MTF Squeeze Analyzer - [tradeviZion]MTF Squeeze Analyzer
Multi-Timeframe Squeeze Pro Analyzer Tool
Overview:
The MTF Squeeze Analyzer is a comprehensive tool designed to help traders monitor the TTM Squeeze indicator across multiple timeframes in a streamlined and efficient manner. Built with Pine Script™ version 5, this indicator enhances your market analysis by providing detailed insights into squeeze conditions and momentum shifts, enabling you to make more informed trading decisions.
Key Features:
1. Multi-Timeframe Monitoring:
Comprehensive Coverage: Track squeeze conditions across multiple timeframes, including 1-minute, 5-minute, 15-minute, 30-minute, 1-hour, 2-hour, 4-hour, and daily charts.
Squeeze Counts: Keep count of the number of consecutive bars the price has been within each squeeze level (low, mid, high), helping you assess the strength and duration of consolidation periods.
2. Dynamic Table Display:
Customizable Appearance: Adjust table position, text size, and colors to suit your preferences.
Color-Coded Indicators: Easily identify squeeze levels and momentum shifts with intuitive color schemes.
Message Integration: Features rotating messages to keep you engaged and informed.
3. Alerts for Key Market Events:
Squeeze Start and Fire Alerts: Receive notifications when a squeeze starts or fires on your selected timeframes.
Custom Squeeze Count Alerts: Set thresholds for squeeze counts and get alerted when these levels are reached, allowing you to anticipate potential breakouts.
Fully Customizable: Choose which alerts you want to receive and tailor them to your trading strategy.
4. Momentum Analysis:
Momentum Oscillator: Visualize momentum using a histogram that changes color based on momentum shifts.
Detailed Insights: Determine whether momentum is increasing or decreasing to make more strategic trading decisions.
How It Works:
The indicator is based on the TTM Squeeze concept, which identifies periods of low volatility where the market is "squeezing" before a potential breakout. It analyzes the relationship between Bollinger Bands and Keltner Channels to determine squeeze conditions and uses linear regression to calculate momentum.
1. Squeeze Levels:
No Squeeze (Green): Market is not in a squeeze.
Low Compression Squeeze (Gray): Mild consolidation, potential for a breakout.
Mid Compression Squeeze (Red): Moderate consolidation, higher breakout potential.
High Compression Squeeze (Orange): Strong consolidation, significant breakout potential.
2. Squeeze Counts:
Tracks the number of consecutive bars in each squeeze condition.
Helps identify how long the market has been consolidating, providing clues about potential breakout timing.
3. Momentum Histogram:
Upward Momentum: Shown in aqua or blue, indicating increasing or decreasing upward momentum.
Downward Momentum: Displayed in red or yellow, representing increasing or decreasing downward momentum.
Using Alerts:
Stay ahead of market movements with customizable alerts:
1. Enable Alerts in Settings:
Squeeze Start Alert: Get notified when a new squeeze begins.
Squeeze Fire Alert: Be alerted when a squeeze ends, signaling a potential breakout.
Squeeze Count Alert: Set a specific number of bars for a squeeze condition, and receive an alert when this count is reached.
2. Set Up Alerts on Your Chart:
Click on the indicator name and select " Add Alert on MTF Squeeze Analyzer ".
Choose your desired alert conditions and customize the notification settings.
Click " Create " to activate the alerts.
How to Set It Up:
1. Add the Indicator to Your Chart:
Search for " MTF Squeeze Analyzer " in the TradingView Indicators library.
Add it to your chart.
2. Customize Your Settings:
Table Display:
Choose whether to show the table and select its position on the chart.
Adjust text size and colors to enhance readability.
Timeframe Selection:
Select the timeframes you want to monitor.
Enable or disable specific timeframes based on your trading strategy.
Colors & Styles:
Customize colors for different squeeze levels and momentum shifts.
Adjust header and text colors to match your chart theme.
Alert Settings:
Enable alerts for squeeze start, squeeze fire, and squeeze counts.
Set your preferred squeeze type and count threshold for alerts.
3. Interpret the Data:
Table Information:
The table displays the squeeze status and counts for each selected timeframe.
Colors indicate the type of squeeze, making it easy to assess market conditions at a glance.
Momentum Histogram:
Use the histogram to gauge the strength and direction of market momentum.
Observe color changes to identify shifts in momentum.
Why Use MTF Squeeze Analyzer ?
Enhanced Market Insight:
Gain a deeper understanding of market dynamics by monitoring multiple timeframes simultaneously.
Identify potential breakout opportunities by analyzing squeeze durations and momentum shifts.
Customizable and User-Friendly:
Tailor the indicator to fit your trading style and preferences.
Easily adjust settings without needing to delve into the code.
Time-Efficient:
Save time by viewing all relevant squeeze information in one place.
Reduce the need to switch between different charts and timeframes.
Stay Informed with Alerts:
Never miss a critical market movement with fully customizable alerts.
Focus on other tasks while the indicator monitors the market for you.
Acknowledgment:
This tool builds upon the foundational work of John Carter , who developed the TTM Squeeze concept. It also incorporates enhancements from LazyBear and Makit0 , providing a more versatile and powerful indicator. MTF Squeeze Analyzer extends these concepts by adding multi-timeframe analysis, squeeze counting, and advanced alerting features, offering traders a comprehensive solution for market analysis.
Note: Always practice proper risk management and test the indicator thoroughly to ensure it aligns with your trading strategy. Past performance is not indicative of future results.
Trade smarter with TradeVizion—unlock your trading potential today!
Osciladores
ACCScanner[MaximizedTrading]- ACCScanner -
ACCScanner is a highly advanced and versatile TradingView indicator, specifically designed to enhance and simplify your trading experience. Whether you are a beginner or an experienced trader, ACCScanner provides all the tools you need to make informed and timely trading decisions. With a user-friendly settings menu, cutting-edge signal filtering technology, and a comprehensive alert system, ACCScanner ensures that you stay ahead of the market and never miss a key trading opportunity.
This indicator is built to adapt to your unique trading strategy, allowing for full customization and optimization. ACCScanner offers a seamless trading experience by eliminating unnecessary noise, providing only the most relevant signals, and helping you execute trades with confidence.
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🔑 Key Features:
Comprehensive Alert System: Stay ahead of the market with dynamic alerts. A "Signal incoming!" alert is triggered when trade conditions align, followed by a clear "Buy/Sell Signal" when conditions are met. Visual indicators (red for sell, green for buy) appear on the chart.
Clear and Customizable Settings: Easily customize ACCScanner for your trading strategy with a user-friendly settings menu. Switch between Desktop and Mobile modes for optimal performance.
Trading Session Time: Optimize your trading with improved session time settings for maximum efficiency.
Bollinger Bands: These bands measure market volatility, helping you identify strong signals and potential trend reversals.
RSI Bands: The RSI Bands are designed to provide an additional layer of confirmation by showing the strength of a signal. This helps you assess whether a trade setup is reliable or if caution is warranted.
EMA 200: The EMA 200 serves as a trend indicator, helping you identify the overall market direction. You can also choose to take less strong signals, as long as they align with the prevailing trend, ensuring you stay on the right side of the market.
Advanced Signal Filtering: Eliminate unnecessary signals with additional oscillator bands when signal filtering is enabled. The oscillator’s position shows signal strength—more transparent icons indicate weaker signals, focusing only on high-probability trades.
Integrated Stop Loss and Take Profit Options: Protect your trades with a range of stop loss settings, including Wick Multiplier, Fixed Stoploss, or Average Candle Size. Additionally, you can set a custom Risk Ratio for Take Profit levels, ensuring your risk management is aligned with your strategy.
Position Size Calculation: Once your settings are properly configured, ACCScanner can calculate the ideal position size, helping you manage risk and optimize trades effectively.
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🎯 Why Choose ACCScanner?
ACCScanner stands out with its powerful alert system, allowing you to stay ahead of the market without constantly monitoring your charts. After setting up the alerts, you’ll receive a "Signal incoming" notification when a potential trade is forming. Once the conditions are fully met, a clear "Buy/Sell Signal" alert will notify you, enabling swift action—even if you're away from the screen.
The ACCScanner oscillator helps you quickly assess signal strength. The light blue line (RSI) moving outside the dark blue line (Bands) indicates stronger setups, and with the Signal Strength filter, you can further refine signals. Transparent icons represent weaker signals, ensuring you focus only on high-probability trades.
ACCScanner also offers precise Stoploss, Price, and Position Size calculations, built directly into the indicator. This feature helps you manage risk efficiently. With integrated Average Candle Size calculations and customizable stop loss options, ACCScanner ensures you are trading with optimized risk management. Once all settings are correctly configured under 'Account Info', you can use the table values to execute trades with confidence.
What makes ACCScanner worth paying for is its ability to save time and enhance trading efficiency. By providing early alerts, you have time to prepare for key trading opportunities before they fully develop. This proactive approach allows you to focus on making confident decisions at the right moment, without being overwhelmed by excessive information. Additionally, the well-organized table simplifies trading by displaying all the necessary values, so you can focus on executing your strategy seamlessly.
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How to Use the ACCScanner?
⚙️ Setup Alerts
To use the ACCScanner effectively, it's crucial to set up the indicator correctly beforehand. Make sure to configure all the settings under the 'Account Info' section at the bottom of the settings menu. Proper setup is necessary to function correctly!
To set up alerts, first ensure all settings are correctly configured. Then, hover over the indicator with your mouse and click on the three dots that appear. Select 'Add Alert on ACCS ' and configure the alert settings.
🏹 3 Steps to Place a Trade with ACCScanner
Step 1: Wait for the "Signal Incoming" Alert
Once you've set up your alerts, ACCScanner will notify you when a potential trade is forming with the "Signal Incoming" alert. This is your early signal to prepare for a possible trade. At this point, begin observing the market and focus on the key indicators, such as the RSI Bands and Bollinger Bands. Check if the price or RSI is touching or approaching the outer bands, which could indicate a strong setup.
Step 2: Analyze the Situation
While waiting for the final signal, confirm whether the market conditions align with the trade strategy. If the RSI or Bollinger Bands are interacting with their respective boundaries, this strengthens the potential trade signal. Stay ready and keep a close watch on the chart for the final signal.
