JJ Highlight Time Ranges with First 5 Minutes and LabelsTo effectively use this Pine Script as a day trader , here’s how the various elements can help you manage trades, track time sessions, and monitor price movements:
Key Components for a Day Trader:
1. First 5-Minute Highlight:
- Purpose: Day traders often rely on the first 5 minutes of the trading session to gauge market sentiment, watch for opening price gaps, or plan entries. This script draws a horizontal line at the high or low of the first 5 minutes, which can act as a key level for the rest of the day.
- How to Use: If the price breaks above or below the first 5-minute line, it can signal momentum. You might enter a long position if the price breaks above the first 5-minute high or a short if it breaks below the first 5-minute low.
2. Session Time Highlights:
- Morning Session (9:15–10:30 AM): The market often shows its strongest price action during the first hour of trading. This session is highlighted in yellow. You can use this highlight to focus on the most volatile period, as this is when large institutional moves tend to occur.
- Afternoon Session (12:30–2:55 PM): The blue highlight helps you track the mid-afternoon session, where liquidity may decrease, and price action can sometimes be choppier. Day traders should be more cautious during this period.
- How to Use: By highlighting these key times, you can:
- Focus on key breakouts during the morning session.
- Be more conservative in your trades during the afternoon, as market volatility may drop.
3. Dynamic Labels:
- Top/Bottom Positioning: The script places labels dynamically based on the selected position (Top or Bottom). This allows you to quickly glance at the session's start and identify where you are in terms of time.
- How to Use: Use these labels to remind yourself when major time segments (morning or afternoon) begin. You can adjust your trading strategy depending on the session, e.g., being more aggressive in the morning and more cautious in the afternoon.
Trading Strategy Suggestions:
1. Momentum Trades:
- After the first 5 minutes, use the high/low of that period to set up breakout trades.
- Long Entry: If the price breaks the high of the first 5 minutes (especially if there's a strong trend).
- Short Entry: If the price breaks the low of the first 5 minutes, signaling a potential downtrend.
2. Session-Based Strategy:
- Morning Session (9:15–10:30 AM):
- Look for strong breakout patterns such as support/resistance levels, moving average crossovers, or candlestick patterns (like engulfing candles or pin bars).
- This is a high liquidity period, making it ideal for executing quick trades.
- Afternoon Session (12:30–2:55 PM):
- The market tends to consolidate or show less volatility. Scalping and mean-reversion strategies work better here.
- Avoid chasing big moves unless you see a clear breakout in either direction.
3. Support and Resistance:
- The first 5-minute high/low often acts as a key support or resistance level for the rest of the day. If the price holds above or below this level, it’s an indication of trend continuation.
4. Breakout Confirmation:
- Look for breakouts from the highlighted session time ranges (e.g., 9:15 AM–10:30 AM or 12:30 PM–2:55 PM).
- If a breakout happens during a key time window, combine that with other technical indicators like volume spikes , RSI , or MACD for confirmation.
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Example Day Trader Usage:
1. First 5 Minutes Strategy: After the market opens at 9:15 AM, watch the price action for the first 5 minutes. The high and low of these 5 minutes are critical levels. If the price breaks above the high of the first 5 minutes, it might indicate a strong bullish trend for the day. Conversely, breaking below the low may suggest bearish movement.
2. Morning Session: After the first 5 minutes, focus on the **9:15 AM–10:30 AM** window. During this time, look for breakout setups at key support/resistance levels, especially when paired with high volume or momentum indicators. This is when many institutions make large trades, so price action tends to be more volatile and predictable.
3. Afternoon Session: From 12:30 PM–2:55 PM, the market might experience lower volatility, making it ideal for scalping or range-bound strategies. You could look for reversals or fading strategies if the market becomes too quiet.
Conclusion:
As a day trader, you can use this script to:
- Track and react to key price levels during the first 5 minutes.
- Focus on high volatility in the morning session (9:15–10:30 AM) and **be cautious** during the afternoon.
- Use session-based timing to adjust your strategies based on the time of day.
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3_SMA_Strategy_V-Singhal by ParthibIndicator Name: 3_SMA_Strategy_V-Singhal by Parthib
Description:
The 3_SMA_Strategy_V-Singhal by Parthib is a dynamic trend-following strategy that combines three key simple moving averages (SMA) — SMA 20, SMA 50, and SMA 200 — to generate buy and sell signals. This strategy uses these SMAs to capture and follow market trends, helping traders identify optimal entry (buy) and exit (sell) points. Additionally, the strategy highlights the closing price (CP), which plays a critical role in confirming buy and sell signals.
The strategy also features a Second Buy Signal triggered if the price falls more than 10% after an initial buy signal, providing a re-entry opportunity with a different visual highlight for the second buy signal.
Features:
Three Simple Moving Averages (SMA):
SMA 20: Short-term moving average reflecting immediate market trends.
SMA 50: Medium-term moving average showing the prevailing trend.
SMA 200: Long-term moving average that indicates the overall market trend.
Buy Signal (B1):
Triggered when:
SMA 200 > SMA 50 > SMA 20, indicating a bullish market structure.
The closing price is positioned below all three SMAs, confirming a potential upward reversal.
A green label appears at the low of the bar with the text B1-Price, indicating the price at which the buy signal is generated.
Second Buy Signal (B2):
Triggered if the price falls more than 10% after the first buy signal, providing an opportunity to re-enter the market at a potentially better price.
A blue label appears at the low of the bar with the text B2-Price, showing the price at which the second buy opportunity arises.
Sell Signal (S):
Triggered when:
SMA 20 > SMA 50 > SMA 200, indicating a bearish trend.
The closing price (CP) is positioned above all three SMAs, confirming a potential downward movement.
A red label appears at the high of the bar with the text S-Price, showing the price at which the sell signal is triggered.
How It Works:
Buy Conditions:
SMA 200 > SMA 50 > SMA 20: Indicates a bullish market where the long-term trend (SMA 200) is above the medium-term (SMA 50), and the medium-term trend is above the short-term (SMA 20).
Closing price below all three SMAs: Confirms that the price is in a favorable position for a potential upward reversal.
Sell Conditions:
SMA 20 > SMA 50 > SMA 200: This setup indicates a bearish trend.
Closing price above all three SMAs: Confirms that the price is in a favorable position for a potential downward movement.
Second Buy Signal (B2): If the price falls more than 10% after the first buy signal, the strategy triggers a second buy opportunity (B2) at a potentially better price. This helps traders take advantage of pullbacks or corrections after an initial favorable entry.
Labeling System:
B1-Price: The first buy signal label, appearing when the market is bullish and the closing price is below all three SMAs.
B2-Price: The second buy signal label, triggered if the price falls more than 10% after the initial buy signal.
S-Price: The sell signal label, appearing when the market turns bearish and the closing price is above all three SMAs.
How to Use:
Add the Indicator: Add "3_SMA_Strategy_V-Singhal by Parthib" to your chart on TradingView.
Interpret Buy Signals (B1): Look for green labels with the text "B1-Price" when the closing price (CP) is below all three SMAs and the trend is bullish.
Interpret Second Buy Signals (B2): If the price falls more than 10% after the first buy, look for blue labels with "B2-Price" and a re-entry opportunity.
Interpret Sell Signals (S): Look for red labels with the text "S-Price" when the market turns bearish, and the closing price (CP) is above all three SMAs.
Conclusion:
The 3_SMA_Strategy_V-Singhal by Parthib is an efficient and simple trend-following tool for traders looking to make informed buy and sell decisions. By combining the power of three SMAs and the closing price (CP) confirmation, this strategy helps traders to buy when the market shows a strong bullish setup and sell when the trend turns bearish. Additionally, the second buy signal feature ensures that traders don’t miss out on re-entry opportunities after price corrections, giving them a chance to re-enter the market at a favorable price.
Momentum Zones [TradersPro]OVERVIEW
The Momentum Zones indicator is designed for momentum stock traders to provide a visible trend structure with actionable price levels. The indicator has been designed for high-growth, bullish stocks on a daily time frame but can be used on any chart and timeframe.
Momentum zones help traders focus on the momentum structure of price, enabling disciplined trading plans with specific entry, exit, and risk management levels.
It is built using CCI values, allowing for fixed trend range calculations. It is most effective when applied to screens of stocks with high RSI, year-to-date (YTD) price gains of 25% or higher, as well as stocks showing growth in both sales and earnings quarter-over-quarter and year-over-year.
CONCEPTS
The indicator defines and colors uptrends (green), downtrends (red), and trends in transition or pausing (yellow).
The indicator can be used for new trend entry or trend continuation entry. New trend entry can be done on the first green bar after a red bar. Trend continuation entries can be done with the first green bar after a yellow bar. The yellow transition zones can be used as price buffers for stop-loss management on new entries.
To see the color changes, users need to be sure to uncheck the candlestick color settings. This can be done by right-clicking the chart, going to Symbols, and unchecking the candle color body, border, and wick boxes.
Remember to check them if the indicator is turned off, or the candles will be blank with no color.
The settings also correspond to the screening function to get a list of stocks entering various momentum zones so you can have a prime list of the stocks meeting any other fundamental criteria you may desire. Traders can then use the indicator for the entry and risk structure of the trading plan.
Limit Order + ATR Stop-Loss [TANHEF]This indicator enables interactive placement of limit or stop-limit orders with a trailing ATR stop-loss and optional profit target (with alerts). Refer to the images below for further clarification.
Why use a trailing stop-loss?
A trailing stop-loss serves as an exit strategy when price moves against you, while also allowing you to adjust the exit point further into profit when price moves favorably. The ATR (Average True Range), a reliable measure of volatility, acts as an effective risk management tool, functioning as a trailing stop-loss.
Indicator Explanation
Initial indicator placement: Select Long Limit or Long-Stop Limit order.
Change Entry Type: Switch between Long and Short within settings.
Modify entry price: Drag circle, adjust in settings, or re-add indicator to chart.
Optional Profit Target: Use Risk/Reward ratio or specify price.
Entry anticipation: Estimated ATR stop-loss and profit target as blue circles (fluctuates with volatility changes).
