[blackcat] L1 Dynamic Volatility IndicatorThe volatility indicator (Volatility) is used to measure the magnitude and instability of price changes in financial markets or a specific asset. This thing is usually used to assess how risky the market is. The higher the volatility, the greater the fluctuation in asset prices, but brother, the risk is also relatively high! Here are some related terms and explanations:
- Historical Volatility: The actual volatility of asset prices over a certain period of time in the past. This thing is measured by calculating historical data.
- Implied Volatility: The volatility inferred from option market prices, used to measure market expectations for future price fluctuations.
- VIX Index (Volatility Index): Often referred to as the "fear index," it predicts the volatility of the US stock market within 30 days in advance. This is one of the most famous volatility indicators in global financial markets.
Volatility indicators are very important for investors and traders because they can help them understand how unstable and risky the market is, thereby making wiser investment decisions.
Today I want to introduce a volatility indicator that I have privately held for many years. It can use colors to judge sharp rises and falls! Of course, if you are smart enough, you can also predict some potential sharp rises and falls by looking at the trend!
In the financial field, volatility indicators measure the magnitude and instability of price changes in different assets. They are usually used to assess the level of market risk. The higher the volatility, the greater the fluctuation in asset prices and therefore higher risk. Historical Volatility refers to the actual volatility of asset prices over a certain period of time in the past, which can be measured by calculating historical data; while Implied Volatility is derived from option market prices and used to measure market expectations for future price fluctuations. In addition, VIX Index is commonly known as "fear index" and is used to predict volatility in the US stock market within 30 days. It is one of the most famous volatility indicators in global financial markets.
Volatility indicators are very important for investors and traders because they help them understand market uncertainty and risk, enabling them to make wiser investment decisions. The L1 Dynamic Volatility Indicator that I am introducing today is an indicator that measures volatility and can also judge sharp rises and falls through colors!
This indicator combines two technical indicators: Dynamic Volatility (DV) and ATR (Average True Range), displaying warnings about sharp rises or falls through color coding. DV has a slow but relatively smooth response, while ATR has a fast but more oscillating response. By utilizing their complementary characteristics, it is possible to construct a structure similar to MACD's fast-slow line structure. Of course, in order to achieve fast-slow lines for DV and ATR, first we need to unify their coordinate axes by normalizing them. Then whenever ATR's yellow line exceeds DV's purple line with both curves rapidly breaking through the threshold of 0.2, sharp rises or falls are imminent.
However, it is important to note that relying solely on the height and direction of these two lines is not enough to determine the direction of sharp rises or falls! Because they only judge the trend of volatility and cannot determine bull or bear markets! But it's okay, I have already considered this issue early on and added a magical gradient color band. When the color band gradually turns warm, it indicates a sharp rise; conversely, when the color band tends towards cool colors, it indicates a sharp fall! Of course, you won't see the color band in sideways consolidation areas, which avoids your involvement in unnecessary trades that would only waste your funds! This indicator is really practical and with it you can better assess market risks and opportunities!
Blackcat1402
[blackcat] L2 Votatility of Williams VixFix Risk AssessmentHey there! I previously wrote an article about the Larry Williams ViX Fix technical indicator. Soon after, friends from the TradingView community told me that this indicator could be combined with the Risk Assessment indicator I wrote about earlier to determine when to go long or short. At the time, I found it a bit cumbersome to use both indicators together, so I came up with a solution: to merge them. This way, we can use one technical indicator to visually see whether we should go long or short. Isn't that cool? The indicator has a very common name: ** L2 Votatility of Williams VixFix Risk Assessment, or VoWVRA for short.**
This TradingView Pine Script is a custom indicator based on the Larry Williams ViX Fix technical indicator, designed to help traders with risk assessment and trading decisions. The Larry Williams ViX Fix indicator is derived from the volatility of the S&P 500 index and is mainly used to display changes in current market sentiment. The indicator determines market volatility by calculating the distance between the highest price, the lowest price, and the closing price. The higher the value of the indicator, the more tense the market sentiment, and the higher the market volatility; conversely, the lower the value, the more stable the market sentiment and the lower the market volatility.
The VoWVRA indicator is based on the Larry Williams ViX Fix indicator, combined with technical indicators such as Bollinger Bands and EMA, to assess market risk. The indicator can be customized with input parameters to suit different markets and investor needs. Using the VoWVRA indicator can help traders make wiser choices in risk control and trading decisions.
