Fibonacci Extension Strt StrategyCore Logic and Steps:
Weekly Trend Identification:
Find the last significant Higher High (HH) and Lower Low (LL) or vice-versa on the Weekly timeframe.
Determine if it's an uptrend (HH followed by LL) or a downtrend (LL followed by HH).
Plot a Fibonacci Extension (or Retracement in reverse order) from the swing point determined to the other significant swing point.
Weekly Retracement Levels:
Display horizontal lines at the 0.236, 0.382, and 0.5 Fibonacci levels from the weekly extension.
Monitor price action on these levels.
Daily Confirmation:
When price hits the Fib levels, examine the Daily chart.
Look for a rejection wick (indicating the pull back is ending) on the identified weekly retracement levels.
Confirm that the price is indeed starting to continue in the direction of the original weekly trend.
Four-Hour Entry:
On the 4H timeframe, plot a new Fib Extension in the opposite direction of the weekly.
If it's an uptrend, the Fib is plotted from last swing low to its swing high. If the weekly trend was bearish the Fib will be plotted from last swing high to the swing low.
Generate an entry when price breaks the high of that candle.
Trade Management:
Entry is on the breakout of the current candle.
Stop Loss: Place the stop loss below the wick of the breakout candle.
Take Profit 1: Close 50% of the position at the 0.5 Fibonacci level. Move the stop loss to breakeven on this position.
Take Profit 2: Close another 25% of the position at the 0.236 Fib level.
Trailing Take Profit: Keep the last 25% open, using a trailing stop loss. (You'll need to define the logic for the trailing stop, e.g., trailing stop using the last high/low)
How to Use in TradingView:
Open a TradingView Chart.
Click on "Pine Editor" at the bottom.
Copy and paste the corrected Pine Script code.
Click "Add to Chart".
The indicator should now be displayed on your chart.
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3 Down, 3 Up Strategy█ STRATEGY DESCRIPTION
The "3 Down, 3 Up Strategy" is a mean-reversion strategy designed to capitalize on short-term price reversals. It enters a long position after consecutive bearish closes and exits after consecutive bullish closes. This strategy is NOT optimized and can be used on any timeframes.
█ WHAT ARE CONSECUTIVE DOWN/UP CLOSES?
- Consecutive Down Closes: A sequence of trading bars where each close is lower than the previous close.
- Consecutive Up Closes: A sequence of trading bars where each close is higher than the previous close.
█ SIGNAL GENERATION
1. LONG ENTRY
A Buy Signal is triggered when:
The price closes lower than the previous close for Consecutive Down Closes for Entry (default: 3) consecutive bars.
The signal occurs within the specified time window (between Start Time and End Time).
If enabled, the close price must also be above the 200-period EMA (Exponential Moving Average).
2. EXIT CONDITION
A Sell Signal is generated when the price closes higher than the previous close for Consecutive Up Closes for Exit (default: 3) consecutive bars.
█ ADDITIONAL SETTINGS
Consecutive Down Closes for Entry: Number of consecutive lower closes required to trigger a buy. Default = 3.
Consecutive Up Closes for Exit: Number of consecutive higher closes required to exit. Default = 3.
EMA Filter: Optional 200-period EMA filter to confirm long entries in bullish trends. Default = disabled.
Start Time and End Time: Restrict trading to specific dates (default: 2014-2099).
█ PERFORMANCE OVERVIEW
Designed for volatile markets with frequent short-term reversals.
Performs best when price oscillates between clear support/resistance levels.
The EMA filter improves reliability in trending markets but may reduce trade frequency.
Backtest to optimize consecutive close thresholds and EMA period for specific instruments.
McClellan A-D Volume Integration ModelThe strategy integrates the McClellan A-D Oscillator with an adjustment based on the Advance/Decline (A-D) volume data. The McClellan Oscillator is calculated by taking the difference between the short-term and long-term exponential moving averages (EMAs) of the A-D line. This strategy introduces an enhancement where the A-D volume (the difference between the advancing and declining volume) is factored in to adjust the oscillator value.
Inputs:
• ema_short_length: The length for the short-term EMA of the A-D line.
• ema_long_length: The length for the long-term EMA of the A-D line.
• osc_threshold_long: The threshold below which the oscillator must drop for an entry signal to trigger.
• exit_periods: The number of periods after which the position is closed.
• Data Sources:
• ad_advance and ad_decline are the data sources for advancing and declining issues, respectively.
• vol_advance and vol_decline are the volume data for the advancing and declining issues. If volume data is unavailable, it defaults to na (Not Available), and the fallback logic ensures that the strategy continues to function.
McClellan Oscillator with Volume Adjustment:
• The A-D line is calculated by subtracting the declining issues from the advancing issues. Then, the volume difference is applied to this line, creating a “weighted” A-D line.
• The short and long EMAs are calculated for the weighted A-D line to generate the McClellan Oscillator.
Entry Condition:
• The strategy looks for a reversal signal, where the oscillator falls below the threshold and then rises above it again. The condition is designed to trigger a long position when this reversal happens.
Exit Condition:
• The position is closed after a set number of periods (exit_periods) have passed since the entry.
Plotting:
• The McClellan Oscillator and the threshold are plotted on the chart for visual reference.
• Entry and exit signals are highlighted with background colors to make the signals more visible.
Scientific Background:
The McClellan A-D Oscillator is a popular market breadth indicator developed by Sherman and Marian McClellan. It is used to gauge the underlying strength of a market by analyzing the difference between the number of advancing and declining stocks. The oscillator is typically calculated using exponential moving averages (EMAs) of the A-D line, with the idea being that crossovers of these EMAs indicate potential changes in the market’s direction.
The integration of A-D volume into this model adds another layer of analysis, as volume is often considered a leading indicator of price movement. By factoring in volume, the strategy becomes more sensitive to not just the number of advancing or declining stocks but also how significant those movements are based on trading volume, as discussed in Schwager, J. D. (1999). Technical Analysis of the Financial Markets. This enhanced version aims to capture stronger and more sustainable trends in the market, helping to filter out false signals.
Additionally, volume analysis is often used to confirm price movements, as described in Wyckoff, R. (1931). The Day Trading System. Therefore, incorporating the volume of advancing and declining stocks in the McClellan Oscillator offers a more robust signal for trading decisions.
Swing High/Low Pivots Strategy [LV]The Swing High/Low Pivots Strategy was developed as a counter-momentum trading tool.
The strategy is suitable for any market and the default values used in the input settings menu are set for Bitcoin (best on 15min). These values, expressed in minimum ticks (or pips if symbol is Forex) make this tool perfectly adaptable to every symbol and/or timeframe.
Check tooltips in the settings menu for more details about every user input.
STRTEGY ENTRY & EXIT MECHANISMS:
Trades Entry based on the detection of swing highs and lows for short and long entries respectively, validated by:
- Limit orders placed after each new pivot level confirmation
- Moving averages trend filter (if enabled)
- No active trade currently open
Trades Exit when the price reaches take-profit or stop-loss level as defined in the settings menu. A double entry/second take-profit level can be enabled for partial exits, with dynamic stop-loss adjustment for the remaining position.
Enhanced Trade Precision:
By limiting entries to confirmed swing high (HH, LH) or swing low (HL, LL) pivot points, the strategy ensures that trades occur at levels of significant price reversals. This precision reduces the likelihood of entering trades in the midst of a trend or during uncertain price action.
Risk Management Optimization:
The strategy incorporates clearly defined stop-loss (SL) and take-profit (TP) levels derived from the pivot points. This structured approach minimizes potential losses while locking in profits, which is critical for consistent performance in volatile markets.
Trend Filtering for Better Entry:
The use of a configurable moving average filter adds a layer of trend validation. This prevents entering trades against the dominant market trend, increasing the probability of success for each trade.
Avoidance of Noise:
The lookback period (length parameter) confirms pivots only after a set number of bars, effectively filtering out market noise and ensuring that entries are based on reliable, well-defined price movements.
Adaptability Across Markets:
The strategy is versatile and can be applied across different markets (Forex, stocks, crypto) due to its dynamic use of ticks and pips converters. It adapts seamlessly to varying price scales and asset types.
Dual Quantity Entries:
The original and optionnal double-entry mechanism allows traders to capture both short-term and extended profits by scaling out of positions. This adaptive approach caters to varying risk appetites and market conditions.
Clear Visualization:
The plotted pivot points, entry limits, SL, and TP levels provide visual clarity, making it easy for traders to track the strategy's behavior and make informed decisions.
Automated Execution with Alerts:
Integrated alerts for both entries and exits ensure timely actions without the need for constant market monitoring, enhancing efficiency. Configurable alert messages are suitable for API use.
Any feedback, comments, or suggestions for improvement are always welcome.
Hope you enjoy!
3_SMA_Strategy_V-Singhal by ParthibIndicator Name: 3_SMA_Strategy_V-Singhal by Parthib
Description:
The 3_SMA_Strategy_V-Singhal by Parthib is a dynamic trend-following strategy that combines three key simple moving averages (SMA) — SMA 20, SMA 50, and SMA 200 — to generate buy and sell signals. This strategy uses these SMAs to capture and follow market trends, helping traders identify optimal entry (buy) and exit (sell) points. Additionally, the strategy highlights the closing price (CP), which plays a critical role in confirming buy and sell signals.
The strategy also features a Second Buy Signal triggered if the price falls more than 10% after an initial buy signal, providing a re-entry opportunity with a different visual highlight for the second buy signal.
Features:
Three Simple Moving Averages (SMA):
SMA 20: Short-term moving average reflecting immediate market trends.
SMA 50: Medium-term moving average showing the prevailing trend.
SMA 200: Long-term moving average that indicates the overall market trend.
Buy Signal (B1):
Triggered when:
SMA 200 > SMA 50 > SMA 20, indicating a bullish market structure.
The closing price is positioned below all three SMAs, confirming a potential upward reversal.
A green label appears at the low of the bar with the text B1-Price, indicating the price at which the buy signal is generated.
Second Buy Signal (B2):
Triggered if the price falls more than 10% after the first buy signal, providing an opportunity to re-enter the market at a potentially better price.
A blue label appears at the low of the bar with the text B2-Price, showing the price at which the second buy opportunity arises.
Sell Signal (S):
Triggered when:
SMA 20 > SMA 50 > SMA 200, indicating a bearish trend.
The closing price (CP) is positioned above all three SMAs, confirming a potential downward movement.
A red label appears at the high of the bar with the text S-Price, showing the price at which the sell signal is triggered.
How It Works:
Buy Conditions:
SMA 200 > SMA 50 > SMA 20: Indicates a bullish market where the long-term trend (SMA 200) is above the medium-term (SMA 50), and the medium-term trend is above the short-term (SMA 20).
