TASC 2024.06 REIT ETF Trading System█ OVERVIEW
This strategy script demonstrates the application of the Real Estate Investment Trust (REIT) ETF trading system presented in the article by Markos Katsanos titled "Is The Price REIT?" from TASC's June 2024 edition of Traders' Tips .
█ CONCEPTS
REIT stocks and ETFs offer a simplified, diversified approach to real estate investment. They exhibit sensitivity to interest rates, often moving inversely to interest rate and treasury yield changes. Markos Katsanos explores this relationship and the correlation of prices with the broader market to develop a trading strategy for REIT ETFs.
The script employs Bollinger Bands and Donchian channel indicators to identify oversold conditions and trends in REIT ETFs. It incorporates the 10-year treasury yield index (TNX) as a proxy for interest rates and the S&P 500 ETF (SPY) as a benchmark for the overall market. The system filters trade entries based on their behavior and correlation with the REIT ETF price.
█ CALCULATIONS
The strategy initiates long entries (buy signals) under two conditions:
1. Oversold condition
The weekly ETF low price dips below the 15-week Bollinger Band bottom, the closing price is above the value by at least 0.2 * ATR ( Average True Range ), and the price exceeds the week's median.
Either of the following:
– The TNX index is down over 15% from its 25-week high, and its correlation with the ETF price is less than 0.3.
– The yield is below 2%.
2. Uptrend
The weekly ETF price crosses above the previous week's 30-week Donchian channel high.
The SPY ETF is above its 20-week moving average.
Either of the following:
– Over ten weeks have passed since the TNX index was at its 30-week high.
– The correlation between the TNX value and the ETF price exceeds 0.3.
– The yield is below 2%.
The strategy also includes three exit (sell) rules:
1. Trailing (Chandelier) stop
The weekly close drops below the highest close over the last five weeks by over 1.5 * ATR.
The TNX value rises over the latest 25 weeks, with a yield exceeding 4%, or its value surges over 15% above the 25-week low.
2. Stop-loss
The ETF's price declines by at least 8% of the previous week's close and falls below the 30-week moving average.
The SPY price is down by at least 8%, or its correlation with the ETF's price is negative.
3. Overbought condition
The ETF's value rises above the 100-week low by over 50%.
The ETF's price falls over 1.5 * ATR below the 3-week high.
The ETF's 10-week Stochastic indicator exceeds 90 within the last three weeks.
█ DISCLAIMER
This strategy script educates users on the system outlined by the TASC article. However, note that its default properties might not fully represent real-world trading conditions for an individual. By default, it uses 10% of equity as the order size and a slippage amount of 5 ticks. Traders should adjust these settings and the commission amount when using this script. Additionally, since this strategy utilizes compound conditions on weekly data to trigger orders, it will generate significantly fewer trades than other, higher-frequency strategies.
Cari dalam skrip untuk "weekly"
Danger Signals from The Trading MindwheelThe " Danger Signals " indicator, a collaborative creation from the minds at Amphibian Trading and MARA Wealth, serves as your vigilant lookout in the volatile world of stock trading. Drawing from the wisdom encapsulated in "The Trading Mindwheel" and the successful methodologies of legends like William O'Neil and Mark Minervini, this tool is engineered to safeguard your trading journey.
Core Features:
Real-Time Alerts: Identify critical danger signals as they emerge in the market. Whether it's a single day of heightened risk or a pattern forming, stay informed with specific danger signals and a tally of signals for comprehensive decision-making support. The indicator looks for over 30 different signals ranging from simple closing ranges to more complex signals like blow off action.
Tailored Insights with Portfolio Heat Integration: Pair with the "Portfolio Heat" indicator to customize danger signals based on your current positions, entry points, and stops. This personalized approach ensures that the insights are directly relevant to your trading strategy. Certain signals can have different meanings based on where your trade is at in its lifecycle. Blow off action at the beginning of a trend can be viewed as strength, while after an extended run could signal an opportunity to lock in profits.
Forward-Looking Analysis: Leverage the 'Potential Danger Signals' feature to assess future risks. Enter hypothetical price levels to understand potential market reactions before they unfold, enabling proactive trade management.
The indicator offers two different modes of 'Potential Danger Signals', Worst Case or Immediate. Worst Case allows the user to input any price and see what signals would fire based on price reaching that level, while the Immediate mode looks for potential Danger Signals that could happen on the next bar.
This is achieved by adding and subtracting the average daily range to the current bars close while also forecasting the next values of moving averages, vwaps, risk multiples and the relative strength line to see if a Danger Signal would trigger.
User Customization: Flexibility is at your fingertips with toggle options for each danger signal. Tailor the indicator to match your unique trading style and risk tolerance. No two traders are the same, that is why each signal is able to be turned on or off to match your trading personality.
Versatile Application: Ideal for growth stock traders, momentum swing traders, and adherents of the CANSLIM methodology. Whether you're a novice or a seasoned investor, this tool aligns with strategies influenced by trading giants.
Validation and Utility:
Inspired by the trade management principles of Michael Lamothe, the " Danger Signals " indicator is more than just a tool; it's a reflection of tested strategies that highlight the importance of risk management. Through rigorous validation, including the insights from "The Trading Mindwheel," this indicator helps traders navigate the complexities of the market with an informed, strategic approach.