Step 3: React Quickly to the "Buy/Sell Signal" Alert
When you receive the "Buy/Sell Signal" alert, it means the conditions for the trade are fully met. Act quickly and use the data provided in the ACCScanner table—including Stoploss distance, Stoploss price, and Position size—to place your trade. Ensure all the settings have been configured properly under 'Account Info' beforehand so you can execute the trade smoothly and confidently.
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📌 CONCLUSION
We believe that true success comes from the synergy between the trader and the indicator, rather than relying solely on the tool itself for profitability. While many traders expect an indicator to generate profits on its own, the reality is much more nuanced.
Our goal with ACCScanner is to offer a comprehensive, customizable, and easy-to-use tool that helps traders develop a deeper understanding of market dynamics. By using ACCScanner as a support tool for informed decision-making, any trader can enhance their trading strategy and gain the confidence to act effectively.
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⚠️ Disclaimer
Past performance does not guarantee future results. All content, tools, scripts, articles, & education provided by MaximizedTrading are purely for informational & educational purposes only. Past performance is no guarantee of future results.
Arjunology for Stocks IndicatorArjunology for Stocks Indicator is a unique trend-following and exit management system that combines the power of Exponential Moving Averages (EMA) and Average True Range (ATR) to capture market trends and manage trade exits dynamically. It is designed to help traders identify potential buy and sell points based on market trends while incorporating volatility adjustments to avoid false signals and provide more reliable trade entries and exits.
Key Features:
1. Exponential Moving Averages (EMAs):
• Two EMAs (Short EMA and Long EMA) are used to determine trend direction and potential crossover signals.
• Short EMA reacts quickly to price changes, giving an indication of shorter-term trends.
• Long EMA provides a more stable measure of the overall trend direction, helping filter out market noise.
• Bullish Crossovers: When the short EMA crosses above the long EMA, it signals a potential uptrend (buy condition).
• Bearish Crossovers: When the short EMA crosses below the long EMA, it signals a potential downtrend (sell condition).
2. Average True Range (ATR):
• ATR is used to assess market volatility and avoid false signals during low volatility periods.
• A trailing stop loss mechanism based on ATR ensures that the indicator adapts to the current market environment, with higher volatility allowing for wider stops and lower volatility leading to tighter stops.
• A flat ATR threshold is used to avoid signals during quiet periods, where price movement may be too insignificant to trade effectively.
3. Buy and Sell Visual Cues:
• Green Triangle at the bottom of the candle when a bullish crossover (buy) condition is met.
• Red Triangle at the top of the candle when a bearish crossover (sell) condition is met.
• These visual cues help traders quickly identify trade entry points based on the trend signals.
4. Dynamic Exit Management:
• The indicator provides an Blue candle background to highlight exit points, with an “EXIT” label at the bottom of the candle in blue. This visual exit signal ensures clarity when a trade should be exited based on the trend reversal.
Justification for Combining EMAs and ATR in This Script:
The Exponential Moving Averages (EMAs) and Average True Range (ATR) serve complementary purposes in this script, enhancing each other’s functionality to provide a more complete trading system:
1. Trend Identification with EMAs:
• The combination of short and long EMAs is a widely trusted method for determining the trend direction. The crossovers between these EMAs provide clear entry signals for buy or sell trades. However, relying solely on EMAs can lead to false signals during periods of low volatility or market consolidation.
2. ATR for Volatility and Stop Loss:
• To prevent false signals during low-volatility conditions, the script uses ATR as a filter. This ensures that trades are only taken when the market has enough momentum, reducing the risk of being caught in “choppy” conditions where price action may be flat and untradeable.
• Additionally, the ATR-based trailing stop provides dynamic trade management, adjusting stop-loss levels according to the current volatility. This makes the system adaptive and prevents tight stops in volatile conditions or unnecessarily wide stops in calm markets.
3. Why They Work Together:
• The EMAs handle the trend direction, which is the foundation of the trading system, while the ATR adjusts the trade management to account for changing volatility. This means that the trader is always entering trades that are likely to follow a strong trend, while avoiding stagnant markets and using volatility-adaptive exit points.
• Without ATR, EMAs might generate signals during low-volatility periods that are unreliable. On the other hand, ATR alone wouldn’t provide a clear direction for trend-following. Together, these indicators create a balanced approach where trades are not only timely but also carefully managed.
How to Use:
• Buy Entry: Enter when the green triangle appears, indicating a bullish EMA crossover.
• Sell Entry: Enter short when the red triangle appears, indicating a bearish EMA crossover.
• Exit: Follow the orange background and blue “EXIT” label as a visual cue to exit the trade.
The combination of these tools allows traders to identify meaningful trend reversals while also managing risk dynamically, making the Arjunology for Stocks Indicator both versatile and effective for various market conditions.
CANSLIM IBD Relative Strength NIFTYSMLCAP250 (Daily & Weekly)This Pine Script (written in version 5) is designed to calculate the IBD Relative Strength for both daily and weekly timeframes, comparing the current chart's security to the NIFTY SMLCAP 250 index. Here's a breakdown of the code:
1. Indicator Initialization: This line sets up the indicator with both a short and full title. The overlay=true means the plot will be drawn on top of the price chart.
2. Fetching Data: This fetches the daily ("D") and weekly ("W") close prices for the NIFTY SMLCAP 250 index.
3. Relative Strength Calculation: Relative strength is calculated as the ratio of the security's current close price to the close price of the NIFTY SMLCAP 250, multiplied by 100 for both daily and weekly timeframes.
4. Timeframe-Based Selection: Here, the script checks whether the chart is in daily or weekly mode and selects the corresponding relative strength value.
5. Scaling with Multiplier: This section ensures there are at least 60 bars of data and scales the relative strength by using a multiplier derived from the 60th previous bar's close price.
6. Plotting: Finally, the scaled relative strength is plotted on the chart in black.
Improvements :
Dynamic Timeframe Handling: You might want to extend this for other timeframes, e.g., monthly.
Customization: You can add user input parameters to adjust the timeframe, scale factor, or period dynamically.
Color Enhancements: You can add color variation to indicate strength/weakness more clearly.
COT INDEXING | OPEN INTEREST [DIGGERDOG]COT INDEXING | OPEN INTEREST
This Pine Script for TradingView, titled **"COT INDEXING | OPEN INTEREST "**, is designed to analyze and visualize the **Open Interest (OI)** in conjunction with **COT (Commitment of Traders) data**. It calculates and plots an Open Interest index across multiple timeframes and highlights extreme values to help identify overbought or oversold market conditions.
Key Features:
1. **COT Data Retrieval**:
- The script fetches Open Interest from the **Legacy COT Report**.
- Open Interest data is also retrieved, representing the number of active contracts on the market. This is a key indicator of market participation.
2. **Multi-Timeframe Open Interest Index Calculation**:
- The script calculates the **Open Interest Index** across multiple timeframes (e.g., 26, 52, 156 weeks). For each timeframe, it calculates:
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- The index values show where the current Open Interest stands relative to historical extremes (high and low) over each timeframe.
3. **Extreme Value Highlighting**:
- The script highlights extreme values by marking Open Interest values above a user-defined **extreme high threshold** and below an **extreme low threshold**.
- **Red background**: Indicates Open Interest is above the extreme high threshold (potentially overbought).
- **Green background**: Indicates Open Interest is below the extreme low threshold (potentially oversold).
4. **Visualizations**:
- The script plots the **Open Interest Index** for each timeframe as a line chart.
- It also includes horizontal reference lines at 80, 50, and 20, representing typical thresholds for overbought, neutral, and oversold conditions.
5. **Customizable Inputs**:
- **Timeframes**: Users can define the time periods for the Open Interest Index calculation (e.g., 26, 52, 156 weeks).
- **Extreme Thresholds**: The **high** and **low** thresholds can be adjusted to customize the extreme levels for overbought or oversold signals.
- **Color Settings**: Colors for the plot lines and background can be customized for better visualization.
How It Works:
1. **Open Interest Index Calculation**:
- The script calculates the Open Interest Index for three different timeframes (e.g., short-term, medium-term, long-term). Each index is plotted to show how the current Open Interest compares to historical values.
2. **Extreme Value Highlighting**:
- The background color of the chart changes based on whether the Open Interest Index crosses above or below the user-defined extreme thresholds. This helps visually identify potentially overbought or oversold conditions.
3. **Multi-Timeframe Analysis**:
- By calculating the index over multiple timeframes, traders can gain insights into both short-term and long-term trends in Open Interest. This helps identify whether recent Open Interest changes are part of a larger trend or just short-term fluctuations.
Usage:
- **Market Sentiment Analysis**: Open Interest is a measure of market participation, and changes in OI can indicate shifts in market sentiment. For example, rising Open Interest during a price increase suggests a strong trend, while falling Open Interest may signal weakening momentum.
- **Trend Confirmation**: When Open Interest is rising alongside price trends, it confirms that new participants are entering the market. Conversely, falling OI during price movements suggests that the trend might lack strength.
- **Overbought/Oversold Identification**: The extreme thresholds help identify when the Open Interest has reached levels that might signal an overbought or oversold market, indicating a potential reversal.
### Example Use Case:
- A trader could use this script to monitor whether the market is gaining or losing participation (via Open Interest) as the price of a commodity moves. If Open Interest is rising along with price, this suggests a strong trend. If Open Interest starts to fall while the price rises, it could signal that the trend is running out of steam.
### Customizable Features:
- **Timeframe Adjustments**: The user can set different timeframes (e.g., short, medium, long-term) for the Open Interest Index calculation.
- **Extreme Thresholds**: Define custom thresholds for overbought and oversold conditions to suit your trading strategy. (only timeframe 1)
- **Color and Visual Settings**: Adjust the colors of the plots and background to better fit your charting style. (only timeframe 1)
This script provides a clear visual representation of Open Interest trends across multiple timeframes and highlights potential market turning points based on extreme levels in Open Interest. By integrating this with price analysis, traders can get a better sense of market momentum and strength.
[Superior FSVZO] Advanced Stochastic RSI | viResearchAdvanced Stochastic RSI | viResearch
Conceptual Foundation and Innovation
The "Advanced Stochastic RSI" indicator from viResearch blends the principles of the Stochastic Oscillator and the Relative Strength Index (RSI), enhanced with smoothing via the Double Exponential Moving Average (DEMA). This combination offers traders a more refined and responsive tool for detecting potential trend reversals and assessing market momentum. The Stochastic Oscillator applied to the RSI allows for a detailed view of overbought and oversold conditions, while DEMA further smooths the data, reducing market noise. This integration results in a powerful tool for identifying key entry and exit points in the market based on momentum shifts.
