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Wave Analysis

Ichimoku Cloud + VWAPIchimoku Cloud + VWAP Trading Strategy Description The Ichimoku Cloud + VWAP trading strategy combines two powerful technical indicators to provide comprehensive market analysis and trading signals. This hybrid approach leverages the strengths of both indicators to identify trends, potential reversals, and key price levels for entry and exit decisions. Ichimoku Cloud Overview The Ichimoku Cloud is a trend-following indicator that provides a detailed snapshot of market dynamics at a glance. It consists of the following components: Conversion Line (Tenkan-sen): A short-term trend indicator, calculated as the midpoint of the highest high and lowest low over a specific period (default: 9). Base Line (Kijun-sen): A medium-term trend indicator, calculated as the midpoint of the highest high and lowest low over a longer period (default: 26). Leading Span A (Senkou Span A): The average of the Conversion and Base Lines, projected into the future. Leading Span B (Senkou Span B): The midpoint of the highest high and lowest low over an even longer period (default: 52), projected into the future. Lagging Span (Chikou Span): The closing price plotted with a time lag (default: 26). The "Cloud" (Kumo) is formed by the space between Leading Span A and Leading Span B: Bullish Cloud: Leading Span A is above Leading Span B. Bearish Cloud: Leading Span A is below Leading Span B. VWAP Overview The Volume-Weighted Average Price (VWAP) is a dynamic benchmark indicator that calculates the average price of an asset, weighted by trading volume. It helps traders assess the true average value of an asset over a specific period and is often used as a guide for intraday trading: Above VWAP: Indicates bullish market sentiment. Below VWAP: Indicates bearish market sentiment. VWAP can also be enhanced with customizable bands (e.g., based on standard deviations or percentages), which act as dynamic support and resistance levels. Trading Signals 1. Trend Confirmation A price above the VWAP and within a bullish Ichimoku Cloud suggests a strong uptrend. Look for buying opportunities. A price below the VWAP and within a bearish Ichimoku Cloud suggests a strong downtrend. Look for selling opportunities. 2. Entry Points Bullish Entry: Price breaks above the VWAP, confirmed by the Conversion Line crossing above the Base Line within a bullish Ichimoku Cloud. Bearish Entry: Price breaks below the VWAP, confirmed by the Conversion Line crossing below the Base Line within a bearish Ichimoku Cloud. 3. Support and Resistance Use VWAP bands as dynamic support/resistance levels to refine entry and exit points. Ichimoku Cloud edges (Leading Span A and B) provide additional zones of support/resistance. 4. Reversal Signals Look for price moving through the Cloud (from bearish to bullish or vice versa) while crossing the VWAP. Lagging Span crossing the price or the Cloud can indicate potential reversals. Advantages of the Combined Strategy Enhanced Clarity: Ichimoku Cloud offers a multi-dimensional view of market trends, while VWAP provides an objective benchmark for price action. Dynamic Levels: VWAP and its bands adapt to volume and price changes, complementing Ichimoku's trend projections. Versatility: Works well in trending and range-bound markets by combining Ichimoku’s trend-following ability with VWAP’s mean-reversion properties. Use Cases Intraday Traders: VWAP is especially effective for short-term trades, and Ichimoku provides trend confirmation. Swing Traders: The Ichimoku Cloud’s projection capabilities can help identify longer-term trends, with VWAP used for precision in entries and exits. Risk Management: Use VWAP bands and Ichimoku Cloud boundaries to define stop-loss and take-profit levels. By combining Ichimoku Cloud and VWAP, traders gain a holistic view of the market, blending trend-following, mean-reversion, and dynamic support/resistance strategies into one cohesive system.
Pine Script™ indicator
by PRO-MENTOR
VWAP BY PRO MENTORDescription of the VWAP Indicator Strategy The Volume Weighted Average Price (VWAP) is a widely-used technical indicator that provides a benchmark for the average price an asset has traded at throughout the day, based on both price and volume. It is particularly popular among institutional traders, intraday traders, and scalpers. Unlike moving averages that consider only price, VWAP incorporates volume, making it a more accurate representation of market sentiment and price levels. Components of the VWAP: Price Component: The average price is calculated using high, low, and close prices. Volume Component: This adds weight to the prices based on the trading volume, emphasizing areas of high activity. How the VWAP Strategy Works: Bullish Bias: When the price is above the VWAP line, it indicates that the asset is trading in a bullish environment. Traders often use this as a signal to enter long positions or to avoid selling short. Bearish Bias: When the price is below the VWAP line, it indicates a bearish sentiment in the market. Traders consider this a signal to enter short positions or avoid buying. VWAP as Support/Resistance: The VWAP line often acts as dynamic support or resistance. Traders use it to identify pullbacks or breakouts during trending markets. Entry and Exit Rules: Entry Rules: Go long when the price crosses above the VWAP line, signaling a potential uptrend. Go short when the price crosses below the VWAP line, signaling a potential downtrend. Exit Rules: Exit when the price retraces back to the VWAP line, suggesting a potential reversal or consolidation. Use additional indicators like RSI or MACD for confirmation. Advantages: Volume-Weighted Accuracy: VWAP incorporates volume into its calculation, making it a reliable tool for understanding true market trends. Institutional Usage: Institutional traders use VWAP to gauge execution prices, ensuring trades occur near the average price. Intraday Applicability: VWAP is reset daily, making it highly effective for intraday trading strategies. Limitations: Intraday Focus: VWAP is recalculated at the start of each trading session, limiting its use for multi-day trends. Lagging Indicator: Like all moving averages, VWAP lags behind price movements due to its reliance on past data. Enhancements: Combine VWAP with other tools for greater reliability: RSI or Stochastic Oscillator: To confirm overbought or oversold conditions. Price Action Analysis: Identify key support and resistance levels. Moving Averages: Integrate with EMAs or SMAs for better trend identification. The VWAP Strategy is an effective tool for both novice and professional traders looking to align their trades with market sentiment and trends. Its combination of price and volume data makes it an indispensable indicator for intraday trading.
