Stablecoin Delta [SAKANE]Overview
Stablecoin Delta is an indicator designed to provide a detailed analysis of the market trends of major stablecoins (USDT and USDC). Stablecoins play a crucial role in supporting the liquidity of the cryptocurrency market, and fluctuations in their supply significantly impact the prices of Bitcoin and other cryptocurrencies.
This indicator leverages data from CryptoCap to visualize the daily changes in the market capitalization of stablecoins. Traders can use this tool to understand the effects of stablecoin supply fluctuations on the market in a timely manner, enabling more strategic investment decisions.
The key benefits include the ability to quickly monitor stablecoin supply changes, utilize this data as a supplementary tool for predicting Bitcoin price movements, and identify both short-term market movements and long-term trends. This indicator is valuable for traders of all levels, from beginners to seasoned professionals.
Features
- Support for USDT and USDC Market Cap
Monitor the market trends of these two major stablecoins using data from CryptoCap. Users can also choose to analyze only one of them.
- Daily Net Change Calculation
Calculates the daily change in market capitalization compared to the previous day, providing a clear view of trends.
- Flexible Smoothing Options
Apply either SMA or EMA smoothing for both the histogram and the line chart, based on user preference.
- Customizable Colors
Customize the colors for the histogram (positive/negative) and line chart for better visualization.
Visualization
- Histogram
Displays daily net changes as a histogram, with positive changes (green) and negative changes (red) clearly differentiated.
- Smoothed Line Chart
Provides a smoothed line chart to make trend identification easier.
Use Cases
- In-depth Analysis of the Cryptocurrency Market
The supply of stablecoins is a critical factor influencing the price of Bitcoin and other cryptocurrencies. This indicator helps traders understand overall market liquidity, enabling more effective investment decisions.
- Short-Term and Long-Term Strategy Development
Trends derived from stablecoin supply fluctuations are essential for traders to gauge short-term price movements and long-term market flows.
- Real-Time Market Adjustment
In times of sudden market shifts, this tool enables traders to quickly assess changes in stablecoin supply and adjust their positions accordingly.
Future Plans
- Additional stablecoins will be considered for inclusion if their market share grows significantly.
Disclaimer
- This indicator relies on data from CryptoCap. The results are subject to the accuracy and timeliness of the data and should be used as reference information only.
Volume
CVD OscillatorCVD Delta Oscillator
A momentum oscillator that measures buying and selling pressure through volume analysis, based on the principle that volume precedes price (cause and effect).
How It Works
Volume Analysis
Measures the force of buying and selling by analyzing how volume interacts with price movement within each bar
When price closes higher in a bar's range with strong volume, this indicates stronger buying pressure
When price closes lower in a bar's range with strong volume, this indicates stronger selling pressure
Momentum Measurement
Uses two EMAs (fast and slow) to smooth the volume delta
The difference between these EMAs creates an oscillator that shows:
Rising values = Buying pressure increasing
Falling values = Selling pressure increasing
Zero line crossovers = Potential shift in control between buyers and sellers
Signal Generation
Divergences
Bullish: Price falls to new lows while buying pressure increases (potential reversal up)
Bearish: Price rises to new highs while selling pressure increases (potential reversal down)
Zero-Line Crossovers
Bullish: Buying pressure overtakes selling pressure
Bearish: Selling pressure overtakes buying pressure
Practical Application
Reading the Indicator
Green columns above zero = Net buying pressure
Red columns below zero = Net selling pressure
Larger columns = Stronger pressure
Divergences and crossovers = Potential turning points
Trading Context
Helps identify when price movement has strong or weak volume support
Shows potential exhaustion points through divergences
Confirms trend changes through zero-line crossovers
Customization
Adjustable EMA periods for different trading styles
Toggle-able visual signals
Automatic alerts for all signals
Ask-Weighted Averages This indicator provides two price-based reference lines derived from volume dynamics within each bar. Specifically, it calculates a volume-weighted average price using only the portion of trading volume that occurred on the "ask" side, implying more aggressive buying activity. The logic behind this approach is to highlight potential support and resistance levels where buyers have shown greater conviction.
Key Features:
Ask-Weighted Average Prices:
Instead of using the entire trade volume, the lines focus on "ask volume" (volume associated with trades occurring at or near the ask price). This helps to spotlight areas where buyers have been dominant, potentially revealing more meaningful price levels for future market behavior.
Conditional vs. Continuous Lines:
Conditional Line: This line is only plotted if the dollar volume (a rough measure of trade value) exceeds a specified threshold, ensuring that the highlighted level is backed by substantial trading activity.
Continuous Line: A second line is always displayed, providing a running ask-weighted average price reference for additional context, regardless of dollar volume.
Supports Identifying Key Price Zones:
By focusing on where more motivated buyers have been active, the indicator helps traders identify potential inflection points in price, such as areas where the market might find support on pullbacks or resistance during rallies.
Overall, this indicator serves as a specialized tool for traders interested in volume-driven price analysis. It aims to refine the understanding of where buyers are most engaged and how that might shape future price movements.
Risks Associated with Trading:
No indicator can guarantee profitable trades or accurately predict future price movements. Market conditions are inherently unpredictable, and reliance on any single tool or combination of tools carries the risk of financial loss. Traders should practice sound risk management, including the use of stop losses and position sizing, and should not trade with funds they cannot afford to lose. Ultimately, decisions should be guided by a thorough trading plan and possibly supplemented with other forms of market analysis or professional advice.
Risks and Important Considerations:
• Not a Standalone Tool:
• This indicator should not be used in isolation. It is essential to incorporate additional technical analysis tools, fundamental analysis, and market context when making trading decisions.
• Relying solely on this indicator may lead to incomplete assessments of market conditions.
• Market Volatility and False Signals:
• Financial markets can be highly volatile, and indicators based on historical data may not accurately predict future movements.
• The indicator may produce false signals due to sudden market changes, low liquidity, or atypical trading activity.
• Risk Management:
• Always employ robust risk management strategies, including setting stop-loss orders, diversifying your portfolio, and not over-leveraging positions.
• Understand that no indicator guarantees success, and losses are a natural part of trading.
• Emotional Discipline:
• Avoid making impulsive decisions based on indicator signals alone.
• Emotional trading can lead to significant financial losses; maintain discipline and adhere to a well-thought-out trading plan.
• Continuous Learning and Adaptation:
• Stay informed about market news, economic indicators, and global events that may impact trading conditions.
• Continuously evaluate and adjust your trading strategies as market dynamics evolve.
