Equity CurveAn equity curve is a graphical representation of the change in the value of a trading account over a time period. The equity curve is a direct reflection of a trading strategy's effectiveness. A consistently upward-trending equity curve indicates a successful strategy, while a flat or declining curve may signal the need for adjustment.
This indicator takes traders daily account values as a comma separated list, and creates an equity curve and simple moving average of the equity curve. This serves as a mirror reflecting the outcome of past actions and decisions, guiding traders in fine-tuning their strategies, managing risk more effectively, and ultimately striving towards a consistently profitable trading journey.
New equity values should be added to the end of the current list. A space or no space after the comma has no effect.
Importance of the Equity Curve
Strategy Evaluation: The equity curve is a direct reflection of a trading strategy's effectiveness over time. A consistently upward-trending equity curve indicates a successful strategy, while a flat or declining curve may signal the need for adjustment.
Risk Management: Monitoring the equity curve helps traders to see the impact of their risk management practices. Sudden drops in equity could highlight instances of excessive risk-taking or inadequate stop-loss settings.
Performance Benchmarks: Comparing the equity curve against benchmarks or desired performance goals allows traders to assess if they are meeting, exceeding, or falling short of their trading objectives.
Psychology: Trading is as much about psychology as it is about strategy. A visual representation of one's equity curve helps maintain discipline, encouraging adherence to a trading plan during downturns and preventing overconfidence during upswings.
Having this data visually allows traders to see which category of trader they fall into.
Unprofitable
Boom or Bust
Profitable
Statistical Data
The indicator not only plots the equity curve and moving average, but includes the option to display the highest value reached by the equity curve, the percentage difference from the peak, and performance over selected periods (All Time, YTD, QTD, MTD, WTD).
Historical Analysis
The Equity Curve Indicator is not just a tool for real-time monitoring of trading performance; it also serves as a powerful instrument for conducting historical analysis. By analyzing the equity curve in conjunction with historical market conditions, traders can identify patterns or triggers that resulted in significant gains or losses.
For example, the chart below shows the equity curve overlaid on periods of net new highs / lows. The equity curve experienced declines while the market was showing net new lows or choppy periods (represented by a red or white background), while most of the equity gains were made while net new highs were present (green background).
This retrospective analysis helps in understanding how different market conditions impact trading strategies and performance.
Trading the Equity Curve
All trading strategies produce an equity curve that has winning and losing periods. In the example above, the trader could introduce a simple rule to lighten up on long positions or move to cash during periods of net new lows.
Another simple rule could be introduced to stop trading if the equity curve falls below the moving average, until favorable market conditions return again.
This indicator is intended to be used on the daily timeframe.
Canslim
Danger Signals from The Trading MindwheelThe " Danger Signals " indicator, a collaborative creation from the minds at Amphibian Trading and MARA Wealth, serves as your vigilant lookout in the volatile world of stock trading. Drawing from the wisdom encapsulated in "The Trading Mindwheel" and the successful methodologies of legends like William O'Neil and Mark Minervini, this tool is engineered to safeguard your trading journey.
Core Features:
Real-Time Alerts: Identify critical danger signals as they emerge in the market. Whether it's a single day of heightened risk or a pattern forming, stay informed with specific danger signals and a tally of signals for comprehensive decision-making support. The indicator looks for over 30 different signals ranging from simple closing ranges to more complex signals like blow off action.
Tailored Insights with Portfolio Heat Integration: Pair with the "Portfolio Heat" indicator to customize danger signals based on your current positions, entry points, and stops. This personalized approach ensures that the insights are directly relevant to your trading strategy. Certain signals can have different meanings based on where your trade is at in its lifecycle. Blow off action at the beginning of a trend can be viewed as strength, while after an extended run could signal an opportunity to lock in profits.
Forward-Looking Analysis: Leverage the 'Potential Danger Signals' feature to assess future risks. Enter hypothetical price levels to understand potential market reactions before they unfold, enabling proactive trade management.
The indicator offers two different modes of 'Potential Danger Signals', Worst Case or Immediate. Worst Case allows the user to input any price and see what signals would fire based on price reaching that level, while the Immediate mode looks for potential Danger Signals that could happen on the next bar.
This is achieved by adding and subtracting the average daily range to the current bars close while also forecasting the next values of moving averages, vwaps, risk multiples and the relative strength line to see if a Danger Signal would trigger.
User Customization: Flexibility is at your fingertips with toggle options for each danger signal. Tailor the indicator to match your unique trading style and risk tolerance. No two traders are the same, that is why each signal is able to be turned on or off to match your trading personality.
Versatile Application: Ideal for growth stock traders, momentum swing traders, and adherents of the CANSLIM methodology. Whether you're a novice or a seasoned investor, this tool aligns with strategies influenced by trading giants.
Validation and Utility:
Inspired by the trade management principles of Michael Lamothe, the " Danger Signals " indicator is more than just a tool; it's a reflection of tested strategies that highlight the importance of risk management. Through rigorous validation, including the insights from "The Trading Mindwheel," this indicator helps traders navigate the complexities of the market with an informed, strategic approach.
