HMA Crossover 1H with RSI, Stochastic RSI, and Trailing StopThe strategy script provided is a trading algorithm designed to help traders make informed buy and sell decisions based on certain technical indicators. Here’s a breakdown of what each part of the script does and how the strategy works:
Key Components:
Hull Moving Averages (HMA):
HMA 5: This is a Hull Moving Average calculated over 5 periods. HMAs are used to smooth out price data and identify trends more quickly than traditional moving averages.
HMA 20: This is another HMA but calculated over 20 periods, providing a broader view of the trend.
Relative Strength Index (RSI):
RSI 14: This is a momentum oscillator that measures the speed and change of price movements over a 14-period timeframe. It helps identify overbought or oversold conditions in the market.
Stochastic RSI:
%K: This is the main line of the Stochastic RSI, which combines the RSI and the Stochastic Oscillator to provide a more sensitive measure of overbought and oversold conditions. It is smoothed with a 3-period simple moving average.
Trading Signals:
Buy Signal:
Generated when the 5-period HMA crosses above the 20-period HMA, indicating a potential upward trend.
Additionally, the RSI must be below 45, suggesting that the market is not overbought.
The Stochastic RSI %K must also be below 39, confirming the oversold condition.
Sell Signal:
Generated when the 5-period HMA crosses below the 20-period HMA, indicating a potential downward trend.
The RSI must be above 60, suggesting that the market is not oversold.
The Stochastic RSI %K must also be above 63, confirming the overbought condition.
Trailing Stop Loss:
This feature helps protect profits by automatically selling the position if the price moves against the trade by 5%.
For sell positions, an additional trailing stop of 100 points is included.
Stochastic RSI (STOCH RSI)
RSI, STOCHASTIC RSI AND MFI COMBOCombining the Relative Strength Index (RSI), Stochastic RSI (StochRSI), and Money Flow Index (MFI) can provide traders with a comprehensive approach to analyze market momentum, overbought/oversold conditions, and money flow. Each indicator offers unique insights, and their combination can help confirm trading signals and filter out false signals. Let's delve into each indicator and then discuss how they can be used together:
Relative Strength Index (RSI) 14: DA BLUE LINE
The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify overbought (>70) and oversold (<30) conditions. A reading above 70 may indicate that an asset is overbought and could be due for a pullback, while a reading below 30 may suggest that an asset is oversold and could be due for a bounce.
Stochastic RSI (StochRSI) 14: DA RED LINE
The StochRSI is an oscillator that combines the features of both the Stochastic Oscillator and RSI. It measures the relative position of the RSI within its range over a specific period (e.g., 14 periods). Like the RSI, the StochRSI oscillates between 0 and 100 and is used to identify overbought and oversold conditions. Typically:
A StochRSI above 0.8 may suggest overbought conditions.
A StochRSI below 0.2 may indicate oversold conditions.
Money Flow Index (MFI) 14: DA PURPLE LINE
The MFI is a momentum oscillator that measures the inflow and outflow of money into an asset over a specific period (e.g., 14 periods). It oscillates between 0 and 100 and is used to identify overbought and oversold conditions based on both price and volume. Generally:
An MFI above 80 may indicate overbought conditions.
An MFI below 20 may suggest oversold conditions.
Combining RSI, StochRSI, and MFI:
When combining RSI, StochRSI, and MFI, traders can use the following approach to analyze the market:
Identify Overbought/Oversold Conditions:
Look for confluence between RSI, StochRSI, and MFI readings to identify overbought and oversold conditions.
For example, if RSI > 70, StochRSI > 0.8, and MFI > 80, it may suggest a strong overbought condition, potentially indicating a reversal or pullback.
Confirm Trend Strength:
Use the RSI, StochRSI, and MFI to confirm the strength of a trend.
A rising trend with RSI, StochRSI, and MFI above 50 may suggest strong bullish momentum, while a falling trend with readings below 50 may indicate strong bearish momentum.
Divergence Analysis:
Look for divergences between price and RSI, StochRSI, or MFI to identify potential trend reversals.
For example, if the price makes a higher high, but RSI, StochRSI, or MFI makes a lower high (bearish divergence), it may suggest weakening bullish momentum and potential downside.
Combining RSI, StochRSI, and MFI can offer traders a more holistic view of market momentum, overbought/oversold conditions, and money flow. Backtest it let me know your success.
ATR Bands (Keltner Channel), Wick and SRSI Signals [MW]Introduction
This indicator uses a novel combination of ATR Bands, candle wicks crossing the ATR upper and lower bands, and baseline, and combines them with the Stochastic SRSI oscillator to provide early BUY and SELL signals in uptrends, downtrends, and in ranging price conditions.
How it’s unique
People generally understand Bollinger Bands and Keltner Channels. Buy at the bottom band, sell at the top band. However, because the bands themselves are not static, impulsive moves can render them useless. People also generally understand wicks. Candles with large wicks can represent a change in pattern, or volatile price movement. Combining those two to determine if price is reaching a pivot point is relatively novel. When Stochastic RSI (SRSI) filtering is also added, it becomes a genuinely unique combination that can be used to determine trade entries and exits.
What’s the benefit
The benefit of the indicator is that it can help potentially identify pivots WHEN THEY HAPPEN, and with potentially minimal retracement, depending on the trader’s time window. Many indicators wait for a trend to be established, or wait for a breakout to occur, or have to wait for some form of confirmation. In the interpretation used by this indicator, bands, wicks, and SRSI cycles provide both the signal and confirmation.
It takes into account 3 elements:
Price approaching the upper or lower band or the baseline - MEANING: Price is becoming extended based on calculations that use the candle trading range.
A candle wick of a defined proportion (e.g. wick is 1/2 the size of a full candle OR candle body) crosses a band or baseline, but the body does not cross the band or baseline - MEANING: Buyers and sellers are both very active.
The Stochastic RSI reading is above 80 for SELL signals and below 20 for BUY signals - MEANING: Additional confirmation that price is becoming extended based on the current cyclic price pattern.
How to Use
SIGNALS
Buy Signals - Green(ish):
B Signal - Potential pivot up from the lower band when using the preferred multiplier
B1 Signal - Potential pivot up from the lower band when using phi * multiplier
B2 Signal - Potential pivot up from the lower band when using 1/2 * multiplier
B3 Signal - Potential pivot up from baseline
Sell Signals - Red(ish):
S Signal - Potential pivot down from the upper band when using the preferred multiplier
S1 Signal - Potential pivot down from the upper band when using
S2 Signal - Potential pivot down from the upper band when using 1/2 * multiplier
S3 Signal - Potential pivot down from the baseline
DISCUSSION
During an uptrend or downtrend, signals from the baseline can help traders identify areas where they may enter the trending move with the least amount of drawdown. In both cases, entry points can occur with baseline signals in the direction of the trend.
