Autonomous 5-Minute RobotKey Components of the Strategy:
Trend Detection:
A 50-period simple moving average (SMA) is used to define the market trend. If the current close is above the SMA, the market is considered to be in an uptrend (bullish), and if it's below, it's considered a downtrend (bearish).
The strategy also looks at the trend over the last 30 minutes (6 candles in a 5-minute chart). The strategy compares the previous close with the current close to detect an uptrend or downtrend.
Volume Analysis:
The strategy calculates buyVolume and sellVolume based on price movement within each candle.
The condition for entering a long position is when the market is in an uptrend, and the buy volume is greater than the sell volume.
The condition for entering a short position is when the market is in a downtrend, and the sell volume is greater than the buy volume.
Trade Execution:
The strategy enters a long position when the trend is up and the buy volume is higher than the sell volume.
The strategy enters a short position when the trend is down and the sell volume is higher than the buy volume.
Positions are closed based on stop-loss and take-profit conditions.
Stop-loss is set at 3% below the entry price.
Take-profit is set at 29% above the entry price.
Exit Conditions:
Long trades will be closed if the price falls 3% below the entry price or rises 29% above the entry price.
Short trades will be closed if the price rises 3% above the entry price or falls 29% below the entry price.
Visuals:
The SMA (50-period) is plotted on the chart to show the trend.
Buy and sell signals are marked with labels on the chart for easy identification.
With this being said this algo is still being worked on to be autonomous
Analyze the Market Direction: Determine whether the market is in an uptrend or downtrend over the past 30 minutes (using the last 6 candles in a 5-minute chart).
Use Trend Indicators and Volume: Implement trend-following indicators like moving averages or the SMA/EMA crossover and consider volume to decide when to enter or exit a trade.
Enter and Exit Trades: The robot will enter long positions when the trend is up and short positions when the trend is down. Additionally, it will close positions based on volume signals and price action (e.g., volume spikes, price reversals).
Indicators and strategies
Volume Delta Filtered Overlay v1.1 by RamtraderbookVolume Delta Filtered Overlay v1.1 by Ramtraderbook
This indicator visually displays the volume delta directly on the price chart using colored circles. Its main goal is to highlight significant changes in the volume delta, categorizing them by direction and magnitude.
How It Works
1. Volume Delta Calculation
- Measures the difference between buying and selling volume on a lower time frame.
2. Threshold Filter
- Only displays data if the delta exceeds a minimum threshold set by the user.
3. Colors by Direction
- Bullish color: If the delta is positive (more buying).
- Bearish color: If the delta is negative (more selling).
4. Circle Placement
- Circles are placed above the candle for a positive delta and below the candle for a negative delta.
Customizable Inputs
- Delta Threshold: Defines the minimum delta value that will be plotted.
- Customizable Colors: Allows you to set different colors for positive and negative delta circles.
- **Lower Time Frame**: Scans data on a lower time frame for greater accuracy.
Important Note on Data
TradingView does not handle market depth data such as order book information. The volume delta calculation is an approximation based on the asset’s volume and price behavior. This means it does not precisely reflect the actual flow of buy or sell orders in the market, but rather an estimate derived from available data.
Conclusion
The **Volume Delta Filtered Overlay v1.1 by Ramtraderbook** is a visual tool that helps quickly identify significant buy or sell volume movements, making it ideal for strategies that rely on order flow analysis. However, it is recommended to combine it with other tools for a more comprehensive analysis.
Volume Delta Filtered v1.1 by RamtraderbookIndicator Explanation: Volume Delta_RTB (Filtered)
General Description
The Volume Delta_RTB (Filtered) indicator is designed to analyze the volume delta of a financial asset and highlight only significant changes based on a configured threshold. This indicator is useful for detecting moments when buying volume exceeds selling volume (or vice versa), providing a clear view of market pressure.
What is Volume Delta?
Volume delta measures the difference between buying and selling volume over a given time period. A positive delta indicates that buying prevails over selling, while a negative delta indicates the opposite.
Indicator Inputs
The indicator has several customizable parameters to suit the user’s needs:
1. Volume Delta Threshold
- Allows you to set a minimum volume delta value.
- Only indicator values that exceed this absolute delta threshold will be displayed.
- Default value: 100,000.
2. Use of a Lower Time Frame
- Option to analyze data from a lower time frame than the main chart.
Operating Logic
1. Selection of the Lower Time Frame
- The indicator scans data from a lower time frame to accurately calculate the volume delta.
- By default, it automatically selects an appropriate lower time frame, though it can be set manually.
2. Calculation of Volume Delta
- Using the `ta.requestVolumeDelta` function, the indicator calculates:
- Volume delta at the start of the period (`openVolume`).
- Maximum delta (`maxVolume`).
- Minimum delta (`minVolume`).
- Last recorded delta (`lastVolume`).
3. Filtering Values
- If the absolute value of `lastVolume` (the last volume delta) is below the configured threshold (`deltaThreshold`), the data will not be displayed on the chart.
- This allows the indicator to highlight only significant movements, avoiding unnecessary noise.
4. Visualization
- Volume delta is represented by candles to facilitate interpretation:
- Yellow candles for positive delta (buying prevails).
- Pink candles for negative delta (selling prevails).
- A horizontal line at `0` serves as a reference.
- Colors can be configured as needed.
5. Data Validation
- If the data provider does not provide volume information for the asset, the indicator will display an error message.
Indicator Advantages
- Efficient Filtering: Focus on the most relevant movements in terms of volume, ignoring small or insignificant values.
- Adaptable: Offers customization options for both the delta threshold and the time frame.
- Clear Visualization: Colored candles make it easier to spot dominant buying or selling trends.
NOTE:
- Estimated Delta Data: Since TradingView does not have access to market depth data or an exact breakdown of buying and selling volume, the delta calculations are approximations based on price and volume behavior.
- Data Provider Dependency: Some assets or instruments may not have volume information available, limiting the indicator’s use.
Forex Hammer and Hanging Man StrategyThe strategy is based on two key candlestick chart patterns: Hammer and Hanging Man. These chart patterns are widely used in technical analysis to identify potential reversal points in the market. Their relevance in the Forex market, known for its high liquidity and volatile price movements, is particularly pronounced. Both patterns provide insights into market sentiment and trader psychology, which are critical in currency trading, where short-term volatility plays a significant role.
1. Hammer:
• Typically occurs after a downtrend.
• Signals a potential trend reversal to the upside.
• A Hammer has:
• A small body (close and open are close to each other).
• A long lower shadow, at least twice as long as the body.
• No or a very short upper shadow.
2. Hanging Man:
• Typically occurs after an uptrend.
• Signals a potential reversal to the downside.
• A Hanging Man has:
• A small body, similar to the Hammer.
• A long lower shadow, at least twice as long as the body.
• A small or no upper shadow.
These patterns are a manifestation of market psychology, specifically the tug-of-war between buyers and sellers. The Hammer reflects a situation where sellers tried to push the price down but were overpowered by buyers, while the Hanging Man shows that buyers failed to maintain the upward movement, and sellers could take control.
Relevance of Chart Patterns in Forex
In the Forex market, chart patterns are vital tools because they offer insights into price action and market sentiment. Since Forex trading often involves large volumes of trades, chart patterns like the Hammer and Hanging Man are important for recognizing potential shifts in market momentum. These patterns are a part of technical analysis, which aims to forecast future price movements based on historical data, relying on the psychology of market participants.
Scientific Literature on the Relevance of Candlestick Patterns
1. Behavioral Finance and Candlestick Patterns:
Research on behavioral finance supports the idea that candlestick patterns, such as the Hammer and Hanging Man, are relevant because they reflect shifts in trader psychology and sentiment. According to Lo, Mamaysky, and Wang (2000), patterns like these could be seen as representations of collective investor behavior, influenced by overreaction, optimism, or pessimism, and can often signal reversals in market trends.
2. Statistical Validation of Chart Patterns:
Studies by Brock, Lakonishok, and LeBaron (1992) explored the profitability of technical analysis strategies, including candlestick patterns, and found evidence that certain patterns, such as the Hammer, can have predictive value in financial markets. While their study primarily focused on stock markets, their findings are generally applicable to the Forex market as well.
