover Strategy is designed for traders who prefer fewer trades with higher profit potential. It focuses on catching strong trends while minimizing unnecessary losses. Even if only 4 out of 10 trades succeed, the risk-reward ratio ensures more profits than losses.
📌 Key Features:
✅ Uses 50 EMA & 200 EMA for trend confirmation
✅ RSI filtering for momentum-based entries
✅ Volume confirmation to avoid false signals
✅ Stop Loss & Take Profit with a 3x reward-to-risk ratio
✅ Works well on crypto, forex, and stocks
📈 How It Works:
BUY Signal: 50 EMA crosses above 200 EMA, RSI > 50, and volume is high.
SELL Signal: 50 EMA crosses below 200 EMA, RSI < 50, and volume is high.
Stop Loss & Take Profit: Stop loss below recent low, and take profit at 3x risk.
🔍 Best Timeframes: Works well on higher timeframes like 1H, 4H, Daily for better accuracy.
⚠️ Risk Disclaimer:
No strategy is 100% perfect. Always use proper risk management and backtest before live trading.
💡 Try It Now & Optimize for Your Trading Style!
Let me know your feedback! 🚀
RSI Deviation BY DINVESTORQOverview:
This indicator analyzes the Relative Strength Index (RSI) over 252 days, calculating its mean (average) and standard deviation. Based on this, it sets an upper and lower threshold to determine overbought and oversold conditions.
Additionally, it calculates the correlation between RSI and price using a moving average, helping traders understand if RSI is moving in sync with price trends.
Key Features:
✅ RSI Deviation Bands
Upper Limit = RSI Avg + (2 × SD × 2.5)
Lower Limit = RSI Avg - (2 × SD × 2.5)
✅ Trading Signals:
Sell Signal: RSI crosses above the upper limit
Buy Signal: RSI drops below the lower limit
✅ RSI-Price Correlation Moving Average
Uses 50-day correlation between RSI and price
Helps confirm trend strength
✅ Customizable Parameters
RSI Length (Default: 252 Days)
Correlation Period (Default: 50 Days)
✅ Chart Visuals:
Plots RSI (blue), Upper Band (red), Lower Band (green)
Plots RSI-Price Correlation (orange)
Buy/Sell signals appear on chart
TradingView Indicator: RSI Deviation & Correlation Indicator
Overview:
This indicator analyzes the Relative Strength Index (RSI) over 252 days, calculating its mean (average) and standard deviation. Based on this, it sets an upper and lower threshold to determine overbought and oversold conditions.
Additionally, it calculates the correlation between RSI and price using a moving average, helping traders understand if RSI is moving in sync with price trends.
Key Features:
✅ RSI Deviation Bands
Upper Limit = RSI Avg + (2 × SD × 2.5)
Lower Limit = RSI Avg - (2 × SD × 2.5)
✅ Trading Signals:
Sell Signal: RSI crosses above the upper limit
Buy Signal: RSI drops below the lower limit
✅ RSI-Price Correlation Moving Average
Uses 50-day correlation between RSI and price
Helps confirm trend strength
✅ Customizable Parameters
RSI Length (Default: 252 Days)
Correlation Period (Default: 50 Days)
✅ Chart Visuals:
Plots RSI (blue), Upper Band (red), Lower Band (green)
Plots RSI-Price Correlation (orange)
Buy/Sell signals appear on chart
Pine Script for TradingView:
pinescript
Copy
Edit
//@version=5
indicator("RSI Deviation & Correlation Indicator", overlay=false)
// User Inputs
length = input.int(252, title="RSI Period")
corr_length = input.int(50, title="Correlation Period")
// RSI Calculation
rsi_value = ta.rsi(close, length)
// Calculate Mean and Standard Deviation of RSI
rsi_avg = ta.sma(rsi_value, length)
rsi_sd = ta.stdev(rsi_value, length) * 2.5
// Define Upper and Lower Limits
upper_limit = rsi_avg + (rsi_sd * 2)
lower_limit = rsi_avg - (rsi_sd * 2)
// Buy and Sell Signals
buy_signal = rsi_value < lower_limit
