Volume Exhaustion [AlgoAlpha]Introducing the Volume Exhaustion by AlgoAlpha, is an innovative tool that aims to identify potential exhaustion or peaks in trading volume , which can be a key indicator for reversals or continuations in market trends 🔶.
Key Features:
Signal Plotting : A special feature is the plotting of 'Release' signals, marked by orange diamonds, indicating points where the exhaustion index crosses under its previous value and is above a certain boundary. This could signify critical market points 🚨.
Calculation Length Customization : Users can adjust the calculation and Signal lengths to suit their trading style, allowing for flexibility in analysis over different time periods. ☝️
len = input(50, "Calculation Length")
len2 = input(8, "Signal Length")
Visual Appeal : The script offers customizable colors (col for the indicator and col1 for the background) enhancing the visual clarity and user experience 💡.
col = input.color(color.white, "Indicator Color")
col1 = input.color(color.gray, "Background Color")
Advanced Volume Processing : At its core, the script utilizes a combination of Hull Moving Average (HMA) and Exponential Moving Average (EMA) applied to the volume data. This sophisticated approach helps in smoothing out the volume data and reducing lag.
sv = ta.hma(volume, len)
ssv = ta.hma(sv, len)
Volume Exhaustion Detection : The script calculates the difference between the volume and its smoothed version, normalizing this value to create an exhaustion index (fff). Positive values of this index suggest potential volume exhaustion.
f = sv-ssv
ff = (f) / (ta.ema(ta.highest(f, len) - ta.lowest(f, len), len)) * 100
fff = ff > 0 ? ff : 0
Boundary and Zero Line : The script includes a boundary line (boundary) and a zero line (zero), with the area between them filled for enhanced visual interpretation. This helps in assessing the relative position of the exhaustion index.
Customizable Background : The script colors the background of the chart for better readability and to distinguish the indicator’s area clearly.
Overall, Volume Exhaustion is designed for traders who focus on volume analysis. It provides a unique perspective on volume trends and potential exhaustion points, which can be crucial for making informed trading decisions. This script is a valuable addition for traders looking to enhance their trading experience with advanced volume analysis tools.
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Liquidity Weighted Moving Averages [AlgoAlpha]Description:
The Liquidity Weighted Moving Averages by AlgoAlpha is a unique approach to identifying underlying trends in the market by looking at candle bars with the highest level of liquidity. This script offers a modified version of the classical MA crossover indicator that aims to be less noisy by using liquidity to determine the true fair value of price and where it should place more emphasis on when calculating the average.
Rationale:
It is common knowledge that liquidity makes it harder for market participants to move the price of assets, using this logic, we can determine the coincident liquidity of each bar by looking at the volume divided by the distance between the opening and closing price of that bar. If there is a higher volume but the opening and closing prices are near each other, this means that there was a high level of liquidity in that bar. We then use standard deviations to filter out high spikes of liquidity and record the closing prices on those bars. An average is then applied to these recorded prices only instead of taking the average of every single bar to avoid including outliers in the data processing.
Key features:
Customizable:
Fast Length - the period of the fast-moving average
Slow Length - the period of the slow-moving average
Outlier Threshold Length - the period of the outlier processing algorithm to detect spikes in liquidity
Significant Noise reduction from outliers:
Alpha Schaff [AlgoAlpha]Description:
The Alpha Schaff indicator is a proprietary technical analysis tool that incorporates a modified version of the Schaff Trend Cycle (STC) to generate trading signals. The indicator is designed to identify potential overbought and oversold conditions in the market. It utilizes a combination of exponential moving averages (EMAs) and price volatility to generate trading signals. The plot of the indicator is derived from the opening price adjusted by a factor that depends on the Alpha Schaff value. A color scheme is used to indicate whether the current value is higher or lower than the previous value.
What is Alpha Schaff?:
Alpha Schaff is a technical indicator used in trading to identify potential trend reversals and confirm the strength of a current trend. It combines multiple moving averages and oscillators to generate buy and sell signals. Traders use Alpha Schaff to make informed decisions about entering or exiting positions based on its indications of trend momentum and market conditions.
Calculation:
The Alpha Schaff indicator calculates the difference between fast and slow EMAs based on the specified input lengths. It then measures the highest and lowest values of the difference over a defined sensitivity period. The indicator normalizes these values to a percentage scale to provide insights into the current market conditions.
