kyle algo v1
Integration of multiple technical indicators: The strategy mainly combines two technical indicators - Keltner Channels and Supertrend, to generate trading signals. It also calculates fifteen exponential moving averages (EMAs) for the high price with different periods ranging from 9 to 51.
Unique combination of indicators: The traditional Supertrend typically uses Average True Range (ATR) to calculate its upper and lower bands. In contrast, this script modifies the approach to use Keltner Channels instead.
Flexible sensitivity adjustment: This strategy provides a "sensitivity" input parameter for users to adjust, which controls the multiplier for the range in the Supertrend calculation. This can make the signals more or less sensitive to price changes, allowing users to tailor the strategy to their own risk tolerance and trading style.
EMA Energy Representation: The code offers a visualization of "EMA Energy", which color-codes the EMA lines based on whether the closing price is above or below the EMA line. This can provide an intuitive understanding of market trends.
Clear visual signals: The strategy generates clear "BUY" and "SELL" signals, represented as labels on the chart. This makes it easy to identify potential entry and exit points in the market.
Customizable: The script provides several user inputs, making it possible to fine-tune the strategy according to different market conditions and individual trading preferences.
EMA (Exponential Moving Average) Principle:
The EMA is a type of moving average that assigns more weight to the most recent data.
It responds more quickly to recent price changes and is used to capture short-term price trends.
Principle of Color Change :
In this trading strategy, the color of the EMA line changes based on whether the closing price is above or below the EMA. If the closing price is above the EMA, the EMA line turns green,
indicating an upward price trend. Conversely, if the closing price is below the EMA, the EMA line turns red,
indicating a downward price trend. These color changes help traders to more intuitively identify price trends
In short, our team provides a lot of practical space
That is your development space
Oscillators
@tk · fractal rsi levels█ OVERVIEW
This script is an indicator that helps traders to identify the RSI Levels for multiple fractals wherever the current timeframe is. This script was based on RSI Levels, 20-30 & 70-80 by abdomi indicator, that calculates the Relative Strenght Index levels based on the asset's price and plots it into the chart, creating a "wave" style indicator. The core feature of this indicator is the fractal rays, so trader can visualize each of the oversold and overbought levels of multiple timeframe on the current timeframe that he is on. The indicator will plots multiple rays after the chart bars. indicating where is the oversold and overbought levels for others fractals.
█ MOTIVATION
Since the RSI Levels, 20-30 & 70-80 by abdomi indicator helps a lot to identify the possible price levels when the asset is oversold or overbought, I saw myself drawing multiple horizontal lines on these levels in lower timeframes so, in an uptrend or downtrend, I can try to get a pullback of these trends when the asset reaches oversold or overboght levels. So, I get the idea to make those lines visible in multiple timeframes so I don't need to draw it myself manually anymore.
█ CONCEPT
The trading concept to use this indicator is the concept to make entries on uptrend or downtrend pullbacks when the asset price reaches oversold or overbought levels. But this strategy don't works alone. It needs to be aligned together with others indicators like Exponential Moving Averages, Chart Patterns, Support and Resistance, and so on... Even more confluences that you have, bigger are your chances to increase the probability for a successful trade. So, don't use this indicator alone. Compose a trading strategy and use it to improve your analysis.
█ CUSTOMIZATION
This indicator allows the trader to customize the following settings:
GENERAL
Text size
Changes the font size of the labels to improve accessibility.
Type: string
Options: `tiny`, `small`, `normal`, `large`.
Default: `small`
RSI LEVELS · SETTINGS
Pre-oversold Level
Changes the RSI Level to calculate the "pre-oversold" price level on the chart.
Type: int
Min: 1
Max: 49
Default: 33
Pre-overbought Level
Changes the RSI Level to calculate the "pre-overbought" price level on the chart.
Type: int
Min: 51
Max: 100
Default: 67
Show "Pre-over" Levels
Enables / Disables the pre-oversold and pre-overbought levels on the chart.
Type: bool
Default: true
FRACTAL RAYS · SETTINGS
Length
Changes the base length for the RSI calculation.
Type: int
Min: 1
Default: 14
Source
Changes the base source for the RSI calculation.
Type: float
Default: close
FRACTAL RAYS · STYLE
Ray Color
Changes the color of all fractal rays and its label.
Type: color
Default: color.rgb(187, 74, 207)
Ray Style
Changes the style of all fractal rays.
Type: string
Options: `line.style_solid`, `line.style_dashed`, `line.style_dotted`
Default: line.style_dotted
Ray Length
Changes the length of all fractal rays.
Type: int
Default: 15
FRACTAL RAYS · OVERSOLD
Oversold Level
Changes the base RSI Level for fractal rays calculation.
Type: int
Min: 1
Default: 30
Oversold Prefix
Customizes the fractal ray label with a prefix text.
Type: string
Default: 🚀
Oversold Suffix
Customizes the fractal ray label with a suffix text.
Type: string
Default: (empty)
FRACTAL RAYS · OVERBOUGHT
Overbought Level
Changes the base RSI Level for fractal rays calculation.
Type: int
Min: 1
Default: 70
Overbought Prefix
Customizes the fractal ray label with a prefix text.
Type: string
Default: 🐻
Overbought Suffix
Customizes the fractal ray label with a suffix text.
