Impact Zones - Skylyne InvestingWhat is the Impact Zone system:
The creation of Impact Zones started with our love for trading the Bond Market. Impact Zones were originally specifically tailored for the Bond market and now have been mastered to capture most of the Asset Classes out in the market today (Please look at Impact Zone Settings section for asset classes covered by this script). The Impact Zone system is a zone break (or market level break) following system with specific take profit points already established for you on the open of the market day (depending on your asset timing will vary).
*This script was designed for Intraday Trading, Long term or Swing Trading is not recommended with this system
The script will create buy and sell signals on the break of the Impact Zones when specific criteria is met along with the break of the zone. You do not have to use only our signals provided, you can also create your own trading rules based on our script.
Items to highlight:
Skylyne Upper Zone: Green Zone
Skylyne Middle: Yellow Line
Skylyne Lower Zone: Red Zone
Skylyne Take Profit Lines: Purple Lines
Skylyne Average: Orange Line (dynamic support/resistance)
Skylyne Overnight Session: Dark Blue (No Trade Zones)
Skylyne Signals: Buy / Sell
You can think of the Upper Zone as a bull zone and Lower zone as a bear zone, when price enters these zones we want to start watching price action to determine direction the market will take on the break or specified zone, whether it be a break and reversal or a break and run. This can be confirmed with either our signals (buy & sell) or the use of the dynamic support and resistance line (Skylyne Average).
Our script is written to capture market zones and place then on your screen with ease, we also have programmed in specific take profits and stop loss levels we have found the market respects on the intraday trading based on the Impact Zone captured.
The Impact Zones and Take Profit Levels change at Market open everyday. The levels provided will stay on your chart until the next Market open where the Impact Zones and Levels will change to accommodate that trading Day.
We recommend only using that trading days levels, however; using past levels can help trades depending on the case
The three Trades we want to highlight are:
1. Break of Impact Zones
a. This trade is taken when a break of the impact zone happens either in the positive or negative direction and traded to the next zone or take profit line (stop losses can be set with zones or the dynamic skylyne average crossovers)
2. Break of Skylyne Average
a. This trade is taken when price action confirms a bullish or bearish bias on the break of the average line (we would close this trade on the reverse break of the Skylyne Average using the zones as targets)
3. Break of the Skylyne Mid:
a. This trade is taken when a break of the Skylyne Mid level occurs and we use the upper and lower bounds of the Impact Zones as take profit and stop losses
Impact Zone Settings:
*Trading Category and Overnight Category must match the Asset Class being viewed on chart for accurate signals
1. Trading Category
a. Bonds
b. Corn/Wheat
c. Stocks
d. Index Futures
e. Euro/Dollar
f. Gold/Silver
2. Overnight Category
a. Bonds
b. Corn/Wheat
c. Stocks
d. Index Futures
e. Euro/Dollar
f. Gold/Silver
3. Chart Aggregation Limit (Default Value is 25 minutes)
Impact Zone Overnight Trading:
Impact Zone Overnight sessions are highlighted in a dark blue color and we use these highlighted time sessions as a NO TRADE session. Our system was built to be traded during normal market trading hours and overnight sessions tend to be less predictive in terms of direction and or zone reliance. If you choose to trade overnight sessions with Impact Zones, make sure you make a very in depth trading plan and stick to the rules set for yourself.
Impact Zone Signals:
1. Signals for buy or sell of the asset class happen on breaks of the Impact Zones, and when specific criteria are met that we determined necessary to evaluate the overall trend of the market
2. Not every break of the Impact Zones will trigger a signal
3. No signal will be generated during overnight sessions, we recommend studying overnight sessions before beginning to create your own overnight trading session plans based on Impact Zones
4. When a signal is generated you will use the next take profit line (purple line) in the direction of your trade you are in. Other trading signals were discussed above
5. If while you are in a trade and the skylyne average (orange line) is broke in the opposite direction of your trade you will take this as a dynamic stop, and in some cases a dynamic take profit
Impact Zone Charting Timeframes:
1. Recommendation of using the 1 minute chart aggregation bars to maximize profits and limit losses
2. The script has a default charting aggregation limit of 25 minutes, adjustments to the input (in the settings) to increase the aggregation limit need to be made in order to use higher than 25 minute timeframes
Charting Example:
First note is to notice how our publish example uses the 1-minute timeframe aggregation, this is because our script was written to maximize profit on the 1 minute time frame. The script can be used on any time frame, however; make sure that you increase the aggregation limit input when using timeframes above 25 minutes.
From the chart included in the script post, you can notice that buy and sell signals happen only when specified criteria is met, and not every time there is a crossover of the Impact Zones there is a signal. You do not only have to trade the buy and sell signals that our system provides, however; our team believes that these signals are one of the best ways to trade the Impact Zone script. If you deviate from only using signals provided and choose to use the Impact Zones differently, we recommend using the next level, or zone, in the direction of your trade as your take profit (As described in trade we want to highlight section)
Systemtrading
PALGOWHAT DOES THE SCRIPT DO & HOW IT IS BEING DONE :
This script is designed by using some momentum indicators and oscillators like RSI and stochastic to identify the momentum of the stock. Whenever there is a start of momentum the stochastic indicator combined to the RSI and other oscillator gives a cross signal & alert a user to look for either BUY or SELL opportunity in the stock.
