Historical Volatility Scale [ChartPrime]This indicator outputs a visual scale representing the level of volatility in the market relative to the timeframe selected on the users chart. The method of volatility used is "historical volatility" which is calculated by taking the standard deviation of a series of "x" length which contains the current closing price divided by the previous closing price for all nodes. The output of the volatility is standardized by also running an additional percentrank calculation over the raw volatility values to allow the volatility scale to oscillate properly between its minimum of 0 and maximum of 100.
📗 SETTINGS
Length: The length determines how many bars/nodes should be considered when calculating the standard deviation. In simple terms, the higher the length, the less sensitive and less reactive the scale will be to current price action, and larger moves would be required to trigger the scale.
🧰 UTILITY
The arrow or "The Pin" will move upwards towards the "fire" emoji when the volatility is higher than the majority of values for the amount of bars back that you set the "length" setting to. Vise Versa for when the pin is lowering towards the "snooze" emoji, the volatility is less than the majority of nodes/values for the past "length" amount of values.
When the volatility is low, a trader could consider utilizing more leading indicators to make their trading decisions as opposed to lagging indicator such as trend indicators. When the volatility is low, the price action is consolidation which would be bad for a trend following strategy. Vise Versa for trend strategies, having a higher volatility may be better for such strategies.
Its important to remember that this indicator itself is a lagging indicator, in that it relies on historical data to showcase the current state of the markets volatility. This means that although the recommendation in the previous paragraph may make logical sense, it is not a guarantee that if the volatility is showcasing a trending market, that your trend strategies will necessarily be profitable.
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Bollinger + RSI, Double Strategy Long-Only (by ChartArt) v1.2This strategy uses the RSI indicator together with the Bollinger Bands to go long when the price is below the lower Bollinger Band (and to close the long trade when this value is above the upper Bollinger band).
This simple strategy only places a long, when both the RSI and the Bollinger Bands indicators are at the same time in a oversold condition.
In this new version 1.2 the strategy was simplified even more than before by going long-only, which made the strategy more successful in backtesting than the previous version (that older version also opened short trades).
This strategy does not repaint and was updated to PineScript version 3.
All trading involves high risk; past performance is not necessarily indicative of future results. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
P.S. For advanced users: If you want also be able to short with the same strategy approach, then please use my older version 1.1:
Action Section, Volatility Choppiness Indicator (by ChartArt)Here is a solution to find entry points to trade. This indicator highlights price sections with low choppiness, where both the ADX (Average Directional Index) indicator shows strong movement (up or down!) in the price and a customized Money Flow indicator (which uses only the change of the volume not the change of the price, hence a Volume Flow indicator), also shows volatility is present. Using higher filter values than the default setting of "30" reduces the noise, but also shows less 'action sections'. Vice versa using values lower than "30" increases the amount and duration of action sections which are shown.
The "action section" indicator does not show the direction if the price is going up or down. It shows if there is enough action worthy the time to trade (lower odds of a neutral sideways trend). Therefore in addition a Heikin-Ashi based price change indicator can optionally be plotted, which shows the actual direction of the price.
Action Section, High Volume Volatility & Low Price Choppiness Indicator
This indicator works only on charts which have volume data.
Narrow Range + Inside Day, Short Only Strategy (by ChartArt)This short only strategy determines when there is both a NR7 (narrow range 7, a trading day in which the range is narrower than any of the previous six days), plus a inside day (high of the current day is lower than the high of the previous day and the low of the current day is higher than the low of the previous day) both on the same trading day and enters a short trade when the close is lower than the open and the slope of the simple moving average is downwards, too.
The strategy closes the short trade next time the daily close is lower than the open in any of the next trading days. In addition the NR7ID can be colored (the color is red when the close is lower that day than the open, else the color is green) and the SMA can be drawn with a color based on the direction of the SMA slope. To fine-tune the strategy it is highly recommended to change the period length of the SMA, which determines if the measured SMA slope is downwards or not. In this version 1.1 I made a small change to long only version. By default only the bearish NR7ID days are colored.
Inspiration:
How to trade NR7 and Inside Day Pattern
paststat.com
Code credit:
NR7 indicator script from Tradingview user Lazybear:
pastebin.com
P.S. You can find the 'long only' version of this trading strategy here:
Golden Cross, SMA 200 Moving Average Strategy (by ChartArt)This famous moving average strategy is very easy to follow to decide when to buy (go long) and when to take profit.
The strategy goes long when the faster SMA 50 (the simple moving average of the last 50 bars) crosses above the slower SMA 200. Orders are closed when the SMA 50 crosses below the SMA 200. This simple strategy does not have any other stop loss or take profit money management logic. The strategy does not short and goes long only!