Closing price below all three SMAs: Confirms that the price is in a favorable position for a potential upward reversal.
Sell Conditions:
SMA 20 > SMA 50 > SMA 200: This setup indicates a bearish trend.
Closing price above all three SMAs: Confirms that the price is in a favorable position for a potential downward movement.
Second Buy Signal (B2): If the price falls more than 10% after the first buy signal, the strategy triggers a second buy opportunity (B2) at a potentially better price. This helps traders take advantage of pullbacks or corrections after an initial favorable entry.
Labeling System:
B1-Price: The first buy signal label, appearing when the market is bullish and the closing price is below all three SMAs.
B2-Price: The second buy signal label, triggered if the price falls more than 10% after the initial buy signal.
S-Price: The sell signal label, appearing when the market turns bearish and the closing price is above all three SMAs.
How to Use:
Add the Indicator: Add "3_SMA_Strategy_V-Singhal by Parthib" to your chart on TradingView.
Interpret Buy Signals (B1): Look for green labels with the text "B1-Price" when the closing price (CP) is below all three SMAs and the trend is bullish.
Interpret Second Buy Signals (B2): If the price falls more than 10% after the first buy, look for blue labels with "B2-Price" and a re-entry opportunity.
Interpret Sell Signals (S): Look for red labels with the text "S-Price" when the market turns bearish, and the closing price (CP) is above all three SMAs.
Conclusion:
The 3_SMA_Strategy_V-Singhal by Parthib is an efficient and simple trend-following tool for traders looking to make informed buy and sell decisions. By combining the power of three SMAs and the closing price (CP) confirmation, this strategy helps traders to buy when the market shows a strong bullish setup and sell when the trend turns bearish. Additionally, the second buy signal feature ensures that traders don’t miss out on re-entry opportunities after price corrections, giving them a chance to re-enter the market at a favorable price.
Smart DCA Strategy (Public)INSPIRATION
While Dollar Cost Averaging (DCA) is a popular and stress-free investment approach, I noticed an opportunity for enhancement. Standard DCA involves buying consistently, regardless of market conditions, which can sometimes mean missing out on optimal investment opportunities. This led me to develop the Smart DCA Strategy – a 'set and forget' method like traditional DCA, but with an intelligent twist to boost its effectiveness.
The goal was to build something more profitable than a standard DCA strategy so it was equally important that this indicator could backtest its own results in an A/B test manner against the regular DCA strategy.
WHY IS IT SMART?
The key to this strategy is its dynamic approach: buying aggressively when the market shows signs of being oversold, and sitting on the sidelines when it's not. This approach aims to optimize entry points, enhancing the potential for better returns while maintaining the simplicity and low stress of DCA.
WHAT THIS STRATEGY IS, AND IS NOT
This is an investment style strategy. It is designed to improve upon the common standard DCA investment strategy. It is therefore NOT a day trading strategy. Feel free to experiment with various timeframes, but it was designed to be used on a daily timeframe and that's how I recommend it to be used.
You may also go months without any buy signals during bull markets, but remember that is exactly the point of the strategy - to keep your buying power on the sidelines until the markets have significantly pulled back. You need to be patient and trust in the historical backtesting you have performed.
HOW IT WORKS
The Smart DCA Strategy leverages a creative approach to using Moving Averages to identify the most opportune moments to buy. A trigger occurs when a daily candle, in its entirety including the high wick, closes below the threshold line or box plotted on the chart. The indicator is designed to facilitate both backtesting and live trading.
HOW TO USE
Settings:
The input parameters for tuning have been intentionally simplified in an effort to prevent users falling into the overfitting trap.
The main control is the Buying strictness scale setting. Setting this to a lower value will provide more buying days (less strict) while higher values mean less buying days (more strict). In my testing I've found level 9 to provide good all round results.
Validation days is a setting to prevent triggering entries until the asset has spent a given number of days (candles) in the overbought state. Increasing this makes entries stricter. I've found 0 to give the best results across most assets.
In the backtest settings you can also configure how much to buy for each day an entry triggers. Blind buy size is the amount you would buy every day in a standard DCA strategy. Smart buy size is the amount you would buy each day a Smart DCA entry is triggered.
You can also experiment with backtesting your strategy over different historical datasets by using the Start date and End date settings. The results table will not calculate for any trades outside what you've set in the date range settings.
Backtesting:
When backtesting you should use the results table on the top right to tune and optimise the results of your strategy. As with all backtests, be careful to avoid overfitting the parameters. It's better to have a setup which works well across many currencies and historical periods than a setup which is excellent on one dataset but bad on most others. This gives a much higher probability that it will be effective when you move to live trading.
The results table provides a clear visual representation as to which strategy, standard or smart, is more profitable for the given dataset. You will notice the columns are dynamically coloured red and green. Their colour changes based on which strategy is more profitable in the A/B style backtest - green wins, red loses. The key metrics to focus on are GOA (Gain on Account) and Avg Cost.
Live Trading:
After you've finished backtesting you can proceed with configuring your alerts for live trading.
But first, you need to estimate the amount you should buy on each Smart DCA entry. We can use the Total invested row in the results table to calculate this. Assuming we're looking to trade on
BTCUSD
Decide how much USD you would spend each day to buy BTC if you were using a standard DCA strategy. Lets say that is $5 per day
Enter that USD amount in the Blind buy size settings box
Check the Blind Buy column in the results table. If we set the backtest date range to the last 10 years, we would expect the amount spent on blind buys over 10 years to be $18,250 given $5 each day
Next we need to tweak the value of the Smart buy size parameter in setting to get it as close as we can to the Total Invested amount for Blind Buy
By following this approach it means we will invest roughly the same amount into our Smart DCA strategy as we would have into a standard DCA strategy over any given time period.
After you have calculated the Smart buy size, you can go ahead and set up alerts on Smart DCA buy triggers.
BOT AUTOMATION
In an effort to maintain the 'set and forget' stress-free benefits of a standard DCA strategy, I have set my personal Smart DCA Strategy up to be automated. The bot runs on AWS and I have a fully functional project for the bot on my GitHub account. Just reach out if you would like me to point you towards it. You can also hook this into any other 3rd party trade automation system of your choice using the pre-configured alerts within the indicator.
PLANNED FUTURE DEVELOPMENTS
Currently this is purely an accumulation strategy. It does not have any sell signals right now but I have ideas on how I will build upon it to incorporate an algorithm for selling. The strategy should gradually offload profits in bull markets which generates more USD which gives more buying power to rinse and repeat the same process in the next cycle only with a bigger starting capital. Watch this space!
MARKETS
Crypto:
This strategy has been specifically built to work on the crypto markets. It has been developed, backtested and tuned against crypto markets and I personally only run it on crypto markets to accumulate more of the coins I believe in for the long term. In the section below I will provide some backtest results from some of the top crypto assets.
Stocks:
I've found it is generally more profitable than a standard DCA strategy on the majority of stocks, however the results proved to be a lot more impressive on crypto. This is mainly due to the volatility and cycles found in crypto markets. The strategy makes its profits from capitalising on pullbacks in price. Good stocks on the other hand tend to move up and to the right with less significant pullbacks, therefore giving this strategy less opportunity to flourish.
Forex:
As this is an accumulation style investment strategy, I do not recommend that you use it to trade Forex.
For more info about this strategy including backtest results, please see the full description on the invite only version of this strategy named "Smart DCA Strategy"
Momentum Zones [TradersPro]OVERVIEW
The Momentum Zones indicator is designed for momentum stock traders to provide a visible trend structure with actionable price levels. The indicator has been designed for high-growth, bullish stocks on a daily time frame but can be used on any chart and timeframe.
Momentum zones help traders focus on the momentum structure of price, enabling disciplined trading plans with specific entry, exit, and risk management levels.
It is built using CCI values, allowing for fixed trend range calculations. It is most effective when applied to screens of stocks with high RSI, year-to-date (YTD) price gains of 25% or higher, as well as stocks showing growth in both sales and earnings quarter-over-quarter and year-over-year.
CONCEPTS
The indicator defines and colors uptrends (green), downtrends (red), and trends in transition or pausing (yellow).
The indicator can be used for new trend entry or trend continuation entry. New trend entry can be done on the first green bar after a red bar. Trend continuation entries can be done with the first green bar after a yellow bar. The yellow transition zones can be used as price buffers for stop-loss management on new entries.
To see the color changes, users need to be sure to uncheck the candlestick color settings. This can be done by right-clicking the chart, going to Symbols, and unchecking the candle color body, border, and wick boxes.
Remember to check them if the indicator is turned off, or the candles will be blank with no color.
The settings also correspond to the screening function to get a list of stocks entering various momentum zones so you can have a prime list of the stocks meeting any other fundamental criteria you may desire. Traders can then use the indicator for the entry and risk structure of the trading plan.
Lot Size & Risk Calculator (All Pairs)this indicator is designed to simplify and optimize risk management. It automatically calculates the ideal lot size based on your account balance, risk percentage, and defined entry and exit levels. Additionally, it includes visual tools to represent stop-loss (SL) and take-profit (TP) levels, helping you trade with precision and consistency.
WHAT IS THIS INDICATOR FOR?
This indicator is essential for traders who want to:
Maintain consistent risk in their trades.
Quickly calculate lot sizes for Forex, XAUUSD, BTCUSD, and US100.
Visualize key levels (Entry, SL, and TP) on the chart.
Monitor potential losses and gains in real time.
COMPATIBLE ASSETS
The Lot Size Calculator works with the following assets:
Forex: Standard currency pairs.
XAUUSD: Gold versus the US dollar.
BTCUSD: Bitcoin versus the US dollar.
US100: Nasdaq 100 index.
Calculations adjust automatically based on the selected asset.
TAKE-PROFIT (TP) LEVELS
The indicator allows you to define up to three take-profit levels:
TP1
TP2
TP3
.
Each level is configurable based on your exit strategy.
DASHBOARD
The dashboard is a visual tool that consolidates key information about your trade:
Account balance: Total amount available in your account.
Lot size: Calculated based on your risk and parameters.
Potential loss (SL): Amount you could lose if the price hits your stop-loss.
Potential gain (TP): Expected profit if the take-profit level is reached.
SETTINGS
The indicator offers multiple configurable options to adapt to your trading style:
Levels
Entry: Initial trade price.
Stop-Loss (SL): Maximum allowed loss level.
Take-Profit (TP): Up to three configurable levels.
Risk Management
Account balance ($): Enter your total available balance.
Risk percentage: Define how much you're willing to risk per trade
.
Visual Options
Visualization style: Choose between simple lines or visual fills.
Colors: Customize the colors of lines and labels.