Pine Script™ indicator
by PRO-MENTOR
EMA 50 + 200 CROSS BY PRO MENTORDescription of the 50 + 200 EMA Crossover Strategy The 50 + 200 EMA Crossover Strategy is a popular and straightforward trend-following trading method used by traders in various markets, such as stocks, forex, and cryptocurrencies. This strategy uses two exponential moving averages (EMAs) with different timeframes: the 50-period EMA and the 200-period EMA. These moving averages help identify the prevailing market trend and generate buy or sell signals based on their crossovers. Components of the Strategy: 50 EMA (Short-Term Trend): The 50 EMA represents the short-term trend. It reacts more quickly to price changes compared to the 200 EMA. 200 EMA (Long-Term Trend): The 200 EMA represents the long-term trend. It is slower to respond to price changes, providing a broader view of the market direction. How the Strategy Works: Bullish Crossover (Golden Cross): When the 50 EMA crosses above the 200 EMA, it signals a potential upward trend. This is known as a "Golden Cross" and indicates a possible buying opportunity. Bearish Crossover (Death Cross): When the 50 EMA crosses below the 200 EMA, it signals a potential downward trend. This is referred to as a "Death Cross" and indicates a possible selling opportunity. Entry and Exit Rules: Entry Rules: Enter a long position when the 50 EMA crosses above the 200 EMA (Golden Cross). Enter a short position when the 50 EMA crosses below the 200 EMA (Death Cross). Exit Rules: Exit the position when the reverse crossover occurs or use additional indicators (e.g., RSI, MACD) to confirm trend exhaustion. Alternatively, traders can use stop-loss and take-profit levels to manage risks. Advantages: Trend Identification: Clearly identifies long-term trends, reducing the risk of trading against the market direction. Simplicity: Easy to understand and implement, making it suitable for beginners. Widely Used: Effective across different asset classes and timeframes. Limitations: Lagging Indicator: Both EMAs are lagging indicators, meaning they rely on past price data, which can delay signals during volatile market conditions. Choppy Markets: In sideways or range-bound markets, the strategy can generate false signals, leading to losses. Enhancements: Combine the EMA crossover with other tools, such as: RSI (Relative Strength Index) to filter overbought/oversold conditions. Volume Indicators to confirm the strength of the trend. Support and Resistance Levels for additional context. The 50 + 200 EMA Crossover Strategy is a reliable starting point for traders who want to capture significant trends while maintaining simplicity. However, it works best in trending markets and should be paired with sound risk management practices for optimal results.
Pine Script™ indicator
by PRO-MENTOR
Magic Cloud with AlertsMagic Cloud with Alerts is designed to enhance trading decisions by providing a comprehensive view of market trends across different time-frames. Here’s a breakdown of its key features: Multi-Timeframe Moving Averages: The indicator calculates simple moving averages (SMA) for three specified timeframes, allowing traders to see how different timeframes align or diverge. Users can customize the lengths of the moving averages, providing flexibility based on trading strategies. Cloud Visualization: The indicator visually represents the moving averages as a cloud, filling the area between two specified moving averages. This helps traders quickly identify trends and potential support/resistance areas. Different colors are used for each timeframe's cloud, making it easy to distinguish between them. Volume-Weighted Average Price (VWAP): The VWAP is included in the indicator to assess the average price of the asset, weighted by volume. It helps identify whether the current price is above or below the average, indicating potential buying or selling opportunities. Crossover Alerts: The indicator includes alert conditions for bullish and bearish crossovers with the VWAP. When the current price crosses above the VWAP, a bullish signal is generated; conversely, a bearish signal occurs when the price crosses below the VWAP. Alerts can be set up in TradingView to notify traders instantly, facilitating quick responses to market changes. Customizable Parameters: Traders can adjust the lengths of the moving averages and the timeframes used for calculations, tailoring the indicator to their preferred trading style or asset. Benefits for Traders: Enhanced Decision-Making: By providing a multi-time-frame perspective, traders can make more informed decisions based on broader market trends. Quick Reaction to Market Changes: Instant alerts for crossovers allow traders to react quickly to potential trading opportunities. Visual Clarity: The cloud visualization simplifies the analysis of moving averages, making it easier to spot trends and reversals. Overall, this indicator serves as a powerful tool for both novice and experienced traders, helping them navigate the complexities of the market more effectively.
Pine Script™ indicator
by lourikifouad79
Turtle Soup ICT Strategy [TradingFinder] FVG + CHoCH/CSD🔵 Introduction The ICT Turtle Soup trading setup, designed in the ICT style, operates by hunting or sweeping liquidity zones to exploit false breakouts and failed breakouts in key liquidity Zones, such as recent highs, lows, or major support and resistance levels. This setup identifies moments when the price breaches these liquidity zones, triggering stop orders placed (Stop Hunt) by other traders, and then quickly reverses direction. These movements are often associated with liquidity sweeps that create temporary market imbalances. The reversal is typically confirmed by one of three structural shifts : a Market Structure Shift (MSS), a Change of Character (CHoCH), or a break of the Change in State of Delivery (CISD). Each of these structural shifts provides a reliable signal to interpret market intent and align trading decisions with the expected price movement. After the structural shift, the price frequently pullback to a Fair Value Gap (FVG), offering a precise entry point for trades. By integrating key concepts such as liquidity, liquidity sweeps, stop order activation, structural shifts (MSS, CHoCH, CISD), and price imbalances, the ICT Turtle Soup setup enables traders to identify reversal points and key entry zones with high accuracy. This strategy is highly versatile, making it applicable across markets such as forex, stocks, cryptocurrencies, and futures. It offers traders a robust and systematic approach to understanding price movements and optimizing their trading strategies 🟣 Bullish and Bearish Setups Bullish Setup : The price first sweeps below a Sell-Side Liquidity (SSL) zone, then reverses upward after forming an MSS or CHoCH, and finally pulls back to an FVG, creating a buying opportunity. Bearish Setup : The price first sweeps above a Buy-Side Liquidity (BSL) zone, then reverses downward after forming an MSS or CHoCH, and finally pulls back to an FVG, creating a selling opportunity. 