Opening ScoreOverview:
The Composite Open Strategy Indicator is designed to provide traders with a unified, early-session directional bias by aggregating multiple non-correlated signals. By combining diverse analytical methods—spanning price action, volume, volatility, and time—the indicator helps you gauge whether the market is leaning bullish or bearish during the critical opening hours.
How It Works:
• Open Range Breakout (ORB) Signal:
The indicator captures the opening range (defined up to a user-specified time, e.g., 9:45 AM ET) and assigns a bullish signal when the price breaks above the high of that range, and a bearish signal when it drops below the low.
• VWAP Signal:
It compares the current price to the Volume Weighted Average Price (VWAP). A price above VWAP suggests buying pressure, while below indicates selling pressure.
• Trend Signal:
Using a simple moving average (with an adjustable period, typically around 20 bars), the indicator determines the prevailing trend. Price above the MA contributes a bullish bias, and price below contributes a bearish bias.
• Volatility Signal:
A volatility filter is applied via the Average True Range (ATR). An increasing ATR relative to the previous bar suggests rising volatility (bullish if combined with upward moves), whereas a decreasing ATR indicates the opposite.
Each of these four signals is assigned an equal weight (modifiable as needed), and their sum forms the composite score.
Display and Timing:
• Separate Panel:
The composite score is plotted as a histogram in its own indicator panel, ensuring your main price chart remains uncluttered.
• Session Filter:
The indicator is active only during the early session—from 9:30 AM to 12:30 PM Eastern Time—when the initial directional move is most relevant. Outside this time window, the indicator remains inactive.
Trading Insights:
• A positive composite score suggests a bullish bias, indicating that the aggregated signals lean toward an upward trend.
• A negative composite score points to a bearish bias, indicating a downward directional outlook.
Usage:
Ideal for traders looking to capture the market’s early trend direction, this indicator can be used as part of a broader strategy. Its design encourages consistency by combining multiple perspectives (price, volume, volatility, time) into one clear signal, allowing you to focus on setups that align with the dominant early-session move.
Before fully automating your trading approach, you can test and refine this composite method on TradingView using the built-in manual review process. Once confident in its performance, further automation can help integrate this directional bias seamlessly into your overall trading strategy.
M-oscillator
Averaged Stochastic RSI by TenozenSimplicity beats everything! Averaged Stochastic RSi is calculated using the 2 points of stochastic of the RSI, where the difference is by 2 (larger), and averaged out the stochastic's values. In result it is less noisy and more responsive towards the market's momentum.
I hope you guys find this indicator useful! So far this is the best indicator I ever had! And I also learned that simplicity is better than complex blurry/abstract problems. Ciao!
Adaptive On Balance Volume with Trend█ Introduction
The Adaptive On Balance Volume (AOBV) indicator enhances the traditional On Balance Volume (OBV) by introducing adaptability, volatility detection, and trend analysis. It helps traders identify the direction of volume flow, assess volume momentum, and spot potential reversals in the market.
Detecting market tops and bottoms is crucial for making informed trading decisions. The AOBV indicator offers a method for identifying these points by using an adaptive volatility detection function that highlights potential volume peaks or climaxes, suggesting when a price top or bottom may be forming.
█ Understanding the AOBV
Note: Details on how calculations are conducted can be found at the end of this script description.
1. The Basics of the AOBV Function:
• Adaptive Momentum Calculation: Instead of using a fixed momentum formula, the AOBV uses the original formula for basic momentum and enhances it based on relative strength and applies an adaptive smoothing function.
• Dynamic Smoothing:
• Strong Momentum: When the AOBV detects significant changes (strong momentum), it reduces smoothing. This makes the indicator more responsive to major market movements.
• Weak Momentum: When momentum is weak (small changes), it increases smoothing to filter out market noise.
This adaptability allows the AOBV to more accurately reflect volume momentum, responding promptly during significant market moves and remaining stable during quieter periods.
To determine the trend direction (bullish or bearish), the indicator calculates a signal curve and displays the difference as bars:
• Bar Above the Middle Line: Indicates a bullish trend.
• Bar Below the Middle Line: Indicates a bearish trend.
2. Volatility Function:
The volatility function measures how much the AOBV deviates from its average by comparing it to its smoothed version. It calculates the exponential standard deviation to estimate volatility.
• Purpose: Identifies when volume momentum is near a climax or when a trend is nearing exhaustion.
• How It Works:
• Compares current volatility to previous bars.
• Computes a percentage indicating how often the current volatility is higher than past values.
• If this percentage exceeds a defined threshold, it signals a significant volatility event by plotting a dot above or below the bar.
This pattern typically manifests itself during strong runs on price followed by a period of consolidation. Thus, estimating volatility would be an acceptable measure of when a market is reaching or nearing an implied top or bottom.
3. The Trend Function:
The trend function combines several common indicators to gauge buildup toward a reversal or a continuation of a trend when the AOBV changes direction.
• Components:
• AOBV Strength Percentage: Calculates the percentage change in the AOBV to gauge its strength and direction.
• Supertrend Indicator: Acts as the main driver for trend buildup.
• Vertical Horizontal Filter (VHF): Measures market consolidation, adjusting the trend strength accordingly.
• Adaptive RSI: Further refines the trend strength based on volume momentum.
• Trend Ranking:
• Assigns a trend rank to the AOBV that reflects both market direction and momentum.
• Colors are used to represent different trend strengths: Strong Bullish, Bullish, Strong Bearish, and Bearish.
█ How to Use the AOBV
• Above the Middle Line: Suggests a bullish trend.
• Below the Middle Line: Suggests a bearish trend
• The Volatility dots:
• Indicate strong momentum relative to previous bars.
• Signal that the trend may be nearing a climax or exhaustion.
• Can imply a potential market top or bottom.
• Consolidation can be detected by visually comparing current bars to previous ones. This should be obvious since, and as described, the AOBV bars represent volume momentum.
• The trend function is used to gauge the likelihood of a reversal or a continuation of a trend; trend is represented with several colors: strong bullish trend, bullish trend, strong bearish trend, and finally simply a bearish trend.
It is important to understand that this trend function is not the typical trend function found on other technical indicators. It must be viewed within the context of the AOBV momentum. For example, if AOBV is exerting a bullish trend (bars above middle line), then a bearish trend with no major change in momentum and no volatility indication could mean a false reversal. Conversely, a large charge in AOBV could be a strong indication of a market reversal.
█ Key Features
• Two Display Modes: Curve and Bars:
The Adaptive OBV can be viewed in two different display modes: Curve and Bars Mode. "Curve Mode" offers the classic OBV representation (but as AOBV) with trend, while "Bars Mode" incorporates volatility detection and trend, making it the recommended mode.
• Volatility Function:
• Dots appear above or below the volume bars when significant volatility events are detected.
• The sensitivity can be adjusted by changing the percentage threshold.
• Trend Analysis:
• Helps gauge the likelihood of a trend continuation or reversal.
• Uses color-coded trend ranks for easy interpretation.
• Flexible Lookback Period:
Lookback periods for the main AOBV, its signal line, trend function, and volatility function can be customized.
• Recommendations:
• Match the main lookback period with the volatility period: Ensures consistency in momentum and volatility measurements.
