Volatility Breaker Blocks [BigBeluga]The Volatility Breaker Blocks indicator identifies key market levels based on significant volatility at pivot highs and lows. It plots blocks that act as potential support and resistance zones, marked in green (support) and blue (resistance). Even after a breakout, these blocks leave behind shadow boxes that continue to impact price action. The sensitivity of block detection can be adjusted in the settings, allowing traders to customize the identification of volatility breakouts. The blocks print triangle labels (up or down) after breakouts, indicating potential areas of interest.
🔵 IDEA
The Volatility Breaker Blocks indicator is designed to highlight key areas in the market where volatility has created significant price action. These blocks, created at pivot highs and lows with increased volatility, act as potential support and resistance levels.
The idea is that even after price breaks through these blocks, the remaining shadow boxes continue to influence price movements. By focusing on volatility-driven pivot points, traders can better anticipate how price may react when it revisits these areas. The indicator also captures the natural tendency for price to retest broken resistance or support levels.
🔵 KEY FEATURES & USAGE
◉ High Volatility Breaker Blocks:
The indicator identifies areas of high volatility at pivot highs and lows, plotting blocks that represent these zones. Green blocks represent support zones (identified at pivot lows), while blue blocks represent resistance zones (identified at pivot highs).
Support:
Resistance:
◉ Shadow Blocks after Breakouts:
When price breaks through a block, the block doesn't disappear. Instead, it leaves behind a shadow box, which can still influence future price action. These shadow blocks act as secondary support or resistance levels.
If the price crosses these shadow blocks, the block stops extending, and the right edge of the box is fixed at the point where the price crosses it. This feature helps traders monitor important price levels even after the initial breakout has occurred.
◉ Triangle Labels for Breakouts:
After the price breaks through a volatility block, the indicator prints triangle labels (up or down) at the breakout points.
◉ Support and Resistance Retests:
One of the key concepts in this indicator is the retesting of broken blocks. After breaking a resistance block, price often returns to the shadow box, which then acts as support. Similarly, after breaking a support block, price tends to return to the shadow box, which becomes a resistance level. This concept of price retesting and bouncing off these levels is essential for understanding how the indicator can be used to identify potential entries and exits.
The natural tendency of price to retest broken resistance or support levels.
Additionaly indicator can display retest signals of broken support or resistance
◉ Customizable Sensitivity:
The sensitivity of volatility detection can be adjusted in the settings. A higher sensitivity captures fewer but more significant breakouts, while a lower sensitivity captures more frequent volatility breakouts. This flexibility allows traders to adapt the indicator to different trading styles and market conditions.
🔵 CUSTOMIZATION
Calculation Window: Defines the window of bars over which the breaker blocks are calculated. A larger window will capture longer-term levels, while a smaller window focuses on more recent volatility areas.
Volatility Sensitivity: Adjusts the threshold for volatility detection. Lower sensitivity captures smaller breakouts, while higher sensitivity focuses on larger, more significant moves.
Retest Signals: Display or hide retest signals of shadow boxes
Cari dalam skrip untuk "order"
Scalping with Williams %R, MACD, and SMA (1m)Overview:
This trading strategy is designed for scalping in the 1-minute timeframe. It uses a combination of the Williams %R, MACD, and SMA indicators to generate buy and sell signals. It also includes alert functionalities to notify users when trades are executed or closed.
Indicators Used:
Williams %R : A momentum indicator that measures overbought and oversold conditions. The Williams %R values range from -100 to 0.
Length: 140 bars (i.e., 140-period).
MACD (Moving Average Convergence Divergence) : A trend-following momentum indicator that shows the relationship between two moving averages of a security's price.
Fast Length: 24 bars
Slow Length: 52 bars
MACD Length: 9 bars (signal line)
SMA (Simple Moving Average) : A trend-following indicator that smooths out price data to create a trend-following indicator.
Length: 7 bars
Conditions and Logic:
Timeframe Check :
The strategy is designed specifically for the 1-minute timeframe. If the current chart is not on the 1-minute timeframe, a warning label is displayed on the chart instructing the user to switch to the 1-minute timeframe.
Williams %R Conditions :
Buy Condition: The strategy looks for a crossover of Williams %R from below -94 to above -94. This indicates a potential buying opportunity when the market is moving out of an oversold condition.
Sell Condition: The strategy looks for a crossunder of Williams %R from above -6 to below -6. This indicates a potential selling opportunity when the market is moving out of an overbought condition.
Deactivate Buy: If Williams %R crosses above -40, the buy signal is deactivated, suggesting that the buying condition is no longer valid.
Deactivate Sell: If Williams %R crosses below -60, the sell signal is deactivated, suggesting that the selling condition is no longer valid.
MACD Conditions :
MACD Histogram: Used to identify the momentum and the direction of the trend.
Long Entry: The strategy initiates a buy order if the MACD histogram shows a positive bar after a negative bar while a buy condition is active and Williams %R is above -94.
Long Exit: The strategy exits the buy position if the MACD histogram turns negative and is below the previous histogram bar.
Short Entry: The strategy initiates a sell order if the MACD histogram shows a negative bar after a positive bar while a sell condition is active and Williams %R is below -6.
Short Exit: The strategy exits the sell position if the MACD histogram turns positive and is above the previous histogram bar.
Trend Confirmation (Using SMA) :
Bullish Trend: The strategy considers a bullish trend if the current price is above the 7-bar SMA. A buy signal is only considered if this condition is met.
Bearish Trend: The strategy considers a bearish trend if the current price is below the 7-bar SMA. A sell signal is only considered if this condition is met.
Alerts:
Long Entry Alert: An alert is triggered when a buy order is executed.
Long Exit Alert: An alert is triggered when the buy order is closed.
Short Entry Alert: An alert is triggered when a sell order is executed.
Short Exit Alert: An alert is triggered when the sell order is closed.
Summary:
Buy Signal: Activated when Williams %R crosses above -94 and the price is above the 7-bar SMA. A buy order is placed if the MACD histogram shows a positive bar after a negative bar. The buy order is closed when the MACD histogram turns negative and is below the previous histogram bar.
Sell Signal: Activated when Williams %R crosses below -6 and the price is below the 7-bar SMA. A sell order is placed if the MACD histogram shows a negative bar after a positive bar. The sell order is closed when the MACD histogram turns positive and is above the previous histogram bar.
This strategy combines momentum (Williams %R), trend-following (MACD), and trend confirmation (SMA) to identify trading opportunities in the 1-minute timeframe. It is designed for short-term trading or scalping.
Cumulative Delta [TradingFinder] Volume + Periodic + EMA🔵 Introduction
To fully grasp the concept of Cumulative Volume Delta (CVD), it's essential first to understand Volume Delta. In trading and technical analysis, the term "Delta" typically refers to the difference between two values or the rate of change between two data points.
Volume Delta represents the difference between buying and selling pressure, calculated for each candlestick on a chart. This difference can vary across different timeframes.
A positive delta indicates that buying volume exceeds selling volume, while a negative delta shows that selling volume is greater. When buying and selling volumes are equal, the volume delta equals zero.
🟣 What is Cumulative Volume Delta (CVD)?
Cumulative Volume Delta (CVD) is a powerful tool in technical analysis that aggregates delta values for each candlestick, creating a comprehensive indicator that helps traders assess market trends.
Unlike the standard Volume Delta, which compares delta on a candle-by-candle basis, CVD provides insight into the overall buying and selling pressure during key market swings. A downward-trending CVD suggests that selling pressure is dominating, which is typically a bearish signal.
Conversely, an upward-trending CVD indicates bullish sentiment. This analysis becomes even more significant when comparing CVD with price action and market structure, helping traders to predict asset price directions.
By evaluating market highs and lows, one can determine the market trend. A consistent rise in these points indicates an uptrend, while a consistent fall suggests a downtrend.
🔵 How to Use
Understanding how to detect trend changes using Cumulative Volume Delta is crucial for traders. Typically, CVD aligns with market structure, moving in the same direction as price trends.
However, divergences between CVD and price trends or signs of exhaustion in volume can be powerful indicators of potential market reversals. Recognizing these patterns can help traders make informed decisions and improve their trading strategies.
🟣 Identifying Trend Exhaustion with Cumulative Volume Delta (CVD)
The Cumulative Volume Delta (CVD) indicator is especially effective in identifying weakening trends in the market. For instance, if gold's price hits a new low, but CVD does not follow suit, this may indicate a lack of seller interest despite the new low, signaling potential seller exhaustion.
Most traders interpret this as a possible reversal from a bearish to a bullish trend. Similarly, if gold reaches a new high but CVD fails to do the same, it can suggest that buyers lack the strength to push the market higher, indicating a possible trend reversal.
🟣 Utilizing Cumulative Volume Delta (CVD) Divergence in Price Trend Analysis
Another effective use of CVD is identifying divergences in price trends. For example, if CVD breaks a previous high or low while the price remains stable, this divergence often indicates that buying or selling pressure is being absorbed.
For instance, if CVD rises sharply without a corresponding increase in gold prices, it may suggest that sellers are absorbing the buying pressure, potentially leading to a strong sell-off. Conversely, if gold prices remain stable while CVD declines, it could indicate that buyers are absorbing selling pressure, likely leading to a price increase once selling subsides.
🔵 Setting
Cumulative Mode : It has three modes "Total", "Periodic" and "EMA". In "Total" mode, it collects the volume from the beginning to the end. In "Periodic" mode, it accumulates the volume periodically and in "EMA" mode, it calculates the moving average of the volume.
Period : You can set the period of " Periodic " and " EMA " modes.
Market Ultra Data : If you turn on this feature, 26 large brokers will be included in the calculation of the trading volume.
The advantage of this capability is to have more reliable volume data. You should be careful to specify the market you are in, FOREX brokers and Crypto brokers are different.
🔵 Conclusion
Cumulative Volume Delta (CVD) is a powerful analytical tool in financial markets that helps analysts and traders assess buying and selling pressure by aggregating and combining the volume delta for each candlestick.
CVD can indicate the strength or weakness of a market trend. When CVD moves upward, it signals that buying pressure is dominant and is considered a bullish signal; conversely, a downward movement in CVD indicates that selling pressure is stronger and is viewed as a bearish signal.