Whether you're contemplating a new position or evaluating an existing one, the " Danger Signals " indicator is designed to provide the clarity needed to avoid potential pitfalls and capitalize on opportunities with confidence. Embrace a smarter way to trade, where awareness and preparation open the door to success.
Let's dive into each of the components of this indicator.
Volume: Volume refers to the number of shares or contracts traded in a security or an entire market during a given period. It is a measure of the total trading activity and liquidity, indicating the overall interest in a stock or market.
Price Action: the analysis of historical prices to inform trading decisions, without the use of technical indicators. It focuses on the movement of prices to identify patterns, trends, and potential reversal points in the market.
Relative Strength Line: The RS line is a popular tool used to compare the performance of a stock, typically calculated as the ratio of the stock's price to a benchmark index's price. It helps identify outperformers and underperformers relative to the market or a specific sector. The RS value is calculated by dividing the close price of the chosen stock by the close price of the comparative symbol (SPX by default).
Average True Range (ATR): ATR is a market volatility indicator used to show the average range prices swing over a specified period. It is calculated by taking the moving average of the true ranges of a stock for a specific period. The true range for a period is the greatest of the following three values:
The difference between the current high and the current low.
The absolute value of the current high minus the previous close.
The absolute value of the current low minus the previous close.
Average Daily Range (ADR): ADR is a measure used in trading to capture the average range between the high and low prices of an asset over a specified number of past trading days. Unlike the Average True Range (ATR), which accounts for gaps in the price from one day to the next, the Average Daily Range focuses solely on the trading range within each day and averages it out.
Anchored VWAP: AVWAP gives the average price of an asset, weighted by volume, starting from a specific anchor point. This provides traders with a dynamic average price considering both price and volume from a specific start point, offering insights into the market's direction and potential support or resistance levels.
Moving Averages: Moving Averages smooth out price data by creating a constantly updated average price over a specific period of time. It helps traders identify trends by flattening out the fluctuations in price data.
Stochastic: A stochastic oscillator is a momentum indicator used in technical analysis that compares a particular closing price of an asset to a range of its prices over a certain period of time. The theory behind the stochastic oscillator is that in a market trending upwards, prices will tend to close near their high, and in a market trending downwards, prices close near their low.
While each of these components offer unique insights into market behavior, providing sell signals under specific conditions, the power of combining these different signals lies in their ability to confirm each other's signals. This in turn reduces false positives and provides a more reliable basis for trading decisions
These signals can be recognized at any time, however the indicators power is in it's ability to take into account where a trade is in terms of your entry price and stop.
If a trade just started, it hasn’t earned much leeway. Kind of like a new employee that shows up late on the first day of work. It’s less forgivable than say the person who has been there for a while, has done well, is on time, and then one day comes in late.
Contextual Sensitivity:
For instance, a high volume sell-off coupled with a bearish price action pattern significantly strengthens the sell signal. When the price closes below an Anchored VWAP or a critical moving average in this context, it reaffirms the bearish sentiment, suggesting that the momentum is likely to continue downwards.
By considering the relative strength line (RS) alongside volume and price action, the indicator can differentiate between a normal retracement in a strong uptrend and a when a stock starts to become a laggard.
The integration of ATR and ADR provides a dynamic framework that adjusts to the market's volatility. A sudden increase in ATR or a character change detected through comparing short-term and long-term ADR can alert traders to emerging trends or reversals.
The "Danger Signals" indicator exemplifies the power of integrating diverse technical indicators to create a more sophisticated, responsive, and adaptable trading tool. This approach not only amplifies the individual strengths of each indicator but also mitigates their weaknesses.
