Intramarket Difference Index StrategyHi Traders !!
The IDI Strategy:
In layman’s terms this strategy compares two indicators across markets and exploits their differences.
note: it is best the two markets are correlated as then we know we are trading a short to long term deviation from both markets' general trend with the assumption both markets will trend again sometime in the future thereby exhausting our trading opportunity.
📍 Import Notes:
This Strategy calculates trade position size independently (i.e. risk per trade is controlled in the user inputs tab), this means that the ‘Order size’ input in the ‘Properties’ tab will have no effect on the strategy. Why ? because this allows us to define custom position size algorithms which we can use to improve our risk management and equity growth over time. Here we have the option to have fixed quantity or fixed percentage of equity ATR (Average True Range) based stops in addition to the turtle trading position size algorithm.
‘Pyramiding’ does not work for this strategy’, similar to the order size input togeling this input will have no effect on the strategy as the strategy explicitly defines the maximum order size to be 1.
This strategy is not perfect, and as of writing of this post I have not traded this algo.
Always take your time to backtests and debug the strategy.
🔷 The IDI Strategy:
By default this strategy pulls data from your current TV chart and then compares it to the base market, be default BINANCE:BTCUSD . The strategy pulls SMA and RSI data from either market (we call this the difference data), standardizes the data (solving the different unit problem across markets) such that it is comparable and then differentiates the data, calling the result of this transformation and difference the Intramarket Difference (ID). The formula for the the ID is
ID = market1_diff_data - market2_diff_data (1)
Where
market(i)_diff_data = diff_data / ATR(j)_market(i)^0.5,
where i = {1, 2} and j = the natural numbers excluding 0
Formula (1) interpretation is the following
When ID > 0: this means the current market outperforms the base market
When ID = 0: Markets are at long run equilibrium
When ID < 0: this means the current market underperforms the base market
To form the strategy we define one of two strategy type’s which are Trend and Mean Revesion respectively.
🔸 Trend Case:
Given the ‘‘Strategy Type’’ is equal to TREND we define a threshold for which if the ID crosses over we go long and if the ID crosses under the negative of the threshold we go short.
The motivating idea is that the ID is an indicator of the two symbols being out of sync, and given we know volatility clustering, momentum and mean reversion of anomalies to be a stylised fact of financial data we can construct a trading premise. Let's first talk more about this premise.
For some markets (cryptocurrency markets - synthetic symbols in TV) the stylised fact of momentum is true, this means that higher momentum is followed by higher momentum, and given we know momentum to be a vector quantity (with magnitude and direction) this momentum can be both positive and negative i.e. when the ID crosses above some threshold we make an assumption it will continue in that direction for some time before executing back to its long run equilibrium of 0 which is a reasonable assumption to make if the market are correlated. For example for the BTCUSD - ETHUSD pair, if the ID > +threshold (inputs for MA and RSI based ID thresholds are found under the ‘‘INTRAMARKET DIFFERENCE INDEX’’ group’), ETHUSD outperforms BTCUSD, we assume the momentum to continue so we go long ETHUSD.
In the standard case we would exit the market when the IDI returns to its long run equilibrium of 0 (for the positive case the ID may return to 0 because ETH’s difference data may have decreased or BTC’s difference data may have increased). However in this strategy we will not define this as our exit condition, why ?
This is because we want to ‘‘let our winners run’’, to achieve this we define a trailing Donchian Channel stop loss (along with a fixed ATR based stop as our volatility proxy). If we were too use the 0 exit the strategy may print a buy signal (ID > +threshold in the simple case, market regimes may be used), return to 0 and then print another buy signal, and this process can loop may times, this high trade frequency means we fail capture the entire market move lowering our profit, furthermore on lower time frames this high trade frequencies mean we pay more transaction costs (due to price slippage, commission and big-ask spread) which means less profit.
By capturing the sum of many momentum moves we are essentially following the trend hence the trend following strategy type.
Here we also print the IDI (with default strategy settings with the MA difference type), we can see that by letting our winners run we may catch many valid momentum moves, that results in a larger final pnl that if we would otherwise exit based on the equilibrium condition(Valid trades are denoted by solid green and red arrows respectively and all other valid trades which occur within the original signal are light green and red small arrows).
another example...
Note: if you would like to plot the IDI separately copy and paste the following code in a new Pine Script indicator template.
indicator("IDI")
// INTRAMARKET INDEX
var string g_idi = "intramarket diffirence index"
ui_index_1 = input.symbol("BINANCE:BTCUSD", title = "Base market", group = g_idi)
// ui_index_2 = input.symbol("BINANCE:ETHUSD", title = "Quote Market", group = g_idi)
type = input.string("MA", title = "Differrencing Series", options = , group = g_idi)
ui_ma_lkb = input.int(24, title = "lookback of ma and volatility scaling constant", group = g_idi)
ui_rsi_lkb = input.int(14, title = "Lookback of RSI", group = g_idi)
ui_atr_lkb = input.int(300, title = "ATR lookback - Normalising value", group = g_idi)
ui_ma_threshold = input.float(5, title = "Threshold of Upward/Downward Trend (MA)", group = g_idi)
ui_rsi_threshold = input.float(20, title = "Threshold of Upward/Downward Trend (RSI)", group = g_idi)
//>>+----------------------------------------------------------------+}
// CUSTOM FUNCTIONS |
//<<+----------------------------------------------------------------+{
// construct UDT (User defined type) containing the IDI (Intramarket Difference Index) source values
// UDT will hold many variables / functions grouped under the UDT
type functions
float Close // close price
float ma // ma of symbol
float rsi // rsi of the asset
float atr // atr of the asset
// the security data
getUDTdata(symbol, malookback, rsilookback, atrlookback) =>
indexHighTF = barstate.isrealtime ? 1 : 0
= request.security(symbol, timeframe = timeframe.period,
expression = [close , // Instentiate UDT variables
ta.sma(close, malookback) ,
ta.rsi(close, rsilookback) ,
ta.atr(atrlookback) ])
data = functions.new(close_, ma_, rsi_, atr_)
data
// Intramerket Difference Index
idi(type, symbol1, malookback, rsilookback, atrlookback, mathreshold, rsithreshold) =>
threshold = float(na)
index1 = getUDTdata(symbol1, malookback, rsilookback, atrlookback)
index2 = getUDTdata(syminfo.tickerid, malookback, rsilookback, atrlookback)
// declare difference variables for both base and quote symbols, conditional on which difference type is selected
var diffindex1 = 0.0, var diffindex2 = 0.0,
// declare Intramarket Difference Index based on series type, note
// if > 0, index 2 outpreforms index 1, buy index 2 (momentum based) until equalibrium
// if < 0, index 2 underpreforms index 1, sell index 1 (momentum based) until equalibrium
// for idi to be valid both series must be stationary and normalised so both series hae he same scale
intramarket_difference = 0.0
if type == "MA"
threshold := mathreshold
diffindex1 := (index1.Close - index1.ma) / math.pow(index1.atr*malookback, 0.5)
diffindex2 := (index2.Close - index2.ma) / math.pow(index2.atr*malookback, 0.5)
intramarket_difference := diffindex2 - diffindex1
else if type == "RSI"
threshold := rsilookback
diffindex1 := index1.rsi
diffindex2 := index2.rsi
intramarket_difference := diffindex2 - diffindex1
//>>+----------------------------------------------------------------+}
// STRATEGY FUNCTIONS CALLS |
//<<+----------------------------------------------------------------+{
// plot the intramarket difference
= idi(type,
ui_index_1,
ui_ma_lkb,
ui_rsi_lkb,
ui_atr_lkb,
ui_ma_threshold,
ui_rsi_threshold)
//>>+----------------------------------------------------------------+}
plot(intramarket_difference, color = color.orange)
hline(type == "MA" ? ui_ma_threshold : ui_rsi_threshold, color = color.green)
hline(type == "MA" ? -ui_ma_threshold : -ui_rsi_threshold, color = color.red)
hline(0)
Note it is possible that after printing a buy the strategy then prints many sell signals before returning to a buy, which again has the same implication (less profit. Potentially because we exit early only for price to continue upwards hence missing the larger "trend"). The image below showcases this cenario and again, by allowing our winner to run we may capture more profit (theoretically).
This should be clear...
🔸 Mean Reversion Case:
We stated prior that mean reversion of anomalies is an standerdies fact of financial data, how can we exploit this ?
We exploit this by normalizing the ID by applying the Ehlers fisher transformation. The transformed data is then assumed to be approximately normally distributed. To form the strategy we employ the same logic as for the z score, if the FT normalized ID > 2.5 (< -2.5) we buy (short). Our exit conditions remain unchanged (fixed ATR stop and trailing Donchian Trailing stop)
🔷 Position Sizing:
If ‘‘Fixed Risk From Initial Balance’’ is toggled true this means we risk a fixed percentage of our initial balance, if false we risk a fixed percentage of our equity (current balance).
Note we also employ a volatility adjusted position sizing formula, the turtle training method which is defined as follows.
