Stoch RSI and RSI Buy/Sell Signals with MACD Trend FilterDescription of the Indicator
This Pine Script is designed to provide traders with buy and sell signals based on the combination of Stochastic RSI, RSI, and MACD indicators, enhanced by the confirmation of candle colors. The primary goal is to facilitate informed trading decisions in various market conditions by utilizing different indicators and their interactions. The script allows customization of various parameters, providing flexibility for traders to adapt it to their specific trading styles.
Usefulness
This indicator is not just a mashup of existing indicators; it integrates the functionality of multiple momentum and trend-detection methods into a cohesive trading tool. The combination of Stochastic RSI, RSI, and MACD offers a well-rounded approach to analyzing market conditions, allowing traders to identify entry and exit points effectively. The inclusion of color-coded signals (strong vs. weak) further enhances its utility by providing visual cues about the strength of the signals.
How to Use This Indicator
Input Settings: Adjust the parameters for the Stochastic RSI, RSI, and MACD to fit your trading style. Set the overbought/oversold levels according to your risk tolerance.
Signal Colors:
Strong Buy Signal: Indicated by a green label and confirmed by a green candle (close > open).
Weak Buy Signal: Indicated by a blue label and confirmed by a green candle (close > open).
Strong Sell Signal: Indicated by a red label and confirmed by a red candle (close < open).
Weak Sell Signal: Indicated by an orange label and confirmed by a red candle (close < open).
Example Trading Strategy Using This Indicator
To effectively use this indicator as part of your trading strategy, follow these detailed steps:
Setup:
Timeframe : Select a timeframe that aligns with your trading style (e.g., 15-minute for intraday, 1-hour for swing trading, or daily for longer-term positions).
Indicator Settings : Customize the Stochastic RSI, RSI, and MACD parameters to suit your trading approach. Adjust overbought/oversold levels to match your risk tolerance.
Strategy:
1. Strong Buy Entry Criteria :
Wait for a strong buy signal (green label) when the RSI is at or below the oversold level (e.g., ≤ 35), indicating a deeply oversold market. Confirm that the MACD shows a decreasing trend (bearish momentum weakening) to validate a potential reversal. Ensure the current candle is green (close > open) if candle color confirmation is enabled.
Example Use : On a 1-hour chart, if the RSI drops below 35, MACD shows three consecutive bars of decreasing negative momentum, and a green candle forms, enter a buy position. This setup signals a robust entry with strong momentum backing it.
2. Weak Buy Entry Criteria :
Monitor for weak buy signals (blue label) when RSI is above the oversold level but still below the neutral (e.g., between 36 and 50). This indicates a market recovering from an oversold state but not fully reversing yet. These signals can be used for early entries with additional confirmations, such as support levels or higher timeframe trends.
Example Use : On the same 1-hour chart, if RSI is at 45, the MACD shows momentum stabilizing (not necessarily negative), and a green candle appears, consider a partial or cautious entry. Use this as an early warning for a potential bullish move, especially when higher timeframe indicators align.
3. Strong Sell Entry Criteria :
Look for a strong sell signal (red label) when RSI is at or above the overbought level (e.g., ≥ 65), signaling a strong overbought condition. The MACD should show three consecutive bars of increasing positive momentum to indicate that the bullish trend is weakening. Ensure the current candle is red (close < open) if candle color confirmation is enabled.
Example Use : If RSI reaches 70, MACD shows increasing momentum that starts to level off, and a red candle forms on a 1-hour chart, initiate a short position with a stop loss set above recent resistance. This is a high-confidence signal for potential price reversal or pullback.
4. Weak Sell Entry Criteria :
Use weak sell signals (orange label) when RSI is between the neutral and overbought levels (e.g., between 50 and 64). These can indicate potential short opportunities that might not yet be fully mature but are worth monitoring. Look for other confirmations like resistance levels or trendline touches to strengthen the signal.
Example Use : If RSI reads 60 on a 1-hour chart, and the MACD shows slight positive momentum with signs of slowing down, place a cautious sell position or scale out of existing long positions. This setup allows you to prepare for a possible downtrend.
Trade Management:
Stop Loss : For buy trades, place stop losses below recent swing lows. For sell trades, set stops above recent swing highs to manage risk effectively.
Take Profit : Target nearby resistance or support levels, apply risk-to-reward ratios (e.g., 1:2), or use trailing stops to lock in profits as price moves in your favor.
Confirmation : Align these signals with broader trends on higher timeframes. For example, if you receive a weak buy signal on a 15-minute chart, check the 1-hour or daily chart to ensure the overall trend is not bearish.
Real-World Example: Imagine trading on a 15-minute chart :
For a buy:
A strong buy signal (green) appears when the RSI dips to 32, MACD shows declining bearish momentum, and a green candle forms. Enter a buy position with a stop loss below the most recent support level.
Alternatively, a weak buy signal (blue) appears when RSI is at 47. Use this as a signal to start monitoring the market closely or enter a smaller position if other indicators (like support and volume analysis) align.
For a sell:
A strong sell signal (red) with RSI at 72 and a red candle signals to short with conviction. Place your stop loss just above the last peak.
A weak sell signal (orange) with RSI at 62 might prompt caution but can still be acted on if confirmed by declining volume or touching a resistance level.
These strategies show how to blend both strong and weak signals into your trading for more nuanced decision-making.
Technical Analysis of the Code
1. Stochastic RSI Calculation:
The script calculates the Stochastic RSI (stochRsiK) using the RSI as input and smooths it with a moving average (stochRsiD).
Code Explanation : ta.stoch(rsi, rsi, rsi, stochLength) computes the Stochastic RSI, and ta.sma(stochRsiK, stochSmoothing) applies smoothing.
2. RSI Calculation :
The RSI is computed over a user-defined period and checks for overbought or oversold conditions.
Code Explanation : rsi = ta.rsi(close, rsiLength) calculates RSI values.
3. MACD Trend Filter :
MACD is calculated with fast, slow, and signal lengths, identifying trends via three consecutive bars moving in the same direction.
Code Explanation : = ta.macd(close, macdLengthFast, macdLengthSlow, macdSignalLength) sets MACD values. Conditions like macdLine < macdLine confirm trends.
4. Buy and Sell Conditions :
The script checks Stochastic RSI, RSI, and MACD values to set buy/sell flags. Candle color filters further confirm valid entries.
Code Explanation : buyConditionMet and sellConditionMet logically check all conditions and toggles (enableStochCondition, enableRSICondition, etc.).
5. Signal Flags and Confirmation :
Flags track when conditions are met and ensure signals only appear on appropriate candle colors.
Code Explanation : Conditional blocks (if statements) update buyFlag and sellFlag.
6. Labels and Alerts :
The indicator plots "BUY" or "SELL" labels with the RSI value when signals trigger and sets alerts through alertcondition().
Code Explanation : label.new() displays the signal, color-coded for strength based on RSI.
NOTE : All strategies can be enabled or disabled in the settings, allowing traders to customize the indicator to their preferences and trading styles.