Dashboard Settings
Statistics: Enable or disable key data display.
Size and position: Adjust the dashboard's size and location on the chart.
HOW TO CHANGE AN ENTRY?
Open the indicator settings in TradingView and entering the new data manually
Removing and re-adding the indicator to the chart
TFMTFM Strategy Explanation
Overview
The TFM (Timeframe Multiplier) strategy is a PineScript trading bot that utilizes multiple timeframes to identify entry and exit points.
Inputs
1. tfm (Timeframe Multiplier): Multiplies the chart's timeframe to create a higher timeframe for analysis.
2. lns (Long and Short): Enables or disables short positions.
Logic
Calculations
1. chartTf: Gets the chart's timeframe in seconds.
2. tfTimes: Calculates the higher timeframe by multiplying chartTf with tfm.
3. MintickerClose and MaxtickerClose: Retrieve the minimum and maximum closing prices from the higher timeframe using request.security.
- MintickerClose: Finds the lowest low when the higher timeframe's close is below its open.
- MaxtickerClose: Finds the highest high when the higher timeframe's close is above its open.
Entries and Exits
1. Long Entry: When the current close price crosses above MaxtickerClose.
2. Short Entry (if lns is true): When the current close price crosses below MintickerClose.
3. Exit Long: When the short condition is met (if lns is false) or when the trade is manually closed.
Strategy
1. Attach the script to a chart.
2. Adjust tfm and lns inputs.
3. Monitor entries and exits.
Example Use Cases
1. Intraday trading with tfm = 2-5.
2. Swing trading with tfm = 10-30.
Tips
1. Experiment with different tfm values.
2. Use lns to control short positions.
3. Combine with other indicators for confirmation.
Adaptive MA Crossover with ATR-Based Risk MarkersDescription:
The Cross MA Entry Indicator with ATR-Based Stop-Loss and Take-Profit Markers is a powerful tool designed to help traders identify trend-following opportunities while managing risk effectively. By combining customizable moving average (MA) crossovers with ATR-based stop-loss (SL) and take-profit (TP) markers, this indicator provides a complete entry and risk management framework in a single script.
Unique Features:
1. Versatile Moving Average Combinations: The indicator allows users to select from four types of moving averages—SMA, EMA, DEMA, and TEMA—for both fast and slow lines, enabling a variety of crossover configurations. This flexibility helps traders tailor entry signals to specific trading strategies, asset types, or market conditions, enhancing the adaptability of the indicator across different styles and preferences.
2. ATR-Based Dynamic Risk Management: Leveraging the Average True Range (ATR), the indicator dynamically calculates stop-loss and take-profit levels based on market volatility. This approach adjusts to changing market conditions, making it more responsive and reliable for setting realistic, volatility-based risk parameters.
3. Customizable Risk/Reward Ratio: Users can define their preferred risk/reward ratio (e.g., 2:1, 3:1) to tailor take-profit levels relative to stop-loss distances. This feature empowers traders to align trades with their individual risk management strategies and objectives, while maintaining consistency and discipline in execution.
4. Streamlined Visualization of Entry and Risk Levels: Upon a crossover, the indicator places discrete markers at the calculated SL and TP levels, avoiding clutter while providing traders with an immediate view of potential risk and reward. Small dots represent SL and TP levels, offering a clean, clear display of critical decision points.
How to Use:
1. Entry Signals from MA Crossovers: This indicator generates entry signals when the selected moving averages cross, with green markers indicating long entries and red markers indicating short entries. The customizable MA selection enables traders to optimize crossover signals for various timeframes and asset classes.
2. Integrated Risk Markers: SL and TP levels are shown as small dots at the crossover point, based on the ATR multiplier and risk/reward ratio settings. These markers allow traders to quickly visualize the defined risk and potential reward for each entry.
This indicator offers a comprehensive solution for trend-following strategies by combining entry signals with adaptive risk management. Suitable for multiple timeframes, it allows for backtesting and adjustments to ATR and risk/reward parameters for improved alignment with individual trading goals. As with all strategies, thorough testing is recommended to ensure compatibility with your trading approach.
Stoch RSI and RSI Buy/Sell Signals with MACD Trend FilterDescription of the Indicator
This Pine Script is designed to provide traders with buy and sell signals based on the combination of Stochastic RSI, RSI, and MACD indicators, enhanced by the confirmation of candle colors. The primary goal is to facilitate informed trading decisions in various market conditions by utilizing different indicators and their interactions. The script allows customization of various parameters, providing flexibility for traders to adapt it to their specific trading styles.
Usefulness
This indicator is not just a mashup of existing indicators; it integrates the functionality of multiple momentum and trend-detection methods into a cohesive trading tool. The combination of Stochastic RSI, RSI, and MACD offers a well-rounded approach to analyzing market conditions, allowing traders to identify entry and exit points effectively. The inclusion of color-coded signals (strong vs. weak) further enhances its utility by providing visual cues about the strength of the signals.
How to Use This Indicator
Input Settings: Adjust the parameters for the Stochastic RSI, RSI, and MACD to fit your trading style. Set the overbought/oversold levels according to your risk tolerance.
Signal Colors:
Strong Buy Signal: Indicated by a green label and confirmed by a green candle (close > open).
Weak Buy Signal: Indicated by a blue label and confirmed by a green candle (close > open).
Strong Sell Signal: Indicated by a red label and confirmed by a red candle (close < open).
Weak Sell Signal: Indicated by an orange label and confirmed by a red candle (close < open).
Example Trading Strategy Using This Indicator
To effectively use this indicator as part of your trading strategy, follow these detailed steps:
Setup:
Timeframe : Select a timeframe that aligns with your trading style (e.g., 15-minute for intraday, 1-hour for swing trading, or daily for longer-term positions).
Indicator Settings : Customize the Stochastic RSI, RSI, and MACD parameters to suit your trading approach. Adjust overbought/oversold levels to match your risk tolerance.
Strategy:
1. Strong Buy Entry Criteria :
Wait for a strong buy signal (green label) when the RSI is at or below the oversold level (e.g., ≤ 35), indicating a deeply oversold market. Confirm that the MACD shows a decreasing trend (bearish momentum weakening) to validate a potential reversal. Ensure the current candle is green (close > open) if candle color confirmation is enabled.
Example Use : On a 1-hour chart, if the RSI drops below 35, MACD shows three consecutive bars of decreasing negative momentum, and a green candle forms, enter a buy position. This setup signals a robust entry with strong momentum backing it.
2. Weak Buy Entry Criteria :
Monitor for weak buy signals (blue label) when RSI is above the oversold level but still below the neutral (e.g., between 36 and 50). This indicates a market recovering from an oversold state but not fully reversing yet. These signals can be used for early entries with additional confirmations, such as support levels or higher timeframe trends.
Example Use : On the same 1-hour chart, if RSI is at 45, the MACD shows momentum stabilizing (not necessarily negative), and a green candle appears, consider a partial or cautious entry. Use this as an early warning for a potential bullish move, especially when higher timeframe indicators align.
3. Strong Sell Entry Criteria :
Look for a strong sell signal (red label) when RSI is at or above the overbought level (e.g., ≥ 65), signaling a strong overbought condition. The MACD should show three consecutive bars of increasing positive momentum to indicate that the bullish trend is weakening. Ensure the current candle is red (close < open) if candle color confirmation is enabled.
Example Use : If RSI reaches 70, MACD shows increasing momentum that starts to level off, and a red candle forms on a 1-hour chart, initiate a short position with a stop loss set above recent resistance. This is a high-confidence signal for potential price reversal or pullback.
4. Weak Sell Entry Criteria :
Use weak sell signals (orange label) when RSI is between the neutral and overbought levels (e.g., between 50 and 64). These can indicate potential short opportunities that might not yet be fully mature but are worth monitoring. Look for other confirmations like resistance levels or trendline touches to strengthen the signal.
Example Use : If RSI reads 60 on a 1-hour chart, and the MACD shows slight positive momentum with signs of slowing down, place a cautious sell position or scale out of existing long positions. This setup allows you to prepare for a possible downtrend.
Trade Management:
Stop Loss : For buy trades, place stop losses below recent swing lows. For sell trades, set stops above recent swing highs to manage risk effectively.
Take Profit : Target nearby resistance or support levels, apply risk-to-reward ratios (e.g., 1:2), or use trailing stops to lock in profits as price moves in your favor.
Confirmation : Align these signals with broader trends on higher timeframes. For example, if you receive a weak buy signal on a 15-minute chart, check the 1-hour or daily chart to ensure the overall trend is not bearish.
Real-World Example: Imagine trading on a 15-minute chart :
For a buy:
A strong buy signal (green) appears when the RSI dips to 32, MACD shows declining bearish momentum, and a green candle forms. Enter a buy position with a stop loss below the most recent support level.
Alternatively, a weak buy signal (blue) appears when RSI is at 47. Use this as a signal to start monitoring the market closely or enter a smaller position if other indicators (like support and volume analysis) align.
For a sell:
A strong sell signal (red) with RSI at 72 and a red candle signals to short with conviction. Place your stop loss just above the last peak.
A weak sell signal (orange) with RSI at 62 might prompt caution but can still be acted on if confirmed by declining volume or touching a resistance level.
These strategies show how to blend both strong and weak signals into your trading for more nuanced decision-making.
Technical Analysis of the Code
1. Stochastic RSI Calculation:
The script calculates the Stochastic RSI (stochRsiK) using the RSI as input and smooths it with a moving average (stochRsiD).
Code Explanation : ta.stoch(rsi, rsi, rsi, stochLength) computes the Stochastic RSI, and ta.sma(stochRsiK, stochSmoothing) applies smoothing.
2. RSI Calculation :
The RSI is computed over a user-defined period and checks for overbought or oversold conditions.
Code Explanation : rsi = ta.rsi(close, rsiLength) calculates RSI values.
3. MACD Trend Filter :
MACD is calculated with fast, slow, and signal lengths, identifying trends via three consecutive bars moving in the same direction.
Code Explanation : = ta.macd(close, macdLengthFast, macdLengthSlow, macdSignalLength) sets MACD values. Conditions like macdLine < macdLine confirm trends.
4. Buy and Sell Conditions :
The script checks Stochastic RSI, RSI, and MACD values to set buy/sell flags. Candle color filters further confirm valid entries.
Code Explanation : buyConditionMet and sellConditionMet logically check all conditions and toggles (enableStochCondition, enableRSICondition, etc.).
5. Signal Flags and Confirmation :
Flags track when conditions are met and ensure signals only appear on appropriate candle colors.
Code Explanation : Conditional blocks (if statements) update buyFlag and sellFlag.
