First Heikin-Ashi Candle Tracker [CHE] First Heikin-Ashi Candle Tracker
"A Heikin-Ashi Candle Rarely Comes Alone"
1. Introduction
Fundamental Observation
- "A Heikin-Ashi Candle Rarely Comes Alone"
- This principle highlights the tendency of Heikin-Ashi candles to appear in sequences, indicating sustained trends rather than isolated movements.
- Recognizing these patterns can significantly enhance trading strategies by identifying stronger and more reliable entry points.
2. Understanding Heikin-Ashi Candles
What Are Heikin-Ashi Candles?
- Heikin-Ashi is a type of candlestick chart used to identify market trends more clearly.
- Calculation Method:
- Ha_Close: (Open + High + Low + Close) / 4
- Ha_Open: (Previous Ha_Open + Previous Ha_Close) / 2
- Ha_High: Maximum of High, Ha_Open, Ha_Close
- Ha_Low: Minimum of Low, Ha_Open, Ha_Close
- Visual Differences:
- Smoother appearance compared to traditional candlesticks.
- Helps in filtering out market noise and highlighting the prevailing trend.
Benefits of Heikin-Ashi Candles
- Trend Clarity: Easier identification of uptrends and downtrends.
- Reduced Noise: Minimizes the impact of insignificant price movements.
- Visual Appeal: Cleaner charts enhance decision-making processes.
3. Introducing the First Heikin-Ashi Candle Tracker [CHE ]
Purpose of the Indicator
- Track First Heikin-Ashi Candles: Identifies the initial appearance of Heikin-Ashi candles across multiple timeframes.
- Enhance Trading Decisions: Provides visual cues for potential long and short entries based on trend confirmations.
Key Features
- Multi-Timeframe Support: Monitor Heikin-Ashi candles across different timeframes (e.g., 240, 60, 30, 15 minutes).
- Customizable Visuals: Adjustable colors and line widths for better chart integration.
- User-Friendly Interface: Easy-to-configure settings tailored to individual trading preferences.
- Max Line Management: Controls the number of displayed lines to maintain chart clarity.
4. How to Use the First Heikin-Ashi Candle Tracker
Step-by-Step Guide
1. Enable Desired Groups:
- Activate up to four groups, each representing a different timeframe.
- Customize each group's settings according to your trading strategy.
2. Configure Timeframes:
- Select timeframes that align with your trading style (e.g., short-term vs. long-term).
3. Set Candle Types to Track:
- Choose to monitor Both, Green (Bullish), or Red (Bearish) Heikin-Ashi candles.
- Focus on specific candle types to streamline entry signals.
4. Customize Visual Indicators:
- Adjust Green Line Color and Red Line Color for clear distinction.
- Modify Line Width to ensure visibility without cluttering the chart.
5. Manage Line Limits:
- Set the Max Number of Lines to prevent overcrowding.
- The indicator will automatically remove the oldest lines when the limit is exceeded.
6. Interpret Signals:
- Green Lines: Indicate potential Long entry points.
- Red Lines: Indicate potential Short entry points.
- Observe the sequence and frequency of candles to assess trend strength.
Practical Example
- Uptrend Identification:
- Consecutive green Heikin-Ashi candles with corresponding green lines signal a strong upward trend.
- Consider entering a Long position when the first green candle appears.
- Downtrend Identification:
- Consecutive red Heikin-Ashi candles with corresponding red lines signal a strong downward trend.
- Consider entering a Short position when the first red candle appears.
5. Benefits and Utility
Enhanced Trend Detection
- Early Signals: Identify the beginning of new trends promptly.
- Confirmation: Multiple timeframes provide robust confirmation of trend direction.
Improved Entry Points
- Precision: Pinpoint optimal moments to enter trades, reducing the risk of false signals.
- Flexibility: Suitable for both Long and Short strategies across various markets.
User-Friendly Operation
- Intuitive Settings: Easily configurable to match individual trading preferences.
- Visual Clarity: Clear lines and color-coding facilitate quick decision-making.
Time Efficiency
- Automated Tracking: Saves time by automatically identifying and marking relevant candles.
- Multi-Timeframe Analysis: Consolidates information from different timeframes into a single view.
6. Why Use the First Heikin-Ashi Candle Tracker ?
Strategic Advantages
- Market Insight: Gain deeper understanding of market dynamics through Heikin-Ashi analysis.
- Risk Management: Improved entry points contribute to better risk-reward ratios.
- Versatility: Applicable to various trading instruments, including stocks, forex, and cryptocurrencies.
Why Heikin-Ashi for Entries?
- Trend Reliability: Heikin-Ashi candles smooth out price data, providing more reliable trend indicators.
- Reduced Whipsaws: Fewer false signals compared to traditional candlestick charts.