sell_signal = rsi_value > upper_limit
// Correlation Moving Average between RSI and Price
rsi_price_correlation = ta.correlation(rsi_value, close, corr_length)
// Plot RSI with Bands
plot(rsi_value, title="RSI", color=color.blue)
plot(upper_limit, title="Upper Limit", color=color.red, linewidth=2)
plot(lower_limit, title="Lower Limit", color=color.green, linewidth=2)
plot(rsi_avg, title="Average RSI", color=color.gray, linewidth=2)
// Display Buy/Sell Signals on Chart
plotshape(buy_signal, location=location.bottom, color=color.green, style=shape.labelup, title="BUY Signal", size=size.small)
plotshape(sell_signal, location=location.top, color=color.red, style=shape.labeldown, title="SELL Signal", size=size.small)
// Plot Correlation Moving Average
plot(rsi_price_correlation, title="RSI-Price Correlation", color=color.orange, linewidth=2)
// Alerts for Buy/Sell
alertcondition(buy_signal, title="BUY Alert", message="RSI is below the Lower Limit - BUY Signal")
alertcondition(sell_signal, title="SELL Alert", message="RSI is above the Upper Limit - SELL Signal")
How to Use in TradingView:
1️⃣ Open TradingView and go to the Pine Editor
2️⃣ Paste the above Pine Script
3️⃣ Click Add to Chart
4️⃣ Adjust RSI Length and Correlation Period if needed
5️⃣ Buy/Sell alerts will trigger when conditions match
Trading Strategy:
📉 Sell (Short Entry) when RSI crosses above the upper limit
📈 Buy (Long Entry) when RSI drops below the lower limit
📊 Confirm trends with RSI-Price Correlation:
+1 means RSI and price are moving together
-1 means RSI and price are diverging
Final Notes:
Works best on higher timeframes (Daily, Weekly)
Helps filter overbought/oversold false signals
Can be combined with other indicators (MACD, Bollinger Bands, etc.)
Alinachi TrendI have Created Supertrend, Bollinger Bands, EMA with Smoothing Indicator
for Trading View you can use multiple indicators. only you need to be set indicator settings and use it.
we are trying to add more useful indicators in our code
MTF EMA crossover Sentiment - SimplifiedMTF EMA crossover Sentiment Exponential Moving Average (EMA full form in stock market) is a kind of moving average that places a greater weight and importance on the most current data points. It is used for evaluating the bullish and bearish trends in securities over a certain span of duration.
XAU/USD Swing Trading Strategy//@version=5
indicator("XAU/USD Swing Trading Strategy", overlay=true)
// Inputs
ema200_length = input.int(200, title="200 EMA Length")
ema50_length = input.int(50, title="50 EMA Length")
ema100_length = input.int(100, title="100 EMA Length")
rsi_length = input.int(14, title="RSI Length")
rsi_overbought = input.int(70, title="RSI Overbought Level")
rsi_oversold = input.int(30, title="RSI Oversold Level")
fib_levels = input.string("38.2, 50, 61.8", title="Fibonacci Levels")
// EMAs
ema200 = ta.ema(close, ema200_length)
ema50 = ta.ema(close, ema50_length)
ema100 = ta.ema(close, ema100_length)
// RSI
rsi = ta.rsi(close, rsi_length)
// Fibonacci Retracement Levels
fib_382 = 0.382
fib_500 = 0.5
fib_618 = 0.618
// Plot EMAs
plot(ema200, color=color.blue, title="200 EMA", linewidth=2)
plot(ema50, color=color.orange, title="50 EMA", linewidth=1)
plot(ema100, color=color.red, title="100 EMA", linewidth=1)
// Plot RSI
hline(rsi_overbought, "Overbought", color=color.red)
hline(rsi_oversold, "Oversold", color=color.green)
// Candlestick Patterns
bullish_engulfing = ta.crossover(close , open ) and close > open and close < open
bearish_engulfing = ta.crossover(open , close ) and close < open and close > open
pin_bar_bullish = (low < low and close > (high + low) / 2)