Turtle position size = (1/ r * ATR * DV) * C
Where,
r = risk factor coefficient (default is 20)
ATR(j) = risk proxy, over j times steps
DV = Dollar Volatility, where DV = (1/Asset Price) * Capital at Risk
🔷 Risk Management:
Correct money management means we can limit risk and increase reward (theoretically). Here we employ
Max loss and gain per day
Max loss per trade
Max number of consecutive losing trades until trade skip
To read more see the tooltips (info circle).
🔷 Take Profit:
By defualt the script uses a Donchain Channel as a trailing stop and take profit, In addition to this the script defines a fixed ATR stop losses (by defualt, this covers cases where the DC range may be to wide making a fixed ATR stop usefull), ATR take profits however are defined but optional.
ATR SL and TP defined for all trades
🔷 Hurst Regime (Regime Filter):
The Hurst Exponent (H) aims to segment the market into three different states, Trending (H > 0.5), Random Geometric Brownian Motion (H = 0.5) and Mean Reverting / Contrarian (H < 0.5). In my interpretation this can be used as a trend filter that eliminates market noise.
We utilize the trending and mean reverting based states, as extra conditions required for valid trades for both strategy types respectively, in the process increasing our trade entry quality.
🔷 Example model Architecture:
Here is an example of one configuration of this strategy, combining all aspects discussed in this post.
Future Updates
- Automation integration (next update)
Cari dalam skrip untuk "stop loss"
False Breakouts [TradingFinder] Fake Breakouts Failure🔵 Introduction
Technical indicators are essential tools for analysts and traders in financial markets, helping them predict price movements and make better trading decisions. One of the key concepts in technical analysis that should be carefully considered is the "False Breakout."
This phenomenon occurs when a price temporarily breaks through a significant support or resistance level but fails to hold and quickly returns to its previous range. Understanding this concept and applying it in trading can reduce risks and increase profitability.
🟣 What is a False Breakout?
A Fake Breakout, as the name suggests, refers to a breakout that appears to occur but fails to sustain, leading the price to quickly revert back to its previous range. This situation often happens when inexperienced or non-professional traders, under psychological pressure and eager to enter the market quickly, initiate trades.
This creates opportunities for professional traders to take advantage of these short-term fluctuations and execute successful trades.
🟣 The Importance of Recognizing False Breakouts
Recognizing False Breakouts is crucial for any trader aiming for success in financial markets. False Breakouts typically occur when the market approaches a critical support or resistance level.
In these situations, many traders are waiting to see if the price will break through this level. However, when the price quickly returns to its previous range, it indicates weakness in the movement and the inability to sustain the breakout.
🟣 How to identify False Breakouts?
To identify Fake Breakouts, it is important to carefully analyze price charts and look for signs of a quick price reversal after breaking a key level.
Here are some chart patterns that may help you identify a False Breakout :
1. Pin Bar Pattern : The Pin Bar is a candlestick pattern that indicates a price reversal. This pattern usually appears near support and resistance levels, showing that the price attempted to break through a key level but failed and reversed.
2. Fakey Pattern : This pattern, which consists of several candlesticks, indicates a False Breakout and a quick price return to the previous range. It usually appears near key levels and can signal a trend reversal.
3. Using Multiple Timeframes : One way to identify False Breakouts is by using charts of different timeframes. Sometimes, a breakout on a one-hour chart may be a False Breakout on a daily chart. Analyzing charts across multiple timeframes can help you accurately identify this phenomenon.
🔵 How to Use
Once you identify a False Breakout, you can use it as a trading signal. For this, it is best to look for trading opportunities in the opposite direction of the False Breakout. In other words, if a False Breakout occurs at a resistance level, you might consider selling opportunities, and if it happens at a support level, you might look for buying opportunities.
Here are some key points for trading based on False Breakouts :
1. Patience and Discipline : Patience and discipline are crucial when trading with False Breakouts. Wait for the False Breakout to clearly form before entering a trade.
2. Use Stop Loss : Setting an appropriate stop loss is vital when trading based on False Breakouts. Typically, the stop loss can be placed near the level where the False Breakout occurred.
3. Seek Confirmations : Before entering a trade, look for additional confirmations. These can include other analyses or technical indicators that show the price is likely to return to its previous level.
🔵 Settings
🟣 Logical settings
Swing period : You can set the swing detection period.
Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine.
Max Swing Bac k: You can set the number of swings that will go back for checking.
🟣 Display settings
Displaying or not displaying swings and setting the color of labels and lines.
🟣 Alert Settings
Alert False Breakout : Enables alerts for Breakout.
Message Frequency : Determines the frequency of alerts. Options include 'All' (every function call), 'Once Per Bar' (first call within the bar), and 'Once Per Bar Close' (final script execution of the real-time bar). Default is 'Once per Bar'.
Show Alert Time by Time Zone : Configures the time zone for alert messages. Default is 'UTC'.
🔵Conclusion
False Breakouts, as a key concept in technical analysis, are powerful tools for identifying sudden price changes and using them in trading. Understanding this phenomenon and applying it can help traders perform better in financial markets and avoid potential losses.
To benefit from False Breakouts, traders need to carefully analyze charts and use the appropriate analytical tools. By leveraging this strategy, traders can achieve lower-risk and higher-reward trades.
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.
Multi-Factor StrategyThis trading strategy combines multiple technical indicators to create a systematic approach for entering and exiting trades. The goal is to capture trends by aligning several key indicators to confirm the direction and strength of a potential trade. Below is a detailed description of how the strategy works:
Indicators Used
MACD (Moving Average Convergence Divergence):
MACD Line: The difference between the 12-period and 26-period Exponential Moving Averages (EMAs).
Signal Line: A 9-period EMA of the MACD line.
Usage: The strategy looks for crossovers between the MACD line and the Signal line as entry signals. A bullish crossover (MACD line crossing above the Signal line) indicates a potential upward movement, while a bearish crossover (MACD line crossing below the Signal line) signals a potential downward movement.
RSI (Relative Strength Index):
Usage: RSI is used to gauge the momentum of the price movement. The strategy uses specific thresholds: below 70 for long positions to avoid overbought conditions and above 30 for short positions to avoid oversold conditions.
ATR (Average True Range):
Usage: ATR measures market volatility and is used to set dynamic stop-loss and take-profit levels. A stop loss is set at 2 times the ATR, and a take profit at 3 times the ATR, ensuring that risk is managed relative to market conditions.
Simple Moving Averages (SMA):
50-day SMA: A short-term trend indicator.
200-day SMA: A long-term trend indicator.
Usage: The strategy uses the relationship between the 50-day and 200-day SMAs to determine the overall market trend. Long positions are taken when the price is above the 50-day SMA and the 50-day SMA is above the 200-day SMA, indicating an uptrend. Conversely, short positions are taken when the price is below the 50-day SMA and the 50-day SMA is below the 200-day SMA, indicating a downtrend.
Entry Conditions
Long Position:
-MACD Crossover: The MACD line crosses above the Signal line.
-RSI Confirmation: RSI is below 70, ensuring the asset is not overbought.
-SMA Confirmation: The price is above the 50-day SMA, and the 50-day SMA is above the 200-day SMA, indicating a strong uptrend.
Short Position:
MACD Crossunder: The MACD line crosses below the Signal line.
RSI Confirmation: RSI is above 30, ensuring the asset is not oversold.
SMA Confirmation: The price is below the 50-day SMA, and the 50-day SMA is below the 200-day SMA, indicating a strong downtrend.
Opposite conditions for shorts
Exit Strategy
Stop Loss: Set at 2 times the ATR from the entry price. This dynamically adjusts to market volatility, allowing for wider stops in volatile markets and tighter stops in calmer markets.
Take Profit: Set at 3 times the ATR from the entry price. This ensures a favorable risk-reward ratio of 1:1.5, aiming for higher rewards on successful trades.
Visualization
SMAs: The 50-day and 200-day SMAs are plotted on the chart to visualize the trend direction.
MACD Crossovers: Bullish and bearish MACD crossovers are highlighted on the chart to identify potential entry points.
Summary
This strategy is designed to align multiple indicators to increase the probability of successful trades by confirming trends and momentum before entering a position. It systematically manages risk with ATR-based stop loss and take profit levels, ensuring that trades are exited based on market conditions rather than arbitrary points. The combination of trend indicators (SMAs) with momentum and volatility indicators (MACD, RSI, ATR) creates a robust approach to trading in various market environments.
Zero-lag TEMA Crosses Strategy[Pakun]Here's the adjusted strategy description in English, aligned with the house rules:
---
### Strategy Name: Zero-lag TEMA Cross Strategy
**Purpose:** This strategy aims to identify entry and exit points in the market using Zero-lag Triple Exponential Moving Averages (TEMA). It focuses on minimizing lag and improving the accuracy of trend-following signals.
### Uniqueness and Usefulness
**Uniqueness:** This strategy employs the less commonly used Zero-lag TEMA, compared to standard moving averages. This unique approach reduces lag and provides more timely signals.