This indicator is particularly effective in identifying divergences and exhaustion in market trends. For example, if CVD does not align with price movements, it may suggest a potential trend reversal.
Traders use this information to make more informed trading decisions, especially when identifying entry and exit points in the market.
Overall, CVD is a tool that enables analysts to better understand market fluctuations and more accurately predict future market trends.
InsertionSortLibrary "InsertionSort"
Library of sorting algorithm for binary insertion sort and related methods
method binary_insertion_sort(sortedArray, item, order)
binary insertion sort - inserts item into sorted array while maintaining sort order
Namespace types: array
Parameters:
sortedArray (array) : array which is assumed to be sorted in the requested order
item (float) : float|int item which needs to be inserted into sorted array
order (series ORDER) : Sort order - positive number means ascending order whereas negative number represents descending order
Returns: int index at which the item is inserted into sorted array
method binary_insertion_sort(sortedArray, item, order)
Namespace types: array
Parameters:
sortedArray (array)
item (int)
order (series ORDER)
Hourly Trading System (Zeiierman)█ Overview
The Hourly Trading System (Zeiierman) is designed to enhance your trading by highlighting critical price levels and trends on an hourly basis. This indicator plots the open prices of hourly and 4-hour candles, visualizes retests, displays average price lines, and overlays higher timeframe candlesticks. It is particularly beneficial for intraday traders seeking to capitalize on short-term price movements and volume patterns.
█ How It Works
This indicator works by plotting significant price levels and zones based on hourly and 4-hour candle opens. It also includes functionalities for identifying retests of these levels, calculating and displaying average prices, and showing high and low labels for each hour.
█ Timeframe
The Hourly Trading System is designed to be used on the 1-minute or 5-minute timeframe. This system is tailored for intraday trading, allowing traders to find optimal entries around hourly opening levels and providing an easy method to identify the hourly trend. It works effectively on any market.
█ How to Use
Trend Analysis
Quickly gauge where the current price stands relative to key hourly and 4-hour levels. The plotted lines and zones serve as potential support and resistance areas, helping traders identify crucial points for entry or exit.
Utilize the 1-hour average and higher timeframe candles to understand the overall market trend. Aligning intraday strategies with larger trends can enhance trading decisions.
Use the bar coloring to quickly gauge the 1-hour trend on a lower timeframe. The bar colors indicate whether the hourly trend is bullish (green) or bearish (red), helping traders make quicker decisions in alignment with the overall trend.
Retest Identification
Enable retest signals to see where the price retested the hourly open levels. These retest points often signal strong price reactions, offering opportunities for trades based on support/resistance flips.
One effective strategy to incorporate is looking for price flips when a new hour starts. This approach involves monitoring price action at the beginning of each hour. If the price breaks and retests the hourly open level with strong momentum, it could indicate a potential trend reversal or continuation. This strategy is effective in volatile markets where price movements are significant at the start of each new hour.
Liquidity Sweep Strategy
Another common and effective strategy is the liquidity sweep. This involves identifying key levels where liquidity is likely to accumulate, such as previous hour highs and lows, and observing how the price interacts with these price levels. When the price sweeps through these levels, triggering stop-loss orders or pending orders, it often results in a sharp price movement followed by a reversal. Traders can capitalize on these movements by entering trades in the direction of the reversal once the liquidity sweep has occurred.
Equal Highs and Lows Strategy
The Equal Highs and Lows strategy leverages the concept of identifying levels where the price forms multiple highs or lows at the same level over different hourly periods. These equal highs and lows often indicate strong support or resistance levels where liquidity is accumulated. When the price approaches these levels, it is likely to trigger stop-loss orders and lead to significant price movements. Traders can look for breakouts or reversals around these levels to enter trades with higher probability setups.
█ Settings
Zone Width: Specifies the width of the zone around the 1-Hour Open as a percentage. Adjust this to widen or narrow the zone.
Show Retests: Enables or disables the display of retest markers. Retest markers show where the price has retested the 1-Hour Open line.
Number of Retests: Sets the number of retests to display. Adjust this to see more or fewer retest markers.
Volume Filter: Enables or disables the volume filter for retests. Use this to highlight retests with significant volume.
Volume Filter Length: Sets the length of the volume filter, smoothing the volume data to reduce noise.
1-Hour Average Line: Enables or disables the 1-hour average price line. This line shows the average price over the past hour.
Hourly High & Low Labels: Enables or disables the display of hourly high and low labels, marking the highest and lowest prices within each hour.
Candlesticks: Enables or disables the display of candlesticks on the chart, providing a detailed view of price action.
Bar Color: Enables or disables bar coloring based on price direction, with up bars in green and down bars in red.
Timeframe: Sets the timeframe for higher timeframe candles. Adjust this to match the period you want to analyze.
Number of Candles: Sets the number of higher timeframe candles to display. Increase this to see more candles on the chart.
Location: Sets the location for higher timeframe candles, allowing you to position them left or right on the chart.
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Support and Resistance [CryptoSea]The Support and Resistance Indicator is a powerful tool developed by CryptoSea for traders seeking to identify key market levels with precision. This script leverages advanced pivot and volume analysis to highlight support and resistance zones on the price chart.
Key Features
Multi-Source Pivot Analysis: Choose between wicks or body prices for calculating pivot points, providing flexibility in market analysis.
Volume Spike Detection: Automatically identifies volume spikes using a customizable threshold multiplier, enhancing the accuracy of support and resistance levels.
Dynamic Box Display: Configurable options for extending and graying out boxes based on price interaction, ensuring a clear visual representation of active and invalidated zones.
In the example below, we see a resistance box formed based on wick highs and a volume spike. The box extends to where we see price rejecting from it. In the settings you can change this so the box will stop if price touches it if you prefer.
How it Works
Pivot Point Calculation: The script determines pivot highs and lows using either wicks or body prices over a specified term (Short, Medium, Long), corresponding to 5, 15, or 30 bars.
Volume Analysis: Calculates average volume over twice the pivot length and identifies volume spikes exceeding the user-defined threshold, crucial for confirming support and resistance levels.
Box Management: Maintains arrays of support and resistance boxes, limiting the number based on user settings (All, Recent Few, Recent Several).
Settings Explained
Source: Choose between 'Wicks' or 'Bodies' to determine whether pivot points are calculated using candle wicks or body prices.
Pivot Term: Select 'Short' (5 bars), 'Medium' (15 bars), or 'Long' (30 bars) to adjust the distance for pivot calculation. Longer terms take more bars to confirm support/resistance.
Volume Threshold (multiplier): Set a multiplier of average volume to detect volume spikes, essential for validating support/resistance levels.
Extend Until Price Hits: Enable this to extend support/resistance boxes until the price touches them, providing dynamic levels.
Gray Out Boxes Once Hit: Enable this to gray out the boxes once the price interacts with them, indicating that they are no longer active.
Max Boxes Displayed: Choose 'All', 'Recent Few' (up to 3 boxes each for bull and bear), or 'Recent Several' (up to 10 boxes each for bull and bear) to control the number of visible boxes.
Invalidate Condition: Select 'Touch' to invalidate a box when the price touches it or 'Through' to invalidate when the price passes entirely through the box.
Candle Colors: Option to color candles based on neutral, bullish, or bearish conditions for easier visual analysis.
Application
Strategic Planning: Assists traders in pinpointing potential entry and exit points by marking significant support and resistance zones.
Trend Confirmation: Validates trend strength and potential reversals with volume-based analysis of support and resistance levels.
Customizable Settings: Tailors analysis to various trading strategies with extensive input settings for pivot source, term, volume threshold, and display preferences.
The Support and Resistance Indicator by is an essential addition to any trader’s toolkit, offering robust and customizable market level analysis for improved trading decisions.
Swing Failure Zones and Signals [AlgoAlpha]Elevate your trading strategy with the Swing Failure Zones and Signals indicator by AlgoAlpha! This powerful tool helps you identify potential swing failure zones, offering clear bullish and bearish signals to guide your trading decisions. 📈💡
🎨 Bullish/Bearish Color Customization : Easily set the colors for bullish and bearish signals to match your chart preferences.
🧹 Mitigated Zone Removal : Option to remove mitigated zones from the chart for a cleaner view.
🔍 Range High/Low Lookback : Adjustable lookback period for determining significant highs and lows.
🖌 Dynamic Zone Creation : Automatically draws zones based on swing failure criteria.
🔔 Alert Conditions : Set alerts for both bullish and bearish swing failure conditions to stay informed without constant monitoring.
Quick Guide to Using the Swing Failure Zones and Signals Indicator
🛠 Add the Indicator : Search for "Swing Failure Zones and Signals " in TradingView's Indicators & Strategies. Customize settings like lookback period, colors, and zone removal options to fit your trading style.
📊 Market Analysis : Watch for the appearance of the zones and the directional arrows for potential reversal signals. Use these signals to identify key market entries and exits.
🔔 Alerts : Enable alerts for bullish and bearish swing failure conditions to capture trading opportunities without constant chart monitoring.
How it works
The indicator calculates the direction and length of each candle to identify swing failure points by comparing current high and low prices with those from the lookback period. A bullish swing failure is detected when the current low is lower than the previous low and the close is higher than the previous high, while a bearish swing failure occurs when the current high is higher than the previous high and the close is lower than the previous low. Upon detection, the script creates zones on the chart to indicate these failure points and manages them by removing invalidated zones based on the user's settings. Visual signals are plotted on the chart as arrows, and alerts are set for these conditions to help traders capture potential entry opportunities efficiently.
Enhance your trading edge with this robust tool designed to spotlight critical swing failure points in the market! 💪📈
Net Buying/Selling Flows Toolkit [AlgoAlpha]🌟📊 Introducing the Net Buying/Selling Flows Toolkit by AlgoAlpha 📈🚀
🔍 Explore the intricate dynamics of market movements with the Net Buying/Selling Flows Toolkit designed for precision and effectiveness in visualizing money inflows and outflows and their impact on asset prices.
🔀 Multiple Display Modes : Choose from "Flow Comparison", "Net Flow", or "Sum of Flows" to view the data in the most relevant way for your analysis.
📏 Adjustable Unit Display : Easily manage the magnitude of the values displayed with options like "1 Billion", "1 Million", "1 Thousand", or "None".
🔧 Lookback Period Customization : Tailor the sum calculation window with a configurable lookback period, applicable in "Sum of Flows" mode.