Type: string
Default: (empty)
FRACTAL RAYS · VISIBILITY RULES
These rules are applied for each of fractal rays so, the traders can choose what timeframes they wants to show the fractal rays for each of it. The rule will be applied as the following condition: `if timeframe != CURRENT_TIMEFRAME and timeframe <= CHOSEN_OPTION`. Actually, the fractal rays are on the chart but, isn't visible because it was applied a transparent color, so it is visually not on the chart to prevent chart's over polution.
LABELS
Show Labels on Price Scale
Shows labels on price scale.
Type: bool
Default: false
Show Price on Fractal Rays
Shows the RSI Level price on each of fractal rays respectively.
Type: bool
Default: false
█ EXTERNAL LIBRARIES
This script uses the `tk` library to calculate RSI Levels. It is a library that contains various functions that helps pine script developers to calculate RSI Levels.
█ FUNCTIONS
The library contains the following functions:
fn_fractalVisibilityRule(string visibilityRule)
Converts the fractal rays timeframe visibility rule label to timestamp int.
Parameters:
visibilityRule: (string) Fractal ray visibility rule label.
Returns: (int) Fractal ray visibility rule timestamp.
fn_requestFractal(string period, expression)
Converts the fractal rays timeframe visibility rule label to timestamp int.
Parameters:
period: (string) Timeframe period for the desired fractal.
expression: (mixed) Security expression that will be applied for calculation.
Returns: (mixed) A result determined by expression.
fn_plotRay(float y, string label, color color, int length)
Plots ray after chart bars for the current time.
Parameters:
period: (string) Timeframe period for the desired fractal.
expression: (mixed) Security expression that will be applied for calculation.
Returns: (void) This function only plots the elements into the chart
fn_plotRsiLevelRay(simple string period, simple int level, color color)
Plots RSI Levels ray after chart bars for the current time.
Parameters:
period: (simple string) Timeframe period.
level: (simple int) Relative Strength Index level.
color: (color) The color of both, ray and label text.
Returns: (void) This function only plots the elements into the chart
Webby's RSI 2.0Webby's RSI (Really Simple Indicator) 2.0 or version 5.150 as Mike himself calls it, builds upon the original Webby RSI by changing the way we measure extension from the 21-day exponential moving average.
Instead using the percentage of the low versus the 21-day exponential moving average, version 2 uses a multiple of the securities 50 day ATR (average true range) to determine the extension.
Version 2.0 also comes with some new additions, such as measuring the high vs 21-day exponential moving average when a security is below it, as well as an ATR extension from the 10-day simple moving average that Mike looks to as a guide to take partials.
adaptive_mfi
█ Description
Money flow an indexed value-based price and volume for the specified input length (lookback period). In summary, a momentum indicator that attempt to measure the flow of money (identify buying/selling pressure) through the asset within a specified period of time. MFI will oscillate between 0 to 100, oftentimes comprehend the analysis with oversold (20) or overbought (80) level, and a divergence that spotted to signaling a further change in trend/direction. As similar to many other indicators that use length (commonly a fixed value) as an input parameter, can be optimized by applied an adaptive filter (Ehlers), to solve the measuring cycle period. In this indicator, the adaptive measure of dominant cycle as an input parameter for the lookback period/n, will be applied to the money flow index.
█ Money Flow Index
mfi = 100 - (100/(1 + money_flow_ratio))
where:
n = int(dominant_cycle)
money_flow_ratio = n positive raw_money_flow / n negative raw_money_flow
raw_money_flow = typical_price * volume
typical_price = hlc3
█ Feature
The indicator will have a specified default parameter of: hp_period = 48; source = ohlc4
Horizontal line indicates positive/negative money flow
MFI Color Scheme: Solid; Normalized
AIR Vortex ADXThis project started as an effort to improve the user interface of the hybrid indicator ADX of Vortex, which is, as per the name, a blend of ADX and Vortex Indicator. Plotting both indicators on the same polarity and normalising the vortex, a better interpretation of the interaction between the two is possible, and trend becomes apparent.
Basically, the Vortex provides the bright punch and ADX the continuation of the trend and momentum.
A range mixer has been added to the vortex, comprising both true and interpercentile ranges (see my previous script for a desrciption of interpercentile range). Users can activate and add amounts of each as they see fit.
Finally, there is an RSI filter, the idea of which is to filter out ranging (flat) markets, where no distinct direction is yet emerging.
TTM Waves ABC ATR AO MOM SQZ//All code picked from many indicators, if you recognize your code, pls comment so people can see your awesome work! I only edited and added them all together so people don't use all their indicator slots. Hope this indicator helps as many people as it can. LFG!!!
AO (Awesome Oscillator) Useful to find potential reversals in trend.
MOM (Momentum) An oscillator that measures momentum.
ATR (Average True Range) Measures the upside and downside from the average price movement occuring. 1 ATR is the general measurement. Many traders use 2ATR to set a stop and 4ATR to set take profit from their entry based on current reading from the ATR.
SQZ ( TTM Squeeze) Measures when bollinger bands have left the interior of the Keltner Channel in an attempt to predict volatility thats about to happen to either side. Green = Move is probably about to happen.
TTM Waves ( Waves A, B, and C) Measure the previous candles to determine chop, positive or negative trends. C measures the previous 30 candles or so, B the last 15 or so, and A measures the last 8 or so. You can use all three or just one. You can sneak in a move if the 2 fastest ones have moved into your preferred area. (Positive or Negative) If the wave is not fully positve or negative then that is probably chop.
-Penguincryptic
RSI Chart LevelsThe RSI Chart Levels shows you in a simple way where Support/Resistance might be. You want to make sure all settings are the same in the RSI that you are using with this overlay to be accurate.