6. Labels and Alerts :
The indicator plots "BUY" or "SELL" labels with the RSI value when signals trigger and sets alerts through alertcondition().
Code Explanation : label.new() displays the signal, color-coded for strength based on RSI.
NOTE : All strategies can be enabled or disabled in the settings, allowing traders to customize the indicator to their preferences and trading styles.
Harmony Signal Flow By ArunThis Pine Script strategy, titled "Harmony Signal Flow By Arun," uses the Relative Strength Index (RSI) indicator to generate buy and sell signals based on custom thresholds. The script incorporates stop-loss and target management and restricts new trades until the previous position closes. Here's a detailed description:
Custom RSI Metric:
The strategy calculates a 5-period RSI based on the closing price, aiming for a more responsive measure of price momentum.
RSI thresholds are defined:
Lower threshold (30): Indicates oversold conditions, triggering a potential buy.
Upper threshold (70): Indicates overbought conditions, prompting a possible sell.
Entry Conditions:
Buy Signal: The strategy initiates a buy order when the RSI crosses above the lower threshold (30), indicating a shift from oversold conditions.
Sell Signal: A sell order is triggered when the RSI crosses below the upper threshold (70), suggesting an overbought reversal.
Only one order (buy or sell) can be active at a time, ensuring that a new trade begins only when there’s no existing position.
Stop-Loss and Target Management:
For each trade, stop-loss and target conditions are applied to manage risk and secure profits.
For Buy Positions:
Stop-loss is set 100 points below the entry price.
Target is set 150 points above the entry price.
For Sell Positions:
Stop-loss is set 100 points above the entry price.
Target is 150 points below the entry price.
The strategy closes the trade when either the stop-loss or target is met, marking the trade as "closed" and allowing a new trade entry.
Trade Sequencing:
A new trade (buy or sell) is only permitted after the previous position hits either its stop-loss or target, preventing overlapping trades and ensuring clear trade sequences.
This sequential approach enhances risk management by ensuring only one active position at any time.
End-of-Day Closure:
All open positions are closed automatically at 3:25 PM (Indian market time) to avoid overnight exposure, ensuring the strategy remains strictly intraday.
The flag for trade entry is reset at the end of each day, enabling fresh trades the next day.
Chart Indicators:
The script plots buy and sell signals directly on the chart with visible labels.
It also displays the custom RSI metric with horizontal lines for the lower and upper thresholds, providing visual cues for entry and exit points.
Summary
This strategy is a momentum-based intraday trading approach that uses the RSI for identifying potential reversals and manages trades through predefined stop-loss and target levels. By enforcing trade sequencing and closing positions at the end of the trading day, it prioritizes risk management and seeks to capitalize on short-term trends while avoiding overnight market risks.
Price Action StrategyThe **Price Action Strategy** is a tool designed to capture potential market reversals by utilizing classic reversal candlestick patterns such as Hammer, Shooting Star, Doji, and Pin Bar near dinamic support and resistance levels.
***Note to moderators
- The moving average was removed from the strategy because it was not suitable for the strategy and not participating in the entry or exit criteria.
- The moving average length has been replaced/renamed by the support/resistance lenght.
- The bullish engulfing and bearish engulfing patterns were also removed because in practice they were not working as entry criteria, since the candle price invariably closes far from the support/resistance level even considering the sensitivity range. There was no change in the backtest results after removing these patterns.
### Key Elements of the Strategy
1. Support and Resistance Levels
- Support and resistance are pivotal price levels where the asset has previously struggled to move lower (support) or higher (resistance). These levels act as psychological barriers where buying interest (at support) or selling interest (at resistance) often increases, potentially causing price reversals.
- In this strategy, support is calculated as the lowest low and resistance as the highest high over a 16-period length. When the price nears these levels, it indicates possible zones for a reversal, and the strategy looks for specific candlestick patterns to confirm an entry.
2. Candlestick Patterns
- This strategy uses classic reversal patterns, including:
- **Hammer**: Indicates a buy signal, suggesting rejection of lower prices.
- **Shooting Star**: Suggests a sell signal, showing rejection of higher prices.
- **Doji**: Reflects indecision and potential reversal.
- **Pin Bar**: Represents price rejection with a long shadow, often signaling a reversal.
By combining these reversal patterns with the proximity to dinamic support or resistance levels, the strategy aims to capture potential reversal movements.
3. Sensitivity Level
- The sensitivity parameter adjusts the acceptable range (Default 0.018 = 1.8%) around support and resistance levels within which reversal patterns can trigger trades (i.e. the closing price of the candle must occur within the specified range defined by the sensitivity parameter). A higher sensitivity value expands this range, potentially leading to less accurate signals, as it may allow for more false positives.
4. Entry Criteria
- **Buy (Long)**: A Hammer, Doji, or Pin Bar pattern near support.
- **Sell (Short)**: A Shooting Star, Doji, or Pin Bar near resistance.
5. Exit criteria
- Take profit = 9.5%
- Stop loss = 16%
6. No Repainting
- The Price Action Strategy is not subject to repainting.
7. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 16% from the entry price. This way, the strategy is putting at risk about 16% of 35% of equity, that is, around 5.6% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
8. Backtest results
- This strategy was subjected to deep backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
9. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Only the candlestick pattern that generated the entry signal to triger the trade is identified and labeled on the chart. During the operation, the occurrence of new Doji, Pin Bar, Hammer and Shooting Star patterns will not be demonstrated on the chart, since the exit criteria are based on percentage take profit and stop loss.
Doji:
Pin Bar and Doji
Shooting Star and Doji
Hammer
10. Default settings
Chart timeframe: 20 min
Moving average lenght: 16
Sensitivity: 0.018
Stop loss (%): 16
Take Profit (%): 9.5
BYBIT:1000000MOGUSDT.P
ICT Master Suite [Trading IQ]Hello Traders!
We’re excited to introduce the ICT Master Suite by TradingIQ, a new tool designed to bring together several ICT concepts and strategies in one place.
The Purpose Behind the ICT Master Suite
There are a few challenges traders often face when using ICT-related indicators:
Many available indicators focus on one or two ICT methods, which can limit traders who apply a broader range of ICT related techniques on their charts.
There aren't many indicators for ICT strategy models, and we couldn't find ICT indicators that allow for testing the strategy models and setting alerts.
Many ICT related concepts exist in the public domain as indicators, not strategies! This makes it difficult to verify that the ICT concept has some utility in the market you're trading and if it's worth trading - it's difficult to know if it's working!
Some users might not have enough chart space to apply numerous ICT related indicators, which can be restrictive for those wanting to use multiple ICT techniques simultaneously.
The ICT Master Suite is designed to offer a comprehensive option for traders who want to apply a variety of ICT methods. By combining several ICT techniques and strategy models into one indicator, it helps users maximize their chart space while accessing multiple tools in a single slot.
Additionally, the ICT Master Suite was developed as a strategy . This means users can backtest various ICT strategy models - including deep backtesting. A primary goal of this indicator is to let traders decide for themselves what markets to trade ICT concepts in and give them the capability to figure out if the strategy models are worth trading!
What Makes the ICT Master Suite Different
There are many ICT-related indicators available on TradingView, each offering valuable insights. What the ICT Master Suite aims to do is bring together a wider selection of these techniques into one tool. This includes both key ICT methods and strategy models, allowing traders to test and activate strategies all within one indicator.
Features
The ICT Master Suite offers:
Multiple ICT strategy models, including the 2022 Strategy Model and Unicorn Model, which can be built, tested, and used for live trading.
Calculation and display of key price areas like Breaker Blocks, Rejection Blocks, Order Blocks, Fair Value Gaps, Equal Levels, and more.
The ability to set alerts based on these ICT strategies and key price areas.
A comprehensive, yet practical, all-inclusive ICT indicator for traders.
Customizable Timeframe - Calculate ICT concepts on off-chart timeframes
Unicorn Strategy Model
2022 Strategy Model
Liquidity Raid Strategy Model
OTE (Optimal Trade Entry) Strategy Model
Silver Bullet Strategy Model
Order blocks
Breaker blocks
Rejection blocks
FVG
Strong highs and lows
Displacements
Liquidity sweeps
Power of 3
ICT Macros
HTF previous bar high and low
Break of Structure indications
Market Structure Shift indications
Equal highs and lows
Swings highs and swing lows
Fibonacci TPs and SLs
Swing level TPs and SLs
Previous day high and low TPs and SLs
And much more! An ongoing project!
How To Use
Many traders will already be familiar with the ICT related concepts listed above, and will find using the ICT Master Suite quite intuitive!
Despite this, let's go over the features of the tool in-depth and how to use the tool!
The image above shows the ICT Master Suite with almost all techniques activated.
ICT 2022 Strategy Model
The ICT Master suite provides the ability to test, set alerts for, and live trade the ICT 2022 Strategy Model.
The image above shows an example of a long position being entered following a complete setup for the 2022 ICT model.
A liquidity sweep occurs prior to an upside breakout. During the upside breakout the model looks for the FVG that is nearest 50% of the setup range. A limit order is placed at this FVG for entry.
The target entry percentage for the range is customizable in the settings. For instance, you can select to enter at an FVG nearest 33% of the range, 20%, 66%, etc.
The profit target for the model generally uses the highest high of the range (100%) for longs and the lowest low of the range (100%) for shorts. Stop losses are generally set at 0% of the range.
The image above shows the short model in action!
Whether you decide to follow the 2022 model diligently or not, you can still set alerts when the entry condition is met.
ICT Unicorn Model
The image above shows an example of a long position being entered following a complete setup for the ICT Unicorn model.
A lower swing low followed by a higher swing high precedes the overlap of an FVG and breaker block formed during the sequence.
During the upside breakout the model looks for an FVG and breaker block that formed during the sequence and overlap each other. A limit order is placed at the nearest overlap point to current price.
The profit target for this example trade is set at the swing high and the stop loss at the swing low. However, both the profit target and stop loss for this model are configurable in the settings.
For Longs, the selectable profit targets are:
Swing High
Fib -0.5
Fib -1
Fib -2
For Longs, the selectable stop losses are:
Swing Low
Bottom of FVG or breaker block
The image above shows the short version of the Unicorn Model in action!
For Shorts, the selectable profit targets are:
Swing Low
Fib -0.5
Fib -1
Fib -2
For Shorts, the selectable stop losses are:
Swing High
Top of FVG or breaker block
The image above shows the profit target and stop loss options in the settings for the Unicorn Model.
Optimal Trade Entry (OTE) Model
The image above shows an example of a long position being entered following a complete setup for the OTE model.
Price retraces either 0.62, 0.705, or 0.79 of an upside move and a trade is entered.
