Adaptive MFI Divergence IndicatorKey Features:
Pivot-Based Divergence Detection:
The script identifies bullish and bearish divergences using MFI EMA and price pivots:
Bullish Divergence: Price forms a lower low, while the MFI EMA forms a higher low.
Bearish Divergence: Price forms a higher high, while the MFI EMA forms a lower high.
Pivots are determined using configurable left and right bars for fine-tuned divergence detection.
Dynamic Entry Conditions:
For bullish divergences, the script:
Records the pivot high formed between the two pivot lows.
Triggers a buy signal only when the price closes above the recorded pivot high.
Ensures that the divergence aligns with a positive trend and occurs under favorable volatility conditions.
For bearish divergences, the script:
Records the pivot low formed between the two pivot highs.
Triggers a sell signal only when the price closes below the recorded pivot low.
Confirms the divergence aligns with a negative trend and sufficient volatility.
Trend and Volatility Filtering:
Confirms trend alignment using EMA crossovers:
Bullish Trend: EMA (25) > EMA (50).
Bearish Trend: EMA (25) < EMA (50).
Filters signals using Historical Volatility (HV):
Signals are valid only if HV exceeds its 50-period SMA benchmark, ensuring active market conditions.
Enhanced Money Flow Index (MFI):
The MFI calculation is enhanced by:
Adjusting for volume weight using a logarithmic scale based on the ratio of current to average volume.
Normalizing weights to stay within a stable range (0.5–1.5).
Offers the option to toggle between standard and adjusted MFI using the “Use adjusted MFI” input.
Clear Visual and Alert System:
Signals are marked directly on the chart:
Green "BUY" labels appear below the bars for bullish signals.
Red "SELL" labels appear above the bars for bearish signals.
Alerts for both bullish and bearish divergences enable real-time notifications.
Entry Conditions:
Bullish Entry:
Divergence Confirmation:
Price forms a lower low.
MFI EMA forms a higher low.
Pivot low is confirmed.
Pivot High Recording:
The script records the pivot high formed between the two pivot lows.
Entry Trigger:
A buy alert is triggered only when the price closes above the recorded pivot high.
Additional checks:
Trend Confirmation: EMA (25) > EMA (50).
Volatility Validation: HV exceeds its benchmark (50-period SMA).
MFI EMA Threshold: MFI EMA > 61.8.
Bearish Entry:
Divergence Confirmation:
Price forms a higher high.
MFI EMA forms a lower high.
Pivot high is confirmed.
Pivot Low Recording:
The script records the pivot low formed between the two pivot highs.
Entry Trigger:
A sell alert is triggered only when the price closes below the recorded pivot low.
Additional checks:
Trend Confirmation: EMA (25) < EMA (50).
Volatility Validation: HV exceeds its benchmark (50-period SMA).
MFI EMA Threshold: MFI EMA < 38.2.
Practical Applications:
Divergence-Based Reversals:
Ideal for detecting potential trend reversals using divergence signals confirmed by pivot breakouts.
Trend-Filtered Signals:
Eliminates false signals by requiring trend alignment via EMA crossovers.
Volatility-Aware Trading:
Ensures signals occur during active market conditions, reducing noise and enhancing signal reliability.
Why Choose This Indicator?
The Custom MFI Divergence Alerts script combines:
Accurate divergence detection using pivots on price and MFI EMA.
Dynamic entry conditions that align with trend and market volatility.
Volume-weighted MFI adjustments for more reliable oscillator signals
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BullBear with Volume-Percentile TP - Strategy [presentTrading] Happy New Year, everyone! I hope we have a fantastic year ahead.
It's been a while since I published an open script, but it's time to return.
This strategy introduces an indicator called Bull Bear Power, combined with an advanced take-profit system, which is the main innovative and educational aspect of this script. I hope all of you find some useful insights here. Welcome to engage in meaningful exchanges. This is a versatile tool suitable for both novice and experienced traders.
█ Introduction and How it is Different
Unlike traditional strategies that rely solely on price or volume indicators, this approach combines Bull Bear Power (BBP) with volume percentile analysis to identify optimal entry and exit points. It features a dynamic take-profit mechanism based on ATR (Average True Range) multipliers adjusted by volume and percentile factors, ensuring adaptability to diverse market conditions. This multifaceted strategy not only improves signal accuracy but also optimizes risk management, distinguishing it from conventional trading methods.
BTCUSD 6hr performance
Disable the visualization of Bull Bear Power (BBP) to clearly view the Z-Score.
█ Strategy, How it Works: Detailed Explanation
The BBP Strategy with Volume-Percentile TP utilizes several interconnected components to analyze market data and generate trading signals. Here's an overview with essential equations:
🔶 Core Indicators and Calculations
1. Exponential Moving Average (EMA):
- **Purpose:** Smoothens price data to identify trends.
- **Formula:**
EMA_t = (Close_t * (2 / (lengthInput + 1))) + (EMA_(t-1) * (1 - (2 / (lengthInput + 1))))
- Usage: Baseline for Bull and Bear Power.
2. Bull and Bear Power:
- Bull Power: `BullPower = High_t - EMA_t`
- Bear Power: `BearPower = Low_t - EMA_t`
- BBP:** `BBP = BullPower + BearPower`
- Interpretation: Positive BBP indicates bullish strength, negative indicates bearish.
3. Z-Score Calculation:
- Purpose: Normalizes BBP to assess deviation from the mean.
- Formula:
Z-Score = (BBP_t - bbp_mean) / bbp_std
- Components:
- `bbp_mean` = SMA of BBP over `zLength` periods.
- `bbp_std` = Standard deviation of BBP over `zLength` periods.
- Usage: Identifies overbought or oversold conditions based on thresholds.
🔶 Volume Analysis
1. Volume Moving Average (`vol_sma`):
vol_sma = (Volume_1 + Volume_2 + ... + Volume_vol_period) / vol_period
2. Volume Multiplier (`vol_mult`):
vol_mult = Current Volume / vol_sma
- Thresholds:
- High Volume: `vol_mult > 2.0`
- Medium Volume: `1.5 < vol_mult ≤ 2.0`
- Low Volume: `1.0 < vol_mult ≤ 1.5`
🔶 Percentile Analysis
1. Percentile Calculation (`calcPercentile`):
Percentile = (Number of values ≤ Current Value / perc_period) * 100
2. Thresholds:
- High Percentile: >90%
- Medium Percentile: >80%
- Low Percentile: >70%
🔶 Dynamic Take-Profit Mechanism
1. ATR-Based Targets:
TP1 Price = Entry Price ± (ATR * atrMult1 * TP_Factor)
TP2 Price = Entry Price ± (ATR * atrMult2 * TP_Factor)
TP3 Price = Entry Price ± (ATR * atrMult3 * TP_Factor)
- ATR Calculation:
ATR_t = (True Range_1 + True Range_2 + ... + True Range_baseAtrLength) / baseAtrLength
2. Adjustment Factors:
TP_Factor = (vol_score + price_score) / 2
- **vol_score** and **price_score** are based on current volume and price percentiles.
Local performance
🔶 Entry and Exit Logic
1. Long Entry: If Z-Score crosses above 1.618, then Enter Long.
2. Short Entry: If Z-Score crosses below -1.618, then Enter Short.
3. Exiting Positions:
If Long and Z-Score crosses below 0:
Exit Long
If Short and Z-Score crosses above 0:
Exit Short
4. Take-Profit Execution:
- Set multiple exit orders at dynamically calculated TP levels based on ATR and adjusted by `TP_Factor`.
█ Trade Direction
The strategy determines trade direction using the Z-Score from the BBP indicator:
- Long Positions:
- Condition: Z-Score crosses above 1.618.
- Short Positions:
- Condition: Z-Score crosses below -1.618.
- Exiting Trades:
- Long Exit: Z-Score drops below 0.
- Short Exit: Z-Score rises above 0.
This approach aligns trades with prevailing market trends, increasing the likelihood of successful outcomes.
█ Usage
Implementing the BBP Strategy with Volume-Percentile TP in TradingView involves:
1. Adding the Strategy:
- Copy the Pine Script code.
- Paste it into TradingView's Pine Editor.
- Save and apply the strategy to your chart.
2. Configuring Settings:
- Adjust parameters like EMA length, Z-Score thresholds, ATR multipliers, volume periods, and percentile settings to match your trading preferences and asset behavior.
3. Backtesting:
- Use TradingView’s backtesting tools to evaluate historical performance.
- Analyze metrics such as profit factor, drawdown, and win rate.
4. Optimization:
- Fine-tune parameters based on backtesting results.
- Test across different assets and timeframes to enhance adaptability.
5. Deployment:
- Apply the strategy in a live trading environment.
- Continuously monitor and adjust settings as market conditions change.
█ Default Settings
The BBP Strategy with Volume-Percentile TP includes default parameters designed for balanced performance across various markets. Understanding these settings and their impact is essential for optimizing strategy performance:
Bull Bear Power Settings:
- EMA Length (`lengthInput`): 21
- **Effect:** Balances sensitivity and trend identification; shorter lengths respond quicker but may generate false signals.
- Z-Score Length (`zLength`): 252
- **Effect:** Long period for stable mean and standard deviation, reducing false signals but less responsive to recent changes.
- Z-Score Threshold (`zThreshold`): 1.618
- **Effect:** Higher threshold filters out weaker signals, focusing on significant market moves.
Take Profit Settings:
- Use Take Profit (`useTP`): Enabled (`true`)
- **Effect:** Activates dynamic profit-taking, enhancing profitability and risk management.
- ATR Period (`baseAtrLength`): 20
- **Effect:** Shorter period for sensitive volatility measurement, allowing tighter profit targets.
- ATR Multipliers:
- **Effect:** Define conservative to aggressive profit targets based on volatility.
- Position Sizes:
- **Effect:** Diversifies profit-taking across multiple levels, balancing risk and reward.
Volume Analysis Settings:
- Volume MA Period (`vol_period`): 100
- **Effect:** Longer period for stable volume average, reducing the impact of short-term spikes.