3. Market Efficiency and Candlestick Patterns:
The efficient market hypothesis (EMH) posits that all available information is reflected in asset prices, but some studies suggest that markets may not always be perfectly efficient, allowing for profitable exploitation of certain chart patterns. For instance, Jegadeesh and Titman (1993) found that momentum strategies, which often rely on price patterns and trends, could generate significant returns, suggesting that patterns like the Hammer or Hanging Man may provide a slight edge, particularly in short-term Forex trading.
Testing the Strategy in Forex Using the Provided Script
The provided script allows traders to test and evaluate the Hammer and Hanging Man patterns in Forex trading by entering positions when these patterns appear and holding the position for a specified number of periods. This strategy can be tested to assess its performance across different currency pairs and timeframes.
1. Testing on Different Timeframes:
• The effectiveness of candlestick patterns can vary across different timeframes, as market dynamics change with the level of detail in each timeframe. Shorter timeframes may provide more frequent signals, but with higher noise, while longer timeframes may produce more reliable signals, but with fewer opportunities. This multi-timeframe analysis could be an area to explore to enhance the strategy’s robustness.
2. Exit Strategies:
• The script incorporates an exit strategy where positions are closed after holding them for a specified number of periods. This is useful for testing how long the reversal patterns typically take to play out and when the optimal exit occurs for maximum profitability. It can also help to adjust the exit logic based on real-time market behavior.
Conclusion
The Hammer and Hanging Man patterns are widely recognized in technical analysis as potential reversal signals, and their application in Forex trading is valuable due to the market’s high volatility and liquidity. This strategy leverages these candlestick patterns to enter and exit trades based on shifts in market sentiment and psychology. Testing and optimization, as offered by the script, can help refine the strategy and improve its effectiveness.
For further refinement, it could be valuable to consider combining candlestick patterns with other technical indicators or using multi-timeframe analysis to confirm patterns and increase the probability of successful trades.
References:
• Lo, A. W., Mamaysky, H., & Wang, J. (2000). Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation. The Journal of Finance, 55(4), 1705-1770.
• Brock, W., Lakonishok, J., & LeBaron, B. (1992). Simple Technical Trading Rules and the Stochastic Properties of Stock Returns. The Journal of Finance, 47(5), 1731-1764.
• Jegadeesh, N., & Titman, S. (1993). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency. The Journal of Finance, 48(1), 65-91.
This provides a theoretical basis for the use of candlestick patterns in trading, supported by academic literature and research on market psychology and efficiency.
KillzoneLibraryLibrary "KillzoneLibrary"
isKillzone(currentTime, tz)
Vérifie si l'heure actuelle est dans une Killzone
Parameters:
currentTime (int) : L'heure actuelle (entier représentant le timestamp)
tz (string) : Le fuseau horaire (par défaut : "GMT+1")
Returns: true si dans une Killzone, sinon false
4H CRT (1AM and 5AM)This TradingView script is designed to assist traders in implementing the "4-Hour Candle Ranges Theory Strategy (CRT)" by identifying key levels and setups based on the 1am and 4am (5am) 4-hour candles. This strategy is particularly effective for trading high-volatility assets such as Gold, EUR/USD, NAS100, US30, and S&P500, with US30 showing a notably high win rate. Here's how the strategy works:
Key Features:
1. Marking 1am and 4am 4-Hour Candle Ranges
- The script highlights the high and low of the 1am 4-hour candle.
- It visually tracks whether the high or low of the 1am candle is taken out by the subsequent 4-hour candle (5am).
2. Entry Setup Rules
- Primary Setup: Wait for the high or low of the 1am candle to be taken out by the 5am candle. Once this sweep occurs, wait for a Market Structure Shift (MSS) on the lower time frame (15min) to confirm your entry.
- Secondary Setup: If the 5am candle fails to take out the high or low of the 1am candle, the setup focuses on the levels formed by the 5am candle.
3. Trade Execution on 15-Minute Timeframe
- The script supports a lower time frame (15min) view to identify MSS and fine-tune entries.
4. Rinse and Repeat
- This process can be applied daily for consistent opportunities across the specified assets.
Advantages:
- Provides clear visual markers for key levels based on the 4-hour candles.
- Automates level plotting, saving traders time and reducing manual errors.
- Integrates well with the 15-minute timeframe for precise entry triggers.
- Optimized for popular trading instruments, especially US30 for a higher probability of success.
This script simplifies the application of CRT by automating the process of identifying and marking critical levels, enabling traders to focus on executing high-probability setups effectively.
Created by Hamid (poraymanfx)
Center of Candle Trendline### **Center of Candle Trendline**
This script dynamically plots a trendline through the center of each candlestick's body. The "center" is calculated as the average of the open and close prices for each candle. The trendline updates in real-time as new candles form, providing a clean and straightforward way to track the market's midline movement.
#### **Features:**
1. **Dynamic Trendline:** The trendline connects the center points of consecutive candlestick bodies, giving a clear visual representation of price movements.
2. **Accurate Center Calculation:** The center is determined as `(open + close) / 2`, ensuring the trendline reflects the true midpoint of each candlestick body.
3. **Real-Time Updates:** The trendline updates automatically as new bars form, keeping your chart up to date with the latest price action.
4. **Customization-Ready:** Adjust the line’s color, width, or style easily to fit your chart preferences.
#### **How to Use:**
- Add this script to your chart to monitor the price movement relative to the center of candlestick bodies.
- Use the trendline to identify trends, reversals, or price consolidation zones.
#### **Applications:**
- **Trend Analysis:** Visualize how the market trends around the center of candlesticks.
- **Reversal Identification:** Detect potential reversal zones when the price deviates significantly from the trendline.
- **Support and Resistance Zones:** Use the trendline as a dynamic support or resistance reference.
This tool is perfect for traders who want a clean and minimalistic approach to tracking price action. Whether you're a beginner or an experienced trader, this script provides valuable insights without overwhelming your chart.
#### **Note:**
This is not a standalone trading strategy but a visual aid to complement your analysis. Always combine it with other tools and techniques for better trading decisions.
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Feel free to tweak this description based on your preferences or style!
On-Chain Analysis [LuxAlgo]The On-Chain Analysis tool offers a comprehensive overview of essential on-chain metrics, enabling traders and investors to grasp the underlying activity and sentiment within the cryptocurrency market. By integrating metrics like wallet profitability, exchange flows, on-chain volume, social sentiment, and more into your charts, users can gain valuable insights into cryptocurrency network behavior, spot emerging trends, and better manage risk in the cryptocurrency market.
🔶 USAGE
🔹 On-Chain Analysis
When analyzing cryptocurrencies, several fundamental metrics are crucial for assessing the value and potential of a digital asset. This indicator is designed to help traders and analysts evaluate the markets by utilizing various data gathered directly from the blockchain. The gathered on-chain data includes wallet profitability, exchange flows, miner flows, on-chain volume, large buyers/sellers, market capitalization, market dominance, active addresses, total value locked (TVL), market value to realized value (MVRV), developer activity, social sentiment, holder behavior, and balance types.
Use wallet profitability and social sentiment metrics to gauge the overall mood of the market, helping to anticipate potential buying or selling pressure.
On-chain volume and active addresses provide insights into how actively a cryptocurrency is being used, indicating network health and adoption levels.
By tracking exchange flows and holder balance types, you can identify significant moves by whales or institutions, which may signal upcoming price shifts.
Market capitalization and miner flows give you an understanding of the supply side of the market, aiding in evaluating whether an asset is overvalued or undervalued.
The distribution of holdings among retail investors, whales, and institutional groups can greatly influence market dynamics. A large concentration of holdings by whales may indicate the potential for significant price swings, given their capacity to execute substantial trades. A higher proportion of institutional investors often suggests confidence in the asset's long-term potential, as these entities typically conduct thorough research before investing. While retail participation indicates broader adoption, it also introduces higher volatility, as these investors tend to be more reactive to market fluctuations.
Understanding the balance and behavior of short-term traders, mid-term cruisers, and long-term hodlers helps traders and analysts predict market trends and assess the underlying confidence in a particular cryptocurrency.