How to use it?:
Monitor the color of the indicator line. A change in color indicates a potential trend reversal. For example, a switch from white to a purple color suggests a possible bullish trend, while a switch from a purple color to white indicates a potential bearish trend. Points of reversal can also be indicated by distinctive arrows pointing upwards or downward as well as visualized in bullish/bearish colors. The Distance between the indicator plot and the source can be interpreted as a measurement of price volatility. The script includes alert conditions that trigger when specific criteria are met. These alerts can notify users of potential buying or selling opportunities based on the indicator's signals.
Utility:
The Alpha Schaff is a trend-following indicator suitable for traders operating in trending markets. It offers clear and precise signals that provide valuable insights into bullish or bearish price movements. Additionally, this indicator stands out by incorporating distinctive arrows, indicating potential retracement points and allowing traders to anticipate mean reversion.
Originality:
The Alpha Schaff indicator, developed by AlgoAlpha introduces a proprietary modification to the Schaff Trend Cycle (STC) by incorporating multiple moving averages and oscillators. While the concept of the Schaff Trend Cycle exists, the specific implementation and combination of elements in the Alpha vSchaff indicator are unique to this tool. The inclusion of color schemes, arrow indicators, and volatility measurements sets it apart from other technical analysis indicators. Traders can benefit from its originality by utilizing its distinctive features to make more informed trading decisions in trending markets.
Amazing Oscillator (AO) [Algoalpha]Description:
Introducing the Amazing Oscillator indicator by Algoalpha, a versatile tool designed to help traders identify potential trend shifts and market turning points. This indicator combines the power of the Awesome Oscillator (AO) and the Relative Strength Index (RSI) to create a new indicator that provides valuable insights into market momentum and potential trade opportunities.
Key Features:
Customizable Parameters: The indicator allows you to customize the period of the RSI calculations to fine-tune the indicator's responsiveness.
Visual Clarity: The indicator uses user-defined colors to visually represent upward and downward movements. You can select your preferred colors for both bullish and bearish signals, making it easy to spot potential trade setups.
AO and RSI Integration: The script combines the AO and RSI indicators to provide a comprehensive view of market conditions. The RSI is applied to the AO, which results in a standardized as well as a less noisy version of the Awesome Oscillator. This makes the indicator capable of pointing out overbought or oversold conditions as well as giving fewer false signals
Signal Plots: The indicator plots key levels on the chart, including the RSI threshold(Shifted down by 50) at 30 and -30. These levels are often used by traders to identify potential trend reversal points.
Signal Alerts: For added convenience, the indicator includes "x" markers to signal potential buy (green "x") and sell (red "x") opportunities based on RSI crossovers with the -30 and 30 levels. These alerts can help traders quickly identify potential entry and exit points.
Trend Flow Profile [AlgoAlpha]Description:
The "Trend Flow Profile" indicator is a powerful tool designed to analyze and interpret the underlying trends and reversals in a financial market. It combines the concepts of Order Flow and Rate of Change (ROC) to provide valuable insights into market dynamics, momentum, and potential trade opportunities. By integrating these two components, the indicator offers a comprehensive view of market sentiment and price movements, facilitating informed trading decisions.
Rationale:
The combination of Order Flow and ROC in the "Trend Flow Profile" indicator stems from the recognition that both factors play critical roles in understanding market behavior. Order Flow represents the net buying or selling pressure in the market, while ROC measures the rate at which prices change. By merging these elements, the indicator captures the interplay between market participants' actions and the momentum of price movements, enabling traders to identify trends, spot reversals, and gauge the strength of price acceleration or deceleration.
Calculation:
The Order Flow component is computed by summing the volume when prices move up and subtracting the volume when prices move down. This cumulative measure reflects the overall order imbalance in the market, providing insights into the dominant buying or selling pressure.
The ROC component calculates the percentage change in price over a given period. It compares the current price to a previous price and expresses the change as a percentage. This measurement indicates the velocity and direction of price movement, allowing traders to assess the market's momentum.
How to Use It?
The "Trend Flow Profile" indicator offers valuable information to traders for making informed trading decisions. It enables the identification of underlying trends and potential reversals, providing a comprehensive view of market sentiment and momentum. Here are some key ways to utilize the indicator:
Spotting Trends: The indicator helps identify the prevailing market trend, whether bullish or bearish. A consistent positive (green) histogram indicates a strong uptrend, while a consistent negative (red) histogram suggests a robust downtrend.
