Hourly Opening PriceThe Inner Circle Trader has noted that the Opening Price of every Hourly candle can be used in a Power Of 3 (PO3) context.
If Bullish, buy BELOW the hourly open.
If Bearish, sell ABOVE the hourly open.
The Power of 3 ICT model also know as "AMD" is a transformative trading strategy, ingeniously designed to streamline your time analyzing charts by focusing on three pivotal phases in market behavior: accumulation, manipulation, and distribution.
The ICT Power of Three Model dissects the market maker’s algorithm for price delivery into three pivotal actions: Accumulation, Manipulation, and Distribution. Accumulation involves smart money gathering positions before a price surge, while manipulation sees the market creating deceptive movements to trigger stops. Finally, distribution occurs as smart money offloads positions, often catching less informed traders off-guard. This strategy is a critical tool for traders to understand market makers’ maneuvers and to strategically position themselves in the market.
This indicator plots a line at the opening price of each hour and extends it on the chart for the duration of the hour. Each hour starts a new line.
You also have the option of extending the midnight opening price line across the entire trading day.
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MA MACD BB BackTesterOverview:
This Pine Script™ code provides a comprehensive backtesting tool that combines Moving Average (MA), Moving Average Convergence Divergence (MACD), and Bollinger Bands (BB). It is designed to help traders analyze market trends and make informed trading decisions by testing various strategies over historical data.
Key Features:
1. Customizable Indicators:
Moving Average (MA): Smooths out price data for clearer trend direction.
MACD: Measures trend momentum through MACD Line, Signal Line, and Histogram.
Bollinger Bands (BB): Identifies overbought or oversold conditions with upper and lower bands.
2. Flexible Trading Direction: Choose between long or short positions to adapt to different market conditions.
3. Risk Management: Efficiently allocate your capital with customizable position sizes.
4. Signal Generation:
Buy Signals: Triggered by crossovers for MACD, MA, and BB.
Sell Signals: Triggered by crossunders for MACD, MA, and BB.
5. Automated Trading: Automatically enter and exit trades based on signal conditions and strategy parameters.
How It Works:
1. Indicator Selection: Select your preferred indicator (MA, MACD, BB) and trading direction (Long/Short).
2. Risk Management Configuration: Set the percentage of capital to allocate per position to manage risk effectively.
3.Signal Detection: The algorithm identifies and plots buy/sell signals directly on the chart based on the chosen indicator.
4. Trade Execution: The strategy automatically enters and exits trades based on signal conditions and configured strategy parameters.
Use Cases:
- Backtesting: Evaluate the effectiveness of trading strategies using historical data to understand potential performance.
- Strategy Development: Customize and expand the strategy to incorporate additional indicators or conditions to fit specific trading styles.
ADDONS That Affect Strategy:
1. Indicator Parameters:
Adjustments to the settings of MACD (e.g., fast length, slow length), MA (e.g., length), and BB (e.g., length, multiplier) will directly impact the detection of signals and the strategy's performance.
2. Trading Direction:
Changing the trading direction (Long/Short) will alter the entry and exit conditions based on the detected signals.
3. Risk Management Settings:
Modifying the position size percentage affects capital allocation and overall risk exposure per trade.
ADDONS That Do Not Affect Strategy:
1. Visual Customizations:
Changes to the color, shape, and style of the plotted lines and signals do not impact the core functionality of the strategy but enhance visual clarity.
2. Text and Labels:
Modifying text labels for the signals (such as renaming "Buy MACD" to "MACD Buy Signal") is purely cosmetic and does not influence the strategy’s logic or outcomes.
Notes:
- Customization: The indicator is highly customizable to fit various trading styles and market conditions.
- Risk Management: Adjust position sizes and risk parameters according to your risk tolerance and account size.
- Optimization: Regularly backtest and optimize parameters to adapt to changing market dynamics for better performance.
Getting Started:
-Add the script to your chart.
-Adjust the input parameters to suit your analysis preferences.
-Observe the marked buy and sell signals on your chart to make informed trading decisions.
ICT Turtle Soup | Flux Charts💎 GENERAL OVERVIEW
Introducing our new ICT Turtle Soup Indicator! This indicator is built around the ICT "Turtle Soup" model. The strategy has 5 steps for execution which are described in this write-up. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new ICT Turtle Soup Indicator :
Implementation of ICT's Turtle Soup Strategy
Adaptive Entry Method
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The ICT Turtle Soup strategy may have different implementations depending on the selected method of the trader. This indicator's implementation is described as :
1. Mark higher timerame liquidity zones.
Liquidity zones are where a lot of market orders sit in the chart. They are usually formed from the long / short position holders' "liquidity" levels. There are various ways to find them, most common one being drawing them on the latest high & low pivot points in the chart, which this indicator does.
2. Mark current timeframe market structure.
The market structure is the current flow of the market. It tells you if the market is trending right now, and the way it's trending towards. It's formed from swing higs, swing lows and support / resistance levels.
3. Wait for market to make a liquidity grab on the higher timeframe liquidity zone.
A liquidity grab is when the marked liquidity zones have a false breakout, which means that it gets broken for a brief amount of time, but then price falls back to it's previous position.
4. Buyside liquidity grabs are "Short" entries and Sellside liquidity grabs are "Long" entries by default.
5. Wait for the market-structure shift in the current timeframe for entry confirmation.
A market-structure shift happens when the current market structure changes, usually when a new swing high / swing low is formed. This indicator uses it as a confirmation for position entry as it gives an insight of the new trend of the market.
6. Place Take-Profit and Stop-Loss levels according to the risk ratio.
This indicator uses "Average True Range" when placing the stop-loss & take-profit levels. Average True Range calculates the average size of a candle and the indicator places the stop-loss level using ATR times the risk setting determined by the user, then places the take-profit level trying to keep a minimum of 1:1 risk-reward ratio.
This indicator follows these steps and inform you step by step by plotting them in your chart.
🚩UNIQUENESS
This indicator is an all-in-one suit for the ICT's Turtle Soup concept. It's capable of plotting the strategy, giving signals, a backtesting dashboard and alerts feature. It's designed for simplyfing a rather complex strategy, helping you to execute it with clean signals. The backtesting dashboard allows you to see how your settings perform in the current ticker. You can also set up alerts to get informed when the strategy is executable for different tickers.
⚙️SETTINGS
1. General Configuration
MSS Swing Length -> The swing length when finding liquidity zones for market structure-shift detection.
Higher Timeframe -> The higher timeframe to look for liquidity grabs. This timeframe setting must be higher than the current chart's timeframe for the indicator to work.
Breakout Method -> If "Wick" is selected, a bar wick will be enough to confirm a market structure-shift. If "Close" is selected, the bar must close above / below the liquidity zone to confirm a market structure-shift.
Entry Method ->
"Classic" : Works as described on the "HOW DOES IT WORK" section.
"Adaptive" : When "Adaptive" is selected, the entry conditions may chance depending on the current performance of the indicator. It saves the entry conditions and the performance of the past entries, then for the new entries it checks if it predicted the liquidity grabs correctly with the current setup, if so, continues with the same logic. If not, it changes behaviour to reverse the entries from long / short to short / long.
2. TP / SL
TP / SL Method -> If "Fixed" is selected, you can adjust the TP / SL ratios from the settings below. If "Dynamic" is selected, the TP / SL zones will be auto-determined by the algorithm.
Risk -> The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
Asian Range IndicatorIndicator Name:
Asian Range Indicator
Description:
This TradingView indicator is designed to accurately detect the price range during the Asian session, based on our trading strategy. This range is crucial for planning trades in the European and American sessions. Using advanced algorithms, the indicator automatically identifies and plots the highs and lows within the Asian session period, highlighting them on the chart with shaded areas for clear visualization. This helps traders anticipate breakouts and set more precise entry and exit levels.
How to Use the Indicator:
Add the indicator to your TradingView chart.
Observe the shaded areas representing the Asian range.
Use these levels to plan your trades during the European and American sessions.
Combine with other technical indicators to confirm your trading decisions.
Chart:
The chart published with this script is clean and easy to understand, clearly showing the Asian range highlighted with shaded areas. No other scripts are included, ensuring the indicator's output is easily identifiable. The shaded areas contribute to the visual understanding of the Asian range, helping traders effectively use the script.
Market Structure Targets Model [LuxAlgo]The Market Structure Targets Model indicator provides an algorithmic approach to setting targets from market structure shifts (MSS) and market structure breaks (MSB), two popular Smart Money Concept (SMC) concepts. Depending on the target % settings, they can be used as take profit, confirmation levels, or potential reversal points.
🔶 USAGE
Our Market Structure Targets Model scripts provide automated and customizable targets from MSS and MSB. Each displayed target can be used in several ways described in the sub-sections below:
🔹 Take Profit
The targets can be used as take profit levels, where the target distance can be set separately for bullish/bearish MSS/MSB respectively.
🔹 Confirmation Levels
Alternatively, targets can be used as an additional confirmation level of a trend reversal when set at a lower percentage, filtering out fake signals that might be given from market structures. In this way, targets can be used as potential entry levels.
