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Chop Zone

Advanced Choppiness Indicator with CPMA"The Advanced Choppiness Indicator with CPMA is a technical analysis tool designed to assist traders in identifying choppy market conditions and determining trend direction. It combines two key components: the Choppiness Index and a Custom Price Moving Average (CPMA). The Choppiness Index is calculated using the Average True Range (ATR), which measures market volatility. It compares the ATR to the highest high and lowest low over a specified period. A higher Choppiness Index value indicates choppier market conditions, while a lower value suggests smoother and more directional price movements. The CPMA is a custom moving average that takes into account various price types, including the close, high, low, and other combinations. It calculates the average of these price types over a specific length. The CPMA provides a smoother trend line that can help identify support and resistance levels more accurately than traditional moving averages. When using this indicator, pay attention to the following elements: Yellow range boxes: These indicate choppy zones, where market conditions are characterized by low momentum and erratic price action. Avoid entering trades during these periods. Histogram bars: Green bars suggest an uptrend, while red bars indicate a downtrend. These bars are based on the CPMA and can help confirm the prevailing trend direction. CPMA angle: The angle of the CPMA line provides further insight into the trend. A positive angle indicates an uptrend, while a negative angle suggests a downtrend. Choppiness thresholds: The indicator includes user-defined thresholds for choppiness. Values above the high threshold indicate high choppiness, while values below the low threshold suggest low choppiness. Trade decisions: Consider the information provided by the indicator to make informed trading decisions. Avoid trading during choppy zones and consider entering trades in the direction of the prevailing trend. Remember that the indicator's parameters, such as ATR length and CPMA length, can be adjusted to suit your trading preferences and timeframe. However, it's important to use this indicator in conjunction with other technical analysis tools and your trading strategy for comprehensive market analysis." By combining the Choppiness Index, CPMA, and other visual cues, this indicator aims to help traders identify suitable trading conditions and make more informed decisions based on market trends and volatility.
Pine Script™ indicator
by chhagansinghmeena
Simple Chop ZoneThe original Chop Zone indicator by Trading View is good, but has a few limitations which I've addressed in this one Too many colors which confuse and/or overwhelm users like me Inability to change the EMA period This one has just 3 customizable colors for Uptrend - default = Turquoise Downtrend - default = red Everything else - default = lime And you can set your own EMA length. The default is 34 as per the original Chop Zone indicator
Pine Script™ indicator
by meterdown
Variety MA Cluster Filter Crosses [Loxx]What is a Cluster Filter? One of the approaches to determining a useful signal (trend) in stream data. Small filtering (smoothing) tests applied to market quotes demonstrate the potential for creating non-lagging digital filters (indicators) that are not redrawn on the last bars. Standard Approach This approach is based on classical time series smoothing methods. There are lots of articles devoted to this subject both on this and other websites. The results are also classical: 1. The changes in trends are displayed with latency; 2. Better indicator (digital filter) response achieved at the expense of smoothing quality decrease; 3. Attempts to implement non-lagging indicators lead to redrawing on the last samples (bars). And whereas traders have learned to cope with these things using persistence of economic processes and other tricks, this would be unacceptable in evaluating real-time experimental data, e.g. when testing aerostructures. The Main Problem It is a known fact that the majority of trading systems stop performing with the course of time, and that the indicators are only indicative over certain intervals. This can easily be explained: market quotes are not stationary. The definition of a stationary process is available in Wikipedia: A stationary process is a stochastic process whose joint probability distribution does not change when shifted in time. Judging by this definition, methods of analysis of stationary time series are not applicable in technical analysis. And this is understandable. A skillful market-maker entering the market will mess up all the calculations we may have made prior to that with regard to parameters of a known series of market quotes. Even though this seems obvious, a lot of indicators are based on the theory of stationary time series analysis. Examples of such indicators are moving averages and their modifications. However, there are some attempts to create adaptive indicators. They are supposed to take into account non-stationarity of market quotes to some extent, yet they do not seem to work wonders. The attempts to "punish" the market-maker using the currently known methods of analysis of non-stationary series (wavelets, empirical modes and others) are not successful either. It looks like a certain key factor is constantly being ignored or unidentified. The main reason for this is that the methods used are not designed for working with stream data. All (or almost all) of them were developed for analysis of the already known or, speaking in terms of technical analysis, historical data. These methods are convenient, e.g., in geophysics: you feel the earthquake, get a seismogram and then analyze it for few months. In other words, these methods are appropriate where uncertainties arising at the ends of a