🔶 DETAILS
This script includes some of the most significant and insightful metrics in the crypto space, designed to evaluate and enhance trading decisions by assessing the value and growth potential of cryptocurrencies. The introduced metrics are:
🔹 Wallet Profitability
Definition: Represents the percentage distribution of addresses by profitability at the current price.
Importance: Indicates potential selling pressure or reduced selling pressure based on whether addresses are in profit or loss.
🔹 Exchange Flow
Definition: The total amount of a cryptocurrency moving in and out of exchanges.
Importance: Large inflows to exchanges can indicate potential selling pressure, while large outflows might suggest accumulation or long-term holding.
🔹 Miner Flow
Definition: Tracks the inflow and outflow of funds by miners.
Importance: High inflows could indicate selling pressure, whereas low inflows or outflows might reflect miner confidence.
🔹 On-Chain Volume
Definition: The total value of transactions conducted on a blockchain within a specific period.
Importance: On-chain volume reflects actual usage of the network, indicating how actively a cryptocurrency is being utilized for transactions.
🔹 Large Buyers/Sellers
Definition: Tracks the number of large buyers (bulls) and sellers (bears) based on transaction volume.
Importance: Comparing the number of large buyers (bulls) to large sellers (bears) helps gauge market trends and sentiment.
🔹 Market Capitalization
Definition: The total value of a cryptocurrency's circulating supply, calculated by multiplying the current price by the total supply.
Importance: Market cap is a key indicator of a cryptocurrency’s size and market dominance. It helps compare the relative size of different cryptocurrencies.
🔹 Market Dominance
Definition: Market dominance represents a cryptocurrency’s share of the total market capitalization of all cryptocurrencies. It is calculated by dividing the market cap of the cryptocurrency by the total market cap of the cryptocurrency market.
Importance: Market dominance is a crucial indicator of a cryptocurrency's influence and relative position in the market. It helps assess the strength of a cryptocurrency compared to others and provides insights into its market presence and potential influence.
Special Consideration: Since BTC and ETH dominance is relatively high compared to other cryptocurrencies, specific adjustments are made during the presentation of values and charts. When analyzing BTC, the total market capitalization is used. For ETH analysis, BTC is excluded from the total market cap. For any other cryptocurrency besides BTC and ETH, both BTC and ETH are excluded from the total market cap to provide a more accurate view.
🔹 Active Addresses
Definition: The number of unique addresses involved in transactions within a specific period.
Importance: A higher number of active addresses suggests greater network activity and user adoption, which can be a sign of a healthy ecosystem.
🔹 Total Value Locked (TVL)
Definition: The total value of assets locked in a decentralized finance (DeFi) protocol.
Importance: TVL is a key metric for DeFi platforms, indicating the level of trust and the amount of liquidity in a protocol.
🔹 Market Value to Realized Value (MVRV)
Definition: A ratio comparing the market cap to realized cap.
Importance: A high ratio may indicate overvaluation (potential selling), while a low ratio could signal undervaluation (potential buying).
🔹 Developer Activity
Definition: The level of activity on a cryptocurrency’s public repositories (e.g., GitHub).
Importance: Strong developer activity is a sign of ongoing innovation, updates, and a healthy project.
🔹 Social Sentiment
Definition: The general sentiment or mood of the community and investors as expressed on social media and forums.
Importance: Positive sentiment often correlates with price increases, while negative sentiment can signal potential downtrends.
🔹 Holder Balance (Behavior)
Definition: Distribution of addresses by holding behavior: Traders (short-term), Cruisers (mid-term), and Hodlers (long-term).
Importance: Helps predict market behavior based on different holder types.
🔹 Holder Balance (Type)
Definition: Distribution of cryptocurrency holdings among Retail (small holders), Whales (large holders), and Investors (institutional players).
Importance: Assesses the potential impact of different user groups on the market. A more decentralized distribution is generally viewed as positive, reducing the risk of price manipulation by large holders.
These metrics provide a comprehensive view of a cryptocurrency’s health, adoption, and potential for growth, making them essential for fundamental analysis in the crypto space.
🔶 SETTINGS
The script offers a range of customizable settings to tailor the analysis to your trading needs.
🔹 On-Chain Analysis
On-Chain Data: Choose the specific on-chain metric from the drop-down menu. Options include Wallet Profitability, Exchange Flow, Miner Flow, On-Chain Volume, Large Buyers/Sellers (Volume), Market Capitalization, Market Dominance, Active Addresses, Total Value Locked, Market Value to Realized Value, Developer Activity, Social Sentiment, Holder Balance (Behavior), and Holder Balance (Type).
Smoothing: Set the smoothing level to refine the displayed data. This can help in filtering out noise and getting a clearer view of trends.
Signal Line: Choose a signal line type (SMA, EMA, RMA, or None) and the length of the moving average for signal line calculation.
🔹 On-Chain Dashboard
On-Chain Stats: Toggle the display of the on-chain statistics.
Dashboard Size, Position, and Colors: Customize the size, position, and colors of the on-chain dashboard on the chart.
🔶 LIMITATIONS
Availability of on-chain data may vary and may not be accessible for all crypto assets.
🔶 RELATED SCRIPTS
Market-Sentiment-Technicals
World Digital Clock Original code developed by br.tradingview.com
In this update I added the Frankfurt stock exchange, left the times according to Western Europe, and added another light signal to identify whether the stock exchange is open or closed.
This indicator provides a digital clock and real-time status for major financial markets, including Tokyo, London, New York, and Frankfurt. It displays whether each market is currently OPEN or CLOSED, along with the time remaining until the market opens or closes. The indicator is designed to keep traders informed about market activity at a glance.
Key Features:
Digital Clock:
Displays the current time based on a user-defined UTC offset.
Customizable text color, size, and background color.
Market Status:
Shows whether each major market is OPEN or CLOSED.
Displays a countdown timer indicating the time remaining until the market opens or closes.
Includes markets for Tokyo, London, New York, and Frankfurt.
Color Indicators:
A green dot indicates the market is open.
A red dot indicates the market is closed.
Text colors for open and closed markets can be customized.
Customizable Layout:
Choose the table position on the chart (e.g., top right, bottom left).
Adjust text sizes for both the clock and market status.
Daylight Saving Time:
Automatically adjusts market opening and closing times based on daylight saving rules (e.g., summer and winter time).
Alerts:
Optionally triggers alerts when a market opens, keeping you updated in real-time.
Use Cases:
Perfect for day traders or swing traders who need to monitor global market activity.
Useful for keeping track of trading hours and planning strategies based on market availability.
Helps avoid trading outside active market hours, reducing slippage and volatility risks.
This versatile and customizable tool ensures you're always aware of market status and time zones, enhancing your trading efficiency and decision-making.
Bullish Reversal Bar Strategy [Skyrexio]Overview
Bullish Reversal Bar Strategy leverages the combination of candlestick pattern Bullish Reversal Bar (description in Methodology and Justification of Methodology), Williams Alligator indicator and Williams Fractals to create the high probability setups. Candlestick pattern is used for the entering into trade, while the combination of Williams Alligator and Fractals is used for the trend approximation as close condition. Strategy uses only long trades.
Unique Features
No fixed stop-loss and take profit: Instead of fixed stop-loss level strategy utilizes technical condition obtained by Fractals and Alligator or the candlestick pattern invalidation to identify when current uptrend is likely to be over (more information in "Methodology" and "Justification of Methodology" paragraphs)
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Trend Trade Filter: strategy uses Alligator and Fractal combination as high probability trend filter.
Methodology
The strategy opens long trade when the following price met the conditions:
1.Current candle's high shall be below the Williams Alligator's lines (Jaw, Lips, Teeth)(all details in "Justification of Methodology" paragraph)
2.Price shall create the candlestick pattern "Bullish Reversal Bar". Optionally if MFI and AO filters are enabled current candle shall have the decreasing AO and at least one of three recent bars shall have the squat state on the MFI (all details in "Justification of Methodology" paragraph)
3.If price breaks through the high of the candle marked as the "Bullish Reversal Bar" the long trade is open at the price one tick above the candle's high
4.Initial stop loss is placed at the Bullish Reversal Bar's candle's low
5.If price hit the Bullish Reversal Bar's low before hitting the entry price potential trade is cancelled
6.If trade is active and initial stop loss has not been hit, trade is closed when the combination of Alligator and Williams Fractals shall consider current trend change from upward to downward.
