Advanced VWAP_Pullback Strategy_Trend-Template QualifierGeneral Description and Unique Features of this Script
Introducing the Advanced VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends. Mark Minervini, a 2x US Investment Champion, developed the Trend-Template, which covers eight different and independent characteristics that can be adjusted and optimized in this trend-following strategy to ensure the best results. The strategy will only trigger buy-signals in case the optimized qualifiers are being met.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strategy
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably. You also have the option to make use of the trailing stop exit strategy.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from Jan 2020 until March 2023
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
- This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
- The combination of the Trend-Template and the RSI qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
- Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
Cari dalam skrip untuk "Relative"
Combo Backtest 123 Reversal & RSI based on ROC This is combo strategies for get a cumulative signal.
First strategy
This System was created from the Book "How I Tripled My Money In The
Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.
Second strategy
This is the new-age indicator which is version of RSI calculated upon
the Rate-of-change indicator.
The name "Relative Strength Index" is slightly misleading as the RSI
does not compare the relative strength of two securities, but rather
the internal strength of a single security. A more appropriate name
might be "Internal Strength Index." Relative strength charts that compare
two market indices, which are often referred to as Comparative Relative Strength.
And in its turn, the Rate-of-Change ("ROC") indicator displays the difference
between the current price and the price x-time periods ago. The difference can
be displayed in either points or as a percentage. The Momentum indicator displays
the same information, but expresses it as a ratio.
WARNING:
- For purpose educate only
- This script to change bars colors.
RSI based on ROC Backtest This is the new-age indicator which is version of RSI calculated upon
the Rate-of-change indicator.
The name "Relative Strength Index" is slightly misleading as the RSI
does not compare the relative strength of two securities, but rather
the internal strength of a single security. A more appropriate name
might be "Internal Strength Index." Relative strength charts that compare
two market indices, which are often referred to as Comparative Relative Strength.
And in its turn, the Rate-of-Change ("ROC") indicator displays the difference
between the current price and the price x-time periods ago. The difference can
be displayed in either points or as a percentage. The Momentum indicator displays
the same information, but expresses it as a ratio.
You can change long to short in the Input Settings
WARNING:
- For purpose educate only
- This script to change bars colors.
RSI based on ROC Strategy This is the new-age indicator which is version of RSI calculated upon
the Rate-of-change indicator.
The name "Relative Strength Index" is slightly misleading as the RSI
does not compare the relative strength of two securities, but rather
the internal strength of a single security. A more appropriate name
might be "Internal Strength Index." Relative strength charts that compare
two market indices, which are often referred to as Comparative Relative Strength.
And in its turn, the Rate-of-Change ("ROC") indicator displays the difference
between the current price and the price x-time periods ago. The difference can
be displayed in either points or as a percentage. The Momentum indicator displays
the same information, but expresses it as a ratio.
WARNING:
- This script to change bars colors.
Supertrade's RVI Long-Only Strategy with SL/TP (RR 1:3)This strategy, titled "Supertrade’s RVI Long-Only Strategy with SL/TP (RR 1:3)", is designed to capitalize on potential bullish reversals using the Relative Vigor Index (RVI) as its core signal generator. It is best optimized for trading XAUUSD on the 15-minute timeframe , where it has demonstrated favorable historical performance.
The RVI is calculated using a 10-period standard deviation of the closing price, with smoothing applied through a 14-period exponential moving average. This approach helps to distinguish between uptrend and downtrend volatility, allowing the strategy to identify momentum shifts with precision. A long position is triggered when the RVI crosses above the 20 level, suggesting a potential transition from a weak to a stronger bullish phase.
Risk management is embedded through a user-defined stop-loss (default set at 1% below the entry price) and a fixed reward-to-risk ratio of 1:3. This means that for every 1% of capital risked, the strategy targets a 3% gain, maintaining favorable risk-reward dynamics throughout its execution. Once a position is entered, it will exit automatically at either the stop-loss or take-profit level, depending on which is reached first.
This strategy is meant for educational and research purposes only. While it has performed well historically on specific assets and timeframes, past performance is not indicative of future results . Market conditions can change, and no strategy guarantees success in all environments. Please exercise proper risk management and test thoroughly before applying in live markets.
RSI+Stoch Band Oscillator📈 RSI + Stochastic Band Oscillator
Overview:
The RSI + Stochastic Band Oscillator is a technical indicator that combines the strengths of both the Relative Strength Index (RSI) and the Stochastic Oscillator. Instead of using static thresholds, this indicator dynamically constructs upper and lower bands based on the RSI and Stochastic overbought/oversold zones. It then measures the relative position of the current price within this adaptive range, effectively producing a normalized oscillator.
Key Components:
RSI-Based Dynamic Bands:
Using RSI values and exponential moving averages of price changes, upper and lower dynamic bands are constructed.
These bands adjust based on overbought and oversold levels, offering a more responsive framework than fixed RSI thresholds.
Stochastic-Based Dynamic Bands:
Similarly, Stochastic %K and %D values are used to construct dynamic bands.
These adapt to overbought and oversold levels by recalculating potential high/low values within the lookback window.
Oscillator Calculation:
The oscillator (osc) is computed as the relative position of the current close within the combined upper and lower bands of both RSI and Stochastic.
This value is normalized between 0 and 100, allowing clear identification of extreme conditions.
Visual Features:
The oscillator is plotted as a line between 0 and 100.
Color-filled areas highlight when the oscillator enters extreme zones:
Above 100 with falling momentum: Red zone (potential reversal).
Below 0 with rising momentum: Green zone (potential reversal).
Additional trend conditions (falling/rising RSI, %K, and %D) are used to strengthen reversal signals by confirming momentum shifts.
RSI Trend Bias█ OVERVIEW
The RSI Trend Bias indicator is a custom technical analysis tool that utilizes the Relative Strength Index (RSI) to gauge market momentum and identify potential trend shifts. By monitoring RSI crossovers and crossunders relative to customizable threshold levels, the indicator provides clear visual cues that distinguish between bullish and bearish market conditions. This flexible approach makes it suitable for both short-term scalping and longer-term trend analysis.
█ KEY FEATURES
Dynamic RSI Trend Detection
The indicator dynamically determines market bias by monitoring the RSI for crossovers above the upper threshold and crossunders below the lower threshold. This method ensures that only significant momentum shifts trigger a change in trend, reducing false signals in volatile markets.
Adaptive Visualizations
The RSI Trend Bias indicator enhances clarity by plotting the RSI with colors that reflect current market conditions. Additionally, it offers an optional background color change to further emphasize bullish or bearish states, providing immediate visual feedback to traders.
Clear Threshold Indicators
Upper and lower threshold levels are plotted as constant reference lines, clearly delineating overbought and oversold regions. These markers help traders quickly assess market conditions at a glance.
Customizable Settings
Users have full control over key parameters including the RSI length, threshold levels, and visual settings. This customization allows the indicator to be tailored for different markets and trading styles, ensuring optimal performance across various timeframes.
█ UNDERLYING METHODOLOGY & CALCULATIONS
RSI Calculation
The indicator computes the Relative Strength Index over a user-defined period (default is 14), providing a measure of market momentum that reflects price changes over time.
Trend Determination Logic
By detecting when the RSI crosses above the upper threshold, the indicator signals a shift towards bullish momentum. Conversely, a crossunder below the lower threshold indicates bearish conditions. This straightforward binary approach filters out minor fluctuations, ensuring clarity in trend analysis.
Visual Signal Integration
Based on the detected trend, the RSI line is dynamically colored—green for bullish conditions and red for bearish conditions. An optional background color change further reinforces these signals, offering an immediate visual cue of prevailing market sentiment.