For example, in an uptrend (when the price is forming higher highs and higher lows, or when the baseline is rising), price tends to oscillate between the upper band and baseline. In this case, the baseline BUY signal (B3) can show an entry point.
In a downtrend (when the price is forming lower highs and lower lows, or when the baseline is falling), price tends to oscillate between the baseline and the lower band. In this case, the baseline SELL signal (S3) can show an entry point.
During consolidation, when price is ranging, price tends to oscillate between the upper and lower bands, while crossing through the baseline unperturbed. Here, entry points can occur at the upper and lower bands.
When all conditions are met at the lower band during consolidation, a BUY signal (B), can occur. This signal may also occur prior to a break out of consolidation to the upside.
When all conditions are met at the upper band during consolidation, a SELL signal (S), can occur. This signal may also occur prior to a break out of consolidation to the downside.
Additional B1, B2, and S1, and S2 signals can be displayed that use the bands based on a multiplier that is half that of the primary one, and phi (0.618) times the primary multiplier as a way to quickly check for signals occurring along different, but related, bands.
Calculations
ATR Bands, or Keltner Channels, are a technical analysis tool that are used to measure market volatility and identify overbought or oversold conditions in the trading of financial instruments, such as stocks, bonds, commodities, and currencies. ATR Bands consist of three lines plotted on a price chart:
Middle Band, Basis, or Baseline: This is typically a simple moving average (SMA) of the closing prices over a certain period. It represents the intermediate-term trend of the asset's price.
Upper Band: This is calculated by adding a certain number of ATRs to the middle band (SMA). The upper band adjusts itself with the increase in volatility.
Lower Band: This is calculated by subtracting the same number of ATRs from the middle band (SMA). Like the upper band, the lower band adjusts to changes in volatility.
The candle wick signals occur if the wick is at the specified ratio compared to either the entire candle or the candle body. The upper band, lower band, and baseline signals happen if the wick is the specified ratio of the total candle size. For the major signals for upper and lower bands, these occur when the wick extends outside of the bands while closing a candle inside of the bands. For the baseline signals, they occur if a wick crosses a baseline but closes on the other side.
Settings
CHANNEL SETTINGS
Baseline EMA Period (Default: 21): Period length of the moving average basis line.
ATR Period (Default: 21): The number of periods over which the Average True Range (ATR) is calculated.
Basis MA Type (Default: SMA): The moving average type for the basis line.
Multiplier (Default: 2.5: The deviation multiplier used to calculate the band distance from the basis line.
ADDITIONAL CHANNELS
Half of Multiplier Offset (Default: True): Toggles the display of the ATR bands that are set a distance of half of the ATR multiplier.
Quarter of Multiplier Offset (Default: false): Toggles the display of the ATR bands that are set a distance of one quarter of the ATR multiplier.
Phi (Φ) Offset (Default: false): Toggles the display of the ATR bands that are set a distance of phi (Φ) times the ATR multiplier.
WICK SETTINGS FOR CANDLE FILTERS
Wick Ratio for Bands (Default: 0.4): The ratio of wick size to total candle size for use at upper and lower bands.
Wick Ratio for Baseline (Default: 0.4): The ratio of wick size to total candle size for use at baseline.
Use Candle Body (rather than full candle size) (Default: false): Determines whether wick calculations use the candle body or the entire candle size.
VISUAL PREFERENCES - SIGNALS
Show Signals (Default: true): Allows signal labels to be shown.
Show Signals from 1/2 Band Offset (Default: false): Toggle signals originating from 1/2 offset upper and lower bands.
Show Signals from Phi (Φ) Band Offset (Default: false): Toggle signals originating from phi (Φ) offset upper and lower bands.
Show Baseline Signals (Default: false): Toggle Baseline signals.
VISUAL PREFERENCES - BANDS
Show ATR (Keltner) Bands (Default: true): Use a background color inside the Bollinger Bands.
Fill Bands (Default: true): Use a background color inside the Bollinger Bands.
STOCHASTIC SETTINGS
Use Stochastic RSI Filtering (Default: False): This will only trigger some SELL signals when the stochastic RSI is above 80, and BUY signals when below 20.
K (Default: 3): The smoothing level for the Stochastic RSI.
RSI Length (Default: 14): The period length for the RSI calculation.
Stochastic Length (Default: 8): The period length over which the stochastic calculation is performed.
Other Usage Notes and Limitations
To understand future price movement, this indicator assumes that 3 things must be known:
Evidence of a change of market structure. This can be demonstrated by increased volatility, consolidation, volume spikes (which can be tracked with the MW Volume Impulse Indicator) or, in the case of this indicator, candle wicks.
The potential cause of the change. It could be a VWAP line (which can be tracked with the Multi VWAP , and Multi VWAP from Gaps indicators), an event, an important support or resistance level, a key moving average, or many other things. This indicator assumes the ATR bands can be a cause.
The current position in the price cycle. Oscillators like the RSI, and MACD, are typical measures of price oscillation (other oscillators like the Price and Volume Stochastic Divergence indicator can also be useful). This indicator uses the Stochastic RSI oscillator to determine overbought and oversold conditions.
When evidence of the change appears, and the potential cause of the change is identified, and the price oscillation is at a favorable position for the desired trading direction, this indicator will generate a signal.
ATR Bands (or Keltner Channels) are used to determine when price might “revert to the mean”. Crossing, or being near the upper or lower band, can indicate an overbought or oversold condition, which could lead to a price reversal. By tracking the behavior of candle wicks during these events, we can see how active the battle is between buyers and sellers.
If the top of a wick is large, it may indicate that sellers are aggressively attempting to bring the price down. Conversely, if the bottom wick is large, it can indicate that buyers are actively trying to counter the price action caused by selling pressure.
When this wicking action occurs at times when price is not near the upper band, lower band, or baseline, it could indicate the presence of an important level. That could mean a nearby VWAP line, a supply or demand zone, a round price number, or a number of other factors. In any case, this wick may be the first indication of a price reversal.
Shorter baseline periods may be better for short period trading like scalping or day trading, while longer period baselines can show signals that are better suited to swing trading, or longer term investing.
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.
The TradingView platform allows a maximum of 500 labels per chart. This means that if your settings allow for a lot of signals, labels for earlier ones may not appear if the total number of labels exceeds 500 for the chart.
Bollinger Band Wick and SRSI Signals [MW]Introduction
This indicator uses a novel combination of Bollinger Bands, candle wicks crossing the upper and lower Bollinger Bands and baseline, and combines them with the Stochastic SRSI oscillator to provide early BUY and SELL signals in uptrends, downtrends, and in ranging price conditions.