🔹 Potential Reversal Points
In some circumstances, targets being reached can be indicative of trend reversals. The percentage of the targets would be typically set higher to allow for trend exhaustion.
The above examples highlight this usage for bearish reversal scenarios, while the image below highlights it for bullish reversal scenarios.
🔹 Support/Resistance Levels
The targets, being horizontal levels, can also serve as potential support/resistances, with breakouts potentially confirming new trends. It is important to remain observant of the market structure. An MSS or MSB in the opposite direction provides essential information to be included in future decisions.
Using multiple timeframes can help detect longer-term trends. Depending on the user's preference, they can choose the appropriate timeframe for their needs.
Note that Target lines will only be drawn when the Target Level exceeds the close value when it is drawn.
🔹 Maximum Target Duration
The Maximum Target Duration setting removes unreached target levels when the amount of bars since the associated market structure of that target exceeds the user set limit. This effectively allows the removal of any target that might no longer be relevant to newer trends.
🔹 Type: Switch/Hold
This setting is another way to control unreached target levels.
Switch: When a new MSS/MSB is found, the previous target level associated with a market structure with the same direction (bullish/bearish) is deleted if it hasn't been reached.
Hold: Target levels are retained and continuously evaluated when a new MSS/MSB is formed.
The target level will be removed in both cases when the Maximum Target Duration condition is applied.
The above example shows the case when the Type setting is set to Switch , while in the example below, it is set to Hold .
🔶 DETAILS
🔹 Market Structure
Market structures are commonly classified as follows:
Market Structure Shift (MSS), also referred to as Change of Character (CHoCH)
Market Structure Break (MSB), also referred to as Break of Structure (BOS)
MSS indicates a shift in the market trend, confirming trend reversals. Conversely, MSB occurs once a trend is already determined, confirming new higher highs/lower lows.
🔹 Targets
A: Highest/lowest between the extremities of the MSS/MSB line
B: Price value of the MSS/MSB line
The distance between A and B is projected on the opposite side of the MSS/MSB line, adjusted with a percentage that can be set by the user. The above example used 100% of the distance between A and B.
The Target Percentage of MSS and MSB can be set separately for bullish or bearish market structures.
🔶 SETTINGS
Swings: Period used for the swing detection, with higher values returning longer-term Swing Levels.
Type: the Switch/Hold setting controls unattained target levels
Maximum Target Duration: removes the target lines when the amount of bars since the drawing of the target exceeds the limit and the target has not been reached
🔹 Market Structure Shift (MSS)
Bullish: Toggle, color setting, % Target
Bearish: Toggle, color setting, % Target
🔹 Market Structure Break (MSB)
Bullish: Toggle, color setting, % Target
Bearish: Toggle, color setting, % Target
Advanced Awesome Oscillator [CryptoSea]Advanced AO Analysis Indicator
The Advanced AO Analysis indicator is a sophisticated tool designed to evaluate the Awesome Oscillator (AO) in search of regular and hidden divergences that signal potential price reversals. By tracking the intensity and duration of the AO's movements, this indicator aids traders in pinpointing critical points in price action.
Key Features
Divergence Detection: Identifies both regular and hidden bullish and bearish divergences, providing early signs of potential market reversals.
Customizable Lookback Periods: Allows users to set specific lookback windows to define the strength and relevance of detected divergences.
Adaptive Oscillator Display: Features customizable display options for the AO, enabling users to view data in different modes suited to their analysis needs.
Alert System: Includes configurable alerts to notify users of potential divergence formations, helping traders respond promptly.
How it Works
AO Calculation: Computes the AO as the difference between short-term and long-term moving averages of the midpoints of bars, highlighting momentum shifts.
Pivot Point Analysis: Utilizes advanced algorithms to find low and high pivot points based on the oscillator values, crucial for spotting trend reversals.
Range Validation: Verifies that divergences occur within a predefined range from pivot points, ensuring their validity and strength.
Visualisation: Plots AO values and potential divergences directly on the chart, aiding in quick visual analysis.
Application
Strategic Decision-Making: Assists traders in making informed decisions by providing detailed analysis of AO movements and divergence.
Trend Confirmation: Reinforces trading strategies by confirming potential reversals with pivot point detection and divergence analysis.
Behavioural Insight: Offers insights into market dynamics and sentiment by analyzing the depth and duration of AO cycles above and below zero.
The Advanced AO Analysis indicator equips traders with a powerful analytical tool for studying the Awesome Oscillator in-depth, enhancing their ability to spot and act on divergence-based trading opportunities in the cryptocurrency markets.
Enhanced Reversal DetectionScript Description:
The "Enhanced Reversal Detection" indicator is a powerful tool designed to identify potential market reversals across various financial instruments. It incorporates a sophisticated algorithm that analyzes price action along with key technical indicators such as the Relative Strength Index (RSI), Bollinger Bands, and Moving Average (MA).
How to Use:
Adjustable Parameters: The indicator offers a range of adjustable parameters to cater to different trading preferences and market conditions.
RSI Length: Adjusts the length of the RSI calculation to fine-tune sensitivity.
Overbought Level: Sets the threshold for identifying overbought conditions on the RSI scale.
Oversold Level: Sets the threshold for identifying oversold conditions on the RSI scale.
Bollinger Bands Length: Determines the length of the Bollinger Bands calculation.
Bollinger Bands Multiplier: Adjusts the standard deviation multiplier for the Bollinger Bands, influencing band width.
Moving Average Length: Defines the length of the Moving Average calculation to capture trend direction.
Min Bars Between Signals: Sets the minimum number of bars required between consecutive reversal signals.
ADX Length: Adjusts the length of the Average Directional Index (ADX) calculation.
ADX Threshold: Defines the threshold value for ADX, serving as a filter for reversal signals.
Signal Generation: The indicator generates signals for both bullish and bearish reversals based on predefined criteria. A bullish reversal signal is triggered when the closing price exceeds the lower Bollinger Band and RSI falls below the oversold threshold. Conversely, a bearish reversal signal occurs when the closing price falls below the upper Bollinger Band and RSI surpasses the overbought threshold.
Alerts: Traders can opt to receive alerts for bullish and bearish reversal signals, enabling them to stay informed of potential trading opportunities even when away from the platform.
Publication Readiness:
To ensure readiness for publication in the TradingView public library, the script has been meticulously crafted and documented:
The code is extensively commented to provide clear explanations of parameters, calculations, and signal generation logic.
Best coding practices have been followed to enhance readability and maintainability.
Rigorous testing has been conducted to validate the accuracy and reliability of signal generation across various market conditions.
The script adheres to TradingView's guidelines and policies for script publication, ensuring compliance with platform standards and user expectations.
With its comprehensive features and user-friendly design, the "Enhanced Reversal Detection" indicator is poised to become a valuable asset for traders seeking to identify high-probability reversal opportunities in the financial markets.
Market Slayer (i)Market Slayer (i)
This script is designed to provide insights into market trends and generate trading signals based on a combination of moving average crossovers and trend confirmation. It aims to assist traders in identifying potential entry and exit points in the market.
Input Parameters:
Trend Timeframe: Allows the user to specify the timeframe for trend analysis. Default is set to W (weekly).
Trend Value: Defines the sensitivity of the trend detection algorithm.
Short SMA Length: Length of the short-term Simple Moving Average (SMA).
Long SMA Length: Length of the long-term Simple Moving Average (SMA).
Bullish Color: Color representation for bullish signals.
Bearish Color: Color representation for bearish signals.
Take Profit Color: Color representation for take profit events.
Simple Moving Average (SMA) Logic:
Two SMAs are calculated based on the provided lengths: one short-term and one long-term.
Short-term SMA values are plotted with a semi-transparent bearish color.
Long-term SMA values are plotted with a semi-transparent bullish color.
Trend Logic:
The script employs a modified SSL (Schaff Trend Cycle) indicator to determine the trend direction.
Trend direction is determined based on whether the closing price is above or below the SSL (Schaff Trend Cycle) indicator.
Trend changes are detected by comparing the current trend direction with the previous two trend directions.
Signal Logic:
Buy signals are generated when the short-term SMA crosses above the long-term SMA and the trend is bullish.
Sell signals are generated when the short-term SMA crosses below the long-term SMA and the trend is bearish.
Signals are confirmed only if there is no open position.
Take Profit Logic:
Take profit events are triggered when the trend changes direction after a position has been opened.
Take profit events are confirmed only if there is an open position.
Alerts:
Various alerts are included to notify traders of different events such as signal generation, take profit opportunities, and trend changes.
Usage of lookahead:
Within the script, the lookahead argument is utilized in the request.security() function to control how much historical data should be loaded for trend analysis.
Setting lookahead=barmerge.lookahead_on enables the script to consider future price movements when calculating trend conditions.
This functionality can enhance the accuracy of trend detection by incorporating future bars into the analysis.
Usage:
Traders can use this script on the TradingView platform to visualize market trends, identify potential entry and exit points, and receive timely alerts for trading opportunities.
Advanced Stochastic [CryptoSea]The Advanced Stochastic Indicator is a sophisticated tool designed to enhance market analysis through detailed stochastic calculations. This tool is built for traders who seek to identify market divergences and pivot points with higher accuracy.