Portfolio Heat Indicator can be found by clicking on the image below
Danger Signals Included
Price Closes Near Low - Daily Closing Range of 30% or Less
Price Closes Near Weekly Low - Weekly Closing Range of 30% or Less
Price Closes Near Daily Low on Heavy Volume - Daily Closing Range of 30% or Less on Heaviest Volume of the Last 5 Days
Price Closes Near Weekly Low on Heavy Volume - Weekly Closing Range of 30% or Less on Heaviest Volume of the Last 5 Weeks
Price Closes Below Moving Average - Price Closes Below One of 5 Selected Moving Averages
Price Closes Below Swing Low - Price Closes Below Most Recent Swing Low
Price Closes Below 1.5 ATR - Price Closes Below Trailing ATR Stop Based on Highest High of Last 10 Days
Price Closes Below AVWAP - Price Closes Below Selected Anchored VWAP (Anchors include: High of base, Low of base, Highest volume of base, Custom date)
Price Shows Aggressive Selling - Current Bars High is Greater Than Previous Day's High and Closes Near the Lows on Heaviest Volume of the Last 5 Days
Outside Reversal Bar - Price Makes a New High and Closes Near the Lows, Lower Than the Previous Bar's Low
Price Shows Signs of Stalling - Heavy Volume with a Close of Less than 1%
3 Consecutive Days of Lower Lows - 3 Days of Lower Lows
Close Lower than 3 Previous Lows - Close is Less than 3 Previous Lows
Character Change - ADR of Last Shorter Length is Larger than ADR of Longer Length
Fast Stochastic Crosses Below Slow Stochastic - Fast Stochastic Crosses Below Slow Stochastic
Fast & Slow Stochastic Curved Down - Both Stochastic Lines Close Lower than Previous Day for 2 Consecutive Days
Lower Lows & Lower Highs Intraday - Lower High and Lower Low on 30 Minute Timeframe
Moving Average Crossunder - Selected MA Crosses Below Other Selected MA
RS Starts Curving Down - Relative Strength Line Closes Lower than Previous Day for 2 Consecutive Days
RS Turns Negative Short Term - RS Closes Below RS of 7 Days Ago
RS Underperforms Price - Relative Strength Line Not at Highs, While Price Is
Moving Average Begins to Flatten Out - First Day MA Doesn't Close Higher
Price Moves Higher on Lighter Volume - Price Makes a New High on Light Volume and 15 Day Average Volume is Less than 50 Day Average
Price Hits % Target - Price Moves Set % Higher from Entry Price
Price Hits R Multiple - Price hits (Entry - Stop Multiplied by Setting) and Added to Entry
Price Hits Overhead Resistance - Price Crosses a Swing High from a Monthly Timeframe Chart from at Least 1 Year Ago
Price Hits Fib Level - Price Crosses a Fib Extension Drawn From Base High to Low
Price Hits a Psychological Level - Price Crosses a Multiple of 0 or 5
Heavy Volume After Significant Move - Above Average and Heaviest Volume of the Last 5 Days 35 Bars or More from Breakout
Moving Averages Begin to Slope Downward - Moving Averages Fall for 2 Consecutive Days
Blow Off Action - Highest Volume, Largest Spread, Multiple Gaps in a Row 35 Bars or More Post Breakout
Late Buying Frenzy - ANTS 35 Bars or More Post Breakout
Exhaustion Gap - Gap Up 5% or Higher with Price 125% or More Above 200sma
Power OutageThe Power Outage indicator serves as the antithesis to the Power Trend, highlighting periods of extreme weakness or downtrends. Drawing inspiration from the Power Trend, the Power Outage framework was conceived by reversing the logic to highlight periods where being in cash or net short could be beneficial.
What Initiates a Power Outage?
The high is below the 21-day EMA for at least 10 consecutive days.
The 21-day EMA is below the 50-day SMA for a minimum of five days.
The 50-day SMA is on a downward trajectory.
The closing price is lower than the previous day's close.
A Power Outage can be a caution sign for traders to tighten up risk management and encourage defensive strategies or the consideration of short positions. Not only does this indicator clearly identify a Power Outage by a shaded background or shape plotted on the chart, but it also records metrics for each previous Power Outage.
The number of Power Outages that have occurred, their average length, and average depth (from the first day's close when the Power Outage activates to the low of the Power Outage) are all displayed to help assess the condition of the current Power Outage.
What Ends a Power Outage?
A Power Outage ends when the 21-day EMA crosses above the 50-day SMA, or when the price closes 10% above the recent low and above the 50-day SMA.
This indicator is designed to be viewed on a daily time frame.
Analytics Trading DashboardThe Analytics Trading Dashboard is a tool designed to bring key information about a company into an easy-to-view dashboard. The indicator combines Company Info, Fundamental Data, Price & Volume Data, and Analyst Recommendations all into one table.
Let’s dive into the details by section:
Company Info:
Name – Company name.
Market Cap – Total dollar market value of the company’s outstanding shares of stock.
Float Shares / Shares Outstanding – Floating shares indicate the number of shares available for trading. Outstanding shares are any shares held by shareholders and company insiders.
Sector – The stock's sector.
Industry Group - The industry group the stock belongs to.
IPO Date – Date on which a security is first publicly traded.
Dividend – The latest dividend amount if the company pays one.
Fundamental Data:
EPS Due – The date the company is set to report earnings next.
EPS Est Next Qtr – The earnings per share estimate for the upcoming report.
EPS Est % Chg (Current Qtr) – The earnings growth as a percentage based on the reported earnings of the same quarter from the previous year.
EPS % Chg (Last Qtr) – The earnings growth of the last reported quarter as a percentage versus the same quarter from the previous year.
Last Qtr EPS Surprise – The amount reported earnings beat or missed estimates from the last reported quarter.
Last 3 Qtrs Avg. EPS Growth – The average percentage growth of the last 3 earnings reports.
# Qtrs of EPS Acceleration – The number of consecutive quarters that EPS has increased.
Last 3 Qtrs Avg. Rev Growth – The average percentage growth of the last 3 revenue numbers reported.
# Qtrs of Rev Acceleration – The number of consecutive quarters that revenue has increased.
Gross Margin – Measures gross profit compared to revenue as a percentage.
Debt/Equity Ratio – The ratio of debt to equity, or financial leverage.
Price and Volume Data:
52 Week High – The highest high of the last 52 weeks.
% Off 52 Week High – The percentage the current price has decreased from the 52-week high.