• Consultation with Professionals:
• Consider seeking advice from financial advisors or professional traders to understand better how this indicator can fit into your overall trading strategy.
• Professional guidance can provide personalized insights based on your financial goals and risk tolerance.
Disclaimer:
Trading financial instruments involves substantial risk and may not be suitable for all investors. Past performance is not indicative of future results. This indicator is provided for informational and educational purposes only and should not be considered investment advice. Always conduct your own research and consult with a licensed financial professional before making any trading decisions.
Note: The effectiveness of any technical indicator can vary based on market conditions and individual trading styles. It's crucial to test indicators thoroughly using historical data and possibly paper trading before applying them in live trading scenarios.
BuySell%_ImtiazH_v2BuySell%_ImtiazH
This indicator includes two powerful volume metrics to complement your trading analysis:
30-Day Avg Vol (Blue Line): Tracks the average volume over the past 30 days, providing a baseline for typical trading activity.
Breakout Vol (White Line): Highlights the volume threshold needed for a potential breakout, calculated as a user-defined percentage above the 30-day average volume (default: 40%).
In addition to these enhancements, the indicator breaks down total trading volume into buying and selling components and calculates the percentage of buy volume for each bar.
🟥 Red Bars: Represent total volume.
🟩 Teal Bars: Show the buying volume within each candle.
🟨 Buy %: Displays the percentage of buy volume dynamically in the indicator panel, highlighted in yellow for quick visibility.
Use this tool to easily spot accumulation (buying pressure) or distribution (selling pressure) trends, customize breakout thresholds, and identify key breakout opportunities. Simple, clear, and effective for volume-based analysis!
How Are Buy Volume and Sell Volume Calculated?
This indicator uses a proportional approach to estimate buy and sell volumes based on price action:
Buy Volume: The portion of total volume where the price is moving upward, representing trades executed at the ask price.
Formula:
Buy Volume = (close - low) / (high - low) * volume
Sell Volume: The portion of total volume where the price is moving downward, representing trades executed at the bid price.
Formula:
Sell Volume = (high - close) / (high - low) * volume
If the high and low prices are the same (flat bar), both buy and sell volumes are set to 0.
Why This Matters
This calculation assumes the close price’s position within the high-to-low range reflects the balance of buying and selling activity:
Close near the high: Most volume is buy volume.
Close near the low: Most volume is sell volume.
Close in the middle: Volume is split between buying and selling.
By breaking down volume in this way, the indicator helps traders identify key trends like accumulation (buying pressure) and distribution (selling pressure), making it a powerful tool for volume-based analysis.
Volume Rate of Change (VROC)Volume Rate of Change (VROC) is an indicator that calculates the percentage change in trading volume over a specific period, helping analyze market momentum and activity. It is calculated as:
VROC = ((Current Volume - Past Volume) ÷ Past Volume) × 100
This indicator shows changes in market interest. Positive values indicate increasing volume, while negative values signal a decrease. High VROC values often suggest potential trend reversals or breakouts.
Applications:
Breakout Validation: VROC > 200% confirms strong breakouts; below this may signal false moves.
Market Stagnation: VROC < 0% suggests shrinking volume and range-bound markets.
Trend End Alert: A drop below 0% during trends may indicate weakening momentum.
Adjusting for Timeframes: Tailor VROC to timeframes.
Examples:
Daily: VROC(5) compares with last week's same day; VROC(20) with 1 month ago.
Monthly: VROC(12) compares with the same month last year; VROC(1) with last month.
Intraday: VROC(24) (hourly) and VROC(288) (5 minutes) for the same time yesterday.
Combined VolumeThis indicator displays the combined volume for all the exchanges listed in the settings menu.
For example, with the default settings, on BTCUSD the indicator will display the current market's volume AND the volume of all other major exchanges listed on TradingView.
The gray indicator value is the current exchange's volume, the colored volume is the combined volume of all other exchanges, allowing you to compare the current exchange's volume to the broad market to give you a better idea of local exchange activity versus broad market activity.
If you want to add more exchange tickers, turn "debug" mode on and a small label will appear in the top right telling you which market type & exchange ticker you're currently on. All exchange tickers must be separated by a comma.
The "Other Exchanges" input setting overrides all other lists allowing you to specify your own exchange list for assets not provided by the default settings (the indicator supports crypto, forex and stocks by default).
Volume Distribution Before/After Top
Description
This script visualizes the distribution of volume before and after a price peak within a specified time interval. The green area represents the volume accumulated before the peak, and the red area represents the volume accumulated after the peak. The script also calculates and displays the volume-weighted average price (VWAP) on each side of the peak with a dotted line and a label.
The key features include:
Volume Visualization: Transparent green and red bars indicate volume fractions before and after the peak.
VWAP Markers: Centered labels with VWAP values are plotted above the corresponding levels.
Interactive Inputs: Define the start and end points of the analysis interval using customizable anchor times.
This tool is ideal for traders who want to analyze how volume dynamics are distributed around key price levels. It can help identify potential zones of support and resistance and improve the understanding of market behavior in response to volume accumulation.
Instructions
Select the start and end anchor times using the input fields.
Observe the volume distribution and VWAP levels on the chart.
Use the visual data to make more informed trading decisions.
WVAD (Optimized Log Scaled)The WVAD (Optimized Log Scaled) indicator is a refined version of the classic Williams' Volume Accumulation/Distribution (WVAD). This version introduces logarithmic scaling for better visualization and usability, especially when dealing with large value ranges. It also includes EMA smoothing to highlight trends and reduce noise, providing traders with a more precise and clear representation of market dynamics.
Key Features:
1.Logarithmic Scaling:
Applies a log-based transformation to the WVAD values, ensuring extreme values are compressed while maintaining the overall structure of the data.
The log scaling allows better readability and interpretation, particularly for volatile or high-volume markets.
2.EMA Smoothing:
Uses an exponential moving average (EMA) to smooth the logarithmic WVAD values.
Helps reduce noise while preserving short-term trends, making it suitable for both trend-following and reversal strategies.
3.Customizable Parameters:
N (Lookback Period): Defines the accumulation period for calculating WVAD.
EMA Smoothing Period: Controls the sensitivity of the EMA applied to the logarithmic WVAD.
Decimal Places: Adjusts the precision of the displayed values for clearer visualization.
Line Colors: Fully customizable colors for both the raw WVAD line and the smoothed EMA.
4.Directional Preservation:
Keeps the positive and negative signs of WVAD to reflect accumulation (buying pressure) or distribution (selling pressure) in the market.
5.Zero Line Reference:
A horizontal zero line is plotted to help traders easily identify bullish (above 0) or bearish (below 0) market conditions.