📊 Deviation Thresholds : Set up lower and upper deviation thresholds to identify significant changes in flow data.
🔄 Reversal Signals and Deviation Bands : Enable signals for potential reversals and visualize deviation bands for comparative analysis.
🎨 Color-coded Visualization : Distinct colors for upward and downward movements make it easy to distinguish between buying and selling pressures.
🚀 Quick Guide to Using the Net Buying/Selling Flows Toolkit :
🔍 Add the Indicator : Add the indicator to you favorites. Customize the settings to fit your trading requirements.
👁️🗨️ Data Analysis : Compare the trend of Buying and Selling to help indicate whether bulls or bears are in control of the market. Utilize the different display modes to present the data in different form to suite your analysis style.
🔔 Set Alerts : Activate alerts for reversal conditions to keep abreast of significant market movements without having to monitor the charts constantly.
🌐 How It Works :
The toolkit processes volume data on a lower timeframe to distinguish between buying and selling pressures based on intra-bar price closing higher or lower than it opened. It aggregates these transactions and finds the net selling and buying that took place during that bar, offering a clearer view of market fundamentals. The indicator then plots this data visually with multiple modes including comparisons between buying/selling and the net flow of the asset. Deviation thresholds help in identifying significant changes, allowing traders to spot potential buying or selling opportunities based on the money flow dynamics. The "Sum of Flows" mode is unique from other trend following indicators as it does not determine trend based on price action, but rather based on the net buying/selling. Therefore in some cases the "Sum of Flows" mode can be a leading indicator showing bullish/bearish net flows even before the prices move significantly.
Embark on a more informed trading journey with this dynamic and insightful tool, tailor-made for those who demand precision and clarity in their trading strategies. 🌟📉📈
Mxwll Price Action Suite [Mxwll]Introducing the Mxwll Price Action Suite!
The Mxwll Price Action Suite is an all-in-one analysis indicator incorporating elements of SMC and also ideas extending beyond the trading methodology!
Features
Internal structures
External structures
Customizable Sensitivities
BoS/CHoCH
Order Blocks
HH/LH/LL/LH Areas
Rolling TF highs/lows
Rolling Volume Comparisons
Auto Fibs
And more!
The image above shows the indicator's market structure identification capabilities. Internal BoS and CHoCH structures in addition to overarching market structures are available with customizable sensitivities.
The image above shows the indicator identifying order blocks! Additionally, HH/LH/LL/LH areas are also identified.
The image above shows a rolling area of interest. These areas can be compared to supply/demand zones, where traders might consider a bargain long/short/sell area.
The indicator displays a rolling 4hr high/low and 1D high/low, alongside auto fibonacci levels with a customizable sensitivity.
Finally, the Mxwll Price Action Suite shows relevant session information.
Table information
Current Session
Countdown to session close
Next Session
Countdown to next session open
Rolling 4-Hr volume intensity
Rolling 24-Hr volume intensity
Introducing the Mxwll SMC Suite!
The Mxwll SMC Suite is an all-in-one analysis indicator incorporating elements of SMC and also ideas extending beyond the trading methodology!
Features
Internal structures
External structures
Customizable Sensitivities
BoS/CHoCH
Order Blocks
HH/LH/LL/LH Areas
Rolling TF highs/lows
Rolling Volume Comparisons
Auto Fibs
And more!
The image above shows the indicator's market structure identification capabilities. Internal BoS and CHoCH structures in addition to overarching market structures are available with customizable sensitivities.
The image above shows the indicator identifying order blocks! Additionally, HH/LH/LL/LH areas are also identified.
The image above shows a rolling area of interest. These areas can be compared to supply/demand zones, where traders might consider a bargain long/short/sell area.
The indicator displays a rolling 4hr high/low and 1D high/low, alongside auto fibonacci levels with a customizable sensitivity.
Finally, the Mxwll Price Action Suite shows relevant session information.
Table information
Current Session
Countdown to session close
Next Session
Countdown to next session open
Rolling 4-Hr volume intensity
Rolling 24-Hr volume intensity
Expanded Features of Mxwll Price Action Suite
Internal and External Structures
Internal Structures: These elements refer to the price formations and patterns that occur within a smaller scope or a specific trading session. The suite can detect intricate details like minor support/resistance levels or short-term trend reversals.
External Structures: These involve larger, more significant market patterns and trends spanning multiple sessions or time frames. This capability helps traders understand overarching market directions.
Customizable Sensitivities
Adjusting sensitivity settings allows users to tailor the indicator's responsiveness to market changes. Higher sensitivity can catch smaller fluctuations, while lower sensitivity might focus on more significant, reliable market moves.
Break of Structure (BoS) and Change of Character (CHoCH)
BoS: This feature identifies points where the price breaks a significant structure, potentially indicating a new trend or a trend reversal.
CHoCH: Detects subtle shifts in the market's behavior, which could suggest the early stages of a trend change before they become apparent to the broader market.
Order Blocks and Market Phases
Order Blocks: These are essentially price levels or zones where significant trading activities previously occurred, likely pointing to the positions of smart money.
HH/LH/LL/LH Areas: Identifying Higher Highs (HH), Lower Highs (LH), Lower Lows (LL), and Lower Highs (LH) helps in understanding the trend and market structure, aiding in predictive analysis.
Rolling Timeframe Highs/Lows and Volume Comparisons
Tracks highs and lows over specified rolling periods, providing dynamic support and resistance levels.
Compares volume data across different timeframes to assess the strength or weakness of the current price movements.
Auto Fibonacci Levels
Automatically calculates and plots Fibonacci retracement levels, a popular tool among traders to identify potential reversal points based on past movements.
Session Data and Volume Intensity
Session Information: Displays current and upcoming trading sessions along with countdown timers, which is crucial for day traders and those trading on session overlaps.
Volume Intensity: Measures and compares the volume within the last 4 hours and 24 hours to gauge market activity and potential breakout/breakdown movements.
Visualizations and Practical Use
Dynamic Visuals: The suite provides dynamic visual aids, such as real-time updating of high/low markers and Fibonacci levels, which adjust as new data comes in. This feature is critical in fast-paced markets.
Strategic Entry/Exit Points: By identifying order blocks and using Fibonacci levels, traders can pinpoint strategic entry and exit points, maximizing potential returns.
Risk Management: Enhanced features like session countdowns and volume intensity help in better risk management by providing traders with more data on market sentiment and potential volatility.
MCOTs Intuition StrategyInitial Capital: The strategy starts with an initial capital of $50,000.
Execution: Trades are executed on every price tick to capture all potential movements.
Contract Size: The default position size is one contract per trade.
Timeframe: Although not explicitly mentioned, this strategy is intended for a one-minute timeframe.
RSI Calculation: The Relative Strength Index (RSI) is calculated over a user-defined period (default is 14 periods).
Standard Deviation: The script calculates the standard deviation of the change in RSI values to determine the threshold for entering trades.
Exhaustion Detection: Before entering a long or short position, the script checks for exhaustion in the RSI’s momentum. This is to avoid entering trades during extreme conditions where a reversal is likely.
Entry Conditions: A long position is entered when the current RSI momentum exceeds the standard deviation threshold and is less than the previous momentum multiplied by an exhaustion factor. A short position is entered under the opposite conditions.
Limit Orders for Exit: Instead of traditional stop loss and take profit orders, the strategy uses limit orders to exit positions. This means the strategy sets a desired price level to close the position and waits for the market to reach this price.
Profit Target and Stop Loss: The script allows setting a profit target and stop loss in terms of ticks, which are the smallest measurable increments in price movement for the traded asset.
blah blah whatever
Alert Sender Library [TradingFinder]Library "AlertSenderLibrary_TradingFinder"
🔵 Introduction
The "Alert Sender Library" is a management and production program for "Alert Messages" that enables the creation of unique messages for any type of signal generated by indicators or strategies.
These messages include the direction of the signal, symbol, time frame, the date and time the condition was triggered, prices related to the signal, and a personal message from you. To make better and more optimal use of this "library", you should carefully study " Key Features" and "How to Use".
🔵 Key Features
Automatic Detection of Appropriate Type :
Using two parameters, "AlertType" and "DetectionType", which you must enter at the beginning into the "AlertSender" function, the type of the alert message is determined.
For example, if you select one of the "DetectionType"s such as "Order Block Signal", "Signal", and "Setup", your alert type will be chosen based on "Long" and "Short". Whether it's "Long" or "Short" depends on the "AlertType" you have set to either "Bullish" or "Bearish".
Automatic Symbol Detection :
Whenever you add an alert for a specific symbol, if you want the name of that symbol to be in your message text, you must manually write the name of the symbol in your message. One of the capabilities of the "Alert Sender" is the automatic detection of the symbol and adding it to the message text.
Automatic Time Frame Detection :
When adding your alert, the "Alert Sender" detects the time frame of the symbol you intend to add the alert for and adds it to the text. This feature is very practical and can prevent traders from making mistakes.
For example, a trader might add alerts for a specific symbol using a specific indicator in different time frames, taking the main signal in the 1-hour time frame and only a confirmation signal in the 15-minute time frame. This feature helps to identify in which time frame the signal is set.
Detection of Date and Time When the Signal is Triggered :
You can have the date and time at the moment the message is sent. This feature has various uses. For example, if you use the Webhook URL feature to send messages to a Telegram channel, there might be issues with alert delivery on your server, causing delays, and you might receive the message when it has lost its validity.
With this feature, you can match the sending time of the message from TradingView with the receipt time in your messenger and detect if there is a delay in message delivery.
Important :
You can also set the Time Zone you wish to receive the date and time based on.
Display of "Key Prices" :
Key prices can vary based on the type of signals. For example, when the "DetectionType" is in "Order Block Signal" mode, the key prices are the "Distal" and "Proximal" prices. Or if the "DetectionType" is in "Setup" mode, the key prices are "Entry", "Stop Loss", and "Take Profit".
Receipt of Personal "Messages" :
You can enter your personal message using "input.string" or "input.text_area" in addition to the messages that are automatically created.
Beautiful and Functional Display of Messages :
The titles of messages sent by "AlertSender" are displayed using related emojis to prevent mistakes due to visual errors, enhancing beauty.
