Power Play Signal Indicator [Masky18]

22 de fev.

Power Play Signal Indicator [Masky18]

The Power Play Signal Indicator is a sophisticated custom trading strategy designed to identify high-probability breakout and breakdown opportunities by combining consolidation detection, trend alignment, volume analysis, and relative strength ranking. Unlike simple mashups of existing indicators, this script integrates multiple technical concepts into a cohesive strategy that helps traders capitalize on market momentum with precision.

What Makes This Indicator Unique?

The PowerPlay Signal Indicator is not just a combination of existing indicators; it is a custom-built strategy that uses original logic to filter out low-probability setups and focus on high-quality trading opportunities. Here’s how it works:

Consolidation Detection:

The script identifies consolidation zones by analyzing price action over a user-defined period (default: 6 bars). It calculates the high, low, and midpoint of the consolidation range and ensures the price stays within a specified percentage range (default: 13%).

Consolidations are classified as Tight, Loose, or Okay, helping traders gauge the strength of the potential breakout or breakdown.

Breakout & Breakdown Logic:

Breakouts and breakdowns are confirmed using a combination of:

• Price Action: The script checks if the price closes above the consolidation high (breakout) or below the consolidation low (breakdown).
  
• Volume Analysis: A significant volume spike (default: 20% increase) is required to confirm the move.
  
• MACD & Moving Averages: The script uses MACD and moving averages (50-day and 200-day) to ensure the breakout/breakdown aligns with the prevailing trend.
  

Trend Alignment:

The script ensures trades are aligned with the long-term trend by using:

• 50-day SMA and 200-day SMA to confirm uptrends or downtrends.
  
• 150-day SMA as an additional filter to ensure the trend is strong.
  
• 52-week high/low conditions to ensure the price is in a favorable position relative to its historical range.
  

Relative Strength Ranking:

The script compares the asset’s performance against a benchmark asset (e.g., SPY) to ensure it is outperforming the market. This is done using a customizable Relative Strength (RS) Threshold (default: 70).

Golden Candle Signals:

For high-probability setups, the script identifies Golden Candles—strong breakout or breakdown candles with:

• Large price movement (default: 7.5% to 12.5% candle size).
  
• High volume (default: 2x the average consolidation volume).
  
• Alignment with MACD and moving averages.
  

Risk Management:

The script provides stop loss, trailing stop, and take profit levels based on:

• ATR (Average True Range): Dynamic stop loss levels are calculated using ATR (default: 14-period ATR with a 2x multiplier).
  
• Trailing Stop Percentage: User-defined trailing stop (default: 2%).
  
• Take Profit Percentage: User-defined take profit (default: 5%).
  

Performance Tracking:

The script includes a Performance Table that tracks:

• Total breakouts and breakdowns.
  
• Successful and failed trades.
  
• Win rates for breakouts and breakdowns.
  
• Golden candle signals.
  

How Does It Work?

The PowerPlay Signal Indicator combines the following key components to generate signals:

Consolidation Detection:

• The script calculates the high, low, and midpoint of the consolidation range over a user-defined period.
  
• It ensures the price stays within a specified percentage range (default: 13%) to confirm consolidation.
  

Breakout/Breakdown Confirmation:

A breakout is confirmed when:

• The price closes above the consolidation high.
  
• Volume increases by at least 20%.
  
• MACD is positive and above the signal line.
  
• The price is above the 50-day and 200-day SMAs.
  

A breakdown is confirmed when:

• The price closes below the consolidation low.
  
• Volume increases by at least 20%.
  
• MACD is negative and below the signal line.
  
• The price is below the 50-day and 200-day SMAs.
  

Golden Candle Signals:

Golden Candles are identified when:

• The candle size is between 7.5% and 12.5%.
  
• Volume is at least 2x the average consolidation volume.
  
• The candle aligns with the prevailing trend and MACD.
  

Risk Management:

• Stop loss levels are calculated using ATR (default: 14-period ATR with a 2x multiplier).
  