- Volume Multipliers:
- **Effect:** Determines volume conditions affecting take-profit adjustments.
- Volume Factors:
- **Effect:** Adjusts ATR multipliers based on volume strength.
Percentile Analysis Settings:
- Percentile Period (`perc_period`): 100
- **Effect:** Balances historical context with responsiveness to recent data.
- Percentile Thresholds:
- **Effect:** Defines price and volume percentile levels influencing take-profit adjustments.
- Percentile Factors:
- **Effect:** Modulates ATR multipliers based on price percentile strength.
Impact on Performance:
- EMA Length: Shorter EMAs increase sensitivity but may cause more false signals; longer EMAs provide stability but react slower to market changes.
- Z-Score Parameters:*Longer Z-Score periods create more stable signals, while higher thresholds reduce trade frequency but increase signal reliability.
- ATR Multipliers and Position Sizes: Higher multipliers allow for larger profit targets with increased risk, while diversified position sizes help in securing profits at multiple levels.
- Volume and Percentile Settings: These adjustments ensure that take-profit targets adapt to current market conditions, enhancing flexibility and performance across different volatility environments.
- Commission and Slippage: Accurate settings prevent overestimation of profitability and ensure the strategy remains viable after accounting for trading costs.
Conclusion
The BBP Strategy with Volume-Percentile TP offers a robust framework by combining BBP indicators with volume and percentile analyses. Its dynamic take-profit mechanism, tailored through ATR adjustments, ensures that traders can effectively capture profits while managing risks in varying market conditions.
BBSS+This Pine Script implements a custom indicator overlaying Bollinger Bands with additional features for trend analysis using Exponential Moving Averages (EMAs). Here's a breakdown of its functionality:
Bollinger Bands:
The script calculates the Bollinger Bands using a 20-period Simple Moving Average (SMA) as the basis and a multiplier of 2 for the standard deviation.
It plots the Upper Band and Lower Band in red.
EMA Calculations:
Three EMAs are calculated for the close price with periods of 5, 10, and 40.
The EMAs are plotted in green (5-period), cyan (10-period), and orange (40-period) to distinguish between them.
Trend Detection:
The script determines bullish or bearish EMA alignments:
Bullish Order: EMA 5 > EMA 10 > EMA 40.
Bearish Order: EMA 5 < EMA 10 < EMA 40.
Entry Signals:
Long Entry: Triggered when:
The close price crosses above the Upper Bollinger Band.
The Upper Band is above its 5-period SMA (indicating momentum).
The EMAs are in a bullish order.
Short Entry: Triggered when:
The close price crosses below the Lower Bollinger Band.
The Lower Band is below its 5-period SMA.
The EMAs are in a bearish order.
Trend State Tracking:
A variable tracks whether the market is in a Long or Short trend based on conditions:
A Long trend continues unless conditions for a Short Entry are met or the Upper Band dips below its average.
A Short trend continues unless conditions for a Long Entry are met or the Lower Band rises above its average.
Visual Aids:
Signal Shapes:
Triangle-up shapes indicate Long Entry points below the bar.
Triangle-down shapes indicate Short Entry points above the bar.
Bar Colors:
Green bars indicate a Long trend.
Red bars indicate a Short trend.
This script combines Bollinger Bands with EMA crossovers to generate entry signals and visualize market trends, making it a versatile tool for identifying momentum and trend reversals.
Smart Wick Concept (SWC)Smart Wick Concept (SWC)
The Smart Wick Concept (SWC) is a unique trend-following strategy designed to capture precise entry points in trending markets. This indicator identifies trade opportunities based on higher timeframe trends and wick behavior on lower timeframes, making it an effective tool for intraday and swing traders.
Key Features:
Trend Identification:
SWC uses the H1 timeframe to define the primary market trend (bullish or bearish), ensuring alignment with the overall market direction.
Precise Entry Signals:
Entry opportunities are generated on the M15 timeframe when a candle's wick interacts with the prior candle's range. This approach minimizes false signals and enhances accuracy.
Stop Loss and Take Profit Levels:
The indicator automatically calculates suggested stop loss and take profit levels based on market dynamics, providing traders with a clear risk-reward framework.
Customizable Parameters:
SWC allows traders to adjust key settings, such as the higher timeframe and minimum trend range, to align with their trading preferences and market conditions.
How It Works:
Bullish Entry:
Higher timeframe trend must be bullish.
A M15 candle must dip below the previous candle’s low and close back above it, signaling a potential buy opportunity.
Bearish Entry:
Higher timeframe trend must be bearish.
A M15 candle must exceed the previous candle’s high and close back below it, signaling a potential sell opportunity.
Risk Management:
Stop loss is placed at the low (for buys) or high (for sells) of the current M15 candle.
Take profit targets are calculated at twice the risk, ensuring a favorable risk-reward ratio.
Benefits:
Aligns trades with market momentum.
Reduces noise by filtering out weak or sideways trends.
Provides a structured approach to trading XAUUSD and other volatile instruments.
Use Cases:
The Smart Wick Concept is ideal for traders looking for a disciplined and data-driven approach to trading. While it is optimized for XAUUSD, it can also be applied to other trending markets such as major currency pairs or indices with some parameter adjustments.
Disclaimer:
This indicator is a trading tool and should not be used as a standalone strategy. Always backtest the indicator thoroughly and use proper risk management to protect your capital. Past performance does not guarantee future results.
EMA Crossover with RSI and DistanceEMA Crossover with RSI and Distance Strategy
This strategy combines Exponential Moving Averages (EMA) with Relative Strength Index (RSI) and distance-based conditions to generate buy, sell, and neutral signals. It is designed to help traders identify entry and exit points based on multiple technical indicators.
Key Components:
Exponential Moving Averages (EMA):
The strategy uses four EMAs: EMA 5, EMA 13, EMA 40, and EMA 55.
A buy signal (long) is triggered when EMA 5 crosses above EMA 13 and EMA 40 crosses above EMA 55.
A sell signal (short) is generated when EMA 55 crosses above EMA 40.
The distance between EMAs (5 and 13) is also important. If the current distance between EMA 5 and EMA 13 is smaller than the average distance over the last 5 candles, a neutral condition is triggered, preventing a signal even if all other conditions are met.
Relative Strength Index (RSI):
The 14-period RSI is used to determine market strength and direction.
The strategy requires RSI to be above 50 and greater than the average RSI (over the past 14 periods) for a buy signal.
If the RSI is above 60, a green signal is given, indicating a strong bullish condition, even if the EMA conditions are not fully met.
If the RSI is below 40, a red signal is given, indicating a strong bearish condition, regardless of the EMA crossover.
Distance Conditions:
The strategy calculates the distance between EMA 5 and EMA 13 on each candle and compares it to the average distance of the last 5 candles.
If the current distance between EMA 5 and EMA 13 is lower than the average of the last 5 candles, a neutral signal is triggered. This helps avoid entering a trade when the market is losing momentum.
Additionally, if the distance between EMA 40 and EMA 13 is greater than the previous distance, the previous signal is kept intact, ensuring that the trend is still strong enough for the signal to remain valid.
Signal Persistence:
Once a buy (green) or sell (red) signal is triggered, it remains intact as long as the price is closing above EMA 5 for long trades or below EMA 55 for short trades.
If the price moves below EMA 5 for long trades or above EMA 55 for short trades, the signal is recalculated based on the most recent conditions.
Signal Display:
Green Signals: Represent a strong buy signal and are shown below the candle when the RSI is above 60.
Red Signals: Represent a strong sell signal and are shown above the candle when the RSI is below 40.
Neutral Signals: Displayed when the conditions for entry are not met, specifically when the EMA distance condition is violated.
Long and Short Signals: Additional signals are shown based on the EMA crossovers and RSI conditions. These signals are plotted below the candle for long positions and above the candle for short positions.
Trade Logic:
Long Entry: Enter a long trade when EMA 5 crosses above EMA 13, EMA 40 crosses above EMA 55, and the RSI is above 50 and greater than the average RSI. Additionally, the current distance between EMA 5 and EMA 13 should be larger than the average distance of the last 5 candles.
Short Entry: Enter a short trade when EMA 55 crosses above EMA 40 and the RSI is below 40.
Neutral Condition: If the distance between EMA 5 and EMA 13 is smaller than the average distance over the last 5 candles, the strategy will not trigger a signal, even if other conditions are met.
HOD/LOD/PMH/PML/PDH/PDL Strategy by @tradingbauhaus This script is a trading strategy @tradingbauhaus designed to trade based on key price levels, such as the High of Day (HOD), Low of Day (LOD), Premarket High (PMH), Premarket Low (PML), Previous Day High (PDH), and Previous Day Low (PDL). Below, I’ll explain in detail what the script does:
Core Functionality of the Script:
Calculates Key Price Levels:
HOD (High of Day): The highest price of the current day.
LOD (Low of Day): The lowest price of the current day.
PMH (Premarket High): The highest price during the premarket session (before the market opens).
PML (Premarket Low): The lowest price during the premarket session.
PDH (Previous Day High): The highest price of the previous day.
PDL (Previous Day Low): The lowest price of the previous day.
Draws Horizontal Lines on the Chart:
Plots horizontal lines on the chart for each key level (HOD, LOD, PMH, PML, PDH, PDL) with specific colors for easy visual identification.
Defines Entry and Exit Rules:
Long Entry (Buy): If the price crosses above the PMH (Premarket High) or the PDH (Previous Day High).
Short Entry (Sell): If the price crosses below the PML (Premarket Low) or the PDL (Previous Day Low).
Long Exit: If the price reaches the HOD (High of Day) during a long position.
Short Exit: If the price reaches the LOD (Low of Day) during a short position.
How the Script Works Step by Step:
Calculates Key Levels:
Uses the request.security function to fetch the HOD and LOD of the current day, as well as the highs and lows of the previous day (PDH and PDL).
Calculates the PMH and PML during the premarket session (before 9:30 AM).