pin_bar_bearish = (high > high and close < (high + low) / 2)
// Trend Direction
uptrend = close > ema200
downtrend = close < ema200
// Entry Signals
long_signal = uptrend and bullish_engulfing and rsi > rsi_oversold
short_signal = downtrend and bearish_engulfing and rsi < rsi_overbought
// Plot Signals
plotshape(series=long_signal, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.labelup, text="BUY")
plotshape(series=short_signal, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.labeldown, text="SELL")
// Fibonacci Levels
fib_high = ta.highest(high, 50)
fib_low = ta.lowest(low, 50)
fib_range = fib_high - fib_low
plot(fib_high - fib_range * fib_382, color=color.purple, title="38.2% Fib")
plot(fib_high - fib_range * fib_500, color=color.blue, title="50% Fib")
plot(fib_high - fib_range * fib_618, color=color.orange, title="61.8% Fib")
// Alerts
alertcondition(long_signal, title="Buy Signal", message="BUY XAU/USD")
alertcondition(short_signal, title="Sell Signal", message="SELL XAU/USD")
Multi Stochastic AlertHello Everyone,
I have created a Multi Stochastic Alert based on Scalping Strategy
The Strategy uses below 4 Stochastic indicator:
1. Stochastic (9,3)
2. Stochastic (14,3)
3. Stochastic (40,4)
4. Stochastic (60,10)
Trade entry become active when all of these goes below 20 or above 80, In this indicator you don't need to use all 4, this will show red and green background whenever all of them goes below 20 or above 80.
As shown in picture below, it works better when script is making a channel, Our indicator shows green or red signal, we wait for RSI Divergence and we enter. We book when blue line (9,3) goes above 80, as shown by arrow, and trail rest at breakeven or your own trailing method
Same Situation shown for Short side. We book 50% when Blue line (9,3) Goes below 20 and trail rest at breakeven or your own trailing method
Happy trading, Let me know if any improvements required.
Swing Trading Strategy - Indian MarketTrend Identification:
The script uses 50 EMA and 200 EMA to identify the trend.
Uptrend: 50 EMA > 200 EMA.
Downtrend: 50 EMA < 200 EMA.
Momentum Confirmation:
RSI is used to confirm momentum.
Buy when RSI crosses above 30 (oversold) in an uptrend.
Sell when RSI crosses below 70 (overbought) in a downtrend.
Volume Filter:
The script checks if the current volume is 1.5x the average volume (adjustable) to confirm breakouts.
Signals:
Buy Signal: Green "BUY" label below the candle.
Sell Signal: Red "SELL" label above the candle.
Background Highlight:
The background is highlighted green during an uptrend and red during a downtrend.
Crypto Movement PredictorKey Features
Moving Averages (MA):
The indicator calculates two moving averages:
Short-term MA (50 periods): A faster-moving average that reacts quickly to price changes.
Long-term MA (200 periods): A slower-moving average that smooths out price fluctuations and represents the broader trend.
These moving averages are plotted on the chart for visual reference.
Crossover Strategy:
The indicator predicts potential bullish or bearish movements based on the crossover of the two moving averages:
Bullish Signal: When the short-term MA crosses above the long-term MA, the indicator predicts a potential upward movement.
Bearish Signal: When the short-term MA crosses below the long-term MA, the indicator predicts a potential downward movement.
These signals are displayed as labels on the chart for easy identification.
Last 500 Candlesticks:
The indicator plots the closing prices of the last 500 candlesticks to provide historical context. This helps traders understand the recent price action and how it relates to the moving averages.