█ HOW TO USE THE INDICATOR
1 — Apply the Indicator
• Add the RSI Trend Bias indicator to a separate pane in your trading platform.
2 — Adjust Settings for Your Market
• RSI Length – Define the period for RSI calculation (default is 14).
• Threshold Levels – Set the upper (default 70) and lower (default 30) thresholds to identify overbought and oversold conditions.
• Visual Customization – Choose the bullish (green) and bearish (red) colors, and enable background color changes to enhance visual trend recognition.
3 — Interpret the Signals
• RSI Line – Observe the dynamically colored RSI line; a shift to green signals bullish momentum, while red indicates bearish conditions.
• Threshold Levels – Use the constant upper and lower lines as reference points for overbought and oversold states.
• Signal Timing – A crossover above the upper threshold or a crossunder below the lower threshold suggests potential entry or exit points.
4 — Integrate with Your Trading Strategy
• Combine RSI Trend Bias signals with other technical analysis tools to confirm market direction.
• Utilize the visual cues for fine-tuning your entry and exit decisions, ensuring robust risk management and optimized trade timing.
█ CONCLUSION
The RSI Trend Bias indicator offers a streamlined yet effective approach to monitoring market momentum. By leveraging the established principles of RSI analysis alongside dynamic visual cues, it enables traders to quickly identify bullish and bearish trends. Its customizable features and clear threshold indicators make it a valuable tool for enhancing technical analysis and making informed trading decisions.
Multi-Ticker RS vs SPYThis Pine Script, titled "Multi-Ticker RS vs SPY," is a clean and efficient indicator designed for TradingView, enabling traders to monitor the relative strength (RS) of up to 10 ticker symbols compared to the S&P 500 ETF (SPY) on a single chart. Ideal for options traders, such as those managing a $1,400 account, it provides a simple way to assess which stocks are outperforming or underperforming the broader market. As of February 26, 2025, the script supports any chart timeframe, such as 5-minute or daily intervals, and calculates RS based on a user-defined lookback period, defaulting to 1 bar for real-time insights.
Users can input ticker symbols via customizable settings, with defaults set to popular stocks like AAPL, TSLA, NVDA, GOOGL, AMZN, MSFT, FB, NFLX, INTC, and PYPL. The script fetches closing prices for each ticker and SPY, computes their percentage changes over the lookback period, and determines RS as the ratio of each ticker’s change to SPY’s change, handling division by zero gracefully. It displays each ticker’s current RS score in a vertical column of labels on the chart’s top-left corner, updated on the last bar to avoid clutter. Users can adjust label size (tiny, small, normal, large) and text color for visibility, ensuring a tailored, error-free experience for quick market analysis.
Dominant Smoothed Volume Pro Smoothed Volume Pro provides a useful tool designed to provide traders with a deeper understanding of market dynamics by analyzing buy and sell volume across multiple timeframes. Unlike traditional volume indicators, this script normalizes volume data from lower timeframes to align with the current chart's timeframe, providing an apples-to-apples comparison. The result is a visual histogram representation of the dominant buy or sell activity, smoothed over 5 different periods to reflect momentum shifts and enhance clarity.
Core Methodology
1. Multi-Timeframe Volume Analysis
This indicator leverages data from five different lower timeframes, each chosen dynamically based on the current chart's timeframe. By aggregating and normalizing these granular data points, the indicator captures subtle shifts in buy and sell volume that might otherwise go unnoticed. This multi-timeframe approach allows for a more detailed and accurate representation of market activity.
2. Data Normalization
Normalization is a critical component of this indicator. It ensures that volume data from lower timeframes is scaled appropriately to match the total volume of the current chart's timeframe. This step eliminates discrepancies caused by varying time intervals, providing a more meaningful comparison of volume trends across different periods.
3. Smoothing for Momentum Representation
The indicator employs five customizable smoothing factors to smooth out noisy volume data.
Each smoothing factor is distinctly color-coded in the histogram and table for intuitive analysis, helping traders quickly identify prevailing trends.
Features and Benefits
➖Customizable Smoothing Factors: Choose from five different smoothing factors, each with its unique settings for line styles, colors, and extensions.
➖Normalized Buy and Sell Volume: Displays normalized buy and sell volumes as a percentage of total activity, aiding in quick decision-making.
➖Visual Cues: Color-coded columns and labels help identify dominant trends at a glance, with high-opacity fills for visual clarity.
➖Dynamic Table: A built-in table summarizes smoothed volume data for each smoothing factor, offering a quick overview of bullish and bearish percentages.
➖Momentum Signals: Detect significant shifts in volume momentum with visually distinct alerts for high relative volumes, including special symbols like "⚡" and "🔥."
Practical Applications
➖Identifying Market Sentiment: Quickly determine whether the market is dominated by buyers or sellers at any given moment.
➖Spotting Reversals: Use momentum shifts in smoothed volume to anticipate potential trend reversals.
➖Enhancing Entry and Exit Points: Combine this indicator with other technical tools to refine entry and exit points in your trading strategy.
Why This Indicator Stands Out
Many existing volume indicators focus solely on raw or single-timeframe data, which can be misleading or incomplete. This indicator sets itself apart by:
Utilizing multi-timeframe data to provide a holistic view of market activity.
Applying robust normalization techniques to ensure data consistency.
Offering advanced smoothing options to emphasize actionable momentum signals.
This unique combination of features makes it an indispensable tool for traders seeking to enhance their market analysis and decision-making process.
As always, by combining the Smoothed Volume Pro with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
Here's an additional visual representation using the plot fills:
Machine Learning RSI [BackQuant]Machine Learning RSI
The Machine Learning RSI is a cutting-edge trading indicator that combines the power of Relative Strength Index (RSI) with Machine Learning (ML) clustering techniques to dynamically determine overbought and oversold thresholds. This advanced indicator adapts to market conditions in real-time, offering traders a robust tool for identifying optimal entry and exit points with increased precision.
Core Concept: Relative Strength Index (RSI)
The RSI is a well-known momentum oscillator that measures the speed and change of price movements, oscillating between 0 and 100. Typically, RSI values above 70 are considered overbought, and values below 30 are considered oversold. However, static thresholds may not be effective in all market conditions.
This script enhances the RSI by integrating a dynamic thresholding system powered by Machine Learning clustering, allowing it to adapt thresholds based on historical RSI behavior and market context.
Machine Learning Clustering for Dynamic Thresholds
The Machine Learning (ML) component uses clustering to calculate dynamic thresholds for overbought and oversold levels. Instead of relying on fixed RSI levels, this indicator clusters historical RSI values into three groups using a percentile-based initialization and iterative optimization:
Cluster 1: Represents lower RSI values (typically associated with oversold conditions).
Cluster 2: Represents mid-range RSI values.
Cluster 3: Represents higher RSI values (typically associated with overbought conditions).
Dynamic thresholds are determined as follows:
Long Threshold: The upper centroid value of Cluster 3.
Short Threshold: The lower centroid value of Cluster 1.
This approach ensures that the indicator adapts to the current market regime, providing more accurate signals in volatile or trending conditions.
Smoothing Options for RSI
To further enhance the effectiveness of the RSI, this script allows traders to apply various smoothing methods to the RSI calculation, including:
Simple Moving Average (SMA)
Exponential Moving Average (EMA)
Weighted Moving Average (WMA)
Hull Moving Average (HMA)
Linear Regression (LINREG)
Double Exponential Moving Average (DEMA)
Triple Exponential Moving Average (TEMA)
Adaptive Linear Moving Average (ALMA)
T3 Moving Average
Traders can select their preferred smoothing method and adjust the smoothing period to suit their trading style and market conditions. The option to smooth the RSI reduces noise and makes the indicator more reliable for detecting trends and reversals.
