Uptrick: Logarithmic Crypto Bands
Description :
Introduction
The `Uptrick: Logarithmic Crypto Bands` indicator introduces an innovative approach to technical analysis tailored specifically for the cryptocurrency markets. By leveraging logarithmic transformations combined with dynamic exponential bands, this indicator offers a sophisticated method for identifying critical support and resistance levels, assessing market trends, and evaluating volatility. Its unique approach stands out from traditional indicators by addressing the specific challenges of high volatility and erratic price movements inherent in cryptocurrency trading.
Originality and Usefulness
** 1. Unique Logarithmic Transformation: **
- Innovation : Unlike traditional indicators that often use raw price data, the Uptrick: Logarithmic Crypto Bands applies a logarithmic transformation to the closing prices: logPrice = math.log(close). This approach is original because it reduces the impact of extreme price fluctuations, providing a smoother and more stable price series. This transformation addresses a common issue in cryptocurrency markets where large price swings can obscure true market trends.
- Advantage : The logarithmic transformation compresses the price range, which allows traders to better identify long-term trends and reduce the noise caused by outlier price movements. This results in a more reliable basis for analysis and enhances the ability to detect meaningful market patterns.
**2. Dynamic Exponential Bands :**
- Innovation : The indicator employs exponential calculations to derive dynamic support and resistance levels based on a central base line : baseLine * math.pow(multiplier, n). Unlike static bands that remain fixed regardless of market conditions, these bands adjust dynamically according to market volatility.
- Advantage : The dynamic nature of the bands provides a more responsive and adaptive tool for traders. As market volatility changes, the bands widen or narrow accordingly, offering a more accurate reflection of potential support and resistance levels. This adaptability improves the tool's effectiveness in varying market conditions compared to static or traditional bands.
Detailed Description and Substantiation
**1. Logarithmic Price Calculation :**
- Code : ` logPrice = math.log(close)
- Description : This calculation converts the closing price into its logarithmic value. By compressing the price range, it minimizes the distortion caused by extreme price movements, which can be particularly pronounced in the volatile cryptocurrency markets.
- Purpose : To provide a stabilized price series that facilitates more accurate trend analysis and reduces the influence of erratic price fluctuations.
**2. Moving Averages of Logarithmic Prices :**
- ** Long-Term Moving Average :**
- Code : maLongLogPrice = ta.sma(logPrice, longLength)
longLength = 2000
- ** Description : A simple moving average of the logarithmic price over a long period. This average helps filter out short-term noise and provides insight into the long-term market trend.
- Purpose : To offer a perspective on the overall market direction, making it easier to identify enduring trends and distinguish them from short-term price movements.
- Short-Term Moving Average :
- Code : maShortLogPrice = ta.sma(logPrice, shortLength) shortLength = 900
- Description : A simple moving average of the logarithmic price over a shorter period. This component captures more immediate price trends and potential reversal points.
- Purpose : To detect short-term trends and changes in market direction, allowing traders to make timely trading decisions based on recent price action.
**3. Base Line Calculation :**
- Code : baseLine = math.exp(maShortLogPrice)
- Description : Converts the short-term moving average of the logarithmic price back to the original price scale. This base line serves as the central reference point for calculating the surrounding bands.
- Purpose : To establish a benchmark level from which the exponential bands are calculated, providing a central reference for assessing potential support and resistance levels.
**4. Band Calculation and Plotting :**
- ** Code :**
- Band 1: plot(baseLine * math.pow(multiplier, 1), color=color.new(color.yellow, 20), linewidth=1, title="Band 1")
- Band 2: plot(baseLine * math.pow(multiplier, 2), color=color.new(color.yellow, 20), linewidth=1, title="Band 2")
- Band 3: plot(baseLine * math.pow(multiplier, 3), color=color.new(color.yellow, 20), linewidth=1, title="Band 3")
- Band 4: plot(baseLine * math.pow(multiplier, 4), color=color.new(color.yellow, 20), linewidth=1, title="Band 4")
- Band 5: plot(baseLine * math.pow(multiplier, 5), color=color.new(color.yellow, 10), linewidth=1, title="Band 5")
- Band 6: plot(baseLine * math.pow(multiplier, 6), color=color.new(color.yellow, 0), linewidth=1, title="Band 6")
- * Multiplier : Set at 1.3, adjusts the spacing between bands to accommodate varying levels of market volatility.
- Description : Bands are plotted at exponential intervals from the base line. Each band represents a potential support or resistance level, with the spacing between them increasing exponentially. The color opacity of each band indicates its level of significance, with closer bands being more relevant for immediate trading decisions.
** How to Use the Indicator :**
**1. Identifying Support and Resistance Levels :**
- Support Levels : The lower bands, closer to the base line, can act as potential support levels. When the price approaches these bands from above, they may indicate areas where the price could stabilize or reverse direction.
- Resistance Levels : The upper bands, further from the base line, serve as resistance levels. When the price nears these bands from below, they can act as barriers to price movement, potentially leading to reversals or stalls.
**2. Confirming Trends :**
- Uptrend Confirmation : When the price consistently remains above the base line and moves towards higher bands, it signals a strong bullish trend. This confirmation helps traders capitalize on upward price movements.
- Downtrend Confirmation : When the price stays below the base line and approaches lower bands, it indicates a bearish trend. This confirmation assists traders in acting on downward price movements.
3. Analyzing Volatility :
- Wide Bands : Wider spacing between bands reflects higher market volatility. This indicates a more turbulent trading environment, where price movements are less predictable. Traders may need to adjust their strategies to handle increased volatility.
- Narrow Bands : Narrower bands suggest lower volatility and a more stable market environment. This can result in more predictable price movements and clearer trading signals.
**4. Entry and Exit Points :**
- Entry Points : Consider buying when the price bounces off the base line or a band, which could signal support in an uptrend.
- Exit Points : Evaluate selling or taking profits when the price nears upper bands or shows signs of reversal at these levels. This approach helps in locking in gains or minimizing losses during a downtrend.
**Chart Example:**
Here you can see how the price reacted getting closer to this level. All green circles show a bounce-off. So just from looking at the chart we can see a potential bounce again pretty soon.
** Disclosure :**
- ** Performance Claims :** The `Uptrick: Logarithmic Crypto Bands` indicator is designed to assist traders in analyzing price levels and trends. It is important to understand that this tool provides historical data analysis and does not guarantee future performance. The features and benefits described are based on historical market behavior and should not be seen as a prediction of future results. Traders should use this indicator as part of a broader trading strategy and consider other factors before making trading decisions.
Trend Analysis
Multi Adaptive Moving Average (MAMA)The Multi Adaptive Moving Average (MAMA) indicator is an advanced tool for technical analysis, designed to provide traders with a detailed understanding of market trends and potential future price movements. This indicator utilizes multiple Simple Moving Averages (SMAs) and forecasting techniques to enhance decision-making processes.
Simple Moving Averages (SMAs):
Short MA (20-period): This moving average is highly responsive to price changes, making it ideal for capturing short-term trends. It helps traders identify quick market shifts and potential entry or exit points.
Mid MA (50-period): This average strikes a balance between short- and long-term trends, offering insights into the market's intermediate direction. It aids in confirming the sustainability of short-term trends.
Long MA (100-period): By smoothing out price data over a longer period, this moving average is useful for identifying long-term trends and filtering out short-term volatility.
Very Long MA (200-period): Often considered a critical indicator for determining the overall market trend, this average helps confirm the direction and strength of long-term movements.
Forecasting:
Flat Forecast: This approach assumes that prices will remain constant in the near future, which is particularly useful in markets trading sideways without a clear trend direction.
Linear Regression Forecast: This method uses historical data to project future price movements, offering a dynamic forecast based on existing trends. It helps traders anticipate potential price changes and plan their strategies accordingly.
Advantages:
Comprehensive Trend Analysis: By incorporating four different SMAs, the indicator provides a layered view of market trends across various timeframes. This enables traders to identify potential trend reversals and continuations with greater accuracy.
Predictive Insights: The forecasting feature offers traders a forward-looking perspective, enabling them to anticipate market movements and adjust their trading strategies proactively. This can be especially advantageous in volatile markets.
Customization: The MAMA indicator is highly customizable, allowing traders to adjust parameters such as the source of price data and the inclusion of the current unclosed candle. This flexibility ensures that the indicator can be tailored to fit different trading styles and market conditions.
Visual Clarity: The use of distinct colors for each SMA and their forecasts enhances visual interpretation, making it easier for traders to quickly assess market conditions and make informed decisions. The inclusion of a legend further aids in distinguishing between the different moving averages and their respective forecasts.
How to Use:
Trend Confirmation: Use the alignment of the SMAs to confirm market trends. For example, when the Short MA crosses above the Mid and Long MAs, it may indicate a bullish trend, while the opposite could suggest a bearish trend.
Entry and Exit Points: Look for crossovers between the SMAs as potential signals for entering or exiting trades. The forecasts can help in timing these decisions by providing an expectation of future price movements.
Risk Management: Utilize the Very Long MA to set stop-loss and take-profit levels, as it reflects the long-term trend and can help in avoiding trades against the prevailing market direction.
The MAMA indicator is intended to support technical analysis and should not be used as the sole basis for making trading decisions. Financial markets are inherently uncertain, and past performance does not guarantee future results. Traders should use this tool in conjunction with other analytical methods and consider their risk tolerance and investment objectives. It is advisable to conduct thorough research and consult with a financial advisor before making significant trading decisions. Always be aware of the risks involved in trading and invest only what you can afford to lose.
Ultra High/LowThe Ultra High/Low script helps traders track key price levels by automatically marking significant highs and lows on a chart, highlighting potential reversal points for future trading decisions.