In addition, this TradingView Pine Script also includes a risk assessment indicator. The indicator calculates a series of values and then applies the exponential moving average (EMA) to the percentage change between the closing price and the highest and lowest prices within a certain range to determine the safety level. The safety level is then compared to different thresholds to determine the market's risk level. The risk assessment indicator can be customized with input parameters such as risk length, safety length, and EMA length to suit different market conditions and investor preferences. Using the risk assessment indicator can help traders make wiser decisions in risk management and trading strategies.
By using the VoWVRA and risk assessment indicators, traders can more accurately assess market risk and make wiser choices in trading decisions.
[blackcat] L1 Adaptive Choppiness IndexLevel: 1
Background
I have been working with choppiness index type indicator for long. However, there are several problems in tradintional one.
Function
One of the issue of conventional choppiness index is the noise or ripple is too obvious. I was wondering several ways to smooth it. As you may know, choppiness index is "one line" indicator. There is little room of freedom to change it too much. Then, I introduced adaptation algorithm to make "length" parameter adaptive, which can smooth choppiness index indicator to some degree. Meanwhile, I use ALMA to smooth the output again.
Remarks
I used my published dc_ta lib, which collects several dominant cycle algorithm from Elhers to make many indicator adaptive possible.
Feedbacks are appreciated.
[blackcat] L1 T3 MA Lite Version
Tilson T3 Moving Average (T3MA) is a type of moving average line designed to reduce lag and improve the accuracy of trend identification. It is based on a combination of multiple smoothed moving averages, with each subsequent smoothed moving average having a higher weight than the previous one. The T3MA formula includes three different smoothing coefficients and a volume coefficient or volatility coefficient, which can be adjusted according to user preferences. T3MA is commonly used by traders and investors to identify trends and generate trading signals.
The calculation method for T3MA requires the use of exponential moving averages (EMA). In Pine scripts in the TradingView community, over 90% of them use the EMA function to calculate T3MA. Specifically, in Pine scripts, it is necessary to define the length and volatility coefficient of T3MA, then calculate three different lengths of EMA separately. Next, three constants need to be calculated that are related to volatility. Finally, the weighted average value of the three EMAs and three constants is added together to obtain the value of T3MA. If you want to customize the length and volatility of T3MA, you just need to modify the parameters in the code. Overall, T3MA is a very useful technical indicator that can help traders better understand market trends and improve trading efficiency.
The improved version introduced today mainly addresses my perception that traditional T3 algorithms are too redundant with high computational complexity leading to delayed reactions. Therefore, I have developed a lightweight version called L1 T3 MA Lite Version. This doesn't bring about any qualitative changes; it simply makes adjustments in terms of computational resources and response speed. To illustrate its advantages compared with traditional T3 MA indicators, I will provide a comparison using Everget's script from TradingView community blogger everget.
The difference between these two scripts for calculating T3 Moving Average lies in their implementation methods. The first script (Everget) uses a more complex calculation formula, which requires calculating three different lengths of EMA and computing three constants based on volatility. Finally, they are weighted averaged to obtain T3MA. This complex calculation formula can enhance the sensitivity of the T3MA indicator, thereby better identifying price trends. On the other hand, the second script (Blackcat1402) uses a relatively simple calculation formula that only requires calculating three different lengths of EMA and computing three constants based on volatility. Finally, they are weighted averaged to obtain T3MA as well. This simple calculation formula reduces computational complexity and speeds up calculations. Both have slightly different effects and calculation methods; users can choose the script that suits their needs.
In summary, T3 Moving Average is a very useful technical indicator that can help traders better understand market trends and improve trading efficiency. Users can choose scripts suitable for themselves according to their needs and flexibly adjust the length and volatility coefficient of T3MA to adapt to different markets.
[blackcat] L1 Magic Moving AverageThis is a code snippet written in the Pine programming language for TradingView platform. It is an implementation of a custom technical indicator called "L1 Magic Moving Average".
Moving averages are widely used in technical analysis to identify trends and reversals in the price of an asset. The idea behind moving averages is to smooth out the price data by calculating the average price over a certain period of time. This helps to filter out the noise in the price data and provides a clearer picture of the underlying trend.
The Magic Moving Average (MMA) is a custom moving average that is calculated using a combination of three different types of moving averages: simple moving average (SMA), exponential moving average (EMA), and weighted moving average (WMA). The MMA is designed to be more responsive to changes in the price of an asset compared to traditional moving averages.
The code starts by defining the input parameters for the indicator. The length parameter determines the number of periods used for calculating the moving averages. The source parameter specifies the price data used to calculate the moving averages. Finally, the smoothness parameter adjusts the weighting of the WMA component of the MMA.
