OPEN-SOURCE SCRIPT
Longable/Shortable
Updated
This indicator advises intraday traders which direction NOT to take trades in, based on recent action in the daily chart. Works on any timeframe.
This is not a buy/sell indicator - it is a FILTER that is meant to SUPPRESS trades you may have wanted to take. Like a Daily Bias, but with a neutral position (no bias).
The indicator shows when NOT to take longs and when NOT to take shorts.
So you need an existing strategy to combine this with.
By default, the last 3 days are taken into account (smoothing=3). Change the threshold to get fewer or more warning signals.
The symbols are very simple:
(Each signal is valid for the next candle. After that it expires.)
The current bias is also shown in the bottom right corner.
How it works: We look at which parts of the last candle overlap with the current one. When the new candle's low is far above the last candle's low, it is an indication not to go short. Similarly, when the new candle's high is far below the last candle's high, it is an indication not to go long.
For each direction, we calculate this as a percentage value (what percentage of the last candle is not overlapping the new one), smooth the value and give a signal when we are above the set threshold.
This is not a buy/sell indicator - it is a FILTER that is meant to SUPPRESS trades you may have wanted to take. Like a Daily Bias, but with a neutral position (no bias).
The indicator shows when NOT to take longs and when NOT to take shorts.
So you need an existing strategy to combine this with.
By default, the last 3 days are taken into account (smoothing=3). Change the threshold to get fewer or more warning signals.
The symbols are very simple:
- Green triangle = Longs only
- Red triangle = Shorts only
(Each signal is valid for the next candle. After that it expires.)
The current bias is also shown in the bottom right corner.
How it works: We look at which parts of the last candle overlap with the current one. When the new candle's low is far above the last candle's low, it is an indication not to go short. Similarly, when the new candle's high is far below the last candle's high, it is an indication not to go long.
For each direction, we calculate this as a percentage value (what percentage of the last candle is not overlapping the new one), smooth the value and give a signal when we are above the set threshold.
Release Notes
Minimal fixRelease Notes
You can now disable the triangles in the Style tab if you only want to see the current bias.Release Notes
- Fixed the realtime label to reflect the last confirmed candle (not the current candle).
- Improved the value display in status line/data window to show the exact "longability" and "shortabilty" scores (positive = direction is tradeable, negative = direction is not tradeable).
Release Notes
Hiding triangle for non-confirmed candle (clearer that way)Release Notes
Showing the unconfirmed values in the status line so you can anticipate what the signal for the next candle may be.Release Notes
Minor fix for status line valuesRelease Notes
Reversed the meaning of the threshold value. Thus, the default value has also changed (from 65 to 35).This has 2 advantages:
- The maximum value of the "longable" and "shortable" scores displayed next to the indicator is now identical to the threshold value.
- The parameter is now much easier to explain: Threshold 35 means that 35% of the top and bottom of each candle must be revisited by the next candle - otherwise a warning signal is generated.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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