Long and Short Signals
The indicator generates long and short signals based on the relationship between the RSI value and the dynamic thresholds:
Long Signals: Triggered when the RSI crosses above the long threshold, signaling bullish momentum.
Short Signals: Triggered when the RSI falls below the short threshold, signaling bearish momentum.
These signals are dynamically adjusted to reflect real-time market conditions, making them more robust than static RSI signals.
Visualization and Clustering Insights
The Machine Learning RSI provides an intuitive and visually rich interface, including:
RSI Line: Plotted in real-time, color-coded based on its position relative to the dynamic thresholds (green for long, red for short, gray for neutral).
Dynamic Threshold Lines: The script plots the long and short thresholds calculated by the ML clustering process, providing a clear visual reference for overbought and oversold levels.
Cluster Plots: Each RSI cluster is displayed with distinct colors (green, orange, and red) to give traders insights into how RSI values are grouped and how the dynamic thresholds are derived.
Customization Options
The Machine Learning RSI is highly customizable, allowing traders to tailor the indicator to their preferences:
RSI Settings : Adjust the RSI length, source price, and smoothing method to match your trading strategy.
Threshold Settings : Define the range and step size for clustering thresholds, allowing you to fine-tune the clustering process.
Optimization Settings : Control the performance memory, maximum clustering steps, and maximum data points for ML calculations to ensure optimal performance.
UI Settings : Customize the appearance of the RSI plot, dynamic thresholds, and cluster plots. Traders can also enable or disable candle coloring based on trend direction.
Alerts and Automation
To assist traders in staying on top of market movements, the script includes alert conditions for key events:
Long Signal: When the RSI crosses above the long threshold.
Short Signal: When the RSI crosses below the short threshold.
These alerts can be configured to notify traders in real-time, enabling timely decisions without constant chart monitoring.
Trading Applications
The Machine Learning RSI is versatile and can be applied to various trading strategies, including:
Trend Following: By dynamically adjusting thresholds, this indicator is effective in identifying and following trends in real-time.
Reversal Trading: The ML clustering process helps identify extreme RSI levels, offering reliable signals for reversals.
Range-Bound Trading: The dynamic thresholds adapt to market conditions, making the indicator suitable for trading in sideways markets where static thresholds often fail.
Final Thoughts
The Machine Learning RSI represents a significant advancement in RSI-based trading indicators. By integrating Machine Learning clustering techniques, this script overcomes the limitations of static thresholds, providing dynamic, adaptive signals that respond to market conditions in real-time. With its robust visualization, customizable settings, and alert capabilities, this indicator is a powerful tool for traders seeking to enhance their momentum analysis and improve decision-making.
As always, thorough backtesting and integration into a broader trading strategy are recommended to maximize the effectiveness!
RSI Trend Following StrategyOverview
The RSI Trend Following Strategy utilizes Relative Strength Index (RSI) to enter the trade for the potential trend continuation. It uses Stochastic indicator to check is the price is not in overbought territory and the MACD to measure the current price momentum. Moreover, it uses the 200-period EMA to filter the counter trend trades with the higher probability. The strategy opens only long trades.
Unique Features
Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Two layers trade filtering system: Strategy utilizes MACD and Stochastic indicators measure the current momentum and overbought condition and use 200-period EMA to filter trades against major trend.
Trailing take profit level: After reaching the trailing profit activation level script activates the trailing of long trade using EMA. More information in methodology.
Wide opportunities for strategy optimization: Flexible strategy settings allows users to optimize the strategy entries and exits for chosen trading pair and time frame.
Methodology
The strategy opens long trade when the following price met the conditions:
RSI is above 50 level.
MACD line shall be above the signal line
Both lines of Stochastic shall be not higher than 80 (overbought territory)
Candle’s low shall be above the 200 period EMA
When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility.
At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with trailing EMA(by default = 20 period). If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”.
Strategy settings
In the inputs window user can setup the following strategy settings:
ATR Stop Loss (by default = 1.75)
ATR Trailing Profit Activation Level (by default = 2.25)
MACD Fast Length (by default = 12, period of averaging fast MACD line)
MACD Fast Length (by default = 26, period of averaging slow MACD line)
MACD Signal Smoothing (by default = 9, period of smoothing MACD signal line)
Oscillator MA Type (by default = EMA, available options: SMA, EMA)
Signal Line MA Type (by default = EMA, available options: SMA, EMA)
RSI Length (by default = 14, period for RSI calculation)
Trailing EMA Length (by default = 20, period for EMA, which shall be broken close the trade after trailing profit activation)
Justification of Methodology
This trading strategy is designed to leverage a combination of technical indicators—Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Stochastic Oscillator, and the 200-period Exponential Moving Average (EMA)—to determine optimal entry points for long trades. Additionally, the strategy uses the Average True Range (ATR) for dynamic risk management to adapt to varying market conditions. Let's look in details for which purpose each indicator is used for and why it is used in this combination.
Relative Strength Index (RSI) is a momentum indicator used in technical analysis to measure the speed and change of price movements in a financial market. It helps traders identify whether an asset is potentially overbought (overvalued) or oversold (undervalued), which can indicate a potential reversal or continuation of the current trend.
How RSI Works? RSI tracks the strength of recent price changes. It compares the average gains and losses over a specific period (usually 14 periods) to assess the momentum of an asset. Average gain is the average of all positive price changes over the chosen period. It reflects how much the price has typically increased during upward movements. Average loss is the average of all negative price changes over the same period. It reflects how much the price has typically decreased during downward movements.
RSI calculates these average gains and losses and compares them to create a value between 0 and 100. If the RSI value is above 70, the asset is generally considered overbought, meaning it might be due for a price correction or reversal downward. Conversely, if the RSI value is below 30, the asset is considered oversold, suggesting it could be poised for an upward reversal or recovery. RSI is a useful tool for traders to determine market conditions and make informed decisions about entering or exiting trades based on the perceived strength or weakness of an asset's price movements.
This strategy uses RSI as a short-term trend approximation. If RSI crosses over 50 it means that there is a high probability of short-term trend change from downtrend to uptrend. Therefore RSI above 50 is our first trend filter to look for a long position.
The MACD (Moving Average Convergence Divergence) is a popular momentum and trend-following indicator used in technical analysis. It helps traders identify changes in the strength, direction, momentum, and duration of a trend in an asset's price.
The MACD consists of three components:
MACD Line: This is the difference between a short-term Exponential Moving Average (EMA) and a long-term EMA, typically calculated as: MACD Line = 12 period EMA − 26 period EMA
Signal Line: This is a 9-period EMA of the MACD Line, which helps to identify buy or sell signals. When the MACD Line crosses above the Signal Line, it can be a bullish signal (suggesting a buy); when it crosses below, it can be a bearish signal (suggesting a sell).
Histogram: The histogram shows the difference between the MACD Line and the Signal Line, visually representing the momentum of the trend. Positive histogram values indicate increasing bullish momentum, while negative values indicate increasing bearish momentum.
This strategy uses MACD as a second short-term trend filter. When MACD line crossed over the signal line there is a high probability that uptrend has been started. Therefore MACD line above signal line is our additional short-term trend filter. In conjunction with RSI it decreases probability of following false trend change signals.
The Stochastic Indicator is a momentum oscillator that compares a security's closing price to its price range over a specific period. It's used to identify overbought and oversold conditions. The indicator ranges from 0 to 100, with readings above 80 indicating overbought conditions and readings below 20 indicating oversold conditions.
It consists of two lines:
%K: The main line, calculated using the formula (CurrentClose−LowestLow)/(HighestHigh−LowestLow)×100 . Highest and lowest price taken for 14 periods.
%D: A smoothed moving average of %K, often used as a signal line.