Strategy settings
In the inputs window user can setup strategy setting:
Enable MFI (if true trades are filtered using Market Facilitation Index (MFI) condition all details in "Justification of Methodology" paragraph), by default = false)
Enable AO (if true trades are filtered using Awesome Oscillator (AO) condition all details in "Justification of Methodology" paragraph), by default = false)
Justification of Methodology
Let's explore the key concepts of this strategy and understand how they work together. The first and key concept is the Bullish Reversal Bar candlestick pattern. This is just the single bar pattern. The rules are simple:
Candle shall be closed in it's upper half
High of this candle shall be below all three Alligator's lines (Jaw, Lips, Teeth)
Next, let’s discuss the short-term trend filter, which combines the Williams Alligator and Williams Fractals. Williams Alligator
Developed by Bill Williams, the Alligator is a technical indicator that identifies trends and potential market reversals. It consists of three smoothed moving averages:
Jaw (Blue Line): The slowest of the three, based on a 13-period smoothed moving average shifted 8 bars ahead.
Teeth (Red Line): The medium-speed line, derived from an 8-period smoothed moving average shifted 5 bars forward.
Lips (Green Line): The fastest line, calculated using a 5-period smoothed moving average shifted 3 bars forward.
When the lines diverge and align in order, the "Alligator" is "awake," signaling a strong trend. When the lines overlap or intertwine, the "Alligator" is "asleep," indicating a range-bound or sideways market. This indicator helps traders determine when to enter or avoid trades.
Fractals, another tool by Bill Williams, help identify potential reversal points on a price chart. A fractal forms over at least five consecutive bars, with the middle bar showing either:
Up Fractal: Occurs when the middle bar has a higher high than the two preceding and two following bars, suggesting a potential downward reversal.
Down Fractal: Happens when the middle bar shows a lower low than the surrounding two bars, hinting at a possible upward reversal.
Traders often use fractals alongside other indicators to confirm trends or reversals, enhancing decision-making accuracy.
How do these tools work together in this strategy? Let’s consider an example of an uptrend.
When the price breaks above an up fractal, it signals a potential bullish trend. This occurs because the up fractal represents a shift in market behavior, where a temporary high was formed due to selling pressure. If the price revisits this level and breaks through, it suggests the market sentiment has turned bullish.
The breakout must occur above the Alligator’s teeth line to confirm the trend. A breakout below the teeth is considered invalid, and the downtrend might still persist. Conversely, in a downtrend, the same logic applies with down fractals.
How we can use all these indicators in this strategy? This strategy is a counter trend one. Candle's high shall be below all Alligator's lines. During this market stage the bullish reversal bar candlestick pattern shall be printed. This bar during the downtrend is a high probability setup for the potential reversal to the upside: bulls were able to close the price in the upper half of a candle. The breaking of its high is a high probability signal that trend change is confirmed and script opens long trade. If market continues going down and break down the bullish reversal bar's low potential trend change has been invalidated and strategy close long trade.
If market really reversed and started moving to the upside strategy waits for the trend change form the downtrend to the uptrend according to approximation of Alligator and Fractals combination. If this change happens strategy close the trade. This approach helps to stay in the long trade while the uptrend continuation is likely and close it if there is a high probability of the uptrend finish.
Optionally users can enable MFI and AO filters. First of all, let's briefly explain what are these two indicators. The Awesome Oscillator (AO), created by Bill Williams, is a momentum-based indicator that evaluates market momentum by comparing recent price activity to a broader historical context. It assists traders in identifying potential trend reversals and gauging trend strength.
AO = SMA5(Median Price) − SMA34(Median Price)
where:
Median Price = (High + Low) / 2
SMA5 = 5-period Simple Moving Average of the Median Price
SMA 34 = 34-period Simple Moving Average of the Median Price
This indicator is filtering signals in the following way: if current AO bar is decreasing this candle can be interpreted as a bullish reversal bar. This logic is applicable because initially this strategy is a trend reversal, it is searching for the high probability setup against the current trend. Decreasing AO is the additional high probability filter of a downtrend.
Let's briefly look what is MFI. The Market Facilitation Index (MFI) is a technical indicator that measures the price movement per unit of volume, helping traders gauge the efficiency of price movement in relation to trading volume. Here's how you can calculate it:
MFI = (High−Low)/Volume
MFI can be used in combination with volume, so we can divide 4 states. Bill Williams introduced these to help traders interpret the interaction between volume and price movement. Here’s a quick summary:
Green Window (Increased MFI & Increased Volume): Indicates strong momentum with both price and volume increasing. Often a sign of trend continuation, as both buying and selling interest are rising.
Fake Window (Increased MFI & Decreased Volume): Shows that price is moving but with lower volume, suggesting weak support for the trend. This can signal a potential end of the current trend.
Squat Window (Decreased MFI & Increased Volume): Shows high volume but little price movement, indicating a tug-of-war between buyers and sellers. This often precedes a breakout as the pressure builds.
Fade Window (Decreased MFI & Decreased Volume): Indicates a lack of interest from both buyers and sellers, leading to lower momentum. This typically happens in range-bound markets and may signal consolidation before a new move.
For our purposes we are interested in squat bars. This is the sign that volume cannot move the price easily. This type of bar increases the probability of trend reversal. In this indicator we added to enable the MFI filter of reversal bars. If potential reversal bar or two preceding bars have squat state this bar can be interpret as a reversal one.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.12.31. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 50%
Maximum Single Position Loss: -5.29%
Maximum Single Profit: +29.99%
Net Profit: +5472.66 USDT (+54.73%)
Total Trades: 103 (33.98% win rate)
Profit Factor: 1.634
Maximum Accumulated Loss: 1231.15 USDT (-8.32%)
Average Profit per Trade: 53.13 USDT (+0.94%)
Average Trade Duration: 76 hours
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 4h ETH/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
[blackcat] L3 Top and Bottom Divine JudgmentOVERVIEW
The "Top and Bottom Divine Judgment" indicator is designed to identify potential tops and bottoms in the market using a combination of EMAs, SMAs, and custom calculations based on high and low prices. It provides multiple lines and plots to help traders visualize different market conditions and potential turning points.
FEATURES
Customizable EMA and SMA periods for various calculations.
Identification of bullish and bearish trends using EMAs.
Detection of overbought and oversold conditions.
Multiple lines and histograms to indicate specific market conditions and potential reversals.
Visual alerts with colored lines and shapes.
HOW TO USE
Add the script to your TradingView chart.
Customize Settings:
Adjust the short_ema_period, long_ema_period, sma_period, high_period, low_period, and other period inputs in the "Inputs" section.
Bullish and Bearish EMAs:
bullish_ema (yellow) and bearish_ema (fuchsia) are plotted to assess the overall market trend.
When bullish_ema is above bearish_ema, it suggests an uptrend.
When bullish_ema is below bearish_ema, it suggests a downtrend.
High-Low Boundary Line:
A horizontal line at 50 (yellow) represents a midpoint in the normalized price range, helping to identify overbought or oversold conditions.
Danger and Caution, Sell Signal, etc.:
These lines indicate specific conditions where the market might be overextended or due for a reversal.
Histograms for CZS1 and CZS4:
These histograms (aqua and purple) represent changes in certain indicators, possibly related to momentum or volatility, helping traders gauge the strength of trends.
Support Line Cross:
A shape ("●") is plotted when the close price crosses above a calculated support line, which could be a buy signal.
Generate Trading Signals:
Bullish and Bearish Trends:
Use the crossover of bullish_ema and bearish_ema to identify potential trend changes.
Overbought/Oversold Conditions:
Use the High-Low Boundary Line to identify overbought or oversold levels.
Specific Market Conditions:
Use the lines for "Danger and Caution," "Sell Signal," "Weak Out Strong Stay," "Opportunity," "Low Suck," and "High Sell" to identify specific market conditions and potential reversals.
Support Line Cross:
Use the plotted shape to identify potential buy signals when the close price crosses above the support line.