Visualization:
The short-term MA is plotted in blue, and the long-term MA is plotted in red.
Bullish signals are marked with a green label saying "Bullish," and bearish signals are marked with a red label saying "Bearish."
The last 500 candlesticks are plotted in orange for reference.
Bollinger Bands Strategy TGBollinger Bands strategy to buy when the close price goes above the lower bollinger band and to close the long position when the close price goes above the upper bollinger band.
Appears to be working well.
Moving Average Shaded with Angle2 moving averages which you can edit in the settings. Selections are SMA,EMA or HMA and of course how many periods are available. In addition to the moving averages you have a color coded Cloud showing bullish or bearish trends. Lastly there are 3 print tables Top Right, Bottom Right and Middle Right. Top Right is the angle of the fast moving average. Bottom Right is the angle of the slow moving average and Middle right is an average of the 2. These are also color coded green numbers are bullish and red numbers are bearish. In the settings are threshold fields which allow increasing angle thresholds to give grey numbers if the angles are below these thresholds allowing for numerically quantifying sideways markets vs strong trending markets.
Donchian Reversal Scanner by Hitesh2603How It Works:
Bearish Side Logic:
If the price is falling with bearish candles and touching the lower Donchian Channel, the bearishCondition flag is set to true.
When a bullish candle appears afterward, the flag is reset, and the bullishReversalSquare condition becomes true.
Bullish Side Logic:
If the price is rising with bullish candles and touching the upper Donchian Channel, the bullishCondition flag is set to true.
When a bearish candle appears afterward, the flag is reset, and the bearishReversalSquare condition becomes true.
Plotting Squares:
A green square is plotted below the candle when bullishReversalSquare is true.
A red square is plotted above the candle when bearishReversalSquare is true.
Scanner Output:
The scanCondition variable is true when either bullishReversalSquare or bearishReversalSquare is true.
How to Use the Script:
On the Chart:
Add the script to your chart.
You will see squares plotted on the chart when the conditions are met:
Green squares below the candle for bullish reversals.
Red squares above the candle for bearish reversals.
In the Scanner:
Open the Scanner tab in TradingView.
Click on "Create New Scanner".
In the "Condition" field, select the script you just created.
Choose the market or watchlist you want to scan (e.g., "NYSE", "NASDAQ", or a custom watchlist).
Run the scan. The Scanner will return a list of instruments where the scanCondition is true.
Why This Works:
The scanCondition variable is now properly declared and used.
The plotchar function explicitly outputs the scanCondition variable as a plot, which the Scanner can recognize.
TEMA,SMA & VWAP Indicator//@version=5
indicator("TEMA,SMA & VWAP Indicator", overlay=true)
// Input parameter for TEMA length
tema_length = input.int(title="TEMA Length", defval=30, minval=1, step=1)
// Input settings for SMAs
sma5_length = input.int(5, title="SMA 5 Length")
sma20_length = input.int(20, title="SMA 20 Length")
sma50_length = input.int(50, title="SMA 50 Length")
sma100_length = input.int(100, title="SMA 100 Length")
sma200_length = input.int(200, title="SMA 200 Length")
// Calculate TEMA manually
ema1 = ta.ema(close, tema_length)
ema2 = ta.ema(ema1, tema_length)
ema3 = ta.ema(ema2, tema_length)
tema = 3 * (ema1 - ema2) + ema3
// Calculate SMAs
sma5 = ta.sma(close, sma5_length)
sma20 = ta.sma(close, sma20_length)
sma50 = ta.sma(close, sma50_length)
sma100 = ta.sma(close, sma100_length)
sma200 = ta.sma(close, sma200_length)
// VWAP Calculation
vwap = ta.vwap
// Plot TEMA