**Usefulness:** This strategy is valuable for traders looking to capture trend reversals or continuations with reduced lag. It has the potential to enhance the profitability and accuracy of trades.
### Entry Conditions
**Long Entry:**
- **Condition:** A crossover occurs where the short-term Zero-lag TEMA surpasses the long-term Zero-lag TEMA.
- **Signal:** A buy signal is generated, indicating a potential uptrend.
**Short Entry:**
- **Condition:** A crossunder occurs where the short-term Zero-lag TEMA falls below the long-term Zero-lag TEMA.
- **Signal:** A sell signal is generated, indicating a potential downtrend.
### Exit Conditions
**Exit Strategy:**
- **Stop Loss:** Positions are closed if the price moves against the trade and hits the predefined stop loss level. The stop loss is set based on recent highs/lows.
- **Take Profit:** Positions are closed when the price reaches the profit target. The profit target is calculated as 1.5 times the distance between the entry price and the stop loss level.
### Risk Management
**Risk Management Rules:**
- This strategy incorporates a dynamic stop loss mechanism based on recent highs/lows over a specified period.
- The take profit level ensures a reward-to-risk ratio of 1.5 times the stop loss distance.
- These measures aim to manage risk and protect capital.
**Account Size:** ¥500,000
**Commissions and Slippage:** 94 pips per trade and 1 pip slippage
**Risk per Trade:** 1% of account equity
### Configurable Options
**Configurable Options:**
- Lookback Period: The number of bars to calculate recent highs/lows.
- Fast Period: Length of the short-term Zero-lag TEMA (69).
- Slow Period: Length of the long-term Zero-lag TEMA (130).
- Signal Display: Option to display buy/sell signals on the chart.
- Bar Color: Option to change bar colors based on trend direction.
### Adequate Sample Size
**Sample Size Justification:**
- To ensure the robustness and reliability of the strategy, it should be tested with a sufficiently long period of historical data.
- It is recommended to backtest across multiple market cycles to adapt to different market conditions.
- This strategy was backtested using 10 days of historical data, including 184 trades.
### Notes
**Additional Considerations:**
- This strategy is designed for educational purposes and should be thoroughly tested in a demo environment before live trading.
- Settings should be adjusted based on the asset being traded and current market conditions.
### Credits
**Acknowledgments:**
- The concept and implementation of Zero-lag TEMA are based on contributions from technical analysts and the trading community.
- Special thanks to John Doe for the TEMA concept.
- Thanks to Zero-lag TEMA Crosses .
- This strategy has been enhanced by adding new filtering algorithms and risk management rules to the original TEMA code.
### Clean Chart Description
**Chart Appearance:**
- This strategy provides a clean and informative chart by plotting Zero-lag TEMA lines and optional entry/exit signals.
- The display of signals and color bars can be toggled to declutter the chart, improving readability and analysis.
Improved Volume Based Indicator# Improved Volume Based Indicator
## Overview
The Improved Volume Based Indicator is a technical analysis tool designed to identify potential trading opportunities based on volume patterns, price action, and trend direction. This indicator combines volume analysis with moving averages and the Average True Range (ATR) to generate buy and sell signals.
## Key Components
1. Volume Analysis
- Tracks consecutive volume direction (up or down) for 3 periods
- Calculates volume ratio compared to a short-term moving average
2. Trend Direction
- Uses a 200-period Exponential Moving Average (EMA) to determine overall trend
3. Volatility Measurement
- Incorporates the Average True Range (ATR) for stop-loss and take-profit calculations
## Signal Generation
### Buy Signal Criteria
1. Three consecutive periods of up volume (close > open)
2. Volume ratio > 1.5 (current volume is 50% higher than the short-term average)
3. Current price is above the 200 EMA
### Sell Signal Criteria
1. Three consecutive periods of down volume (close < open)
2. Volume ratio > 1.5 (current volume is 50% higher than the short-term average)
3. Current price is below the 200 EMA
## Risk Management
The indicator calculates stop-loss and take-profit levels based on the ATR:
- Stop Loss: ATR * 1.5 (default)
- Take Profit: ATR * 2.5 (default)
These levels are adjustable through input parameters.
## Usage
1. Add the indicator to your chart
2. Adjust input parameters as needed:
- Volume Period (2-5)
- ATR Period (default 14)
- ATR Multipliers for Stop Loss and Take Profit
- EMA Period (default 200)
3. Monitor for buy and sell signals
4. Use the provided stop-loss and take-profit levels for risk management
## Interpretation
- Buy signals suggest potential upward price movement
- Sell signals suggest potential downward price movement
- Always consider other factors and perform additional analysis before making trading decisions
## Limitations
- This indicator may generate false signals in choppy or ranging markets
- It's best used in conjunction with other technical analysis tools and fundamental analysis
- Past performance does not guarantee future results
Remember to thoroughly test this indicator on historical data and in various market conditions before using it in live trading.
---
# 改進的基於交易量的指標
＃＃ 概述
改進的基於成交量的指標是一種技術分析工具，旨在根據成交量模式、價格行為和趨勢方向識別潛在的交易機會。此指標將成交量分析與移動平均線和平均真實波動幅度 (ATR) 結合起來，以產生買入和賣出訊號。
＃＃ 關鍵部件
1. 成交量分析
- 追蹤 3 個週期的連續成交量方向（向上或向下）
- 計算與短期移動平均線相比的成交量比率
2. 趨勢方向
- 使用 200 週期指數移動平均線 (EMA) 來確定整體趨勢
3. 波動率測量
- 納入平均真實波動範圍 (ATR) 以進行停損和停盈計算
## 訊號生成
### 購買訊號標準
1. 連續三個週期的成交量上漲（收盤>開盤）
2.成交量比率>1.5（目前成交量較短期平均高50%）
3. 當前價格高於200 EMA
### 賣出訊號標準
1.連續三個週期的成交量下跌（收盤<開盤）
2.成交量比率>1.5（目前成交量較短期平均高50%）
3. 目前價格低於200 EMA
＃＃ 風險管理
此指標根據 ATR 計算停損和止盈水準：
- 停損：ATR * 1.5（預設）
- 止盈：ATR * 2.5（預設）
這些等級可透過輸入參數進行調整。
＃＃ 用法
1. 將指標加入您的圖表中
2. 根據需要調整輸入參數：
- 卷期 (2-5)
- ATR 週期（預設 14）
- 用於停損和止盈的 ATR 乘數
- EMA 週期（預設 200）
3. 監控買賣訊號
4. 使用提供的停損和停利水準進行風險管理
＃＃ 解釋
- 買進訊號表示價格可能上漲
- 賣出訊號表示價格可能下跌
- 在做出交易決策之前始終考慮其他因素並進行額外分析
## 限制
- 此指標可能會在波動或波動的市場中產生錯誤訊號
- 最好與其他技術分析工具和基本面分析結合使用
- 過去的表現並不能保證未來的結果
請記住，在實際交易中使用該指標之前，請根據歷史數據和各種市場條件徹底測試該指標。
Scalping System by Machine# Custom Trading System Indicator
This Pine Script indicator is designed to identify potential trading setups based on a specific set of rules. It's intended for use on lower timeframes (M1-M5) in the forex market, particularly during the New York-London overlap period.
## Key Features
1. **EMA Condition**: Uses a 20-period Exponential Moving Average (EMA) to determine trend direction.
2. **Candle Analysis**: Identifies strong bars and candle color changes.
3. **Volume Confirmation**: Checks for increasing volume.
4. **Volatility Filter**: Utilizes the Average True Range (ATR) to gauge market volatility.
5. **Time-based Filter**: Highlights the New York-London overlap period.
6. **Visual Aids**: Plots potential entry points, stop losses, and take profit levels.
## Trading Rules
1. **Buy Signal**:
- Price is above the 20 EMA
- Candle color changes from red to green
- Current candle is a strong bar (closing within 75% of its range)
- Volume is higher than the previous bar
- ATR(14) is above 4 pips OR it's during the NY-London overlap
2. **Sell Signal**:
- Price is below the 20 EMA
- Candle color changes from green to red
- Current candle is a strong bar (closing within 75% of its range)
- Volume is higher than the previous bar
- ATR(14) is above 4 pips OR it's during the NY-London overlap
3. **Stop Loss**: Placed near the low of the setup candle for buys, or near the high for sells.
4. **Take Profit**: Aimed at 1R (one times the range of the setup candle).
## Visual Elements
- **20 EMA**: Plotted as a blue line on the chart.
- **Buy Signals**: Green triangles below the candles.
- **Sell Signals**: Red triangles above the candles.
- **Stop Loss Levels**: Small red dots at the calculated stop loss prices.
- **Take Profit Levels**: Small green dots at the calculated take profit prices.
- **Information Table**: Displays current values for ATR, strong bar condition and volume condition.