Forecasting
Trade 1 + StatergyThe Relative Strength Index (RSI) is a momentum oscillator used in technical analysis that measures the speed and change of price movements of a security within a range of 0 to 100. It is most commonly set to a 14-period timeframe and helps traders identify overbought or oversold conditions, suggesting potential reversal points in the market. Divergence occurs when the price trend and the RSI trend move in opposite directions. A bullish divergence signals potential upward movement when prices are making new lows while the RSI makes higher lows. Conversely, a bearish divergence suggests a possible downward trend when prices are making new highs but the RSI is making lower highs. These signals are crucial for traders looking to capture shifts in momentum and adjust their trading strategies accordingly.
use full to
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15 min decition
Trend Counter [BigBeluga]The Trend Counter indicator is designed to help traders identify trend conditions and potential reversals by counting the number of bars within a specified period that are above or below an average price level. By smoothing and averaging these counts, the indicator provides a clear visual representation of market trends and highlights key trend changes.
Key Features:
⦾ Trend Counting:
Counts bars above and below average price levels over a specified period.
Smooths and rounds the count for better visualization.
// Count bars over length period above highest and lowest avg with offset loop
float mid = math.avg(ta.highest(length), ta.lowest(length))
for offset = 0 to length -1
switch
hl2 > mid => counter += 1.0
=> counter := 0.0
// Smooth Count and Round
counter := math.round(ta.ema(counter > 400 ? 400 : counter, smooth))
// Count Avg
count.push(counter)
avg = math.round(count.avg())
⦿ Color Indication:
Uses gradient colors to indicate the strength of the trend.
Colors the background based on trend strength for easier interpretation.
⦿ Trend Signals:
Provides visual cues for trend changes based on the counter crossing predefined levels.
⦿ Potential Tops:
Identifies potential market tops using a specified length and highlights these levels.
⦿ Additional Features:
Displays Trend Counter value with arrows to indicate the direction of the trend movement.
Displays average trend count and level for reference.
⦿ User Inputs Description
Length: Defines the period over which the trend counting is performed.
Trend Counter Smooth: Specifies the smoothing period for the trend counter.
Level: Sets the threshold level for trend signals.
Main Color: Determines the primary color for trend indication.
The Trend Counter indicator is a powerful tool for traders seeking to identify and visualize market trends.
By counting and smoothing price bars above and below average levels, it provides clear and intuitive signals for trend strength and potential reversals.
With customizable parameters and visual cues, the Trend Counter enhances trend analysis and decision-making for traders of all levels.
Liquidity Squeeze Indicator 1The provided Pine Script code implements a "Liquidity Squeeze Indicator" in TradingView, designed to detect potential bullish or bearish market squeezes based on EMA slopes, candle wicks, and body sizes.
Code Breakdown
EMAs Calculation: Calculates the 21-period (ema_21) and 50-period (ema_50) exponential moving averages (EMAs) on closing prices.
EMA Slope Calculation: Computes the slope of the 21-period EMA over a 21-period lookback to estimate trend direction, with a threshold of 0.45 to approximate a 45-degree angle.
Candle Properties: Measures the size of the candle's body and its upper and lower wicks for comparison to detect wick-to-body ratios.
Trend Identification: Defines a bullish trend when ema_21 is above ema_50 and a bearish trend when ema_21 is below ema_50.
Wick Conditions
Bullish Condition : In a bullish trend with the EMA slope up, checks if the upper wick is at least 3x the body size and the closing price is above the 21 EMA.
Bearish Condition: In a bearish trend with the EMA slope down, checks if the lower wick is at least 3x the body size and the closing price is below the 21 EMA.
Signal Plotting: Plots a green dot above the bar for bullish signals and a red dot below the bar for bearish signals.
Alerts: Defines alert conditions for both bullish and bearish signals, providing specific alert messages when conditions are met.
Summary
This indicator helps identify potential bullish or bearish liquidity squeezes by looking at trends, EMA slopes, and wick-to-body ratios in candlesticks. The primary signals are visualized through dots on the chart and can trigger alerts for notable market conditions.
Colored Moving Averages With RSI SignalsMoving Average (MA):
Helps to determine the overall market trend. If the price is above the MA, it may indicate an uptrend, and if below, a downtrend.
In this case, a Simple Moving Average (SMA) is used, but other types can be applied as well.
Relative Strength Index (RSI):
This is an oscillator that measures the speed and changes of price movements.
Values above 70 indicate overbought conditions (possible sell signal), while values below 30 indicate oversold conditions (possible buy signal).
Purpose of This Indicator:
Trading Signals: The indicator generates "Buy" and "Sell" signals based on the intersection of the price line and the moving average, as well as RSI values. This helps traders make more informed decisions.
Signal Filtering: Using RSI in combination with MA allows for filtering false signals since it considers not only the current trend but also the state of overbought or oversold conditions.
How to Use:
For Short-Term Trading: Traders can use buy and sell signals to enter trades based on short-term market fluctuations.
In Combination with Other Indicators: It can be combined with other indicators for a more comprehensive analysis (e.g., adding support and resistance levels).
Overall, this indicator helps traders respond more quickly and accurately to changes in market conditions, enhancing the chances of successful trades.
Basic RSI Strategy with MFI Description: This Pine Script is a custom trading strategy that combines the power of the RSI (Relative Strength Index) and MFI (Money Flow Index) indicators with additional signal filters and a user-friendly dashboard. The strategy is designed to identify potential entry and exit points based on dynamic conditions, providing an advanced approach to technical analysis and decision-making in trading.
Key Features:
RSI-Based Signals:
Generates buy signals when the RSI-based moving average crosses above specific thresholds (29 and 50).
Generates sell signals when the RSI-based moving average crosses below specific thresholds (50 and 69).
MFI Filtering:
Signals are validated only if the MFI value is within the specified range of 20 to 80, ensuring that signals are generated only when market conditions are favorable.
Dynamic Signal Thresholds:
The script includes adjustable thresholds for the percentage difference between consecutive bars, as well as the range between high and low prices, to refine signal accuracy.
Dashboard:
Displays real-time statistics in the top right corner of the chart, including the total number of signals, the count of buy and sell signals, and the time duration over which these signals were generated.
How to Use:
Settings: Customize the RSI and MFI lengths, along with thresholds for price movement and MFI range. This flexibility allows the strategy to be tailored to different market conditions and timeframes.
Dashboard Insight: Track the strategy's performance in real-time, with an intuitive overview of generated signals and their time distribution on the chart.
Ideal For:
This script is suitable for traders seeking a robust, customizable, and real-time signal generation strategy that combines momentum and volume indicators. The strategy’s unique filtering mechanism provides a higher level of precision, making it an excellent tool for those who prioritize signal accuracy and clarity.
Session Breaks [Market Mindset]Session Break Indicator
This powerful tool marks session breaks on your chart based on your chosen timeframe, helping you quickly spot key points in market sessions.
Customize it to fit your trading style with the following settings:
Resolution: Select the timeframe you want session start and end lines for.
Wait: Turn this on to delay new line creation until the bar closes, keeping your chart clean in real-time.
Styling: Adjust line width and color for optimal clarity.
Perfect for traders wanting a clear view of session transitions and opportunities!
Presidential Election Day Projection
This indicator analyzes historical price movements during US Presidential elections from 1972-2020. It provides projected price levels based on normalized percentage moves from the daily open, helping traders understand potential price action on the election day.
Features
Analyzes election day candles from 1972-2020
Filters by Democratic or Republican victories
Shows both average and median projections
Projects high, low, and close levels
Comprehensive statistics table with party-specific analysis
The indicator works exclusively on the daily timeframe and projects price levels based on the current day's open price. It normalizes historical moves as percentages to maintain relevance across different price ranges and time periods.
Key Components
Average projections
Median projections
Election Day High, Low and Close
All data presented in the table, lines filtered according to user input.