Whether you're contemplating a new position or evaluating an existing one, the " Danger Signals " indicator is designed to provide the clarity needed to avoid potential pitfalls and capitalize on opportunities with confidence. Embrace a smarter way to trade, where awareness and preparation open the door to success.
Let's dive into each of the components of this indicator.
Volume: Volume refers to the number of shares or contracts traded in a security or an entire market during a given period. It is a measure of the total trading activity and liquidity, indicating the overall interest in a stock or market.
Price Action: the analysis of historical prices to inform trading decisions, without the use of technical indicators. It focuses on the movement of prices to identify patterns, trends, and potential reversal points in the market.
Relative Strength Line: The RS line is a popular tool used to compare the performance of a stock, typically calculated as the ratio of the stock's price to a benchmark index's price. It helps identify outperformers and underperformers relative to the market or a specific sector. The RS value is calculated by dividing the close price of the chosen stock by the close price of the comparative symbol (SPX by default).
Average True Range (ATR): ATR is a market volatility indicator used to show the average range prices swing over a specified period. It is calculated by taking the moving average of the true ranges of a stock for a specific period. The true range for a period is the greatest of the following three values:
The difference between the current high and the current low.
The absolute value of the current high minus the previous close.
The absolute value of the current low minus the previous close.
Average Daily Range (ADR): ADR is a measure used in trading to capture the average range between the high and low prices of an asset over a specified number of past trading days. Unlike the Average True Range (ATR), which accounts for gaps in the price from one day to the next, the Average Daily Range focuses solely on the trading range within each day and averages it out.
Anchored VWAP: AVWAP gives the average price of an asset, weighted by volume, starting from a specific anchor point. This provides traders with a dynamic average price considering both price and volume from a specific start point, offering insights into the market's direction and potential support or resistance levels.
Moving Averages: Moving Averages smooth out price data by creating a constantly updated average price over a specific period of time. It helps traders identify trends by flattening out the fluctuations in price data.
Stochastic: A stochastic oscillator is a momentum indicator used in technical analysis that compares a particular closing price of an asset to a range of its prices over a certain period of time. The theory behind the stochastic oscillator is that in a market trending upwards, prices will tend to close near their high, and in a market trending downwards, prices close near their low.
While each of these components offer unique insights into market behavior, providing sell signals under specific conditions, the power of combining these different signals lies in their ability to confirm each other's signals. This in turn reduces false positives and provides a more reliable basis for trading decisions
These signals can be recognized at any time, however the indicators power is in it's ability to take into account where a trade is in terms of your entry price and stop.
If a trade just started, it hasn’t earned much leeway. Kind of like a new employee that shows up late on the first day of work. It’s less forgivable than say the person who has been there for a while, has done well, is on time, and then one day comes in late.
Contextual Sensitivity:
For instance, a high volume sell-off coupled with a bearish price action pattern significantly strengthens the sell signal. When the price closes below an Anchored VWAP or a critical moving average in this context, it reaffirms the bearish sentiment, suggesting that the momentum is likely to continue downwards.
By considering the relative strength line (RS) alongside volume and price action, the indicator can differentiate between a normal retracement in a strong uptrend and a when a stock starts to become a laggard.
The integration of ATR and ADR provides a dynamic framework that adjusts to the market's volatility. A sudden increase in ATR or a character change detected through comparing short-term and long-term ADR can alert traders to emerging trends or reversals.
The "Danger Signals" indicator exemplifies the power of integrating diverse technical indicators to create a more sophisticated, responsive, and adaptable trading tool. This approach not only amplifies the individual strengths of each indicator but also mitigates their weaknesses.