This strategy uses stochastic to define the overbought conditions. The logic here is the following: we want to avoid long trades in the overbought territory, because when indicator reaches it there is a high probability that the potential move is gonna be restricted.
The 200-period EMA is a widely recognized indicator for identifying the long-term trend direction. The strategy only trades in the direction of this primary trend to increase the probability of successful trades. For instance, when the price is above the 200 EMA, only long trades are considered, aligning with the overarching trend direction.
Therefore, strategy uses combination of RSI and MACD to increase the probability that price now is in short-term uptrend, Stochastic helps to avoid the trades in the overbought (>80) territory. To increase the probability of opening long trades in the direction of a main trend and avoid local bounces we use 200 period EMA.
ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.08.01. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 30%
Maximum Single Position Loss: -3.94%
Maximum Single Profit: +15.78%
Net Profit: +1359.21 USDT (+13.59%)
Total Trades: 111 (36.04% win rate)
Profit Factor: 1.413
Maximum Accumulated Loss: 625.02 USDT (-5.85%)
Average Profit per Trade: 12.25 USDT (+0.40%)
Average Trade Duration: 40 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 2h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Uptrick: TimeFrame Trends: Performance & Sentiment Indicator### **Uptrick: TimeFrame Trends: Performance & Sentiment Indicator (TFT) - In-Depth Explanation**
#### **Overview**
The **Uptrick: TimeFrame Trends: Performance & Sentiment Indicator (TFT)** is a sophisticated trading tool designed to provide traders with a comprehensive view of market trends across multiple timeframes, combined with a sentiment gauge through the Relative Strength Index (RSI). This indicator offers a unique blend of performance analysis, sentiment evaluation, and visual signal generation, making it an invaluable resource for traders who seek to understand both the macro and micro trends within a financial instrument.
#### **Purpose**
The primary purpose of the TFT indicator is to empower traders with the ability to assess the performance of an asset over various timeframes while simultaneously gauging market sentiment through the RSI. By analyzing price changes over periods ranging from one week to one year, and complementing this with sentiment signals, TFT enables traders to make informed decisions based on a well-rounded analysis of historical price performance and current market conditions.
#### **Key Components and Features**
1. **Multi-Timeframe Performance Analysis:**
- **Performance Lookback Periods:**
- The TFT indicator calculates the percentage price change over several predefined timeframes: 7 days (1 week), 14 days (2 weeks), 30 days (1 month), 180 days (6 months), and 365 days (1 year). These timeframes provide a layered view of how an asset has performed over short, medium, and long-term periods.
- **Percentage Change Calculation:**
- The indicator computes the percentage change for each timeframe by comparing the current closing price to the closing price at the start of each period. This gives traders insight into the strength and direction of the trend over different periods, helping them identify consistent trends or potential reversals.
2. **Sentiment Analysis Using RSI:**
- **Relative Strength Index (RSI):**
- RSI is a widely-used momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify overbought or oversold conditions. In TFT, the RSI is calculated using a 14-period lookback, which is standard for most RSI implementations.
- **RSI Smoothing with EMA:**
- To refine the RSI signal and reduce noise, TFT applies a 10-period Exponential Moving Average (EMA) to the RSI values. This smoothed RSI is then used to generate buy, sell, and neutral signals based on its position relative to the 50 level:
- **Buy Signal:** Triggered when the smoothed RSI crosses above 50, indicating bullish sentiment.
- **Sell Signal:** Triggered when the smoothed RSI crosses below 50, indicating bearish sentiment.
- **Neutral Signal:** Triggered when the smoothed RSI equals 50, suggesting indecision or a balanced market.
3. **Visual Signal Generation:**
- **Signal Plots:**
- TFT provides clear visual cues directly on the price chart by plotting shapes at the points where buy, sell, or neutral signals are generated. These shapes are color-coded (green for buy, red for sell, yellow for neutral) and are positioned below or above the price bars for easy identification.
- **First Occurrence Trigger:**
- To avoid clutter and focus on significant market shifts, TFT only triggers the first occurrence of each signal type. This feature helps traders concentrate on the most relevant signals without being overwhelmed by repeated alerts.
4. **Customizable Performance & Sentiment Table:**
- **Table Display:**
- The TFT indicator includes a customizable table that displays the calculated percentage changes for each timeframe. This table is positioned on the chart according to user preference (top-left, top-right, bottom-left, bottom-right) and provides a quick reference to the asset’s performance across multiple periods.
- **Dynamic Text Color:**
- To enhance readability and provide immediate visual feedback, the text color in the table changes based on the direction of the percentage change: green for positive (upward movement) and red for negative (downward movement). This color-coding helps traders quickly assess whether the asset is in an uptrend or downtrend for each period.
- **Customizable Font Size:**
- Traders can adjust the font size of the table to fit their chart layout and personal preferences, ensuring that the information is accessible without being intrusive.
5. **Flexibility and Customization:**
- **Lookback Period Customization:**
- While the default lookback periods are set for common trading intervals (7 days, 14 days, etc.), these can be adjusted to match different trading strategies or market conditions. This flexibility allows traders to tailor the indicator to focus on the timeframes most relevant to their analysis.
- **RSI and EMA Settings:**
- The length of the RSI calculation and the smoothing EMA can also be customized. This is particularly useful for traders who prefer shorter or longer periods for their momentum analysis, allowing them to fine-tune the sensitivity of the indicator.
- **Table Position and Appearance:**
- The table’s position on the chart, along with its font size and colors, is fully customizable. This ensures that the indicator can be integrated seamlessly into any chart setup without obstructing key price data.
#### **Use Cases and Applications**
1. **Trend Identification and Confirmation:**
- **Short-Term Traders:**
- Traders focused on short-term movements can use the 7-day and 14-day performance metrics to identify recent trends and momentum shifts. The RSI signals provide additional confirmation, helping traders enter or exit positions based on the latest market sentiment.
- **Swing Traders:**
- For those holding positions over days to weeks, the 30-day and 180-day performance data are particularly useful. These metrics highlight medium-term trends, and when combined with RSI signals, they provide a robust framework for swing trading strategies.
- **Long-Term Investors:**
- Long-term investors can benefit from the 1-year performance data to gauge the overall health and direction of an asset. The indicator’s ability to track performance across different periods helps in identifying long-term trends and potential reversal points.
2. **Sentiment Analysis and Market Timing:**
- **Market Sentiment Tracking:**
- By using RSI in conjunction with performance metrics, TFT provides a clear picture of market sentiment. Traders can use this information to time their entries and exits more effectively, aligning their trades with periods of strong bullish or bearish sentiment.
- **Avoiding False Signals:**
- The smoothing of RSI helps reduce noise and avoid false signals that are common in volatile markets. This makes the TFT indicator a reliable tool for identifying true market trends and avoiding whipsaws that can lead to losses.
3. **Comprehensive Market Analysis:**
- **Multi-Timeframe Analysis:**
- TFT’s ability to analyze multiple timeframes simultaneously makes it an excellent tool for comprehensive market analysis. Traders can compare short-term and long-term performance to understand the broader market context, making it easier to align their trading strategies with the overall trend.
- **Performance Benchmarking:**
- The percentage change metrics provide a clear benchmark for an asset’s performance over time. This information can be used to compare the asset against broader market indices or other assets, helping traders make more informed decisions about where to allocate their capital.
4. **Custom Strategy Development:**
- **Tailoring to Specific Markets:**
- TFT can be customized to suit different markets, whether it’s stocks, forex, commodities, or cryptocurrencies. For instance, traders in volatile markets may opt for shorter lookback periods and more sensitive RSI settings, while those in stable markets may prefer longer periods for a smoother analysis.
- **Integrating with Other Indicators:**
- TFT can be used alongside other technical indicators to create a more comprehensive trading strategy. For example, combining TFT with moving averages, Bollinger Bands, or MACD can provide additional layers of confirmation and reduce the likelihood of false signals.