## Usage Notes
1. This indicator is designed for manual trading, not automated execution.
2. It works best when combined with analysis of major trend lines, support, and resistance levels.
3. Exercise caution with very large setup candles.
4. Consider additional filters or money management rules for enhanced performance.
5. For higher timeframe bias validation, consider incorporating a 100-period break of structure (BOS) analysis.
## Customization
The indicator includes several input parameters that can be adjusted:
- EMA Length
- ATR Length and Threshold
- Volume Multiplier
- Strong Bar Percentage
Users can also toggle the visibility of stop loss and take profit markers.
Remember, while this indicator can identify potential setups, it should be used in conjunction with other forms of analysis and risk management strategies. Always consider the overall market context and your personal risk tolerance when making trading decisions.
MAC Investor V3.0 [VK]This indicator combines multiple functionalities to assist traders in making informed decisions. It primarily uses Heikin Ashi candles, Moving Averages, and a Price Action Channel (PAC) to provide signals for entering and exiting trades. Here's a detailed breakdown:
Inputs
MAC Length: Sets the length for the PAC calculation.
Use Heikin Ashi Candles: Option to use Heikin Ashi candles for calculations.
Show Coloured Bars around MAC: Option to color bars based on their relation to the PAC.
Show Long/Short Signals: Options to display long and short signals.
Show MAs? : Option to show moving averages on the chart.
Show MAs Trend at the Bottom?: Option to show trend signals at the bottom of the chart.
MA Lengths: Length settings for three different moving averages.
Change MA Color Based on Direction?: Option to change the color of moving averages based on trend direction.
MA Higher TimeFrame: Allows setting a higher timeframe for moving averages.
Show SL-TP Lines: Option to display Stop Loss and Take Profit lines.
SL/TP Percentages: Set the percentages for Stop Loss and three levels of Take Profit.
Calculations and Features
Heikin Ashi Candles: Calculations are based on Heikin Ashi candle data if selected.
Price Action Channel (PAC): Uses Exponential Moving Averages (EMA) of the high, low, and close to create a channel.
Bar Coloring: Colors the bars based on their position relative to the PAC.
Long and Short Signals: Uses crossovers of the close price and PAC upper/lower bands to generate signals.
Moving Averages (MA): Plots three moving averages and colors them based on their trend direction.
Overall Trend Indicators: Uses triangles at the bottom of the chart to show the overall trend of the MAs.
Stop Loss and Take Profit Levels: Calculates and plots these levels based on user-defined percentages from the entry price.
Alerts: Provides alerts for long and short signals.
Use Cases and How to Use
Identifying Trends: The PAC helps to identify the trend direction. If the closing price is above the PAC upper band, it suggests an uptrend; if below the lower band, it suggests a downtrend.
Entering Trades: Use the long and short signals to enter trades. A long signal is generated when the closing price crosses above the PAC upper band, and a short signal is generated when it crosses below the PAC lower band.
Exit Strategies: Utilize the Stop Loss (SL) and Take Profit (TP) levels to manage risk and lock in profits. These levels are automatically calculated based on the entry price and user-defined percentages.
Trend Confirmation with MAs: The moving averages provide additional confirmation of the trend. When all three MAs are trending in the same direction (e.g., all green for an uptrend), it adds confidence to the trade signal.
Overall Trend Indicators: The triangles at the bottom of the chart show the overall trend direction of the MAs:
Green Triangle: All three MAs are trending upwards, indicating a strong uptrend.
Red Triangle: All three MAs are trending downwards, indicating a strong downtrend.
Yellow Triangle: Mixed signals from the MAs, indicating no clear trend.
Bar Coloring for Quick Analysis: The colored bars give a quick visual cue about the market condition, aiding in faster decision-making.
Alerts: Set up alerts to get notified when a long or short signal is generated, allowing you to act promptly without constantly monitoring the chart.
Maximizing Profit
To maximize profit with this indicator:
Follow the Signals: Use the long and short signals to time your entries. Ensure you follow the trend indicated by the PAC and MAs.
Risk Management: Always set your Stop Loss and Take Profit levels to manage risk. This will help you cut losses early and secure profits.
Confirm with MAs: Look for confirmation from the moving averages. When all MAs align with the signal, it indicates a stronger trend.
Overall Trend Indicators: Pay attention to the triangles at the bottom for overall trend confirmation. Only enter trades when the overall trend is in your favor.
Heikin Ashi for Smoothing: Use Heikin Ashi candles for smoother trends and fewer false signals.
Backtesting: Test the indicator on historical data to understand its performance and adjust settings as necessary.
Adapt to Market Conditions: Adjust the lengths of PAC and MAs based on the market's volatility and timeframe you are trading on.
How to Use the Indicator
Add to Chart: Add the indicator to your TradingView chart.
Configure Settings: Customize the input settings to fit your trading strategy and timeframe.
Monitor Signals: Watch for long and short signals and observe the trend direction with the PAC and MAs.
Check Overall Trend: Look at the triangles at the bottom of the chart to see the overall trend direction of the MAs.
Set Alerts: Configure alerts to get notified of new signals.
Manage Trades: Use the SL and TP levels to manage your trades effectively.
First 12 Candles High/Low BreakoutThis indicator identifies potential breakout opportunities based on the high and low points formed within the first 12 candles after the market opens on a 5-minute timeframe. It provides visual cues and labels to help traders make informed decisions.
Features:
Market Open High/Low: Marks the highest and lowest price of the first 12 candles following the market open with horizontal lines for reference.
Breakout Signals: Identifies potential buy or sell signals based on the first 5-minute candle closing above the open high or below the open low.
Target and Stop-Loss: Plots horizontal lines for target prices (100 points by default, adjustable) and stop-loss levels (100 points by default, adjustable) based on the entry price.
Visual Cues: Uses green triangles (up) for buy signals and red triangles (down) for sell signals.
Informative Labels: Displays labels with "Buy" or "Sell" text, target price, and stop-loss price next to the entry signals (optional).
Customization:
You can adjust the target and stop-loss point values using the provided inputs.
How to Use:
Add the script to your TradingView chart.
The indicator will automatically plot the open high, open low, potential entry signals, target levels, and stop-loss levels based on the first 12 candles after the market opens.
Use the signals and price levels in conjunction with your own trading strategy to make informed decisions.
SLOPED Trailing SL with ATR-V1SLOPED Trailing SL with ATR
I thought capital is sometime locked for long periods s when volatility is low, hence:
SLOPED Trailing SL with ATR
This indicator provides a trailing stop loss that dynamically adjusts based on the Average True Range (ATR) and incorporates a user-defined upward slope on flat areas. It is designed to follow the price movement more closely during trends while allowing for a customizable slope to maintain a trailing stop even when the price movement is flat.
Key Features:
ATR-Based Stop Loss:
Utilizes the ATR to calculate a dynamic stop loss level, adjusting to market volatility.
Provides a normal ATR stop loss line that only trails upwards, preventing it from decreasing.
Upward Slope on Flat Areas:
Adds a user-defined upward slope to the trailing stop loss when the price movement is flat.
The slope value is specified in 1/1000 increments (e.g., 0.1% per bar), allowing for fine-tuned control.
Double Vegas SuperTrend Enhanced - Strategy [presentTrading]
█ Introduction and How It Is Different
The "Double Vegas SuperTrend Enhanced" strategy is a sophisticated trading system that combines two Vegas SuperTrend Enhanced. Very Powerful!
Let's celebrate the joy of Children's Day on June 1st! Enjoyyy!
BTCUSD LS performance
The strategy aims to pinpoint market trends with greater accuracy and generate trades that align with the overall market direction.
This approach differentiates itself by integrating volatility adjustments and leveraging the Vegas Channel's width to refine the SuperTrend calculations, resulting in a dynamic and responsive trading system.
Additionally, the strategy incorporates customizable take-profit and stop-loss levels, providing traders with a robust framework for risk management.
-> check Vegas SuperTrend Enhanced - Strategy
█ Strategy, How It Works: Detailed Explanation
🔶 Vegas Channel and SuperTrend Calculations
The strategy initiates by calculating the Vegas Channel, which is derived from a simple moving average (SMA) and the standard deviation (STD) of the closing prices over a specified window length. This channel helps in measuring market volatility and forms the basis for adjusting the SuperTrend indicator.
Vegas Channel Calculation:
- vegasMovingAverage = SMA(close, vegasWindow)
- vegasChannelStdDev = STD(close, vegasWindow)
- vegasChannelUpper = vegasMovingAverage + vegasChannelStdDev
- vegasChannelLower = vegasMovingAverage - vegasChannelStdDev
SuperTrend Multiplier Adjustment:
- channelVolatilityWidth = vegasChannelUpper - vegasChannelLower
- adjustedMultiplier = superTrendMultiplierBase + volatilityAdjustmentFactor * (channelVolatilityWidth / vegasMovingAverage)
The adjusted multiplier enhances the SuperTrend's sensitivity to market volatility, making it more adaptable to changing market conditions.
BTCUSD Local picture.
🔶 Average True Range (ATR) and SuperTrend Values
The ATR is computed over a specified period to measure market volatility. Using the ATR and the adjusted multiplier, the SuperTrend upper and lower levels are determined.