Here is an article explaining the "golden cross" strategy in more detail:
www.stockopedia.com
On the S&P 500 index (symbol "SPX") this strategy worked on the daily chart 81% since price data is available since 1982. And on the DOW Jones Industrial Average (symbol "DOWI") this strategy worked on the daily chart 55% since price data is available since 1916. The low number of trades is in both cases not statistically significant though.
All trading involves high risk; past performance is not necessarily indicative of future results. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
MACD trend heatmap (by ChartArt)This is an overlay indicator which uses the classic period settings and signals from the MACD (Moving Average Convergence/Divergence) indicator to overlay a heatmap using all the information the MACD generates with its three periods (12,26,9).
The first two moving averages which the MACD uses (12 and 26) can be plotted on the chart like usual EMAs.
In addition to the background color function (the heatmap) and the EMAs, there is an optional bar color alert when the uptrend or the downtrend as measured by the MACD appears to be very strong.
Stochastic + RSI, Double Strategy (by ChartArt)This strategy combines the classic RSI strategy to sell when the RSI increases over 70 (or to buy when it falls below 30), with the classic Stochastic Slow strategy to sell when the Stochastic oscillator exceeds the value of 80 (and to buy when this value is below 20).
This simple strategy only triggers when both the RSI and the Stochastic are together in a overbought or oversold condition. The one hour chart of the S&P 500 worked quite well recently with this double strategy.
By the way this strategy should not be confused with the 'Stochastic RSI', which measures the RSI only.
All trading involves high risk; past performance is not necessarily indicative of future results.
Stock Market Trend Analysis Trading System 101 (by ChartArt)This is a very simple trading system which is measuring the core of uptrends and downtrends using three basic elements: Close price, HL2 price, Pivot price.
Depending if the uptrend or downtrend is strong, the buy/sell signals are shown in different colors. The stronger trends are in brighter colors (lime and fuchsia). If the trend just fully changed direction from uptrend to downtrend (or vice versa), there is a background color highlight in the color of the new trend direction.
The trend detection should work best on monthly charts. I have created this in under an hour. My goal was to use the least amount of rules possible, therefore there are many false signals and the code is quite lazy.
You can lose all your money if you rely on these buy/sell signals!
Trend Trading With Moving Averages (by ChartArt)This indicator is measuring if three different moving average calculations (EMA,WMA,SMA) with the same period length are aligned in an uptrend. If this is the case then the bar is colored in green. If only one or two of the three moving averages signals an uptrend then the bar is colored in blue. This can mean that the trend is changing.
Save another $999 bucks with this free indicator.
This is the ChartArt optimized version. Original idea: Steve Primo's Robbery Indicator (PET-D).
coded by UCSgears:
Stocks Box (by ChartArt)Get a multi-time frame (MTF) view of the price!
You can select to see either close price (default), or HL2 price, or HLC3 price, or OHLC4 price of all time-frames.And you change the smoothing method (and smoothing period) of the daily price, which is shown as a blue line, with period 10 WMA smoothing as default.
P:S. I had the drawings on the chart hidden, because they have nothing to do with the indicator, but with publishing the script they showed up again :(
Fisher Transform of On Balance Volume (by ChartArt)A simple mash-up of the On Balance Volume (OBV) indicator with the Fisher Transform indicator (blue) with the classic Fisher Transform signal trigger (silver color), plus a linear regression as a second signal line (red).
I recommend to use a period for the linear regression which has the same speed or is slower than the period of the Fisher Transform to avoid overshooting.
P.S. Here are three areas where the indicator worked quite good on historic charts
Hobble Skirt Bottom Impede Fashion (by ChartArt)A very noisy indicator to detect bottoms and new uptrends.
Original idea by ChartArt.
First published indicator - constructive criticism welcome.
(The indicator is experimental and doesn't work most of the time.)
I would describe it as an "coincident indicator". The signals occur at approximately the same time as the conditions it signifies. Rather than predicting future events it changes at the same time to the upside as possible bottoms show up.
P.S. hobble skirt is a syllable of chart, that is how I came up with the name
"A hobble skirt was a skirt with a narrow enough hem to significantly impede the wearer's stride, and was a short-lived fashion trend around the turn of the twentieth century."
P.P.S. Bottoms are also short-lived...