Price vs. Moving Average – The distance as a percentage that the current price is from the selected moving average.
Average Volume – The average number of shares traded based on the selected lookback period.
Average $ Volume – The average of the total value of shares traded based on the selected lookback period.
Pocket Pivots – The number of pocket pivots that have occurred in the selected lookback period.
Up/Down Volume Ratio - A 50-day ratio derived by dividing total volume on up days by the total volume on down days.
ATR – The average true range shown as a dollar value and percentage of current price.
ADR – The average daily range shown as a dollar value and percentage of current price.
Beta - Beta is a measure of its volatility relative to the overall market, indicating how much the stock's price is expected to fluctuate compared to the market average.
Analyst Ratings:
Strong Buy – The number of strong buy recommendations.
Buy – The number of buy recommendations.
Hold – The number of hold recommendations.
Sell – The number of sell recommendations.
Strong Sell – The number of strong sell recommendations.
The Analytics Trading Dashboard also comes with the flexibility to select your preferred moving average for price and volume analysis, as well as to choose the specific lookback period for calculating the Average True Range (ATR), Average Daily Range (ADR), and Pocket Pivots lookback period.
Alpha Momentum Trade - AMT (QUAD Financial)The "Alpha Momentum Trend" indicator was conceived by Tiago Friedrich and programmed by Conrado Villaça.
The indicator description applies to the daily chart. When used on other timeframes, the indicator also changes its signals based on the timeframe used.
It has five fields, from top to bottom:
1. "ATR Multiple MA" greater than multiple: shows how many candles the asset stayed 7 times the ATR (average true range) above the 50-period simple moving average (SMA) in the last 126 candles. The purpose is to identify the strength of the asset because the more times it stayed at this distance from the SMA 50, the greater the acceleration of its prices tends to be, indicating a high momentum asset. You can change the period of the SMA in the indicator settings.
2. ATR% Multiple from MA: shows the multiple of ATR that the asset is from the same SMA as in the upper field. The default is the SMA 50, and the indicator helps identify interesting regions to take profits from long positions. When the asset is more than 7 ATRs above the SMA 50, the asset is considered "stretched," and a correction or price consolidation becomes likely. For high beta assets with a very strong trend, you can use a multiple of 10 ATRs for this purpose.
3. ATR% Multiple from 52w Low: shows the multiple of ATR that the asset is in relation to the 52-week low price. The higher the number, the more the asset has risen relative to its volatility standards, indicating a stronger trend. For momentum traders, it's ideal for the asset to be at least 15 ATRs above the minimum for this period to ensure that it's in a strong uptrend and far from the lows.
4. Longest streak above SMA: within the last 126 candles, it shows the longest streak of days when the asset didn't close below a specific simple moving average. The default definition is with the 10-day SMA, but you can change it in the indicator settings. The more consecutive days the asset can stay above the SMA10, the sign that its trend is consistent and not very volatile, which is desirable. Ideally, an asset should have previously formed an uptrend by staying at least 20 consecutive days above the SMA10.
5. Longest streak above EMA: within the last 126 candles, it shows the longest streak of days when the asset didn't close below a specific exponential moving average. The default definition is with the 21-day EMA, but you can change it in the indicator settings. The more consecutive days the asset can stay above the EMA21, the sign that its trend is consistent and not very volatile, which is desirable. Ideally, an asset should have previously formed an uptrend by staying at least 35 consecutive days above the EMA21.
It's also possible to visualize on the chart the moving averages used for the calculation of the "ATR Multiple MA," "Longest streak above SMA," and "Longest streak above EMA". In the default configuration, this results in a simple 50-day moving average, a simple 10-day moving average, and an exponential 21-day moving average being displayed on the chart, respectively.
MarketSmith VolumesThe 'MarketSmith Volumes' is to be used with the 'MarketSmith Indicator' and 'EPS & Sales' in order to mimic fully MarketSmith Graphs with the maximum number of indicators allowed by a free Tradingview Plan: 3
This indicator is no more than a simple volume indicator where all parameters are already adjusted to resemble MarketSmith graphical volumes.
Also you will find integrated:
High Volumes Bars Peak :
They allow us to see peak volumes at a glance.
10-Week Average Volume :
When viewing a weekly chart, this line represents a 10-week moving average volume level. It allows you to see if the current Volume Bar of the week is above or under the average volume traded in the past 10 Weeks.
50-Day Average Volume :
When viewing a daily chart, this line represents a 50-day moving average volume level. Whether or not volume is above or below the average for a certain period could have a significant impact on your stock chart analysis.
MarketSmith Daily Market IndicatorsMarketSmith Daily Market Indicators is designed to mimic the Daily Market Indicators tab found in MarketSmith. This tab contains 4 different secondary indicators to help gauge the health of the overall market.
This indicator allows you to choose which of the 4 indicators to show, as well as which index to pull data from, Nasdaq or NYSE. There is also a snapshot table showing the following:
# of stock advancing and up volume
# of stocks declining and down volume
# of stock unchanged and unchanged volume
# of stocks making new highs and new lows
Now let's look at the 4 indicators and how they work.