time series in the course of filtering affect the end result. When analyzing experimental stream data or market quotes, we are focused on the most recent data received, rather than history. These are data that cannot be dealt with using classical algorithms. Cluster Filter Cluster filter is a set of digital filters approximating the initial sequence. Cluster filters should not be confused with cluster indicators. Cluster filters are convenient when analyzing non-stationary time series in real time, in other words, stream data. It means that these filters are of principal interest not for smoothing the already known time series values, but for getting the most probable smoothed values of the new data received in real time. Unlike various decomposition methods or simply filters of desired frequency, cluster filters create a composition or a fan of probable values of initial series which are further analyzed for approximation of the initial sequence. The input sequence acts more as a reference than the target of the analysis. The main analysis concerns values calculated by a set of filters after processing the data received. In the general case, every filter included in the cluster has its own individual characteristics and is not related to others in any way. These filters are sometimes customized for the analysis of a stationary time series of their own which describes individual properties of the initial non-stationary time series. In the simplest case, if the initial non-stationary series changes its parameters, the filters "switch" over. Thus, a cluster filter tracks real time changes in characteristics. Cluster Filter Design Procedure Any cluster filter can be designed in three steps: 1. The first step is usually the most difficult one but this is where probabilistic models of stream data received are formed. The number of these models can be arbitrary large. They are not always related to physical processes that affect the approximable data. The more precisely models describe the approximable sequence, the higher the probability to get a non-lagging cluster filter. 2. At the second step, one or more digital filters are created for each model. The most general condition for joining filters together in a cluster is that they belong to the models describing the approximable sequence. 3. So, we can have one or more filters in a cluster. Consequently, with each new sample we have the sample value and one or more filter values. Thus, with each sample we have a vector or artificial noise made up of several (minimum two) values. All we need to do now is to select the most appropriate value. An Example of a Simple Cluster Filter For illustration, we will implement a simple cluster filter corresponding to the above diagram, using market quotes as input sequence. You can simply use closing prices of any time frame. 1. Model description. We will proceed on the assumption that: The aproximate sequence is non-stationary, i.e. its characteristics tend to change with the course of time. The closing price of a bar is not the actual bar price. In other words, the registered closing price of a bar is one of the noise movements, like other price movements on that bar. The actual price or the actual value of the approximable sequence is between the closing price of the current bar and the closing price of the previous bar. The approximable sequence tends to maintain its direction. That is, if it was growing on the previous bar, it will tend to keep on growing on the current bar. 2. Selecting digital filters. For the sake of simplicity, we take two filters: The first filter will be a variety filter calculated based on the last closing prices using the slow period. I believe this fits well in the third assumption we specified for our model. Since we have a non-stationary filter, we will try to also use an additional filter that will hopefully facilitate to identify changes in characteristics of the time series. I've chosen a variety filter using the fast period. 3. Selecting the appropriate value for the cluster filter. So, with each new sample we will have the sample value (closing price), as well as the value of MA and fast filter. The closing price will be ignored according to the second assumption specified for our model. Further, we select the МА or ЕМА value based on the last assumption, i.e. maintaining trend direction: For an uptrend, i.e. CF(i-1)>CF(i-2), we select one of the following four variants: if CF(i-1)fastfilter(i), then CF(i)=slowfilter(i); if CF(i-1)>slowfilter(i) and CF(i-1)slowfilter(i) and CF(i-1)>fastfilter(i), then CF(i)=MAX(slowfilter(i),fastfilter(i)). For a downtrend, i.e. CF(i-1)slowfilter(i) and CF(i-1)>fastfilter(i), then CF(i)=MAX(slowfilter(i),fastfilter(i)); if CF(i-1)>slowfilter(i) and CF(i-1)fastfilter(i), then CF(i)=fastfilter(i); if CF(i-1)<slowfilter(i) and CF(i-1)<fastfilter(i), then CF(i)=MIN(slowfilter(i),fastfilter(i)). Where: CF(i) – value of the cluster filter on the current bar; CF(i-1) and CF(i-2) – values of the cluster filter on the previous bars; slowfilter(i) – value of the slow filter fastfilter(i) – value of the fast filter MIN – the minimum value; MAX – the maximum value; What is Variety MA Cluster Filter Crosses? For this indicator we calculate a fast and slow filter of the same filter and then we run a cluster filter between the fast and slow filter outputs to detect areas of chop/noise. The output is the uptrend is denoted by green color, downtrend by red color, and chop/noise/no-trade zone by white color. As a trader, you'll likely want to avoid trading during areas of chop/noise so you'll want to avoid trading when the color turns white. Extras Bar coloring Alerts Loxx's Expanded Source Types, see here: Loxx's Moving Averages, see here: An example of filtered chop, see the yellow circles. The cluster filter identifies chop zones so you don't get stuck in a sideways market.