How it’s unique
People generally understand Bollinger Bands and Keltner Channels. Buy at the bottom band, sell at the top band. However, because the bands themselves are not static, impulsive moves can render them useless. People also generally understand wicks. Candles with large wicks can represent a change in pattern, or volatile price movement. Combining those two to determine if price is reaching a pivot point is relatively novel. When Stochastic RSI (SRSI) filtering is also added, it becomes a genuinely unique combination that can be used to determine trade entries and exits.
What’s the benefit
The benefit of the indicator is that it can help potentially identify pivots WHEN THEY HAPPEN, and with potentially minimal retracement, depending on the trader’s time window. Many indicators wait for a trend to be established, or wait for a breakout to occur, or have to wait for some form of confirmation. In the interpretation used by this indicator, bands, wicks, and SRSI cycles provide both the signal and confirmation.
It takes into account 3 elements:
Price approaching the upper or lower band or the baseline - MEANING: Price is becoming extended based on calculations that use the candle trading range.
A candle wick of a defined proportion (e.g. wick is 1/2 the size of a full candle OR candle body) crosses a band or baseline, but the body does not cross the band or baseline - MEANING: Buyers and sellers are both very active.
The Stochastic RSI reading is above 80 for SELL signals and below 20 for BUY signals - MEANING: Additional confirmation that price is becoming extended based on the current cyclic price pattern.
How to Use
SIGNALS
Buy Signals - Green(ish):
B Signal - Potential pivot up from the lower band when using the preferred multiplier
B1 Signal - Potential pivot up from baseline
Sell Signals - Red(ish):
S Signal - Potential pivot down from the upper band when using the preferred multiplier
S1 Signal - Potential pivot down from the baseline
DISCUSSION
During an uptrend or downtrend, signals from the baseline can help traders identify areas where they may enter the trending move with the least amount of drawdown. In both cases, entry points can occur with baseline signals in the direction of the trend.
For example, in an uptrend (when the price is forming higher highs and higher lows, or when the baseline is rising), price tends to oscillate between the upper band and baseline. In this case, the baseline BUY signal (B3) can show an entry point.
In a downtrend (when the price is forming lower highs and lower lows, or when the baseline is falling), price tends to oscillate between the baseline and the lower band. In this case, the baseline SELL signal (S3) can show an entry point.
During consolidation, when price is ranging, price tends to oscillate between the upper and lower bands, while crossing through the baseline unperturbed. Here, entry points can occur at the upper and lower bands.
When all conditions are met at the lower band during consolidation, a BUY signal (B), can occur. This signal may also occur prior to a break out of consolidation to the upside.
When all conditions are met at the upper band during consolidation, a SELL signal (S), can occur. This signal may also occur prior to a break out of consolidation to the downside.
Additional, B1 and S1 signals can be displayed that use the baseline as the pivot level.
Settings
SIGNALS
Show Bollinger Band Signals (Default: True): Allows signal labels to be shown.
Hide Baseline Signals (Default: False): Baseline signals are on by default. This will turn them off.
Show Wick Signals (Defau
lt: True): Displays signals when wicking occurs.
BOLLINGER BAND SETTINGS
Period length for Bollinger Band Basis (Default: 21): Length of the Bollinger Band (BB) moving average basis line.
Basis MA Type (Default: SMA): The moving average type for the BB Basis line.
Source (Default: “close”): The source of time series data.
Standard Deviation Multiplier (Default: 2.5: The deviation multiplier used to calculate the band distance from the basis line.
WICK SETTINGS FOR BOLLINGER BANDS
Wick Ratio for Bands (Default: 0.3): The ratio of wick size to total candle size for use at upper and lower bands.
Wick Ratio for Baseline (Default: 0.3): The ratio of wick size to total candle size for use at baseline.
WICK SETTINGS FOR CANDLE SIGNALS
Upper Wick Threshold (Default: 50): The percent of upper wick compared to the full candle size or candle body size.
Lower Wick Threshold (Default: 50): The percent of lower wick compared to the full candle size or candle body size.
Use Candle Body (Default: false): Toggles the use of the full candle size versus the candle body size when calculating the wick signal.
VISUAL PREFERENCES
Fill Bands (Default: true): Use a background color inside the Bollinger Bands.
Show Signals (Default: true): Toggle the Bollinger Band upper band, lower band, and baseline signals.
Show Bollinger Bands (Default: true): Show the Bollinger Bands.
STOCHASTIC SETTINGS
Use Stochastic RSI Filtering (Default: False): This will only trigger some SELL signals when the stochastic RSI is above 80, and BUY signals when below 20.
K (Default: 3): The smoothing level for the Stochastic RSI.
RSI Length (Default: 14): The period length for the RSI calculation.
Stochastic Length (Default: 8): The period length over which the stochastic calculation is performed.
Calculations
Bollinger Bands are a technical analysis tool that are used to measure market volatility and identify overbought or oversold conditions in the trading of financial instruments, such as stocks, bonds, commodities, and currencies. Bollinger Bands consist of three lines plotted on a price chart:
Middle Band, Basis, or Baseline: This is typically a simple moving average (SMA) of the closing prices over a certain period. It represents the intermediate-term trend of the asset's price.
Upper Band: This is calculated by adding a certain number of standard deviations to the middle band (SMA). The upper band adjusts itself with the increase in volatility.
Lower Band: This is calculated by subtracting the same number of standard deviations from the middle band (SMA). Like the upper band, the lower band adjusts to changes in volatility.
The candle wick signals occur if the wick is at the specified ratio compared to either the entire candle or the candle body. The upper band, lower band, and baseline signals happen if the wick is the specified ratio of the total candle size. For the major signals for upper and lower bands, these occur when the wick extends outside of the bands while closing a candle inside of the bands. For the baseline signals, they occur if a wick crosses a baseline but closes on the other side.
Other Usage Notes and Limitations
To understand future price movement, this indicator assumes that 3 things must be known:
Evidence of a change of market structure. This can be demonstrated by increased volatility, consolidation, volume spikes (which can be tracked with the MW Volume Impulse Indicator) or, in the case of this indicator, candle wicks.
The potential cause of the change. It could be a VWAP line (which can be tracked with the Multi VWAP , and Multi VWAP from Gaps indicators), an event, an important support or resistance level, a key moving average, or many other things. This indicator assumes the ATR bands can be a cause.
The current position in the price cycle. Oscillators like the RSI, and MACD, are typical measures of price oscillation (other oscillators like the Price and Volume Stochastic Divergence indicator can also be useful). This indicator uses the Stochastic RSI oscillator to determine overbought and oversold conditions.
When evidence of the change appears, and the potential cause of the change is identified, and the price oscillation is at a favorable position for the desired trading direction, this indicator will generate a signal.
