Dynamic Price Oscillator (Zeiierman)█ Overview
The Dynamic Price Oscillator (DPO) by Zeiierman is designed to gauge the momentum and volatility of asset prices in trading markets. By integrating elements of traditional oscillators with volatility adjustments and Bollinger Bands, the DPO offers a unique approach to understanding market dynamics. This indicator is particularly useful for identifying overbought and oversold conditions, capturing price trends, and detecting potential reversal points.
█ How It Works
The DPO operates by calculating the difference between the current closing price and a moving average of the closing price, adjusted for volatility using the True Range method. This difference is then smoothed over a user-defined period to create the oscillator. Additionally, Bollinger Bands are applied to the oscillator itself, providing visual cues for volatility and potential breakout signals.
█ How to Use
⚪ Trend Confirmation
The DPO can serve as a confirmation tool for existing trends. Traders might look for the oscillator to maintain above or below its mean line to confirm bullish or bearish trends, respectively. A consistent direction in the oscillator's movement alongside price trend can provide additional confidence in the strength and sustainability of the trend.
⚪ Overbought/Oversold Conditions
With the application of Bollinger Bands directly on the oscillator, the DPO can highlight overbought or oversold conditions in a unique manner. When the oscillator moves outside the Bollinger Bands, it signifies an extreme condition.
⚪ Volatility Breakouts
The width of the Bollinger Bands on the oscillator reflects market volatility. Sudden expansions in the bands can indicate a breakout from a consolidation phase, which traders can use to enter trades in the direction of the breakout. Conversely, a contraction suggests a quieter market, which might be a signal for traders to wait or to look for range-bound strategies.
⚪ Momentum Trading
Momentum traders can use the DPO to spot moments when the market momentum is picking up. A sharp move of the oscillator towards either direction, especially when crossing the Bollinger Bands, can indicate the start of a strong price movement.
⚪ Mean Reversion
The DPO is also useful for mean reversion strategies, especially considering its volatility adjustment feature. When the oscillator touches or breaches the Bollinger Bands, it indicates a deviation from the normal price range. Traders might look for opportunities to enter trades anticipating a reversion to the mean.
⚪ Divergence Trading
Divergences between the oscillator and price action can be a powerful signal for reversals. For instance, if the price makes a new high but the oscillator fails to make a corresponding high, it may indicate weakening momentum and a potential reversal. Traders can use these divergence signals to initiate counter-trend moves.
█ Settings
Length: Determines the lookback period for the oscillator and Bollinger Bands calculation. Increasing this value smooths the oscillator and widens the Bollinger Bands, leading to fewer, more significant signals. Decreasing this value makes the oscillator more sensitive to recent price changes, offering more frequent signals but with increased noise.
Smoothing Factor: Adjusts the degree of smoothing applied to the oscillator's calculation. A higher smoothing factor reduces noise, offering clearer trend identification at the cost of signal timeliness. Conversely, a lower smoothing factor increases the oscillator's responsiveness to price movements, which may be useful for short-term trading but at the risk of false signals.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Oscillators
Market Trend OscillatorMarket Trend Oscillator segments the market into ranged bound and trending aspect. The threshold level segregates both types of market. With higher level, both the risk and reward lower down.
The MTO indicator, is based on Standard Deviation, difference between highest high and lowest low, ATR and ADR. There are two different volatility aspect which are:
Volatility according to the movement of one price e.g. closing price.
Volatility according to the candles.
The minimum of both these aspects gives an insight into the volatility of the market. To segregate a dynamic value with ATR and ADR is used with the threshold level. Moreover, the volatilities can be smoothed to have a smoother decision making.
RSI Confirm Trend with Williams (W%R)RSI Confirm Trend with Williams (W%R)
This is the "RSI Confirm Trend with Williams (W%R)" indicator
This is a modification of the "RSI Trends" indicator by zzzcrypto123.
What Is the Relative Strength Index (RSI)?
The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security.
What is Williams %R?
Williams %R, also known as the Williams Percent Range, is a type of momentum indicator that moves between 0 and -100 and measures overbought and oversold levels. The Williams %R may be used to find entry and exit points in the market. The indicator is very similar to the Stochastic oscillator and is used in the same way. It was developed by Larry Williams and it compares a stock’s closing price to the high-low range over a specific period, typically 14 days or periods.
How Does "RSI Confirm Trend with Williams (W%R)" work?
This indicator combines the momentum of both RSI and Williams %R by adding upper and lower thresholds. When the thresholds are broken, this indicator changes color from gray to either green or red.
What Are The Thresholds?
The default RSI thresholds are 55 and 45. These values are configurable.
The default Williams %R thresholds are 80 and 20. These values are configurable and made positive so it can be plotted against the RSI line.
How To Use?
When the RSI exceeded the upper/lower thresholds, the RSI line color will change from gray to lighter green/red color.
When the Williams %R exceeded the upper/lower thresholds, the RSI color will change to darker green/red color signifying a strong momentum in that direction.
When the RSI color is gray, this means the RSI and Williams %R thresholds are not broken which can also signify as no trend or consolidation.
The Williams %R line is not displayed by default but can be enabled using the checkbox provided in the Style tab.
This "RSI Confirm Trend with Williams (W%R)" indicator can be combined with other technical indicators to verify the idea behind this theory.
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Disclaimer
The information contained in this indicator does not constitute any financial advice or a solicitation to buy or sell any securities of any type.
My scripts/indicators/ideas are for educational purposes only!
RSI AcceleratorThe Relative Strength Index (RSI) is like a fitness tracker for the underlying time series. It measures how overbought or oversold an asset is, which is kinda like saying how tired or energized it is.
When the RSI goes too high, it suggests the asset might be tired and due for a rest, so it could be a sign it's gonna drop. On the flip side, when the RSI goes too low, it's like the asset is pumped up and ready to go, so it might be a sign it's gonna bounce back up. Basically, it helps traders figure out if a stock is worn out or revved up, which can be handy for making decisions about buying or selling.
The RSI Accelerator takes the difference between a short-term RSI(5) and a longer-term RSI(14) to detect short-term movements. When the short-term RSI rises more than the long-term RSI, it typically refers to a short-term upside acceleration.
The conditions of the signals through the RSI Accelerator are as follows:
* A bullish signal is generated whenever the Accelerator surpasses -20 after having been below it.
* A bearish signal is generated whenever the Accelerator breaks 20 after having been above it.
Volume RSIRelative strength index based on volume data.
Indicate volume momentum, and help you define divergences on volume.
The goal is to have an idea and represent in another form volumes and kept eyes on volume momentum on a certain period.
RSI is an indicator about the strength, I keep the oversold/overbought thresholds. I think it still makes sense to interpret.
the calculations is simple, we use the average volume up (avg_vol_up) and average volume down (avg_vol_down) over the period.
then calculate the relatives strength : ( avg_vol_up / ( avg_vol_up + avg_vol_down ) ) * 100
The period is 14 by default. The period is used for calculating mean.
I also add MA it helps to have a global look on the indicator.