🔵 How to Use
🟣 Familiarity with Function and Parameters
AlertSender(Condition, Alert, AlertName, AlertType, DetectionType, SetupData, Frequency, UTC, MoreInfo, Message, o, h, l, c, Entry, TP, SL, Distal, Proximal)
Parameters:
- Condition (bool)
- Alert (string)
- AlertName (string)
- AlertType (string)
- DetectionType (string)
- SetupData (string)
- Frequency (string)
- UTC (string)
- MoreInfo (string)
- Message (string)
- o (float)
- h (float)
- l (float)
- c (float)
- Entry (float)
- TP (float)
- SL (float)
- Distal (float)
- Proximal (float)
To add "Alert Sender Library", you must first add the following code to your script.
import TFlab/AlertSenderLibrary_TradingFinder/1
🟣 Parameters
"Condition" : This parameter is a Boolean. You need to set it based on the condition that, when met (or fired), you want to receive an alert. The output should be either "true" or "false".
"Alert" : This parameter accepts one of two inputs, "On" or "Off". If set to "On", the alarm is active; if "Off", the alarm is deactivated. This input is useful when you have numerous alerts in an indicator or strategy and need to activate only a few of them. "Alert" is a string parameter.
Alert = input.string('On', 'Alert', , 'If you turn on the Alert, you can receive alerts and notifications after setting the "Alert".', group = 'Alert')
"AlertName" : This is a string parameter where you can enter the name you choose for your alert.
AlertName = input.string('Order Blocks Finder ', 'Alert Name', group = 'Alert')
"AlertType" : The inputs for this parameter are "Bullish" or "Bearish". If the condition selected in the "Condition" parameter is of a bullish bias, you should set this parameter to "Bullish", and if the condition is of a bearish bias, it should be set to "Bearish". "AlertType" is a string parameter.
"DetectionType" : This parameter's predefined inputs include "Order Block Signal", "Signal", "Setup", and "Analysis". You may provide other inputs, but some functionalities, like "Key Price", might be lost. "DetectionType" is a string parameter.
"SetupData" :
If "DetectionType" is set to "Setup", you must specify "SetupData" as either "Basic" or "Full". In "Basic" mode, only the "Entry" price needs to be defined in the function, and "TP" (Take Profit) and "SL" (Stop Loss) can be any number or NA. In "Full" mode, you need to define "Entry", "SL", and "TP". "Setup" is a string parameter.
"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".
Frequency = input.string('Once Per Bar', 'Message Frequency', , 'The triggering frequency. Possible values are: All (all function calls trigger the alert), Once Per Bar (the first function call during the bar triggers the alert), Per Bar Close (the function call triggers the alert only when it occurs during the last script iteration of the real-time bar, when it closes). The default is alert.freq_once_per_bar.', group = 'Alert')
"UTC" : With this parameter, you can set the Time Zone for the date and time of the alert's dispatch. "UTC" is a string parameter and can be set as "UTC-4", "UTC+1", "UTC+9", or any other Time Zone.
UTC = input.string('UTC', 'Show Alert time by Time Zone', group = 'Alert')
"MoreInfo" : This parameter can take one of two inputs, "On" or "Off", which are strings. Additional information, including "Time" and "Key Price", is included. If set to "On", this information is received; if "Off", it is not displayed in the sent message.
MoreInfo = input.string('On', 'Display More Info', , group = 'Alert')
"Message" : This parameter captures the user's personal message through an input and displays it at the end of the sent message. It is a string input.
MessageBull = input.text_area('Long Position', 'Long Signal Message', group = 'Alert') MessageBear = input.text_area('Short Position', 'Short Signal Message', group = 'Alert')
"o" (Open Price): A floating-point number representing the opening price of the candle. This input is necessary when the "DetectionType" is set to "Signal". Otherwise, it can be any number or "na".
"h" (High Price): A float variable for the highest price of the candle. Required when "DetectionType" is "Signal"; in other cases, any number or "na" is acceptable.
"l" (Low Price): A float representing the lowest price of the candle. This field must be filled if "DetectionType" is "Signal". If not, it can be any number or "na".
"c" (Close Price): A floating-point variable indicating the closing price of the candle. Needed for "Signal" type detections; otherwise, it can take any value or "na".
"Entry" : A float variable indicating the entry price into a trading setup. This is relevant when "DetectionType" is in "Setup" mode. In other scenarios, it can be any number or "na". It denotes the price at which the trade setup is entered.
"TP" (Take Profit): A float that is necessary when "DetectionType" is "Setup" and "SetupData" is "Full". Otherwise, it can be any number or "na". It signifies the price target for taking profits in a trading setup.
"SL" (Stop Loss): A float required when "DetectionType" is "Setup" and "SetupData" is "Full". It can be any number or "na" in other cases. This value represents the price at which a stop loss is set to limit losses.
"Distal" : A float important for "Order Block Signal" detection. It can be any number or "na" if not in use. This variable indicates the price reaching the distal line of an order block.
"Proximal" : A float needed for "Order Block Signal" detection mode. It can take any value or "na" otherwise. It marks the price reaching the proximal line of an order block.
Pivots and SwingsThis indicator displays simple pivots of varying degrees and connects them into swings whilst displaying the information of each swing.
First order pivot highs are confirmed when the N number of bars each side of the bar in question have a lower high whilst a first order pivot low is confirmed when the N number of bars on each side of the bar in question have a higher low. In this script N is set to 2 as a default, so when the middle bar of a set of 5 bars has the highest high, then it is considered a first order pivot high and vice versa for lows.
Second order pivot highs are confirmed when a first order pivot is higher than the first order pivot points on either side of the pivot point in question. Second order pivot lows are confirmed when a first order pivot low is lower than the first order pivot lows either side of the pivot in question.
Third order pivots follow the same logic but consider the highest and lowest second order pivots
A quick note on how the bars are coloured basis trends. If price breaks through the last first order pivot high, the bars will be coloured in a (default) green sequence and will stay green until price moves back below the most recent first order pivot low, at which time it will revert to a (default) red sequence.
The information about the duration and magnitude of the swings are displayed in an effort to identify when a swing leg of an overall trend may be shortening which signifies a weakening trend, or lengthening to signify a trend that is gaining in strength.
I hope you find this indicator useful!
CBO (Candle Bias Oscillator)The Candle Bias Oscillator (CBO) with volume and ATR scaling is a unique technical analysis tool designed to capture market sentiment through the analysis of candlestick patterns, volume momentum, and market volatility. This indicator is built on the foundation of assessing the bias within a candlestick's body and wicks, adjusted for market volatility using the Average True Range (ATR), and further refined by comparing the Rate of Change (ROC) in volume and the adjusted bias. The culmination of these calculations results in the CBO, a smoothed oscillator that highlights potential market turning points through divergence analysis.
Key Features:
Bias Calculations: Utilizes the relationship between the candle's body and wicks to determine the market's immediate bias, offering a nuanced view beyond simple price action. Have you ever wanted to quantify exactly how bullish or bearish a particular candle or candlestick pattern is? Whether it's dojis, hammers, engulfing, gravestones, evening morning star, three soldiers etc. you don't have to memorize 50 candlestick patterns anymore.
Volatility Adjustment: Employs the ATR to adjust the bias calculation, ensuring the oscillator remains relevant across varying market conditions by accounting for volatility.
Momentum and Divergence: Measures the momentum in volume and bias through ROC calculations, identifying divergence that may signal reversals or significant price movements.
Signal Line: A smoothed version of the CBO, derived from its own values, serving as a benchmark for identifying potential crossovers and divergences.
Utility and Application:
The CBO with Divergence Scaling is developed for traders who seek a deeper understanding of market dynamics beyond price movements alone. It is particularly useful for identifying potential reversals or continuation patterns early, by highlighting divergence between market sentiment (as expressed through candlestick bias) and actual volume movements. In this way, it aligns us retail traders with institutional traders and smart money. This indicator is versatile and can be applied across various time frames and market instruments, offering value to both short-term traders and long-term investors.
How to Use:
Trend Identification: The direction and value of the CBO provide insights into the prevailing market trend. A positive oscillator value may indicate bullish sentiment, while a negative value suggests bearish sentiment.
Signal Line Crossovers: Crossovers between the CBO and its signal line can be used as potential buy or sell signals. A crossover above the signal line might indicate a buying opportunity, whereas a crossover below could suggest a selling point.
Divergence: Discrepancies between the CBO and price action (especially when confirmed by volume ROC) can highlight potential reversals.
Customization and Parameters: This script allows users to adjust several parameters, including oscillator periods, signal line periods, ATR periods, and ROC periods for divergence, to best fit their trading strategy and the characteristics of the market they are analyzing.
Conclusion:
The Custom Bias Oscillator with Divergence Scaling is a comprehensive tool designed to offer traders a multi-faceted view of market conditions, combining elements of price action, volatility, and momentum. By integrating these aspects into a single indicator, it aims to provide a more rounded and actionable insight into market trends and potential turning points.
To comply with best practices and ensure clarity regarding the informational nature of the Custom Bias Oscillator (CBO) tool, it's crucial to include a disclaimer about the non-advisory nature of the script. Here's a suitable disclaimer that you can add to the end of your script description or publication:
Disclaimer:
The Custom Bias Oscillator (CBO) with Divergence Scaling and its accompanying analysis are provided as tools for educational and informational purposes only and should not be construed as financial advice. The creator of this indicator does not guarantee any specific outcomes or profit, and all users should be aware of the risks involved in trading and investing. Users should conduct their own research and consult with a professional financial advisor before making any investment decisions. The use of this indicator is at the user's own risk, and the creator bears no responsibility for any direct or consequential loss arising from any use of this tool or the information provided herein.
Overbought / Oversold Screener## Introduction
**The Versatile RSI and Stochastic Multi-Symbol Screener**
**Unlock a wealth of trading opportunities with this customizable screener, designed to pinpoint potential overbought and oversold conditions across 17 symbols, with alert support!**
## Description
This screener is suitable for tracking multiple instruments continuously.
With the screener, you can see the instant RSI or Stochastic values of the instruments you are tracking, and easily catch the moments when they are overbought / oversold according to your settings.
The purpose of the screener is to facilitate the continuous tracking of multiple instruments. The user can track up to 17 different instruments in different time intervals. If they wish, they can set an alarm and learn overbought oversold according to the values they set for the time interval of the instruments they are tracking.**
Key Features:
Comprehensive Analysis:
Monitors RSI and Stochastic values for 17 symbols simultaneously.