ATR Bands (or Keltner Channels) are used to determine when price might “revert to the mean”. Crossing, or being near the upper or lower band, can indicate an overbought or oversold condition, which could lead to a price reversal. By tracking the behavior of candle wicks during these events, we can see how active the battle is between buyers and sellers.
If the top of a wick is large, it may indicate that sellers are aggressively attempting to bring the price down. Conversely, if the bottom wick is large, it can indicate that buyers are actively trying to counter the price action caused by selling pressure.
When this wicking action occurs at times when price is not near the upper band, lower band, or baseline, it could indicate the presence of an important level. That could mean a nearby VWAP line, a supply or demand zone, a round price number, or a number of other factors. In any case, this wick may be the first indication of a price reversal.
Shorter baseline periods may be better for short period trading like scalping or day trading, while longer period baselines can show signals that are better suited to swing trading, or longer term investing.
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.
The TradingView platform allows a maximum of 500 labels per chart. This means that if your settings allow for a lot of signals, labels for earlier ones may not appear if the total number of labels exceeds 500 for the chart.
Stochastic Levels on Chart [MisterMoTA]The values of the Stochastic Levels on Chart indicator are calculated using Reverse Engineering calculations starting from default Stochastic formula : 100 * (close - lowest(low, length)) / (highest(high, length) - lowest(low, length)).
I added options for users to define the Extreme Overbought and Oversold values, also simple Oversold and Overbought values of the stochastic, default Extreme Overbought at 100, Extreme Oversold at 0, the 20 for Oversold and 80 as Overbought, plus the middle stochastic level = 50.
The script has included a color coded 20 SMA that will turn red when the 20 SMA is falling and green when it is rising, also there are bollinger bands using 2 standard deviation plus an extra top and bottom bollinger bands with a 2.5 standard deviation.
The users can use Stochastic Levels on Chart along with a simple Stochastic or a Stochastic Rsi indicator, when the price on chart touching extreme levels and Stochastic or Stochastic Rsi K line crossing above or bellow D line users can see on chart the levels where price need to close for getting stochastic overbought or oversold.
In the demo chart we can see at daily stochastic crossed down and the price crossed down all the levels displayed on chart, and same before stochastic was crossing up from oversold and price crossed up the stochastic levels displayed on chart.
In strong bullish moves the Extreme level 100 of the stochastic will be pushed higher, same in a strong bearish move the Extreme Oversold 0 level will be pushed lower, so users need to wait for confirmation of a crossover between K and D lines of stochastic that will signalize a pullback or a reverse of the trend.
For better results you will need to add a dmi or an adx or other indicator that will show you trend strength.
If you have any questions or suggestions to improve the script please send me a PM.
Stochastic Trend Evaluator (STE)Stochastic Trend Evaluator (STE): Detailed Description
Overview :
The Stochastic Trend Evaluator (STE) is a sophisticated trading tool designed for TradingView that combines stochastic oscillation analysis with Exponential Moving Average (EMA) trends. It is tailored to assist traders in identifying potential buy and sell opportunities in various market conditions, particularly focusing on trend reversals and momentum shifts.
Functionality & Concept :
The STE is built on two core components – the Stochastic Oscillator and the 200-period EMA.
Stochastic Oscillator :
This oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period.
Settings:
- %K Length: 14
- %K Smoothing: 3
- %D Smoothing: 3
The %K line is the main line indicating momentum, while the %D line is a moving average of %K, providing signal triggers.
200 EMA :
The 200-period EMA serves as a dynamic trend indicator.
It helps in distinguishing between bullish and bearish market phases.
A closing price above the 200 EMA suggests a bullish trend, while below it indicates a bearish trend.
Signal Generation :
STE generates signals based on the interaction between the Stochastic Oscillator and the 200 EMA.
Buy Signal :
Occurs when the stochastic %K crosses above 20 (indicative of oversold conditions), and the closing price is above the 200 EMA.
Represented visually by green label-up arrows.
Sell Signal :
Triggered when the stochastic %K crosses below 80 (suggestive of overbought conditions), and the closing price is below the 200 EMA.
Indicated by red label-down arrows.
Background Color Indicator :
The background color of the chart changes to enhance visual interpretation of the market condition.
Green background for a bullish market scenario (when a buy signal is active).
Red background for a bearish market scenario (when a sell signal is active).
Usage Guidelines :
The STE is best used in markets that exhibit clear trends.
Ideal for traders focusing on medium to long-term trade setups.
Can be used in conjunction with other indicators for confirmation and risk management.
Note : The STE, being a proprietary tool, is based on a unique blend of standard technical analysis concepts and custom logic to provide these trading signals. It is designed to give traders a comprehensive view of the market momentum and trend strength without revealing the intricate details of its algorithm.
RSI MFI MultiTimeframe Oversold/OverboughtHello Traders,
This indicator is designed to easily visualize the overbought/oversold states of RSI and MFI across multiple timeframes.
The indicator is very straightforward.
The deeper the red, the closer it is to 0, and the deeper the green, the closer it is to 100. The intermediate values are rendered in a transparent gray to focus on the key regions.
However, I understand that traders may have an interest in knowing the most recent state of the oscillator, whether it was overbought or oversold.
For this reason, I have included the 'Gradient Color' option in the color settings.
By turning off this option, you can easily see at a glance which region the oscillator was in most recently.
(Gradient Color Option Off)
In addition, I know that many traders are interested in the actual RSI/MFI values across multiple timeframes.
Thus, I have displayed the RSI/MFI values for each timeframe on the far right.
Furthermore, although the name of this indicator is RSI MFI MultiTimeframe Oversold/Overbought, I have also included the Stochastic RSI as an option, as I find it personally useful.
Feel free to use it if you find it helpful.
GKD-C Alpha Trend [Loxx]The Giga Kaleidoscope GKD-C Alpha Trend is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Alpha Trend
Alpha Trend first determines the average true range (ATR) and computes up and down trends based on the ATR. It then evaluates conditions based on relative strength index (RSI) or money flow index (MFI) to define a value named 'Alpha'. The algorithm then compares the current 'Alpha' value to its previous values to determine potential buy or sell signals. Finally, it counts the number of bars (or periods) since the last buy or sell signal was triggered and uses this information generate signals.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
█ Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
Alxuse Stochastic RSI for tutorial All abilities of Stochastic RSI, moreover :
Drawing upper band and lower band & the ability to change values, change colors, turn on/off show.
Crossing K line and D line in multi timeframe & there are symbols (Circles) with green color (Buy) and red color (Sell) & the ability to change colors, turn on/off show.
Crossing K line and D line in multi timeframe according to the values of upper band and lower band & there are symbols (Triangles) with green color (Long) and red color (Short) & the ability to change colors, turn on/off show.
The ability used in the alert section and create customized alerts.