In my code I used the idea of @Padronhosnai in his code "positve/negative volume" to get volumes in the right form.
For pictures I also use his indicator it's the one above.
RS Rating for Indian MarketRS Rating for Trading View
This Trading View script calculates the Relative Price Strength (RS) Rating for a given stock. It's a measure of a stock's price performance over the last twelve months, compared to all stocks in a selected Index. The rating scale ranges from 1 (lowest) to 99 (highest).
Features
- Adaptation for Indian Market
- Option to choose the index to compare to (NSE:NIFTY, NSE:CNX500, NSE:NIFTYSMLCAP250, NSE:CNXSMALLCAP)
- Option to compare to a different index
- Option to hide the RS rating
- Option to plot RS new highs
- Option to adjust the offset of the line for display purposes
- Option to change the color of the RS Line & Rating
- Option to change the color of the dots for RS new highs
- Option to choose which new high to plot (RS New Highs, RS New Highs Before Price, Historical RS New Highs, Historical RS New Highs Before Price)
- Option to adjust the recent high look-back count
Please note that the script is designed to work best in the daily timeframe. Results may not be accurate in other timeframes.
This script uses three methods to calculate the RS Rating:
1. A method that calculates how the stock behaves vs SMA.
2. A classic performance method that calculates the performance of the stock's closing price vs the closing price 3 months back.
3. A method that measures how the stock performs against the comparative Symbol.
The final RS Rating is a combination of the results from these three methods. The script also includes some adjustments based on observations to improve the accuracy of the rating.
RSI Overbought/Oversold [Overlay Highlighter]Indicator to show when the RSI is in oversold(Below 30) or overbought (Above 70) conditions. The background color of the chart changes colors in the areas where the above conditions are met.
Price can often reverse in these areas. However, this depends on the strength of the trend and price may continue higher or lower in the direction of the overall trend.
Divergence has been added to aid the user in timing reversals. Divergences are plotted by circles above or below the candles. Divergence is confirmed so there is a delay of one candle before the signal is given on the previous candle. Again, everything depends on the strength of the trend so use proper risk management.
Once the RSI has entered into oversold/overbought conditions, it is recommended to wait for divergence before entering into the trade near areas of support or resistance. It is recommended to utilize this strategy on the H4 timeframe, however, this particular strategy works on all timeframes.
This indicator is a modified version of seoco's RSI Overbought/Oversold + Divergence Indicator . The user interface has been refined, is now overlayed on the chart, and my own divergence code has been inserted.
Squeeze Momentum Oscillator [AlgoAlpha]🎉📈 Introducing the Squeeze Momentum Oscillator by AlgoAlpha 📉🎊
Unlock the secrets of market dynamics with our innovative Squeeze Momentum Oscillator! Crafted for those who seek to stay ahead in the fast-paced trading environment, this tool amalgamates critical market momentum and volatility indicators to offer a multifaceted view of potential market movements. Here's why it's an indispensable part of your trading toolkit:
Key Features:
🌈 Customizable Color Schemes: Easily distinguish between bullish (green) and bearish (red) momentum phases for intuitive analysis.
🔧 Extensive Input Settings: Tailor the oscillator lengths for both Underlying and Swing Momentum to match your unique trading approach.
📊 Dedicated Squeeze Settings: Leverage precise volatility insights to identify market squeeze scenarios, signaling potential breakouts or consolidations.
🔍 Advanced Divergence Detection: Utilize sophisticated algorithms to detect and visualize both bullish and bearish divergences, pointing towards possible market reversals.
📈 Hyper Squeeze Detection: Stay alert to high-momentum market movements with our hyper squeeze feature, designed to extremely suppressed market volatility.
🔔 Comprehensive Alert System: Never miss a trading opportunity with alerts for momentum changes, squeeze conditions, and more.
Quick Guide to Using the Squeeze Momentum Oscillator:
🛠 Add the Indicator: Add the indicator to your favourites. Adjust the oscillator and squeeze settings to suit your trading preferences.
📊 Market Analysis: Keep an eye on the squeeze value and momentum z-score for insights into volatility and market direction. Hyper Squeeze signals are your cue for high momentum trading opportunities.
🔔 Alerts: Configure alerts for shifts in underlying and swing momentum, as well as entry and exit points for squeeze conditions, to capture market moves efficiently.
How It Works:
The Squeeze Momentum Oscillator by AlgoAlpha synergistically combines the principles of momentum tracking and market squeeze detection. By integrating the core logic of the Squeeze & Release indicator, it calculates the Squeeze Value (SV) through a comparison of the Exponential Moving Average (EMA) of the Average True Range (ATR) against the high-low price EMA. This SV is further analyzed alongside its EMA to pinpoint squeeze conditions, indicative of potential market breakouts or consolidations. In addition to this, the oscillator employs Hyper Squeeze Detection for identifying extremely low volatility. The momentum aspect of the oscillator evaluates the price movement relative to EMAs of significant highs and lows, refining these observations with a z-score normalization for short-term momentum insights. Moreover, the incorporation of divergence detection aids in identifying potential reversals, making this oscillator a comprehensive tool for traders looking to harness the power of volatility and momentum in their market analysis. The combination of the Squeeze & Release and the Momentum Oscillator allows traders to time their trades with more precision by entering when the market is in a squeeze and front running the volatility of a major move.
Elevate your trading strategy with the Squeeze Momentum Oscillator by AlgoAlpha and gain a competitive edge in deciphering market dynamics! 🌟💼 Happy trading!
UT Bot Stochastic RSIUT Bot Stochastic RSI is a powerful trading tool designed to help traders identify potential buy and sell signals in the market. This indicator combines the Stochastic and RSI (Relative Strength Index) oscillators, two of the most popular and effective technical analysis tools, to provide a comprehensive view of market conditions.
The Stochastic oscillator is a momentum indicator that compares a security's closing price to its price range over a given time period. The RSI, on the other hand, is a momentum oscillator that measures the speed and change of price movements. By combining these two indicators, the UT Bot Stochastic RSI can help traders identify overbought and oversold conditions, as well as potential trend reversals.
The UT Bot Stochastic RSI also includes an ATR (Average True Range) trailing stop, which can be used to set stop-loss levels and manage risk. This feature is particularly useful in volatile markets, where price movements can be large and unpredictable.
In addition to its powerful technical analysis tools, the UT Bot Stochastic RSI also includes a backtesting feature, allowing traders to test their strategies on historical data. This can help traders identify the most effective settings for the indicator and improve their trading performance.
Overall, the UT Bot Stochastic RSI is a versatile and effective tool for traders of all levels, providing valuable insights into market conditions and helping to improve trading decisions
RSI Order Blocks [UAlgo]The "RSI Order Blocks " identifies and visualizes potential order blocks based on the Relative Strength Index (RSI) indicator. These zones may indicating potential support or resistance levels.
🔶 Key Features :
RSI-based Order Block Identification: The script utilizes the RSI indicator to identify potential order blocks. It detects pivot highs and lows in the RSI, which are indicative of potential reversal points, and marks these areas as potential order blocks.