Reversal Signals: Reversal patterns can be identified when the histogram changes color, transitioning from positive to negative (or vice versa). These reversals can signify potential turning points in the market, highlighting opportunities for counter-trend trades.
Momentum Assessment: By observing the width and intensity of the histogram, traders can assess the acceleration or deceleration of price momentum. A wider histogram suggests strong momentum, while a narrower histogram indicates a potential slowdown.
Utility:
The "Trend Flow Profile" indicator serves as a valuable tool for traders, providing several benefits. Traders can easily identify the prevailing market trend, enabling them to align their trading strategies with the dominant direction of the market. The indicator also helps spot potential reversals, allowing traders to anticipate market turning points and capture counter-trend opportunities. Additionally, the green and red histogram colors provide visual cues to determine the optimal duration of a long or short position. Following the green histogram signals when in a long position and the red histogram signals when in a short position can assist traders in managing their trades effectively. Moreover, the width and intensity of the histogram offer insights into the acceleration or deceleration of momentum. Traders can gauge the strength of price movements and adjust their trading strategies accordingly. By leveraging the "Trend Flow Profile" indicator, traders gain a comprehensive understanding of market dynamics, which enhances their decision-making and improves their overall trading outcomes.
Bollinger Bands Percentile + Stdev Channels (BBPct) [AlgoAlpha]Description:
The "Bollinger Bands Percentile (BBPct) + STD Channels" mean reversion indicator, developed by AlgoApha, is a technical analysis tool designed to analyze price positions using Bollinger Bands and Standard Deviation Channels (STDC). The combination of these two indicators reinforces a stronger reversal signal. BBPct calculates the percentile rank of the price's standard deviation relative to a specified lookback period. Standard deviation channels operate by utilizing a moving average as the central line, with upper and lower lines equidistant from the average based on the market's volatility, helping to identify potential price boundaries and deviations.
How it Works:
The BBPct indicator utilizes Bollinger Bands, which consist of a moving average (basis) and upper and lower bands based on a specified standard deviation multiplier. By default, it uses a 20-period moving average and a standard deviation multiplier of 2. The upper band is calculated by adding the basis to the standard deviation multiplied by the multiplier, while the lower band is calculated by subtracting the same value. The BBPct indicator calculates the position of the current price between the lower and upper Bollinger Bands as a percentile value. It determines this position by comparing the price's distance from the lower band to the overall range between the upper and lower bands. A value of 0 indicates that the price is at the lower band, while a value of 100 indicates that the price is at the upper band. The indicator also includes an optional Bollinger Band standard deviation percentage (%Stdev) histogram, representing the deviation of the current price from the moving average as a percentage of the price itself.
Standard deviation channels, also known as volatility channels, aid in identifying potential buying and selling opportunities while minimizing unfavorable trades. These channels are constructed by two lines that run parallel to a moving average. The separation between these lines is determined by the market's volatility, represented by standard deviation. By designating upper and lower channel lines, the channels demarcate the borders between typical and atypical price movements. Consequently, when the market's price falls below the lower channel line, it suggests undervaluation, whereas prices surpassing the upper channel line indicate overvaluation.
Signals
The chart displays potential reversal points through the use of red and green arrows. A red arrow indicates a potential bearish retracement, signaling a possible downward movement, while a green arrow represents a potential pullback to the positive, suggesting a potential upward movement. These signals are generated only when both the BBPct (Bollinger Bands Percentage) and the STDC (Standard Deviation Channel) indicators align with bullish or bearish conditions. Consequently, traders might consider opening long positions when the green arrow appears and short positions when the red arrow is plotted.
Usage:
This indicator can be utilized by traders and investors to effectively identify pullbacks, reversals, and mean regression, thereby enhancing their trading opportunities. Notably, extreme values of the BBPct, such as below -5 or above 105, indicate oversold or overbought conditions, respectively. Moreover, the presence of extreme STDC zones occurs when prices fall below the lower channel line or cross above the upper channel line. Traders can leverage this information as a mean reversion tool by identifying instances of peak overbought and oversold values. These distinctive characteristics facilitate the identification of potential entry and exit points, thus augmenting trading decisions and enhancing market analysis.
The indicator's parameters, such as the length of the moving average, the data source, and the standard deviation multiplier, can be customized to align with individual trading strategies and preferences.