The profit target for this example trade is set at the -0.5 fib level. This is also adjustable in the settings.
For Longs, the selectable profit targets are:
Swing High
Fib -0.5
Fib -1
Fib -2
The image above shows the short version of the OTE Model in action!
For Shorts, the selectable profit targets are:
Swing Low
Fib -0.5
Fib -1
Fib -2
Liquidity Raid Model
The image above shows an example of a long position being entered following a complete setup for the Liquidity Raid Modell.
The user must define the session in the settings (for this example it is 13:30-16:00 NY time).
During the session, the indicator will calculate the session high and session low. Following a “raid” of either the session high or session low (after the session has completed) the script will look for an entry at a recently formed breaker block.
If the session high is raided the script will look for short entries at a bearish breaker block. If the session low is raided the script will look for long entries at a bullish breaker block.
For Longs, the profit target options are:
Swing high
User inputted Lib level
For Longs, the stop loss options are:
Swing low
User inputted Lib level
Breaker block bottom
The image above shows the short version of the Liquidity Raid Model in action!
For Shorts, the profit target options are:
Swing Low
User inputted Lib level
For Shorts, the stop loss options are:
Swing High
User inputted Lib level
Breaker block top
Silver Bullet Model
The image above shows an example of a long position being entered following a complete setup for the Silver Bullet Modell.
During the session, the indicator will determine the higher timeframe bias. If the higher timeframe bias is bullish the strategy will look to enter long at an FVG that forms during the session. If the higher timeframe bias is bearish the indicator will look to enter short at an FVG that forms during the session.
For Longs, the profit target options are:
Nearest Swing High Above Entry
Previous Day High
For Longs, the stop loss options are:
Nearest Swing Low
Previous Day Low
The image above shows the short version of the Silver Bullet Model in action!
For Shorts, the profit target options are:
Nearest Swing Low Below Entry
Previous Day Low
For Shorts, the stop loss options are:
Nearest Swing High
Previous Day High
Order blocks
The image above shows indicator identifying and labeling order blocks.
The color of the order blocks, and how many should be shown, are configurable in the settings!
Breaker Blocks
The image above shows indicator identifying and labeling order blocks.
The color of the breaker blocks, and how many should be shown, are configurable in the settings!
Rejection Blocks
The image above shows indicator identifying and labeling rejection blocks.
The color of the rejection blocks, and how many should be shown, are configurable in the settings!
Fair Value Gaps
The image above shows indicator identifying and labeling fair value gaps.
The color of the fair value gaps, and how many should be shown, are configurable in the settings!
Additionally, you can select to only show fair values gaps that form after a liquidity sweep. Doing so reduces "noisy" FVGs and focuses on identifying FVGs that form after a significant trading event.
The image above shows the feature enabled. A fair value gap that occurred after a liquidity sweep is shown.
Market Structure
The image above shows the ICT Master Suite calculating market structure shots and break of structures!
The color of MSS and BoS, and whether they should be displayed, are configurable in the settings.
Displacements
The images above show indicator identifying and labeling displacements.
The color of the displacements, and how many should be shown, are configurable in the settings!
Equal Price Points
The image above shows the indicator identifying and labeling equal highs and equal lows.
The color of the equal levels, and how many should be shown, are configurable in the settings!
Previous Custom TF High/Low
The image above shows the ICT Master Suite calculating the high and low price for a user-defined timeframe. In this case the previous day’s high and low are calculated.
To illustrate the customizable timeframe function, the image above shows the indicator calculating the previous 4 hour high and low.
Liquidity Sweeps
The image above shows the indicator identifying a liquidity sweep prior to an upside breakout.
The image above shows the indicator identifying a liquidity sweep prior to a downside breakout.
The color and aggressiveness of liquidity sweep identification are adjustable in the settings!
Power Of Three
The image above shows the indicator calculating Po3 for two user-defined higher timeframes!
Macros
The image above shows the ICT Master Suite identifying the ICT macros!
ICT Macros are only displayable on the 5 minute timeframe or less.
Strategy Performance Table
In addition to a full-fledged TradingView backtest for any of the ICT strategy models the indicator offers, a quick-and-easy strategy table exists for the indicator!
The image above shows the strategy performance table in action.
Keep in mind that, because the ICT Master Suite is a strategy script, you can perform fully automatic backtests, deep backtests, easily add commission and portfolio balance and look at pertinent metrics for the ICT strategies you are testing!
Lite Mode
Traders who want the cleanest chart possible can toggle on “Lite Mode”!
In Lite Mode, any neon or “glow” like effects are removed and key levels are marked as strict border boxes. You can also select to remove box borders if that’s what you prefer!
Settings Used For Backtest
For the displayed backtest, a starting balance of $1000 USD was used. A commission of 0.02%, slippage of 2 ticks, a verify price for limit orders of 2 ticks, and 5% of capital investment per order.
A commission of 0.02% was used due to the backtested asset being a perpetual future contract for a crypto currency. The highest commission (lowest-tier VIP) for maker orders on many exchanges is 0.02%. All entered positions take place as maker orders and so do profit target exits. Stop orders exist as stop-market orders.
A slippage of 2 ticks was used to simulate more realistic stop-market orders. A verify limit order settings of 2 ticks was also used. Even though BTCUSDT.P on Binance is liquid, we just want the backtest to be on the safe side. Additionally, the backtest traded 100+ trades over the period. The higher the sample size the better; however, this example test can serve as a starting point for traders interested in ICT concepts.
Community Assistance And Feedback
Given the complexity and idiosyncratic applications of ICT concepts amongst its proponents, the ICT Master Suite’s built-in strategies and level identification methods might not align with everyone's interpretation.
That said, the best we can do is precisely define ICT strategy rules and concepts to a repeatable process, test, and apply them! Whether or not an ICT strategy is trading precisely how you would trade it, seeing the model in action, taking trades, and with performance statistics is immensely helpful in assessing predictive utility.
If you think we missed something, you notice a bug, have an idea for strategy model improvement, please let us know! The ICT Master Suite is an ongoing project that will, ideally, be shaped by the community.
A big thank you to the @PineCoders for their Time Library!
Thank you!
Candle Range Theory | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Candle Range Theory Indicator! This powerful tool offers a strategy built around the Candle Range Theory, which analyzes market movements through the relative size and structure of price candles. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new Candle Range Theory Indicator :
Implementation of the Candle Range Theory
FVG & Order Block Entry Methods
2 Different TP / SL Methods
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The Candle Range Theory (CRT) indicator operates by identifying significant price movements through the relative size and structure of candlesticks. A key part of the strategy is determining large candles based on their range compared to the Average True Range (ATR) in a higher timeframe. Once identified, a breakout of either the high wick or the low wick of the large candle is required. This breakout is considered a liquidity grab. After that, the indicator waits for confirmation through Fair Value Gaps (FVGs) or Order Blocks (OBs). The confirmation structure must be the opposite direction of the breakout, for example if the high wick is broken, a bearish FVG is required for the short entry. After a confirmation signal is received, the indicator will trigger entry points based on your chosen entry method (FVG or OB), and exit points will be calculated using either a dynamic ATR-based TP/SL method or fixed percentages. Alerts for Buy, Sell, Take-Proft, and Stop-Loss are available.
🚩 UNIQUENESS
This indicator stands out because it combines two highly effective entry methods: Fair Value Gaps (FVGs) and Order Blocks (OBs). You can choose between these strategies depending on market conditions. Additionally, the dynamic TP/SL system uses the ticker's volatility to automatically calculate stop-loss and take-profit targets. The backtesting dashboard provides metrics about the performance of the indicator. You can use it to tune the settings for best use in the current tiker. The Candle Range Theory approach offers more flexibility compared to traditional indicators, allowing for better customization and control based on your risk tolerance.
⚙️ SETTINGS
1. General Configuration
Higher Timeframe: Customize the higher timeframe for analysis. Recommended combinations include M15 -> H4, H4 -> Daily, Daily -> Weekly, and Weekly -> Monthly.
HTF Candle Size: Define the size of the higher timeframe candles as Big, Normal, or Small to filter valid setups based on their range relative to ATR.
Entry Mode: Choose between FVGs and Order Blocks for your entry triggers.
Require Retracement: Enable this option if you want a retracement to the FVG or OB for entry confirmation.
Show HTF Candle Lines: Toggle to display the higher timeframe candle lines for better visual clarity.
2. Fair Value Gaps
FVG Sensitivity: You may select between Low, Normal, High or Extreme FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivities resulting in spotting bigger FVGs, and higher sensitivities resulting in spotting all sizes of FVGs.
3. Order Blocks
Swing Length: Swing length is used when finding order block formations. Smaller values will result in finding smaller order blocks.
4. TP / SL
TP / SL Method:
a) Dynamic: The TP / SL zones will be auto-determined by the algorithm based on the Average True Range (ATR) of the current ticker.
b) Fixed : You can adjust the exact TP / SL ratios from the settings below.
Dynamic Risk: The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
Gold Scalping Strategy with Precise EntriesThe Gold Scalping Strategy with Precise Entries is designed to take advantage of short-term price movements in the gold market (XAU/USD). This strategy uses a combination of technical indicators and chart patterns to identify precise buy and sell opportunities during times of consolidation and trend continuation.
Key Elements of the Strategy:
Exponential Moving Averages (EMAs):
50 EMA: Used as the shorter-term moving average to detect the recent price trend.
200 EMA: Used as the longer-term moving average to determine the overall market trend.
Trend Identification:
A bullish trend is identified when the 50 EMA is above the 200 EMA.
A bearish trend is identified when the 50 EMA is below the 200 EMA.
Average True Range (ATR):
ATR (14) is used to calculate the market's volatility and to set a dynamic stop loss based on recent price movements. Higher ATR values indicate higher volatility.
ATR helps define a suitable stop-loss distance from the entry point.
Relative Strength Index (RSI):
RSI (14) is used as a momentum oscillator to detect overbought or oversold conditions.
However, in this strategy, the RSI is primarily used as a consolidation filter to look for neutral zones (between 45 and 55), which may indicate a potential breakout or trend continuation after a consolidation phase.
Engulfing Patterns:
Bullish Engulfing: A bullish signal is generated when the current candle fully engulfs the previous bearish candle, indicating potential upward momentum.
Bearish Engulfing: A bearish signal is generated when the current candle fully engulfs the previous bullish candle, signaling potential downward momentum.
Precise Entry Conditions:
Long (Buy):
The 50 EMA is above the 200 EMA (bullish trend).
The RSI is between 45 and 55 (neutral/consolidation zone).
A bullish engulfing pattern occurs.
The price closes above the 50 EMA.
Short (Sell):
The 50 EMA is below the 200 EMA (bearish trend).