#### **Best Practices for Using TFT**
- **Regularly Adjust Lookback Periods:**
- Depending on the market conditions and the asset being traded, it’s important to regularly review and adjust the lookback periods for the performance metrics. This ensures that the indicator remains relevant and responsive to current market trends.
- **Combine with Volume Analysis:**
- While TFT provides a solid foundation for trend and sentiment analysis, combining it with volume indicators can further enhance its effectiveness. Volume can confirm the strength of a trend or signal potential reversals when divergences occur.
- **Use RSI with Other Momentum Indicators:**
- Although RSI is a powerful tool on its own, using it alongside other momentum indicators like Stochastic Oscillator or MACD can provide additional confirmation and help refine entry and exit points.
- **Customize Table Settings for Clarity:**
- Ensure that the performance table is positioned and sized appropriately on the chart. It should be easily readable without obstructing important price data. Adjust the text size and colors as needed to maintain clarity.
- **Monitor Multiple Timeframes:**
- Utilize the multi-timeframe analysis feature of TFT to monitor trends across different periods. This helps in identifying the dominant trend and avoiding trades that go against the broader market direction.
#### **Conclusion**
The **Uptrick: TimeFrame Trends: Performance & Sentiment Indicator (TFT)** is a comprehensive and versatile tool that combines the power of multi-timeframe performance analysis with sentiment gauging through RSI. Its ability to customize and adapt to various trading strategies and markets makes it a valuable asset for traders at all levels. By offering a clear visual representation of trends and market sentiment, TFT empowers traders to make more informed and confident trading decisions, whether they are focusing on short-term price movements or long-term investment opportunities. With its deep integration of performance metrics and sentiment analysis, TFT stands out as a must-have indicator for any trader looking to gain a holistic understanding of market dynamics.
ADV_RSIADV_RSI - Advanced Relative Strength Index
Description: The ADV_RSI indicator is an advanced and mutated version of the classic Relative Strength Index (RSI), enhanced with multiple moving averages and a dynamic color-coding system. It provides traders with deeper insights into market momentum and potential trend reversals by incorporating two different moving averages of the RSI (21, and 50 periods). The indicator helps to visualize overbought and oversold conditions more effectively and offers a clear, color-coded representation of the RSI value relative to key thresholds.
Features:
RSI Calculation: The core of the indicator is based on the traditional RSI, calculated over a customizable period.
Multiple Moving Averages: The script includes two RSI moving averages (21, and 50 periods) to help identify trend strength and potential reversal points.
Dynamic RSI Color Coding: The RSI line is color-coded based on its value, ranging from red for overbought conditions to aqua for oversold conditions. This makes it easier to interpret the market's momentum at a glance.
Threshold Bands: The indicator includes horizontal threshold lines at key RSI levels (20, 30, 40, 50, 60, 70, 80), with shaded areas between them, providing a visual aid to quickly identify overbought and oversold zones.
How to Use:
The RSI line fluctuates between 0 and 100, with traditional overbought and oversold levels set at 70 and 30, respectively.
When the RSI crosses above the 70 level, it may indicate overbought conditions, signaling a potential selling opportunity.
When the RSI falls below the 30 level, it may indicate oversold conditions, signaling a potential buying opportunity.
The included moving averages of the RSI can help confirm trend direction and potential reversals.
The color coding of the RSI line provides a quick visual cue for momentum changes.
Ideal For:
Traders looking for a more nuanced understanding of market momentum.
Those who prefer visual aids for quick decision-making in identifying overbought and oversold conditions.
Traders who utilize multiple timeframes and need a comprehensive RSI tool for better accuracy in their analysis.
DSL Oscillator [BigBeluga]DSL Oscillator BigBeluga
The DSL (Discontinued Signal Lines) Oscillator is an advanced technical analysis tool that combines elements of the Relative Strength Index (RSI), Discontinued Signal Lines, and Zero-Lag Exponential Moving Average (ZLEMA). This versatile indicator is designed to help traders identify trend direction, momentum, and potential reversal points in the market.
What are Discontinued Signal Lines (DSL)?
Discontinued Signal Lines are an extension of the traditional signal line concept used in many indicators. While a standard signal line compares an indicator's value to its smoothed (slightly lagging) state, DSL takes this idea further by using multiple adaptive lines that respond to the indicator's current value. This approach provides a more nuanced view of the indicator's state and momentum, making it easier to determine trends and desired states of the indicator.
🔵 KEY FEATURES
● Discontinued Signal Lines (DSL)
Uses multiple adaptive lines that respond to the indicator's value
Provides a more nuanced view of the indicator's state and momentum
Helps determine trends and desired states of the indicator more effectively
Available in "Fast" and "Slow" modes for different responsiveness
Acts as dynamic support and resistance levels for the oscillator
● DSL Oscillator
Based on a combination of RSI and Discontinued Signal Lines
// Discontinued Signal Lines
dsl_lines(src, length)=>
UP = 0.
DN = 0.
UP := (src > ta.sma(src, length)) ? nz(UP ) + dsl_mode / length * (src - nz(UP )) : nz(UP )
DN := (src < ta.sma(src, length)) ? nz(DN ) + dsl_mode / length * (src - nz(DN )) : nz(DN )
Smoothed using Zero-Lag Exponential Moving Average for reduced lag
// Zero-Lag Exponential Moving Average function
zlema(src, length) =>
lag = math.floor((length - 1) / 2)
ema_data = 2 * src - src
ema2 = ta.ema(ema_data, length)
ema2
Oscillates between 0 and 100
Color-coded for easy interpretation of market conditions
● Signal Generation
Generates buy signals when the oscillator crosses above the lower DSL line below 50
Generates sell signals when the oscillator crosses below the upper DSL line above 50
Signals are visualized on both the oscillator and the main chart
● Visual Cues
Background color changes on signal occurrences for easy identification
Candles on the main chart are colored based on the latest signal
Oscillator line color changes based on its position relative to the DSL lines
🔵 HOW TO USE
● Trend Identification
Use the color and position of the DSL Oscillator relative to its Discontinued Signal Lines to determine the overall market trend
● Entry Signals
Look for buy signals (green circles) when the oscillator crosses above the lower DSL line
Look for sell signals (blue circles) when the oscillator crosses below the upper DSL line
Confirm signals with the triangles on the main chart and background color changes
● Exit Signals
Consider exiting long positions on exit signals and short positions on Entery signals
Watch for the oscillator crossing back between the DSL lines as a potential early exit signal
● Momentum Analysis
Strong momentum is indicated when the oscillator moves rapidly towards extremes and away from the DSL lines
Weakening momentum can be spotted when the oscillator struggles to reach new highs or lows, or starts converging with the DSL lines
The space between the DSL lines can indicate potential momentum strength - wider gaps suggest stronger trends
● Confirmation
Use the DSL lines as dynamic support/resistance levels for the oscillator
Look for convergence between oscillator signals and price action on the main chart
Combine signals with other technical indicators or chart patterns for stronger confirmation
🔵 CUSTOMIZATION
The DSL Oscillator offers several customization options:
Adjust the main calculation length for the DSL lines
Choose between "Fast" and "Slow" modes for the DSL lines calculation
By fine-tuning these settings, traders can adapt the DSL Oscillator to various market conditions and personal trading strategies.
The DSL Oscillator provides a multi-faceted approach to market analysis, combining trend identification, momentum assessment, and signal generation in one comprehensive tool. Its dynamic nature and visual cues make it suitable for both novice and experienced traders across various timeframes and markets. The integration of RSI, Discontinued Signal Lines, and ZLEMA offers traders a sophisticated yet intuitive tool to inform their trading decisions.