Introduction
The Ultra High/Low script identifies and marks significant highs and lows on a trading chart. These are specific points where the price reached a peak or bottomed out before reversing. The script draws lines at these levels, which can be extended, and it also labels the exact price at these points. This makes it easy for traders to see where the price has changed direction previously, helping them make more informed trading decisions.
Detailed Description
In more detail, the Ultra High/Low script is designed using Pine Script™, a programming language used for creating custom indicators and strategies on the TradingView platform. Here's how it works:
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Detection of Pivot Highs and Lows
The script identifies "pivot highs" and "pivot lows." These are points on the chart where the price reached a local maximum or minimum, surrounded by lower highs (for pivot highs) or higher lows (for pivot lows).
The user can customize how many bars to the left and right of the high or low the script should consider to confirm a pivot (Length argument in the settings).
The script uses Pine Script functions for pivot detection. ta.pivothigh() and ta.pivotlow() .
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Drawing Lines and Labels
Once a pivot is identified, the script draws a dashed line from the pivot point to the current price bar. This line helps visualize where significant price reversals have occurred.
The script also adds a label next to these lines showing the exact price of the pivot point. This label also shows "PDH" (Previous Day High) or "PDL" (Previous Day Low) if the pivot is PDH or PDL. Same for "PWH" (Previous Week High) and "PWL" (Previous Week Low).
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Purging and Extending Lines
If the price crosses a pivot line after it has been drawn, the script can either delete the old line (purged line) or keep it and add additional indicators to show that the line has been liquidated.
The script also has options to extend the lines into the right.
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Custom Inputs
The script offers several customizable options, like the color of the lines and labels, whether to show the exact price or not, and whether to extend the lines. This allows traders to tailor the indicator to their specific needs and preferences.
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Overall, the Ultra High/Low script is a powerful visual aid for identifying critical price levels that may influence future price movements, making it easier for traders to make decisions based on historical price behavior.
Uptrick: Price Exaggerator
## Uptrick: Price Exaggerator
** Purpose and Overview **:
The "Uptrick: Price Exaggerator" is an innovative Pine Script™ indicator that provides traders with a unique way to visualize potential price extremes. Unlike traditional indicators that focus on historical price data or statistical patterns, this script applies dynamic multipliers to the asset’s closing price to project exaggerated price levels. This approach offers fresh insights into potential market extremes and can be particularly useful for identifying possible overbought or oversold conditions.
** Functionality **:
- ** Dynamic Price Exaggeration **: This script applies a range of multipliers to the closing price to generate several projected price levels. These levels are plotted as lines on the chart, helping traders visualize potential future price extremes beyond typical market ranges.
- ** Highly Customizable **: Users can adjust multipliers, select different source prices (like open, high, low), and choose colors to match their trading strategies and preferences.
- ** Real-Time Updates **: The plotted levels update in real-time, reflecting the latest market conditions and providing an ongoing perspective on potential price extremes.
** Detailed Inputs and Configuration **:
1. ** Multiplier Settings **:
- ** Purpose **: Adjusts the degree of price exaggeration to visualize potential extreme price levels.
- ** Inputs **:
- **Multiplier 1**: Default 0.9 (90% of the source price)
- **Multiplier 2**: Default 0.8 (80% of the source price)
- **Multiplier 3**: Default 1.1 (110% of the source price)
- **Multiplier 4**: Default 1.2 (120% of the source price)
- **Multiplier 5**: Default 1.5 (150% of the source price)
- ** Impact **: Higher multipliers show more distant potential levels, indicating possible resistance or support at extreme levels. Lower multipliers highlight nearer levels, suggesting smaller potential movements.
2. ** Source Price Selection **:
- ** Purpose **: Determines the base data for calculating exaggerated price levels.
- **Inputs**:
- **Source 1**: Default is closing price (can be customized)
- **Source 2**: Default is closing price
- **Source 3**: Default is closing price
- **Source 4**: Default is closing price
- **Source 5**: Default is closing price
- ** Customization **: Users can select various sources (e.g., open, high, low) for each multiplier, tailoring the tool to their analytical needs.
3. ** Color Customization **:
- ** Purpose **: Enhances visual clarity by distinguishing between different exaggerated levels.
- **Inputs**:
- **Color 1**: Default red
- **Color 2**: Default blue
- **Color 3**: Default green
- **Color 4**: Default orange
- **Color 5**: Default purple
- ** Customization **: Colors can be adjusted to fit user preferences and chart color schemes.
4. ** Plotting the Lines **:
- ** Purpose **: Provides a visual representation of potential future price extremes on the chart.
- ** Implementation **: Lines are plotted based on the selected multipliers and source prices, offering a clear view of potential price scenarios.
** Using the Script for Market Analysis **:
1. ** Identifying Overbought Conditions **:
- ** Method **: Observe exaggerated price levels above the current market price. Approaching or exceeding higher multiplier levels may indicate overbought conditions.
- ** Analysis **: These levels can act as potential resistance zones where price reversals or consolidations might occur.
2. ** Spotting Oversold Conditions **:
- ** Method **: Observe exaggerated price levels below the current market price. If the price approaches or falls below lower multiplier levels, it may suggest oversold conditions.
- ** Analysis **: These levels might serve as support zones where price bounces or stabilization could happen.
3. ** Detecting Smaller Movements **:
- **Detailed Examination**: Lower multiplier levels can highlight minor support and resistance levels, useful for traders focusing on smaller price fluctuations.
- ** Fine-Tuning **: Adjust multipliers to zoom in on specific price ranges and better detect small market movements.
** How to Use the Script **:
1. ** Add the Script to Your Chart **:
- Scroll to the bottom of this description and right where there is the source code, click ' Add to Favourites ' - Now you can go to a chart, go to your ' favorites ', and you will find it there.
2. ** Configure Inputs **:
- Click the gear icon next to the script in the indicators panel to open settings.
- Adjust multipliers, source prices, and colors according to your analysis needs.
3. ** Interpret the Levels **:
- Analyze the plotted levels to assess potential overbought or oversold conditions and identify possible price extremes.
- Combine insights with other indicators and patterns for more informed trading decisions.
** Conceptual Framework **:
The "Uptrick: Price Exaggerator" offers a novel approach to market analysis by exaggerating price levels through dynamic multipliers. This unique method extends beyond conventional indicators, providing traders with a different perspective on potential price movements and market extremes. By customizing inputs and visualizing potential price scenarios, this script enhances market analysis and supports diverse trading strategies.
** Originality and Uniqueness **:
This script stands out by applying dynamic multipliers to the source price, offering a fresh way to anticipate potential market extremes. Unlike standard indicators, which often rely on historical data or statistical methods, the "Uptrick: Price Exaggerator" provides a distinctive view of future price levels. Its customizable features and real-time updates offer traders a flexible tool that can adapt to various market conditions and personal trading styles.
Unleash Bitcoin's Next Move with S&P Divergence!BTC_GO_LONG_SONG
This script works like a special helper that watches two things: Bitcoin (a popular type of digital money) and the S&P 500 (which is like a big basket of important companies' stocks).
Imagine Bitcoin and the S&P 500 are connected by an invisible elastic band.
When they move together: The elastic band stays relaxed.
When they move apart: The elastic band stretches.
This script keeps an eye on how much the elastic band stretches.
If Bitcoin starts to move in a different way than the S&P 500 and the band stretches a lot, the script thinks that Bitcoin might snap back or make a big jump soon.
Here’s how it works:
Volume Check: The script looks at how many people are buying or selling Bitcoin. If a lot more people are trading than usual, it’s like a signal that something big might happen.
Price Movement: It watches how Bitcoin’s price is changing. If Bitcoin breaks away from its usual pattern and moves far from where it was recently, it could be a sign that a big change is coming.
Elastic Band Check: The script checks if Bitcoin is moving differently than the S&P 500. If Bitcoin is doing its own thing while the S&P 500 moves in another direction, it’s like the elastic band is being stretched.
When all these things happen together—high trading volume, unusual price movement, and a stretched elastic band—the script shows a green triangle on the chart.
This triangle is a signal for people who believe Bitcoin might go up (the Bulls) that it could be a good time to think about entering a trade because a breakout might be coming.
This explanation uses the idea of an elastic band to describe the relationship between Bitcoin and the S&P 500, making it easier to understand how this script helps traders spot potential breakout opportunities.
ICT Unicorn | Flux Charts💎 GENERAL OVERVIEW
Introducing our new ICT Unicorn Indicator! This indicator is built around the ICT's "Unicorn" strategy. The strategy uses Breaker Blocks and Fair Value Gaps for entry confirmation. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new ICT Unicorn Indicator :
Implementation of ICT's Unicorn Strategy
Toggleable Retracement Entry Method
3 Different TP / SL Methods
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The ICT Unicorn entry model merges the concepts of Breaker Blocks and Fair Value Gaps (FVGs), offering a distinct method for identifying trade opportunities. By integrating these two elements, we can have a position entry with stop-loss and take-profit targets on the potential support & resistance zones. This model is particularly reliable for trade entry, as it combines two powerful entry techniques.
An ICT Unicorn Model consists of a FVG which is overlapping with a Breaker Block of the same type. Here is an example :
When a FVG overlaps with a Breaker Block of the same type, the indicator gives a Buy or Sell signal depending on the FVG type (Bullish & Bearish). If the "Require Retracement" option is enabled in the settings, the signals are not given immediately. Instead, the current price of the ticker will need to touch the FVG once more before the signals are given.
After the Buy or Sell signal, the indicator immediately draws the take-profit (TP) and stop-loss (SL) targets. The indicator has three different TP & SL modes, explained in the "Settings" section of this write-up.
You can set up alerts for entry and TP & SL signals, and also check the current performance of the indicator and adjust the settings accordingly to the current ticker using the backtesting dashboard.
