Median For Loop | viResearchMedian For Loop | viResearch
Conceptual Foundation and Innovation
The "Median For Loop" indicator provides an innovative approach to analyzing market data by combining the power of the Median Price with a dynamic scoring system based on a for loop mechanism. This unique script evaluates the median price of the market over a user-defined period, then applies a loop function to generate a score that helps traders detect trends, reversals, and market momentum.
The median, being a robust measure of central tendency, helps filter out noise and better represent the middle of a price range. By applying a loop function that compares the current median to historical values, this script offers a detailed view of price momentum, allowing traders to detect potential trend changes with improved accuracy.
Technical Composition and Calculation
The "Median For Loop" script is composed of two primary components:
Median Calculation: The indicator calculates the median price of the market based on the chosen input source (default is HLC3: the average of high, low, and close) and the specified length. This creates a central value around which market movements can be evaluated.
For Loop Scoring System: This system compares the current median value with past values within a user-defined range, generating a score that reflects how the market is trending. The loop mechanism dynamically sums the score based on whether the current median is higher or lower than historical medians, providing a clear signal of trend strength and direction.
Key Calculations:
Median Calculation: The median is calculated using the percentile_nearest_rank function, providing the 50th percentile of the selected price data over the given length.
For Loop Scoring:
The loop evaluates the median over a defined range (from and to), comparing the current median to historical values.
If the current median is higher than a previous value, a positive score is added; if it is lower, a negative score is added. This forms the final total score, indicating the trend strength.
Features and User Inputs
The "Median For Loop" script offers flexibility and customization options for traders to adapt it to various market conditions and trading strategies:
Median Length: Control the period over which the median price is calculated, affecting the responsiveness of the indicator to price changes.
Loop Range (From and To): Define the range over which the loop evaluates historical median values, allowing traders to adjust how far back the script looks when assessing momentum.
Thresholds: User-defined thresholds are available to specify when the score indicates an uptrend or downtrend. This provides traders with control over the sensitivity of the trend signals.
Practical Applications
The "Median For Loop" indicator is ideal for traders seeking a balanced, noise-filtered approach to trend detection. It is particularly effective for:
Detecting Early Trend Reversals: The loop-based scoring system offers early signals of potential reversals by comparing the current median with past medians, giving traders an advantage in volatile markets.
Confirming Trend Strength: By analyzing the median over time, the script helps confirm whether trends are gaining or losing momentum, improving the accuracy of trade entries and exits.
Strategic Positioning: The customizable parameters allow traders to adapt the script to various market conditions, enhancing their ability to position themselves effectively in both trending and ranging markets.
Advantages and Strategic Value
The key advantage of the "Median For Loop" script is its ability to reduce market noise by focusing on the median price while providing a dynamic scoring system for trend detection. The combination of median calculation and loop-based evaluation offers a more refined view of market momentum, reducing false signals and increasing the reliability of trend identification. This makes it a valuable tool for traders aiming to enhance their market timing and strategy development.
Alerts and Visual Cues
The script includes built-in alerts to notify traders of potential trend changes:
Median For Loop Long: Triggers when the score exceeds the upper threshold, indicating a possible upward trend.
Median For Loop Short: Triggers when the score falls below the lower threshold, signaling a potential downward trend.
Visual cues are also provided, with background colors highlighting potential trend shifts when the score crosses certain levels, offering traders an easy-to-read signal on the chart.
Summary and Usage Tips
The "Median For Loop | viResearch" indicator provides a powerful combination of median price smoothing and dynamic trend scoring, allowing traders to gain a clearer understanding of market momentum. By incorporating this script into your trading strategy, you can improve your ability to detect trends and reversals while reducing the noise that often affects price data. Whether you're focusing on early reversals or confirming the strength of existing trends, this indicator offers a reliable and customizable solution.
Note: Backtests are based on past results and are not indicative of future performance.
Cari dalam skrip untuk "reversal"
AB_Bnf_Selling_5minThe Mathematical Level Reversal Strategy is designed to identify potential reversal points in the market using mathematical levels combined with price action on a 5-minute chart. This strategy is particularly effective for intraday traders who seek to capitalize on precise entry and exit points based on calculated levels rather than traditional indicators like moving averages or Bollinger Bands.
Creators' Mathematical Levels Explanation
Mathematical levels are predetermined price points calculated based on various factors such as previous high/low points, Fibonacci retracements, or other arithmetic calculations. These levels are used to anticipate areas where the price might reverse or experience significant support or resistance.
higher threshold: A predefined level where the price is expected to experience resistance, leading to a potential reversal downward.
Lower Threshold: A predefined level where the price might find support, leading to a potential upward reversal.
In this strategy, we focus on price movements around the upper mathematical level, where prices are likely to reverse downwards.
Strategy Logic
Setup:
The strategy is applied on a 5-minute chart.
Mathematical levels are calculated based on your preferred method, such as Fibonacci levels, pivot points, or custom calculations. For this strategy, let's assume we are using a specific predefined upper level.
Sell Signal Criteria:
A 5-minute candle must cross above the predefined upper mathematical level or close entirely above it (open and close both above the level).
The following candle must break below the low of the candle that crossed the upper level and close below that low. This confirms a bearish reversal.
Once these conditions are met, a sell signal is triggered.
Stop Loss:
The stop loss is placed at the high of the candle that crossed above the upper mathematical level.
This level represents the point where the trade setup would be invalidated.
Take Profit:
Target 1: The first take profit is set at a level that offers a 1:5 risk-to-reward ratio.
Target 2: An alternative take profit level is set at a 1:3 risk-to-reward ratio, providing flexibility based on market conditions.
Trade Management:
Once a trade is initiated, no new trades will be taken until the current trade hits either the stop loss or the first take profit level. This prevents overlapping signals and helps in managing risk effectively.
Originality and Usefulness
This strategy offers a unique approach by using mathematical levels instead of traditional indicators. It provides traders with a clear framework for identifying and executing high-probability reversal trades, particularly in intraday markets.
Originality:
The strategy's originality lies in its reliance on mathematical levels combined with a multi-candle confirmation pattern. This approach reduces the chances of false signals and offers a robust method for identifying potential reversals.
Usefulness:
The strategy is particularly useful for traders who prefer a more quantitative approach, relying on calculated price levels rather than indicators. The clear rules for entry, stop loss, and take profit make it easier to execute consistently.
The inclusion of both 1:5 and 1:3 risk-to-reward targets allows for flexibility depending on market conditions, ensuring that traders can adapt to varying levels of volatility.
Chart Signals and Examples
To demonstrate the effectiveness of this strategy, let's look at a few hypothetical examples on a 5-minute chart:
Example 1: Clear Reversal Signal
The price steadily rises and crosses above the predefined upper mathematical level. The next candle breaks below the low of this candle and closes lower, triggering a sell signal.
A red dotted line is drawn at the stop loss level (the high of the candle that crossed the upper level).
Two green dashed lines are drawn to indicate the first and second take profit levels.
Example 2: No Signal Due to Ongoing Trade
After an initial sell signal is triggered, the price fluctuates but does not hit either the stop loss or the first take profit target. During this period, the strategy refrains from issuing any new signals, adhering to the trade management rule.
Example 3: Trade Reaches Target 1
In another scenario, the price moves sharply in favor of the trade after the signal is triggered. The first take profit level is hit, securing a profit. The trade is then considered closed, and the strategy is ready to issue a new signal when conditions are met.
Prometheus Polarized Fractal Efficiency (PFE)This indicator uses market data to calculate Polarized Fractal Efficiency (PFE) on an asset, so traders can have a better idea of which direction it may go.
Users can control the lookback length for the fractal calculation, the lookback length for the Exponential Moving Average (EMA), and whether or not to display lines at the -50 and 50 level, or -25 and 25 level.
Polarized Fractal Efficiency:
The Polarized Fractal Efficiency (PFE) indicator is a value between -100 and 100 with 0 as a midpoint.
A PFE above 0 indicates the asset may trend higher, a PFE below 0 indicates the asset may trend lower.
There are many ways to trade with PFE, the intuitive trend riding as described above, or reversals.
Even when the PFE is above 0, if it gets high enough, it may also be an indication of a reversal. A PFE of 90 - 100, or -100 - -90, may indicate price is ready to revert the other direction. Furthermore, traders already in a position may look to breaks of other levels to be their take profit or stop out spot.
Calculation:
Pi = 100 x (Price - Price )2 + N2 / Summation, j= 0, to N-2 (Price - Price )2 + 1
If Close < Close Pi = -Pi
PFEi = EMA(Pi, M)
Where:
N = period of indicator
M = smoothing period
Citation: www.investopedia.com
Scenarios:
Inputs are (9, 5) and every display option is on.
Trend example
Step 1: A short trade appears as PFE crosses below -25. We reach a safe take profit as PFE crosses below -50. Traders can use these levels to exit as well as enter.
Step 2: On the cross above 25 there is a safe long. As the PFE value breaks 0 a safe, early take profit could be appropriate for this trade. No guarantee we would see 50.
Step 3: Long scenario at break of 25, straight to 50. Simple, straightforward setup.
Step 4: This long results in a stop loss. Once again entry as PFE crosses 25, but as we cross the 0 line it is for a loss.
Step 5: The last trade in this example is reminiscent of step 3. This is a short trade entry at break of 25 and exit at break of 50.
Traders have liberty to use the PFE value to determine spots to enter and exit trades, long or short. 25 and 50 were chosen arbitrarily, values like 10 and 60 may work as well, we encourage traders to use their own discretion along with tools.
Reversal example
Step 1: PFE is around -100, crossing below it at one point! Strong zone for a potential reversal.
Step 2: PFE crosses above 25 adding conviction.
Step 3: Option to exit at 70.
Step 4: Option to exit at 90.
There is no “one size fits all method”, this approach may be more intuitive for some users and is just as feasible as the first.
Longer trend example
Step 1: Using -50 and 50 this time instead of -25 and 25 to be safer on our entries we see a short here. Was a good entry and as the value gets closer to -70 we can safely close.
Step 2: On this candle we see a long for the break of 50. On the next candle we break the 0 line, but because of our safe entry at 50, we could hold this and only stop out at a break of -25. We get close but stay in it and close at 70.
Step 3: Break of 50 for a long once again. This time the break of 0 line occurs as we are in profit, not letting a green trade go red is a golden rule of trading, so an early exit here.
Step 4: Same at step 2, break of 50 to long and stay in it, not stopping out at break of 0 line. The PFE value eventually reaches 70 and there is a good exit.
Quicker Reversal example
Step 1: Notice a close with PFE below -90, enter long for the reversal. Then close for profit when the PFE crosses above 70.
Step 2: When the PFE breaks above 90 we have a short entry. Like the long closing it when it crosses below -70.
Step 3: This step is the same setup as step 2. As PFE breaks above 90 we have a short entry. Closing it when it crosses below -70.
Recap:
Described above are 4 different examples with many different trades. Both trend and reversal trades. The PFE value is an indicator that can be used by traders in many different ways and Prometheus encourages traders to use their own discretion along with tools and not follow indicators blindly.
Options:
Users can control the input for the lookback of the indicator. The default is 9.
The smoothing factor for the EMA is also changeable, default is 5.
Users have options to display lines at -50, -25, 25, and 50.
