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M-oscillator

The Momentum of MomentumUtilizing oscillators to confirm trend continuations and reversals is a momentum traders’ bread and butter. You most likely have the RSI or MACD saved to your favorites, but have you ever considered analyzing the momentum of an oscillator itself? You would be surprised at what insights the momentum of an oscillator can show you. In this article, we will look at how the momentum of an oscillator can help parse out false signals and give you an edge in your decision-making. Below is the BTC/USDT 15-minute chart, the True Momentum Oscillator (TMO), and a 50-day EMA. We have highlighted what appears to be a short-term double top, with a weakening oscillator momentum that failed to reach or exceed the previous level. The price consistently bounced around the 50-period EMA and had cleanly broken through with a retrace imminent. Whether you aim to trade the break of the EMA or the retrace and rejection, this appears to be set up for a potential short trade. Now we take the momentum of the TMO and its signal line and plot those lines (purple and white). Another layer to this story suddenly unfolds. We can now see from the new momentum lines that this move to the downside weakened almost as soon as it began. There is now a clear divergence between the oscillator and its momentum lines. What seemed to be a solid short setup now has upside potential. We must now question our next move. A few bars later, the price broke above the 50-EMA and quickly touched it one last time and is followed by a robust move to the upside. In the current market, it is easy to lean short. Eager traders might have taken the short only to be burned by the strong move against the desired trade. Adding the layer of the momentum of our oscillator helped us read between the noise. We had a better idea of where the next chapter could take us, or at the very least, we could avoid a risky trade. This is just one example of how the momentum of oscillators can be another valuable tool in our technical analysis tool belt. This momentum offers a unique visual aid for making quick decisions when trading.
Education
by LeafAlgo
Heiken Ashi Algo and the Mass Effect Moving Average: Almost HereWell ladies and gentlemen I think I have created a monster and I'm really happy to call it the heiken Ashi algo and the Mass Effect moving average combination. Don't worry I have not been leaving you hanging. It's just been very busy and I want to make sure that this thing works beautifully for you. So what is the heiken Ashi algo oscillator? it is an oscillator much like the original heikin-ashi RSI with a ton more features. As you know a little while ago I came out with the CoffeeShop Crypto HARSI, Update to the original HARSI. And as development on that oscillator continued I had to change the name to the algo because now the oscillator actually speaks to you while trading is taking place. But as you know you should never use a single indicator by itself to enter and exit trades and understand what's happening on your chart. you should always use something as a secondary Confluence or even a tertiary confluence. Because the more confluences you have the better right? So with that I continued development on the Mass Effect moving average and you can use them beautifully in combination. In this video I don't want to get into the technical Aspect of all the details on how the oscillator and the moving average work but I do want to show you the parts that have been developed and what they mean. feel free to leave your suggestions below and I will make adjustments if needed. I'm probably going to need one more week before fully releasing both of these together and until then I'd love to communicate with you on anything to make it more fluid. With that let's take a look at my chart and see the breakdown. The Heiken Ashi Algo Double Stochastic - Uses a mean regression calculation for pullback notifications but it also adds support to knowing when a trend is in full swing. This happens when you see both stochastic ribbons touch each other while they are the same color Green touching green is a move to the upside. It matters most When it's above or below the 50 level. the other thing you can see here is when they touch and when they touch again as the same color is a clear sign of a Divergence. IBXL - Inside Bar Calculation. This will be moved to the Mass Effect MA as well Resistance / Support / are dynamic levels which change over time Bull Key level - Are Significant price or Price action levels which almost never change over longer periods of time. when I get a key level alert I Market on my chart with a thick line and I lock it in place. These are the major areas of supply and demand Zone on your chart and you want to watch them closely when price gets near these levels Pull Back - Helps you draw out targets to your trend lines. Now let's talk real quick about the mass effect moving average and what it will include. this uses a mean regression strategy so that you can swing trade- And get your confluences of when prices going to move up or down so doesn't matter if you are in an uptrend or a downtrend . Stop lost Trend color - Is this really a stop loss line which will follow your price action and depending on its color will tell you if you should be using a stop loss of a guy or a stop loss of a sell. Obviously if it's red you should be selling and if it's green you should be buying. do not use it incorrectly. Just because it changes to Green doesn't mean you by and just because it changes to Red doesn't mean you cell. It only means you are in an area where you should be buying or selling. The EMA's - it includes four different exponential moving averages which you can set appropriately to your style. The VWAP - Included in this is a VWAP Moving average. Even though the VWAP is used as a moving average against the RSI in the oscillator below, I included the VWAP in the Mass Effect moving average because once you switch to a daily chart The VWAP in the oscillator disappears but you can still have it on your chart in the Mass Effect moving average. So switching to a daily chart you will still be able to see your VWAP. The V-CROSS - This indication shows up so that you can see when the V WAP is crossing over your price level. This helps you know from point to point if you are above or below a support or resistance level and where is your price in relation to your VWAP. This will also help you notice when price is overbought or oversold. Fractals - Show you pivot points in market structure. I use them to find exit points for trades when there is no immediate swing low or high to be seen. Usually i look further left and use one of these points to exit. But they have even more application which I'll get into in another video. The Trend Ribbon - Is a bullish and or bearish colored ribbon to show you the trend that works in Confluence with your stop loss line which also changes from red to Green. when they are both the same color you are in a trend in that direction of up or down. The good thing about the trend ribbon is it's always seeking the same level as the VWAP and when it finally catches up to it that's when the trend usually goes flat and then reverses.