🚩 UNIQUENESS
This indicator is an all-in-one suit for the ICT's Unicorn concept. It's capable of plotting the strategy, giving signals, a backtesting dashboard and alerts feature. Different and customizable algorithm modes will help the trader fine-tune the indicator for the asset they are currently trading. Three different TP / SL modes are available to suit your needs. The backtesting dashboard allows you to see how your settings perform in the current ticker. You can also set up alerts to get informed when the strategy is executable for different tickers.
⚙️ SETTINGS
1. General Configuration
FVG Detection Sensitivity -> You may select between Low, Normal, High or Extreme FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
Swing Length -> Swing length is used when finding order block formations. Smaller values will result in finding smaller order & breaker blocks.
Require Retracement ->
a) Disabled : The entry signal is given immediately once a FVG overlaps with a Breaker Block of the same type.
b) Enabled : The current price of the ticker will need to touch the FVG once more before the entry signal is given.
2. TP / SL
TP / SL Method ->
a) Unicorn : This is the default option. The SL will be set to the lowest low of the last 100 bars with an extra offset in a Buy signal. For Sell signals, the SL will be set to the highest high of the last 100 bars with an extra offset. The TP is then set to a value using the SL value and maintaining a risk-reward ratio.
b) Dynamic: The TP / SL zones will be auto-determined by the algorithm based on the Average True Range (ATR) of the current ticker.
c) Fixed : You can adjust the exact TP / SL ratios from the settings below.
Dynamic Risk -> The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
Intramarket Difference Index StrategyHi Traders !!
The IDI Strategy:
In layman’s terms this strategy compares two indicators across markets and exploits their differences.
note: it is best the two markets are correlated as then we know we are trading a short to long term deviation from both markets' general trend with the assumption both markets will trend again sometime in the future thereby exhausting our trading opportunity.
📍 Import Notes:
This Strategy calculates trade position size independently (i.e. risk per trade is controlled in the user inputs tab), this means that the ‘Order size’ input in the ‘Properties’ tab will have no effect on the strategy. Why ? because this allows us to define custom position size algorithms which we can use to improve our risk management and equity growth over time. Here we have the option to have fixed quantity or fixed percentage of equity ATR (Average True Range) based stops in addition to the turtle trading position size algorithm.
‘Pyramiding’ does not work for this strategy’, similar to the order size input togeling this input will have no effect on the strategy as the strategy explicitly defines the maximum order size to be 1.
This strategy is not perfect, and as of writing of this post I have not traded this algo.
Always take your time to backtests and debug the strategy.
🔷 The IDI Strategy:
By default this strategy pulls data from your current TV chart and then compares it to the base market, be default BINANCE:BTCUSD . The strategy pulls SMA and RSI data from either market (we call this the difference data), standardizes the data (solving the different unit problem across markets) such that it is comparable and then differentiates the data, calling the result of this transformation and difference the Intramarket Difference (ID). The formula for the the ID is
ID = market1_diff_data - market2_diff_data (1)
Where
market(i)_diff_data = diff_data / ATR(j)_market(i)^0.5,
where i = {1, 2} and j = the natural numbers excluding 0
Formula (1) interpretation is the following
When ID > 0: this means the current market outperforms the base market
When ID = 0: Markets are at long run equilibrium
When ID < 0: this means the current market underperforms the base market
To form the strategy we define one of two strategy type’s which are Trend and Mean Revesion respectively.
🔸 Trend Case:
Given the ‘‘Strategy Type’’ is equal to TREND we define a threshold for which if the ID crosses over we go long and if the ID crosses under the negative of the threshold we go short.
The motivating idea is that the ID is an indicator of the two symbols being out of sync, and given we know volatility clustering, momentum and mean reversion of anomalies to be a stylised fact of financial data we can construct a trading premise. Let's first talk more about this premise.
For some markets (cryptocurrency markets - synthetic symbols in TV) the stylised fact of momentum is true, this means that higher momentum is followed by higher momentum, and given we know momentum to be a vector quantity (with magnitude and direction) this momentum can be both positive and negative i.e. when the ID crosses above some threshold we make an assumption it will continue in that direction for some time before executing back to its long run equilibrium of 0 which is a reasonable assumption to make if the market are correlated. For example for the BTCUSD - ETHUSD pair, if the ID > +threshold (inputs for MA and RSI based ID thresholds are found under the ‘‘INTRAMARKET DIFFERENCE INDEX’’ group’), ETHUSD outperforms BTCUSD, we assume the momentum to continue so we go long ETHUSD.
In the standard case we would exit the market when the IDI returns to its long run equilibrium of 0 (for the positive case the ID may return to 0 because ETH’s difference data may have decreased or BTC’s difference data may have increased). However in this strategy we will not define this as our exit condition, why ?
This is because we want to ‘‘let our winners run’’, to achieve this we define a trailing Donchian Channel stop loss (along with a fixed ATR based stop as our volatility proxy). If we were too use the 0 exit the strategy may print a buy signal (ID > +threshold in the simple case, market regimes may be used), return to 0 and then print another buy signal, and this process can loop may times, this high trade frequency means we fail capture the entire market move lowering our profit, furthermore on lower time frames this high trade frequencies mean we pay more transaction costs (due to price slippage, commission and big-ask spread) which means less profit.
By capturing the sum of many momentum moves we are essentially following the trend hence the trend following strategy type.
Here we also print the IDI (with default strategy settings with the MA difference type), we can see that by letting our winners run we may catch many valid momentum moves, that results in a larger final pnl that if we would otherwise exit based on the equilibrium condition(Valid trades are denoted by solid green and red arrows respectively and all other valid trades which occur within the original signal are light green and red small arrows).
another example...
Note: if you would like to plot the IDI separately copy and paste the following code in a new Pine Script indicator template.
indicator("IDI")
// INTRAMARKET INDEX
var string g_idi = "intramarket diffirence index"
ui_index_1 = input.symbol("BINANCE:BTCUSD", title = "Base market", group = g_idi)
// ui_index_2 = input.symbol("BINANCE:ETHUSD", title = "Quote Market", group = g_idi)
type = input.string("MA", title = "Differrencing Series", options = , group = g_idi)
ui_ma_lkb = input.int(24, title = "lookback of ma and volatility scaling constant", group = g_idi)
ui_rsi_lkb = input.int(14, title = "Lookback of RSI", group = g_idi)
ui_atr_lkb = input.int(300, title = "ATR lookback - Normalising value", group = g_idi)
ui_ma_threshold = input.float(5, title = "Threshold of Upward/Downward Trend (MA)", group = g_idi)
ui_rsi_threshold = input.float(20, title = "Threshold of Upward/Downward Trend (RSI)", group = g_idi)
//>>+----------------------------------------------------------------+}
// CUSTOM FUNCTIONS |
//<<+----------------------------------------------------------------+{
// construct UDT (User defined type) containing the IDI (Intramarket Difference Index) source values
// UDT will hold many variables / functions grouped under the UDT
type functions
float Close // close price
float ma // ma of symbol
float rsi // rsi of the asset
float atr // atr of the asset
// the security data
getUDTdata(symbol, malookback, rsilookback, atrlookback) =>
indexHighTF = barstate.isrealtime ? 1 : 0
= request.security(symbol, timeframe = timeframe.period,
expression = [close , // Instentiate UDT variables
ta.sma(close, malookback) ,
ta.rsi(close, rsilookback) ,
ta.atr(atrlookback) ])
data = functions.new(close_, ma_, rsi_, atr_)
data
// Intramerket Difference Index
idi(type, symbol1, malookback, rsilookback, atrlookback, mathreshold, rsithreshold) =>
threshold = float(na)
index1 = getUDTdata(symbol1, malookback, rsilookback, atrlookback)
index2 = getUDTdata(syminfo.tickerid, malookback, rsilookback, atrlookback)
// declare difference variables for both base and quote symbols, conditional on which difference type is selected
var diffindex1 = 0.0, var diffindex2 = 0.0,
// declare Intramarket Difference Index based on series type, note
// if > 0, index 2 outpreforms index 1, buy index 2 (momentum based) until equalibrium
// if < 0, index 2 underpreforms index 1, sell index 1 (momentum based) until equalibrium
// for idi to be valid both series must be stationary and normalised so both series hae he same scale
intramarket_difference = 0.0
if type == "MA"
threshold := mathreshold
diffindex1 := (index1.Close - index1.ma) / math.pow(index1.atr*malookback, 0.5)
diffindex2 := (index2.Close - index2.ma) / math.pow(index2.atr*malookback, 0.5)
intramarket_difference := diffindex2 - diffindex1
else if type == "RSI"
threshold := rsilookback
diffindex1 := index1.rsi
diffindex2 := index2.rsi
intramarket_difference := diffindex2 - diffindex1
//>>+----------------------------------------------------------------+}
// STRATEGY FUNCTIONS CALLS |
//<<+----------------------------------------------------------------+{
// plot the intramarket difference
= idi(type,
ui_index_1,
ui_ma_lkb,
ui_rsi_lkb,
ui_atr_lkb,
ui_ma_threshold,
ui_rsi_threshold)
//>>+----------------------------------------------------------------+}
plot(intramarket_difference, color = color.orange)
hline(type == "MA" ? ui_ma_threshold : ui_rsi_threshold, color = color.green)
hline(type == "MA" ? -ui_ma_threshold : -ui_rsi_threshold, color = color.red)
hline(0)
Note it is possible that after printing a buy the strategy then prints many sell signals before returning to a buy, which again has the same implication (less profit. Potentially because we exit early only for price to continue upwards hence missing the larger "trend"). The image below showcases this cenario and again, by allowing our winner to run we may capture more profit (theoretically).
This should be clear...
🔸 Mean Reversion Case:
We stated prior that mean reversion of anomalies is an standerdies fact of financial data, how can we exploit this ?