Once the input parameters are defined, the code calculates the MMA by adding the SMA, EMA, and WMA components. The SMA and EMA components are calculated using the standard functions provided by TradingView. The WMA component is calculated using a custom function that takes into account the smoothness parameter.
After the MMA is calculated, the code plots it on the chart as two lines, one for the current value and one for the previous value. The two lines are then filled with colors depending on the position of the current MMA relative to its previous value. If the current value is higher than the previous value, the plot is filled with yellow color, otherwise, it is filled with fuchsia color.
In addition to the plot, the code also includes logic for generating buy and sell signals based on the crossover of the MMA and its previous value. If the MMA crosses above its previous value, a buy signal is generated. Conversely, if the MMA crosses below its previous value, a sell signal is generated. When a signal is generated, an alert is triggered to notify the user.
Finally, the code also includes labels for the generated signals. When a buy signal is generated, a green "B" label is placed at the bottom of the candle. Similarly, when a sell signal is generated, a red "S" label is placed at the top of the candle. These labels help the user to quickly identify the signals on the chart.
Overall, this code provides a simple yet effective way of generating trading signals based on the Magic Moving Average. By using a combination of different types of moving averages, the indicator is able to capture different aspects of the price movement and generate signals that are more reliable. The flexibility of the input parameters also allows the user to adjust the indicator to their specific trading needs.
[blackcat] L1 Guppy Multiple Moving Average (GMMA)Guppy Multiple Moving Average (GMMA) is a widely used technical analysis tool that can help traders identify price trends, determine entry and exit points, and identify signals of price reversal. The inventor of GMMA is Daryl Guppy, an Australian trader and technical analyst who developed this technical analysis tool in the late 1980s and early 1990s. GMMA is based on multiple moving averages (MA), including short-term and long-term moving averages (EMA). The short-term MA group consists of 6 MAs, and the long-term MA group also consists of 6 MAs. These MAs are grouped by color to make them easy to identify.
The basic principle of GMMA is that when prices are in an uptrend, the short-term MA group will be above the long-term MA group, and when prices are in a downtrend, the short-term MA group will be below the long-term MA group. The cross of the short-term MA group and the long-term MA group can help traders determine the direction and strength of the price trend. When the short-term MA group crosses and rises, traders can choose to enter the market, and when the short-term MA group crosses and falls, they can choose to exit the market. In addition, GMMA can also help traders identify signals of price reversal. When prices are in an uptrend, if the short-term MA group starts to cross down, this may be a signal of price reversal. Conversely, when prices are in a downtrend, if the short-term MA group starts to cross up, it may be a signal of price reversal.
The advantages of GMMA are that it can help traders identify price trends and signals of price reversal, thereby determining entry and exit points. In addition, the way GMMA is plotted makes the difference between the short-term and long-term MA groups more obvious, making it easy to identify. However, GMMA also has some disadvantages. For example, it can only provide limited information and cannot predict future price trends. In addition, GMMA needs to be combined with other technical indicators and fundamental analysis for trading decisions.
Overall, Guppy Multiple Moving Average (GMMA) is a powerful technical analysis tool that can help traders identify price trends, determine entry and exit points, and identify signals of price reversal. If traders can use GMMA correctly and combine it with other technical indicators and fundamental analysis, they can achieve better trading results.
[blackcat] L1 Larry Williams VixFix IndicatorLevel : L1
Larry Williams, had this idea to create a synthetic VIX for more than just the main stock indices. Check out the formula for Williams VixFix:
```
VIX Fix Formula = (Highest(Close, 22) – Low) / (Highest(Close, 22)) * 100
```
What does this even mean? In normal person terms, here's what it's all about:
1. Find the highest close over the last 22 days and subtract today's low (or the current bar).
2. Divide that by the highest close of the past 22 days.
3. Multiply the result by 100 to "normalize" the indicator.
Why 22 days, you ask? That's how long the normal month of trading days is.
So, you see, the formula is pretty chill. It's just a way to measure the price volatility of the last 22 trading days. It's a bit of a lagging indicator, but it gets the job done.
Here my version of this scriptcreates a custom technical indicator called "L1 Larry Williams VixFix" that measures the distance between the highest high and the lowest low of a security's price over a specified period.
The user can adjust the period length and source price used in the VixFix calculation. The period length is set to 22 by default, but can be modified by the user with the "Length" input parameter. The source price is set to "close" by default, meaning it will use the closing price of each bar to calculate the VixFix. However, the user can also choose a different type of price data, such as open, high, or low.