Portfolio Heat Indicator can be found by clicking on the image below
Danger Signals Included
Price Closes Near Low - Daily Closing Range of 30% or Less
Price Closes Near Weekly Low - Weekly Closing Range of 30% or Less
Price Closes Near Daily Low on Heavy Volume - Daily Closing Range of 30% or Less on Heaviest Volume of the Last 5 Days
Price Closes Near Weekly Low on Heavy Volume - Weekly Closing Range of 30% or Less on Heaviest Volume of the Last 5 Weeks
Price Closes Below Moving Average - Price Closes Below One of 5 Selected Moving Averages
Price Closes Below Swing Low - Price Closes Below Most Recent Swing Low
Price Closes Below 1.5 ATR - Price Closes Below Trailing ATR Stop Based on Highest High of Last 10 Days
Price Closes Below AVWAP - Price Closes Below Selected Anchored VWAP (Anchors include: High of base, Low of base, Highest volume of base, Custom date)
Price Shows Aggressive Selling - Current Bars High is Greater Than Previous Day's High and Closes Near the Lows on Heaviest Volume of the Last 5 Days
Outside Reversal Bar - Price Makes a New High and Closes Near the Lows, Lower Than the Previous Bar's Low
Price Shows Signs of Stalling - Heavy Volume with a Close of Less than 1%
3 Consecutive Days of Lower Lows - 3 Days of Lower Lows
Close Lower than 3 Previous Lows - Close is Less than 3 Previous Lows
Character Change - ADR of Last Shorter Length is Larger than ADR of Longer Length
Fast Stochastic Crosses Below Slow Stochastic - Fast Stochastic Crosses Below Slow Stochastic
Fast & Slow Stochastic Curved Down - Both Stochastic Lines Close Lower than Previous Day for 2 Consecutive Days
Lower Lows & Lower Highs Intraday - Lower High and Lower Low on 30 Minute Timeframe
Moving Average Crossunder - Selected MA Crosses Below Other Selected MA
RS Starts Curving Down - Relative Strength Line Closes Lower than Previous Day for 2 Consecutive Days
RS Turns Negative Short Term - RS Closes Below RS of 7 Days Ago
RS Underperforms Price - Relative Strength Line Not at Highs, While Price Is
Moving Average Begins to Flatten Out - First Day MA Doesn't Close Higher
Price Moves Higher on Lighter Volume - Price Makes a New High on Light Volume and 15 Day Average Volume is Less than 50 Day Average
Price Hits % Target - Price Moves Set % Higher from Entry Price
Price Hits R Multiple - Price hits (Entry - Stop Multiplied by Setting) and Added to Entry
Price Hits Overhead Resistance - Price Crosses a Swing High from a Monthly Timeframe Chart from at Least 1 Year Ago
Price Hits Fib Level - Price Crosses a Fib Extension Drawn From Base High to Low
Price Hits a Psychological Level - Price Crosses a Multiple of 0 or 5
Heavy Volume After Significant Move - Above Average and Heaviest Volume of the Last 5 Days 35 Bars or More from Breakout
Moving Averages Begin to Slope Downward - Moving Averages Fall for 2 Consecutive Days
Blow Off Action - Highest Volume, Largest Spread, Multiple Gaps in a Row 35 Bars or More Post Breakout
Late Buying Frenzy - ANTS 35 Bars or More Post Breakout
Exhaustion Gap - Gap Up 5% or Higher with Price 125% or More Above 200sma
Periodic Activity Tracker [LuxAlgo]The Periodic Activity Tracker tool periodically tracks the cumulative buy and sell volume in a user-defined period and draws the corresponding matching bars and volume delta for each period.
Users can select a predefined aggregation period from the following options: Hourly, Daily, Weekly, and Monthly.
🔶 USAGE
This tool provides a simple and clear way of analyzing volumes for each aggregated period and is made up of the following elements:
Buy and sell volumes by period as red and green lines with color gradient area
Delta (difference) between buy & sell volume for each period
Buy & sell volume bars for each period
Separator between lines and bars, and period tags below each pair of bars for ease of reading
On the chart above we can see all the elements displayed, the volume level on the lines perfectly matches the volume level on the bars for each period.
In this case, the tool has the default settings so the anchor period is set to Daily and we can see how the period tag (each day of the week) is displayed below each pair of bars.
Users can disable the delta display and adjust the bar size.
🔹 Reading The Tool
In trading, assessing the strength of the bulls (buyers) and bears (sellers) is key to understanding the current trading environment. Which side, if any, has the upper hand? To answer this question, some traders look at volume in relation to price.
This tool provides you with a view of buy volume versus sell volume, allowing you to compare both sides of the market.
As with any volume tool, the key is to understand when the forces of the two groups are balanced or unbalanced.
As we can observe on the chart:
NOV '23: Buy volume greater than sell volume, both moving up close together, flat delta. We can see that the price is in range.
DEC '23: Buy volume bigger than Sell volume, both moving up but with a bigger difference, bigger delta than last month but still flat. We can see the price in the range above last month's range.
JAN '24: Buy and sell volume tied together, no delta whatsoever. We can see the price in range but testing above and below last month's range.
FEB '24: Buy volume explodes higher and sell volume cannot keep up, big growing delta. Price explodes higher above last month's range.
Traders need to understand that there is always an equal number of buyers and sellers in a liquid market, the quality here is how aggressive or passive they are. Who is 'attacking' and who is 'defending', who is using market orders to move prices, and who is using limit orders waiting to be filled?
This tool gives you the following information:
Lines: if the top line is green, the buyers are attacking, if it is red, the sellers are attacking.
Delta: represents the difference in their strength, if it is above 0 the buyers are stronger, if it is below 0 the sellers are stronger.
Bars: help you to see the difference in strength between buyers and sellers for each period at a glance.
🔹 Anchor Period
By default, the tool is set to Hourly. However, users can select from a number of predefined time periods.
Depending on the user's selection, the bars are displayed as follows:
Hourly : hours of the current day
Daily : days of the current week
Weekly : weeks of the current month
Monthly : months of the current year
On the chart above we can see the four periods displayed, starting at the top left and moving clockwise we have hourly, daily, weekly, and monthly.
🔶 DETAILS
🔹 Chart TimeFrame
The chart timeframe has a direct impact on the visualization of the tool, and the user should select a chart timeframe that is compatible with the Anchor period in the tool's settings panel.
For the chart timeframe to be compatible it must be less than the Anchor period parameter. If the user selects an incompatible chart timeframe, a warning message will be displayed.
As a rule of thumb, the smaller the chart timeframe, the more data the tool will collect, returning indications for longer-term price variations.