This is also good at spotting divergence in real-time. If price goes over the Higher High but the RSI hasn't gained a new Higher High it is showing divergence, vice versa for Lower Low.
This overlay was created with the idea of RSI Divergence Scanner by zdmre indicator. Add his RSI and match the settings to the chart overlay. The default Zigzag is set to 7 which zdmre settings is different so change to whatever you prefer.
Shoutout to zdmre original work!
RSI with J-Line ***For ease of use, I recommend changing the J Histogram to a line indicator, then it works like the KDJ Stochastic indicator. Full disclosure, I created this script with the help of GPT. This script was inspired by the KDJ Stochastic indicator by Dreadblitz***
The "RSI with J-Line" script is essentially a modified Relative Strength Index (RSI) indicator with an added histogram component. Here's how to use the different components of the script:
RSI Line (Blue): The RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and 100, and is typically used to identify overbought and oversold conditions in a market. Traditionally, readings over 70 are considered overbought, and readings under 30 are considered oversold. However, these are not strict rules and can vary depending on the market and the overall trend.
RSI Smooth Line (Orange): This is the simple moving average of the RSI. It helps to smooth out the RSI and to identify the overall trend of the momentum. When the RSI line crosses above the RSI Smooth line, it might indicate that the momentum is moving upwards. When the RSI line crosses below the RSI Smooth line, it might indicate that the momentum is moving downwards.
RSI J-Line (Red Histogram): The J-Line is an additional line that's calculated as 3*rsiSmooth - 2*rsi. It's similar to the %J line in the Stochastic indicator and is designed to provide quicker signals than the RSI or RSI Smooth line. When the histogram is above the 0 line, it might indicate bullish momentum. When it's below the 0 line, it might indicate bearish momentum.
Please note that these interpretations are standard for these types of indicators, but actual market behavior can be complex and is influenced by many factors. Indicators should be used as part of a comprehensive trading strategy, not in isolation. Always take into account other market information and indicators before making trading decisions.
Open Interest RSIThis indicator started as an experiment.
It is an RSI which is not based on the price but on the open interest.
It captures the momentum of the open interest in the same way as the RSI of the price.
Rules Open Interest (OI):
If the OI rises and the price rises = Bullish trend.
If the OI falls and the price continues to rise = bearish reversal possible
If the OI falls and the price continues to fall = Bullish reversal possible
If the OI rises and the price falls = Bearish trend
Since the OI RSI captures the momentum of the OI, it is recommended to include the price RSI for the analysis.
In the picture are marked different examples which show extreme situations
Example rose lines:
The price RSI and the OI RSI form a bearish divergence to the price and run parallel = strong bearish signal.
Example orange circles:
Price Falling. The price RSI is in the oversold zone and the OI RSI is above 53 or in the best case in the overbought zone. = Strong bullish signal
Example Blue circle:
The price RSI and the OI RSI are running parallel downwards and the price is also falling = bearish momentum.
As mentioned, this is an experiment. The tests were performed in the 4H chart
Have Fun
Price and Indicator CorrelationFIRST, CHANGE SOURCE OF INDICATOR FROM CLOSE TO WHATEVER INDICATOR YOU ARE COMPARING TO PRICE!!!!
Confirming Indicator Validity: By calculating the correlation coefficient between the price and a specific indicator, you can assess the degree to which the indicator and price move together. If there is a high positive correlation, it suggests that the indicator tends to move in the same direction as the price, increasing confidence in the indicator's validity. On the other hand, a low or negative correlation may indicate a weaker relationship between the indicator and price, signaling caution in relying solely on that indicator for trading decisions.
Identifying Divergence: Divergence occurs when the price and the indicator move in opposite directions. By monitoring the correlation coefficient, you can identify periods of divergence between the price and the selected indicator. Divergence may signal a potential reversal or significant price move, providing an opportunity to enter or exit trades.
Enhancing Trading Strategies: The correlation coefficient can be used to enhance trading strategies by incorporating the relationship between the price and the indicator. For example, if the correlation coefficient consistently shows a strong positive correlation, you may use the indicator as a confirmation tool for price-based trading signals. Conversely, if the correlation is consistently negative, it may indicate an inverse relationship that could be used for contrarian trading strategies.
Indicator Optimization : The correlation coefficient can help traders compare the effectiveness of different indicators. By calculating the correlation coefficient for multiple indicators against the price, you can identify which indicators have a stronger or weaker relationship with price movements. This information can guide the selection and optimization of indicators in your trading strategy.
Example:
RSI MACDDifferent Perspective : By using the RSI as the source for MACD calculation, you are incorporating the RSI's characteristics into the MACD indicator. The RSI measures the speed and change of price movements, while the MACD focuses on the convergence and divergence of moving averages. Combining these two indicators may provide a different perspective on market conditions.
Smoothed MACD : Since the RSI is being used as the source for the MACD calculation, the resulting MACD line (macd1 in the code) may exhibit smoother movements compared to a traditional MACD calculated directly from price data. This smoothing effect could potentially help filter out noise and provide a clearer representation of trend changes.
RSI Confirmation : The RSI is often used to identify overbought and oversold conditions. By incorporating the RSI into the MACD calculation, you can potentially gain additional confirmation when the MACD line crosses above or below zero. For example, if the MACD line crosses above zero and the RSI is in an oversold region, it could provide stronger confirmation for a bullish signal.