Cumulative Volume Delta (MTF)Cumulative Volume Delta (CVD) Indicator
The Cumulative Volume Delta (CVD) indicator is a powerful analytical tool used to understand the behavior and dynamics of market participants through volume analysis. It tracks the net difference between buying and selling pressure, providing insights into market trends and potential reversals. Here's a detailed description of this indicator and its components:
The Cumulative Volume Delta (CVD) indicator calculates the cumulative net difference between buying and selling volume over a specified period. By analyzing this net difference, traders can gain insights into the underlying strength or weakness of a price movement, helping to identify trends, reversals, and potential breakout points.
Key Components:
Bull & Bear Power Calculation:
Bull Power: Represents the strength of buyers in the market. It is calculated based on the relationship between the current and previous price bars. A higher Bull Power indicates stronger buying pressure.
Bear Power: Represents the strength of sellers in the market. It is also calculated based on the relationship between the current and previous price bars. A higher Bear Power indicates stronger selling pressure.
Bull & Bear Volume Calculation:
Bull Volume: The volume attributed to buying pressure. It is calculated by taking the proportion of Bull Power relative to the total of Bull Power and Bear Power, multiplied by the total volume.
Bear Volume: The volume attributed to selling pressure. It is calculated similarly to Bull Volume but using Bear Power.
Delta Calculation:
Delta: The net difference between Bull Volume and Bear Volume for each bar. A positive Delta indicates more buying pressure, while a negative Delta indicates more selling pressure.
Cumulative Volume Delta (CVD):
CVD: The running total of the Delta values over time. It accumulates the net buying and selling pressure to provide a visual representation of the market's cumulative sentiment.
Moving Average of CVD (CVD MA):
CVD MA: A simple moving average of the CVD, used to smooth out fluctuations and help identify the overall trend. It provides a baseline to compare the current CVD value against, highlighting divergences or convergences.
Multi-Timeframe Functionality:
The enhanced version of the CVD indicator includes multi-timeframe (MTF) capabilities, allowing users to select and analyze data from different timeframes. This feature enhances the versatility of the indicator by providing a broader perspective on market dynamics across various time intervals.
Practical Applications:
Trend Identification: By tracking the CVD and its moving average, traders can identify the prevailing trend. An upward-sloping CVD indicates sustained buying pressure, while a downward-sloping CVD indicates sustained selling pressure.
Divergences: Divergences between the CVD and price can signal potential reversals. For example, if the price is making new highs but the CVD is not, it may indicate weakening buying pressure and a potential reversal.
Breakout Confirmation: Significant changes in the CVD can confirm breakouts. A sharp increase in the CVD during a price breakout indicates strong buying support, adding confidence to the breakout.
Support and Resistance Levels: The CVD can help identify significant support and resistance levels based on changes in volume dynamics. For instance, a notable increase in buying volume at a support level can reinforce its strength.
Auto Gann KEYLVLS "Auto Gann KEYLVLS" indicator can be a valuable tool for traders, especially those who employ Gann theory in their analysis. Here are some ways to effectively use this indicator:
Identifying Key Price Levels: Gann lines are known for their ability to identify key support and resistance levels. Use the plotted Gann lines to identify significant price levels where the market may react.
Confirmation of Trend Reversals: When price approaches a Gann line, observe how the price reacts. A bounce off a Gann line can confirm the continuation of the trend, while a break of a Gann line may indicate a potential trend reversal.
Entry and Exit Points: Gann lines can serve as entry and exit points for trades. Look for confluence between Gann lines and other technical indicators or patterns to identify high-probability trade setups.
Trading with the Trend: In an uptrend, consider buying opportunities near Gann support levels, while in a downtrend, look for selling opportunities near Gann resistance levels.
Risk Management: Use Gann lines to set stop-loss and take-profit levels. Place stop-loss orders below Gann support levels for long trades and above Gann resistance levels for short trades to manage risk effectively.
Timeframe Analysis: Utilize the flexibility of this indicator to plot Gann lines on different timeframes. Compare Gann lines across multiple timeframes to identify alignment or divergence, which can provide additional confirmation for trading decisions.
Combination with Other Indicators: Combine the information provided by Gann lines with other technical indicators, such as moving averages, RSI, or MACD, to strengthen your trading decisions.
Input Parameters:
The script defines several input parameters that control the behavior of the Gann lines, such as the number of weeks to look back for highs and lows, the number of Gann lines to plot, line extension settings, and options to show or hide specific Gann lines like .25, .37, .50, .63, and .75.
Auto Gann Functionality:
The script calculates the highest high and lowest low for the specified number of weeks, hours, and minutes.
It then calculates quartile levels (0.25, 0.50, 0.75) based on the weekly high and low.
Gann lines are drawn based on these levels, with options to extend them left and/or right.
Labels are added to the Gann lines indicating their values.
Weekly Gann Lines:
The script plots Gann lines and labels based on the weekly high and low levels.
Labels are added to these lines indicating their values.
Sub Gann Lines:
Additional Gann lines are plotted based on the weekly high and low levels, with subdivisions for lower timeframes like H4, H1, M15, and M1.
Label Management:
Labels are managed based on user preferences, including options to show labels once on the left side, redraw labels on the right side, or not show labels at all.
[KVA] Kamvia Directional MovementKamvia Directional Movement (KDM) Indicator is an analytical tool designed to identify potential buying and selling opportunities in the market. It highlights the phases of price depletion which typically align with price highs and lows, offering a nuanced understanding of market dynamics.
Efficient at pinpointing trend breakdowns and excelling in the identification of intra-day entry and exit points, the Kamvia Directional Movement Indicator is a valuable asset for traders aiming to optimize their market strategies.
The KDM not only takes into account the traditional high and low price points within its analysis but also introduces an innovative approach by incorporating the concepts of body high and body low. This nuanced analysis offers a deeper insight into market momentum and potential shifts in market dynamics.
High and Low Analysis : The indicator examines the price highs and lows to gauge the overall market volatility and potential turning points. By analyzing these extremities, traders can get a sense of market strength and possible shifts in trend direction. The high points indicate periods of maximum buying interest, potentially signaling overbought conditions, while the low points reflect selling interest, hinting at oversold conditions.
Body High and Body Low Analysis : Unique to the KDM Indicator is the emphasis on the body of the candlestick, which is the range between the open and close prices. This analysis offers a more refined view of market sentiment by focusing on the actual trading range experienced within the period. The body high (the upper end of the candlestick body) and body low (the lower end of the candlestick body) provide insights into the buying and selling pressure during the trading session, beyond mere price extremities.
The indicator is calibrated on a scale from 0 to 100, making interpretation intuitive and straightforward. A reading above 70 is considered to be in the overbought region, suggesting that the market might be experiencing a heightened level of buying activity that could lead to a potential pullback or reversal. Conversely, a reading below 30 falls into the oversold region, indicating a possible exhaustion in selling pressure and a potential for market reversal or bounce back.
This scale and the detailed analysis of both price and body dynamics equip traders with a comprehensive tool for assessing market conditions. The distinction between high/low and body high/body low analysis enriches the indicator's capability to provide more targeted insights into market behavior, enabling traders to make more nuanced decisions based on a broader spectrum of information. By identifying the duration and extent to which these conditions persist, traders can better interpret the market's momentum and align their strategies with the prevailing trend or prepare for an impending reversal.
KDM Strategy
The strategy focuses on spotting price reversals within a confirmed trend. While the indicator features regions indicating overbought and oversold conditions, these signals alone are not sufficient predictors of a market reversal.
The terms "overbought" and "oversold" describe scenarios where prices reach levels that are unusually high or low within a specified look-back period. Entering these zones often indicates a continuation of the trend rather than a reversal.
A "strongly overbought" condition signals buying pressure, whereas a "strongly oversold" condition indicates selling pressure. The key to leveraging these conditions lies in analyzing the duration for which the market remains in either state. This duration can provide critical insights into whether the market is trending or ranging.
Extended periods in extreme overbought territories confirm an uptrend, while prolonged presence in slight overbought zones (above 50 but below 70, for example) suggests a more moderate uptrend. Conventionally, levels above 70 signal extreme overbought conditions, and those below 30 indicate extreme oversold conditions.
Traders are advised to exercise caution when the oscillator stays within these extreme areas. Ideally, the strategy involves capitalizing on temporary price drops within an overall uptrend or on temporary price spikes within an overall downtrend.
Identifying trading opportunities with the KDM Indicator involves looking for the indicator to exit these extreme overbought or oversold regions, signaling potential reversals or continuations in the market's direction. This approach helps traders make informed decisions by considering the broader market trend alongside short-term price movements.
Extended Engulfing CandleExtended Engulfing Candle Pattern Indicator
This indicator advances the standard engulfing candle pattern, capturing more reliable trend reversal signals in the market. Traditional engulfing candle patterns often lead to premature judgments of trend reversals, but the Extended Engulfing Indicator considers consecutive rising or falling candles to pinpoint more conservative trend reversal points.
Features:
Detection of Consecutive Rising/Falling Candles:
This indicator detects the occurrence of consecutive rising or falling candles, considering them when identifying extended engulfing candles. This creates a more potent reversal signal compared to single candle patterns.
Visual Display:
“U” and “D” labels are displayed at the top and bottom of the chart, clearly showing users the rising and falling engulfing patterns.
It only displays a label once, until a pattern in the opposite direction is shown.
Enhanced Accuracy:
By using the information from consecutive candles, the indicator captures trend reversals more conservatively and accurately. This reduces the number of false signals compared to traditional engulfing candle patterns.
How to Use:
When a rising engulfing candle pattern is displayed, it signifies the start of a potential upward trend. Conversely, when a falling engulfing candle pattern appears, it implies the beginning of a potential downward trend.
Caution:
Trading solely with this indicator has its limitations; hence users should cautiously integrate it with their trading strategies. Not all rising and falling engulfing patterns signify trend reversals.
Conclusion:
The Extended Engulfing Candle Pattern Indicator assists in identifying more reliable trend reversal points compared to the traditional engulfing candle patterns. By identifying the high and low points of consecutive candles, it minimizes false signals and helps traders make more accurate judgments on market movements.
확장 장악형 캔들 패턴 인디케이터
이 인디케이터는 표준 장악형 캔들 패턴을 발전시켜, 마켓에서 더 확실한 트렌드 전환 시그널을 포착합니다. 기존의 장악형 캔들 패턴은 종종 너무 이른 트렌드 전환 판단을 내리지만, 확장 장악형 인디케이터는 연속적인 상승 혹은 하락 캔들을 고려하여 더 보수적인 트렌드 전환점을 포착합니다.
특징:
연속 상승/하락 캔들 감지:
이 인디케이터는 연속적인 상승 또는 하락 캔들의 발생을 감지하여, 확장 장악형 캔들이 나타날 때 이를 고려합니다.
이는 단일 캔들 패턴보다 더 강력한 전환 시그널을 생성합니다.
시각적 표시:
차트의 상단과 하단에 “U”와 “D” 라벨을 표시하여, 사용자에게 상승 장악형 및 하락 장악형 패턴을 명확하게 보여줍니다.
반대 방향의 패턴이 나타날 때까지 라벨은 한 번만 표시됩니다.
개선된 정확도:
연속적인 캔들의 정보를 사용함으로써, 트렌드의 전환을 보다 보수적이고 정확하게 포착합니다.
이로 인해 기존의 장악형 캔들 패턴 대비 거짓 신호의 수가 줄어듭니다.
사용 방법:
상승 장악형 캔들 패턴이 표시되면, 이는 잠재적인 상승 트렌드의 시작을 나타냅니다.