plot(tema, title="TEMA", color=color.orange, linewidth=1, style=plot.style_line)
// Plot SMAs
plot(sma5, color=color.yellow, title="SMA 5")
plot(sma20, color=color.purple, title="SMA 20")
plot(sma50, color=color.red, title="SMA 50")
plot(sma100, color=color.green, title="SMA 100")
plot(sma200, color=color.black, title="SMA 200")
// Plot VWAP
plot(vwap, color=color.blue, linewidth=1, title="VWAP")
// Optional: Add background color based on trend
bgcolor(close > sma200 ? color.new(color.green, 90) : close < sma200 ? color.new(color.red, 90) : na, title="Trend Background")
TEMA,SMA & VWAP Indicator//@version=5
indicator("TEMA,SMA & VWAP Indicator", overlay=true)
// Input parameter for TEMA length
tema_length = input.int(title="TEMA Length", defval=30, minval=1, step=1)
// Input settings for SMAs
sma5_length = input.int(5, title="SMA 5 Length")
sma20_length = input.int(20, title="SMA 20 Length")
sma50_length = input.int(50, title="SMA 50 Length")
sma100_length = input.int(100, title="SMA 100 Length")
sma200_length = input.int(200, title="SMA 200 Length")
// Calculate TEMA manually
ema1 = ta.ema(close, tema_length)
ema2 = ta.ema(ema1, tema_length)
ema3 = ta.ema(ema2, tema_length)
tema = 3 * (ema1 - ema2) + ema3
// Calculate SMAs
sma5 = ta.sma(close, sma5_length)
sma20 = ta.sma(close, sma20_length)
sma50 = ta.sma(close, sma50_length)
sma100 = ta.sma(close, sma100_length)
sma200 = ta.sma(close, sma200_length)
// VWAP Calculation
vwap = ta.vwap
// Plot TEMA
plot(tema, title="TEMA", color=color.orange, linewidth=1, style=plot.style_line)
// Plot SMAs
plot(sma5, color=color.yellow, title="SMA 5")
plot(sma20, color=color.purple, title="SMA 20")
plot(sma50, color=color.red, title="SMA 50")
plot(sma100, color=color.green, title="SMA 100")
plot(sma200, color=color.black, title="SMA 200")
// Plot VWAP
plot(vwap, color=color.blue, linewidth=1, title="VWAP")
// Optional: Add background color based on trend
bgcolor(close > sma200 ? color.new(color.green, 90) : close < sma200 ? color.new(color.red, 90) : na, title="Trend Background")
Stoc + Liq Zon + Buy/Sell Signals [5M/15M] RGUARDADOSV//@version=6
indicator("Stochastic + Liquidity Zones + Buy/Sell Signals ", overlay=true)
// Parámetros del Estocástico
stochLength = input.int(14, title="Stochastic Length")
kSmoothing = input.int(3, title="%K Smoothing")
dSmoothing = input.int(3, title="%D Smoothing")
overbought = input.int(80, title="Overbought Level")
oversold = input.int(20, title="Oversold Level")
// Calcular el Estocástico
k = ta.sma(ta.stoch(close, high, low, stochLength), kSmoothing)
d = ta.sma(k, dSmoothing)
// Condiciones de sobrecompra y sobreventa (Estocástico)
isOverbought = k >= overbought and d >= overbought
isOversold = k <= oversold and d <= oversold
// Identificar puntos de liquidez (soportes y resistencias)
liquidityLookback = input.int(20, title="Liquidity Lookback Period") // Ajusta según la temporalidad
recentHigh = ta.highest(high, liquidityLookback)
recentLow = ta.lowest(low, liquidityLookback)
// Dibujar soportes y resistencias
plot(recentHigh, color=color.new(color.red, 50), linewidth=2, title="Resistencia")
plot(recentLow, color=color.new(color.green, 50), linewidth=2, title="Soporte")
// Señales de compra y venta
buySignal = isOversold and close <= recentLow * 1.005 // Cerca de soporte y Estocástico en sobreventa
sellSignal = isOverbought and close >= recentHigh * 0.995 // Cerca de resistencia y Estocástico en sobrecompra
// Dibujar señales en el gráfico
plotshape(series=buySignal, location=location.belowbar, color=color.new(color.green, 0), style=shape.labelup, text="BUY", size=size.small)
plotshape(series=sellSignal, location=location.abovebar, color=color.new(color.red, 0), style=shape.labeldown, text="SELL", size=size.small)
// Alertas para señales de compra y venta
alertcondition(buySignal, title="Buy Signal Alert", message="Buy Signal Detected!")