By utilizing this advanced approach, the indicator gives traders more accurate signals for detecting price trends, particularly when traditional indicators may struggle with market noise and provide unreliable signals.
Technical Composition and Calculation
The "Advanced Stochastic RSI" indicator employs several key calculations to provide a comprehensive view of market momentum. The Double Exponential Moving Average (DEMA) is applied to the closing price to smooth fluctuations and provide a cleaner dataset. The RSI is then calculated on this smoothed price, which improves the accuracy of overbought and oversold signals. A for loop evaluates the RSI values between two user-defined thresholds to determine the overall market strength.
The Stochastic Oscillator is applied to this RSI-based system, calculating the %K line using a moving average, with the %D line as a further smoothing of the %K line. The crossing of these two lines serves as the primary signal for determining market entry and exit points. A positive crossing of %K above %D signals a potential upward trend, while a negative crossing of %K below %D suggests a possible downward trend.
Features and User Inputs
The "Advanced Stochastic RSI" script offers several customizable inputs, allowing traders to fine-tune the indicator’s sensitivity and behavior. The DEMA length defines the smoothing applied to the price data before calculating the RSI, which affects how responsive or smooth the indicator is. The RSI length determines the period over which the RSI is calculated, influencing the sensitivity of the momentum signals. The system’s for loop evaluates the RSI between two thresholds, providing a way to measure market strength over a defined range.
Additionally, the %K and %D smoothing controls the lengths of the Stochastic Oscillator’s %K and %D lines, adjusting the indicator’s responsiveness to changes in RSI. Traders can also adjust the bar color and set alert conditions for when the %K line crosses the %D line, allowing for real-time notifications of potential trading signals.
Practical Applications
The "Advanced Stochastic RSI" is designed for traders seeking a more nuanced approach to momentum analysis and trend detection. By combining the Stochastic Oscillator with the RSI, traders can more effectively identify overbought and oversold conditions, improving their timing for market entries and exits. This indicator is particularly useful for detecting reversals when the %K and %D lines cross, providing clear signals of potential trend reversals, especially when these crossovers occur in overbought or oversold zones.
The combination of DEMA and RSI confirms when the market is gaining or losing momentum, reducing the risk of false signals caused by short-term volatility. The ability to customize the indicator’s sensitivity through multiple inputs makes it adaptable for both short-term and long-term trading strategies, allowing traders to fine-tune the indicator to match their specific trading style.
Advantages and Strategic Value
The "Advanced Stochastic RSI" script offers significant value by combining three powerful elements—RSI, Stochastic Oscillator, and DEMA smoothing—into a single cohesive tool. This integration enhances the accuracy of trend detection by reducing noise while maintaining responsiveness to market movements. The ability to customize the inputs ensures that the indicator can be adjusted to suit different market environments, making it a versatile tool for traders at all levels.
By using the Stochastic RSI with an added smoothing layer, the indicator reduces the risk of whipsaw trades caused by market volatility, offering traders clearer signals for trend reversals and continuation patterns. This makes the "Advanced Stochastic RSI" a robust solution for identifying key momentum shifts.
Alerts and Visual Cues
The script includes alert conditions that notify traders of key trend shifts. A "Stochastic RSI Long" alert is triggered when the %K line crosses above the %D line, signaling a potential upward trend. A "Stochastic RSI Short" alert indicates a possible downward trend when the %K line crosses below the %D line. Additionally, the visual plot of the %K and %D lines, along with color-coded fill areas, provides clear cues for interpreting market conditions in real time.
Summary and Usage Tips
The "Advanced Stochastic RSI | viResearch" indicator provides traders with a powerful tool for analyzing market momentum and detecting potential reversals. By combining the strengths of the Stochastic Oscillator, RSI, and DEMA smoothing, this indicator improves the accuracy of trend detection and reduces the likelihood of false signals caused by market noise. Incorporating this script into your trading strategy can help enhance your timing of market entries and exits, offering a reliable and customizable solution for traders at all levels.
Note: Backtests are based on past results and are not indicative of future performance.
UNDERWATER EQUITY INDEX [DIGGERDOG]UNDERWATER EQUITY INDEX
This TradingView Pine Script titled **"UNDERWATER EQUITY INDEX "** displays the percentage drawdown of an equity curve and calculates an RSI-based oscillator based on the drawdown. The oscillator is smoothed and presented with optimized colors to visually highlight bullish, bearish, and potential reversal trends.
Script Explanation:
1. **Variable Initialization:**
- `highestEquity`: This variable stores the highest value of the equity curve.
- `underwaterEquity`: This variable stores the current drawdown, calculated as a percentage relative to the highest equity value.
2. **Equity Curve:**
- The script uses the closing price (`close`) as a placeholder for the equity curve. In a real-world application, this could be replaced with an actual equity curve.
3. **Highest Equity Calculation:**
- The `highestEquity` is updated as the highest recorded equity value. If the variable is uninitialized (`na`), it is set to the current equity value.
4. **Drawdown Calculation:**
- The drawdown is calculated as the percentage difference between the current equity and the highest recorded equity value.
5. **RSI-Based Oscillator:**
- The oscillator (`osc`) is calculated using the RSI (Relative Strength Index) over a 13-period window based on the drawdown and is smoothed using a simple moving average (SMA) over 9 periods.
6. **Plot Colors:**
- **Green**: Bullish trend (equity increasing above the zero line).
- **Orange**: Warning signal (falling trend above the zero line).
- **Blue**: Potential bullish reversal (rising trend below the zero line).
- **Red**: Bearish trend (falling trend below the zero line).
7. **Plotting the Oscillator:**
- The smoothed oscillator is plotted as a line with the color codes mentioned above.
8. **Threshold Lines:**
- Three horizontal lines at 30, 50, and 70 indicate extreme points (30 and 70 signal oversold and overbought conditions, respectively).
9. **Marking Extremes:**
- When enabled, the script marks extreme values in the oscillator with a green background when the value exceeds 60 (potentially overbought) and a red background when it falls below 40 (potentially oversold).
Usage:
- **Drawdown Analysis**: Track drawdowns in the equity curve to assess risk performance.
- **Trend and Reversal Signals**: The smoothed RSI-based oscillator indicates potential bullish or bearish phases, including warning signals for possible reversals.
- **Visualization of Extremes**: Utilize the background highlighting of extreme oscillator values to immediately recognize overbought or oversold conditions.
This script is useful for monitoring risk and drawdowns while visually presenting key trend information. If you have further questions or need adjustments, feel free to let me know!
OBV OSCILLATOR [DIGGERDOG]OBV OSCILLATOR
This Pine Script for TradingView titled "OBV OSCILLATOR " is designed to plot the On-Balance Volume (OBV) Oscillator with both a smoothed and an unsmoothed version, allowing you to visualize trends in volume flow. It also highlights bullish and bearish zones with background colors and shows key levels on the chart.
Here’s a breakdown of the script’s functionality:
### **Inputs:**
- **OBV Normalization Period** (`obvLength`): Default is 14 periods for the calculation of the highest and lowest OBV values.
- **OBV Smoothing** (`obvSmoothing`): Default is 9 periods, applying a moving average to smooth the OBV values.
- **OBV Upper Limit** (`obvUpperLimit`): Default is 50, used to determine bullish zones.
- **OBV Lower Limit** (`obvLowerLimit`): Default is 50, used to determine bearish zones.
### **Calculations:**
- **OBV (On-Balance Volume):**
- The script calculates cumulative OBV using the formula `ta.cum(close > close ? volume : close < close ? -volume : 0)`.
- **OBV Oscillator:**
- The OBV is normalized by calculating its position between the highest and lowest OBV values over the given period (`obvLength`).
- Formula: `obvOscillator = 100 * (obv - obvMin) / (obvMax - obvMin)`, which scales the OBV between 0 and 100.
- **Smoothed OBV:**
- The OBV is further smoothed using a simple moving average (SMA) over the `obvSmoothing` period.
- A separate OBV Oscillator is then calculated for the smoothed OBV using the same normalization formula.
### **Visuals:**
- **OBV Oscillator and Smoothed OBV:**
- The unsmoothed OBV Oscillator is plotted in **blue**.
- The smoothed OBV Oscillator is plotted in **red** with some transparency for easier differentiation.
- **Background Color:**
- The background turns **light green** when the OBV Oscillator is above the upper limit (bullish).
- The background turns **light red** when the OBV Oscillator is below the lower limit (bearish).
- **Key Levels:**
- A **gray dotted line** represents the middle value (50).
- **Green and red dotted lines** represent the upper and lower OBV limits, respectively.
### **Usage:**
- Use the OBV Oscillator to identify strong trends based on volume flow.
- The smoothed OBV Oscillator helps filter out noise and offers a more stable trend signal.
- The background color changes provide quick visual cues for bullish and bearish conditions.
If you need further modifications or explanation, feel free to ask!
Trend CCITrend CCI (TCCI) Indicator
Description:
The Trend CCI (TCCI) indicator is a unique combination of the Commodity Channel Index (CCI) and the Average True Range (ATR), designed to identify trends and market reversals with a refined sensitivity to price volatility. The indicator plots the CCI, adjusted by an ATR filter, and color-codes the trendline to signal uptrends and downtrends.
How It Works:
This indicator uses the CCI to measure price momentum and an ATR-based filter to smooth out market noise, making it easier to detect significant shifts in the market trend. Key parameters such as the ATR Period, ATR Multiplier, and CCI Period have been carefully chosen to optimize the indicator's performance:
1. ATR Period (default: 18)
The ATR Period determines the number of periods used to calculate the **Average True Range**, which reflects market volatility. In this case, an **ATR Period of 18** has been selected for several reasons:
Balance between responsiveness and noise reduction : A period of 18 strikes a balance between being responsive to recent price movements and filtering out minor fluctuations. Shorter ATR periods might be too reactive, creating false signals, while longer periods might miss shorter-term trends.
Adaptable to various market conditions : An 18-period ATR is suitable for both intraday and swing trading strategies, making it versatile across different time frames.