반대로, 하락 장악형 캔들 패턴이 나타나면, 이는 잠재적인 하락 트렌드의 시작을 의미합니다.
주의사항:
이 지표만을 이용한 트레이딩에는 한계가 있을 수 있으므로 사용자는 본인의 트레이딩 전략과 결합하여 조심스럽게 사용해야 합니다. 모든 상승, 하락 장악형 패턴이 트렌드의 전환을 의미하지 않습니다.
결론:
확장 장악형 캔들 패턴 인디케이터는 기존의 장악형 캔들 패턴보다 더욱 신뢰할 수 있는 트렌드 전환 포인트를 식별할 수 있게 도와줍니다. 연속적인 캔들의 고점 및 저점을 식별함으로써 거짓 신호를 최소화하고, 트레이더들이 마켓의 움직임에 대해 보다 정확한 판단을 내릴 수 있게 합니다.
Bollinger RSI BandsIndicator Description:
The "Bollinger RSI Bands" is an advanced technical analysis tool designed to empower traders with comprehensive insights into market trends, reversals, and overbought/oversold conditions. This multifaceted indicator combines the unique features of candle coloration and Bollinger Bands with the Relative Strength Index (RSI), making it an indispensable tool for traders seeking to optimize their trading strategies.
Purpose:
The primary purpose of the "Bollinger RSI Bands" indicator is to provide traders with a holistic view of market dynamics by offering the following key functionalities:
Candle Coloration: The indicator's signature candle colors - green for bullish and red for bearish - serve as a visual representation of the prevailing market trend, enabling traders to quickly identify and confirm market direction.
RSI-Based Moving Average: A smoothed RSI-based moving average is plotted, facilitating the detection of trend changes and potential reversal points with greater clarity.
RSI Bands: Upper and lower RSI bands, set at 70 and 30, respectively, help traders pinpoint overbought and oversold conditions, aiding in timely entry and exit decisions.
Bollinger Bands: In addition to RSI bands, Bollinger Bands are overlaid on the RSI-based moving average, offering insights into price volatility and highlighting potential breakout opportunities.
How to Use:
To maximize the utility of the "Bollinger RSI Bands" indicator, traders can follow these essential steps:
Candle Color Confirmation: Assess the color of the candles. Green candles signify a bullish trend, while red candles indicate a bearish trend, providing a clear and intuitive visual confirmation of market direction.
Overbought and Oversold Identification: Monitor price levels relative to the upper RSI band (70) for potential overbought signals and below the lower RSI band (30) for potential oversold signals, allowing for timely adjustments to trading positions.
Trend Reversal Recognition: Observe changes in the direction of the RSI-based moving average. A transition from bearish to bullish, or vice versa, can serve as a valuable signal for potential trend reversals.
Volatility and Breakout Opportunities: Keep a watchful eye on the Bollinger Bands. Expanding bands signify increased price volatility, often signaling forthcoming breakout opportunities.
Why Use It:
The "Bollinger RSI Bands" indicator offers traders several compelling reasons to incorporate it into their trading strategies:
Clear Trend Confirmation: The indicator's distinct candle colors provide traders with immediate confirmation of the current trend direction, simplifying trend-following strategies.
Precise Entry and Exit Points: By identifying overbought and oversold conditions, traders can make more precise entries and exits, optimizing their risk-reward ratios.
Timely Trend Reversal Signals: Recognizing shifts in the RSI-based moving average direction allows traders to anticipate potential trend reversals and adapt their strategies accordingly.
Volatility Insights: Bollinger Bands offer valuable insights into price volatility, aiding in the identification of potential breakout opportunities.
User-Friendly and Versatile: Despite its advanced features, the indicator remains user-friendly and versatile, catering to traders of all experience levels.
In summary, the "Bollinger RSI Bands" indicator is an indispensable tool for traders seeking a comprehensive view of market dynamics. With its unique combination of candle coloration and Bollinger Bands, it empowers traders to make more informed and strategic trading decisions, ultimately enhancing their trading outcomes.
Note: Always utilize this indicator in conjunction with other technical and fundamental analysis tools and exercise prudence in your trading decisions. Past performance is not indicative of future results.
CCPD Candle Color Price DetectorThe "CCPD Candle Color Price Detector" is a custom indicator developed for TradingView, a popular platform for technical analysis and trading. This indicator assists traders in identifying potential trend reversals and assessing market sentiment based on candlestick color changes and key price levels.
This indicator operates as follows:
Color Change Detection: It primarily focuses on the color of candlesticks (green for bullish and red for bearish). When a candlestick closes higher than it opens, it is considered green (bullish), and when it closes lower, it is red (bearish).
High and Low Analysis: The indicator calculates the highest high and lowest low over a user-defined number of bars (specified by the 'Bars for High/Low' input parameter). This helps identify recent price extremes.
Midpoint Calculation: It then computes the midpoint between the highest high and lowest low, effectively determining a central reference point within the specified period.
Signal Generation: Buy and sell signals are generated based on the relationship between the current candlestick's close price, the midpoint, and the candlestick color. Buy signals occur when a green candle closes above the midpoint, suggesting potential bullish momentum. Conversely, sell signals trigger when a red candle closes below the midpoint, indicating possible bearish pressure.
Visualization: The indicator visualizes the highest high, lowest low, midpoint, and additional lines to aid in understanding the price action and potential reversal points.
Alerts: It provides alerts for buy and sell signals, allowing traders to receive notifications when potential trading opportunities arise.
Usage:
Traders can utilize the "CCPD Candle Color Price Detector" in the following ways:
Trend Reversal Identification: This indicator can help traders spot potential trend reversals by signaling when candlestick colors change and close near the midpoint. Buy and sell signals offer entry points for trades based on these reversals.
Confirmation Tool: It can be used in conjunction with other technical analysis tools to confirm trading decisions. For example, a buy signal from this indicator, coupled with a bullish trendline break or a bounce from a key support level, may provide a stronger bullish signal.
Risk Management: By understanding potential reversal points and using stop-loss orders, traders can better manage their risk and protect their capital when entering positions based on the indicator's signals.
Customization: The indicator allows users to adjust the number of bars for high/low calculations, making it adaptable to different trading strategies and timeframes.
In summary, the "CCPD Candle Color Price Detector" is a versatile indicator that can aid traders in spotting potential trend changes, enhancing trading decisions, and managing risk effectively. However, like any trading tool, it should be used in conjunction with other analysis methods and risk management strategies for optimal results.
Relative Trend Index (RTI) by Zeiierman█ Overview
The Relative Trend Index (RTI) developed by Zeiierman is an innovative technical analysis tool designed to measure the strength and direction of the market trend. Unlike some traditional indicators, the RTI boasts a distinctive ability to adapt and respond to market volatility, while still minimizing the effects of minor, short-term market fluctuations.
The Relative Trend Index blends trend-following and mean-reverting characteristics, paired with a customizable and intuitive approach to trend strength, and its sensitivity to price action makes this indicator stand out.
█ Benefits of using this RTI instead of RSI
The Relative Strength Index (RSI) and the Relative Trend Index (RTI) are both powerful technical indicators, each with its own unique strengths.
However, there are key differences that make the RTI arguably more sophisticated and precise, especially when it comes to identifying trends and overbought/oversold (OB/OS) areas.
The RSI is a momentum oscillator that measures the speed and change of price movements and is typically used to identify overbought and oversold conditions in a market. However, its primary limitation lies in its tendency to produce false signals during extended trending periods.
On the other hand, the RTI is designed specifically to identify and adapt to market trends. Instead of solely focusing on price changes, the RTI measures the relative positioning of the current closing price within its recent range, providing a more comprehensive view of market conditions.
The RTI's adaptable nature is particularly valuable. The user-adjustable sensitivity percentage allows traders to fine-tune the indicator's responsiveness, making it more resilient to sudden market fluctuations and noise that could otherwise produce false signals. This feature is advantageous in various market conditions, from trending to choppy and sideways-moving markets.
Furthermore, the RTI's unique method of defining OB/OS zones takes into account the prevailing trend, which can provide a more precise reflection of the market's condition.
While the RSI is an invaluable tool in many traders' toolkits, the RTI's unique approach to trend identification, adaptability, and enhanced definition of OB/OS zones can provide traders with a more nuanced understanding of market conditions and potential trading opportunities. This makes the RTI an especially powerful tool for those seeking to ride long-term trends and avoid false signals.
█ Calculations
In summary, while simple enough, the math behind the RTI indicator is quite powerful. It combines the quantification of price volatility with the flexibility to adjust the trend sensitivity. It provides a normalized output that can be interpreted consistently across various trading scenarios.
The math behind the Relative Trend Index (RTI) indicator is rooted in some fundamental statistical concepts: Standard Deviation and Percentiles.
Standard Deviation: The Standard Deviation is a measure of dispersion or variability in a dataset. It quantifies the degree to which each data point deviates from the mean (or average) of the data set. In this script, the standard deviation is computed on the 'close' prices over a specified number of periods. This provides a measure of the volatility in the price over that period. The higher the standard deviation, the more volatile the price has been.
Percentiles: The percentile is a measure used in statistics indicating the value below which a given percentage of observations in a group falls. After calculating the upper and lower trends for the last 'length' periods and sorting these values, the script uses the 'Sensitivity ' parameter to extract percentiles from these sorted arrays. This is a powerful concept because it allows us to adjust the sensitivity of our signals. By choosing different percentiles (controlled through the 'Sensitivity' parameter), we can decide whether we want to react only to extreme events (high percentiles) or be more reactive and consider smaller deviations from the norm as significant (lower percentiles).
Finally, the script calculates the Relative Trend Index value, which is essentially a normalized measure indicating where the current price falls between the upper and lower trend values. This simple ratio is incredibly powerful as it provides a standardized measure that can be used across different securities and market conditions to identify potential trading signals.
Core Components
Trend Data Count: This parameter denotes the number of data points used in the RTI's calculation, determining the trend length. A higher count captures a more extended market view (long-term trend), providing smoother results that are more resistant to sudden market changes. In contrast, a lower count focuses on more recent data (short-term trend), yielding faster responses to market changes, albeit at the cost of increased susceptibility to market noise.
Trend Sensitivity Percentage: This parameter is employed to select the indices within the trend arrays used for upper and lower trend definitions. By adjusting this value, users can affect the sensitivity of the trend, with higher percentages leading to a less sensitive trend.
█ How to use
The RTI plots a line that revolves around a mid-point of 50. When the RTI is above 50, it implies that the market trend is bullish (upward), and when it's below 50, it indicates a bearish (downward) trend. Furthermore, the farther the RTI deviates from the 50 line, the stronger the trend is perceived to be.
Bullish
Bearish
The RTI includes user-defined Overbought and Oversold levels. These thresholds suggest potential trading opportunities when they are crossed, serving as a cue for traders to possibly buy or sell. This gives the RTI an additional use case as a mean-reversion tool, in addition to being a trend-following indicator.
In short
Trend Confirmation and Reversals: If the percentage trend value is consistently closer to the upper level, it can indicate a strong uptrend. Similarly, if it's closer to the lower level, a downtrend may be in play. If the percentage trend line begins to move away from one trend line towards the other, it could suggest a potential trend reversal.