• Trailing stop and take profit levels are based on user-defined percentages.
  

How to Use the Indicator

Input Parameters:

• Consolidation Periods: Set the number of bars to analyze for consolidation (default: 6).
  
• Maximum Consolidation Range: Define the maximum percentage range for consolidation (default: 13%).
  
• Stop Loss Factor: Adjust the stop loss multiplier based on the midpoint of the consolidation range (default: 0.985).
  
• RS Threshold: Set the relative strength threshold for trend alignment (default: 70).
  
• Comparison Asset: Enable comparison with a benchmark asset (e.g., SPY) to ensure the asset is outperforming the market.
  
• Trailing Stop Percentage: Set the trailing stop percentage (default: 2%).
  
• Take Profit Percentage: Set the take profit percentage (default: 5%).
  
• Time Exit Bars: Define the maximum number of bars to hold a trade (default: 10).
  

Interpreting Signals:

• Breakout Signal: A green label ("BO") appears when a breakout is detected.
  
• Breakdown Signal: A red label ("BD") appears when a breakdown is detected.
  
• Golden Candle Signal: A gold medal icon (🥇) appears for high-probability setups.
  

Performance Table:

The performance table displays the number of trades, successful trades, failed trades, and win rates for breakouts and breakdowns.

Alerts:

Enable alerts for breakouts, breakdowns, and golden candles to stay informed about potential trading opportunities.

Why Choose the PowerPlay Signal Indicator?

• Original Logic: Combines consolidation detection, trend alignment, volume analysis, and relative strength ranking into a unique strategy.
  
• High-Probability Signals: Focuses on high-quality setups with strong volume and trend alignment.
  
• Risk Management: Built-in stop loss, trailing stop, and take profit options help you manage risk effectively.
  
• Performance Tracking: Tracks trade outcomes and win rates to help you refine your strategy.
  
• Customizable: Fully adjustable inputs allow you to adapt the indicator to your trading style and market conditions.
  

22 de fev.

Notas de Lançamento

Power Play Signal Indicator [Masky18]

The Power Play Signal Indicator is a sophisticated trading tool designed to identify high-probability breakout and breakdown opportunities by combining consolidation detection, trend alignment, volume analysis, and relative strength ranking. Unlike simple mashups of existing indicators, this script integrates multiple technical concepts into a cohesive strategy that helps traders capitalize on market momentum with precision.

What Makes This Indicator Unique?

The PowerPlay Signal Indicator is not just a combination of existing indicators; it is a custom-built strategy that uses original logic to filter out low-probability setups and focus on high-quality trading opportunities. Here’s how it works:

Consolidation Detection:

The script identifies consolidation zones by analyzing price action over a user-defined period (default: 6 bars). It calculates the high, low, and midpoint of the consolidation range and ensures the price stays within a specified percentage range (default: 13%).

Consolidations are classified as Tight, Loose, or Okay, helping traders gauge the strength of the potential breakout or breakdown.

Breakout & Breakdown Logic:

Breakouts and breakdowns are confirmed using a combination of:

• Price Action: The script checks if the price closes above the consolidation high (breakout) or below the consolidation low (breakdown).
  
• Volume Analysis: A significant volume spike (default: 20% increase) is required to confirm the move.
  
• MACD & Moving Averages: The script uses MACD and moving averages (50-day and 200-day) to ensure the breakout/breakdown aligns with the prevailing trend.
  

Trend Alignment:

The script ensures trades are aligned with the long-term trend by using:

• 50-day SMA and 200-day SMA to confirm uptrends or downtrends.
  
• 150-day SMA as an additional filter to ensure the trend is strong.
  
• 52-week high/low conditions to ensure the price is in a favorable position relative to its historical range.
  

Relative Strength Ranking:

The script compares the asset’s performance against a benchmark asset (e.g., SPY) to ensure it is outperforming the market. This is done using a customizable Relative Strength (RS) Threshold (default: 70).