Risk Management:
Use the indicator in conjunction with other tools and risk management strategies to confirm trading signals and manage positions effectively.
LIMITATIONS
The script is based on historical data and does not guarantee future performance.
It is recommended to use the script in conjunction with other analysis tools.
The effectiveness of the strategy may vary depending on the market conditions and asset being traded.
NOTES
The script is designed for educational purposes and should not be considered financial advice.
Users are encouraged to backtest the strategy on a demo account before applying it to live trades.
THANKS
Special thanks to the TradingView community for their support and feedback.
Daily/Weekly/Monthly LevelsDaily/Weekly/Monthly Levels
TLDR
Shows Daily/Weekly/Monthly reversal levels. These can act as support/resistance levels.
Can only see what's in your candle history. I.e. It won't see old monthlies on your 1m chart! Use Daily to see everything with the most history.
Can only see levels higher than or equal to your current time frame. I.e. it will not see daily levels if you're looking at a weekly chart.
Doesn't keep levels that have been closed through. Does keep levels that have been only wicked.
This indicator shows you daily, weekly and monthly horizontal reversal levels to save you the hassle of doing it yourself. It's a little aid to speed up your TA routine.
Usage Details and Limitations
All daily, weekly, and monthly levels will be marked with lines on the chart automatically. Levels will only be visible from that level's TF or lower, i.e. you can't see the daily levels from the weekly chart, but you can see all levels from daily or lower charts. No levels will be displayed if you select a time frame higher than 1 month.
New levels will not be drawn if they are very close to existing levels. You can change the 'closeness' threshold in settings. It is specified as a percentage move from the existing level.
However, higher TF levels will REPLACE lower TF levels if they are too close. If you set the 'closeness' setting to 0, all levels will be drawn.
Levels will only be drawn if they are in your displayed candle range! I.e. the lower you go in timeframe, the less history you can see, and so levels originating from further back might be missed!
One technique you might have is to load up the daily timeframe and use that to mark any nearby levels of interest.
How does it work?
Basically, it looks for reversal candles on the D/W/M Timeframes, and draws a line for you from the open of the reversal candle (of that TF), so long as you are on a TF equal or lower than that level.
New bars on that TF that close through that TF's old levels will clear that level. Wicks do not clear.
Each newly found level will not be drawn if it's within the percentage distance of an existing level of equal or higher time frame.
Each new level also checks for existing levels on lower TFs that it can replace. E.g. if a monthly bar closes and produces a monthly level equal to an existing daily or weekly level, that daily or weekly level will be replaced. Use the settings to specify your 'closeness' allowance.
Please remember, it can only see as far back as your candle history, so you won't see old monthlies on a 1 minute chart! Use the daily TF to see all three levels at once with maximum history.
Wick ProportionsThis simple indicator highlights candles with short and long wicks matching a specified percentage of the candle's price range.
The candle is highlighted if the short wick is less than or equal to a specified percentage of the candle price range and the long wick is more than or equal to a specified percentage of the candle price range.
Both percentages can be separately specified as inputs, within reasonable ranges.
The indicator is useful for various strategies attempting to identify price reversal points.
UM EMA SMA WMA HMA with Directional Color ChangeUM EMA SMA WMA HMA with Directional Color Change
Description:
This is a Swiss Army knife type of Moving Average tool. Select your favorite Moving Average type, EMA - Exponential Moving Average, SMA - Simple Moving Average, WMA - Weighted Moving Average, or HMA - Hull Moving Average. Then selection your number of periods. The MA line is green when trending higher and red when trending lower. The fill between price and the MA line matches the red/green of the direction.
Defaults and Configuration:
The default setting is 65 period and EMA. Line colors and optional fill colors are user-configurable.
Alerts:
An alert can be set on the MA for directional color changes (red to green, or green to red) Right click the indicator and select Add Alert. Then select Bullish or Bearish color change.
Suggested Uses:
Add this to any timeframe chart with your favorite Moving averages. A strategy I use frequently is to "stretch" the Moving average. For example if you like the 8 day moving average on the daily chart, try the 52 period Moving average on the hourly chart. (6.5 market hours per day * 8) By looking at smaller time frames with longer MAs you get smoother color transitions on the Moving average. Add multiple instances of the MA. I prefer to use a smaller quick MA with a longer MA that represents a longer time frame.
Another use case I also like is the color transition over a Moving Average crossover. While I do like the daily 2/6 and 8/3 moving average crossovers, red-to-green and green-to-red color transitions seem to work with less lag than the crossovers.
Suggested Settings:
Daily charts: 8 EMA
Hourly charts: 55 EMA
30 minute charts: 65 WMA. (I like this one for inverse ETFs)
3 minutes charts: 178 EMA and 233 EMA
I also like to round MA settings up or down to the nearest fibonacci number: 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, etc.
Solid Background for Current CandleWhat Does This Script Do?
Background Reflects Current Candle:
The entire chart background changes to green if the current candle is bullish (close > open).
It changes to red if the current candle is bearish (close < open).
Solid Background Without Per-Candle Behavior:
The background doesn't depend on individual candle colors. It applies one unified color for the entire chart based on the current candle's direction.
Uses a Box to Cover the Chart:
Instead of using bgcolor (which applies per candle), this script creates a large invisible rectangle (box) that spans the entire chart area.
The box dynamically updates its color with each new candle.
Enhanced SMA Strategy with Trend Lines & S&R by DaxThe Enhanced SMA Strategy with Trend Lines & Support/Resistance (S&R) by Dax indicator is a technical analysis tool designed to improve trading decisions by combining the simplicity of the Simple Moving Average (SMA) with the insight provided by trend lines and support/resistance levels. This hybrid approach aims to create a more robust and reliable trading strategy.
Key Components:
Simple Moving Average (SMA):
SMA is a basic trend-following indicator that calculates the average of a set of price data over a specified period. It helps identify the direction of the market, such as whether an asset is in an uptrend or downtrend.
The Enhanced SMA Strategy may use multiple SMAs, such as short-term (e.g., 20-period) and long-term (e.g., 50-period), to detect crossovers that signal buy or sell opportunities. For example, a bullish crossover occurs when a short-term SMA crosses above a long-term SMA, indicating a potential buying signal, while a bearish crossover signals a potential sell.
Trend Lines:
Trend lines are drawn on the price chart to visually identify the direction of the market, acting as dynamic support and resistance levels. A trend line is drawn by connecting two or more price points that demonstrate the overall price movement.
Trend lines can help traders see potential breakout or breakdown points. A price breaking above a downtrend line or below an uptrend line often signals a trend reversal.
Support and Resistance (S&R):
Support levels are price levels where an asset tends to find buying interest and stop falling, while Resistance levels are points where selling pressure emerges and prevent the price from rising further.
These levels are critical in determining where price reversals or consolidations are likely to occur. Enhanced S&R indicators can automatically identify these levels and draw horizontal lines at these critical points on the chart.
Combining S&R with SMA can help traders decide whether a breakout or bounce is likely at these levels, increasing the odds of a successful trade.
How It Works:
Trend Identification: The SMA is used to determine the trend direction. A rising SMA indicates an uptrend, while a falling SMA suggests a downtrend.
Signal Generation: The strategy often uses a combination of SMA crossovers (bullish or bearish) along with the confirmation of price action near trend lines and support/resistance levels. For example:
If a price breaks above resistance and the short-term SMA crosses above the long-term SMA, a buy signal is confirmed.
Conversely, if the price breaks below support and the short-term SMA crosses below the long-term SMA, a sell signal is given.
Dynamic Support/Resistance: Trend lines are drawn automatically or manually to spot areas where price might reverse. The Enhanced SMA Strategy checks if the price is close to these levels, providing a more precise entry/exit point based on the broader market context.
Advantages of the Enhanced SMA Strategy with Trend Lines & S&R:
Improved Accuracy: By combining trend-following (SMA) with key levels like trend lines and S&R, the strategy filters out false signals, leading to more reliable trade setups.
Trend Confirmation: The use of trend lines and S&R confirms the broader market context, reducing the risk of trading against the trend or entering at weak price points.