Notes
Works only on daily timeframe
Updates projections based on each day's opening price
Historical data covers 13 presidential elections
All projections are based on normalized percentage moves
TradingIQ - Nova IQIntroducing "Nova IQ" by TradingIQ
Nova IQ is an exclusive Trading IQ algorithm designed for extended price move scalping. It spots overextended micro price moves and bets against them. In this way, Nova IQ functions similarly to a reversion strategy.
Nova IQ analyzes historical and real-time price data to construct a dynamic trading system adaptable to various asset and timeframe combinations.
Philosophy of Nova IQ
Nova IQ integrates AI with the concept of central-value reversion scalping. On lower timeframes, prices may overextend for small periods of time - which Nova IQ looks to bet against. In this sense, Nova IQ scalps against small, extended price moves on lower timeframes.
Nova IQ is designed to work straight out of the box. In fact, its simplicity requires just one user setting, making it incredibly straightforward to manage.
Use HTF (used to apply a higher timeframe trade filter) is the only setting that controls how Nova IQ works.
Traders don’t have to spend hours adjusting settings and trying to find what works best - Nova IQ handles this on its own.
Key Features of Nova IQ
Self-Learning Market Scalping
Employs AI and IQ Technology to scalp micro price overextensions.
AI-Generated Trading Signals
Provides scalping signals derived from self-learning algorithms.
Comprehensive Trading System
Offers clear entry and exit labels.
Performance Tracking
Records and presents trading performance data, easily accessible for user analysis.
Higher Timeframe Filter
Allows users to implement a higher timeframe trading filter.
Long and Short Trading Capabilities
Supports both long and short positions to trade various market conditions.
Nova Oscillator (NOSC)
The Nova IQ Oscillator (NOSC) is an exclusive self-learning oscillator developed by Trading IQ. Using IQ Technology, the NOSC functions as an all-in-one oscillator for evaluating price overextensions.
Nova Bands (NBANDS)
The Nova Bands (NBANDS) are based on a proprietary calculation and serve as a custom two-layer smoothing filter that uses exponential decay. These bands adaptively smooth prices to identify potential trend retracement opportunities.
How It Works
Nova IQ operates on a simple heuristic: scalp long during micro downside overextensions and short during micro upside overextensions.
What constitutes an "overextension" is defined by IQ Technology, TradingIQ's proprietary AI algorithm. For Nova IQ, this algorithm evaluates the typical extent of micro overextensions before a reversal occurs. By learning from these patterns, Nova IQ adapts to identify and trade future overextensions in a consistent manner.
In essence, Nova IQ learns from price movements within scalping timeframes to pinpoint price areas for capitalizing on the reversal of an overextension.
As a trading system, Nova IQ enters all positions using market orders at the bar’s close. Each trade is exited with a profit-taking limit order and a stop-loss order. Thanks to its self-learning capability, Nova IQ determines the most suitable profit target and stop-loss levels, eliminating the need for the user to adjust any settings.
What classifies as a tradable overextension?
For Nova IQ, tradable overextensions are not manually set but are learned by the system. Nova IQ utilizes NOSC to identify and classify micro overextensions. By analyzing multiple variations of NOSC, along with its consistency in signaling overextensions and its tendency to remain in extreme zones, Nova IQ dynamically adjusts NOSC to determine what constitutes overextension territory for the indicator.
When NOSC reaches the downside overextension zone, long trades become eligible for entry. Conversely, when NOSC reaches the upside overextension zone, short trades become eligible for entry.
The image above illustrates NOSC and explains the corresponding overextension zones
The blue lower line represents the Downside Overextension Zone.
The red upper line represents the Upside Overextension Zone.
Any area between the two deviation points is not considered a tradable price overextension.
When either of the overextension zones are breached, Nova IQ will get to work at determining a trade opportunity.
The image above shows a long position being entered after the Downside Overextension Zone was reached.
The blue line on the price scale shows the AI-calculated profit target for the scalp position. The redline shows the AI-calculated stop loss for the scalp position.
Blue arrows indicate that the strategy entered a long position at the highlighted price level.
Yellow arrows indicate a position was closed.
You can also hover over the trade labels to get more information about the trade—such as the entry price and exit price.
The image above depicts a short position being entered after the Upside Overextension Zone was breached.
The blue line on the price scale shows the AI-calculated profit target for the scalp position. The redline shows the AI-calculated stop loss for the scalp position.
Red arrows indicate that the strategy entered a short position at the highlighted price level.
Yellow arrows indicate that NOVA IQ exited a position.
Long Entry: Blue Arrow
Short Entry: Red Arrow
Closed Trade: Yellow Arrow
Nova Bands
The Nova Bands (NBANDS) are based on a proprietary calculation and serve as a custom two-layer smoothing filter that uses exponential decay and cosine factors.
These bands adaptively smooth the price to identify potential trend retracement opportunities.
The image above illustrates how to interpret NBANDS. While NOSC focuses on identifying micro overextensions, NBANDS is designed to capture larger price overextensions. As a result, the two indicators complement each other well and can be effectively used together to identify a broader range of price overextensions in the market.
While the Nova Bands are not part of the core heuristic and do not use IQ technology, they provide valuable insights for discretionary traders looking to refine their strategies.
Use HTF (Use Higher Timeframe) Setting
Nova IQ has only one setting that controls its functionality.
“Use HTF” controls whether the AI uses a higher timeframe trading filter. This setting can be true or false. If true, the trader must select the higher timeframe to implement.
No Higher TF Filter
Nova IQ operates with standard aggression when the higher timeframe setting is turned off. In this mode, it exclusively learns from the price data of the current chart, allowing it to trade more aggressively without the influence of a higher timeframe filter.
Higher TF Filter
Nova IQ demonstrates reduced aggression when the "Use HTF" (Higher Timeframe) setting is enabled. In this mode, Nova IQ learns from both the current chart's data and the selected higher timeframe data, factoring in the higher timeframe trend when seeking scalping opportunities. As a result, trading opportunities only arise when both the higher timeframe and the chart's timeframe simultaneously display overextensions, making this mode more selective in its entries.
In this mode, Nova IQ calculates NOSC on the higher timeframe, learns from the corresponding price data, and applies the same rules to NOSC as it does for the current chart's timeframe. This ensures that Nova IQ consistently evaluates overextensions across both timeframes, maintaining its trading logic while incorporating higher timeframe insights.
AI Direction
The AI Direction setting controls the trade direction Nova IQ is allowed to take.
“Trade Longs” allows for long trades.
“Trade Shorts” allows for short trades.
Verifying Nova IQ’s Effectiveness
Nova IQ automatically tracks its performance and displays the profit factor for the long strategy and the short strategy it uses. This information can be found in a table located in the top-right corner of your chart showing the long strategy profit factor and the short strategy profit factor.
The image above shows the long strategy profit factor and the short strategy profit factor for Nova IQ.
A profit factor greater than 1 indicates a strategy profitably traded historical price data.
A profit factor less than 1 indicates a strategy unprofitably traded historical price data.
A profit factor equal to 1 indicates a strategy did not lose or gain money when trading historical price data.
Using Nova IQ
While Nova IQ is a full-fledged trading system with entries and exits - it was designed for the manual trader to take its trading signals and analysis indications to greater heights, offering numerous applications beyond its built-in trading system.
The hallmark feature of Nova IQ is its to ignore noise and only generate signals during tradable overextensions.
The best way to identify overextensions with Nova IQ is with NOSC.