Advance/Decline Line
Plots the number of advancing shares vs the number of declining shares. Heavily weighted index stocks can skew price action, this line helps reveal that and whether most stocks are aligned with the trend.
Short Term Overbought/Oversold Oscillator
A 10-day moving average of the number of stocks moving up in price less the number of stocks moving down in price.
10 Day Moving Average of Up & Down Volume
Two 10 day moving averages to represent the volume of all stocks. Blue line: total volume of all stocks moving up in price. Red line: the total volume of all stocks moving down in price.
10 Day Moving Average of New Highs & New Lows
Two 10-day moving average to represent stocks making new highs and new lows. Blue line: The number of stocks making new price highs. Red line: The number of stocks reaching new lows.
Note this indicator is designed to work on a daily time frame chart. Data typically updates 90 minutes after the close. Data may differ from Marketsmith due to different providers, however the general trends are the same.
Quarterly EarningsThis script displays quarterly earnings per share (EPS) and sales data, and their year-on-year percentage change.
The script builds upon the Volume Price and Fundamentals script by Mohit_Kakkar08 and improves upon the array functions to keep the code light-weight & the output as accurate as possible. This script uses diluted EPS data for calculating the quarterly earnings. New quarters are auto-generated by the script as the earnings data gets updated in Tradingview every quarter.
Features:
⦿ View quarterly earnings per share (EPS) and sales data.
⦿ The percentage change is a YoY (year on year) comparison of the current quarter to the same quarter of the previous year.
⦿ Option to change the data from Quarterly (FQ) to Yearly (FY) .
⦿ Long mode : Option to increase the number of previous quarters displayed in the table (default is the past 4 quarters) to any number.
⦿ Location & size of the table can be changed.
⦿ Option for a 1-click dark mode
⦿ Option for a ' Mini mode ' where the values are replaced by traffic lights for a quick visual:
🟢 or 🔵 YoY increase in earnings/sales
🔴 or 🟣 YoY decrease in earnings/sales
🟡 or 🟠 YoY earnings/sales unchanged
⚪️ No data available
⦿ The top-left cell has the option to display either the free float (FF) or the marketcap (Mcap) of the stock.
Please note that sometimes the Tradingview data reflected in the script output might differ a bit from MarketSmith. Also make sure you are viewing the 'consolidated' data there.
This script was developed as a collaboration between me & @EquityCraze .
Flag FinderFlag Finder Indicator is a technical analysis tool to identify bull and bear flags.
What are flags
Flags are continuation patterns that occur within the general trend of the security. A bull flag represents a temporary pause or consolidation before price resumes it's upward movement, while a bear flag occurs before price continues its downward movement.
Both flag patterns consist of two components:
The Pole
The Flag
The pole is the initial strong upward surge or decline that precedes the flag. The pole is usually a fast move accompanied by heavy volume signaling significant buying or selling pressure.
The flag is then formed as price consolidates after the initial surge or decline from the pole. For a bull flag price will drift slightly downward to sideways, a bear flag will drift upward to sideways. The best flags often see volume dry up during this phase of the pattern.
Indicator Settings
Both components are fully customizable in the indicator so the user can adjust for any time frame or volatility. Select the minimum and maximum accepted limits from the % gain loss required for the pole, the maximum acceptable flag depth or rally and the minimum and maximum number of bars for each component.
Colors and what components are visible at any time are also user controlled.
Trading flags
Traders typically use flags to enter on breakouts. A breakout occurs when price moves above the left side high of a bull flag or below the left side low of a bear flag.
Alerts
The Flag Finder allows for four different types of alerts
New Bull Flag
New Bear Flag
Bull Flag Breakout
Bear Flag Breakout
Pine Script
On top of the indicator identifying bull and bear flags, throughout the source code I left notes on nearly every line to help anyone who is interested in pine script see my thought process and explain which each line of code does. This code isn't too complex, but it offers a look into many different concepts one might use when writing pinescript such as:
input groups
declaring and reassigning variables
for loops
plotshapes & lines
alerts
Webby's Tight IndicatorWebby's Tight Indicator is used to measure a securities volatility relative to itself over time. This is achieved by taking the average of three short term ATR's (average true range) and creating a ratio versus three longer term ATR's.
Mike Webster recently stated he is using the 3,5,8 for the short term ATR's and the 55,89,144 for the long term ATR's. All of the ATR lengths are part of the Fibonacci sequence.
The ratio of the ATR's is then calculated and plotted as a histogram with 0 representing the ATR's being equal. As a stocks short term ATR contracts the histogram will rise above 0 meaning volatility in the short term is contracting relative to long term volatility. On the other hand if the short ATR's are expanding versus the long term ATR's the histogram will fall below 0 and turn red, signifying short term volatility is greater than long term volatility.
The easy visualization of this indicator allows you to quickly see when a stock is in a tight range and could be ready for a potential breakout to the long side or breakdown to the short side.
In this example we see tight price action with a blue histogram followed by volatility to the upside coinciding with a breakout.