Example:
Stochastic Zone Strength Trend [wbburgin](This script was originally invite-only, but I'd vastly prefer contributing to the TradingView community more than anything else, so I am making it public :) I'd much rather share my ideas with you all.)
The Stochastic Zone Strength Trend indicator is a very powerful momentum and trend indicator that 1) identifies trend direction and strength, 2) determines pullbacks and reversals (including oversold and overbought conditions), 3) identifies divergences, and 4) can filter out ranges. I have some examples below on how to use it to its full effectiveness. It is composed of two components: Stochastic Zone Strength and Stochastic Trend Strength.
Stochastic Zone Strength
At its most basic level, the stochastic Zone Strength plots the momentum of the price action of the instrument, and identifies bearish and bullish changes with a high degree of accuracy. Think of the stochastic Zone Strength as a much more robust equivalent of the RSI. Momentum-change thresholds are demonstrated by the "20" and "80" levels on the indicator (see below image).
Stochastic Trend Strength
The stochastic Trend Strength component of the script uses resistance in each candlestick to calculate the trend strength of the instrument. I'll go more into detail about the settings after my description of how to use the indicator, but there are two forms of the stochastic Trend Strength:
Anchored at 50 (directional stochastic Trend Strength):
The directional stochastic Trend Strength can be used similarly to the MACD difference or other histogram-like indicators : a rising plot indicates an upward trend, while a falling plot indicates a downward trend.
Anchored at 0 (nondirectional stochastic Trend Strength):
The nondirectional stochastic Trend Strength can be used similarly to the ADX or other non-directional indicators : a rising plot indicates increasing trend strength, and look at the stochastic Zone Strength component and your instrument to determine if this indicates increasing bullish strength or increasing bearish strength (see photo below):
(In the above photo, a bearish divergence indicated that the high Trend Strength predicted a strong downwards move, which was confirmed shortly after. Later, a bullish move upward by the Zone Strength while the Trend Strength was elevated predicated a strong upwards move, which was also confirmed. Note the period where the Trend Strength never reached above 80, which indicated a ranging period (and thus unprofitable to enter or exit)).
How to Use the Indicator
The above image is a good example on how to use the indicator to determine divergences and possible pivot points (lines and circles, respectively). I recommend using both the stochastic Zone Strength and the stochastic Trend Strength at the same time, as it can give you a robust picture of where momentum is in relation to the price action and its trajectory. Every color is changeable in the settings.
Settings
The Amplitude of the indicator is essentially the high-low lookback for both components.
The Wavelength of the indicator is how stretched-out you want the indicator to be: how many amplitudes do you want the indicator to process in one given bar.
A useful analogy that I use (and that I derived the names from) is from traditional physics. In wave motion, the Amplitude is the up-down sensitivity of the wave, and the Wavelength is the side-side stretch of the wave.
The Smoothing Factor of the settings is simply how smoothed you want the stochastic to be. It's not that important in most circumstances.
Trend Anchor was covered above (see my description of Trend Strength). The "Trend Transform MA Length" is the EMA length of the Trend Strength that you use to transform it into the directional oscillator. Think of the EMA being transformed onto the 50 line and then the Trend Strength being dragged relative to that.
Trend Transform MA Length is the EMA length you want to use for transforming the nondirectional Trend Strength (anchored at 0) into the directional Trend Strength (anchored at 50). I suggest this be the same as the wavelength.
Trend Plot Type can transform the Nondirectional Trend Strength into a line plot so that it doesn't murk up the background.
Finally, the colors are changeable on the bottom.
Explanation of Zone Strength
If you're knowledgeable in Pine Script, I encourage you to look at the code to try to understand the concept, as it's a little complicated. The theory behind my Zone Strength concept is that the wicks in every bar can be used create an index of bullish and bearish resistance, as a wick signifies that the price crossed above a threshold before returning to its origin. This distance metric is unique because most indicators/formulas for calculating relative strength use a displacement metric (such as close - open) instead of measuring how far the price actually moved (up and down) within a candlestick. This is what the Zone Strength concept represents - the hesitation within the bar that is not typically represented in typical momentum indicators.
In the script's code I have step by step explanations of how the formula is calculated and why it is calculated as such. I encourage you to play around with the amplitude and wavelength inputs as they can make the zone strength look very different and perform differently depending on your interests.
Enjoy!
Walker
Z-Score Heikin-Ashi TransformedThe Z-Score Heikin-Ashi Transformed (𝘡 𝘏-𝘈) indicator is a powerful technical tool that combines the principles of Z-Score and Heikin Ashi to provide traders with a smoothed representation of price movements and a standardized measure of market volatility.
The 𝘡 𝘏-𝘈 indicator applies the Z-Score calculation to price data and then transforms the resulting Z-Scores using the Heikin Ashi technique. Understanding the individual components of Z-Score and Heikin Ashi will provide a foundation for comprehending the methodology and unique features of this indicator.
Z-Score:
Z-Score is a statistical measure that quantifies the distance between a data point and the mean, relative to the standard deviation. It provides a standardized value that allows traders to compare different data points on a common scale. In the context of the 𝘡 𝘏-𝘈 indicator, Z-Score is calculated based on price data, enabling the identification of extreme price movements and the assessment of their significance.
Heikin Ashi:
Heikin Ashi is a popular charting technique that aims to filter out market noise and provide a smoother representation of price trends. It involves calculating each candlestick based on the average of the previous candle's open, close, high, and low prices. This approach results in a chart that reduces the impact of short-term price fluctuations and reveals the underlying trend more clearly.