Plots Levels on the Chart:
Uses the plot function to draw horizontal lines on the chart representing the key levels (HOD, LOD, PMH, PML, PDH, PDL).
Each level has a specific color for easy identification:
HOD: White.
LOD: Purple.
PDH: Orange.
PDL: Blue.
PMH: Green.
PML: Red.
Defines Trading Rules:
Uses conditions with ta.crossover and ta.crossunder to detect when the price crosses key levels.
Long Entry: If the price crosses above the PMH or PDH, a long position (buy) is opened.
Short Entry: If the price crosses below the PML or PDL, a short position (sell) is opened.
Long Exit: If the price reaches the HOD during a long position, the position is closed.
Short Exit: If the price reaches the LOD during a short position, the position is closed.
Executes Orders Automatically:
Uses the strategy.entry and strategy.close functions to open and close positions automatically based on the defined rules.
Advantages of This Strategy:
Based on Key Levels: Uses important price levels that often act as support and resistance.
Easy to Visualize: Horizontal lines on the chart make it easy to identify levels.
Automated: Entries and exits are executed automatically based on the defined rules.
Limitations of This Strategy:
Dependent on Volatility: Works best in markets with significant price movements.
False Crosses: There may be false crosses that generate incorrect signals.
No Advanced Risk Management: Does not include dynamic stop-loss or take-profit mechanisms.
How to Improve the Strategy:
Add Stop-Loss and Take-Profit: To limit losses and lock in profits.
Filter Signals with Indicators: Use RSI, MACD, or other indicators to confirm signals.
Optimize Levels: Adjust key levels based on the asset’s behavior.
In summary, this script is a trading strategy that operates based on key price levels, such as HOD, LOD, PMH, PML, PDH, and PDL. It is useful for traders who want to trade based on significant support and resistance levels.
IU open equal to high/low strategyIU open equal to high/low strategy:
The "IU Open Equal to High/Low Strategy" is designed to identify and trade specific market conditions where the day's first price action shows a strong directional bias. This strategy automatically enters trades based on the relationship between the market's open price and its first high or low of the day.
Entry Conditions:
1. Long Entry: A long position is initiated when the first open price of the session equals the day's first low. This signals a potential upward move.
2. Short Entry: A short position is initiated when the first open price of the session equals the day's first high. This signals a potential downward move.
Exit Conditions:
1. Stop Loss (SL): For both long and short trades, the stop loss is calculated based on the low or high of the candle where the position was entered.
2. Take Profit (TP): The take profit is set using a Risk-to-Reward (RTR) ratio, which is customizable by the user. The TP is calculated relative to the entry price and the distance between the entry and the stop loss.
Additional Features:
- Plots are used to visualize the entry price, stop loss, and take profit levels directly on the chart, providing clear and actionable insights.
- Labels are displayed to indicate the occurrence of the "Open == Low" or "Open == High" conditions for easier identification of potential trade setups.
- A dynamic fill highlights the areas between the entry price and the stop loss or take profit, offering a clear visual representation of the trade's risk and reward zones.
This strategy is designed for traders looking to capitalize on directional momentum at the start of the trading session. It is customizable, allowing users to set their desired Risk-to-Reward ratio and tailor the strategy to fit their trading style.
IU EMA Channel StrategyIU EMA Channel Strategy
Overview:
The IU EMA Channel Strategy is a simple yet effective trend-following strategy that uses two Exponential Moving Averages (EMAs) based on the high and low prices. It provides clear entry and exit signals by identifying price crossovers relative to the EMAs while incorporating a built-in Risk-to-Reward Ratio (RTR) for effective risk management.
Inputs ( Settings ):
- RTR (Risk-to-Reward Ratio): Define the ratio for risk-to-reward (default = 2).
- EMA Length: Adjust the length of the EMA channels (default = 100).
How the Strategy Works
1. EMA Channels:
- High-based EMA: EMA calculated on the high price.
- Low-based EMA: EMA calculated on the low price.
The area between these two EMAs creates a "channel" that visually highlights potential support and resistance zones.
2. Entry Rules:
- Long Entry: When the price closes above the high-based EMA (crossover).
- Short Entry: When the price closes below the low-based EMA (crossunder).
These entries ensure trades are taken in the direction of momentum.
3. Stop Loss (SL) and Take Profit (TP):
- Stop Loss:
- For long positions, the SL is set at the previous bar's low.
- For short positions, the SL is set at the previous bar's high.
- Take Profit:
- TP is automatically calculated using the Risk-to-Reward Ratio (RTR) you define.
- Example: If RTR = 2, the TP will be 2x the risk distance.
4. Exit Rules:
- Positions are closed at either the stop loss or the take profit level.
- The strategy manages exits automatically to enforce disciplined risk management.
Visual Features
1. EMA Channels:
- The high and low EMAs are dynamically color-coded:
- Green: Price is above the EMA (bullish condition).
- Red: Price is below the EMA (bearish condition).
- The area between the EMAs is shaded for better visual clarity.
2. Stop Loss and Take Profit Zones:
- SL and TP levels are plotted for both long and short positions.
- Zones are filled with:
- Red: Stop Loss area.
- Green: Take Profit area.
Be sure to manage your risk and position size properly.
IU Opening range Breakout StrategyIU Opening Range Breakout Strategy
This Pine Script strategy is designed to capitalize on the breakout of the opening range, which is a popular trading approach. The strategy identifies the high and low prices of the opening session and takes trades based on price crossing these levels, with built-in risk management and trade limits for intraday trading.
Key Features:
1. Risk Management:
- Risk-to-Reward Ratio (RTR):
Set a customizable risk-to-reward ratio to calculate target prices based on stop-loss levels.
Default: 2:1
- Max Trades in a Day:
Specify the maximum number of trades allowed per day to avoid overtrading.
Default: 2 trades in a day.
- End-of-Day Close:
Automatically closes all open positions at a user-defined session end time to ensure no overnight exposure.
Default: 3:15 PM
2. Opening Range Identification
- Opening Range High and Low:
The script detects the high and low of the first trading session using Pine Script's session functions.
These levels are plotted as visual guides on the chart:
- High: Lime-colored circles.
- Low: Red-colored circles.
3. Trade Entry Logic
- Long Entry:
A long trade is triggered when the price closes above the opening range high.
- Entry condition: Crossover of the price above the opening range high.
-Short Entry:
A short trade is triggered when the price closes below the opening range low.
- Entry condition: Crossunder of the price below the opening range low.
Both entries are conditional on the absence of an existing position.
4. Stop Loss and Take Profit
- Long Position:
- Stop Loss: Previous candle's low.
- Take Profit: Calculated based on the RTR.
- **Short Position:**
- **Stop Loss:** Previous candle's high.
- **Take Profit:** Calculated based on the RTR.
The strategy plots these levels for visual reference:
- Stop Loss: Red dashed lines.
- Take Profit: Green dashed lines.
5. Visual Enhancements
-Trade Level Highlighting:
The script dynamically shades the areas between the entry price and SL/TP levels:
- Red shading for the stop-loss region.
- Green shading for the take-profit region.
- Entry Price Line:
A silver-colored line marks the average entry price for active trades.
How to Use:
1.Input Configuration:
Adjust the Risk-to-Reward ratio, max trades per day, and session end time to suit your trading preferences.
2.Visual Cues:
Use the opening range high/low lines and shading to identify potential breakout opportunities.
3.Execution:
The strategy will automatically enter and exit trades based on the conditions. Review the plotted SL and TP levels to monitor the risk-reward setup.
Important Notes:
- This strategy is designed for intraday trading and works best in markets with high volatility during the opening session.
- Backtest the strategy on your preferred market and timeframe to ensure compatibility.
- Proper risk management and position sizing are essential when using this strategy in live markets.
VIDYA Auto-Trading(Reversal Logic)
Purpose and Unique Features
This script leverages the Variable Index Dynamic Average (VIDYA) to implement a dynamic trend-following auto-trading strategy. By adapting to price volatility, it optimizes entry points and strengthens risk management. Key differentiators of this strategy include:
VIDYA Characteristics:
Quickly responds to price momentum changes through dynamic calculations.
Incorporates volatility adjustments for enhanced trend detection accuracy.
ATR Band Utilization:
Measures market volatility to set stop-loss levels and guide risk management.
Supports more calculated trade entries in volatile markets.
Visual Trend Representation:
Displays "green zones" for uptrends and "red zones" for downtrends.
Enables intuitive understanding of trend continuation and reversal.
Usage Instructions
Entry Conditions
Long Entry:
Enter when the price crosses above the upper band.
Close any previous short positions and initiate a new long position.
Short Entry:
Enter when the price crosses below the lower band.
Close any previous long positions and initiate a new short position.
Exit Conditions
Take Profit and Stop Loss:
Reverse Position Strategy or Position Reversal Strategy
Account Size: ¥100,0000
Commissions and Slippage: Assumed commission of 94 pips per trade and slippage of 1 pip.
Risk per Trade: 10% of account equity (adjustable based on risk tolerance).
Script Parameters
VIDYA Length: The period for calculating the trend (e.g., 14).
Momentum Period: The lookback period for calculating the Chande Momentum Oscillator (CMO).
ATR Band Distance: Adjustment coefficient for the band width (e.g., 1.5).
Price Source: Choose from close, open, high, or low prices for VIDYA calculation.
Trend Display Colors: Customize the colors for uptrend and downtrend zones.
Visualization Options: Toggle the display of trend lines, bands, and other elements on or off.
Strategy Features and Enhancements
Dynamic Momentum Adaptation:
Utilizes VIDYA's sensitivity to momentum changes for rapid trend detection.
Volatility-Aware Risk Management:
Employs ATR to dynamically adjust risk levels, ensuring resilience in volatile markets.
Enhanced Visual Indicators:
Clearly plots trend zones and entry points on the chart.
Simplifies analysis with intuitive visual cues.