Key Features
Multi-Layer Stochastic Analysis: Tracks both standard and smoothed stochastic values to provide a granular view of market momentum.
Divergence Detection: Automatically detects both regular and hidden bullish and bearish divergences, offering critical insights into potential market reversals.
Adaptive Oscillator Display: Features customizable display options for the stochastic oscillator, allowing traders to view data in Default, Histogram, or Both modes.
Customizable Lookback Periods: Users can set specific lookback periods for divergence analysis and stochastic calculations, tailoring the tool to fit various trading strategies.
In the example below, there is a bearish divergence above 0. You would first want the stoch to break below the 0 level as a show of strength, this would be an aggressive entry, a higher probability option would be to wait for the stoch to retest and reject from 0 which is what we have a few candles later.
How it Works
Stochastic Calculation: Computes the stochastic oscillator by smoothing the %K line over a user-defined period, then applying a second smoothing for the %D line.
Pivot Point Analysis: Utilizes advanced algorithms to find low and high pivot points based on the oscillator values, crucial for spotting trend reversals.
Colour-Coded Divergence Alerts: Utilizes color codes to highlight divergence signals directly on the chart, aiding in quick visual analysis.
Responsive Threshold Settings: Includes options to adjust the sensitivity of divergence detection, ensuring that only significant divergences are highlighted.
In the example below, we have 2 divergence signals. The first a bullish one which fails to break above 0. The second signal is given above 0 so you would want a retest and a show of strength when the stoch returns to 0 but it fails to hold. Both of these divergence signals are invalidated.
Application
Strategic Decision-Making: Assists traders in making informed decisions by providing detailed analysis of stochastic movements and divergence.
Trend Confirmation: Reinforces trading strategies by confirming potential reversals with pivot point detection and divergence analysis.
Customized Analysis: Adapts to various trading styles with extensive input settings that control the display and sensitivity of oscillator data.
The Advanced Stochastic Indicator by is an invaluable addition to a trader's toolkit, offering depth and precision in market trend analysis to navigate complex market conditions effectively.
ICT Immediate Rebalance Toolkit [LuxAlgo]The ICT Immediate Rebalance Toolkit is a comprehensive suite of tools crafted to aid traders in pinpointing crucial trading zones and patterns within the market.
The ICT Immediate Rebalance, although frequently overlooked, emerges as one of ICT's most influential concepts, particularly when considered within a specific context. The toolkit integrates commonly used price action tools to be utilized in conjunction with the Immediate Rebalance patterns, enriching the capacity to discern context for improved trading decisions.
The ICT Immediate Rebalance Toolkit encompasses the following Price Action components:
ICT Immediate Rebalance
Buyside/Sellside Liquidity
Order Blocks & Breaker Blocks
Liquidity Voids
ICT Macros
🔶 USAGE
🔹 ICT Immediate Rebalance
What is an Immediate Rebalance?
Immediate rebalances, a concept taught by ICT, hold significant importance in decision-making. To comprehend the concept of immediate rebalance, it's essential to grasp the notion of the fair value gap. A fair value gap arises from market inefficiencies or imbalances, whereas an immediate rebalance leaves no gap, no inefficiencies, or no imbalances that the price would need to return to.
Rule of Thumb
After an immediate rebalance, the expectation is for two extension candles to follow; otherwise, the immediate rebalance is considered failed. It's important to highlight that both failed and successful immediate rebalances, when considered within a context, are significant signatures in trading.
Immediate rebalances can occur anywhere and in any timeframe.
🔹 Buyside/Sellside Liquidity
In the context of Inner Circle Trader's teachings, liquidity primarily refers to the presence of stop losses or pending orders, that indicate concentrations of buy or sell orders at specific price levels. Institutional traders, like banks and large financial entities, frequently aim for these liquidity levels or pools to accumulate or distribute their positions.
Buyside liquidity denotes a chart level where short sellers typically position their stops, while Sellside liquidity indicates a level where long-biased traders usually place their stops. These zones often serve as support or resistance levels, presenting potential trading opportunities.
The presentation applied here is the multi-timeframe version of our previously published Buyside-Sellside-Liquidity script.
🔹 Order Blocks & Breaker Blocks
Order Blocks and Breaker Blocks hold significant importance in technical analysis and play a crucial role in shaping market behavior.
Order blocks are fundamental elements of price action analysis used by traders to identify key levels in the market where significant buying or selling activity has occurred. These blocks represent areas on a price chart where institutional traders, banks, or large market participants have placed substantial buy or sell orders, leading to a temporary imbalance in supply and demand.
Breaker blocks, also known as liquidity clusters or pools, complement order blocks by identifying zones where liquidity is concentrated on the price chart. These areas, formed from mitigated order blocks, often act as significant barriers to price movement, potentially leading to price stalls or reversals in the future.
🔹 Liquidity Voids
Liquidity voids are sudden price changes when the price jumps from one level to another. Liquidity voids will appear as a single or a group of candles that are all positioned in the same direction. These candles typically have large real bodies and very short wicks, suggesting very little disagreement between buyers and sellers.
Here is our previously released Liquidity-Voids script.
🔹 ICT Macros
In the context of ICT's teachings, a macro is a small program or set of instructions that unfolds within an algorithm, which influences price movements in the market. These macros operate at specific times and can be related to price runs from one level to another or certain market behaviors during specific time intervals. They help traders anticipate market movements and potential setups during specific time intervals.
Here is our previously released ICT-Macros script.
🔶 SETTINGS
🔹 Immediate Rebalances
Immediate Rebalances: toggles the visibility of the detected immediate rebalance patterns.
Bullish, and Bearish Immediate Rebalances: color customization options.
Wicks 75%, %50, and %25: color customization options of the wick price levels for the detected immediate rebalance.
Ignore Price Gaps: ignores price gaps during calculation.
Confirmation (Bars): specifies the number of bars required to confirm the validation of the detected immediate rebalance.
Immediate Rebalance Icon: allows customization of the size of the icon used to represent the immediate rebalance.
🔹 Buyside/Sellside Liquidity
Buyside/Sellside Liquidity: toggles the visibility of the buy-side/sell-side liquidity levels.
Timeframe: this option is to identify liquidity levels from higher timeframes. If a timeframe lower than the chart's timeframe is selected, calculations will be based on the chart's timeframe.
Detection Length: lookback period used for the detection.
Margin: sets margin/sensitivity for the liquidity levels.
Buyside/Sellside Liquidity Color: color customization option for buy-side/sell-side liquidity levels.
Visible Liquidity Levels: allows customization of the visible buy-side/sell-side liquidity levels.
🔹 Order Blocks & Breaker Blocks
Order Blocks: toggles the visibility of the order blocks.
Breaker Blocks: toggles the visibility of the breaker blocks.
Swing Detection Length: lookback period used for the detection of the swing points used to create order blocks & breaker blocks.
Mitigation Price: allows users to select between the closing price or the wick of the candle.
Use Candle Body in Detection: allows users to use candle bodies as order block areas instead of the full candle range.
Remove Mitigated Order Blocks & Breaker Blocks: toggles the visibility of the mitigated order blocks & breaker blocks.
Order Blocks: Bullish, Bearish Color: color customization option for order blocks.
Breaker Blocks: Bullish, Bearish Color: color customization option for breaker blocks.
Visible Order & Breaker Blocks: allows customization of the visible order & breaker blocks.
Show Order Blocks & Breaker Blocks Labels: toggles the visibility of the order blocks & breaker blocks labels.
🔹 Liquidity Voids
Liquidity Voids: toggles the visibility of the liquidity voids.
Liquidity Voids Width Filter: filtering threshold while detecting liquidity voids.
Ignore Price Gaps: ignores price gaps during calculation.
Remove Mitigated Liquidity Voids: remove mitigated liquidity voids.
Bullish, Bearish, and Mitigated Liquidity Voids: color customization option..
Liquidity Void Labels: toggles the visibility of the liquidity voids labels.
🔹 ICT Macros
London and New York (AM, Launch, and PM): toggles the visibility of specific macros, allowing users to customize macro colors.
Macro Top/Bottom Lines, Extend: toggles the visibility of the macro's pivot high/low lines and allows users to extend the pivot lines.
Macro Mean Line: toggles the visibility of the macro's mean (average) line.
Macro Labels: toggles the visibility of the macro labels, allowing customization of the label size.
🔶 RELATED SCRIPTS
ICT-Killzones-Toolkit
Smart-Money-Concepts
Thanks to our community for recommending this script. For more conceptual scripts and related content, we welcome you to explore by visiting >>> LuxAlgo-Scripts .
Market Cipher B by WeloTradesMarket Cipher B by WeloTrades: Detailed Script Description
//Overview//
"Market Cipher B by WeloTrades" is an advanced trading tool that combines multiple technical indicators to provide a comprehensive market analysis framework. By integrating WaveTrend, RSI, and MoneyFlow indicators, this script helps traders to better identify market trends, potential reversals, and trading opportunities. The script is designed to offer a holistic view of the market by combining the strengths of these individual indicators.
//Key Features and Originality//
WaveTrend Analysis:
WaveTrend Channel (WT1 and WT2): The core of this script is the WaveTrend indicator, which uses the smoothed average of typical price to identify overbought and oversold conditions. WT1 and WT2 are calculated to track market momentum and cyclical price movements.