Entry triggered: Actual ATR stop-loss and profit target plotted.
Exit conditions: Stop-loss or profit target hit, exit entry.
Update Frequency: Continuously, Bar Open, or Bar Open on entry then continuously.
ATR Overlap: no entry occurs if the ATR overlaps with price (stop-loss 'hit' already on entry bar)
Table: Displays input settings selected.
Show Only On Ticker: Ability to hide indicator on other tickers.
Long Limit
Long Stop-Limit
Short Limit
Short Stop-Limit
Alerts
1. 'Check' alerts to use within indicator settings (entry, trailing stop hit, profit target hit, and failed entry).
2. Select 'Create Alert'
3. Set the condition to 'Limit Order + ATR Stop-Loss''
4. Select create.
Additional details can be added to the alert message using these words in between Curly (Brace) Brackets:
{{trail}} = ATR trailing stop-loss (price)
{{target}} = Price target (price)
{{type}} = Long or Short stop-loss (word)
{{traildistance}} = Trailing Distance (%)
{{targetdistance}} = Target Distance (%)
{{starttime}} = Start time of position (day:hr:min)
{{maxdrawdown}} = max loss
{{maxprofit}} = max profit
{{update}} = stoploss update frequency
{{entrysource}} = entry as 1st bar source (yes/no)
{{triggerentry}} = Wick/Close Trigger entry input
{{triggerexit}} = Wick/Close Trigger exit input
{{triggertarget}} = Wick/Close Trigger target input
{{atrlength}} = ATR length input
{{atrmultiplier}} = ATR multiplier input
{{atrtype}} = ATR type input
{{ticker}} = Ticker of chart (word)
{{exchange}} = Exchange of chart (word)
{{description}} = Description of ticker (words)
{{close}} = Bar close (price)
{{open}} = Bar open (price)
{{high}} = Bar high (price)
{{low}} = Bar low (price)
{{hl2}} = Bar HL2 (price)
{{volume}} = Bar volume (value)
{{time}} = Current time (day:hr:min)
{{interval}} = Chart timeframe
{{newline}} = New line for text
Adaptive MA Crossover with ATR-Based Risk MarkersDescription:
The Cross MA Entry Indicator with ATR-Based Stop-Loss and Take-Profit Markers is a powerful tool designed to help traders identify trend-following opportunities while managing risk effectively. By combining customizable moving average (MA) crossovers with ATR-based stop-loss (SL) and take-profit (TP) markers, this indicator provides a complete entry and risk management framework in a single script.
Unique Features:
1. Versatile Moving Average Combinations: The indicator allows users to select from four types of moving averages—SMA, EMA, DEMA, and TEMA—for both fast and slow lines, enabling a variety of crossover configurations. This flexibility helps traders tailor entry signals to specific trading strategies, asset types, or market conditions, enhancing the adaptability of the indicator across different styles and preferences.
2. ATR-Based Dynamic Risk Management: Leveraging the Average True Range (ATR), the indicator dynamically calculates stop-loss and take-profit levels based on market volatility. This approach adjusts to changing market conditions, making it more responsive and reliable for setting realistic, volatility-based risk parameters.
3. Customizable Risk/Reward Ratio: Users can define their preferred risk/reward ratio (e.g., 2:1, 3:1) to tailor take-profit levels relative to stop-loss distances. This feature empowers traders to align trades with their individual risk management strategies and objectives, while maintaining consistency and discipline in execution.
4. Streamlined Visualization of Entry and Risk Levels: Upon a crossover, the indicator places discrete markers at the calculated SL and TP levels, avoiding clutter while providing traders with an immediate view of potential risk and reward. Small dots represent SL and TP levels, offering a clean, clear display of critical decision points.
How to Use:
1. Entry Signals from MA Crossovers: This indicator generates entry signals when the selected moving averages cross, with green markers indicating long entries and red markers indicating short entries. The customizable MA selection enables traders to optimize crossover signals for various timeframes and asset classes.
2. Integrated Risk Markers: SL and TP levels are shown as small dots at the crossover point, based on the ATR multiplier and risk/reward ratio settings. These markers allow traders to quickly visualize the defined risk and potential reward for each entry.
This indicator offers a comprehensive solution for trend-following strategies by combining entry signals with adaptive risk management. Suitable for multiple timeframes, it allows for backtesting and adjustments to ATR and risk/reward parameters for improved alignment with individual trading goals. As with all strategies, thorough testing is recommended to ensure compatibility with your trading approach.
Stoch RSI and RSI Buy/Sell Signals with MACD Trend FilterDescription of the Indicator
This Pine Script is designed to provide traders with buy and sell signals based on the combination of Stochastic RSI, RSI, and MACD indicators, enhanced by the confirmation of candle colors. The primary goal is to facilitate informed trading decisions in various market conditions by utilizing different indicators and their interactions. The script allows customization of various parameters, providing flexibility for traders to adapt it to their specific trading styles.
Usefulness
This indicator is not just a mashup of existing indicators; it integrates the functionality of multiple momentum and trend-detection methods into a cohesive trading tool. The combination of Stochastic RSI, RSI, and MACD offers a well-rounded approach to analyzing market conditions, allowing traders to identify entry and exit points effectively. The inclusion of color-coded signals (strong vs. weak) further enhances its utility by providing visual cues about the strength of the signals.
How to Use This Indicator
Input Settings: Adjust the parameters for the Stochastic RSI, RSI, and MACD to fit your trading style. Set the overbought/oversold levels according to your risk tolerance.
Signal Colors:
Strong Buy Signal: Indicated by a green label and confirmed by a green candle (close > open).
Weak Buy Signal: Indicated by a blue label and confirmed by a green candle (close > open).
Strong Sell Signal: Indicated by a red label and confirmed by a red candle (close < open).
Weak Sell Signal: Indicated by an orange label and confirmed by a red candle (close < open).
Example Trading Strategy Using This Indicator
To effectively use this indicator as part of your trading strategy, follow these detailed steps:
Setup:
Timeframe : Select a timeframe that aligns with your trading style (e.g., 15-minute for intraday, 1-hour for swing trading, or daily for longer-term positions).
Indicator Settings : Customize the Stochastic RSI, RSI, and MACD parameters to suit your trading approach. Adjust overbought/oversold levels to match your risk tolerance.
Strategy:
1. Strong Buy Entry Criteria :
Wait for a strong buy signal (green label) when the RSI is at or below the oversold level (e.g., ≤ 35), indicating a deeply oversold market. Confirm that the MACD shows a decreasing trend (bearish momentum weakening) to validate a potential reversal. Ensure the current candle is green (close > open) if candle color confirmation is enabled.
Example Use : On a 1-hour chart, if the RSI drops below 35, MACD shows three consecutive bars of decreasing negative momentum, and a green candle forms, enter a buy position. This setup signals a robust entry with strong momentum backing it.
2. Weak Buy Entry Criteria :
Monitor for weak buy signals (blue label) when RSI is above the oversold level but still below the neutral (e.g., between 36 and 50). This indicates a market recovering from an oversold state but not fully reversing yet. These signals can be used for early entries with additional confirmations, such as support levels or higher timeframe trends.
Example Use : On the same 1-hour chart, if RSI is at 45, the MACD shows momentum stabilizing (not necessarily negative), and a green candle appears, consider a partial or cautious entry. Use this as an early warning for a potential bullish move, especially when higher timeframe indicators align.
3. Strong Sell Entry Criteria :
Look for a strong sell signal (red label) when RSI is at or above the overbought level (e.g., ≥ 65), signaling a strong overbought condition. The MACD should show three consecutive bars of increasing positive momentum to indicate that the bullish trend is weakening. Ensure the current candle is red (close < open) if candle color confirmation is enabled.
Example Use : If RSI reaches 70, MACD shows increasing momentum that starts to level off, and a red candle forms on a 1-hour chart, initiate a short position with a stop loss set above recent resistance. This is a high-confidence signal for potential price reversal or pullback.
4. Weak Sell Entry Criteria :
Use weak sell signals (orange label) when RSI is between the neutral and overbought levels (e.g., between 50 and 64). These can indicate potential short opportunities that might not yet be fully mature but are worth monitoring. Look for other confirmations like resistance levels or trendline touches to strengthen the signal.
Example Use : If RSI reads 60 on a 1-hour chart, and the MACD shows slight positive momentum with signs of slowing down, place a cautious sell position or scale out of existing long positions. This setup allows you to prepare for a possible downtrend.
Trade Management:
Stop Loss : For buy trades, place stop losses below recent swing lows. For sell trades, set stops above recent swing highs to manage risk effectively.
Take Profit : Target nearby resistance or support levels, apply risk-to-reward ratios (e.g., 1:2), or use trailing stops to lock in profits as price moves in your favor.
Confirmation : Align these signals with broader trends on higher timeframes. For example, if you receive a weak buy signal on a 15-minute chart, check the 1-hour or daily chart to ensure the overall trend is not bearish.
Real-World Example: Imagine trading on a 15-minute chart :
For a buy:
A strong buy signal (green) appears when the RSI dips to 32, MACD shows declining bearish momentum, and a green candle forms. Enter a buy position with a stop loss below the most recent support level.
Alternatively, a weak buy signal (blue) appears when RSI is at 47. Use this as a signal to start monitoring the market closely or enter a smaller position if other indicators (like support and volume analysis) align.
For a sell:
A strong sell signal (red) with RSI at 72 and a red candle signals to short with conviction. Place your stop loss just above the last peak.
A weak sell signal (orange) with RSI at 62 might prompt caution but can still be acted on if confirmed by declining volume or touching a resistance level.
These strategies show how to blend both strong and weak signals into your trading for more nuanced decision-making.
Technical Analysis of the Code
1. Stochastic RSI Calculation:
The script calculates the Stochastic RSI (stochRsiK) using the RSI as input and smooths it with a moving average (stochRsiD).
Code Explanation : ta.stoch(rsi, rsi, rsi, stochLength) computes the Stochastic RSI, and ta.sma(stochRsiK, stochSmoothing) applies smoothing.