When there is a gain in momentum , the script uses RSI & Bollinger bands to identify the breakout & provides a buy/sell signal for taking entry into the trade.
Few moving averages helps a user to hold the trade by providing a signal on the chart after each candle’s closing in the form of triangles.
The script provides a signal in the form of a circle to exit the position when the price gets overbought/oversold . Here the script uses the momentum indicators RSI & MACD & stochastic in combination.
HOW TO USE THE SCRIPT:
General parameters:
1. Best suitable for stocks to trade in equity/futures segment.
2. Do not apply on Index like nifty or banknifty/ commodities /forex/ and cryptos
3. Strictly use only on 1 hour time frame. (Best tested results are on 1 hour time frame)
4. Use only to take swing trades only.
How to interpret the signals :
1. Wait for a ‘X’ sign before mind make up. A red ‘X’ means look for selling opportunity , a green ‘X’ means look for buying opportunity. After getting the X sign the user will be shown a text signal whether to look for buying opportunity or selling opportunity
Taking a position:
2. Wait for an arrow before entering into any position. A red arrow on upside of a bar pointing downward means open short position. A green arrow below the bar pointing upward means open buy position. After getting the arrr sign the user will be shown a text signal whether to create a buy position or sell position.
NOTE: Only after the the signalling of X , look for arrow. Do not buy/sell if you see any arrow before the signal of X.
STOP LOSS should be the most recent swing high/low or most recent STRONG CANDLE’S high/low.
While maintaining the position :
3. The small triangles after the each bar completion tells you to hold the position. The red triangles appearing upside on the bar tells you to hold the short position, whereas the green triangles appearing below the bars tells you to hold the long position.
Exiting the position:
4. After you create a buy position , if you see a green arrow above any bar pointing downward, then you should either book partially/leave the position for sometime. You will get another signal to re-enter. With the signal user will be shown a text to indicating for partial book/exit till next signal.
5. Similarly, after you create a sell position , if you see a red arrow below any bar pointing upward, then you should either book partially/leave the position for sometime. You will get another signal to re-enter. With the signal user will be shown a text to indicating for partial book/exit till next signal
While being in position if you see any X signal which is opposite of your trade , then leave your position immediately.
6. When you see a big red circle dot then you must exit all your short positions. Contrary , when you see a big green circle dot , you must exit all your long positions. And then wait for a X-signal. With the signal user will be shown a text to indicating to exit all of the position.
No Trading Zone:
When you get frequent X-signals in green-red-green-red & that too very close, then its means that stock is going to form a range. One should wait for the range break & move away to another stock. (THIS IS WHERE YOU WILL REQUIRE A PRACTICE TO IDENTIFY THE RANGE)
TradewithPuneet: Pro-PullbacksThe Pro-Pullbacks strategy is designed to trade pullbacks . In other words, this strategy will give you:
• BUY signals : When in an already established Uptrend , a stock falls but then resumes its upward trajectory.
• SHORT signals : When in an already established Downtrend , a stock rises but then resumes its downward trajectory.
Through this strategy, we aim to trade in the direction of an already established trend by entering on a pullback. Thus, instead of trying to catch the whole trend, this strategy tries to profit from an already established trend.
The strategy uses certain filters to identify whether the stock is in Uptrend or Downtrend. Next, it identifies pullbacks to an identified trend. Pullbacks are sometimes too short or too deep. This strategy ignores such short & deep pullbacks. Finally, it identifies certain threshold levels (for confirmation), beyond which the stock is expected to resume the original trend. If the stock closes beyond the threshold level, it gives the necessary BUY or SHORT signal.
The strategy guides you the price level at which to enter a trade. You can enter your choice of target profit and stop loss levels.
This strategy is only built for stocks, not for indices or any other financial instrument.
TradewithPuneet: Pro-BreakoutsThe Pro-Breakouts strategy is designed to get into a LONG position when a stock enters an Uptrend after a breakout. This strategy gives you:
• BUY signals : On a breakout, with strong probability of continuing up-moves.
• No SHORT signals are included in this strategy.
Through this strategy, we aim to ride a big chunk of the Uptrend till it reverses.
The strategy uses certain filters to avoid fake breakouts. Once those filter conditions are met, the stock waits for a breakout of key resistance level. Upon the breakout, the stock gives a BUY signal. Finally, when the stock breaks its key support level, it gives an EXIT signal.
The strategy guides you the price level at which to BUY and EXIT. You can also input your acceptable stop loss and profit booking levels, which are then displayed on the chart. The resistance and support lines (which result in trades) are drawn automatically on the chart.
The strategy is for medium to long-term traders . It works only on Daily timeframes and on closing prices. Hence, during the market hours, if a stock breaks out of its key-resistance level, you will see a BUY signal, but if it closes below it, the signal will disappear.
This strategy is only built for stocks, not for indices or any other financial instrument.