Order Block Visualization: Identified order blocks are visually represented on the chart, making it easy for traders to recognize and interpret these significant price zones. Both bullish and bearish order blocks are differentiated by color, enhancing clarity and ease of analysis. Additionally, within each order block, the RSI value of that block is also shown.
RSI Overbought/Oversold Filter: Optionally, users can apply a filter based on RSI levels to refine the detection of order blocks. This filter prevents the creation of order blocks when the RSI is within specified overbought or oversold conditions (default between 30 and 70), helping traders focus on areas of potentially significant price action.
An Example with the OB/OS Filter Feature Turned Off:
An Example with the OB/OS Filter Feature Turned On:
Mitigation of Broken Order Blocks: Provides flexibility in selecting the mitigation method (based on close or wick) for determining order block breaches.
Customizable Parameters: The script offers a range of customizable parameters to tailor the detection and visualization of order blocks to suit individual trading preferences. Users can adjust parameters such as RSI Length, Order Block Detection Sensitivity, Mitigation Method, and order block style to fine-tune the analysis according to their trading strategy.
🔶 Disclaimer :
Not Financial Advice: This indicator is intended for educational and informational purposes only. It does not constitute financial advice or recommendations to buy, sell, or hold any financial instruments.
Use at Own Risk: Trading involves substantial risk of loss and is not suitable for all investors. Users of this indicator should exercise caution and conduct their own research and analysis before making any trading decisions.
Performance Not Guaranteed: Past performance is not indicative of future results. While the indicator aims to assist traders in analyzing market trends, there is no guarantee of accuracy or success in trading operations.
Neutral State Stochastic Oscillator {DCAquant}Neutral State Stochastic Oscillator {DCAquant}
The Neutral State Stochastic Oscillator {DCAquant} is an enhanced version of the classic Stochastic Oscillator. This iteration aims to refine the detection of neutral market states — periods where the market is neither overbought nor oversold — potentially signaling a period of consolidation or equilibrium before the next significant price move.
Key Features:
Advanced Oscillator Analysis: It extends the traditional use of the Stochastic Oscillator by identifying a neutral zone, which may signal a pause in market momentum.
Customizable Sensitivity: Users can adjust parameters such as K and D periods, Smooth K, and neutral zone thresholds to tailor the indicator to their trading style.
Neutral Zone Detection: This tool is especially adept at pinpointing where the %K and %D lines converge within a specific threshold, marking a neutral state.
How it Works:
%K and %D Calculation: The indicator calculates the Stochastic %K and %D lines over user-defined periods, smoothing %K for clearer signals.
Neutral Zone Threshold: A threshold defines how close %K and %D lines should be to each other to qualify as a neutral state, offering a refined perspective on market momentum.
Visual Contrast: The indicator employs a distinct color scheme to distinguish between neutral (gray), bullish (%K>%D in aqua), and bearish (%K<%D in fuchsia) market conditions, directly on the price chart.
Visual Indicators and Interpretation:
Neutral Market Condition: A gray background indicates a neutral state where %K and %D are close, suggesting a balanced market awaiting new forces to define the trend.
Market Extremes: Aqua and fuchsia backgrounds highlight when the market is exiting the neutral zone, potentially signaling the start of an uptrend or downtrend.
Strategic Application:
Consolidation and Breakout Identification: This tool helps in identifying consolidation zones which could lead to potential breakouts or breakdowns, aiding in strategic entry and exit decisions.
Multifaceted Market Analysis: By revealing neutral market states, it serves as a vital component in a comprehensive trading strategy, augmenting the insights provided by other technical indicators.
Customization and Usage:
Flexible for Various Markets: The Neutral State Stochastic Oscillator {DCAquant} is adaptable for a variety of markets, whether you're trading cryptocurrencies, stocks, forex, or commodities.
Confirmatory Tool: It acts as an excellent confirmatory tool when used with price action analysis, other oscillators, or trend indicators, ensuring a well-rounded analytical approach.
Disclaimer and User Guidance:
The Neutral State Stochastic Oscillator {DCAquant} is a sophisticated trading tool designed for informative purposes. Traders are advised to use it in conjunction with a robust risk management strategy and not as a standalone decision-making tool. As with all trading indicators, success cannot be guaranteed, and it is recommended that traders perform their due diligence before executing trades based on signals from this or any other analytical tool.
[blackcat] L3 Ultimate Market Sentinel (UMS)Script Introduction
The L3 Ultimate Market Sentinel (UMS) is a technical indicator specifically designed to capture market turning points. This indicator incorporates the principles of the Stochastic Oscillator and provides a clear view of market dynamics through four key boundary lines — the Alert Line, Start Line, Safe Line, and Divider Line. The UMS indicator not only focuses on the absolute movement of prices but also visually displays subtle changes in market sentiment through color changes (green for rise, red for fall), helping traders quickly identify potential buy and sell opportunities.
In the above image, you can see how the UMS indicator labels different market conditions on the chart. Green candlestick charts indicate price increases, while red candlestick charts indicate price decreases. The Alert Line (Alert Line) is typically set at a higher level to warn of potential overheating in the market; the Start Line (Start Line) is in the middle, marking the beginning of market momentum; the Safe Line (Safe Line) is at a lower level, indicating a potential oversold state in the market; the Divider Line (Divider Line) helps traders identify whether the market is in an overbought or oversold area.
Script Usage
1. **Identifying Turning Points**: Traders should pay close attention to the Alert Line and Safe Line in the UMS indicator. When the indicator approaches or touches the Alert Line, it may signal an imminent market reversal; when the indicator touches the Safe Line, it may indicate that the market is oversold and there is a chance for a rebound.
2. **Color Changes**: By observing the color changes in the histogram, traders can quickly judge market trends. The transition from green to red may indicate a weakening of upward momentum, while the shift from red to green could suggest a slowdown in downward momentum.
3. **Trading Strategy**: The UMS indicator is suitable for a variety of trading timeframes, ranging from 1 minute to 1 hour. Short-term traders can use the UMS indicator to capture rapid market fluctuations, while medium-term traders can combine it with other analytical tools to confirm the sustainability of trends.
Advantages and Limitations of the Indicator
**Advantages**:
- Intuitive color coding that is easy to understand and use.
- Multiple boundary lines provide comprehensive market analysis.
- Suitable for a variety of trading timeframes, offering high flexibility.
**Limitations**:
- As a single indicator, it may not cover all market dynamics.
- For novice traders, it may be necessary to use the UMS indicator in conjunction with other indicators to improve accuracy.
- The indicator may lag in extreme market conditions.
Special Note
The L3 Ultimate Market Sentinel (UMS) indicator is a powerful analytical tool, but it is not omnipotent. The market has its inherent risks and uncertainties, so it is recommended that traders use the UMS indicator in conjunction with their own trading strategies and risk management rules. Additionally, it is always recommended to fully test and verify any indicator in a simulated environment before actual application.