The RSI is between 45 and 55 (neutral/consolidation zone).
A bearish engulfing pattern occurs.
The price closes below the 50 EMA.
Take Profit and Stop Loss:
Take Profit: A fixed 20-pip target (where 1 pip = 0.10 movement in gold) is used for each trade.
Stop Loss: The stop-loss is dynamically set based on the ATR, ensuring that it adapts to current market volatility.
Visual Signals:
Buy and sell signals are visually plotted on the chart using green and red labels, indicating precise points of entry.
Advantages of This Strategy:
Trend Alignment: The strategy ensures that trades are taken in the direction of the overall trend, as indicated by the 50 and 200 EMAs.
Volatility Adaptation: The use of ATR allows the stop loss to adapt to the current market conditions, reducing the risk of premature exits in volatile markets.
Precise Entries: The combination of engulfing patterns and the neutral RSI zone provides a high-probability entry signal that captures momentum after consolidation.
Quick Scalping: With a fixed 20-pip profit target, the strategy is designed to capture small price movements quickly, which is ideal for scalping.
This strategy can be applied to lower timeframes (such as 1-minute, 5-minute, or 15-minute charts) for frequent trade opportunities in gold trading, making it suitable for day traders or scalpers. However, proper risk management should always be used due to the inherent volatility of gold.
Adaptive MA Scalping StrategyAdaptive MA Scalping Strategy
The Adaptive MA Scalping Strategy is an innovative trading approach that merges the strengths of the Kaufman's Adaptive Moving Average (KAMA) with the Moving Average Convergence Divergence (MACD) histogram. This combination results in a momentum-adaptive moving average that dynamically adjusts to market conditions, providing traders with timely and reliable signals.
How It Works
Kaufman's Adaptive Moving Average (KAMA): Unlike traditional moving averages, KAMA adjusts its sensitivity based on market volatility. It becomes more responsive during trending markets and less sensitive during periods of consolidation, effectively filtering out market noise.
MACD Histogram Integration: The strategy incorporates the MACD histogram, a momentum indicator that measures the difference between a fast and a slow exponential moving average (EMA). By adding the MACD histogram values to the KAMA, the strategy creates a new line—the momentum-adaptive moving average (MOMA)—which captures both trend direction and momentum.
Signal Generation:
Long Entry: The strategy enters a long position when the closing price crosses above the MOMA. This indicates a potential upward momentum shift.
Exit Position: The position is closed when the closing price crosses below the MOMA, signaling a potential decline in momentum.
Cloud Calculation Detail
The MOMA is calculated by adding the MACD histogram value to the KAMA of the price. This addition effectively adjusts the KAMA based on the momentum indicated by the MACD histogram. When momentum is strong, the MACD histogram will have higher values, causing the MOMA to adjust accordingly and provide earlier entry or exit signals.
Performance on Stocks
This strategy has demonstrated excellent performance on stocks when applied to the 1-hour timeframe. Its adaptive nature allows it to respond swiftly to market changes, capturing profitable trends while minimizing the impact of false signals caused by market noise. The combination of KAMA's adaptability and MACD's momentum detection makes it particularly effective in volatile market conditions commonly seen in stock trading.
Key Parameters
KAMA Length (malen): Determines the sensitivity of the KAMA. A length of 100 is used to balance responsiveness with noise reduction.
MACD Fast Length (fast): Sets the period for the fast EMA in the MACD calculation. A value of 24 helps in capturing short-term momentum changes.
MACD Slow Length (slow): Sets the period for the slow EMA in the MACD calculation. A value of 52 smooths out longer-term trends.
MACD Signal Length (signal): Determines the period for the signal line in the MACD calculation. An 18-period signal line is used for timely crossovers.
Advantages of the Strategy
Adaptive to Market Conditions: By adjusting to both volatility and momentum, the strategy remains effective across different market phases.
Enhanced Signal Accuracy: The fusion of KAMA and MACD reduces false signals, improving the accuracy of trade entries and exits.
Simplicity in Execution: With straightforward entry and exit rules based on price crossovers, the strategy is user-friendly for traders at all experience levels
Crypto Volatility Bitcoin Correlation Strategy Description:
The Crypto Volatility Bitcoin Correlation Strategy is designed to leverage market volatility specifically in Bitcoin (BTC) using a combination of volatility indicators and trend-following techniques. This strategy utilizes the VIXFix (a volatility indicator adapted for crypto markets) and the BVOL7D (Bitcoin 7-Day Volatility Index from BitMEX) to identify periods of high volatility, while confirming trends with the Exponential Moving Average (EMA). These components work together to offer a comprehensive system that traders can use to enter positions when volatility and trends are aligned in their favor.
Key Features:
VIXFix (Volatility Index for Crypto Markets): This indicator measures the highest price of Bitcoin over a set period and compares it with the current low price to gauge market volatility. A rise in VIXFix indicates increasing market volatility, signaling that large price movements could occur.
BVOL7D (Bitcoin 7-Day Volatility Index): This volatility index, provided by BitMEX, measures the volatility of Bitcoin over the past 7 days. It helps traders monitor the recent volatility trend in the market, particularly useful when making short-term trading decisions.
Exponential Moving Average (EMA): The 50-period EMA acts as a trend indicator. When the price is above the EMA, it suggests the market is in an uptrend, and when the price is below the EMA, it suggests a downtrend.
How It Works:
Long Entry: A long position is triggered when both the VIXFix and BVOL7D indicators are rising, signaling increased volatility, and the price is above the 50-period EMA, confirming that the market is trending upward.
Exit: The strategy exits the position when the price crosses below the 50-period EMA, which signals a potential weakening of the uptrend and a decrease in volatility.
This strategy ensures that traders only enter positions when the volatility aligns with a clear trend, minimizing the risk of entering trades during periods of market uncertainty.
Testing and Timeframe:
This strategy has been tested on Bitcoin using the daily timeframe, which provides a longer-term perspective on market trends and volatility. However, users can adjust the timeframe according to their trading preferences. It is crucial to note that this strategy does not include comprehensive risk management, aside from the exit condition when the price crosses below the EMA. Users are strongly advised to implement their own risk management techniques, such as setting appropriate stop-loss levels, to safeguard their positions during high volatility periods.
Utility:
The Crypto Volatility Bitcoin Correlation Strategy is particularly well-suited for traders who aim to capitalize on the high volatility often seen in the Bitcoin market. By combining volatility measurements (VIXFix and BVOL7D) with a trend-following mechanism (EMA), this strategy helps identify optimal moments for entering and exiting trades. This approach ensures that traders participate in potentially profitable market moves while minimizing exposure during times of uncertainty.
Use Cases:
Volatility-Based Entries: Traders looking to take advantage of market volatility spikes will find this strategy useful for timing entry points during market swings.
Trend Confirmation: By using the EMA as a confirmation tool, traders can avoid entering trades that go against the trend, which can result in significant losses during volatile market conditions.
Risk Management: While the strategy exits when price falls below the EMA, it is important to recognize that this is not a full risk management system. Traders should use caution and integrate additional risk measures, such as stop-losses and position sizing, to better manage potential losses.
How to Use:
Step 1: Monitor the VIXFix and BVOL7D indicators. When both are rising and the Bitcoin price is above the EMA, the strategy will trigger a long entry, indicating that the market is experiencing increased volatility with a confirmed uptrend.
Step 2: Exit the position when the price drops below the 50-period EMA, signaling that the trend may be reversing or weakening, reducing the likelihood of continued upward price movement.
This strategy is open-source and is intended to help traders navigate volatile market conditions, particularly in Bitcoin, using proven indicators for volatility and trend confirmation.
Risk Disclaimer:
This strategy has been tested on the daily timeframe of Bitcoin, but users should be aware that it does not include built-in risk management except for the below-EMA exit condition. Users should be extremely cautious when using this strategy and are encouraged to implement their own risk management, such as using stop-losses, position sizing, and setting appropriate limits. Trading involves significant risk, and this strategy does not guarantee profits or prevent losses. Past performance is not indicative of future results. Always test any strategy in a demo environment before applying it to live markets.
Cypher Harmonic Pattern [TradingFinder] Cypher Pattern Detector🔵 Introduction
The Cypher Pattern is one of the most accurate and advanced harmonic patterns, introduced by Darren Oglesbee. The Cypher pattern, utilizing Fibonacci ratios and geometric price analysis, helps traders identify price reversal points with high precision. This pattern consists of five key points (X, A, B, C, and D), each playing an important role in determining entry and exit points in the financial markets.
The reversal point typically occurs in the XD region, with the Fibonacci ratio ranging between 0.768 and 0.886. This zone is referred to as the Potential Reversal Zone (PRZ), where traders anticipate price changes to occur.
The Cypher harmonic pattern is popular among professional traders due to its high accuracy in identifying market trends and reversal points. The pattern appears in two forms: bullish Cypher pattern and bearish Cypher pattern.
In the bullish Cypher pattern, after a price correction, the price moves upward, while in the bearish Cypher pattern, the price moves downward after a temporary increase. These patterns help traders use technical analysis to identify strong reversal points in the PRZ and execute more optimal trades.
Bullish Cypher Pattern :
Bearish Cypher Pattern :
🔵 How to Use
The Cypher pattern is one of the most complex and precise harmonic patterns, leveraging Fibonacci ratios to help traders identify price reversals. This pattern is comprised of five key points, each playing a critical role in determining entry and exit points.
The Cypher pattern appears in two main types :
Bullish Cypher pattern : This pattern appears as an M shape on the chart and indicates a trend reversal to the upside after a price correction. Traders can prepare for buying after identifying this pattern in technical analysis.
Bearish Cypher pattern : This pattern appears as a W shape and signals the start of a downtrend after a temporary price increase. Traders can use this pattern to enter short positions.
🟣 How to Identify the Cypher Pattern on a Chart
Identifying the Cypher pattern requires precision and the use of advanced technical analysis tools. The pattern consists of four main legs, each identified using Fibonacci ratios and geometric analysis.
To spot the Cypher pattern on a chart, first, identify the five key points : X, A, B, C, and D.
XA leg : The initial move from point X to A.
AB leg : The first correction after the XA move, where the price moves to point B.
BC leg : After the correction, the price moves upwards to point C.
CD leg : The final price move that reaches point D, where a price reversal is expected.
In a bullish Cypher pattern, point D indicates the start of a new uptrend, while in a bearish Cypher pattern, point D signals the beginning of a downtrend. Correctly identifying these points helps traders determine the best time to enter a trade.
🟣 How to Trade Using the Cypher Pattern
Once the Cypher pattern is identified on the chart, traders can use it to set entry and exit points. Point D is the key point for trade entry. In the bullish Cypher pattern, the trader can enter a long position after point D forms, while in the bearish Cypher pattern, point D serves as the ideal point for entering a short position.