We exploit this by normalizing the ID by applying the Ehlers fisher transformation. The transformed data is then assumed to be approximately normally distributed. To form the strategy we employ the same logic as for the z score, if the FT normalized ID > 2.5 (< -2.5) we buy (short). Our exit conditions remain unchanged (fixed ATR stop and trailing Donchian Trailing stop)
🔷 Position Sizing:
If ‘‘Fixed Risk From Initial Balance’’ is toggled true this means we risk a fixed percentage of our initial balance, if false we risk a fixed percentage of our equity (current balance).
Note we also employ a volatility adjusted position sizing formula, the turtle training method which is defined as follows.
Turtle position size = (1/ r * ATR * DV) * C
Where,
r = risk factor coefficient (default is 20)
ATR(j) = risk proxy, over j times steps
DV = Dollar Volatility, where DV = (1/Asset Price) * Capital at Risk
🔷 Risk Management:
Correct money management means we can limit risk and increase reward (theoretically). Here we employ
Max loss and gain per day
Max loss per trade
Max number of consecutive losing trades until trade skip
To read more see the tooltips (info circle).
🔷 Take Profit:
By defualt the script uses a Donchain Channel as a trailing stop and take profit, In addition to this the script defines a fixed ATR stop losses (by defualt, this covers cases where the DC range may be to wide making a fixed ATR stop usefull), ATR take profits however are defined but optional.
ATR SL and TP defined for all trades
🔷 Hurst Regime (Regime Filter):
The Hurst Exponent (H) aims to segment the market into three different states, Trending (H > 0.5), Random Geometric Brownian Motion (H = 0.5) and Mean Reverting / Contrarian (H < 0.5). In my interpretation this can be used as a trend filter that eliminates market noise.
We utilize the trending and mean reverting based states, as extra conditions required for valid trades for both strategy types respectively, in the process increasing our trade entry quality.
🔷 Example model Architecture:
Here is an example of one configuration of this strategy, combining all aspects discussed in this post.
Future Updates
- Automation integration (next update)
Price and OI ChangePrice and OI Change
Description:
The "Price and OI Change" indicator provides insights into market dynamics by analyzing the price and open interest (OI) changes over a 7-day period. This indicator is designed for use with both spot and futures markets, including cryptocurrencies.
Key Features:
Price and OI Change Calculation: Computes the 7-day change in price and open interest to help identify market trends and shifts.
Market Conditions Visualization: Differentiates market conditions by changing the background color based on:
Leverage-Driven Market: Blue background indicates increasing prices and OI, suggesting a bullish trend driven by leverage.
Spot-Driven Market: Green background shows increasing prices but decreasing OI, indicating a bullish trend driven by spot market activity.
Leverage Sell-Off: Orange background reveals decreasing prices with increasing OI, signaling a potential liquidation phase.
Deleveraging Sell-Off: Red background reflects decreasing prices and OI, indicating a bearish market with reduced leverage.
Top 3 BTC Futures Average OI: Displays the average open interest for the top 3 BTC futures contracts from major exchanges (Binance, OKX, Bybit). This helps gauge overall market sentiment and liquidity.
Visualization Tools: Includes optional plotting of open interest data and average OI for better visualization of market conditions.
Usage:
Traders and Analysts: Use the background color changes and average OI to make informed decisions about market entry and exit points.
Futures Traders: Track OI changes in major BTC futures to assess market strength and potential liquidity issues.
Combined EMA, SMMA, and 60-Day Cycle Indicator V2What This Script Does:
This script is designed to help traders visualize market trends and generate trading signals based on a combination of moving averages and price action. Here's a breakdown of its components and functionality:
Moving Averages:
EMAs (Exponential Moving Averages): These are indicators that smooth out price data to help identify trends. The script uses several EMAs:
200 EMA: A long-term trend indicator.
400 EMA: An even longer-term trend indicator.
55 EMA: A medium-term trend indicator.
89 EMA: Another medium-term trend indicator.
SMMA (Smoothed Moving Average): Similar to EMAs but with different smoothing. The script calculates:
21 SMMA: Short-term smoothed average.
9 SMMA: Very short-term smoothed average.
Cycle High and Low:
60-Day Cycle: The script looks back over the past 60 days to find the highest price (cycle high) and the lowest price (cycle low). These are plotted as horizontal lines on the chart.
Color-Coded Clouds:
Clouds: The script fills the area between certain EMAs with color-coded clouds to visually indicate trend conditions:
200 EMA vs. 400 EMA Cloud: Green when the 200 EMA is above the 400 EMA (bullish trend) and red when it’s below (bearish trend).
21 SMMA vs. 9 SMMA Cloud: Orange when the 21 SMMA is above the 9 SMMA and green when it’s below.
55 EMA vs. 89 EMA Cloud: Light green when the 55 EMA is above the 89 EMA and red when it’s below.
Trading Signals:
Buy Signal: This is shown when:
The price crosses above the 60-day low and
The EMAs indicate a bullish trend (e.g., the 200 EMA is above the 400 EMA and the 55 EMA is above the 89 EMA).
Sell Signal: This is shown when:
The price crosses below the 60-day high and
The EMAs indicate a bearish trend (e.g., the 200 EMA is below the 400 EMA and the 55 EMA is below the 89 EMA).
How It Helps Traders:
Trend Visualization: The colored clouds and EMA lines help you quickly see whether the market is in a bullish or bearish phase.
Trading Signals: The script provides clear visual signals (buy and sell labels) based on specific market conditions, helping you make more informed trading decisions.
In summary, this script combines several tools to help identify market trends and provide buy and sell signals based on price action relative to a 60-day high/low and the positioning of moving averages. It’s a useful tool for traders looking to visualize trends and automate some aspects of their trading strategy.
Viking Fun PredictОсобая благодарность за оригинальную идею Александру Горчакову
Индикатор предсказывает вырастет или упадет цена на следующей свече
Индикатор отображает красные или зеленые кружки над каждой из свечей
Зеленый кружок прогноз роста
Красный кружок прогноз падения
Индикатор выдает прогноз для шестой свечи на основе пяти свечей
Индикатор берет цены максимумов и минимумов пяти свечей и усредняет их, получая 5 значений. На основе полученных 5 значений строится линейная регрессия
Если линия линейной регрессии возрастает, то индикатор прогнозирует рост (зеленый кружок)
Если линия линейной регрессии возрастает, то индикатор прогнозирует падение (красный кружок)
Компания Викинг предоставляет профессиональный сервис, позволяющий реализовать арбитражные стратегии и маркет-мейкинг, осуществляет обучение трейдеров-арбитражеров.
---------------------------
Special thanks for the original idea to Alexander Gorchakov
The indicator predicts whether the price will rise or fall on the next candle
The indicator displays red or green circles above each of the candles
Green circle growth forecast
Red circle forecast of the fall
The indicator gives a forecast for the sixth candle based on five candles
The indicator takes the prices of the highs and lows of five candles and averages them, getting 5 values. Based on the obtained 5 values, a linear regression is constructed
If the linear regression line increases, the indicator predicts growth (green circle)
If the linear regression line increases, the indicator predicts a fall (red circle)
Viking provides a professional service that allows you to implement arbitrage strategies and market making, and provides training for arbitrage traders.
Unicorn ICT Signals [TradingFinder] Breaker Block + FVG Zones🔵 Introduction
The "ICT Unicorn Model" trading strategy in the "Inner Circle Trader" (ICT) style is one of the well-known strategies in the world of Forex and financial market trading.
The ICT methodology was developed by Michael Huddleston and is based on technical analysis and Price Action concepts.
This style focuses specifically on interpreting price movements and identifying optimal entry and exit points in the market.
In the Unicorn strategy, traders seek points where the probability of price reversal or trend continuation is high. This strategy is primarily based on recognizing and analyzing Price Action patterns and market structure.
By understanding"ICT Unicorn Model", traders can make more informed decisions about where to enter or exit trades, thereby increasing their chances of success in the market.
🟣 Understanding the Breaker Block
A Breaker Block is a specialized form of an Order Block that changes its role after a key market level is broken. Typically, an Order Block is an area on the chart where large institutional orders are likely to be placed, providing strong support or resistance.
However, when this area is breached, and the price moves in the opposite direction, it transforms into what is known as a Breaker Block. This shift indicates a reversal in market sentiment, turning the previous support into resistance or vice versa, thereby signaling a potential trend change to traders.
🟣 The Significance of the Fair Value Gap (FVG)
The Fair Value Gap (FVG) refers to an area on a price chart where the price rapidly moves through a level, leaving behind a gap. This gap represents an imbalance between supply and demand and is often seen as a potential area for price to return and fill the gap.
These zones are crucial for traders as they can indicate future price movements, providing opportunities to enter or exit trades.
🟣 Defining the ICT Unicorn Model
When an FVG overlaps with a Breaker Block, it forms a highly significant trading area known as a Unicorn. This overlap creates an ideal zone for traders to enter the market, as it combines two powerful technical signals.
The Unicorn Model is therefore considered an optimal strategy for identifying precise entry and exit points in the financial markets.
Demand ICT Unicorn Model :
Supply ICT Unicorn Model :
🔵 How to Use
🟣 Bullish ICT Unicorn
The Bullish ICT Unicorn model is applicable when the market is in an uptrend, and traders are seeking buying opportunities.
Follow these steps to identify Bullish ICT Unicorn :
Identify the Bullish Breaker Block : Locate an area where the price moved upward after breaking an Order Block. This area now acts as a Breaker Block.
Identify the Bullish FVG : Look for a Fair Value Gap near the Breaker Block.
Confirm the Unicorn : When the Bullish Breaker Block and Bullish FVG overlap, a Bullish Unicorn is confirmed. Traders can enter a buy position when the price returns to this zone.
🟣Bearish ICT Unicorn
The Bearish ICT Unicorn model is used when the market is in a downtrend, and traders are looking for selling opportunities.