Golden Candle Signals:

For high-probability setups, the script identifies Golden Candles—strong breakout or breakdown candles with:

• Large price movement (default: 7.5% to 12.5% candle size).
  
• High volume (default: 2x the average consolidation volume).
  
• Alignment with MACD and moving averages.
  

Risk Management:

The script provides stop loss, trailing stop, and take profit levels based on:

• ATR (Average True Range): Dynamic stop loss levels are calculated using ATR (default: 14-period ATR with a 2x multiplier).
  
• Trailing Stop Percentage: User-defined trailing stop (default: 2%).
  
• Take Profit Percentage: User-defined take profit (default: 5%).
  

Performance Tracking:

The script includes a Performance Table that tracks:

• Total breakouts and breakdowns.
  
• Successful and failed trades.
  
• Win rates for breakouts and breakdowns.
  
• Golden candle signals.
  

How Does It Work?

The PowerPlay Signal Indicator combines the following key components to generate signals:

Consolidation Detection:

• The script calculates the high, low, and midpoint of the consolidation range over a user-defined period.
  
• It ensures the price stays within a specified percentage range (default: 13%) to confirm consolidation.
  

Breakout/Breakdown Confirmation:

A breakout is confirmed when:

• The price closes above the consolidation high.
  
• Volume increases by at least 20%.
  
• MACD is positive and above the signal line.
  
• The price is above the 50-day and 200-day SMAs.
  

A breakdown is confirmed when:

• The price closes below the consolidation low.
  
• Volume increases by at least 20%.
  
• MACD is negative and below the signal line.
  
• The price is below the 50-day and 200-day SMAs.
  

Golden Candle Signals:

Golden Candles are identified when:

• The candle size is between 7.5% and 12.5%.
  
• Volume is at least 2x the average consolidation volume.
  
• The candle aligns with the prevailing trend and MACD.
  

Risk Management:

• Stop loss levels are calculated using ATR (default: 14-period ATR with a 2x multiplier).
  
• Trailing stop and take profit levels are based on user-defined percentages.
  

How to Use the Indicator

Input Parameters:

• Consolidation Periods: Set the number of bars to analyze for consolidation (default: 6).
  
• Maximum Consolidation Range: Define the maximum percentage range for consolidation (default: 13%).
  
• Stop Loss Factor: Adjust the stop loss multiplier based on the midpoint of the consolidation range (default: 0.985).
  
• RS Threshold: Set the relative strength threshold for trend alignment (default: 70).
  
• Comparison Asset: Enable comparison with a benchmark asset (e.g., SPY) to ensure the asset is outperforming the market.
  
• Trailing Stop Percentage: Set the trailing stop percentage (default: 2%).
  
• Take Profit Percentage: Set the take profit percentage (default: 5%).
  
• Time Exit Bars: Define the maximum number of bars to hold a trade (default: 10).
  

Interpreting Signals:

• Breakout Signal: A green label ("BO") appears when a breakout is detected.
  
• Breakdown Signal: A red label ("BD") appears when a breakdown is detected.
  
• Golden Candle Signal: A gold medal icon (🥇) appears for high-probability setups.
  

Performance Table:

The performance table displays the number of trades, successful trades, failed trades, and win rates for breakouts and breakdowns.

Alerts:

Enable alerts for breakouts, breakdowns, and golden candles to stay informed about potential trading opportunities.

Why Choose the PowerPlay Signal Indicator?

• Original Logic: Combines consolidation detection, trend alignment, volume analysis, and relative strength ranking into a unique strategy.
  
• High-Probability Signals: Focuses on high-quality setups with strong volume and trend alignment.
  
• Risk Management: Built-in stop loss, trailing stop, and take profit options help you manage risk effectively.
  
• Performance Tracking: Tracks trade outcomes and win rates to help you refine your strategy.
  
• Customizable: Fully adjustable inputs allow you to adapt the indicator to your trading style and market conditions.