To receive valid alerts the replay section , the timeframe of the chart must be the same as the timeframe of the indicator.
Stochastic RSI (STOCH RSI)
Definition
The Stochastic RSI indicator (Stoch RSI) is essentially an indicator of an indicator. It is used in technical analysis to provide a stochastic calculation to the RSI indicator. This means that it is a measure of RSI relative to its own high/low range over a user defined period of time. The Stochastic RSI is an oscillator that calculates a value between 0 and 1 which is then plotted as a line. This indicator is primarily used for identifying overbought and oversold conditions.
The basics
It is important to remember that the Stoch RSI is an indicator of an indicator making it two steps away from price. RSI is one step away from price and therefore a stochastic calculation of the RSI is two steps away. This is important because as with any indicator that is multiple steps away from price, Stoch RSI can have brief disconnects from actual price movement. That being said, as a range bound indicator, the Stoch RSI's primary function is identifying crossovers as well as overbought and oversold conditions.
The basics
It is important to remember that the Stoch RSI is an indicator of an indicator making it two steps away from price. RSI is one step away from price and therefore a stochastic calculation of the RSI is two steps away. This is important because as with any indicator that is multiple steps away from price, Stoch RSI can have brief disconnects from actual price movement. That being said, as a range bound indicator, the Stoch RSI's primary function is identifying crossovers as well as overbought and oversold conditions.
Overbought/Oversold
Overbought and Oversold conditions are traditionally different than the RSI. While RSI overbought and oversold conditions are traditionally set at 70 for overbought and 30 for oversold, Stoch RSI are typically .80 and .20 respectively. When using the Stoch RSI, overbought and oversold work best when trading along with the underlying trend.
During an uptrend, look for oversold conditions for points of entry.
During a downtrend, look for overbought conditions for points of entry.
Summary
When using Stoch RSI in technical analysis, a trader should be careful. By adding the Stochastic calculation to RSI, speed is greatly increased. This can generate many more signals and therefore more bad signals as well as the good ones. Stoch RSI needs to be combined with additional tools or indicators in order to be at its most effective. Using trend lines or basic chart pattern analysis can help to identify major, underlying trends and increase the Stoch RSI's accuracy. Using Stoch RSI to make trades that go against the underlying trend is a dangerous proposition.
The added features to the indicator are made for training, it is advisable to use it with caution in tradings.
RSI Divergence SmoothedRSI Divergence Smoothed
This indicator is based on the RSI Divergence indicator by @InvestitoreComune.
The "RSI Divergence Smoothed" is a custom technical indicator designed to highlight divergence between two RSI (Relative Strength Index) lines: a fast RSI and a slow RSI. The divergence is then visualized on the chart, assisting traders in recognizing potential market reversals and trend continuation.
Here's a breakdown of its smoothing options added:
1. **WMA Difference**: The indicator first computes a weighted moving average (WMA) difference, which takes the difference between the WMA of half the input length and the WMA of the full length.
2. **Hull Moving Average (HMA)**: The indicator can use the HMA as a filter. HMA combines the benefits of a simple moving average and a linear weighted moving average, aiming to be faster in response to price changes.
3. **Sine Weighted Moving Average (SWMA)**: Another filter option, SWMA, weighs the data points by the sine of their position in the data set, giving more weight to the central data points.
4. **Kaufman's Adaptive Moving Average (KAMA)**: KAMA adapts to price volatility and can also be used as a filter. It's especially useful in choppy markets, adjusting the smoothing constant based on the relative volatility of the price series.
5. **Gaussian Moving Average (GMA)**: This filter uses a Gaussian kernel to weigh the data points, emphasizing the more recent data while giving lesser importance to older data. It helps smooth out the price data, potentially eliminating some of the noise.
I've personally found the KAMA smoothing to be most helpful but keen to hear of anyone's personal experiences and recommendations.
RSI divergence computations are based on the filtered price (or raw price if no filter is chosen) - the indicator calculates two RSIs:
- Fast RSI: With a default length of 5 periods.
- Slow RSI: With a default length of 14 periods.
The core functionality of this indicator is to compute the divergence between the Fast and Slow RSI. The divergence is plotted on the chart, with the color indicating its direction: white for positive divergence and red for negative.
Heuristic Bg Color Hodl/swing/scalp [Ox_kali]The "Heuristic BG Color Hodl/Swing/Scalp " is a multi-faceted technical indicator designed to aid traders across varying investment strategies such as long-term holding (Hodl), swing trading, and scalping. Optimized to run on a range of timeframes from seconds to months. Built upon an intricate layering of moving averages, market oscillators. The indicator displays a color range from light green to deep red, based on market conditions. This tool aims to provide an analytical edge by visualizing market conditions in a straightforward manner. Incorporating both trend-following and oscillatory components both trend-following and oscillating components to furnish a more rounded view of the market. Note that this indicator is best used in conjunction with other forms of market analysis and should not be solely relied upon for making trading decisions.
Key Features:
Multiple Moving Averages: Utilizes Fast and Slow MAs to identify trend momentum.
Modified RSI and MFI: Incorporates RSI and MFI to gauge overbought and oversold conditions.
Stoch RSI Indicator: Used to provide additional confirmation for trading signals.
Dynamic Background Color: Highlights potential Buy and Sell zones using background color for easier visual interpretation.
Alert Conditions: Trigger customizable alerts for Buy and Sell zones.
Functionality Analysis:
The script allows you to select the type and period for Fast and Slow moving averages. It uses these MAs to calculate an underlying trend momentum, further refined by a user-defined MA.
The RSI and MFI are used to identify overbought and oversold conditions calculated and smoothed over a user-defined period. The Stoch RSI gives an additional layer of confirmation, allowing traders to identify more reliable trading signals.
The script's main visual feature is the background color, which changes based on potential Buy and Sell zones. It provides two layers for each, enabling traders to understand the strength of the signal. Notably, the indicator is particularly optimized for identifying Buy Zones and is more functional for detecting Sell Zones when applied to larger timeframes.
Trading Application:
The "Heuristic BG Color Hodl/Swing/Scalp" indicator can adapt to various trading styles, from long-term investment to short-term trading. When the background turns green, it signifies a potential Buy Zone, ideal for entering long positions. Conversely, a red background indicates a Sell Zone, suggesting it may be a good time to exit positions or go short.
Traders can also utilize the alert conditions set within the script to receive real-time notifications, making it easier to capitalize on potential market opportunities.
Please note that the "Heuristic BG Color Hodl/Swing/Scalp" by Ox_kali is intended for educational purposes only and does not constitute financial advice. This indicator is not a guarantee of future market performance and should be used alongside proper risk management strategies. Ensure you fully understand the methodology and limitations of this indicator before making any trading decisions. Past performance is not indicative of future results.