🔵 How to Use To effectively utilize the ICT Turtle Soup trading setup, begin by identifying key liquidity zones, such as recent highs, lows, or support and resistance levels, in higher timeframes. Then, monitor lower timeframes for a Liquidity Sweep and confirmation of a Market Structure Shift (MSS) or Change of Character (CHoCH). After the structural shift, the price typically pulls back to an FVG, offering an optimal trade entry point. Below, the bullish and bearish setups are explained in detail. 🟣 Bullish Turtle Soup Setup Identify Sell-Side Liquidity (SSL) : In a higher timeframe (e.g., 1-hour or 4-hour), identify recent price lows or support levels that serve as SSL zones, typically the location of stop-loss orders for traders. Observe a Liquidity Sweep : On a lower timeframe (e.g., 15-minute or 30-minute), the price must move below one of these liquidity zones and then reverse. This movement indicates a liquidity sweep. Confirm Market Structure Shift : After the price reversal, look for a structural shift (MSS or CHoCH) indicated by the formation of a Higher Low (HL) and Higher High (HH). Enter the Trade : Once the structural shift is confirmed, the price typically pulls back to an FVG. Enter a buy trade in this zone, set a stop-loss slightly below the recent low, and target Buy-Side Liquidity (BSL) in the higher timeframe for profit. 🟣 Bearish Turtle Soup Setup Identify Buy-Side Liquidity (BSL) : In a higher timeframe, identify recent price highs or resistance levels that serve as BSL zones, typically the location of stop-loss orders for traders. Observe a Liquidity Sweep : On a lower timeframe, the price must move above one of these liquidity zones and then reverse. This movement indicates a liquidity sweep. Confirm Market Structure Shift : After the price reversal, look for a structural shift (MSS or CHoCH) indicated by the formation of a Lower High (LH) and Lower Low (LL). Enter the Trade : Once the structural shift is confirmed, the price typically pulls back to an FVG. Enter a sell trade in this zone, set a stop-loss slightly above the recent high, and target Sell-Side Liquidity (SSL) in the higher timeframe for profit. 🔵 Settings Higher TimeFrame Levels : This setting allows you to specify the higher timeframe (e.g., 1-hour, 4-hour, or daily) for identifying key liquidity zones. Swing period : You can set the swing detection period. Max Swing Back Method : It is in two modes "All" and "Custom". If it is in "All" mode, it will check all swings, and if it is in "Custom" mode, it will check the swings to the extent you determine. Max Swing Back : You can set the number of swings that will go back for checking. FVG Length : Default is 120 Bar. MSS Length : Default is 80 Bar. 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 filter s: 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. In the indicator settings, you can customize the visibility of various elements, including MSS, FVG, and HTF Levels. Additionally, the color of each element can be adjusted to match your preferences. This feature allows traders to tailor the chart display to their specific needs, enhancing focus on the key data relevant to their strategy. 🔵 Conclusion The ICT Turtle Soup trading setup is a powerful tool in the ICT style, enabling traders to exploit false breakouts in key liquidity zones. By combining concepts of liquidity, liquidity sweeps, market structure shifts (MSS and CHoCH), and pullbacks to FVG, this setup helps traders identify precise reversal points and execute trades with reduced risk and increased accuracy. With applications across various markets, including forex, stocks, crypto, and futures, and its customizable indicator settings, the ICT Turtle Soup setup is ideal for both beginner and advanced traders. By accurately identifying liquidity zones in higher timeframes and confirming structure shifts in lower timeframes, this setup provides a reliable strategy for navigating volatile market conditions. Ultimately, success with this setup requires consistent practice, precise market analysis, and proper risk management, empowering traders to make smarter decisions and achieve their trading goals.
Pine Script™ indicator
by TFlab
2
XSRMXSRM (XSRMulti) Indicator Description: The XSRM indicator is specifically designed for support and resistance analysis, enabling traders to identify swing points across multiple independent time intervals. It detects significant swing highs and lows within defined periods and plots them as key support and resistance levels on the chart. Key Features: Multi-Interval Swing Point Detection: Identifies swing high and low points based on user-defined parameters (lookback period and offset). Allows analysis across multiple independent ranges to locate critical support and resistance levels. Customizable Parameters: Configurable lookback periods, offsets, and depth for swing point detection. Selectable price sources, including high/low, open, close, hl2, and hlc3. Support and Resistance Visualization: Plots swing high, swing low, and midpoints as lines on the chart. Users can customize line colors, styles, and extensions for better readability. Daily Percentage Change: Displays daily price percentage change as a quick reference for market momentum. How It Works: The indicator analyzes price action over multiple user-defined timeframes to locate swing points. Swing high and low levels are calculated using a depth parameter to ensure significant turning points are captured. Midpoints are computed to highlight equilibrium zones between support and resistance levels. Use Cases: Identify strong support and resistance levels to refine entry and exit points. Analyze swing points across different periods to understand market structure. Combine with other indicators for confirmation and stronger trade setups. Customization Options: General Settings: Adjust lookback periods, offsets, and depth for swing analysis. Optional Settings: Choose logarithmic or linear midpoint calculations, enable line extensions, and customize line colors. Source Selection: Define the price source for swing point calculations (e.g., high/low, close). Important Notes: Ensure that the parameters are adjusted according to the asset and timeframe being analyzed. The indicator is designed to work across various markets, including stocks, forex, and crypto. This tool is ideal for traders focusing on support and resistance zones and those looking to enhance their technical analysis for more accurate trading decisions.
Pine Script™ indicator
by nanoinvestor
Consecutive Candles DevisSoHi Traders !!! Level Calculation: 50% and 23.6% Fibonacci levels are calculated based on the open and close of the previous candles. Consecutive Candle Check: For an uptrend: Each candle's low must not touch the 50% levels of the previous candles. For a downtrend: Each candle's high must not touch the 50% levels of the previous candles. Pullback Level: When a long signal is triggered, the current candle's low is recorded as a pullback level. When a short signal is triggered, the current candle's high is recorded as a pullback level. Breakout and Signal Generation: If the price breaks above the calculated level, a long signal is generated; if it breaks below, a short signal is generated. These signals are visualized on the chart. Continuity: The system checks the last signal to ensure the validity of new signals, maintaining the consistency of consecutive signals.