Education
by CoffeeshopCrypto
29
Relative Strength IndexThe Relative Strength Index is one of the most widely used tools in traders handset. The RSI is an oscillating indicator which shows when an asset might be overbought or oversold by comparing the magnitude of the assets recent gains to its recent losses. A common misconception is that the RSI draws a comparison between one security and another, but what it actually does is to measure the assets strength relative to its own price history, not that of the market. The Relative Strength Index is useful for generating signals to time entry and exit points by determining when a trend might be coming to an end or a new trend may be forming. It weighs the prices upward versus downward momentum over a certain period of time, most often 14 periods, thus showing if the asset has moved unsustainably high or low. The RSI is visualized with a single line and is bound in a range between 1 and 100, with the level of 50 being considered as a key point distinguishing an uptrend from a downtrend. You can see how the RSI is plotted on a chart on the following screenshot. J. Welles Wilder, the inventor of the Relative Strength Index, has determined also two other fundamental points of interest. He considered that an RSI above 70 indicates that the asset is overbought, while an RSI below 30 suggests an oversold situation. These levels however are not strictly set and can be manually switched, according to each traders unique trading system. Trading platforms allow you to choose any other value as overbought/oversold boundary apart from the conventional levels. How is RSI calculated? The formula is as follows: RSI = 100 – Where the RS (Relative Strength) is the division between the upward movement and the downward movement, which means that: RS = UPS / DOWNS UPS = (Sum of gains over N periods) / N DOWNS = (Sum of losses over N periods) / N As for the period used for tracking back data, Wilders original calculations included a 14-day period, which continues to be used most often even today. It however can also be a subject to change, according to each traders unique preferences. After the estimation of the first period (in our case the default 14 days), further calculations must be made in order to determine the RSI after a new closing price has occurred. This includes one of two possible averaging methods – Wilders initial and still most commonly used exponential averaging method, or a simple averaging method. We will stick to the most popular approach and use exponential smoothing. The UPS and DOWNS for a 14-day period will then look like this: UPSday n = / 14 DOWNSday n = / 14 What does the RSI tell us? here are several signals that the Relative Strength Indexs movement generates. As we said earlier, this indicator is used to determine what kind of trend we have and when it might come to an end. If the RSI moves above 50, it indicates that more market players are buying the asset than selling, thus pushing the price up. When movement crosses below 50, it suggests the opposite – more traders are selling rather than buying and the price decreases. You can see an example of an uptrend below where the RSI remains above 50 for almost the duration of the move. However, do keep in mind to use the RSI as a trend-confirmation tool, rather than just determining the trend direction all by itself. If your analysis is showing that a new trend is forming, you should check the RSI to receive additional confidence in the current market movement – if RSI is rising above 50, then you have a confirmation at hand. Logically, a downtrend has the opposite properties. Overbought and oversold levels Although trend confirmation is an important feature, the most closely watched moment is when the RSI reaches the overbought and oversold levels. They show whether a price movement has been overdone or it is sustainable, thus, indicating if a price reversal is likely or if the market should at least turn sideways and see some correction. The overbought condition suggests a high probability that there are insufficient buyers on the market to push the asset further up, thus leading to a stall in price movement. The reverse, oversold, level indicates that there are not enough sellers left on the market to further push prices lower. This means that when the RSI hits the overbought area (in our case 70 and above), it is very likely that price movement will decelerate and, maybe, reverse downward. Such a situation is pictured on the screenshot below. You can see two rebounds from the overbought level with the first move being extraordinary strong and bound to end with a price reversal, or a correction at least. . Having noted that prices tend to rebound from overbought/oversold levels, we can therefore reach the conclusion that they tend to act as support/resistance zones. This means that we can use those levels to generate entry and exit points for our trading session. As soon as the price hits one of the two extremes, we can use the Relative Strength Index to confirm a probable price reversal and enter an opposite position, hoping that prices will reverse in our favor. We can then set the opposite extreme level as a profit target.
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Education
by FOREXN1
27
Ultimate guide to trading divergenciesHey guys! In this post, we are going to learn how to trade divergencies, how to find them on the chart, and how to use them in our automated trading strategy. Introduction Divergence occurs when the direction of an asset’s price and the direction of a technical indicator move in opposite directions. Finding divergence between price and momentum indicators, such as the RSI and MACD, is a useful tool for identifying potential changes in the direction of an asset’s price and is therefore a cornerstone of many trading strategies. Types of divergencies There are 4 major types of divergencies: Bullish Divergence Hidden Bullish Divergence Bearish Divergence Hidden Bearish Divergence Bullish Divergence Price is printing lower low while the technical indicator shows higher lows. This signalizes a weakening momentum of a downtrend and a reversal to the upside can be expected to follow. Hidden Bullish Divergence Price is making higher lows while the oscillator makes lower lows. A hidden bullish divergence can signalize that uptrend will continue and can be found at the tail end of a price throwback (retracement down). Bearish Divergence Price is creating higher highs while the technical indicator shows lower highs. This signalizes that momentum to the upside is weakening and a reversal to the downside can be expected to follow. Hidden Bearish Divergence Price is making lower highs while the oscillator makes higher highs. A hidden bearish divergence can signalize that downtrend will continue and can be found at the tail end of a price pullback (retracement up). Regular divergencies provide a reversal signal Regular divergences can be powerful signals that a trend reversal is likely to occur. They indicate that the trend is strong but its momentum has weakened, providing an early warning of a potential change in direction. Regular divergences can be powerful entry triggers. Hidden divergencies signal trend continuation On the other hand, hidden divergences are continuation signals that often occur in the middle of a trend. They indicate that the current trend is likely to continue after a pullback, and can be powerful entry triggers when confluence is present. Hidden divergences are typically used by traders to join the existing trend after a pullback. Divergence validity The typical use of divergence is with a momentum indicator - such as RSI , Awesome oscillator , or MACD . These indicators focus on current momentum, and therefore trying to map out divergence from 100+ candles ago does not have any predictive value. However, changing the indicator's period influences the look-back range for a valid divergence. Always use discretion when determining the validity of the divergence. Confluences It is important to approach divergencies with a disciplined and strategic mindset. Using them in conjunction with other forms of technical and fundamental analysis - such as Support and Resistance lines, Fib retracements, or Smart Money Concepts only increases conviction of the divergence validity. Hope this helps!