• Match the trend lookback period with the signal AOBV lookback period: Aligns trend analysis with the underlying momentum signals.
Below is a sample demonstrating the utility on a 1- minute chart.
█ Calculation Details:
• AOBV Calculations
The AOBV differs the traditional OBV by focusing on the differences in OBV values rather than absolute price movements. Initially, it calculates the standard OBV by accumulating volume based on whether the closing price is higher or lower than the previous close. Next, it computes the difference between the current OBV and the previous OBV to measure changes in volume momentum. It calculates the average net change and average total change of these OBV differences over a specified period using a selected averaging method (e.g., EMA, SMA). By dividing the average net change by the average total change, it obtains a change ratio that reflects the strength and direction of volume momentum.
This change ratio is then scaled to an RSI-like value between 0 and 100, which is used to derive an adaptive smoothing factor (alpha). The alpha adjusts dynamically—when the change ratio indicates strong momentum, alpha increases, making the indicator more responsive to recent changes; when momentum is weak, alpha decreases, increasing smoothing to filter out noise.
The adaptive OBV is calculated by applying this alpha to combine the current OBV and the previous adaptive OBV value. This adaptive smoothing allows the indicator to adjust its sensitivity based on market conditions, becoming more responsive during strong momentum and more stable during weak momentum.
A smoothed OBV signal line is also computed using weighted moving averages for comparison. By analyzing the difference between the adaptive OBV and this smoothed signal line, the indicator identifies bullish or bearish trends. Positive differences suggest bullish momentum (bars above the middle line), while negative differences indicate bearish momentum (bars below the middle line).
• Volatility Calculations
The volatility function in the AOBV indicator identifies significant changes in volume momentum by estimating the variability of recent momentum shifts. It begins by calculating the difference between the AOBV and its smoothed signal line, capturing the current change in volume momentum. To assess volatility, the function employs exponential smoothing to compute adaptive averages of both the volume and the squared volume over a specified lookback period. By combining these averages, it estimates the current standard deviation of the volume momentum changes, effectively measuring how much the momentum deviates from its average level.
This estimated volatility is then compared to historical volatility values over the lookback period to determine how frequently the current volatility exceeds past levels. If the proportion of times the current volatility is higher than previous values and it surpasses a user-defined threshold, it signals a significant volatility event, indicating a potential volume climax
• Trend Calculations
As outlined earlier in description, the trend function is composed of several components:
The Supertrend indicator calculates dynamic support and resistance levels based on price movements and volatility using the Average True Range. It assesses whether the closing price is above or below these levels to determine the primary trend direction. If the price is above the Supertrend line: The market is considered to be in an uptrend. If the price is below the Supertrend line: The market is considered to be in a downtrend.
The Vertical Horizontal Filter measures the strength of the trend by comparing the price range over a period to the sum of absolute price changes. It does this by comparing the difference between the highest and lowest prices over a given period (the "vertical" movement) to the sum of the absolute differences between consecutive prices (the "horizontal" movement). A higher VHF value indicates a stronger, more directional trend, while a lower value suggests that the market is moving sideways without a clear trend.. If the VHF detects consolidation, it downgrades the trend strength indicated by the Supertrend. This prevents the trend function from overemphasizing the Supertrend's signals when the market lacks clear direction.
The Adaptive RSI Analyzes recent changes in the AOBV to identify whether volume momentum is strengthening or weakening (based on the volume percent change) correlating price movement with volume momentum. It only upgrades or downgrades on a bar by bar basis if price movement is correlating with percent change. This acts as a corrective measure against the VHF since quiet periods (consolidation) can occur between strong moves. The alpha generated from the adaptive function is the same as the one generated with the AOBV calculations.
█ Disclaimer
This script is provided for educational and informational purposes only and should not be considered financial advice. Trading financial instruments carries a high level of risk and may not be suitable for all investors. Before using this script, please consult with a qualified financial advisor to ensure it aligns with your individual circumstances. The author does not guarantee the accuracy or completeness of the script and is not responsible for any losses or damages that may occur from its use. Use this script at your own risk.
GTA MARKET SENTIMENTGTA Market Sentiment Indicator – Multi-Timeframe Momentum Analysis
Technical Overview
The GTA Market Sentiment indicator is a multi-timeframe momentum analysis tool that calculates trend strength and directional bias by aggregating data from higher timeframes. It applies a timeframe multiplier to derive price data from three progressively larger timeframes, providing a broader perspective on market conditions.
Key Components:
Multi-Timeframe Data Aggregation:
Uses a timeframe multiplier to fetch price data from three higher timeframes.
Computes an averaged price input to smoothen noise and enhance trend clarity.
Exponential Moving Averages (EMAs):
Two EMAs (fast and slow) are calculated on the multi-timeframe aggregated price.
A signal line is derived using an additional EMA to track momentum shifts.
Histogram Representation:
Displays the difference between the moving averages as a histogram.
Implements a gradient color fill to visually indicate trend shifts.
Histogram color intensity adapts dynamically to signal strength variations.
Slope Calculation:
Computes the slope of the aggregated momentum data to assess trend strength.
Helps detect acceleration or deceleration in trend movement.
Zero Line & Signal Levels:
Zero line acts as a baseline for trend bias determination.
Additional signal levels provide reference points for potential trend shifts.
Customization & Parameters:
Time Frame Multiplier: Adjustable multiplier for selecting higher timeframes.
Fast, Slow, and Signal Lengths: User-defined parameters to modify responsiveness.
Moving Average Display Toggle: Option to enable or disable visualization of EMAs.
Usage Considerations:
Designed for multi-timeframe confirmation and momentum-based trend assessment.
Suitable for analyzing trend consistency across different time horizons.
Can be combined with other technical tools for deeper market context.
This indicator provides a structured approach to momentum analysis by leveraging multiple timeframes, smoothing out short-term noise, and offering a clearer visualization of trend dynamics.
Multiple Values TableThis Pine Script indicator, named "Multiple Values Table," provides a comprehensive view of various technical indicators in a tabular format directly on your trading chart. It allows traders to quickly assess multiple metrics without switching between different charts or panels.
Key Features:
Table Position and Size:
Users can choose the position of the table on the chart (e.g., top left, top right).
The size of the table can be adjusted (e.g., tiny, small, normal, large).
Moving Averages:
Calculates the 5-day Exponential Moving Average (5DEMA) using daily data.
Calculates the 5-week and 20-week EMAs (5WEMA and 20WEMA) using weekly data.
Indicates whether the current price is above or below these moving averages in percentage terms.
Drawdown and Williams VIX Fix:
Computes the drawdown from the 365-day high to the current close.
Calculates the Williams VIX Fix (WVF), which measures the volatility of the asset.
Shows both the current WVF and a 2% drawdown level.
Relative Strength Index (RSI):
Displays the current RSI and compares it to the RSI from 14 days ago.
Indicates whether the RSI is increasing, decreasing, or flat.
Stochastic RSI:
Computes the Stochastic RSI and compares it to the value from 14 days ago.
Indicates whether the Stochastic RSI is increasing, decreasing, or flat.
Normalized MACD (NMACD):
Calculates the Normalized MACD values.
Indicates whether the MACD is increasing, decreasing, or flat.