Multiple Ticker Stochastic RSIThe Stochastic RSI is a technical indicator ranging between 0 and 100, based on applying the Stochastic oscillator formula to a set of relative strength index (RSI). Unlike the original Stochastic RSI indicator, this allows you to define up to two additional tickers for which all three will be averaged and outputted visually looking like a standard Stochastic RSI indicator. Potential buy and sell visuals are included, as well as alerts. Please note that this indicator is not meant to be used by itself.
UvRSIUvRSI (Ultra-violent RSI) is my first and most used script, it all started from here, both my trading and coding career and it is now available to the public for free.
This indicator is an hybrid indicator that (as suggested by the name) is mostly based on RSI, even if is a modified version of it.
I made this indicator once I seen multiple correlation between RSI and Stochastic RSI and I started using the basic indicators to trade.
But I wasn't satisfied by both, I think I could have a better hedge by removing some noise around, even if when you launch it it's like hyper "dirty*, stick around, because you can pretty modify anything in it.
What you see here is the hybrid RSI/Stock RSI version
The green/red line is representing the RSI, it changes from green to red given by a WMA calculation on the RSI itself
The dots you seen is where the StochRSI crossed, bullish or bearish
The purple background represent the actual Stoch RSI line, that I decided to keep plotted not in a line version to not get confused with the RSI, it's also the less important info IMHO you can find here, since the dots you seen when a Stoch cross already represent where the cross happended by the shape of the dot. (diamond shape: stong cross, dot: normal cross, cross: not the best, yellow cross: weak)
If this seems confusing, and you want to stick to another background as an info, in setting enable "alpha rainbow waves" and you background will look like this:
Alpha waves is another indicator I developed that I was able to merge into UVRSI and I think is powerful.
Is a way to apply price action theories into the RSI itself
A green cloud will appear when the indicator is bullish, or red if is bearish, it let you see when the UvRSI is kinda of exhausted by plotting a yellow apex above or below the main cloud, indicating that we are out the most latest traded areas, it suggest a possible change of direction or trend.
The indicator includes settings to change anything from the RSI to the Cloud to the Stoch to the WMA used to adapt it to any style of tradin g you prefer, I did use it andI do still prefer it over the normal RSI we are all used to since IMHO I was able to archieve a cleaner version of possible signal given by the indicator
Extreme Reversal SignalThe Extreme Reversal Signal is designed to signal potential pivot points when the price of an asset becomes extremely overbought or oversold. Extreme conditions typically signal a brief or extensive price reversal, offering valuable entry or exit points. It's important to note that this indicator may produce multiple signals, making it essential to corroborate these signals with other forms of analysis to determine their validity. While the default settings provide valuable insights, it might be beneficial to experiment with different configurations to ensure the indicator's efficacy.
Two primary conditions define extremely overbought and oversold states. The first condition is that the price must deviate by two standard deviations from the 20-day Simple Moving Average (SMA). The second condition is that the 3-day SMA of the 14-day Stochastic Oscillator (STO) derived from the 14-day Relative Strength Index (RSI) is above or below the upper or lower limit.
Oversold states arise when the first condition is met and the 3-day SMA of the 14-day Stochastic RSI falls below the lower limit, suggesting a buy signal. These are visually represented by green triangles below the price bars. Overbought states arise when the first condition is met and the 3-day SMA of the 14-day Stochastic RSI rises above the upper limit, suggesting a sell signal. These are visually represented by red triangles above the price bars. It's also possible to set up automated alerts to get notifications when either of these two conditions is met to avoid missing out.
While this indicator has traditionally identified overbought and oversold conditions in various different assets, past performance does not guarantee future results. Therefore, it is advisable to supplement this indicator with other technical tools. For instance, trend indicators can greatly improve the decision-making process when planning for entries and exit points.
12&50 RSI + %R2/50 RSI+ %R is a PineScript indicator that combines two popular technical indicators, the Relative Strength Index (RSI) and the Williams %R. The indicator plots two lines, K and D, which represent the smoothed moving averages of the RSI. It also plots the RSI with a 60-period length and the Williams %R with a 21-period length. The indicator can be used to identify overbought and oversold conditions, as well as potential reversals.
Here are some of the key features of the script:
It uses two different RSI lengths to provide a more comprehensive view of the market.
It plots the Williams %R, which can be used to identify overbought and oversold conditions.
It includes overbought and oversold levels to help traders identify potential entry and exit points.
Kalman Filtered ROC & Stochastic with MA SmoothingThe "Smooth ROC & Stochastic with Kalman Filter" indicator is a trend following tool designed to identify trends in the price movement. It combines the Rate of Change (ROC) and Stochastic indicators into a single oscillator, the combination of ROC and Stochastic indicators aims to offer complementary information: ROC measures the speed of price change, while Stochastic identifies overbought and oversold conditions, allowing for a more robust assessment of market trends and potential reversals. The indicator plots green "B" labels to indicate buy signals and blue "S" labels to represent sell signals. Additionally, it displays a white line that reflects the overall trend for buy signals and a blue line for sell signals. The aim of the indicator is to incorporate Kalman and Moving Average (MA) smoothing techniques to reduce noise and enhance the clarity of the signals.
Rationale for using Kalman Filter:
The Kalman Filter is chosen as a smoothing tool in the indicator because it effectively reduces noise and fluctuations. The Kalman Filter is a mathematical algorithm used for estimating and predicting the state of a system based on noisy and incomplete measurements. It combines information from previous states and current measurements to generate an optimal estimate of the true state, while simultaneously minimizing the effects of noise and uncertainty. In the context of the indicator, the Kalman Filter is applied to smooth the input data, which is the source for the Rate of Change (ROC) calculation. By considering the previous smoothed state and the difference between the current measurement and the predicted value, the Kalman Filter dynamically adjusts its estimation to reduce the impact of outliers.
Calculation:
The indicator utilizes a combination of the ROC and the Stochastic indicator. The ROC is smoothed using a Kalman Filter (credit to © Loxx: ), which helps eliminate unwanted fluctuations and improve the signal quality. The Stochastic indicator is calculated with customizable parameters for %K length, %K smoothing, and %D smoothing. The smoothed ROC and Stochastic values are then averaged using the formula ((roc + d) / 2) to create the blended oscillator. MA smoothing is applied to the combined oscillator aiming to further reduce fluctuations and enhance trend visibility. Traders are free to choose their own preferred MA type from 'EMA', 'DEMA', 'TEMA', 'WMA', 'VWMA', 'SMA', 'SMMA', 'HMA', 'LSMA', and 'PEMA' (credit to: © traderharikrishna for this code: ).