NOSC is naturally adept at identifying micro overextensions. While it can be interpreted in a manner similar to traditional oscillators like RSI or Stochastic, NOSC’s underlying calculation and self-learning capabilities make it significantly more advanced and useful than conventional oscillators.
Additionally, manual traders can benefit from using NBANDS. Although NBANDS aren't a core component of Nova IQ's guiding heuristic, they can be valuable for manual trading. Prices rarely extend beyond these bands, and it's uncommon for prices to consistently trade outside of them.
NBANDS do not incorporate IQ Technology; however, when combined with NOSC, traders can identify strong double-confluence opportunities.
Weighted EMA IndicatorWeighted EMA Indicator is a technical analysis tool designed to assist traders in making informed investment decisions by analyzing price movements. This indicator utilizes Exponential Moving Averages (EMAs) calculated with specific weighting over a set period, aiming to provide a more accurate identification of market trends.
Purpose of Use:
The Weighted EMA Indicator helps traders observe how prices interact with certain moving averages. By using different EMA lengths (such as 13, 21, 34, 55, 89, and 144 periods), the indicator analyzes how prices behave around these moving averages. Users can calculate the "touch" counts for each EMA based on a defined lookback period (for example, 1000 bars). These touch counts indicate how frequently the price interacts with each EMA.
How to Use:
Adjusting Parameters: The indicator allows users to set the band width percentage, the number of lookback bars, and the lengths of various EMAs. These settings help traders adapt to different market conditions and strategies.
Observation: When displayed on a chart, the weighted EMA line provides insights into market trends. The weighted EMA ensures that EMAs with higher touch counts are weighted more heavily in the calculation, offering a more reliable analysis of price movements.
Decision Making: Traders can observe the intersections of the weighted EMA with price movements to make buy or sell decisions. For instance, if the price crosses above the weighted EMA, it could signal a buying opportunity, while crossing below may indicate a selling opportunity.
Conclusion:
The Weighted EMA Indicator is an effective tool for analyzing price movements and identifying market trends. With its flexible settings, users can create personalized trading strategies and make decisions that align with current market conditions. This enables traders to invest more consciously and strategically.
Fibonacci Dynamic LevelsThis Pine Script code implements an Automatic Fibonacci Levels indicator for TradingView, designed to analyze market trends and visualize key Fibonacci retracement levels dynamically on the chart.
1. User Inputs and Settings
The script begins by defining several user-configurable settings. These include options to extend the Fibonacci lines left or right, display an anchor line (a diagonal line connecting the most recent swing high and low), and customize its color and width. Additionally, users can select the size of the swing detection (small, medium, or large) and enable or disable individual Fibonacci levels such as 0, 0.236, 0.382, and so forth, allowing for personalized adjustments based on trading preferences.
2. Trend Information
The script also incorporates a label that provides real-time trend information. Users can choose where to position this trend label on the chart (e.g., top right, bottom left), enhancing the indicator's usability by providing context on the market’s current direction.
3. Swing Detection
A crucial part of the script involves detecting swing highs and lows based on the selected swing size. This is achieved by applying a lookback period (34, 89, or 144 bars) to determine the highest and lowest points within that range. This detection is pivotal for accurately calculating the Fibonacci levels based on the identified swing points.
4. Fibonacci Level Calculation
The Fibonacci levels are drawn dynamically based on the trend direction determined by comparing the current price with a simple moving average (SMA) over 50 periods.
In a downtrend, Fibonacci levels are calculated from the swing low to the swing high, indicating potential resistance levels where prices might retrace.
Conversely, in an uptrend, Fibonacci levels are calculated from the swing high to the swing low, highlighting potential support levels where prices could bounce back.
For each Fibonacci level that is enabled, the script creates a line and a corresponding label displaying the level value and price, providing clear visual cues for traders.
5. Anchor Line Feature
The anchor line visually connects the most recent swing high and low points, offering a quick reference for traders to gauge the price action's context. This line is updated dynamically as new swing points are detected, reflecting the most current market conditions.
6. Trend Label
The trend label provides a summary of the market trend—either positive (uptrend), negative (downtrend), or flat. This label updates in real time, ensuring traders can quickly ascertain the prevailing market sentiment at a glance.
7. Cleanup Mechanism
Finally, the script includes mechanisms to clean up the drawn lines and labels whenever conditions change or when settings are modified. This ensures that the chart remains uncluttered and only displays relevant information based on the user's current settings.
Bollinger strat gold h1 signalThis unique script integrates Bollinger Bands and Fibonacci retracement levels to provide traders with actionable buy and sell signals, along with independent management of positions through distinct visual boxes on the chart.
Key Features:
Bollinger Bands: Calculated using a specified moving average length and multiplier, these bands highlight potential price extremes, assisting traders in identifying overbought and oversold conditions.
Fibonacci Levels: The script calculates critical Fibonacci retracement levels based on the highest and lowest prices over a defined length. These levels serve as potential entry points and targets for take-profit.
Dynamic Position Management: For each buy or sell signal, a box is created to visually track the entry, stop-loss, and take-profit levels. This clear visual representation allows for straightforward trade management.
Success Rate Calculation: The indicator evaluates the performance of the last seven positions, displaying the success rate directly on the chart. This feature helps traders assess the effectiveness of their strategy in real-time.
Usage Instructions:
Signal Generation: The script automatically generates buy or sell signals when the price crosses the Bollinger Bands, indicating possible trading opportunities.
Tracking Positions: Each trade is represented by a box that updates dynamically, providing a visual summary of your trade performance.
Success Rate Overview: The displayed success rate allows traders to quickly evaluate their trading performance based on the last seven trades, aiding in decision-making.
Customizable Parameters:
Bollinger Length: Adjust the period used for calculating the Bollinger Bands.
Bollinger Multiplier: Set the sensitivity of the bands to market movements.
Fibonacci Length: Define the period for calculating Fibonacci retracement levels.
Important Note: This script is compatible with any trading asset and can be applied across various timeframes. Users are encouraged to conduct thorough backtesting on historical data to validate its effectiveness before utilizing it for live trading.
MT Enhanced Trend Reversal StrategyThis strategy, called **"Enhanced Trend Reversal Strategy with Take Profit,"** is designed to identify trend reversal points based on several indicators: **Exponential Moving Averages (EMA), MACD**, and **RSI**. The strategy also includes **take-profit levels** to provide traders with suggested profit-taking points.
Key Components of the Strategy
1. **Exponential Moving Averages (EMA)**:
- The strategy uses **20 and 50-period EMAs** to determine trend direction. The shorter period (EMA 20) reacts more quickly to price changes, while the longer period (EMA 50) smooths out fluctuations.
- An **uptrend** (bullish market) is indicated when the EMA 20 is above the EMA 50. In this case, the main trend line is colored green.
- A **downtrend** (bearish market) is indicated when the EMA 20 is below the EMA 50, in which case the trend line is colored red.
- This visual indication simplifies analysis and allows traders to quickly assess the market condition.
2. **MACD (Moving Average Convergence Divergence)**:
- MACD is an oscillator that shows the difference between two EMAs (with periods 6 and 13) and a **signal line** with a period of 5.
- A **buy signal** is generated when the MACD line crosses above the signal line, indicating a potential bullish trend.
- A **sell signal** is generated when the MACD line crosses below the signal line, indicating a possible bearish trend.
- Shorter MACD periods make the strategy more sensitive to price changes, allowing for more frequent trading signals.