🟣 Entering a Buy Trade with the Bullish Cypher Pattern
In a bullish Cypher pattern, traders wait for the price to reach point D, after which they can enter a buy position. At this point, the price is expected to start rising.
🟣 Entering a Sell Trade with the Bearish Cypher Pattern
In a bearish Cypher pattern, the trader enters a sell position at point D, expecting the price to move downward after reaching this point. For additional confirmation, traders can use technical indicators such as RSI or MACD.
🟣 Risk Management in Cypher Pattern Trades
Risk management is one of the most critical aspects of any trade, and this holds true for trading the Cypher pattern. Traders should always use stop-loss orders to prevent larger losses in case the pattern fails.
In the bullish Cypher pattern, the stop-loss is usually placed slightly below point D to exit the trade if the price continues to drop.
In the bearish Cypher pattern, the stop-loss is placed above point D to limit losses if the price rises unexpectedly.
🟣 Combining the Cypher Pattern with Other Technical Tools
The Cypher pattern is a powerful tool in technical analysis, but combining it with other methods such as price action and technical indicators can improve trading accuracy.
🟣 Combining with Price Action
Traders can use price action to confirm the Cypher pattern. Candlestick patterns like reversal candlesticks can provide additional confirmation for price reversals at point D.
🟣 Using Technical Indicators
Incorporating technical indicators such as RSI and MACD can also help traders receive stronger signals for entering trades based on the Cypher pattern. These indicators help identify overbought or oversold conditions, allowing traders to make more informed decisions.
🟣 Advantages and Disadvantages of the Cypher Pattern in Technical Analysis
Advantages :
High accuracy : The Cypher pattern, using Fibonacci ratios and geometric analysis, provides high precision in identifying reversal points.
Applicable in various markets : This pattern can be used in a wide range of financial markets, including forex, stocks, and cryptocurrencies.
Disadvantages :
Rarit y: The Cypher pattern appears less frequently on charts compared to other harmonic patterns.
Complexity : Accurately identifying this pattern requires significant experience, which may be challenging for novice traders.
🔵 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 Forma t: 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.
🔵 Conclusion
The Cypher harmonic pattern is one of the most powerful and accurate patterns used in technical analysis. Its high precision in identifying price reversal points, particularly within the Potential Reversal Zone (PRZ), has made it a popular tool among professional traders. The PRZ, located between the Fibonacci ratios of 0.768 and 0.886 in the XD region, offers traders a clear indication of where price reversals are likely to occur.
However, to use this pattern successfully, traders must employ proper risk management and combine it with supplementary tools like technical indicators and price action. By understanding how to utilize the PRZ, traders can enhance the accuracy of their trade entries and exits.
Ultimately, the Cypher pattern, when used in conjunction with the PRZ, helps traders make more precise decisions in the financial markets, leading to more successful and well-informed trades.
M & W Checklistindicator to Validate & Grade M & W Patterns.
Indicator Inputs
Table Color Palette
• Position Valid : Positions the Valid Trade table on the chart.
• Position Grade : Positions the Grade table on the chart, hover over the Column 1 Row 1 for a description of the bands.
• Size: Text size for all tables.
• Text Color : Sets text color.
• Border Color : Sets the table border color for all tables.
• Background Color : Sets table backgroud color for all tables.
Valid Trade Table
Checkboxes to indicate if the trade is valid. Fail is displayed if unchecked, Pass if checked.
Grade Table
• S/R Level 1: distance between neckline and 1st resistance area in % of the total distance between neckline and take profit. This is not for road blocks but pivot points etc before the initial run up/down in price. I have this set to 30% , this means that if there is a pivot point between the neckline and 30% of the TP level I weight it negatively.
• S/R Level 2: distance between neckline and 1st resistance area in % of the total distance between neckline and take profit. This is not for road blocks but pivot points etc before the initial run up/down in price. I have this set to 50% , this means that if there is a pivot point between the neckline and 50% of the TP level 2 weight it negatively but less so than level 1.
• S/R Level 3: distance between neckline and 1st resistance area in % of the total distance between neckline and take profit. This is not for road blocks but pivot points etc before the initial run up/down in price. I have this set to 70% , this means that if there is a pivot point between the neckline and 70% of the TP level 3 weight it negatively but less so than level 1 & level 2.
• Checkboxes are self explanatory, they are binary options, all are weighted negatively if checked and are weighted positively if unchecked. Divergence values for weighting are neutral if unckecked & weighted positively if checked.
• The select options are neutral weighting if set to neutral , if set to For its weighted positive and set to Against weighted negatively.
Technical Specification of the Scoring and Band System
Overview
The scoring system is designed to evaluate a set of technical trade conditions, assigning weights to various criteria that influence the quality of the trade. The system calculates a total score based on both positive and negative conditions. Based on the final score, the system assigns a grade or band (A, B, or C) for positive scores, and a "Negative" label for negative scores.
Scoring System
The system calculates the score by evaluating a set of 12 conditions (gradeCondition1 to gradeCondition12). These conditions are manually input by the user via checkboxes or dropdowns in a technical indicator (written in Pine Script for TradingView). The score weights vary according to the relative importance of each condition.
Condition Breakdown and Weighting:
1. Divergences (GradeCondition1 & GradeCondition2):
◦ 1H Divergence: +5 points if condition is true.
◦ 4H Divergence: +10 points if condition is true (stronger weight than 1H).
2. Support/Resistance at Neckline (GradeCondition3):
◦ Negative if present: -15 points if true (carries significant negative weight).
3. RB near Entry (GradeCondition4):
◦ Very Negative: -20 points if true (this is a critical negative condition).
4. RB can Manage (GradeCondition5):
◦ Slightly Negative: -5 points if true.
5. Institutional Value Zones (GradeCondition6 to GradeCondition8):
◦ For the trade: +5 points.
◦ Against the trade: -5 points.
◦ Neutral: 0 points.
6. S/R between Neckline & Targets (GradeCondition9 to GradeCondition11):
◦ Level 1: -10 points if true, +7 points if false.
◦ Level 2: -7 points if true, +7 points if false.
◦ Level 3: -5 points if true, +7 points if false.
◦ Use fib tool or Gann Box to measure any S/R levels setup according to your preferences.
7. News Timing (GradeCondition12):
◦ News within 3 hours: -20 points if true (strong negative factor).
◦ No upcoming news: +10 points if false.
Scoring Calculation Formula:
totalScore = score1 + score2 + score3 + score4 + score5 + score6 + score7 + score8 + score9 + score10 + score11 + score12
Where:
• score1 to score12 represent the points derived from the conditions described above.
Coloring and Visual Feedback:
• Positive Scores: Displayed in green.
• Negative Scores: Displayed in red.
Band System
The Band System classifies the total score into different grades, depending on the final value of totalScore. This classification provides an intuitive ranking for trades, helping users quickly assess trade quality.
Band Classification:
• Band A: If the totalScore is 41 or more.
◦ Represents a highly favorable trade setup.
• Band B: If the totalScore is between 21 and 40.
◦ Represents a favorable trade setup with good potential.
• Band C: If the totalScore is between 1 and 20.
◦ Represents a trade setup that is acceptable but may have risks.
• Negative: If the totalScore is 0 or less.
◦ Represents a poor trade setup with significant risks or unfavorable conditions.
Band Calculation Logic (in Pine Script):
var string grade = ""
if (totalScore >= 41)
grade := "Band A"
else if (totalScore >= 21)
grade := "Band B"
else if (totalScore >= 1)
grade := "Band C"
else
grade := "Negative"
Technical Key Points:
• Highly Negative Conditions:
◦ The system penalizes certain conditions more heavily, especially those that suggest significant risks (e.g., News in less than 3 hours, RB near Entry).
• Positive Trade Conditions:
◦ Divergences, Institutional Value Zones in favor of the trade, and lack of significant nearby resistance all contribute positively to the score.
• Flexible System:
◦ The system can be adapted or fine-tuned by adjusting the weights of individual conditions according to trading preferences.
Use Case Example:
• If a trade has 1H and 4H Divergence, RB near Entry (negative), and no upcoming news:
◦ 1H Divergence: +5 points.
◦ 4H Divergence: +10 points.
◦ RB near Entry: -20 points.
◦ No news: +10 points.
◦ Total Score: 5 + 10 - 20 + 10 = 5 → Band C.
This modular and flexible scoring system allows traders to systematically evaluate trades and quickly gauge the trade's potential based on technical indicators
Summary:
Maximum Score: 61
Minimum Score: -97
These are the bounds of the score range based on the current logic of the script.
Interest Rate Trading (Manually Added Rate Decisions) [TANHEF]Interest Rate Trading: How Interest Rates Can Guide Your Next Move.
How were interest rate decisions added?
All interest rate decision dates were manually retrieved from the 'Record of Policy Actions' and 'Minutes of Actions' on the Federal Reserve's website due to inconsistent dates from other sources. These were manually added as Pine Script currently only identifies rate changes, not pauses.
█ Simple Explanation:
This script is designed for analyzing and backtesting trading strategies based on U.S. interest rate decisions which occur during Federal Open Market Committee (FOMC) meetings, to make trading decisions. No trading strategy is perfect, and it's important to understand that expectations won't always play out. The script leverages historical interest rate changes, including increases, decreases, and pauses, across multiple economic time periods from 1971 to the present. The tool integrates two key data sources for interest rates—USINTR and FEDFUNDS—to support decision-making around rate-based trades. The focus is on identifying opportunities and tracking trades driven by interest rate movements.
█ Interest Rate Decision Sources:
As noted above, each decision date has been manually added from the 'Record of Policy Actions' and 'Minutes of Actions' documents on the Federal Reserve's website. This includes +50 years of more than 600 rate decisions.
█ Interest Rate Data Sources:
USINTR: Reflects broader U.S. interest rate trends, including Treasury yields and various benchmarks. This is the preferred option as it corresponds well to the rate decision dates.
FEDFUNDS: Tracks the Federal Funds Rate, which is a more specific rate targeted by the Federal Reserve. This does not change on the exact same days as the rate decisions that occur at FOMC meetings.
█ Trade Criteria:
A variety of trading conditions are predefined to suit different trading strategies. These conditions include:
Increase/Decrease: Standard rate increases or decreases.
Double/Triple Increase/Decrease: A series of consecutive changes.
Aggressive Increase/Decrease: Rate changes that exceed recent movements.
Pause: Identification of no changes (pauses) between rate decisions, including double or triple pauses.
Complex Patterns: Combinations of pauses, increases, or decreases, such as "Pause after Increase" or "Pause or Increase."