Pine Script™ indicator
by engineerofmoney
12
Alternate Bat Harmonic Pattern [TradingFinder] ALT Bat Indicator🔵 Introduction The Alternate Bat harmonic pattern is one of the most precise and practical tools in technical analysis, introduced by Scott Carney in 2003. This pattern focuses on specific Fibonacci ratios, such as 0.382 at point B and 1.13XA at point D, to identify Potential Reversal Zones (PRZ) where price is likely to reverse. The Alternative Bat pattern emerged as a result of repeated failures observed in the standard Bat pattern. Traders entering trades near the 0.886XA level of the standard Bat often encountered losses. In the Alternate Bat, point D extends beyond 0.886XA, typically reversing at 1.13XA, offering a more accurate identification of the reversal zone. A key characteristic of this pattern is its M- or W-shaped structure, where the midpoint B retraces 0.382XA or less. Additionally, the CD leg requires an extension of 2.0 to 3.618 to complete the pattern. Due to its accuracy and the predictable behavior of price near the PRZ, the Alternate Bat pattern is recognized as a powerful tool for forecasting price reversals. In the bullish Alternative Bat pattern, an M-shaped structure forms. After an initial upward movement (XA), price undergoes a short correction at point B (0.382XA) and then declines toward point D (1.13XA and an extension of 2.0 to 3.618BC), where a potential upward reversal is expected. In the bearish Alternate Bat pattern, a W-shaped structure forms. After an initial downward movement (XA), price retraces slightly at point B (0.382XA) and then rises toward point D (1.13XA and an extension of 2.0 to 3.618BC), where a potential downward reversal is anticipated. 🔵 How to Use The Alternate Bat harmonic pattern is a key tool for identifying potential reversal zones (PRZ) in the market. By leveraging the 0.382 retracement at point B and the 1.13XA extension at point D, along with symmetrical price structures, this pattern offers precise reversal opportunities in both bullish and bearish market conditions. 🟣 Bullish Alternate Bat Pattern The bullish Alternate Bat pattern forms during a downtrend, signaling a potential reversal to the upside. This pattern consists of three downward movements with two corrective waves, ultimately reaching point D, which marks the PRZ. At the PRZ, the convergence of Fibonacci levels—1.13XA and extensions ranging from 2.0 to 3.618BC—creates a strong support zone where price is likely to reverse upward. 🟣 Bearish Alternative Bat Pattern The bearish Alternate Bat pattern develops during an uptrend, indicating a potential reversal to the downside. This pattern features three upward price movements with two retracements, ending at point D, where the PRZ forms. Point D is defined by the 1.13XA extension and the 2.0 to 3.618BC projection, creating a strong resistance zone where price is expected to reverse downward. 🔵 Setting 🟣 Logical Setting ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition. Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern. Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk. Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period. 🟣 Genaral Setting Show : Enter "On" to display the template and "Off" to not display the template. Color : Enter the desired color to draw the pattern in this parameter. LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness. LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries. 🟣 Alert Setting Alert : 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 Alternate Bat harmonic pattern, with its precise Fibonacci ratios like 0.382 and 1.13XA, is a reliable tool for identifying Potential Reversal Zones (PRZ) in financial markets. By recognizing symmetrical price structures and focusing on both bullish and bearish scenarios, traders can identify optimal entry and exit points with high accuracy. The key strength of this pattern lies in its ability to define strong support and resistance zones near the PRZ, increasing the probability of price reversals. Combining the pattern with candlestick confirmations and volume analysis enhances its effectiveness. Ultimately, incorporating the Alternative Bat pattern with proper risk management and Fibonacci-based targets allows traders to enter the market confidently and capitalize on potential price reversals.
Pine Script™ indicator
by TFlab
1
Weighted Fourier Transform: Spectral Gating & Main Frequency🙏🏻 This drop has 2 purposes: 1) to inform every1 who'd ever see it that Weighted Fourier Tranform does exist, while being available nowhere online, not even in papers, yet there's nothing incredibly complicated about it, and it can/should be used in certain cases; 2) to show TradingView users how they can use it now in dem endevours, to show em what spectral filtering is, and what can they do with all of it in diy mode. ... so we gonna have 2 sections in the description Section 1: Weighted Fourier Transform It's quite easy to include weights in Fourier analysis: you just premultiply each datapoint by its corresponding weight -> feed to direct Fourier Transform, and then divide by weights after inverse Fourier transform. Alternatevely, in direct transform you just multiply contributions of each data point to the real and imaginary parts of the Fourier transform by corresponding weights (in accumulation phase), and in inverse transform you divide by weights instead during the accumulation phase. Everything else stays the same just like in non-weighted version. If you're from the first target group let's say, you prolly know a thing or deux about how to code & about Fourier Transform, so you can just check lines of code to see the implementation of Weighted Discrete version of Fourier Transform, and port it to to any technology you desire. Pine Script is a developing technology that is incredibly comfortable in use for quant-related tasks and anything involving time series in general. While also using Python for research and C++ for development, every time I can do what I want in Pine Script, I reach for it and never touch matlab, python, R, or anything else. Weighted version allows you to explicetly include order/time information into the operation, which is essential with every time series, although not widely used in mainstream just as many other obvious and right things. If you think deeply, you'll understand that you can apply a usual non-weighted Fourier to any 2d+ data you can (even if none of these dimensions represent time), because this is a geometric tool in essence. By applying linearly decaying weights inside Fourier transform, you're explicetly saying, "one of these dimensions is Time, and weights represent the order". And obviously you can combine multiple weightings, eg time and another characteristic of each datum, allows you to include another non-spatial dimension in your model. By doing that, on properly processed (not only stationary but Also centered around zero data), you can get some interesting results that you won't be able to recreate without weights: ^^ A sine wave, centered around zero, period of 16. Gray line made by: DWFT (direct weighted Fourier transform) -> spectral gating -> IWFT (inverse weighted Fourier transform) -> plotting the last value of gated reconstructed data, all applied to expanding window. Look how precisely it follows the original data (the sine wave) with no lag at all. This can't be done by using non-weighted version of Fourier transform. ^^ spectral filtering applied to the whole dataset, calculated on the latest data update And you should never forget about Fast Fourier Transform, tho it needs recursion... Section 2: About use cases for quant trading, about this particular implementaion in Pine Script 6 (currently the latest version as of Friday 13, December 2k24). Given the current state of things, we have certain limits on matrix size on TradingView (and we need big dope matrixes to calculate polynomial regression -> detrend & center our data before Fourier), and recursion is not yet available in Pine Script, so the script works on short datasets only, and requires some time. A note on detrending. For quality results, Fourier Transform should be applied