Credits
This script is inspired by the innovative work of BigBeluga, whose indicators laid the foundation for this enhanced trend-following strategy. By leveraging BigBeluga’s insights, this script integrates VIDYA, ATR Bands, and other technical elements to create a more dynamic and intuitive trading tool.
We extend our gratitude to BigBeluga and the broader trading community for their invaluable contributions, which have enabled this advanced implementation.
Disclaimer:
This script is provided for educational purposes, and past performance does not guarantee future results. Always practice proper risk management in live trading scenarios.
By leveraging VIDYA, this strategy provides a precise and intuitive approach to trend-following. It is particularly effective in capturing market reversals and adapting to sudden price changes in volatile environments.
Turtle Trade Channels Indicator with EMATurtle Trade Channels Indicator with EMA (TuTCI + EMA)
This custom indicator combines the classic Turtle Trading Channel strategy with an Exponential Moving Average (EMA) filter to provide clear entry and exit signals, as well as trend direction guidance.
Features:
Turtle Channels: The indicator calculates the upper and lower Turtle Trading Channels based on the highest and lowest values over a user-defined period ( Entry Length for the channel).
Entry/Exit Signals: Alerts you to potential buy and sell opportunities with visual signals on the chart.
Long Entry: When the price crosses above the upper channel.
Short Entry: When the price crosses below the lower channel.
Long Exit: When the price breaks below the exit line.
Short Exit: When the price breaks above the exit line.
EMA Filter: A 50-period Exponential Moving Average (EMA) is included to identify the overall trend. The background color turns green when the price is above the EMA (bullish trend) and red when the price is below the EMA (bearish trend).
Highlighter: Optional background highlighting for the most relevant signals, such as when the price crosses the upper or lower Turtle Channel. This feature helps to easily identify key market movements.
Visual Customization: Customize the EMA length, Entry/Exit lengths, and toggle signals and highlighting to suit your preferences.
How It Works:
The Turtle Trade Channels are designed to capture breakouts by identifying key price levels (highest high and lowest low) over a specified period. By combining this strategy with an EMA, the indicator ensures trades are aligned with the broader trend, increasing the probability of successful trades.
Uptrend: When the price is above the EMA, the indicator considers the trend to be bullish, and it highlights long entry signals.
Downtrend: When the price is below the EMA, the trend is considered bearish, and short entries are emphasized.
Customization:
Entry Length: Adjusts the period for calculating the Turtle Channel's entry levels.
Exit Length: Defines the period for calculating the exit levels.
EMA Length: The period for the Exponential Moving Average (default is set to 50).
Show Entry/Exit Signals: Toggle the visibility of entry/exit signals on the chart.
Highlighter On/Off: Toggle background highlighting for key signals.
This indicator is suitable for traders who follow trend-following strategies, particularly those influenced by the Turtle Trading methodology, and wish to use an EMA filter for better trend confirmation.
Use Cases:
Trend-following traders looking for clear entry/exit signals.
Breakout traders using the Turtle Trading concept to identify price breakouts.
Swing traders who want to incorporate trend analysis with price levels.
Supertrend and MACD strategyThe Supertrend and MACD Strategy is a comprehensive trading approach designed to capitalize on market trends by using a combination of the Supertrend indicator, the Exponential Moving Average (EMA), and the Moving Average Convergence Divergence (MACD). This strategy aims to identify optimal entry and exit points for both long and short trades, while incorporating strict risk management rules.
Indicators Used:
Supertrend: This indicator is used to identify the overall trend direction. It provides clear signals for trend reversals, helping traders to enter trades in the direction of the prevailing trend.
200-period EMA: This long-term moving average is used to determine the primary trend direction. The strategy only takes long trades when the price is above the 200 EMA and short trades when the price is below it.
MACD: The MACD is used to gauge the momentum and confirm the signals provided by the Supertrend and EMA. It consists of the MACD line, the signal line, and the histogram.
Entry Conditions:
Long Entry:
The Supertrend indicator shows an uptrend (direction > 0).
The MACD line is above the signal line (macd > signal).
The price is above the 200-period EMA (close > ema200).
Short Entry:
The Supertrend indicator shows a downtrend (direction < 0).
The MACD line is below the signal line (macd < signal).
The price is below the 200-period EMA (close < ema200).
Exit Conditions:
Long Exit:
Exit the long position when the MACD line crosses below the signal line (ta.crossunder(macd, signal)).
Set a stop loss (SL) below the lowest low of the last 10 periods (lowestLow - 1).
Short Exit:
Exit the short position when the MACD line crosses above the signal line (ta.crossover(macd, signal)).
Set a stop loss (SL) above the highest high of the last 10 periods (highestHigh + 1).
Risk Management:
The strategy ensures that no new positions are opened if there is already an open trade, preventing overexposure in the market.
Alerts:
Alerts are set to notify traders when the MACD crosses the signal line, providing timely updates for potential exit points.
MERCURY by DrAbhiramSivprasad"MERCURY by DrAbhiramSivprasad"
Developed from over 10 years of personal trading experience, the Mercury Indicator is a strategic tool designed to enhance accuracy in trading decisions. Think of it as a guiding light—a supportive tool that helps traders refine and build more robust strategies by integrating multiple powerful elements into a single indicator. I’ll be sharing some examples to illustrate how I use this indicator in my own trading journey, highlighting its potential to improve strategy accuracy.
Reason behind the combination of emas , cpr and vwap is it provides very good support and resistance in my trading carrier so now i brought them together in one plate
How It Works:
Mercury combines three essential elements—EMA, VWAP, and CPR—each of which plays a vital role in detecting support and resistance:
Exponential Moving Averages (EMAs): Known for their strength in providing dynamic support and resistance levels, EMAs help in identifying trends and shifts in momentum. This indicator includes a dashboard with up to nine customizable EMAs, showing whether each is acting as support or resistance based on real-time price movement.
Volume Weighted Average Price (VWAP): VWAP also provides valuable support and resistance, often regarded as a fair price level by institutional traders. Paired with EMAs, it forms a dual-layered support/resistance system, adding an additional level of confirmation.
Central Pivot Range (CPR): By combining CPR with EMAs and VWAP, Mercury highlights “traffic blocks” in your target journey. This means it identifies zones where price is likely to stall or reverse, providing additional guidance for navigating entries and exits.
Why This Combination Matters:
Using these three tools together gives you a more complete view of the market. VWAP and EMAs offer dynamic trend direction and support/resistance, while CPR pinpoints critical price zones. This combination helps you find high-probability trades, adding clarity to complex market situations and enabling stronger confirmation on trend or reversal decisions.
How to Use:
Trend Confirmation: Check if all EMAs are aligned (green for uptrend, red for downtrend), which is visible in the EMA dashboard. An alignment across VWAP, CPR, and EMAs signifies high confidence in trend direction.
Breakouts & Breakdowns: Mercury has an alert system to signal when a price breakout or breakdown occurs across VWAP, EMA1, and EMA2. This can help in spotting strong directional moves.
Example Application: In my trading, I use Mercury to identify support/resistance zones, confirming trends with EMA/VWAP alignment and using CPR as a checkpoint. I find this especially useful for day trading and swing setups.
Recommended Timeframes:
Day Trading: 5 to 15-minute charts for swift, actionable insights.
Swing Trading: 1-hour or 4-hour charts for broader trend analysis.
Note:
The Mercury Indicator should be used as a supportive tool rather than a standalone strategy, guiding you toward informed decisions in line with your trading style and goals.
EXAMPLE OF TRADE
you can see the cart of XAUUSD on 11th nov 2024
1.SHORT POSITION - TIME FRAME 15 MIN
So here for a short position you need to wait for a breakdown candle which will print in orange post the candle you need to check ema dashboard is completly red that indicates no traffic blocks in your journey to destiny target from ema's and you can take the target from nearest cpr support line
TAKEN IN XAUUSD you can see in chart of XAUUSD on 7th nov
2.LONG POSITION - TIME FRAME 15 MIN -
So here for long position you need to wait for a breakout candle from indicator thats here is blue and check all ema boxes are green and candle body should close above all the 3 lines here it is the both ema 1 and 2 and the vwap line then you can take and entry and your target will be the nearest resistance from the daily cpr
3. STOP LOSS CRITERIA
After the entry any candle close below any of the last line from entry for example we have 3 lines vwap and ema 1 and 2 lines and u have made an entry and the last line before the entry is vwap then if any candle closes below vwap can be considered as stoploss like wise in any lines
The MERCURY indicator is a comprehensive trading tool designed to enhance traders' ability to identify trends, breakouts, and reversals effectively. Created by Dr. Abhiram Sivprasad, this indicator integrates several technical elements, including Central Pivot Range (CPR), EMA crossovers, VWAP levels, and a table-based EMA dashboard, to offer a holistic trading view.
Core Components and Functionality:
Central Pivot Range (CPR):
The CPR in MERCURY provides a central pivot level along with Below Central (BC) and Top Central (TC) pivots. These levels act as potential support and resistance, useful for identifying reversal points and zones where price may consolidate.
Exponential Moving Averages (EMAs):
MERCURY includes up to nine EMAs, with a customizable EMA crossover alert system. This feature enables traders to see shifts in trend direction, especially when shorter EMAs cross longer ones.
VWAP (Volume-Weighted Average Price):
VWAP is incorporated as a dynamic support/resistance level and, combined with EMA crossovers, helps refine entry and exit points for higher probability trades.
Breakout and Breakdown Alerts:
MERCURY monitors conditions for upside and downside breakouts. For an upside breakout, all EMAs turn green and a candle closes above VWAP, EMA1, and EMA2. Similarly, all EMAs turning red, combined with a close below VWAP and EMA1/EMA2, signals a downside breakdown. Continuous alerts are available until the trend shifts.
Real-Time EMA Dashboard:
A table displays each EMA’s relative position (Above or Below), helping traders quickly gauge trend direction. Colors in the table adjust to long/short conditions based on EMA alignment.
Usage Recommendations:
Trend Confirmation:
Use the CPR, EMA alignments, and VWAP to confirm uptrends and downtrends. The table highlights trends, making it easy to spot long or short setups at a glance.