█ Trade Execution and Exit:
The script allows automated trade execution based on selected criteria:
Auto-Entry: Option to enter trades automatically at the first valid period.
Max Trade Duration: Optional exit of trades after a specified number of bars (candles).
Pause Days: Minimum duration (in days) to validate rate pauses as entry conditions. This is especially useful for earlier periods (prior to the 2000s), where rate decisions often seemed random compared to the consistency we see today.
█ Visualization:
Several visual elements enhance the backtesting experience:
Time Period Highlighting: Economic time periods are visually segmented on the chart, each with a unique color. These periods include historical phases such as "Stagflation (1971-1982)" and "Post-Pandemic Recovery (2021-Present)".
Trade and Holding Results: Displays the profit and loss of trades and holding results directly on the chart.
Interest Rate Plot: Plots the interest rate movements on the chart, allowing for real-time tracking of rate changes.
Trade Status: Highlights active long or short positions on the chart.
█ Statistics and Criteria Display:
Stats Table: Summarizes trade results, including wins, losses, and draw percentages for both long and short trades.
Criteria Table: Lists the selected entry and exit criteria for both long and short positions.
█ Economic Time Periods:
The script organizes interest rate decisions into well-defined economic periods, allowing traders to backtest strategies specific to historical contexts like:
(1971-1982) Stagflation
(1983-1990) Reaganomics and Deregulation
(1991-1994) Early 1990s (Recession and Recovery)
(1995-2001) Dot-Com Bubble
(2001-2006) Housing Boom
(2007-2009) Global Financial Crisis
(2009-2015) Great Recession Recovery
(2015-2019) Normalization Period
(2019-2021) COVID-19 Pandemic
(2021-Present) Post-Pandemic Recovery
█ User-Configurable Inputs:
Rate Source Selection: Choose between USINTR or FEDFUNDS as the primary interest rate source.
Trade Criteria Customization: Users can select the criteria for long and short trades, specifying when to enter or exit based on changes in the interest rate.
Time Period: Select the time period that you want to isolate testing a strategy with.
Auto-Entry and Pause Settings: Options to automatically enter trades and specify the number of days to confirm a rate pause.
Max Trade Duration: Limits how long trades can remain open, defined by the number of bars.
█ Trade Logic:
The script manages entries and exits for both long and short trades. It calculates the profit or loss percentage based on the entry and exit prices. The script tracks ongoing trades, dynamically updating the profit or loss as price changes.
█ Examples:
One of the most popular opinions is that when rate starts begin you should sell, then buy back in when rate cuts stop dropping. However, this can be easily proven to be a difficult task. Predicting the end of a rate cut is very difficult to do with the the exception that assumes rates will not fall below 0.25%.
2001-2009
Trade Result: +29.85%
Holding Result: -27.74%
1971-2024
Trade Result: +533%
Holding Result: +5901%
█ Backtest and Real-Time Use:
This backtester is useful for historical analysis and real-time trading. By setting up various entry and exit rules tied to interest rate movements, traders can test and refine strategies based on real historical data and rate decision trends.
This powerful tool allows traders to customize strategies, backtest them through different economic periods, and get visual feedback on their trading performance, helping to make more informed decisions based on interest rate dynamics. The main goal of this indicator is to challenge the belief that future events must mirror the 2001 and 2007 rate cuts. If everyone expects something to happen, it usually doesn’t.
Fibonacci-Only StrategyFibonacci-Only Strategy
This script is a custom trading strategy designed for traders who leverage Fibonacci retracement levels to identify potential trade entries and exits. The strategy is versatile, allowing users to trade across multiple timeframes, with built-in options for dynamic stop loss, trailing stops, and take profit levels.
Key Features:
Custom Fibonacci Levels:
This strategy calculates three specific Fibonacci retracement levels: 19%, 82.56%, and the reverse 19% level. These levels are used to identify potential areas of support and resistance where price reversals or breaks might occur.
The Fibonacci levels are calculated based on the highest and lowest prices within a 100-bar period, making them dynamic and responsive to recent market conditions.
Dynamic Entry Conditions:
Touch Entry: The script enters long or short positions when the price touches specific Fibonacci levels and confirms the move with a bullish (for long) or bearish (for short) candle.
Break Entry (Optional): If the "Use Break Strategy" option is enabled, the script can also enter positions when the price breaks through Fibonacci levels, providing more aggressive entry opportunities.
Stop Loss Management:
The script offers flexible stop loss settings. Users can choose between a fixed percentage stop loss or an ATR-based stop loss, which adjusts based on market volatility.
The ATR (Average True Range) stop loss is multiplied by a user-defined factor, allowing for tailored risk management based on market conditions.
Trailing Stop Mechanism:
The script includes an optional trailing stop feature, which adjusts the stop loss level as the market moves in favor of the trade. This helps lock in profits while allowing the trade to run if the trend continues.
The trailing stop is calculated as a percentage of the difference between the entry price and the current market price.
Multiple Take Profit Levels:
The strategy calculates seven take profit levels, each at incremental percentages above (for long trades) or below (for short trades) the entry price. This allows for gradual profit-taking as the market moves in the trade's favor.
Each take profit level can be customized in terms of the percentage of the position to be closed, providing precise control over exit strategies.
Strategy Backtesting and Results:
Realistic Backtesting:
The script has been backtested with realistic account sizes, commission rates, and slippage settings to ensure that the results are applicable to actual trading scenarios.
The backtesting covers various timeframes and markets to ensure the strategy's robustness across different trading environments.
Default Settings:
The script is published with default settings that have been optimized for general use. These settings include a 15-minute timeframe, a 1.0% stop loss, a 2.0 ATR multiplier for stop loss, and a 1.5% trailing stop.
Users can adjust these settings to better fit their specific trading style or the market they are trading.
How It Works:
Long Entry Conditions:
The strategy enters a long position when the price touches the 19% Fibonacci level (from high to low) or the reverse 19% level (from low to high) and confirms the move with a bullish candle.
If the "Use Break Strategy" option is enabled, the script will also enter a long position when the price breaks below the 19% Fibonacci level and then moves back up, confirming the break with a bullish candle.
Short Entry Conditions:
The strategy enters a short position when the price touches the 82.56% Fibonacci level and confirms the move with a bearish candle.
If the "Use Break Strategy" option is enabled, the script will also enter a short position when the price breaks above the 82.56% Fibonacci level and then moves back down, confirming the break with a bearish candle.
Stop Loss and Take Profit Logic:
The stop loss for each trade is calculated based on the selected method (fixed percentage or ATR-based). The strategy then manages the trade by either trailing the stop or taking profit at predefined levels.
The take profit levels are set at increments of 0.5% above or below the entry price, depending on whether the position is long or short. The script gradually exits the trade as these levels are hit, securing profits while minimizing risk.
Usage:
For Fibonacci Traders:
This script is ideal for traders who rely on Fibonacci retracement levels to find potential trade entries and exits. The script automates the process, allowing traders to focus on market analysis and decision-making.
For Trend and Swing Traders:
The strategy's flexibility in handling both touch and break entries makes it suitable for trend-following and swing trading strategies. The multiple take profit levels allow traders to capture profits in trending markets while managing risk.
Important Notes:
Originality: This script uniquely combines Fibonacci retracement levels with dynamic stop loss management and multiple take profit levels. It is not just a combination of existing indicators but a thoughtful integration designed to enhance trading performance.
Disclaimer: Trading involves risk, and it is crucial to test this script in a demo account or through backtesting before applying it to live trading. Users should ensure that the settings align with their individual risk tolerance and trading strategy.
ACD Indicator [TradingFinder] M Fisher Pivots Methodology Signal🔵 Introduction
The book "The Logical Trader" begins with a comprehensive review of the ACD Methodology principles, which include identifying specific price points related to the opening range.
This method allows you to set reference points for trading and use points "A" and "C" for trade entry. You will also learn about the "Pivot Range" and how to combine them with the ACD method to maximize position size and minimize risk.
In this indicator, the strategy is implemented to make it easier to use.
🔵 How to Use
The "ACD" strategy can be applied to various markets such as stocks, commodities, or forex, providing buy and sell signals that allow you to set your price targets and stop losses.
This strategy is based on the assumption that the opening range of trades is statistically significant each day, meaning the initial market fluctuations influence the market until the end of the day.
The ACD trading strategy is known as a breakout strategy and performs best in volatile or strongly trending markets, such as crude oil and stocks.
Some of the rules for using the ACD strategy include the following :
Consider points A and C as reference points and continuously pay attention to these points during trades. These points serve as entry and exit points for trades.
Examine daily and multi-day pivot ranges to analyze market trends. If the price is above the pivots, the trend is upward, and if below the pivots, the trend is downward.
Trading with the ACD strategy in forex is possible using the ACD indicator. This indicator is a technical tool used to measure the balance between supply and demand in the market. By analyzing trading volume and price, this indicator helps traders identify trend strength and suitable entry and exit points.
To use the ACD indicator, consider the following :
Identifying strong trends: The ACD indicator can help you identify strong and stable trends in the market.
Determining entry and exit points: ACD provides buy and sell signals to enter or exit trades at the best possible time.
Bullish Setup :
When the "A up" line is broken, it is advisable to wait for some time to ensure that this is not a "Fake Breakout" and that the price stabilizes above this line.
After entering the trade, the best stop loss you can choose is below the "A down" line. However, it is recommended to test this in backtests to achieve the best results. The suitable reward-to-risk ratio for this strategy is 1, which should also be backtested.
Bearish Setup :
When the "A down" line is broken, it is advisable to wait for some time to ensure that this is not a "Fake Breakout" and that the price stabilizes below this line.
After entering the trade, the best stop loss you can choose is above the "A up" line. However, it is recommended to test this in backtests to achieve the best results. The suitable reward-to-risk ratio for this strategy is 1, which should also be backtested.
🔵 Setting
NDay Pivot Range Period : Using this entry you can specify the number of days to calculate NDay Pivot Range.
Show Daily Pivot Range : Set the Daily Pivot color and displayed or not.
Show NDay Pivot Range : Set the NDay Pivot color and displayed or not.
ATR Period Levels : Determining the period of the ATR indicator, which is used to determine the A and C levels.
Show Tokyo ACD Setup : Set the Tokyo ACD Setup color and displayed or not.
Tokyo Opening Range Time : The amount of time taken to determine the opening range. You can set this number between 5 and 60 minutes.
Tokyo Session : Market start and end time.
A Level Multiplier : The coefficient that is multiplied by ATR to determine the distance of line A up and A down.
C Level Multiplier : The coefficient that is multiplied by ATR to determine the distance of line C up and C down.
The same settings exist for the London and New York sessions.