Awesome Oscillator (AO):
Calculates the AO on a daily timeframe.
Indicates whether the AO is increasing, decreasing, or flat.
Volume Analysis:
Displays the average volume over the last 22 days.
Shows the current day's volume as a percentage of the average volume.
Percentile Calculations:
Calculates the current percentile rank of the WVF and ATH over specified periods.
Indicates the percentile rank of the current volume percentage over the past period.
Table Display:
All these values are presented in a neatly formatted table.
The table updates dynamically with the latest data.
Example Use Cases:
Comprehensive Market Analysis: Quickly assess multiple indicators at a glance.
Trend and Momentum Analysis: Identify trends and momentum changes based on various moving averages and oscillators.
Volatility and Drawdown Monitoring: Track volatility and drawdown levels to manage risk effectively.
This script offers a powerful tool for traders who want to have a holistic view of various technical indicators in one place. It provides flexibility in customization and a user-friendly interface to enhance your trading experience.
MOKI V1The "MOKI V1" script is a trading strategy on the TradingView platform that uses a combination of two key indicators to identify buy and sell signals:
EMA200 (Exponential Moving Average 200): Used to determine the overall market trend. This line helps ensure that trades are made in the direction of the primary market trend.
RSI (Relative Strength Index): Used to measure the strength or weakness of a trend. In this strategy, a reading above 50 for the RSI indicates stronger buy signals.
Engulfing Pattern: This candlestick pattern occurs when a green (bullish) candle completely engulfs the previous red (bearish) candle. It is used as a buy signal when combined with the other indicators.
Double RSI + MA Signal [AlgoRich]Objective:
This indicator combines two RSI (Relative Strength Index) calculations with moving averages applied to each. It generates visual signals to help identify overbought, oversold conditions, and potential trend reversals.
Functions and Key Features:
Dual Customizable RSI:
Two RSIs are calculated using different periods (for example, one with 7 periods and another with 14 periods).
This allows you to compare two perspectives on price strength over different timeframes.
Selectable Moving Averages for the RSI:
Each RSI can be smoothed using a moving average, with the type being selectable:
EMA (Exponential Moving Average)
SMA (Simple Moving Average)
WMA (Weighted Moving Average)
DEMA (Double Exponential Moving Average), which is calculated in a custom way for a faster response.
You can also independently set the length (period) of these moving averages for each RSI.
Display of Key Levels:
Horizontal lines are drawn at important levels (80, 70, 50, 30, and 20).
These levels help identify overbought conditions (above 70 or 80) and oversold conditions (below 30 or 20).
Dynamic Colors and Fill Between the RSIs:
The two RSIs are plotted with dynamic colors that change based on their relationship:
For example, if the shorter-period RSI is above the longer-period RSI, a color (such as green) is used to indicate strength; otherwise, another color (such as red) is applied.
Additionally, a fill is drawn between the two RSIs that changes tone according to which RSI is dominant, making it easier to visualize divergences or convergences between them.
Signals Through Moving Averages Applied to the RSI:
The moving averages applied to each RSI act as an additional reference line, helping to detect when the RSI is accelerating or stabilizing.
These lines are displayed on the chart in contrasting colors to make them easy to identify.
Benefits of Using This Indicator:
Early Trend Reversal Detection:
Combining two RSIs with different periods and their moving averages can help identify divergences and early changes in price strength.
Clear Visual Presentation:
The dynamic colors and fill between the RSIs provide a clear visual representation of which side (bullish or bearish) is dominating at any given time.
Flexibility and Customization:
The adjustable parameters allow you to tailor the indicator to different assets and timeframes, according to your trading preferences.
Alpha Beta Gamma OscillatorThis momentum oscillator calculates three key ratios to analyze price position within a dynamic range:
1. **Alpha (Blue Line)**
`Alpha = (Current Close - Lowest Close) / Lookback Period`
Measures the absolute price elevation above the recent low, normalized by time. Represents raw upward momentum.
2. **Beta (Red/Blue Line)**
`Beta = (Highest Close - Lowest Close) / Lookback Period`
Calculates the normalized price range volatility over the period. Acts as a denominator for relative positioning.
3. **Gamma (Green/Red Line)**
`Gamma = Alpha / Beta`
Creates a 0-1 bounded oscillator showing relative position within the recent price range:
- 0 = At period's lowest close
- 1 = At period's highest close
- 0.5 = Midpoint of range
**Key Features:**
- Dynamic horizontal levels (default 15/85) for overbought/oversold zones
- Color-coded momentum direction:
- Beta turns red when expanding volatility
- Gamma turns green when strengthening momentum
- Candle visualization reinforces gamma's directional bias
- All calculations adapt automatically to the user-defined lookback period
**Interpretation Guide:**
- Gamma > 0.15 suggests overbought conditions
- Gamma < 0.85 indicates oversold territory
- Converging Alpha/Beta signals range contraction
- Gamma candles + line color alignment confirms trend strength
*Usage: Best applied to identify mean-reversion opportunities and confirm breakout/breakdown scenarios in ranging markets.*
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This description maintains technical accuracy while being accessible to traders, with clear attribution to najoomi ji as the creator.
Overextension Oscillator [by DanielM]The Overextension Oscillator is an indicator that detects when a market move has extended significantly beyond its typical range, signaling potential areas for a correction or reversal. Unlike traditional oscillators that rely on fixed overbought/oversold levels, this tool dynamically adjusts its thresholds based on historical swing high and swing low movements.
By analyzing all swing points on the chart, the indicator determines the expected range of price movements and identifies when the price extends beyond normal levels. Since every asset has different price behavior and volatility, swing lengths may vary from asset to asset, ensuring that overextension is measured relative to each market's historical price behavior.
How It Works
1️⃣ Swing Detection & Data Collection
The indicator scans all available swing highs and swing lows on the chart to gather a complete dataset of past price fluctuations.
It records the percentage differences between swings to determine how much price typically moves in a given market.
2️⃣ Overextension Calculation
Using the stored swing data, the indicator calculates:
Average Swing Difference – Measures the average percentage difference between swings.
Average Move Percentage – Determines the typical magnitude of price moves within a trend cycle.
These values are used to create dynamic overextension thresholds that adjust based on historical data.
3️⃣ Price Distance & Overextension Measurement
The indicator calculates the distance between the current price and the closest historical swing point. If this distance exceeds the predefined threshold based on past swings, the move is considered overextended. The greater the deviation, the higher the probability of a pullback or short-term reversal.
4️⃣ Buy/Sell Signal Generation
A Buy signal is generated when the price has dropped below an overextended threshold relative to a past swing low.
A Sell signal is generated when the price has risen beyond an overextended threshold relative to a past swing high.
These signals indicate that the price has reached a level where it historically tends to slow down or reverse.
RSI (Pr)The "RSI (Pr)" indicator enhances the traditional Relative Strength Index (RSI) by incorporating dynamic bands and highlighting extreme market conditions directly on the price chart. This approach offers traders a more intuitive visualization of potential overbought and oversold zones, facilitating timely decision-making.
Key Features:
Dynamic RSI Bands: The indicator calculates upper and lower bands based on user-defined overbought and oversold levels. These bands adjust in real-time, providing a responsive measure of market extremes.