The VixFix is calculated as a percentage of the difference between the highest close and the lowest low over the specified period. This percentage is then multiplied by 100 to create a more readable value.
Finally, the code plots the VixFix line on the chart with a yellow color and a thickness of 2. This allows the user to easily visualize the VixFix value and incorporate it into their trading decisions.
Overall, this script provides a powerful tool for technical analysis that can help traders identify potential trend changes and market reversals.
[blackcat] L4 Adaptive Hull Suite 4HLevel: L4
Function Description:
The L4 Adaptive Hull Suite 4H aims to help traders identify trend reversals and trade signals using various moving averages and indicators. The script is designed to be adaptable and customizable, allowing traders to tweak the settings to suit their individual preferences and trading styles.
At its core, the script uses the hybrid Hull Moving Average (HHMA), a popular technical indicator that aims to reduce lag and noise while improving the accuracy of moving average signals. The HHMA is combined with a reverse chop indicator, which helps identify trend reversals by measuring the volatility of the market and comparing it to a set threshold.
In addition to the HHMA and reverse chop indicators, the script also includes customized open-close cross (OCC) conditions and a hybrid Hull Moving Average (Hybrid Hull MA). The OCC conditions allow traders to generate buy and sell signals based on the cross of the open and close prices, while the hybrid Hull MA combines the HHull MA with other moving averages to provide a more accurate and reliable trend-following signal.
Traders can adjust the settings of the script to suit their trading style and risk appetite. For instance, the chop length, ATR length, and reverse chop threshold can be customized to identify trend reversals more accurately, while the Hull MA length can be adjusted to provide a faster or slower response to price changes.
Overall, the L4 Adaptive Hull Suite 4H is a powerful and flexible Pine script that can help traders identify trend reversals and generate accurate buy and sell signals. With its customizable settings and reliable indicators, the script can be a valuable addition to any trader's toolkit.
About Time Frame:
The L4 Adaptive Hull Suite 4H is specifically designed for use on the 4-hour time frame and is particularly well-suited for trading the BTCUSDT.P trading pair. The script combines various technical indicators, including the Adaptive Hull Moving Average (AHMA) and the reverse chop indicator, to help identify trend reversals and generate accurate buy and sell signals.
Traders who are interested in using the L4 Adaptive Hull Suite 4H should be aware that it is optimized for use on the 4-hour time frame. While it may work on other time frames, the signals generated may not be as reliable as those generated on the 4-hour chart. Additionally, the script is specifically designed for use on the BTCUSDT.P trading pair, and may not be as effective on other trading pairs.
Overall, the L4 Adaptive Hull Suite 4H is a powerful and adaptable Pine script that can help traders identify trend reversals and generate accurate buy and sell signals. With its focus on the 4-hour time frame and the BTCUSDT.P trading pair, the script can be a valuable tool for traders who are looking to improve their trading results on this particular asset.
Choppiness Sensitive
The L4 Adaptive Hull Suite 4H includes a choppiness detection feature that helps traders identify whether the market is trending strongly or moving sideways. When the market is trending strongly, the background color of the chart will turn blue, indicating an active buy or sell signal. Conversely, when the market is moving sideways, the script will ignore any buy or sell signals generated by the OCC or Hull MA conditions.
The choppiness detection feature is based on the reverse chop indicator, which measures the volatility of the market and compares it to a set threshold. When the chop value is above the threshold, the market is considered to be in a sideways or choppy phase, and the script will not generate any buy or sell signals. However, when the chop value is below the threshold, the market is considered to be trending strongly, and the script will generate active buy or sell signals based on the OCC or Hull MA conditions.
Overall, the choppiness detection feature is a valuable addition to the L4 Adaptive Hull Suite 4H, as it helps traders identify the optimal times to enter and exit the market. By focusing on strong trends and ignoring sideways movement, traders can improve their trading results and minimize their risk of losses.
Divergence Detection and Alerts
The L4 Adaptive Hull Suite 4H is a powerful Pine script that can produce divergence labels and TradingView alerts using the built-in alert() function. This allows traders to receive real-time notifications when the script generates a buy or sell signal, making it easier to stay on top of market movements and take advantage of profitable trading opportunities.
To set up alerts, traders can simply add the alert() function to the script and specify the conditions that should trigger the alert. For instance, traders may want to receive an alert when the script generates a buy signal based on the OCC conditions, or when the Hull MA crosses above or below a certain level.