Methodology:
The 𝘡 𝘏-𝘈 indicator starts by calculating the Z-Score of the price data, which provides a standardized measure of how far each price point deviates from the mean. Next, the resulting Z-Scores are transformed using the Heikin Ashi technique. Each Z-Score value is modified according to the Heikin Ashi formula, which incorporates the average of the previous Heikin Ashi candle's open and close prices. This transformation smooths out the Z-Score values and reduces the impact of short-term price fluctuations, providing a clearer view of market trends.
This tool enables traders to identify significant price movements and assess their relative strength compared to historical data. Positive transformed Z-Scores indicate that prices are above the average, suggesting potential overbought conditions, while negative transformed Z-Scores indicate prices below the average, suggesting potential oversold conditions. Traders can utilize this information to identify potential reversals, confirm trend strength, and generate trading signals.
Utility:
The indicator offers valuable insights into price volatility and trend analysis. By combining the standardized measure of Z-Score with the smoothing effect of Heikin Ashi, traders can make more informed trading decisions and improve their understanding of market dynamics. 𝘡 𝘏-𝘈 can be used in various trading strategies, including identifying overbought or oversold conditions, confirming trend reversals, and establishing entry and exit points.
Note that the 𝘡 𝘏-𝘈 should be used in conjunction with other technical indicators and analysis tools to validate signals and avoid false positives. Additionally, traders are encouraged to conduct thorough backtesting and experimentation with different parameter settings to optimize the effectiveness of the indicator for their specific trading approach.
Key Features:
Optional Reversion Doritos
Adjustable Reversion Threshold
2 Adjustable EMAs
Example Charts:
See Also:
On Balance Volume Heikin-Ashi Transformed
RSI Trend Transform [wbburgin]The RSI Trend Transform indicator is a dual-concept indicator that transforms volume data and price data into two different RSI values, which can then be used together to determine trend strength and momentum. The volume RSI does not use any price data in its calculation - it is purely a transform from nondirectional volume into a directional indicator.
The RSI for all three RSI values (price, volume,combined average) can be plotted as either stochastic or normal. The RSI calculation is adapted for use on volume, which is why the normal ta.rsi() function is not used for the price RSI calculation; both use the same formula for indicator consistency.
How to Use the Indicator
In the examples below, the Price RSI is plotted in yellow and the Volume RSI is plotted in red (length = 200, which is why the indicator is large in these examples). The indicator can be used on any timeframe and any asset, provided volume data is provided by the vendor to TradingView.
Identifying Bullish Trends
A rising volume RSI with a rising price RSI signifies a bullish trend. Example 1:
Example 2:
You can use the combined RSI (the average of the volume RSI and the price RSI) to help with the identification of these trends:
Identifying Bearish Trends
A falling volume RSI with a falling price RSI signifies a bearish trend:
Example 2:
Settings
Source is the source of the price RSI, the volume RSI will by default use volume in its calculations. If you have other indicators on-chart, you could even use the ATR, a volatility indicator, or any nondirectional or directional indicator and transform it into the "price" RSI.
Length is both the length of the RSI and the stochastic.
The next three rows are for each RSI you can plot on the indicator: price RSI, volume RSI, and combined RSI (average of price and volume). The first checkbox plots/removes them from the chart, you can subsequently choose the type of RSI (regular or stochastic), the color of the plot, and the length of the EMA smoothing applied afterward to the plot.
Upper Band and Lower Band refer to the overbought and oversold lines, respectively.
A note about the combined RSI- you will be unable to spot divergences if the combined RSI is the only plot on the indicator, so I encourage you to use the combined RSI as a way to confirm the overall trend if you notice the price RSI and the volume RSI and trending similarly.
RSI + ADX + MACDINDICADOR COMBINADO DE RSI + ADX
Aprovecha las ventajas de cada indicador en uno solo.
Teniendo en un solo indicador el momentum de cada tendencia y la fuerza relativa con sus puntos de sobre compra y sobre venta.
También al poder analizar divergencias en el indicador oscilador RSI y poder crear estrategias de entrada con el ADX
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
RSI + ADX COMBINED INDICATOR
Take advantage of each indicator in one.
Having in a single indicator the momentum of each trend and the relative strength with its points of overbought and oversold.
Also by being able to analyze divergences in the RSI oscillator indicator and being able to create entry strategies with the ADX
DERECHOS DEL CREADOR PARA: Dvd_trading
Momentum Oscillator, Divergences & Signals [TrendAlpha]The "Momentum, Real Time Divergences & Signals " indicator is designed to provide traders with insights into market momentum, identify potential divergences, and generate buy and sell signals. It offers a comprehensive set of features to assist traders in making informed trading decisions.
The indicator starts by calculating the momentum oscillator based on user-defined parameters.
- Traders can adjust the "Length" parameter to customize the sensitivity of the oscillator. The default value is set to 7, but it can be modified according to individual preferences.
- The "Source" parameter allows traders to select the input source for the oscillator calculation, with the default being the closing price of the asset.
- Traders have the option to display divergence lines by switching on the "Show Lines" parameter. This feature helps identify potential divergences between the oscillator and the price.
The oscillator is calculated using a two-step process. First, a smoothing function is applied to the source data using the "sma" (simple moving average) function. Then, the rate of change is computed over the specified length using the "mom" (momentum) function. Positive oscillator values indicate upward momentum, while negative values indicate downward momentum.