Fine-tune Inputs: Fourier Smoothed Volume zone oscillator WFSVZ0Use this Strategy to Fine-tune inputs for the (W&)FSVZ0 Indicator.
Strategy allows you to fine-tune the indicator for 1 TimeFrame at a time; cross Timeframe Input fine-tuning is done manually after exporting the chart data.
I suggest using "Close all" input False when fine-tuning Inputs for 1 TimeFrame. When you export data to Excel/Numbers/GSheets I suggest using "Close all" input as True, except for the lowest TimeFrame.
MEANINGFUL DESCRIPTION:
The Volume Zone oscillator breaks up volume activity into positive and negative categories. It is positive when the current closing price is greater than the prior closing price and negative when it's lower than the prior closing price. The resulting curve plots through relative percentage levels that yield a series of buy and sell signals, depending on level and indicator direction.
The Wavelet & Fourier Smoothed Volume Zone Oscillator (W&)FSVZO is a refined version of the Volume Zone Oscillator, enhanced by the implementation of the Discrete Fourier Transform . Its primary function is to streamline price data and diminish market noise, thus offering a clearer and more precise reflection of price trends.
By combining the Wavalet and Fourier aproximation with Ehler's white noise histogram, users gain a comprehensive perspective on volume-related market conditions.
HOW TO USE THE INDICATOR:
The default period is 2 but can be adjusted after backtesting. (I suggest 5 VZO length and NoiceR max length 8 as-well)
The VZO points to a positive trend when it is rising above the 0% level, and a negative trend when it is falling below the 0% level. 0% level can be adjusted in setting by adjusting VzoDifference. Oscillations rising below 0% level or falling above 0% level result in a natural trend.
HOW TO USE THE STRATEGY:
Here you fine-tune the inputs until you find a combination that works well on all Timeframes you will use when creating your Automated Trade Algorithmic Strategy. I suggest 4h, 12h, 1D, 2D, 3D, 4D, 5D, 6D, W and M.
When I ndicator/Strategy returns 0 or natural trend , Strategy Closes All it's positions.
ORIGINALITY & USFULLNESS:
Personal combination of Fourier and Wavalet aproximation of a price which results in less noise Volume Zone Oscillator.
The Wavelet Transform is a powerful mathematical tool for signal analysis, particularly effective in analyzing signals with varying frequency or non-stationary characteristics. It dissects a signal into wavelets, small waves with varying frequency and limited duration, providing a multi-resolution analysis. This approach captures both frequency and location information, making it especially useful for detecting changes or anomalies in complex signals.
The Discrete Fourier Transform (DFT) is a mathematical technique that transforms discrete data from the time domain into its corresponding representation in the frequency domain. This process involves breaking down a signal into its individual frequency components, thereby exposing the amplitude and phase characteristics inherent in each frequency element.
This indicator utilizes the concept of Ehler's Universal Oscillator and displays a histogram, offering critical insights into the prevailing levels of market noise. The Ehler's Universal Oscillator is grounded in a statistical model that captures the erratic and unpredictable nature of market movements. Through the application of this principle, the histogram aids traders in pinpointing times when market volatility is either rising or subsiding.
DETAILED DESCRIPTION:
My detailed description of the indicator and use cases which I find very valuable.
What is oscillator?
Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets.
What is volume zone oscillator?
Price Zone Oscillator measures if the most recent closing price is above or below the preceding closing price.
Volume Zone Oscillator is Volume multiplied by the 1 or -1 depending on the difference of the preceding 2 close prices and smoothed with Exponential moving Average.
What does this mean?
If the VZO is above 0 and VZO is rising. We have a bullish trend. Most likely.
If the VZO is below 0 and VZO is falling. We have a bearish trend. Most likely.
Rising means that VZO on close is higher than the previous day.
Falling means that VZO on close is lower than the previous day.
What if VZO is falling above 0 line?
It means we have a high probability of a bearish trend.
Thus the indicator returns 0 and Strategy closes all it's positions when falling above 0 (or rising bellow 0) and we combine higher and lower timeframes to gauge the trend.
In the next Image you can see that trend is negative on 4h, negative on 12h and positive on 1D. That means trend is negative.
I am sorry, the chart is a bit messy. The idea is to use the indicator over more than 1 Timeframe.
What is approximation and smoothing?
They are mathematical concepts for making a discrete set of numbers a
continuous curved line.
Fourier and Wavelet approximation of a close price are taken from aprox library.
Key Features:
You can tailor the Indicator/Strategy to your preferences with adjustable parameters such as VZO length, noise reduction settings, and smoothing length.
Volume Zone Oscillator (VZO) shows market sentiment with the VZO, enhanced with Exponential Moving Average (EMA) smoothing for clearer trend identification.
Noise Reduction leverages Euler's White noise capabilities for effective noise reduction in the VZO, providing a cleaner and more accurate representation of market dynamics.
Choose between the traditional Fast Fourier Transform (FFT) , the innovative Double Discrete Fourier Transform (DTF32) and Wavelet soothed Fourier soothed price series to suit your analytical needs.
Image of Wavelet transform with FAST settings, Double Fourier transform with FAST settings. Improved noice reduction with SLOW settings, and standard FSVZO with SLOW settings:
Fast setting are setting by default:
VZO length = 2
NoiceR max Length = 2
Slow settings are:
VZO length = 5 or 7
NoiceR max Length = 8
As you can see fast setting are more volatile. I suggest averaging fast setting on 4h 12h 1d 2d 3d 4d W and M Timeframe to get a clear view on market trend.
What if I want long only when VZO is rising and above 15 not 0?
You have set Setting VzoDifference to 15. That reduces the number of trend changes.
Example of W&FSVZO with VzoDifference 15 than 0:
VZO crossed 0 line but not 15 line and that's why Indicator returns 0 in one case an 1 in another.
What is Smooth length setting?
A way of calculating Bullish or Bearish (W&)FSVZO .
If smooth length is 2 the trend is rising if:
rising = VZO > ta.ema(VZO, 2)
Meaning that we check if VZO is higher that exponential average of the last 2 elements.
If smooth length is 1 the trend is rising if:
rising = VZO_ > VZO_
Use this Strategy to fine-tune inputs for the (W&)FSVZO Indicator.
(Strategy allows you to fine-tune the indicator for 1 TimeFrame at a time; cross Timeframe Input fine-tuning is done manually after exporting the chart data)
I suggest using " Close all " input False when fine-tuning Inputs for 1 TimeFrame . When you export data to Excel/Numbers/GSheets I suggest using " Close all " input as True , except for the lowest TimeFrame . I suggest using 100% equity as your default quantity for fine-tune purposes. I have to mention that 100% equity may lead to unrealistic backtesting results. Be avare. When backtesting for trading purposes use Contracts or USDT.
[KVA] Kamvia Directional MovementKamvia Directional Movement (KDM) Indicator is an analytical tool designed to identify potential buying and selling opportunities in the market. It highlights the phases of price depletion which typically align with price highs and lows, offering a nuanced understanding of market dynamics.