2. RSI Calculation :
The RSI is computed over a user-defined period and checks for overbought or oversold conditions.
Code Explanation : rsi = ta.rsi(close, rsiLength) calculates RSI values.
3. MACD Trend Filter :
MACD is calculated with fast, slow, and signal lengths, identifying trends via three consecutive bars moving in the same direction.
Code Explanation : = ta.macd(close, macdLengthFast, macdLengthSlow, macdSignalLength) sets MACD values. Conditions like macdLine < macdLine confirm trends.
4. Buy and Sell Conditions :
The script checks Stochastic RSI, RSI, and MACD values to set buy/sell flags. Candle color filters further confirm valid entries.
Code Explanation : buyConditionMet and sellConditionMet logically check all conditions and toggles (enableStochCondition, enableRSICondition, etc.).
5. Signal Flags and Confirmation :
Flags track when conditions are met and ensure signals only appear on appropriate candle colors.
Code Explanation : Conditional blocks (if statements) update buyFlag and sellFlag.
6. Labels and Alerts :
The indicator plots "BUY" or "SELL" labels with the RSI value when signals trigger and sets alerts through alertcondition().
Code Explanation : label.new() displays the signal, color-coded for strength based on RSI.
NOTE : All strategies can be enabled or disabled in the settings, allowing traders to customize the indicator to their preferences and trading styles.
Candle Range Theory | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Candle Range Theory Indicator! This powerful tool offers a strategy built around the Candle Range Theory, which analyzes market movements through the relative size and structure of price candles. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new Candle Range Theory Indicator :
Implementation of the Candle Range Theory
FVG & Order Block Entry Methods
2 Different TP / SL Methods
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The Candle Range Theory (CRT) indicator operates by identifying significant price movements through the relative size and structure of candlesticks. A key part of the strategy is determining large candles based on their range compared to the Average True Range (ATR) in a higher timeframe. Once identified, a breakout of either the high wick or the low wick of the large candle is required. This breakout is considered a liquidity grab. After that, the indicator waits for confirmation through Fair Value Gaps (FVGs) or Order Blocks (OBs). The confirmation structure must be the opposite direction of the breakout, for example if the high wick is broken, a bearish FVG is required for the short entry. After a confirmation signal is received, the indicator will trigger entry points based on your chosen entry method (FVG or OB), and exit points will be calculated using either a dynamic ATR-based TP/SL method or fixed percentages. Alerts for Buy, Sell, Take-Proft, and Stop-Loss are available.
🚩 UNIQUENESS
This indicator stands out because it combines two highly effective entry methods: Fair Value Gaps (FVGs) and Order Blocks (OBs). You can choose between these strategies depending on market conditions. Additionally, the dynamic TP/SL system uses the ticker's volatility to automatically calculate stop-loss and take-profit targets. The backtesting dashboard provides metrics about the performance of the indicator. You can use it to tune the settings for best use in the current tiker. The Candle Range Theory approach offers more flexibility compared to traditional indicators, allowing for better customization and control based on your risk tolerance.
⚙️ SETTINGS
1. General Configuration
Higher Timeframe: Customize the higher timeframe for analysis. Recommended combinations include M15 -> H4, H4 -> Daily, Daily -> Weekly, and Weekly -> Monthly.
HTF Candle Size: Define the size of the higher timeframe candles as Big, Normal, or Small to filter valid setups based on their range relative to ATR.
Entry Mode: Choose between FVGs and Order Blocks for your entry triggers.
Require Retracement: Enable this option if you want a retracement to the FVG or OB for entry confirmation.
Show HTF Candle Lines: Toggle to display the higher timeframe candle lines for better visual clarity.
2. Fair Value Gaps
FVG Sensitivity: You may select between Low, Normal, High or Extreme FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivities resulting in spotting bigger FVGs, and higher sensitivities resulting in spotting all sizes of FVGs.
3. Order Blocks
Swing Length: Swing length is used when finding order block formations. Smaller values will result in finding smaller order blocks.
4. TP / SL
TP / SL Method:
a) Dynamic: The TP / SL zones will be auto-determined by the algorithm based on the Average True Range (ATR) of the current ticker.
b) Fixed : You can adjust the exact TP / SL ratios from the settings below.
Dynamic 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.
Interest Rate Trading (Manually Added Rate Decisions) [TANHEF]Interest Rate Trading: How Interest Rates Can Guide Your Next Move.
How were interest rate decisions added?
All interest rate decision dates were manually retrieved from the 'Record of Policy Actions' and 'Minutes of Actions' on the Federal Reserve's website due to inconsistent dates from other sources. These were manually added as Pine Script currently only identifies rate changes, not pauses.
█ Simple Explanation:
This script is designed for analyzing and backtesting trading strategies based on U.S. interest rate decisions which occur during Federal Open Market Committee (FOMC) meetings, to make trading decisions. No trading strategy is perfect, and it's important to understand that expectations won't always play out. The script leverages historical interest rate changes, including increases, decreases, and pauses, across multiple economic time periods from 1971 to the present. The tool integrates two key data sources for interest rates—USINTR and FEDFUNDS—to support decision-making around rate-based trades. The focus is on identifying opportunities and tracking trades driven by interest rate movements.
█ Interest Rate Decision Sources:
As noted above, each decision date has been manually added from the 'Record of Policy Actions' and 'Minutes of Actions' documents on the Federal Reserve's website. This includes +50 years of more than 600 rate decisions.
█ Interest Rate Data Sources:
USINTR: Reflects broader U.S. interest rate trends, including Treasury yields and various benchmarks. This is the preferred option as it corresponds well to the rate decision dates.
FEDFUNDS: Tracks the Federal Funds Rate, which is a more specific rate targeted by the Federal Reserve. This does not change on the exact same days as the rate decisions that occur at FOMC meetings.
█ Trade Criteria:
A variety of trading conditions are predefined to suit different trading strategies. These conditions include:
Increase/Decrease: Standard rate increases or decreases.
Double/Triple Increase/Decrease: A series of consecutive changes.
Aggressive Increase/Decrease: Rate changes that exceed recent movements.
Pause: Identification of no changes (pauses) between rate decisions, including double or triple pauses.
Complex Patterns: Combinations of pauses, increases, or decreases, such as "Pause after Increase" or "Pause or Increase."
█ Trade Execution and Exit:
The script allows automated trade execution based on selected criteria:
Auto-Entry: Option to enter trades automatically at the first valid period.
Max Trade Duration: Optional exit of trades after a specified number of bars (candles).
Pause Days: Minimum duration (in days) to validate rate pauses as entry conditions. This is especially useful for earlier periods (prior to the 2000s), where rate decisions often seemed random compared to the consistency we see today.
█ Visualization:
Several visual elements enhance the backtesting experience:
Time Period Highlighting: Economic time periods are visually segmented on the chart, each with a unique color. These periods include historical phases such as "Stagflation (1971-1982)" and "Post-Pandemic Recovery (2021-Present)".
Trade and Holding Results: Displays the profit and loss of trades and holding results directly on the chart.
Interest Rate Plot: Plots the interest rate movements on the chart, allowing for real-time tracking of rate changes.
Trade Status: Highlights active long or short positions on the chart.
█ Statistics and Criteria Display:
Stats Table: Summarizes trade results, including wins, losses, and draw percentages for both long and short trades.
Criteria Table: Lists the selected entry and exit criteria for both long and short positions.
█ Economic Time Periods:
The script organizes interest rate decisions into well-defined economic periods, allowing traders to backtest strategies specific to historical contexts like:
(1971-1982) Stagflation
(1983-1990) Reaganomics and Deregulation
(1991-1994) Early 1990s (Recession and Recovery)
(1995-2001) Dot-Com Bubble
(2001-2006) Housing Boom
(2007-2009) Global Financial Crisis
(2009-2015) Great Recession Recovery
(2015-2019) Normalization Period
(2019-2021) COVID-19 Pandemic
(2021-Present) Post-Pandemic Recovery
█ User-Configurable Inputs:
Rate Source Selection: Choose between USINTR or FEDFUNDS as the primary interest rate source.
Trade Criteria Customization: Users can select the criteria for long and short trades, specifying when to enter or exit based on changes in the interest rate.
Time Period: Select the time period that you want to isolate testing a strategy with.
Auto-Entry and Pause Settings: Options to automatically enter trades and specify the number of days to confirm a rate pause.
Max Trade Duration: Limits how long trades can remain open, defined by the number of bars.
█ Trade Logic:
The script manages entries and exits for both long and short trades. It calculates the profit or loss percentage based on the entry and exit prices. The script tracks ongoing trades, dynamically updating the profit or loss as price changes.
█ Examples:
One of the most popular opinions is that when rate starts begin you should sell, then buy back in when rate cuts stop dropping. However, this can be easily proven to be a difficult task. Predicting the end of a rate cut is very difficult to do with the the exception that assumes rates will not fall below 0.25%.
2001-2009
Trade Result: +29.85%
Holding Result: -27.74%
1971-2024
Trade Result: +533%
Holding Result: +5901%
█ Backtest and Real-Time Use:
This backtester is useful for historical analysis and real-time trading. By setting up various entry and exit rules tied to interest rate movements, traders can test and refine strategies based on real historical data and rate decision trends.
This powerful tool allows traders to customize strategies, backtest them through different economic periods, and get visual feedback on their trading performance, helping to make more informed decisions based on interest rate dynamics. The main goal of this indicator is to challenge the belief that future events must mirror the 2001 and 2007 rate cuts. If everyone expects something to happen, it usually doesn’t.
LRS-Strategy: 200-EMA Buffer & Long/Short Signals LRS-Strategy: 200-EMA Buffer & Long/Short Signals
This indicator is designed to help traders implement the Leveraged Return Strategy (LRS) using the 200-day Exponential Moving Average (EMA) as a key trend-following signal. The indicator offers clear long and short signals by analyzing the price movements relative to the 200-day EMA, enhanced by customizable buffer zones for increased precision.
Key Features:
200-Day EMA: The main trend indicator. When the price is above the 200-day EMA, the market is considered in an uptrend, and when it is below, it indicates a downtrend.