The indicator also generates buy and sell signals by identifying bullish and bearish divergences. A bullish divergence occurs when the oscillator is negative and crosses above zero, while a bearish divergence occurs when the oscillator is positive and crosses below zero. The indicator checks for specific conditions to confirm the divergences, such as comparing the current oscillator value with the previous value and validating the corresponding price action.
When a bullish or bearish divergence is detected, the indicator plots circles to highlight these signals on the chart. A green circle indicates a bullish signal, suggesting a potential buying opportunity, while a red circle indicates a bearish signal, suggesting a potential selling opportunity. In addition to circles, the indicator also displays labels to provide further clarity on the signals. A "Buy" label is shown for bullish signals, and a "Sell" label is shown for bearish signals.
To visually represent the divergences, the indicator plots lines connecting the corresponding points on the oscillator. A green line is drawn for bullish divergences, while a red line is drawn for bearish divergences. Traders can easily observe the divergence patterns and their relationships with the price action, aiding them in making trading decisions.
- The indicator also includes alert conditions for both bullish and bearish divergences. Traders can set up alerts to receive notifications when potential divergences occur, allowing them to take timely action.
Rough AverageThe Rough Average indicator is a unique technical tool that calculates a modified average to provide insights into market conditions. It incorporates a combination of mathematical operations and existing indicators to offer traders a different perspective on price movements.
The Rough Average indicator aims to capture market dynamics through a specific calculation method. It utilizes two main components: a check for the approximate scale of the price and a profile calculation based on the Relative Strength Index (RSI) of the closing price.
Methodology:
Approximate Scale: The indicator determines the approximate scale of the price by analyzing the magnitude of the closing price. This step involves a mathematical process that identifies the power of 10 that best represents the scale. This function reduces overall lag and gives a better smoothing to the output of the calculation
Profile Calculation: The indicator calculates a profile value by summing the absolute values of the RSI of the closing price over a specified period. The RSI provides insights into the strength or weakness of price movements. The profile calculation considers a range of prices based on the determined scale.
Indicator Calculation:
The Rough Average is derived by applying the Exponential Moving Average (EMA) to the calculated profile. The EMA is a smoothing technique that emphasizes recent price data. The resulting value represents the modified average of the indicator.
Utility:
The Rough Average indicator offers traders an alternative perspective on market conditions. By utilizing a modified average calculation, it can reveal potential trends, reversals, or periods of market strength or weakness. Traders can use the Rough Average to complement their analysis and identify possible trading opportunities.
It is important to note that the effectiveness of the Rough Average indicator may vary depending on the specific market and trading strategy. It is recommended to combine its analysis with other technical indicators and conduct thorough testing before making trading decisions.
Key Features:
Customizable OB\OS Levels
Bar coloring methods: Trend, Reversions, Extremities
Example Charts:
Banana RSIBanana RSI is not just ap-PEAL-ing to the eyes!
This simple little indicator provides a New Approach to determining Overbought and Oversold levels, as well as taking advantage of a non-typical smoothing method for this type of indicator.
Banana RSI uses a Cumulative High and Low Average to draw the upper, lower, and midline.
The High and Low Averages use the data only from above or below the Cumulative Average to calculate their respective line.
In simpler terms:
The High average is an average of every value ABOVE the full average.
The Low average is an average of every value BELOW the full average.
This creates an automated method to determine overbought and oversold territory based on the charts historical movement.
Since every chart can be different, these levels change with the chart.
Banana RSI also uses a linear regression smoothing method , by taking advantage of the built-in Least Squares Moving Average, we are able to view a better reacting/less-lagging moving average.
Included are 2 Length-Adjustable LSMA lines to use however needed.
Using the Regression Lines along with the High & Low Averages provides a new view on the classic RSI indicator.
Enjoy!
Divergence Screener [Mr_Zed]Divergence Screener
This script allows you to scan multiple assets and timeframes for bullish and bearish divergences based on the RSI (Relative Strength Index) indicator.
Features
Supports up to 40 different assets and timeframes for simultaneous scanning.
Customizable settings for RSI period and source.
Adjustable lookback periods for identifying pivot highs and pivot lows.
Flexible range limits for filtering divergences based on the number of bars since the last pivot point.
Alerts for bullish and bearish divergences on confirmed bars.
Ta StrategyHello guys
This script follows traditional technical indicators
MACD, ADX, RSI and pivot points
If the price is above the resistance and the MACD has crossover ,and the RSI 14 is above 50
ADX is higher than 20, and DI+ is higher than DI-. This is a buy signal and vice versa for a sell signal
The script moves the stop loss to the entry price after the first target is reached
You can specify the quantity you want to sell when the price reaches the first target
There are also options like if you want the script to entry long or short, or both
you can reverse the strategy if it does not work well
If you want to inquire about any details, please let me know in the comments
RSI Dot Party - All Lengths From 1 To 120The RSI Dot Party indicator displays all RSI lengths from 1 to 120 as different colored dots on the chart.
🔶 Purpose
Show the reversal point of price action to time entries and exits.
🔶 USAGE
When a dot displays it is a indication of the reversal of the price/trend. The larger the dot the more likely it is to reverse.
The Default settings generates dots for extreme cases where the RSI is over = 90 or under = 10 for every RSI length in the range of 1-120.
Example if the RSI of length 1 or 2 or 3 or 4 or ... or 15 or 16 or 17 or ... or 80 or 81 or 82 or ... if any of does RSI crosses a boundary a dot is shown.
A boundary is the over/under the RSI oscillates in.
Customize the settings until the dots match up with the high and lows of past price action.