Standard industry practice : Many traders use ATR settings between 14 and 20 periods as a convention for detecting reliable volatility levels.
2. ATR Multiplier (default: 1.5)
The ATR Multiplier is applied to the ATR value to define how sensitive the indicator is to volatility. In this case, a multiplier of 1.5 has been chosen:
Avoiding whipsaws in low volatility markets: By setting the multiplier to 1.5, the indicator filters out smaller, less significant price movements, reducing the likelihood of whipsaw signals (i.e., false trend reversals during periods of low volatility).
Optimizing signal accuracy: A moderate multiplier like 1.5 ensures that the indicator only generates signals when the price moves a significant distance from the average range. Higher multipliers (e.g., 2.0) may ignore valid opportunities, while lower multipliers (e.g., 1.0) might create too many signals.
Enhancing trend clarity : The multiplier’s role in widening the range allows the indicator to respond more clearly during periods of strong trends, reducing signal noise and false positives.
3. CCI Period (default: 63)
The CCI Period defines the number of periods used to calculate the Commodity Channel Index. A 63-period CCI is selected based on the following considerations:
Smoothing the momentum calculation: A longer period, such as 63, is used to smooth out the CCI and reduce the effects of short-term price fluctuations. This period captures longer-term momentum, making it ideal for identifying more significant market trends.
-Filtering out short-term noise: While shorter CCI periods (e.g., 14 or 20) may be more reactive, they tend to produce more signals, some of which may be false. A 63-period CCI focuses on stronger and more sustained price movements, providing fewer but higher-quality signals.
Adapted to intermediate trading: A 63-period CCI aligns well with traders looking for medium-term trend-following strategies, striking a balance between long-term trend identification and responsiveness to significant price shifts.
How to Use:
Green Area: When the trendline turns green, it signals that the CCI is positive, reflecting upward momentum. This can be interpreted as a buy signal, indicating the potential for long positions or continuing bullish trades.
Red Area: When the trendline turns red, it signals that the CCI is negative, reflecting downward momentum. This can be interpreted as a sell signal, indicating potential short positions or bearish trades.
ATR Filter: The ATR helps reduce false signals by ignoring minor price movements. Traders can adjust the ATR Multiplier to make the indicator more or less sensitive based on market conditions. A lower multiplier (e.g., 1.2) may increase signal frequency, while a higher multiplier (e.g., 2.0) reduces it.
Originality:
The Trend CCI (TCCI) stands out due to its combination of the CCI and ATR. While many indicators simply plot raw CCI values, this script enhances the CCI’s effectiveness by incorporating an ATR-based volatility filter. This ensures that only significant trends trigger signals, making it a more reliable tool in volatile markets. The choice of the ATR period, multiplier, and CCI period ensures a refined balance between trend detection and noise reduction, distinguishing it as a powerful trend-following indicator.
Additionally, the visual aspect—using color-coded trendlines that dynamically shift between green and red—simplifies the interpretation of market trends, offering traders a clear and immediate understanding of trend direction and momentum strength.
Final Recommendations:
Use in Trending Markets The TCCI is most effective in trending markets, where its signals align with broader market momentum. In sideways or low-volatility markets, consider adjusting the ATR multiplier or using other complementary indicators to confirm the signals.
Risk Management: Always integrate robust risk management practices, such as using stop-loss orders and position sizing, to protect against sudden market reversals or periods of heightened volatility.
Adjust for Volatility: Consider the volatility of the asset being traded. In highly volatile assets, a higher ATR multiplier (e.g., 2.0) may be necessary to filter out noise, while in more stable assets, a lower multiplier (e.g., 1.2) might generate earlier signals.
By using the Trend CCI (TCCI) indicator with a deeper understanding of its key parameters, traders can better identify trends, reduce noise, and improve their overall decision-making in the markets.
Good Profits!
Uptrick: Market MoodsThe "Uptrick: Market Moods" indicator is an advanced technical analysis tool designed for the TradingView platform. It combines three powerful indicators—Relative Strength Index (RSI), Average True Range (ATR), and Bollinger Bands—into one cohesive framework, aimed at helping traders better understand and interpret market sentiment. By capturing shifts in the emotional climate of the market, it provides a holistic view of market conditions, which can range from calm to stressed or even highly excited. This multi-dimensional analysis tool stands apart from traditional single-indicator approaches by offering a more complete picture of market dynamics, making it a valuable resource for traders looking to anticipate and react to changes in market behavior.
The RSI in the "Uptrick: Market Moods" indicator is used to measure momentum. RSI is an essential component of many technical analysis strategies, and in this tool, it is used to identify potential market extremes. When RSI values are high, they indicate an overbought condition, meaning the market may be approaching a peak. Conversely, low RSI values suggest an oversold condition, signaling that the market could be nearing a bottom. These extremes provide crucial clues about shifts in market sentiment, helping traders gauge whether the current emotional state of the market is likely to result in a reversal. This understanding is pivotal in predicting whether the market is transitioning from calm to stressed or from excited to overbought.
The Average True Range adds another layer to this analysis by offering insights into market volatility. Volatility is a key factor in understanding the mood of the market, as periods of high volatility often reflect high levels of excitement or stress, while low volatility typically indicates a calm, steady market. ATR is calculated based on the range of price movements over a given period, and the higher the value, the more volatile the market is. The "Uptrick: Market Moods" indicator uses ATR to dynamically gauge volatility levels, helping traders understand whether the market is currently moving in a way that aligns with its emotional mood. For example, an increase in ATR accompanied by an RSI value that indicates overbought conditions could suggest that the market is in a highly excited state, with the potential for either strong momentum continuation or a sharp reversal.
Bollinger Bands complement these tools by providing visual cues about price volatility and the range within which the market is likely to move. Bollinger Bands plot two standard deviations away from a simple moving average of the price. This banding technique helps traders visualize how far the price is likely to deviate from its average over a certain period. The "Uptrick: Market Moods" indicator uses Bollinger Bands to establish price boundaries and identify breakout conditions. When prices break above the upper band or below the lower band, it often signals that the market is either highly stressed or excited. This breakout condition serves as a visual representation of the market mood, alerting traders to moments when prices are moving beyond typical ranges and when significant emotional shifts are occurring in the market.
Technically, the "Uptrick: Market Moods" indicator has been developed using TradingView’s Pine Script language, a highly efficient language for building custom indicators. It employs functions like ta.rsi, ta.atr, and ta.sma to perform the necessary calculations. The use of these built-in functions ensures that the calculations are both accurate and efficient, allowing the indicator to operate in real-time without lagging, even in volatile market conditions. The ta.rsi function is used to compute the Relative Strength Index, while ta.atr calculates the Average True Range, and ta.sma is used to smooth out price data for the Bollinger Bands. These functions are applied dynamically within the script, allowing the "Uptrick: Market Moods" indicator to respond to changes in market conditions in real time.
The user interface of the "Uptrick: Market Moods" indicator is designed to provide a visually intuitive experience. The market mood is color-coded on the chart, making it easy for traders to identify whether the market is calm, stressed, or excited at a glance. This feature is especially useful for traders who need to make quick decisions in fast-moving markets. Additionally, the indicator includes an interactive table that updates in real-time, showing the most recent mood state and its frequency. This provides valuable statistical insights into market behavior over specific time frames, helping traders track the dominant emotional state of the market. Whether the market is in a prolonged calm state or rapidly transitioning through moods, this real-time feedback offers actionable data that can help traders adjust their strategies accordingly.
The RSI component of the "Uptrick: Market Moods" indicator helps detect the speed and direction of price movements, offering insight into whether the market is approaching extreme conditions. By providing signals based on overbought and oversold levels, the RSI helps traders decide whether to enter or exit positions. The ATR element acts as a volatility gauge, dynamically adjusting traders’ expectations in response to changes in market volatility. Meanwhile, the Bollinger Bands help identify trends and potential breakout conditions, serving as an additional confirmation tool that highlights when the price has moved beyond normal boundaries, indicating heightened market excitement or stress.
Despite the robust capabilities of the "Uptrick: Market Moods" indicator, it does have limitations. In markets affected by sudden shifts, such as those driven by major news events or external economic factors, the indicator’s performance may not always be reliable. These external factors can cause rapid mood swings that are difficult for any technical analysis tool to fully anticipate. Additionally, the indicator’s complexity may pose a learning curve for novice traders, particularly those who are unfamiliar with the concepts of RSI, ATR, and Bollinger Bands. However, with practice, traders can become proficient in using the tool to its full potential, leveraging the insights it provides to better navigate market shifts.
For traders seeking a deeper understanding of market sentiment, the "Uptrick: Market Moods" indicator is an invaluable resource. It is recommended for those dealing with medium to high volatility instruments, where understanding emotional shifts can offer a strategic advantage. While it can be used on its own, integrating it with other forms of analysis, such as fundamental analysis and additional technical indicators, can enhance its effectiveness. By confirming signals with other tools, traders can reduce the likelihood of false signals and improve their overall trading strategy.
To further enhance the accuracy of the "Uptrick: Market Moods" indicator, it can be integrated with volume-based tools like Volume Profile or On-Balance Volume (OBV). This combination allows traders to confirm the moods identified by the indicator with volume data, providing additional confirmation of market sentiment. For example, when the market is in an excited mood, an increase in trading volume could reinforce the reliability of that signal. Conversely, if the market is stressed but volume remains low, traders may want to proceed with caution. Using multiple indicators together creates a more comprehensive trading approach, helping traders better manage risk and make informed decisions based on multiple data points.
In conclusion, the "Uptrick: Market Moods" indicator is a powerful and unique addition to the suite of technical analysis tools available on TradingView. It provides traders with a multi-dimensional view of market sentiment by combining the analytical strengths of RSI, ATR, and Bollinger Bands into a single tool. Its ability to capture and interpret the emotional mood of the market makes it an essential tool for traders seeking to gain an edge in understanding market behavior. While the indicator has certain limitations, particularly in rapidly shifting markets, its ability to provide real-time insights into market sentiment is a valuable asset for traders of all experience levels. Used in conjunction with other tools and sound trading practices, the "Uptrick: Market Moods" indicator offers a comprehensive solution for navigating the complexities of financial markets.