alertcondition(sellSignal, title="Sell Signal Alert", message="Sell Signal Detected!")
======================================================================
Qué Hace el Código
Estocástico:
Identifica condiciones de sobrecompra (Estocástico ≥ 80) y sobreventa (Estocástico ≤ 20).
Utiliza las líneas %K y %D para confirmar las señales.
Puntos de Liquidez:
Identifica niveles clave de soporte (mínimos recientes) y resistencia (máximos recientes).
Dibuja líneas horizontales en estos niveles.
Señales de Compra y Venta:
Compra (BUY): Cuando el Estocástico está en sobreventa y el precio está cerca de un soporte.
Venta (SELL): Cuando el Estocástico está en sobrecompra y el precio está cerca de una resistencia.
Visualización:
Las señales se muestran en el gráfico con etiquetas "BUY" (verde) y "SELL" (roja).
Alertas:
Genera alertas cuando se detectan señales de compra o venta.
Cómo Usar el Script
Señales de Compra (BUY):
Aparece cuando el Estocástico está en sobreventa (≤ 20) y el precio está cerca de un soporte.
Es una señal para considerar una posición larga.
Señales de Venta (SELL):
Aparece cuando el Estocástico está en sobrecompra (≥ 80) y el precio está cerca de una resistencia.
Es una señal para considerar una posición corta.
Stop-loss y Take-profit:
Para BUY: Coloca el stop-loss por debajo del soporte y el take-profit en el siguiente nivel de resistencia.
Para SELL: Coloca el stop-loss por encima de la resistencia y el take-profit en el siguiente nivel de soporte.
Ejemplo de Uso
En un gráfico de 5 minutos:
Si aparece una señal "BUY", es una oportunidad para entrar en largo.
Si aparece una señal "SELL", es una oportunidad para entrar en corto.
En un gráfico de 15 minutos:
Las señales son menos frecuentes pero más confiables. Espera confirmación adicional (por ejemplo, un patrón de velas o un rompimiento de nivel).
MACD + RSI Buy/Sell Strategy//@version=5
strategy("MACD + RSI Buy/Sell Strategy", overlay=true)
// MACD Settings
= ta.macd(close, 12, 26, 9)
// RSI Settings
rsiLength = 14
rsi = ta.rsi(close, rsiLength)
// Buy & Sell Conditions
buyCondition = ta.crossover(macdLine, signalLine) and rsi < 30
sellCondition = ta.crossunder(macdLine, signalLine) and rsi > 70
// Plot Buy and Sell Signals
plotshape(series=buyCondition, location=location.belowbar, color=color.green, style=shape.labelup, size=size.small, title="Buy Signal")
plotshape(series=sellCondition, location=location.abovebar, color=color.red, style=shape.labeldown, size=size.small, title="Sell Signal")
// Execute Trades
strategy.entry("Buy", strategy.long, when=buyCondition)
strategy.close("Buy", when=sellCondition)
Máximos y Mínimos del Día Anterior (Dinámico)Este script marca los puntos maximos y minimos que hizo el precio en dìa anterior.