In addition to alerts, the script can also produce divergence labels, which can help traders identify potential trend reversals and generate more accurate buy and sell signals. Divergence labels are based on the difference between the script's indicators and the price action of the asset being traded, and can provide valuable insights into the underlying market dynamics.
Overall, the L4 Adaptive Hull Suite 4H is a versatile and customizable script that can help traders identify trend reversals and generate accurate buy and sell signals. With its ability to produce alerts and divergence labels, the script can be a valuable tool for traders who are looking to stay on top of market movements and take advantage of profitable trading opportunities.
[blackcat] L1 Reverse Choppiness IndexThe Choppiness Index is a technical indicator that is used to measure market volatility and trendiness. It is designed to help traders identify when the market is trending and when it is choppy, meaning that it is moving sideways with no clear direction. The Choppiness Index was first introduced by Australian commodity trader E.W. Dreiss in the late 1990s, and it has since become a popular tool among traders.
Today, I created a reverse version of choppiness index indicator, which uses upward direction as indicating strong trend rather than a traditional downward direction. Also, it max values are exceeding 100 compared to a traditional one. I use red color to indicate a strong trend, while yellow as sideways. Fuchsia zone are also incorporated as an indicator of sideways. One thing that you need to know: different time frames may need optimize parameters of this indicator. Finally, I'd be happy to explain more about this piece of code.
The code begins by defining two input variables: `len` and `atrLen`. `len` sets the length of the lookback period for the highest high and lowest low, while `atrLen` sets the length of the lookback period for the ATR calculation.
The `atr()` function is then used to calculate the ATR, which is a measure of volatility based on the range of price movement over a certain period of time. The `highest()` and `lowest()` functions are used to calculate the highest high and lowest low over the lookback period specified by `len`.
The `range`, `up`, and `down` variables are then calculated based on the highest high, lowest low, and closing price. The `sum()` function is used to calculate the sum of ranges over the lookback period.
Finally, the Choppiness Index is calculated using the ATR and the sum of ranges over the lookback period. The `log10()` function is used to take the logarithm of the sum divided by the lookback period, and the result is multiplied by 100 to get a percentage. The Choppiness Index is then plotted on the chart using the `plot()` function.
This code can be used directly in TradingView to plot the Choppiness Index on a chart. It can also be incorporated into custom trading strategies to help traders make more informed decisions based on market volatility and trendiness.
I hope this explanation helps! Let me know if you have any further questions.
[blackcat] L3 MACD and RSI Fusion The MACD and RSI fusion is a popular technical analysis strategy used by traders to identify buy and sell signals in the market. The strategy makes use of two popular technical indicators, the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), and combines them to create a powerful trading signal.
The MACD and RSI fusion was originally developed for the Chinese stock market and is commonly used by traders all over the world. The strategy is based on the idea that the MACD and RSI indicators can be used together to provide a more accurate and reliable signal.
To use the MACD and RSI fusion , traders need to follow a few simple steps. The following code is the TradingView Pine script v4 indicator equivalent of the original MACD and RSI fusion code:
```
//@version=4
study(" MACD and RSI fusion ", overlay=false)
// Define the simple fusion indicator
simple_fusion = (ema(close, 12) - ema(close, 26)) * 1.2 + rsi(close, 14) / 50
// Define the simple fusion lag indicator
simple_fusion_lag = nz(simple_fusion )
// Plot the simple fusion and simple fusion lag indicators
plot(simple_fusion, color=color.blue, title="simple fusion")
plot(simple_fusion_lag, color=color.red, title="simple fusion Lag")
```
This code defines the simple fusion and simple fusion Lag indicators and plots them on the chart. The simple fusion indicator is the sum of the 12- and 26-period exponential moving averages of the closing price, multiplied by 1.2, and added to the 14-period relative strength index of the closing price, divided by 50. The simple fusion Lag indicator is the value of the simple fusion indicator from the previous period.
Traders can use the simple fusion and simple fusion Lag indicators to identify buy and sell signals. When the simple fusion indicator crosses above the simple fusion Lag indicator, it is a buy signal, and when the simple fusion indicator crosses below the simple fusion Lag indicator, it is a sell signal.
In conclusion, the MACD and RSI fusion is a simple but powerful technical analysis strategy that combines two popular technical indicators to identify buy and sell signals in the market.
[blackcat] L1 TradingView Array and Series ConversionsLevel 1
Background
It just so happens that I need some functions that can convert between the Series data type and the Array data type.