Major Divergences (🐮/🐻): The script detects and highlights major bullish and bearish divergences automatically, providing traders with visual cues for potential reversals. This helps in making informed decisions based on divergence patterns.
Relative Strength Index (RSI):
RSI Levels: RSI is used to measure the speed and change of price movements, with specific levels indicating overbought and oversold conditions.
Customizable Levels: Users can configure the overbought and oversold thresholds, allowing for a tailored analysis based on individual trading strategies.
MoneyFlow Indicator:
Fast and Slow MoneyFlow: This indicator tracks the flow of capital into and out of the market, offering insights into the underlying market strength. It includes configurable periods and multipliers for both fast and slow MoneyFlow.
Vertical Positioning: The script allows users to adjust the vertical position of MoneyFlow plots to maintain a clear and uncluttered chart.
Stochastic RSI:
Stochastic RSI Levels: This combines the RSI and Stochastic indicators to provide a momentum oscillator that is sensitive to price changes. It is used to identify overbought and oversold conditions within a specified period.
Customizable Levels: Traders can set specific levels for more precise analysis.
//How It Works//
The script integrates these indicators through advanced algorithms, creating a synergistic effect that enhances market analysis. Here’s a detailed explanation of the underlying concepts and calculations:
WaveTrend Indicator:
Calculation: WaveTrend is based on the typical price (average of high, low, and close) smoothed over a specified channel length. WT1 and WT2 are derived from this typical price and further smoothed using the Average Channel Length. The difference between WT1 and WT2 indicates momentum, helping to identify cyclical market trends.
RSI (Relative Strength Index):
Calculation: RSI calculates the average gains and losses over a specified period to measure the speed and change of price movements. It oscillates between 0 and 100, with levels set to identify overbought (>70) and oversold (<30) conditions.
MoneyFlow Indicator:
Calculation: MoneyFlow is derived by multiplying price changes by volume and smoothing the results over specified periods. Fast MoneyFlow reacts quickly to price changes, while Slow MoneyFlow offers a broader view of capital movement trends.
Stochastic RSI:
Calculation: Stochastic RSI is computed by applying the Stochastic formula to RSI values, which highlights the RSI’s relative position within its range over a given period. This helps in identifying momentum shifts more precisely.
//How to Use the Script//
Display Settings:
Users can enable or disable various components like WaveTrend OB & OS levels, MoneyFlow plots, and divergence alerts through checkboxes.
Example: Turn on "Show Major Divergence" to see major bullish and bearish divergence signals directly on the chart.
Adjust Channel Settings:
Customize the data source, channel length, and smoothing periods in the "WaveTrend Channel SETTINGS" group.
Example: Set the "Channel Length" to 10 for a more responsive WaveTrend line or adjust the "Average Channel Length" to 21 for smoother trends.
Set Overbought & Oversold Levels:
Configure levels for WaveTrend, RSI, and Stochastic RSI in their respective settings groups.
Example: Set the WaveTrend Overbought Level to 60 and Oversold Level to -60 to define critical thresholds.
Money Flow Settings:
Adjust the periods and multipliers for Fast and Slow MoneyFlow indicators, and set their vertical positions for better visualization.
Example: Set the Fast Money Flow Period to 9 and Slow Money Flow Period to 12 to capture both short-term and long-term capital movements.
//Justification for Combining Indicators//
Enhanced Market Analysis:
Combining WaveTrend, RSI, and MoneyFlow provides a more comprehensive view of market conditions. Each indicator brings a unique perspective, making the analysis more robust.
WaveTrend identifies cyclical trends, RSI measures momentum, and MoneyFlow tracks capital movement. Together, they provide a multi-dimensional analysis of the market.
Improved Decision-Making:
By integrating these indicators, the script helps traders make more informed decisions. For example, a bullish divergence detected by WaveTrend might be validated by an RSI moving out of oversold territory and supported by increasing MoneyFlow.
Customization and Flexibility:
The script offers extensive customization options, allowing traders to tailor it to their specific needs and strategies. This flexibility makes it suitable for different trading styles and timeframes.
//Conclusion//
The indicator stands out due to its innovative combination of WaveTrend, RSI, and MoneyFlow indicators, offering a well-rounded tool for market analysis. By understanding how each component works and how they complement each other, traders can leverage this script to enhance their market analysis and trading strategies, making more informed and confident decisions.
Remember to always backtest the indicator first before implying it to your strategy.
Reversal Candlestick Structure [LuxAlgo]The Reversal Candlestick Structure indicator detects multiple candlestick patterns occurring when trends are most likely to experience a reversal in real-time. The reversal detection method includes various settings allowing users to adjust the reversal detection algorithm more precisely.
A dashboard showing the percentage of patterns detected as reversals is also included.
🔶 USAGE
Candlestick patterns are ubiquitous to technical analysts, allowing them to detect trend continuations, reversals, and indecision.
The proposed tool effectively detects reversals by using the confluence between candlestick patterns and a reversal detection method based on the stochastic oscillator, acting as a filter for the patterns. If a candlestick pattern occurs while conditions suggest a potential reversal then the pattern is highlighted.
The displayed candle coloring allows users to observe the reversal detection method, with colored candles indicating potential reversals.
Users wanting to detect longer-term reversals can use a higher "Trend Length" setting, this can however lead to an increased amount of displayed candlestick patterns.
To prevent false positives users also have control over a "Threshold" setting in a range between (0, 100), with values closer to 100 preventing candlesticks from being detected at the start of trends.
The "Warmup Length" serves a similar purpose, and aims to prevent sudden moves to be classified as reversals. Higher values of this setting will require trends to be established for a longer period of time for reversal conditions to be detected.
🔹 Dashboard
To evaluate the role of individual candlestick patterns as potential reversal signals relative to the proposed reversal detection method, a dashboard displaying the percentage of candlestick patterns displayed (that occur when a potential reversal is detected) over the total amount detected.
Hovering on the dashboard cells of the "Reversal %" column allows displaying the total amount of patterns detected.
🔶 CANDLESTICKS PATTERNS
This tool detects 16 popular candlestick patterns, each listed in the sub-sections below.
🔹 Bullish Patterns
Hammer - A bullish reversal pattern that forms after a decline, characterized by a small body at the upper end of the trading range and a long lower shadow.
Inverted Hammer - A bullish reversal pattern that forms after a downtrend, featuring a small body at the lower end of the trading range and a long upper shadow.
Bullish Engulfing - A bullish reversal pattern where a small bearish candlestick is followed by a larger bullish candlestick that completely engulfs the previous candle.
Rising 3 - A bullish continuation pattern that consists of a long bullish candlestick followed by three smaller bearish candlesticks and then another long bullish candlestick.
3 White Soldiers - A bullish reversal pattern consisting of three consecutive long bullish candlesticks, each opening within the previous candle's body and closing higher.
Morning Star - A bullish reversal pattern made up of three candlesticks: a long bearish candlestick, followed by a short candlestick, and then a long bullish candlestick.
Bullish Harami - A bullish reversal pattern where a small bullish candlestick is completely within a previous larger bearish candlestick.
Tweezer Bottom - A bullish reversal pattern identified by an initial bullish candle, followed by a bearish candle, both having equal lows.
🔹 Bearish Patterns
Hanging Man - A bearish reversal pattern that forms after an uptrend, characterized by a small body at the upper end of the trading range and a long lower shadow.
Shooting Star - A bearish reversal pattern that forms after an uptrend, featuring a small body at the lower end of the trading range and a long upper shadow.
Bearish Engulfing - A bearish reversal pattern where a small bullish candlestick is followed by a larger bearish candlestick that completely engulfs the previous candle.
Falling 3 - A bearish continuation pattern that consists of a long bearish candlestick followed by three smaller bullish candlesticks and then another long bearish candlestick.
3 Black Crows - A bearish reversal pattern consisting of three consecutive long bearish candlesticks, each opening within the previous candle's body and closing lower.
Evening Star - A bearish reversal pattern made up of three candlesticks: a long bullish candlestick, followed by a short candlestick, and then a long bearish candlestick.
Bearish Harami - A bearish reversal pattern where a small bearish candlestick is completely within a previous larger bullish candlestick.
Tweezer Top - A bearish reversal pattern is identified by an initial bullish candle, followed by a bearish candle, both having equal highs."
🔶 SETTINGS
🔹 Patterns
Group including toggles for each of the supported candlestick patterns. Enabled toggles will allow detection of the associated candlestick pattern.
🔹 Reversal Detection
Trend Length: Determines the sensitivity of the reversal detection method to shorter-term variation, with higher values returning a detection method more sensitive to longer-term trends.
Threshold: Determines how easy it is for the reversal detection method to consider a trend at an extreme point.
Warmup Length: Warmup period in the reversal detection method, longer values will require a longer-term trend to detect potential reversals.
🔹 Style
Color Candles: Enable candle coloring on the user chart based on the reversal detection method.
Use Gradient: Use a gradient as candle coloring.
Label Size: Size of the labels displaying the detected candlesticks patterns.
🔹 Dashboard
Show Dashboard: Display the dashboard on the user chart when enabled.