The use of Discontinued Signal Lines sets this oscillator apart from traditional indicators by providing a more adaptive and nuanced view of market conditions. This can potentially lead to more accurate trend identification and signal generation, especially in markets with varying volatility.
Traders can use the DSL Oscillator to identify trends, spot potential reversals, and gauge market momentum. The combination of the oscillator, dynamic signal lines, and clear visual signals provides a holistic view of market conditions. As with all technical indicators, it's recommended to use the DSL Oscillator in conjunction with other forms of analysis and within the context of a well-defined trading strategy.
AT RatioAT Ratio
This indicator plots a ratio chart of 2 symbols, calculated as symbol1/symbol2.
The current chart symbol is used as symbol1.
A ratio chart allows to determine the relative strength of an asset compared to another asset.
It can be used for example to compare two stocks or a stock to its benchmark index, thus showing,
- if a stock has strength on its own (climbing ratio chart)
- if a stock just moves with the index (sideways ratio chart)
- if a stock is weaker than the index (falling ratio chart)
Inputs:
Style:
Plain: Only the ratio chart is plotted
MAs: Additional Moving Averages of the ratio chart are plotted
Perdiod Long: The period for the long MA
Perdiod Short: The period for the long MA
MA Type Long:
Simple: A simple MA is used
Expo: An exponential MA is used
MA Type Short:
Simple: A simple MA is used
Expo: An exponential MA is used
Ratio Symbol: The symbol to be used for symbol2
Factor: A factor the ratio value is multiplied by
Open-source script
Market Cipher B by WeloTradesMarket Cipher B by WeloTrades: Detailed Script Description
//Overview//
"Market Cipher B by WeloTrades" is an advanced trading tool that combines multiple technical indicators to provide a comprehensive market analysis framework. By integrating WaveTrend, RSI, and MoneyFlow indicators, this script helps traders to better identify market trends, potential reversals, and trading opportunities. The script is designed to offer a holistic view of the market by combining the strengths of these individual indicators.
//Key Features and Originality//
WaveTrend Analysis:
WaveTrend Channel (WT1 and WT2): The core of this script is the WaveTrend indicator, which uses the smoothed average of typical price to identify overbought and oversold conditions. WT1 and WT2 are calculated to track market momentum and cyclical price movements.
Major Divergences (🐮/🐻): The script detects and highlights major bullish and bearish divergences automatically, providing traders with visual cues for potential reversals. This helps in making informed decisions based on divergence patterns.
Relative Strength Index (RSI):
RSI Levels: RSI is used to measure the speed and change of price movements, with specific levels indicating overbought and oversold conditions.
Customizable Levels: Users can configure the overbought and oversold thresholds, allowing for a tailored analysis based on individual trading strategies.
MoneyFlow Indicator:
Fast and Slow MoneyFlow: This indicator tracks the flow of capital into and out of the market, offering insights into the underlying market strength. It includes configurable periods and multipliers for both fast and slow MoneyFlow.
Vertical Positioning: The script allows users to adjust the vertical position of MoneyFlow plots to maintain a clear and uncluttered chart.
Stochastic RSI:
Stochastic RSI Levels: This combines the RSI and Stochastic indicators to provide a momentum oscillator that is sensitive to price changes. It is used to identify overbought and oversold conditions within a specified period.
Customizable Levels: Traders can set specific levels for more precise analysis.
//How It Works//
The script integrates these indicators through advanced algorithms, creating a synergistic effect that enhances market analysis. Here’s a detailed explanation of the underlying concepts and calculations:
WaveTrend Indicator:
Calculation: WaveTrend is based on the typical price (average of high, low, and close) smoothed over a specified channel length. WT1 and WT2 are derived from this typical price and further smoothed using the Average Channel Length. The difference between WT1 and WT2 indicates momentum, helping to identify cyclical market trends.
RSI (Relative Strength Index):
Calculation: RSI calculates the average gains and losses over a specified period to measure the speed and change of price movements. It oscillates between 0 and 100, with levels set to identify overbought (>70) and oversold (<30) conditions.
MoneyFlow Indicator:
Calculation: MoneyFlow is derived by multiplying price changes by volume and smoothing the results over specified periods. Fast MoneyFlow reacts quickly to price changes, while Slow MoneyFlow offers a broader view of capital movement trends.
Stochastic RSI:
Calculation: Stochastic RSI is computed by applying the Stochastic formula to RSI values, which highlights the RSI’s relative position within its range over a given period. This helps in identifying momentum shifts more precisely.
//How to Use the Script//
Display Settings:
Users can enable or disable various components like WaveTrend OB & OS levels, MoneyFlow plots, and divergence alerts through checkboxes.
Example: Turn on "Show Major Divergence" to see major bullish and bearish divergence signals directly on the chart.
Adjust Channel Settings:
Customize the data source, channel length, and smoothing periods in the "WaveTrend Channel SETTINGS" group.
Example: Set the "Channel Length" to 10 for a more responsive WaveTrend line or adjust the "Average Channel Length" to 21 for smoother trends.
Set Overbought & Oversold Levels:
Configure levels for WaveTrend, RSI, and Stochastic RSI in their respective settings groups.
Example: Set the WaveTrend Overbought Level to 60 and Oversold Level to -60 to define critical thresholds.
Money Flow Settings:
Adjust the periods and multipliers for Fast and Slow MoneyFlow indicators, and set their vertical positions for better visualization.
Example: Set the Fast Money Flow Period to 9 and Slow Money Flow Period to 12 to capture both short-term and long-term capital movements.
//Justification for Combining Indicators//
Enhanced Market Analysis:
Combining WaveTrend, RSI, and MoneyFlow provides a more comprehensive view of market conditions. Each indicator brings a unique perspective, making the analysis more robust.
WaveTrend identifies cyclical trends, RSI measures momentum, and MoneyFlow tracks capital movement. Together, they provide a multi-dimensional analysis of the market.
Improved Decision-Making:
By integrating these indicators, the script helps traders make more informed decisions. For example, a bullish divergence detected by WaveTrend might be validated by an RSI moving out of oversold territory and supported by increasing MoneyFlow.
Customization and Flexibility:
The script offers extensive customization options, allowing traders to tailor it to their specific needs and strategies. This flexibility makes it suitable for different trading styles and timeframes.
//Conclusion//
The indicator stands out due to its innovative combination of WaveTrend, RSI, and MoneyFlow indicators, offering a well-rounded tool for market analysis. By understanding how each component works and how they complement each other, traders can leverage this script to enhance their market analysis and trading strategies, making more informed and confident decisions.
Remember to always backtest the indicator first before implying it to your strategy.
Correlated Movement Indicator V2Hello!
This script was briefly known as as Bing Chilling. I converted this to Pine Script V5 to ensure compliance with publishing requirements.
This script tracks RSI and inserts an indicator when correlated movement is detected. Proximity of current tick to indicator origin tick determines freshness of the indicator.
DO NOT sit on the indicator for a long time. This is not a magic solution. It is very accurate but, not always precise. Ensure that you use other factors to determine the relevance of the indicator on current tick. This script can technically be used on any security/commodity/currency. Your Mileage May Vary! Proceed with caution as always.
General Workflow:
Look at proximity to where the flag is placed, general volatility, and other indicators and you can potentially determine the direction/strength. Not always the duration. The indicator could be for 30s, 1hr, 1 day, or whatever the market feels like. It depends on precision/quantity of pricing data. ex. 30min tick rate pricing vs. 1 day tick rate pricing will change the scope.
So if the time scope shows all sell from 1 week -> 3 months except for a couple recent buy indicators on the day, then it may be a bad call long term but, might be good for a short term play. Very volatile. Careful.