CME_MINI:ES1!Education
by CleoFinance
ECONOMIC CYCLE & INTEREST RATESHello traders and future traders! The state of an economy can be either growing or shrinking. When an economy is growing, it typically leads to improved conditions for individuals and businesses. Conversely, when an economy is shrinking or experiencing a recession, it can have negative consequences. The central bank works to maintain a stable level of inflation and support moderate economic growth through the management of interest rates. What is an economic cycle? An economic cycle refers to the fluctuations or ups and downs in economic activity over a period of time. These cycles are typically characterized by periods of economic growth and expansion, followed by periods of contraction or recession. Economic cycles are often measured by changes in gross domestic product (GDP) and other economic indicators, such as employment, consumer spending, and business investment. Economic cycles can be caused by a variety of factors, including changes in monetary and fiscal policy, shifts in consumer and business confidence, and changes in global economic conditions. Economic cycles can also be influenced by external events, such as natural disasters or political instability. Understanding economic cycles is important for businesses, governments, and individuals, as it helps them anticipate and prepare for changes in the economy and make informed decisions about investment, hiring, and other economic activities. How is an economic cycle related to interest rates? Interest rates can be an important factor in the economic cycle . During a period of economic expansion, demand for credit typically increases, as businesses and consumers borrow money to make investments and purchases. As a result, interest rates may rise to control the demand for credit and prevent the economy from overheating. Higher interest rates can also encourage saving, which can help to balance out the increased spending that often occurs during an economic expansion. On the other hand, during a period of economic contraction or recession, demand for credit tends to decline, as businesses and consumers become more cautious about borrowing and spending. In response, central banks may lower interest rates to stimulate demand for credit and encourage economic activity. Lower interest rates can also make borrowing cheaper and more attractive, which can help to boost spending and support economic growth. Overall, the relationship between interest rates and the economic cycle can be complex and dynamic, and the direction and magnitude of changes in interest rates can depend on a variety of factors, including economic conditions, inflation expectations, and the goals and objectives of central banks and other policy makers. I hope you leant something new today!
Education
by m_maia14
💎5 Essential Indicators for Beginners🔵 Relative Strength Index (RSI) The relative strength index (RSI) is a popular technical analysis indicator used to measure the speed and magnitude of a security's price changes. It is displayed as an oscillator on a scale of 0 to 100, with traditional thresholds of 70 and 30 indicating overbought and oversold conditions, respectively. By evaluating the RSI, traders can identify overvalued or undervalued conditions in a security's price and determine whether it is likely to experience a trend reversal or corrective pullback. The RSI can also be used to generate buy and sell signals, as an RSI reading above 70 or below 30 can indicate that the security is overbought or oversold and may be due for a correction. 🔵 Moving Average A moving average is a technical analysis tool used to smooth out price fluctuations and signal the overall direction of the price. It is calculated by taking the average of a security's price over a certain number of time periods. By looking at the direction of the moving average, you can get a basic idea of whether the price is moving up, down, or sideways. In addition, the moving average can act as a support or resistance level. 🔵 Bollinger Bands Bollinger Bands are a technical analysis tool used by traders to plot two standard deviation lines above and below a security's moving average. The goal is to help traders identify overbought or oversold conditions, and to make buy or sell decisions based on these conditions. Bollinger Bands were designed by John Bollinger, and they are often used to signal changes in a security's volatility. In stable market conditions, Bollinger Bands can provide clear signals for buying and selling. 🔵 Stochastic Oscillator The Stochastic Oscillator is a momentum indicator that helps traders identify overbought and oversold conditions, as well as potential trend reversals. It is based on the concept that prices tend to close near their highs in an uptrend and near their lows in a downtrend. To calculate the Stochastic Oscillator, you first need to calculate the %K and %D lines. The %K line is a measure of the current price relative to the price range over a certain period of time (the "window"), and the %D line is a moving average of the %K line. When the %K line crosses above the %D line, it is often interpreted as a buy signal, and when it crosses below the %D line, it is often interpreted as a sell signal. 🔵 MACD (Moving Average Convergence Divergence) The moving average convergence divergence (MACD) is a technical analysis indicator that calculates the difference between an instrument's short-term and long-term moving averages. The MACD is typically displayed as a line graph, with a nine-period exponential moving average (EMA) of the MACD plotted as a signal line. This signal line acts as a trigger for buy and sell decisions. The MACD line is considered "faster" because it moves more quickly than the signal line, which is considered "slower." Traders use the MACD to identify changes in the strength and direction of a security's price trend. 👤 @Galerdev 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate my work , Please like, comment and follow ❤️
Education
by TradeConf
3
ADX: How to use this under-the-radar tool.Hey everyone! 👋👋 In this video, we're taking a look at the ADX Indicator. We break down how it works, how to interpret its output, common uses for it, and ways that it can help you find and screen for opportunities you like. Feel free to drop some questions below in the comments! Remember - nothing in this video constitutes advice, our only goal is to educate you about the markets and how to use our platform more broadly. Cheers! -Team TradingView ❤️❤️ Check out more information about the ADX in our help center here .