🔶 SETTINGS
🔹 Source
Source 1: Is the First Source RSI is calculated from
Source 2: Is the Second Source RSI is calculated from
🔹 Meta Settings
Hours back to draw: To speed up the script calculate it only draws a set number of hours back, default is 300 hours back in time to draw then it cuts off.
Show Dots: Show or disable dots
Show Bar Color: Color the bars for each RSI incident
Filter Cross: Filters and only shows dots when the RSI crosses above or bellow a boundary. If not all candles above or bellow the boundaries will display a dot.
Dots Location Absolute: Instead of showing the dots above or bellow the candle, the dots will show up on the top and bottom of the window.
🔹 7 RSI Groups
There are a total of 7 RSI colors.
Range Very Tiny: Default Color Green
Range Tiny: Default Color Purple
Range Small: Default Color Yellow
Range Normal: Default Color Red
Range Large: Default Color Blue
Range Huge: Default Color Dark Purple
Range Very Huge: Default Color White
🔹 RSI Group Settings
Hi/Low Color: Change the Color of that group.
Start/End: The Start and End range of this RSI color. Example if start = 5 and end = 10 the RSI of 5,6,7,8,9,10 will be displayed on the chart for that color, if any of does RSI goes above or bellow the boundary a dot is displayed on that candle.
Delay: The RSI needs to be above or bellow a boundary for x number of candles before displaying a dot. For example if delay = 2 and the RSI is over = 70 for 2 candles then it will display a dot.
Under/Over: Boundaries that indicate when to draw a dot, if over = 70 and RSI crosses above 70 a dot is displayed.
🔹 Show
Section that allows you to disable RSI grounds you dont want to see, this also removes them from the alert signal generated.
Show Low: Show or disable Low RSI dots
Show High: Show or disable High RSI dots
🔶 ALERTS
Alert for all New RSIs Dots Created in real time
The alert generated depends on what groups are showing or not, if the green group is disabled for example the alert will not be generated.
🔶 Warning
When a dot shows up it can continue moving. For example if a purple dot shows itself above a 15 minute candle, if that candle/price continue to extend up the dot will move up with it.
Dots can also disappear occasionally if the RSI moves in and out of a boundary within that candles life span.
🔶 Community
I hope you guys find this useful, if you have any questions or feature requests leave me a comment! Take care :D
Open interest flow / quantifytools- Overview
Open interest flow detects inflows (positions opening) and outflows (positions closing) using open interest and estimates delta (net buyers/sellers) for the flows. Users are able to choose any open interest source available on Tradingview, by default set to BTCUSDT OI fetched from Binance. Using historical open interest flows, bands depicting typical magnitude of flows are formed for benchmarking intensity of flows. On the inflow side, +1 represents average inflows while +2 represents 2x above average inflows, a level considered an extreme. In a vice versa manner, -1 represents average outflows while -2 represents 2x above average outflows. Extreme inflows indicate aggressive position opening, in other words exuberance. Extreme outflows on the other hand indicate forced exiting of positions, in other words liquidations.
- Concept
Open interest flow is calculated using position of OI source relative to its moving average (by default set to SMA 10), referred to as relative open interest from hereon. When relative OI is positive (open interest is above its moving average), new positions are considered to enter the market. When relative OI is negative (open interest is below its moving average), existing positions are considered to exit the market. Open interest delta (side opening/closing positions, either net buyers/sellers) is calculated using relative price in a similar fashion to relative OI, but using close of viewed symbol as source. Price is considered to be up when relative price is positive, down when relative price is negative. Using relative OI and relative price in tandem, the following assumptions are applied:
Price up, open interest up = longs entering market
Price down, open interest up = shorts entering market
Price down, open interest down = longs exiting market
Price up, open interest down = shorts exiting market
Bands depicting magnitude of open interest flows are calculated using average turning points in relative OI. +1 and -1 represent levels where flows on average turn towards mean rather than continue to increase/decrease. These levels are then multiplied up to +2 and -2, representing two times larger deviations from the normal. When inflows are above 1, positions opening have reached a point where flows historically turn down. Therefore, anything above 1 would be abnormal amount of open interest entering, an extreme stretch being at 2 or above. Same logic applies to outflows, but in a vice versa manner (below -1 abnormal, extreme at -2)
Flow bursts further refine indications of aggressive inflows/outflows by taking into account change in open interest flows. Burst indications are activated when open interest is above its average turning point, coupled with a sufficient increase/decrease in flows simultaneously. Bursts are essentially a filtered version of abnormal flows and therefore a more reliable indication of exuberance/liquidations. Burst sensitivity can be adjusted via input menu, available in 5 settings. 1 sets OI burst requirements to loosest (more signals, more noise) while 5 sets OI burst requirements to strictest (less signals, less noise). Exact criteria applied to bursts can be viewed via input menu tooltip.
- Features
Users can opt for OI source auto-select for CRYPTO/USDT pairs. When auto-select is enabled and another chart is opened, corresponding open interest source is automatically selected as long as requirements mentioned above are met.
Open interest flows can be visualized as chart color, available separately for flow states and flow bursts.
Relative price line and flow guidelines (reminders for flow interpretation) can be enabled via input menu. All colors are customizable.