Pine Script™ indicator
by loxx
1
Chop Zone - SamXThis is my spin on the Chop Zone indicator. It was forked from the built-in TradingView Chop Zone indicator. There were several reasons for this effort... The built-in indicator version had no real configuration options It was hard-coded to use the 34-period EMA with fixed span sizes for identifying price range There was no real context to the meaning of default color scheme The separation points of the chop zone bars was at a fixed 1.43-degree scale Note: If left at default settings, this indicator will exactly match the built-in Chop Zone indicator. WARNING : Please be sure you understand the potential impact and implications before adjusting any of the settings in the "Advanced Configuration" section!!! Chop Zone with discrete/standard coloring: Chop Zone with gradient fill: Moving Average angle plot with gradient fill:
Pine Script™ indicator
by SamAccountX
7
CHOP Zone Entry Strategy + DMI/PSAR ExitThis is a Strategy with associated visual indicators and Long/Short and Reverse/Close Position Alerts for the Choppiness Index (CHOP) . It is used to determine if the market is choppy (trading sideways) or not choppy (trading within a trend in either direction). CHOP is not directional, so a DMI script was ported into this strategy to allow for trend confirmation and direction determination; it consists of an Average Directional Index (ADX) , Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) . In addition, a Parabolic SAR is also included to act as a trailing stop during any strong trends. Development Notes --------------------------- This indicator, and most of the descriptions below, were derived largely from the TradingView reference manual. Feedback and suggestions for improvement are more than welcome, as well are recommended Input settings and best practices for use. www.tradingview.com www.tradingview.com www.tradingview.com Recommend using the below DMI and PSAR indicators in conjunction with this script to fully visualize and understand how entry and exit conditions are chosen. Variable inputs should correlate between the scripts for uniformity and visual compatibility. THANKS to LazyBear and his Momentum Squeeze script for helping me quickly develop a momentum state model for coloring the Chop line by trend. Strategy Description --------------------------- CHOP produces values that determine whether the market is choppy or trending . The closer the value is to 100 , the higher the choppiness levels , while the closer it is to 0 , the stronger the market is trending . Territories for both levels, and their associated upper and lower thresholds, are popularly defined using the Fibonacci Retracements, 61.8 and 38.2. Basic Use --------------------------- CHOP is often used to confirm the market condition to help you stay out of sideways markets and only enter when there is movement or imminent explosions. When readings are above the upper threshold, continued sideways movement may be expected, while readings below the lower threshold are typically indicative of a continuing trend. It is also used to anticipate upcoming trendiness changes, with the general belief that extended periods of consolidation (sideways movement) are followed by extended periods of strong, trending, directional movement, and vice versa. One limitation in this index is that you must be cautious in deciding whether the range or trend will likely continue, or if it will reverse. Confidence in price action and trend is higher when two or more indicators are in agreement -- while this strategy combines CHOP with both DMI and PSAR, we would still recommend pairing with other indicators to determine entry or exit trade opportunities. Recommend also choosing 'Once Per Bar Close' when creating alerts. Inputs --------------------------- Strategy Direction - an option to only trade Short, Long, Both, or only in the direction of the Trend (Follow Trend is the Default). Sensitivity - an incremental variable to test whether the past n candles are in the same trend state before triggering a delayed long or short alert (1 is the Default). Can help filter out noise and reduces active alerts. Show Chop Index - two visual styles are provided for user preference, a visible Chop line with a background overlay, or a compact column and label only view. Chop Lookback Period - the time period to be used in calculating CHOP (14 is the Default). Chop Offset - changing this number will move the CHOP either forwards or backwards relative to the current market (0 is the Default). Smooth Chop Line and Length - if enabled, the entered time period will be used in calculating a smooth average of the index (Enabled and 4 are the Defaults). Color Line to Trend Direction - toggles whether the index line is colored to visually depict the current trend direction (Enabled is the Default). Color Background - toggles the visibility of a background color based on the index state (Enabled is the Default). Enable DMI Option - if enabled, then entry will be confirmed by and dependent on the ADX Key Level, with any close or reversal confirmed by both ADX and +/-DI to determine whether there is a strong trend present or not (Enabled is the Default). ADX Smoothing - the time period to be used in calculating the ADX which has a smoothing component (14 is the Default). DI Length - the time period to be used in calculating the DI (14 is the Default). ADX Key Level - any trade with the ADX above the key level is a strong indicator that it is trending (23 to 25 is the suggested setting). Enable PSAR Option - enables trailing stop loss