These are the recommended chart timeframes for each period:
Hourly : 5m charts or lower
Daily : 1H charts or lower
Weekly : 4H charts or lower
Monthly : 1D charts or lower
🔹 Warnings
This chart shows both types of warnings the user may receive
At the top, we can see the warning that is given when the 'Bar Width' parameter exceeds the allowed value.
At the bottom is the incompatible chart timeframe warning, which prompts the user to select a smaller chart timeframe or a larger "Anchor Period" parameter.
🔶 SETTINGS
🔹 Data Gathering
Anchor period: Time period representing each bar: hours of the day, days of the week, weeks of the month, and months of the year. The timeframe of the chart must be less than this parameter, otherwise a warning will be displayed.
🔹 Style
Bars width: Size of each bar, there is a maximum limit so a warning will be displayed if it is reached.
Volume color
Delta: Enable/Disable Delta Area Display
AWR - Chris - V3Calculates the AWR based on Dr. Coles formula. Takes the last 12 weeks (not including the current one) highs and lows, adds them and then divides by twelve, give the average weekly range. Then takes the AWR and show the playing field based on the high and low of the current weekly candle. Must be used on the weekly chart to get the data needed then manually plot your lines on the required charts.
Multi-Time AVWAP_BEARConcept
Collaboration Highlight:
This was a collaboration with @Chart_School and @KioseffTrading Thank you to both, along with Ricardo Santos for his awesome library we used.
Overview
See how you view different time frame charts with one indicator and little to no adjustment.
Innovation:
The concept of using Anchored VWAP (AVWAP) with time events is a powerful technique in trading and technical analysis. Anchored VWAP differs from the traditional Volume Weighted Average Price (VWAP) by allowing traders to select a specific starting point or "anchor," from which the VWAP calculation begins. This approach is particularly useful for assessing price movements in relation to significant market events or specific periods of interest.
Utility and Flexibility:
Explaining the flexibility in turning on and off different time slices without much adjustment showcases a user-friendly design.
Key Uses and Benefits
Comparative Performance:
Anchoring the VWAP at the start of different time frames (e.g., weekly, monthly, quarterly) enables traders to compare the current price performance against previous periods. This comparison can highlight trends or shifts in trading momentum relative to past activity.
Support and Resistance Levels:
AVWAP lines can act as dynamic support and resistance levels. When anchored to significant time events, these levels gain additional relevance as they reflect the market's valuation of an asset since a notable point in time. Traders often watch for price interactions with these levels to make informed trading decisions.
Risk Management:
Anchored VWAP can serve as a benchmark for setting stop-loss orders or profit targets. By considering the price's relation to the AVWAP of a specific period or after a key event, traders can define exit points that are aligned with market-generated information.
Trend Confirmation: The direction and stability of the price relative to an anchored VWAP can indicate the strength of a trend. If the price consistently remains above an AVWAP anchored at a bullish event (or below for a bearish event), it may confirm the trend's continuation.
Further Reading
Educational Resource:
Becuase we are using Volume with a relation to price AVWAP is very powerful to show data that cannot be eye balled on its own. Brian Shannon's book "Maximum Trading Gains With Anchored VWAP - The Perfect Combination of Price, Time & Volume", is an excellent guide to best practices on how to use AVWAP to your advatage while trading. His book goes into depth about the best way to use this indicator to its fullest potencial.
Tips for Using This Indicator
Weekly / Monthly / Quarterly Settings:
All the settings for the lower timeframe charts are similar. Here is an example of seeing a Weekly AVWAP for 6 weeks, showing:
1. The start of the 6-week AVWAP is using a High Low Close source for the first candle of the 6 weeks.
2. The lines are colored "Red" for the AVWAPs.
3. The line thickness is "1".
Yearly Settings
Simlair to the other settings with the Yearly we give you a couple more options along with 3 years to toggle on and off. The idea was to allow the user to see which AVWAP most effected by price and quickly toggle them on and off to unclutter their chart.
Watch for how and if the labels over lap and choose the one you feel is most in play. In Shannon's Book he talks about "Hand off's" and "Pinches". These concepts are easy to spot with being able to see all the Major Time Events, then simply toggle off the one you dont need.
A great benefit to how we coded this script you can buzz through a watch list without having to re-adjust the Anchor points. This will save you time if following a basket of symbols and show coorlations in the overall market.
Secret Feature
When looking at these becuase the user doesn't need to hand plot the anchor points and we are fouced on major time slices, I encourge you to use the Trading View "Bar Replay" Feature. You think that you are missing a high or low AVWAP but what is happening is the indicator is re-plotting a level that is super hard to see, then you will see the hand-offs like Shannon discusses in his book. This blew me away while we were discussing it post development.
Conclusion
There are so many uses of how to use VWAP and therories on its best practice. We are only using "TIME EVENTS". For more ways to use AVWAP, I would encourge you to also handplot them with Trading View's new "Anchored VWAP", as seen in the standard toolbar.
Using your ideas along with this indicator i think its a powerful combination.
Also Check Out: allanster's - Anchored VWAP Pinch & Handoff, Intervals, and Signals
He has a great AVWAP script that incorporates many AVWAP ideas.
Tops & Bottoms - Day of Week Report█ OVERVIEW
The indicator tracks when the weekly tops and bottoms occur and reports the statistics by the days of the week.