Breakout and Breakdown Alerts:
The alert system is customizable for continuous notifications on critical price levels. When all EMAs align in one direction (green for long, red for short) and the close is above or below VWAP and key EMAs, the indicator confirms a breakout/breakdown.
Adaptable for Different Styles:
Day Trading: Traders can set shorter EMAs for quick insights.
Swing Trading: Longer EMAs combined with CPR offer insights into sustained trends.
Recommended Settings:
Timeframes: MERCURY is suitable for timeframes as low as 5 minutes for intraday traders, up to daily charts for trend analysis.
Symbols: Works across forex, stocks, and crypto. Adjust EMA lengths for asset volatility.
Example Strategy:
Long Entry: When the price crosses above CPR and closes above both EMA1 and EMA2.
Short Entry: When the price falls below CPR with a close below both EMA1 and EMA2.
Composite Oscillation Indicator Based on MACD and OthersThis indicator combines various technical analysis tools to create a composite oscillator that aims to capture multiple aspects of market behavior. Here's a breakdown of its components:
* Individual RSIs (xxoo1-xxoo15): The code calculates the RSI (Relative Strength Index) of numerous indicators, including volume-based indicators (NVI, PVI, OBV, etc.), price-based indicators (CCI, CMO, etc.), and moving averages (WMA, ALMA, etc.). It also includes the RSI of the MACD histogram (xxoo14).
* Composite RSI (xxoojht): The individual RSIs are then averaged to create a composite RSI, aiming to provide a more comprehensive view of market momentum and potential turning points.
* MACD Line RSI (xxoo14): The RSI of the MACD histogram incorporates the momentum aspect of the MACD indicator into the composite measure.
* Double EMA (co, coo): The code employs two Exponential Moving Averages (EMAs) of the composite RSI, with different lengths (9 and 18 periods).
* Difference (jo): The difference between the two EMAs (co and coo) is calculated, aiming to capture the rate of change in the composite RSI.
* Smoothed Difference (xxp): The difference (jo) is further smoothed using another EMA (9 periods) to reduce noise and enhance the signal.
* RSI of Smoothed Difference (cco): Finally, the RSI is applied to the smoothed difference (xxp) to create the core output of the indicator.
Market Applications and Trading Strategies:
* Overbought/Oversold: The indicator's central line (plotted at 50) acts as a reference for overbought/oversold conditions. Values above 50 suggest potential overbought zones, while values below 50 indicate oversold zones.
* Crossovers and Divergences: Crossovers of the cco line above or below its previous bar's value can signal potential trend changes. Divergences between the cco line and price action can also provide insights into potential trend reversals.
* Emoji Markers: The code adds emoji markers ("" for bullish and "" for bearish) based on the crossover direction of the cco line. These can provide a quick visual indication of potential trend shifts.
* Colored Fill: The area between the composite RSI line (xxoojht) and the central line (50) is filled with color to visually represent the prevailing market sentiment (green for above 50, red for below 50).
Trading Strategies (Examples):
* Long Entry: Consider a long entry (buying) signal when the cco line crosses above its previous bar's value and the composite RSI (xxoojht) is below 50, suggesting a potential reversal from oversold conditions.
* Short Entry: Conversely, consider a short entry (selling) signal when the cco line crosses below its previous bar's value and the composite RSI (xxoojht) is above 50, suggesting a potential reversal from overbought conditions.
* Confirmation: Always combine the indicator's signals with other technical analysis tools and price action confirmation for better trade validation.
Additional Notes:
* The indicator offers a complex combination of multiple indicators. Consider testing and optimizing the parameters (EMAs, RSI periods) to suit your trading style and market conditions.
* Backtesting with historical data can help assess the indicator's effectiveness and identify potential strengths and weaknesses in different market environments.
* Remember that no single indicator is perfect, and the cco indicator should be used in conjunction with other forms of analysis to make informed trading decisions.
By understanding the logic behind this composite oscillator and its potential applications, you can incorporate it into your trading strategy to potentially identify trends, gauge market sentiment, and generate trading signals.
TrendWave VWAP Indicator with ATR-based SignalsThe TrendWave VWAP Indicator with ATR-Based Signals is a robust TradingView tool for traders who prioritize precision and adaptability. This indicator combines the Volume-Weighted Average Price (VWAP) with the Average True Range (ATR) to provide actionable entry and exit signals while dynamically filtering out sideways market conditions. Designed with flexibility in mind, the indicator offers extensive customization options to tailor signals and filtering to individual trading styles.
Key Features and Customizable Settings
VWAP Integration
VWAP offers a volume-weighted benchmark, ideal for tracking price trends in relation to average trading levels. Customization: Traders can enable or disable VWAP functionality via a toggle, allowing easy adjustments based on market conditions or strategy preferences.
ATR-Based Signal Levels
ATR provides volatility-based levels for precise entry and exit points by measuring average price range. Customization: Traders can set the ATR length (default: 14) and the multiplier (default: 1.5) for adjusting sensitivity. A sideways threshold can be set to control the ATR value at which the indicator pauses signals, helping to avoid low-volatility markets.
Signal Cooldown
To reduce noise in choppy conditions, a signal cooldown enforces a minimum number of bars between signals. Customization: The cooldown period (default: 10 bars) can be adjusted to match preferred trading frequency and discipline requirements.
Signal Logic
Long Entry: Activated when price crosses above the VWAP in a trending market. Cooldown applies to avoid consecutive signals.
Long Exit: Triggered when price crosses below the VWAP.
Short Entry: Initiated when price crosses below the VWAP, in non-sideways conditions.
Short Exit: Occurs when price crosses back above the VWAP following a short position.
Visual Indicators
The VWAP is displayed as a line on the chart for easy trend reference. Entry and exit signals are clearly marked with color-coded shapes, enhancing readability without clutter.
Practical Application
The TrendWave VWAP Indicator with ATR-Based Signals provides tailored entries and exits for trending markets. Its customization options make it suitable for traders who require flexibility and precision in varying market conditions. By adjusting VWAP, ATR, and cooldown parameters, users can fine-tune the indicator to suit different trading styles, making it an essential tool for disciplined trading in dynamic markets.
HBK Price Action Strategy HBKPrice Action Strategy for XAUUSD with a Favorable Risk-Reward Ratio
Understanding the Strategy:
This strategy leverages price action principles to identify potential entry and exit points for XAUUSD on a 5-minute timeframe. The core idea is to identify price action patterns that suggest a high probability of a particular direction, and then to set stop-loss and take-profit levels to manage risk and reward.
Key Price Action Patterns to Watch:
Pin Bar: A pin bar is a candlestick with a long wick in one direction and a small body in the opposite direction. It often signals a reversal in the current trend.
Inside Bar: An inside bar forms when the current candle's high is lower than the previous candle's high, and the current candle's low is higher than the previous candle's low. It often indicates indecision or a potential breakout.
Engulfing Pattern: An engulfing pattern occurs when the current candle completely engulfs the previous candle. A bullish engulfing pattern signals a potential uptrend, while a bearish engulfing pattern signals a potential downtrend.
Risk-Reward Ratio:
A favorable risk-reward ratio is crucial for long-term trading success. Aim for a minimum risk-reward ratio of 1:2, meaning you risk $1 to potentially gain $2.
Entry and Exit Signals:
Long Entry:
Identify a bullish pin bar or engulfing pattern.
Wait for a confirmation candle to close above the pin bar's high or the engulfing pattern's high.
Place a stop-loss below the recent swing low.
Set a take-profit target at a key resistance level or a multiple of the stop-loss distance.
Short Entry:
Identify a bearish pin bar or engulfing pattern.
Wait for a confirmation candle to close below the pin bar's low or the engulfing pattern's low.
Place a stop-loss above the recent swing high.
Set a take-profit target at a key support level or a multiple of the stop-loss distance.
Additional Tips:
Use Support and Resistance Levels: Identify key support and resistance levels to set your stop-loss and take-profit targets.
Consider Market Sentiment: Pay attention to market sentiment and news events that may impact gold prices.
Manage Risk: Always use stop-loss orders to limit potential losses.
Be Patient: Don't force trades. Wait for high-probability setups.
Practice Discipline: Stick to your trading plan and avoid impulsive decisions.
Remember:
Price action trading requires practice and patience.
Backtest your strategy on historical data to refine your approach.
Always adapt to changing market conditions.
By following these guidelines and practicing disciplined risk management, you can increase your chances of success in trading XAUUSD on a 5-minute timeframe.
XAUUSD 10-Minute StrategyThis XAUUSD 10-Minute Strategy is designed for trading Gold vs. USD on a 10-minute timeframe. By combining multiple technical indicators (MACD, RSI, Bollinger Bands, and ATR), the strategy effectively captures both trend-following and reversal opportunities, with adaptive risk management for varying market volatility. This approach balances high-probability entries with robust volatility management, making it suitable for traders seeking to optimise entries during significant price movements and reversals.
Key Components and Logic:
MACD (12, 26, 9):
Generates buy signals on MACD Line crossovers above the Signal Line and sell signals on crossovers below the Signal Line, helping to capture momentum shifts.
RSI (14):
Utilizes oversold (below 35) and overbought (above 65) levels as a secondary filter to validate entries and avoid overextended price zones.
Bollinger Bands (20, 2):
Uses upper and lower Bollinger Bands to identify potential overbought and oversold conditions, aiming to enter long trades near the lower band and short trades near the upper band.
ATR-Based Stop Loss and Take Profit:
Stop Loss and Take Profit levels are dynamically set as multiples of ATR (3x for stop loss, 5x for take profit), ensuring flexibility with market volatility to optimise exit points.
Entry & Exit Conditions:
Buy Entry: T riggered when any of the following conditions are met:
MACD Line crosses above the Signal Line
RSI is oversold
Price drops below the lower Bollinger Band
Sell Entry: Triggered when any of the following conditions are met:
MACD Line crosses below the Signal Line
RSI is overbought
Price moves above the upper Bollinger Band
Exit Strategy: Trades are closed based on opposing entry signals, with adaptive spread adjustments for realistic exit points.