Renko Chart EmulationRenko charts are a popular tool in technical analysis, known for their ability to filter out market noise and focus purely on price movements. Unlike traditional candlestick or bar charts, Renko charts are not time-based but are constructed using bricks that represent a fixed price movement. This makes them particularly useful for identifying trends and key levels of support and resistance. While Renko charts are commonly found on platforms with specialized charting capabilities, they can also be emulated in Pine Script as a line indicator.
The Renko emulation indicator in Pine Script calculates the movement of price based on a user-defined brick size. Whenever the price moves up or down by an amount equal to or greater than the brick size, a new level is plotted, indicating a shift in price direction. This approach helps traders visualize significant price moves without the distractions of smaller fluctuations. By plotting the Renko levels as a continuous line and coloring it based on direction, this indicator provides a clean and straightforward representation of market trends.
Traders can use this Renko emulation line to identify potential entry and exit points, as well as to confirm ongoing trends. The simplicity of Renko charts makes them a favorite among those who prefer a minimalist approach to technical analysis. However, it is essential to choose an appropriate brick size that aligns with the volatility of the trading instrument. A smaller brick size may result in frequent signals, while a larger one can smooth out the chart, focusing only on the most substantial price movements. This script offers a flexible solution for incorporating Renko-style analysis into any trading strategy.
[TheMandalor] Invert or Mirror Chart SUPPORT RESSISTANTThis is a new idea to find supports and resistant’s for any charts.
What is the concept of this indicator:
1. It is used close and inverted it on chart
2. When the real chart and the inverted chart is crossing together several times, this point will be important on this concept that means the price will care about this point again and again.
3. When you draw a horizontal line as support and resistance check it with this indicator too, if your support and resistance is touched with inverted chart, it will be more important than normal support/ resistance.
4. This indicator has plot candle too, it means you can compare regular chart with the inverted one at same time if you need.
Here is the steps:
1. When you add the indicator to your chart it will add your ticker as inverted.
2. Change your chart type to line chart.
3. Fix your scale in both sides left and right (the indicator's side is on the left).
4. Now you must have two type of line charts, one is yours (The blue one) and one is plotted with this indicator (The purple one).
5. Draw a horizontal line where these two lines have more crossing at the middle of chart, this line will be a powerful line later.
6. Find other more crossed points and draw horizontal line for them too.
7. Now you can see these indicator's support and resistant’s, now you can remove the indicator and watch how the price will touch, reverse, or stay on your new type of support and resistant’s lines.
PS: I have added candle plotting too if you need it.
Crab Harmonic Pattern [TradingFinder] Harmonic Chart patterns🔵 Introduction
The Crab pattern is recognized as a reversal pattern in technical analysis, utilizing Fibonacci numbers and percentages for chart analysis. This pattern can predict suitable price reversal areas on charts using Fibonacci ratios.
The structure of the Crab pattern can manifest in both bullish and bearish forms on the chart. By analyzing this structure, traders can identify points where the price direction changes, which are essential for making informed trading decisions.
The pattern's structure is visually represented on charts as shown below. To gain a deeper understanding of the Crab pattern's functionality, it is beneficial to become familiar with its various harmonic forms.
🟣 Types of Crab Patterns
The Crab pattern is categorized into two types based on its structure: bullish and bearish. The bullish Crab is denoted by the letter M, while the bearish Crab is indicated by the letter W in technical analysis.
Typically, a bullish Crab pattern signals a potential price increase, whereas a bearish Crab pattern suggests a potential price decrease on the chart.
The direction of price movement depends significantly on the price's position within the chart. By identifying whether the pattern is bullish or bearish, traders can determine the likely direction of the price reversal.
Bullish Crab :
Bearish Crab :
🔵 How to Use
When trading using the Crab pattern, crucial parameters include the end time of the correction and the point at which the chart reaches its peak. Generally, the best time to buy is when the chart nears the end of its correction, and the best time to sell is when it approaches the peak price.
As we discussed, the end of the price correction and the time to reach the peak are measured using Fibonacci ratios. By analyzing these levels, traders can estimate the end of the correction in the chart waves and select a buying position for their stock or asset upon reaching that ratio.
🟣 Bullish Crab Pattern
In this pattern, the stock price is expected to rise at the pattern's completion, transitioning into an upward trend. The bullish Crab pattern usually begins with an upward trend, followed by a price correction, after which the stock resumes its upward movement.
If a deeper correction occurs, the price will change direction at some point on the chart and rise again towards its target price. Price corrections play a critical role in this pattern, as it aims to identify entry and exit points using Fibonacci ratios, allowing traders to make purchases at the end of the corrections.
When the price movement lines are connected on the chart, the bullish Crab pattern resembles the letter M.