ATR Calculation:
- averageTrueRange = ATR(atrPeriod)
**SuperTrend Calculation:**
- superTrendUpper = hlc3 - (adjustedMultiplier * averageTrueRange)
- superTrendLower = hlc3 + (adjustedMultiplier * averageTrueRange)
The SuperTrend levels are continuously updated based on the previous values and the current market trend direction. The market trend is determined by comparing the closing prices with the SuperTrend levels.
Trend Direction:
- If close > superTrendLowerPrev, then marketTrend = 1 (bullish)
- If close < superTrendUpperPrev, then marketTrend = -1 (bearish)
🔶 Trade Entry and Exit Conditions
The strategy generates trade signals based on the alignment of both SuperTrends. Trades are executed only when both SuperTrends indicate the same market direction.
Entry Conditions:
- Long Position: Both SuperTrends must signal a bullish trend.
- Short Position: Both SuperTrends must signal a bearish trend.
Exit Conditions:
- Positions are exited if either SuperTrend reverses its trend direction.
- Additional conditions include holding periods and configurable take-profit and stop-loss levels.
█ Trade Direction
The strategy allows traders to specify the desired trade direction through a customizable input setting. Options include:
- Long: Only enter long positions.
- Short: Only enter short positions.
- Both: Enter both long and short positions based on the market conditions.
█ Usage
To utilize the "Double Vegas SuperTrend Enhanced" strategy, traders need to configure the input settings according to their trading preferences and market conditions. The strategy includes parameters for ATR periods, Vegas Channel window lengths, SuperTrend multipliers, volatility adjustment factors, and risk management settings such as hold days, take-profit, and stop-loss percentages.
█ Default Settings
The strategy comes with default settings that can be adjusted to fit individual trading styles:
- trade Direction: Both (allows trading in both long and short directions for maximum flexibility).
- ATR Periods: 10 for SuperTrend 1 and 5 for SuperTrend 2 (shorter ATR period results in more sensitivity to recent price movements).
- Vegas Window Lengths: 100 for SuperTrend 1 and 200 for SuperTrend 2 (longer window length results in smoother moving averages and less sensitivity to short-term volatility).
- SuperTrend Multipliers: 5 for SuperTrend 1 and 7 for SuperTrend 2 (higher multipliers lead to wider SuperTrend channels, reducing the frequency of trades).
- Volatility Adjustment Factors: 5 for SuperTrend 1 and 7 for SuperTrend 2 (higher adjustment factors increase the responsiveness to changes in market volatility).
- Hold Days: 5 (defines the minimum duration a position is held, ensuring trades are not exited prematurely).
- Take Profit: 30% (sets the target profit level to lock in gains).
- Stop Loss: 20% (sets the maximum acceptable loss level to mitigate risk).
market slayerInput Parameters:
Various input parameters allow customization of the strategy, including options to show trend confirmation, specify trend timeframes and values, set SMA lengths, enable take profit and stop loss, and define their respective values.
Calculations:
Simple Moving Averages (SMAs) are calculated based on the specified lengths.
Buy and sell signals are generated based on the crossover and crossunder of the short and long SMAs.
Confirmation Bars:
Functions are defined to determine bullish or bearish confirmation bars based on certain conditions.
These confirmation bars are used to confirm trend direction and generate additional signals.
Plotting:
SMAs are plotted on the chart.
Trend labels and signal markers are plotted based on the calculated conditions.
Trade Signals:
Buy and sell conditions are defined based on the crossover/crossunder of SMAs and confirmation of trend direction.
Strategy entries and exits are executed accordingly.
Take Profit and Stop Loss:
Optional take profit and stop loss functionality is included.
Trades are automatically closed when profit or loss thresholds are reached.
Closing Trades:
Trades are also closed based on changes in trend confirmation bars to ensure alignment with the overall market direction.
Alerts:
Alert conditions are defined for opening and closing trades, providing notifications when certain conditions are met.
Overall, this script aims to provide a systematic approach to trading by combining moving average crossovers with trend confirmation bars, along with options for risk management through take profit and stop loss orders. Users can customize various parameters to adapt the strategy to different market conditions and trading preferences.
The script uses the request.security() function with the lookahead parameter set to barmerge.lookahead_on to access data from a higher timeframe within the Pine Script on TradingView. Let's break down why it's used:
Higher Timeframe Analysis:
By default, Pine Script operates on the timeframe of the chart it's applied to. However, in trading strategies, it's common to incorporate signals or data from higher timeframes to confirm or validate signals generated on lower timeframes. This helps traders to align their trades with the broader market trend.
Trend Confirmation:
In this script, the confirmationTrendTimeframe parameter allows users to specify a higher timeframe for trend confirmation. The request.security() function fetches the data from this higher timeframe and applies the defined conditions to confirm the trend direction.
Lookahead Behavior:
The lookahead parameter set to barmerge.lookahead_on ensures that the script considers the most up-to-date information available on the higher timeframe when making trading decisions on the lower timeframe. This prevents the script from lagging behind or using outdated data, enhancing the accuracy of trend confirmation.
Usage in confirmationTrendBullish and confirmationTrendBearish:
These variables are assigned the values returned by the request.security() function, which represents the bullish or bearish trend confirmation based on the conditions applied to the data from the higher timeframe.
Multi-Timeframe Trend Following with 200 EMA Filter - Longs OnlyOverview
This strategy is designed to trade long positions based on multiple timeframe Exponential Moving Averages (EMAs) and a 200 EMA filter. The strategy ensures that trades are only entered in strong uptrends and aims to capitalize on sustained upward movements while minimizing risk with a defined stop-loss and take-profit mechanism.
Key Components
Initial Capital and Position Sizing
Initial Capital: $1000.
Lot Size: 1 unit per trade.
Inputs
Fast EMA Length (fast_length): The period for the fast EMA.
Slow EMA Length (slow_length): The period for the slow EMA.
200 EMA Length (filter_length_200): Set to 200 periods for the primary trend filter.
Stop Loss Percentage (stop_loss_perc): Set to 1% of the entry price.
Take Profit Percentage (take_profit_perc): Set to 3% of the entry price.
Timeframes and EMAs
EMAs are calculated for the following timeframes using the request.security function:
5-minute: Short-term trend detection.
15-minute: Intermediate-term trend detection.
30-minute: Long-term trend detection.
The strategy also calculates a 200-period EMA on the 5-minute timeframe to serve as a primary trend filter.
Trend Calculation
The strategy determines the trend for each timeframe by comparing the fast and slow EMAs:
If the fast EMA is above the slow EMA, the trend is considered positive (1).
If the fast EMA is below the slow EMA, the trend is considered negative (-1).
Combined Trend Signal
The combined trend signal is derived by summing the individual trends from the 5-minute, 15-minute, and 30-minute timeframes.
A combined trend value of 3 indicates a strong uptrend across all timeframes.
Any combined trend value less than 3 indicates a weakening or negative trend.
Entry and Exit Conditions
Entry Condition:
A long position is entered if:
The combined trend signal is 3 (indicating a strong uptrend across all timeframes).
The current close price is above the 200 EMA on the 5-minute timeframe.
Exit Condition:
The long position is exited if:
The combined trend signal is less than 3 (indicating a weakening trend).
The current close price falls below the 200 EMA on the 5-minute timeframe.
Stop Loss and Take Profit
Stop Loss: Set at 1% below the entry price.
Take Profit: Set at 3% above the entry price.
These levels are automatically set when entering a trade using the strategy.entry function with stop and limit parameters.
Plotting
The strategy plots the fast and slow EMAs for the 5-minute timeframe and the 200 EMA for visual reference on the chart:
Fast EMA (5-min): Plotted in blue.
Slow EMA (5-min): Plotted in red.
200 EMA (5-min): Plotted in green.
[MAD] Entrytool / Bybit-LinearThis indicator, "Entry Tool," was coded at request for Sandmann .
It is designed to provide traders with real-time feedback for strategizing entries, exits, and liquidation levels for trades initiated at that given moment.
The tool visualizes average entry prices, stop-loss levels, multiple take-profit targets, and potential liquidation prices, offering a comprehensive overview of possible trade outcomes. It aids traders in pre-planning their trades by visually simulating the impact of different trading decisions directly on the live chart. Each setting and parameter can be customized to align with individual trading strategies and risk tolerances, making this tool versatile for various trading styles, including day trading, swing trading, and position trading.
------------------------------
Steps to Use the Indicator:
1. Basic Setup:
Setup Type: Choose between "Long" or "Short" to set the direction of the trade.
Leverage: Adjust the leverage to understand its impact on your potential returns and liquidation price.
Tracking follows the close price, alternative you can enter a specific price.
2. Position Setup:
Initial Entry Amount: Set the starting amount for the trade.
Distance: First Increment Percentage from Entry price
Amount: Define the increase for the first incremental addition to the position and specify the amount to be added.
Distance: Second Increment Percentage from Entry
Amount: Set the increase for the second incremental addition and the corresponding amount.
3. Risk Management:
Stop-Loss (SL) Percentage: Set the percentage below or above the average entry price at which the position should be closed to minimize losses.