How to Use:
Identify Trends: The smoothed WVAD line (EMA) can help detect trends or shifts in buying/selling pressure.
Crossovers: Use crossovers of the WVAD with the zero line as potential buy or sell signals.
Divergence: Spot divergences between price and the WVAD for early indications of reversals.
Applications:
Suitable for intraday, swing, or longer-term trading strategies.
Works across various asset classes, including stocks, commodities, and cryptocurrencies.
VIDYA Auto-Trading(Reversal Logic)
Purpose and Unique Features
This script leverages the Variable Index Dynamic Average (VIDYA) to implement a dynamic trend-following auto-trading strategy. By adapting to price volatility, it optimizes entry points and strengthens risk management. Key differentiators of this strategy include:
VIDYA Characteristics:
Quickly responds to price momentum changes through dynamic calculations.
Incorporates volatility adjustments for enhanced trend detection accuracy.
ATR Band Utilization:
Measures market volatility to set stop-loss levels and guide risk management.
Supports more calculated trade entries in volatile markets.
Visual Trend Representation:
Displays "green zones" for uptrends and "red zones" for downtrends.
Enables intuitive understanding of trend continuation and reversal.
Usage Instructions
Entry Conditions
Long Entry:
Enter when the price crosses above the upper band.
Close any previous short positions and initiate a new long position.
Short Entry:
Enter when the price crosses below the lower band.
Close any previous long positions and initiate a new short position.
Exit Conditions
Take Profit and Stop Loss:
Reverse Position Strategy or Position Reversal Strategy
Account Size: ¥100,0000
Commissions and Slippage: Assumed commission of 94 pips per trade and slippage of 1 pip.
Risk per Trade: 10% of account equity (adjustable based on risk tolerance).
Script Parameters
VIDYA Length: The period for calculating the trend (e.g., 14).
Momentum Period: The lookback period for calculating the Chande Momentum Oscillator (CMO).
ATR Band Distance: Adjustment coefficient for the band width (e.g., 1.5).
Price Source: Choose from close, open, high, or low prices for VIDYA calculation.
Trend Display Colors: Customize the colors for uptrend and downtrend zones.
Visualization Options: Toggle the display of trend lines, bands, and other elements on or off.
Strategy Features and Enhancements
Dynamic Momentum Adaptation:
Utilizes VIDYA's sensitivity to momentum changes for rapid trend detection.
Volatility-Aware Risk Management:
Employs ATR to dynamically adjust risk levels, ensuring resilience in volatile markets.
Enhanced Visual Indicators:
Clearly plots trend zones and entry points on the chart.
Simplifies analysis with intuitive visual cues.
Credits
This script is inspired by the innovative work of BigBeluga, whose indicators laid the foundation for this enhanced trend-following strategy. By leveraging BigBeluga’s insights, this script integrates VIDYA, ATR Bands, and other technical elements to create a more dynamic and intuitive trading tool.
We extend our gratitude to BigBeluga and the broader trading community for their invaluable contributions, which have enabled this advanced implementation.
Disclaimer:
This script is provided for educational purposes, and past performance does not guarantee future results. Always practice proper risk management in live trading scenarios.
By leveraging VIDYA, this strategy provides a precise and intuitive approach to trend-following. It is particularly effective in capturing market reversals and adapting to sudden price changes in volatile environments.
Total Volume for Custom PeriodIndicator Description: Total Volume for Custom Period
This indicator calculates the total trading volume for a specified time period and displays the result in the top-right corner of the chart. It is designed for traders and analysts who want to see the cumulative volume over a defined range of time without needing to calculate it manually.
Features:
Customizable Time Period:
Define the start and end times of the calculation using the easy-to-use settings panel.
The indicator dynamically updates as you adjust the dates.
Accurate Volume Calculation:
Calculates the total trading volume for all candlesticks between the selected start and end dates.
Works on all assets and timeframes supported by TradingView (stocks, crypto, forex, etc.).
Fixed Display:
The result is displayed in the top-right corner of the chart inside a clear and simple table.
The value remains visible regardless of chart movement or zoom level.
Real-time Updates:
Automatically recalculates the volume when new data is added or the selected time period changes.
Customizable Design:
Black text with a transparent background ensures the display is clear and non-intrusive.
Large text size for easy readability.
Use Cases:
Volume Analysis: Quickly assess the total trading activity over a specific time period.
Historical Data Analysis: Compare volume data across different time intervals.
Custom Strategies: Use the total volume metric as part of a broader trading strategy or analysis.
How It Works:
Open the settings panel of the indicator and input the desired Start Date and End Date.
The indicator calculates the total trading volume for all candles within the selected range.
The result is displayed in the top-right corner of the chart.
This indicator is a simple yet powerful tool for traders who rely on volume analysis to make informed decisions. It enhances your ability to study market behavior during specific periods and provides insights into trading activity with ease.
Trend Stability Index (TSI)Overview
The Trend Stability Index (TSI) is a technical analysis tool designed to evaluate the stability of a market trend by analyzing both price movements and trading volume. By combining these two crucial elements, the TSI provides traders with insights into the strength and reliability of ongoing trends, assisting in making informed trading decisions.
Key Features
• Dual Analysis: Integrates price changes and volume fluctuations to assess trend stability.
• Customizable Periods: Allows users to set evaluation periods for both trend and volume based on their trading preferences.
• Visual Indicators: Displays the Trend Stability Index as a line chart, highlights neutral zones, and uses background colors to indicate trend stability or instability.
Configuration Settings
1. Trend Length (trendLength)
• Description: Determines the number of periods over which the price stability is evaluated.
• Default Value: 15
• Usage: A longer trend length smooths out short-term volatility, providing a clearer picture of the overarching trend.
2. Volume Length (volumeLength)
• Description: Sets the number of periods over which trading volume changes are assessed.
• Default Value: 15
• Usage: Adjusting the volume length helps in capturing significant volume movements that may influence trend strength.
Calculation Methodology
The Trend Stability Index is calculated through a series of steps that analyze both price and volume changes:
1. Price Change Rate (priceChange)
• Calculation: Utilizes the Rate of Change (ROC) function on the closing prices over the specified trendLength.
• Purpose: Measures the percentage change in price over the trend evaluation period, indicating the direction and momentum of the price movement.
2. Volume Change Rate (volumeChange)
• Calculation: Applies the Rate of Change (ROC) function to the trading volume over the specified volumeLength.
• Purpose: Assesses the percentage change in trading volume, providing insight into the conviction behind price movements.