Location: Dashboard location on the user chart.
Size: Size of the displayed dashboard.
Liquidity Grab Zones | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Liquidity Grab Zones Indicator! This indicator finds liquidity grabs in the current ticker and renders buyside & sellside liquidity grab zones. The retests and breakout of the zones are labeled, and you can set up alerts to get notified. For more information, please check the "HOW DOES IT WORK" section.
Features of the new Liquidity Grab Zones Indicator :
Renders Buyside & Sellside Liquidity Grab Zones
Retests & Breaks
Inverse Zones After Broken Feature
Alerts For All Features
Customizable Algorithm
Customizable Styles
🚩UNIQUENESS
Liquidity grabs can be useful when determining candles that have executed a lot of market orders, so you can plann your trades accordingly. This indicator lets you customize the pivot length and the wick-body ratio for liquidity grabs, provide retest & breakout labels, with customized styling and alerts.
📌 HOW DOES IT WORK ?
Liquidity grabs occur when one of the latest pivots has a false breakout. Then, if the wick to body ratio of the bar is higher than 0.5 (can be changed from the settings) a zone is plotted.
These zones usually indicate areas of high market interest where price action may reverse or accelerate. Identifying these zones can provide traders with critical levels for entering or exiting trades. A breakout of these zones generally mean strong movements are inbound, while failing breakouts make these zones act like support / resistance zones.
The indicator also reverses the type of the zone after an invalidation (can be turned off from the settings). This feature helps traders identify potential reversals more accurately.
The zone width is set to the area from the wick to the body of the candlestick, which can be seen here :
⚙️SETTINGS
1. General Configuration
Pivot Length -> This setting determines the range of the pivots. This means a candle has to have the highest / lowest wick of the previous X bars and the next X bars to become a high / low pivot.
Wick-Body Ratio -> After a pivot has a false breakout, the wick-body ratio of the latest candle is tested. The resulting ratio must be higher than this setting for it to be considered as a liquidity grab.
Zone Invalidation -> Select between Wick & Close price for Liquidity Grab Zone Invalidation.
Use these customizable settings to fine-tune the indicator according to your trading strategy and preferences.
Smart Money Concept [TradingFinder] Major OB + FVG + Liquidity🔵 Introduction
"Smart Money" refers to funds under the control of institutional investors, central banks, funds, market makers, and other financial entities. Ordinary people recognize investments made by those who have a deep understanding of market performance and possess information typically inaccessible to regular investors as "Smart Money".
Consequently, when market movements often diverge from expectations, traders identify the footprints of smart money. For example, when a classic pattern forms in the market, traders take short positions. However, the market might move upward instead. They attribute this contradiction to smart money and seek to capitalize on such inconsistencies in their trades.
The "Smart Money Concept" (SMC) is one of the primary styles of technical analysis that falls under the subset of "Price Action". Price action encompasses various subcategories, with one of the most significant being "Supply and Demand", in which SMC is categorized.
The SMC method aims to identify trading opportunities by emphasizing the impact of large traders (Smart Money) on the market, offering specific patterns, techniques, and trading strategies.
🟣 Key Terms of Smart Money Concept (SMC)
• Market Structure (Trend)
• Change of Character (ChoCh)
• Break of Structure (BoS)
• Order Blocks (Supply and Demand)
• Imbalance (IMB)
• Inefficiency (IFC)
• Fair Value Gap (FVG)
• Liquidity
• Premium and Discount
🔵 How Does the "Smart Money Concept Indicator" Work?
🟣 Market Structure
a. Accumulation
b. Market-Up
c. Distribution
d. Market-Down
a) Accumulation Phase : During the accumulation period, typically following a downtrend, smart money enters the market without significantly affecting the pricing trend.
b) Market-Up Phase : In this phase, the price of an asset moves upward from the accumulation range and begins to rise. Usually, the buying by retail investors is the main driver of this trend, and due to positive market sentiment, it continues.
c) Distribution Phase : The distribution phase, unlike the accumulation stage, occurs after an uptrend. In this phase, smart money attempts to exit the market without causing significant price fluctuations.
d) Market-Down Phase : In this stage, the price of an asset moves downward from the distribution phase, initiating a prolonged downtrend. Smart money liquidates all its positions by creating selling pressure, trapping latecomer investors.
The result of these four phases in the market becomes the market trend.
Types of Trends in Financial Markets :
a. Up-Trend
b. Down Trend
c. Range (No Trend)
a) Up-Trend : The market breaks consecutive highs.
b) Down Trend : The market breaks consecutive lows.
c) No Trend or Range : The market oscillates within a range without breaking either highs or lows.
🟣 Change of Character (ChoCh)
The "ChoCh" or "Change of Character" pattern indicates an initial change in order flow in financial markets. This structural change occurs when a major pivot in the opposite direction of the market trend fails. It signals a potential change in the market trend and can serve as a signal for short-term or long-term trend changes in a trading symbol.
🟣 Break of Structure (BoS)
The "BoS" or "Break of Structure" pattern indicates the continuation of the trend in financial markets. This structure forms when, in an uptrend, the price breaks its ceiling or, in a downtrend, the price breaks its floor.
🟣 Order Blocks (Supply and Demand)
Order blocks consist of supply and demand areas where the likelihood of price reversal is higher. There are six order blocks in this indicator, categorized based on their origin and formation reasons.
a. Demand Main Zone, "ChoCh" Origin.
b. Demand Sub Zone, "ChoCh" Origin.
c. Demand All Zone, "BoS" Origin.
d. Supply Main Zone, "ChoCh" Origin.
e. Supply Sub Zone, "ChoCh" Origin.
f. Supply All Zone, "BoS" Origin.
🟣 FVG | Inefficiency | Imbalance
These three terms are almost synonymous. They describe the presence of gaps between consecutive candle shadows. This inefficiency occurs when the market moves rapidly. Primarily, imbalances and these rapid movements stem from the entry of smart money and the imbalance between buyer and seller power. Therefore, identifying these movements is crucial for traders.
These areas are significant because prices often return to fill these gaps or even before they occur to fill price gaps.
🟣 Liquidity
Liquidity zones are areas where there is a likelihood of congestion of stop-loss orders. Liquidity is considered the driving force of the entire market, and market makers may manipulate the market using these zones. However, in many cases, this does not happen because there is insufficient liquidity in some areas.
Types of Liquidity in Financial Markets :
a. Trend Lines
b. Double Tops | Double Bottoms
c. Triple Tops | Triple Bottoms
d. Support Lines | Resistance Lines
All four types of liquidity in this indicator are automatically identified.
🟣 Premium and Discount
Premium and discount zones can assist traders in making better decisions. For instance, they may sell positions in expensive ranges and buy in cheaper ranges. The closer the price is to the major resistance, the more expensive it is, and the closer it is to the major support, the cheaper it is.
🔵 How to Use
🟣 Change of Character (ChoCh) and Break of Structure (BoS)
This indicator detects "ChoCh" and "BoS" in both Minor and Major states. You can turn on the display of these lines by referring to the last part of the settings.
🟣 Order Blocks (Supply and Demand)
Order blocks are Zones where the probability of price reversal is higher. In demand Zones you can buy opportunities and in supply Zones you can check sell opportunities.
The "Refinement" feature allows you to adjust the width of the order block according to your strategy. There are two modes, "Aggressive" and "Defensive," in the "Order Block Refine". The difference between "Aggressive" and "Defensive" lies in the width of the order block.
For risk-averse traders, the "Defensive" mode is suitable as it provides a lower loss limit and a greater reward-to-risk ratio. For risk-taking traders, the "Aggressive" mode is more appropriate. These traders prefer to enter trades at higher prices, and this mode, which has a wider order block width, is more suitable for this group of individuals.
🟣 Fair Value Gap (FVG) | Imbalance (IMB) | Inefficiency (IFC)
In order to identify the "fair value gap" on the chart, it must be analyzed candle by candle. In this process, it is important to pay attention to candles with a large size, and a candle and a candle should be examined before that.
Candles before and after this central candle should have long shadows and their bodies should not overlap with the central candle body. The distance between the shadows of the first and third candles is known as the FVG range.
These areas work in two ways :
• Supply and demand area : In this case, the price reacts to these areas and the trend is reversed.
• Liquidity zone : In this scenario, the price "fills" the zone and then reaches the order block.
Important note : In most cases, the FVG zone of very small width acts as a supply and demand zone, while the zone of significant width acts as a liquidity zone and absorbs price.
When the FVG filter is activated, the FVG regions are filtered based on the specified algorithm.
FVG filter types include the following :
1. Very Aggressive Mode : In addition to the initial condition, an additional condition is considered. For bullish FVG, the maximum price of the last candle must be greater than the maximum price of the middle candle.
Similarly, for a bearish FVG, the minimum price of the last candle must be lower than the minimum price of the middle candle. This mode removes the minimum number of FVGs.
2. Aggressive : In addition to the very aggressive condition, the size of the middle candle is also considered. The size of the center candle should not be small and therefore more FVGs are removed in this case.
3. Defensive : In addition to the conditions of the very aggressive mode, this mode also considers the size of the middle pile, which should be relatively large and make up the majority of the body.