Log Know Sure ThingThe Know Sure Thing indicator (KST) is a momentum based oscillator. KST is based on Rate of Change (ROC). Know Sure Thing takes four different timeframes of ROC and smooth's them out using Simple Moving Averages. KST then calculates a final value that fluctuates between positive and negative values above and below a Zero Line. There is also a signal line which is an SMA of the KST line itself. Essentially, the Know Sure Thing Indicator measures the momentum of four separate price cycles. Technical Analysts use this information to spot divergences, overbought and oversold conditions and crossovers.
KST takes the Rate of Change for four different time periods, smooth's them out with moving averages, weights them and then sums the results. The intention is to get a better understanding of the momentum for a particular security of financial instrument. The general rule is that when KST is positive, then momentum is up and when KST is negative, then momentum is down. This would translate to Bullish and Bearish markets respectively.
The original Know Sure Thing indicator (KST) was developed by Martin Pring and introduced in 1992 in Stocks & Commodities Magazine. He originally referred to the indicator as the Summed Rate of Change.
This version of the indicator "Log Know Sure Thing" (L-KST) was developed by me as a refined solution to the original. Exponential charts like Bitcoin need exponential calculations. Simplistic approaches don't work in today's world. This indicator manages to adapt in all kinds of scenarios...
From negative charts:
(notice that the original KST breaks)
To extreme charts:
(again, the original doesn't manage to capture the Bitcoin oscillation)
If you are not familiar with KST, read the following analysis:
www.tradingview.com
For a following version of this indicator I plan to incorporate actual overbought-oversold levels (if this doesn't mark the 20th).
Contrary to the original, this version of KST is bound to specific levels.
Stay tuned for that, it won't take long...
Tread lightly, for this is no-mans-land.
Use caution when using contraband indicators.
-Father Akikostas
RSI (Kernel Optimized) | Flux Charts💎 GENERAL OVERVIEW
Introducing our new KDE Optimized RSI Indicator! This indicator adds a new aspect to the well-known RSI indicator, with the help of the KDE (Kernel Density Estimation) algorithm, estimates the probability of a candlestick will be a pivot or not. For more information about the process, please check the "HOW DOES IT WORK ?" section.
Features of the new KDE Optimized RSI Indicator :
A New Approach To Pivot Detection
Customizable KDE Algorithm
Realtime RSI & KDE Dashboard
Alerts For Possible Pivots
Customizable Visuals
❓ HOW TO INTERPRET THE KDE %
The KDE % is a critical metric that reflects how closely the current RSI aligns with the KDE (Kernel Density Estimation) array. In simple terms, it represents the likelihood that the current candlestick is forming a pivot point based on historical data patterns. a low percentage suggests a lower probability of the current candlestick being a pivot point. In these cases, price action is less likely to reverse, and existing trends may continue. At moderate levels, the possibility of a pivot increases, indicating potential trend shifts or consolidations.Traders should start monitoring closely for confirmation signals. An even higher KDE % suggests a strong likelihood that the current candlestick could form a pivot point, which could lead to a reversal or significant price movement. These points often align with overbought or oversold conditions in traditional RSI analysis, making them key moments for potential trade entry or exit.
📌 HOW DOES IT WORK ?
The RSI (Relative Strength Index) is a widely used oscillator among traders. It outputs a value between 0 - 100 and gives a glimpse about the current momentum of the price action. This indicator then calculates the RSI for each candlesticks, and saves them into an array if the candlestick is a pivot. The low & high pivot RSIs' are inserted into two different arrays. Then the a KDE array is calculated for both of the low & high pivot RSI arrays. Explaining the KDE might be too much for this write-up, but for a brief explanation, here are the steps :
1. Define the necessary options for the KDE function. These are : Bandwidth & Nº Steps, Array Range (Array Max - Array Min)
2. After that, create a density range array. The array has (steps * 2 - 1) elements and they are calculated by (arrMin + i * stepCount), i being the index.
3. Then, define a kernel function. This indicator has 3 different kernel distribution modes : Uniform, Gaussian and Sigmoid
4. Then, define a temporary value for the current element of KDE array.
5. For each element E in the pivot RSI array, add "kernel(densityRange.get(i) - E, 1.0 / bandwidth)" to the temporary value.
6. Add 1.0 / arrSize * to the KDE array.
Then the prefix sum array of the KDE array is calculated. For each candlestick, the index closest to it's RSI value in the KDE array is found using binary search. Then for the low pivot KDE calculation, the sum of KDE values from found index to max index is calculated. For the high pivot KDE, the sum of 0 to found index is used. Then if high or low KDE value is greater than the activation threshold determined in the settings, a bearish or bullish arrow is plotted after bar confirmation respectively. The arrows are drawn as long as the KDE value of current candlestick is greater than the threshold. When the KDE value is out of the threshold, a less transparent arrow is drawn, indicating a possible pivot point.
🚩 UNIQUENESS
This indicator combines RSI & KDE Algorithm to get a foresight of possible pivot points. Pivot points are important entry, confirmation and exit points for traders. But to their nature, they can be only detected after more candlesticks are rendered after them. The purpose of this indicator is to alert the traders of possible pivot points using KDE algorithm right away when they are confirmed. The indicator also has a dashboard for realtime view of the current RSI & Bullish or Bearish KDE value. You can fully customize the KDE algorithm and set up alerts for pivot detection.
⚙️ SETTINGS
1. RSI Settings
RSI Length -> The amount of bars taken into account for RSI calculation.
Source -> The source value for RSI calculation.
2. Pivots
Pivot Lengths -> Pivot lengths for both high & low pivots. For example, if this value is set to 21; 21 bars before AND 21 bars after a candlestick must be higher for a candlestick to be a low pivot.
3. KDE
Activation Threshold -> This setting determines the amount of arrows shown. Higher options will result in more arrows being rendered.
Kernel -> The kernel function as explained in the upper section.
Bandwidth -> The bandwidth variable as explained in the upper section. The smoothness of the KDE function is tied to this setting.
Nº Bins -> The Nº Steps variable as explained in the upper section. It determines the precision of the KDE algorithm.
Optimized Comprehensive Analysis Table# Enhanced Comprehensive Analysis Table
This advanced indicator provides a holistic view of market sentiment by analyzing multiple technical indicators simultaneously. It's designed to give traders a quick, at-a-glance summary of market conditions across various timeframes and analysis methods.
## Key Features:
- Analyzes 9 popular technical indicators
- Weighted voting system for overall market sentiment
- Customizable indicator weights
- Clear, color-coded table display
## Indicators Analyzed:
1. MACD (Moving Average Convergence Divergence)
2. RSI (Relative Strength Index)
3. Moving Averages (50, 100, 200-period)
4. Stochastic Oscillator
5. Parabolic SAR
6. MFI (Money Flow Index)
7. CCI (Commodity Channel Index)
8. OBV (On Balance Volume)
9. ADX (Average Directional Index)
## How It Works:
Each indicator's signal is calculated and classified as bullish, bearish, or neutral. These signals are then weighted according to user-defined inputs. The weighted votes are summed to determine an overall market sentiment.
## Interpretation:
- The table displays the state of each indicator and the overall market sentiment.
- Green indicates bullish conditions, red bearish, and yellow neutral.
- The "Overall State" row at the bottom provides a quick summary of the combined analysis.
## Customization:
Users can adjust the weight of each indicator to fine-tune the analysis according to their trading strategy or market conditions.
This indicator is ideal for traders who want a comprehensive overview of market conditions without having to monitor multiple indicators separately. It's particularly useful for confirming trade setups, identifying potential trend reversals, and managing risk.
Note: This indicator is meant to be used as part of a broader trading strategy. Always combine with other forms of analysis and proper risk management.
[GL3] SMA & EMA Crossover Ribbon with Reactive Gradient CloudsGL3] SMA & EMA Crossover Ribbon with Reactive Gradient Clouds
This indicator provides a powerful blend of technical analysis tools, integrating multiple moving averages, such as Simple Moving Average (SMA) and Exponential Moving Average (EMA), along with custom moving averages like Kaufman's Adaptive Moving Average (KAMA), Jurik Moving Average (JMA), and others. The crossover strategy aims to identify trend changes with precision across different timeframes.
Key Features:
Crossover Ribbon: A set of 5 moving average pairs to capture short-, mid-, and long-term trends. The crossover between the leading and trigger lines visually indicates potential buy (uptrend) and sell (downtrend) signals.
Reactive Gradient Clouds: Dynamically color-coded clouds that visualize momentum shifts using Stochastic, RSI, MACD, and Chande Momentum. These clouds help to react faster to price changes and confirm trends:
Stochastic Cloud: Blue for bullish and Orange for bearish trends.
RSI Cloud: Purple for bullish and Yellow for bearish trends.
MACD Cloud: Green for bullish and Red for bearish trends.
Chande Momentum Cloud: Aqua for bullish and Fuchsia for bearish trends.
Alerts: Custom alerts for significant crossovers in Stochastic, RSI, MACD, and Chande Momentum, allowing traders to stay informed of potential trend reversals.
Customizable Inputs: Flexible configuration for various moving averages, lengths, and source types, along with options to show/hide gradient clouds for each momentum indicator.
This indicator is designed for traders looking to capture multiple levels of trend direction and momentum shifts. The combination of crossovers and clouds provides a clear trend direction and quicker reaction to market moves, making it a versatile tool for various trading strategies.
Disclaimer: Past performance is not indicative of future results. Always use additional risk management tools and trade responsibly
RCI-CCI-Stochastics SmoothRCI-CCI-Stochastics Smooth - (日本語解説は下記)
Overview:
The RCI-CCI-Stochastics Smooth indicator combines three popular oscillators—RCI (Rank Correlation Index), CCI (Commodity Channel Index), and Stochastics—into a single, smoothed, and performance-optimized tool. Due to the complexity of RCI calculations, adding multiple lines or applying smoothing can often slow down the display or even cause errors. This indicator overcomes these challenges by limiting the display area based on the current timeframe, ensuring smooth performance without sacrificing functionality.
Key Features:
1. Rank Correlation Index (RCI)
Multiple Periods with Smoothing: Calculates RCI for six different periods—8, 10, 20, 30, 52, and 60—providing both short-term and long-term trend analysis.
Double Smoothing: Applies double exponential moving averages (EMAs) to smooth the RCI lines, making them more readable and reducing noise.