Function
Series is a unique data type of TradingView. By operating Series data, the algorithm can be simplified, which is very convenient. However, in high-level languages, Array is a basic data type that provides great flexibility and can be used to develop advanced algorithms. This is why TradingView introduces the Array data type. This script simply demonstrates how to convert between these two data types.
s2a function: Convert a TV series into an array.
a2s function: Convert an array into a TV series
Finally, Courtesy of Electrified for his "Average Lib":
Remarks
Feedbacks are appreciated.
[blackcat] L2 Barbara Star Supertrend IndicatorLevel 2
Background
Barbara Star’s article on July 2023, “Stay On Track With The Supertrend Indicator”, I rewrote it as pine script for your information.
Function
A supertrend indicator is displayed either above or below the closing price to signal a buy or sell. The indicator changes color depending on whether you should buy or not. When the Supertrend indicator falls below the closing price, the indicator turns green, signaling one or more entry points to buy.
Author Barbara Star describes the Supertrend indicator and how it can be used as a means for traders to stay in sync with the larger trend. She explains how J. Welles Wilder's Average True Range (ATR) forms a basis for supertrend calculations. ATR does not measure price direction, but rather provides a measure of volatility over a period of time. The Supertrend indicator, on the other hand, provides a more comprehensive view of trend direction. In addition, the indicator provides price levels at which a trend reversal would occur.
Green color stands for up trend;
Red color stands for down trend.
Remarks
Feedbacks are appreciated.
[blackcat] L1 Vitali Apirine Stochastic Distance OscillatorLevel 1
Background
Vitali Apirine published an article of “The Stochastic Distance Oscillator” on June 2023. I rewrite it for pine script.
Function
Vitali Apirine offers a new twist on the classic stochastic oscillator, which he calls "Stochastic Distance Oscillator" (SDO). The SDO is an impulse study that shows the size of the current range versus the maximum/minimum range range over a period of time. The study can be used for stocks or indices that are trending, but is also useful for trading ranges. Overbought and oversold levels can help spot upside and downside trend changes.
Remarks
Feedbacks are appreciated.
[blackcat] L1 An Adaptive Moving Average For Swing TradingLevel 1
Background
Scott Cong published an article of “An Adaptive Moving Average For Swing Trading” on April 2023. I rewrite it for pine script.
Function
In "An Adaptive Moving Average For Swing Trading," author Scott Cong introduces a new adaptive moving average that is designed to be responsive, smooth, and robust. He begins with a discussion of Perry Kaufman's adaptive moving average and explains how an adaptive moving average (AMA) can adapt to different market environments. Later he explains his methods of adjusting and changing the smoothing factor, which has better response than traditional EMA and SMA. I rewrited this new kind of moving average in pine script and use yellow color for its fast line while fuchsia color for its trigger signal as a slow line. By the way, divergence detector is also added for divergence notification. You can change period or length, and signal source parameters in setting dialog.
Remarks
Feedbacks are appreciated.
[blackcat] L3 Banker Fund SwingLevel 3
Background
The large funds or banker fund are often referred to as Whale. Whale can have a significant impact on the price movements in various markets, especially in cryptocurrency . Therefore, how to monitor Whale trends is of great significance both in terms of fundamentals and technical aspects.
Function
To understand banker fund more directly, a banker fund model is applied for main chart as different candles with colors, as well as short, middle, long term moving averages in yellow, fuchsia, aqua colors, respectively. The banker fund model is made of a fast line of EMA2, and a slow line of EMA42 of a artifical curve fitting line with xsl(close,21))*(20)+close, where xsl is used to calculate the slope of a data series. And then, with definition of the golden cross and dead cross status, banker fund behavior can be extracted as green candle color for bullish an red color candle for bearish. At the mean time, a new type of candle with yellow color is defined as well standing for a bullish swing start.
Remarks
Feedbacks are appreciated.
[blackcat] L3 Banker Fund Oscillator GeminiLevel 3
Background
The large funds or banker fund are often referred to as Whale. Whale can have a significant impact on the price movements in various markets, especially in cryptocurrency . Therefore, how to monitor Whale trends is of great significance both in terms of fundamentals and technical aspects.