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NASDAQ:AAPLEducation
by TradingView
24
SK Chart OverlaySK Chart Overlay by Stephen Kalayjian and TradeEZ is advertised as a "cutting edge proprietary chart overlay, with built-in predictive analytics for trading" . The same set of indicators and similar chart setups were used by Stephen Kalayjian in his previous failed projects KnowVera and Ticker Tocker . A closer look into these projects reveals that these indicators are just rebranded well known indicators with a little bit of lipstick. Trade EZ MA - Welles MA (10) / EMA (19) Trade EZ 1 - MACD(12, 26, 9) Trade EZ 2 - DMI (14, 14) Trade EZ 3 - Stochastic (5, 3, 3) Trade EZ 4 - ATR Supertrend (52, 2.5) + Welles MA (5) / EMA (9) - previously known as KnowVera Trend Channel and later Ticker Tocker Trend Channel Chart setup is available at www.tradingview.com
CME_MINI:ES1!Education
by fktrdr
8
Everything I've learned about the RSI BINANCE:BTCUSDT In this post, I'll make an attempt to share everything I've learned over the Relative Strength Index (RSI) Over the past 24 months. Nothing described in this post is financial advice, it's just me, sharing thoughts and ideas with you. nb: this post is more suited for traders and investors that are already educated about the RSI Indicators. A brief introduction about the indicator itself : The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate whether it's better to buy, sell, or wait. The RSI is displayed as an oscillator (a line graph) on a scale of zero to 100. The RSI is probably the most used oscillator in finance nowadays, by both retail traders and institutions, hence meaning that when used well , it can be used as a great edge to profitability. RSI popular uses : - An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30. - The RSI can give us insights on a potential trend's loss of momentum or validity when the price pivots levels are diverging with the RSI indicator (hidden and regular divergences) - The most popular RSI length is 14 periods. My findings 1. Overbought and oversold: myth or reality? RSI's 30 and 70 levels never proved themselves to be a strong enough edge for me to be used as a standalone signal for trade entries. As an example, just look at the irregularity of the results you would get when using just these zones : My take on it is that as a price oscillator when it crosses into extremes, it simply means price momentum is at extreme levels. To me it's basically like a mountain cyclist in the middle of a race: he might very well go faster and higher, however, the quicker and higher he goes the more unlikely he is to keep up with that speed. Eventually, he might either decrease its speed or even go backward. What does this tell us ? The RSI 30 and 70 levels seem to be better used when used as timing indicators. For example, the 70 and 30 levels could be used as a filter for a trader to eliminate market noise when using a trend reversal strategy (mean-reversion). For trend traders, the levels could be used to timing signals where they'll start looking for price to do a pullback (consolidation) to get in the trend. My experience using the 30 and 70 levels as exit signals however has been better (when it comes to using it as the only signal for a trade exit). Say you are long on BTCUSD, in profit, and you get an RSI closure above 70. Well, in that case, you could exit 50% of your position and wait for the oscillator to cross down the 70 levels to exit the rest (as the overbought and oversold zones are rarely a defining factor for trend reversals and corrections). 2. Divergences in the overbought and oversold zones : The lower the time frame you are trading on is, the higher the noise when it comes to divergences, especially with volatile assets such as BTCUSD. So you might want to filter out most of the ones you see to only take the best ones. On the 15M and 5M timeframes, on BTCUSD, I find that on average about 1/3 of the divergences I see play out. However, we are not expected to take every divergence we see. Here's what has helped me get better results with divergences : - When approaching supply and demand zones, especially the higher timeframe ones, we might want to be more aggressive with the divergences we enter into. As the hit rate is not always amazing, the R:R is usually much better, and if the trade works out, it might give you great results which accounts for the low win rate. - If you want to increase your win rate, I also find that going for higher timeframes is usually better when it comes to divergences. - Take only divergences where RSI divergence's first pivot point is over 70 or under 30. Ideally, you don't want the noise to go below 60, or above 40, so that your trade has the necessary momentum to play out. - For extra confirmation, wait for a break of the noise level to enter the trade. - Regular and hidden divergences play hand in hand creating a form of momentum equilibrium. Hidden divergences always create regular divergences and vice versa. Hence a hidden divergence can be considered an early pullback warning to get in a bigger-picture trend. - Regular divergences tend to play out better than hidden divergences. This is especially true when the volume is decreasing, or after a longer period of consolidation when volatility has been contracting and might be about to expand soon. - Regular divergences in strong trends can be both a disaster and a treat. "The trend is your friend". This saying is especially true here. However, 2-3 drives of regular divergences are a great indication of a potential reversal, with enough confirmation factors to produce (often time) a great entry. - The angle of the trend line between divergences pivot points, both on the price chart and the RSI, can be a good indication of the severity of the divergence occurring. - The ideal lookback period for detecting divergences for me has proved to be between 5 and 28 bars. (Below 5 bars is not enough to confirm a true pivot point for me and above 28 bars has probably already played out in past price movements). - Like all edges, using a divergence strategy always produces better results when used in confluence with other signals. I find the best confluences happen when divergences occur: alongside a stochastic cross, near medium-slow moving averages, near horizontal supply and demand zones, alongside volatility expansion, when the volume is decreasing (meaning market makes are in disagreement with the move occurring), near Bollinger bands 2.5 to 3 standard deviations (period 20). - Convergence between your timeframes and higher timeframes is key to understanding how to better choose your trades. Try to play the big divergences but enter smaller timeframes divergences. - When you lose a divergence trade, don't get disappointed. Jump back in because often time, and price will need to do several divergences before getting in your desired direction (however, be careful not to jump in tilt mod. Know your win rate and R:R and keep your money management serious. You'll get blown out if you start tilting on this, especially if you trade reversals with divergences, as it's difficult to get the right timing every time). 3. RSI as a trend filter? - I've found that in trending markets, when RSI's Exponential Moving Average (EMA) crosses above the 50 line, it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - I've found that in trending markets when the RSI line crosses above the EMA (I use a 12 period), it's an indication of an uptrend and vice versa. However, this is less effective in ranging markets as there's more noise, hence more invalid crosses. - As an indication of the trend's direction, I don't find any value in using bullish and bearish control zones. The only use I can find them is when using them for divergence levels filters. This is the end of the first post of this 2 parts series. There's just so much more you can discover about this indicator that it simply cannot be constricted to a few lines of writing. However, you are welcome to take a few of my findings and go test them out using replay and backtesting. See for yourself, and find your balance. Most of my learnings have been made through screentime, trial, and error, backtesting, mistakes, and research. Have a good day, Arthur Girard
Education
by arthurgirard15
HOW-TO: Using Data Gathered in Divergence BacktesterHello Everyone, Here is a small video describing the idea on studying divergence data based on divergence backtester script. To understand further, you can study some of my older scripts on divergence. You can find them under my profile: www.tradingview.com Filter only open source scripts so that you will see only free to use scripts with code available. This is not a fully fledged strategy. But, just means for studying the impact of divergence data on price action. Please let me know if you have any questions.