3. **RSI (Relative Strength Index)**:
- RSI measures the speed and magnitude of directional price movements to determine if an asset is overbought or oversold.
- The strategy uses a standard RSI period of 14, but with relaxed levels for more signals.
- **For buy entries**, RSI should be above 40, signaling the start of a bullish impulse without indicating overbought conditions.
- **For sell entries**, RSI should be below 60, signaling potential bearish movement without being oversold.
Entry Conditions
- **Buy Signal**:
- The MACD line crosses above the signal line.
- EMA 20 is above EMA 50 (uptrend).
- RSI is above 40, indicating a potential rise without overbought conditions.
- When these conditions are met, the strategy enters a **long position**.
- **Sell Signal**:
- The MACD line crosses below the signal line.
- EMA 20 is below EMA 50 (downtrend).
- RSI is below 60, indicating a possible decline without being oversold.
- When these conditions are met, the strategy enters a **short position**.
Take-Profit Levels
- **Take Profit** is calculated at 1.5% of the entry price:
- **For long positions**, take profit is set at a level 1.5% above the entry price.
- **For short positions**, take profit is set at a level 1.5% below the entry price.
- This take-profit level is displayed as a blue line on the chart, giving traders a clear idea of the target profit point for each trade.
Visualization and Colors
- The main trend line (EMA 20) changes to green in an uptrend and red in a downtrend. This provides a clear visual indicator of the current trend direction.
- Take-profit levels are displayed as blue lines, helping traders follow targets and lock in profits at recommended levels.
Usage Recommendations
- **Timeframe**: The strategy is optimized for a 30-minute timeframe. At this interval, signals are frequent enough without being overly sensitive to noise.
- **Applicability**: The strategy works well for assets with moderate to high volatility, such as stocks, cryptocurrencies, and currency pairs.
- **Risk Management**: In addition to take profit, a stop loss at around 1-2% is recommended to minimize losses in case of sudden trend reversals.
Conclusion
This strategy is designed for more frequent signals by using faster indicators and relaxed RSI conditions. It is suitable for traders seeking quick trade opportunities and clearly defined take-profit levels.
Innovative Market Direction SignalThe indicator is designed to help traders identify moments when price action, volatility, volume and certain time trends are aligned in a way that signals a high probability entry into the market in one direction or another.
General:
The indicator is superimposed on the price chart (overlay=true), which makes it more convenient for visual analysis of trading signals in the context of price levels.
The user can configure the parameters through the built-in interface (for example, "Lookback Period", "Buy Signal Threshold", "Sell Signal Threshold").
Main components and their functionality:
Parameters for the user:
window_size - the number of bars or candles for calculating various metrics.
buy_threshold and sell_threshold - threshold values for determining buy and sell signals.
Momentum Asymmetry:
The code calculates the difference between positive (upMomentum) and negative (downMomentum) price changes within the selected time window.
Using a loop, it adds or updates values to the corresponding arrays, checking whether the price is increasing (positive change) or decreasing (negative change).
After collecting the data, the average positive and negative price change over the period is calculated, their proportion and input into momentum_asymmetry. This is a measure of how much the current price movement deviates from the high of the current period.
Volatility Analysis:
The ta.tr function is used to calculate the true price range.
Then, the standard deviation (ta.stdev) is used to calculate the volatility over the specified period, which reflects the volatility of prices.
Volume Momentum:
The volume and price change are combined to find the volume momentum (current_volume_momentum).
If the volume is associated with a price increase, it is considered positive, otherwise it is considered negative.
Seasonal and cyclical changes:
The seasonal_index is calculated, which reflects the time between the current timestamp and the beginning of the analyzed time window (window_size), divided by the time between the current timestamp and the previous candlestick.
Combined signal:
All calculated components (momentum asymmetry, volume momentum, volatility and seasonal index) are summed up in combined_signal.
Buy signals (buy_signal) and sell signals (sell_signal) are generated depending on the thresholds set by the user.
Visualization:
The plotshape indicator displays green circles (buy signals) above the bar and red circles (sell signals) below the bar.
The plot function outputs the combined_signal line to visualize the combined indicator.
Fibonacci Buy /Sell SignalsHere is a Fibonacci-based Buy/Sell Indicator using retracement levels for potential support and resistance zones. This indicator plots Fibonacci levels and provides buy/sell signals based on price interaction with these levels.
Fibonacci Levels:
Highest high and lowest low over the lookback period.
Key levels: 38.2% (retracement), 50% (midpoint), 61.8% (strong retracement).
Buy Signal: When the price crosses above the 61.8% Fibonacci level (bullish).
Sell Signal: When the price crosses below the 38.2% Fibonacci level (bearish).
Range Detection [No Repaint]DETECTS RANGE EARLY
Using Confirmed Data:
All calculations now use to reference the previous completed candle
Signals are only generated based on completed candles
Range state is stored and confirmed before displaying
Key Changes to Prevent Repainting:
ATR calculations use previous candle data
Bollinger Bands calculate from previous closes
Price range checks use previous highs and lows
Range state is confirmed before displaying
How to Verify No Repainting:
Signals will only appear after a candle closes
Historical signals will remain unchanged
Alerts will only trigger on confirmed changes
This means:
The indicator will be slightly delayed (one candle)
But signals will be more reliable
Historical analysis will be accurate
Backtesting results will match real-time performance
Usage Tips with No-Repaint Version:
Wait for candle close before acting on signals
Use the confirmed range state for decision making
Consider the one-candle delay in your strategy timing
Alerts will only trigger on confirmed condition changes
Would you like me to:
Add a parameter to choose between real-time and no-repaint modes?
Add visual indicators for pending vs confirmed signals?
Modify the sensitivity of the range detection?
Weierstrass Function (Fractal Cycles)THE WEIERSTRASS FUNCTION
f(x) = ∑(n=0)^∞ a^n * cos(b^n * π * x)
The Weierstrass Function is the sum of an infinite series of cosine functions, each with increasing frequency and decreasing amplitude. This creates powerful multi-scale oscillations within the range ⬍(-2;+2), resembling a system of self-repetitive patterns. You can zoom into any part of the output and observe similar proportions, mimicking the hidden order behind the irregularity and unpredictability of financial markets.
IT DOESN’T RELY ON ANY MARKET DATA, AS THE OUTPUT IS BASED PURELY ON A MATHEMATICAL FORMULA!
This script does not provide direct buy or sell signals and should be used as a tool for analyzing the market behavior through fractal geometry. The function is often used to model complex, chaotic systems, including natural phenomena and financial markets.
APPLICATIONS:
Timing Aspect: Identifies the phases of market cycles, helping to keep awareness of frequency of turning points
Price-Modeling features: The Amplitude, frequency, and scaling settings allow the indicator to simulate the trends and oscillations. Its nowhere-differentiable nature aligns with the market's inherent uncertainty. The fractured oscillations resemble sharp jumps, noise, and dips found in volatile markets.
SETTINGS
Amplitude Factor (a): Controls the size of each wave. A higher value makes the waves larger.
Frequency Factor (b): Determines how fast the waves oscillate. A higher value creates more frequent waves.
Ability to Invert the output: Just like any cosine function it starts its journey with a decline, which is not distinctive to the behavior of most assets. The default setting is in "inverted mode".
Scale Factor: Adjusts the speed at which the oscillations grow over time.
Number of Terms (n_terms): Increases the number of waves. More terms add complexity to the pattern.