Function
I had published (blackcat1402) L3/L4/L5 Banker Fund Flow Trend Oscillator as open sourced version. Since this indicator is one of the most popular indicators in my collections. Many requested advanced features and improvements on accuracy. Here is the link of free version of
L3 Banker Fund Flow Trend Oscillator:
L4 Banker Fund Flow Trend Oscillator:
L5 Banker Fund Flow Trend Oscillator:
To futher develop this category, here i published L3 Banker Fund Oscillator Gemini targetting to make a combo of various types of banker fund models together. Since it is a oscillator ranging 0 to 100, overbought and oversold zones were defined which use dotted yellow-green hline for the former and dotted yellow-red hline for the later.
middle term banker fund model:
red bars : bullish
green bars : bearish
short term banker fund model:
yellow bars : bullish
fuchsia bars : bearish
if middle term banker fund resonantes with short term banker fund for bullish, then it is a strong/confirmed bullish trend.
if middle term banker fund resonantes with short term banker fund for bearish, then it is a strong/confirmed bearish trend.
Remarks
Feedbacks are appreciated.
[blackcat] L2 Super OscillatorLevel2
Background
A super oscillator with overbought and oversold detections.
Function
Represented by a white line, this Super Oscillator indicator identifies instruments that are overbought or oversold, which can be an important part of determining buy and sell points. An oversold market is a market that has fallen sharply and is expected to recover. In this indicator, gray candlesticks are used at the bottom to show that an oversold zone is near and a red candlestick shows that the overbought zone is ending. On the other hand, an overbought market has risen sharply and could be ripe for a decline. Yellow line dips are used to indicate overbought zones.
Remarks
Feedbacks are appreciated.
[blackcat] L2 John Ehlers Undersampled Double MALevel2
Background
This is a novel "undersampling data" processing trick proposed by John F. Ehlers in his April 2023 article "Just Ignore Them".
Function
In signal processing, undersampling, or bandpass sampling, is a technique whereby a bandpass-filtered signal is sampled at a sample rate below its Nyquist rate (twice the upper cut-off frequency), but the signal can still be reconstructed. When undersampling a bandpass signal, the samples are indistinguishable from samples of a low-frequency alias of the high-frequency signal.
John Ehlers notes that data smoothing is often used to avoid trading spikes. While this can result in fewer trading signals, it can also result in a delay in those trading signals. He describes how undersampling can be used in conjunction with Hann window finite impulse response (FIR) filters to remove high-frequency components in price data, resulting in less delay than traditional smoothing filters.
In this indicator, Hann windowing is applied a a pair of fast/slow moving averages which is used to improve their response perfomrnace. Yellow line is the fast line while fuchsia line is the slow line. You can judge bull bear stattus by checking the status it is in golden cross or in dead cross status.
Remarks
Feedbacks are appreciated.
[blackcat] L1 Ehlers Every Little Bit HelpsLevel 1
Background
Inspired by "Averaging The Open And Close To Reduce Noise" on March 2023 by John F. Ehlers’ article in the March issue, “Every Little Bit Helps”, I further smooth it because noise was still large and “Every Little Bit Does Not Helps Much”.
Function
In John F. Ehlers' 03/2023 article, "Every Little Bit Helps," he suggests that noise can be reduced by simply averaging the open and close prices of a bar, rather than just using the close price. The data sampling example presented in this article compares the traditional RSI using close data to an RSI calculated using the average of the open and close.
Compared to RSI, I used my customized RMI version which is more suitable for moment smoothing. For example, the price entry of the 1st RMI can be changed from Close to (Close + Open) / 2. In fact, the RMI indicator itself has a price input that can be changed in a similar way. You can change the input parameter "m" to "More Help", which is 5 by default.
Remarks
Feedbacks are appreciated.
[blackcat] L3 Aroon ZoneLevel 3
Background
The Aroon indicator developed by Tushar Chanand indicates whether there is a trend price or is located in a trading area.
Function
Classical Aroon can also show the beginning of a new trend, its strength and expectation of changes from trade areas to trends. However, it produces too much noise when is bull or bear during sideways. In this improved version, I use bars without "blur cross" to classify bull, bear and sideways, which could look better to know the status of current market.
Since Chinese uses red for bull, green for bear, while others use green for bull and red for bear, i try to avoid to use red or green, which may be confusing. I use my style of color for bull and bear:
Yellow --> Bull
Fuchsia --> Bear
Gray --> Sideways
Remarks
Feedbacks are appreciated.
[blackcat] L2 Aroon13Level 2
Background
The Aroon indicator developed by Tushar Chanand indicates whether there is a trend price or is located in a trading area.
Function
Classical Aroon can also show the beginning of a new trend, its strength and expectation of changes from trade areas to trends. This is a traditional aroon indicator with length == 13, which exhibit good performance.