3. Trend Stability (trendStability)
• Calculation: Multiplies priceChange by volumeChange.
• Purpose: Combines price and volume changes to gauge the overall stability of the trend. A higher positive value suggests a strong and stable trend, while negative values may indicate trend weakness or reversal.
4. Trend Stability Index (TSI)
• Calculation: Applies a Simple Moving Average (SMA) to the trendStability over the trendLength period.
• Purpose: Smooths the trend stability data to create a more consistent and interpretable index.
Trend/Ranging Determination
• Stable Trend (isStable)
• Condition: When the TSI value is greater than 0.
• Interpretation: Indicates that the current trend is stable and likely to continue in its direction.
• Unstable Trend / Range-bound Market
• Condition: When the TSI value is less than or equal to 0.
• Interpretation: Suggests that the trend may be weakening, reversing, or that the market is moving sideways without a clear direction.
Visualization
The TSI indicator employs several visual elements to convey information effectively:
1. TSI Line
• Representation: Plotted as a blue line.
• Purpose: Displays the Trend Stability Index values over time, allowing traders to observe trend stability dynamics.
2. Neutral Horizontal Line
• Representation: A gray horizontal line at the 0 level.
• Purpose: Serves as a reference point to distinguish between stable and unstable trends.
3. Background Color
• Stable Trend: Green background with 80% transparency when isStable is true.
• Unstable Trend: Red background with 80% transparency when isStable is false.
• Purpose: Provides an immediate visual cue about the current trend’s stability, enhancing the interpretability of the indicator.
Usage Guidelines
• Identifying Trend Strength: Utilize the TSI to confirm the strength of existing trends. A consistently positive TSI suggests strong trend momentum, while a negative TSI may signal caution or a potential reversal.
• Volume Confirmation: The integration of volume changes helps in validating price movements. Significant price changes accompanied by corresponding volume shifts can reinforce the reliability of the trend.
• Entry and Exit Signals: Traders can use crossovers of the TSI with the neutral line (0 level) as potential entry or exit points. For instance, a crossover from below to above 0 may indicate a bullish trend initiation, while a crossover from above to below 0 could suggest bearish momentum.
• Combining with Other Indicators: To enhance trading strategies, consider using the TSI in conjunction with other technical indicators such as Moving Averages, RSI, or MACD for comprehensive market analysis.
Example Scenario
Imagine analyzing a stock with the following observations using the TSI:
• The TSI has been consistently above 0 for the past 30 periods, accompanied by increasing trading volume. This scenario indicates a strong and stable uptrend, suggesting that buying opportunities may be favorable.
• Conversely, if the TSI drops below 0 while the price remains relatively flat and volume decreases, it may imply that the current trend is losing momentum, and the market could be entering a consolidation phase or preparing for a trend reversal.
Conclusion
The Trend Stability Index is a valuable tool for traders seeking to assess the reliability and strength of market trends by integrating price and volume dynamics. Its customizable settings and clear visual indicators make it adaptable to various trading styles and market conditions. By incorporating the TSI into your trading analysis, you can enhance your ability to identify and act upon stable and profitable trends.
User-Variable Low-Volume CalculatorThe indicator will look at the last 20x, 50x candles (user defined setting) and take the highest volume value in this period.
It will then mark a solid line against the volume, calculated by a user defined variable percentage (default 16%).
If you determine any volume values that are under 16% (for example) of the highest volume candles in any given period, this indicator will paint this 16% level onto a volume chart for you, this is useful to quickly and conveniently see which candles held a volume below this level
True Total Altcoin Market CapThis indicator calculates the real total altcoin market capitalization by removing Bitcoin, Ethereum, and major stablecoins (USDT, USDC, BUSD, DAI) from the total cryptocurrency market cap. It replaces the standard price bars with custom-colored candlesticks showing the true altcoin market movements.
Features:
Excludes BTC, ETH, and major stablecoins for accurate altcoin market analysis
Custom color scheme: Green (#26a79b) for bullish and Red (#ef5351) for bearish candles
Based on CRYPTOCAP:TOTAL data
Helps traders focus on pure altcoin market trends
Non-repainting, using standard OHLC data
This tool provides a clearer view of altcoin market strength by filtering out the influence of major cryptocurrencies and stablecoins.
USDJPY vanilla indicatorThis Pine Script indicator, USDJPY Strength Index, helps traders evaluate the strength and momentum of the USD/JPY currency pair. It combines the strength of the US Dollar Index (DXY), the inverse of the Japanese Yen Index (JPYX), and the trend of USD/JPY based on moving averages.
Key Features:
1. Strength Measurement: Calculates a score between 0–100 to indicate USD/JPY momentum.
• Above 70: Strong bullish signal (uptrend likely).
• Below 30: Strong bearish signal (downtrend likely).
2. Trend Analysis: Uses 21 EMA and 50 EMA differences to assess trend direction and strength.
3. Visual Indicators:
• Blue line: USDJPY Strength Index.
• Orange line: 50-period EMA of the index for longer-term trends.
• Background colors: Green (bullish) and red (bearish) highlight strong momentum zones.
This indicator provides clear signals to help traders make informed buy or sell decisions for the USD/JPY pair.
tipp: use horizontal line for mark last low and high. when the blue line comes back again you must be ready for open position if the line bounce back. use engulfing pattern for extra confirmation.
Ultra Liquidity HeatmapThe Ultra Liquditiy Heatmap is a unique visualization tool designed to map out areas of high liquidity on the chart using a dynamic heatmap, helping traders identify significant price zones effectively.
Introduction
The Ultra Liquidity Heatmap is an advanced indicator for visualizing key liquidity areas on your chart. Whether you're a scalper, swing trader, or long-term investor, understanding liquidity dynamics can offer a powerful edge in market analysis. This tool provides a straightforward visual representation of these zones directly on your chart.
Detailed Description
The Ultra Liquidity Heatmap identifies high and low liquidity zones by dynamically marking price ranges with heatmap-like boxes.
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Dynamic Zone Creation
For low liquidity zones, the script draws boxes extending from the low to the high of the bar. If the price breaks below a previously defined zone, that box is removed.
Similarly, for high liquidity zones, the script tracks and highlights price ranges above the current high, removing boxes if the price exceeds the zone.
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Customizable Visuals
Users can adjust the transparency and color of the heatmap, tailoring the visualization to their preference.
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Real-Time Updates
The indicator constantly updates as new price data comes in, ensuring that the heatmap reflects the most current liquidity zones.
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Efficiency and Scalability
The script uses optimized arrays and a maximum box limit of 500 to ensure smooth performance even on higher timeframes or during high-volatility periods.