Daily Engulfing Pattern DetectorThis indicator identifies bullish and bearish engulfing patterns on daily timeframes.
A bullish engulfing pattern occurs when a green candle completely engulfs the previous red candle,
taking out its low and closing above both its open and close prices. This suggests a potential trend reversal from bearish to bullish.
A bearish engulfing pattern occurs when a red candle completely engulfs the previous green candle,
taking out its high and closing below both its open and close prices. This suggests a potential trend reversal from bullish to bearish.
Features:
- Works on daily timeframe by default (customizable)
- Displays visual markers: green triangles for bullish patterns, red triangles for bearish patterns
- Includes built-in alerts for both pattern types
Set up alerts by right-clicking the indicator and selecting "Create Alert"
High Volume Strikes - NovaTheMachineConverts your inputs into Horizontal Lines on a chart, Creates a table to indicate all known levels input & tell you how far away you are from each level.
This is a quality of life indicator, not a signal, or trend indicator.
In order for the indicator to plot the levels correctly, please use the following format (Where '$TICKER' is replaced by your instrument of choice such as ' AMEX:SPY ', and 'value' is a positive number with up to 2 decimal places, such as '123.45';
"$TICKER: Golden Strike:value, HVOL Upper:value, HVOL Lower:value, MVC:value, MVP:value, CVR Upper:value, CVR Lower:value, PVR Upper:value, PVR Lower:value, Block 1:value, Block 2:value, Block 3:value, Block 4:value, Block 5:value, Block 6:value"
These Key Levels described below, are values You must determine yourself via Options Chain Volume Analysis
MVC: Most Volume Call - Single Strike with Highest Volume Traded on Call Side
MVP: Most Volume Put - Single Strike with Highest Volume Traded on Put Side
Golden Strike: When MVC = MVP, otherwise = The Sum of (MVP + MVC)/2
HVOL Range: The Range in which Strikes are traded most on both Call & Put sides
PVR: The Total useful Range that is un-interrupted on both Call & Put sides
CVR: The Range of Strikes that is un-interrupted on both Call & Puts sides for the Next Expiry
Blocks: Individual Blocks that may be of significant Volume, on either Call or Put sides, outside the range of CVR & PVR
ICT Master Suite [Trading IQ]Hello Traders!
We’re excited to introduce the ICT Master Suite by TradingIQ, a new tool designed to bring together several ICT concepts and strategies in one place.
The Purpose Behind the ICT Master Suite
There are a few challenges traders often face when using ICT-related indicators:
Many available indicators focus on one or two ICT methods, which can limit traders who apply a broader range of ICT related techniques on their charts.
There aren't many indicators for ICT strategy models, and we couldn't find ICT indicators that allow for testing the strategy models and setting alerts.
Many ICT related concepts exist in the public domain as indicators, not strategies! This makes it difficult to verify that the ICT concept has some utility in the market you're trading and if it's worth trading - it's difficult to know if it's working!
Some users might not have enough chart space to apply numerous ICT related indicators, which can be restrictive for those wanting to use multiple ICT techniques simultaneously.
The ICT Master Suite is designed to offer a comprehensive option for traders who want to apply a variety of ICT methods. By combining several ICT techniques and strategy models into one indicator, it helps users maximize their chart space while accessing multiple tools in a single slot.
Additionally, the ICT Master Suite was developed as a strategy . This means users can backtest various ICT strategy models - including deep backtesting. A primary goal of this indicator is to let traders decide for themselves what markets to trade ICT concepts in and give them the capability to figure out if the strategy models are worth trading!
What Makes the ICT Master Suite Different
There are many ICT-related indicators available on TradingView, each offering valuable insights. What the ICT Master Suite aims to do is bring together a wider selection of these techniques into one tool. This includes both key ICT methods and strategy models, allowing traders to test and activate strategies all within one indicator.
Features
The ICT Master Suite offers:
Multiple ICT strategy models, including the 2022 Strategy Model and Unicorn Model, which can be built, tested, and used for live trading.
Calculation and display of key price areas like Breaker Blocks, Rejection Blocks, Order Blocks, Fair Value Gaps, Equal Levels, and more.
The ability to set alerts based on these ICT strategies and key price areas.
A comprehensive, yet practical, all-inclusive ICT indicator for traders.
Customizable Timeframe - Calculate ICT concepts on off-chart timeframes
Unicorn Strategy Model
2022 Strategy Model
Liquidity Raid Strategy Model
OTE (Optimal Trade Entry) Strategy Model
Silver Bullet Strategy Model
Order blocks
Breaker blocks
Rejection blocks
FVG
Strong highs and lows
Displacements
Liquidity sweeps
Power of 3
ICT Macros
HTF previous bar high and low
Break of Structure indications
Market Structure Shift indications
Equal highs and lows
Swings highs and swing lows
Fibonacci TPs and SLs
Swing level TPs and SLs
Previous day high and low TPs and SLs
And much more! An ongoing project!
How To Use
Many traders will already be familiar with the ICT related concepts listed above, and will find using the ICT Master Suite quite intuitive!
Despite this, let's go over the features of the tool in-depth and how to use the tool!
The image above shows the ICT Master Suite with almost all techniques activated.
ICT 2022 Strategy Model
The ICT Master suite provides the ability to test, set alerts for, and live trade the ICT 2022 Strategy Model.
The image above shows an example of a long position being entered following a complete setup for the 2022 ICT model.
A liquidity sweep occurs prior to an upside breakout. During the upside breakout the model looks for the FVG that is nearest 50% of the setup range. A limit order is placed at this FVG for entry.
The target entry percentage for the range is customizable in the settings. For instance, you can select to enter at an FVG nearest 33% of the range, 20%, 66%, etc.
The profit target for the model generally uses the highest high of the range (100%) for longs and the lowest low of the range (100%) for shorts. Stop losses are generally set at 0% of the range.
The image above shows the short model in action!
Whether you decide to follow the 2022 model diligently or not, you can still set alerts when the entry condition is met.
ICT Unicorn Model
The image above shows an example of a long position being entered following a complete setup for the ICT Unicorn model.
A lower swing low followed by a higher swing high precedes the overlap of an FVG and breaker block formed during the sequence.
During the upside breakout the model looks for an FVG and breaker block that formed during the sequence and overlap each other. A limit order is placed at the nearest overlap point to current price.
The profit target for this example trade is set at the swing high and the stop loss at the swing low. However, both the profit target and stop loss for this model are configurable in the settings.
For Longs, the selectable profit targets are:
Swing High
Fib -0.5
Fib -1
Fib -2
For Longs, the selectable stop losses are:
Swing Low
Bottom of FVG or breaker block
The image above shows the short version of the Unicorn Model in action!
For Shorts, the selectable profit targets are:
Swing Low
Fib -0.5
Fib -1
Fib -2
For Shorts, the selectable stop losses are:
Swing High
Top of FVG or breaker block
The image above shows the profit target and stop loss options in the settings for the Unicorn Model.
Optimal Trade Entry (OTE) Model
The image above shows an example of a long position being entered following a complete setup for the OTE model.
Price retraces either 0.62, 0.705, or 0.79 of an upside move and a trade is entered.
The profit target for this example trade is set at the -0.5 fib level. This is also adjustable in the settings.
For Longs, the selectable profit targets are:
Swing High
Fib -0.5
Fib -1
Fib -2
The image above shows the short version of the OTE Model in action!