to not only stationary but also centered around zero data. The rightest way to do detrending of time series is to fit Cumulative Weighted Moving Polynomial Regression (known as WLSMA in some narrow circles xD) and calculate the deltas between datapoint at time t and this wonderful fit at time t. That's exactly what you see on the main chart of script description: notice the distances between chart and WLSMA, now look lower and see how it matches the distances between zero and purple line in WFT study. Using residuals of one regression fit of the whole dataset makes less sense in time series context, we break some 'time' and order rules in a way, tho not many understand/cares abouit it in mainstream quant industry. Two ways of using the script: Spectral Gating aka Spectral filtering. Frequency domain filtering is quite responsive and for a greater computational cost does not introduce a lag the way it works with time-domain filtering. Works this way: direct Fourier transform your data to get frequency & phase info -> compute power spectrum out of it -> zero out all dem freqs that ain't hit your threshold -> inverse Fourier tranform what's left -> repeat at each datapoint plotting the very first value of reconstructed array*. With this you can watch for zero crossings to make appropriate trading decisions. ^^ plot Freq pass to use the script this way, use Level setting to control the intensity of gating. These 3 only available values: -1, 0 and 1, are the general & natural ones. * if you turn on labels in script's style settings, you see the gray dots perfectly fitting your data. They get recalculated (for the whole dataset) at each update. You call it repainting, this is for analytical & aesthetic purposes. Included for demonstration only. Finding main/dominant frequency & period. You can use it to set up Length for your other studies, and for analytical purposes simply to understand the periodicity of your data. ^^ plot main frequency/main period to use the script this way. On the screenshot, you can see the script applied to sine wave of period 16, notice how many datapoints it took the algo to figure out the signal's period quite good in expanding window mode Now what's the next step? You can try applying signal windowing techniques to make it all less data-driven but your ego-driven, make a weighted periodogram or autocorrelogram (check Wiener-Khinchin Theorem ), and maybe whole shiny spectrogram? ... you decide, choice is yours, The butterfly reflect the doors ... ∞
Pine Script™ indicator
by gorx1
2
Sweep + Cement Candle Coloring with EMA hopdcCertainly! Here's an introduction for the indicator: --- ## Introduction to the Sweep + Cement Candle Coloring with EMA Indicator The **Sweep + Cement Candle Coloring with EMA Indicator** is a powerful tool designed to enhance your technical analysis and trading strategies. This indicator combines the unique characteristics of Sweep and Cement candle patterns with the dynamic capabilities of Exponential Moving Averages (EMAs), providing traders with insightful signals for potential market movements. ### Key Features: 1. **Candle Coloring**: - **Sweep + Cement Bullish Candles**: Highlighted in teal when the low of the current candle is lower than the previous candle, and the close is above the previous high. This indicates potential bullish momentum. - **Sweep + Cement Bearish Candles**: Marked in red when the high of the current candle is higher than the previous candle, and the close is below the previous low, signaling possible bearish pressure. 2. **Exponential Moving Averages (EMAs)**: - **EMA 0 (Default Length: 9)**: Provides short-term trend direction. - **EMA 1 (Default Length: 21)** and **EMA 2 (Default Length: 50)**: Offer insights into medium and long-term trends. - Customizable settings allow traders to adjust EMA lengths and colors based on their preferences. 3. **Trading Signals**: - **Buy Signal**: Triggered when a bullish Sweep + Cement candle forms, EMA 1 is above EMA 2, and the price closes above all EMAs. - **Sell Signal**: Activated with a bearish Sweep + Cement candle, EMA 1 below EMA 2, and the price closes below all EMAs. - Visual arrows on the chart indicate buy and sell opportunities. 4. **Alerts**: - Configurable alerts notify traders when the price touches any of the EMAs, ensuring you never miss critical levels. - Alerts for buy and sell signals keep you informed of potential entries and exits. ### How It Benefits Traders: This indicator is ideal for traders looking to identify and capitalize on market reversals and trend continuations. By integrating candle patterns with EMA analysis, it provides a comprehensive view of market dynamics, making it easier to spot high-probability trading opportunities. Whether you are a beginner or an experienced trader, the Sweep + Cement Candle Coloring with EMA Indicator can be a valuable addition to your trading toolkit, helping you make informed decisions with confidence. --- Feel free to adjust the content to better fit your audience or specific use case!
Pine Script™ indicator
by Hopdc
[blackcat] L1 Institutional Golden Bottom Indicator█ OVERVIEW The script " L1 Institutional Golden Bottom Indicator" is an indicator designed to identify potential institutional buying interest or a "golden bottom" in the market. It calculates a series of values based on price movements and plots them on a chart to help traders make informed decisions. █ LOGICAL FRAMEWORK The script is structured into several main sections: 1 — Function Definitions: Custom functions xsa and calculate_institutional_golden_bottom are defined. 2 — Input Parameters: The user can set a threshold value for institutional interest. 3 — Calculations: The script calculates various indicators and conditions, including the institutional buy signal. 4 — Plotting: The results of the calculations are plotted on the chart. 5 — Labeling: When a golden bottom is detected, a label is placed on the chart. The flow of data starts with the input parameters, proceeds through the calculation functions, and finally results in plotted outputs and labels. █ CUSTOM FUNCTIONS 1 — xsa(src, len, wei) • Purpose: To calculate a weighted moving average. • Parameters: – src: Source data (e.g., price). – len: Length of the moving average. – wei: Weighting factor. • Return Value: The calculated weighted moving average. 2 — calculate_institutional_golden_bottom(close, high, low, threshold) • Purpose: To determine the institutional golden bottom indicator. • Parameters: – close: Closing price. – high: Highest price. – low: Lowest price. – threshold: User-defined threshold for institutional interest. By tuning the threshold value the user can properly identify the institutional golden bottom of the instrument. So, I can say this parameter is used to tune the "sensitivity" of this indicator. • Return Value: An array containing the institutional indicator, golden bottom signal, and additional values (a1, b1, c1, d1). █ KEY POINTS AND TECHNIQUES • Weighted Moving Average (WMA): The xsa function implements a weighted moving average, which is useful for smoothing price data. • Crossover Detection: The script uses a crossover condition to detect when the institutional indicator crosses above the threshold, indicating a potential buying opportunity. • Conditional Logic: The script includes conditional statements to control the output of certain values only when specific conditions are met. • Plotting and Labeling: The script uses plot and label.new functions to visualize the indicator and highlight significant events on the chart. █ EXTENDED KNOWLEDGE AND APPLICATIONS • Modifications: The script could be enhanced by adding more customizable parameters, such as different lengths for the moving averages or additional conditions for the golden bottom signal. • Extensions: Similar techniques could be applied to other types of indicators, such as momentum oscillators or trend-following systems to identify market turning points. • Related Concepts: Understanding weighted moving averages, crossover signals, and conditional plotting in Pine Script would be beneficial for enhancing this script and applying similar logic to other trading strategies.