If it was all green with long term indicators such as 1 month -> 1 year, then it looks more like a buy and forget type strategy.
If it's all green with a recent red then you can try and figure out what the relative the bottom is so you can buy for long term at a slightly more favorable price.
Flip all that for shorting. I highly recommend AGAINST shorting since the stakes are very different and usually involves taking out what is essentially a loan to bet against the market.
This script pairs nicely with the top pick indicator when you search "Heiken Ashi". I use that to determine peaks and pits to better guess a good time to open a position.
This should be used alongside other indicators. Good for short term day trading and long term hold and forget. (Don't actually forget. Set some alerts periodically.)
Please use caution. Please do not take what I've said here as fact and diamond pepe hands bet all on green to the moon. This, like all the other strategies and indicators on this site, are used as tools to inform you about potential and to categorize/depict data in a more human recognizable way. If you have access to a paper account try there first.
Happy trading!
- Zetsu
Percent Rank HistogramThis Pine script indicator is designed to create a visual representation of the percent rank for multiple financial instruments. Here's a breakdown of its key features:
Percent Rank Calculation:
The core functionality of this Pine script indicator revolves around the calculation of the percent rank for each selected financial instrument.
The percent rank is a statistical measure that indicates the percentage of historical data points that are less than or equal to the current value in a given series.
Symbol Selection:
The script allows the user to select up to 10 financial instruments (tickers) for analysis. The default symbols include various cryptocurrencies such as BTCUSD, ETHUSD etc., and TOTAL market cap at ticker 1, to show overal trend of crypto market.
(Top 9 Coins by market cap).
Columns and Colors:
The script visually represents the percent rank using columns based on lines.
The color of each column is determined by a gradient from red to green based on the calculated percent rank, providing a quick visual indication of the instrument's relative performance.
BTC Trending Up while other coins are underperformance:
Labels:
Labels are displayed on the chart, indicating the symbol name and the corresponding percent rank percentage.
The labels include directional arrows (▲ or ▼) to denote whether the percent rank is increasing or decreasing.
Customization:
Users can customize parameters such as the percent rank length and column width to adapt the indicator to their specific preferences, or select needed assets to compare them to each other.
Chart Desk and Scales:
The script includes the visualization of a chart desk with scale lines to provide additional context to the chart. When Percent Rank above middle scale line (50) usually it signaling about asset trending up and below 50 asset trending down.
Mozilla Public License:
The script is subject to the terms of the Mozilla Public License 2.0.
This indicator is useful for traders and analysts interested in visually assessing the percent rank of multiple financial instruments simultaneously, helping them identify potential opportunities or trends in the market.
Zaree - FX Index Spread IndicatorDescription:
The "Zaree - FX Index Spread Indicator" (FISI) is a powerful technical analysis tool designed to provide insights into the spread between two selected currency indices. By calculating and visualizing the percentage difference between the values of a primary and a secondary currency index, traders can gain valuable information about potential market dynamics and trends.
Details of the Indicator:
The indicator calculates the spread percentage between a primary and a secondary currency index, allowing traders to understand the relative strength of the two indices.
Traders can choose from a list of currency indices to use as the primary and secondary indices for comparison.
The indicator offers multiple methods for setting thresholds to identify potential trading opportunities, including standard deviations, percentile ranks, historical highs and lows, and fixed thresholds.
Users can customize the length of the calculation period and choose whether to display the primary index, secondary index, and the spread percentage on the chart.
Shaded areas on the chart indicate regions where the spread percentage is above or below predefined thresholds, helping traders identify potential trading signals.
How to Use the Indicator:
Select the primary and secondary currency indices you want to compare from the provided dropdown menus. These indices will be used to calculate the spread percentage.
Choose the method for setting thresholds by selecting one of the options: "Standard Deviations," "Percentile Ranks," "Historical Highs and Lows," or "Fixed Thresholds."
Depending on the selected method, configure the relevant threshold parameters, such as historical threshold percentage, upper and lower fixed thresholds, upper and lower percentile thresholds, or the standard deviation multiplier.
Choose whether to visualize the primary index, secondary index, and spread percentage on the chart by enabling the respective options.
Observe the chart to identify potential trading signals based on the interactions between the spread percentage and the predefined thresholds.
Example of Usage:
Suppose you're interested in trading currency pairs involving the US Dollar (USD) and Euro (EUR), and you want to monitor the spread between the USD Index (USDINX) and the EUR Index (EURINX). Here's how you can use the FISI indicator:
Select "USDINX" as the primary index and "EURINX" as the secondary index.
Choose the method for setting thresholds based on your strategy. For instance, you can select "Standard Deviations" and adjust the standard deviation multiplier.
Enable the visualization of the primary index, secondary index, and spread percentage on the chart.
Observe the shaded areas on the chart. If the spread percentage crosses above the upper threshold, it may indicate a potential market overextension. Conversely, if the spread percentage crosses below the lower threshold, it could suggest an oversold market condition.
Look for instances where the spread percentage approaches or crosses the predefined thresholds. Consider these instances as potential entry or exit points for your trades.
Remember that the FISI indicator is a tool to assist you in your analysis. It's recommended to combine its insights with other technical and fundamental factors before making trading decisions. Adjust the indicator settings and thresholds based on your trading strategy and preferences.
As with any trading tool, practice and observation are key. Over time, you can refine your trading strategy by analyzing historical data and observing how the indicator performs in different market conditions.
Feel free to experiment with different settings and methods to find the configuration that aligns best with your trading style and goals.
RSI-CCI Fusion + AlertsThe "RSI-CCI Fusion" indicator combines the Relative Strength Index (RSI) and Commodity Channel Index (CCI) from TradingView.
RSI-CCI Fusion: Unlocking Synergies in Technical Analysis
Technical analysis plays a crucial role in understanding market dynamics and making informed trading decisions. I often rely on a combination of indicators to gain insights into price movements and identify potential trade opportunities. In the lines below, I will explore the "RSI-CCI Fusion" indicator, a powerful tool that combines the strengths of the Relative Strength Index (RSI) and the Commodity Channel Index (CCI) to provide enhanced trading insights.
1. Understanding the RSI and CCI Indicators
Before delving into the fusion of these indicators, let's briefly review their individual characteristics. The RSI is a widely used momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100, with readings above 70 indicating overbought conditions and readings below 30 indicating oversold conditions.
On the other hand, the CCI is a versatile indicator designed to identify cyclical trends in prices. It measures the distance between the price and its statistical average, thereby providing valuable insights into overbought and oversold levels.
2. The Concept of RSI-CCI Fusion
The RSI-CCI Fusion indicator is born out of my desire to harness the collective power of the RSI and CCI. By combining these indicators, I can benefit from a more comprehensive trading signal that captures both momentum and cyclical trend dynamics.
The fusion process involves assigning weights to the RSI and CCI, creating a blended indicator that reflects their relative importance. The weighted combination ensures that both indicators contribute meaningfully to the final result.
To maintain consistency, the RSI and CCI values are standardized using the z-score technique. This normalization process brings the values to a common scale, making them directly comparable. Rescaling is then applied to bring the combined indicator back to its original scale, facilitating intuitive interpretation.
3. Interpreting the RSI-CCI Fusion Indicator
When plotting the RSI-CCI Fusion indicator on a chart, I gain valuable insights into market dynamics and potential trading opportunities. The indicator's plot typically includes dynamic upper and lower bands, which are calculated based on the indicator's standard deviation. These bands provide boundaries for evaluating overbought and oversold conditions.
When the RSI-CCI Fusion indicator crosses above the lower band, it suggests oversold conditions and potential buying opportunities. Conversely, when the indicator crosses below the upper band, it indicates overbought conditions and potential selling opportunities. I also pay attention to the baseline, which represents the neutral level and may signal potential trend reversals.