Efficient at pinpointing trend breakdowns and excelling in the identification of intra-day entry and exit points, the Kamvia Directional Movement Indicator is a valuable asset for traders aiming to optimize their market strategies.
The KDM not only takes into account the traditional high and low price points within its analysis but also introduces an innovative approach by incorporating the concepts of body high and body low. This nuanced analysis offers a deeper insight into market momentum and potential shifts in market dynamics.
High and Low Analysis : The indicator examines the price highs and lows to gauge the overall market volatility and potential turning points. By analyzing these extremities, traders can get a sense of market strength and possible shifts in trend direction. The high points indicate periods of maximum buying interest, potentially signaling overbought conditions, while the low points reflect selling interest, hinting at oversold conditions.
Body High and Body Low Analysis : Unique to the KDM Indicator is the emphasis on the body of the candlestick, which is the range between the open and close prices. This analysis offers a more refined view of market sentiment by focusing on the actual trading range experienced within the period. The body high (the upper end of the candlestick body) and body low (the lower end of the candlestick body) provide insights into the buying and selling pressure during the trading session, beyond mere price extremities.
The indicator is calibrated on a scale from 0 to 100, making interpretation intuitive and straightforward. A reading above 70 is considered to be in the overbought region, suggesting that the market might be experiencing a heightened level of buying activity that could lead to a potential pullback or reversal. Conversely, a reading below 30 falls into the oversold region, indicating a possible exhaustion in selling pressure and a potential for market reversal or bounce back.
This scale and the detailed analysis of both price and body dynamics equip traders with a comprehensive tool for assessing market conditions. The distinction between high/low and body high/body low analysis enriches the indicator's capability to provide more targeted insights into market behavior, enabling traders to make more nuanced decisions based on a broader spectrum of information. By identifying the duration and extent to which these conditions persist, traders can better interpret the market's momentum and align their strategies with the prevailing trend or prepare for an impending reversal.
KDM Strategy
The strategy focuses on spotting price reversals within a confirmed trend. While the indicator features regions indicating overbought and oversold conditions, these signals alone are not sufficient predictors of a market reversal.
The terms "overbought" and "oversold" describe scenarios where prices reach levels that are unusually high or low within a specified look-back period. Entering these zones often indicates a continuation of the trend rather than a reversal.
A "strongly overbought" condition signals buying pressure, whereas a "strongly oversold" condition indicates selling pressure. The key to leveraging these conditions lies in analyzing the duration for which the market remains in either state. This duration can provide critical insights into whether the market is trending or ranging.
Extended periods in extreme overbought territories confirm an uptrend, while prolonged presence in slight overbought zones (above 50 but below 70, for example) suggests a more moderate uptrend. Conventionally, levels above 70 signal extreme overbought conditions, and those below 30 indicate extreme oversold conditions.
Traders are advised to exercise caution when the oscillator stays within these extreme areas. Ideally, the strategy involves capitalizing on temporary price drops within an overall uptrend or on temporary price spikes within an overall downtrend.
Identifying trading opportunities with the KDM Indicator involves looking for the indicator to exit these extreme overbought or oversold regions, signaling potential reversals or continuations in the market's direction. This approach helps traders make informed decisions by considering the broader market trend alongside short-term price movements.
DEMA RSI Overlay [BackQuant]DEMA RSI Overlay
PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner.
Anyways,
BackQuant's new trading indicator that blends the Double Exponential Moving Average (DEMA) with the Relative Strength Index (RSI) to create a unique overlay on the trading chart. This combination is not arbitrary; both the DEMA and RSI are revered for their distinct advantages in trading strategy development. Let's delve into the core components of this script, the rationale behind choosing DEMA and RSI, the logic of long and short signals, and its practical trading applications.
Understanding DEMA
DEMA is an enhanced version of the conventional exponential moving average that aims to reduce the lag inherent in traditional averages. It does this by applying more weight to recent prices. The reduction in lag makes DEMA an excellent tool for tracking price trends more closely. In the context of this script, DEMA serves as the foundation for the RSI calculation, offering a smoother and more responsive signal line that can provide clearer trend indications.
Why DEMA?
DEMA is chosen for its responsiveness to price changes. This characteristic is particularly beneficial in fast-moving markets where entering and exiting positions quickly is crucial. By using DEMA as the price source, the script ensures that the signals generated are timely and reflective of the current market conditions, reducing the risk of entering or exiting a trade based on outdated information.
Integrating RSI
The RSI, a momentum oscillator, measures the speed and change of price movements. It oscillates between zero and 100 and is typically used to identify overbought or oversold conditions. In this script, the RSI is calculated based on DEMA, which means it inherits the responsiveness of DEMA, allowing traders to spot potential reversals or continuation signals sooner.
Why RSI?
Incorporating RSI offers a measure of price momentum and market conditions relative to past performance. By setting thresholds for long (buy) and short (sell) signals, the script uses RSI to identify potential turning points in the market, providing traders with strategic entry and exit points.
Calculating Long and Short Signals
Long Signals : These are generated when the RSI of the DEMA crosses above the longThreshold (set at 70 by default) and the closing price is not above the upper volatility band. This suggests that the asset is gaining upward momentum while not being excessively overbought, presenting a potentially favorable buying opportunity.
Short Signals : Generated when the RSI of the DEMA falls below the shortThreshold (set at 55 by default). This indicates that the asset may be losing momentum or entering a downtrend, signaling a possible selling or shorting opportunity.
Logical Soundness
The logic of combining DEMA with RSI for generating trade signals is sound for several reasons:
Timeliness : The use of DEMA ensures that the price source for RSI calculation is up-to-date, making the momentum signals more relevant.
Balance : By setting distinct thresholds for long and short signals, the script balances sensitivity and specificity, aiming to minimize false signals while capturing genuine market movements.
Adaptability : The inclusion of user inputs for periods and thresholds allows traders to customize the indicator to fit various trading styles and timeframes.
Trading Use-Cases
This DEMA RSI Overlay indicator is versatile and can be applied across different markets and timeframes. Its primary use-cases include:
Trend Following: Traders can use it to identify the start of a new trend or the continuation of an existing trend.
Swing Trading: The indicator's sensitivity to price changes makes it ideal for swing traders looking to capitalize on short to medium-term price movements.
Risk Management: By providing clear long and short signals, it helps traders manage their positions more effectively, potentially reducing the risk of significant losses.
Final Note
We have also decided to add in the option of standard deviation bands, calculated on the DEMA, this can be used as a point of confluence rendering trading ranges. Expanding when volatility is high and compressing when it is low.
For example:
This provides the user with a 1, 2, 3 standard deviation band of the DEMA.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Multi-Timeframe SMA Crossover Indicator## Description of the "Multi-Timeframe SMA Crossover Indicator" script
### Introduction:
The "Multi-Timeframe SMA Crossover Indicator" script is a technical indicator created in Pine Script for the TradingView platform. It is a technical indicator that helps traders identify signals of simple moving average (SMA) crossovers on different timeframes.