Backtesting Configuration & Results:
Backtesting Period: July 21, 2024, to October 30, 2024
Symbol Info: XAUUSD, 10-minute timeframe, OANDA data source
Backtesting Capital: Initial capital of $700, with each trade set to 10 contracts (equivalent to approximately 0.1 lots based on the broker’s contract size for gold).
Users should confirm their broker's contract size for gold, as this may differ. This script uses 10 contracts for backtesting purposes, aligned with 0.1 lots on brokers offering a 100-contract specification.
Key Backtesting Performance Metrics:
Net Profit: $4,733.90 USD (676.27% increase)
Total Closed Trades: 526
Win Rate: 53.99%
Profit Factor: 1.44 (1.96 for Long trades, 1.14 for Short trades)
Max Drawdown: $819.75 USD (56.33% of equity)
Sharpe Ratio: 1.726
Average Trade: $9.00 USD (0.04% of equity per trade)
This backtest reflects realistic conditions, with a spread adjustment of 38 points and no slippage or commission applied. The settings aim to simulate typical retail trading conditions. However, please adjust the initial capital, contract size, and other settings based on your account specifics for best results.
Usage:
This strategy is tuned specifically for XAUUSD on a 10-minute timeframe, ideal for both trend-following and reversal trades. The ATR-based stop loss and take profit levels adapt dynamically to market volatility, optimising entries and exits in varied conditions. To backtest this script accurately, ensure your broker’s contract specifications for gold align with the parameters used in this strategy.
Austin's Apex AcceleratorIndicator Name: Austin’s Apex Accelerator
Overview
The Austin’s Apex Accelerator is a highly aggressive trading indicator designed specifically for high-frequency Forex trading. It combines several technical analysis tools to identify rapid entry and exit points, making it well-suited for intraday or even lower timeframe trades. The indicator leverages a combination of exponential moving averages (EMAs), Bollinger Bands, volume filters, and volatility-adjusted ranges to detect breakout opportunities and manage risk with precision.
Core Components
Fast and Slow EMAs: The two EMAs act as trend and momentum indicators. When the shorter EMA crosses the longer EMA, it signals a change in momentum. The crossover of these EMAs often indicates a potential entry point, especially when combined with volume and volatility filters.
ATR-Based Range Filter: Using the Average True Range (ATR) for dynamic range calculation, the indicator adapts to market volatility. Higher ATR values widen the range, helping the indicator adjust for volatile conditions.
Volume Filter: A volume condition ensures that buy and sell signals only trigger when there’s significant market interest, reducing the likelihood of false signals in low-liquidity environments.
Bollinger Bands: The Bollinger Bands provide additional context for potential overbought or oversold conditions, highlighting opportunities for price reversals or trend continuations.
Key Features
Aggressive Buy and Sell Signals:
Buy Signal: A buy signal is generated when the fast EMA crosses above the slow EMA, confirming bullish momentum, and the volume condition is met. If the price is also near the lower Bollinger Band, it adds further confirmation of an oversold condition.
Sell Signal: A sell signal is generated when the fast EMA crosses below the slow EMA, confirming bearish momentum, with sufficient trading volume. If the price is near the upper Bollinger Band, it signals a potential overbought condition, which supports the sell signal.
Dynamic Range with ATR:
The indicator uses a volatility-based range, derived from the ATR, to adjust the signal sensitivity based on recent price fluctuations. This dynamic range ensures that signals are responsive in both high and low volatility conditions.
The range’s upper and lower bands act as thresholds, with trades often occurring when the price breaches these levels, signaling momentum shifts or trend reversals.
Trend Background Color:
A green background highlights bullish trends when the fast EMA is above the slow EMA.
A red background signifies bearish trends when the fast EMA is below the slow EMA, providing a visual indication of the overall market trend direction.
Trend Line:
The indicator plots a dynamic trend line that changes color based on the price's relationship to the EMAs, helping traders quickly assess the current trend’s strength and direction.
Alerts:
The indicator includes configurable alerts for buy and sell signals, allowing traders to be notified of entry opportunities without needing to monitor the chart continuously.
How to Use Austin’s Apex Accelerator
Identify Entry Points:
Buy Entry: When the fast EMA crosses above the slow EMA, a buy signal is triggered. Confirm this signal by checking if the price is near or below the lower Bollinger Band (indicating an oversold condition) and if trading volume meets the set threshold.
Sell Entry: When the fast EMA crosses below the slow EMA, a sell signal is triggered. Confirm the signal by ensuring the price is near or above the upper Bollinger Band (suggesting an overbought condition) and that volume is sufficient.
Exit Strategy:
Take Profit: The take profit level is calculated as 1.5 times the ATR from the entry point. This ensures that each trade aims to achieve a positive risk/reward ratio.
Stop Loss: The stop loss is set at 1 ATR from the entry, providing a tight risk control mechanism that limits potential losses on each trade.
Trend Identification and Background Colors:
Use the background colors to assess the trend direction. A green background indicates a bullish trend, while a red background suggests a bearish trend. These colors can help you filter signals that go against the trend, increasing the chances of a successful trade.
Volume Confirmation:
This indicator has an inbuilt volume filter to prevent trading in low-volume conditions. Look for signals only when volume exceeds the average volume threshold, which is set by the multiplier. This helps avoid trading during quieter times when false signals are more likely.
Alerts:
Set up alerts for buy and sell signals to be notified in real-time whenever a new trading opportunity arises, so you can act on high-quality signals promptly.
Practical Tips for Using Austin’s Apex Accelerator
Timeframe: Best suited for short timeframes such as 5-minute or 15-minute charts for high-frequency trading.
VIDYA ProTrend Multi-Tier ProfitHello! This time is about a trend-following system.
VIDYA is quite an interesting indicator that adjusts dynamically to market volatility, making it more responsive to price changes compared to traditional moving averages. Balancing adaptability and precision, especially with the more aggressive short trade settings, challenged me to fine-tune the strategy for a variety of market conditions.
█ Introduction and How it is Different
The "VIDYA ProTrend Multi-Tier Profit" strategy is a trend-following system that combines the VIDYA (Variable Index Dynamic Average) indicator with Bollinger Bands and a multi-step take-profit mechanism.
Unlike traditional trend strategies, this system allows for more adaptive profit-taking, adjusting for long and short positions through distinct ATR-based and percentage-based targets. The innovation lies in its dynamic multi-tier approach to profit-taking, especially for short trades, where more aggressive percentages are applied using a multiplier. This flexibility helps adapt to various market conditions by optimizing trade management and profit allocation based on market volatility and trend strength.
BTCUSD 6hr performance
█ Strategy, How it Works: Detailed Explanation
The core of the "VIDYA ProTrend Multi-Tier Profit" strategy lies in the dual VIDYA indicators (fast and slow) that analyze price trends while accounting for market volatility. These indicators work alongside Bollinger Bands to filter trade entries and exits.
🔶 VIDYA Calculation
The VIDYA indicator is calculated using the following formula:
Smoothing factor (𝛼):
alpha = 2 / (Length + 1)
VIDYA formula:
VIDYA(t) = alpha * k * Price(t) + (1 - alpha * k) * VIDYA(t-1)
Where:
k = |Chande Momentum Oscillator (MO)| / 100
🔶 Bollinger Bands as a Volatility Filter
Bollinger Bands are calculated using a rolling mean and standard deviation of price over a specified period:
Upper Band:
BB_upper = MA + (K * stddev)
Lower Band:
BB_lower = MA - (K * stddev)
Where:
MA is the moving average,
K is the multiplier (typically 2), and
stddev is the standard deviation of price over the Bollinger Bands length.
These bands serve as volatility filters to identify potential overbought or oversold conditions, aiding in the entry and exit logic.
🔶 Slope Calculation for VIDYA
The slopes of both fast and slow VIDYAs are computed to assess the momentum and direction of the trend. The slope for a given VIDYA over its length is:
Slope = (VIDYA(t) - VIDYA(t-n)) / n
Where:
n is the length of the lookback period. Positive slope indicates bullish momentum, while negative slope signals bearish momentum.
LOCAL picture
🔶 Entry and Exit Conditions
- Long Entry: Occurs when the price moves above the slow VIDYA and the fast VIDYA is trending upward. Bollinger Bands confirm the signal when the price crosses the upper band, indicating bullish strength.
- Short Entry: Happens when the price drops below the slow VIDYA and the fast VIDYA trends downward. The signal is confirmed when the price crosses the lower Bollinger Band, showing bearish momentum.
- Exit: Based on VIDYA slopes flattening or reversing, or when the price hits specific ATR or percentage-based profit targets.
🔶 Multi-Step Take Profit Mechanism
The strategy incorporates three levels of take profit for both long and short trades:
- ATR-based Take Profit: Each step applies a multiple of the ATR (Average True Range) to the entry price to define the exit point.
The first level of take profit (long):
TP_ATR1_long = Entry Price + (2.618 * ATR)
etc.
█ Trade Direction
The strategy offers flexibility in defining the trading direction:
- Long: Only long trades are considered based on the criteria for upward trends.
- Short: Only short trades are initiated in bearish trends.
- Both: The strategy can take both long and short trades depending on the market conditions.
█ Usage
To use the strategy effectively:
- Adjust the VIDYA lengths (fast and slow) based on your preference for trend sensitivity.
- Use Bollinger Bands as a filter for identifying potential breakout or reversal scenarios.
- Enable the multi-step take profit feature to manage positions dynamically, allowing for partial exits as the price reaches specified ATR or percentage levels.
- Leverage the short trade multiplier for more aggressive take profit levels in bearish markets.
This strategy can be applied to different asset classes, including equities, forex, and cryptocurrencies. Adjust the input parameters to suit the volatility and characteristics of the asset being traded.
█ Default Settings
The default settings for this strategy have been designed for moderate to trending markets:
- Fast VIDYA Length (10): A shorter length for quick responsiveness to price changes. Increasing this length will reduce noise but may delay signals.