For Shorts, the selectable profit targets are:
Swing Low
Fib -0.5
Fib -1
Fib -2
Liquidity Raid Model
The image above shows an example of a long position being entered following a complete setup for the Liquidity Raid Modell.
The user must define the session in the settings (for this example it is 13:30-16:00 NY time).
During the session, the indicator will calculate the session high and session low. Following a “raid” of either the session high or session low (after the session has completed) the script will look for an entry at a recently formed breaker block.
If the session high is raided the script will look for short entries at a bearish breaker block. If the session low is raided the script will look for long entries at a bullish breaker block.
For Longs, the profit target options are:
Swing high
User inputted Lib level
For Longs, the stop loss options are:
Swing low
User inputted Lib level
Breaker block bottom
The image above shows the short version of the Liquidity Raid Model in action!
For Shorts, the profit target options are:
Swing Low
User inputted Lib level
For Shorts, the stop loss options are:
Swing High
User inputted Lib level
Breaker block top
Silver Bullet Model
The image above shows an example of a long position being entered following a complete setup for the Silver Bullet Modell.
During the session, the indicator will determine the higher timeframe bias. If the higher timeframe bias is bullish the strategy will look to enter long at an FVG that forms during the session. If the higher timeframe bias is bearish the indicator will look to enter short at an FVG that forms during the session.
For Longs, the profit target options are:
Nearest Swing High Above Entry
Previous Day High
For Longs, the stop loss options are:
Nearest Swing Low
Previous Day Low
The image above shows the short version of the Silver Bullet Model in action!
For Shorts, the profit target options are:
Nearest Swing Low Below Entry
Previous Day Low
For Shorts, the stop loss options are:
Nearest Swing High
Previous Day High
Order blocks
The image above shows indicator identifying and labeling order blocks.
The color of the order blocks, and how many should be shown, are configurable in the settings!
Breaker Blocks
The image above shows indicator identifying and labeling order blocks.
The color of the breaker blocks, and how many should be shown, are configurable in the settings!
Rejection Blocks
The image above shows indicator identifying and labeling rejection blocks.
The color of the rejection blocks, and how many should be shown, are configurable in the settings!
Fair Value Gaps
The image above shows indicator identifying and labeling fair value gaps.
The color of the fair value gaps, and how many should be shown, are configurable in the settings!
Additionally, you can select to only show fair values gaps that form after a liquidity sweep. Doing so reduces "noisy" FVGs and focuses on identifying FVGs that form after a significant trading event.
The image above shows the feature enabled. A fair value gap that occurred after a liquidity sweep is shown.
Market Structure
The image above shows the ICT Master Suite calculating market structure shots and break of structures!
The color of MSS and BoS, and whether they should be displayed, are configurable in the settings.
Displacements
The images above show indicator identifying and labeling displacements.
The color of the displacements, and how many should be shown, are configurable in the settings!
Equal Price Points
The image above shows the indicator identifying and labeling equal highs and equal lows.
The color of the equal levels, and how many should be shown, are configurable in the settings!
Previous Custom TF High/Low
The image above shows the ICT Master Suite calculating the high and low price for a user-defined timeframe. In this case the previous day’s high and low are calculated.
To illustrate the customizable timeframe function, the image above shows the indicator calculating the previous 4 hour high and low.
Liquidity Sweeps
The image above shows the indicator identifying a liquidity sweep prior to an upside breakout.
The image above shows the indicator identifying a liquidity sweep prior to a downside breakout.
The color and aggressiveness of liquidity sweep identification are adjustable in the settings!
Power Of Three
The image above shows the indicator calculating Po3 for two user-defined higher timeframes!
Macros
The image above shows the ICT Master Suite identifying the ICT macros!
ICT Macros are only displayable on the 5 minute timeframe or less.
Strategy Performance Table
In addition to a full-fledged TradingView backtest for any of the ICT strategy models the indicator offers, a quick-and-easy strategy table exists for the indicator!
The image above shows the strategy performance table in action.
Keep in mind that, because the ICT Master Suite is a strategy script, you can perform fully automatic backtests, deep backtests, easily add commission and portfolio balance and look at pertinent metrics for the ICT strategies you are testing!
Lite Mode
Traders who want the cleanest chart possible can toggle on “Lite Mode”!
In Lite Mode, any neon or “glow” like effects are removed and key levels are marked as strict border boxes. You can also select to remove box borders if that’s what you prefer!
Settings Used For Backtest
For the displayed backtest, a starting balance of $1000 USD was used. A commission of 0.02%, slippage of 2 ticks, a verify price for limit orders of 2 ticks, and 5% of capital investment per order.
A commission of 0.02% was used due to the backtested asset being a perpetual future contract for a crypto currency. The highest commission (lowest-tier VIP) for maker orders on many exchanges is 0.02%. All entered positions take place as maker orders and so do profit target exits. Stop orders exist as stop-market orders.
A slippage of 2 ticks was used to simulate more realistic stop-market orders. A verify limit order settings of 2 ticks was also used. Even though BTCUSDT.P on Binance is liquid, we just want the backtest to be on the safe side. Additionally, the backtest traded 100+ trades over the period. The higher the sample size the better; however, this example test can serve as a starting point for traders interested in ICT concepts.
Community Assistance And Feedback
Given the complexity and idiosyncratic applications of ICT concepts amongst its proponents, the ICT Master Suite’s built-in strategies and level identification methods might not align with everyone's interpretation.
That said, the best we can do is precisely define ICT strategy rules and concepts to a repeatable process, test, and apply them! Whether or not an ICT strategy is trading precisely how you would trade it, seeing the model in action, taking trades, and with performance statistics is immensely helpful in assessing predictive utility.
If you think we missed something, you notice a bug, have an idea for strategy model improvement, please let us know! The ICT Master Suite is an ongoing project that will, ideally, be shaped by the community.
A big thank you to the @PineCoders for their Time Library!
Thank you!
Candle % Change StrategyThis indicator is designed to analyze the percentage change of candles and provide insights into potential future price movements based on historical patterns. It calculates the percentage change of the current candle and compares it to similar candles in the past, offering a statistical view of what typically happens after such price movements.
The strategy works by identifying candles with similar percentage changes to the current one, either bullish or bearish, and then calculating the average price change that occurred a specified number of bars after these similar candles. This information can be valuable for traders looking to understand potential market reactions following significant price movements.
The indicator displays its findings in a customizable table on the chart. The table shows the current candle's percentage change, the number of similar candles found in the historical data, and the average price change that occurred after these similar candles. Users can adjust various settings such as the number of periods to analyze, the number of forward bars to look ahead, the position and text size of the table, and color schemes.
One of the key features of this indicator is its ability to adapt to both bullish and bearish scenarios. It automatically detects whether the current candle is bullish or bearish and adjusts its analysis accordingly. This makes it versatile for different market conditions and trading strategies.
The script allows for extensive customization. Users can modify the look and feel of the indicator by adjusting colors, table position, and text size to suit their preferences and chart setup. This flexibility ensures that the indicator can be integrated seamlessly into various trading environments and styles.
Personally, I find this indicator particularly useful for analyzing market reactions following large bearish candles. It can provide valuable insights into how the market typically responds to significant downward price movements, which can be crucial for timing entries or exits in a trade.
This strategy can be especially interesting for symbols that are heavily traded by retail investors, such as certain cryptocurrencies. In these markets, emotional reactions to large price movements can sometimes create predictable patterns, which this indicator aims to identify and quantify.