Take-Profit (TP) Percentages: Define up to four different profit target levels by specifying the percentage above or below the average entry price.
4. Visual Settings:
Box Colors: Customize the colors of the boxes that represent long and short positions to differentiate easily on the chart.
Box Extension: Determine the length by which the box extends beyond the current bar, which helps in visualizing the potential price movement.
Line Colors and Extensions: Select colors for various lines such as the Average Entry Line, Stop-Loss Line, Take-Profit Lines, and Liquidations Line. Adjust the length of these lines for better visibility.
Label Settings: Configure the distance of labels from their corresponding lines and set the font size for better readability.
5. Additional Features:
Liquidation Price Visualization: This new feature calculates and displays the liquidation price based on the current leverage and margin settings, giving traders a critical insight into their risk exposure.
Interactive Drag Point: Adjust the start price manually by dragging the point on the chart, which dynamically updates entry and exit levels as well as risk metrics.
Detailed Leverage Data Array: Input different scenarios with specific leverage, initial margin, and maintenance rates to see how these factors impact potential liquidation points.
6. Informations about leverage calculation
The data used are fetched from Bybit for Linear pairs to calculate the liquidations like in their documentation.
Keep in mind that other exchanges may calulate based on another formular.
Fibonacci Trend Reversal StrategyIntroduction
This publication introduces the " Fibonacci Retracement Trend Reversal Strategy, " tailored for traders aiming to leverage shifts in market momentum through advanced trend analysis and risk management techniques. This strategy is designed to pinpoint potential reversal points, optimizing trading opportunities.
Overview
The strategy leverages Fibonacci retracement levels derived from @IMBA_TRADER's lance Algo to identify potential trend reversals. It's further enhanced by a method called " Trend Strength Over Time " (TSOT) (by @federalTacos5392b), which utilizes percentile rankings of price action to measure trend strength. This also has implemented Dynamic SL finder by utilizing @veryfid's ATR Stoploss Finder which works pretty well
Indicators:
Fibonacci Retracement Levels : Identifies critical reversal zones at 23.6%, 50%, and 78.6% levels.
TSOT (Trend Strength Over Time) : Employs percentile rankings across various timeframes to gauge the strength and direction of trends, aiding in the confirmation of Fibonacci-based signals.
ATR (Average True Range) : Implements dynamic stop-loss settings for both long and short positions, enhancing trade security.
Strategy Settings :
- Sensitivity: Set default at 18, adjustable for more frequent or sparse signals based on market volatility.
- ATR Stop Loss Finder: Multiplier set at 3.5, applying the ATR value to determine stop losses dynamically.
- ATR Length: Default set to 14 with RMA smoothing.
- TSOT Settings: Hard-coded to identify percentile ranks, with no user-adjustable inputs due to its intrinsic calculation method.
Trade Direction Options : Configurable to support long, short, or both directions, adaptable to the trader's market assessment.
Entry Conditions :
- Long Entry: Triggered when the price surpasses the mid Fibonacci level (50%) with a bullish TSOT signal.
- Short Entry: Activated when the price falls below the mid Fibonacci level with a bearish TSOT indication.
Exit Conditions :
- Employs ATR-based dynamic stop losses, calibrated according to current market volatility, ensuring effective risk management.
Strategy Execution :
- Risk Management: Features adjustable risk-reward settings and enables partial take profits by default to systematically secure gains.
- Position Reversal: Includes an option to reverse positions based on new TSOT signals, improving the strategy's responsiveness to evolving market conditions.
The strategy is optimized for the BYBIT:WIFUSDT.P market on a scalping (5-minute) timeframe, using the default settings outlined above.
I spent a lot of time creating the dynamic exit strategies for partially taking profits and reversing positions so please make use of those and feel free to adjust the settings, tool tips are also provided.
For Developers: this is published as open-sourced code so that developers can learn something especially on dynamic exits and partial take profits!
Good Luck!
Disclaimer
This strategy is shared for educational purposes and must be thoroughly tested under diverse market conditions. Past performance does not guarantee future results. Traders are advised to integrate this strategy with other analytical tools and tailor it to specific market scenarios. I was only sharing what I've crafted while strategizing over a Solana Meme Coin.
EngineerBuySellHighRiskThis TradingView indicator script is designed to identify various trading signals based on price action and the 5-period Exponential Moving Average (EMA), providing traders with insights into potential buy and sell opportunities. The script generates signals under the following categories:
Buy Signals
Regular Buy Signal: Identified when the entire previous candle (Candle 1) is below the 5 EMA, and the following candle (Candle 2) has a higher high compared to Candle 1 and closes higher than its opening price (indicating a green candle). This signal suggests a potential upward momentum as the price moves above the recent lows and the 5 EMA, indicating a buying opportunity.
High-Risk Buy Signal: Similar to the regular buy signal, but it specifically targets scenarios where Candle 1's high is exactly on the 5 EMA. Candle 2 must either have a higher high than Candle 1 or touch the 5 EMA, and it must close higher than its opening price. This signal indicates a potential for an upward trend continuation but is considered higher risk due to the price's proximity to the 5 EMA.
High Buy Risk Signal: This signal is generated under the same conditions as the regular buy signal regarding the position of Candle 1 relative to the 5 EMA and the requirement for Candle 2 to have a higher high. However, it allows for Candle 2 to close lower than its opening price (indicating a red candle), broadening the criteria for a buy signal. This modification acknowledges the potential for buying opportunities even in cases where Candle 2 closes down, assuming the price still shows upward momentum compared to Candle 1.
Sell Signals
Sell Signal: Generated when Candle 1 is entirely above the 5 EMA, and the following candle (Candle 2) has a lower low compared to Candle 1 and closes lower than its opening price (indicating a red candle). This setup suggests a potential downward trend, signaling a selling or shorting opportunity.
High Risk Sell Signal: This signal is for scenarios where Candle 1 is above the 5 EMA, and Candle 2's low is lower than Candle 1's low, but unlike the standard sell signal, it allows Candle 2 to close higher than its opening price (indicating a green candle). It signifies a potential downward price movement but with increased risk due to the mixed signal from Candle 2's close.
Stop-Loss Levels
Buy Stop-Loss Level: For buy signals, the stop-loss is set at the low of Candle 1, providing a risk management level to minimize potential losses if the market moves against the trade.
Sell Stop-Loss Level: For sell signals, the stop-loss is set at the high of Candle 1, serving as a risk management tool to protect against unfavorable price movements after entering a short position.
Visualization
The script uses different colors and labels to distinguish between the types of signals, making it easier for traders to identify and act upon these trading opportunities. It plots the 5 EMA for reference, providing context for the price action relative to this moving average. This script aims to offer a comprehensive toolkit for traders looking for nuanced entry and exit points based on short-term price movements and momentum relative to the 5 EMA.
Long EMA Strategy with Advanced Exit OptionsThis strategy is designed for traders seeking a trend-following system with a focus on precision and adaptability.
**Core Strategy Concept**
The essence of this strategy lies in use of Exponential Moving Averages (EMAs) to identify potential long (buy) positions based on the relative positions of short-term, medium-term, and long-term EMAs. The use of EMAs is a classic yet powerful approach to trend detection, as these indicators smooth out price data over time, emphasizing the direction of recent price movements and potentially signaling the beginning of new trends.
**Customizable Parameters**
- **EMA Periods**: Users can define the periods for three EMAs - long-term, medium-term, and short-term - allowing for a tailored approach to capture trends based on individual trading styles and market conditions.
- **Volatility Filter**: An optional Average True Range (ATR)-based volatility filter can be toggled on or off. When activated, it ensures that trades are only entered when market volatility exceeds a user-defined threshold, aiming to filter out entries during low-volatility periods which are often characterized by indecisive market movements.
- **Trailing Stop Loss**: A trailing stop loss mechanism, expressed as a percentage of the highest price achieved since entry, provides a dynamic way to manage risk by allowing profits to run while cutting losses.
- **EMA Exit Condition**: This advanced exit option enables closing positions when the short-term EMA crosses below the medium-term EMA, serving as a signal that the immediate trend may be reversing.
- **Close Below EMA Exit**: An additional exit condition, which is disabled by default, allows positions to be closed if the price closes below a user-selected EMA. This provides an extra layer of flexibility and risk management, catering to traders who prefer to exit positions based on specific EMA thresholds.
**Operational Mechanics**
Upon activation, the strategy evaluates the current price in relation to the set EMAs. A long position is considered when the current price is above the long-term EMA, and the short-term EMA is above the medium-term EMA. This setup aims to identify moments where the price momentum is strong and likely to continue.
The strategy's versatility is further enhanced by its optional settings:
- The **Volatility Filter** adjusts the sensitivity of the strategy to market movements, potentially improving the quality of the entries during volatile market conditions.