### Features:
1. **Multi-Timeframe Analysis:** The script covers various timeframes, allowing traders to analyze SMA crossover signals on different time scales.
2. **SMA Crossover Signals:** The script identifies moments when the crossover of 20 and 40 simple moving averages occurs on timeframes ranging from 1 minute to 120 minutes.
3. **Visualization:** It visualizes SMA crossover signals on the chart, making it easy for traders to identify trend reversal points.
### How to Use:
1. **Interpreting Signals:** A positive signal (green) indicates that the SMA crossover suggests a potential uptrend, while a negative signal (red) suggests a potential downtrend.
2. **Multiple Confirmation:** Traders can seek trend confirmation by analyzing signals on different timeframes. Confirming signals on multiple timeframes can increase confidence in the trade.
### Application:
The "Multi-Timeframe SMA Crossover Indicator" script can be used as a supplementary tool in making investment decisions in financial markets, especially when analyzing trends and identifying entry or exit points.
### Notes:
1. The script is based on simple moving averages (SMA), which can be useful for traders using trend analysis strategies.
2. Investors should use other technical analysis indicators and tools in conjunction with this indicator to obtain a more comprehensive market analysis.
### Conclusion:
The "Multi-Timeframe SMA Crossover Indicator" script is a useful tool for traders who want to analyze trend changes on different timeframes. By using this tool, investors can make better-informed investment decisions in financial markets.
Multi-Timeframe Momentum Indicator [Ox_kali]The Multi-Timeframe Momentum Indicator is a trend analysis tool designed to examine market momentum across various timeframes on a single chart. Utilizing the Relative Strength Index (RSI) to assess the market’s strength and direction, this indicator offers a multidimensional perspective on current trends, enriching technical analysis with a deeper understanding of price movements. Other oscillators, such as the MACD and StochRSI, will be integrated in future updates.
Regarding the operation with the RSI: when its value is below 50 for a given period, the trend is considered bearish. Conversely, a value above 50 indicates a bullish trend. The indicator goes beyond the isolated analysis of each period by calculating an average of the displayed trends, based on user preferences. This average, ranging from “Strong Down” to “Strong Up,” reflects the percentage of periods indicating a bullish or bearish trend, thus providing a precise overview of the overall market condition.
Key Features:
Multi-Timeframe Analysis : Allows RSI analysis across multiple timeframes, offering an overview of market dynamics.
Advanced Customization : Includes options to adjust the RSI period, the RSI trend threshold, and more.
Color and Transparency Options : Offers color styles for bullish and bearish trends, as well as adjustable transparency levels for personalized visualization.
Average Trend Display : Calculates and displays the average trend based on activated timeframes, providing a quick summary of the current market state.
Flexible Table Positioning : Allows users to choose the indicator’s display location on the chart for seamless integration.
List of Parameters:
RSI Period : Defines the RSI period for calculation.
RSI Up/Down Threshold: Threshold for determining bullish or bearish trends of the RSI.
Table Position: Location of the indicator’s display on the chart.
Color Style : Selection of the color style for the indicator.
Strong Down/Up Color (User) : Customization of colors for strong market movements.
Table TF Transparency : Adjustment of the transparency level for the timeframe table.
Show X Minute/Hour/Day/Week Trend : Activation of the RSI display for specific timeframes.
Show AVG : Option to display or not the calculated average trend.
the Multi-Timeframe Momentum Indicator , stands as a comprehensive tool for market trend analysis across various timeframes, leveraging the RSI for in-depth market insights. With the promise of future updates including the integration of additional oscillators like the MACD and StochRSI, this indicator is set to offer even more robust analysis capabilities.
Please note that the MTF-Momentum is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
Divergence Detector [TradingFinder] RSI + MACD + AO Oscillator 🔵 Introduction
🟣 Understanding Divergence
As mentioned, divergence occurs in technical analysis when a stock's price behaves contrary to indicators on the price chart. Divergence can signify either a reversal of the stock's trend or a continuation of the previous trend correction.
Divergences can act as reversal patterns or continuation patterns. Moreover, divergences can be utilized to identify potential support and resistance levels.
For instance, when an indicator is trending upwards and positive, but the price is declining and trending downwards, divergence occurs. Divergence in a stock indicates trader indecision in buying and selling and warns traders to reconsider their decisions regarding buying or holding the stock.
Divergence aids analysts in identifying critical price points. In indicator divergences, it serves as a potent signal in the realm of technical analysis.
🟣 Types of Divergence
1.Regular Divergence
o Positive Regular Divergence (RD+)
o Negative Regular Divergence (RD-)
2.Hidden Divergence
o Positive Hidden Divergence (HD+)
o Negative Hidden Divergence (HD-)
3.Time Divergence
Key Note : This indicator is specifically designed to identify "Regular Divergence" only. Therefore, the following explanation pertains to this type of divergence.
🔵 Regular Divergence/Convergence
Regular Divergence(Convergence) occurs due to conflicting behavior between the indicator and the price chart, typically at the end of a trend. Recognizing Regular Divergence suggests an anticipation of a trend reversal or a pattern resembling a reversal.
🟣 Positive Regular Divergence (RD+)
In contrast to negative divergence, positive Regular Divergence occurs at the end of a downtrend and between two price lows. It manifests when the price forms a new low on the price chart, but the indicator fails to recognize it.
Positive Regular Divergence indicates strong buying pressure and weak selling pressure. Following the identification of positive divergence on the chart, one can anticipate a price increase for the examined stock.
🟣 Negative Regular Divergence (RD-)
This type of Regular Divergence emerges between two price highs during an uptrend. A new high is formed on the price chart, but the indicator fails to acknowledge it. This scenario indicates negative Regular Divergence.
The likelihood of a subsequent market downturn is high. Negative divergence signifies strong selling pressure and weak buying pressure, suggesting an unfavorable future for the stock.
🔵 How to use
By utilizing the "Fractal Period" input, you can specify your desired periods for identifying divergences.
Additionally, through the "Divergence Detect Method" feature, you can choose which oscillators (MACD, RSI, or AO) to base divergence identification on.
Divergence in MACD Oscillator :
Divergence in the MACD indicator occurs when the price chart and the MACD line form a noticeable opposing pattern, meaning the price moves contrary to the MACD line. In this scenario, one expects a reversal in price direction.
Divergence in RSI Oscillator :
If divergence occurs during a downtrend on the price chart (two consecutive lows, with the second low being lower) and on the corresponding RSI point (two consecutive lows, with the second low being higher), it signifies positive Regular Divergence and implies a buying signal.
Conversely, if divergence occurs during an uptrend on the price chart (two consecutive highs, with the second high being higher) and on the corresponding RSI point (two consecutive highs, with the second high being lower), it indicates negative Regular Divergence, signaling a selling opportunity.
Divergence in AO Oscillator :
The AO indicator calculates histograms similar to the AO base. It calculates the difference between the simple moving averages of 5 and 34 periods based on the median of each bar. Then, it plots the bars based on the difference.