Flexible: This strategy can be applied to various timeframes, from short-term day trading to longer-term swing trading.
Visual Clarity: The combination of trend lines, S&R, and moving averages provides a clear and visually intuitive strategy for identifying key price levels and trend shifts.
How to Use It:
Draw Trend Lines: Identify the most recent price peaks and troughs to draw trend lines, marking the potential resistance and support levels.
Use SMAs: Apply two different-period SMAs to detect the trend (e.g., 20-period and 50-period). Pay attention to crossovers for buy/sell signals.
Watch for Breakouts or Reversals: Monitor how the price behaves at support or resistance levels and the trend lines. A price move beyond these levels, accompanied by a confirming SMA crossover, can signal a strong trade opportunity.
Conclusion:
The Enhanced SMA Strategy with Trend Lines & S&R by Dax is a powerful, multi-layered approach to technical analysis. It enhances the basic SMA strategy by incorporating additional tools like trend lines and support/resistance levels, which help traders make more informed decisions with higher accuracy. This method is suitable for both novice and experienced traders, offering clear trade signals while reducing the risk of false entries.
Trend Detection with AlertsPurpose of the Script
The script identifies trends on a chart (uptrend, downtrend, or sideways trend) and provides both visual cues and alerts when a trend changes. It uses two methods for trend detection:
Moving Averages (MA): It compares a short-term moving average (fast) with a long-term moving average (slow).
An uptrend occurs when the short-term MA is above the long-term MA.
A downtrend occurs when the short-term MA is below the long-term MA.
Price Action:
Higher highs (HH) indicate bullish momentum.
Lower lows (LL) indicate bearish momentum.
When these methods align, the script determines the trend and notifies the user of any trend changes.
Key Features
Moving Average Calculation:
A short-term moving average and a long-term moving average are calculated to determine the overall trend direction.
Trend Determination:
An uptrend is detected when the short-term MA is above the long-term MA and higher highs are present.
A downtrend is detected when the short-term MA is below the long-term MA and lower lows are present.
Otherwise, the trend is classified as sideways.
Alerts for Trend Changes:
Alerts are triggered when the trend changes from one state to another (e.g., sideways to uptrend).
Custom messages indicate the type of trend detected.
Background Colors:
The script changes the chart’s background color based on the current trend:
Green for uptrends.
Red for downtrends.
Gray for sideways trends.
Visualization of Moving Averages:
The moving averages are plotted on the chart for visual reference.
How It Works
Inputs for Flexibility:
The user can configure the lengths of the short-term and long-term moving averages.
A lookback period is used to determine higher highs or lower lows for additional confirmation.
Trend Logic:
The script checks the relationship between the moving averages to identify general trends.
It also evaluates price action to confirm trend strength (e.g., whether a higher high or lower low occurred).
Alert System:
When the detected trend changes (e.g., from sideways to uptrend), an alert is triggered. This ensures the user is notified of important market movements.
Dynamic Background Coloring:
The background color of the chart changes to reflect the current trend, making it easy to interpret the trend visually.
Use Cases
Trend Identification: Helps traders quickly identify market trends for decision-making.
Alerts for Trend Changes: Notifies traders when a new trend begins, ensuring they don’t miss key opportunities.
Visual Assistance: Makes it easier to interpret trends through color-coded backgrounds and moving average overlays.
Customization Options
Adjust Moving Average Lengths: Users can modify the short-term and long-term moving averages to suit their trading strategies.
Change Lookback Period: The sensitivity of higher highs and lower lows can be adjusted.
Personalized Alerts: Alerts can be customized for different trading scenarios.
Summary
This script provides an intuitive way to detect and visualize market trends while offering real-time alerts for trend changes. It’s an excellent tool for traders who want to stay informed about market conditions and make data-driven decisions.
ADR Table BY @ICT_YEROADR Table BY @ICT_YERO
Created by: @ICT_YERO
This custom indicator is designed to provide the Average Daily Range (ADR) for multiple timeframes, including Daily, 4-Hour, and 1-Hour. The indicator is tailored to assist traders in understanding price volatility and making informed trading decisions.
Key Features
Multi-Timeframe ADR Calculation:
Automatically calculates and displays the ADR for Daily, 4-Hour, and 1-Hour timeframes.
Helps traders identify potential price movement ranges for different trading sessions.
Dynamic Range Visualization:
Clear visual representation of the ADR on the chart, making it easy to spot price extremes.
Real-time updates to reflect changes in price movement.
Custom Alerts:
Option to set alerts when the price approaches the ADR high or low.
Useful for identifying potential reversal zones or breakout opportunities.
User-Friendly Interface:
Simple and intuitive settings to customize colors, levels, and display preferences.
Seamlessly integrates with your existing TradingView setup.
ICT-Inspired Methodology:
Designed for traders who follow ICT concepts, focusing on precision and high-probability setups.
Applications
Range Trading: Helps determine the high and low boundaries for scalping or intraday setups.
Volatility Analysis: Understand market behavior during different times of the day or week.
Reversal Zones: Identify areas where price is likely to reverse, based on ADR extremes.
Whether you're a scalper, day trader, or swing trader, this indicator provides a comprehensive overview of price volatility across multiple timeframes, making it an essential tool for your trading arsenal.
Volume Trend Analysis ProKey Features of Volume Analysis Script
1. Volume Threshold Detection
Identifies significant volume spikes
Compares current volume against 20-period moving average
Configurable sensitivity for precise signal generation
2. Trend Confirmation Mechanisms
Uses short and long-term moving averages
Validates volume signals with price action
Reduces false positive trading signals
3. Advanced Visualization
Color-coded volume bars
Triangular buy/sell signal markers
Clear visual representation of volume dynamics
4. Risk Management Components
Customizable volume threshold
Deviation sensitivity adjustment
Built-in alert conditions for real-time monitoring
Dynamic Support and Resistance Pivot Strategy The Dynamic Support and Resistance Pivot Strategy is a flexible and adaptive tool designed to identify short-term support and resistance levels using the concept of price pivots.
### Key Elements of the Strategy
1. Pivot points as support and resistance levels
Pivots are significant turning points on the price chart, often marking local highs and lows where the price has reversed direction. A pivot high occurs when the price forms a local peak, while a pivot low occurs when the price forms a local trough. When a new pivot high is formed, it creates a resistance level. Conversely, when a new pivot low is formed, it creates a support level.
The strategy continuously updates these levels as new pivots are detected, ensuring they remain relevant to the current market conditions. By identifying these price levels, the strategy dynamically adjusts to market conditions, allowing it to adapt to both trending and ranging markets, since it has a long target and can perform reversal operations.
2. Entry Criteria
- Buy (Long): A long position is triggered when the price is near the support level and then crosses it from below to above. This suggests that the price has found support and may start moving upwards.
- Sell (Short): A short position is triggered when the price is near the resistance level and then crosses it from above to below. This indicates that the price may be reversing and moving downward.
3. Support/Resistance distance (%)
- This parameter establishes a percentage range around the identified support and resistance level. For example, if the Support Resistance Distance is 0.4% (default), the closing price must be within a range of 0.4% above support or below the resistance to be considered "close" and trigger a trade.
4. Exit criteria
- Take profit = 27 %
- Stop loss = 10 %
- Reversal if a new entry point is identified in the opposite direction
5. No Repainting
- The Dynamic Support and Resistance Pivot Strategy is not subject to repainting.
6. Position Sizing by Equity and risk management
- This strategy has a default configuration to operate with 35% of the equity. The stop loss is set to 10% from the entry price. This way, the strategy is putting at risk about 10% of 35% of equity, that is, around 3.5% of equity for each trade. The percentage of equity and stop loss can be adjusted by the user according to their risk management.
7. Backtest results
- This strategy was subjected to backtest and operations in replay mode on **1000000MOGUSDT.P**, with the inclusion of transaction fees at 0.12% and slipagge of 5 ticks, and the past results have shown consistent profitability. Past results are no guarantee of future results. The strategy's backtest results may even be due to overfitting with past data.
8. Chart Visualization
- Support and resistance levels are displayed as green (support) and red (resistance) lines.
- Pivot prices are displayed as green (pivot low) and red (pivot high) labels.