Visual Alerts: Background colors change when the price moves outside the RSI bands, offering immediate visual cues of potential market reversals.
Buy/Sell Signals: The script places "BUY" and "SELL" labels on the chart when the price crosses above or below the RSI bands, assisting traders in identifying potential entry and exit points.
How It Works:
RSI Calculation: The script computes the RSI based on the closing price and a user-defined length (default is 14 periods).
Exponential Moving Averages (EMA): It calculates the EMA of the maximum gains and losses to smooth out the data, enhancing the reliability of the RSI bands.
Upper and Lower Bands: Using the smoothed data, the script determines the upper (resistance) and lower (support) bands, which represent dynamic overbought and oversold levels.
Visual Indicators: The script plots the upper and lower bands, as well as a midline, directly on the price chart. Background colors change when the price exceeds these bands, and "BUY" or "SELL" labels appear at crossover points.
Usage:
Overbought Conditions: When the price crosses above the upper band, it may indicate an overbought condition, suggesting a potential selling opportunity.
Oversold Conditions: When the price crosses below the lower band, it may indicate an oversold condition, suggesting a potential buying opportunity.
Customization:
Users can adjust the following parameters to suit their trading preferences:
RSI Overbought Level: Default is 70.
RSI Oversold Level: Default is 30.
RSI Length: Default is 14 periods.
Disclaimer:
This indicator is designed for educational purposes and should not be construed as financial advice. Trading involves significant risk, and it's essential to conduct thorough research and consider your financial situation before making trading decisions. Past performance is not indicative of future results.
By integrating dynamic RSI bands and clear visual signals directly onto the price chart, this indicator aims to provide traders with actionable insights into market conditions, enhancing the traditional RSI analysis.
WAGMI LAB Trend Reversal Indicator HMA-Kahlman (m15)WAGMI HMA-Kahlman Trend Reversal Indicator
This indicator combines the Hull Moving Average (HMA) with the Kahlman filter to provide a dynamic trend reversal signal, perfect for volatile assets like Bitcoin. The strategy works particularly well on lower timeframes, making it ideal for intraday trading and fast-moving markets.
Key Features:
Trend Detection: It uses a blend of HMA and Kahlman filters to detect trend reversals, providing more accurate and timely signals.
Volatility Adaptability: Designed with volatile assets like Bitcoin in mind, this indicator adapts to rapid price movements, offering smoother trend detection during high volatility.
Easy Visualization: Buy (B) and Sell (S) signals are clearly marked with labels, helping traders spot trend shifts quickly and accurately.
Trendlines Module: The indicator plots trendlines based on pivot points, highlighting important support and resistance levels. This helps traders understand the market structure and identify potential breakout or breakdown zones.
Customizable: Adjust the HMA and Kahlman parameters to fit different assets or trading styles, making it flexible for various market conditions.
Usage Tips:
Best Timeframes: The indicator performs exceptionally well on lower timeframes (such as 15-minute to 1-hour charts), making it ideal for scalping and short-term trading strategies.
Ideal for Volatile Assets: This strategy is perfect for highly volatile assets like Bitcoin, but can also be applied to other cryptocurrencies and traditional markets with high price fluctuations.
Signal Confirmation: Use the trend signals (green for uptrend, red for downtrend) along with the buy/sell labels to help you confirm potential entries and exits. It's also recommended to combine the signals with other technical tools like volume analysis or RSI for enhanced confirmation.
Trendline Analysis: The plotted trendlines provide additional visual context to identify key market zones, supporting your trading decisions with a clear view of ongoing trends and possible reversal areas.
Risk Management: As with any strategy, always consider proper risk management techniques, such as stop-loss and take-profit levels, to protect against unforeseen market moves.
Volume & Trend Confluence OscillatorVolume & Trend Confluence Oscillator (VTCO)
Overview:
The Volume & Trend Confluence Oscillator (VTCO) is a technical analysis tool designed to help traders assess market conditions by integrating volume analysis, momentum, and trend direction into a single oscillator. This indicator provides traders with additional confirmation when evaluating potential trade entries and exits.
Key Features:
Volume Analysis: Calculates a Z-score to detect unusual trading activity.
Momentum Measurement: Evaluates the rate of price change to gauge market velocity.
Trend Confirmation: Utilizes an Exponential Moving Average (EMA) to assess overall market direction.
Signal Filtering: Incorporates minimum movement thresholds and a confirmation period to reduce false signals.
Visual Enhancements: Background shading indicates trend direction, and buy/sell markers highlight key signals.
How It Works:
The VTCO applies a volume multiplier to momentum readings when volume activity significantly deviates from its historical norm. Additionally, it prioritizes momentum moves that align with the prevailing market trend. A smoothing mechanism refines the oscillator’s signal line, ensuring a more stable and actionable output. The indicator generates alerts when key conditions are met, assisting traders in identifying potential trend shifts.
Signal Generation:
Buy Signal: Triggered when the oscillator crosses above zero after an oversold condition, ideally within an uptrend.
Sell Signal: Triggered when the oscillator crosses below zero after an overbought condition, ideally within a downtrend.
Alerts: Configurable alerts notify traders when key market conditions are met.
Usage Considerations:
Works effectively across various timeframes but may provide more reliable signals on higher timeframes.
Best utilized in conjunction with additional technical indicators and risk management strategies.
No indicator guarantees future performance; proper analysis and trade management remain essential.
Disclaimer:
This indicator is provided for educational purposes only and should not be considered financial advice. Trading involves risk, and past performance is not indicative of future results. Always conduct independent analysis before making trading decisions.
TDI 7 MA and HISTOGRAMTDI %K Histogram with 7 MA
Overview
This indicator enhances trend and momentum analysis using the %K line from the Traders Dynamic Index (TDI), combined with a 7-period moving average (MA) and a histogram.
How It Works
The script calculates %K (similar to Stochastic RSI), representing the relative price position within a given range.
A 7-period Simple Moving Average (SMA) is applied to smooth the %K line, reducing noise and improving trend clarity.
A histogram is plotted based on the difference between %K and the 7-period MA:
Green bars indicate that %K is above the 7-period MA, suggesting bullish momentum.
Red bars indicate that %K is below the 7-period MA, suggesting bearish momentum.
Key Features
-%K Line (Blue) – Reflects short-term momentum shifts.
-7-period MA (Purple) – Helps smooth out fluctuations in %K for better trend identification.
-Histogram (Green/Red Columns) – Highlights momentum shifts visually.
Overbought (68), Midpoint (50), and Oversold (32) Levels – Provides reference points for potential reversals or trend continuation.
How to Use
Bullish Confirmation: When the histogram turns green and %K is above the 7 MA, it suggests upward momentum.
Bearish Confirmation: When the histogram turns red and %K is below the 7 MA, it suggests downward momentum.
Overbought/Oversold Conditions: Use the 68 and 32 levels as potential reversal zones, but always confirm with price action.
Midpoint (50 Level): Acts as a dynamic support/resistance area for momentum shifts.
This indicator is suitable for trend-following and momentum-based trading strategies, whether on lower timeframes for scalping or higher timeframes for swing trading.
Try it out and integrate it with your trading system to refine your entries and exits!
