PB BandPB Band is a very practical stock selection technique for investors, which can be used to judge whether the company's stock price is currently overvalued or undervalued.
The PB ratio center line of the stock must be set every time the stock is changed because of the program limitation of Tradingview.
Usually we use the 5-year median to judge whether the company's stock price has a discount.
Not all stocks are suitable for using PB Band, especially cyclical stocks.
You can also use ROE to determine whether the company is a cyclical stock.
Book
Forex Dogs Moving Averages with Distance TableThis is an indicator based on the book【Forex】ForexDog’s Vacuum Zone Trading 2021: Trading Strategy to “not lose” based on Experience and Logic written by Forex Dog (yes, this is his author name on Amazon; he is a trader popular mostly in Japan). It consists of simple moving averages which should somewhat correspond to the higher timeframes moving averages. The original was traded on a 15m chart and the periods are as follows: 5, 20, 40, 50, 80, 100, 200, 400, 640, 1600, 1920, 3200.
Then, there is a big table with a distances overview. This should give you an idea of how far each average is in ticks. The minus in front of the ticks_total signifies direction.
I expect some feedback on this because I don't think the user convenience is very with tables being so bright. My goal is to create a system that limits the number of "noodles" on the chart but still carries the information via the tables on the side.
Moving Average Length is not adjustable by design. The book says to use these quite explicitly, although the logic would work just fine with some other levels, it would not be the original strategy.
Good luck!
Fractal Corridors BacktestFractal Corridors is a strategy developed a used by Vladimir Poltoratskiy. You can learn about this in his books from the series Trading Code Is Open which I recommend reading.
The strategy allegedly works best in a high-liquidity environment with little to no impactful events. The author likes to trade EURUSD, Copper, and USDCAD, I think, was another pair.
Logic is based on his 3-bar fractals and their fractures as they come. Basically, if the fractal level gets broken by a certain number of ticks (usually 6 - 14% Average Daily Range), a corridor is built and stop-market entry will be filled.
There are other rules you will find in the book. Most importantly - avoid trading during events and extremely choppy symbols which seem to follow no logic.
Lastly, the script includes 5 different definitions of Fractal Corridor. I think Mode 5 is the correct one but I was unable to confirm that exactly as it gets a little tricky. I am willing to disclose this part of the code to other Pinecoders, but it will not be available for everyone, because that could discourage people from getting the book.
Thanks to @mincho1010 for help with testing different versions as I worked on the script.
Have a good day!
Average Daily Range TableThis is the last script to complete Vladimir Poltoratskiy's setup found in his books.
Poltoratskiy argues that you should not take any fractal corridors higher than 50% of the Average Daily Range. To be honest, even 40% is a lot, because then, your target will be 160% ADR away from your entry and one "fracture" just can't be enough to predict moves this big.
I chose a table to visually represent the indicator because it doesn't change its value during the day. It takes far less room on the chart.
There are also two simple moving averages. You may use the as an indicator if the relative volatility as of late is extremely low and in that case, perhaps, expect an increase in the coming days. They are applied to the Average Daily Range, not one day range!
STP Fractal CorridorsFractal Corridors is a lagging channel connecting Fractal highs and lows each with added/substracted pre-set value.
It is inspired and designed for Vladimir Poltoratskiy's trading style with his ST patterns (book: Forex Strategy: ST Patterns Trading Manual).
This uses fractals with one candle lower/higher on each side as in the book.
You may choose to disable fractals and view the channel only.
Good luck trading!
Fractal CorridorsFractal Corridors is a lagging channel connecting Fractal highs and lows each with added/substracted pre-set value.
It is inspired and designed for Vladimir Poltoratskiy's trading style with his ST patterns (book: Forex Strategy: ST Patterns Trading Manual).
However, to keep the charts clearer, I used William's Fractals that require two previous and following candles to be higher/lower opposed to just one as described in the book.
You may choose to disable fractals and view the channel only.
Fundamental Metric to MarketThis script is supposed to be a quite basic way to find, from a fundamental standpoint, overvalue or undervalued stocks.
The script shows either Book to Market (inverse of P/B), EV /EBITDA, Earnings Yield (inverse of P/E) or Sales to Market (inverse of P/S).
For example, P/B is calculated as Close price / Book Value per share. As a contrarian investor you generally want to buy low P/B stocks and sell high P/B stocks. The problem is when a company has a negative Book Value. This might be the case when a company has written of a large amount of goodwill, which in turn wiped out their Book Value.
Instead you can use Book to Market, which is simply the inverse of P/B. It is calculated as Book Value per share / Close price. When using Book to Market you, generally, want to buy shares with high Book to Market values and sell those with low values. Because of the calculation, companies with negative Book Value will have negative Book to Market values and is therefore easy to identify.
The Fundamental Metric to Market indicator shows a colored background between the highest / lowest point of earlier values and the current value. When the background is mainly green the stock is probably undervalued, and the opposite is true when the background is red.
THIS IS NOT TRADING ADVICE, AND YOU SHOULD ALWAYS DO YOUR OWN RESEARCH
GOOD LUCK AND HAPPY TRADING