Originality:
The BBPct + STDC indicator, developed by AlgoAlpha, is an original implementation that combines the calculation of Bollinger Bands, percentile ranking, the %Stdev histogram and the STDC. While it shares some similarities with the Bollinger Bands %B indicator, the BBPct indicator introduces additional elements and customization options tailored to AlgoAlpha's methodology. The script is released under the Mozilla Public License 2.0, granting users the freedom to utilize and modify it while adhering to the license terms.
Directional Bias [AlgoAlpha]The Directional Bias indicator is a premium script expertly crafted to enhance market trend visualization on trading charts. This sophisticated tool is designed to intuitively indicate the market's directional bias, aiding traders in making informed decisions on lower time frames.
Highlighted Features:
Intuitive Trend Visualization: The script employs a color-coded system for candles, simplifying the process of trend identification
Customizable Aesthetics: Users have the option to personalize the visual elements, including candle colors, to suit their preferences and enhance chart readability.
Advanced Logic: The script is built on a proprietary algorithm that analyzes candlestick patterns to determine the current trend direction.
Key Benefits:
Enhanced Decision Making: By offering a clear depiction of the market's directional bias, the indicator assists traders in making more informed entry and exit decisions, particularly suited for quick decision-making on lower timeframes.
Adaptability to Market Conditions: The script dynamically adjusts to changing market conditions, providing relevant and timely indications of trend changes or continuations.
Versatile Application: Suitable for various trading styles, the indicator can be effectively used in day trading, scalping, or even in longer-term trading strategies, depending on the timeframe selected.
Summary:
The "Directional Bias" indicator stands out as a vital tool for traders focusing on lower timeframes, offering an intuitive, customizable, and dynamic approach to trend visualization. Its advanced proprietary logic and user-friendly interface make it a valuable asset in a trader's toolkit, enhancing the ability to quickly interpret and react to market movements.
Peak & Valley Levels [AlgoAlpha]The Peak & Valley Levels indicator is a sophisticated script designed to pinpoint key support and resistance levels in the market. By utilizing candle length and direction, it accurately identifies potential reversal points, offering traders valuable insights for their strategies.
Core Components:
Peak and Valley Detection: The script recognizes peaks and valleys in price action. Peaks (potential resistance levels) are identified when a candle is longer than the previous one, changes direction, and closes lower, especially on lower volume. Valleys (potential support levels) are detected under similar conditions but with the candle closing higher.
Color-Coded Visualization:
Red lines mark resistance levels, signifying peaks in the price action.
Green lines indicate support levels, representing valleys.
Dynamic Level Adjustment: The script adapts these levels based on ongoing market movements, enhancing their relevance and accuracy.
Rejection Functions:
Bullish Rejection: Determines if a candlestick pattern rejects a level as potential support.
Bearish Rejection: Identifies if a pattern rejects a level as possible resistance.
Usage and Strategy Integration:
Visual Aid for Support and Resistance: The indicator is invaluable for visualizing key market levels where price reversals may occur.
Entry and Exit Points: Traders can use the identified support and resistance levels to fine-tune entry and exit points in their trading strategies.
Trend Reversal Signals: The detection of peaks and valleys serves as an early indicator of potential trend reversals.
Application in Trading:
Versatile for Various Trading Styles: This indicator can be applied across different trading styles, including swing trading, scalping, or trend-following approaches.
Complementary Tool: For best results, it should be used alongside other technical analysis tools to confirm trading signals and strategies.
Customization and Adaptability: Traders are encouraged to experiment with different settings and timeframes to tailor the indicator to their specific trading needs and market conditions.
In summary, the Peak & Valley Levels by AlgoAlpha is a dynamic and adaptable tool that enhances a trader’s ability to identify crucial market levels. Its integration of candlestick analysis with dynamic level adjustment offers a robust method for spotting potential reversal points, making it a valuable addition to any trader's toolkit.
Fourier Smoothed Volume Zone Oscillator (FSVZO) [AlgoAlpha]Description
The Fourier Smoothed Volume Zone Oscillator (FSVZO) is an implementation of the Discrete Fourier Transform in a Volume Zone Oscillator. Its purpose is to smooth price data and reduce noise to provide a more clear and accurate indication of price movement. This indicator also includes additional EMA smoothing to accurately depict reversals.
Discrete Fourier Transform
The Discrete Fourier Transform (DFT) is a mathematical algorithm used to convert discrete time-domain data into its frequency-domain representation. By decomposing a signal into its constituent frequencies, it reveals the amplitude and phase information associated with each frequency component.