Identifying Overbought and Oversold Conditions: When the percentage trend value reaches the upper trend line (signified by a value of 1), it suggests an overbought condition - i.e., the price has been pushed up, perhaps too far, and could be due for a pullback, or indicating a strong positive trend. Conversely, when the percentage trend value hits the lower trend line (a value of 0), it indicates an oversold condition - the price may have been driven down and could be set to rebound, or indicate a strong negative trend. Traders often use these overbought and oversold signals as contrarian indicators, considering them potential signs to sell (in overbought conditions) or buy (in oversold conditions). If the RTI line remains overbought or oversold for an extended period, it indicates a strong trend in that direction.
█ Settings
One key feature of the RTI is its configurability. It allows users to set the trend data length and trend sensitivity.
The trend data length represents the number of data points used in the trend calculation. A longer trend data length will reflect a more long-term trend, whereas a shorter trend data length will capture short-term movements.
Trend sensitivity refers to the threshold for determining what constitutes a significant trend. High sensitivity levels will deem fewer price movements as significant, hence making the trend less sensitive. Conversely, low sensitivity levels will deem more price movements as significant, hence making the trend more sensitive.
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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!
Candlestick Strength and Weakness with RSI and OBVThe "Candlestick Strength and Weakness with RSI and OBV" indicator, denoted as CSW, is a tool designed to assist traders in identifying potential trend reversals in financial markets. The CSW indicator combines the analysis of candlestick patterns, relative strength index (RSI), and on-balance volume (OBV) to provide traders with valuable insights into market dynamics.
The CSW indicator calculates the strength and weakness of each candlestick based on its open, close, high, and low prices. It considers the body range, upper shadow range, and lower shadow range of the candlestick to determine the distribution of strength and weakness within it. By quantifying the candlestick's strength and weakness, the indicator provides a visual representation of the balance between bullish and bearish forces in the market.
In addition to candlestick analysis, the CSW indicator incorporates RSI and OBV calculations to further validate potential trend reversals. The RSI is a widely-used momentum oscillator that measures the speed and change of price movements. The OBV, on the other hand, tracks the cumulative volume flow and helps identify periods of accumulation or distribution. By considering these indicators alongside candlestick strength and weakness, the CSW indicator enhances the accuracy of its signals.
To interpret the CSW indicator effectively, traders should consider the following:
Candlestick Strength and Weakness: The indicator plots two lines, "Candle Strength" and "Candle Weakness," representing the strength and weakness of each candlestick. The strength line indicates the bullish pressure, while the weakness line represents the bearish pressure.
Potential Reversal Signals: The CSW indicator identifies potential trend reversals based on the balance between candlestick strength and weakness, RSI readings, and OBV values. A bullish reversal signal occurs when the strength is higher than weakness, the RSI is below 30 (indicating oversold conditions), and the OBV is below its 20-period simple moving average (SMA). Conversely, a bearish reversal signal occurs when the weakness is higher than strength, the RSI is above 70 (indicating overbought conditions), and the OBV is above its 20-period SMA.
Trend Confirmation: The CSW indicator provides additional confirmation by comparing the closing price with the 20-period exponential moving average (EMA). If the closing price is above the EMA, it suggests an uptrend, while a closing price below the EMA indicates a downtrend.
Traders can add the indicator to their charts and customize its parameters based on their preferences. By monitoring the indicator's plots and observing the occurrence of potential reversal signals in alignment with the trend confirmation, traders can make informed decisions regarding entry or exit points in their trading strategies.
Stochastic Chebyshev Smoothed With Zero Lag SmoothingFast and Smooth Stochastic Oscillator with Zero Lag
Introduction
In this post, we will discuss a custom implementation of a Stochastic Oscillator that not only smooths the signal but also does so without introducing any noticeable lag. This is a remarkable achievement, as it allows for a fast Stochastic Oscillator that is less prone to false signals without being slow and sluggish.
We will go through the code step by step, explaining the various functions and the overall structure of the code.
First, let's start with a brief overview of the Stochastic Oscillator and the problem it addresses.
Background
The Stochastic Oscillator is a momentum indicator used in technical analysis to determine potential overbought or oversold conditions in an asset's price. It compares the closing price of an asset to its price range over a specified period. However, the Stochastic Oscillator is susceptible to false signals due to its sensitivity to price movements. This is where our custom implementation comes in, offering a smoother signal without noticeable lag, thus reducing the number of false signals.
Despite its popularity and widespread use in technical analysis, the Stochastic Oscillator has its share of drawbacks. While it is a price scaler that allows for easier comparisons across different assets and timeframes, it is also known for generating false signals, which can lead to poor trading decisions. In this section, we will delve deeper into the limitations of the Stochastic Oscillator and discuss the challenges associated with smoothing to mitigate its drawbacks.
Limitations of the Stochastic Oscillator
False Signals: The primary issue with the Stochastic Oscillator is its tendency to produce false signals. Since it is a momentum indicator, it reacts to short-term price movements, which can lead to frequent overbought and oversold signals that do not necessarily indicate a trend reversal. This can result in traders entering or exiting positions prematurely, incurring losses or missing out on potential gains.
Sensitivity to Market Noise: The Stochastic Oscillator is highly sensitive to market noise, which can create erratic signals in volatile markets. This sensitivity can make it difficult for traders to discern between genuine trend reversals and temporary fluctuations.
Lack of Predictive Power: Although the Stochastic Oscillator can help identify potential overbought and oversold conditions, it does not provide any information about the future direction or strength of a trend. As a result, it is often used in conjunction with other technical analysis tools to improve its predictive power.
Challenges of Smoothing the Stochastic Oscillator
To address the limitations of the Stochastic Oscillator, many traders attempt to smooth the indicator by applying various techniques. However, these approaches are not without their own set of challenges:
Trade-off between Smoothing and Responsiveness: The process of smoothing the Stochastic Oscillator inherently involves reducing its sensitivity to price movements. While this can help eliminate false signals, it can also result in a less responsive indicator, which may not react quickly enough to genuine trend reversals. This trade-off can make it challenging to find the optimal balance between smoothing and responsiveness.
Increased Complexity: Smoothing techniques often involve the use of additional mathematical functions and algorithms, which can increase the complexity of the indicator. This can make it more difficult for traders to understand and interpret the signals generated by the smoothed Stochastic Oscillator.
Lagging Signals: Some smoothing methods, such as moving averages, can introduce a time lag into the Stochastic Oscillator's signals. This can result in late entry or exit points, potentially reducing the profitability of a trading strategy based on the smoothed indicator.
Overfitting: In an attempt to eliminate false signals, traders may over-optimize their smoothing parameters, resulting in a Stochastic Oscillator that is overfitted to historical data. This can lead to poor performance in real-time trading, as the overfitted indicator may not accurately reflect the dynamics of the current market.
In our custom implementation of the Stochastic Oscillator, we used a combination of Chebyshev Type I Moving Average and zero-lag Gaussian-weighted moving average filters to address the indicator's limitations while preserving its responsiveness. In this section, we will discuss the reasons behind selecting these specific filters and the advantages of using the Chebyshev filter for our purpose.
Filter Selection
Chebyshev Type I Moving Average: The Chebyshev filter was chosen for its ability to provide a smoother signal without sacrificing much responsiveness. This filter is designed to minimize the maximum error between the original and the filtered signal within a specific frequency range, effectively reducing noise while preserving the overall shape of the signal. The Chebyshev Type I Moving Average achieves this by allowing a specified amount of ripple in the passband, resulting in a more aggressive filter roll-off and better noise reduction compared to other filters, such as the Butterworth filter.
Zero-lag Gaussian-weighted Moving Average: To further improve the Stochastic Oscillator's performance without introducing noticeable lag, we used the zero-lag Gaussian-weighted moving average (GWMA) filter. This filter combines the benefits of a Gaussian-weighted moving average, which prioritizes recent data points by assigning them higher weights, with a zero-lag approach that minimizes the time delay in the filtered signal. The result is a smoother signal that is less prone to false signals and is more responsive than traditional moving average filters.
Advantages of the Chebyshev Filter
Effective Noise Reduction: The primary advantage of the Chebyshev filter is its ability to effectively reduce noise in the Stochastic Oscillator signal. By minimizing the maximum error within a specified frequency range, the Chebyshev filter suppresses short-term fluctuations that can lead to false signals while preserving the overall trend.
Customizable Ripple Factor: The Chebyshev Type I Moving Average allows for a customizable ripple factor, enabling traders to fine-tune the filter's aggressiveness in reducing noise. This flexibility allows for better adaptability to different market conditions and trading styles.
Responsiveness: Despite its effective noise reduction, the Chebyshev filter remains relatively responsive compared to other smoothing filters. This responsiveness allows for more accurate detection of genuine trend reversals, making it a suitable choice for our custom Stochastic Oscillator implementation.
Compatibility with Zero-lag Techniques: The Chebyshev filter can be effectively combined with zero-lag techniques, such as the Gaussian-weighted moving average filter used in our custom implementation. This combination results in a Stochastic Oscillator that is both smooth and responsive, with minimal lag.
Code Overview
The code begins with defining custom mathematical functions for hyperbolic sine, cosine, and their inverse functions. These functions will be used later in the code for smoothing purposes.
Next, the gaussian_weight function is defined, which calculates the Gaussian weight for a given 'k' and 'smooth_per'. The zero_lag_gwma function calculates the zero-lag moving average with Gaussian weights. This function is used to create a Gaussian-weighted moving average with minimal lag.
The chebyshevI function is an implementation of the Chebyshev Type I Moving Average, which is used for smoothing the Stochastic Oscillator. This function takes the source value (src), length of the moving average (len), and the ripple factor (ripple) as input parameters.
The main part of the code starts by defining input parameters for K and D smoothing and ripple values. The Stochastic Oscillator is calculated using the ta.stoch function with Chebyshev smoothed inputs for close, high, and low. The result is further smoothed using the zero-lag Gaussian-weighted moving average function (zero_lag_gwma).
Finally, the lag variable is calculated using the Chebyshev Type I Moving Average for the Stochastic Oscillator. The Stochastic Oscillator and the lag variable are plotted on the chart, along with upper and lower bands at 80 and 20 levels, respectively. A fill is added between the upper and lower bands for better visualization.
Conclusion
The custom Stochastic Oscillator presented in this blog post combines the Chebyshev Type I Moving Average and zero-lag Gaussian-weighted moving average filters to provide a smooth and responsive signal without introducing noticeable lag. This innovative implementation results in a fast Stochastic Oscillator that is less prone to false signals, making it a valuable tool for technical analysts and traders alike.
However, it is crucial to recognize that the Stochastic Oscillator, despite being a price scaler, has its limitations, primarily due to its propensity for generating false signals. While smoothing techniques, like the ones used in our custom implementation, can help mitigate these issues, they often introduce new challenges, such as reduced responsiveness, increased complexity, lagging signals, and the risk of overfitting.
The selection of the Chebyshev Type I Moving Average and zero-lag Gaussian-weighted moving average filters was driven by their combined ability to provide a smooth and responsive signal while minimizing false signals. The advantages of the Chebyshev filter, such as effective noise reduction, customizable ripple factor, and responsiveness, make it an excellent fit for addressing the limitations of the Stochastic Oscillator.
When using the Stochastic Oscillator, traders should be aware of these limitations and challenges, and consider incorporating other technical analysis tools and techniques to supplement the indicator's signals. This can help improve the overall accuracy and effectiveness of their trading strategies, reducing the risk of losses due to false signals and other limitations associated with the Stochastic Oscillator.