Automatically includes the current chart's symbol for seamless integration.
Supports multiple timeframes to uncover trends across different time horizons.
Personalized Insights:
Adjust overbought and oversold thresholds to align with your trading strategy.
Sort results by symbol, RSI, or Stochastic values to prioritize your analysis.
Choose between Automatic, Dark, or Light mode for optimal viewing comfort.
Dynamic Visual Cues:
Instantly highlights oversold and overbought symbols based on threshold levels.
Timely Alerts:
Stay informed of potential trading opportunities with alerts for multiple oversold or overbought symbols.
## Settings
### Display
**Timeframe**
The screener displays the values according to the selected timeframe. The default timeframe is "Chart". For example, if the timeframe is set to "15m" here, the screener will show the RSI and stochastic values for the 15-minute chart.
** Theme **
This setting is for changing the theme of the screener. You can set the theme to "Automatic", "Dark", or "Light", with "Automatic" being the default value. When the "Automatic" theme is selected, the screener appearance will also be automatically updated when you enable or disable dark mode from the TradingView settings.
** Position **
This option is for setting the position of the table on the chart. The default setting is "middle right". The available options are (top, middle, bottom)-(left, center, right).
** Sort By **
This option is for changing the sorting order of the table. The default setting is "RSI Descending". The available options are (Symbol, RSI, Stoch)-(Ascending, Descending).
It is important to note that the overbought and oversold coloring of the symbols may also change when the sorting order is changed. If RSI is selected as the sorting order, the symbols will be colored according to the overbought and oversold threshold values specified for RSI. Similarly, if Stoch is selected as the sorting order, the symbols will be colored according to the overbought and oversold threshold values specified for Stoch.
From this perspective, you can also think of the sorting order as a change in the main indicator.
### RSI / Stochastic
This area is for selecting the parameters of the RSI and stochastic indicators. You can adjust the values for "length", "overbought", and "oversold" for both indicators according to your needs. The screener will perform all RSI and stochastic calculations according to these settings. All coloring in the table will also be according to the overbought and oversold values in these settings.
### Symbols
The symbols to be tracked in the table are selected from here. Up to 16 symbols can be selected from here. Since the symbol in the chart is automatically added to the table, there will always be at least 1 symbol in the table. Note that the symbol in the chart is shown in the table with "(C)". For example, if SPX is open in the chart, it is shown as SPX(C) in the table.
## Alerts
The screener is capable of notifying you with an alarm if multiple symbols are overbought or oversold according to the values you specify along with the desired timeframe. This way, you can instantly learn if multiple symbols are overbought or oversold with one alarm, saving you time.
Donchian Quest Research// =================================
Trend following strategy.
// =================================
Strategy uses two channels. One channel - for opening trades. Second channel - for closing.
Channel is similar to Donchian channel, but uses Close prices (not High/Low). That helps don't react to wicks of volatile candles (“stop hunting”). In most cases openings occur earlier than in Donchian channel. Closings occur only for real breakout.
// =================================
Strategy waits for beginning of trend - when price breakout of channel. Default length of both channels = 50 candles.
Conditions of trading:
- Open Long: If last Close = max Close for 50 closes.
- Close Long: If last Close = min Close for 50 closes.
- Open Short: If last Close = min Close for 50 closes.
- Close Short: If last Close = max Close for 50 closes.
// =================================
Color of lines:
- black - channel for opening trade.
- red - channel for closing trade.
- yellow - entry price.
- fuchsia - stoploss and breakeven.
- vertical green - go Long.
- vertical red - go Short.
- vertical gray - close in end, don't trade anymore.
// =================================
Order size calculated with ATR and volatility.
You can't trade 1 contract in BTC and 1 contract in XRP - for example. They have different price and volatility, so 1 contract BTC not equal 1 contract XRP.
Script uses universal calculation for every market. It is based on:
- Risk - USD sum you ready to loss in one trade. It calculated as percent of Equity.
- ATR indicator - measurement of volatility.
With default setting your stoploss = 0.5 percent of equity:
- If initial capital is 1000 USD and used parameter "Permit stop" - loss will be 5 USD (0.5 % of equity).
- If your Equity rises to 2000 USD and used parameter "Permit stop"- loss will be 10 USD (0.5 % of Equity).
// =================================
This Risk works only if you enable “Permit stop” parameter in Settings.
If this parameter disabled - strategy works as reversal strategy:
⁃ If close Long - channel border works as stoploss and momentarily go Short.
⁃ If close Short - channel border works as stoploss and momentarily go Long.
Channel borders changed dynamically. So sometime your loss will be greater than ‘Risk %’. Sometime - less than ‘Risk %’.
If this parameter enabled - maximum loss always equal to 'Risk %'. This parameter also include breakeven: if profit % = Risk %, then move stoploss to entry price.
// =================================
Like all trend following strategies - it works only in trend conditions. If no trend - slowly bleeding. There is no special additional indicator to filter trend/notrend. You need to trade every signal of strategy.
Strategy gives many losses:
⁃ 30 % of trades will close with profit.
⁃ 70 % of trades will close with loss.
⁃ But profit from 30% will be much greater than loss from 70 %.
Your task - patiently wait for it and don't use risky setting for position sizing.
// =================================
Recommended timeframe - Daily.
// =================================
Trend can vary in lengths. Selecting length of channels determine which trend you will be hunting:
⁃ 20/10 - from several days to several weeks.
⁃ 20/20 or 50/20 - from several weeks to several months.
⁃ 50/50 or 100/50 or 100/100 - from several months to several years.
// =================================
Inputs (Settings):
- Length: length of channel for trade opening/closing. You can choose 20/10, 20/20, 50/20, 50/50, 100/50, 100/100. Default value: 50/50.
- Permit Long / Permit short: Longs are most profitable for this strategy. You can disable Shorts and enable Longs only. Default value: permit all directions.
- Risk % of Equity: for position sizing used Equity percent. Don't use values greater than 5 % - it's risky. Default value: 0.5%.
⁃ ATR multiplier: this multiplier moves stoploss up or down. Big multiplier = small size of order, small profit, stoploss far from entry, low chance of stoploss. Small multiplier = big size of order, big profit, stop near entry, high chance of stoploss. Default value: 2.
- ATR length: number of candles to calculate ATR indicator. It used for order size and stoploss. Default value: 20.
- Close in end - to close active trade in the end (and don't trade anymore) or leave it open. You can see difference in Strategy Tester. Default value: don’t close.
- Permit stop: use stop or go reversal. Default value: without stop, reversal strategy.
// =================================
Properties (Settings):
- Initial capital - 1000 USD.
- Script don't uses 'Order size' - you need to change 'Risk %' in Inputs instead.
- Script don't uses 'Pyramiding'.
- 'Commission' 0.055 % and 'Slippage' 0 - this parameters are for crypto exchanges with perpetual contracts (for example Bybit). If use on other markets - set it accordingly to your exchange parameters.
// =================================
Big dataset used for chart - 'BITCOIN ALL TIME HISTORY INDEX'. It gives enough trades to understand logic of script. It have several good trends.
// =================================
MACD_RSI_trend_followingINFO:
This indicator can be used to build-up a strategy for trading of assets which are currently in trending phase.
My preference is to use it on slowly moving assets like GOLD and on higher timeframes, but practice may show that we find more usefull cases.
This script uses two indicators - MACD and RSI, as the timeframe that those are extracted for is configurable (defaults with the Chart TF, but can be any other selected by the user).
The strategy has the following simple idea - buy if any if the conditions below is true:
The selected TF MACD line crosses above the signal line and the TF RSI is above the user selected trigger value
The selected TF MACD line is above the signal line and the TF RSI crosses above the user selected trigger value
Once we're in position we wait for the selected TF MACD line to cross below the signal line, and then we set a SL at the low of that bar
DETAILS and USAGE:
In the current implementation I find two possible use cases for the indicator:
as a stand-alone indicator on the chart which can also fire alerts that can help to determine if we want to manually enter/exit trades based on them
can be used to connect to the Signal input of the TTS (TempalteTradingStrategy) by jason5480 in order to backtest it, thus effectively turning it into a strategy (instructions below in TTS CONNECTIVITY section)
In the example below we see a position opened at the bar after the buy indicator from the script has been triggered, and then later after the SL indicator from the script has been triggered a SL has been set on the lower wick of the closing candle, and the position eventually got closed once the price hit that level. Note that most of the drawing on the example snapshot below are from the TTS indicator following the buy/sell/SL conditions themseves:
Trading period can be selected from the indicator itself to limit to more interesting periods.
Arrow indications are drawn on the chart to indicate the trading conditions met in the script - green arrow for a buy signal indication and orange for LTF crossunder to indicate setting of SL.
SETTINGS:
Leaving all of the settings as in vanilla use case, as both the MACD and RSI indicator's settings follow the default ones for the stand-alone indicators themselves.
The start-end date is a time filter that can be extermely usefull when backtesting different time periods.
Pesonal preference is using the script on a D/W timeframe, while the indicator is configured to use Monthly chart.
The default value of the RSI filter is left to 50, which can be changed. I.e. if the RSI is above 50 we have a regime filter based on the MACD criteria.
EXTERNAL LIBRARIES:
The script uses a couple of external libraries:
HeWhoMustNotBeNamed/enhanced_ta/14 - collection of TA indicators
jason5480/tts_convention/3 - more details about the Template Trading Strategy below
I would like to highly appreciate and credit the work of both HeWhoMustNotBeNamed and jason5480 for providing them to the community.
TTS SETTINGS (NEEDED IF USED TO BACKTEST WITH TTS):
The TempalteTradingStrategy is a strategy script developed in Pine by jason5480, which I recommend for quick turn-around of testing different ideas on a proven and tested framework
I cannot give enough credit to the developer for the efforts put in building of the infrastructure, so I advice everyone that wants to use it first to get familiar with the concept and by checking
by checking jason5480's profile www.tradingview.com
The TTS itself is extremely functional and have a lot of properties, so its functionality is beyond the scope of the current script -
Again, I strongly recommend to be thoroughly epxlored by everyone that plans on using it.
In the nutshell it is a script that can be feed with buy/sell signals from an external indicator script and based on many configuration options it can determine how to execute the trades.