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Education
by Trendoscope
7
RSI Supertrend Moving average in Heiken Ashi Algo OscillatorDownload this Oscillator Free: My Tradingview Profile: www.tradingview.com Welcome to the coffee shop everyone this is your host and baristo Eric, You know what we do around here so pull up a seat at the table and get ready for your caffeine overdose . I am happy to say that as of today we are at the final stage of development basically on The Heiken Ashi Algo Oscillator. It has proven to be a very powerful tool, very popular,, and very easy to use. up until now I have basically been showing you what all the parts do and what they mean because I figure you can't necessarily use a tool unless you know what it's settings are for. NOTE ABOUT SUBTITLES: I really believe that this new update will be a scalper's wet dream when it comes to being able to sit there and stare at your chart watching the oscillator and waiting for a break in the trend so that you can stay in your trade or you can exit your trade. That being said this being the final development that needed to be done with this oscillator, any videos that you see related to the algo from me are going to be strategy videos. So let's get into the final change that I have just made and uploaded to Tradingview. The final change as of right now is that the RSI Moving Average is now a colored line. It appears red when your average on your RSI is trending down (lower values) , and green when it is trending up (higher values). It also takes into consideration the momentum of the trend so it will not effectively change colors until the previous momentum is lost and volume has changed enough to the opposing side. For example you could have heiken Ashi candles traveling flat on your RSI but you're RSI moving average is still red. It will not change to green until the momentum starts moving the opposite way. So not only will you know that the previous momentum is lost but you will also know when it changes direction. As you know in the previous update to the RSI and the RSI moving average have a trend Cloud that appears behind it which switches from red to Green evenly. However there is a third black color that appears from time to time in that Trend cloud. This black color means a loss of momentum. Trend Cloud Meaning: Trend Cloud (Black) = No Momentum and Volume Trend Cloud (Green) = Bullish Momentum and Volume Trend Cloud (Red) = Bearish Momentum and Volume Price will run flat if: If the Trend cloud is Back, while the RSI Moving Average is green, you have lost momentum to the upside. If the Trend cloud is Black, while the RSI Moving Average is Red, you have lost momentum to the down side Trend is changing direction If: Trend cloud was one color but slowly blended to opposite color without changing into a back color. Now with the RSI, moving average being able to switch between colors you can tell when the new trend has started or the old trend has restarted because, just because there was a loss in momentum of the previous Trend doesn't mean it's just going to switch the other way and it doesn't mean that it's going to continue the same way however the moving average will tell you what it's doing along with the trend cloud. If you were previously in an uptrend and then you get a black cloud Showing behind your candles you know that you have a loss in momentum. If you look at your moving average, you will see that it will switch to the opposing color however if it then switches back to the original color then all you had was a pause in your Trend and is going to continue the same way it was going before. Iif the moving average has switched colors when the trend Cloud went to Black and the moving average stays that second color you know that your trend has changed Direction. The RSI Formula explained: Trading Like the Banks Do: Trading Trendlines: Using Support and Resistance Alerts to draw trendlines Range Trading with the Heiken Ashi Algo Setting Alerts on the Heiken Ashi Algo Oscillator
Education
by CoffeeshopCrypto
5
Heiken Ashi Algo Volume Scalping StrategyHeiken Ashi Algo Volume Scalping Strategy Welcome everybody this is your Barista Eric should I be calling it a baristo cuz Barista sounds kind of effeminate and you can tell by my voice I am not a woman. So we got something interesting. Today I'm going to be sharing with you a volume scalping strategy that you can use with the heiken Ashi Algo. This is a wonderful strategy because the algo has a lot of features that plot onto its oscillator and you can actually turn most of them off you only need basically three things showing up. To do this all you need are: Heiken Ashi Candles The RSI Moving Average and RSI (relative strength index line) So let's go into the settings. I'll show you what to do and you'll be able to get started in this in just a few minutes. Open tradingview and go to the indicators and I'm going to type in Heiken Ashi Algo. There you will see it under the Community scripts by @coffeeshopcrypto the "Heiken Ashi algo Oscillator" Here is a link to it (Click there) Add it to your chart and let's go to the settings. In the style tab of the settings You can turn off both of the stochastics. Also you'll notice a couple of grade out boxes to things that are not selected. The RSI upper band and the RSI lower band. These print the 70 and the 30 level on your oscillator so turn them both on. If the other bands distract you you can turn them off. These would be the 40 and 60 levels. The last thing you want to do here is change your RSI to yellow and your RSI moving average to red. Now let's go to the inputs tab and change your RSI to 18 and RSI Moving average to 36. If you're trading on a higher time frame than one hour you should probably change them to 21 and 50 as a maximum.. If you're trading on a 15 minute or lower time frame you should set them to about 12 and 14 or or lower. Also change your RSI moving average type to a volume weighted moving average. *******************Special Note****************** I want to address a couple of questions I got since the release of the Algo and one of the questions that I tried to cover in the previous couple of videos was when someone is going to ask me "what are the best settings at certain time frames?" You have to understand there are no best settings because if you're trading in crypto against the US dollar or crypto against For example another crypto then things move differently. your settings for the US dollar can be set one way but if you're trading crypto against crypto pairs you need different settings. also the settings are really tied to the market that you are in. if you are trading on the S&P or indices or Futures your settings are different for all of those things they are not the same for either one of them and once you get into crypto the markets are so volatile that you need to watch things closely/ so I cannot tell you what are the best settings because the best settings do not exist. Choose the settings that work well for you and if they are not working well it's because the market is changing just a little bit and you need to start developing additional strategies. You can not just have one strategy that you use all the time because that will not work all the time. Markets change. They have four different versions and you need to have several strategies that will be able to address each one of those types of Market. One of the reasons that I've created this particular indicator is because it allows you to develop several different types of strategies and this particular video is one of those strategies that you can practice and you can use from time to time when you are seeing extremely changing volumes in the market that you're in. This way you have another piece of ammunition in your pocket that you can use when your current strategy or whatever you used to using isn't working as well as it should be.