4. Utilizing Alerts for Trading Decisions
The RSI-CCI Fusion indicator can be further enhanced by incorporating alerts. These alerts notify me when the indicator generates buy or sell signals, enabling me to take prompt action. I can customize the alerts based on my preferred thresholds and timeframes.
However, it is crucial to remember that the RSI-CCI Fusion indicator should not be relied upon in isolation. To increase the robustness of my trading decisions, it is recommended to combine the indicator with other analysis techniques such as trend lines, support and resistance levels, or additional indicators. This convergence of analysis methodologies enhances the overall accuracy of my trade signals.
Conclusion: The RSI-CCI Fusion indicator represents a compelling approach to technical analysis by synergizing the strengths of the RSI and CCI. By combining momentum and cyclical trend dynamics, I gain a more comprehensive view of market conditions. The fusion of these indicators, accompanied by timely alerts, equips me with valuable insights and facilitates well-informed trading decisions.
As with any technical analysis tool, it is essential for me to backtest the RSI-CCI Fusion indicator to evaluate its performance across different market conditions and timeframes. Additionally, applying proper risk management strategies is crucial to ensure consistent and disciplined trading practices.
ADW - MomentumADW - Momentum is a trading indicator based on the Relative Momentum Index (RMI) and Exponential Moving Averages (EMAs). This indicator plots the RMI along with its EMAs and highlights regions where RMI crosses its slow EMA. Additionally, it provides alerts when the momentum flips bullish or bearish.
Key Features:
The RMI helps to identify momentum in the market.
Three EMAs (Fast, Standard, and Slow) were calculated on the RMI. These can be utilized to analyze the momentum trend over different periods.
Highlighted regions and colour coding to indicate when RMI crosses its Slow EMA, signalling potential momentum shifts.
Customizable parameters: Users can specify the lengths of the RMI and EMAs, boundaries for RMI, and colours for various components of the plot.
Alerts: The script can alert users when the momentum has flipped bullish or bearish.
The script is organized into several sections:
Inputs: The user can customize several parameters including the RMI averaging length, momentum lookback, RMI boundaries, and the EMA lengths. In addition, users can also specify the colours for the RMI line, Slow EMA line, and the fill colour.
RMI Calculation: The script calculates the RMI based on the user-provided length and momentum lookback. This is done by first calculating two EMAs - one for the positive differences between closing prices (emaInc), and one for the negative differences (emaDec). Then, the RMI is computed using these EMAs.
Plotting: The script plots the RMI line, Slow EMA line, and two horizontal lines indicating the RMI boundaries. In addition, it also fills the region between the RMI and Slow EMA lines.
Conditions: The script computes the conditions for bullish and bearish momentum flips. These are defined as when the RMI crosses above or below the Slow EMA respectively.
Alerts: Finally, the script sets up two alert conditions based on the bullish and bearish conditions. These alert the user when the momentum has flipped bullish or bearish, with a message that includes the current RMI value.
Mean Reversion and TrendfollowingTitle: Mean Reversion and Trendfollowing
Introduction:
This script presents a hybrid trading strategy that combines mean reversion and trend following techniques. The strategy aims to capitalize on short-term price corrections during a downtrend (mean reversion) as well as ride the momentum of a trending market (trend following). It uses a 200-period Simple Moving Average (SMA) and a 2-period Relative Strength Index (RSI) to generate buy and sell signals.
Key Features:
Combines mean reversion and trend following techniques
Utilizes 200-period SMA and 2-period RSI
Customizable starting date
Allows for enabling/disabling mean reversion or trend following modes
Adjustable position sizing for trend following and mean reversion
Script Description:
The script implements a trading strategy that combines mean reversion and trend following techniques. Users can enable or disable either of these techniques through the input options. The strategy uses a 200-period Simple Moving Average (SMA) and a 2-period Relative Strength Index (RSI) to generate buy and sell signals.
The mean reversion mode is active when the price is below the SMA200, while the trend following mode is active when the price is above the SMA200. The script generates buy signals when the RSI is below 20 (oversold) in mean reversion mode or when the price is above the SMA200 in trend following mode. The script generates sell signals when the RSI is above 80 (overbought) in mean reversion mode or when the price falls below 95% of the SMA200 in trend following mode.
Users can adjust the position sizing for both trend following and mean reversion modes using the input options.
To use this script on TradingView, follow these steps:
Open TradingView and load your preferred chart.
Click on the 'Pine Editor' tab located at the bottom of the screen.
Paste the provided script into the Pine Editor.
Click 'Add to Chart' to apply the strategy to your chart.
Please note that the past performance of any trading system or methodology is not necessarily indicative of future results. Always use proper risk management and consult a financial advisor before making any investment decisions.
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The following is a summary of the underlying whitepaper (onlinelibrary.wiley.com) for this strategy:
This paper proposes a theory of securities market under- and overreactions based on two psychological biases: investor overconfidence about the precision of private information and biased self-attribution, which causes asymmetric shifts in investors' confidence as a function of their investment outcomes. The authors show that overconfidence implies negative long-lag autocorrelations, excess volatility, and public-event-based return predictability. Biased self-attribution adds positive short-lag autocorrelations (momentum), short-run earnings "drift," and negative correlation between future returns and long-term past stock market and accounting performance.
The paper explains that there is empirical evidence challenging the traditional view that securities are rationally priced to reflect all publicly available information. Some of these anomalies include event-based return predictability, short-term momentum, long-term reversal, high volatility of asset prices relative to fundamentals, and short-run post-earnings announcement stock price "drift."
The authors argue that investor overconfidence can lead to stock prices overreacting to private information signals and underreacting to public signals. This overreaction-correction pattern is consistent with long-run negative autocorrelation in stock returns, excess volatility, and further implications for volatility conditional on the type of signal. The market's tendency to over- or underreact to different types of information allows the authors to address the pattern that average announcement date returns in virtually all event studies are of the same sign as the average post-event abnormal returns.
Biased self-attribution implies short-run momentum and long-term reversals in security prices. The dynamic analysis based on biased self-attribution can also lead to a lag-dependent response to corporate events. Cash flow or earnings surprises at first tend to reinforce confidence, causing a same-direction average stock price trend. Later reversal of overreaction can lead to an opposing stock price trend.
The paper concludes by summarizing the findings, relating the analysis to the literature on exogenous noise trading, and discussing issues related to the survival of overconfident traders in financial markets.
[Hoss] OBV RSIThe OBV ( On Balance Volume ) RSI ( Relative Strength Index ) indicator is an innovative tool that combines the power of OBV and RSI to provide traders with a comprehensive view of the market's momentum and volume dynamics. This combination enables users to make better-informed trading decisions by analyzing the relationship between price, volume , and relative strength .
The script starts by calculating the On Balance Volume , which is a cumulative volume-based indicator that measures buying and selling pressure. The OBV increases when the closing price is higher than the previous closing price and decreases when the closing price is lower than the previous closing price. This helps traders identify potential price trend reversals based on volume accumulation or distribution.
Next, the script computes the Relative Strength Index ( RSI ) based on the OBV values, offering a unique perspective on the market's momentum through the lens of volume . The RSI is a popular momentum indicator that ranges from 0 to 100 and helps traders identify overbought and oversold conditions. In this script, the user can define the RSI length and the higher and lower levels (default values are 70 and 30, respectively).
A distinctive feature of this OBV RSI indicator is the addition of a monitor that counts the number of times the RSI crosses above the higher level and below the lower level within a user-defined lookback period. This monitor is displayed as a table in the bottom right corner of the chart and can be enabled or disabled through an input option.
The cross count monitor provides valuable insights into the historical frequency of RSI crossings, helping traders to identify potential trading opportunities based on historical price behavior around these levels.