🟣 Bearish Crab Pattern
In this pattern, the stock price is expected to decline at the pattern's completion, leading to a strong downward trend. The bearish Crab pattern typically starts with a price correction in a downward trend and, after several fluctuations, reaches a peak where the direction changes downward, resulting in a significant price drop.
This pattern uses Fibonacci ratios to identify points where the price movement is likely to change direction, enabling traders to exit their positions at the chart's peak. When the price movement lines are connected on the chart, the bearish Crab pattern resembles the letter W.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern.
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : On / Off
Message Frequency : This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone : The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
Fair Value Gap ChartThe Fair Value Gap chart is a new charting method that displays fair value gap imbalances as Japanese candlesticks, allowing traders to quickly see the evolution of historical market imbalances.
The script is additionally able to compute an exponential moving average using the imbalances as input.
🔶 USAGE
The Fair Value Gap chart allows us to quickly display historical fair value gap imbalances. This also allows for filtering out potential noisy variations, showing more compact trends.
Most like other charting methods, we can draw trendlines/patterns from the displayed results, this can be helpful to potentially predict future imbalances locations.
Users can display an exponential moving average computed from the detected fvg's imbalances. Imbalances above the ema can be indicative of an uptrend, while imbalances under the ema are indicative of a downtrend.
Note that due to pinescript limitations a maximum of 500 lines can be displayed, as such displaying the EMA prevent candle wicks from being displayed.
🔶 DETAILS
🔹 Candle Structure
The Fair Value Gap Chart is constructed by keeping a record of all detected fair value gaps on the chart. Each fvg is displayed as a candlestick, with the imbalance range representing the body of the candle, and the range of the imbalance interval being used for the wicks.
🔹 EMA Source Input
The exponential moving average uses the imbalance range to get its input source, the extremity of the range used depends on whether the fvg is bullish or bearish.
When the fvg is bullish, the maximum of the imbalance range is used as ema input, else the minimum of the fvg imbalance is used.
Chart Time and Price Range It is easy to loose track of time and price volatility when the chart automatically scales to the bars on the chart. This helps you keep track.
This is a very simple indicator that is designed to ensure that you're looking at a segment of the chart that is relevant to the trade you're considering in both price distance and time.
The Problem:
When looking at a chart the lowest price is at the bottom of the screen, the highest price is at the top. The time at the beginning of the chart is based on how many bars and what timeframe you're looking at.
But is the price difference between the two wide or narrow? Are you seeing minutes, hours, or days of price action?
You can get the measure tool out, but you'll change the zoom level and now its different. You change the timeframe and its different.
This Solution:
This indicator puts a table on the screen that will tell you the X/Y distance of everything that is on your chart. If your hold period is 5 minutes, why would you be looking at 3 days of price action to find s/r or make a decision on a trade?
This will show you how much price opportunity was available in the amount of time you are currently viewing. Using the PineCoders VisibleChart library, we're retrieving the time and bar_index of the beginning of the chart so that everything that is currently on the chart is measured and it adapts as that changes.
It will work with light and dark themes (you can change the colors) and can be positioned wherever you prefer to see the information.
Disclaimer: This was a quick release script. I wrote it and published the same day. There could be bugs, so send me a message or add a comment to report anything that isn't behaving correctly.
Season ChartThis overlay is built on the idea of seasonal charts.
It is constructed by taking the percentage change from each close and recording that change for every trading day of any year that is within the sample. We then take the average for each day of all the years.
These averages are then cumulated to create the chart as per traditional seasonal chart construction.
I have also taken a trimmed mean of the averages to try and dampen the impact one off moves that may have a dramatic effect on the daily averages (for example the crash to $0 in oil in April 2020) however, even removing 10% may not guarantee one off moves won’t affect the average.
The construction of the chart is completely dependent on the data provided by TradingView and so it is recommended that if longer sample sizes are used, the user go back to check that the years contained within the sample have a full history. Some data may have large gaps in their history and this can distort the seasonality readings.
I have attempted to align the chart with the first trading day of the year, but the start of some months may be out by a day or two as it becomes difficult to track all weeks with differing market holidays closures each year and this in turn varies the total amount of actual trading days in each year as well as leap years.
This overlay is designed for the Daily time frame only and will not work on Crypto or any other instrument that trades outside of usual business weekdays. Future updates may include the ability to adapt to Crypto instruments.
All feedback and comments welcome!