█ CONCEPTS
Not all the days of the week are equal, and the market dynamic can follow through or shift over the trading week. Tops and bottoms are vital when entering a trade, as they will decide if you are catching the train or being straight offside. They are equally crucial when exiting a position, as they will determine if you are closing at the optimal price or seeing your unrealized profits vanish.
This indicator is before all for educational purposes. It aims to make the knowledge available to all traders, facilitate understanding of the various markets, and ultimately get to know your trading pairs by heart (and saving a lot of your time backtesting!).
USDJPY tops and bottoms percentages on any given week.
USDJPY tops and bottoms percentages on up weeks versus down weeks.
█ FEATURES
Custom interval
By default, the indicator uses the weekly interval defined by the symbol (e.g., Monday to Sunday). This option allows you to specify your custom interval.
Weekly interval type filter
Analyze the weekly interval on any weeks, up weeks, or down weeks.
Configurable time range filter
Select the period to report from.
█ NOTES
Trading session
The indicator analyzes the days of the week from the daily chart. The daily trading sessions are defined by the symbol (e.g., 17:00 - 17:00 on EURUSD).
Extended/electronic trading session
The indicator can include the extended hours when activated on the chart, using the 24-hour or 1440-minute timeframe.
█ HOW TO USE
Plot the indicator and navigate on the 1-day or 24-hour timeframe.
Multi VWAP [MW]Introduction
The Multi VWAP tool extends the concept of using the Anchored Volume Weighted Average Price, popularized by its founder, Brian Shannon, founder of AlphaTrends, and creates automatic AVWAPS for multiple anchor points, such as for 2-day, 3-day, 4-day, 5-day, and custom date anchors as well as automagically creating month-to-date and year-to-date anchors. Currently, most standard VWAP tools allow users to place custom anchored VWAPs, but the routine of doing this for every equity being watched can become cumbersome. This tool makes that process multi-times easier. Brian Shannon is also the author of “Maximum Trading Gains With Anchored VWAP: The Perfect Combination of Price, Time, and Volume”. Available at Amazon.
Settings
Daily VWAP : A continuous line of the the daily Volume Weighted Average Price (VWAP)
Weekly VWAP : A continuous line of the weekly VWAP
2-Day AVWAP : The anchored VWAP from 2 trading days ago (holidays and weekends are excluded in this calculation)
3-Day AVWAP : The anchored VWAP from 3 trading days ago
4-Day AVWAP : The anchored VWAP from 4 trading days ago
5-Day AVWAP : The anchored VWAP from 5 trading days ago. The slope of this line and the position of the price relative to this line can be used to determine trend direction.
10-Day AVWAP : The anchored VWAP from 10 trading days ago
Month-to-Date AVWAP : The anchored VWAP from the beginning of the current month
Year-to-Date AVWAP : The anchored VWAP from the beginning of the current year
Custom Date AVWAP : Sets a date to begin an anchored VWAP starting from any time.
Use only the most recent VWAP for Week, Month, and Year: Toggles on and off the continuous weekly, monthly, and yearly VWAPs
Calculations
This indicator does not provide buy or sell signals. It is simply the VWAP calculated starting from an “anchor point”, or start time. It is the calculated by the summation of Price x Volume / Volume for the period starting at the anchor point.
How to Interpret
According to Brian Shannon, VWAP is an objective measure of what the average trader has paid for a particular equity over a given period, and is the value that large institutional investors frequently use as a trade signal. Therefore, by definition, when the price is above an AVWAP, buyers are in control for that period of time. Likewise, if the price is below the AVWAP, sellers are in control for that period of time.
Shannon also distinguishes the importance of an increasing or decreasing 5 day VWAP, which reflects the price sentiment, objectively, for roughly the last trading week, or 5 trading days. Pricing below a decreasing 5-day VWAP is considered very bearish, while pricing above an increasing 5-day VWAP is considered bullish and is recommended before considering long positions.
Additionally, a custom VWAP can be generated to coincide with important events, such as FOMC meetings, CPI reports, earnings reports, etc.
Practically speaking, price action can tend to change direction when a significant VWAP is hit, voiding buy and sell signals. Like moving averages, this indicator can show, in real-time, how a buy or sell signal should be interpreted. A significant AVWAP line is a point of interest, and can serve as strong support or resistance, because large institutions may be using those values for entries or exits. For a great analysis of how to use AVWAP, visit the AlphaTrends channel on Youtube here or you can buy Brian Shannon’s “Anchored VWAP” book on Amazon.
Other Usage Notes and Limitations
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
Additionally, the indicator may take a little longer to load than usual. On the rare occasion where it fails to load, you may need to remove the indicator and add it back to your chart. Also, if you do encounter this problem, avoid redrawing your chart while the indicator is being added to the screen.
Acknowledgements
This script uses the MarketHolidays library by @Protervus. Also, for debugging, the JavaScript-style Debug Console by @algotraderdev and the TimeFormattingLibrary by @twingall were invaluable. And, of course, without Brian Shannon's books, videos, and interviews, this indicator would would not be possible.
WRESBAL PlusWRESBAL Plus is an improved way of looking at the same data that drives WRESBAL, which is a commonly used series on FRED.