Customizable Buffer Zones: Users can define a percentage buffer around the 200-day EMA (default is 3%). The upper and lower buffer zones help filter out noise and prevent premature signals.
Precise Long/Short Signals:
Long Signal: Triggered when the price moves from below the lower buffer zone, crosses the 200-day EMA, and then breaks above the upper buffer zone.
Short Signal: Triggered when the price moves from above the upper buffer zone, crosses the 200-day EMA, and then breaks below the lower buffer zone.
Alternating Signals: Ensures that a new signal (long or short) is only generated after the opposite signal has been triggered, preventing multiple signals of the same type without a reversal.
Clear Visual Aids: The indicator displays the 200-day EMA and buffer zones on the chart, along with buy (long) and sell (short) signals. This makes it easy to track trends and time entries/exits.
How to Use:
Long Entry: Look for the price to move below the lower buffer, cross the 200-day EMA from below, and then break out of the upper buffer to confirm a long signal.
Short Entry: Look for the price to move above the upper buffer, cross below the 200-day EMA, and then break below the lower buffer to confirm a short signal.
This indicator is perfect for traders who prefer a structured, trend-following approach, using clear rules to minimize noise and identify meaningful long or short opportunities.
Quadratic Kernel with Quadratic Divergence [PinescriptLabs]This indicator combines a quadratic kernel regression with adaptive deviation bands to provide a unique view of market trends.
Key Features:
**Customizable Parameters:**
- Regression Period: Adjusts the sensitivity of the central line (default 50).
- Time Deformation: Modifies the weight of recent vs. older data (default 1.0). Increasing the "Time Deformation" makes more recent data more relevant, while decreasing it gives more weight to older data in the regression calculation.
- Confidence Band Width: Controls the width of the bands (default 3.0). Determines how many standard deviations are added to or subtracted from the central line to form the confidence bands. The standard deviations are calculated as the difference between the central line and the closing prices. A higher confidence value will result in wider bands, indicating a broader range of expected price variation, while a lower confidence value will result in narrower bands, indicating a narrower range of expected price variation.
**How to Use the Indicator Based on Price Crossings with the Kernel Divergence Line?**
Short: We need a candle to cross and close below the Kernel Divergence Line (bullish), and at the same time, the quadratic channels must be in a Bearish state for confirmation. Once the entry is executed, our exit will be when the Divergence Line changes its color by at least two confirmation points, or the price crosses above, which nullifies the entry.
Long: We need a candle to cross and close above the Kernel Divergence Line (bearish), and at the same time, the quadratic channels must be in a Bullish state for confirmation. Once the entry is executed, our exit will be when the Divergence Line changes its color by at least two confirmation points, or the price crosses below, which nullifies the entry.
**How to Use the Indicator Based Solely on Kernel Divergence??**
We observe the Kernel Divergence line, which indicates bullish momentum while the price is declining, and we are looking for the Reversal point.
**Confirmation of the Reversal Point:** When the Kernel Divergence changes from bullish (green color) to bearish (red color), we look for the price at its lowest point to be below the first lower Quadratic channel or even outside the Quadratic channel. This signals a potential strong reversal.
How to Use the Indicator Based Solely on Quadratic Channels?
Use only confirmations of changes from Bullish to Bearish or vice versa. It is recommended to have at least three confirmation points in the same direction.
Quadratic Kernel Regression: Provides a smoothed trend line that adapts to market movements.
Adaptive Deviation Bands: Dynamically calculated to show market volatility.
Buy/Sell Signals: Based on the price crossing the central line and the direction of the trend.
Quadratic Kernel Regression calculates a smoothed central line based on recent prices.
The deviation bands automatically adjust according to market volatility.
The trend is determined by comparing the current position of the central line with its previous position.
Buy signals are generated when the price crosses above the central line in an uptrend.
Sell signals are generated when the price crosses below the central line in a downtrend.
Español:
Este indicador combina una regresión de kernel cuadrático con bandas de desviación adaptativas para proporcionar una visión única de la tendencia del mercado.
Características principales:
**Parámetros personalizables:**
- Período de regresión: Ajusta la sensibilidad de la línea central (por defecto 50).
- Deformación del tiempo: Modifica el peso de los datos recientes vs. antiguos (por defecto 1.0). Aumentar la "Deformación del tiempo" hace que los datos más recientes sean más relevantes, mientras que disminuirla da más peso a los datos antiguos en el cálculo de la regresión.
- Ancho de bandas de confianza: Controla la amplitud de las bandas (por defecto 3.0). Determina cuántas desviaciones estándar se añaden o restan a la línea central para formar las bandas de confianza. Las desviaciones estándar se calculan como la diferencia entre la línea central y los precios de cierre. Un valor mayor de confianza resultará en bandas más anchas, indicando un rango más amplio de variación esperada en los precios, mientras que un valor menor de confianza resultará en bandas más estrechas, indicando un rango más estrecho de variación esperada.
* *Cómo usar el Indicador Basados en los Cruces de Precio con la Línea de Divergencia del Kernel?**
Short: Necesitamos que una vela cruce y cierre por debajo de la línea de Divergencia del Kernel (bullish) y al mismo tiempo los Canales cuadráticos deben estar en un momento Bearish para confirmación. Una vez ejecutada la entrada, nuestra salida será cuando la Línea de Divergencia haga su cambio de color al menos dos puntos de confirmación o el precio haga un cruce por arriba, lo que anula la entrada.
Long: Necesitamos que una vela cruce y cierre por Encima de la linea de Divergencia del Kernel( Bearish) y al mismo tiempo los Canales cuadráticos deben estar en un momento Bullish para confirmación, una vez ejecutada la entrada nuestra salida será cuando la Linea de Divergencia haga su cambio de color al menos dos puntos de confirmación o el precio haga un cruce por Debajo lo que anula la entrada:
Como usar el indicador Basado en solo en Divergencia del Kernel? : Observamos la linea de Divergencia del Kernel la cual nos indica un momentum bullish mientras que precio va a la baja y lo que buscamos es el punto de Reversion.
Confirmación de punto de reversion: cuando la Divergencia de Kernel pasa de bullish ( color verde) a bearish ( color rojo) buscamos que el precio en su punto mas bajo este por debajo del primer canal inferior Quadratico o fuera incluso del canal Quadratico lo que nos indica una posible reversion con fuerza.
Como usar el indicador basado solo en Canales Quadraticos?
Utilizar únicamente las confirmaciones de Cambio de Bullish a Bearish o visceversa, se recomienda al menos tres puntos de confirmación en la misma dirección.
Regresión de kernel cuadrático: Ofrece una línea de tendencia suavizada que se adapta a los movimientos del mercado.
Bandas de desviación adaptativas: Calculadas dinámicamente para mostrar la volatilidad del mercado.
Señales de compra/venta: Basadas en el cruce del precio con la línea central y la dirección de la tendencia.
La regresión de kernel cuadrático calcula una línea central suavizada basada en los precios recientes.
Las bandas de desviación se ajustan automáticamente según la volatilidad del mercado.
La tendencia se determina comparando la posición actual de la línea central con su posición anterior.
Las señales de compra se generan cuando el precio cruza por encima de la línea central en una tendencia alcista.
Las señales de venta se generan cuando el precio cruza por debajo de la línea central en una tendencia bajista.
The Magic LineThis script is based on the simple 2 or 3 candle entry model taught by Armando "The Professor".
This strategy will work best on the 1hr timeframe or higher and you can also add a MA on your chart to identify direction of trend and trade with the trend. For example, if price is above the 50 SMA, you can opt to only look for 'buy' signals. If price is below the 50 SMA, you can opt to only look for 'sell' signals.
The default setting is to wait for 3 consecutive candles of either bullish or bearish sentiment before printing a buy or sell signal. This can be changed to any number you would like but typically 3 works best, as long as you're using the 1hr timeframe or higher.
Ex: If there are 3 green (bullish) candles print in a row, a 'sell' signal will print, and the entry line will be one tick below the open of the previous green candle. You can use that line as your entry.
For your stop loss, you can try to use the most recent swing high (for sells) or swing low (for buys). You can also use nearby support/resistance levels, or even the PSAR as another way to determine your stop loss.
If there are more than 3 consecutive candles with the same sentiment, signals will continue to print until the streak ends at which point the counter will restart, and the idea is to take the most recent signal as your entry. Limit/Stop entries work best as you can just let price come down to the signal line that is drawn.
Comment below if you have any questions! Good luck!
RV - Relative Strength Index Buy/SellIntroduction
The RV - RSI B/S V1.2 indicator leverages the RSI to identify overbought and oversold conditions in the market. The RSI line color changes according to bullish, bearish, oversold, and overbought zones, helping users identify direction and avoid false trades. By plotting the RSI along with user-defined moving averages and Bollinger Bands, it offers a multi-faceted approach to analyzing market momentum.
Indicator Overview
The indicator RSI line color changes as per the bullish, bearish, oversold, and overbought zones. This helps users find out the direction and the zones. The oversold and overbought zones are colored to help users avoid false trades.
Trading Strategy
Long Trades (Bullish Setup):
Entry: A long trade is initiated when the RSI crosses from 60 up to 80.
Exit: Long trades are generally exited when the RSI is between 80 and 90.
Condition: No long trades are taken if the RSI exceeds 80.
Short Trades (Bearish Setup):
Entry: A short trade is initiated when the RSI crosses from 40 down to 20.
Exit: Short trades are generally exited when the RSI is between 20 and 10.
Condition: No short trades are taken if the RSI falls below 20.
RSI Color Coding and Interpretation
The RV - RSI B/S V1.2 indicator uses color coding to provide a visual representation of RSI values, making it easier to identify critical levels at a glance:
Green (RSI 60-80): Indicates a bullish zone where long trades can be considered.
Red (RSI > 80): Signals an overbought condition where long trades should be avoided.
Orange (RSI 20-40): Indicates a bearish zone where short trades can be considered.
Pink (RSI < 20): Signals an oversold condition where short trades should be avoided.