Education
by CoffeeshopCrypto
15
What is the Heiken Ashi Algo OscillatorWhat is the "Heiken Ashi Algo Oscillator" Well here is a link to it It is an indicator that measures volume and momentum. It plots and RSI as Heiken Ashi candles. It includes seven different types of moving averages against the relative strength index. Each one of these moving averages calculates faster than the previous, starting from the SMA to the LSMA. It includes a hidden vwap as a moving average to confirm Trend Direction. It uses a "Double Stochastic Strategy" designed by @CoffeeshopCrypto The first Stochastic being called the "slow stochastic" and the second stochastic using a hull moving average calculation and it's K% and a separate multiplication in its D%. ------------------------------------------------------------------ Welcome to the coffee shop everyone. This is your host and Barista Eric as always serving up something piping hot and frothy unless you just like a chai tea which tastes like a hot Garden in a cup. Chai is definitely not my cup of tea but I do like drinking tea over coffee . So if you feel like sending me something then let it be either coins on tradingview or it could be a few tea bags of your favorite. Okay so I'm keeping the intro very short today and I know my videos tend to be pretty long and I max out at the 20 minute marker but I do like to keep you people informed and today is the information you've been waiting for. today is the release of the Heiken Ashi Algo oscillator. There is definitely not enough time in this video To break down all the different ways you can use it for trading because it is available to so many different styles and strategies so in today's video I'll show you what all the parts do what all the parts mean you can take it and added to your chart and start running with it. In the meantime day-to-day you will see new strategies posted in my profile. Each one depicting a different trading strategy and trading style that can you can use against the Heiken Ashi Algo Oscillator. I figured it would be easier this way anyway to break up the trading Styles across different videos so that there is no confusion and you won't have to worry about watching two different styles in the same video at least . So without further Ado let's grab our coffee and tea and raise our glasses in a universal, community style toast and get onto the oscillator and all of it's moving parts. This is where you need to play the video and listen, because it would be TOO MUCH to type and too much to read. So let's go. ----------------------------------------- For my trading style, the HA candles have been Recalculate it again because I come to find out that the AHA candles are based on a 2. Calculation which means if my candles are set to 9. IRS I should be twice of that and my RS I'm moving average should be two times at so my candles are 9 my RS I is 18 which is 9 * 2 and my are as I'm moving average is 36 which is 18 * 2. I just wanted to point this out before anyone starts asking me what are the best settings. these are not necessarily the best they are simply the ones that work for me. HA Candle: These are the colors, Wicks, and borders, as they are plotted against yourRSI. they are simply a representation of the RSI signal but you can have your RSI set at one length while your candles are set at another length. RSI: No description needed here this is simply the relative strength index long exit - This is a signal to tell you the uptrend is going to pause or stop. short exit - this is a signal to tell you that the downtrend is going to pause or stop Resistance levels - This is a signal to tell you where you can set the beginning of a trend line and the level of resistance on your chart. support levels - is this a signal to tell you where you can set the beginning or end of a trendline and set a support level on your chart RSI Moving average - this is the signal line of your moving average against your RSI and you can choose up to 7 different calculations. Buy and sel Signals - These signals are triggered based off of certain criteria happening in the oscillator related to volume and Trend Direction. **WARNING** You should take BUYS when you are in an uptrend and SELLS in a downtrend. (IE 200ma below the 50 ma for uptrend and 200 above 50 for downtrend) Slow stochastic RSI ribbon - this prints a visual representation of the regular stock a stick on your oscillator. Fast Stochastic RSI ribbon - This is the second part of the double Stochastic strategy which prints a fasterStochastic on your chart which uses part of a hull Moving Average calculation. Finally ALERTS have been included. To use the alerts go to your alerts Tab and click create alert. Under "Condition" select Heiken Ashi Algo In the drop-down below it you can select: buy signal to enter long Sell signal to enter short Soft Long or Short exit, if you want to get out of your Long or Short trade when the trend begins to change Hard Long or Short exit, Is when you definitely should get out of your long or short trade. there is also an alert set up if you want to be notified about new resistance levels or new support levels. Just select the one you want and adjust the message that will arrive to you via email, phone, or on screen. So........ did we do a good job? Let's talk in the comments below.
Education
by CoffeeshopCrypto
12
RSI: The King of IndicatorsIf I had to choose one (and only one) indicator to use for the rest of my life, it would most certainly be the Relative Strength Index (RSI). Anyone who's spent more than 30 seconds on TradingView understands, in the most basic sense, that RSI indicates when an asset is over- or undervalued (overbought or oversold). But this delicious little oscillator can do a lot more than that. In fact, you could develop a winning trading strategy based entirely on RSI signals and nothing else (though, why would you?). Here are some of my favorites: SMA Crossovers TradingView's built-in RSI indicator now comes equipped with a Simple Moving Average applied by default. Like other MA crossover strategies, RSI SMA crossovers can be a very effective tool. Note that this sort of strategy is probably best implemented programmatically, though. But if you do intend to trade these signals the old fashioned way, you'll definitely want to work on a high time frame. Eventually I intend to write a PineScripts strategy to do some back-testing and get some win/loss rates and ratios for different RSI and SMA lengths. Divergences Who doesn't love RSI divergences? They're easy to spot, and very reliable on a variety of time frames. Just look for local highs/lows in the RSI that "diverge" from the corresponding local highs/lows in price. Below is an example of a divergence and a hidden divergence. There is a bearish and bullish flavor of each type of divergence. Overbought/Oversold conditions Probably the most common use of RSI is to determine whether and asset is overvalued or undervalued. In general, an asset is considered overbought when RSI is greater than 70, and oversold when RSI is less than 30. This is a dangerous rule to follow blindly though, because the rest of the context is important. Here are a couple tips/caveats: (1) Each asset has a different "normal" RSI range. i.e. one asset might be overbought at RSI = 70, but another could ride well above 70 for some time before coming down to earth. (2) The macro trend matters. A lot. Zoom out and see which way the market is trending. In a bull market, RSI may ride close to the oscillator's upper bounds and not touch "oversold" territory for a while. And vice-versa in a bear market. If the market is ranging, you can feel better about trusting the 70/30 "rule". Take a look at the charts below. In one, you see a bitcoin bull market, where BTC soars way above 70, and stays above the midpoint (50) for the duration of the run. If you had sold when bitcoin first hit "overbought" territory >70, you would have missed out on >3800% gains! In the other chart, you see the S&P500 during the 2008 bear market. We see values <30 a number of times without ever seeing anything above 70. So if you bought when the index first went below 30, you would have potentially exposed yourself to almost a 50% decline. Breakouts/Breakdowns Just like patterns in price, RSI follows trendlines and patterns as well. RSI breakouts aren't much help on their own (as it's often too late by the time you spot one), but they can help confirm price breakouts, or increase your confidence in another trading idea. What are your favorite RSI use-cases? What other indicators does it work best in confluence with? Do you have another favorite indicator that you think can contend with the king? Feel free to share your thoughts in the comments.