To identify Bearish ICT Unicorn, follow these steps :
Identify the Bearish Breaker Block : Find an area where the price moved downward after breaking an Order Block. This area now acts as a Breaker Block.
Identify the Bearish FVG : Check if a Fair Value Gap has formed near the Breaker Block.
Confirm the Unicorn : When the Bearish Breaker Block and Bearish FVG overlap, a Bearish Unicorn is confirmed. Traders can enter a sell position when the price returns to this zone.
🔵 Setting
🟣 Global Setting
Pivot Period of Order Blocks Detector : Enter the desired pivot period to identify the Order Block.
Order Block Validity Period (Bar) : You can specify the maximum time the Order Block remains valid based on the number of candles from the origin.
Mitigation Level Breaker Block : Determining the basic level of a Breaker Block. When the price hits the basic level, the Breaker Block due to mitigation.
Mitigation Level FVG : Determining the basic level of a FVG. When the price hits the basic level, the FVG due to mitigation.
Mitigation Level Unicorn : Determining the basic level of a Unicorn Block. When the price hits the basic level, the Unicorn Block due to mitigation.
🟣 Unicorn Block Display
Show All Unicorn Block : If it is turned off, only the last Order Block will be displayed.
Demand Unicorn Block : Show or not show and specify color.
Supply Unicorn Block : Show or not show and specify color.
🟣 Breaker Block Display
Show All Breaker Block : If it is turned off, only the last Breaker Block will be displayed.
Demand Main Breaker Block : Show or not show and specify color.
Demand Sub (Propulsion & BoS Origin) Breaker Block : Show or not show and specify color.
Supply Main Breaker Block : Show or not show and specify color.
Supply Sub (Propulsion & BoS Origin) Breaker Block : Show or not show and specify color.
🟣 Fair Value Gap Display
Show Bullish FVG : Toggles the display of demand-related boxes.
Show Bearish FVG : Toggles the display of supply-related boxes.
🟣 Logic Settings
🟣 Order Block Refinement
Refine Order Blocks : Enable or disable the refinement feature. Mode selection.
🟣 FVG Filter
FVG Filter : This refines the number of identified FVG areas based on a specified algorithm to focus on higher quality signals and reduce noise.
Types of FVG filters :
Very Aggressive Filter: Adds a condition where, for an upward FVG, the last candle's highest price must exceed the middle candle's highest price, and for a downward FVG, the last candle's lowest price must be lower than the middle candle's lowest price. This minimally filters out FVGs.
Aggressive Filter: Builds on the Very Aggressive mode by ensuring the middle candle is not too small, filtering out more FVGs.
Defensive Filter: Adds criteria regarding the size and structure of the middle candle, requiring it to have a substantial body and specific polarity conditions, filtering out a significant number of FVGs.
Very Defensive Filter: Further refines filtering by ensuring the first and third candles are not small-bodied doji candles, retaining only the highest quality signals.
🟣 Alert
Alert Name : The name of the alert you receive.
Alert ICT Unicorn Model Block Mitigation :
On / Off
Message Frequency :
This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone :
The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵Conclusion
The Unicorn Model in ICT, utilizing the concepts of Breaker Blocks and Fair Value Gaps, provides an effective tool for identifying entry and exit points in financial markets. By offering more precise signals, this model helps traders make better decisions and minimize trading risks.
Success in applying this model requires practice and a deep understanding of market structure, but it can significantly improve trading performance.
DEMA Adaptive DMI [BackQuant]DEMA Adaptive DMI
PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner.
Conceptual Foundation and Innovation
The DEMA Adaptive DMI blends the Double Exponential Moving Average (DEMA) with the Directional Movement Index (DMI) to offer a unique approach to trend-following. By applying DEMA to the high and low prices, this indicator refines the traditional DMI calculation, enhancing its responsiveness to price changes. This results in a more adaptive and timely measure of market trends and momentum, providing traders with a more refined tool for capturing directional movements in the market.
Technical Composition and Calculation
At its core, the DEMA Adaptive DMI calculates the DEMA for both the high and low prices over a user-defined period. This dual application of DEMA serves to smooth out price fluctuations while retaining sensitivity to market movements. The DMI is then derived from the changes in these DEMA values, producing a set of plus and minus directional indicators that reflect the prevailing trend. Additionally, an Average Directional Index (ADX) is computed to measure the strength of the trend, with the entire process being dynamically adjusted based on the DEMA calculations.
DEMA Application:
The DEMA is applied to both high and low prices to reduce lag and provide a smoother representation of price action.
Directional Movement Calculation: The DMI is calculated using the smoothed price changes, resulting in plus and minus indicators that accurately reflect market trends.
ADX Calculation:
The ADX is computed to quantify the strength of the trend, offering traders insight into whether the market is trending strongly or is in a phase of consolidation.
Features and User Inputs The DEMA Adaptive DMI offers a range of customizable options to suit different trading styles and market conditions:
DEMA Calculation Period: Users can set the period for the DEMA calculation, allowing for adjustments based on the desired sensitivity.
DMI Length: The length of the DMI calculation can be adjusted, providing flexibility in how trends are measured.
ADX Smoothing Period: The smoothing period for the ADX can be customized to fine-tune the trend strength measurement.
Divergence Detection: Optional divergence detection features allow traders to spot potential reversals based on the DMI and price action.
Visualization options include static high and low levels to mark extreme DMI thresholds, the ability to color bars according to trend direction, and background hues to highlight overbought and oversold conditions.
Practical Applications
The DEMA Adaptive DMI is particularly effective in markets where trend strength and direction are crucial for successful trading. Traders can leverage this indicator to:
Identify Trend Reversals:
Detect potential trend reversals by monitoring the DMI and ADX in conjunction with divergence signals.
Trend Confirmation:
Use the DEMA-based DMI to confirm the strength and direction of a trend, aiding in the timing of entries and exits.
Strategic Positioning:
The indicator's responsiveness allows traders to position themselves effectively in fast-moving markets, reducing the risk of late entries or exits.
Advantages and Strategic Value
By integrating the DEMA with the DMI, this indicator provides a more adaptive and timely measure of market trends. The reduced lag from the DEMA ensures that traders receive signals that are closely aligned with current market conditions, while the dynamic DMI calculation offers a more accurate representation of trend direction and strength. This makes the DEMA Adaptive DMI a valuable tool for traders looking to enhance their trend-following strategies with a focus on precision and adaptability.
Summary and Usage Tips
The DEMA Adaptive DMI is a sophisticated trend-following indicator that combines the benefits of DEMA and DMI into a single, powerful tool. Traders are encouraged to incorporate this indicator into their trading systems for a more nuanced and responsive approach to trend detection and confirmation. Whether used for identifying trend reversals, confirming trend strength, or strategically positioning in the market, the DEMA Adaptive DMI offers a versatile and reliable solution for trend-following strategies.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Curved Price Channels (Zeiierman)█ Overview
The Curved Price Channels (Zeiierman) is designed to plot dynamic channels around price movements, much like the traditional Donchian Channels, but with a key difference: the channels are curved instead of straight. This curvature allows the channels to adapt more fluidly to price action, providing a smoother representation of the highest high and lowest low levels.
Just like Donchian Channels, the Curved Price Channels help identify potential breakout points and areas of trend reversal. However, the curvature offers a more refined approach to visualizing price boundaries, making it potentially more effective in capturing price trends and reversals in markets that exhibit significant volatility or price swings.
The included trend strength calculation further enhances the indicator by offering insight into the strength of the current trend.
█ How It Works
The Curved Price Channels are calculated based on the asset's average true range (ATR), scaled by the chosen length and multiplier settings. This adaptive size allows the channels to expand and contract based on recent market volatility. The central trendline is calculated as the average of the upper and lower curved bands, providing a smoothed representation of the overall price trend.
Key Calculations:
Adaptive Size: The ATR is used to dynamically adjust the width of the channels, making them responsive to changes in market volatility.
Upper and Lower Bands: The upper band is calculated by taking the maximum close value and adjusting it downward by a factor proportional to the ATR and the multiplier. Similarly, the lower band is calculated by adjusting the minimum close value upward.
Trendline: The trendline is the average of the upper and lower bands, representing the central tendency of the price action.
Trend Strength
The Trend Strength feature in the Curved Price Channels is a powerful feature designed to help traders gauge the strength of the current trend. It calculates the strength of a trend by analyzing the relationship between the price's position within the curved channels and the overall range of the channels themselves.
Range Calculation:
The indicator first determines the distance between the upper and lower curved channels, known as the range. This range represents the overall volatility of the price within the given period.
Range = Upper Band - Lower Band
Relative Position:
The next step involves calculating the relative position of the closing price within this range. This value indicates where the current price sits in relation to the overall range.
RelativePosition = (Close - Trendline) / Range
Normalization:
To assess the trend strength over time, the current range is normalized against the maximum and minimum ranges observed over a specified look-back period.
NormalizedRange = (Range - Min Range) / (Max Range - Min Range)
Trend Strength Calculation:
The final Trend Strength is calculated by multiplying the relative position by the normalized range and then scaling it to a percentage.
TrendStrength = Relative Position * Normalized Range * 100
This approach ensures that the Trend Strength not only reflects the direction of the trend but also its intensity, providing a more comprehensive view of market conditions.
█ Comparison with Donchian Channels
Curved Price Channels offer several advantages over Donchian Channels, particularly in their ability to adapt to changing market conditions.
⚪ Adaptability vs. Fixed Structure
Donchian Channels: Use a fixed period to plot straight lines based on the highest high and lowest low. This can be limiting because the channels do not adjust to volatility; they remain the same width regardless of how much or how little the price is moving.
Curved Price Channels: Adapt dynamically to market conditions using the Average True Range (ATR) as a measure of volatility. The channels expand and contract based on recent price movements, providing a more accurate reflection of the market's current state. This adaptability allows traders to capture both large trends and smaller fluctuations more effectively.