KRI For Loop | QuantumResearchIntroducing Rocheur’s KRI For Loop Indicator
The KRI For Loop indicator is an advanced trend-following tool that enhances the traditional Kairi Relative Index (KRI) with a for-loop scoring mechanism. The Kairi Relative Index (KRI) measures the percentage deviation of price from its smoothed moving average, helping traders identify market trends and reversals. By incorporating a for-loop calculation, this version refines trend detection, making it a powerful tool for traders seeking precise entry and exit points.
Understanding the KRI For Loop
The Kairi Relative Index (KRI) is a momentum-based indicator that calculates how far the current price deviates from its moving average, expressed as a percentage. It is widely used to identify overbought and oversold conditions, as well as potential trend reversals.
In this enhanced version, a for-loop scoring mechanism systematically evaluates KRI values within a defined range to determine trend strength:
KRI Calculation: The formula computes the percentage difference between price and an Exponential Moving Average (EMA) of a user-defined length.
For-Loop Scoring: A dynamic scoring system assesses the strength of KRI values across a range (default: -20 to 20), helping to refine market trend analysis.
Threshold-Based Signal Generation:
Long Signal: Triggered when the for-loop score surpasses the long threshold (default: 8).
Short Signal: Triggered when the score falls below the short threshold (default: -5).
Visual Representation
The KRI For Loop indicator provides a clear, color-coded trend analysis:
Green Bars: Indicate bullish conditions when the score surpasses the long threshold, signaling a potential buy opportunity.
Red Bars: Indicate bearish conditions when the score drops below the short threshold, suggesting a sell opportunity.
Gray Bars: Show neutral conditions when the score remains within the defined range.
KRI Bands: Three horizontal bands help visualize market structure:
Upper Band: Represents the bullish threshold.
Middle Band: Zero line for neutral conditions.
Lower Band: Represents the bearish threshold.
Background Fill: A shaded area between the bands highlights trend intensity.
Customization & Parameters
The KRI For Loop indicator offers multiple user-configurable settings for flexibility:
KRI Length: Default set to 27, determines the EMA smoothing period.
Source Price: Selectable input price for calculations (default: close).
Scoring Range (a, b): Defines the range of KRI values assessed in the for-loop (default: -20 to 20).
Long & Short Thresholds:
Long Threshold: Default set to 8, determines when bullish conditions are strong enough for a buy signal.
Short Threshold: Default set to -5, identifies bearish conditions for sell signals.
Color Modes: Choose from eight distinct color schemes to personalize the indicator’s appearance.
Trading Applications
This indicator is highly adaptable and can be applied to various trading strategies, including:
Momentum Trading: Evaluates trend strength based on KRI deviation and for-loop scoring.
Trend Following: Helps traders stay in profitable trends by identifying strong bullish and bearish conditions.
Reversal Detection: The crossing of key KRI thresholds can signal potential market reversals.
Risk Management: Clearly defined entry and exit rules help traders manage risk effectively.
Final Note
Rocheur’s KRI For Loop indicator combines the power of the Kairi Relative Index (KRI) with an advanced for-loop scoring method to deliver a refined market trend analysis. This structured approach offers traders a dynamic and visually intuitive tool for detecting momentum shifts and trend reversals. As always, backtesting and strategic adjustments are essential to fully optimize this indicator for real-world trading.
Golden Ratio Oscillator (GRO)Here is a description for your Golden Ratio Oscillator (GRO) indicator:
Golden Ratio Oscillator (GRO) - Overview
The Golden Ratio Oscillator (GRO) is a powerful technical analysis tool that leverages the Golden Ratio (1.618) to smooth price action and generate a normalized momentum-based oscillator. By applying a Golden Ratio-based Exponential Moving Average (EMA), the indicator offers a unique way to analyze price trends, overbought/oversold conditions, and potential reversals.
How It Works
Golden Ratio Smoothing:
The indicator applies a smoothing function based on the Golden Ratio (Φ = 1.618) to the closing price.
This creates a dynamically smoothed price curve, reducing noise while maintaining responsiveness to price changes.
Normalization for Oscillation:
The smoothed price is normalized between -1 and 1, making it a bounded oscillator that fluctuates within a fixed range.
This allows traders to easily interpret overbought and oversold conditions.
Overbought & Oversold Levels:
The oscillator includes two key horizontal reference lines:
Overbought Level (+1.0) – Indicates potential reversal zones from bullish momentum.
Oversold Level (-1.0) – Suggests possible price bottoms and reversal opportunities.
The area between these levels is visually highlighted for better clarity.
How to Use the Indicator
Trend & Momentum Analysis:
When GRO is rising, it signals increasing bullish momentum.
When GRO is falling, it indicates weakening price action or bearish momentum.
Overbought & Oversold Zones:
A reading near +1.0 suggests the market is overbought and could face selling pressure.
A reading near -1.0 indicates an oversold condition, hinting at a potential buying opportunity.
Divergence Detection:
If price makes a new high, but GRO fails to confirm, it signals a potential bearish divergence (weakening trend).
If price makes a new low while GRO holds higher, it suggests bullish divergence (potential reversal).
Customizable Parameters:
Smoothing Length: Defines the responsiveness of the indicator (default: 14).
Overbought/Oversold Levels: Can be adjusted to fine-tune entry and exit points.
Why Use the Golden Ratio Oscillator?
✅ Golden Ratio-Based Smoothing: Reduces noise while maintaining trend sensitivity.
✅ Dynamic Normalization: Adapts to market conditions, making it more intuitive.
✅ Clear Overbought/Oversold Signals: Helps in spotting potential reversals with confidence.
✅ Versatile Trading Applications: Useful for trend confirmation, reversals, and divergence analysis.
Combined Open and Close Volume MomentumCombined Open and Close Volume Momentum Indicator
This indicator calculates and visualizes the momentum of Open and Close volumes based on changes in Open Interest (OI) and price direction. It provides traders with a clear view of volume dynamics and their impact on market momentum.
Key Features:
Open Volume Momentum:
Tracks the momentum of volume associated with new positions being opened.
Differentiates between green candles (positive momentum) and red candles (negative momentum).
Accumulates momentum over time, with an option to reset periodically.
Close Volume Momentum:
Tracks the momentum of volume associated with closing existing positions.
Momentum is weighted by price direction:
Price increase → Positive momentum.
Price decrease → Negative momentum.
Accumulates momentum over time, with an option to reset periodically.
Reset Functionality:
Allows traders to reset accumulated momentum after a specified period (in days).
Customizable reset period for both Open and Close volume momentum.
Visual Representation:
Green Line → Positive Open Volume Momentum.
Red Line → Negative Open Volume Momentum.
Blue Line → Positive Close Volume Momentum.
Orange Line → Negative Close Volume Momentum.
Includes a gray dotted zero line for reference.
Use Case:
This indicator is ideal for futures traders who want to:
Analyze the impact of volume dynamics on market momentum.
Differentiate between momentum caused by opening new positions and closing existing positions.
Identify trends and reversals based on volume and price action.
Reset momentum data periodically for fresh analysis.
How It Works:
Open Volume Momentum:
Calculated from Open Interest changes when new positions are opened.
Green candles → Positive momentum.
Red candles → Negative momentum.
Accumulated over time, with optional periodic resets.