Pine Script™ indicator
by blackcat1402
9
Alternative Price [OmegaTools]The Alternative Price script is a sophisticated and flexible indicator designed to redefine how traders visualize and interpret price data. By offering multiple unique charting modes, robust customization options, and advanced features, this tool provides a comprehensive alternative to traditional price charts. It is particularly useful for identifying market trends, detecting patterns, and simplifying complex data into actionable insights. This script is highly versatile, allowing users to choose from five distinct charting modes: Candles, Line, Channel, Renko, and Bubbles. Each mode serves a unique purpose and presents price information in an innovative way. When using this script, it is strongly recommended to hide the platform’s default price candles or chart data. Doing so will eliminate redundancy and provide a clearer and more focused view of the alternative price visualization. The Candles mode offers a traditional candlestick charting style but with added flexibility. Users can choose to enable smoothed opens or smoothed closes, which adjust the way the open and close prices are calculated. When smoothed opens are enabled, the opening price is computed as the average of the actual open price and the closing prices of the previous two bars. This creates a more gradual representation of price transitions, particularly useful in markets prone to sudden spikes or irregularities. Similarly, smoothed closes modify the closing price by averaging it with the previous close, the high-low midpoint, and an exponential moving average of the high-low-close mean. This technique filters out noise, making trends and price momentum easier to identify. In the Line mode, the script displays a simple line chart that connects the smoothed closing prices. This mode is ideal for traders who prefer minimalism or need to focus on the overall trend without the distraction of individual bar details. The Channel mode builds upon this by plotting additional lines representing the highs and lows of each bar. The resulting visualization resembles a price corridor that helps identify support and resistance zones or price compression areas. The Renko mode introduces a more advanced and noise-filtering method of visualizing price movements. Renko charts, constructed using the ATR (Average True Range) as a baseline, display blocks that represent a specific price range. The script dynamically calculates the size of these blocks based on ATR, with separate thresholds for upward and downward movements. This makes Renko mode particularly effective for identifying sustained trends while ignoring minor price fluctuations. Additionally, the open and close values of Renko blocks can be smoothed to further refine the visualization. The Bubbles mode represents price activity using circles or bubbles whose size corresponds to relative volume. This mode provides a quick and intuitive way to assess market participation at different price levels. Larger bubbles indicate higher trading volumes, while smaller bubbles highlight periods of lower activity. This visualization is particularly valuable in understanding the relationship between price movements and market liquidity. The coloring of candles and other chart elements is a core feature of this script. Users can select between two color modes: Normal and Volume. In Normal mode, bullish candles are displayed in the user-defined bullish color, while bearish candles use the bearish color. Neutral elements, such as midpoints or undecided price movements, are shaded with a neutral color. In Volume mode, the candle colors are dynamically adjusted based on trading volume. A gradient color scale is applied, where the intensity of the bullish or bearish colors reflects the volume for that particular bar. This feature allows traders to visually identify periods of heightened activity and associate them with specific price movements. Engulfing patterns, a popular technical analysis tool, are automatically detected and marked on the chart when the corresponding setting is enabled. The script identifies long engulfing patterns, where the current bar's range completely encompasses the previous bar’s range and indicates a potential bullish reversal. Similarly, short engulfing patterns are identified where the current bar fully engulfs the previous bar in the opposite direction, suggesting a bearish reversal. These patterns are visually highlighted with circular markers to draw the trader’s attention. Each feature and mode is highly customizable. The colors for bullish, bearish, and neutral movements can be personalized, and the thresholds for patterns or smoothing can be fine-tuned to match specific trading strategies. The script's ability to toggle between various modes makes it adaptable to different market conditions and analysis preferences. In summary, the Alternative Price script is a comprehensive tool that redefines the way traders view price charts. By offering multiple visualization modes, customizable features, and advanced detection algorithms, it provides a powerful way to uncover market trends, volume relationships, and significant patterns. The recommendation to hide default chart elements ensures that the focus remains on this innovative tool, enhancing its usability and clarity. This script empowers traders to gain deeper insights into market behavior and make informed trading decisions, all while maintaining a clean and visually appealing chart layout. Keep in mind that some of the modes of this indicator might not reflect the actual closing price of the underlying asset, before opening a trade, check carefully the actual price!
Pine Script™ indicator
by OmegaTools
2
CDV Momentum WaveDescription: This indicator visualizes the Cumulative Delta Volume (CDV) as waves, providing traders with insights into the momentum and strength of buying and selling activity. By tracking the cumulative difference between buying and selling pressure, it highlights shifts in market sentiment with color-coded wave patterns. How to Use: Spot Momentum: Green waves signify strong buying pressure, while red waves indicate dominant selling pressure. Blue and orange waves mark transitions or weaker momentum. Trend Analysis: Persistent color and direction in waves reflect a strong trend, while frequent shifts may signal reversals or consolidation. Sensitivity Adjustment: Use the mul2 setting to fine-tune wave responsiveness for short-term or long-term analysis. Wave Position Adjustment: The osx setting adjusts the visual placement of the waves on the chart. By default (osx = 0), the waves are aligned directly with the candle data they are calculated from. Increasing osx shifts the waves forward. Decreasing osx shifts the waves backward. This tool helps traders detect momentum shifts, confirm trends, and understand volume dynamics in various market conditions.
Pine Script™ indicator
by farkasszilard
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.
Pine Script™ indicator
by akromyo
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).
Pine Script™ indicator
by akutsusho
21
Richs Market StructureThis Pine Script indicator, "Last Bullish High & Lowest Low Tracker with Timeframe Background and Fill", is designed to visually track bullish and bearish trends based on price action on the current chart and a user-defined timeframe. It provides dynamic line plotting, area fills, and background coloring to represent trend alignment between the current chart and the selected timeframe. Features and Functionalities Tracks Bullish Highs and Bearish Lows: The script identifies: Bullish High: The highest price reached after a bullish (green) candle. Bearish Low: The lowest price reached after a bearish (red) candle. It dynamically updates these levels based on the price movements. Line Plotting: Current Chart Lines: The Plotted Bullish High line (green/red) indicates the last bullish high. The Lowest Low line (green/red) indicates the last bearish low. Selected Timeframe Lines: A separate set of lines is plotted for the user-defined timeframe (e.g., daily, weekly): A Bullish High Line for the selected timeframe (lighter green). A Lowest Low Line for the selected timeframe (lighter red). Dynamic Area Fills: The area between the Plotted Bullish High and Lowest Low is filled: Green Fill: When both lines are green (indicating a bullish alignment). Red Fill: When both lines are red (indicating a bearish alignment). For the selected timeframe: The area between the timeframe-specific Bullish High and Lowest Low is similarly filled with lighter colors. Background Color Based on Timeframe Alignment: The background color represents the trend alignment on the selected timeframe: Green Background: When the timeframe’s Bullish High is rising and Lowest Low is rising (bullish trend). Red Background: When the timeframe’s Bullish High is falling and Lowest Low is falling (bearish trend). What It’s For This indicator is designed for traders who want to: Visualize Trends Across Timeframes: It helps identify when the current chart’s trend aligns with a higher timeframe trend (e.g., daily, weekly). Useful for multi-timeframe analysis. Spot Bullish and Bearish Trends: The color-coded lines and fills clearly show the dominant trend on both the current chart and the selected timeframe. Plan Trades Based on Trend Alignment: When the current chart and selected timeframe show the same trend: Both lines and fills turn green (bullish). Both lines and fills turn red (bearish). This alignment is a potential signal for entering long or short trades. Identify Reversals and Divergences: Divergence between the current chart and timeframe trends (e.g., green on one, red on the other) may indicate trend weakening or reversal. Visual Elements Lines: Solid lines (current chart): Represent the Plotted Bullish High and Lowest Low. Dashed/lighter lines (selected timeframe): Represent the timeframe-specific Bullish High and Lowest Low. Fills: Green/Red fills highlight trend zones: On the current chart (darker). On the selected timeframe (lighter). Background: The entire chart background turns green or red based on the selected timeframe’s trend alignment. Summary This indicator is ideal for traders who want a clear visual representation of price trends and multi-timeframe alignment. It simplifies trend-following strategies by providing: Easy-to-interpret fills and background colors. Clear bullish and bearish zones. Multi-timeframe trend confirmation.