⚪ Sensitivity to Market Movements
Donchian Channels: Are less sensitive to recent price action because they rely on a fixed look-back period. This can result in late signals during fast-moving markets, as the channels may not adjust quickly enough to capture new trends.
Curved Price Channels: Respond more quickly to changes in market volatility, making them more sensitive to recent price action. The multiplier setting further allows traders to adjust the channel's sensitivity, making it possible to capture smaller price movements during periods of low volatility or filter out noise during high volatility.
⚪ Enhanced Trend Strength Analysis
Donchian Channels: Do not provide direct insight into the strength of a trend. Traders must rely on additional indicators or their judgment to gauge whether a trend is strong or weak.
Curved Price Channels: Includes a built-in trend strength calculation that takes into account the distance between the upper and lower channels relative to the trendline. A broader range between the channels typically indicates a stronger trend, while a narrower range suggests a weaker trend. This feature helps traders not only identify the direction of the trend but also assess its potential longevity and strength.
⚪ Dynamic Support and Resistance
Donchian Channels: Offer static support and resistance levels that may not accurately reflect changing market dynamics. These levels can quickly become outdated in volatile markets.
Curved Price Channels: Offer dynamic support and resistance levels that adjust in real-time, providing more relevant and actionable trading signals. As the channels curve to reflect price movements, they can help identify areas where the price is likely to encounter support or resistance, making them more useful in volatile or trending markets.
█ How to Use
Traders can use the Curved Price Channels in similar ways to Donchian Channels but with the added benefits of the adaptive, curved structure:
Breakout Identification:
Just like Donchian Channels, when the price breaks above the upper curved band, it may signal the start of a bullish trend, while a break below the lower curved band could indicate a bearish trend. The curved nature of the channels helps in capturing these breakouts more precisely by adjusting to recent volatility.
Volatility:
The width of the price channels in the Curved Price Channels indicator serves as a clear indicator of current market volatility. A wider channel indicates that the market is experiencing higher volatility, as prices are fluctuating more dramatically within the period. Conversely, a narrower channel suggests that the market is in a lower volatility state, with price movements being more subdued.
Typically, higher volatility is observed during negative trends, where market uncertainty or fear drives larger price swings. In contrast, lower volatility is often associated with positive trends, where prices tend to move more steadily and predictably. The adaptive nature of the Curved Price Channels reflects these volatility conditions in real time, allowing traders to assess the market environment quickly and adjust their strategies accordingly.
Support and Resistance:
The trend line act as dynamic support and resistance levels. Due to it's adaptive nature, this level is more reflective of the current market environment than the fixed level of Donchian Channels.
Trend Direction and Strength:
The trend direction and strength are highlighted by the trendline and the directional candle within the Curved Price Channels indicator. If the price is above the trendline, it indicates a positive trend, while a price below the trendline signals a negative trend. This directional bias is visually represented by the color of the directional candle, making it easy for traders to quickly identify the current market trend.
In addition to the trendline, the indicator also displays Max and Min values. These represent the highest and lowest trend strength values within the lookback period, providing a reference point for understanding the current trend strength relative to historical levels.
Max Value: Indicates the highest recorded trend strength during the lookback period. If the Max value is greater than the Min value, it suggests that the market has generally experienced more positive (bullish) conditions during this time frame.
Min Value: Represents the lowest recorded trend strength within the same period. If the Min value is greater than the Max value, it indicates that the market has been predominantly negative (bearish) over the lookback period.
By assessing these Max and Min values, traders gain an immediate understanding of the underlying trend. If the current trend strength is close to the Max value, it indicates a strong bullish trend. Conversely, if the trend strength is near the Min value, it suggests a strong bearish trend.
█ Settings
Trend Length: Defines the number of bars used to calculate the core trendline and adaptive size. A length of 200 will create a smooth, long-term trendline that reacts slowly to price changes, while a length of 20 will create a more responsive trendline that tracks short-term movements.
Multiplier: Adjusts the width of the curved price channels. A higher value tightens the channels, making them more sensitive to price movements, while a lower value widens the channels. A multiplier of 10 will create tighter channels that are more sensitive to minor price fluctuations, which is useful in low-volatility markets. A multiplier of 2 will create wider channels that capture larger trends and are better suited for high-volatility markets.
Trend Strength Length: Defines the period over which the maximum and minimum ranges are calculated to normalize the trend strength. A length of 200 will smooth out the trend strength readings, providing a stable indication of trend health, whereas a length of 50 will make the readings more reactive to recent price changes.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Market Structure Trailing Stop [BigBeluga]The Market Structure Trailing Stop indicator is an advanced tool for identifying market structure shifts, liquidity sweeps, and potential trend reversals using comprehensive volume analysis. This indicator combines the analysis of market structure pivots (CHoCH - Change of Character) with a sophisticated volume-based trailing stop logic. By evaluating delta volume at key structural points, it allows traders to identify high-probability trend continuations or reversals and manage their trades more effectively.
🔵 KEY FEATURES
● Market Structure Analysis
Pivot-Based Market Structure : The indicator identifies high and lows using user-defined periods, allowing traders to spot key market structure shifts.
Change of Character (CHoCH) : The first significant break of a market structure is marked as a CHoCH, indicating a potential trend reversal.
Break of Structure (BoS) : The indicator highlights subsequent breaks of structure after CHoCH, providing traders with crucial insights into trend strength.
● Advanced Volume Analysis
Delta Volume Evaluation : The indicator calculates delta volume (difference between up and down volume) at each ChoCh or BoS market structure point to assess the strength of the move. Identify Delta Volume from break point back to Pivot
● Trailing Stop Logic
Volume-Validated Trailing Stop : The indicator automatically plots a trailing stop if the delta volume at the UP CHoCH is positive and above the defined threshold and vice versa for Down CHoCH , allowing traders to protect their profits while riding the trend.
Trend Weakness Detection : If a subsequent BoS occurs with negative delta volume or lower volume than the input threshold, the trailing stop disappears, indicating potential trend exhaustion or reversal.
Dynamic Stop Placement : The trailing stop is dynamically adjusted based on market structure and volume, providing traders with a more adaptive stop-loss strategy.
Up Trend Trailing Stop:
Down Trend Trailing Stop:
● Liquidity Sweep Detection
Liquidity Sweep (X) Labels : The indicator identifies liquidity sweeps—points where the price temporarily reverses to sweep liquidity above or below a key level—marked with an “X” label.
Potential Reversal Zones : These liquidity sweeps are potential reversal zones, especially when accompanied by significant delta volume changes, providing traders with early warnings of potential trend reversals.
🔵 HOW TO USE
● Identifying Market Structure Shifts
Change of Character (CHoCH) : When a CHoCH occurs, the indicator calculates the total volume from the high point to the break point. If the delta volume is positive and exceeds the input threshold, a trailing stop is plotted, signaling potential trend continuation.
Break of Structure (BoS) : If BoS is enabled, subsequent breaks of structure are highlighted. If these BoS points show weaker volume or negative delta volume, the trailing stop will disappear, indicating that the trend may be losing strength.
● Using the Trailing Stop Feature
Protecting Profits : Once a CHoCH occurs and the delta volume validates the trend, the trailing stop will be plotted below (or above) the price to protect profits while allowing the trend to run.
Trend Reversal Signals : If the trailing stop disappears due to weak volume at subsequent BoS points, it may signal that the trend is losing momentum, and traders may consider closing their positions or tightening their stops manually.
● Liquidity Sweep Interpretation
Spotting Reversal Zones : Liquidity sweeps, marked with an “X” label, indicate zones where the price has swept liquidity. These areas can serve as potential reversal zones, especially when significant delta volume is observed at these points.
Early Reversal Warnings : Traders can use these liquidity sweep labels as early warnings for potential trend reversals, particularly in conjunction with other technical analysis methods.
🔵 CUSTOMIZATION
Highs and Lows Calculation : Customize the number of bars to the left and right for identifying pivots and market structure shifts.
Volume Threshold : Define the volume threshold to filter out weaker moves and focus on significant market structure shifts.
BoS and Liquidity Sweep Labels : Toggle on or off the BoS and Liquidity Sweep labels to tailor the indicator to your trading style.
Trend Color : Enable or disable trend coloring for candles to visually highlight uptrends and downtrends on the chart.
🔵 CONCLUSION
The Market Structure Trailing Stop indicator combines advanced volume analysis with market structure detection to provide traders with a powerful tool for identifying and managing trends. By leveraging delta volume at key structure points, it helps traders validate trend strength and manage their positions with a dynamic trailing stop strategy. The addition of liquidity sweep detection further enhances its utility, offering early warnings of potential trend reversals. This indicator is ideal for traders who want to gain a deeper understanding of market structure while incorporating volume-based insights into their trading strategies.
VRS (Vegas Reversal Strategy)It is based on the reversal of the price after an accentuated volatility of the previous day. It is tested only on BTC, TF Day, and has an activation value equal to a spike of minimum 2.4% amplitude, a value that I have left in the settings free to be modified if it is found valid for other assets.
In the settings you can change how many of the latest longs or shorts I want to view in the past, colors and various aesthetics.
When the system detects a spike at the end of the day from 2.4% onwards it will signal the direction of Reversal, generating the 3 TP, dotted lines.
Entry into the market must be done at the close of the candle day, unfortunately at night time if you want to enter on the tick.
Stop above/below the spike that generated the condition.
If the Day2 candle closes FULL inside the spike, immediate and early closing of the operation.
There cannot be two consecutive Day events: if you are Long or Short and have taken a stop on the next candle, even if the latter generates another entry, this must not be activated.
TP 1 and 2 are both mandatory at 33% of the position, TP3, based on the current movement, can be considered to be left to run to the bitter end or in any case to structuring confirmations of a slowdown in the price.