Feel free to use, modify, or improve upon this custom Stochastic Oscillator code in your trading strategies. We hope this detailed walkthrough of the custom Stochastic Oscillator, its limitations, challenges, and filter selection has provided you with valuable insights and a better understanding of how it works. Happy trading!
peacefulIndicatorsWe are delighted to present the PeacefulIndicators library, a modest yet powerful collection of custom technical indicators created to enhance your trading analysis. The library features an array of practical tools, including MACD with Dynamic Length, Stochastic RSI with ATR Stop Loss, Bollinger Bands with RSI Divergence, and more.
The PeacefulIndicators library offers the following functions:
macdDynamicLength: An adaptive version of the classic MACD indicator, which adjusts the lengths of the moving averages based on the dominant cycle period, providing a more responsive signal.
rsiDivergence: A unique implementation of RSI Divergence detection that identifies potential bullish and bearish divergences using a combination of RSI and linear regression.
trendReversalDetection: A helpful tool for detecting trend reversals using the Rate of Change (ROC) and Moving Averages, offering valuable insights into possible market shifts.
volume_flow_oscillator: A custom oscillator that combines price movement strength and volume to provide a unique perspective on market dynamics.
weighted_volatility_oscillator: Another custom oscillator that factors in price volatility and volume to deliver a comprehensive view of market fluctuations.
rvo: The Relative Volume Oscillator highlights changes in volume relative to historical averages, helping to identify potential breakouts or reversals.
acb: The Adaptive Channel Breakout indicator combines a moving average with an adjustable volatility multiplier to create dynamic channels, useful for identifying potential trend shifts.
We hope this library proves to be a valuable addition to your trading toolbox.
Library "peacefulIndicators"
A custom library of technical indicators for trading analysis, including MACD with Dynamic Length, Stochastic RSI with ATR Stop Loss, Bollinger Bands with RSI Divergence, and more.
macdDynamicLength(src, shortLen, longLen, signalLen, dynLow, dynHigh)
Moving Average Convergence Divergence with Dynamic Length
Parameters:
src (float) : Series to use
shortLen (int) : Shorter moving average length
longLen (int) : Longer moving average length
signalLen (int) : Signal line length
dynLow (int) : Lower bound for the dynamic length
dynHigh (int) : Upper bound for the dynamic length
Returns: tuple of MACD line and Signal line
Computes MACD using lengths adapted based on the dominant cycle period
rsiDivergence(src, rsiLen, divThreshold, linRegLength)
RSI Divergence Detection
Parameters:
src (float) : Series to use
rsiLen (simple int) : Length for RSI calculation
divThreshold (float) : Divergence threshold for RSI
linRegLength (int) : Length for linear regression calculation
Returns: tuple of RSI Divergence (positive, negative)
Computes RSI Divergence detection that identifies bullish (positive) and bearish (negative) divergences
trendReversalDetection(src, rocLength, maLength, maType)
Trend Reversal Detection (TRD)
Parameters:
src (float) : Series to use
rocLength (int) : Length for Rate of Change calculation
maLength (int) : Length for Moving Average calculation
maType (string) : Type of Moving Average to use (default: "sma")
Returns: A tuple containing trend reversal direction and the reversal point
Detects trend reversals using the Rate of Change (ROC) and Moving Averages.
volume_flow_oscillator(src, length)
Volume Flow Oscillator
Parameters:
src (float) : Series to use
length (int) : Period for the calculation
Returns: Custom Oscillator value
Computes the custom oscillator based on price movement strength and volume
weighted_volatility_oscillator(src, length)
Weighted Volatility Oscillator
Parameters:
src (float) : Series to use
length (int) : Period for the calculation
Returns: Custom Oscillator value
Computes the custom oscillator based on price volatility and volume
rvo(length)
Relative Volume Oscillator
Parameters:
length (int) : Period for the calculation
Returns: Custom Oscillator value
Computes the custom oscillator based on relative volume
acb(price_series, ma_length, vol_length, multiplier)
Adaptive Channel Breakout
Parameters:
price_series (float) : Price series to use
ma_length (int) : Period for the moving average calculation
vol_length (int) : Period for the volatility calculation
multiplier (float) : Multiplier for the volatility
Returns: Tuple containing the ACB upper and lower values and the trend direction (1 for uptrend, -1 for downtrend)
Divergence for Many Panel (D4MP+)Divergence for Many Panel (D4MP+)
This Divergence for Many Panel indicator is built upon the realtme divergence drawing code originally authored by LonesomeTheBlue, now in the form of a panel indicator.
The available oscillators, hand picked for their ability to identify high quality divergences currently include:
- Ultimate Oscillator (UO)
- True Strength Index (TSI)
- Money Flow Index (MFI)
- Relative Strength Index (RSI)
- Stochastic RSI
- Time Segmented Volume (TSV)
- Cumulative Delta Volume (CDV)
Note : this list of available oscillators may be added to or altered at a later date.
The indicator includes the following features:
- Ability to select any of the above oscillators
- Optional divergence lines drawn directly onto the oscillator in realtime .
- Configurable alerts to notify you when divergences occur.
- Configurable pivot lookback periods to fine tune the divergences drawn in order to suit different trading styles and timeframes, including the ability to enable automatic adjustment of pivot period per chart timeframe.
- Background colouring option to indicate when the selected oscillator has crossed above or below its centerline.
- Alternate timeframe feature allows you to configure the oscillator to use data from a different timeframe than the chart it is loaded on.
- Oscillator name label, so you can clearly see which oscillator is selected, in the case you have multiple loaded onto a chart.
- Optional adjustable range bands.
- Automatic adjustment of line colours, centerlines and range band levels on a per oscillator basis by default.
- Ability to customise the colours of each of the oscillators.
What is the Ultimate Oscillator ( UO )?
“The Ultimate Oscillator indicator (UO) indicator is a technical analysis tool used to measure momentum across three varying timeframes. The problem with many momentum oscillators is that after a rapid advance or decline in price, they can form false divergence trading signals. For example, after a rapid rise in price, a bearish divergence signal may present itself, however price continues to rise. The ultimate Oscillator attempts to correct this by using multiple timeframes in its calculation as opposed to just one timeframe which is what is used in most other momentum oscillators.”
What is the True Strength Index ( TSI )?
"The true strength index (TSI) is a technical momentum oscillator used to identify trends and reversals. The indicator may be useful for determining overbought and oversold conditions, indicating potential trend direction changes via centerline or signal line crossovers, and warning of trend weakness through divergence."
What is the Money Flow Index ( MFI )?
“The Money Flow Index ( MFI ) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100. Unlike conventional oscillators such as the Relative Strength Index ( RSI ), the Money Flow Index incorporates both price and volume data, as opposed to just price. For this reason, some analysts call MFI the volume-weighted RSI .”
What is the Relative Strength Index ( RSI )?
"The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI can do more than point to overbought and oversold securities. It can also indicate securities that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition. It is also commonly used to identify divergences."
What is the Stochastic RSI (StochRSI)?
"The Stochastic RSI (StochRSI) is an indicator used in technical analysis that ranges between zero and one (or zero and 100 on some charting platforms) and is created by applying the Stochastic oscillator formula to a set of relative strength index (RSI) values rather than to standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold. The StochRSI oscillator was developed to take advantage of both momentum indicators in order to create a more sensitive indicator that is attuned to a specific security's historical performance rather than a generalized analysis of price change."
What Is Time Segmented Volume?
"Time segmented volume (TSV) is a technical analysis indicator developed by Worden Brothers Inc. that segments a stock's price and volume according to specific time intervals. The price and volume data is then compared to uncover periods of accumulation (buying) and distribution (selling)."
What is Cumulative Volume Delta ( CDV )?
"The CDV analyses the net buying at market price and net selling at market price. This means, that volume delta is measuring whether it is the buyers or sellers that are more aggressive in taking the current market price. It measures the degree of intent by buyers and sellers, which can be used to indicate who is more dominant. The CDV can be used to help identify possible trends and also divergences"
What are divergences?
Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction.
There are 4 main types of divergence, which are split into 2 categories;
regular divergences and hidden divergences. Regular divergences indicate possible trend reversals, and hidden divergences indicate possible trend continuation.
Regular bullish divergence: An indication of a potential trend reversal, from the current downtrend, to an uptrend.
Regular bearish divergence: An indication of a potential trend reversal, from the current uptrend, to a downtrend.
Hidden bullish divergence: An indication of a potential uptrend continuation.
Hidden bearish divergence: An indication of a potential downtrend continuation.
Setting alerts.
With this indicator you can set alerts to notify you when any/all of the above types of divergences occur, on any chart timeframe you choose.
Configurable pivot periods.
You can adjust the default pivot periods to suit your prefered trading style and timeframe. If you like to trade a shorter time frame, lowering the default lookback values will make the divergences drawn more sensitive to short term price action.
How do traders use divergences in their trading?
A divergence is considered a leading indicator in technical analysis , meaning it has the ability to indicate a potential price move in the short term future.
Hidden bullish and hidden bearish divergences, which indicate a potential continuation of the current trend are sometimes considered a good place for traders to begin, since trend continuation occurs more frequently than reversals, or trend changes.
When trading regular bullish divergences and regular bearish divergences, which are indications of a trend reversal, the probability of it doing so may increase when these occur at a strong support or resistance level . A common mistake new traders make is to get into a regular divergence trade too early, assuming it will immediately reverse, but these can continue to form for some time before the trend eventually changes, by using forms of support or resistance as an added confluence, such as when price reaches a moving average, the success rate when trading these patterns may increase.
Typically, traders will manually draw lines across the swing highs and swing lows of both the price chart and the oscillator to see whether they appear to present a divergence, this indicator will draw them for you, quickly and clearly, and can notify you when they occur.
Disclaimer : This script includes code from several stock indicators by Tradingview as well as the Divergence for Many Indicators v4 by LonesomeTheBlue. With special thanks.
(JS) BallistaAlright so this is a script I made by combining two existing ones and making a really cool discovery that has proven very useful.
You'll notice that there are two separate oscillators that are laid on top of each other. The background oscillator is my "Tip-and-Dip" oscillator which you can see here (will refer to this as TnD from here), and the foreground oscillator from the Squeeze , which can be viewed here .
Initially I just wanted to see how they interacted with one another and compare them, but this led to some pretty interesting observations.
First let me go through the options real quick to get that out of the way, though it is mostly self-explanatory.
Lookback Period defines the amount of bars used for the TnD oscillator.
Smoothing Value smooths out the TnD output.
Standard Deviations is used to calculate the TnD formula.
Color Scheme is preset BG colors.
Using Dark Mode changes colors based on dark mode or not.
Squeeze Momentum On turns the Squeeze in the foreground off and on.
Arrows Off turns the arrows on the indicator off and on.
Now to explain the indicator a bit more. I have the default lookback period as 40 due to the Squeeze being 20, which makes the TnD oscillator the "slow" output with the Squeeze being the "fast" output.
Some initial observations were that when both the Squeeze and the TnD are moving in the direction, when the Squeeze is higher (uptrend) or lower (downtrend) it seems to indicate strength in the move. As the move loses steam you'll notice the Squeeze diverge from the TnD.
However, the most useful thing I discovered about the interaction between these two indicators is where the name for it came from. So if you aren't familiar with what a Ballista is, per Wikipedia, "The ballista... sometimes called bolt thrower, was an ancient missile weapon that launched either bolts or stones at a distant target." There are instances where the Squeeze seems to get ahead of itself and gets too far away from the TnD (which is the long term trend between the two). The key thing to look for is an "inverted squeeze" - this is when the squeeze oscillator ends up flipping against the TnD. When this occurs there is an extremely high probability that you'll see price shoot back the opposite way of the Squeeze.
