[blackcat] L2 Swing Oscillator Swing Meter

8 de out. de 2020

Level: 2

Background

Swing trading is a type of trading aimed at making short to medium term profits from a trading pair over a period of a few days to several weeks. Swing traders mainly use technical analysis to look for trading opportunities. In addition to analyzing price trends and patterns, these traders can also use fundamental analysis.

Function

[blackcat] L2 Swing Oscillator Swing Meter is an oscillator based on breakouts. Another important feature of it is the swing meter, which confirms the top or bottom's confidence level with different color candles. The higher of the candles stack up, the higher confidence level is indicated.


Key Signal

absolutebot ---> absolute bottom with very high confidence level
ltbot ---> long term bottom with high confidence level
mtbot ---> middle term bottom with moderate confidence level
stbot ---> short term bottom with low confidence level
absolutetop ---> absolute top with very high confidence level
lttop ---> long term top with high confidence level
mttop ---> middle term top with moderate confidence level
sttop ---> short term top with low confidence level
fastline ---> oscillator fast line
slowline ---> oscillator slow line

Pros and Cons

Pros:

1. reconfigurable swing oscillator based on breakouts
2. swing meter can confirm/validate the bottom and top signal


Cons:

1. not appliable with trading pairs without volume information
2. small time frame may not trigger swing meter function

Remarks

This is a simple but very comprehensive technical indicator

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

27 de mar.

Notas de Lançamento

OVERVIEW
The "[blackcat] L2 Swing Oscillator Swing Meter" is a technical analysis tool designed to identify overbought/oversold market conditions through price-volume relationship calculations. It provides visual swing line signals and trading alerts based on adaptive thresholds.

FEATURES
• Dual moving average system: Fast (white) & Slow (yellow) swing lines
• Adaptive threshold detection via:

Volume profile weighted calculation
Price normalization algorithm • Interactive alert zones: • Fuchsia critical zone (>90) • Red warning zone (80-90) • Yellow neutral zone (20-80) • Lime bullish zone (<20) • Buy/Sell signal markers with dynamic colors: ✓ Green up-pointing arrows for bottoms ✓ Magenta down-pointing arrows for tops
HOW TO USE

Configure parameters:

Lookback Period 1 (default 6): Base cycle window
Lookback Period 2 (default 5): Smoothing parameter
Interpret readings:

Values between 20-80 indicate normal ranges
Crossings above/below these levels trigger warnings/critical states
Bullish divergence = rising prices with falling oscillator
Trade signals occur when:
→ Fast line crosses above slow line below 40 → BUY signal
→ Fast line crosses below slow line above 60 → SELL signal

LIMITATIONS
• High volatility periods may cause false signals due to rapid trend reversals
• Parameter optimization required for different timeframes/assets
• Not recommended as standalone indicator during news events