Pocket Pivot BreakoutPocket Pivot Breakout Indicator
The pocket pivot breakout indicator will show a blue arrow under the candle if both the following conditions are met:
1. The percentage change of the candle on that day from open is greater than 3%.
2. The volume on the day of 3% candle is higher than the highest red volume in the past 10 days.
The second condition is based on the 'Pocket Pivot' concept developed by Gil Morales and Chris Kacher.
If only one of the conditions is met, while the other is not, there will be no arrow.
How to use the Pocket Pivot Breakout indicator?
1. If the stock is breaking out of a proper base like (cup & handle, Darvas box etc.), you can use the blue arrow as an indicator to make your initial buy.
2. If you already own a stock, the blue arrow indicator can be used for pyramiding, following a continuation breakout from a proper base.
3. Avoid making a new entry or continuation entry if the stock is too extended from 10ma.
Gap-up > 0.5% Indicator
Gap-up Indicator displays a blue colored candle when a stock gaps up by more than 0.5% compared to previous day's close.
It is turned off by default. To activate it, check the box next to Gap-up > 0.5% in the indicator options.
How to use the Gap-up Indicator?
1. When a stock gaps up, it usually indicates strength, especially if on the day of the gap-up, the stock closes strongly.
2. This indicator should not be used in isolation but with a proper base breakout from a tight consolidation.
3. If a stock is already extended from 10ma, avoid taking any new or continuation entries.
Precautions
1. Avoid buying longs when the general market conditions are not favorable.
2. Avoid buying stocks below 200ma.
3. Avoid making a new entry or pyramid entry if a stock is too extended from 10ma.
Important Points
1. Always choose fundamentally strong stocks showing strong growth in earnings/margins/sales.
2. Buy these fundamentally strong stocks when they are breaking out of proper bases.
3. To learn more about pocket pivots and buyable gap-ups, read the book, Trade Like an O'Neil Disciple (by Gil Morales & Chris Kacher).
Cheers
Simranjit
Golden PocketGolden Pocket
This marks up the fibonacci retracement levels of 0.65 and 0.618 by default, these levels are often referred to as the golden pocket.
They are known by this because when price has an impulse either to the up or downside, price will end up retracing at some point. This Golden pocket often lines up with other means of confluence where it's considered a good entry price from the retrace.
Unlike standard fib retracement indicators, these boxes will extend with current price until they are hit. As well as this, there is a moving average filter which you can set to higher timeframes meaning that you can choose to only look for golden pockets which are following the higher time frame trend. You can easily monitor all of your settings by setting up just 1 alert.
Settings
You have the option to enable/disable the line which marks out the pivot points the fib is being calculated from, you can also change the colour and style of the line.
Below this you have the option to choose what colour the fib boxes are and what colour they change to once price hits it. If you want them to disappear change the colours opacity to 0%.
If you want to change the golden pocket levels you can do that by changing the 0.618 or 0.65 levels in the settings.
The pivot distance controls what part defines a pivot high or low, it must be the highest/lowest to the left/right of the pivot candle count.
MA filter will only accept golden pockets which are trending with the Moving average.
You can change all the settings of the Moving average which acts as a filter including which timeframe it is calculated on.
Alerts
Simply toggle this on int the settings and then click on the 3 dots next to the indicators name, 'add alert', leave the top boxes as they are, you can name the alert anything you like but once you confirm this, it will monitor all golden pockets on the particular asset and timeframe you are looking at. The alerts are set up to trigger as soon as price touches one of the boxes.
Use Cases
We like setting are moving average up on the daily timeframe and using the Moving average filter so we know we are only trading with the higher timeframe trend. From there we can set up alerts on any lower timeframe.
Feel free to use any part of this script in your own code, please just give us a mention so we can check out your contributions to the community as well!
Happy to take in any suggestions or ways of improving
Volume With ColorVolume with color helps to quickly identify accumulation or distribution.
An accumulation day is an up day with volume greater than a user selected average.
A distribution day is a down day with volume greater than a user selected average.
This indicator will highlight those days by changing the volume bar colors for an easy visual.
Chart Champions CC Pocket 0.65 -0.666 Fib levels or commonly know as the CC pocket
Marks Strong Support/Ressitance, Use with conflunce.
Lookback Length is adjustable
Let me know any suggestions or ideas which could help improve
Pocket Pivot IndicatorFrom Gil Morales and Chris Kacher (O'Neil's disciples). Designed to find buy points in bases and continuation buy points in an uptrend. The volume today must be greater then the maximum down volume of the past 10 trading days. Recommended to use in conjunction with the 10 day and/or 50 day moving average.
Typical use :
Scan for pocket pivots.
Is stock strong fundamentally? i.e- leader in it's sector
Has the stock developed a base ?(see O'Neil's work for base discussion)
Is the stock breaking through or bouncing off the 10 period sma? (can use 50 sma too)
If so.. a possible buy.
Cheers
David