I've been using this setup myself for about a year now and have been very satisfied with the results thusfar. I circled some examples on the SPX daily chart here to show you what I mean with the inverted Squeeze shooting back.
Dskyz (DAFE) Turning Point Indicator - Dskyz (DAFE) Turning Point Indicator — Smart Reversal Signals
Inspired by the intelligent logic of a pervious indicator I saw. This script represents a next-generation reversal detection system—completely re-engineered with cutting-edge filters, adaptive logic, and intelligent dashboards.
The Dskyz (DAFE) Turning Point Indicator
🧠 What Is It?
is designed to identify key market reversal zones with extraordinary accuracy by combining trend direction, volatility confirmation, price action patterns, and smart filtering layers—all visualized in a highly interactive and informative chart overlay.
This isn’t just a signal generator—it’s a decision-making assistant.
⚙️ Inputs & How to Use Them
All input fields are grouped for ease-of-use and explanation:
🔸 Reversal Logic Settings
Source: The price source used for signal generation (default: hlcc4). Can be changed to any standard price formula (open, close, hl2, etc.).
ATR Period: Used for determining volatility and dynamic trailing stop logic.
Supertrend Factor / Period: Calculates directional movement to detect trending vs choppy zones.
Reversal Sensitivity Thresholds: Internal logic filters minor pullbacks from true reversals.
🔸 Filters
Trend Filter: Enables trend-only signals (optional).
Volume Spike Filter: Confirms reversals with significant volume activity.
Volatility Zone Coloring: Visually highlights high-volatility areas to avoid late entries or fakeouts.
Custom High/Low Detection: Smart local top/bottom scanning to reinforce accuracy.
🔸 Visual & Dashboard Options
Signal Labels: Toggle signal labels on the chart.
Color Theme: Choose your visual theme for easier visibility.
Dashboard Toggle: Activate a compact dashboard summarizing strategy health (win rate, drawdown, trend state, volatility).
🧩 Functions Used
ta.supertrend(): Determines trend direction for signal confirmation and filtering.
ta.atr(): Calculates real-time volatility to determine trailing stop exits and visual zones.
ta.rsi() (internally optimized): Helps filter overbought/oversold conditions.
Local High/Low Scanner: Tracks recent pivots using a custom dynamic lookback.
Signal Engine: Consolidates multiple confirmation layers before plotting.
🚀 What Makes It Unique?
Unlike traditional reversal indicators, this one combines:
Multi-factor signal validation: No single indicator makes the call—volume, trend, price action, and volatility all contribute.
Adaptive filtering: The indicator evolves with the market—less noise, smarter signals.
Visual volatility heatmap zones: Avoid entering during uncertainty or manipulation spikes.
Interactive trend dashboard: Immediate insight into the strength and condition of the current market phase.
Highly customizable: Turn features on/off to match your trading style—scalping, swing, or trend-following.
Precision timing: Uses optimized versions of RSI and ATR that adjust automatically with price context.
🧬 Recommended for:
Commodity: Futures, Forex, Crypto
Timeframes: 1m to 1h for active traders. 4h+ for swing trades.
Pair With: Support/resistance zones, Fibonacci levels, and smart money concepts for additional confluence.
🎯 Why It Works
- Traditional reversal signals suffer from lag and noise. This system filters both by:
- Using multi-source confirmation, not just price movement.
-Tracking volatility directly, not assuming static markets.
-Detecting exhaustion, not just divergence.
-Keeping your screen clean, with only the most relevant data shown.
🧾 Credit & Acknowledgement
🧠 Original Concept Inspiration: This project was deeply inspired by the work of Enes_Yetkin_ and their approach to reversal detection. This version expands on the concept with additional technical layers, updated visuals, and real-time adaptability.
📌 Final Thoughts
This is more than a reversal tool. It's a market condition interpreter, entry/exit planner, and risk assistant all in one. Every aspect is engineered to give you an edge—especially when timing means everything.
Use it with discipline. Use it with clarity. Trade smarter.
**I will continue to release incredible strategies and indicators until I turn this into a brand or until someone offers me a contract.
-Dskyz
V Pattern TrendDESCRIPTION:
The V Pattern Trend Indicator is designed to identify and highlight V-shaped reversal patterns in price action. It detects both bullish and bearish V formations using a five-candle structure, helping traders recognize potential trend reversal points. The indicator filters out insignificant patterns by using customizable settings based on ATR, percentage, or points, ensuring that only meaningful V patterns are displayed.
CALCULATION METHOD
The user can choose how the minimum length of a V pattern is determined. The available options are:
- ATR (Average True Range) – Filters V patterns based on ATR, making the detection adaptive to market volatility.
- Percentage (%) – Considers V patterns where the absolute price difference between the V low and V high is greater than a user-defined percentage of the V high.
- Points – Uses a fixed number of points to filter valid V patterns, making it useful for assets with consistent price ranges.
ATR SETTINGS
- ATR Length – Defines the number of periods for ATR calculation.
- ATR Multiplier – Determines the minimum V length as a multiple of ATR.
PERCENTAGE THRESHOLD
- Sets a minimum percentage difference between the V high and V low for a pattern to be considered valid.
POINTS THRESHOLD
- Defines the minimum price movement (in points) required for a V pattern to be considered significant.
PATTERN VISUALIZATION
- A bullish V pattern is plotted using two upward-sloping lines, with a filled green region to highlight the formation.
- A bearish V pattern is plotted using two downward-sloping lines, with a filled red region to indicate the reversal.
- The indicator dynamically updates and marks only the most recent valid patterns.
UNDERSTANDING V PATTERNS
A V pattern is a sharp reversal formation where price moves strongly in one direction and then rapidly reverses in the opposite direction, forming a "V" shape on the chart.
BULLISH V PATTERN
- A bullish V pattern is formed when the price makes three consecutive lower lows, followed by two consecutive higher lows.
- The pattern is confirmed when the highest high of the formation is greater than the previous highs within the structure.
- This pattern suggests a potential trend reversal from bearish to bullish.
- The lowest point of the pattern represents the V low, which acts as a support level.
bull_five_candle_v = low > low and low > low and low > low and low > low
and high > math.max(high , high , high ) and high > math.max(high , high , high )
BEARISH V PATTERN
- A bearish V pattern is detected when the price makes three consecutive higher highs, followed by two consecutive lower highs.
- The pattern is confirmed when the lowest low of the formation is lower than the previous lows within the structure.
- This pattern signals a possible trend reversal from bullish to bearish.
- The highest point of the pattern represents the V high, which acts as a resistance level.
bear_five_candle_v = high < high and high < high and high < high and high < high
and low < math.min(low , low , low ) and low < math.min(low , low , low )
HOW THIS IS UNIQUE
- Advanced Filtering Mechanism – Unlike basic reversal indicators, this tool provides customizable filtering based on ATR, percentage, or points, ensuring that only significant V patterns are displayed.
- Enhanced Visual Clarity – The indicator uses color-coded fills and structured plotting to make reversal patterns easy to recognize.
- Works Across Market Conditions – Adaptable to different market environments, filtering out weak or insignificant price fluctuations.
- Multi-Timeframe Usability – Can be applied across different timeframes and asset classes, making it useful for both intraday and swing trading.
HOW TRADERS CAN USE THIS INDICATOR
- Identify potential trend reversals early based on structured price action.
- Filter out weak or insignificant reversals to focus only on strong V formations.
- Use the V pattern’s highs and lows as key support and resistance zones for trade entries and exits.
- Combine with other indicators like moving averages, trendlines, or momentum oscillators for confirmation.
EXPONOVA by @thejamiulEXPONOVA is an advanced EMA-based indicator designed to provide a visually intuitive and actionable representation of market trends. It combines two EMAs (Exponential Moving Averages) with a custom gradient fill to help traders identify trend reversals, strength, and the potential duration of trends.
This indicator uses a gradient color fill between two EMAs—one short-term (20-period) and one longer-term (55-period). The gradient dynamically adjusts based on the proximity and relationship of the closing price to the EMAs, giving traders a unique visual insight into trend momentum and potential exhaustion points.
Key Features:
Dynamic Gradient Fill:
The fill color between the EMAs changes based on the bar's position relative to the longer-term EMA.
A fading gradient visually conveys the strength and duration of the trend. The closer the closing price is to crossing the EMA, the stronger the gradient, making trends easy to spot.
Precision EMA Calculations:
The indicator plots two EMAs (20 and 55) without cluttering the chart, ensuring traders have a clean and informative display.
Ease of Use:
Designed for both novice and advanced traders, this tool is effective in identifying trend reversals and entry/exit points.
Trend Reversal Detection:
Built-in logic identifies bars since the last EMA cross, dynamically adjusting the gradient to signal potential trend changes.
How It Works:
This indicator calculates two EMAs:
EMA 20 (Fast EMA): Tracks short-term price movements, providing early signals of potential trend changes.
EMA 55 (Slow EMA): Captures broader trends and smoothens noise for a clearer directional bias.
The area between the two EMAs is filled with a dynamic color gradient, which evolves based on how far the price has moved above or below EMA 55. The gradient acts as a visual cue to the strength and duration of the current trend:
Bright green shades indicate bullish momentum building over time.
Red tones highlight bearish momentum.
The fading effect in the gradient provides traders with an intuitive representation of trend strength, helping them gauge whether the trend is accelerating, weakening, or reversing.
Gradient-Filled Region: Unique visualization to simplify trend analysis without cluttering the chart.
Dynamic Trend Strength Indication: The gradient dynamically adjusts based on the price's proximity to EMA 55, giving traders insight into momentum changes.
Minimalist Design: The EMAs themselves are not displayed by default to maintain a clean chart while still benefiting from their analysis.
Customizable Lengths: Pre-configured with EMA lengths of 20 and 55, but easily modifiable for different trading styles or instruments.
How to Use This Indicator
Trend Detection: Look at the gradient fill for visual confirmation of trend direction and strength.
Trade Entries:
Enter long positions when the price crosses above EMA 55, with the gradient transitioning to green.
Enter short positions when the price crosses below EMA 55, with the gradient transitioning to red.
Trend Strength Monitoring:
A brighter gradient suggests a sustained and stronger trend.
A fading gradient may indicate weakening momentum and a potential reversal.
Important Notes
This indicator uses a unique method of color visualization to enhance decision-making but does not generate buy or sell signals directly.
Always combine this indicator with other tools or methods for comprehensive analysis.
Past performance is not indicative of future results; please practice risk management while trading.
How to Use:
Trend Following:
Use the gradient fill to identify the trend direction.
A consistently bright gradient indicates a strong trend, while fading colors suggest weakening momentum.
Reversal Signals:
Watch for gradient changes near the EMA crossover points.
These can signal potential trend reversals or consolidation phases.
Confirmation Tool:
Combine EXPONOVA with other indicators or candlestick patterns for enhanced confirmation of trade setups.
[blackat] L1 Funding Bottom Wave█ OVERVIEW
The script "Funding Bottom Wave" is an indicator designed to analyze market conditions based on multiple smoothed price calculations and specific thresholds. It calculates several values such as B-value, VAR2-value, and additional signals like SK and SD to identify buy/sell levels and reversals, aiding traders in making informed decisions.
█ LOGICAL FRAMEWORK
The script consists of several main components:
• Input parameters that allow customization of calculation periods and thresholds.