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The Ultra Liquidity Heatmap bridges the gap between raw price data and actionable market insight. Add it to your toolbox and elevate your trading strategy today!
Weis Wave Max█ Overview
Weis Wave Max is the result of my weis wave study.
David Weis said,
"Trading with the Weis Wave involves changes in behavior associated with springs, upthrusts, tests of breakouts/breakdowns, and effort vs reward. The most common setup is the low-volume pullback after a bullish/bearish change in behavior."
THE STOCK MARKET UPDATE (February 24, 2013)
I inspired from his sentences and made this script.
Its Main feature is to identify the largest wave in Weis wave and advantageous trading opportunities.
█ Features
This indicator includes several features related to the Weis Wave Method.
They help you analyze which is more bullish or bearish.
Highlight Max Wave Value (single direction)
Highlight Abnormal Max Wave Value (both directions)
Support and Resistance zone
Signals and Setups
█ Usage
Weis wave indicator displays cumulative volume for each wave.
Wave volume is effective when analyzing volume from VSA (Volume Spread Analysis) perspective.
The basic idea of Weis wave is large wave volume hint trend direction. This helps identify proper entry point.
This indicator highlights max wave volume and displays the signal and then proper Risk Reward Ratio entry frame.
I defined Change in Behavior as max wave volume (single direction).
Pullback is next wave that does not exceed the starting point of CiB wave (LH sell entry, HL buy entry).
Change in Behavior Signal ○ appears when pullback is determined.
Change in Behavior Setup (Entry frame) appears when condition of Min/Max Pullback is met and follow through wave breaks end point of CiB wave.
This indicator has many other features and they can also help a user identify potential levels of trade entry and which is more bullish or bearish.
In the screenshot below we can see wave volume zones as support and resistance levels. SOT and large wave volume /delta price (yellow colored wave text frame) hint stopping action.
█ Settings
Explains the main settings.
-- General --
Wave size : Allows the User to select wave size from ① Fixed or ② ATR. ② ATR is Factor x ATR(Length).
Display : Allows the User to select how many wave text and zigzag appear.
-- Wave Type --
Wave type : Allows the User to select from Volume or Volume and Time.
Wave Volume / delta price : Displays Wave Volume / delta price.
Simplified value : Allows the User to select wave text display style from ① Divisor or ② Normalized. Normalized use SMA.
Decimal : Allows the User to select the decimal point in the Wave text.
-- Highlight Abnormal Wave --
Highlight Max Wave value (single direction) : Adds marks to the Wave text to highlight the max wave value.
Lookback : Allows the User to select how many waves search for the max wave value.
Highlight Abnormal Wave value (both directions) : Changes wave text size, color or frame color to highlight the abnormal wave value.
Lookback : Allows the User to select SMA length to decide average wave value.
Large/Small factor : Allows the User to select the threshold large wave value and small wave value. Average wave value is 1.
delta price : Highlights large delta price by large wave text size, small by small text size.
Wave Volume : Highlights large wave volume by yellow colored wave text, small by gray colored.
Wave Volume / delta price : highlights large Wave Volume / delta price by yellow colored wave text frame, small by gray colored.
-- Support and Resistance --
Single side Max Wave Volume / delta price : Draws dashed border box from end point of Max wave volume / delta price level.
Single side Max Wave Volume : Draws solid border box from start point of Max wave volume level.
Bias Wave Volume : Draws solid border box from start point of bias wave volume level.
-- Signals --
Bias (Wave Volume / delta price) : Displays Bias mark when large difference in wave volume / delta price before and after.
Ratio : Decides the threshold of become large difference.
3Decrease : Displays 3D mark when a continuous decrease in wave volume.
Shortening Of the Thrust : Displays SOT mark when a continuous decrease in delta price.
Change in Behavior and Pullback : Displays CiB mark when single side max wave volume and pullback.
-- Setups --
Change in Behavior and Pullback and Breakout : Displays entry frame when change in behavior and pullback and then breakout.
Min / Max Pullback : Decides the threshold of min / max pullback.
If you need more information, please read the indicator's tooltip.
█ Conclusion
Weis Wave is powerful interpretation of volume and its tell us potential trend change and entry point which can't find without weis wave.
It's not the holy grail, but improve your chart reading skills and help you trade rationally (at least from VSA perspective).
Triple CCI Strategy MFI Confirmed [Skyrexio]Overview
Triple CCI Strategy MFI Confirmed leverages 3 different periods Commodity Channel Index (CCI) indicator in conjunction Money Flow Index (MFI) and Exponential Moving Average (EMA) to obtain the high probability setups. Fast period CCI is used for having the high probability to enter in the direction of short term trend, middle and slow period CCI are used for confirmation, if market now likely in the mid and long-term uptrend. MFI is used to confirm trade with the money inflow/outflow with the high probability. EMA is used as an additional trend filter. Moreover, strategy uses exponential moving average (EMA) to trail the price when it reaches the specific level. More information in "Methodology" and "Justification of Methodology" paragraphs. The strategy opens only long trades.
Unique Features
Dynamic stop-loss system: Instead of fixed stop-loss level strategy utilizes average true range (ATR) multiplied by user given number subtracted from the position entry price as a dynamic stop loss level.
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Four layers trade filtering system: Strategy utilizes two different period CCI indicators, MFI and EMA indicators to confirm the signals produced by fast period CCI.
Trailing take profit level: After reaching the trailing profit activation level scrip activate the trailing of long trade using EMA. More information in methodology.
Methodology
The strategy opens long trade when the following price met the conditions:
Fast period CCI shall crossover the zero-line.
Slow and Middle period CCI shall be above zero-lines.
Price shall close above the EMA. Crossover is not obligatory
MFI shall be above 50
When long trade is executed, strategy set the stop-loss level at the price ATR multiplied by user-given value below the entry price. This level is recalculated on every next candle close, adjusting to the current market volatility.
At the same time strategy set up the trailing stop validation level. When the price crosses the level equals entry price plus ATR multiplied by user-given value script starts to trail the price with EMA. If price closes below EMA long trade is closed. When the trailing starts, script prints the label “Trailing Activated”.
Strategy settings
In the inputs window user can setup the following strategy settings:
ATR Stop Loss (by default = 1.75)
ATR Trailing Profit Activation Level (by default = 2.25)
CCI Fast Length (by default = 14, used for calculation short term period CCI)
CCI Middle Length (by default = 25, used for calculation short term period CCI)
CCI Slow Length (by default = 50, used for calculation long term period CCI)
MFI Length (by default = 14, used for calculation MFI
EMA Length (by default = 50, period of EMA, used for trend filtering EMA calculation)
Trailing EMA Length (by default = 20)
User can choose the optimal parameters during backtesting on certain price chart.