In this example we see volatility expanding as a stock continues to fall.
To help differentiate between trending contraction or expansion and just short term blips 5-day exponential moving average of the ratio is also plotted on the histogram and dynamically changes colors as it rises and falls.
Indicator options include:
Change histogram colors
Choose ema line width
Webby's RS LineThe Relative Strength (RS) line is something many investors are familiar with. It is used to measure a stocks performance versus the S&P 500 and is typically calculated by dividing the closing price of the stock by the closing price of the S&P. This means if a stock moves up and the S&P moves down or the stock moves up more than the S&P the RS line will increase, if the stock moves down while the S&P moves up the line will decrease.
While the standard RS line is a powerful tool, Mike Webster recently discussed how he has made changes to the standard RS line and also uses a 21 exponential moving average of the RS line to help guide his decision making. This script puts those new twists on the standard RS line, by first calculating the RS line using the low of both the security and the S&P rather than the closing prices. Next it measures the 21-day exponential moving average of the RS line and plots the distance between the two as a histogram.
A strong trending stock that is out performing the market will see an extended period of a positive blue histogram signifying the RS line is above the 21-ema.
While on the other hand a stock in a downtrend that is underperforming will see a negative red histogram a red histogram signifying the RS line is below the 21-ema.
On top of all of that, the indicator also keeps 3 & 13 exponential moving average of the distance between the RS line and the 21 ema to help identify shorter term relative strength and capture more immediate shifts in momentum. Both of those are plotted on the histogram as well and will change color as they rise and fall making it easy to spot the direction.
Indicator options include:
Choose symbol to measure performance against
Change histogram colors
Choose ema line width
* Note this indicator does not plot the actual RS line, it is the histogram representing the distance between the RS line calculated using the lows and the 21 ema, as well as the two ema's of the relationship.
Webby % Off 52 WeekThis indicator measures a stocks distance from its 52 week high. The concept is based on what Mike Webster shared on his appearance on IBD Live, allowing users to see if a current pullback from the highs is normal compared to historical pullbacks or if more attention is warranted.
It is also important to pay attention to a stocks 52 week high in relation to it's current price to confirm trend, spot potential breakout levels or see if the high acts as an area of resistance.
The indicator has 3 different zones with shaded backgrounds to easily spot the distance off of the high.
Zones
Green Zone - 0 to 8% off highs
Yellow Zone - 8 to 15% off highs
Red Zone - 15 to 25% off highs
Similar Healthy Pullbacks
Possible concern as pullback undercuts previous pullback level
Webby's RSI 2.0Webby's RSI (Really Simple Indicator) 2.0 or version 5.150 as Mike himself calls it, builds upon the original Webby RSI by changing the way we measure extension from the 21-day exponential moving average.
Instead using the percentage of the low versus the 21-day exponential moving average, version 2 uses a multiple of the securities 50 day ATR (average true range) to determine the extension.
Version 2.0 also comes with some new additions, such as measuring the high vs 21-day exponential moving average when a security is below it, as well as an ATR extension from the 10-day simple moving average that Mike looks to as a guide to take partials.
Base Finder DailyThe Base Finder Daily is the companion tool to the original Base Finder which is used to identify consolidation periods in a stock's advance. The Base Finder Daily allows traders to zoom in from the weekly chart and get a more precise view of the daily price action during a basing period.
Base Finder Daily identifies three different types of bases (Flat Base, High Tight Flag, Consolidation) and provides key information about the consolidation such as the depth, length, and pivot point. This information allows traders to compare and analyze the best basing patterns quickly and easily.
This tool helps traders of all levels train their eye to identify potential trading opportunities that might have otherwise gone unnoticed.
Base Finder is a must-have tool for any trader, especially those that have studied the work of William O’Neil. Base Finder stacks up base for base with MarketSmith.
Easily customize the settings, from the look to the intricacies of a consolidation.
Default base settings:
Flat Base
length: 25 days minimum
depth: <= 15%
High Tight Flag
Flag Pole: up 80% or more in less than 40 days
Flag: Less than 25% correction in 10-20 days
Consolidation:
length: minimum 30 days
depth: <= 35%
Notes
This indicator is meant to be used on the daily timeframe.
In order to see the stats labels hover your mouse over the left side high of the consolidation and please make sure the indicator is brought to the front using the visual order of your chart. If the visual order is not correct you will not be able to see the stats label.
Disclaimer:
This indicator is for informational and educational purposes only. Do your own research before making any trade decisions. We accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
Market Navigator OscillatorSimilar to the Market Navigator, the Market Navigator Oscillator turns the methodology taught in Market School by Investors Business Daily into an easy-to-use indicator, but in a more condensed form. The Market Navigator Oscillator plots all of the same information as the original Market Navigator, but keeps your main chart clear. This system follows a strict set of rules to help gauge when it's time to increase market exposure or back away.
The indicator considers 24 different buy and sell signals, as well as portfolio management rules, to keep you on the right side of the market with no guesswork.