Adaptive Display Limitation: To prevent performance issues, the indicator limits the display area based on the current timeframe, ensuring that calculations remain efficient even with multiple smoothed lines.
2. Commodity Channel Index (CCI)
Fixed Source and EMA Period: Calculates the CCI using a fixed source (close price) and a fixed EMA period (3), ensuring consistency in the smoothing process.
Smoothed Output: Applies an EMA to the CCI to produce a smoother line that is easier to interpret.
3. Stochastics Oscillator
Customizable Parameters: Allows you to set the %K, %D, and EMA smoothing periods.
Scaled Display: Adjusts the Stochastics values to align with the -100 to 100 scale used by the RCI and CCI for easier comparison.
Gradient Fill: Provides a visual gradient fill between overbought and oversold levels, enhancing the visual appeal and interpretability.
How It Works:
Performance Optimization:
Display Limitation: The indicator calculates a dynamic display limit (adjusted_limit) based on the current timeframe. This limit reduces the number of bars for which the indicator performs calculations, significantly improving performance.
Time-Based Calculation: Only computes values if the current time is within the calculated start_time, ensuring that the script doesn't waste resources on unnecessary calculations.
Smoothing Techniques:
Double EMA Smoothing: Applies a double EMA to the RCI lines, which helps in reducing volatility and making the trends more apparent.
Consistent Smoothing: Uses fixed EMA lengths for smoothing the CCI and Stochastics, providing a consistent smoothing effect across different oscillators.
How to Use:
Setup:
Add the Indicator: Apply the "RCI-CCI-Stochastics Smooth" indicator to your chart.
Configure Periods: Adjust the periods for RCI, CCI, and Stochastics according to your trading strategy.
Understand Display Limitations: Be aware that the indicator limits the display area to enhance performance. You can adjust the 表示制限値 (Display Limit) parameter if needed.
Interpretation:
RCI Lines: Use the multiple RCI lines to assess market trends across different timeframes. The smoothed lines make it easier to spot trend changes.
CCI Line: Monitor the smoothed CCI line for identifying overbought and oversold conditions.
Stochastics: Utilize the scaled Stochastics oscillator to confirm momentum and potential reversal points.
Tips:
Adjust Display Limit Carefully: Increasing the display limit may impact performance. Find a balance that suits your needs without overloading the system.
Combine with Other Indicators: Use this indicator in conjunction with price action and other technical indicators for more robust analysis.
Cautions and Disclaimer:
Indicator Limitations:
Performance Trade-Off: While the indicator optimizes performance through display limitations, extremely high settings may still cause slowdowns or errors.
Data Accuracy: Ensure that your data source is reliable to maintain the accuracy of the indicator.
Trading Responsibility:
Self-Responsibility: This indicator is a tool to assist in trading decisions. The final investment decision should be made at your own risk.
Risk Management: Trading involves risks, and losses may occur. Please perform appropriate risk management.
Summary:
The RCI-CCI-Stochastics Smooth indicator offers a comprehensive view of market momentum and trends by combining multiple oscillators into a single, smoothed display. Its performance optimization ensures that you can use advanced smoothing techniques and multiple lines without compromising your system's speed or encountering errors. This makes it a valuable tool for traders seeking detailed technical analysis without the usual performance drawbacks.
日本語解説
概要:
RCI-CCI-Stochastics Smoothインジケーターは、RCI（順位相関指数）、CCI（商品チャンネル指数）、ストキャスティクスという3つの人気オシレーターを一つにまとめ、スムーズかつパフォーマンス最適化されたツールとして提供します。RCIの計算は複雑で、通常はラインを増やしたりスムージングを適用すると表示が遅くなったり、エラーが発生することがあります。このインジケーターでは、表示領域を時間軸に基づいて制限することで、機能性を損なうことなくスムーズなパフォーマンスを実現しています。
主な機能:
1. RCI（順位相関指数）
・複数期間の計算とスムージング: 8、10、20、30、52、60という6つの異なる期間のRCIを計算し、短期から長期までのトレンド分析が可能です。
・ダブルスムージング: RCIラインにダブルの指数移動平均（EMA）を適用し、ノイズを減らし読みやすくしています。
・動的な表示制限: パフォーマンス問題を防ぐため、現在の時間軸に基づいて表示領域を制限し、複数のスムーズなラインでも効率的な計算を可能にします。
2. CCI（商品チャンネル指数）
・固定ソースとEMA期間: CCIの計算には固定されたソース（終値）と固定されたEMA期間（3）を使用し、一貫性のあるスムージングを実現します。
・スムーズな出力: CCIにEMAを適用し、読み取りやすい滑らかなラインを生成します。
3. ストキャスティクス・オシレーター
・カスタマイズ可能なパラメータ: %K、%D、EMAスムージング期間を設定できます。
・スケーリング表示: ストキャスティクスの値をRCIやCCIで使用される-100から100のスケールに合わせ、比較しやすくしています。
・グラデーション塗りつぶし: 買われすぎ・売られすぎのレベル間にグラデーションの塗りつぶしを提供し、視覚的な解釈を強化します。
動作の仕組み:
パフォーマンスの最適化:
・表示制限: インジケーターは現在の時間軸に基づいて動的な表示制限（adjusted_limit）を計算します。この制限により、計算を行うバーの数を減らし、パフォーマンスを大幅に向上させます。
・時間ベースの計算: 現在の時間が計算されたstart_time内にある場合にのみ値を計算し、不要な計算でリソースを無駄にしないようにします。
スムージング技術:
・ダブルEMAスムージング: RCIラインにダブルのEMAを適用し、ボラティリティを減少させ、トレンドを明確にします。
・一貫したスムージング: CCIやストキャスティクスに固定されたEMA長を使用し、オシレーター間で一貫したスムージング効果を提供します。
使い方:
セットアップ:
インジケーターの追加: チャートに「RCI-CCI-Stochastics Smooth」インジケーターを適用します。
期間の設定: ご自身のトレード戦略に合わせて、RCI、CCI、ストキャスティクスの期間を調整します。
表示制限の理解: パフォーマンスを向上させるため、インジケーターは表示領域を制限しています。必要に応じて表示制限値パラメータを調整できます。
解釈:
・RCIライン: 複数のRCIラインを使用して、さまざまな時間枠での市場トレンドを評価します。スムーズなラインにより、トレンドの変化を見つけやすくなります。
・CCIライン: スムーズなCCIラインを監視し、買われすぎや売られすぎの状態を特定します。
・ストキャスティクス: スケーリングされたストキャスティクス・オシレーターを利用して、モメンタムや潜在的な反転ポイントを確認します。
ヒント:
・表示制限は慎重に調整: 表示制限を増やすとパフォーマンスに影響を与える可能性があります。ニーズに合ったバランスを見つけ、システムに負荷をかけないようにしましょう。
・他のインジケーターと組み合わせる: このインジケーターを価格アクションや他のテクニカル指標と組み合わせて、より堅牢な分析を行います。
注意事項と免責事項:
インジケーターの制限:
・パフォーマンスのトレードオフ: インジケーターは表示制限によってパフォーマンスを最適化していますが、極端に高い設定では依然として遅延やエラーが発生する可能性があります。
・データの正確性: データソースが信頼できることを確認し、インジケーターの精度を維持してください。
トレード責任:
・自己責任: このインジケーターはトレードの補助ツールであり、最終的な投資判断はご自身の責任で行ってください。
・リスク管理: 市場にはリスクが伴い、損失が発生する可能性があります。適切なリスク管理を行ってください。
まとめ:
RCI-CCI-Stochastics Smoothインジケーターは、複数のオシレーターを一つにまとめ、滑らかな表示で市場のモメンタムやトレンドを包括的に把握できます。パフォーマンスの最適化により、高度なスムージング技術や複数のラインを使用しても、システムの速度を損なったりエラーが発生したりしません。これは、通常のパフォーマンス上の欠点なしに詳細なテクニカル分析を求めるトレーダーにとって、貴重なツールとなります。
E9 MACD
The E9 MACD (Moving Average Convergence Divergence) indicator is a powerful tool used in technical analysis to help traders identify potential buy and sell signals based on price action. It is designed to provide clear visual cues and alerts for trading decisions. Here’s how it applies to price action and its key functionalities:
Key Features and Functionality
MACD Line and Signal Line:
MACD Line: Represents the difference between a fast and a slow moving average of the price. It helps in identifying the momentum of the price movement.
Signal Line: A smoothed average of the MACD Line, used to generate trading signals when the MACD Line crosses above or below it.
Histogram: The histogram shows the difference between the MACD Line and the Signal Line. It visually represents the strength of the trend, with positive values indicating bullish momentum and negative values indicating bearish momentum.
Trend Coloring:
Uptrend: When the MACD Line is above the Signal Line, the bars can be colored green to indicate a potential buying opportunity.
Downtrend: When the MACD Line is below the Signal Line, the bars can be colored red to signal a potential selling opportunity.
Timeframe Flexibility:
The E9 MACD can be adjusted to different timeframes, allowing traders to analyze short-term or long-term trends based on their trading strategy. This flexibility helps in tailoring the indicator’s analysis to different market conditions.
Visual Alerts and Highlights:
The indicator includes options to highlight price bars and background colors when significant crossovers occur, making it easier to spot key trading signals.
Circles can be plotted on the MACD Line to indicate cross events, enhancing visual clarity.
Customizable Appearance:
Traders can customize the appearance of the MACD Line, Signal Line, and Histogram, including color and line width, to suit their personal preferences and improve readability.
Alerts for Trading Signals:
The E9 MACD can generate alerts for crossovers of the MACD Line and Signal Line, helping traders stay informed of potential trading opportunities even when they are not actively monitoring the charts.
Application in Trading
The E9 MACD is particularly useful for:
Identifying potential entry and exit points based on the crossing of the MACD Line and Signal Line.
Gauging the strength of the current trend through the histogram.
Adjusting to different timeframes to align the indicator with various trading strategies, from day trading to long-term investing.
By providing clear visual indicators and alerts, the E9 MACD helps traders make more informed decisions and better understand the momentum and direction of price movements.
RSI Multi-Timeframe PINESCRIPTLABS📈 Use the Relative Strength Index (RSI) calculated across multiple time frames to generate signals
🔹 Intraday: Displays a table with real-time RSI values for the time frames of 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, and 1 day.