Justification of Methodology
Before understanding why this particular combination of indicator has been chosen let's briefly explain what is CCI, MFI and EMA.
The Commodity Channel Index (CCI) is a momentum-based technical indicator that measures the deviation of a security's price from its average price over a specific period. It helps traders identify overbought or oversold conditions and potential trend reversals.
The CCI formula is:
CCI = (Typical Price − SMA) / (0.015 × Mean Deviation)
Typical Price (TP): This is calculated as the average of the high, low, and closing prices for the period.
Simple Moving Average (SMA): This is the average of the Typical Prices over a specific number of periods.
Mean Deviation: This is the average of the absolute differences between the Typical Price and the SMA.
The result is a value that typically fluctuates between +100 and -100, though it is not bounded and can go higher or lower depending on the price movement.
The Money Flow Index (MFI) is a technical indicator that measures the strength of money flowing into and out of a security. It combines price and volume data to assess buying and selling pressure and is often used to identify overbought or oversold conditions. The formula for MFI involves several steps:
1. Calculate the Typical Price (TP):
TP = (high + low + close) / 3
2. Calculate the Raw Money Flow (RMF):
Raw Money Flow = TP × Volume
3. Determine Positive and Negative Money Flow:
If the current TP is greater than the previous TP, it's Positive Money Flow.
If the current TP is less than the previous TP, it's Negative Money Flow.
4. Calculate the Money Flow Ratio (MFR):
Money Flow Ratio = Sum of Positive Money Flow (over n periods) / Sum of Negative Money Flow (over n periods)
5. Calculate the Money Flow Index (MFI):
MFI = 100 − (100 / (1 + Money Flow Ratio))
MFI above 80 can be considered as overbought, below 20 - oversold.
The Exponential Moving Average (EMA) is a type of moving average that places greater weight and significance on the most recent data points. It is widely used in technical analysis to smooth price data and identify trends more quickly than the Simple Moving Average (SMA).
Formula:
1. Calculate the multiplier
Multiplier = 2 / (n + 1) , Where n is the number of periods.
2. EMA Calculation
EMA = (Current Price) × Multiplier + (Previous EMA) × (1 − Multiplier)
This strategy leverages Fast period CCI, which shall break the zero line to the upside to say that probability of short term trend change to the upside increased. This zero line crossover shall be confirmed by the Middle and Slow periods CCI Indicators. At the moment of breakout these two CCIs shall be above 0, indicating that there is a high probability that price is in middle and long term uptrend. This approach increases chances to have a long trade setup in the direction of mid-term and long-term trends when the short-term trend starts to reverse to the upside.
Additionally strategy uses MFI to have a greater probability that fast CCI breakout is confirmed by this indicator. We consider the values of MFI above 50 as a higher probability that trend change from downtrend to the uptrend is real. Script opens long trades only if MFI is above 50. As you already know from the MFI description, it incorporates volume in its calculation, therefore we have another one confirmation factor.
Finally, strategy uses EMA an additional trend filter. It allows to open long trades only if price close above EMA (by default 50 period). It increases the probability of taking long trades only in the direction of the trend.
ATR is used to adjust the strategy risk management to the current market volatility. If volatility is low, we don’t need the large stop loss to understand the there is a high probability that we made a mistake opening the trade. User can setup the settings ATR Stop Loss and ATR Trailing Profit Activation Level to realize his own risk to reward preferences, but the unique feature of a strategy is that after reaching trailing profit activation level strategy is trying to follow the trend until it is likely to be finished instead of using fixed risk management settings. It allows sometimes to be involved in the large movements. It’s also important to make a note, that script uses another one EMA (by default = 20 period) as a trailing profit level.
Backtest Results
Operating window: Date range of backtests is 2022.04.01 - 2024.11.25. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 50%
Maximum Single Position Loss: -4.13%
Maximum Single Profit: +19.66%
Net Profit: +5421.21 USDT (+54.21%)
Total Trades: 108 (44.44% win rate)
Profit Factor: 2.006
Maximum Accumulated Loss: 777.40 USDT (-7.77%)
Average Profit per Trade: 50.20 USDT (+0.85%)
Average Trade Duration: 44 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 2h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Z The Good Stuff +I created this script to have a couple datapoints that I want to look at when going through charts to find trade ideas. Qullamaggie is one of my biggest inspirations and I built in a couple of his concepts with a touch to help me with sizing properly, all explained below:
Box 1: ADR %, Average Daily Range, gives and indication of how volatile the stock is. It uses the 20 day average % move of the current stock on the chart.
Box 2: LOD Distance, low of day distance is a quality of life element I created. It calculates the low for the current candle and color codes it red or green depending on if it's higher or lower than the daily ADR. The logic is that if a stock has an average speed, buying on a setup it is preferred if the stop distance (assuming a low of day stop) should be less than the ADR to improve the odds of more upside.
Box 3: Todays DV, this shows a rough estimate of how much money was traded on the particular day.
Box 4: ADV 20 days, similar to above this shows the 20 day $ traded average. The point to look at it is to have a better idea what position size is possible to not get stuck in something too illiquid.
Box 5: Market cap, just shows the market cap of the stock to know what size the company is.
Box 6: Number of shares, this is an additional quality of life aspect. If using low of day stops, this part calculates based on the users' inputted portfolio size and portfolio risk preference and then calculates how many stocks to buy to stay within the risk parameters. It is obviously not a sole decision making parameter nor does it guarantee any execution, but if a stock is showing an entry you want to take you can use the number of shares to help you know how many to buy. The preset is a portfolio of 10000 and a risk of 0.25%. This means that the number of shares to buy will be at the current price with lod stop that would result in a 0.25% portfolio loss. OF COURSE the actual loss depends on the execution and if the user places a stop loss order.
Hope you find it useful and feel free to give feedback! Cheers!
Ultimate Volatility RateUltimate Volatility Rate
This indicator measures the volatility of price movements.
Support and Resistance Identification:
High volatility periods indicate larger price movements, which can be useful in assessing the potential for support and resistance levels to be broken.
Stop Loss (SL) and Take Profit (TP) Calculations:
The average volatility can be used to calculate dynamic Stop Loss (SL) and Take Profit (TP) levels:
SL: Placing it at a certain volatility multiplier below/above the entry price.
TP: Setting it at a certain volatility multiplier below/above the entry price.