- Alerts
Available alerts are the following:
- Abnormal long inflows/outflows
- Abnormal short inflows/outflows
- Abnormal inflows/outflows from either side
- Aggressive longs/shorts (flow burst up)
- Liquidated longs/shorts (flow burst down)
- Aggressive or liquidated longs/shorts
- Practical guide
Open interest as a standalone data point does not reveal which side is likely opening/exiting positions and how extreme the participant behavior is. Using the additional data provided by open interest flows, moments of greed and fear can be detected. Smart money does not short into dips and buy into rips. When buyers or sellers have participated in a large move and continue to show interest even when efforts are not rewarded at an already overextended price, participants are asking for trouble.
Similar events can be observed when extreme outflows take place, indicating forced exits such as stop-losses triggering. When enough participants are forced out, price is likely to take the path of least resistance which is to the opposite direction.
Autocorrelation OscillatorReleasing the autocorrelation oscillator.
NOTE! Please be sure to read the description. This is a theoretical indicator and its important to understand the theory behind its use.
About the indicator:
Before getting into the indicator and its functionality, its important to discuss the theoretical underpinnings of the indicator.
The autocorrelation oscillator operates on two theories of market behaviour that go hand in hand. Those theories are the market efficiency theory and the random walk theory (or hypothesis ).
Market efficiency theory: The market efficiency theory or "Efficient Market Hypothesis (EMH)" postulates that all available information is reflected in a ticker's price almost instantaneously and thus it is impossible for an investor or trader to get ahead of the market because we cannot respond to the speed that the market responds. Of course, there are many holes in this theory, the most notable being that the market is a function of humans. Absent humans and their technological integrations into the market, the market would cease to react at all. But that's besides the point. This is a widely accepted theory and one in which I can mathematically observe through statistical tests. The truth behind this theory is the market is efficient for responding to evolving economic and financial information, likely owning to huge amounts of computer and algorithmic integration into trading, and thus the market is more efficient than the average person is capable (absent computerized algorithms and integration) of ascertaining nuanced financial and economic circumstances. By the time we the people can appraise information, the market has already acted on it. And that is the main premise of the EMH.
The next theory is the Random Walk Theory or Hypothesis (RWH). This builds on the EMH and essentially postulates that the market reacts so quickly to price in current circumstances that it is too random for people to truly exploit and benefit from.
The result of these two theories is two-fold and can be summarized as such:
a) The market behaves in a chaotic fashion that is seemingly random and is incapable of being predicted effectively; and
b) The market is more efficient than a person in incorporating key fundamental information, contributing to the high degree of seemingly random behaviour.
So, how does this help us?
It is said, because of the EMH and the RWH, the only way to truly exploit the market for profit is by:
a) Buying and holding and investing under the bias that stocks will eventually rise in value; or
b) For short term trading, exploiting the pricing anomalies within the data.
So how do we exploit pricing anomalies within the data?
Well, in my own research on market efficiency and behaviour, I have identified many ways of figuring out some anomalies. One of the most effective ways is by looking at simple correlation of lagged values, or autocorrelation for short.
What is autocorrelation and how to use it in relation to EMH and RWH?
Autocorrelation refers to the correlative relationship among the values in a series. Put simply, its the relationship of the same variable over time. For example, if we wanted to look at the auto-correlation of a ticker's high price, we would take, say, 5 to 7 previous high prices and correlate them with the current high price in a series dataset. If the EMH and RWH are true, the correlation among all the variables should have an average less than 0.5 or greater than -0.5. This would indicate true randomness in the dataset and thus an efficient market.
However, if the average of all of the sum's of these correlations are greater than or equal to 0.5 or less than or equal to -0.5, that indicates there is a high degree of autocorrelation and thus the EMH ad RWH is being invalidated as the market is not operating efficiently. This is an anomaly and this anomaly can be exploited.
So how do we exploit it?
Well, when the EMH and RWH hypothesis is being invalidated, we can expect what I coin as a "Regression to Chaos" i.e. the market will revert back to an efficient equilibrium state. So if we have a high correlation of the lagged variables and a strong uptrend or downtrend correlation, we can expect an inefficient market to correct back to an efficient market (i.e. have a reversal from the current trend).
So how does the indicator work?
The indicator measures the lagged correlation of the previous 5 highs and lows of a ticker. A high correlation among all of the highs and lows that exceeds 0.8 would be an invalidation of the EMH and RWH and thus signal a correction to come (i.e. a Regression to Chaos).
The indicator will display this by changing colour. Red for a bearish reversal and green for a bullish. Let's take a look below using the ticker MSFT:
Above we can see the indicator identifying observed inefficiencies within the MSFT ticker on the 1 minute timeframe. The green vertical lines correspond to potential bullish reversals as a result of bearish inefficiencies, the red correspond to bearish reversals as a result of bullish inefficiencies.
You can see these lead to reversals within the ticker.
Components of the indicator:
In the chart above we see the following that are being indicated by arrows:
Red Arrows: Show the identified inefficiencies. Red for bullish inefficiencies (i.e. bearish reversal), green for bearish inefficiencies (i.e. bullish reversal)
Yellow Arrow: The lagged variable chart. This will display the current correlation among all the lagged variables the indicator is assessing.
Teal arrow: Displays the current strength of the trend by correlating the trend to time. A strong negative value (i.e. a value less than or equal to -0.5) indicates a strong downtrend, a strong positive value indicates the inverse.
You can unselect the data-tables in the settings menu if you just want to view the correlation line itself. This part of the indicator is customizable. You can also define the lookback period; however, it is strongly recommended to leave it at 14 as this maintains the use of this indicator as an oscillator.
And that is the indicator! Let me know your comments, questions and feedback below.
Safe trades everyone!