Volume Zone Oscillator
The Volume Zone Oscillator is an indicator that combines volume and price data to provide insights into market trends and momentum. It calculates the difference between the volume traded above and below a specified price level and represents it as a line plot on the chart. The Volume Zone Oscillator helps traders identify periods of high buying or selling pressure and can be used to confirm trends, spot divergences, and generate trading signals. By analyzing the relationship between volume and price, traders can gain a deeper understanding of market dynamics and make more informed trading decisions.
Features
This indicator incorporates Ehler's Universal Oscillator concept and presents a histogram to provide valuable insights into the market's noise levels. Ehler's Universal Oscillator represents the statistical model that characterizes random and unpredictable market behavior. By utilizing this concept, the histogram enhances traders' ability to identify periods of increased or decreased volatility in the market.
How to use it?
Green dots and lines represent bullish price movement, while red dots and lines indicate bearish price movement. These signals gain additional strength when considering our oversold and overbought zones. Traders and investors can leverage these signals to initiate long positions when green signals coincide with oversold conditions, and vice versa. By combining these signals in synergy with Ehler's Universal Oscillator, a more precise representation of market trends can be achieved. To optimize its effectiveness, it is advisable to integrate this indicator with complementary technical analysis tools and incorporate it into a comprehensive trading strategy. Traders are encouraged to explore diverse settings and timeframes to align the indicator with their individual trading preferences and adapt it to prevailing market conditions.
Utility
By combining the FSVZO indicator with Ehler's white noise histogram, users gain a comprehensive perspective on volume-related market conditions. It empowers traders and investors to evaluate the intensity of buying or selling pressure, detect potential trend reversals or continuations, and ultimately make more informed trading decisions. This information can serve as confirmation or validation for other technical indicators, enabling traders to identify potential market turning points and enhance their comprehension of market dynamics.
The indicator offers several valuable applications, including the detection of divergence patterns between volume and price, identification of accumulation or distribution phases, and assessment of overall market trend strength. It accommodates various trading styles, such as swing trading, trend following, or mean reversion strategies. By leveraging these capabilities, traders can expand their toolkit and make more informed trading decisions.
Originality
The originality of the script lies in the combination of the Fourier analysis, white noise calculations, and the Volume Zone Oscillator. It provides a unique perspective on market dynamics and can be used to identify potential trading opportunities based on overbought and oversold conditions as well as trend reversals. Special thanks to @QuantiLuxe for their assistance in the development of this indicator
Limited Growth Stock-to-Flow (LGS2F) [AlgoAlpha]Description:
The "∂ Limited Growth Stock-to-Flow (LG-S2F)" indicator, developed by AlgoAlpha, is a technical analysis tool designed to analyze the price of Bitcoin (BTC) based on the Stock-to-Flow model. The indicator calculates the expected price range of BTC by incorporating variables such as BTC supply, block height, and model parameters. It also includes error bands to indicate potential overbought and oversold conditions.
How it Works:
The LG-S2F indicator utilizes the Stock-to-Flow model, which measures the scarcity of an asset by comparing its circulating supply (stock) to its newly produced supply (flow). In this script, the BTC supply and block height data are obtained to calculate the price using the model formula. The formula includes coefficients (a, b, c) and exponentiation functions to derive the expected price.
The script incorporates error bands based on uncertainty values derived from the standard errors of the model parameters. These error bands indicate the potential range of variation in the expected price, accounting for uncertainties in the model's parameters. The upper and lower error bands visualize potential overbought and oversold conditions, respectively.
Usage:
Traders can utilize the LG-S2F indicator to gain insights into the potential price movements of Bitcoin. The indicator's main line represents the expected price, while the error bands highlight the potential range of variation. Traders may consider taking long positions when the price is near or below the lower error band and short positions when the price is close to or above the upper error band.
It's important to note that the LG-S2F indicator is specifically designed for Bitcoin and relies on the Stock-to-Flow model. Users should exercise caution and consider additional analysis and factors before making trading decisions solely based on this indicator.
Originality:
The LG-S2F indicator, developed by QuantMario and AlgoAlpha, is an original implementation that combines the Stock-to-Flow model with error bands to provide a comprehensive view of BTC's potential price range. While the concept of Stock-to-Flow analysis exists, the specific calculations, incorporation of error bands, and customization options in this script are unique to QuantMario's methodology. The script is released under Mozilla Public License 2.0, allowing users to utilize and modify it while adhering to the license terms.