For example:
SL: Entry price +/- (UVR × 1.5)
TP: Entry price +/- (UVR × 2)
Market Condition Analysis:
When the indicator value is high, it suggests that the market is volatile (active).
When the value is low, it indicates the market is in consolidation (sideways movement).
This information helps traders decide whether to take trend-following or consolidation-based positions.
Trend Reversal Monitoring:
A sudden increase in volatility often signals the start of a strong trend.
Conversely, a decrease in volatility can signal the slowing down or end of a trend.
BTC InsightThis script is a comprehensive tool for analyzing Bitcoin's daily price range, trend predictions, and significant volume-based order block levels. It combines multiple technical analysis concepts, including exponential moving averages (EMAs), logarithmic calculations, and custom indicators for advanced forecasting and visualization.
Key Features and Technical Details
1. Exponential Moving Averages (EMAs)
The script calculates two smoothed EMAs:
EMA1 and EMA2 are derived from the logarithmic price of Bitcoin (log(close)).
The smoothing periods and multipliers are user-configurable through inputs:
Smoothed EMA1 Period (default: 728)
Smoothed EMA2 Period (default: 728)
Initial EMA Multipliers (default: 1.0 for EMA1, 5.0 for EMA2)
A time decay factor is applied to the multipliers to adjust sensitivity over time, making the EMAs adaptive to market dynamics.
2. Logarithmic Domain Calculations
The script uses logarithmic transformations to enhance accuracy when dealing with large price changes.
Adjustments to EMAs are made in the logarithmic domain and converted back to the price domain for plotting.
3. EMA Forecasting
The script performs a linear regression analysis over a specified period (728 bars by default) to estimate future price trends for both EMAs.
Slope Adjustments:
RSI (Relative Strength Index) is incorporated to modify the forecast slope dynamically:
RSI > 70: Bearish adjustment (-0.5)
RSI < 30: Bullish adjustment (+0.5)
Forecasts are plotted as dashed lines, projecting future values of EMA1 (green) and EMA2 (red).
4. Order Block Detection
Detects order block levels based on high volume spikes relative to the average volume over a lookback period (default: 100 bars).
A volume multiplier (default: 1.5x) is applied to identify significant volume activity.
Two types of order blocks are identified:
Below EMA1: A price zone where significant buying occurred below EMA1.
Above EMA2: A price zone where significant selling occurred above EMA2.
Order blocks are visualized as shaded rectangles:
Green boxes represent order blocks below EMA1.
Red boxes represent order blocks above EMA2.
5. Customization Inputs
The script allows fine-tuning via the following parameters:
EMA Settings: Periods, multipliers, and time factors for both EMAs.
Volume Analysis Settings: Lookback period and volume multiplier for order block detection.
Order Block Box Settings: Height of the range as a percentage of the detected price.
6. Visualization
EMAs: Two smoothed exponential moving averages are plotted with configurable offsets.
Forecast Lines: Dashed lines project future EMA trends based on regression analysis.
Order Block Boxes: Highlight areas of high volume below EMA1 and above EMA2, indicating potential support or resistance zones.
How It Works in Practice
EMAs and Trend Analysis:
The EMAs represent long-term market trends, adjusted dynamically using custom multipliers and time decay.
The script forecasts the EMAs' future trajectories to anticipate potential price movements.
Order Blocks:
High-volume zones indicate areas where significant market activity occurred, providing insights into potential price reversal points or continuation zones.
RSI Integration:
RSI-based slope adjustment fine-tunes the EMA forecast, adding an extra layer of dynamic market context.
Comprehensive View:
By combining trend forecasts with volume-based zones, the script delivers a robust analysis tool for identifying potential entry/exit points, support/resistance levels, and long-term trend predictions.
Dix$on's Weighted Volume FlowDixson's Weighted Volume Flow
Dixson's Weighted Volume Flow is a technical indicator designed to analyze and visualize the distribution of buy and sell volume within a given timeframe. It dynamically calculates the proportional allocation of volume based on price action within each bar, providing insights into market sentiment and activity. This indicator displays horizontal volume bars in a separate pane and annotates them with precise volume values.
How It Works
1. Volume Allocation:
- The indicator calculates buy and sell volume using the following formulas:
- Buy Volume = (Close - Low) / (High - Low) Total Volume
- Sell Volume = (High - Close) / (High - Low) Total Volume
- These formulas allocate volume proportionally based on the bar's price range, attributing more volume to buying or selling depending on the relationship between the close, high, and low prices.
2. Dynamic Scaling:
- The buy and sell volumes are scaled relative to their combined total for the period.
- The resulting values determine the length of the horizontal bars, providing a comparative view of buy and sell activity.
3. Bar Visualization:
- Buy Volume Bars: Displayed as green horizontal bars.
- Sell Volume Bars: Displayed as red horizontal bars.
- The lengths of the bars represent the dominance of buy or sell volume, scaled dynamically within the pane.
4. Labels:
- Each bar is annotated with a label showing its calculated buy or sell volume value.
5. Timeframe Adjustment:
- The indicator uses the request.security() function to fetch data from the selected timeframe, allowing users to customize their analysis for intraday, daily, or longer-term trends.
6. Customization Options:
- Enable or disable the indicator using a toggle.
- Adjust colors for the buy/sell bars and text labels to suit your chart theme.
How to Use It
1. Enable the Indicator:
- Activate the indicator using the "Enable/Disable" toggle in the settings.
2. Select a Timeframe:
- Choose the timeframe for analysis (e.g., 1-minute, 1-hour, daily). The indicator fetches volume data specific to the selected timeframe.
3. Interpret the Visualization:
- Compare Bar Lengths:
- Longer buy volume bars (green) indicate stronger buying activity.
- Longer sell volume bars (red) suggest dominant selling pressure.
- Labels:
- Use the labels to view the exact buy and sell volume values for precise analysis.
4. Combine with Other Tools:
- Use the indicator alongside price action analysis, support/resistance levels, or trend indicators to confirm market sentiment and detect potential reversals.
5. Monitor Imbalances:
- Significant disparities between buy and sell volume can signal shifts in market sentiment, such as the end of a trend or the start of a breakout.
Practical Applications
- Trend Confirmation:
- Align the dominance of buy or sell volume with price trends to confirm market direction.
- Reversal Signals:
- Watch for volume imbalances or a sudden shift in the dominance of buy or sell volume to identify potential reversals.
- High-Activity Zones:
- Identify areas with increased volume to anticipate significant price movements or key support/resistance interactions.