The TTS has many settings that can be applied, so below I will cover only the ones that differ from the default ones, at least according to my testing - do your own research, you may find something even better :)
The current/latest version that I've been using as of writing and testing this script is TTSv48
Settings which differ from the default ones:
from - False (time filter is from the indicator script itself)
Deal Conditions Mode - External (take enter/exit conditions from an external script)
🔌Signal 🛈➡ - MACD_RSI_trend_following: 🔌Signal to TTSv48 (this is the output from the indicator script, according to the TTS convention)
Sat/Sun - true (for crypto, in order to trade 24/7)
Order Type - STOP (perform stop order)
Distance Method - HHLL (HigherHighLowerLow - in order to set the SL according to the strategy definition from above)
The next are just personal preferenes, you can feel free to experiment according to your trading style
Take Profit Targets - 0 (either 100% in or out, no incremental stepping in or out of positions)
Dist Mul|Len Long/Short- 10 (make sure that we don't close on profitable trades by any reason)
Quantity Method - EQUITY (personal backtesting preference is to consider each backtest as a separate portfolio, so determine the position size by 100% of the allocated equity size)
Equity % - 100 (note above)
Dual_MACD_trendingINFO:
This indicator is useful for trending assets, as my preference is for low-frequency trading, thus using BTCUSD on 1D/1W chart
In the current implementation I find two possible use cases for the indicator:
- as a stand-alone indicator on the chart which can also fire alerts that can help to determine if we want to manually enter/exit trades based on the signals from it (1D/1W is good for non-automated trading)
- can be used to connect to the Signal input of the TTS (TempalteTradingStrategy) by jason5480 in order to backtest it, thus effectively turning it into a strategy (instructions below in TTS CONNECTIVITY section)
Trading period can be selected from the indicator itself to limit to more interesting periods.
Arrow indications are drawn on the chart to indicate the trading conditions met in the script - light green for HTF crossover, dark green for LTF crossover and orange for LTF crossunder.
Note that the indicator performs best in trending assets and markets, and it is advisable to use additional indicators to filter the trading conditions when market/asset is expected to move sideways.
DETAILS:
It uses a couple of MACD indicators - one from the current timeframe and one from a higher timeframe, as the crossover/crossunder cases of the MACD line and the signal line indicate the potential entry/exit points.
The strategy has the following flow:
- If the weekly MACD is positive (MACD line is over the signal line) we have a trading window.
- If we have a trading window, we buy when the daily macd line crosses AND closes above the signal line.
- If we are in a position, we await the daily MACD to cross AND close under the signal line, and only then place a stop loss under the wick of that closing candle.
The user can select both the higher (HTF) and lower (LTF) timeframes. Preferably the lower timeframe should be the one that the Chart is on for better visualization.
If one to decide to use the indicator as a strategy, it implements the following buy and sell criterias, which are feed to the TTS, but can be also manually managed via adding alerts from this indicator.
Since usually the LTF is preceeding the crossover compared to the HTF, then my interpretation of the strategy and flow that it follows is allowing two different ways to enter a trade:
- crossover (and bar close) of the macd over the signal line in the HIGH TIMEFRAME (no need to look at the LOWER TIMEFRMAE)
- crossover (and bar close) of the macd over the signal line in the LOW TIMEFRAME, as in this case we need to check also that the macd line is over the signal line for the HIGH TIMEFRAME as well (like a regime filter)
The exit of the trade is based on the lower timeframe MACD only, as we create a stop loss equal to the lower wick of the bar, once the macd line crosses below the signal line on that timeframe
SETTINGS:
All of the indicator's settings are for the vanilla/general case.
User can set all of the MACD parameters for both the higher and lower (current) timeframes, currently left to default of the MACD stand-alone indicator itself.
The start-end date is a time filter that can be extermely usefull when backtesting different time periods.
TTS SETTINGS (NEEDED IF USED TO BACKTEST WITH TTS)
The TempalteTradingStrategy is a strategy script developed in Pine by jason5480, which I recommend for quick turn-around of testing different ideas on a proven and tested framework
I cannot give enough credit to the developer for the efforts put in building of the infrastructure, so I advice everyone that wants to use it first to get familiar with the concept and by checking
by checking jason5480's profile www.tradingview.com
The TTS itself is extremely functional and have a lot of properties, so its functionality is beyond the scope of the current script -
Again, I strongly recommend to be thoroughly epxlored by everyone that plans on using it.
In the nutshell it is a script that can be feed with buy/sell signals from an external indicator script and based on many configuration options it can determine how to execute the trades.
The TTS has many settings that can be applied, so below I will cover only the ones that differ from the default ones, at least according to my testing - do your own research, you may find something even better :)
The current/latest version that I've been using as of writing and testing this script is TTSv48
Settings which differ from the default ones:
- from - False (time filter is from the indicator script itself)
- Deal Conditions Mode - External (take enter/exit conditions from an external script)
- 🔌Signal 🛈➡ - Dual_MACD: 🔌Signal to TTSv48 (this is the output from the indicator script, according to the TTS convention)
- Sat/Sun - true (for crypto, in order to trade 24/7)
- Order Type - STOP (perform stop order)
- Distance Method - HHLL (HigherHighLowerLow - in order to set the SL according to the strategy definition from above)
The next are just personal preferenes, you can feel free to experiment according to your trading style
- Take Profit Targets - 0 (either 100% in or out, no incremental stepping in or out of positions)
- Dist Mul|Len Long/Short- 10 (make sure that we don't close on profitable trades by any reason)
- Quantity Method - EQUITY (personal backtesting preference is to consider each backtest as a separate portfolio, so determine the position size by 100% of the allocated equity size)
- Equity % - 100 (note above)
EXAMPLES:
If used as a stand-alone indicator, the green arrows on the bottom will represent:
- light green - MACD line crossover signal line in the HTF
- darker green - MACD line crossover signal line in the LTF
- orange - MACD line crossunder signal line in the LTF
I recommend enabling the alerts from the script to cover those cases.
If used as an input to the TTS, we'll get more decorations on the chart from the TTS itself.
In the example below we open a trade on the next day of LTF crossover, then a few days later a crossunder in the LTF occurs, so we set a SL at the low of the wick of this day. Few days later the price doesn't recover and hits that SL, so the position is closed.
OKX: MA CrossoverEXAMPLE Scripte from my stream , how to use OKX webhooks for create strategy on Pine with real\demo trading on your OKX account. This strategy only for test the functional forward orders to OKX. The backtest not included commisions and other.
OKX MA Crossover. This strategy generate JSONs for place orders on the exchange by alerts and webhooks.
In the script 2 function to generate entry and exit orders, and input parameters that needed for setup exchange.
Use it for test this stack and to write you own strategy for trade on the OKX Exchange.
Volume Delta Trailing Stop [LuxAlgo]The ' Volume Delta Trailing Stop ' indicator uses Lower Time Frame (LTF) volume delta data which can provide potential entries together with a Volume-Delta based Trailing Stop-line .
🔶 USAGE
Our 'Volume Delta Trailing Stop' script can show potential entries/Stop Loss lines
A trigger line needs to be broken before a position is taken, after which a Volume Delta-controlled Trailing Stop-line is created:
🔶 DETAILS
🔹 Volume rises when bought or sold
🔹 When the opening price appears on the chart, a buy/sell order has been executed.
If that order is less than the available supply of that particular price, volume will rise, without moving the price.
🔹 When the opening price is the same as the closing price, the volume of that bar can be seen as "neutral volume" (nV); nor "up", nor "down" volume.
Example
A buy order doesn't fill the first available supply in the order book. This price will be the opening price with a certain volume.
When at closing time, price still hasn't moved (the first available supply in the order book isn't filled, or no movement downwards),
the closing price will be equal to the opening price, but with volume. This can be seen as "neutral volume (nV)".
🔹 Delta Volume (ΔV): this is "up volume" minus "down volume"
🔹 Standard volume is colored red when closing price is lower than opening price ( = "down volume").
🔹 Standard volume is colored green when closing price is higher OR equal (nV) than opening price ( = "up volume").
🔹 Neutral Volume
The "Neutral-Volume" is considered "Up-Volume" - setting will dictate whether nV is considered as green 'buy' volume or not.
🔶 EXAMPLE
29 July 10:00 -> 10:05, chart timeframe 5 minutes, open 29311.28, close 29313.89
close > open, so the volume (39.55) is colored green ("up volume").
(The Volume script used in the following examples is the open-source publication Volume Columns w. Alerts (V) from LucF )
Let's zoom to the 1-minute TF:
The same period is now divided into more bars, volume direction (color) is dependable on the difference between open and close.
Counting up and down volume gives a more detailed result, it remains in an upward direction though):
(ΔV = +15.51)
Let's further zoom in to the 1-second TF:
The same period is now divided into even more bars (more possibility for changing direction on each bar)
Here we see several bars that haven't moved in price, but they have volume ("neutral" volume).
(neutral volume is coloured light green here, while up volume is coloured darker green)
When we count all green and red volume bars, the result is quite different:
(ΔV = -0.35)
In total more volume is found when price went downwards, yet price went up in these 5 minutes.
-> This is the heart of our publication, when this divergence occurs, you can see a barcolor changement:
• orange: when price went up, but LTF Volume was mainly in a downward direction.
• blue: when price went down, but LTF Volume was mainly in an upwards direction.
When we split the green "up volume" into "up" and "neutral", the difference is even higher
(here "neutral volume" is colored grey):
(ΔV = -12.76; "up" - "down")
🔶 CONCEPTS
bullishBear = current bar is red but LTF volume is in upward direction -> blue bar
bearishBull = current bar is green but LTF volume is in downward direction -> orange bar
🔹 Potential positioning - forming of Trigger-line
When not in position, the script will wait for a divergence between price and volume direction. When found, a Trigger-line will appear:
• at high when a blue bar appears ( bullishBear ).
• at low when an orange bar appears ( bearishBull ).