Upon reaching TP1 it is mandatory to move the STOP to even.
In the event of the presence of extremely strong directional movements, for example Long direction, an opposite activation, Short, must be done but with reduced capital, on the contrary an activation in the same direction as the trend movement can be done with a surcharge. Always pay attention to Money Management and Risk Management.
Always manage Risk and Money Management in an adequate, technical and sustainable manner in relation to your capital. A fair exposure per transaction is between 1% and 2% of the capital.
VS (Vegas Fractal System)VS is a trading system based on the identification of fractal reaction zones within a larger, carefully identified movement. It is internally made up of 4 sub-systems.
The indicator is composed of the following parameters: Max and Min, are the largest area identified and will act as the STOPLOSS point. L1, is the price reaction level. Entry, is where to place a pending market entry order. TP, is the place to place a 100% sell order.
A valid area must be identified through the Fibonacci levels that join Highs and Lows or vice versa depending on the bullish or bearish movement. To be usable, this movement must not have a sub-movement that has already hit the 0.618 level.
Always manage Risk and Money Management in an adequate, technical and sustainable manner in relation to your capital. A fair exposure per transaction is between 1% and 2% of the capital.
Magic Linear Regression Channel [MW]Introduction
The Magic Linear Regression Channel indicator provides users with a way to quickly include a linear regression channel ANYWHERE on their chart, in order to find channel breakouts and bounces within any time period. It uses a novel method that allows users to adjust the start and end period of the regression channel in order to quickly make adjustments faster, with fewer steps, and with more precision than with any other linear regression channel tool. It includes Fibonacci bands AND a horizontal mode in order for users to quickly define significant price levels based on the high, low, open, and close prices defined by the start period.
Settings
Start Time: This is initially MANUALLY SELECTED ON THE CHART when the indicator is first loaded.
End time: This is also initially MANUALLY SELECTED ON THE CHART when the indicator is first loaded.
Horizontal Line: This forces the baseline to be horizontal. The band distance is defined by the maximum price distance from the band.
Horizontal Line Type: This snaps the horizontal line to the close, high, low, or open price. Or, it can also use a regression calculation for the selected time period to define the y-position of the line.
Extend Line N Bars: How many bars to the left in which to extend the baseline and bands.
Show Baseline ONLY!!: Removes all lines except the baseline and it’s extension.
Add Half Band: Includes a band that is half the distance between the baseline and the top and bottom bands
Add Outer Fibonacci Band: Includes a band that is 1.618 (phi) times the default band distance
Add Inner Fibonacci Band - Upper: Includes a band that is 0.618 (1/phi) times the default band distance
Add Inner Fibonacci Band - Lower: Includes a band that is 0.382 (1 - 1/phi) times the default band distance
Calculations
This indicator uses the least squares approach for generating a straight regression line, which can be reviewed at Wikipedia’s “Simple Linear Regression” page. It sums all of the x-values, and y-values, as well as the sum of the product of corresponding x and y values, and the sum of the squares of the x-values. These values are used to calculate the slope and intercept using the following equations:
slope = (n * sum_xy - sum_x * sum_y) / (n * sum_xx - sum_x * sum_x)
And
intercept = (sum_y - slope * sum_x) / n
The slope and intercept are then used to generate the baseline and the corresponding bands using the user-selected offsets.
How to Use
When the Magic Linear Regression Channel indicator is first added to the chart, there will be a blue prompt behind the “Indicators, Metrics & Strategies” window. Close the window, then select a START POINT by clicking at a desired location on the chart. Next, you will be prompted to select an END POINT. The end point MUST be placed after the START POINT. At this time a channel will be generated. Once you’ve selected the START POINT and END POINT, you can adjust them by dragging them anywhere on the chart. Each adjustment will generate a new channel making it easier for you to quickly visualize and recognize any channel exits and bounces.
The Magic Linear Regression Channel indicator works great at identifying wave patterns. Place the start line at a top or bottom pivot point. Place the end line at the next respective top or bottom pivot. This will give you a complete wave form to work with. When price reaches a band and rejects, it can be a strong indication that price may move back to one of the bands in the channel. If price exits the channel with volume that supports the exit, it may be an indication of a breakout.
You can also use the horizontal mode to identify key levels, then add Fibonacci bands based on regression calculations for the given time period to provide more meaningful areas of support and resistance.
Other Usage Notes and Limitations
Occasionally, off-by-1 errors appear which makes the extended lines protrude at a slightly incorrect angle. This is a known bug and will be addressed in the next release.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
Saral Relative StrengthRelative Strength Indicator
### Overview
The Relative Strength (RS) Indicator is a robust tool designed to measure the performance of a security relative to a benchmark or another security. Unlike traditional indicators, this RS Indicator calculates the outperformance or underperformance in percentage terms, providing a clear and concise comparison.
The equation for calculation can be found in the code itself. This equation compares how much a security's price has changed over a given period (len) relative to the change in price of a benchmark over the same period. The result is expressed as a percentage, showing whether the security has outperformed or underperformed the benchmark. A positive RS value indicates outperformance, while a negative value signals underperformance.
Basically, this indicator is an enhanced version of 'Relative Strength' indicator of 'BharatTrader' Sir with added features like automatic divergence plotting, color-coded filled area and sector names for NSE F&O securities. Default values for some of the parameters are based on discussion by Subhadip Nandy Sir in Trader's Talk with Mr. Rohit Katwal.
### Input Parameters:
Source: The price of a security used in the calculation, with the default being the 'close' price.
Comparative Symbol: Ticker ID of the comparative security, with the default set to NIFTY 50.
Period-RS: The period for calculating the RS line, with a default of 22. The RS line measures the relative performance of the security against the benchmark, helping to identify outperformance or underperformance over time.
Period-MA: The period for calculating the Simple Moving Average (SMA) overlay on the RS line, with a default of 11. The SMA provides a smoothed view of the RS line, helping to identify trends more clearly.
Lookback - Zero Line Trend: Zero Line Trend look-back period, used to determine the angle of the RS line, with a default of 5. This parameter influences the color of the Zero Line based on whether the RS line’s angle is positive or negative.
Lookback - Divergence: Divergence look-back period, with a default of 2, used to detect divergence between the price and the RS line.
Display MA Line: Controls the display of the SMA line. When enabled, the SMA line is plotted over the RS line to indicate trend strength.
Toggle RS Color on MA Crossovers: Controls the color of the RS line. If disabled, the RS line is purple. If enabled, the RS line changes color based on its position relative to the SMA: green for RS > MA, red for RS < MA.
Display Zero Line Trend: Controls the display of the Zero Line. If disabled, the Zero Line is black. If enabled, the Zero Line’s color changes to green or maroon based on the RS line’s angle over time.
Display Divergence: Controls the display of divergence dots on the RS line, indicating potential reversal points.
Display Filled Area: Controls whether the area between the Zero Line and the RS line is filled with color. The fill color changes based on the relationship of the RS line with the SMA & Zero Line as given below.
- Dark Green: RS > 0 and RS > MA, indicating strong outperformance.
- Light Green: RS > 0 and RS < MA, indicating weakening outperformance.
- Dark Red: RS < 0 and RS < MA, indicating strong underperformance.
- Light Red: RS < 0 and RS > MA, indicating weakening underperformance.
Display Sector Name: Controls the display of sector names for NSE F&O securities, helping to plot RS with sectoral indices.
### Key Features:
RS Line:
The RS line represents the relative performance of a security against a benchmark over a specified period (default 22). It helps traders identify whether the security is outperforming or underperforming the benchmark.
SMA Overlay:
A Simple Moving Average (SMA) line is plotted over the RS line, with a default period of 11. The SMA provides a smoothed trend of the RS, making it easier to identify consistent performance trends.
Trend-Sensitive Zero Line:
The Zero Line’s color adapts based on the RS line’s trend:
- Green: Positive angle of the RS line, indicating upward momentum.
- Maroon: Negative angle, indicating downward momentum.
The color can be toggled, with an option to display the Zero Line in black.
Divergence Detection:
Automatically detects and highlights divergences.
- Positive Divergence: RS line rises while the price falls, marked by blue dots.
- Negative Divergence: RS line falls while the price rises, marked by black dots.
Color-Coded Fill Area:
The area between the RS line and the Zero Line is filled with color to visually distinguish different market conditions, with Dark and Light colors providing insight into the strength of the performance:
- Dark Green: Indicates strong outperformance (RS > 0 and RS > MA), suggesting the security is showing significant strength compared to the benchmark.
- Light Green: Indicates weakening outperformance (RS > 0 and RS < MA), signaling that while the security is still outperforming, its strength is diminishing.
- Dark Red: Indicates strong underperformance (RS < 0 and RS < MA), showing the security is significantly weaker than the benchmark.
- Light Red: Indicates weakening underperformance (RS < 0 and RS > MA), suggesting the security is still underperforming but may be regaining some strength.
Sectoral Strength:
Displays sector names for NSE F&O securities, helping users to compare the RS of individual securities with their respective sectoral indices. Comparative Security can be changed easily based on this sector name. Users need not to remember sector names for individual securities.
If any security is not categorized in a specific sector, CNX500 has been considered as a default sector for NSE F&O securities. For other securities, NIFTY50 has been considered as a default sector.
Displacement [QuantVue]Displacement refers to a significant and forceful price movement that indicates a potential shift in market sentiment or trend. Displacement is characterized by a strong push in price action, often seen after a period of consolidation or within a trending market. It is a key concept used to identify the strength of a move and to confirm the direction of the market.
The "Displacement" indicator does this by focusing on identifying strong, directional price movements by combining candlestick analysis with volatility (ATR).
Displacement often appears as a group of candles that are all positioned in the same direction, these candles typically have large bodies and short wicks.