SM Concepts: FVG, BOS, CHOCH, S/R1. *Fair Value Gaps (FVG)* - Plots triangles below/above bars when FVG forms
2. *Break of Structure (BOS)* - Arrows showing trend continuation signals
3. *Change of Character (CHOCH)* - X marks showing potential trend reversals
4. *Support/Resistance* - Dynamic levels based on recent price extremes
5. *Smart Money* - Purple circles indicating high volume activity
Features:
- Customizable parameters in settings
- Visual alerts for BOS signals
- Multiple time frame support
- Clean visual presentation with different colors/shapes
Note: This is a conceptual script - always test strategies before live trading. These concepts work best when combined with proper risk management and market context analysis.
isikh1998sma 50 ema 200 vwap previous day high low close.................
add auto trendlines with it if you like
5-13-26-50-200All in one EMA.
I have added important EMAs in this script.
5,13 and 26 can be treated as short-term EMAs.
50 and 200 EMAs are can be used as long term.
Price Imbalance as Consecutive Levels of AveragesOverview
The Price Imbalance as Consecutive Levels of Averages indicator is an advanced technical analysis tool designed to identify and visualize price imbalances in financial markets. Unlike traditional moving average (MA) indicators that update continuously with each new price bar, this indicator employs moving averages calculated over consecutive, non-overlapping historical windows. This unique approach leverages comparative historical data to provide deeper insights into trend strength and potential reversals, offering traders a more nuanced understanding of market dynamics and reducing the likelihood of false signals or fakeouts.
Key Features
Consecutive Rolling Moving Averages: Utilizes three distinct simple moving averages (SMAs) calculated over consecutive, non-overlapping windows to capture different historical segments of price data.
Dynamic Color-Coded Visualization: SMA lines change color and style based on the relationship between the averages, highlighting both extreme and normal market conditions.
Median and Secondary Median Lines: Provides additional layers of price distribution insight during normal trend conditions through the plotting of primary and secondary median lines.
Fakeout Prevention: Filters out short-term volatility and sharp price movements by requiring consistent historical alignment of multiple moving averages.
Customizable Parameters: Offers flexibility to adjust SMA window lengths and line extensions to align with various trading strategies and timeframes.
Real-Time Updates with Historical Context: Continuously recalculates and updates SMA lines based on comparative historical windows, ensuring that the indicator reflects both current and past market conditions.
Inputs & Settings
Rolling Window Lengths:
Window 1 Length (Most Recent) Bars: Number of bars used to calculate the most recent SMA. (Default: 5, Range: 2–300)
Window 2 Length (Preceding) Bars: Number of bars for the second SMA, shifted by Window 1. (Default: 8, Range: 2–300)
Window 3 Length (Third Rolling) Bars: Number of bars for the third SMA, shifted by the combined lengths of Window 1 and Window 2. (Default: 13, Range: 2–300)
Horizontal Line Extension:
Horizontal Line Extension (Bars): Determines how far each SMA line extends horizontally on the chart. (Default: 10 bars, Range: 1–100)
Functionality and Theory
1. Calculating Consecutive Simple Moving Averages (SMAs):
The indicator calculates three SMAs, each based on distinct and consecutive historical windows of price data. This approach contrasts with traditional MAs that continuously update with each new price bar, offering a static view of past trends rather than an ongoing one.
Mean1 (SMA1): Calculated over the most recent Window 1 Length bars. Represents the short-term trend.
Mean1=∑i=1N1CloseiN1
Mean1=N1∑i=1N1Closei
Where N1N1 is the length of Window 1.
Mean2 (SMA2): Calculated over the preceding Window 2 Length bars, shifted back by Window 1 Length bars. Represents the medium-term trend.
\text{Mean2} = \frac{\sum_{i=1}^{N_2} \text{Close}_{i + N_1}}}{N_2}
Where N2N2 is the length of Window 2.
Mean3 (SMA3): Calculated over the third rolling Window 3 Length bars, shifted back by the combined lengths of Window 1 and Window 2 bars. Represents the long-term trend.
\text{Mean3} = \frac{\sum_{i=1}^{N_3} \text{Close}_{i + N_1 + N_2}}}{N_3}
Where N3N3 is the length of Window 3.