WRESBAL is a weekly average of combined balances on FRED using inputs that are weekly averages in some cases. For example the Treasury General Account has multiple FRED series including WDTGAL (wednesday level) and WTREGEN (wednesday weekly average) There are data sets that are tracking the same metrics which are updated daily such as RRPONTSYD as opposed to WLRRAL.
This situation leads to an opportunity to create a new and improved WRESBAL with the data that is updated more frequently. WRESBAL Plus solves the problem of waiting for weekly averages to update trends.
WRESBAL plus combines data sets from FRED that are updated more frequently and are the basis for the original WRESBAL equation. WRESBAL Plus offers a signal that predicts where WRESBAL will go, and this is important when determining the direction of asset prices as they relate to liquidity. One example of an asset that closely follows WRESBAL is Bitcoin.
ayogetit Trades™ Dynamic 5DMAThe Dynamic 5-Day Moving Average (MA) indicator is designed to provide traders with a consistent, time-adjusted moving average line across various timeframes. This indicator is especially useful for traders who switch between multiple timeframes and want a moving average that represents a fixed 5-day period, ensuring that the MA reflects a consistent lookback period relative to the amount of trading time each candle represents.
Features:
Timeframe Adaptability: Automatically adjusts the MA period to correspond to a 5-day lookback, regardless of the selected timeframe.
Intraday Precision: For intraday charts (5m, 15m, 30m, 1h, 2h, 4h), the indicator calculates the number of periods within the 5-day span based on the chart's timeframe.
Daily and Weekly Timeframe Compatibility: Sets the period to 5 for daily charts to maintain the 5-day MA, and to 1 for weekly charts, where each candlestick represents a week's worth of trading days.
Calculation Logic:
The indicator begins by defining the total number of trading minutes in 5 days, based on a standard 6.5-hour trading day.
A dynamic period calculation function then determines the number of those intervals that fit into the 5-day minute total for the selected timeframe.
For daily charts, the period is a straightforward 5, while for weekly charts, the period is set to 1, reflecting the average of the past 5 trading days.
Dynamic 5-Day Moving AverageThe Dynamic 5-Day Moving Average (MA) indicator is designed to provide traders with a consistent, time-adjusted moving average line across various timeframes. This indicator is especially useful for traders who switch between multiple timeframes and want a moving average that represents a fixed 5-day period, ensuring that the MA reflects a consistent lookback period relative to the amount of trading time each candle represents.
Features:
Timeframe Adaptability: Automatically adjusts the MA period to correspond to a 5-day lookback, regardless of the selected timeframe.
Intraday Precision: For intraday charts (5m, 15m, 30m, 1h, 2h, 4h), the indicator calculates the number of periods within the 5-day span based on the chart's timeframe.
Daily and Weekly Timeframe Compatibility: Sets the period to 5 for daily charts to maintain the 5-day MA, and to 1 for weekly charts, where each candlestick represents a week's worth of trading days.
Calculation Logic:
The indicator begins by defining the total number of trading minutes in 5 days, based on a standard 6.5-hour trading day.
A dynamic period calculation function then determines the number of those intervals that fit into the 5-day minute total for the selected timeframe.
For daily charts, the period is a straightforward 5, while for weekly charts, the period is set to 1, reflecting the average of the past 5 trading days.
Expected Move by Option's Implied Volatility High Liquidity
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols with high option liquidity.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options.There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry. This script will display Expected Move data for Symbols within the range of JBL-NOTE in alphabetical order.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: EAT - GBDC
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of EAT-GDBC in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: CLFD-EARN This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of CLFD - EARN in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: B - CLF
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of B - CLF in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: A - AZZ
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of A - AZZ in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Implied Range from Options [SS]I have been promising to post this for a while, but I just needed to make sure that a) there were no similar indicators already available and b) make it a bit more user friendly.
So here it is, a basic indicator that will display the implied range from options.
In addition to displaying the implied range from options, it will provide some secondary information to help add context to the implied range. Those are shown in the chart below:
The indicator will list various precents at each point to the upside and to the downside. This is the percent move required, based on the current close price, to obtain any point in the implied move range.
In addition, the indicator will display the average move from open to high and open to low over a user defined period (default to 14 candle period) as well as the previous open to high and open to low move from the previous day.
This is to give you context of:
a) How much of a % increase or decrease is required to reach the implied ranges; and
b) How does the implied range compare to the ticker's average moves.
An increased implied range that exceeds the ticker's average move can alert you that the market is pricing in an above average move. This can be helpful and alert you to potential news releases or other fundamental things that have the potential to move the market.
How to Use the indicator:
So unfortunately, this indicator requires a bit of manual input. I was going to do an auto IV calculcation using Black-Scholes Model but just to be more rigorous in accuracy, I decided to, for now, leave it at a manual input. So when you launch the settings menu, this is what you will see:
You can collect all of this required information from your broker. Inversely, you can collect it online for free from various services such as Barchart or COBE's exchange website. The easiest way is to just pull it from your broker though.
Make sure, if you are doing weekly options to see the weekly range, you set the timeframe to 1 week. The timeframe function will calculate the average move over the desired timeframe length. So if you are doing a 0 dte for the next day, you want to see the intra-day range and will select the 1 day timeframe. It will then present to you the range averages and information on the daily timeframe for you to compare to the implied options range.