Close Volume Momentum:
Calculated from volume associated with closing positions.
Momentum is weighted by price direction:
Price increases → Positive contribution.
Price decreases → Negative contribution.
Accumulated over time, with optional periodic resets.
Reset Functionality:
Enabled by default and customizable through input settings.
Reset period is defined in days.
Visualization:
Open Volume Momentum is plotted as a line that changes color:
Green Line → Positive momentum.
Red Line → Negative momentum.
Close Volume Momentum is plotted as a line that changes color:
Blue Line → Positive momentum.
Orange Line → Negative momentum.
A gray dotted zero line is included for reference.
Market Pressure Index [AlgoAlpha]The Market Pressure Index is a cutting-edge trading tool designed to measure and visualize bullish and bearish momentum through a unique blend of volatility analysis and dynamic smoothing techniques. This indicator provides traders with an intuitive understanding of market pressure, making it easier to identify trend shifts, breakout opportunities, and key moments to take profit. Perfect for scalpers and swing traders looking for a strategic edge in volatile markets.
Key Features:
🔎 Bullish and Bearish Volatility Separation : Dynamically calculates and displays bullish and bearish momentum separately, helping traders assess market direction with precision.
🎨 Customizable Appearance: Set your preferred colors for bullish and bearish signals to match your chart's theme.
📊 Deviation-Based Upper Band : Tracks extreme volatility levels using a configurable deviation multiplier, highlighting potential breakout points.
📈 Real-Time Signal Alerts : Provides alerts for bullish and bearish crossovers, as well as take-profit signals, ensuring you never miss key market movements.
⚡ Gradient-Based Visualization : Uses color gradients to depict the intensity of market pressure, making it easy to spot changes in momentum at a glance.
How to Use:
Add the Indicator : Add the Market Pressure Index to your TradingView chart by clicking the star icon. Customize inputs like the pressure lookback period, deviation settings, and colors to fit your trading style.
Interpret the Signals : Monitor the bullish and bearish momentum columns to gauge market direction. Look for crossovers to signal potential trend changes.
Take Action : Use alerts for breakouts above the upper band or for take-profit levels to enhance your trade execution.
How It Works:
The Market Pressure Index separates bullish and bearish momentum by analyzing price movement (close vs. open) and volatility. These values are smoothed using Hull Moving Averages (HMA) to highlight trends while minimizing noise. A deviation-based upper band dynamically tracks market extremes, signaling breakout zones. Color gradients depict the intensity of momentum, offering a clear, visually intuitive representation of market pressure. Alerts are triggered when significant crossovers or take-profit conditions occur, giving traders actionable insights without constant chart monitoring.
QT RSI [ W.ARITAS ]The QT RSI is an innovative technical analysis indicator designed to enhance precision in market trend identification and decision-making. Developed using advanced concepts in quantum mechanics, machine learning (LSTM), and signal processing, this indicator provides actionable insights for traders across multiple asset classes, including stocks, crypto, and forex.
Key Features:
Dynamic Color Gradient: Visualizes market conditions for intuitive interpretation:
Green: Strong buy signal indicating bullish momentum.
Blue: Neutral or observation zone, suggesting caution or lack of a clear trend.
Red: Strong sell signal indicating bearish momentum.
Quantum-Enhanced RSI: Integrates adaptive energy levels, dynamic smoothing, and quantum oscillators for precise trend detection.
Hybrid Machine Learning Model: Combines LSTM neural networks and wavelet transforms for accurate prediction and signal refinement.
Customizable Settings: Includes advanced parameters for dynamic thresholds, sensitivity adjustment, and noise reduction using Kalman and Jurik filters.
How to Use:
Interpret the Color Gradient:
Green Zone: Indicates bullish conditions and potential buy opportunities. Look for upward momentum in the RSI plot.
Blue Zone: Represents a neutral or consolidation phase. Monitor the market for trend confirmation.
Red Zone: Indicates bearish conditions and potential sell opportunities. Look for downward momentum in the RSI plot.
Follow Overbought/Oversold Boundaries:
Use the upper and lower RSI boundaries to identify overbought and oversold conditions.
Leverage Advanced Filtering:
The smoothed signals and quantum oscillator provide a robust framework for filtering false signals, making it suitable for volatile markets.
Application: Ideal for traders and analysts seeking high-precision tools for:
Identifying entry and exit points.
Detecting market reversals and momentum shifts.
Enhancing algorithmic trading strategies with cutting-edge analytics.
Weighted Close SumWeighted Close Sum Indicator - Overview
The Weighted Close Sum Indicator is a dynamic and adaptive technical tool designed to analyze price action by incorporating a volatility-adjusted weighted smoothing approach. Unlike traditional moving averages, this indicator adjusts its smoothing length based on market volatility, making it highly responsive to price fluctuations while maintaining accuracy in trend detection.
How It Works
Dynamic Length Adjustment Using ATR:
The indicator calculates the Average True Range (ATR) over a default period of 14 to gauge market volatility.
A dynamic smoothing length is computed based on the user-defined length and a volatility multiplier, allowing the indicator to adapt to changing market conditions.
Formula:
Dynamic Length=Length×(1+ATRClose Price×Multiplier)
Dynamic Length=Length×(1+Close PriceATR×Multiplier)
Cosine-Weighted Smoothing:
A set of weights is calculated using a cosine function to create a smooth and responsive weighting curve.
These weights are then applied to past closing prices, emphasizing recent data while retaining a natural tapering effect for older data points.
Weighted Close Sum Calculation:
The final value, known as the Cumulative Sum of Moving Averages (CSMA), is computed by multiplying the closing prices with their corresponding weights and summing them up.
This results in a smooth representation of price trends that dynamically adjusts based on market conditions.
How to Use the Indicator
Trend Identification:
Rising values of the Weighted Close Sum indicate an uptrend, while declining values suggest a downtrend.
Volatility Sensitivity:
The adaptive length ensures that the indicator responds faster during high volatility and smooths out during calmer periods, making it suitable for trend-following strategies.
Customizable Parameters:
Length: Controls the base period for calculation. A higher length provides smoother outputs, while a lower value makes the indicator more sensitive.
Volatility Multiplier: Adjusts the sensitivity of the indicator to price fluctuations. A higher multiplier increases responsiveness during volatile periods.
Two-Pole Oscillator [BigBeluga]
The Two-Pole Oscillator is an advanced smoothing oscillator designed to provide traders with precise market signals by leveraging deviation-based calculations combined with a unique two-pole filtering technique. It offers clear visual representation and actionable signals for smart trading decisions.
🔵Key Features:
Two-Pole Filtering: Smooths out the main oscillator signal to reduce noise, providing a cleaner and more reliable view of market momentum and trend strength.
// Two-pole smooth filter function
f_two_pole_filter(source, length) =>
var float smooth1 = na
var float smooth2 = na
alpha = 2.0 / (length + 1)
if na(smooth1)
smooth1 := source
else
smooth1 := (1 - alpha) * smooth1 + alpha * source
if na(smooth2)
smooth2 := smooth1
else
smooth2 := (1 - alpha) * smooth2 + alpha * smooth1
Deviation-Based Oscillator: Utilizes price deviations from the mean to generate dynamic signals, making it ideal for detecting overbought and oversold conditions.
float sma1 = ta.sma(close, 25)
float sma_n1 = ((close - sma1) - ta.sma(close - sma1, 25)) / ta.stdev(close - sma1, 25)
Signal Gradient Strength: Signals on the main oscillator line feature gradient coloring based on their proximity to the 0 level:
➔ Closer to 0: More transparent, indicating weaker signals.