orders (Enabled is the Default). PSAR Start - the starting value for the Acceleration Force (0.015 is our chosen Default, 0.02 is more common). PSAR Increment - the increment in which the Acceleration Force will move (0.001 is our chosen Default, 0.02 is more common). PSAR Max Value - the maximum value of the Acceleration Factor (0.2 is the Default). Color Candles Option - an option to transpose the CHOP condition levels to the main candle bars. Note that the outer red and green border will still be distinguished by whether each individual candle is bearish or bullish during the specified timeframe. Note too that if both DMI and PSAR are deselected, then close determinations will default to a CHOP reversal strategy (e.g., close long when below 38.2 and close short when above 61.8). Though if either DMI or PSAR are enabled, then the CHOP reversal for close determination will automatically be disabled. Indicator Visuals --------------------------- For the candle colors, black indicates tight chop (45 to 55), yellow is loose chop (38.2 to 45 and 55 to 61.8), dark purple is trending down (< 38.2), and dark blue is trending up (> 61.8). The background color has additional shades to differentiate a wider range of more levels… • < 30 is dark purple • 30 to 38.2 is purple • 38.2 to 45 is light purple • 45 to 55 is black • 55 to 61.8 is light blue • 61.8 to 70 is blue • > 70 is dark blue Long, Short, Close, and Reverse labels are plotted on the Chop line, which itself can be colored based on the trend. The chop line can also be hidden for a clean and compact, columnar view, which is my preferred option (see example image below). Visual cues are intended to improve analysis and decrease interpretation time during trading, as well as to aid in understanding the purpose of this strategy and how its inclusion can benefit a comprehensive trading plan. DMI and Trend Strength --------------------------- To analyze trend strength, the focus should be on the ADX line and not the +DI or -DI lines.  An ADX reading above 25 indicates a strong trend , while a reading below 20 indicates a weak or non-existent trend .  A reading between those two values would be considered indeterminable. Though what is truly a strong trend or a weak trend depends on the financial instrument being examined; historical analysis can assist in determining appropriate values. DMI exits trade when ADX is below the user selected key level (e.g., default is 25) and when the +/- DI lines cross (e.g., -DI > +DI exits long position and +DI > -DI exits short position). PSAR and Trailing Stop --------------------------- PSAR is a time and price based indicator that excels at measuring direction and duration, though not the actual strength of a trend, which is why we use this in conjunction with DMI. It is also included in this script as a trailing stop option to maximize gains during strong trends and to mitigate any false ADX strengthening signals. This creates a parabola that is located below the candle during a Bullish trend and above during a Bearish trend. A buy or reversal is signaled when the price crosses above or below the Parabolic SAR. Long/Short Entry --------------------------- 1. CHOP must be over 61.8 (long) or under 38.2 (short). 2. If DMI is enabled, then the ADX signal line must be above the user selected Key Level (default is 25). 3. If Sensitivity is selected, then that past candle must meet the criteria in step 1, as well as all the intermediate candles in between. 4. If "Follow Trend" is selected and PSAR is enabled, then a long position can only open when the momentum and PSAR are in an uptrend, or short when both are in a downtrend, to include all intermediate candles if the Sensitivity option is set on a past candle. Close/Reverse --------------------------- 1. If DMI is enabled, then a close flag will be raised when the ADX signal drops below the Key Level (of 25), and -DI crosses over +DI (if long), or +DI crosses over -DI (if short). 2. If PSAR is enabled, then a close flag will be raised when the current trend state is opposite the last state. 3. If both DMI and PSAR are disabled, then a close flag will be raised if the Chop line drops under 38.2 (if long) or goes over 61.8 (if short). 4. If a Long or Short Entry is triggered on the same candle as any of the above close flags, then the position will be reversed, else the position will be closed. Strategy Alerts --------------------------- 1. Long Entry 2. Short Entry 3. Reverse 4. Close The provided backtest result is based on a position sizing of 10% equity with 100k initial capital. When testing SPX, disabling the DMI performed the best, but EURUSD performed poorly without it enabled, and TSLA had a small reduction in net profit. Timeframe likewise differed between commodities with TSLA performing best at 30M, SPX at 15M, and EURUSD at 4H. I do not plan on using this as a standalone strategy, but I also was expecting better results with the inclusion of EMI and PSAR to compliment the CHOP. Key elements of this script will likely be included in future, more holistic strategies. Disclaimer --------------------------- Past performance may not be indicative of future results. Due to various factors, including changing market conditions, the strategy may no longer perform as well as in historical backtesting. This post and the script are not intended to provide any financial advice. Trade at your own risk. No known repainting, though there may be if an offset is introduced in the Inputs. I did my best not to code any other variables that repaint, but cannot fully attest to this fact.