• A custom function funding_wave that computes various financial metrics and conditions.
• Plotting commands to visualize different aspects of those computations.
Data flows from input parameters into the funding_wave function where calculations are performed. These results are then plotted according to specified conditions. The script uses conditional expressions to define when certain plots should appear based on the computed values.
█ CUSTOM FUNCTIONS
funding_wave Function:
This function takes six arguments: close_price, high_price, low_price, open_price, period_b, and period_var2. It performs several calculations including:
• Price range percentage normalized between lowest and highest prices over 60 bars.
• SMA of this value over periods defined by period_b and period_var2.
• Several moving averages (MA), EMAs, and extreme point markers (highest/lowest).
• Multiple condition checks involving these metrics leading to buy/high signal flags.
Returns: An array containing B-value, VAR2-value, SK-value, SD-value, along with various conditional signal indicators.
█ KEY POINTS AND TECHNIQUES
• Utilizes built-in TA functions (ta.highest, ta.lowest, ta.sma, ta.ema) for smoothing and normalization purposes.
• Implements extensive use of ternary operators and boolean logic to determine plot visibility based on specific criteria.
• Employs column-style plotting which highlights significant transitions in calculated metric levels visually.
• No explicit loops; computations utilize vectorized operations inherent to Pine Script's nature.
█ EXTENDED KNOWLEDGE AND APPLICATIONS
Potential modifications/extensions include:
• Adding alerts for key threshold crossovers or meeting certain conditions.
• Customizing more sophisticated alert messages incorporating current time and symbol details.
• Incorporating stop-loss/take-profit strategies dynamically adjusted by indicator outputs.
Similar techniques can be applied in:
• Developing robust trend-following systems combining momentum oscillators.
• Enhancing basic price action rulesets with statistical filters derived from historical data behaviors.
• Exploring intraday breakout strategies predicated upon sudden changes in market sentiment captured via volatility spikes.
Related concepts/features:
• Using arrays to encapsulate complex return structures for reusability across scripts/functions.
• Leveraging na effectively within plotting constructs ensures cleaner chart presentation avoiding clutter from irrelevant points.
█ MARKET MEANING OF DIFFERENT COLORED COLUMNS
Red Columns ("B above Var2"):
• Market Interpretation: When the red columns appear, it indicates that the B-value is higher than the VAR2-value. This suggests a strengthening upward trend or consolidation phase where the market might be experiencing buying pressure relative to recent trends.
• Trading Implication: Traders may consider this as a potentially bullish sign, indicating strength in the underlying asset.
Green Columns ("B below Var2"):
• Market Interpretation: Green columns indicate that the B-value is lower than the VAR2-value. This could suggest downward trend acceleration or weakening buying pressure compared to recent trends.
• Trading Implication: Traders might interpret this as a bearish signal, suggesting a possible decline in the market.
Aqua Columns ("SK below SD"):
• Market Interpretation: Aqua columns show instances where the SK-value is below the SD-value. This typically signifies that the short-term stochastic oscillator (or similar measure) is signaling oversold conditions but not yet reaching extremes.
• Trading Implication: While not necessarily a strong sell signal, aqua columns might prompt traders to look for further confirmation before entering long positions.
Fuchsia Columns ("SK above SD"):
• Market Interpretation: Fuchsia columns represent situations where the SK-value exceeds the SD-value. This usually indicates overbought conditions in the near term.
• Trading Implication: Traders often view fuchsia columns as cautionary signs, possibly prompting them to exit existing long positions or refrain from adding new ones without further analysis.
Yellow Columns ("High Condition" and "High Condition Both"):
• Market Interpretation: Yellow columns occur when either the SK-value or B-value crosses above predefined high thresholds (e.g., 90). If both cross simultaneously, they form "High Condition Both."
• Trading Implication: Strongly bullish signals indicating overheated markets prone to corrections. Traders may see this as a good opportunity to take profits or prepare for a pullback/corrective move.
Blue Columns ("Low Condition" and "Low Condition Both"):
• Market Interpretation: Blue columns emerge when either the SK-value or B-value drops below predefined low thresholds (e.g., 10). Simultaneous crossing forms "Low Condition Both."
• Trading Implication: Potentially bullish reversal setups once the market starts showing signs of bottoming out after being significantly oversold. Traders might use blue columns as entry points for establishing long positions or hedging against anticipated rebounds.
Light Purple Columns ("Low Condition with Reversal" and "Low Condition Both with Reversal"):
• Market Interpretation: Light purple columns signify moments when the SK-value or B-value falls below their respective thresholds but has started reversing upwards immediately afterward. If both fall and reverse together, it's denoted as "Low Condition Both with Reversal."
• Trading Implication: Suggests a possible early-stage rebound from an extended downtrend or sideways movement. This could be seen as a highly reliable bulls' flag formation setup.
White Columns ("High Condition with Reversal" and "High Condition Both with Reversal"):
• Market Interpretation: White columns denote scenarios where the SK-value or B-value breaches high thresholds (e.g., 90) but begins descending shortly thereafter. Both simultaneously crossing leads to "High Condition Both with Reversal."
• Trading Implication: Indicative of peak overbought conditions followed quickly by exhaustion in buying interest. This warns traders about potential imminent retracements or pullbacks, prompting exits or short positions.
█ SUMMARY TABLE OF COLUMN COLORS AND THEIR MEANINGS
Color Type Market Interpretation Trading Implication
Red B above Var2 Strengthening upward trend/consolidation Bullish sign
Green B below Var2 Downward trend acceleration/weakening buying pressure Bearish sign
Aqua SK below SD Oversold conditions but not extreme Cautionary signal
Fuchsia SK above SD Overbought conditions Take profit/precaution
Yellow High Condition / High Condition Both Overheated market, likely correction coming Good time to exit/additional selling
Blue Low Condition / Low Condition Both Possible bull/rebound setup Entry point/hedging
Light Purple Low Condition with Reversal / Low Condition Both with Reversal Early-stage rebound from downtrend Reliable bulls' flag formation
White High Condition with Reversal / High Condition Both with Reversal Peak overbought with imminent retracement Exit positions/warning
Understanding these color-coded signals can help traders make more informed decisions, whether for entry, exit, or risk management in trading strategies. Each set of colors provides distinct insights into market dynamics and trends, aiding in effective execution of trade plans.
Kernel Regression Envelope with SMI OscillatorThis script combines the predictive capabilities of the **Nadaraya-Watson estimator**, implemented by the esteemed jdehorty (credit to him for his excellent work on the `KernelFunctions` library and the original Nadaraya-Watson Envelope indicator), with the confirmation strength of the **Stochastic Momentum Index (SMI)** to create a dynamic trend reversal strategy. The core idea is to identify potential overbought and oversold conditions using the Nadaraya-Watson Envelope and then confirm these signals with the SMI before entering a trade.
**Understanding the Nadaraya-Watson Envelope:**
The Nadaraya-Watson estimator is a non-parametric regression technique that essentially calculates a weighted average of past price data to estimate the current underlying trend. Unlike simple moving averages that give equal weight to all past data within a defined period, the Nadaraya-Watson estimator uses a **kernel function** (in this case, the Rational Quadratic Kernel) to assign weights. The key parameters influencing this estimation are:
* **Lookback Window (h):** This determines how many historical bars are considered for the estimation. A larger window results in a smoother estimation, while a smaller window makes it more reactive to recent price changes.
* **Relative Weighting (alpha):** This parameter controls the influence of different time frames in the estimation. Lower values emphasize longer-term price action, while higher values make the estimator more sensitive to shorter-term movements.
* **Start Regression at Bar (x\_0):** This allows you to exclude the potentially volatile initial bars of a chart from the calculation, leading to a more stable estimation.
The script calculates the Nadaraya-Watson estimation for the closing price (`yhat_close`), as well as the highs (`yhat_high`) and lows (`yhat_low`). The `yhat_close` is then used as the central trend line.
**Dynamic Envelope Bands with ATR:**
To identify potential entry and exit points around the Nadaraya-Watson estimation, the script uses **Average True Range (ATR)** to create dynamic envelope bands. ATR measures the volatility of the price. By multiplying the ATR by different factors (`nearFactor` and `farFactor`), we create multiple bands:
* **Near Bands:** These are closer to the Nadaraya-Watson estimation and are intended to identify potential immediate overbought or oversold zones.
* **Far Bands:** These are further away and can act as potential take-profit or stop-loss levels, representing more extreme price extensions.
The script calculates both near and far upper and lower bands, as well as an average between the near and far bands. This provides a nuanced view of potential support and resistance levels around the estimated trend.
**Confirming Reversals with the Stochastic Momentum Index (SMI):**
While the Nadaraya-Watson Envelope identifies potential overextended conditions, the **Stochastic Momentum Index (SMI)** is used to confirm a potential trend reversal. The SMI, unlike a traditional stochastic oscillator, oscillates around a zero line. It measures the location of the current closing price relative to the median of the high/low range over a specified period.
The script calculates the SMI on a **higher timeframe** (defined by the "Timeframe" input) to gain a broader perspective on the market momentum. This helps to filter out potential whipsaws and false signals that might occur on the current chart's timeframe. The SMI calculation involves:
* **%K Length:** The lookback period for calculating the highest high and lowest low.
* **%D Length:** The period for smoothing the relative range.
* **EMA Length:** The period for smoothing the SMI itself.
The script uses a double EMA for smoothing within the SMI calculation for added smoothness.
**How the Indicators Work Together in the Strategy:**
The strategy enters a long position when:
1. The closing price crosses below the **near lower band** of the Nadaraya-Watson Envelope, suggesting a potential oversold condition.
2. The SMI crosses above its EMA, indicating positive momentum.
3. The SMI value is below -50, further supporting the oversold idea on the higher timeframe.
Conversely, the strategy enters a short position when:
1. The closing price crosses above the **near upper band** of the Nadaraya-Watson Envelope, suggesting a potential overbought condition.
2. The SMI crosses below its EMA, indicating negative momentum.
3. The SMI value is above 50, further supporting the overbought idea on the higher timeframe.
Trades are closed when the price crosses the **far band** in the opposite direction of the trade. A stop-loss is also implemented based on a fixed value.
**In essence:** The Nadaraya-Watson Envelope identifies areas where the price might be deviating significantly from its estimated trend. The SMI, calculated on a higher timeframe, then acts as a confirmation signal, suggesting that the momentum is shifting in the direction of a potential reversal. The ATR-based bands provide dynamic entry and exit points based on the current volatility.
**How to Use the Script:**
1. **Apply the script to your chart.**
2. **Adjust the "Kernel Settings":**
* **Lookback Window (h):** Experiment with different values to find the smoothness that best suits the asset and timeframe you are trading. Lower values make the envelope more reactive, while higher values make it smoother.
* **Relative Weighting (alpha):** Adjust to control the influence of different timeframes on the Nadaraya-Watson estimation.
* **Start Regression at Bar (x\_0):** Increase this value if you want to exclude the initial, potentially volatile, bars from the calculation.
* **Stoploss:** Set your desired stop-loss value.
3. **Adjust the "SMI" settings:**
* **%K Length, %D Length, EMA Length:** These parameters control the sensitivity and smoothness of the SMI. Experiment to find settings that work well for your trading style.
* **Timeframe:** Select the higher timeframe you want to use for SMI confirmation.
4. **Adjust the "ATR Length" and "Near/Far ATR Factor":** These settings control the width and sensitivity of the envelope bands. Smaller ATR lengths make the bands more reactive to recent volatility.