RSI Settings and Their Importance
RSI Length: The default length is set to 12, which is the standard period for RSI calculation. This setting can be adjusted to increase or decrease sensitivity.
Source: The source of the data for the RSI calculation is typically the closing price.
MA Type: Various moving averages can be applied to the RSI, including SMA, EMA, SMMA (RMA), WMA, and VWMA. Each type offers different smoothing properties and can be selected based on
trading preferences.
MA Length: The default length is set to 20, aligning with the RSI length for consistency.
Bollinger Bands: When using Bollinger Bands, the standard deviation multiplier is set to 2.0 by default, but it can be adjusted to suit different volatility conditions.
Disclaimer
This indicator provides valuable signals for potential trading opportunities based on RSI levels and moving averages. However, it is crucial to incorporate directional price action analysis to confirm signals and improve trading accuracy. The RV - RSI B/S V1.2 should be used as part of a broader trading strategy, considering other technical and fundamental factors.
ACD Indicator [TradingFinder] M Fisher Pivots Methodology Signal🔵 Introduction
The book "The Logical Trader" begins with a comprehensive review of the ACD Methodology principles, which include identifying specific price points related to the opening range.
This method allows you to set reference points for trading and use points "A" and "C" for trade entry. You will also learn about the "Pivot Range" and how to combine them with the ACD method to maximize position size and minimize risk.
In this indicator, the strategy is implemented to make it easier to use.
🔵 How to Use
The "ACD" strategy can be applied to various markets such as stocks, commodities, or forex, providing buy and sell signals that allow you to set your price targets and stop losses.
This strategy is based on the assumption that the opening range of trades is statistically significant each day, meaning the initial market fluctuations influence the market until the end of the day.
The ACD trading strategy is known as a breakout strategy and performs best in volatile or strongly trending markets, such as crude oil and stocks.
Some of the rules for using the ACD strategy include the following :
Consider points A and C as reference points and continuously pay attention to these points during trades. These points serve as entry and exit points for trades.
Examine daily and multi-day pivot ranges to analyze market trends. If the price is above the pivots, the trend is upward, and if below the pivots, the trend is downward.
Trading with the ACD strategy in forex is possible using the ACD indicator. This indicator is a technical tool used to measure the balance between supply and demand in the market. By analyzing trading volume and price, this indicator helps traders identify trend strength and suitable entry and exit points.
To use the ACD indicator, consider the following :
Identifying strong trends: The ACD indicator can help you identify strong and stable trends in the market.
Determining entry and exit points: ACD provides buy and sell signals to enter or exit trades at the best possible time.
Bullish Setup :
When the "A up" line is broken, it is advisable to wait for some time to ensure that this is not a "Fake Breakout" and that the price stabilizes above this line.
After entering the trade, the best stop loss you can choose is below the "A down" line. However, it is recommended to test this in backtests to achieve the best results. The suitable reward-to-risk ratio for this strategy is 1, which should also be backtested.
Bearish Setup :
When the "A down" line is broken, it is advisable to wait for some time to ensure that this is not a "Fake Breakout" and that the price stabilizes below this line.
After entering the trade, the best stop loss you can choose is above the "A up" line. However, it is recommended to test this in backtests to achieve the best results. The suitable reward-to-risk ratio for this strategy is 1, which should also be backtested.
🔵 Setting
NDay Pivot Range Period : Using this entry you can specify the number of days to calculate NDay Pivot Range.
Show Daily Pivot Range : Set the Daily Pivot color and displayed or not.
Show NDay Pivot Range : Set the NDay Pivot color and displayed or not.
ATR Period Levels : Determining the period of the ATR indicator, which is used to determine the A and C levels.
Show Tokyo ACD Setup : Set the Tokyo ACD Setup color and displayed or not.
Tokyo Opening Range Time : The amount of time taken to determine the opening range. You can set this number between 5 and 60 minutes.
Tokyo Session : Market start and end time.
A Level Multiplier : The coefficient that is multiplied by ATR to determine the distance of line A up and A down.
C Level Multiplier : The coefficient that is multiplied by ATR to determine the distance of line C up and C down.
The same settings exist for the London and New York sessions.
Market Structure RSIDescription:
The Market Structure RSI is an innovative indicator that combines the power of the Relative Strength Index (RSI) with market structure analysis to provide a unique perspective on the market. This indicator helps traders identify potential trend reversals and trading opportunities by analyzing the underlying market structure and generating overbought and oversold signals.
Key Features:
RSI Calculation: The indicator calculates a custom RSI based on the market structure, taking into account the formation of higher highs and lower lows. This unique approach to RSI calculation provides a more accurate representation of the market's strength and weakness.
Overbought and Oversold Levels: Users can customize the overbought and oversold levels according to their preferences. When the Market Structure RSI crosses above the oversold level, it generates a bullish signal, suggesting a potential long entry. Conversely, when the RSI crosses below the overbought level, it generates a bearish signal, indicating a potential short entry.
Moving Average: The indicator includes an optional moving average of the Market Structure RSI, which can be used to smooth out the RSI line and provide additional confirmation of trend reversals. Users can choose between EMA, SMA, and WMA and adjust the length of the moving average.
Customizable Close Type: The indicator allows users to define whether the market structure is deemed broken based on the candle close or the candle high/low. This flexibility enables traders to adapt the indicator to their preferred trading style and market conditions.
Visual Enhancements: The Market Structure RSI features gradient fills between the RSI line and the overbought/oversold levels, providing a clear visual representation of the market's strength. Additionally, the indicator plots bullish and bearish signals as circles on the RSI line, making it easy to identify potential entry points.
How to Use:
Add the Market Structure RSI to your chart and customize the settings according to your preferences, such as the RSI length, overbought and oversold levels, and moving average type and length.
Monitor the Market Structure RSI for crossovers above the oversold level or below the overbought level. A bullish signal occurs when the RSI crosses above the oversold level, while a bearish signal occurs when the RSI crosses below the overbought level.
Use the signals generated by the Market Structure RSI in conjunction with other technical analysis tools and price action patterns to confirm potential trade entries. The indicator works well as a complementary tool to support your existing trading strategy.
Consider the overall trend and market context when interpreting the signals generated by the Market Structure RSI. The indicator is most effective in trending markets and may produce less reliable signals in choppy or ranging market conditions.
Utilize sound risk management principles, such as setting appropriate stop-loss and take-profit levels, when trading based on the Market Structure RSI signals.
The Market Structure RSI offers a fresh perspective on the classic RSI indicator by incorporating market structure analysis. By combining the power of RSI with the identification of higher highs and lower lows, this indicator provides traders with a valuable tool for identifying potential trend reversals and trading opportunities. Whether you are a seasoned trader or just starting out, the Market Structure RSI can be a valuable addition to your technical analysis toolkit.
Pivot Length BandsPivot Length Bands Indicator
Description:
The Pivot Length Bands indicator is designed to visualize price volatility based on pivot points and ATR-adjusted pivot points. I. These bands can help traders identify potential support and resistance levels and assess the current volatility of the market.
Inputs:
Swing Length: The length of the swing used to calculate the pivot points and average true range.
Pivot Length Left Hand Side: The number of candles to the left of the current pivot point to consider when calculating the pivot high and low.
Pivot Length Right Hand Side: The number of candles to the right of the current pivot point to consider when calculating the pivot high and low.
Usage:
Traders can use the bands as potential levels for placing stop-loss orders or profit targets.
The width of the bands adjusts dynamically based on the current volatility of the market.
Note:
This indicator is best used in conjunction with other technical analysis tools and should not be relied upon as a standalone trading signal.
EXAMPLE 1:
Entry:
Exit:
EXAMPLE 2:
Entry:
Exit:
Simple Position SizerSimple Position Sizer is designed to calculate optimal position sizes based on a defined risk percentage and stop-loss level. It offers two modes for determining position size: using the current close price or a specified entry price. The script provides key trade details such as entry price, stop-loss level, quantity to trade, total cost, and risk amount in monetary terms, alongside visual indications of these parameters through colored lines and labels on the chart. Users can customize account size, risk per trade percentage, and entry and stop-loss levels directly within the settings.
Usage Scenario:
A trader looking to enter a position would first decide whether the entry is based on the current closing price or a predetermined level. After setting the stop-loss level and specifying the risk per trade as a percentage of the account size, the script calculates the number of shares or contracts to purchase. It also computes the total cost of the position and displays the potential loss if the stop-loss is triggered, allowing the trader to understand the risk involved before entering the trade.
Visual Indicators:
Green indicators suggest a long setup where the entry level is above the stop-loss, indicating bullish entry.
Red indicators signal a short setup where the entry level is below the stop-loss, reflecting bearish entry
Blue lines represent the entry level when specified by the trader, providing a visual cue for planned entries.
Altered Money Flow Index by CoffeeShopCrypto**Use the comments section below to request access to the script**
Market Trends need to be confirmed each and every time.
Over the years the Money Flow Index has been a tool to find where the money is flowing
either long or short in market movements.
Long confirmation and false short
Confirming a long entry:
1. Wait for price to close above a previous swing high.
2. Look to see if the MFI is in UPCOLOR and above ZERO.
Confriming a short entry:
1. Wait for price to close below a previous swing low.
2. Look to see if the MFI is in DOWNCOLOR and below ZERO.
NON-Confirmed market: (Flat Market)
Anytime you believe you have a confirmation via price action, check the MFI to see if it is in FLAT MARKET color.
If this is true, do not enter until it is out of FLAT MARKET color.
Flat Market ALtered MFI
A Flat Market Altered MFI reading can do a few things for you.
It can help to confirm the following:
1. price action is moving sideways.
2. a pullback or market stall that was deep enough where dis-intrest in the market occured.
3. a sudden loss of momentum in the short term trend of closing prices.
Utilizing the Altered Money Flow Index indicator by CoffeeShopCrypto offers traders a nuanced approach to identifying market trends, including periods of flat market conditions. Alongside its directional bias indicating bullish or bearish activity based on whether values are above or below zero, respectively, the script incorporates a distinctive feature to recognize flat markets. When neither bullish nor bearish momentum dominates, the indicator designates a flat market, denoted by a distinct color. This feature enhances traders' ability to discern not only bullish and bearish phases but also periods of market consolidation or indecision.