Pine Script™ strategy
by IronCasper
4
Phantom Trader -- BTC -- OnlyPhantom Trader is a "counter-trend" strategy built to take advantage of non-linear trading ranges and heavy chop zones. Phantom Script is forward-thinking, and will project the next possible reversal zone (PRZ) well head of the move. This script can be utilized for : Hedging Swing trading Scalping --------------------------------------------------------------------------------- Most reliable time frames are the 60-30-and 15 Green line indicates hidden support levels Purple line Hidden resistance levels. When price comes in contact with our PRZ "Potential Reversal Zone" It is wise to take up a hedge position. BITMEX:XBTUSD" BITMEX:XBT BITSTAMP:BTCUSD BITSTAMP:BTCEUR COINBASE:BTCUSD COINBASE:BTCUSDC COINBASE:BTCEUR COINBASE:BTCGB BITFINEX:BTCUSD BITFINEX:BTCEUR BITFINEX:BTCGBP BINANCE:BTCUSD BINANCE:BTCUSDC BINANCE:BTCUSDT BINANCE:BTCUSDC BYBIT:BTCUSD GEMINI:BTCUSD KRKN:XBTUSD ----------------Impulse Rejection---------------------- Bullish Impulse WEAK SELL SIGNAL: If Price is closing above Purple Phantom PRZ during bullish impulse, then likely a bullish impulse continuation is to take place. STRONG SELL SIGNAL: If Price is failing to close above Purple Phantom PRZ Line after a bullish impulse, then look to hedge the short, or to take up a short position. Bearish Impulse: WEAK BUY SIGNAL: If Price is closing below Green Phantom PRZ line, after a bearish impulse, then maintain short position. STRONG BUY SIGNAL: Once Price starts closing above Green Phantom PRZ line, look to hedge a long against a short, take profit the short, or net long the asset. ------------------------------------------------------------------- Signal Invalidation Close and continuation above Purple PRZ would invalidate short signal Close and continuation below Green PRZ would invalidate the long signal If the same above PRZ is rung once again, then that was likely a stop hunt. Another close above, and signal should be retaken. ----------------------------------------------------------------------- Midline Signals Rejection at Midlines, during a bullish impulse, is bearish: -Entering a short position or profit-taking current long is advised. -A net-long trader not wanting to profit take their long can hedge an equal-sized short there. Rejection at Midlines, during a bearish impulse, could signal trend change: -A net-short trader should hedge a long position against their short. -A net-long trader can add to their long on the second or third bounce Continued rejection at midline, one should take up a net position in the direction of which the chart is rejecting. ----------------------------------------------------------------------- For Test Access Please use the following GOOGLE form: forms.gle For monthly licensing: https://coin-observatory.chargifypay.com... $75/month licensing fee To obtain a lifetime license And For SCRIPT SUPPORT please join our discord: discord.gg For ALL ASSET Classes
Pine Script™ indicator
by CoinObservatory
8
Chop and explodeThe purpose of this script is to decipher chop zones from runs/movement/explosion The chop is RSI movement between 40 and 60 tight chop is RSI movement between 45 and 55. There should be an explosion after RSI breaks through 60 (long) or 40 (short). Tight chop bars are colored black, a series of black bars is tight consolidation and should explode imminently. The longer the chop the longer the explosion will go for. tighter the better. Loose chop (whip saw/yellow bars) will range between 40 and 60. the move begins with blue bars for long and purple bars for short. Couple it with your trading system to help stay out of chop and enter when there is movement. Use with "Simple Trender." Best of luck in all you do. Get money.
Pine Script™ indicator
by NYBKLYN
56