Same for the weekly, monthly, yearly, etc.
Additional options:
The indicator provides the midline average and midway points, to add static targets if you are trading the implied range.
These can be toggled on or off in the settings menu:
As well, as you can see, you can also toggle off the range labels.
There is also an offset option. This allows you to extend the range into the future:
Simply select how many candles you would like to plot the range in advance.
Closing remarks
That is the indicator. Its very simple, but it is handy. I was never one to pay attention to option pricing data, but I have been plotting it out daily and weekly these past few weeks and it does add a bit of context in terms of what the market is thinking. So I do recommend actually adding it to your repertoire of analyses going into the weeks and months, and really just paying attention to how the average ranges compare to what the market is pricing in.
One quick suggestion, select the strike price that aligns with the closing price of the ticker. This gives you a better representation of the range.
Safe trades everyone and leave your comments, questions and suggestions below!
Buying Selling Volume StrategyFirst I would like to give the original credit and thanks to @ceyhun for his amazing volume script.
The way I decided to convert it into a strategy is divided into multiple types.
First, I decided in order to smooth out the values and make it more accurate to adapt the values to multiple timeframes.
After that I took the initial values from the buyers and sellers , and made a rest operation between them to have a flat difference between the power of both sides.
WIth that later on I decided to to apply a volatility filter,in this case bollinger bands, in order to find out potential leading trends.
At the same time in order to filter even more, I decided to make use as well for weekly VWAP values of the asset used.
Lastly I added a dynamic risk management into it , based on the ATR Daily values of the asset values.
As for the rules used, for example for long, I am looking that the price of the asset is above the weekly VWAP, after that I am checking that the MTF volume rest operation is both bullish and above the upper side of the bollinger.
For short we would want the asset to be below the weekly VWAP, and the volume to be bearish and above the upper side of bollinger.
The exit is either based on daily ATR values multipliers, or if we have a reverse condition.
If you have any questions, please let me know !
Buy/Sell EMA CandleThis indicator is designed to display various technical indicators, candle patterns, and trend directions on a price chart. Let's break down the code and explain its different sections:
Exponential Moving Averages (EMA):
The code calculates and plots five EMAs of different lengths (13, 21, 55, 90, and 200) on the price chart. These EMAs are used to identify trends and potential crossovers.
Engulfing Candle Patterns:
The code identifies and highlights potential bullish and bearish engulfing candle patterns. It checks if the current candle's body size is larger than the combined body sizes of the previous and subsequent four candles. If this condition is met, it marks the pattern on the chart.
s3.tradingview.com
EMA Crossovers:
The code identifies and highlights points where the shorter EMA (ema1) crosses above or below the longer EMA (ema2). It plots circles to indicate these crossover points.
Candle Direction and RSI Trend:
The code determines the trend direction of the last candle based on whether it closed higher or lower than its open price. It also calculates the RSI (Relative Strength Index) and determines its trend direction (overbought, oversold, or neutral) based on predefined thresholds.
s3.tradingview.com
Table Display:
The code creates a table displaying trend directions for different timeframes (monthly, weekly, daily, 4-hour, and 1-hour) for candle direction and RSI trends. The trends are labeled with "L" for long, "S" for short, and "N/A" for not applicable.
High Volume Bars (HVB):
The code identifies and colors bars with above-average volume as either bullish or bearish based on whether the price closed higher or lower than it opened. The color and conditions for high volume bars can be customized.
s3.tradingview.com
Doji Candle Pattern:
The code identifies and marks doji candle patterns, where the open and close prices are very close to each other within a certain percentage of the candle's high-low range.
RSI-Based Candle Coloring:
The code adjusts the color of the candles based on the RSI value. If the RSI value is above the overbought threshold or below the oversold threshold, the candles are colored yellow.
Usage and Interpretation:
Traders can use this indicator to identify potential trend changes based on EMA crossovers and candle patterns like engulfing and doji.
The RSI trend direction can provide additional insight into potential overbought or oversold conditions.
High volume bars can indicate potential price reversals or continuation patterns.
The table provides an overview of trend directions on different timeframes for both candle direction and RSI trends.
Keep in mind that this is a complex indicator with multiple features. Users should carefully evaluate its performance and consider combining it with other indicators and analysis methods for more accurate trading decisions.
The table is designed to provide a consolidated view of trend directions and other indicators across multiple timeframes. It is displayed on the chart and organized into rows and columns. Each row corresponds to a specific aspect of analysis, and each column corresponds to a different timeframe.
Here's a breakdown of the components of the table:
Row 1: Separation.
Row 2 (Header Row): This row contains the headers for the columns. The headers represent the different timeframes being analyzed, such as Monthly (M), Weekly (W), Daily (D), 4-hour (4h), and 1-hour (1h).
Row 3 (Content Row): This row contains labels indicating the types of information being displayed in the columns. The labels include "T" for Trend, "C" for Current Candle, and "R" for RSI Trend.
Row 4 and Onwards: These rows display the actual data for each aspect of analysis across different timeframes.