Next step is when the Trigger-line is broken by close or high/low (settings: Trigger )
Here, the closing price went under the grey Trigger-line -> bearish position:
🔹 Trailing Stop-line
When the Trigger-line is broken, the Trailing Stop-line (TS-line) will start:
• low when bullish position
• high when bearish position
You can choose (settings -> Trigger -> Close or H/L ) whether close price or high/low should break the Trigger-line
When alerts are enabled ("Any alert() function call"), you'll get the following message:
• ' signal up ' when bullish position
• ' signal down' when bearish position
After that, the TS-line will be adjusted when:
• a blue bullishBear bar appears when in bullish position -> lowest of {low , previous blue bar's high or orange bar's low}
• an orange bearishBull bar appears when in bearish position -> highest of {high, previous blue bar's high or orange bar's low}
When alerts are enabled ("Any alert() function call"), and the TS-line is broken, you'll get the following message:
• ' TS-line broken down ' when out bullish position
• ' TS-line broken up ' when out bearish position
🔹 Reference Point
Default the direction of price will be evaluated by comparing closing price with opening price.
When open and close are the same, you'll get "neutral volume".
You can use "previous close" instead (as in built-in volume indicator) to include gaps.
If close equals open , but close is lower than previous close , it will be regarded as " down volume ",
similar, when close is higher than previous close , it will be regarded as " up volume "
Note, the setting applies for the current timeframe AND Lower timeframe:
Based on: " open " (close - open)
Based on: " previous close " (close - previous close)
🔹 Adjustment
When the TS-line changes, this can be adjusted with a percentage of price , or a multiple of " True Range "
Default (Δ line -> Adjustment - 0)
Δ line -> Adjustment 0.03% (of price)
Δ line -> Mult of TR (10)
🔶 SETTINGS
🔹 LTF: choose your Lower TimeFrame: 1S (seconds), 5S, 10S, 15S, 30S, 1 minute)
🔹 Trigger: Choose the trigger for breaking the Trigger-line ; close or H/L (high when bullish position, low when bearish position)
🔹 Δ line ( Trailing Stop-line ): add/subtract an adjustment when the TS-line changes ( default: Adjustment ):
• Adjustment ( default: 0 ): add/subtract an extra % of price
• Mult of TR : add/subtract a multiple of True Range
🔹 Based on: compare closing price against:
• open
• previous close
🔹 "Neutral-Volume" is considered "Up-Volume" : this setting will dictate whether nV is considered as green 'buy' volume or not.
🔶 CONSIDERATIONS
🔹 The lowest LTF (1S) will give you more detail and will get data close to tick data.
However, a maximum of 100,000 intrabars can be used in calculations .
This means on the daily chart you won't see anything since 1 day ~ 86400 seconds. (just over 1 bar)
-> choose a lower chart timeframe, or choose a higher LTF (5S, 10S, ... 1 minute)
🔹 Always choose a LTF lower than the current chart timeframe.
🔹 Pine Script™ code using this request.security_lower_tf() may calculate differently on historical and real-time bars, leading to repainting .
Simple Grid Lines VisualizerAbout Grid Bots
A grid bot is a type of trading bot or algorithm that is designed to automatically execute trades within a predefined price range or grid. It is commonly used in markets that exhibit ranging or sideways movement, where prices tend to fluctuate within a specific range without a clear trend.
The grid bot strategy involves placing a series of buy and sell orders at regular intervals within the predefined price range or grid. The bot essentially creates a grid of orders, hence the name. When the price reaches one of these levels, the bot will execute the corresponding trade. For example, if the price reaches a predefined lower level, the bot will buy, and if it reaches a predefined upper level, it will sell.
The purpose of the grid bot strategy is to take advantage of the price oscillations within the range. As the price moves up and down, the bot aims to generate profits by buying at the lower end of the range and selling at the higher end. By repeatedly buying and selling at these predetermined levels, the bot attempts to capture gains from the price fluctuations.
About this Script
Simple Grid Lines Visualizer is designed to assist traders in visualizing and implementing automated price grids on their charts. With just a few inputs, this script generates gridlines based on your specified top price, bottom price, and the number of grids or profit per grid.
How it Works:
Specify Top and Bottom Prices: Start by setting the top and bottom prices that define the range within which the gridlines will be generated. These prices can be based on support and resistance levels, historical data, or any other factors you consider relevant to your analysis.
Determine Grid Parameters: Choose either the number of grids or profit per grid, depending on your preference and trading strategy. If you select the number of grids, the script will evenly distribute the gridlines within the specified price range. Alternatively, if you opt for profit per grid, the script will calculate the price increment required to achieve your desired profit level per grid.
Note that when choosing Profit per Grid , an approximation usually is performed, as all grid lines must be evenly distributed. To achieve that, the script computes the grid distance using the mean price between top and bottom, then computes how many of those complete distances may enter the entire range, and lastly, creates a grid with evenly distributed distances as close as possible to the previously computed.
Customize Styling and Display: Adjust the line color, line style, transparency, and other visual aspects to ensure clear visibility on your charts.
Analyze and Trade: Once the gridlines are plotted on your chart, carefully observe how the market interacts with them. The gridlines can act as reference points for potential support and resistance levels, as well as simple buy/sell orders for a trading bot.
Try to find gridlines that intersect prices as frequently as possible from one to another.
A grid with too many lines will make lots of potential trades, but the amount traded will be minimal (as the total amount invested is divided over the number of grids).
A grid with too few lines will make lots of profits with each trade, but the trades will be less likely to occur (depending on the top/bottom distance).
This tool aims to help visually which grid parameters seem to optimize this problem.
Future versions may include automatic profit computation.
ICT Sessions_One Setup for Life [MK]The script plots the High/Low of the following trading sessions:
London - 02:00-05:00
NY AM - 09:30-12:00
New York Lunch - 12:00-13:30
New York PM - 13:30-16:00
Due to the high level of liquidity (resting orders), highs and lows of these sessions may be used as buy/sell areas and also as profit target areas. Typically, buy orders would be initiated below a session low and sell orders would be initiated above a
session high.
The script also plots 'RTH (Regular Trading Hours) Opening Gaps'. The RTH gaps are drawn from the closing price of regular trading at 16:15 (EST) to the open price of regular trading at 09:30 (EST). Gaps can be areas that traders might anticipate to be filled at some time in the future. A gap 'midline' is available if needed and yesterday RTH close line can be shown and extended to the current bar.
This script is simply a means to draw boxes around certain areas/periods on the charts. It is in no way a trading strategy and users should spend much time to study the concept and should also perform extensive back-testing before taking any trades.
By setting the lookback value to a much higher value then the default of 6, users can utilise the script to perform their own backtesting studies.
The above chart shows the default setup of the indicator. Note that the user has to choose how far (in days) to lookback and draw the sessions/gaps.
It is also possible to show the session high//low lines and extend them to the current bar time. If this is used it is advised to keep the lookback period as low as possible to ensure charts stay clean/uncluttered.
All boxes/lines styles/colors are fully customisable.
Open interest flow / quantifytools- Overview
Open interest flow detects inflows (positions opening) and outflows (positions closing) using open interest and estimates delta (net buyers/sellers) for the flows. Users are able to choose any open interest source available on Tradingview, by default set to BTCUSDT OI fetched from Binance. Using historical open interest flows, bands depicting typical magnitude of flows are formed for benchmarking intensity of flows. On the inflow side, +1 represents average inflows while +2 represents 2x above average inflows, a level considered an extreme. In a vice versa manner, -1 represents average outflows while -2 represents 2x above average outflows. Extreme inflows indicate aggressive position opening, in other words exuberance. Extreme outflows on the other hand indicate forced exiting of positions, in other words liquidations.
- Concept
Open interest flow is calculated using position of OI source relative to its moving average (by default set to SMA 10), referred to as relative open interest from hereon. When relative OI is positive (open interest is above its moving average), new positions are considered to enter the market. When relative OI is negative (open interest is below its moving average), existing positions are considered to exit the market. Open interest delta (side opening/closing positions, either net buyers/sellers) is calculated using relative price in a similar fashion to relative OI, but using close of viewed symbol as source. Price is considered to be up when relative price is positive, down when relative price is negative. Using relative OI and relative price in tandem, the following assumptions are applied:
Price up, open interest up = longs entering market
Price down, open interest up = shorts entering market
Price down, open interest down = longs exiting market
Price up, open interest down = shorts exiting market
Bands depicting magnitude of open interest flows are calculated using average turning points in relative OI. +1 and -1 represent levels where flows on average turn towards mean rather than continue to increase/decrease. These levels are then multiplied up to +2 and -2, representing two times larger deviations from the normal. When inflows are above 1, positions opening have reached a point where flows historically turn down. Therefore, anything above 1 would be abnormal amount of open interest entering, an extreme stretch being at 2 or above. Same logic applies to outflows, but in a vice versa manner (below -1 abnormal, extreme at -2)
Flow bursts further refine indications of aggressive inflows/outflows by taking into account change in open interest flows. Burst indications are activated when open interest is above its average turning point, coupled with a sufficient increase/decrease in flows simultaneously. Bursts are essentially a filtered version of abnormal flows and therefore a more reliable indication of exuberance/liquidations. Burst sensitivity can be adjusted via input menu, available in 5 settings. 1 sets OI burst requirements to loosest (more signals, more noise) while 5 sets OI burst requirements to strictest (less signals, less noise). Exact criteria applied to bursts can be viewed via input menu tooltip.
- Features
Users can opt for OI source auto-select for CRYPTO/USDT pairs. When auto-select is enabled and another chart is opened, corresponding open interest source is automatically selected as long as requirements mentioned above are met.
Open interest flows can be visualized as chart color, available separately for flow states and flow bursts.
Relative price line and flow guidelines (reminders for flow interpretation) can be enabled via input menu. All colors are customizable.
- Alerts
Available alerts are the following:
- Abnormal long inflows/outflows
- Abnormal short inflows/outflows
- Abnormal inflows/outflows from either side
- Aggressive longs/shorts (flow burst up)
- Liquidated longs/shorts (flow burst down)
- Aggressive or liquidated longs/shorts
- Practical guide
Open interest as a standalone data point does not reveal which side is likely opening/exiting positions and how extreme the participant behavior is. Using the additional data provided by open interest flows, moments of greed and fear can be detected. Smart money does not short into dips and buy into rips. When buyers or sellers have participated in a large move and continue to show interest even when efforts are not rewarded at an already overextended price, participants are asking for trouble.
Similar events can be observed when extreme outflows take place, indicating forced exits such as stop-losses triggering. When enough participants are forced out, price is likely to take the path of least resistance which is to the opposite direction.