In addition to its ability to recognize bullish and bearish trends, the Altered Money Flow Index indicator by CoffeeShopCrypto incorporates a unique feature to signify potential pullbacks or pauses in market momentum. This is particularly evident when the MFI crosses below zero while displaying a flat market color. Such occurrences suggest that although the short-term movement may appear bearish, it's likely a temporary pullback rather than a sustained trend reversal. Similarly, when the MFI crosses above zero amidst a flat market color, it indicates a potential pause in bullish momentum, urging traders to exercise caution and await confirmation of a sustained uptrend. By incorporating these nuanced observations, traders can effectively discern between short-term fluctuations and significant trend changes, enabling them to make more judicious trading decisions and avoid premature entries or exits.
Alongside its directional bias indicating bullish or bearish activity based on whether values are above or below zero, respectively, the script integrates the Relative Strength Index (RSI) to further refine market analysis. When the Altered MFI and RSI are both above zero, it suggests a strong bullish trend, indicating significant buying pressure. Conversely, when both indicators are below zero, it indicates a strong bearish trend, signifying heightened selling pressure. By observing the confluence between the Altered MFI and RSI, traders can gain valuable confirmation of bullish or bearish money flow in the market, enabling them to make more informed trading decisions.
MACD / Connectable [Azullian]Enhance your market insight with the MACD indicator. Monitor momentum to make more informed trading decisions, facilitating the development of stronger strategies.
This connectable MACD indicator is part of an indicator system designed to help test, visualize and build strategy configurations without coding. Like all connectable indicators , it interacts through the TradingView input source, which serves as a signal connector to link indicators to each other. All connectable indicators send signal weight to the next node in the system until it reaches either a connectable signal monitor, signal filter and/or strategy.
█ UNIFORM SETTINGS AND A WAY OF WORK
Although connectable indicators may have specific weight scoring conditions, they all aim to follow a standardized general approach to weight scoring settings, as outlined below.
■ Connectable indicators - Settings
• 🗲 Energy: Energy applies an ATR multiplier to the plotted shapes on the chart. A higher value plots shapes farther away from the candle, enhancing visibility.
• ☼ Brightness: Brightness determines the opacity of the shape plotted on the chart, aiding visibility. Indicator weight also influences opacity.
• → Input: Use the input setting to specify a data source for the indicator. Here you can connect the indicator to other indicators.
• ⌥ Flow: Determine where you want to receive signals from:
○ Both: Weights from this indicator and the connected indicator will apply
○ Indicator only: Only weights from this indicator will apply
○ Input only: Only weights from the connected indicator will apply
• ⥅ Weight multiplier: Multiply all weights in the entire indicator by a given factor, useful for quickly testing different indicators in a granular setup.
• ⥇ Threshold: Set a threshold to indicate the minimum amount of weight it should receive to pass it through to the next indicator.
• ⥱ Limiter: Set a hard limit to the maximum amount of weight that can be fed through the indicator.
■ Connectable indicators - Weight scoring settings
▢ Weight scoring conditions
• SM – Signal mode: Enable specific conditions for weight scoring
○ All: All signals will be scored.
○ Entries only: Only entries will score.
○ Exits only: Only exits will score.
○ Entries & exits: Both entries and exits will score.
○ Zone: Continuous scoring for each candle within the zone.
• SP – Signal period: Defines a range of candles within which a signal can score.
• SC - Signal count: Specifies the number of bars to retrospectively examine and score.
○ Single: Score for a single occurrence
○ All occurrences: Score for all occurrences
○ Single + Threshold: Score for single occurrences within the signal period (SP)
○ Every + Threshold: Score for all occurrences within the signal period (SP)
▢ Weight scoring direction
• ES: Enter Short weight
• XL: Exit long weight
• EL: Enter Long weight
• XS: Exit Short weight
▢ Weight scoring values
• Weights can hold either positive or negative scores. Positive weights enhance a particular trading direction, while negative weights diminish it.
█ MACD - INDICATOR SETTINGS
■ Main settings
• Enable/Disable Indicator: Toggle the entire indicator on or off.
• S - Source: Choose an alternative data source for the MACD calculation.
• T - Timeframe: Select an alternative timeframe for the MACD calculation.
• FL - Fast Length: Define the number of bars or periods used in the MACD calculation for the fast length.
• SL - Fast Length: Define the number of bars or periods used in the MACD calculation for the slow length.
• SM - Smoothing: Smooths the averaged MACD over a specified period.
• C - Condition Define the smoothing amount
○ Above/Below zero: : Trigger when the MACD line is above or below zero
○ All: : Trigger on all conditions
■ MACD Scoring functionality
• The MACD scores long entries when it crosses above its smoothed value and is below the zero line.
• The MACD scores long exits when it crosses below its smoothed value after a long entry.
• The MACD scores long zones the entire time the MACD line is above its smoothed value and below zero.
• The MACD scores short entries when it crosses below its smoothed value and is above the zero line.
• The MACD scores short exits when it crosses above its smoothed value after a short entry.
• The MACD scores short zones the entire time the MACD line is below its smoothed value and above zero.
█ PLOTTING
• Standard: Symbols (EL, XS, ES, XL) appear relative to candles based on set conditions. Their opacity and position vary with weight.
• Conditional Settings: A larger icon appears if global conditions are met. For instance, with a Threshold(⥇) of 12, Signal Period (SP) of 3, and Scoring Condition (SC) set to "EVERY", an MACD signaling over two times in 3 candles (scoring 6 each) triggers a larger icon.
█ USAGE OF CONNECTABLE INDICATORS
■ Connectable chaining mechanism
Connectable indicators can be connected directly to the signal monitor, signal filter or strategy , or they can be daisy chained to each other while the last indicator in the chain connects to the signal monitor, signal filter or strategy. When using a signal filter you can chain the filter to the strategy input to make your chain complete.
• Direct chaining: Connect an indicator directly to the signal monitor, signal filter or strategy through the provided inputs (→).
• Daisy chaining: Connect indicators using the indicator input (→). The first in a daisy chain should have a flow (⌥) set to 'Indicator only'. Subsequent indicators use 'Both' to pass the previous weight. The final indicator connects to the signal monitor, signal filter, or strategy.
■ Set up this indicator with a signal filter and strategy
The indicator provides visual cues based on signal conditions. However, its weight system is best utilized when paired with a connectable signal filter, monitor, or strategy .
Let's connect the MACD to a connectable signal filter and a strategy :
1. Load all relevant indicators
• Load MACD / Connectable
• Load Signal filter / Connectable
• Load Strategy / Connectable
2. Signal Filter: Connect the MACD to the Signal Filter
• Open the signal filter settings
• Choose one of the three input dropdowns (1→, 2→, 3→) and choose : MACD / Connectable: Signal Connector
• Toggle the enable box before the connected input to enable the incoming signal
3. Signal Filter: Update the filter signals settings if needed
• The default settings of the filter enable EL (Enter Long), XL (Exit Long), ES (Enter Short) and XS (Exit Short).
4. Signal Filter: Update the weight threshold settings if needed
• All connectable indicators load by default with a score of 6 for each direction (EL, XL, ES, XS)
• By default, weight threshold (TH) is set at 5. This allows each occurrence to score, as the default score in each connectable indicator is 1 point above the threshold. Adjust to your liking.
5. Strategy: Connect the strategy to the signal filter in the strategy settings
• Select a strategy input → and select the Signal filter: Signal connector
6. Strategy: Enable filter compatible directions
• Set the signal mode of the strategy to a compatible direction with the signal filter.
Now that everything is connected, you'll notice green spikes in the signal filter representing long signals, and red spikes indicating short signals. Trades will also appear on the chart, complemented by a performance overview. Your journey is just beginning: delve into different scoring mechanisms, merge diverse connectable indicators, and craft unique chains. Instantly test your results and discover the potential of your configurations. Dive deep and enjoy the process!
█ BENEFITS
• Adaptable Modular Design: Arrange indicators in diverse structures via direct or daisy chaining, allowing tailored configurations to align with your analysis approach.
• Streamlined Backtesting: Simplify the iterative process of testing and adjusting combinations, facilitating a smoother exploration of potential setups.
• Intuitive Interface: Navigate TradingView with added ease. Integrate desired indicators, adjust settings, and establish alerts without delving into complex code.
• Signal Weight Precision: Leverage granular weight allocation among signals, offering a deeper layer of customization in strategy formulation.
• Advanced Signal Filtering: Define entry and exit conditions with more clarity, granting an added layer of strategy precision.
• Clear Visual Feedback: Distinct visual signals and cues enhance the readability of charts, promoting informed decision-making.
• Standardized Defaults: Indicators are equipped with universally recognized preset settings, ensuring consistency in initial setups across different types like momentum or volatility.
• Reliability: Our indicators are meticulously developed to prevent repainting. We strictly adhere to TradingView's coding conventions, ensuring our code is both performant and clean.
█ COMPATIBLE INDICATORS
Each indicator that incorporates our open-source 'azLibConnector' library and adheres to our conventions can be effortlessly integrated and used as detailed above.
For clarity and recognition within the TradingView platform, we append the suffix ' / Connectable' to every compatible indicator.
█ COMMON MISTAKES, CLARIFICATIONS AND TIPS
• Removing an indicator from a chain: Deleting a linked indicator and confirming the "remove study tree" alert will also remove all underlying indicators in the object tree. Before removing one, disconnect the adjacent indicators and move it to the object stack's bottom.
• Point systems: The azLibConnector provides 500 points for each direction (EL: Enter long, XL: Exit long, ES: Enter short, XS: Exit short) Remember this cap when devising a point structure.
• Flow misconfiguration: In daisy chains the first indicator should always have a flow (⌥) setting of 'indicator only' while other indicator should have a flow (⌥) setting of 'both'.