Application:
The indicator's buy signals (represented by green "B" labels) indicate potential entry points for buying assets, suggesting a bullish trend. The white line visually represents the trend, helping traders identify and follow the upward momentum. Conversely, the sell signals (blue "S" labels) highlight possible exit points or opportunities for short selling, indicating a bearish trend. The blue line illustrates the bearish movement, aiding in the identification of downward momentum.
The "Smoothed ROC & Stochastic" indicator offers traders a comprehensive view of market trends by combining two powerful oscillators. By incorporating the ROC and Stochastic indicators into a single oscillator, it provides a more holistic perspective on the market's momentum. The use of a Kalman Filter for smoothing helps reduce noise and enhance the accuracy of the signals. Additionally, the indicator allows customization of the smoothing technique through various moving average types. Traders can also utilize the overbought and oversold zones for additional analysis, providing insights into potential market reversals or extreme price conditions. Please note that future performance of any trading strategy is fundamentally unknowable, and past results do not guarantee future performance.
RSI with J-Line ***For ease of use, I recommend changing the J Histogram to a line indicator, then it works like the KDJ Stochastic indicator. Full disclosure, I created this script with the help of GPT. This script was inspired by the KDJ Stochastic indicator by Dreadblitz***
The "RSI with J-Line" script is essentially a modified Relative Strength Index (RSI) indicator with an added histogram component. Here's how to use the different components of the script:
RSI Line (Blue): The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and 100, and is typically used to identify overbought and oversold conditions in a market. Traditionally, readings over 70 are considered overbought, and readings under 30 are considered oversold. However, these are not strict rules and can vary depending on the market and the overall trend.
RSI Smooth Line (Orange): This is the simple moving average of the RSI. It helps to smooth out the RSI and to identify the overall trend of the momentum. When the RSI line crosses above the RSI Smooth line, it might indicate that the momentum is moving upwards. When the RSI line crosses below the RSI Smooth line, it might indicate that the momentum is moving downwards.
RSI J-Line (Red Histogram): The J-Line is an additional line that's calculated as 3*rsiSmooth - 2*rsi. It's similar to the %J line in the Stochastic indicator and is designed to provide quicker signals than the RSI or RSI Smooth line. When the histogram is above the 0 line, it might indicate bullish momentum. When it's below the 0 line, it might indicate bearish momentum.
Please note that these interpretations are standard for these types of indicators, but actual market behavior can be complex and is influenced by many factors. Indicators should be used as part of a comprehensive trading strategy, not in isolation. Always take into account other market information and indicators before making trading decisions.
Stochastic Zone Strength Trend [wbburgin]The Stochastic Zone Strength Trend indicator is a very powerful momentum and trend indicator that 1) identifies trend direction and strength, 2) determines pullbacks and reversals (including possible entry/exit conditions), 3) works on every instrument, and 4) can filter out ranges. I have some examples below on how to use it to its full effectiveness. It is composed of two components: Stochastic Zone Strength and Stochastic Trend Strength .
Stochastic Zone Strength
At its most basic level, the stochastic Zone Strength plots the momentum of the price action of the instrument, and identifies bearish and bullish changes with a high degree of accuracy. Think of the stochastic Zone Strength as a much more robust version of the RSI. Momentum-change thresholds are demonstrated by the "20" and "80" levels on the indicator (see below image).
Stochastic Trend Strength
The stochastic Trend Strength component of the script uses resistance in each candlestick to calculate the trend strength of the instrument. I will go more into detail about the settings after my description of how to use the indicator, but there are two forms of the stochastic Trend Strength:
Anchored at 50 (directional stochastic Trend Strength:
The directional stochastic Trend Strength can be used similarly to the MACD difference or other histogram-like indicators : a rising plot indicates an upward trend, while a falling plot indicates a downward trend.
Anchored at 0 (nondirectional stochastic Trend Strength:
The nondirectional stochastic Trend Strength can be used similarly to the ADX or other non-directional indicators : a rising plot indicates increasing trend strength, and look at the stochastic Zone Strength component and your instrument to determine if this indicates increasing bullish strength or increasing bearish strength (see photo below):
(In the above photo, a bearish divergence indicated that the high Trend Strength predicted a strong downwards move, which was confirmed shortly after. Later, a bullish move upward by the Zone Strength while the Trend Strength was elevated predicated a strong upwards move, which was also confirmed. Note the period where the Trend Strength never reached above 80, which indicated a ranging period (and thus unprofitable to enter or exit)).
How to Use the Indicator
The above image is a good example on how to use the indicator to determine divergences and possible pivot points (lines and circles, respectively). I recommend using both the stochastic Zone Strength and the stochastic Trend Strength at the same time, as it can give you a robust picture of where momentum is in relation to the price action and its trajectory. Every color is changeable in the settings.
Settings
The Amplitude of the indicator is essentially the high-low lookback for both components.
The Wavelength of the indicator is how stretched-out you want the indicator to be: how many amplitudes do you want the indicator to process in one given bar.
A useful analogy that I use (and that I derived the names from) is from traditional physics. In wave motion, the Amplitude is the up-down sensitivity of the wave, and the Wavelength is the side-side stretch of the wave.
The Smoothing Factor of the settings is simply how smoothed you want the stochastic to be. It's not that important in most circumstances.
Trend Anchor was covered above (see my description of Trend Strength). The "Trend Transform MA Length" is the EMA length of the Trend Strength that you use to transform it into the directional oscillator. Think of the EMA being transformed onto the 50 line and then the Trend Strength being dragged relative to that.
Finally, the colors are changeable on the bottom.
Final Notes
As with previous and future invite-only scripts, I only restrict access to 1) maintain effectiveness of scripts, 2) because I use these scripts myself heavily, and/or 3) to support myself. Additionally, I will never make an restricted indicator that is not completely original in idea, scope, and execution.
Yours,
wbburgin
Stochastic RSI with DivergencesThis indicator is Stochastic RSI using code loops* rather than pivot low/high functions.
The pivot low/high function provided by Pine Script requires a set number of bars to pass prior to locating a swing low/high.
This can mean large moves have occurred prior to a swing low having passed if the lookback range was set to five bars (5).
5 bars on a 2 hour chart is a long time and large moves may be missed.
As I don't use these functions, there is no requirement for a set number of bars to have passed prior to swing low/high positions to be identified.
This means it doesn't rely on a set number of bars to pass prior to finding a new pivot point.
* Code loops are a function which will check conditions in a range until a defined condition is met.
In this case a pivot low is a bar with no lower bars within 3 bars either side of the current checked bar.
Additional:
Lines will redraw and delete previous divergences to remove clutter on the indicator.
A table cells for alternate timeframe Stochastic RSI values so you don't need to swap between charts constantly.
How it works:
The first lookback finds an initial low/high within a small range of the current bar. (default of 10)
This low/high must be the lowest/highest point within 3 bars either side.