It then compares the histograms to detect peaks and troughs in the AO histograms and compares the identified peaks and troughs to the price. Whenever divergence is detected, it plots lines and arrows.
🔵 Table
The table contains information on the functional features of this oscillator that you can utilize. Four categories of information are presented in the table: "Exist," "Consecutive," "Divergence Quality," and "Change Phase Indicator."
Exist :
If divergence exists, you'll see "+" in this row.
Consecutive :
Divergences may occur consecutively. If same-type divergences form within short intervals, you can observe the count in this row.
Divergence Quality : Based on the number of consecutive divergences, their quality can be evaluated. If one divergence exists, its quality is considered "Normal." If two divergences exist, the quality is "Good," and if three or more divergences exist, the quality is considered "Strong."
Change Phase Indicator : If a phase change occurs between two oscillation peaks formed based on divergence, this change is identified and displayed in this row.
MACD on RSIThe MACD on RSI indicator combines elements of the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). It calculates the RSI on a specified source with a customizable length, then applies two exponential moving averages (EMAs) to the RSI values. The difference between these EMAs forms the MACD line, visually representing the momentum of the RSI.
Heikin Ashi RSI + OTT [Erebor]Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a popular momentum oscillator used in technical analysis to measure the speed and change of price movements. Developed by J. Welles Wilder, the RSI is calculated using the average gains and losses over a specified period, typically 14 days. Here's how it works:
Description and Calculation:
1. Average Gain and Average Loss Calculation:
- Calculate the average gain and average loss over the chosen period (e.g., 14 days).
- The average gain is the sum of gains divided by the period, and the average loss is the sum of losses divided by the period.
2. Relative Strength (RS) Calculation:
- The relative strength is the ratio of average gain to average loss.
The RSI oscillates between 0 and 100. Traditionally, an RSI above 70 indicates overbought conditions, suggesting a potential sell signal, while an RSI below 30 suggests oversold conditions, indicating a potential buy signal.
Pros of RSI:
- Identifying Overbought and Oversold Conditions: RSI helps traders identify potential reversal points in the market due to overbought or oversold conditions.
- Confirmation Tool: RSI can be used in conjunction with other technical indicators or chart patterns to confirm signals, enhancing the reliability of trading decisions.
- Versatility: RSI can be applied to various timeframes, from intraday to long-term charts, making it adaptable to different trading styles.
Cons of RSI:
- Whipsaws: In ranging markets, RSI can generate false signals, leading to whipsaws (rapid price movements followed by a reversal).
- Not Always Accurate: RSI may give false signals, especially in strongly trending markets where overbought or oversold conditions persist for extended periods.
- Subjectivity: Interpretation of RSI levels (e.g., 70 for overbought, 30 for oversold) is somewhat subjective and can vary depending on market conditions and individual preferences.
Checking RSIs in Different Periods:
Traders often use multiple timeframes to analyze RSI for a more comprehensive view:
- Fast RSI (e.g., 8-period): Provides more sensitive signals, suitable for short-term trading and quick decision-making.
- Slow RSI (e.g., 32-period): Offers a smoother representation of price movements, useful for identifying longer-term trends and reducing noise.
By comparing RSI readings across different periods, traders can gain insights into the momentum and strength of price movements over various timeframes, helping them make more informed trading decisions. Additionally, divergence between fast and slow RSI readings may signal potential trend reversals or continuation patterns.
Heikin Ashi Candles
Let's consider a modification to the traditional “Heikin Ashi Candles” where we introduce a new parameter: the period of calculation. The traditional HA candles are derived from the open 01, high 00 low 00, and close 00 prices of the underlying asset.
Now, let's introduce a new parameter, period, which will determine how many periods are considered in the calculation of the HA candles. This period parameter will affect the smoothing and responsiveness of the resulting candles.
In this modification, instead of considering just the current period, we're averaging or aggregating the prices over a specified number of periods . This will result in candles that reflect a longer-term trend or sentiment, depending on the chosen period value.
For example, if period is set to 1, it would essentially be the same as traditional Heikin Ashi candles. However, if period is set to a higher value, say 5, each candle will represent the average price movement over the last 5 periods, providing a smoother representation of the trend but potentially with delayed signals compared to lower period values.
Traders can adjust the period parameter based on their trading style, the timeframe they're analyzing, and the level of smoothing or responsiveness they prefer in their candlestick patterns.
Optimized Trend Tracker
The "Optimized Trend Tracker" is a proprietary trading indicator developed by TradingView user ANIL ÖZEKŞİ. It is designed to identify and track trends in financial markets efficiently. The indicator attempts to smooth out price fluctuations and provide clear signals for trend direction.
The Optimized Trend Tracker uses a combination of moving averages and adaptive filters to detect trends. It aims to reduce lag and noise typically associated with traditional moving averages, thereby providing more timely and accurate signals.
Some of the key features and applications of the OTT include:
• Trend Identification: The indicator helps traders identify the direction of the prevailing trend in a market. It distinguishes between uptrends, downtrends, and sideways consolidations.
• Entry and Exit Signals: The OTT generates buy and sell signals based on crossovers and direction changes of the trend. Traders can use these signals to time their entries and exits in the market.
• Trend Strength: It also provides insights into the strength of the trend by analyzing the slope and momentum of price movements. This information can help traders assess the conviction behind the trend and adjust their trading strategies accordingly.
• Filter Noise: By employing adaptive filters, the indicator aims to filter out market noise and false signals, thereby enhancing the reliability of trend identification.
• Customization: Traders can customize the parameters of the OTT to suit their specific trading preferences and market conditions. This flexibility allows for adaptation to different timeframes and asset classes.
Overall, the OTT can be a valuable tool for traders seeking to capitalize on trending market conditions while minimizing false signals and noise. However, like any trading indicator, it is essential to combine its signals with other forms of analysis and risk management strategies for optimal results. Additionally, traders should thoroughly back-test the indicator and practice using it in a demo environment before applying it to live trading.
The following types of moving average have been included: "SMA", "EMA", "SMMA (RMA)", "WMA", "VWMA", "HMA", "KAMA", "LSMA", "TRAMA", "VAR", "DEMA", "ZLEMA", "TSF", "WWMA". Thanks to the authors.
Thank you for your indicator “Optimized Trend Tracker”. © kivancozbilgic
Thank you for your programming language, indicators and strategies. © TradingView
Kind regards.
© Erebor_GIT
Trend: SMA with ATR Bands and EMA [Oxyge]Brief introduction:
Easy to use trend indicator to help find entry positions
How it works:
1, short-term trend judgment: EMA is greatly influenced by short-term trends, so it is very good to use it as a tool for judging short-term trends. At the same time, the filtering function has been added:
Long: green
Short: red
No direction: blue
2, the general trend judgment: the use of 30SMA as the default trend line, while increasing the ATR band to increase the scope of judgment.
How do I use (assuming it is now a period of long market):
1, first look at the 30SMA and ATR band, if the slope is positive (> 45 °), then ready to go long!