Also, to identify bullish FVGs, the second and third candles must be positive, while for bearish FVGs, the second and third candles must be negative. This mode filters out a significant number of FVGs and keeps only those of good quality.
4. Very Defensive : In addition to the conditions of the defensive mode, in this mode the first and third candles should not be very small-bodied doji candles. This mode filters out most FVGs and only the best quality ones remain.
🟣 Liquidity
These levels are where traders intend to exit their trades. "Market makers" or smart money usually accumulate or distribute their trading positions near these levels, where many retail traders have placed their "stop loss" orders. When liquidity is collected from these losses, the price often reverses.
A "Stop hunt" is a move designed to offset liquidity generated by established stop losses. Banks often use major news events to trigger stop hunts and capture liquidity released into the market. For example, if they intend to execute heavy buy orders, they encourage others to sell through stop-hots.
Consequently, if there is liquidity in the market before reaching the order block area, the validity of that order block is higher. Conversely, if the liquidity is close to the order block, that is, the price reaches the order block before reaching the liquidity limit, the validity of that order block is lower.
🟣 Alert
With the new alert functionality in this indicator, you won't miss any important trading signals. Alerts are activated when the price hits the last order block.
1. It is possible to set alerts for each "symbol" and "time frame". The system will automatically detect both and include them in the warning message.
2. Each alert provides the exact date and time it was triggered. This helps you measure the timeliness of the signal and evaluate its relevance.
3. Alerts include target order block price ranges. The "Proximal" level represents the initial price level strike, while the "Distal" level represents the maximum price gap in the block. These details are included in the warning message.
4. You can customize the alert name through the "Alert Name" entry.
5. Create custom messages for "long" and "short" alerts to be sent with notifications.
🔵 Setting
a. Pivot Period of Order Blocks Detector :
Using this parameter, you can set the zigzag period that is formed based on the pivots.
b. Order Blocks Validity Period (Bar) :
You can set the validity period of each Order Block based on the number of candles that have passed since the origin of the Order Block.
c. Demand Main Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Demand Main Zone, "ChoCh" Origin.
d. Demand Sub Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Demand Sub Zone, "ChoCh" Origin.
e. Demand All Zone, "BoS" Origin :
You can control the display or not display as well as the color of Demand All Zone, "BoS" Origin.
f. Supply Main Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Supply Main Zone, "ChoCh" Origin.
g. Supply Sub Zone, "ChoCh" Origin :
You can control the display or not display as well as the color of Supply Sub Zone, "ChoCh" Origin.
h. Supply All Zone, "BoS" Origin :
You can control the display or not display as well as the color of Supply All Zone, "BoS" Origin.
i. Refine Demand Main : You can choose to be refined or not and also the type of refining.
j. Refine Demand Sub : You can choose to be refined or not and also the type of refining.
k. Refine Demand BoS : You can choose to be refined or not and also the type of refining.
l. Refine Supply Main : You can choose to be refined or not and also the type of refining.
m. Refine Supply Sub : You can choose to be refined or not and also the type of refining.
n. Refine Supply BoS : You can choose to be refined or not and also the type of refining.
o. Show Demand FVG : You can choose to show or not show Demand FVG.
p. Show Supply FVG : You can choose to show or not show Supply FVG
q. FVG Filter : You can choose whether FVG is filtered or not. Also specify the type of filter you want to use.
r. Show Statics High Liquidity Line : Show or not show Statics High Liquidity Line.
s. Show Statics Low Liquidity Line : Show or not show Statics Low Liquidity Line.
t. Show Dynamics High Liquidity Line : Show or not show Dynamics High Liquidity Line.
u. Show Dynamics Low Liquidity Line : Show or not show Dynamics Low Liquidity Line.
v. Statics Period Pivot :
Using this parameter, you can set the Swing period that is formed based on Static Liquidity Lines.
w. Dynamics Period Pivot :
Using this parameter, you can set the Swing period that is formed based Dynamics Liquidity Lines.
x. Statics Liquidity Line Sensitivity :
is a number between 0 and 0.4. Increasing this number decreases the sensitivity of the "Statics Liquidity Line Detection" function and increases the number of lines identified. The default value is 0.3.
y. Dynamics Liquidity Line Sensitivity :
is a number between 0.4 and 1.95. Increasing this number increases the sensitivity of the "Dynamics Liquidity Line Detection" function and decreases the number of lines identified. The default value is 1.
z. Alerts Name : You can customize the alert name using this input and set it to your desired name.
aa. Alert Demand Main Mitigation :
If you want to receive the alert about Demand Main 's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
bb. Alert Demand Sub Mitigation :
If you want to receive the alert about Demand Sub's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
cc. Alert Demand BoS Mitigation :
If you want to receive the alert about Demand BoS's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
dd. Alert Supply Main Mitigation :
If you want to receive the alert about Supply Main's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
ee. Alert Supply Sub Mitigation :
If you want to receive the alert about Supply Sub's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
ff. Alert Supply BoS Mitigation :
If you want to receive the alert about Supply BoS's mitigation after setting the alerts, leave this tick on. Otherwise, turn it off.
gg. Message Frequency :
This parameter, represented as a string, determines the frequency of announcements. Options include: 'All' (triggers the alert every time the function is called), 'Once Per Bar' (triggers the alert only on the first call within the bar), and 'Once Per Bar Close' (activates the alert only during the final script execution of the real-time bar upon closure). The default setting is 'Once per Bar'.
hh. Show Alert time by Time Zone :
The date, hour, and minute displayed in alert messages can be configured to reflect any chosen time zone. For instance, if you prefer London time, you should input 'UTC+1'. By default, this input is configured to the 'UTC' time zone.
ii. Display More Info : The 'Display More Info' option provides details regarding the price range of the order blocks (Zone Price), along with the date, hour, and minute. If you prefer not to include this information in the alert message, you should set it to 'Off'.
You also have access to display or not to display, choose the Style and Color of all the lines below :
a. Major Bullish "BoS" Lines
b. Major Bearish "BoS" Lines
c. Minor Bullish "BoS" Lines
d. Minor Bearish "BoS" Lines
e. Major Bullish "ChoCh" Lines
f. Major Bearish "ChoCh" Lines
g. Minor Bullish "ChoCh" Lines
h. Minor Bearish "ChoCh" Lines
i. Last Major Support Line
j. Last Major Resistance Line
k. Last Minor Support Line
l. Last Minor Resistance Line
Kalman Hull RSI [BackQuant]Kalman Hull RSI
At its core, this indicator uses a Kalman filter of price, put inside of a hull moving average function (replacing the weighted moving averages) and then using that as a price source for the the RSI, very similar to the Kalman Hull Supertrend just processing price for a different indicator.
This also allows it to make it more adaptive to price and also sensitive to recent price action. This indicator is also mainly built for trend-following systems
PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner.
1. What is a Kalman Filter
The Kalman Filter is an algorithm renowned for its efficiency in estimating the states of a linear dynamic system amidst noisy data. It excels in real-time data processing, making it indispensable in fields requiring precise and adaptive filtering, such as aerospace, robotics, and financial market analysis. By leveraging its predictive capabilities, traders can significantly enhance their market analysis, particularly in estimating price movements more accurately.
If you would like this on its own, with a more in-depth description please see our Kalman Price Filter.
OR our Kalman Hull Supertrend
2. Hull Moving Average (HMA) and Its Core Calculation
The Hull Moving Average (HMA) improves on traditional moving averages by combining the Weighted Moving Average's (WMA) smoothness and reduced lag. Its core calculation involves taking the WMA of the data set and doubling it, then subtracting the WMA of the full period, followed by applying another WMA on the result over the square root of the period's length. This methodology yields a smoother and more responsive moving average, particularly useful for identifying market trends more rapidly.
3. Combining Kalman Filter with HMA
The innovative combination of the Kalman Filter with the Hull Moving Average (KHMA) offers a unique approach to smoothing price data. By applying the Kalman Filter to the price source before its incorporation into the HMA formula, we enhance the adaptiveness and responsiveness of the moving average. This adaptive smoothing method reduces noise more effectively and adjusts more swiftly to price changes, providing traders with clearer signals for market entries or exits.
The calculation is like so:
KHMA(_src, _length) =>
f_kalman(2 * f_kalman(_src, _length / 2) - f_kalman(_src, _length), math.round(math.sqrt(_length)))
Use Case
The Kalman Hull RSI is particularly suited for traders who require a highly adaptive indicator that can respond to rapid market changes without the excessive noise associated with typical RSI calculations. It can be effectively used in markets with high volatility where traditional indicators might lag or produce misleading signals.
Application in a Trading System
The Kalman Hull RSI is versatile in application, suitable for:
Trend Identification: Quickly identify potential reversals or confirmations of existing trends.
Overbought/Oversold Conditions: Utilize the dynamic RSI thresholds to pinpoint potential entry and exit points, adapting to current market conditions.
Risk Management: Enhance trading strategies by integrating a more reliable measure of momentum, which can lead to improved stop-loss placements and exit strategies.
Core Calculations and Benefits
Dynamic State Estimation: By applying the Kalman Filter, the indicator continually adjusts its calculations based on incoming price data, providing a real-time, smoothed response to price movements.