- Slow VIDYA Length (30): The slow VIDYA is set longer to capture broader market trends. Shortening this value will make the system more reactive to smaller price swings.
- Minimum Slope Threshold (0.05): This threshold helps filter out weak trends. Lowering the threshold will result in more trades, while raising it will restrict trades to stronger trends.
Multi-Step Take Profit Settings
- ATR Multipliers (2.618, 5.0, 10.0): These values define how far the price should move before taking profit. Larger multipliers widen the profit-taking levels, aiming for larger trend moves. In higher volatility markets, these values might be adjusted downwards.
- Percentage Levels (3%, 8%, 17%): These percentage levels define how much the price must move before taking profit. Increasing the percentages will capture larger moves, while smaller percentages offer quicker exits.
- Short TP Multiplier (1.5): This multiplier applies more aggressive take profit levels for short trades. Adjust this value based on the aggressiveness of your short trade management.
Each of these settings directly impacts the performance and risk profile of the strategy. Shorter VIDYA lengths and lower slope thresholds will generate more trades but may result in more whipsaws. Higher ATR multipliers or percentage levels can delay profit-taking, aiming for larger trends but risking partial gains if the trend reverses too early.
E9 Shark-32 Pattern Strategy The E9 Shark-32 Pattern is a powerful trading tool designed to capitalize on the Shark-32 pattern—a specific Candlestick pattern.
The Shark-32 Pattern: What Is It?
The Shark-32 pattern is a technical formation that occurs when the following conditions are met:
Higher Highs and Lower Lows: The low of two bars ago is lower than the previous bar, and the previous bar's low is lower than the current bar. At the same time, the high of two bars ago is higher than the previous bar, and the previous bar’s high is higher than the current bar.
This unique setup forms the "Shark-32" pattern, which signals potential volume squeezes and trend changes in the market.
How Does the Strategy Work?
The E9 Shark-32 Pattern Strategy builds upon this pattern by defining clear entry and exit rules based on the pattern's confirmation. Here's a breakdown of how the strategy operates:
1. Identifying the Shark-32 Pattern
When the Shark-32 pattern is confirmed, the strategy "locks" the high and low prices from the initial bar of the pattern. These locked prices serve as key levels for future trade entries and exits.
2. Entry Conditions
The strategy waits for the price to cross the pattern's locked high or low, signaling potential market direction.
Long Entry: A long trade is triggered when the closing price crosses above the locked pattern high (green line).
Short Entry: A short trade is triggered when the closing price crosses below the locked pattern low (red line).
The strategy ensures that only one trade is taken for each Shark-32 pattern, preventing overtrading and allowing traders to focus on high-probability setups.
3. Stop Loss and Take Profit Levels
The strategy has built-in risk management through stop-loss and take-profit levels, which are visually represented by the lines on the chart:
Stop Loss:
Stop loss can be adjusted in settings.
Take Profit:
For long trades: The take-profit target is set at the upper white dotted line, which is projected above the pattern high.
For short trades: The take-profit target is set at the lower white dotted line, which is projected below the pattern low.
These clearly defined levels help traders to manage risk effectively while maximizing potential returns.
4. Visual Cues
To make trading decisions even easier, the strategy provides helpful visual cues:
Green Line (Pattern High): This line represents the high of the Shark-32 pattern and serves as a resistance level and short entry signal.
Red Line (Pattern Low): This line represents the low of the Shark-32 pattern and serves as a support level and long entry signal.
White Dotted Lines: These lines represent potential profit targets, projected both above and below the pattern. They help traders define where the market might go next.
Additionally, the strategy highlights the pattern formation with color-coded bars and background shading to draw attention to the Shark-32 pattern when it is confirmed. This adds a layer of visual confirmation, making it easier to spot opportunities in real-time.
5. No Repeated Trades
An important aspect of the strategy is that once a trade is taken (either long or short), no additional trades are executed until a new Shark-32 pattern is identified. This ensures that only valid and confirmed setups are acted upon.
Multi-Step FlexiMA - Strategy [presentTrading]It's time to come back! hope I can not to be busy for a while.
█ Introduction and How It Is Different
The FlexiMA Variance Tracker is a unique trading strategy that calculates a series of deviations between the price (or another indicator source) and a variable-length moving average (MA). Unlike traditional strategies that use fixed-length moving averages, the length of the MA in this system varies within a defined range. The length changes dynamically based on a starting factor and an increment factor, creating a more adaptive approach to market conditions.
This strategy integrates Multi-Step Take Profit (TP) levels, allowing for partial exits at predefined price increments. It enables traders to secure profits at different stages of a trend, making it ideal for volatile markets where taking full profits at once might lead to missed opportunities if the trend continues.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
🔶 FlexiMA Concept
The FlexiMA (Flexible Moving Average) is at the heart of this strategy. Unlike traditional MA-based strategies where the MA length is fixed (e.g., a 50-period SMA), the FlexiMA varies its length with each iteration. This is done using a **starting factor** and an **increment factor**.
The formula for the moving average length at each iteration \(i\) is:
`MA_length_i = indicator_length * (starting_factor + i * increment_factor)`
Where:
- `indicator_length` is the user-defined base length.
- `starting_factor` is the initial multiplier of the base length.
- `increment_factor` increases the multiplier in each iteration.
Each iteration applies a **simple moving average** (SMA) to the chosen **indicator source** (e.g., HLC3) with a different length based on the above formula. The deviation between the current price and the moving average is then calculated as follows:
`deviation_i = price_current - MA_i`
These deviations are normalized using one of the following methods:
- **Max-Min normalization**:
`normalized_i = (deviation_i - min(deviations)) / range(deviations)`
- **Absolute Sum normalization**:
`normalized_i = deviation_i / sum(|deviation_i|)`
The **median** and **standard deviation (stdev)** of the normalized deviations are then calculated as follows:
`median = median(normalized deviations)`
For the standard deviation:
`stdev = sqrt((1/(N-1)) * sum((normalized_i - mean)^2))`
These values are plotted to provide a clear indication of how the price is deviating from its variable-length moving averages.
For more detail:
🔶 Multi-Step Take Profit
This strategy uses a multi-step take profit system, allowing for exits at different stages of a trade based on the percentage of price movement. Three take-profit levels are defined:
- Take Profit Level 1 (TP1): A small, quick profit level (e.g., 2%).
- Take Profit Level 2 (TP2): A medium-level profit target (e.g., 8%).
- Take Profit Level 3 (TP3): A larger, more ambitious target (e.g., 18%).
At each level, a corresponding percentage of the trade is exited:
- TP Percent 1: E.g., 30% of the position.
- TP Percent 2: E.g., 20% of the position.
- TP Percent 3: E.g., 15% of the position.
This approach ensures that profits are locked in progressively, reducing the risk of market reversals wiping out potential gains.
Local
🔶 Trade Entry and Exit Conditions
The entry and exit signals are determined by the interaction between the **SuperTrend Polyfactor Oscillator** and the **median** value of the normalized deviations:
- Long entry: The SuperTrend turns bearish, and the median value of the deviations is positive.
- Short entry: The SuperTrend turns bullish, and the median value is negative.
Similarly, trades are exited when the SuperTrend flips direction.
* The SuperTrend Toolkit is made by @EliCobra
█ Trade Direction
The strategy allows users to specify the desired trade direction:
- Long: Only long positions will be taken.
- Short: Only short positions will be taken.
- Both: Both long and short positions are allowed based on the conditions.
This flexibility allows the strategy to adapt to different market conditions and trading styles, whether you're looking to buy low and sell high, or sell high and buy low.
█ Usage
This strategy can be applied across various asset classes, including stocks, cryptocurrencies, and forex. The primary use case is to take advantage of market volatility by using a flexible moving average and multiple take-profit levels to capture profits incrementally as the market moves in your favor.
How to Use:
1. Configure the Inputs: Start by adjusting the **Indicator Length**, **Starting Factor**, and **Increment Factor** to suit your chosen asset. The defaults work well for most markets, but fine-tuning them can improve performance.
2. Set the Take Profit Levels: Adjust the three **TP levels** and their corresponding **percentages** based on your risk tolerance and the expected volatility of the market.
3. Monitor the Strategy: The SuperTrend and the FlexiMA variance tracker will provide entry and exit signals, automatically managing the positions and taking profits at the pre-set levels.
█ Default Settings
The default settings for the strategy are configured to provide a balanced approach that works across different market conditions:
Indicator Length (10):
This controls the base length for the moving average. A lower length makes the moving average more responsive to price changes, while a higher length smooths out fluctuations, making the strategy less sensitive to short-term price movements.
Starting Factor (1.0):
This determines the initial multiplier applied to the moving average length. A higher starting factor will increase the average length, making it slower to react to price changes.
Increment Factor (1.0):
This increases the moving average length in each iteration. A larger increment factor creates a wider range of moving average lengths, allowing the strategy to track both short-term and long-term trends simultaneously.
Normalization Method ('None'):
Three methods of normalization can be applied to the deviations:
- None: No normalization applied, using raw deviations.
- Max-Min: Normalizes based on the range between the maximum and minimum deviations.
- Absolute Sum: Normalizes based on the total sum of absolute deviations.
Take Profit Levels:
- TP1 (2%): A quick exit to capture small price movements.
- TP2 (8%): A medium-term profit target for stronger trends.
- TP3 (18%): A long-term target for strong price moves.
Take Profit Percentages:
- TP Percent 1 (30%): Exits 30% of the position at TP1.
- TP Percent 2 (20%): Exits 20% of the position at TP2.
- TP Percent 3 (15%): Exits 15% of the position at TP3.
Effect of Variables on Performance:
- Short Indicator Lengths: More responsive to price changes but prone to false signals.
- Higher Starting Factor: Slows down the response, useful for longer-term trend following.
- Higher Increment Factor: Widens the variability in moving average lengths, making the strategy adapt to both short-term and long-term price trends.