How the indicator works:
Body Size Requirement: Ensures that only candles with a significant body size (relative to their total range) are considered, helping to identify strong market moves.
Consecutive Candle Analysis: Identifies shifts in market sentiment by requiring a series of consecutive bullish or bearish candles to confirm a potential change in trend.
ATR-Based Analysis: Uses the Average True Range (ATR) to gauge market volatility and filter out minor price fluctuations, focusing on substantial movements.
Once all of the requirements are met a triangle is plotted above or below the bar.
Xtrender and TSI FusionXtrender and TSI Fusion Indicator
I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share all of the indicator I have created because I believe in learning and earing together as a community. If you guys have any questions or suggestions write them.
Overview: The Xtrender and TSI Fusion Indicator is a powerful tool designed to help traders analyze market momentum, trends, and potential reversals. By combining Xtrender with the True Strength Index (TSI), this indicator provides a comprehensive view of market dynamics, making it easier to identify trading opportunities.
Image: Timeframe is set to daily
Features:
1.Xtrender Analysis:
Short-Term Xtrender: Visualizes short-term momentum using RSI-based calculations on EMA differences. This helps in identifying immediate market trends and pullbacks.
Image above: showcases Short-Term Xtrender
Xtrender T3: A smoothed version of the Xtrender that reduces noise and highlights significant trend changes.
Image above: showcases Xtrender T3 with Xtrender T3 color
2.TSI (True Strength Index):
TSI Value: Measures momentum by comparing price changes over two time periods, offering a clear view of trend strength.
TSI Signal Line: A smoothed version of the TSI value, used to generate buy and sell signals when crossed by the TSI.
Image: showcases TSI Value with TSI Signal Line
TSI Histogram: Shows the difference between the TSI and its signal line, highlighting potential reversals and trend continuations.
Image: showcases TSI Histogram
3.Color Coding and Visual Cues:
Trend Colors: The indicator uses dynamic colors to represent bullish or bearish conditions, making it easy to interpret market sentiment.
Background Color : The background changes color based on TSI signals, further aiding in visual trend analysis.
Image: showcases Background color and Zero line
How to Use
1.Xtrender Analysis:
Short-Term Xtrender: The short-term Xtrender is plotted as columns, changing color based on its direction and value. Green or lime indicates positive momentum, while red or maroon indicates negative momentum.
Xtrender T3: The Xtrender T3 line (black) represents a smoothed version of the short-term Xtrender, providing a clearer picture of the overall trend. The color of this line changes based on the Xtrender's value, helping you spot potential trend changes.
2.TSI (True Strength Index):
TSI Value and Signal Line: The TSI value is plotted as a line, with its color changing based on its relationship to the signal line. A crossover of the TSI above the signal line suggests a potential bullish move, while a crossover below indicates a bearish trend.
TSI Histogram: The histogram represents the difference between the TSI and its signal line. Positive values indicate bullish momentum, while negative values suggest bearish momentum.
3.Background Color:
The background color changes based on the TSI signal, with a greenish hue indicating bullish conditions and a reddish hue indicating bearish conditions. This provides a quick visual reference for market sentiment.
4.Zero Line:
A horizontal gray dotted line at the zero level helps you easily identify when the Xtrender or TSI crosses into positive or negative territory, signaling potential trend shifts.
Image above: Timeframe on daily with the individual elements combined
Example of Use:
•Trend Confirmation: Use the Xtrender and Xtrender T3 to confirm the direction of the trend. If both are aligned with the same color and direction, it increases the probability of a strong trend.
•Momentum Reversals: Watch for TSI crosses and histogram shifts to identify potential reversals. For example, a TSI crossover above its signal line with a corresponding change in the histogram from negative to positive could signal a buying opportunity.
•Pullbacks: Identify pullbacks within a trend by observing temporary shifts in the short-term Xtrender or TSI histogram. Use these signals to enter trades in the direction of the overall trend.
Image above: Showcases, Trend confirmation, reversal and pullbacks on daily timeframe.
Customization:
•TSI Speed: Choose between "Fast" and "Slow" TSI settings based on your trading style. Fast settings are more responsive to price changes, while slow settings offer smoother signals.
•Color Settings: Customize the colors for bullish, bearish, and neutral TSI conditions to match your personal preferences or chart theme.
This indicator is versatile and can be used for various trading strategies, from trend following to momentum trading, making it a valuable tool in any trader's arsenal.
My Scripts/Indicators/Ideas /Systems that I share are only for educational purposes
Fibonacci Levels for Recent CandlesThis Pine Script indicator calculates and plots 17 predefined Fibonacci retracement levels based on the high and low of a user-defined number of previous candles. The levels are drawn on the chart for the most recent candles, as specified by the user, allowing traders to see how these historical Fibonacci levels align with the current price action.
BX-Volume Trend and OscillatorBX-Volume Trend and Oscillator (VTO)
This is my second indicator. I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share this because I believe in learning and earing together as a community. I will later share the rest of the indicators I have created. If you guys have any questions or suggestions write them.
The BX-Volume Trend and Oscillator (VTO) is a comprehensive trading indicator designed to help traders identify trends, momentum shifts, and potential reversals by analyzing volume and price action through various metrics. This indicator combines relative volume analysis with custom Xtrender oscillators and moving averages to provide valuable insights into market behavior.
Image: BX-Volume Trend and Oscillator (VTO)
Features:
Relative Volume Analysis: Measures the current volume relative to the average volume over a specified period, helping traders understand if the current trading activity is unusually high or low.
Short-Term Xtrender Oscillator: This oscillator analyzes the difference between two short-term Exponential Moving Averages (EMAs) and smooths it with a custom RSI, highlighting short-term trends and potential reversal points.
Long-Term Xtrender Oscillator: Similar to the short-term oscillator but uses longer-term EMAs and RSI for identifying more sustained trends and shifts.
T3 Moving Average: A smoothed version of the Xtrender oscillator that helps in detecting trend changes more clearly.
Volume Trend Plot: Shows the smoothed relative volume to understand how trading activity aligns with the trend.
Visual Indicators: Uses colors and shapes to highlight significant changes and trends, such as circles to mark potential reversal points.
How to Use the Indicator
Analyze Relative Volume:
Relative Volume Plot: The smoothed relative volume is displayed in white, helping you assess if current trading volumes are above or below the historical average.
High Relative Volume: Indicates strong trading interest, which could support or contradict the prevailing trend.
Image above: is set to daily timeframe
Monitor Short-Term Xtrender Oscillator
Short-Term Xtrender: Plotted as a column histogram with colors changing from green to red based on the oscillator's movement and momentum. Green and lime colors indicate bullish trends, while maroon and red suggest bearish conditions.
Smoothed Short-Term Xtrender (T3): Plotted as a line that adjusts color based on the short-term Xtrender's trend. The line changes color to match the histogram's color, providing a clearer view of momentum shifts.
Reversal Markers: Small circles indicate potential short-term trend reversals, where changes in the T3 moving average suggest shifts in momentum.
Assess Long-Term Xtrender Oscillator:
Long-Term Xtrender: Plotted as a histogram, with color changes similar to the short-term Xtrender. It shows longer-term trends and shifts.
Color Indicators: Lime and green colors suggest an uptrend, while red and maroon indicate a downtrend.
Look for Zero Line Crossings:
The zero line serves as a reference point. Crossings above the zero line may indicate bullish trends, while crossings below may signal bearish trends.
Image above: is set to daily timeframe, and it showcases the Short-Term Xtrender (T3) applied.
Image above: is set to 8hr timeframe: Using the lower timeframe you can spot better details of pullbacks and potential reversals.
Example of Use:
Identify Trend and Momentum: Use the combination of the short-term and long-term Xtrender oscillators to gauge the prevailing market trend. For instance, if both oscillators are above zero and showing upward momentum, it suggests a strong bullish trend.
Spot Reversals: Observe the short-term Xtrender and its smoothed T3 version. If the T3 line changes direction and crosses through previous peaks and troughs, it could signal a potential reversal.
Volume Confirmation: Check the relative volume and its smoothed version to confirm the strength of price movements. Significant changes in volume can validate the trends indicated by the Xtrender oscillators.
By combining these elements, the BX-Volume Trend and Oscillator (VTO) provides a holistic view of market dynamics, helping traders make more informed decisions based on trend strength, potential reversals, and volume activity.
Lastly, my Scripts/Indicators/Ideas /Systems that I share are only for educational purposes!
Key Times & Opening Prices [Olitrades]This indicator plots key time's (opening prices) with the possibility of vertical separators. It was initially created to utilize on the indices futures market, utilizing ICT logic.
These opening prices are often utilized to determine if price is currently at a premium or a discounted value.
The default times include:
Daily Open (18:00 PM)
Midnight (00:00 AM)
Settlement (15:00 PM)
7:30 AM
8:30 AM
9:30 AM (Equities Open)
10:00 AM (Morning 4h Candle Open)
14:00 PM (Afternoon 4h Candle Open)
Along with up to three custom time slots.
All times used in the indicator are Eastern Standard time (New York local time) and will automatically adjust no matter your time zone.
Historical
When in historical mode, the indicator will keep the previous levels so you can easily visualize them and their relation to price.
You can also choose how many past levels you want to see. This allows you to back test only specific days/weeks.
Other Inputs
The indicator contains an adjustable offset, to modify how far the line extends depending on the current timeframe.
Each one of the above-mentioned levels can be turned on and off, including the custom times. You can also choose between plotting just the opening price, a vertical line separator, or both! All of these lines have adjustable styles (dotted, dashed or solid) and width.
They also have custom cut offs. You may choose specific cut off times for custom time slots (when to stop extending the lines), as well as for AM (before noon) default levels and PM (after noon) default levels.
The indicator also allows to show text labels next to these lines, which is set by default but can be turned off. Custom times also include custom text options.