Dixson's Weighted Volume Flow provides a clear and systematic way to analyze market activity by visualizing the dynamics of buy and sell volume. It is particularly useful for traders looking to enhance their understanding of volume-based sentiment and its impact on price movements.
Real-Time Custom Candle Range Color Indicator
The script allows the user to input a custom range value (default set to 100 points) through the userDefinedRange variable. This value determines the minimum range required for a candle to change color.
Calculating Candle Range:
The script calculates the range of each candle by subtracting the low from the high price.
Determining Bullish or Bearish Candles:
It checks whether the close price is higher than the open price to determine if a candle is bullish (isBullish variable).
Coloring Candles:
Based on the custom range input, the script changes the color of the candles:
If the candle's range is greater than or equal to the custom range and it is bullish, the candle color is set to blue (bullishColor).
If the range condition is met and the candle is bearish, the color is set to orange (bearishColor).
If the range condition is not met, the color is set to na (not applicable).
Plotting Colored Candles:
The plotcandle function is used to plot candles with colors based on the custom range and bullish/bearish conditions. The candles will have a higher z-order to be displayed in front of default candles.
Displaying High and Low Price Points:
Triangular shapes are plotted at the high and low price levels using the plotshape function, with colors representing bullish (blue) and bearish (orange) conditions.
In trading, this indicator can help traders visually identify candles that meet a specific range criteria, potentially signaling strength or weakness in price movements. By customizing the range parameter, traders can adapt the indicator to different market conditions and trading strategies. It can be used in conjunction with other technical analysis tools to make informed trading decisions based on candlestick patterns and price movements.
TechniTrend: CandleMetrics🟦 Overview
The TechniTrend: CandleMetrics Indicator is a powerful tool designed to give traders an in-depth analysis of candlestick structures. This indicator allows users to identify potential reversal points, trend continuations, and other crucial market behaviors by examining key ratios between candle components—such as body, shadow, and overall range—alongside volume conditions. The advanced filtering options offer flexibility for both novice and experienced traders, enabling tailored setups to suit different trading strategies.
🟦 Key Features
🔸Customizable Ratios: Set thresholds for Body-to-Range, Shadow-to-Range, Upper Shadow-to-Range, and Lower Shadow-to-Range ratios.
🔸Volume-Based Filters: Integrate volume conditions to strengthen the reliability of signals.
🔸Flexible Conditions: Choose whether filters should work independently or in combination, allowing for precise pattern identification.
🔸Visual Markers: Mark potential signals with a distinct background color and symbols on the chart.
🔸Alerts: Receive notifications for each selected condition, ensuring you never miss an opportunity.
🟦 How It Works
The CandleMetrics Indicator operates by analyzing the relationship between different components of each candlestick, combined with volume data to determine the strength of signals. Here’s a detailed breakdown of each feature:
🔸 Body to Range Ratio:
This filter compares the size of the candle's body to its total range (from high to low).
Example Setting: If you’re interested in spotting candles with small bodies relative to their total range, you might set the Body-to-Range Ratio to “Less than 0.3.”
🔸 Shadow to Range Ratio:
This examines the combined size of both shadows (upper and lower) relative to the entire candle range.
Example Setting: Use a Shadow-to-Range Ratio set to “More than 0.8” to find candles with significant wick lengths, suggesting market indecision.
🔸 Upper Shadow to Range Ratio:
This filter assesses the proportion of the upper shadow (wick) in relation to the candle’s full range.
Example Setting: “Less than 0.05” can help identify situations where the upper shadow is minimal, indicating strong downward pressure.
🔸 Lower Shadow to Range Ratio:
It measures the lower shadow compared to the entire candle range.
Example Setting: “More than 0.7” is useful for detecting potential rejection patterns at lower prices, hinting at a possible bullish reversal.
🔸 Volume Filter:
Integrates volume data to verify the reliability of each candle pattern.
Example Setting: Apply a Volume Filter Length of 100 with an SMA type to smooth volume data over a longer period, filtering out short-term noise and focusing on significant volume shifts.
🟦 Combining Filters
The indicator offers an option to Combine Filters. When this setting is enabled, all selected conditions must be met simultaneously for a candle to be marked. If disabled, each condition functions independently, allowing more flexibility in detecting diverse patterns.
🟦 Examples & Use Cases
🔸Example 1: Spotting Reversal Opportunities
I used the following configuration to find potential bullish reversals:
Upper Shadow to Range Ratio: “Less than 0.05” – Looking for candles with almost no upper shadow.
Lower Shadow to Range Ratio: “More than 0.7” – Highlighting candles with a significant lower shadow.
Volume Filter Length: 100 with SMA.
This setup effectively highlights candles where price rejection is happening at lower levels, suggesting a potential trend reversal to the upside.
🔸Example 2: Detecting Market Uncertainty
If you want to focus on candles showing market hesitation, try:
Shadow to Range Ratio: “More than 0.85” – Emphasizing long-wick candles that could indicate indecision.
Disable Combine Filters to allow flexibility, marking any candle meeting the above criteria.
🟦 Detailed Explanation of Each Option
Here’s a clear and concise breakdown of each option for a better understanding:
1. Body to Range Ratio
Purpose: This ratio shows how significant the candle's body is compared to its overall range. A smaller body-to-range ratio can indicate a potential reversal if the market appears indecisive.
How to Use: Increase the ratio to filter for stronger trend candles; decrease it to identify reversal or indecision candles.
2. Shadow to Range Ratio
Purpose: This filter captures the size of both shadows relative to the candle's total range. A larger ratio often points to market hesitation, while a smaller ratio suggests a decisive move.
How to Use: Adjust this filter to focus on candles with long wicks (indecision) or short wicks (decisiveness).
3. Upper Shadow to Range Ratio
Purpose: Helps to identify candles with strong downward moves by focusing on the upper wick length. A small upper shadow can imply sellers' dominance.
How to Use: Lower the ratio to detect candles with minimal upward rejection.
4. Lower Shadow to Range Ratio
Purpose: Targets candles with strong buying pressure by analyzing the lower shadow. A larger lower shadow may indicate a bullish reversal.
How to Use: Increase the ratio to spot rejection candles with significant lower shadows.
5. Volume Filter
Purpose: Adds a volume component to verify the validity of each candlestick pattern. Higher-than-average volume often signifies the strength of a move.
How to Use: Adjust the filter length and type to smooth out volume fluctuations based on your trading timeframe.
🟦 Indicator Alerts
Each filter has its own alert configuration, enabling traders to stay updated on market conditions that meet their selected criteria. You can customize alerts to trigger whenever a condition is met, helping to manage trades even when away from the screen.