- Aggressive Take Profit Levels: Allows for quick profit-taking in volatile markets but may exit positions prematurely in strong trends.
The default configuration offers a moderate balance between short-term responsiveness and long-term trend capturing, suitable for most traders. However, users can adjust these variables to optimize performance based on market conditions and personal preferences.
RSI ProfitGuard [CHE]The RSI ProfitGuard Indicator is a comprehensive tool designed to assist traders in making informed decisions by integrating the Relative Strength Index (RSI) with automated Take Profit (TP) and Stop Loss (SL) levels. This indicator enhances trading strategies by providing clear entry signals and risk management parameters.
Key Features
RSIBased Signals: Utilizes RSI crossovers and crossunders to generate trade signals.
Automated TP and SL: Automatically calculates and plots Take Profit and Stop Loss levels based on userdefined methods.
Customizable Trade Types: Supports Long trades, Short trades, or both simultaneously.
Flexible Calculation Methods: Choose between Percentagebased or ATRbased methods for determining TP and SL levels.
Visual Enhancements: Highlights overbought and oversold RSI regions with background colors and marks trade entries with arrows.
Alerts: Provides realtime alerts when TP or SL levels are reached, ensuring timely trade management.
How It Works
1. RSI Calculation: The indicator calculates the RSI value based on the specified length.
2. Trade Signals:
Long Entry: Triggered when RSI crosses above the defined crossover threshold.
Short Entry: Triggered when RSI crosses below the defined crossunder threshold.
3. TP/SL Level Determination:
Percentage Method: Sets TP and SL as a percentage above and below the entry price.
ATR Method: Sets TP and SL based on the Average True Range (ATR), allowing for dynamic adjustments based on market volatility.
4. Visualization: Draws lines and labels on the chart to indicate TP, SL, and entry points.
5. Trade Management: Monitors price movements to determine if TP or SL levels are hit, automatically managing the trade state.
Customization Options
Trade Type Selection: Choose to execute Long trades, Short trades, or both.
RSI Settings:
RSI Length: Defines the period for RSI calculation (default is 14).
Crossover Threshold: RSI level above which a Long entry is signaled (default is 65).
Crossunder Threshold: RSI level below which a Short entry is signaled (default is 35).
Delay Settings: Sets the minimum number of bars between consecutive trade signals to avoid overtrading.
TP/SL Settings:
Method Selection: Choose between Percentage or ATRbased calculations.
Percentage Values: Define the percentage for TP and SL levels.
ATR Settings: Define ATR length and multipliers for TP and SL when using the ATR method.
Visual Settings:
Line Colors and Styles: Customize the appearance of TP, SL, crossover, and crossunder lines.
Transparency: Adjust the transparency of lines for better chart visibility.
Label Offset: Position labels at a specified number of bars to the right for clarity.
Using the Indicator
1. Add to Chart: Apply the RSI ProfitGuard Indicator to your TradingView chart.
2. Configure Settings: Adjust the parameters according to your trading strategy and risk tolerance.
3. Interpret Signals:
Long Entries: Look for green upward arrows indicating potential buy opportunities.
Short Entries: Look for red downward arrows indicating potential sell opportunities.
4. Monitor TP and SL Levels: Observe the plotted lines and labels to manage your trades effectively.
5. Set Up Alerts: Enable alerts to receive notifications when TP or SL levels are reached, ensuring you can act promptly.
Benefits
Enhanced DecisionMaking: Combines RSI signals with clear risk management levels.
Time Efficiency: Automates the calculation and plotting of TP and SL, saving time and reducing manual errors.
Flexibility: Adapts to various trading styles and market conditions through customizable settings.
Risk Management: Helps in defining and adhering to risk parameters, essential for longterm trading success.
Conclusion
The RSI ProfitGuard Indicator is an invaluable tool for traders seeking to integrate technical analysis with automated risk management. Its customizable features and realtime alerts provide a robust framework for executing and managing trades with confidence.
Disclaimer
The content provided with our RSI ProfitGuard Indicator, including all code, scripts, lessons, and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell, or an offer of any financial product or service.
Key Points:
Educational Purpose:
All strategies, tools, and examples included within the RSI ProfitGuard Indicator are provided solely for illustrative purposes. They are designed to demonstrate coding techniques and the functionality of Pine Script within a trading context.
No Financial Advice:
The RSI ProfitGuard Indicator does not constitute financial advice. Users should not rely on it as a basis for making investment or trading decisions.
Hypothetical Results:
Any results or performance metrics derived from using the RSI ProfitGuard Indicator are purely hypothetical. Past performance is not indicative of future results, and there is no guarantee of profitability.
Risk Disclosure:
Trading and investing involve significant risks, including the potential loss of principal. The RSI ProfitGuard Indicator is not suitable for all persons, and users should be aware of the inherent risks involved in trading.
Professional Consultation:
Before making any trading decisions, it is strongly recommended to consult with a qualified financial professional to fully understand the risks and ensure that such decisions align with your financial situation and goals.
User Responsibility:
By using the RSI ProfitGuard Indicator, you acknowledge and agree that all trading decisions are made solely at your own discretion and risk. The developers and providers of the RSI ProfitGuard Indicator assume no responsibility or liability for any losses or damages resulting from its use.
Additional Notes:
No Guarantees:
There are no guarantees regarding the accuracy, reliability, or completeness of the RSI ProfitGuard Indicator. Users utilize the tool at their own risk.
No Endorsement:
Any mention of third-party products, services, or strategies within the RSI ProfitGuard Indicator does not constitute an endorsement or recommendation.
Updates and Modifications:
The RSI ProfitGuard Indicator may be updated or modified over time. Users are responsible for staying informed about any changes and understanding how they may impact the use of the tool.
Summary
This disclaimer clearly states that the RSI ProfitGuard Indicator is intended for educational purposes and should not be used as financial advice. It highlights the risks associated with trading, the hypothetical nature of any results, and the importance of consulting with a financial professional. Additionally, it emphasizes that users are solely responsible for their trading decisions and any outcomes that result from using the indicator.
Tips for Implementation:
Visibility:
Ensure that this disclaimer is prominently displayed wherever the RSI ProfitGuard Indicator is offered, such as on your website, within the TradingView description, or in any accompanying documentation.
Clarity:
Use clear and concise language to make sure that all users understand the limitations and responsibilities associated with using the indicator.
Legal Review:
Consider having the disclaimer reviewed by a legal professional to ensure that it meets all necessary legal requirements and adequately protects your interests.
Regular Updates:
Periodically review and update the disclaimer to reflect any changes in the indicator's functionality or in relevant laws and regulations.
Trend Magic with EMA, SMA, and Auto-TradingRelease Notes
Strategy Name: Trend Magic with EMA, SMA, and Auto-Trading
Purpose: This strategy is designed to capture entry and exit points in the market using the Trend Magic indicator and three moving averages (EMA45, SMA90, and SMA180). Specifically, it uses the perfect order of the moving averages and the color changes in Trend Magic to identify trend reversals and potential trading opportunities.
Uniqueness and Usefulness
Uniqueness: The strategy utilizes the Trend Magic indicator, which is based on price and volatility, along with three moving averages to assess the strength of trends. The signals are generated only when the moving averages are in perfect order, and the Trend Magic color changes, ensuring that the entry is made during established trends. This combination provides a higher degree of reliability compared to strategies that rely solely on price action or single indicators.
Usefulness: This strategy is particularly useful for traders looking to capture trends over longer periods. It is effective at reducing noise in the market, only providing signals when the moving averages align and the Trend Magic indicator confirms a trend reversal. It works well in both trending and volatile markets.
Entry Conditions
Long Entry:
Condition: A perfect order (EMA45 > SMA90 > SMA180) is established, and Trend Magic changes color from red to blue.
Signal: A buy signal is generated, indicating the start of an uptrend.
Short Entry:
Condition: A perfect order (EMA45 < SMA90 < SMA180) is established, and Trend Magic changes color from blue to red.
Signal: A sell signal is generated, indicating the start of a downtrend.
Exit Conditions
Exit Strategy:
This strategy automatically enters and exits trades based on signals, but traders are encouraged to manage exits manually according to their own risk management preferences. The strategy includes stop loss and take profit settings based on risk-to-reward ratios for better risk management.
Risk Management
The strategy includes built-in risk management by using the SMA90 level at the time of entry as the stop-loss point and setting the take profit at a 1:1.5 risk-to-reward ratio. The stop-loss level is fixed at the entry point and does not move as the market progresses. Traders are advised to implement additional risk management, such as trailing stops, for added protection.
Account Size: ¥100,000
Commissions and Slippage: Assumes 94 pips for commissions and 1 pip for slippage per trade
Risk per Trade: 10% of account equity (adjust this based on personal risk tolerance)
Configurable Options
Configurable Options:
CCI Period: Set the period for the CCI used to calculate the Trend Magic indicator (default is 21).
ATR Multiplier: Set the multiplier for ATR used in the Trend Magic calculation (default is 1.0).
EMA/SMA Periods: The periods for the three moving averages (default is EMA45, SMA90, and SMA180).
Signal Display Control: An option to toggle the display of buy and sell signals on the chart.
Adequate Sample Size
To ensure the robustness and reliability of this strategy, it is recommended to backtest it with a sufficiently long period of historical data. Testing across different market conditions, including high and low volatility periods, is also advised.
Credits
Acknowledgments:
This strategy is based on the Trend Magic indicator combined with moving averages and draws on contributions from the technical analysis and trading community.
Clean Chart Description
Chart Appearance:
To maintain a clean and simple chart, this strategy includes options to turn off the display of Trend Magic, moving averages, and entry signals. Traders can adjust these display settings as needed to minimize visual clutter and focus on effective trend analysis.
Addressing the House Rule Violations
Omissions and Unrealistic Claims
Clarification:
This strategy does not make any unrealistic or unsupported claims about its performance. All signals are intended for educational purposes only and do not guarantee future results. It is important to note that past performance does not guarantee future outcomes, and proper risk management is crucial.