For each aspect of analysis (Trend, Current Candle, RSI Trend), the corresponding rows display the following information:
Monthly (M): The trend direction for the given aspect on the monthly timeframe.
Weekly (W): The trend direction for the given aspect on the weekly timeframe.
Daily (D): The trend direction for the given aspect on the daily timeframe.
4-hour (4h): The trend direction for the given aspect on the 4-hour timeframe.
1-hour (1h): The trend direction for the given aspect on the 1-hour timeframe.
The trend directions are represented by labels such as "L" for Long, "S" for Short, or "N/A" for Not Applicable.
The table's purpose is to provide a quick overview of trend directions and related information across multiple timeframes, aiding traders in making informed decisions based on the analysis of trend changes and other indicators.
MACDh with divergences & impulse system (overlayed on prices)-----------------------------------------------------------------
General Description:
This indicator ( the one on the top panel above ) consists on some lines, arrows and labels drawn over the price bars/candles indicating the detection of regular divergences between price and the classic MACD histogram (shown on the low panel). This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra features" Impulse System and Keltner Channels, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Some cool features included in this indicator:
1. This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Price bars are colored blue when conditions for a Red Price Bar or Green Price Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green price bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red price bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue price bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
2. Another "extra feature" included here is the " Keltner Channels ". Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
3. It were also included a couple of EMAs.
Everything can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*Shows a pair of EMAs.
*Shows Keltner Channels (using ATR)
Keltner Channels are volatility-based envelopes set above and below an exponential moving average.
*This indicator also has the option to show the Impulse System over the price bars/candles.
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
-----------------------------------------------------------------
Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
-----------------------------------------------------------------
Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
-----------------------------------------------------------------
Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
Buy Only Strategy with Dynamic Re-Entry and ExitThe strategy aims to create a simple buy-only trading system based on moving average crossovers and the Weekly Commodity Channel Index (CCI) or Weekly Average Directional Index (ADX). It generates buy signals when the fast-moving average crosses above the slow-moving average and when the Weekly CCI and or Weekly ADX meet the specified conditions.
The strategy also allows for dynamic re-entry, which means it can open new long positions if the price goes above the three moving averages after an exit. However, the strategy will exit the long position if the price closes below the third moving average.
ENTRY CONDITIONS
The script defines the conditions for generating buy signals. It checks for two conditions for a valid buy signal:
• If the fast-moving average crosses above the slow-moving average -THERE IS Dynamic Re-Entry also
• If the user chooses HE OR SHE CAN FILTER TRADES BY USING CCI OR ADX
Dynamic Re-Entry:
the script allows for dynamic re-entry. If there is no active long position and the price is above all three moving averages a new long position is opened.
Exit Conditions
The script defines the exit condition for closing a long position. If the price closes below the third moving average, the script closes the long position.
IMPORTANT NOTICE
ONLY DAILY TIME FRAME
THERE WOULD BE WHIPSAW USE YOUR OWN ACCUMEN TO MINIMISE THEM
ITS ONLY BUY STRATEGY
EXIT CAN BE STRATEGY BASED OR SET PROFIT AND TARGETS AS PER RISK APETITE /RISK MANAGEMENT
DONT TRADE OPTIONS ON THIS
SUITABLE FOR STOCKS OF USA AND INDIAN MARKETS
ALWAYS REMEMBER TO DO YOUR OWN RESEARCH BEFORE TRADING AND INVESTING
HTF FVG D/W/M 25%/50%/75% [MK]Do you use HTF FVG (fair value gaps) in your trading strategy? Do you monitor price on the 25%/50%/75% levels within the FVG on a lower timeframe?
This script will allow the user to display either Daily, Weekly or Monthly FVGs on a lower timeframe chart. The script will then also show the 25%/50%/75% levels within the HTF FVG so traders can see how price reacts in the FVG.
For example, a Weekly FVG may be chosen by the trader as a possible reversal point, or somewhere to add to an existing position. The trader might want to see the FVG almost fully filled, then watch price climb up/down out of the Weekly FVG
before taking the trade.
Previously traders would draw the FVG to the chart, then use maybe the tradingview fib tool to display the 25%/50%/75% levels. The problem with this is that its easy to accidently move the fib while dragging the chart around.
Chart below shows example of price almost filling a D FVG, then using the 25%/50%/75% levels as it climbs out of the FVG and reverses to the upside.
TimeLy Moving Average - TMAHello traders, I'm Only Fibonacci.
With this indicator, you will see the averages according to the hourly, weekly and monthly price movements in many periods on the chart.
This will show you the moving average values of the price over different periods in a progressive manner on the chart that is open to you.
Options and Usage
To see the hourly average, your chart's time range must be less than or equal to 60 minutes, otherwise it will produce a NaN value.
In order to see the daily average, your chart must be open for any minute period or (even if the second is open, it must be greater than 6 seconds). Otherwise, it does not produce any value.
Your chart must be larger than the second chart to see the weekly average. In other words, you can see the weekly average with at least 1 minute chart open.
In order to see the monthly average, your chart time interval must be above 10 minutes, otherwise you will not be able to see data again.
Settings
You choose the moving average type and the time interval value you want to see from the indicator settings.
You can also select a source for moving averages.
Enjoy it, you can make improvements on it.
Please do not forget to comment for various bug reports.