• Hide attributes: As connectable indicators send through quite some information you'll notice all the arguments are taking up some screenwidth and cause some visual clutter. You can disable arguments in Chart Settings / Status line.
• Layout and abbreviations: To maintain a consistent structure, we use abbreviations for each input. While this may initially seem complex, you'll quickly become familiar with them. Each abbreviation is also explained in the inline tooltips.
• Inputs: Connecting a connectable indicator directly to the strategy delivers the raw signal without a weight threshold, meaning every signal will trigger a trade.
█ A NOTE OF GRATITUDE
Through years of exploring TradingView and Pine Script, we've drawn immense inspiration from the community's knowledge and innovation. Thank you for being a constant source of motivation and insight.
█ RISK DISCLAIMER
Azullian's content, tools, scripts, articles, and educational offerings are presented purely for educational and informational uses. Please be aware that past performance should not be considered a predictor of future results.
Liquidity Sweeps [LuxAlgo]The Liquidity Sweeps indicator detects the presence of liquidity sweeps on the user's chart, while also providing potential areas of support/resistance or entry when Liquidity levels are taken.
In the event of a Liquidity Sweep a Sweep Area is created which may provide further areas of interest.
🔶 USAGE
A Liquidity Sweep occurs when the price breaks through a liquidity level (further referred to as LqL ), after which the price returns below/above the liquidity level , forming a wick.
The script provides 2 options when this can happen:
A wick passes a LqL after which the price quickly returns.
First the closing price breaks through a LqL . After a while, the price retests the LqL and forms a wick in the opposite direction.
The examples above show a bullish and bearish scenario of "a wick passing through an LqL where the price quickly comes back". This type of Liquidity Sweep is represented by a dotted line.
The following example shows a broken LqL , where the price retests the Liquidity zone and bounces back.
Instead of a dotted line, this type of Liquidity Sweep is represented by a dashed line.
When a Liquidity Sweep takes place, this is indicated by highlighting the "wick- LqL " distance. This distance is also the basis for the Sweep Area (see next sub-section). A small 3-bar long dotted line starts from the opposite wick as an extra aid to determine potential support/resistance/entry, ...
Colors can be set in the settings (here yellow and aqua blue instead of default colors for clarity).
🔹 Sweep Areas
The distance between the LqL and the maximum limit of the wick forms a Sweep Area , which can provide a potential support/resistance or entry zone.
These examples show both types of Liquidity Sweeps , followed by a box indicating the Sweep Area .
When the Sweep Area is mitigated or a certain amount of bars has passed (Settings - 'Max bars'), the boxes will no longer be updated.
In this case, the 'Trigger' label shows the bar where the high crossed a LqL , after which a red box starts between LqL and high.
The low of the 'Trigger' bar is the starting point of a short dotted line. Next to the 'Trigger bar' the high touches the Sweep Area before returning, providing a potential short entry. One bar further, another entry opportunity presents itself when the price breaks the small dotted line.
In the following bullish example, not only do we see opportunities when the LqL has been swept, but the following Sweep Area provides some potential entries.
The small green dotted lines also act as a guide where the price breaks above, then forms a small range, after which the price continues in an upward direction.
Here, the initial trigger on the left forms a Sweep Area that is quickly broken. However, the small green line provides a potential entry area later on. The price moves in a short channel before breaking above the LqL (green dashed line), providing more potential entries. Price retests this LqL , and goes below this level. The price remained around the previously formed channel, after which the price resumed its upward trend.
🔶 SETTINGS
🔹 Liquidity Sweeps
Swings: Period used for the swing detection, with higher values returning longer term Liquidity Levels .
Options:
- Only Wicks: Only detects a Liquidity Sweep when a wick sweeps a previous wick
- Only Outbreaks & Retest: Only detects a Liquidity Sweep when the price breaks a Liquidity Level , returns & retests the Liquidity Level , and forms a wick in the opposite direction.
- Wicks + Outbreaks & Retest: Both options can be detected.
🔹 Sweep Area
Extend: Enables/Disables extension of the Sweep Area boxes.
Max Bars: Limit the extension to a certain number of bars.
Color Sweep Area box.
Trading Strategy - Follow The Plan"Trading Strategy - Follow The Plan" is a TradingView indicator specifically crafted for traders dedicated to adhering to a structured approach. It emphasizes the elimination of emotional decision-making by providing clear, actionable steps. This tool allows you to articulate and visually embed your trading strategy directly onto your charts, encompassing your entry plan, exit plan, and any additional notes crucial for maintaining focus and discipline. It's designed to aid in sustaining consistency in your trading executions, ensuring that you remain steadfastly aligned with your predetermined trading methodology.
Features
1. Entry Plan: Allows traders to outline specific criteria for market entry. This could include conditions like divergences on multiple timeframes, specific pattern recognitions, or other entry triggers. The flexibility of this section caters to various trading styles and strategies.
2. Exit Plan: Dedicated to defining exit strategies, this section can include details on profit targets, stop-loss levels, or conditions for position reversal. It serves as a constant reminder of exit strategies during active trades.
3. Notes: A customizable space for traders to jot down essential rules, observations, or reminders. This section is particularly useful for reinforcing risk management practices and maintaining focus on broader trading goals.
4. Visibility Controls: Each section of the trading plan (Entry Plan, Exit Plan, Notes) can be toggled on or off, allowing traders to manage on-screen information and reduce chart clutter.
5. Layout Customization: Users can choose the placement of the trading plan on their chart, with options including Top Right, Top Left, Bottom Right, and Bottom Left. This caters to individual preferences and screen setups.
6. Appearance Customization: The indicator allows for adjustments in text and background colors, and text sizes for titles and content, enhancing readability and personal preference alignment.
Goldmine Wealth Builder - DKK/SKKGoldmine Wealth Builder
Version 1.0
Introduction to Long-Term Investment Strategies: DKK, SKK1 and SKK2
In the dynamic realm of long-term investing, the DKK, SKK1, and SKK2 strategies stand as valuable pillars. These strategies, meticulously designed to assist investors in building robust portfolios, combine the power of Super Trend, RSI (Relative Strength Index), Exponential Moving Averages (EMAs), and their crossovers. By providing clear alerts and buy signals on a daily time frame, they equip users with the tools needed to make well-informed investment decisions and navigate the complexities of the financial markets. These strategies offer a versatile and structured approach to both conservative and aggressive investment, catering to the diverse preferences and objectives of investors.
Each part of this strategy provides a unique perspective and approach to the accumulation of assets, making it a versatile and comprehensive method for investors seeking to optimize their portfolio performance. By diligently applying this multi-faceted approach, investors can make informed decisions and effectively capitalize on potential market opportunities.
DKK Strategy for ETFs and Funds:
The DKK system is a strategy designed for accumulating ETFs and Funds as long-term investments in your portfolio. It simplifies the process of identifying trend reversals and opportune moments to invest in listed ETFs and Funds, particularly during bull markets. Here's a detailed explanation of the DKK system:
Objective: The primary aim of the DKK system is to build a long-term investment portfolio by focusing on ETFs and Funds. It facilitates the identification of stocks that are in the process of reversing their trends, allowing investors to benefit from upward price movements in these financial instruments.
Stock Selection Criteria: The DKK system employs specific criteria for selecting ETFs and Funds:
• 200EMA (Exponential Moving Average): The system monitors whether the prices of ETFs and Funds are consistently below the 200-day Exponential Moving Average. This is considered an indicator of weakness, especially on a daily time frame.
• RSI (Relative Strength Index): The system looks for an RSI value of less than 40. An RSI below 40 is often seen as an indication of a weak or oversold condition in a financial instrument.
Alert Signal: Once the DKK system identifies ETFs and Funds meeting these criteria, it provides an alert signal:
• Red Upside Triangle Sign: This signal is automatically generated on the daily chart of ETFs and Funds. It serves as a clear indicator to investors that it's an opportune time to accumulate these financial instruments for long-term investment.
It's important to note that the DKK system is specifically designed for ETFs and Funds, so it should be applied to these types of investments. Additionally, it's recommended to track index ETFs and specific types of funds, such as REITs (Real Estate Investment Trusts) and INVITs (Infrastructure Investment Trusts), in line with the DKK system's approach. This strategy simplifies the process of identifying investment opportunities within this asset class, particularly during periods of market weakness.
SKK1 Strategy for Conservative Stock Investment:
The SKK 1 system is a stock investment strategy tailored for conservative investors seeking long-term portfolio growth with a focus on stability and prudent decision-making. This strategy is meticulously designed to identify pivotal market trends and stock price movements, allowing investors to make informed choices and capitalize on upward market trends while minimizing risk. Here's a comprehensive overview of the SKK 1 system, emphasizing its suitability for conservative investors:
Objective: The primary objective of the SKK 1 system is to accumulate stocks as long-term investments in your portfolio while prioritizing capital preservation. It offers a disciplined approach to pinpointing potential entry points for stocks, particularly during market corrections and trend reversals, thereby enabling you to actively participate in bullish market phases while adopting a conservative risk management stance.
Stock Selection Criteria: The SKK 1 system employs a stringent set of criteria to select stocks for investment:
• Correction Mode: It identifies stocks that have undergone a correction, signifying a decline in stock prices from their recent highs. This conservative approach emphasizes the importance of seeking stocks with a history of stability.
• 200EMA (Exponential Moving Average): The system diligently analyses daily stock price movements, specifically looking for stocks that have fallen to or below the 200-day Exponential Moving Average. This indicator suggests potential overselling and aligns with a conservative strategy of buying low.
Trend Reversal Confirmation: The SKK 1 system doesn't merely pinpoint stocks in correction mode; it takes an extra step to confirm a trend reversal. It employs the following indicators:
• Short-term Downtrends Reversal: This aspect focuses on identifying the reversal of short-term downtrends in stock prices, observed through the transition of the super trend indicator from the red zone to the green zone. This cautious approach ensures that the trend is genuinely shifting.
• Super Trend Zones: These zones are crucial for assessing whether a stock is in a bullish or bearish trend. The system consistently monitors these zones to confirm a potential trend reversal.