5. **Customize the "Color Settings"** to your preference.
6. **Observe the plots:**
* The **Nadaraya-Watson Estimation (yhat)** line represents the estimated underlying trend.
* The **near and far upper and lower bands** visualize potential overbought and oversold zones based on the ATR.
* The **fill areas** highlight the regions between the near and far bands.
7. **Look for entry signals:** A long entry is considered when the price touches or crosses below the lower near band and the SMI confirms upward momentum. A short entry is considered when the price touches or crosses above the upper near band and the SMI confirms downward momentum.
8. **Manage your trades:** The script provides exit signals when the price crosses the far band. The fixed stop-loss will also close trades if the price moves against your position.
**Justification for Combining Nadaraya-Watson Envelope and SMI:**
The combination of the Nadaraya-Watson Envelope and the SMI provides a more robust approach to identifying potential trend reversals compared to using either indicator in isolation. The Nadaraya-Watson Envelope excels at identifying potential areas where the price is overextended relative to its recent history. However, relying solely on the envelope can lead to false signals, especially in choppy or volatile markets. By incorporating the SMI as a confirmation tool, we add a momentum filter that helps to validate the potential reversals signaled by the envelope. The higher timeframe SMI further helps to filter out noise and focus on more significant shifts in momentum. The ATR-based bands add a dynamic element to the entry and exit points, adapting to the current market volatility. This mashup aims to leverage the strengths of each indicator to create a more reliable trading strategy.
Adaptive Price Zone Oscillator [QuantAlgo]Adaptive Price Zone Oscillator 🎯📊
The Adaptive Price Zone (APZ) Oscillator by QuantAlgo is an advanced technical indicator designed to identify market trends and reversals through adaptive price zones based on volatility-adjusted bands. This sophisticated system combines typical price analysis with dynamic volatility measurements to help traders and investors identify trend direction, potential reversals, and market volatility conditions. By evaluating both price action and volatility together, this tool enables users to make informed trading decisions while adapting to changing market conditions.
💫 Dynamic Zone Architecture
The APZ Oscillator provides a unique framework for assessing market trends through a blend of smoothed typical prices and volatility-based calculations. Unlike traditional oscillators that use fixed parameters, this system incorporates dynamic volatility measurements to adjust sensitivity automatically, helping users determine whether price movements are significant relative to current market conditions. By combining smoothed price trends with adaptive volatility zones, it evaluates both directional movement and market volatility, while the smoothing parameters ensure stable yet responsive signals. This adaptive approach allows users to identify trending conditions while remaining aware of volatility expansions and contractions, enhancing both trend-following and mean-reversion strategies.
📊 Indicator Components & Mechanics
The APZ Oscillator is composed of several technical components that create a dynamic trending system:
Typical Price: Utilizes HLC3 (High, Low, Close average) as a balanced price representation
Volatility Measurement: Computes exponential moving average of price changes to determine dynamic zones
Smoothed Calculations: Applies additional smoothing to reduce noise while maintaining responsiveness
Trend Detection: Evaluates price position relative to adaptive zones to determine market direction
📈 Key Indicators and Features
The APZ Oscillator utilizes typical price with customizable length and threshold parameters to adapt to different trading styles. Volatility calculations are applied to determine zone boundaries, providing context-aware levels for trend identification. The trend detection component evaluates price action relative to the adaptive zones, helping validate trends and identify potential reversals.
The indicator also incorporates multi-layered visualization with:
Color-coded trend representation (bullish/bearish)
Clear trend state indicators (+1/-1)
Mean reversion signals with distinct markers
Gradient fills for better visual clarity
Programmable alerts for trend changes
⚡️ Practical Applications and Examples
✅ Add the Indicator : Add the indicator to your TradingView chart by clicking on the star icon to add it to your favorites ⭐️
👀 Monitor Trend State : Watch the oscillator's position relative to the zero line to identify trend direction and potential reversals. The step-line visualization with diamonds makes trend changes clearly visible.
🎯 Track Signals : Pay attention to the mean reversion markers that appear above and below the price chart:
→ Upward triangles (⤻) signal potential bullish reversals
→ X crosses (↷) indicate potential bearish reversals
🔔 Set Alerts : Configure alerts for trend changes in both bullish and bearish directions, ensuring you can act on significant technical developments promptly.
🌟 Summary and Tips
The Adaptive Price Zone Oscillator by QuantAlgo is a versatile technical tool, designed to support both trend following and mean reversion strategies across different market environments. By combining smoothed typical price analysis with dynamic volatility-based zones, it helps traders and investors identify significant trend changes while measuring market volatility, providing reliable technical signals. The tool's adaptability through customizable length, threshold, and smoothing parameters makes it suitable for various trading timeframes and styles, allowing users to capture opportunities while maintaining awareness of changing market conditions.
Key parameters to optimize for your trading style:
APZ Length: Adjust for more or less sensitivity to price changes
Threshold: Fine-tune the volatility multiplier for wider or narrower zones
Smoothing: Balance noise reduction with signal responsiveness
EMA Volatility Channel [QuantAlgo]EMA Volatility Channel 🌊📈
The EMA Volatility Channel by QuantAlgo is an advanced technical indicator designed to capture price volatility and trend dynamics through adaptive channels based on exponential moving averages. This sophisticated system combines EMA-based trend analysis with dynamic volatility-adjusted bands to help traders and investors identify trend direction, potential reversals, and market volatility conditions. By evaluating both price momentum and volatility together, this tool enables users to make informed trading decisions while adapting to changing market conditions.
💫 Dynamic Channel Architecture
The EMA Volatility Channel provides a unique framework for assessing market trends through a blend of exponential moving averages and volatility-based channel calculations. Unlike traditional channel indicators that use fixed-width bands, this system incorporates dynamic volatility measurements to adjust channel width automatically, helping users determine whether price movements are significant relative to current market conditions. By combining smooth EMA trends with adaptive volatility bands, it evaluates both directional movement and market volatility, while the smoothing parameters ensure stable yet responsive channel adjustments. This adaptive approach allows users to identify trending conditions while remaining aware of volatility expansions and contractions, enhancing both trend-following and reversal strategies.
📊 Indicator Components & Mechanics
The EMA Volatility Channel is composed of several technical components that create a dynamic channel system:
EMA Midline: Calculates a smoothed exponential moving average that serves as the channel's centerline, providing a clear reference for trend direction.
Volatility Measurement: Computes average price movement to determine dynamic channel width, adapting to changing market conditions automatically.
Smooth Band Calculation: Applies additional smoothing to the channel bands, reducing noise while maintaining responsiveness to significant price movements.
📈 Key Indicators and Features
The EMA Volatility Channel combines various technical tools to deliver a comprehensive analysis of market conditions.
The indicator utilizes exponential moving averages with customizable length and smoothing parameters to adapt to different trading styles. Volatility calculations are applied to determine channel width, providing context-aware boundaries for price movement. The trend detection component evaluates price action relative to the channel bands, helping validate trends and identify potential reversals.
The indicator incorporates multi-layered visualization with color-coded channels and bars to signal both trend direction and market position. These adaptive visual cues, combined with programmable alerts for channel breakouts, help traders and investors track both trend changes and volatility conditions, supporting both trend-following and mean-reversion strategies.
⚡️ Practical Applications and Examples
✅ Add the Indicator: Add the indicator to your TradingView chart by clicking on the star icon to add it to your favorites ⭐️
👀 Monitor Channel Position: Watch the price position relative to the channel bands to identify trend direction and potential reversals. When price moves outside the channel, consider potential trend changes or extreme conditions.
🔔 Set Alerts: Configure alerts for channel breakouts and trend changes, ensuring you can act on significant technical developments promptly.
🌟 Summary and Tips
The EMA Volatility Channel by QuantAlgo is a versatile technical tool, designed to support both trend following and volatility analysis across different market environments. By combining smooth EMA trends with dynamic volatility-based channels, it helps traders and investors identify significant price movements while measuring market volatility, providing reliable technical signals. The tool's adaptability across timeframes makes it suitable for both trend-following and reversal strategies, allowing users to capture opportunities while maintaining awareness of changing market conditions.
Ultimate Multi Indicator - by SachaThe Ultimate Multi Indicator: The Ultimate Guide To Profit
This custom indicator, the Ultimate Multi Indicator , integrates multiple trading indicators to have powerful buy and sell signals. I combined MACD, EMA, RSI, Bollinger Bands, Volume Profile, and Ichimoku Cloud indicators to help traders analyze both short-term and long-term price movements.
Key Components and How to Use Them
- MACD (Moving Average Convergence Divergence):
- Use for trend direction and potentiality of reversals.
- The blue line (MACD Line) crossing above the orange line (Signal Line) indicates a bullish reversal; the opposite signals a bearish reversal.
- Watch for crossovers to confirm the direction of smaller price movements.
- 200 EMA (Long) (Exponential Moving Average):
- Use to indicate a long-term trend direction.
- If the price is above the 200 EMA, the market is in an uptrend; below it suggests a downtrend.
- The chart’s background color shifts subtly green (uptrend) or red (downtrend) depending on the EMA's relative position.
- RSI (Relative Strength Index):
- Tracks momentum and overbought/oversold levels.
- RSI over 70 signifies overbought conditions; under 30 indicates oversold.
- Look for RSI turning points around these levels to identify potential reversals.
- Bollinger Bands :
- The price touching or crossing the upper Bollinger Band may mean overbought conditions are filled, while a touch at the lower band indicates oversold.
- Bollinger Band interactions often align with key reversal points, especially when combined with other signals.
- Volume Profile :
- A yellow VP line on the chart represents significant trading volume occurred.
- This line can be used as both a support and resistance level, and especially during consolidations or trend changes.
- Ichimoku Cloud :
- Identifies support/resistance levels and trend direction.
- Green and red cloud regions visually show if the price is above (bullish) or below (bearish) key levels.
- Price above the cloud (green) confirms a bullish market, while below (red) signals bearish.
Signal Conditions and Visualization
- Buy Signals :
- This is triggered right away when MACD crosses up, RSI is oversold, or price touches the lower Bollinger Band, provided price is above both the Ichimoku Cloud and the 200 EMA.
- A green “BUY” label appears below the bar, suggesting a potential entry.
- Sell Signals :
- This signal is generated when MACD crosses down, RSI is overbought, or price touches the upper Bollinger Band, and price is below the Ichimoku Cloud and the 200 EMA.
- A red “SELL” label is shown above the bar, indicating a potential exit.
Tips & Tricks
- Confirm Signals : Use multiple signals to confirm entries and exits. For example, if both the MACD and RSI align with the Ichimoku Cloud direction, the trade setup is stronger.
- Trend Directions : Only take buy signals if the price is above the 200 EMA, and sell signals if it is below, aligning trades with the overall trend.
- Adjust for Volatility : In high-volatility markets, especially in the crypto markets, pay close attention to the Bollinger Bands for breakout potential.
- Ichimoku as a Trend Guide : Use the Ichimoku Cloud as a guide for long-term support and resistance levels, especially for swing trades.
This multi-layered indicator gives a balanced blend of short-term signals and long-term trend insights, making it a versatile tool for day trading, swing trading, or even longer-term analysis.
Remember that indicators that will make you rich instantly don't exist. To expect minimum profit from them, you shouldn't trade all you have at the same time but only trade with the money you can afford to lose.
After that being said, I wish you traders luck with the Ultimate Multi Indicator!