In this image above, the Support/Resistance distance (%) parameter was set to 0.8.
9. Default Configuration
Chart Timeframe: 1h
Pivot Lengh: 2
Support/Resistance distance (%): 0.4*
Stop Loss: 10 %
Take Profit: 27 %
* This parameter can alternatively be set to 0.8.
10. Alternative Configuration
Chart Timeframe: 20 min
Pivot Lengh: 4
Support/Resistance distance (%): 0.1
Stop Loss: 10 %
Take Profit: 25 %
BYBIT:1000000MOGUSDT.P
Poisson Projection of Price Levels### **Poisson Projection of Price Levels**
**Overview:**
The *Poisson Projection of Price Levels* is a cutting-edge technical indicator designed to identify and visualize potential support and resistance levels based on historical price interactions. By leveraging the Poisson distribution, this tool dynamically adjusts the significance of each price level's past "touches" to project future interactions with varying degrees of probability. This probabilistic approach offers traders a nuanced view of where price levels may hold or react in upcoming bars, enhancing both analysis and trading strategies.
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**🔍 **Math & Methodology**
1. **Strata Levels:**
- **Definition:** Strata are horizontal lines spaced evenly around the current closing price.
- **Calculation:**
\
where \(i\) ranges from 0 to \(\text{Strata Count} - 1\).
2. **Forecast Iterations:**
- **Structure:** The indicator projects five forecast iterations into the future, each spaced by a Fibonacci sequence of bars: 2, 3, 5, 8, and 13 bars ahead. This spacing is inspired by the Fibonacci sequence, which is prevalent in financial market analysis for identifying key levels.
- **Purpose:** Each iteration represents a distinct forecast point where the price may interact with the strata, allowing for a multi-step projection of potential price levels.
3. **Touch Counting:**
- **Definition:** A "touch" occurs when the closing price of a bar is within half the increment of a stratum level.
- **Process:** For each stratum and each forecast iteration, the indicator counts the number of touches within a specified lookback window (e.g., 80 bars), offset by the forecasted position. This ensures that each iteration's touch count is independent and contextually relevant to its forecast horizon.
- **Adjustment:** Each forecast iteration analyzes a unique segment of the lookback window, offset by its forecasted position to ensure independent probability calculations.
4. **Poisson Probability Calculation:**
- **Formula:**
\
\
- **Interpretation:** \(p(k=1)\) represents the probability of exactly one touch occurring within the lookback window for each stratum and iteration.
- **Application:** This probability is used to determine the transparency of each stratum line, where higher probabilities result in more opaque (less transparent) lines, indicating stronger historical significance.
5. **Transparency Mapping:**
- **Calculation:**
\
- **Purpose:** Maps the Poisson probability to a visual transparency level, enhancing the readability of significant strata levels.
- **Outcome:** Strata with higher probabilities (more historical touches) appear more opaque, while those with lower probabilities appear fainter.
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**📊 **Comparability to Standard Techniques**
1. **Support and Resistance Levels:**
- **Traditional Approach:** Traders identify support and resistance based on historical price reversals, pivot points, or psychological price levels.
- **Poisson Projection:** Automates and quantifies this process by statistically analyzing the frequency of price interactions with specific levels, providing a probabilistic measure of significance.
2. **Statistical Modeling:**
- **Standard Models:** Techniques like Moving Averages, Bollinger Bands, or Fibonacci Retracements offer dynamic and rule-based levels but lack direct probabilistic interpretation.
- **Poisson Projection:** Introduces a discrete event probability framework, offering a unique blend of statistical rigor and visual clarity that complements traditional indicators.
3. **Event-Based Analysis:**
- **Financial Industry Practices:** Event studies and high-frequency trading models often use Poisson processes to model order arrivals or price jumps.
- **Indicator Application:** While not identical, the use of Poisson probabilities in this indicator draws inspiration from event-based modeling, applying it to the context of price level interactions.
---
**💡 **Strengths & Advantages**
1. **Innovative Visualization:**
- Combines statistical probability with traditional support/resistance visualization, offering a fresh perspective on price level significance.
2. **Dynamic Adaptability:**
- Parameters like strata increment, lookback window, and probability threshold are user-defined, allowing customization across different markets and timeframes.
3. **Independent Probability Calculations:**
- Each forecast iteration calculates its own Poisson probability, ensuring that projections are contextually relevant and independent of other iterations.
4. **Clear Visual Cues:**
- Transparency-based coloring intuitively highlights significant price levels, making it easier for traders to identify key areas of interest at a glance.
---
**⚠️ **Limitations & Considerations**
1. **Poisson Assumptions:**
- Assumes that touches occur independently and at a constant average rate (\(\lambda\)), which may not always align with market realities characterized by trends and volatility clustering.
2. **Computational Intensity:**
- Managing multiple iterations and strata can be resource-intensive, potentially affecting performance on lower-powered devices or with very high lookback windows.
3. **Interpretation Complexity:**
- While transparency offers visual clarity, understanding the underlying probability calculations requires a basic grasp of Poisson statistics, which may be a barrier for some traders.
---
**📢 **How to Use It**
1. **Add to TradingView:**
- Open TradingView and navigate to the Pine Script Editor.
- Paste the script above and click **Add to Chart**.
2. **Configure Inputs:**
- **Strata Increment:** Set the desired price step between strata (e.g., `0.1` for 10 cents).
- **Lookback Window:** Define how many past bars to consider for calculating Poisson probabilities (e.g., `80`).
- **Probability Transparency Threshold (%):** Set the threshold percentage to map probabilities to line transparency (e.g., `25%`).
3. **Understand the Forecast Iterations:**
- The indicator projects five forecast points into the future at bar spacings of 2, 3, 5, 8, and 13 bars ahead.
- Each iteration independently calculates its Poisson probability based on the touch counts within its specific lookback window offset by its forecasted position.
4. **Interpret the Visualization:**
- **Opaque Lines:** Indicate higher Poisson probabilities, suggesting historically significant price levels that are more likely to interact again.
- **Fainter Lines:** Represent lower probabilities, indicating less historically significant levels that may be less likely to interact.
- **Forecast Spacing:** The spacing of 2, 3, 5, 8, and 13 bars ahead aligns with Fibonacci principles, offering a natural progression in forecast horizons.
5. **Apply to Trading Strategies:**
- **Support/Resistance Identification:** Use the opaque lines as potential support and resistance levels for placing trades.
- **Entry and Exit Points:** Anticipate price interactions at forecasted levels to plan strategic entries and exits.
- **Risk Management:** Utilize the transparency mapping to determine where to place stop-loss and take-profit orders based on the probability of price interactions.
6. **Customize as Needed:**
- Adjust the **Strata Increment** to fit different price ranges or volatility levels.
- Modify the **Lookback Window** to capture more or fewer historical touches, adapting to different timeframes or market conditions.
- Tweak the **Probability Transparency Threshold** to control the sensitivity of transparency mapping to Poisson probabilities.
**📈 **Practical Applications**
1. **Identifying Key Levels:**
- Quickly visualize which price levels have historically had significant interactions, aiding in the identification of potential support and resistance zones.
2. **Forecasting Price Reactions:**
- Use the forecast iterations to anticipate where price may interact in the near future, assisting in planning entry and exit points.
3. **Risk Management:**
- Determine areas of high probability for price reversals or consolidations, enabling better placement of stop-loss and take-profit orders.
4. **Market Analysis:**
- Assess the strength of market levels over different forecast horizons, providing a multi-layered understanding of market structure.
---
**🔗 **Conclusion**
The *Poisson Projection of Price Levels* bridges the gap between statistical modeling and traditional technical analysis, offering traders a sophisticated tool to quantify and visualize the significance of price levels. By integrating Poisson probabilities with dynamic transparency mapping, this indicator provides a unique and insightful perspective on potential support and resistance zones, enhancing both analysis and trading strategies.
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**📞 **Contact:**
For support or inquiries, please contact me on TradingView!
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**📢 **Join the Conversation!**
Have questions, feedback, or suggestions for further enhancements? Feel free to comment below or reach out directly. Your input helps refine and evolve this tool to better serve the trading community.