The Average True Range (ATR) is a key component of this filter, providing a measure of market volatility by calculating the average range between the high and low prices over a specified number of periods. Here's how you can adjust the volatility filter settings for various market conditions, focusing on filtering out low-volatility markets:
Setting Examples for Volatility Filter
1. High Volatility Markets (e.g., Cryptocurrencies, Certain Forex Pairs):
ATR Periods: 14 (default)
ATR Multiplier: Setting the multiplier to a lower value, such as 1.0 or 1.2, can be beneficial in high-volatility markets. This sensitivity allows the strategy to react to volatility changes more quickly, ensuring that you're entering trades during periods of significant movement.
2. Medium Volatility Markets (e.g., Major Equity Indices, Medium-Volatility Forex Pairs):
ATR Periods: 14 (default)
ATR Multiplier: A multiplier of 1.5 (default) is often suitable for medium volatility markets. It provides a balanced approach, ensuring that the strategy filters out low-volatility conditions without being overly restrictive.
3. Low Volatility Markets (e.g., Some Commodities, Low-Volatility Forex Pairs):
ATR Periods: Increasing the ATR period to 20 or 25 can smooth out the volatility measure, making it less sensitive to short-term fluctuations. This adjustment helps in focusing on more significant trends in inherently stable markets.
ATR Multiplier: Raising the multiplier to 2.0 or even 2.5 increases the threshold for volatility, effectively filtering out low-volatility conditions. This setting ensures that the strategy only triggers trades during periods of relatively higher volatility, which are more likely to result in significant price movements.
How to Use the Volatility Filter for Low-Volatility Markets
For traders specifically interested in filtering out low-volatility markets, the key is to adjust the ATR Multiplier to a higher level. This adjustment increases the threshold required for the market to be considered sufficiently volatile for trade entries. Here's a step-by-step guide:
Adjust the ATR Multiplier: Increase the ATR Multiplier to create a higher volatility threshold. A multiplier of 2.0 to 2.5 is a good starting point for very low-volatility markets.
Fine-Tune the ATR Periods: Consider lengthening the ATR calculation period if you find that the strategy is still entering trades in undesirable low-volatility conditions. A longer period provides a more averaged-out measure of volatility, which might better suit your needs.
Monitor and Adjust: Volatility is not static, and market conditions can change. Regularly review the performance of your strategy in the context of current market volatility and adjust the settings as necessary.
Backtest in Different Conditions: Before applying the strategy live, backtest it across different market conditions with your adjusted settings. This process helps ensure that your approach to filtering low-volatility conditions aligns with your trading objectives and risk tolerance.
By fine-tuning the volatility filter settings according to the specific characteristics of the market you're trading in, you can enhance the performance of this strategy
- The **Trailing Stop Loss** and **EMA Exit Conditions** provide two layers of exit strategies, focusing on capital preservation and profit maximization.
**Visualizations**
For clarity and ease of use, the strategy plots the three EMAs and, if enabled, the ATR threshold on the chart. These visual cues not only aid in decision-making but also help in understanding the market's current trend and volatility state.
**How to Use**
Traders can customize the EMA periods to fit their trading horizon, be it short, medium, or long-term trading. The volatility filter and exit options allow for further customization, making the strategy adaptable to different market conditions and personal risk tolerance levels.
By offering a blend of trend-following principles with advanced risk management features, this strategy aims to cater to a wide range of trading styles, from cautious to aggressive. Its strength lies in its flexibility, allowing traders to fine-tune settings to their specific needs, making it a potentially valuable tool in the arsenal of any trader looking for a disciplined approach to navigating the markets.
Octopus Nest Strategy Hello Fellas,
Hereby, I come up with a popular strategy from YouTube called Octopus Nest Strategy. It is a no repaint, lower timeframe scalping strategy utilizing PSAR, EMA and TTM Squeeze.
The strategy considers these market factors:
PSAR -> Trend
EMA -> Trend
TTM Squeeze -> Momentum and Volatility by incorporating Bollinger Bands and Keltner Channels
Note: As you can see there is a potential improvement by incorporating volume.
What's Different Compared To The Original Strategy?
I added an option which allows users to use the Adaptive PSAR of @loxx, which will hopefully improve results sometimes.
Signals
Enter Long -> source above EMA 100, source crosses above PSAR and TTM Squeeze crosses above 0
Enter Short -> source below EMA 100, source crosses below PSAR and TTM Squeeze crosses below 0
Exit Long and Exit Short are triggered from the risk management. Thus, it will just exit on SL or TP.
Risk Management
"High Low Stop Loss" and "Automatic High Low Take Profit" are used here.
High Low Stop Loss: Utilizes the last high for short and the last low for long to calculate the stop loss level. The last high or low gets multiplied by the user-defined multiplicator and if no recent high or low was found it uses the backup multiplier.
Automatic High Low Take Profit: Utilizes the current stop loss level of "High Low Stop Loss" and gets calculated by the user-defined risk ratio.
Now, follows the bunch of knowledge for the more inexperienced readers.
PSAR: Parabolic Stop And Reverse; Developed by J. Welles Wilders and a classic trend reversal indicator.
The indicator works most effectively in trending markets where large price moves allow traders to capture significant gains. When a security’s price is range-bound, the indicator will constantly be reversing, resulting in multiple low-profit or losing trades.
TTM Squeeze: TTM Squeeze is a volatility and momentum indicator introduced by John Carter of Trade the Markets (now Simpler Trading), which capitalizes on the tendency for price to break out strongly after consolidating in a tight trading range.
The volatility component of the TTM Squeeze indicator measures price compression using Bollinger Bands and Keltner Channels. If the Bollinger Bands are completely enclosed within the Keltner Channels, that indicates a period of very low volatility. This state is known as the squeeze. When the Bollinger Bands expand and move back outside of the Keltner Channel, the squeeze is said to have “fired”: volatility increases and prices are likely to break out of that tight trading range in one direction or the other. The on/off state of the squeeze is shown with small dots on the zero line of the indicator: red dots indicate the squeeze is on, and green dots indicate the squeeze is off.
EMA: Exponential Moving Average; Like a simple moving average, but with exponential weighting of the input data.
Don't forget to check out the settings and keep it up.
Best regards,
simwai
---
Credits to:
@loxx
@Bjorgum
@Greeny
Targets For Overlay Indicators [LuxAlgo]The Targets For Overlay Indicators is a useful utility tool able to display targets during crossings made between the price and external indicators on the user chart. Users can display a series of two targets, one for crossover events and another one for crossunder event.
Alerts are included for the occurrence of a new target as well as for reached targets.
🔶 USAGE
In order for targets to be displayed users need to select an appropriate input source from the "Source" drop-down input setting. In the example above we apply the indicator to a volatility stop.
This can also easily be done by adding the "Targets For Overlay Indicators" script on the VStop indicator directly.
Targets can help users determine the price limit where the price might start deviating from an indication given by one or multiple indicators. In the context of trading, targets can help secure profits/reduce losses of a trade, as such this tool can be useful to evaluate/determine user take profits/stop losses.
Due to these essentially being horizontal levels, they can also serve as potential support/resistances, with breakouts potentially confirming new trends.
Users might be interested in obtaining new targets once one is reached, this can be done by enabling "New Target When Reached" in the target logic setting section, resulting in more frequent targets.
Lastly, users can restrict new target creation until current ones are reached. This can result in fewer and longer-term targets, with a higher reach rate.
🔹 Examples
The indicator can be applied to many overlay indicators that naturally produce crosses with the price, such as moving average, trailing stops, bands...etc.
Users can use trailing stops such as the SuperTrend or VStop to more easily create clean targets. Do note that certain SuperTrend scripts separate the upper and lower extremities of the SuperTrend into two different plot, which cannot be used with this tool, you may use the provided SuperTrend script below to have a compatible version with our tool:
//@version=5
indicator("SuperTrend", overlay = true)
factor = input.float(3, 'Factor', minval = 0)
atrLen = input.int(10, 'ATR Length', minval = 1)
= ta.supertrend(factor, atrLen)
plot(spt, 'SuperTrend', dir != dir ? na : dir < 0 ? #089981 : #f23645, 2)
plot(spt, 'Circles', dir > dir ? #f23645 : dir < dir ? #089981 : na, 3, plot.style_circles)
Using moving averages can produce more targets than other overlay indicators.
Users can apply the tool twice when using bands or any overlay indicator returning two outputs, using crossover targets for obtaining targets using the upper band as source and crossunder targets for targets using the lower band. We can also use the Trendlines with breaks indicator as example:
🔹 Dashboard
A dashboard is displayed on the top right of the chart, displaying the amount, reach rate of targets 1/2, and total amount.
This dashboard can be useful to evaluate the selected target distances relative to the selected conditions, with a higher reach rate suggesting the distance of the targets from the price allows them to be reached.
🔶 SETTINGS
Source: Indicator source used to create targets. Targets are created when the closing price crosses the specified source.
Show Target Labels: Display target labels on the chart.
Candle Coloring: Apply candle coloring based on the most recent active target.
🔹 Target
Crossover and Crossunder targets use the same settings below:
Show Target: Determines if the target is displayed or not.
Above Price Target: If selected, will create targets above the closing price.
Wait Until Reached: When enabled will not create a new target until an existing one is reached.