All Chart Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws and sends alerts for all of the chart patterns in my public library as they occur. The patterns included are as follows:
• Ascending Broadening
• Broadening
• Descending Broadening
• Double Bottom
• Double Top
• Triple Bottom
• Triple Top
• Bearish Elliot Wave
• Bullish Elliot Wave
• Bearish Alternate Flag
• Bullish Alternate Flag
• Bearish Flag
• Bullish Flag
• Bearish Ascending Head and Shoulders
• Bullish Ascending Head and Shoulders
• Bearish Descending Head and Shoulders
• Bullish Descending Head and Shoulders
• Bearish Head and Shoulders
• Bullish Head and Shoulders
• Bearish Pennant
• Bullish Pennant
• Ascending Wedge
• Descending Wedge
• Wedge
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Measurement Tolerances
Tolerance refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. I have applied this concept in my pattern detection logic and have set default tolerances where applicable, as perfect patterns are, needless to say, very rare.
Chart Patterns
Generally speaking price charts are nothing more than a series of swing highs and swing lows. When demand outweighs supply over a period of time prices swing higher and when supply outweighs demand over a period of time prices swing lower. These swing highs and swing lows can form patterns that offer insight into the prevailing supply and demand dynamics at play at the relevant moment in time.
‘Let us assume… that you the reader, are not a member of that mysterious inner circle known to the boardrooms as “the insiders”… But it is fairly certain that there are not nearly so many “insiders” as amateur trader supposes and… It is even more certain that insiders can be wrong… Any success they have, however, can be accomplished only by buying and selling… hey can do neither without altering the delicate poise of supply and demand that governs prices. Whatever they do is sooner or later reflected on the charts where you… can detect it. Or detect, at least, the way in which the supply-demand equation is being affected… So, you do not need to be an insider to ride with them frequently… prices move in trends. Some of those trends are straight, some are curved; some are brief and some are long and continued… produced in a series of action and reaction waves of great uniformity. Sooner or later, these trends change direction; they may reverse (as from up to down), or they may be interrupted by some sort of sideways movement and then, after a time, proceed again in their former direction… when a price trend is in the process of reversal… a characteristic area or pattern takes shape on the chart, which becomes recognisable as a reversal formation… Needless to say, the first and most important task of the technical chart analyst is to learn to know the important reversal formations and to judge what they may signify in terms of trading opportunities’ (Edwards & Magee, 1948).
This is as true today as it was when Edwards and Magee were writing in the first half of the last Century, study your patterns and make judgements for yourself about what their implications truly are on the markets and timeframes you are interested in trading.
Over the years, traders have come to discover a multitude of chart and candlestick patterns that are supposed to pertain information on future price movements. However, it is never so clear cut in practice and patterns that where once considered to be reversal patterns are now considered to be continuation patterns and vice versa. Bullish patterns can have bearish implications and bearish patterns can have bullish implications. As such, I would highly encourage you to do your own backtesting.
There is no denying that chart patterns exist, but their implications will vary from market to market and timeframe to timeframe. So it is down to you as an individual to study them and make decisions about how they may be used in a strategic sense.
█ INPUTS
• Change pattern and label colours
• Show or hide patterns individually
• Adjust pattern ratios and tolerances
• Set or remove alerts for individual patterns
█ NOTES
I have decided to rename some of my previously published patterns based on the way in which the pattern completes. If the pattern completes on a swing high then the pattern is considered bearish, if the pattern completes on a swing low then it is considered bullish. This may seem confusing but it makes sense when you come to backtesting the patterns and want to use the most recent peak or trough prices as stop losses. Patterns that can complete on both a swing high and swing low are for such reasons treated as neutral, namely all broadening and wedge variations. I trust that it is quite self-evident that double and triple bottom patterns are considered bullish while double and triple top patterns are considered bearish, so I did not feel the need to rename those.
The patterns that have been renamed and what they have been renamed to, are as follows:
• Ascending Elliot Waves to Bearish Elliot Waves
• Descending Elliot Waves to Bullish Elliot Waves
• Ascending Head and Shoulders to Bearish Ascending Head and Shoulders
• Descending Head and Shoulders to Bearish Descending Head and Shoulders
• Head and Shoulders to Bearish Head and Shoulders
• Ascending Inverse Head and Shoulders to Bullish Ascending Head and Shoulders
• Descending Inverse Head and Shoulders to Bullish Descending Head and Shoulders
• Inverse Head and Shoulders to Bullish Head and Shoulders
You can test the patterns with your own strategies manually by applying the indicator to your chart while in bar replay mode and playing through the history. You could also automate this process with PineScript by using the conditions from my swing and pattern libraries as entry conditions in the strategy tester or your own custom made strategy screener.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ SOURCES
Edwards, R., & Magee, J. (1948) Technical Analysis of Stock Trends (10th edn). Reprint, Boca Raton, Florida: Taylor and Francis Group, CRC Press: 2013.