INDEX:BTCUSDEducation
by reees
26
Trendline Trades w Heikin Ashi Algo Oscillator + a surpriseWelcome to the coffee shop everyone. This is your host and Barista Eric. This podcast is designed to teach you The right and wrong way to get in and out of your trades because I'm not just going to tell you the right way, I'll also show you the things that you should not do. It's also a platform where I can release my versions of popular indicators. I'll show you how to use them and of course from time to time I will call out really bad strategies because I don't want you guys to have that information. feel free to share this content anywhere you choose online and of course do not fall for scams because I will not contact you for any type of currencies lending or any financial help in any way online. That being said, if you see me on the street and you want to give me a dollar all the power to you I'll be more than happy to accept it. Also don't get worried if I do send you a message it's usually just a thank you for starting to follow me because everyone that follows me I do have to follow them back so that I can see what you have going on. All that being said in today's video I am going to show you how to draw trend lines and channels using the support and resistance Indications in Heikin Ashi Algo Oscillator. Now you may not have this oscillator on your charts yet but for now you can use the CSC-HARSI. here is a link to get that from tradingview and add it to your chart So let's go to Tradingview and open it up on your desktop or on your phone. go to the indicators tab type in coffee shop crypto there you will find only one indicator called the CoffeeshopCrypto HARSI 2022 Go ahead and add that to your chart and make sure it's added to your favorites Now in its default settings that should work just fine for you because the default settings allow you to use the VWAP as a moving average against your RSI. This particular tutorial I'm picking off the resistance indication that came up and then it was followed by several support indications. This simply means that resistance was going against your price the Bears were pushing against the Bulls so prices moved up and met resistance and it was being pushed back down. Take care to watch the whole video for the strategy on how to use this with Trend Lines. SURPRISE. I am releasing the Heikin Ashi Algo OScillator later today as is. And you can use it with some of the indications that are available. I think it's time I release it and stop trying to be so perfect with it. It will have the S/R/ levels Aerts to exit your short or long position Range signals - To tell you when you have entered into a RANGE Bulls / Bears Rejection Signals - Letting you know its a STRONG rejection of the current bullish or bearish trend. Double Stochastic Strategy - A video will be created on how to use this on a later date. I'm also leaving the double stack castic strategy in there but you may not know how to use it just yet and I will create a video on that on a later date so in the meantime when you see it you could just turn it off if you want to. Alerts for Exit Short and Exit Long - these messages will be sent to your phone, email and desktop to let you know you should exit your current trade of Long or Short.
Education
by CoffeeshopCrypto
7
Elliott Wave Cheat SheetAlthough Elliott Wave Theory is vast subject and needs in depth study, I'm sharing a cheat sheet for those who have started to learn about the same. This should help them in understanding things better. Also, try to correlate the cheat sheet with Nifty50 daily chart and be amazed to see how nicely the Elliott wave principles were followed there in the recent wave. At the same time, please use discretion while following this cheat sheet as this sheet covers only the basic aspects of Elliott Wave principles. Keep (l)earning and keep sharing!!
NSE:NIFTYEducation
by MalayKJ
3
Using S/R levels to draw trend lines (and) the CSC-HARSI UpdateWelcome back to the coffee shop everybody. This is just a quick update to the csc-HARSI indicator, And a video to show you how you can use its indications to draw your trend lines so you know when your price or trend is broken. So if you already have the csc-HARSI on your charts go ahead and delete it from your chart and then go through tradingview indicators and look for coffee shop crypto or the CSC-HARSI 2022. Okay okay you talked me into it here's a link. This is key to know when you are not only breaking your support and resistance levels with price but when price also breaks your trend lines which is a secondary confirmation. Add to that you can see when price will actually retrace and come back and test off of your trend line. Which is a problem that many Traders have because price actually pulls back to their support or resistance level right through it slightly and put them into fear make them get out of their trailer early thinking that price is going the other way but it's actually tracing back to a trend line that is behind your support or resistance level. This update in the CSC-HARSI comes because I was working on something in the Heiken Ashi Algo and decided to take a piece of the code that I just came up with and put it into the CSC- HARSI so you can use it now instead of waiting for the ALGO to be ready. Take a look at the video and let me know if you have any questions whatsoever. Also in this video I got a little carried away showing you my double sarcastic strategy based off the regular stochastic RSI and a stochastic which I have created. Both of the stochastics will be available in the Heiken Ashi Algo. It will not only tell you that price is moving in a particular direction but it will also tell you as soon as the momentum of that direction is diminishing so you can get out before getting caught in a trap or in a range. Knowing what to look for in this double stochastic strategy will also help you avoid getting into a bullish or bearish move that looks like the market is moving in a particular direction when it's actually moving into a liquidity trap. Don't bother going online looking for this particular double stuck hectic strategy or indicator because it doesn't exist. The only reason it doesn't exist is because again it's using a secondary stochastic which I have created Which will only be available in the Heiken Ashi Algo Oscillator.