➔ Closer to 1 or -1: Less transparent, highlighting stronger signals.
Level-Based Signal Validation: Parallel levels are plotted on the chart for each signal:
➔ If a level is crossed by price, the signal is invalidated, marked by an "X" at the invalidation point.
Trend Continuation
Invalidation Levels: Serve as potential stop-loss or trade-reversal zones, enabling traders to make more informed and disciplined trading decisions.
Dynamic Chart Plotting: Signals are plotted directly on the chart with corresponding levels, providing a comprehensive visual representation for easy interpretation.
🔵How It Works:
The oscillator calculates price deviation from a mean value and applies two-pole filtering to smooth the resulting signal.
Gradient-colored signals reflect their strength, with transparency indicating proximity to the 0 level on the oscillator scale.
Buy and sell signals are generated based on crossovers and crossunders of the oscillator line with a signal line.
If a level is crossed, the corresponding signal is marked with a "X" plotted on the chart at the crossover point.
🔵Use Cases:
Detecting overbought or oversold market conditions with a smoother, noise-free oscillator.
Using invalidation levels to set clear stop-loss or trade exit points.
Identifying strong momentum signals and filtering out weaker, less reliable ones.
Combining oscillator signals with price action for more precise trade entries and exits.
This indicator is perfect for traders seeking a refined approach to oscillator analysis, combining signal strength visualization with actionable invalidation levels to enhance trading precision and strategy.
Choppiness IndexThis Pine Script v6 indicator calculates the Choppiness Index over a user-defined length and segments it based on user-defined thresholds for choppy and trending market conditions. The indicator allows users to toggle the visibility of choppy, trending, and neutral segments using checkboxes.
Here's how it works:
Inputs: Users can set the length for the Choppiness Index calculation and thresholds for choppy and trending conditions. They can also choose which segments to display.
Choppiness Index Calculation: The script calculates the Choppiness Index using the ATR and the highest-high and lowest-low over the specified length.
Segment Determination: The script determines which segment the current Choppiness Index value falls into based on the thresholds. The color changes exactly at the threshold values.
Dynamic Plotting: The Choppiness Index is plotted with a color that changes based on the segment. The plot is only visible if the segment is "turned on" by the user.
Threshold Lines: Dashed horizontal lines are plotted at the choppy and trending thresholds for reference.
This indicator helps traders visualize market conditions and identify potential transitions between choppy and trending phases, with precise color changes at the threshold values.
Whale Activity Impact OscillatorThe "Whale Activity Impact Oscillator" is a Pine Script v6 component designed to identify abnormal price movements caused by potential whale activity in the crypto market.
Here's how it works:
Inputs: The script allows users to configure the volume spike multiplier, price spike multiplier, lookback period, minimum volume threshold, and thresholds for strong buy and sell signals.
Data Calculations: It calculates the average volume and average percentage price change over the specified lookback period.
Whale Detection Logic: The script detects a volume spike if the current volume exceeds the average volume by the specified multiplier. It detects a price spike if the percentage price change exceeds the average by the specified multiplier.
Signals: A buy signal is generated when both a volume spike and a price increase are detected. A sell signal is generated when both a volume spike and a price decrease are detected.
Output: The oscillator is displayed as a histogram below the price chart. Green bars indicate buy signals, red bars indicate sell signals, and gray bars indicate normal activity. The height of the bars is proportional to the magnitude of the price change.
Alerts: The script includes alerts for whale buying and selling detected signals.
Edge Cases: The script avoids false signals in low-liquidity environments by setting a minimum volume threshold and filtering out signals during low market activity.
This component can be added to a TradingView chart to help traders identify potential whale activity and make informed trading decisions.
TVMC - Composite Indicator with Technical RatingsDescription:
The TVMC (Trend, Volume, Momentum, Composite) indicator is a powerful multi-component tool designed to provide traders with a comprehensive understanding of market conditions. By combining four essential technical analysis components—trend, momentum, volume, and volatility—this indicator offers clear and actionable insights to assist in decision-making.
Key Features:
1. Trend Component (TC):
* Based on MACD (Moving Average Convergence Divergence), this component analyzes the relationship between two exponential moving averages (fast and slow) to determine the prevailing market trend.
* The MACD signal is normalized to a range of -1 to +1 for consistency and clarity.
2. Momentum Component (MC):
* Utilizes RSI (Relative Strength Index) to measure the strength and speed of price movements.
* This component highlights overbought or oversold conditions, which may indicate potential market reversals.
3. Volume Confirmation (VC):
* Compares the current trading volume to its moving average over a specified period.
* High volume relative to the average confirms the validity of the current trend.
4. Volatility Filter (VF):
* Uses ATR (Average True Range) to gauge market volatility.
* Adjusts and smooths signals to reduce noise during periods of high volatility.
5. Technical Ratings Integration:
* Incorporates TradingView’s Technical Ratings, allowing users to validate signals using moving averages, oscillators, or a combination of both.
* Users can choose their preferred source of ratings for enhanced signal confirmation.
How It Works:
The TVMC indicator combines the weighted contributions of the Trend, Momentum, and Volume components, further refined by the Volatility Filter. Each component plays a specific role:
* Trend: Identifies whether the market is bullish, bearish, or neutral.
* Momentum: Highlights the strength of price action.
* Volume: Confirms whether the current price action is supported by sufficient trading activity.
* Volatility: Filters out excessive noise in volatile market conditions, providing a smoother and more reliable output.
Visualization:
1. Bullish Signals:
* The indicator line turns green and remains above the zero line, indicating upward momentum.
2. Bearish Signals:
* The indicator line turns red and falls below the zero line, signaling downward momentum.
3. Neutral Signals:
* The line is orange and stays near zero, indicating a lack of strong trend or momentum.
4. Zones:
* Horizontal lines at +30 and -30 mark strong bullish and bearish zones, respectively.
* A zero line is included for clear separation between bullish and bearish signals.
Recommended Usage:
* Best Timeframes: The indicator is optimized for higher timeframes such as 4-hour (H4) and daily (D1) charts.
* Trading Style: Suitable for swing and positional trading.
* Customization: The indicator allows users to adjust all major parameters (e.g., MACD, RSI, volume, and ATR settings) to fit their trading preferences.
Customization Options:
* Adjustable weights for Trend, Momentum, and Volume components.
* Fully configurable settings for MACD, RSI, Volume SMA, and ATR periods.
* Timeframe selection for multi-timeframe analysis.
Important Notes:
1. Originality: The TVMC indicator combines multiple analysis methods into a unique framework. It does not replicate or minimally modify existing indicators.
2. Transparency: The description is detailed enough for users to understand the methodology without requiring access to the code.
3. Clarity: The indicator is explained in a way that is accessible even to users unfamiliar with complex technical analysis tools.
Compliance with TradingView Rules:
* The indicator is written in Pine Script version 5, adhering to TradingView’s language standards.