Propulsion Blocks | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Propulsion Blocks indicator! This new indicator can find & render ICT's propulsion blocks in the current ticker. It's highly customizable with detection, invalidation and style settings. For more information, please visit the "HOW DOES IT WORK ?" section.
Features of the new Propulsion Blocks indicator :
Render Bullish & Bearish Propulsion Blocks
Customizable Algorithm
Enable / Disable Historic Zones
Visual Customizability
📌 HOW DOES IT WORK ?
Order blocks occur when there is a high amount of market orders exist on a price range. It is possible to find order blocks using specific formations on the chart. One of which this indicator uses requires a large engulfing candlestick right after another one of the opposite direction. Then if the price comes back to retest the area that two candlesticks create, then it's an order block pattern.
Propulsion blocks are a specific type of order block used in the trading methodology. They build on the concept of order blocks and aim to identify potential areas for strong price movements. They are detected when a candlestick wicks to any existing order block, retesting it. Then a strong momentum in the direction of the order block is needed for the propulsion block to get created. Check this example :
You can use them as entry / exit points, or for confirmations for your trades. For example, a successful retest attempt to a bullish propulsion block might hint a strong bullish momentum. This indicator works best when used together with other ICT concepts.
🚩UNIQUENESS
Propulsion blocks can help traders identify key levels in a chart, and can be used mainly for confirmation. This indicator can identify and show them automatically in your chart, and provides customization settings for order & propulsion block detection and invalidation. Another capability of the indicator is that it combines overlapping order & propulsion blocks so you will have a clean look at the chart without any overlapping zones.
⚙️SETTINGS
1. General Configuration
Show Historic Zones -> This setting will hide invalidated propulsion blocks if enabled.
Max Distance To Last Bar -> This setting defines the maximum range that the indicator will find propulsion blocks to the past. Higher options will make older zones visible.
Zone Invalidation -> Select between Wick & Close price for Order Block & Propulsion Block Invalidation.
Swing Length -> Swing length is used when finding order block formations. Smaller values will result in finding smaller order blocks.
Fair Value Gap Screener | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Fair Value Gap Screener! This screener can provide information about the latest Fair Value Gaps in up to 5 tickers. You can also customize the algorithm that finds the Fair Value Gaps and the styling of the screener.
Features of the new Fair Value Gap (FVG) Screener :
Find Latest Fair Value Gaps Accross 5 Tickers
Shows Their Information Of :
Latest Status
Number Of Retests
Consumption Percent
Bullish & Bearish Volume
Customizable Algoritm / Styling
📌 HOW DOES IT WORK ?
A Fair Value Gap generally occur when there is an imbalance in the market. They can be detected by specific formations within the chart. This screener then finds Fair Value Gaps accross 5 different tickers, and shows the latest information about them.
Status ->
Far -> The current price is far away from the FVG.
Approaching ⬆️/⬇️ -> The current price is approaching the FVG, and the direction it's approaching from.
Inside -> The price is currently inside the FVG.
Retests -> Retest means the price tried to invalidate the FVG, but failed to do so. Here you can see how many times the price retested the FVG.
Consumed -> FVGs get consumed when a Close / Wick enters the FVG zone. For example, if the price hits the middle of the FVG zone, the zone is considered 50% consumed.
Bullish / Bearish Volume -> Bullish & Bearish volume of a FVG is calculated by analyzing the bars that formed it. For example in a bullish FVG, the bullish volume is the total volume of the first 2 bars forming the FVG, and the bearish volume is the volume of the 3rd bar that forms it.
🚩UNIQUENESS
This screener can detect latest Fair Value Gaps and give information about them for up to 5 tickers. This saves the user time by showing them all in a dashboard at the same time. The screener also uniquely shows information about the number of retests and the consumed percent of the FVG, as well as it's bullish & bearish volume. We believe that this extra information will help you spot reliable FVGs easier.
⚙️SETTINGS
1. Tickers
You can set up to 5 tickers for the screener to scan Fair Value Gaps here. You can also enable / disable them and set their individual timeframes.
2. General Configuration
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
Auto Chart Patterns [Trendoscope®]🎲 Introducing our most comprehensive automatic chart pattern recognition indicator.
Last week, we published an idea on how to algorithmically identify and classify chart patterns.
This indicator is nothing but the initial implementation of the idea. Whatever we explained in that publication that users can do manually to identify and classify the pattern, this indicator will do it for them.
🎲 Process of identifying the patterns.