Remarks
Feedbacks are appreciated.
[blackcat] L3 Zen Stroke AroonLevel 3
Background
The Aroon indicator developed by Tushar Chanand indicates whether there is a trend price or is located in a trading area.
Function
Classical Aroon can also show the beginning of a new trend, its strength and expectation of changes from trade areas to trends. However, i found it contained to much noise and i was wondering how to remove this noise. Finally, I decide to use my Zen Stroke script to locate peaks and valleys firstly and then use the generated but confirmed peak and valleys to produce a new kind of Aroon indicator. It results in less signal even with smaller length parameter.
Remarks
Feedbacks are appreciated.
[blackcat] L3 RS MSFIELD CN A ShareLevel: 3
Background
As requested by my friend, this is a China A share version of RS MSFIELD.
When a wave of market conditions in the China A Share market comes, how do you choose which China A Share target to operate?
Function
The function of this indicator is to compare the strength of a single target with the strength of the China A Share market. For any China A Share, if its strength is lower than the rise of the China A Share index, then this target is a manifestation of weakness, and you can short it at this time. On the contrary, if a single target rises higher than the China A Share index, then it may be the leader of this wave of market. Therefore, in a bull market, those indicators that are stronger than the China A Share market should be our long-term targets; in a bear market, Those indicators that are weaker than the China A Share market are all short-selling targets that we should pay attention to.
Its specific use method is as follows:
1. If the market is in the recovery period at the end of the bear market, the indicator can approach 0 from below 0. Its direction is continuously upward, which means that the target is in a rebound market and can be long. If the rising market continues and can maintain a strong market for a long time, the indicator must be in a strong area above the 0 axis. In the same way, the bear market adopts a strategy below the 0 axis.
2. If you want to achieve a stable transaction, the buying point for long positions must be above the 0 axis, and the selling point for short positions must be below the 0 axis.
3. If the retracement falls below the zero axis in the bull market, it means that it is not a market relay, but a market reversal.
4. This indicator does not provide specific buying and selling points, but can only provide a reference relative to the China A Share market. The specific buying and selling points and trends still need to be realized in conjunction with other technical indicators.
I distinguish the trend strength by color, which can be interpreted corresponding to RSI 0-100:
1. Deep Bear 0-20, blue
2. Bearish 20-40, green
3. Shock market 40-60, yellow
5. Bullish 60-80, red
6. Deep Bull Market 80-100, Fuchsia
Remarks
This indicator ONLY works for China A share which contains local market index info. It cannot work for other trading pairs.
This indicator DOES NOT provide long/short entry points. You need combine other indicators to trade.
Feedbacks are appreciated.
[blackcat] L3 RS MSFIELD CryptoLevel: 3
Background
When a wave of market conditions in the cryptocurrency market comes, how do you choose which cryptocurrency target to operate?
Function
The function of this indicator is to compare the strength of a single target with the strength of the crypto market. For any cryptocurrency, if its strength is lower than the rise of the cryptocurrency index, then this target is a manifestation of weakness, and you can short it at this time. On the contrary, if a single target rises higher than the cryptocurrency index, then it may be the leader of this wave of market. Therefore, in a bull market, those indicators that are stronger than the crypto market should be our long-term targets; in a bear market, Those indicators that are weaker than the crypto market are all short-selling targets that we should pay attention to.
Its specific use method is as follows:
1. If the market is in the recovery period at the end of the bear market, the indicator can approach 0 from below 0. Its direction is continuously upward, which means that the target is in a rebound market and can be long. If the rising market continues and can maintain a strong market for a long time, the indicator must be in a strong area above the 0 axis. In the same way, the bear market adopts a strategy below the 0 axis.
2. If you want to achieve a stable transaction, the buying point for long positions must be above the 0 axis, and the selling point for short positions must be below the 0 axis.
3. If the retracement falls below the zero axis in the bull market, it means that it is not a market relay, but a market reversal.
4. This indicator does not provide specific buying and selling points, but can only provide a reference relative to the crypto market. The specific buying and selling points and trends still need to be realized in conjunction with other technical indicators.
I distinguish the trend strength by color, which can be interpreted corresponding to RSI 0-100:
1. Deep Bear 0-20, blue
2. Bearish 20-40, green
3. Shock market 40-60, yellow
5. Bullish 60-80, red
6. Deep Bull Market 80-100, Fuchsia
Remarks
This indicator DOES NOT provide long/short entry points. You need combine other indicators to trade.
Feedbacks are appreciated.