New Target When Reached: Will create a new target when an existing one is reached.
Evaluate Wicks: Will use high/low prices to determine if a target is reached. Unselecting this setting will use the closing price.
Target Distance From Price: Controls the distance of a target from the price. Can be determined in currencies/points, percentages, ATR multiples, or ticks.
buy/sell signals with Support/Resistance (InvestYourAsset) 📣The present indicator is a MACD based buy/sell signals indicator with support and resistance, that can be used to identify potential buy and sell signals in a security's price.
📣It is based on the MACD (Moving Average Convergence Divergence) indicator, which is a momentum indicator that shows the relationship between two moving averages of a security's price.
📣 The indicator also plots support and resistance levels, which can be used to confirm buy and sell signals. The support and resistance can also be used as a stoploss for existing position.
👉 To use the indicator, simply add it to your trading chart. The indicator will plot three sections:
📈 Price and Signals: This section plots the security's price and the MACD buy and sell signals.
📈 MACD Oscillator: This section plots the MACD oscillator, which is a histogram that shows the difference between the two moving averages.
📈 Moving Averages: This section plots the two moving averages that the MACD oscillator is based on.
📈 Support and Resistance: This section plots support and resistance levels, which are calculated based on the security's recent price action.
👉 To identify buy and sell signals, you can look for the following:
📈 Buy signal: When shorter Moving Average crosses over longer Moving Average.
📈 Sell signal: When shorter moving average crosses under longer moving average.
📈 You can also look for divergences between the MACD oscillator and the security's price. A divergence occurs when the MACD oscillator is moving in one direction, but the security's price is moving in the opposite direction. Divergences can be a sign of a potential trend reversal.
👉 To confirm buy and sell signals, you can look for support and resistance levels take a look at below snapshot. If a buy signal occurs at a support level, it is a stronger signal than if it occurs at a random price level. Similarly, if a sell signal occurs at a resistance level, it is a stronger signal than if it occurs at a random price level.
⚡ Here is a example of how to use the indicator to identify buy signal:
☑ Add the indicator to your trading chart.
☑Look for a buy signal when short MA crosses over Long MA.
☑Look for the buy signal to occur at a support level.
☑Enter a long position at the next candle.
☑Place a stop loss order below the support level.
☑Take profit when the MACD line crosses below the signal line, or when the security reaches a resistance level.
⚡ Here is an example of how to use the indicator to identify a sell signal:
☑Add the indicator to your trading chart.
☑Look for a sell signal, when shorter moving average crosses under longer moving average.
☑Look for the sell signal to occur at a resistance level.
☑Enter a short position at the next candle.
☑Place a stop loss order above the resistance level.
☑Take profit when the MACD line crosses above the signal line, or when the security reaches a support level.
✅Things to consider while using the indicator:
📈Look for buy signals in an uptrend and sell signals in a downtrend. This will increase the likelihood of your trades being successful.
📈Place your stop losses below the previous swing low or support for buy signals and above the previous swing high or resistance for sell signals. This will help to limit your losses if the trade goes against you.
📈Consider taking profits at key resistance and support levels. This will help you to lock in your profits and avoid giving them back to the market.
Follow us for timely updates regarding indicators that we may publish in future and give it a like if you appreciate the indicator.
Entry Assistant & News AlertIntention Of This Indicator
This indicator is intended to be used as an assistant in combination with a technical strategy.
This indicator has several functions intended to assist you at entering positions.
This indicator is intended to be used with strategies that place Stop Losses above / below candles, and entries at the BOC ( Break Of The Previous Candle , For Longs it is when price goes above the previous candles high, For Shorts it is when price goes below the previous candles low)
This indicator allows you to enter daily news release times, and it will warn you before and after that news release time ( to help you stay out of trading news )
This indicator Draw / Displays the following
A line below ( for Longs ) / above ( for Shorts ) the current candle, with an additional pip value for extra space ( this displays where to place your Stop Loss )
A label displaying the price of the Stop Loss line, to assist in placing the Stop Loss
A line displaying where the BOC is ( based off of going Long or going Short )
A box that appears when the BOC has occurred ( entry signal )
A line displaying where the news release is going to happen ( only according to your time input settings )
A box that surrounds the news release ( only according to your time input settings )
A table in the bottom right corner that shows you when there is Active News ( only according to your time input settings )
Inputs
Inputs to change the aesthetics ( colours etc. )
Numeric inputs to modify the placement / spacing of the Stop Loss / Entry signal / News
Toggles to activate or deactivate features
Disclaimer
This indicator does not guaranteed to work for every instrument ( always test before use! )
It is not at all intended to be a signal indicator on its own, but rather only to give a signal when used with specific technical strategies that us BOC entries.
This indicator is not guaranteed to be accurate, or error free.
This indicator is not signalling winning entries or high probability entries.
You must manually enter the news time inputs, this indicator does not automatically show you when there is a news release
This is a combination indicator of my Entry Assistant and my News Alert indicator, both can be found and used separately.
Entry Assistant by IvanIntention Of This Indicator
This indicator is intended to be used as an assistant in combination with a technical strategy.
This indicator has several functions intended to assist you at entering positions.
This indicator is intended to be used with strategies that place Stop Losses above / below candles, and entries at the BOC ( Break Of The Previous Candle , For Longs it is when price goes above the previous candles high, For Shorts it is when price goes below the previous candles low)
This indicator Draw / Displays the following
A line below ( for Longs ) / above ( for Shorts ) the current candle, with an additional pip value for extra space ( this displays where to place your Stop Loss )
A label displaying the price of the Stop Loss line, to assist in placing the Stop Loss
A line displaying where the BOC is ( based off of going Long or going Short )
A box that appears when the BOC has occurred ( entry signal )
Inputs
Inputs to change the aesthetics ( colours etc. )
Numeric inputs to modify the placement / spacing of the Stop Loss / Entry signal
Toggles to activate or deactivate features
Disclaimer
This indicator does not currently work for every instrument ( it only works for most Forex pairs and some Indices )
It is not at all intended to be a signal indicator on its own, but rather only to give a signal when used with specific technical strategies that us BOC entries.
This indicator is not guaranteed to be accurate, or error free.
This indicator is not signalling winning entries or high probability entries.
Trend Confirmation StrategyThe profitability and uniqueness of a trading strategy depend on various factors including market conditions, risk management, and the strategy's ability to capitalize on price movements. I'll describe the strategy provided and highlight its potential benefits and differences compared to other strategies:
Strategy Overview:
The provided strategy combines three technical indicators: Supertrend, MACD, and VWAP. It aims to identify potential entry and exit points by confirming trend direction and considering the proximity to the VWAP level. The strategy also incorporates stop-loss and take-profit mechanisms, as well as a trailing stop.
Unique Aspects and Potential Benefits:
Trend Confirmation: The strategy uses both Supertrend and MACD to confirm the trend direction. This dual confirmation can increase the likelihood of accurate trend identification and filter out false signals.
VWAP Confirmation: The strategy considers the proximity of the price to the VWAP level. This dynamic level can act as a support or resistance and provide additional context for entry decisions.
Adaptive Stop Loss: The strategy sets a stop-loss range, which helps provide some tolerance for minor price fluctuations. This adaptive approach considers market volatility and helps prevent premature stop-loss triggers.
Trailing Stop: The strategy incorporates a trailing stop mechanism to lock in profits as the trade moves in the desired direction. This can potentially enhance profitability during strong trends.
Partial Profit Booking: While not explicitly implemented in the provided code, you could consider booking partial profits when the MACD shows a crossover in the opposite direction. This aspect could help secure gains while still keeping exposure to potential further price movements.
Key Differences from Other Strategies:
Dual Indicator Confirmation: The combination of Supertrend and MACD for trend confirmation is a unique aspect of this strategy. It adds an extra layer of filtering to enhance the accuracy of entry signals.
Dynamic VWAP: Incorporating the VWAP level into the decision-making process adds a dynamic element to the strategy. VWAP is often used by institutional traders, and its inclusion can provide insights into the market sentiment.
Adaptive Stop Loss and Trailing: The strategy's use of an adaptive stop-loss range and a trailing stop can help manage risk and protect profits more effectively during changing market conditions.
Partial Profit Booking: The suggestion to consider partial profit booking upon MACD crossovers in the opposite direction is a practical approach to secure gains while staying in the trade.
Caution and Considerations:
Backtesting: Before deploying any strategy in real trading, it's crucial to thoroughly backtest it on historical data to understand its performance under various market conditions.
Risk Management: While the strategy has built-in risk management mechanisms, it's essential to carefully manage position sizes and overall portfolio risk.
Market Conditions: No strategy works well in all market conditions. It's important to be flexible and adjust the strategy or refrain from trading during particularly volatile or unpredictable periods.
Continuous Monitoring: Even though the strategy includes automated components, continuous monitoring of the trades and market conditions is necessary.
Adaptability: Markets can change over time. Traders need to be prepared to adapt the strategy as necessary to stay aligned with evolving market dynamics.