The bulk of the logic is implemented as part of the library - chartpatterns . The indicator is a shell that captures the user inputs and makes use of the library to deliver the outcome.
🎯 Here is the list of steps executed to identify the patterns on the chart.
Derive multi level recursive zigzag for multiple base zigzag length and depth combinations.
For each zigzag and level, check the last 5 pivots or 6 pivots (based on the input setting) for possibility of valid trend line pairs.
If there is a valid trend line pair, then there is pattern.
🎯 Rules for identifying the valid trend line pairs
There should be at least two trend lines that does not intersect between the starting and ending pivots.
The upper trend line should touch all the pivot highs of the last 5 or 6 pivots considered for scanning the patterns
The lower trend line should touch all the pivot lows of the last 5 or 6 pivots considered for scanning the patterns.
None of the candles from starting pivot to ending pivot should fall outside the trend lines (above upper trend line and below lower trend line)
The existence of a valid trend line pair signifies the existence of pattern. What type of pattern it is, to identify that we need to go through the classification rules.
🎲 Process of classification of the patterns.
We need to gather the following information before we classify the pattern.
Direction of upper trend line - rising, falling or flat
Direction of lower trend line - rising, falling or flat
Characteristics of trend line pair - converging, expanding, parallel
🎯 Broader Classifications
Broader classification would include the following types.
🚩 Classification Based on Geometrical Shapes
This includes
Wedges - both trend lines are moving in the same direction. But, the trend lines are either converging or diverging and not parallel to each other.
Triangles - trend lines are moving in different directions. Naturally, they are either converging or diverging.
Channels - Both trend lines are moving in the same direction, and they are parallel to each other within the limits of error.
🚩 Classification Based on Pattern Direction
This includes
Ascending/Rising Patterns - No trend line is moving in the downward direction and at least one trend line is moving upwards
Descending/Falling Patterns - No trend line is moving in the upward direction, and at least one trend line is moving downwards.
Flat - Both Trend Lines are Flat
Bi-Directional - Both trend lines are moving in opposite direction and none of them is flat.
🚩 Classification Based on Formation Dynamics
This includes
Converging Patterns - Trend Lines are converging towards each other
Diverging Patterns - Trend Lines are diverging from each other
Parallel Patterns - Trend Lines are parallel to each others
🎯 Individual Pattern Types
Now we have broader classifications. Let's go through in detail to find out fine-grained classification of each individual patterns.
🚩 Ascending/Uptrend Channel
This pattern belongs to the broader classifications - Ascending Patterns, Parallel Patterns and Channels. The rules for the Ascending/Uptrend Channel pattern are as below
Both trend lines are rising
Trend lines are parallel to each other
🚩 Descending/Downtrend Channel
This pattern belongs to the broader classifications - Descending Patterns, Parallel Patterns and Channels. The rules for the Descending/Downtrend Channel pattern are as below
Both trend lines are falling
Trend lines are parallel to each other
🚩 Ranging Channel
This pattern belongs to the broader classifications - Flat Patterns, Parallel Patterns and Channels. The rules for the Ranging Channel pattern are as below
Both trend lines are flat
Trend lines are parallel to each other
🚩 Rising Wedge - Expanding
This pattern belongs to the broader classifications - Rising Patterns, Diverging Patterns and Wedges. The rules for the Expanding Rising Wedge pattern are as below
Both trend lines are rising
Trend Lines are diverging.
🚩 Rising Wedge - Contracting
This pattern belongs to the broader classifications - Rising Patterns, Converging Patterns and Wedges. The rules for the Contracting Rising Wedge pattern are as below
Both trend lines are rising
Trend Lines are converging.
🚩 Falling Wedge - Expanding
This pattern belongs to the broader classifications - Falling Patterns, Diverging Patterns and Wedges. The rules for the Expanding Falling Wedge pattern are as below
Both trend lines are falling
Trend Lines are diverging.
🚩 Falling Wedge - Contracting
This pattern belongs to the broader classifications - Falling Patterns, Converging Patterns and Wedges. The rules for the Converging Falling Wedge are as below
Both trend lines are falling
Trend Lines are converging.
🚩 Rising/Ascending Triangle - Expanding
This pattern belongs to the broader classifications - Rising Patterns, Diverging Patterns and Triangles. The rules for the Expanding Ascending Triangle pattern are as below
The upper trend line is rising
The lower trend line is flat
Naturally, the trend lines are diverging from each other
🚩 Rising/Ascending Triangle - Contracting
This pattern belongs to the broader classifications - Rising Patterns, Converging Patterns and Triangles. The rules for the Contracting Ascending Triangle pattern are as below
The upper trend line is flat
The lower trend line is rising
Naturally, the trend lines are converging.