Reduced Lag: The integration with HMA significantly reduces lag, offering quicker responses to price changes than traditional moving averages or RSI alone.
Increased Accuracy: The dual filtering effect minimizes the impact of price spikes and noise, leading to more accurate signaling for trades.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Tic Tac Toe Game [TradeDots]Feeling bored with trading?
Time to inject some fun into your decision-making process with our Tic Tac Toe Indicator!
The Tic Tac Toe game transforms your chart into a competitive playground where trading pairs face off in a classic game of Tic Tac Toe.
HOW TO PLAY
Our Tic Tac Toe game invites you to pit one trading pair against another directly on your chart. Choose the competitors and watch as they battle it out in a traditional grid setup.
Navigate to settings and select your competitor pair.
Choose who kicks off the game.
After the close of each new bar, the algorithm will utilize the closing prices of both symbols. These numbers feed into a random number generator which alternates the turns for placing marks on the grid.
The game progresses until one pair aligns three consecutive symbols and wins, or the board fills up. After that, the game resets every three bars, offering continual engagement during active market hours.
MANUAL PLAYING MODE
Currently, due to PineScript's limitations, a fully interactive manual mode is not supported, as all previous data will be lost with each new user input, preventing the replication of existing game states.
However, users can input a sequence at the start, guiding the placement of symbols throughout the game.
Stay tuned for future updates!
Order Block Refiner [TradingFinder]🔵 Introduction
The "Refinement" feature allows you to adjust the width of the order block according to your strategy. There are two modes, "Aggressive" and "Defensive," in the "Order Block Refine". The difference between "Aggressive" and "Defensive" lies in the width of the order block.
For risk-averse traders, the "Defensive" mode is suitable as it provides a lower loss limit and a greater reward-to-risk ratio. For risk-taking traders, the "Aggressive" mode is more appropriate. These traders prefer to enter trades at higher prices, and this mode, which has a wider order block width, is more suitable for this group of individuals.
Important :
One of the advantages of using this library is increased code accuracy. Not only does it have the capability to create order blocks, but you can also simply define the condition for order block creation (true/false) and "bar_index," and you'll find the primary range without applying any filters.
🟣 Order Block Refinement Algorithm
The order block ranges are filtered in two stages. In the first stage, the "Open," "High," "Low," and "Close" of the current order block candle, its two or three previous candles, and one subsequent candle (if available) are examined. In this stage, minimum and maximum distances are calculated, and logical range filters are applied.
In the second stage, two modes, "Aggressive" and "Defensive," are calculated.
For the "Defensive" mode, the width of these ranges is compared with the "ATR" (Average True Range) of period 55, and if they are smaller than "ATR" or 1 to more than 4 times "ATR," the width of the range is reduced from 0 to 80 percent.
For the "Aggressive" mode, you get the same output as the first filter, which usually has a wider width than the "Defensive" mode.
• Order Block Refiner : Off
• Order Block Refiner : On / "Aggressive Mode"
• Order Block Refiner : On / "Defensive Mode"
🔵 How to Use
OBRefiner(string OBType, string OBRefine, string RefineMethod, bool TriggerCondition, int Index) =>
Parameters:
• OBType (string)
• OBRefine (string)
• RefineMethod (string)
• TriggerCondition (bool)
• Index (int)
To add "Order Block Refiner Library", you must first add the following code to your script.
import TFlab/OrderBlockRefiner_TradingFinder/1
OBType : This parameter receives 2 inputs. If the order block you want to "Refine" is of type demand, you should enter "Demand," and if it's of type supply, you should enter "Supply."
OBRefine : Set to "On" if you want the "Refine" operation to be performed. Otherwise, set to "Off."
RefineMethod : This input receives 2 modes, "Aggressive" and "Defensive." You can switch between these modes according to your needs.
TriggerCondition : Enter the condition with which the order block is formed in this parameter.
Index : Enter the "bar_index" of the candle where the order block is formed in this parameter.
🟣 Function Outputs
This function has 6 outputs: "bar_index" at the beginning of the "Distal" line, "bar_index+1" at the end of the "Distal" line, "Price" at the "Distal" line, "bar_index" at the beginning of the "Proximal" line, "bar_index+1" at the end of the "Proximal" line, and "Price" at the "Proximal" line, which can be used to draw order blocks.
Sample :
= Refiner.OBRefiner('Demand', 'Off', 'Aggressive',BuMChMain_Trigger, BuMChMain_Index)
if BuMChMain_Trigger
BuMChHlineMain := line.new(BuMChMain_Xp1 , BuMChMain_Yp12 , bar_index , BuMChMain_Yp12, color = color.black , style = line.style_dotted)
BuMChLlineMain := line.new(BuMChMain_Xd1 , BuMChMain_Yd12 , bar_index , BuMChMain_Yd12, color = color.black , style = line.style_dotted)
BuMChFilineMain := linefill.new(BuMChHlineMain ,BuMChLlineMain , color = color.rgb(76, 175, 80 , 75 ) )
Slow Volume Strength Index (SVSI)The Slow Volume Strength Index (SVSI), introduced by Vitali Apirine in Stocks & Commodities (Volume 33, Chapter 6, Page 28-31), is a momentum oscillator inspired by the Relative Strength Index (RSI). It gauges buying and selling pressure by analyzing the disparity between average volume on up days and down days, relative to the underlying price trend. Positive volume signifies closes above the exponential moving average (EMA), while negative volume indicates closes below. Flat closes register zero volume. The SVSI then applies a smoothing technique to this data and transforms it into an oscillator with values ranging from 0 to 100.
Traders can leverage the SVSI in several ways:
1. Overbought/Oversold Levels: Standard thresholds of 80 and 20 define overbought and oversold zones, respectively.
2. Centerline Crossovers and Divergences: Signals can be generated by the indicator line crossing a midline or by divergences from price movements.
3. Confirmation for Slow RSI: The SVSI can be used to confirm signals generated by the Slow Relative Strength Index (SRSI), another oscillator developed by Apirine.
🔹 Algorithm
In the original article, the SVSI is calculated using the following formula:
SVSI = 100 - (100 / (1 + SVS))
where:
SVS = Average Positive Volume / Average Negative Volume
* Volume is considered positive when the closing price is higher than the six-day EMA.
* Volume is considered negative when the closing price is lower than the six-day EMA.
* Negative volume values are expressed as absolute values (positive).
* If the closing price equals the six-day EMA, volume is considered zero (no change).
* When calculating the average volume, the indicator utilizes Wilder's smoothing technique, as described in his book "New Concepts In Technical Trading Systems."
Note that this indicator, the formula has been simplified to be
SVSI = 100 * Average Positive Volume / (Average Positive Volume + Average Negative Volume)
This formula achieves the same result as the original article's proposal, but in a more concise way and without the need for special handling of division by zero
🔹 Parameters
The SVSI calculation offers configurable parameters that can be adjusted to suit individual trading styles and goals. While the default lookback periods are 6 for the EMA and 14 for volume smoothing, alternative values can be explored. Additionally, the standard overbought and oversold thresholds of 80 and 20 can be adapted to better align with the specific security being analyzed.
Trend ChameleonThe Trend Chameleon, originally developed by Alex Cole for the Bloomberg Terminal, is a powerful tool designed to simplify trend identification and illuminate potential trading opportunities. It leverages a clear visual display to decode market movements, making it useful for traders of all experience levels.
🟠 Overview
Here's an illustration of how the indicator performs for ES (S&P 500 E-mini Future) on the daily chart:
Trend Chameleon employs a color-coded candle scheme, with each color corresponding to a specific level of trend strength. Purple candles represent the strongest bearish trends, while teal candles signal the most potent bullish momentum. Between these extremes lie red, yellow, and green candles, providing a spectrum of trend direction. This intuitive color coding allows you to quickly grasp the prevailing market sentiment and identify potential entry and exit points for your trades.
🟠 Algorithm
Under the hood, Trend Chameleon evaluates four conditions to provide a directional strength score:
1. Whether the MACD value is positive.
2. Whether the SMA 50 of open prices is above the SMA 50 of the close prices.
3. Whether the ROC indicator value is positive.
4. Whether the current close price is above the SMA 50.
The total number of fulfilled conditions (0 to 4) determines the trend strength, with 0 indicating the most bearish and 4 signifying the strongest bullish trend. This score is then visually represented by coloring the bars on the chart.
🟠 Note
If you don't see the bars being properly colored after adding this indicator, please ensure Trend Chameleon is positioned on top of all other indicators in your chart. This can be easily achieved by hovering over the indicator's name, clicking the three dots, selecting "Visual Order," and then choosing "Bring to front."
Price Based Z-Trend - Strategy [presentTrading]█ Introduction and How it is Different
Z-score: a statistical measurement of a score's relationship to the mean in a group of scores.
Simple but effective approach.
The "Price Based Z-Trend - Strategy " leverages the Z-score, a statistical measure that gauges the deviation of a price from its moving average, normalized against its standard deviation. This strategy stands out due to its simplicity and effectiveness, particularly in markets where price movements often revert to a mean. Unlike more complex systems that might rely on a multitude of indicators, the Z-Trend strategy focuses on clear, statistically significant price movements, making it ideal for traders who prefer a streamlined, data-driven approach.