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**Happy Trading!** 🚀
Pivot Market StructureDescription and Features
This script is designed to enhance technical analysis by identifying key market structure levels. It uses a price action trail (based on the last highest/lowest price) and pivot points to track market trends, offering insights into potential reversal zones or trend continuation signals.
How the Script Works
High/Low Trail Logic: The script includes a trail mechanism that compares the current price with the last highest and lowest price, determining whether the price has breached these levels. This helps pinpoint key price action events and potential trend shifts. Unlike pivot points the price action trail is more responsive changes within the market structure.
Step Size and Length for High/Low Trail:
- The Step Length parameter defines how many bars are used to compare the current price against the last highest/lowest price, providing a measure of price extremes.
- The Length parameter determines the number of bars considered for calculating the highest/lowest price since the last price action event (either price surpassing a previous high or dipping below a previous low).
Pivot Point Calculation: Pivot Point Highs are calculated by the number of bars with lower highs on either side of a Pivot Point High calculation. Similarly, Pivot Point Lows are calculated by the number of bars with higher lows on either side of a Pivot Point Low calculation. The script draws a line from/to every calculated pivot point to highlight market structure extremes. It can optionally extend these pivot lines to the left for added context, providing historical reference for decision-making.
Summary
By combining both pivot analysis and price action trailing techniques, the script provides a comprehensive view of a pivot point based market structure.
Dow waveform analyzerDow Waveform Analyzer
1. Overview and Features of the Indicator
This indicator is a tool designed to analyze chart waveforms based on Dow Theory, identifying swing lows (support) and swing highs (resistance). It allows users to quickly and consistently determine trend direction. Compared to manual analysis, it provides more efficient and accurate results.
By using swing lows and swing highs, the indicator offers a more detailed understanding of trends than simple updates to highs and lows, aiding in the creation of effective trading strategies.
2. Identifying Wave Lows and Highs
Stock prices do not move in straight lines; instead, they rise and fall in waves. This indicator starts by identifying the wave lows and wave highs.
- Wave Low: The lowest point during a temporary price decline.
- Wave High: The highest point during a temporary price increase.
These are automatically identified using Pine Script’s built-in functions `pivotlow` and `pivothigh`.
3. Drawing the Waveform
The identified wave lows and highs are alternately connected to draw the waveform. However, there are cases where wave lows or highs occur consecutively:
- Consecutive Wave Lows: The lower low is used for drawing the waveform.
- Consecutive Wave Highs: The higher high is used for drawing the waveform.
4. Tracking Swing Lows/Highs and Trend Determination
Swing lows and swing highs are crucial markers that indicate the state of wave progression:
- Swing Low: The starting point of a wave (wave low) when the closing price exceeds the previous wave high.
- Swing High: The starting point of a wave (wave high) when the closing price falls below the previous wave low.
The changes in swing lows and swing highs as the waves progress allow for trend state determination.
5. Examples of Trend States
During an Uptrend:
- When the price surpasses a wave high, the swing low is updated, confirming the continuation of the uptrend.
End of an Uptrend:
- When the price falls below the swing low, the swing low disappears, and a swing high appears, signaling the end of the uptrend.
Sideways Movement:
- Swing lows and swing highs alternately appear, indicating a sideways trend.
Start of a Downtrend:
- When the price breaks below a wave low for the first time, the swing high is updated, confirming the start of the downtrend.
During a Downtrend:
- When the price breaks below a wave low, the swing high is updated, confirming the continuation of the downtrend.
End of a Downtrend:
- When the price surpasses a wave high, the swing high disappears, and a swing low reappears, signaling the end of the downtrend.
Restart of an Uptrend:
- When the swing low is updated, the uptrend resumes. The uptrend begins when the price surpasses a wave high, and the swing low is updated for the first time.
6. Applications
Trade Entries and Exits:
- Set stop orders for entry at the price level where a trend starts.
- Set stop orders for exit at the price level where a trend ends.
Trend Filtering:
- Use the indicator to confirm whether market conditions are suitable for entry based on the trend state. Analyze waveforms to aid trading strategies.
Guide for Drawing Trendlines:
- Utilize wave lows and highs as starting and ending points when drawing trendlines with drawing tools.
7. Parameters and Display Items
Pivot Points:
- Wave lows are marked with circles below the candlestick’s low, and wave highs are marked with circles above the candlestick’s high.
Number of Bars for Pivot Calculation:
- Specify the number of bars on either side used to identify highs (default: 2).
Waveform:
- Specify the color (default: blue) or toggle its visibility (default: visible).
Swing Lows/Highs:
- Displayed as large circles. The rightmost large circle on the chart indicates the current swing low or swing high. Historical swing points are also displayed to show the progression of state changes. Specify the color (default: green) or toggle visibility (default: visible).
1. インジケーターの概要と特徴
このインジケーターは、ダウ理論を基にチャートの波形を分析し、押し安値や戻り高値を特定するツールです。これにより、トレンドの方向を迅速かつ一貫して判断できます。手動での分析と比較して、効率的かつ精度の高い結果が得られる点が特徴です。
押し安値や戻り高値を利用することで、単純な高値・安値の更新よりも詳細にトレンドの状況を把握し、効果的な取引戦略の構築に役立ちます。
2. 波の谷と波の頂の特定
株価は直線的に動くのではなく、波を描きながら上昇や下落を繰り返します。このインジケーターは、まず波の谷と波の頂を特定するところから始まります。
波の谷: 一時的な下落の最安値
波の頂: 一時的な上昇の最高値
これらを Pine Script の内蔵関数（ピボットローとピボットハイ）を用いて自動的に特定しています。
3. 波形の描画方法
特定した波の谷と波の頂を交互に結んで波形を描画します。ただし、波の谷や頂が連続する場合があります。
波の谷が連続する場合: より低い谷を採用して波形を描く
波の頂が連続する場合: より高い頂を採用して波形を描く
4. 押し安値・戻り高値の追跡とトレンド判断
押し安値と戻り高値は、波の進行状況を示す重要な指標です。
押し安値: 終値が前回の高値を超えた際の波の谷
戻り高値: 終値が前回の安値を割り込んだ際の波の頂
波の進行に伴う押し安値・戻り高値の変化から、トレンドの状態を判断します。
5. トレンド状態の具体例
上昇トレンド中:
波の頂を株価が上抜け押し安値が更新され続けることで上昇トレンドを継続。
上昇トレンドの終了:
株価が押し安値を割ると、押し安値が消え、戻り高値が新たに出現して、上昇トレンドを終了。
横ばい状態:
押し安値と戻り高値が交互に切り替わる。
下降トレンドの開始:
波の谷を株価が下抜け戻り高値がはじめて更新されることで下降トレンド開始を確認。
下降トレンド中:
波の谷を株価が下抜け戻り高値が更新され続けることで下降トレンドを継続。
下降トレンドの終了:
株価が波の頂を超えると、戻り高値が消え、押し安値が再び出現して、下降トレンドを終了。
横ばい状態:
押し安値と戻り高値が交互に切り替わる。
上昇トレンドの再開:
押し安値が更新されることで上昇トレンドを確認。
波の頂を株価が上抜け押し安値がはじめて更新されることで上昇トレンド開始を確認。
6. 応用例
トレードのエントリーとエグジット:
トレンド発生の価格に逆指値を設定してエントリー。
トレンド終了の価格に逆指値を設定してエグジット。
トレンドフィルターとして活用:
エントリーに適したトレンド状況かを確認。波形を分析してトレード戦略の参考に。
トレンドラインを描く時の参考として活用:
波の谷と頂を描画ツールを使ってトレンドラインを描く時の起点や終点として活用。
7. パラメーターと表示項目
ピボット: 波の谷はローソク足の安値にサークルを表示、波の頂はローソク足の高値にサークルを表示。
ピボット計算用のバーの数: 高値を特定するために左右何本のローソク足を使用するかを設定（初期値: 2）。
波形: 色（初期値: 青）や表示（初期値: 表示）の指定。
押し安値・戻り高値: 大きなサークルで表示。チャートの一番右の大きなサークルが現在のもの。過去のものも状態変化の経緯を示すために表示。色（初期値: 緑）や表示（初期値: 表示）の指定。