🚩 Falling/Descending Triangle - Expanding
This pattern belongs to the broader classifications - Falling Patterns, Diverging Patterns and Triangles. The rules for the Expanding Descending Triangle pattern are as below
The upper trend line is flat
The lower trend line is falling
Naturally, the trend lines are diverging from each other
🚩 Falling/Descending Triangle - Contracting
This pattern belongs to the broader classifications - Falling Patterns, Converging Patterns and Triangles. The rules for the Contracting Descending Triangle pattern are as below
The upper trend line is falling
The lower trend line is flat
Naturally, the trend lines are converging.
🚩 Converging Triangle
This pattern belongs to the broader classifications - Bi-Directional Patterns, Converging Patterns and Triangles. The rules for the Converging Triangle pattern are as below
The upper trend line is falling
The lower trend line is rising
Naturally, the trend lines are converging.
🚩 Diverging Triangle
This pattern belongs to the broader classifications - Bi-Directional Patterns, Diverging Patterns and Triangles. The rules for the Diverging Triangle pattern are as below
The upper trend line is rising
The lower trend line is falling
Naturally, the trend lines are diverging from each other.
🎲 Indicator Settings - Auto Chart Patterns
🎯 Zigzag Settings
Zigzag settings allow users to select the number of zigzag combinations to be used for pattern scanning, and also allows users to set zigzag length and depth combinations.
🎯 Scanning Settings
Number of Pivots - This can be either 5 or 6. Represents the number of pivots used for identification of patterns.
Error Threshold - Error threshold used for initial trend line validation.
Flat Threshold - Flat angle threshold is used to identify the slope and direction of trend lines.
Last Pivot Direction - Filters patterns based on the last pivot direction. The values can be up, down, both, or custom. When custom is selected, then the individual pattern specific last pivot direction setting is used instead of the generic one.
Verify Bar Ratio - Provides option to ignore extreme patterns where the ratios of zigzag lines are not proportionate to each other.
Avoid Overlap - When selected, the patterns that overlap with existing patterns will be ignored while scanning. Meaning, if the new pattern starting point falls between the start and end of an existing pattern, it will be ignored.
🎯 Group Classification Filters
Allows users to enable disable patterns based on group classifications.
🚩 Geometric Shapes Based Classifications
Wedges - Rising Wedge Expanding, Falling Wedge Expanding, Rising Wedge Contracting, Falling Wedge Contracting.
Channels - Ascending Channel, Descending Channel, Ranging Channel
Triangles - Converging Triangle, Diverging Triangle, Ascending Triangle Expanding, Descending Triangle Expanding, Ascending Triangle Contrcting and Descending Triangle Contracting
🚩 Direction Based Classifications
Rising - Rising Wedge Contracting, Rising Wedge Expanding, Ascending Triangle Contracting, Ascending Triangle Expanding and Ascending Channel
Falling - Falling Wedge Contracting, Falling Wedge Expanding, Descending Triangle Contracting, Descending Triangle Expanding and Descending Channel
Flat/Bi-directional - Ranging Channel, Converging Triangle, Diverging Triangle
🚩 Formation Dynamics Based Classifications
Expanding - Rising Wedge Expanding, Falling Wedge Expanding, Ascending Triangle Expanding, Descending Triangle Expanding, Diverging Triangle
Contracting - Rising Wedge Contracting, Falling Wedge Contracting, Ascending Triangle Contracting, Descending Triangle Contracting, Converging Triangle
Parallel - Ascending Channel, Descending Channgel and Ranging Channel
🎯 Individual Pattern Filters
These settings allow users to enable/disable individual patterns and also set last pivot direction filter individually for each pattern. Individual Last Pivot direction filters are only considered if the main "Last Pivot Direction" filter is set to "custom"
🎯 Display Settings
These are the settings that determine the indicator display. The details are provided in the tooltips and are self explanatory.
🎯 Alerts
A basic alert message is enabled upon detection of new pattern on the chart.
HTF Candle Boxes for LTF Charts
This indicator allows you to show an outline of a Higher Time Frame (HTF) candle on a Lower Time Frame (LTF) chart. Options include selecting the HTF interval, and an option to either show a single shaded Box for the candle (High to Low), or a shaded box for the body (Open to Close) with the High to Low shown in an unshaded box. The purpose is to easily visualise what the previous HTF candles look like as you are working on the lower charts, for example was yesterday's candle Bullish, Bearsish, indecision, a Doji etc.