* The description is written in English to ensure accessibility to the global community, with a clear explanation of all components and functionality.
* No promotional content, links, or unrelated references are included.
* The chart accompanying the indicator is clean and demonstrates its intended use clearly, with no additional indicators unless explicitly explained.
Double RSI + MA Signal [AlgoRich]This indicator combines two RSI (Relative Strength Index) indicators with their respective Exponential Moving Averages (EMA) to provide a more detailed view of the market's relative strength.
Its design allows for the identification of overbought and oversold zones, as well as potential trend reversal signals.
How does it work?
1. RSI (Relative Strength Index)
The RSI is an oscillator that measures the speed and change of price movements.
The values range between 0 and 100:
Values above 70 typically indicate overbought conditions (price may be overvalued).
Values below 30 typically indicate oversold conditions (price may be undervalued).
In this indicator, two RSIs are calculated with different periods to capture strength signals in both the short and medium term:
RSI 1: Uses a shorter period (7 by default), making it more sensitive to recent price changes.
RSI 2: Uses a longer period (14 by default), providing a more stable perspective.
2. EMAs (Exponential Moving Averages)
EMAs are calculated for each RSI to smooth their movements:
EMA RSI 1: Smooths RSI 1 (short-term).
EMA RSI 2: Smooths RSI 2 (medium-term).
These EMAs help filter market noise and allow for clearer trend identification in the RSI data.
3. Key Levels
Horizontal reference levels are defined on the chart:
80 (solid red line): Extreme overbought zone.
70 (dotted red line): Initial overbought zone.
50 (dotted gray line): Midline, acting as an equilibrium reference.
30 (dotted green line): Initial oversold zone.
20 (solid green line): Extreme oversold zone.
These levels help interpret market strength:
Above 70: The market is in a strong bullish phase (or overbought).
Below 30: The market is in a strong bearish phase (or oversold).
4. Visualization
The indicator plots:
RSI 1 and its EMA:
RSI 1: Thick green line.
EMA RSI 1: Thin white line that follows RSI 1.
RSI 2 and its EMA:
RSI 2: Thick red line.
EMA RSI 2: Transparent line (not visible in this case but can be enabled if desired).
What is this indicator used for?
1. Identifying Overbought and Oversold Conditions
Levels 70 and 30 indicate zones where the market might be near a trend reversal.
Levels 80 and 20 identify extreme conditions, often accompanied by strong price reversals.
2. Confirming Trends
If the RSI and its EMA are above 50, it indicates a bullish trend.
If the RSI and its EMA are below 50, it indicates a bearish trend.
3. Filtering False Signals
By combining two RSIs with different periods, you can confirm signals more reliably:
If both RSIs are moving in the same direction (above or below 50), the signal is stronger.
EMAs smooth out oscillations, helping to ignore irrelevant short-term movements.
Benefits for Traders
This indicator is useful for:
Scalpers and Day Traders: By using a shorter RSI (RSI 1), you can capture quick movements in the market.
Swing Traders: With the longer RSI (RSI 2), you can identify broader trends.
Risk Management: Avoid trading in extreme overbought/oversold zones (levels 80 and 20).
In summary, this indicator provides a powerful tool to evaluate the market's relative strength, combining multiple analysis timeframes and helping traders make more informed decisions.
-----------------
TRADUCCIÓN AL ESPAÑOL:
Explicación del Indicador: Double RSI + MA Signal
Este indicador combina dos RSI (Relative Strength Index) con sus respectivas medias móviles exponenciales (EMA) para proporcionar una visión más detallada de la fuerza relativa del mercado.
Su diseño permite identificar zonas de sobrecompra, sobreventa y posibles señales de cambio de tendencia.
¿Cómo funciona?
1. RSI (Relative Strength Index)
El RSI es un oscilador que mide la velocidad y el cambio en los movimientos de precios.
Los valores oscilan entre 0 y 100:
Valores por encima de 70 suelen indicar sobrecompra (precio posiblemente sobrevalorado).
Valores por debajo de 30 suelen indicar sobreventa (precio posiblemente infravalorado).
En este indicador, se calculan dos RSI con diferentes períodos para capturar señales de fuerza a corto y mediano plazo:
RSI 1: Usando un período más corto (7, por defecto), lo que lo hace más sensible a cambios recientes en el precio.
RSI 2: Usando un período más largo (14, por defecto), proporcionando una visión más estable.
2. EMAs (Exponential Moving Averages)
Se calculan EMAs de cada RSI para suavizar sus movimientos:
EMA RSI 1: Suaviza el RSI 1 (corto plazo).
EMA RSI 2: Suaviza el RSI 2 (mediano plazo).
Estas EMAs ayudan a filtrar el ruido del mercado y permiten identificar tendencias más claras en los datos del RSI.
3. Niveles Clave
Se definen niveles de referencia horizontales en el gráfico:
80 (línea sólida roja): Zona de sobrecompra extrema.
70 (línea punteada roja): Zona inicial de sobrecompra.
50 (línea gris punteada): Línea media, que actúa como una referencia de equilibrio.
30 (línea punteada verde): Zona inicial de sobreventa.
20 (línea sólida verde): Zona de sobreventa extrema.
Estos niveles ayudan a interpretar la fuerza del mercado:
Por encima de 70: El mercado está en una fase alcista fuerte (o sobrecompra).
Por debajo de 30: El mercado está en una fase bajista fuerte (o sobreventa).
4. Visualización
El indicador grafica:
RSI 1 y su EMA:
RSI 1: Línea verde gruesa.
EMA RSI 1: Línea blanca delgada, que sigue al RSI 1.
RSI 2 y su EMA:
RSI 2: Línea roja gruesa.
EMA RSI 2: Línea transparente (no visible en este caso, pero puede activarse si se desea).
¿Para qué sirve este indicador?
1. Identificar sobrecompra y sobreventa
Los niveles de 70 y 30 marcan zonas donde el mercado podría estar cerca de un cambio de tendencia.
Los niveles de 80 y 20 identifican extremos, que suelen estar acompañados de fuertes reversiones de precio.
2. Confirmar tendencias
Si el RSI y su EMA están por encima de 50, indica una tendencia alcista.
Si el RSI y su EMA están por debajo de 50, indica una tendencia bajista.
3. Filtrar señales falsas
Al combinar dos RSI con diferentes períodos, puedes confirmar señales de una forma más confiable:
Si ambos RSI están en la misma dirección (por encima o por debajo de 50), la señal es más fuerte.
Las EMAs suavizan las oscilaciones, ayudando a ignorar movimientos temporales irrelevantes.
Beneficio para los Traders
Este indicador es útil para:
Scalpers y Day Traders: Al usar un RSI más corto (RSI 1), puedes capturar movimientos rápidos en el mercado.
Swing Traders: Con el RSI más largo (RSI 2), puedes identificar tendencias más amplias.
Gestión de riesgos: Evitar operaciones en zonas de sobrecompra/sobreventa extremas (niveles 80 y 20).
En resumen, este indicador proporciona una herramienta poderosa para evaluar la fuerza relativa del mercado, combinando diferentes horizontes de análisis y ayudando a los traders a tomar decisiones informadas.