🔹 Standard: Displays a table with real-time RSI values for the time frames of 30 minutes, 1 hour, 4 hours, 1 day, 1 week, and 1 month.
The indicator allows you to customize overbought and oversold thresholds, as well as choose between viewing RSI values for intraday or standard time frames, tailoring the analysis to your specific needs. 🔧📊
🔔 Signals are generated when in 4 of the 6 time frames we define below:
Overbought Signal (When RSI indicates overbought conditions):
• Intraday: Activated when the RSI in the time frames of 5 minutes, 15 minutes, 30 minutes, and 1 hour is above the 70 threshold. 📈
• Standard: Activated when the RSI in the time frames of 30 minutes, 1 hour, 4 hours, and 1 day is above the 70 threshold. 📈
Oversold Signal (When RSI indicates oversold conditions):
• Intraday: Activated when the RSI in the time frames of 5 minutes, 15 minutes, 30 minutes, and 1 hour is below the 30 threshold. 📉
• Standard: Activated when the RSI in the time frames of 30 minutes, 1 hour, 4 hours, and 1 day is below the 30 threshold. 📉
Español:
📈 Utiliza el Índice de Fuerza Relativa (RSI) calculado en varios marcos de tiempo para generar señales
🔹 Intraday: Muestra una tabla con los valores del RSI en tiempo real para los marcos de tiempo de 5 minutos, 15 minutos, 30 minutos, 1 hora, 4 horas y 1 día.
🔹 Standard: Muestra una tabla con los valores del RSI en tiempo real para los marcos de tiempo de 30 minutos, 1 hora, 4 horas, 1 día, 1 semana y 1 mes.
El indicador te permite personalizar los umbrales de sobrecompra y sobreventa, así como elegir entre ver los valores RSI para marcos de tiempo intradía o estándar, adaptando el análisis a tus necesidades específicas. 🔧📊
🔔 Las señales se generan cuando en 4 de los 6 marcos de tiempo que definimos a continuación:
Señal de Sobrecompra (Cuando el RSI indica sobrecompra):
• Intraday: Se activa cuando el RSI en los marcos de tiempo de 5 minutos, 15 minutos, 30 minutos y 1 hora está por encima del umbral de 70. 📈
• Standard: Se activa cuando el RSI en los marcos de tiempo de 30 minutos, 1 hora, 4 horas y 1 día están por encima del umbral de 70. 📈
Señal de Sobreventa (Cuando el RSI indica sobreventa):
• Intraday: Se activa cuando el RSI en los marcos de tiempo de 5 minutos, 15 minutos, 30 minutos y 1 hora está por debajo del umbral de 30. 📉
• Standard: Se activa cuando el RSI en los marcos de tiempo de 30 minutos, 1 hora, 4 horas y 1 día están por debajo del umbral de 30. 📉
Universal Trend Following Valuation | viResearch Universal Trend Following Valuation | viResearch
Conceptual Foundation and Innovation
The "Universal Trend Following Valuation" script represents a comprehensive approach to trend-following systems. It combines multiple technical indicators and methods to assess market trends, integrating Sharpe, Sortino, and Omega ratios with various moving averages and Z-score calculations. By utilizing advanced statistical tools, the script provides traders with a well-rounded evaluation of trend strength, direction, and potential reversals. The inclusion of Z-scores and custom ratios allows for a more in-depth and accurate market analysis, making it a valuable tool for trend valuation.
Technical Composition and Calculation
This script is built on various performance metrics and trend-following methods. It features ratio calculations, such as Sharpe, Sortino, and Omega, which provide insight into the risk-adjusted performance of assets, helping traders gauge the strength of market trends. Weekly RSI values are smoothed using dema, ema, and median methods to offer a clearer view of trend momentum. Additionally, Z-scores are applied to these ratios and the weekly RSI, offering a standardized assessment of trend deviations from historical performance. A custom scoring system is used to generate a cumulative trend score, highlighting potential market reversals or confirmations.
Key Indicators and Features
The script uses weekly RSI and EMA/Dema smoothing to reduce market noise and produce clearer trend signals. The Sharpe, Sortino, and Omega ratio calculations help assess market performance and volatility, with Z-scores adding another analytical layer. Different moving averages (HMA, DEMA, SMMA) are incorporated to evaluate both short-term and long-term trends, making the script adaptable to various market conditions. Furthermore, the script provides trend confirmation through multiple layers by using indicators like the Supertrend and the Average True Range (ATR) factor to cross-check trends for increased reliability.
Practical Applications
This script is ideal for traders looking to systematically evaluate market trends and effectively position themselves. The combination of advanced statistical tools and customizable moving averages and ratios ensures that the script remains both flexible and powerful. It is particularly useful for confirming trends and highlighting potential reversals, giving traders a reliable signal for either trend continuation or reversals. The inclusion of Sharpe and Sortino ratios allows traders to focus on trends that offer a favorable risk-reward profile.
Advantages and Strategic Value
The "Universal Trend Following Valuation" script offers a detailed, multifaceted approach to trend analysis. Its use of advanced statistical tools provides a more precise evaluation of market trends, making it valuable for both novice and experienced traders. The script reduces noise while ensuring that the core trend signals remain accurate, helping traders make more informed decisions in volatile market conditions.
Summary and Usage Tips
Incorporating the "Universal Trend Following Valuation" into your trading system can significantly enhance your ability to follow and confirm trends. With its customizable parameters and alerts, this script offers a powerful and reliable tool for navigating market volatility and optimizing trade entries and exits. By combining trend-following signals with performance metrics, traders can refine their strategies with increased confidence.
Disclaimer: Backtests are based on past results and are not indicative of future performance.
Relative Vigor Index [MTF] with MACD, Divergence and AlertsThis advanced indicator integrates the Normalized Relative Vigor Index (RVGI) with Multi-Timeframe (MTF) analysis, MACD, divergence detection, and customizable alert features. It provides a comprehensive toolkit for traders to analyze market momentum, identify trend changes, and react to significant technical signals.
Key Features:
Normalized Relative Vigor Index (RVGI):
Calculation: Computes the RVGI and its signal line using various smoothing methods (SWMA, EMA, SMA). The RVGI measures the strength of price movement relative to its historical volatility, providing insights into market momentum.
Plotting: Visualizes the RVGI and signal line on the chart. Users can customize the colors and transparency of the plots and the ribbon that fills the area between them.
Overbought/Oversold Levels: Displays horizontal lines to mark overbought and oversold zones, helping to identify potential reversal points.
Multi-Timeframe (MTF) Analysis:
Timeframe Selection: Allows users to select different timeframes for RVGI analysis, providing a broader perspective on market trends and signals.
Integration: Combines MTF data with the main indicator calculations to offer a more comprehensive view of market conditions.
MACD Integration:
Calculation: Computes MACD, MACD signal line, and MACD histogram with options for different moving average types (SMA, EMA) and a customizable scaling factor.
Plotting: Plots the MACD histogram, zero line, and signal line, with color and transparency settings to distinguish between positive and negative values.
Divergence Detection:
Bullish Divergence: Identifies and plots bullish divergence when the price makes a lower low while the RVGI makes a higher low, suggesting potential upward reversals.
Bearish Divergence: Identifies and plots bearish divergence when the price makes a higher high while the RVGI makes a lower high, indicating potential downward reversals.
Alerts:
Divergence Alerts: Configurable alerts for bullish and bearish divergences, notifying traders of significant potential reversals.
RVGI Alerts: Alerts for RVGI crossovers, overbought/oversold conditions, and trend changes based on RVGI and signal line crossovers.
MACD Alerts: Alerts for MACD line crossovers, histogram crossovers, and MACD zero line crossovers, helping traders stay informed of key MACD signals.
Customization Options:
Ribbon Colors and Transparency: Users can adjust the colors and transparency of the RVGI ribbon, enhancing visual clarity.
MACD Histogram Colors and Transparency: Customizable colors and transparency settings for the MACD histogram improve visibility and differentiation of positive and negative values.
Smoothing Methods: Choose between different smoothing methods for RVGI, tailoring the indicator to specific trading strategies.
Use Cases:
Trend Analysis: Utilize RVGI and MACD signals to analyze market trends, identify potential trend reversals, and assess momentum.
Divergence Identification: Detect and act on divergences between price and RVGI to spot potential trading opportunities.
Alert Management: Customize and receive alerts based on various conditions, ensuring timely responses to market signals.
Conclusion:
This indicator is designed for traders who seek a comprehensive tool combining momentum analysis, divergence detection, and signal alerts. By integrating RVGI, MACD, and MTF analysis, it provides a powerful suite of features to enhance market analysis and trading decisions
HFT V.2 EnhancedTitle: HFT V.2 Enhanced - ATR Dynamic Stop-Loss & Take-Profit
Description:
The HFT V.2 Enhanced strategy is designed for high-frequency trading with dynamic trade management and robust entry/exit logic. This strategy uses simple moving averages (SMA) for trend identification and the relative strength index (RSI) for momentum confirmation. In this enhanced version, the strategy also incorporates dynamic stop-loss and take-profit levels based on the Average True Range (ATR), offering better adaptability to market volatility.
Features:
Moving Average Crossover: Uses a fast and slow SMA to capture trend reversals and generate trade entries.
RSI Confirmation: Ensures momentum is in the direction of the trade by incorporating the RSI threshold for both long and short entries.
Dynamic Stop-Loss and Take-Profit: Stop-loss and take-profit levels are calculated based on the ATR, allowing the strategy to adjust its exit points according to market volatility. This helps manage risk more effectively and capture larger trends.
Auto-Close Opposing Positions: Automatically closes any open long positions when a short entry is triggered, and vice versa.
Once-Per-Bar Execution: Ensures that a position is entered only once per bar, avoiding multiple trades within the same bar.
Parameters:
Fast MA Length: Defines the length of the fast-moving average.
Slow MA Length: Defines the length of the slow-moving average.
RSI Length: Sets the period for the RSI indicator.
RSI Threshold: Controls the RSI level for confirming momentum (50 by default).
ATR Length: Determines the period for the ATR calculation.
ATR Multiplier for Stop-Loss/Take-Profit: Adjusts the sensitivity of the stop-loss and take-profit levels based on ATR.