2. When price comes to the ATR band, the ATR band is my point of interest
3. Wait for a test of the ATR band: the EMA turns green, which means that the short-term trend is already nice and long.
4. Stop Loss Placement: Stop Loss is placed at the most recent low.
Closing
Enjoy it!
——————————————
简单介绍：
简单易用的趋势指标，帮助寻找进场位置
它怎么工作：
1、短期趋势判断：EMA受短期趋势影响很大，因此把它作为判断短期趋势的工具非常好用。同时增加了过滤功能：
多头：绿色
空头：红色
无方向：蓝色
2、大趋势判断：使用30SMA作为默认趋势线，同时增加ATR带增加判断范围。
我是如何使用的（假设是现在是一段多头行情）：
1、先看30SMA和ATR带，如果斜率为正（>45°），那么准备做多
2、当价格来到ATR带时，ATR带是我的感兴趣的点
3、等待一次对于ATR带的测试：EMA变成绿色，代表短期已经是不错的多头趋势
4、止损放置：止损放置在最近的低点
结束
请享受它
Adaptive Schaff Trend Cycle (STC) [AlgoAlpha]Introducing the Adaptive Schaff Trend Cycle by AlgoAlpha: Elevate Your Trading Strategies 🚀
Discover precision and adaptability with the Adaptive Schaff Trend Cycle 🎯, meticulously crafted for traders seeking an edge in the markets. This advanced tool integrates sophisticated algorithms to offer clear insights and real-time analytics 📈.
Key Features:
⚙️Adaptive Signal Processing: Utilizes evolving calculations to adjust to market changes, offering highly responsive signals.
🔍Enhanced MACD Analysis: Innovates on the traditional MACD, providing new insights into market dynamics through an adaptive lens.
🎨Customizable Visual Experience: Features customizable up and down colors for tailored chart analysis.
🔔Real-Time Alerts: Stay informed with instant alerts on indicator changes.
Quick Guide to Using the Adaptive STC Indicator
1. 🔧 Adding the Indicator: Search for "Adaptive Schaff Trend Cycle (STC) " within TradingView's Indicators & Strategies and apply it to your chart. Customize the settings according to your trading style for optimum results.
2.👀 Market Analysis: Monitor the STC and Histogram values closely. The indicator's color gradients provide a visual representation of momentum shifts, helping you to identify trends more clearly.
3. 🚨 Set Alerts: Enable alerts for specific conditions like significant moves up or down, or when the histogram crosses zero. This feature ensures you never miss a potential trading opportunity.
How It Works:
The Adaptive Schaff Trend Cycle by AlgoAlpha introduces a dynamic approach to market analysis, refining traditional indicators through adaptive logic to align with fluctuating market conditions. Here's a concise overview of its operation:
🔄 Adaptive MACD Adjustment: The foundation of the indicator is an enhanced MACD calculation, which dynamically adjusts its parameters based on real-time market trends and momentum. This algorithmic adjustment aims to ensure the MACD's responsiveness to market changes, adapting its sensitivity to offer timely insights .
🌟 Integration of Schaff Trend Cycle (STC): After adjusting the MACD, the indicator calculates STC values to provide a smoothed representation of market trends. By normalizing and smoothing the MACD values on a scale from 0 to 100, the STC method helps in identifying market phases with a clear visualization. The smoothing process is designed to mitigate noise and focus on significant market movements .
📊 Visualization and Alerts: To aid in the interpretation of these insights, the Adaptive Schaff Trend Cycle employs color gradients and customizable visual settings to indicate momentum shifts. These visual cues, combined with alert functionalities, are structured to assist traders in monitoring market developments, enabling them to make informed decisions based on the presented data .
🛠️The Adaptive Schaff Trend Cycle thus merges adaptive MACD adjustments with STC methodology, supported by visual and alert features, to create a tool aimed at enhancing market analysis. By focusing on adaptability and current market conditions, it provides a nuanced view of market trends, intended to support traders in their decision-making processes without promising predictive accuracy or reliability .
LSMA Z-Score [BackQuant]LSMA Z-Score
Main Features and Use in the Trading Strategy
- The indicator normalizes the LSMA into a detrended Z-Score, creating an oscillator with standard deviation levels to indicate trend strength.
- Adaptive coloring highlights the rate of change and potential reversals, with different colors for positive and negative changes above and below the midline.
- Extreme levels with adaptive coloring indicate the probability of a reversion, providing strategic entry or exit points.
- Alert conditions for crossing the midline or significant shifts in trend direction enhance its utility within a trading strategy.
1. What is an LSMA?
The Least Squares Moving Average (LSMA) is a technical indicator that smoothens price data to help identify trends. It uses the least squares regression method to fit a straight line through the selected price points over a specified period. This approach minimizes the sum of the squares of the distances between the line and the price points, providing a more statistically grounded moving average that can adapt more smoothly to price changes.
2. What is a Z-Score?
A Z-Score is a statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean. If a Z-Score is 0, it indicates that the data point's score is identical to the mean score. A Z-Score helps in understanding if a data point is typical for a given data set or if it is atypical. In finance, a Z-Score is often used to measure how far a piece of data is from the average of a set, which can be helpful in identifying outliers or unusual data points.
3. Why Turning LSMA into a Z-Score is Innovative and Its Benefits
Converting LSMA into a Z-Score is innovative because it combines the trend identification capabilities of the LSMA with the statistical significance testing of Z-Scores. This transformation normalizes the LSMA, creating a detrended oscillator that oscillates around a mean (zero line), with standard deviation levels to show trend strength. This method offers several benefits:
Enhanced Trend Detection:
- By normalizing the LSMA, traders can more easily identify when the price is deviating significantly from its trend, which can signal potential trading opportunities.
Standardization:
- The Z-Score transformation allows for comparisons across different assets or time frames, as the score is standardized.
Objective Measurement of Trend Strength:
- The use of standard deviation levels provides an objective measure of trend strength and volatility.
4. How It Can Be Used in the Context of a Trading System
This indicator can serve as a versatile tool within a trading system for a range of things:
Trend Confirmation:
- A positive Z-Score can confirm an uptrend, while a negative Z-Score can confirm a downtrend, providing traders with signals to enter or exit trades.
Oversold/Overbought Conditions:
- Extreme Z-Score levels can indicate overbought or oversold conditions, suggesting potential reversals or pullbacks.
Volatility Assessment:
- The standard deviation levels can help traders assess market volatility, with wider bands indicating higher volatility.
5. How It Can Be Used for Trend Following
For trend following strategies, this indicator can be particularly useful:
Trend Strength Indicator:
- By monitoring the Z-Score's distance from zero, traders can gauge the strength of the current trend, with larger absolute values indicating stronger trends.
Directional Bias:
- Positive Z-Scores can be used to establish a bullish bias, while negative Z-Scores can establish a bearish bias, guiding trend following entries and exits.
Color-Coding for Trend Changes :
- The adaptive coloring of the indicator based on the rate of change and extreme levels provides visual cues for potential trend reversals or continuations.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
This is using the Midline Crossover:
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