ICT Donchian Smart Money Structure (Expo)█ Concept Overview
The Inner Circle Trader (ICT) methodology is focused on understanding the actions and implications of the so-called "smart money" - large institutions and professional traders who often influence market movements. Key to this is the concept of market structure and how it can provide insights into potential price moves.
Over time, however, there has been a notable shift in how some traders interpret and apply this methodology. Initially, it was designed with a focus on the fractal nature of markets. Fractals are recurring patterns in price action that are self-similar across different time scales, providing a nuanced and dynamic understanding of market structure.
However, as the ICT methodology has grown in popularity, there has been a drift away from this fractal-based perspective. Instead, many traders have started to focus more on pivot points as their primary tool for understanding market structure.
Pivot points provide static levels of potential support and resistance. While they can be useful in some contexts, relying heavily on them could provide a skewed perspective of market structure. They offer a static, backward-looking view that may not accurately reflect real-time changes in market sentiment or the dynamic nature of markets.
This shift from a fractal-based perspective to a pivot point perspective has significant implications. It can lead traders to misinterpret market structure and potentially make incorrect trading decisions.
To highlight this issue, you've developed a Donchian Structure indicator that mirrors the use of pivot points. The Donchian Channels are formed by the highest high and the lowest low over a certain period, providing another representation of potential market extremes. The fact that the Donchian Structure indicator produces the same results as pivot points underscores the inherent limitations of relying too heavily on these tools.
While the Donchian Structure indicator or pivot points can be useful tools, they should not replace the original, fractal-based perspective of the ICT methodology. These tools can provide a broad overview of market structure but may not capture the intricate dynamics and real-time changes that a fractal-based approach can offer.
It's essential for traders to understand these differences and to apply these tools correctly within the broader context of the ICT methodology and the Smart Money Concept Structure. A well-rounded approach that incorporates fractals, along with other tools and forms of analysis, is likely to provide a more accurate and comprehensive understanding of market structure.
█ Smart Money Concept - Misunderstandings
The Smart Money Concept is a popular concept among traders, and it's based on the idea that the "smart money" - typically large institutional investors, market makers, and professional traders - have superior knowledge or information, and their actions can provide valuable insight for other traders.
One of the biggest misunderstandings with this concept is the belief that tracking smart money activity can guarantee profitable trading.
█ Here are a few common misconceptions:
Following Smart Money Equals Guaranteed Success: Many traders believe that if they can follow the smart money, they will be successful. However, tracking the activity of large institutional investors and other professionals isn't easy, as they use complex strategies, have access to information not available to the public, and often intentionally hide their moves to prevent others from detecting their strategies.
Instantaneous Reaction and Results: Another misconception is that market movements will reflect smart money actions immediately. However, large institutions often slowly accumulate or distribute positions over time to avoid moving the market drastically. As a result, their actions might not produce an immediate noticeable effect on the market.
Smart Money Always Wins: It's not accurate to assume that smart money always makes the right decisions. Even the most experienced institutional investors and professional traders make mistakes, misjudge market conditions, or are affected by unpredictable events.
Smart Money Activity is Transparent: Understanding what constitutes smart money activity can be quite challenging. There are many indicators and metrics that traders use to try and track smart money, such as the COT (Commitments of Traders) reports, Level II market data, block trades, etc. However, these can be difficult to interpret correctly and are often misleading.
Assuming Uniformity Among Smart Money: 'Smart Money' is not a monolithic entity. Different institutional investors and professional traders have different strategies, risk tolerances, and investment horizons. What might be a good trade for a long-term institutional investor might not be a good trade for a short-term professional trader, and vice versa.
█ Market Structure
The Smart Money Concept Structure deals with the interpretation of price action that forms the market structure, focusing on understanding key shifts or changes in the market that may indicate where 'smart money' (large institutional investors and professional traders) might be moving in the market.
█ Three common concepts in this regard are Change of Character (CHoCH), and Shift in Market Structure (SMS), Break of Structure (BMS/BoS).
Change of Character (CHoCH): This refers to a noticeable change in the behavior of price movement, which could suggest that a shift in the market might be about to occur. This might be signaled by a sudden increase in volatility, a break of a trendline, or a change in volume, among other things.
Shift in Market Structure (SMS): This is when the overall structure of the market changes, suggesting a potential new trend. It usually involves a sequence of lower highs and lower lows for a downtrend, or higher highs and higher lows for an uptrend.
Break of Structure (BMS/BoS): This is when a previously defined trend or pattern in the price structure is broken, which may suggest a trend continuation.
A key component of this approach is the use of fractals, which are repeating patterns in price action that can give insights into potential market reversals. They appear at all scales of a price chart, reflecting the self-similar nature of markets.
█ Market Structure - Misunderstandings
One of the biggest misunderstandings about the ICT approach is the over-reliance or incorrect application of pivot points. Pivot points are a popular tool among traders due to their simplicity and easy-to-understand nature. However, when it comes to the Smart Money Concept and trying to follow the steps of professional traders or large institutions, relying heavily on pivot points can create misconceptions and lead to confusion. Here's why:
Delayed and Static Information: Pivot points are inherently backward-looking because they're calculated based on the previous period's data. As such, they may not reflect real-time market dynamics or sudden changes in market sentiment. Furthermore, they present a static view of market structure, delineating pre-defined levels of support and resistance. This static nature can be misleading because markets are fundamentally dynamic and constantly changing due to countless variables.
Inadequate Representation of Market Complexity: Markets are influenced by a myriad of factors, including economic indicators, geopolitical events, institutional actions, and market sentiment, among others. Relying on pivot points alone for reading market structure oversimplifies this complexity and can lead to a myopic understanding of market dynamics.
False Signals and Misinterpretations: Pivot points can often give false signals, especially in volatile markets. Prices might react to these levels temporarily but then continue in the original direction, leading to potential misinterpretation of market structure and sentiment. Also, a trader might wrongly perceive a break of a pivot point as a significant market event, when in fact, it could be due to random price fluctuations or temporary volatility.
Over-simplification: Viewing market structure only through the lens of pivot points simplifies the market to static levels of support and resistance, which can lead to misinterpretation of market dynamics. For instance, a trader might view a break of a pivot point as a definite sign of a trend, when it could just be a temporary price spike.
Ignoring the Fractal Nature of Markets: In the context of the Smart Money Concept Structure, understanding the fractal nature of markets is crucial. Fractals are self-similar patterns that repeat at all scales and provide a more dynamic and nuanced understanding of market structure. They can help traders identify shifts in market sentiment or direction in real-time, providing more relevant and timely information compared to pivot points.
The key takeaway here is not that pivot points should be entirely avoided or that they're useless. They can provide valuable insights and serve as a useful tool in a trader's toolbox when used correctly. However, they should not be the sole or primary method for understanding the market structure, especially in the context of the Smart Money Concept Structure.
█ Fractals
Instead, traders should aim for a comprehensive understanding of markets that incorporates a range of tools and concepts, including but not limited to fractals, order flow, volume analysis, fundamental analysis, and, yes, even pivot points. Fractals offer a more dynamic and nuanced view of the market. They reflect the recursive nature of markets and can provide valuable insights into potential market reversals. Because they appear at all scales of a price chart, they can provide a more holistic and real-time understanding of market structure.
In contrast, the Smart Money Concept Structure, focusing on fractals and comprehensive market analysis, aims to capture a more holistic and real-time view of the market. Fractals, being self-similar patterns that repeat at different scales, offer a dynamic understanding of market structure. As a result, they can help to identify shifts in market sentiment or direction as they happen, providing a more detailed and timely perspective.
Furthermore, a comprehensive market analysis would consider a broader set of factors, including order flow, volume analysis, and fundamental analysis, which could provide additional insights into 'smart money' actions.
█ Donchian Structure
Donchian Channels are a type of indicator used in technical analysis to identify potential price breakouts and trends, and they may also serve as a tool for understanding market structure. The channels are formed by taking the highest high and the lowest low over a certain number of periods, creating an envelope of price action.
Donchian Channels (or pivot points) can be useful tools for providing a general view of market structure, and they may not capture the intricate dynamics associated with the Smart Money Concept Structure. A more nuanced approach, centered on real-time fractals and a comprehensive analysis of various market factors, offers a more accurate understanding of 'smart money' actions and market structure.
█ Here is why Donchian Structure may be misleading:
Lack of Nuance: Donchian Channels, like pivot points, provide a simplified view of market structure. They don't take into account the nuanced behaviors of price action or the complex dynamics between buyers and sellers that can be critical in the Smart Money Concept Structure.
Limited Insights into 'Smart Money' Actions: While Donchian Channels can highlight potential breakout points and trends, they don't necessarily provide insights into the actions of 'smart money'. These large institutional traders often use sophisticated strategies that can't be easily inferred from price action alone.
█ Indicator Overview
We have built this Donchian Structure indicator to show that it returns the same results as using pivot points. The Donchian Structure indicator can be a useful tool for market analysis. However, it should not be seen as a direct replacement or equivalent to the original Smart Money concept, nor should any indicator based on pivot points. The indicator highlights the importance of understanding what kind of trading tools we use and how they can affect our decisions.
The Donchian Structure Indicator displays CHoCH, SMS, BoS/BMS, as well as premium and discount areas. This indicator plots everything in real-time and allows for easy backtesting on any market and timeframe. A unique candle coloring has been added to make it more engaging and visually appealing when identifying new trading setups and strategies. This candle coloring is "leading," meaning it can signal a structural change before it actually happens, giving traders ample time to plan their next trade accordingly.
█ How to use
The indicator is great for traders who want to simplify their view on the market structure and easily backtest Smart Money Concept Strategies. The added candle coloring function serves as a heads-up for structure change or can be used as trend confirmation. This new candle coloring feature can generate many new Smart Money Concepts strategies.
█ Features
Market Structure
The market structure is based on the Donchian channel, to which we have added what we call 'Structure Response'. This addition makes the indicator more useful, especially in trending markets. The core concept involves traders buying at a discount and selling or shorting at a premium, depending on the order flow. Structure response enables traders to determine the order flow more clearly. Consequently, more trading opportunities will appear in trending markets.
Structure Candles
Structure Candles highlight the current order flow and are significantly more responsive to structural changes. They can provide traders with a heads-up before a break in structure occurs
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