How it Works:
Long Entry: The strategy opens a long trade when the fast SMA crosses above the slow SMA, and the RSI is above the user-defined threshold. A dynamic stop-loss is placed below the entry price, and a take-profit target is set based on ATR.
Short Entry: The strategy opens a short trade when the fast SMA crosses below the slow SMA, and the RSI is below the inverse threshold. A stop-loss is placed above the entry price, and a take-profit target is set using ATR.
Risk Management: The strategy adapts to changing market conditions by dynamically adjusting its stop-loss and take-profit levels, ensuring it remains responsive to market volatility.
This script is ideal for traders looking for a high-frequency strategy with advanced trade management, including dynamic exits and volatility-based risk management.
Disclaimer: Always backtest and optimize the parameters to fit your trading style and risk tolerance before using the strategy in live trading.
TASC 2024.10 Adaptive Oscillator Threshold█ OVERVIEW
This script introduces a more dynamic approach to generating trading signals using the RSI indicator and a threshold that adapts to price trends and dispersion. This methodology comes from Francesco Bufi's article "Overbought/Oversold Oscillators: Useless Or Just Misused" from the October 2024 edition of TASC's Traders' Tips .
█ CONCEPTS
According to Francesco Bufi's observations, an oscillator-based buy signal should have a threshold that varies with the trend direction: higher during uptrends and lower during downtrends. Additionally, the level should decrease as the distance from the price to its mean increases to reduce signals in volatile conditions. Accordingly, Bufi proposes a formula for an adaptive buy level whose value is proportional to the trend (linear regression slope) and inversely proportional to the typical distance between price and its mean (standard deviation). Traders can apply this method to any oscillator to add adaptivity without modifying the oscillator's calculations, as it's simply an adaptive technique for interpreting the calculated values.
This script demonstrates the application of Bufi's Adaptive Threshold (BAT) in a simple RSI-based strategy and allows users to compare its performance to the traditional fixed-threshold approach. Bufi's observations suggest that using the BAT instead of a static threshold can help improve the backtest performance of oscillator-based systems.
█ DISCLAIMER
This strategy script educates users on the trading systems outlined by the TASC article. By default, it uses 10% of equity as the order size and a slippage amount of 5 ticks. Traders should adjust these settings and the commission amount when using this script.
Power MarketPower Market Indicator
Description: The Power Market Indicator is designed to help traders assess market strength and make informed decisions for entering and exiting positions. This innovative indicator provides a comprehensive view of the evolution of Simple Moving Averages (SMA) over different periods and offers a clear measure of market strength through a total score.
Key Features:
Multi-Period SMA Analysis:
Calculates Simple Moving Averages (SMA) for 10 different periods ranging from 10 to 100.
Provides detailed analysis by comparing the current closing price with these SMAs.
Market Strength Measurement:
Assesses market strength by calculating a total score based on the relationship between the closing price and the SMAs.
The total score is displayed as a histogram with distinct colors for positive and negative values.
Smoothed Curve for Better View:
A smoothing of the total score is applied using a 5-period Simple Moving Average to represent the overall trend more smoothly.
Dynamic Information Table:
Real-time display of the maximum and minimum values among the SMAs, as well as the difference between these values, providing valuable insights into the variability of moving averages.
Visual Reference Lines:
Horizontal lines at zero, +50, and -50 for easy evaluation of key score levels.
How to Use the Indicator:
Position Entries: Use high positive scores to identify buying opportunities when market strength is strong.
Position Exits: Negative scores may signal market weakness, allowing you to exit positions or wait for a better opportunity.
Data Analysis: The table helps you understand the variability of SMAs, offering additional context for your trading decisions.
This powerful tool provides an in-depth view of market dynamics and helps you navigate your trading strategies with greater confidence. Embrace the Power Market Indicator and optimize your trading decisions today!
Connors RSI with Down GapThe Connors RSI with Down Gap indicator is a technical tool designed to support Larry Connors' Terror Gap Strategy, which is part of his broader framework outlined in the book "Buy the Fear, Sell the Greed: 7 Behavioral Quant Strategies for Traders." This specific indicator integrates the ConnorsRSI calculation with a focus on detecting down gaps in price, providing insights into moments when panic selling may occur.
The ConnorsRSI
ConnorsRSI is a composite indicator developed by Larry Connors that combines three core components:
RSI: A short-term relative strength index measuring the speed and magnitude of price changes.
Streak RSI: Tracks consecutive up or down closes to assess momentum.
Percent Rank: Evaluates how the current close ranks in relation to past prices.
When combined, these three elements provide a nuanced view of short-term overbought or oversold conditions. ConnorsRSI readings below a certain threshold (commonly 30 or lower) suggest that the asset has been heavily sold, indicating potential exhaustion of selling pressure.
Behavioral Finance Insights
The Terror Gap Strategy is grounded in principles from behavioral finance, which studies how psychological factors affect market participants' decision-making. Specifically, the indicator exploits the fear and irrational behavior that often arise when traders face persistent losses, especially after a down gap. According to behavioral finance theories like prospect theory (Kahneman & Tversky, 1979), people tend to overreact to losses, leading to panic selling. This creates opportunities for contrarian traders who understand the psychology behind these market movements.
The ConnorsRSI with Down Gap indicator works because it identifies:
Overextended selling through the ConnorsRSI, where persistent price declines result in low RSI values (indicating panic).
Gap down days, where the opening price is below the previous day’s close, typically amplifying the sense of loss and fear for traders already in losing positions.
Why This Indicator Works
The psychology of losses makes traders more prone to selling during periods of fear, especially when confronted with a gap down after sustained price declines. This indicator, by combining ConnorsRSI with down gaps, offers a quantitative way to spot these moments of panic. Traders can take advantage of these signals to enter positions when the market is in a state of fear, often when there is potential for a reversion to the mean.
Indicator Mechanics
In the current implementation:
The ConnorsRSI is calculated using three components: a short-term RSI, streak RSI, and percent rank.
When the ConnorsRSI drops below a user-defined lower threshold, the indicator highlights oversold conditions.
If there is a down gap (open price lower than the previous close) and the ConnorsRSI is below the threshold, a label is displayed, signaling a potential opportunity to buy.
Practical Use and Application
For traders looking to implement the Terror Gap Strategy, this indicator provides a clear visual cue (via background coloring and labels) when conditions are ripe for a contrarian trade. It can be particularly useful for traders who thrive on taking advantage of fear-driven sell-offs.
However, to fully understand and apply this strategy effectively, it is recommended to purchase Larry Connors' book "Buy the Fear, Sell the Greed." The book provides detailed explanations of how to execute the strategy with precision, including insights into exit conditions, scaling into positions, and managing risk.
Conclusion
The ConnorsRSI with Down Gap indicator combines quantitative analysis with behavioral finance principles to exploit fear-driven market behavior. By utilizing this tool within a disciplined trading strategy, traders can potentially profit from temporary market inefficiencies caused by panic selling.
References
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263-291.
Connors, L. (2013). Buy the Fear, Sell the Greed: 7 Behavioral Quant Strategies for Traders.
This indicator can be a valuable asset, but understanding its proper use within a broader strategy framework is essential. Purchasing Connors' book is a recommended step toward mastering the approach.
Median Kijun-Sen [InvestorUnknown]The Median Kijun-Sen is a versatile technical indicator designed for both trend-following strategies and long-term market valuation. It incorporates various display modes and includes a backtest mode to simulate its performance on historical price action.
Key Features:
1. Trend-Following and Long-Term Valuation:
The indicator is ideal for trend-following strategies, helping traders identify entry and exit points based on the relationship between price and the Kijun-Sen calculated from median price (customizable price source).
With longer-term settings, it can also serve as a valuation tool (in oscillator display mode), assisting in identifying potential overbought or oversold conditions over extended timeframes.
2. Display Modes:
The indicator can be displayed in three main modes, each serving a different purpose:
Overlay Mode : Plots the Median Kijun-Sen directly over the price chart, useful for visualizing trends relative to price action.
Oscillator Mode : Displays the oscillator that compares the current price to the Median Kijun-Sen, providing a clearer signal of trend strength and direction
Backtest Mode : Simulates the performance of the indicator with different settings on historical data, offering traders a way to evaluate its reliability and effectiveness without needing TradingView's built-in strategy tool
3. Backtest Functionality:
The inbuilt backtest mode enables users to evaluate the indicator's performance across historical data by simulating long and short trades. Users can customize the start and end dates for the backtest, as well as specify whether to allow long & short, long only, or short only signals.
This backtest functionality mimics TradingView's strategy feature, allowing users to test the effectiveness of their chosen settings before applying them to live markets.
equity(series int sig, series float r, startDate, string signals, bool endDate_bool) =>
if time >= startDate and endDate_bool
float a = 0
if signals == "Long & Short"
if sig > 0
a := r
else
a := -r
else if signals == "Long Only"
if sig > 0
a := r
else if signals == "Short Only"
if sig < 0
a := -r
else
runtime.error("No Signal Type found")
var float e = na
if na(e )
e := 1
else
e := e * (1 + a)
float r = 0.0
bool endDate_bool = use_endDate ? (time <= endDate ? true : false) : true
float eq = 1.0
if disp_mode == "Backtest Mode"
r := (close - close ) / close
eq := equity(sig, r, startDate, signals, endDate_bool)
4. Hint Table for Pane Suggestions:
An inbuilt hint table guides users on how to best visualize the indicator in different display modes:
For Overlay Mode, it is recommended to use the same pane as the price action.
For Oscillator and Backtest Modes, it is advised to plot them in a separate pane for better clarity.
This table also provides step-by-step instructions on how to move the indicator to a different pane and adjust scaling, making it user-friendly.
Potential Weakness
One of the key drawbacks is the indicator’s tendency to produce false signals during price consolidations, where price action lacks clear direction and may trigger unnecessary trades. This is particularly noticeable in markets with low volatility.
Alerts
The indicator includes alert conditions for when it crosses above or below key levels, enabling traders to receive notifications of LONG or SHORT signals.
Summary
The Median Kijun-Sen is a highly adaptable tool that serves multiple purposes, from trend-following to long-term valuation. With its customizable settings, backtest functionality, and built-in hints, it provides traders with valuable insights into market trends while allowing them to optimize the indicator to their specific strategy.
This versatility, however, comes with the potential weakness of false signals during consolidation phases, so it's most effective in trending markets.