2. Determining Market Conditions:
The relationship between the three SMAs categorizes the market condition into either extreme or normal states, enabling traders to quickly assess trend strength and potential reversals.
Extreme Bullish:
Mean3Mean2>Mean1
Mean3>Mean2>Mean1
Indicates a strong and sustained downward trend. SMA lines are colored purple and styled as dashed lines.
Normal Bullish:
Mean1>Mean2andnot in extreme bullish condition
Mean1>Mean2andnot in extreme bullish condition
Indicates a standard upward trend. SMA lines are colored green and styled as solid lines.
Normal Bearish:
Mean1Mean2>Mean1
Mean3>Mean2>Mean1
Normal Bullish:
Mean1>Mean2andnot in Extreme Bullish
Mean1>Mean2andnot in Extreme Bullish
Normal Bearish:
Mean1 Mean2 > Mean3
Visualization: All three SMAs are displayed as gold dashed lines.
Median Lines: Not displayed to maintain chart clarity.
Interpretation: Indicates a strong and sustained upward trend. Traders may consider entering long positions, confident in the trend's strength without the distraction of additional lines.
2. Normal Bullish Condition:
SMAs Alignment: Mean1 > Mean2 (not in extreme condition)
Visualization: Mean1 and Mean2 are green solid lines; Mean3 is gray.
Median Lines: A thin blue dotted median line is plotted between Mean1 and Mean2, with two additional thin blue dashed lines as secondary medians.
Interpretation: Confirms an upward trend while providing deeper insights into price distribution. Traders can use the median and secondary median lines to identify optimal entry points and manage risk more effectively.
3. Extreme Bearish Condition:
SMAs Alignment: Mean3 > Mean2 > Mean1
Visualization: All three SMAs are displayed as purple dashed lines.
Median Lines: Not displayed to maintain chart clarity.
Interpretation: Indicates a strong and sustained downward trend. Traders may consider entering short positions, confident in the trend's strength without the distraction of additional lines.
4. Normal Bearish Condition:
SMAs Alignment: Mean1 < Mean2 (not in extreme condition)
Visualization: Mean1 and Mean2 are red solid lines; Mean3 is gray.
Median Lines: A thin blue dotted median line is plotted between Mean1 and Mean2, with two additional thin blue dashed lines as secondary medians.
Interpretation: Confirms a downward trend while providing deeper insights into price distribution. Traders can use the median and secondary median lines to identify optimal entry points and manage risk more effectively.
Customization and Flexibility
The Price Imbalance as Consecutive Levels of Averages indicator is highly adaptable, allowing traders to tailor it to their specific trading styles and market conditions through adjustable parameters:
SMA Window Lengths: Modify the lengths of Window 1, Window 2, and Window 3 to capture different historical trend segments, whether focusing on short-term fluctuations or long-term movements.
Line Extension: Adjust the horizontal extension of SMA and median lines to align with different trading horizons and chart preferences.
Color and Style Preferences: While default colors and styles are optimized for clarity, traders can customize these elements to match their personal chart aesthetics and enhance visual differentiation.
This flexibility ensures that the indicator remains versatile and applicable across various markets, asset classes, and trading strategies, providing valuable insights tailored to individual trading needs.
Conclusion
The Price Imbalance as Consecutive Levels of Averages indicator offers a comprehensive and innovative approach to analyzing price trends and imbalances within financial markets. By utilizing three consecutive, non-overlapping SMAs and incorporating median lines during normal trend conditions, the indicator provides clear and actionable insights into trend strength and price distribution. Its unique design leverages comparative historical data, distinguishing it from traditional moving averages and enhancing its utility in identifying genuine market movements while minimizing false signals. This dynamic and customizable tool empowers traders to refine their technical analysis, optimize their trading strategies, and navigate the markets with greater confidence and precision.