This indicator is for informational and educational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument. Past performance does not guarantee future results, and all trading carries risk. Users should always conduct their own research and consider their financial situation before making any investment decisions. The creator of this indicator is not responsible for any losses incurred from its use.
Memecoin TrackerMemecoin Z-Score Tracker with Buy/Sell Table - Technical Explanation
How it Works:
This indicator calculates the Z-scores of various memecoins based on their price movements, using historical funding rates across multiple exchanges. A Z-score measures the deviation of the current price from its moving average, expressed in standard deviations. This provides insight into whether a coin is overbought (positive Z-score) or oversold (negative Z-score) relative to its recent history.
Key Components:
- Z-Score Calculation
- The lookback period is dynamically adjusted based on the chart’s timeframe to ensure consistency across different time intervals:
- For lower timeframes (e.g., minutes), the base lookback period is scaled to match approximately 240 minutes.
- For daily and higher timeframes, the base lookback period is fixed (e.g., 14 bars).
Memecoin Selection:
The indicator tracks several popular memecoins, including DOGE, SHIB, PEPE, FLOKI, and others.
Funding rates are fetched from exchanges like Binance, Bybit, and MEXC using the request.security() function, ensuring accurate real-time price data.
Thresholds for Buy/Sell Signals:
Users can set custom Z-score thresholds for buy (oversold) and sell (overbought) signals:
Default upper threshold: 2.5 (indicates overbought condition).
Default lower threshold: -2.5 (indicates oversold condition).
When a memecoin’s Z-score crosses above or below these thresholds, it signals potential buy or sell conditions.
Buy/Sell Table:
A table with two columns (BUY and SELL) is dynamically populated with memecoins that are currently oversold (buy signal) or overbought (sell signal).
Each column can hold up to 20 entries, providing a clear overview of current market opportunities.
Visual Feedback:
The Z-scores of each memecoin are plotted as a line on the chart, with color-coded feedback:
Red for overbought (Z-score > upper threshold),
Green for oversold (Z-score < lower threshold),
Other colors indicate neutral conditions.
Horizontal lines representing the upper and lower thresholds are plotted for reference.
How to Use It:
Adjust Thresholds:
You can modify the upper and lower Z-score thresholds in the settings to customize sensitivity. Lower thresholds will increase the likelihood of triggering buy/sell signals for smaller price deviations, while higher thresholds will focus on more extreme conditions.
View Real-Time Signals:
The table shows which memecoins are currently oversold (buy column) or overbought (sell column), updating dynamically as price data changes. Traders can monitor this table to identify trading opportunities quickly.
Use with Different Timeframes:
The Z-score lookback period adjusts automatically based on the chart's timeframe, making this indicator suitable for intraday and long-term traders.
Use shorter timeframes (e.g., 1-minute, 5-minute charts) for faster signals, while longer timeframes (e.g., daily, weekly) may yield more stable, trend-based signals.
Who It Is For:
Short-Term Traders: Those looking to capitalize on short-term price imbalances (e.g., day traders, scalpers) can use this indicator to identify quick buy/sell opportunities as memecoins oscillate around their moving averages.
Swing Traders: Swing traders can use the Z-score tracker to identify overbought or oversold conditions across multiple memecoins and ride the reversals back toward equilibrium.
Crypto Enthusiasts and Memecoin Investors: Anyone involved in the volatile memecoin market can use this tool to better time entries and exits based on market extremes.
This indicator is for traders seeking quantitative analysis of price extremes in memecoins. By tracking the Z-scores across multiple coins and dynamically updating buy/sell opportunities in a table, it provides a systematic approach to identifying trade setups.
Option Delta Candles [Luxmi AI]Introduction
In the world of options trading, understanding how an option’s price changes with various factors is crucial. One of the key metrics traders use is **Delta**, which measures the sensitivity of an option’s price to changes in the price of the underlying asset. This blog explores an Option Delta Indicator with an Exponential Moving Average (EMA), including its uses, how it works, and its potential limitations.
What is the Option Delta Indicator?
Delta is one of the "Greeks" used in options trading to gauge the risk and behavior of options. It indicates how much an option's price is expected to change for a one-point move in the underlying asset's price. Specifically:
- Call Option Delta: A positive value indicating that the option's price increases as the underlying price increases.
- Put Option Delta: A negative value indicating that the option's price decreases as the underlying price increases.
Key Features of the Indicator
Delta Calculation
The Option Delta Indicator calculates the delta of a call option using the Black-Scholes model, a widely accepted method for pricing European-style options. The formula for delta in the context of a call option is:
Delta = N(d1)
Where:
d1 is calculated as:
d1 = (ln(S / K) + (r + (σ^2 / 2)) * T) / (σ * sqrt(T))
Here, S is the current market price of the option (used as the strike price in this case), K is the strike price, r is the risk-free interest rate, σ is the volatility, and T is the time to expiry in years.
EMA of Delta
The Exponential Moving Average (EMA) of the delta is also plotted. The EMA is a smoothing function that helps identify trends by giving more weight to recent data points. It is calculated as:
EMA = ta.ema(delta_call, emaLength)
Where `emaLength` is the user-defined period for the EMA.
Uses of the Option Delta Indicator
Trend Analysis
The EMA helps smooth out delta values, making it easier to identify trends in the delta over time. This can be useful for traders looking to understand whether the delta is increasing or decreasing, which may indicate how the option’s sensitivity to price changes is evolving.
Decision-Making Tool
By observing both delta and its EMA, traders can make more informed decisions. For instance, if the delta is rising and the EMA confirms this trend, it might indicate bullish momentum in the underlying asset. Conversely, a declining delta with a falling EMA could suggest bearish trends.
Risk Management
Understanding the delta can help traders manage their risk by assessing how sensitive their options positions are to movements in the underlying asset. By using the EMA of delta, traders can better gauge changes in sensitivity and adjust their positions accordingly.
Limitations and Disadvantages
Dependence on Model Assumptions
The Black-Scholes model, which is used to calculate delta, relies on several assumptions including constant volatility and interest rates, and the absence of dividends. These assumptions may not hold in real-world markets, potentially affecting the accuracy of delta calculations.
No Consideration of Market Conditions
The indicator does not account for broader market conditions or liquidity factors. Delta and its EMA are calculated based purely on price and time to expiry, without incorporating market news or events that might impact the option's price.
Lag in EMA
The EMA, while smoothing data, introduces a lag because it is based on past prices. This means that the EMA may not react immediately to sudden price changes, potentially causing delayed signals.
Simplified Strike Price
In this indicator, the strike price is set to the current market price of the option. This simplification might not be suitable for all trading strategies, particularly if a different strike price is more relevant to the trader's strategy.
Limited Scope
This indicator focuses solely on delta and its EMA. While useful, it does not provide a comprehensive view of an option’s overall risk profile. Traders should consider using additional indicators and analyses for a more complete understanding.
Conclusion
The Option Delta Indicator with EMA offers a useful tool for traders to analyze how the sensitivity of an option’s price to changes in the underlying asset’s price evolves over time. The inclusion of an EMA helps to smooth out the delta values and identify trends. However, traders should be aware of the limitations, including the model’s assumptions, potential lag in EMA signals, and the simplified approach to the strike price.
As with any trading tool, it's crucial to use this indicator as part of a broader trading strategy that includes other analyses and risk management practices. Understanding its strengths and limitations will help traders make more informed decisions and enhance their overall trading effectiveness.