Alert & Buy Signals: When the SKK 1 system identifies stocks that have reached a potential bottom and are on the verge of a trend reversal, it issues vital alert signals, aiding conservative investors in prudent decision-making:
• Orange Upside Triangle Sign: This signal serves as a cautious heads-up, indicating that a stock may be poised for a trend reversal. It advises investors to prepare funds for potential investment without taking undue risks.
• Green Upside Triangle Sign: This is the confirmation of a trend reversal, signifying a robust buy signal. Conservative investors can confidently enter the market at this point, accumulating stocks for a long-term investment, secure in the knowledge that the trend is in their favor.
In summary, the SKK 1 system is a systematic and conservative approach to stock investing. It excels in identifying stocks experiencing corrections and ensures that investors act when there's a strong indication of a trend reversal, all while prioritizing capital preservation and risk management. This strategy empowers conservative investors to navigate the intricacies of the stock market with confidence, providing a calculated and stable path toward long-term portfolio growth.
Note: The SKK1 strategy, known for its conservative approach to stock investment, also provides an option to extend its methodology to ETFs and Funds for those investors who wish to accumulate assets more aggressively. By enabling this feature in the settings, you can harness the SKK1 strategy's careful criteria and signal indicators to accumulate aggressive investments in ETFs and Funds.
This flexible approach acknowledges that even within a conservative strategy, there may be opportunities for more assertive investments in assets like ETFs and Funds. By making use of this option, you can strike a balance between a conservative stance in your stock portfolio while exploring an aggressive approach in other asset classes. It offers the versatility to cater to a variety of investment preferences, ensuring that you can adapt your strategy to suit your financial goals and risk tolerance.
SKK 2 Strategy for Aggressive Stock Investment:
The SKK 2 strategy is designed for those who are determined not to miss significant opportunities within a continuous uptrend and seek a way to enter a trend that doesn't present entry signals through the SKK 1 strategy. While it offers a more aggressive entry approach, it is ideal for individuals willing to take calculated risks to potentially reap substantial long-term rewards. This strategy is particularly suitable for accumulating stocks for aggressive long-term investment. Here's a detailed description of the SKK 2 strategy:
Objective: The primary aim of the SKK 2 strategy is to provide an avenue for investors to identify short-term trend reversals and seize the opportunity to enter stocks during an uptrend, thereby capitalizing on a sustained bull run. It acknowledges that there may not always be clear entry signals through the SKK 1 strategy and offers a more aggressive alternative.
Stock Selection Criteria: The SKK 2 strategy utilizes a specific set of criteria for stock selection:
1. 50EMA (Exponential Moving Average): It targets stocks that are trading below the 50-day Exponential Moving Average. This signals a short-term reversal from the top and indicates that the stock is in a downtrend.
2. RSI (Relative Strength Index): The strategy considers stocks with an RSI of less than 40, which is an indicator of weakness in the stock.
Alert Signals: The SKK 2 strategy provides distinct alert signals that facilitate entry during an aggressive reversal:
• Red Downside Triangle Sign: This signal is triggered when the stock is below the 50EMA and has an RSI of less than 40. It serves as a clear warning of a short-term reversal from the top and a downtrend, displayed on the daily chart.
• Purple Upside Triangle Sign: This sign is generated when a reversal occurs through a bullish candle, and the RSI is greater than 40. It signifies the stock has bottomed out from a short-term downtrend and is now reversing. This purple upside triangle serves as an entry signal on the chart, presenting an attractive opportunity to accumulate stocks during a strong bullish phase, offering a chance to seize a potentially favorable long-term investment.
In essence, the SKK 2 strategy caters to aggressive investors who are willing to take calculated risks to enter stocks during a continuous uptrend. It focuses on identifying short-term reversals and provides well-defined signals for entry. While this strategy is more aggressive in nature, it has the potential to yield substantial rewards for those who are comfortable with a higher level of risk and are looking for opportunities to build a strong long-term portfolio.
Introduction to Strategy Signal Information Chart
This chart provides essential information on strategy signals for DKK, SKK1, and SKK2. By quickly identifying "Buy" and "Alert" signals for each strategy, investors can efficiently gauge market conditions and make informed decisions to optimize their investment portfolios.
In Conclusion
These investment strategies, whether conservative like DKK and SKK1 or more aggressive like SKK2, offer a range of options for investors to navigate the complex world of long-term investments. The combination of Super Trend, RSI, and EMAs with their crossovers provides clear signals on a daily time frame, empowering users to make well-informed decisions and potentially capitalize on market opportunities. Whether you're looking for stability or are ready to embrace more risk, these strategies have something to offer for building and growing your investment portfolio.
Bitcoin to GOLD [presentTrading]**Introduction and How it is Different**
Unlike traditional indicators, the BTGR offers a unique perspective on market sentiment and asset valuation by juxtaposing two seemingly disparate assets: Bitcoin, the digital gold, and Gold, the traditional store of value. This article introduces an advanced version of this ratio, complete with upper and lower bands calculated using standard deviations. These bands add an extra layer of analytical depth, allowing for more nuanced trading strategies.
BTCUSD 12h bigger picture
**Economic Principles**
The BTGR is rooted in the economic principles of asset valuation and market sentiment. Gold has long been considered a safe haven asset, a place where investors park their money during times of economic uncertainty. Bitcoin, on the other hand, is often viewed as a high-risk, high-reward investment. By comparing the two, the BTGR provides insights into the broader market sentiment.
- Risk Appetite: A high BTGR indicates a bullish sentiment towards riskier assets like Bitcoin.
- Market Uncertainty: A low BTGR suggests a bearish sentiment and a flight to the safety of Gold.
- Asset Diversification: The BTGR can be used as a tool for portfolio diversification, helping investors balance risk and reward.
**How to Use It**
Setting Up the Indicator
- Platform: The indicator is designed for use on TradingView.
- Time Frame: A 480-minute time frame is recommended for more accurate signals.
- Parameters: The moving average is set at 200 periods, and the standard deviation is calculated over the same period.
**Trading Signal**
Long Entry: Consider going long when the BTGR crosses above the upper band.
Short Entry: Consider going short when the BTGR crosses below the lower band.
Note: Due to the issue that the number of trading is less than about 100 times, the corresponding strategy is not allowed to publish.
DBMA - Dual Bollinger Moving AverageThe Dual Bollinger moving average (DBMA) consists of a moving average (MA) & two Bollinger Bands (BB), with the color of the bands representing the level of price compression. In its default settings, it is a 20-day simple moving average with 2 upper Bollinger Bands, having the standard deviation (SD) settings of 0.5 & 1, respectively.
How close the price is to the moving average?
For a pullback trader, the entry point should be close to the moving average, preferably with price compression. How close should it be, is where the bands serve as a guide. The low of the pullback candle should be within the bands, that is, at least within the far band (1 SD of the MA), or even better if it's within the near band (0.5 SD). When the price is outside the bands, it should not be considered favourable for a pullback entry.
For how long has the price been closer to the moving average?
John Carter’s TTM Squeeze indicator looked at the relationship between Bollinger Bands and Keltner's Channels to help identify period of volatility contractions. Bollinger Bands being completely enclosed within the Keltner Channels is indicative of a very low volatility. This is a state of volatility contraction known as squeeze. Using different ATR lengths (1.0, 1.5 and 2.0) for Keltner Channels, we can differentiate between levels of squeeze (High, Mid & Low compression, respectively). Greater the compression, higher the potential for explosive moves.
The squeeze portion of the script is based on LazyBear's script ( Squeeze Momentum Indicator )
The High, Mid & Low compression squeezes are depicted via the color of the bands being red, orange, or yellow, respectively. With the low of the pullback candle within the bands, & the squeeze color changing to red, it should be considered favourable for a pullback entry.
Trailing the price with the lower bands
The lower bands can be used for trailing with the moving average. While trailing, once the price closes below the moving average, the trailing stoploss (TSL) is said to be triggered, & the trade is exited. Here we use the bands to give it some cushion. Let the price close below the 1SD band for labelling the TSL as being triggered to exit the trade. If the price closes below the MA but is still within the bands, the signal is to keep holding the trade.
Bracket Trading VisualizerThe Bracket Trading Visualizer highlights locations in the past when a bracket trade would of won.
🔶 Purpose
Show the opportunities a trader had in the past to give a intuitive idea of how to trade the chart.
🔶 How It Works
Red color indicates the location a Short would of won.
Green color indicates the location a Long would of won.
Yellow color indicates the location a Long OR Short would of won.
Empty color indicates the location a Long OR Short would of Lost.
Empty color also indicates undecided, especially on the latest candles as the future has not been drawn yet.
🔶 What Is A Bracket Trade?
A bracket trade is when your take profit and stop loss are automatically set on entry.
Example: Take profit is set to 1%, Stop loss is set to 1%, when entering a trade the take and stop will set above and bellow the entry price by 1% each.
🔶 More Info
The default Take%/Stop% need to be increased for higher time frames as each candle moves larger distances.
The indicator crawls from left to right on each candle to check what part of that candle was a win for longs and shorts.
This Indicator updates past data based on current information, so empty areas are being filled in as new candles are created.
Because of pinescript limitations the script can only see 375 bars into the future. If a trade takes longer then 375 bars to finalize it will be empty color.
🔶 Theme Setup
It wont look as good with basic candles so set candles to "Bars" and color them white.
🔶 Experiments
Set a take profit larger then the stop loss and look at the opportunities, notice how there are Less.
Set a Stop Loss larger then the take profit and look at the opportunities, notice how there are More, including yellow overlaping.
🔶 Settings
Take %: Take Profit percent distance from the entry price
Stop %: Stop Loss percent distance from the entry price
Commission %: Commission is calculated twice for entry and exit. A 0.03% commission will increase take profit by 0.06% and decrease stop loss by 0.06%.
Calculation Bars Back: If you need to see more candles into the past increase this number, its purpose is to speed up calculation time, Higher number is slower. Also if things aren't drawing properly zoom out all the way then zoom back in.
🔶 Community
I hope you guys find this useful, if you have any questions or feature requests leave me a comment! Take care :D