BTCUSD 6h LS Performance
█ Strategy, How It Works: Detailed Explanation
🔶 Calculation of the Z-score
"Z-score is a statistical measurement that describes a value's relationship to the mean of a group of values. Z-score is measured in terms of standard deviations from the mean. If a Z-score is 0, it indicates that the data point's score is identical to the mean score. A Z-score of 1.0 would indicate a value that is one standard deviation from the mean. Z-scores may be positive or negative, with a positive value indicating the score is above the mean and a negative score indicating it is below the mean."
The Z-score is central to this strategy. It is calculated by taking the difference between the current price and the Exponential Moving Average (EMA) of the price over a user-defined length, then dividing this by the standard deviation of the price over the same length:
z = (x - μ) /σ
Local
🔶 Trading Signals
Trading signals are generated based on the Z-score crossing predefined thresholds:
- Long Entry: When the Z-score crosses above the positive threshold.
- Long Exit: When the Z-score falls below the negative threshold.
- Short Entry: When the Z-score falls below the negative threshold.
- Short Exit: When the Z-score rises above the positive threshold.
█ Trade Direction
The strategy allows users to select their preferred trading direction through an input option.
█ Usage
To use this strategy effectively, traders should first configure the Z-score thresholds according to their risk tolerance and market volatility. It's also crucial to adjust the length for the EMA and standard deviation calculations based on historical performance and the expected "noise" in price data.
The strategy is designed to be flexible, allowing traders to refine settings to better capture profitable opportunities in specific market conditions.
█ Default Settings
- Trade Direction: Both
- Standard Deviation Length: 100
- Average Length: 100
- Threshold for Z-score: 1.0
- Bar Color Indicator: Enabled
These settings offer a balanced starting point but can be customized to suit various trading styles and market environments. The strategy's parameters are designed to be adjusted as traders gain experience and refine their approach based on ongoing market analysis.
Z-score is a must-learn approach for every algorithmic trader.
Price Prediction With Rolling Volatility [TradeDots]The "Price Prediction With Rolling Volatility" is a trading indicator that estimates future price ranges based on the volatility of price movements within a user-defined rolling window.
HOW DOES IT WORK
This indicator utilizes 3 types of user-provided data to conduct its calculations: the length of the rolling window, the number of bars projecting into the future, and a maximum of three sets of standard deviations.
Firstly, the rolling window. The algorithm amasses close prices from the number of bars determined by the value in the rolling window, aggregating them into an array. It then calculates their standard deviations in order to forecast the prospective minimum and maximum price values.
Subsequently, a loop is initiated running into the number of bars into the future, as dictated by the second parameter, to calculate the maximum price change in both the positive and negative direction.
The third parameter introduces a series of standard deviation values into the forecasting model, enabling users to dictate the volatility or confidence level of the results. A larger standard deviation correlates with a wider predicted range, thereby enhancing the probability factor.
APPLICATION
The purpose of the indicator is to provide traders with an understanding of the potential future movement of the price, demarcating maximum and minimum expected outcomes. For instance, if an asset demonstrates a substantial spike beyond the forecasted range, there's a significantly high probability of that price being rejected and reversed.
However, this indicator should not be the sole basis for your trading decisions. The range merely reflects the volatility within the rolling window and may overlook significant historical price movements. As with any trading strategies, synergize this with other indicators for a more comprehensive and reliable analysis.
Note: In instances where the number of predicted bars is exceedingly high, the lines may become scattered, presumably due to inherent limitations on the TradingView platform. Consequently, when applying three SD in your indicator, it is advised to limit the predicted bars to fewer than 80.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Bull Bear Trend IndicatorIntroduction: Origin of the Swing Point Indicator
In the quest for a reliable indicator that accurately predicts trend directions and identifies valid highs and lows, the genesis of the Swing Point Indicator emerged. Faced with the challenge of finding a tool that provided comprehensive market analysis and actionable insights, the need for a novel solution became evident. Combining insights gleaned from market analysis and innovative algorithmic approaches, the Swing Point Indicator was born.
Enhanced Feature: Highs and Lows Labeling in Trend Direction
In addition to its core functionalities, the Swing Point Indicator incorporates an advanced feature that enhances the visualization of trend direction. This feature provides further clarity by selectively labeling highs and lows based on the prevailing trend, reinforcing the identification of higher highs and lower lows in uptrends and downtrends, respectively. Overlapping labels on highs and lows signify a potential trend change, providing traders with valuable insight into market reversals.
Detailed Description:
1. Uptrend Labeling:
- Higher Highs (Green Label with Price): In an uptrend, where higher highs are observed, the indicator labels these points with vibrant green color and includes the corresponding price value. This visually highlights the significance of higher highs as pivotal points in the upward trajectory of prices.
- Higher Lows (Red Marker without Text or Diamond): To complement the identification of higher highs, higher lows are marked with a distinct red marker or diamond, devoid of any accompanying text. While these points are crucial in delineating the ascending trend, their emphasis lies in their role as support levels, providing a foundation for upward price movements.
2. Downtrend Labeling:
- Lower Lows (Red Label with Price): Conversely, in a downtrend characterized by lower lows, the indicator labels these points with conspicuous red color, accompanied by the corresponding price value. Lower lows signify critical levels of downward price momentum, acting as indicators of potential bearish continuation.
- Lower Highs (Green Marker without Text or Diamond): Lower highs, indicative of downward retracements in a downtrend, are marked by distinctive green markers or diamonds without accompanying text. While these points denote temporary pauses or pullbacks in the bearish trend, their emphasis lies in their role as resistance levels, impeding upward price movements.
Functionality and Utility:
- Customizable Lookback Candle Count: Traders have the option to adjust the lookback candle count, which is set by default at 108 candles in the settings. This flexibility allows traders to tailor the indicator to their specific trading preferences and timeframes.
- Equal Highs or Lows Option: When enabled, the Swing Point Indicator can identify equal highs or equal lows, providing traders with additional insight into market dynamics.
- Formation Confirmation: A new higher high along with its higher low or a new lower low along with its lower high is confirmed after two candles have closed following the swing point candle. This ensures the reliability of the identified trend direction.
Conclusion:
The incorporation of selective labeling for highs and lows based on trend direction, alongside the introduction of customizable settings and formation confirmation criteria, enhances the effectiveness of the Swing Point Indicator. This feature-rich tool empowers traders with a nuanced understanding of market dynamics, highlighting critical price levels and trend reversals. By offering enhanced visualization, customizable options, and confirmation criteria, the Swing Point Indicator equips traders with the confidence and precision needed to navigate the markets successfully, contributing to more informed and profitable trading strategies.
ICT Silver Bullet | Flux Charts💎 GENERAL OVERVIEW
Introducing our new ICT Silver Bullet Indicator! This indicator is built around the ICT's "Silver Bullet" strategy. The strategy has 5 steps for execution and works best in 1-5 min timeframes. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new ICT Silver Bullet Indicator :
Implementation of ICT's Silver Bullet Strategy
Customizable Execution Settings
2 NY Sessions & London Session
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
ICT's Silver Bullet strategy has 5 steps :
1. Mark your market sessions open (This indicator has 3 -> NY 10-11, NY 14-15, LDN 03-04)
2. Mark the swing liquidity points
3. Wait for market to take down one liquidity side
4. Look for a market structure-shift for reversals
5. Wait for a FVG for execution
This indicator follows these steps and inform you step by step by plotting them in your chart. You can switch execution types between FVG and MSS.
🚩UNIQUENESS
This indicator is an all-in-one suit for the ICT's Silver Bullet concept. It's capable of plotting the strategy, giving signals, a backtesting dashboard and alerts feature. It's designed for simplyfing a rather complex strategy, helping you to execute it with clean signals. The backtesting dashboard allows you to see how your settings perform in the current ticker. You can also set up alerts to get informed when the strategy is executable for different tickers.
⚙️SETTINGS
1. General Configuration
Execution Type -> FVG execution type will require a FVG to take an entry, while the MSS setting will take an entry as soon as it detects a market structure-shift.
MSS Swing Length -> The swing length when finding liquidity zones for market structure-shift detection.
Breakout Method -> If "Wick" is selected, a bar wick will be enough to confirm a market structure-shift. If "Close" is selected, the bar must close above / below the liquidity zone to confirm a market structure-shift.
FVG Detection -> "Same Type" means that all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). "All" means that bar types may vary between bullish / bearish.
FVG Detection Sensitivity -> You can turn this setting on and off. If it's off, any 3 consecutive bullish / bearish bars will be calculated as FVGs. If it's on, the size of FVGs will be filtered by the selected sensitivity. Lower settings mean less but larger FVGs.
2. TP / SL
TP / SL Method -> If "Fixed" is selected, you can adjust the TP / SL ratios from the settings below. If "Dynamic" is selected, the TP / SL zones will be auto-determined by the algorithm.
Risk -> The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails.
Close Position @ Session End -> If this setting is enabled, the current position (if any) will be closed at the beginning of a new session, regardless if it hit the TP / SL zone. If it's off, the position will be open until it hits a TP / SL zone.