Education
by CoffeeshopCrypto
2
Double Tops & Bottoms - Advanced Analysis | EducationalNo chart pattern is more common in trading than the double bottom or double top. This pattern appears so often that it alone may serve as proof positive that price action is not as wildly random as many Traders claim. Price charts simply express trader sentiments, demand, and supply, so the double tops and double bottoms represent a retesting of temporary extremes. If prices were truly random, why do they pause so frequently at just those points? To traders, the answer is that many participants are making their stand at those clearly demarcated levels. 1. Double Tops Double tops are a bearish pattern commonly found in uptrends and characterized by two consecutive peaks located at an approximately similar level, separated by a trough. Here we can see a good example of a Double Top in GBP/USD in August 2022, in the recent past. The Price forms a "V shape" as a Double Top, then there is a breakout of the confirmation Line, we can call this also a " Neckline " for a continuation of the price. 2. Double Bottoms Double bottoms are a bullish pattern commonly found in downtrends and characterized by two consecutive troughs located at an approximately similar level, separated by a peak. The Double Bottom is always formed by a V shape, the figure it's just a Mirrored shape of the Double Top. Also for the Double Bottom, there is a breakout confirmation Line. 3. Take Profits For double tops, the take profit is determined from the height Peak to the trough. This measurement will be copied from the confirmation line ( breakout )to below. For double bottoms, the take profit is determined from the lowest trough to the peak. This measurement will be copied from the confirmation line ( breakout ) to the upper.r.
Education
by FOREXN1
25
CSC-HARSI UPdate: Bull Rejection / Bear RejectionWhat's new in this indicator Support and resistance levels have been re-coded to give you a cleaner visualization. as always when you see a support indication you set the support level at the close of the candle. if they cancel this red you place it at the bottom. If the candle is green you place it at the top. You always place the S/R level at the close of the candle. Two other indications added to the script are called, Bull Rejection and Bear Rejection. --Bull rejection shows up when there's a bullish rally and then there's enough resistance to stop that upward move. --Bear rejection is when there's a bearish move and there is enough resistance to stop that downward move. If you get a resistance indication followed by a bullish rejection indication you should exit your trade. Because it's showing you resistance at that level and enough pushing back down. If you get a support indication followed by a bearish rejection you should exit that short trade because it's showing you there is support at that level and enough force pushing to the upside.
Education
by CoffeeshopCrypto
3
The Heiken Ashi Algo Oscillator (Range Trading technique)You're watching this video because you keep getting stop-hunted. You feel like every time you enter a trade to the market it immediately goes the other way and you get this little spike out the top or the bottom of a candle that knocks you out of your position and takes out your stop loss. This is most likely due to Market manipulation on your charts which is making you think that price is moving up or down and instead you have just entered a trade at the beginning of the consolidation or distribution phase. Don't worry you're not alone this happens to a lot of novice and intermediate Traders. I really wish there was an indicator that would tell you as soon as you have entered into a ranging Market but usually you can't tell that until you've looked at your charts for a couple of hours and realize that price hasn't moved above or below a certain number. Well you're in luck because I just finished coating an indicator that will tell you that you have entered into a consolidation or distribution phase at the beginning. In today's video I'm going to show you how to do range trading using the Heiken Ashi Algo Oscillator available for free on Tradingview. Usually after price makes a big rally to the upside or to the downside you can expect that price is going to go into either consolidation or a distribution phase. On your charts this will look like where price runs flat for what could be an extended period of time. The rule of thumb is that after a very strong move to the upside or downside the consolidation period can be lengthy. If there is a short rally to the upside or downside then the consolidation or distribution phase would be a short period of time. So lets get into adding the indicator, and setting up your chart to trade in ranges using alerts from the Heiken Ashi Algo Oscillator. Open up TradingView Go to your indicators tab and search for Heiken Ashi Algo Oscillator and add it to your chart. In the settings make sure you've turned on the following: Range Range Break Long Range Break Short Support Levels Resistance Level There are a number of other alerts available in the Oscillator but we don't need them for this purpose. And as always, use the default settings. When you get a RANGE signal (Which looks like a line between two left and right arrows.) You want to grab your Parallel Channel Tool. You should have already set your support and resistance levels when you opened your chart for the day so look left of your candle. There should be a support or resistance alert right there. On my chart I have a Resistance level. So I'm going to use this line at the top of my parallel Channel Take your parallel channel tool And place it on that support resistance level just left of the candle . I'll drive it far to the right and make sure it's straight and click again. now drag it down to the closest support level and click again. You have just drawn your range. Also on my chart you can see here that I have 1 range indication and then just after it I have a second range indication. When you get a second one you disregard the first one because price has now entered into a new range. What you are looking at is the Centerline of your range. In this particular instance the first Range Line is lower than the second one so to correct this I have to take the top of my parallel Channel and drag it up until the dotted line is at the close of the candle with the new Range signal. do this by driving the top of the box and not changing the bottom of a box. In this case you can see how the bottom of the parallel channel is still sitting on my support and resistance level to the bottom but the top of the parallel Channel is above my support and resistance level And this is fine. The way you use this is by imagining your parallel channel has three levels. Level 1 = The top line Level 2 = The midline Level 3 = The bottom. Also you must respect any Support and Resistance levels traveling THROUGH the Parallel Channel What you are looking for is any candle that closes its majority size across one of these lines here are some examples: Please watch the video for a perfect visualization of how to do this. Directions of Trades in Range Trading. Follow the arrows. You ONLY trade to the INSIDE from the top or bottom of the channel. You also trade either up or down FROM the midline, depending on the majority close of the candle. Again also respect your support or resistance levels when a candle is crossing them.
Education
by CoffeeshopCrypto
7