Buy and sell signals are generated based on different criteria, including the relationship between price and key moving averages, volume, and time. Each signal is assigned a point value, which is then added (buy signal) or subtracted (sell signal) to the running exposure count when the signal occurs. This exposure count is then used to give a recommended maximum exposure level.
The Market Navigator Oscillator also identifies certain instances when being more aggressive is called for, known as a Power Trend. A Power Trend is triggered within the context of an uptrend that meets a certain criterion of price, length, and moving average relationship.
This indicator is a must-have for any trader looking to take the guesswork out of their trading by automating recommended exposure levels and being in step with the market.
Principles covered include:
Recommended maximum portfolio exposure
Buy switch / restraint rules
Follow through / distribution days
Power Trend
Dynamic Day 1
When you first put the indicator on your chart, it will ask you to select Day 1 of the current rally attempt. A Day 1 is defined as either:
The first positive day in a down trending market
A down day where the index closes in the upper half of the daily range
Disclaimer: This indicator is for informational and educational purposes only. Do your own research before making any trade decisions. I accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
I am not affiliated with Investor's Business Daily. This is my original interpretation of the rules taught in the Market School Home Study Program.
Market NavigatorThe Market Navigator turns the methodology taught in Market School by Investors Business Daily into an easy-to-use indicator. This system follows a strict set of rules to help gauge when it's time to increase market exposure or back away.
The indicator considers 24 different buy and sell signals, as well as portfolio management rules, to keep you on the right side of the market with no guesswork.
Buy and sell signals are generated based on different criteria, including the relationship between price and key moving averages, volume, and time. Each signal is assigned a point value, which is then added (buy signal) or subtracted (sell signal) to the running exposure count when the signal occurs. This exposure count is then used to give a recommended maximum exposure level.
The Market Navigator also identifies certain instances when being more aggressive is called for, known as a Power Trend. A Power Trend is triggered within the context of an uptrend that meets a certain criterion of price, length, and moving average relationship.
This indicator is a must-have for any trader looking to take the guesswork out of their trading by automating recommended exposure levels and being in step with the market
Principles covered include:
Recommended maximum portfolio exposure
Buy switch / restraint rules
Follow through / distribution days
Power Trend
Customize the indicator so it fits and looks great on your charts!
Multiple ways to view key information
Customize colors
Show or hide different element to see as much or as little information as you want
Highlight the background of Power Trends
Change the bar color of distribution/stall days
Change table position & size
Show or hide key moving averages
Dynamic Day 1
When you first put the indicator on your chart, it will ask you to select Day 1 of the current rally attempt. A Day 1 is defined as either:
The first positive day in a down trending market
A down day where the index closes in the upper half of the daily range
With over 24 buy and sell signals, the built-in reference table makes it simple to crosscheck which signals occur.
Included with this indicator is access to the Market Navigator Oscillator, which plots the exposure count as a line in a separate pane, keeping your main chart uncluttered. This version allows you to see all of the same information in a condensed form.
Disclaimer: This indicator is for informational and educational purposes only. Do your own research before making any trade decisions. I accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
I am not affiliated with Investor's Business Daily. This is my original interpretation of the rules taught in the Market School Home Study Program.
Base FinderThe Base Finder is a powerful tool to identify consolidation periods in a stock's advance. With this indicator, traders can effortlessly spot consolidation patterns on their charts providing them with a deeper understanding of the stock's price action.
Base Finder goes beyond identifying consolidation patterns, as it also offers key information about the consolidation such as the depth, length, pivot point, and the number of accumulation or distribution weeks throughout the pattern. This information allows traders to compare and analyze the best basing patterns quickly and easily.
With Base Finder, traders can differentiate between a Flat Base, a High Tight Flag, or a consolidation, like a cup with handle or double bottom base.
This tool helps traders of all levels train their eye to identify potential trading opportunities that might have otherwise gone unnoticed.
Base Finder is a must-have tool for any trader, especially those that have studied the work of William O’Neil. Base Finder stacks up base for base with MarketSmith.
Easily customize the settings, from the look to the intricacies of a consolidation.
Default base and accumulation/distribution settings:
Flat Base
length: 5 weeks minimum
depth: <= 15%
High Tight Flag
Flag Pole: up 80% or more in less than 8 weeks
Flag: Less than 25% correction in 2-4 weeks
Consolidation:
length: minimum 6 weeks
depth: <= 35%
Accumulation Week:
Current candle closes lower, but in the upper half of the weekly closing range on above average volume. OR Current candle closes positive in the upper 40% of the weekly closing range on above average volume.
Distribution Week:
Current candle closes positive, but in the lower quartile of the weekly closing range on above average volume. OR Current candle closes down on the week in the lower half of the weekly closing range on above average volume.
Notes
This indicator is meant to be used on the weekly timeframe.
In order to see the stats labels hover your mouse over the left side high of the consolidation and please make sure the indicator is brought to the front using the visual order of your chart. If the visual order is not correct you will not be able to see the stats label.
Disclaimer:
This indicator is for informational and educational purposes only. Do your own research before making any trade decisions. We accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on this indicator.
RS RatingHello everyone.