Pine Script™ indicator
by pesat7900
High and Retracement Finder This Pine Script indicator, titled "High and Retracement Finder," is designed to identify significant highs and lows on a price chart based on a user-defined starting point and retracement threshold. It begins analysis from a manually set bar index and tracks the highest high until the price retraces by a specified percentage (retracement threshold). Once this retracement occurs, it switches focus to finding the lowest low. If the price surpasses the previous high during this phase, the cycle resets, and the script resumes tracking a new highest high. The script visually marks these significant highs and lows with arrows on the chart, helping traders identify potential turning points or retracements in the market.
Pine Script™ indicator
by mairakshay
Trend Speed Analyzer (Zeiierman)█ Overview The Trend Speed Analyzer by Zeiierman is designed to measure the strength and speed of market trends, providing traders with actionable insights into momentum dynamics. By combining a dynamic moving average with wave and speed analysis, it visually highlights shifts in trend direction, market strength, and potential reversals. This tool is ideal for identifying breakout opportunities, gauging trend consistency, and understanding the dominance of bullish or bearish forces over various timeframes. █ How It Works The indicator employs a Dynamic Moving Average (DMA) enhanced with an Accelerator Factor, allowing it to adapt dynamically to market conditions. The DMA is responsive to price changes, making it suitable for both long-term trends and short-term momentum analysis. Key components include: Trend Speed Analysis: Measures the speed of market movements, highlighting momentum shifts with visual cues. Wave Analysis: Tracks bullish and bearish wave sizes to determine market strength and bias. Normalized Speed Values: Ensures consistency across different market conditions by adjusting for volatility. ⚪ Average Wave and Max Wave These metrics analyze the size of bullish and bearish waves over a specified Lookback Period: Average Wave: This represents the mean size of bullish and bearish movements, helping traders gauge overall market strength. Max Wave: Highlights the largest movements within the period, identifying peak momentum during trend surges. ⚪ Current Wave Ratio This feature compares the current wave's size against historical data: Average Wave Ratio: Indicates if the current momentum exceeds historical averages. A value above 1 suggests the trend is gaining strength. Max Wave Ratio: Shows whether the current wave surpasses previous peak movements, signaling potential breakouts or trend accelerations. ⚪ Dominance Dominance metrics reveal whether bulls or bears have controlled the market during the Lookback Period: Average Dominance: Compares the net difference between average bullish and bearish wave sizes. Max Dominance: Highlights which side had the stronger individual waves, indicating key power shifts in market dynamics. Positive values suggest bullish dominance, while negative values point to bearish control. This helps traders confirm trend direction or anticipate reversals. █ How to Use Identify Trends: Leverage the color-coded candlesticks and dynamic trend line to assess the overall market direction with clarity. Monitor Momentum: Use the Trend Speed histogram to track changes in momentum, identifying periods of acceleration or deceleration. Analyze Waves: Compare the sizes of bullish and bearish waves to identify the prevailing market bias and detect potential shifts in sentiment. Additionally, fluctuations in Current Wave ratio values should be monitored as early indicators of possible trend reversals. Evaluate Dominance: Utilize dominance metrics to confirm the strength and direction of the current trend. █ Settings Maximum Length: Sets the smoothing of the trend line. Accelerator Multiplier: Adjusts sensitivity to price changes. Lookback Period: Defines the range for wave calculations. Enable Table: Displays statistical metrics for in-depth analysis. Enable Candles: Activates color-coded candlesticks. Collection Period: Normalizes trend speed values for better accuracy. Start Date: Limits calculations to a specific timeframe. Timer Option: Choose between using all available data or starting from a custom date. ----------------- 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!