The second low/high must be over 5 bars prior to the recent low and a max range of previous lookback. (default of 30)
This low/high must be the lowest/highest point within 3 bars either side.
If a divergence is found, it will draw the divergence on the indicator and delete the prior line drawn.
Personal note:
Personally coded functions for my personal use, though others may find use with it.
Stochastic [Tcs] | OSCThis script is an implementation of the stochastic relative strength index (STOCH RSI) indicator
The script takes inputs from the length of the RSI, the source of the data, and parameters for the smoothing of the STOCH RSI.
The STOCH RSI is calculated by first calculating the RSI of the chosen source data, then smoothing it with an exponential moving average. The stochastic oscillator is then applied to the smoothed RSI, and smoothed again to create the final STOCH RSI.
The script also calculates a trigger value using a combination of the STOCH RSI and a volume-weighted moving average. It then plots the STOCH RSI, trigger value, and overbought/oversold levels, and fills the background of the plot based on the relationship between the trigger and STOCH RSI values.
Finally, the script plots buy and sell signals based on crossovers and crossunders of the STOCH RSI and its smoothed version.
The cross signal is stronger than the dots, in both direction and usually the best entries happen when two crosses signal on the level 0(long) or 100(short) appear after a dot signal.
Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.
Oscillator pack [Tcs] | OSCThese oscillators are a reinterpretation of some of the most famous indicators for traders, with the scope to provide higher accuracy and better readability.
The improvements are based on both calculation and visual impact, with calculations incorporating not only price but also tick volume to enhance signal accuracy.
All oscillators can be applied to different timeframes than the chart being analyzed.
This indicator includes three different oscillators: TCS Stochastic, TCS MACD, and TCS Momentum.
• TCS STOCHASTIC
The TCS STOCHASTIC removes the noise from the standard RSI Stochastic and significantly reduces the number of anticipated signals (line crosses) that the RSI Stochastic provides. Similarly, the divergences are less frequent but more accurate.
The indicator plots overbought conditions (plotted as green waves) and oversold conditions (plotted as purple waves) in a clear way.
The Stochastic channel marks the power of buyers or sellers with white (bullish) and gray (bearish) shades.
The dots on the Stochastic line indicate when buyers or sellers are in control. This helps both in trend following conditions and reversal points.
The tinier the channel, defined by the Stochastic line and signal line, the stronger the trend is likely to be.
• TCS MACD
The TCS MACD removes noise from the standard MACD and often anticipates good entry points for standard MACD crosses, while delaying bad ones.
Additionally, the indicator's performance for divergences has been improved, as it takes into account both price action and on balance volume.
It has also been developed to provide better performance at the 0 line level, which can be a good entry point when the baseline is crossed.
The histogram helps to identify divergences and the strength of the trend.
• TCS MOMENTUM
The TCS MOMENTUM WAVES indicate the trend direction based on the strength of momentum and moments of accumulation/distribution, which are highlighted with a red background.
Bullish trends are represented with white waves, while bearish trends are shown in gray.
Crosses symbol on the 0 line indicate a possible trend reversal, with green for bullish and purple for bearish.
The best entry point for a reversal is when the momentum line changes to the trend direction color after a reversal point is detected.
The momentum line and its signal line can also be used to identify entry points for a strategy, as well as the crosses of the waves.
Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.
Market Cycle IndicatorThe Market Cycle Indicator is a tool that integrates the elements of RSI, Stochastic RSI, and Donchian Channels. It is designed to detect market cycles, enabling traders to enter and exit the market at the most opportune times.
This indicator provides a unique perspective on the market, combining multiple strategies into one unified and weighted approach. By factoring in the inputs from each of these popular technical analysis methods, it offers a more holistic view of the market trends and cycles.
Parameter Details:
Donchian Channels (DCO):
- donchianPeriod: Sets the period for the Donchian Channel calculation. Default is set to 14.
- donchianSmoothing: Sets the smoothing factor for the Donchian Channel calculation. Default is set to 3.
- donchianPrice: Selects the price type to be used in the Donchian Channel calculation. Default is set to the closing price.
Relative Strength Index (RSI):
- rsiPeriod: Sets the period for the RSI calculation. Default is set to 14.
- rsiSmoothing: Sets the smoothing factor for the RSI calculation. Default is set to 3.
- rsiPrice: Selects the price type to be used in the RSI calculation. Default is set to the closing price.
Stochastic RSI (StochRSI):
- srsiPeriod: Sets the period for the Stochastic RSI calculation. Default is set to 20.
- srsiSmoothing: Sets the smoothing factor for the Stochastic RSI calculation. Default is set to 3.
- srsiK: Sets the period for the %K line in the Stochastic RSI calculation. Default is set to 5.
- srsiD: Sets the period for the %D line in the Stochastic RSI calculation. Default is set to 5.
- srsiPrice: Selects the price type to be used in the Stochastic RSI calculation. Default is set to the closing price.
Weights:
- rsiWeight: Sets the weight for the RSI in the final aggregate calculation. Default is set to 1.
- srsiWeight: Sets the weight for the Stochastic RSI in the final aggregate calculation. Default is set to 1.
- dcoWeight: Sets the weight for the Donchian Channel in the final aggregate calculation. Default is set to 1.
Limits:
- limitHigh: Sets the upper limit for the indicator. Default is set to 80.
- limitLow: Sets the lower limit for the indicator. Default is set to 20.
By customizing these parameters, users can tweak the indicator to align with their own trading strategies and risk tolerance levels. Whether you're a novice or an experienced trader, the Comprehensive Market Cycle Indicator provides valuable insights into the market's behavior.
Uses library HelperTA
TTP OI + LS signal filterThis oscillator helps filtering specific conditions in the market based on open interest (OI) and the ratio of longs and shorts (LS) for crypto assets.
Currently it works with BINANCE:BTCUSDT.P but soon I'll be adding support for more assets.
It flags areas of interest like:
- Too many longs, too many shorts in the market
- Open interest too high or too low
It accepts an external signal as a source in which case filters can be applied to the original signal. For example the external signal might trigger and plot a 1 when RSI break below 70. By connecting such signal with this oscillator you'll be able to only pass-through the ones that occur when any of the areas of interest mentioned above are also valid.
If both filter are applied it acts as an OR. For example, if too many longs and too many shorts are active, it will pass through the signal in either condition.
The results of the original signal filtered is printed to be able to later use it in any external backtester strategy that accepts external sources too.
If external source signal is disabled it will trigger any time the combined filters are returning true.
Open interest and the ratio of longs/shorts is considered too high whenever the stochastic RSI calculation of the OI or ratio LS reaches a level above 80 and too low when below 20
The ratio of long/shorts is calculated by dividing the ratio of longs vs shorts from BITFINEX:BTCUSDLONGS and BITFINEX:BTCUSDSHORTS