The RS Rating (or Relative Strenght Rating) is a metric that tracks a stock's price performance relative to the rest of the market. Specifically, it looks at a stock's relative strength over the last 52 weeks.
It allows you to identify at a glance stocks that are outperforming the market and may be poised for further gains.
Designed for break-out traders, trend follower, value investors, the RS Rating can help you identify promising opportunities and make informed investment decisions.
The Rating stands as follow:
- From 1 (worst) to 99 (best)
- 99 rating means the stock is outperforming 99% of all stocks in terms of relative share price performance over the last 52 weeks.
The RS Rating is accompanied by the RS line which is a representation of the progress of the asset against the comparative symbol. (Here SP500)
Of course this script is inspired by the IBD rating system.
The results may be equivalent but it is not guaranteed.
This indicator proposes a scoring system in the style of the one proposed by IBD.
Indeed for an optimal result, it would be necessary to compare the relative performance of all actions, which is not yet possible on PineScript.
Here is the formula for calculating the score:
RS Score = 40% * P3 + 20% * P6 + 20% * P9 + 20% * P12
With
P3 = Performance over the last 3 months
P6 = Performance over the last 6 months
P9 = Performance over the last 9 months
P12 = Performance over the last 12 months
There is no equivalent solution for the moment on TradingView.
The rating score will only appear on the daily timeframe.
For now it's my pleasure to share!
WON WeekliesWilliam O'Neil was a big proponent of using weekly charts, often highlighting the significance of 3 or more tight weekly closes, or a sequence of five or more consecutive up weeks. This indicator recognizes both of these conditions providing clear visual cues to signify this institutional buying activity. When three tight weekly closes or more occur a circle will be drawn around the middle close or the background will change color, depending on user preference. If five or more consecutive up weeks are detected a box is drawn around all the price action of those weeks.
User Options:
- Choose to display both or only one condition
- Customizable colors
- Define what a tight close is (default is less than 1.5%)
- Change background color or display smaller circles for 3 weeks tight
- Alerts for both
Note: 5 weekly closes wont print until the 5th weeks candle is closed.
Extended from Moving AverageThis indicator helps avoid chasing extended stocks by showing every time a stock is too far extended from a selected moving average.
Features:
✔️ selectable moving average and source (high, low, close)
✔️ choose to plot or hide the moving average
✔️ selectable distance to be considered too extended
EPS & SalesHi everyone,
I just adapted a little utility script to visualise EPS % increase (quarters vs Year -1) and sales.
I used the code from @ARUN_SAXENA and modified it to fix what I saw as issues.
(Using base 3M instead of 1M +
request.earnings(syminfo.tickerid, earnings.actual, ignore_invalid_symbol=true)
instead of
request.financial(syminfo.tickerid, "EARNINGS_PER_SHARE", "FQ")
Data will differ from MarketSmith because they use sometimes actual EPS sometimes standard, but think we can at least trust what we see in term of %
The tool is far from being perfect !
CanslimHey folks, I hope you are doing well!
I made a simple script to determine if a company met the CANSLIM criteria. Some of the criteria are not quantifiable so I left those in olive (you have to do research on those). The rest are quantifiable, which include earnings growth, whether it's a laggard, etc.
CANSLIM is a system developed by William O'Neil for selecting growth stocks by using a combination of fundamental and technical analysis techniques. The stocks that meets the criteria are usually outperformers and return really high gains.
C: Current eps have increased sharply from the same quarter in the prior year. Generally, investors using CANSLIM want EPS growth of over 20%, but the higher the better.
A: Annual earnings increases over the last three (some people use 5 but I prefer 3) years. Annual EPS growth should ideally be in excess of 20% over the last three years.
N: New products, management, or positive new events that push the company's stock to new highs. This type of headline news can cause short-term excitement, propelling a surge of optimism within the market and subsequent. This is also known as a catalyst.
S: Scarce supply coupled with a strong appetite for a stock creates excess demand and an environment in which share prices can soar. Generally, company buying back their own shares, reducing market supply and can indicate an expectation of increased demand along with insider confidence in the firm.
L: Laggard stocks are preferred within the same industry. We can use the RSI to determine whether the company is a laggard or not. An RSI reading below 30 suggests that the stock is oversold and could be undervalued—creating a buying opportunity (bullish). An RSI reading of above 70 signifies that a stock could be overbought or overvalued and could be a chance to sell (bearish). Some people prefer to use "Leader" for the L instead of "Laggard" and I personally think it's a good idea to use both. "Leader" suggests that a stock is a leader in its industry or sector
I: Institutions own the stock (mainly recent above-average performing institutions). For example, this could be a recently public company, still supported by a small handful of well-known private equity firms. Be cautious of stocks that are over-owned by institutions as you want to get in before the big money is fully invested.
M: Market average measures the overall price level of a given market, as defined by a specified group of stocks, such as the Dow Jones Industrial Average. CANSLIM stocks tend to be over-performers in bull markets. Determine the market direction for this one.
The colors:
Green = good
Blue = Neutral/Mediocre
Red = bad
Olive = none/requires own research