Pine Script™ indicator
by Zeiierman
9
3 Drive Harmonic Pattern [TradingFinder] Three Drive Reversal🔵 Introduction The Three Drive harmonic pattern closely resembles other price structures such as Wedge Pattern and Three Push Pattern, yet it stands out due to its precise use of Fibonacci ratios and symmetrical price movements. This pattern comprises three consecutive and symmetrical price drives, each validated by key Fibonacci ratios (1.27 and 1.618), which help identify critical Potential Reversal Zones (PRZ). Unlike the Wedge, which relies on converging trend lines and can indicate either continuation or reversal, and the Three Push, which lacks defined Fibonacci ratios and symmetry, the Three Drive pattern defines PRZ with greater accuracy, providing traders with high-probability trading opportunities. This pattern appears in both bullish and bearish trends. After the completion of the third drive (Drive 3), it signals the market's readiness to reverse direction. The PRZ in this pattern serves as a crucial zone where price is highly likely to reverse, offering a strategic point for entering or exiting trades. Professional traders utilize the Three Drive pattern and PRZ as essential tools for analyzing and capitalizing on potential market reversals. Bullish Pattern : Bearish Pattern : 🔵 How to Use The Three Drive harmonic pattern is an effective tool for identifying potential reversal points in the market. By utilizing Fibonacci extension levels (1.27 and 1.618) and focusing on the pattern’s symmetry, traders can pinpoint Potential Reversal Zones (PRZ) where the price is likely to change direction. This pattern works in both bearish and bullish scenarios, each with distinct characteristics and trading opportunities. 🟣 Bullish Three Drive Pattern The bullish Three Drive pattern develops during a downtrend, indicating a potential reversal to the upside. Similar to its bearish counterpart, this pattern features three consecutive downward price movements (drives) with retracements in between. The third drive concludes within the PRZ, which serves as a strong support zone where the price is expected to reverse upwards. The first drive begins with a downward movement, followed by a retracement to the 0.618 Fibonacci level. The second drive continues downward to reach a 1.27 or 1.618 Fibonacci extension of the retracement. Finally, the third drive aligns with the PRZ, where a confluence of Fibonacci levels creates a high-probability support zone. In the PRZ, traders look for bullish confirmation signals such as bullish candlestick patterns (e.g., bullish engulfing or pin bars) or increasing trading volume. Once confirmation is observed, the PRZ becomes an ideal entry point for a buy position. Stop-loss orders are placed slightly below the PRZ to minimize risk, while take-profit targets are set at key resistance levels or Fibonacci retracement levels. 🟣 Bearish Three Drive Pattern The bearish Three Drive pattern forms during an uptrend, signaling a potential reversal to the downside. This pattern consists of three consecutive upward price movements (drives) and intermediate retracements. Each drive aligns with Fibonacci extension levels, and the third drive ends within the PRZ, indicating a high probability of a bearish reversal. In the first drive, the price moves upward and then retraces to approximately the 0.618 Fibonacci retracement level, forming the base for the second drive. The second drive then extends upward to the 1.27 or 1.618 Fibonacci extension of the preceding retracement. This process repeats for the third drive, which reaches the PRZ, typically defined by the convergence of Fibonacci levels from previous drives. Once the PRZ is identified, traders look for confirmation signals such as bearish candlestick patterns (e.g., bearish engulfing or pin bars) or declining trading volume. If confirmation is present, the PRZ becomes an optimal zone for entering a sell position. Stop-loss levels are typically placed slightly above the PRZ to protect against pattern failure, and take-profit targets are set at key support levels or Fibonacci retracement levels of the overall structure. 🟣 Three Drive Vs Wedge Pattern Vs 3 Push pattern The Three Drive, Wedge, and Three Push patterns are all used to identify potential price reversal points, but they differ significantly in structure and application. The Three Drive pattern is based on three consecutive and symmetrical price movements, validated by precise Fibonacci ratios (1.27 and 1.618), to define Potential Reversal Zones (PRZ). In contrast, the Wedge pattern relies on converging trend lines and does not require Fibonacci ratios; it can act as either a reversal or continuation pattern. Meanwhile, the Three Push pattern shares similarities with Three Drive but lacks precise symmetry and Fibonacci-based validation. Instead of a PRZ, Three Push focuses on identifying areas of support and resistance, often signaling weakening momentum in the current trend. Among these, the Three Drive pattern is more reliable for pinpointing high-probability reversal zones due to its strict Fibonacci-based and symmetrical structure. 🔵 Setting 🟣 Logical Setting ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition. Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern. Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk. Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period. 🟣 Genaral Setting Show : Enter "On" to display the template and "Off" to not display the template. Color : Enter the desired color to draw the pattern in this parameter. LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness. LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries. 🟣 Alert Setting Alert : 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 Three Drive pattern is a highly effective harmonic tool for identifying potential reversal points in the market. By leveraging its symmetrical structure and precise Fibonacci ratios (1.27 and 1.618), this pattern provides traders with clear entry and exit signals, enhancing the accuracy of their trades. Whether in bullish or bearish scenarios, the identification of the Potential Reversal Zone (PRZ) serves as a critical aspect of this pattern, enabling traders to anticipate price movements with greater confidence. Compared to similar patterns like Wedge and Three Push, the Three Drive pattern stands out for its stringent reliance on Fibonacci levels and symmetrical price movements, making it a more robust choice for forecasting reversals. However, as with any technical analysis tool, its effectiveness increases when combined with confirmation signals, such as candlestick patterns, volume analysis, and broader market context. Mastering the Three Drive pattern requires practice and attention to detail, especially in accurately defining the PRZ and ensuring the pattern adheres to its criteria. Traders who consistently apply this pattern as part of a comprehensive trading strategy can capitalize on high-probability opportunities and improve their overall performance in the market.
Pine Script™ indicator
by TFlab
VD Zig Zag with SMAIntroduction The VD Zig Zag with SMA indicator is a powerful tool designed to streamline technical analysis by combining Zig Zag swing lines with a Simple Moving Average (SMA). It offers traders a clear and intuitive way to analyze price trends, market structure, and potential reversals, all within a customizable framework. Definition The Zig Zag indicator is a trend-following tool that highlights significant price movements by filtering out smaller fluctuations. It visually connects swing highs and lows to reveal the underlying market structure. When paired with an SMA, it provides an additional layer of trend confirmation, helping traders align their strategies with market momentum. Calculations Zig Zag Logic: Swing highs and lows are determined using a user-defined length parameter. The highest and lowest points within the specified range are identified using the ta.highest() and ta.lowest() functions. Zig Zag lines dynamically connect these swing points to visually map price movements. SMA Logic: The SMA is calculated using the closing prices over a user-defined period. It smooths out price action to provide a clearer view of the prevailing trend. The indicator allows traders to adjust the Zig Zag length and SMA period to suit their preferred trading timeframe and strategy. Takeaways Enhanced Trend Analysis: The Zig Zag lines clearly define the market's structural highs and lows, helping traders identify trends and reversals. Customizable Parameters: Both the swing length and SMA period can be tailored for short-term or long-term trading strategies. Visual Clarity: By filtering out noise, the indicator simplifies chart analysis and enables better decision-making. Multi-Timeframe Support: Adapts seamlessly to the chart's timeframe, ensuring usability across all trading horizons. Limitations Lagging Nature: As with any indicator, the Zig Zag and SMA components are reactive and may lag during sudden price movements. Sensitivity to Parameters: Improper parameter settings can lead to overfitting, where the indicator reacts too sensitively or misses significant trends. Does Not Predict: This indicator identifies trends and structure but does not provide forward-looking predictions. Summary The VD Zig Zag with SMA indicator is a versatile and easy-to-use tool that combines the strengths of Zig Zag swing analysis and moving average trends. It helps traders filter market noise, visualize structural patterns, and confirm trends with greater confidence. While it comes with limitations inherent to all technical tools, its customizable features and multi-timeframe adaptability make it an excellent addition to any trader’s toolkit. Additional Features Have an idea or a feature you'd like to see added? Feel free to reach out or share your suggestions here—I’m always open to updates!
Pine Script™ indicator
by vishaldhawan82