- Clarity in Decision-Making: Simplifies the process of identifying and acting on market trends.
Conclusion
- The First Heikin-Ashi Candle Tracker is an essential tool for traders seeking to enhance their trend analysis and improve entry strategies.
- By leveraging the power of Heikin-Ashi candles, this indicator offers a clear, user-friendly approach to identifying profitable trading opportunities.
7. Getting Started
Installation
1. Add the Indicator:
- Open TradingView and navigate to the Pine Script editor.
- Paste the translated Pine Script code for the First Heikin-Ashi Candle Tracker .
- Save and add the indicator to your chart.
2. Configure Settings:
- Enable desired groups and set appropriate timeframes.
- Customize colors and line widths as per your preference.
- Adjust the maximum number of lines to maintain chart clarity.
3. Start Trading:
- Monitor the chart for green and red lines indicating potential Long and Short entries.
- Combine with other analysis tools for enhanced trading decisions.
Support and Resources
- Documentation: Refer to the included comments within the Pine Script for detailed explanations.
- Community Forums: Join TradingView communities for tips and shared experiences.
- Customer Support: Reach out for assistance with installation or configuration issues.
8. Disclaimer
The content provided, including all code and materials, is strictly for educational and informational purposes only. It is not intended as, and should not be interpreted as, financial advice, a recommendation to buy or sell any financial instrument, or an offer of any financial product or service. All strategies, tools, and examples discussed are provided for illustrative purposes to demonstrate coding techniques and the functionality of Pine Script within a trading context.
Any results from strategies or tools provided are hypothetical, and past performance is not indicative of future results. Trading and investing involve high risk, including the potential loss of principal, and may not be suitable for all individuals. Before making any trading decisions, please consult with a qualified financial professional to understand the risks involved.
By using this script, you acknowledge and agree that any trading decisions are made solely at your discretion and risk.
Happy Trading!
Best regards
Chervolino (Volker)
Pesquisar nos scripts por "profitable"
Hawk Algo ProHawk Pro Algo: The Ultimate Smart Money & Trend Detection Tool
Hawk Pro Algo is a powerful trading indicator designed to help traders track institutional money movements, detect trend reversals, and generate precise buy/sell signals. By leveraging advanced algorithms, volume analysis, divergence detection, and dynamic gradient features, Hawk Pro Algo gives you the edge needed to navigate both trending and ranging markets with confidence.
Smart Money Detection
Hawk Pro Algo goes beyond standard indicators by focusing on tracking the movements of smart money (large institutional trades). This feature identifies key moments when significant players are entering or exiting the market, enabling you to align your trades with those of the most influential market participants.
Institutional Buy Signals: These signals occur when strong upward momentum, backed by large institutional buying, is detected. It gives you a clear sign that the market is about to rally.
Institutional Sell Signals: On the flip side, sell signals are generated when institutional selling pressure emerges, allowing you to exit positions before a significant drop.
These signals ensure that you're trading in sync with the smart money, maximizing your opportunities for profitable trades.
Buy & Sell Signals: Multiple Entry/Exit Points
Hawk Pro Algo comes equipped with multiple layers of buy and sell signals, giving traders the flexibility to spot different types of trading opportunities:
1. Diamond Buy & Sell Signals
Buy Diamonds: A green diamond appears when a combination of bullish signals, such as a strong price pattern and institutional buying pressure, align. These are ideal for capturing market upswings after confirmation.
Sell Diamonds: A red diamond is plotted when bearish conditions take over. This is a clear indicator that institutional sellers are driving the market down, signaling an ideal moment to exit.
2. CCI Cross Signals
CCI Buy Signals: Triggered when the Commodity Channel Index (CCI) crosses above a certain threshold, indicating a shift in momentum to the upside. This is visualized with a green cross, signaling a strong entry opportunity.
CCI Sell Signals: Similarly, when the CCI crosses below a threshold, a red cross is plotted, signaling the momentum has shifted downward, and it’s time to consider exiting.
3. Circle Buy & Sell Signals
Buy Circles: A green circle appears when the market is ready to reverse from a downward trend, confirming a strong buying opportunity. This is often combined with oversold conditions in the CCI to further validate the entry.
Sell Circles: A red circle is shown when the market is ready to correct or reverse after an upward movement. It confirms an ideal exit point to lock in profits before the market pulls back.
4. Trigger Signals
Buy Triggers: Trigger signals indicate moments of market manipulation or sudden dips in price, where a reversal could be imminent. These signals suggest that the market could rally after a short-lived price drop.
Sell Triggers: These are moments where downward manipulation is detected, warning traders of a potential sell-off or correction after a price spike.
Gradient CCI Oscillator: Dynamic Trend Strength with Overbought and Oversold Detection
The Gradient CCI Oscillator is one of the most unique aspects of Hawk Pro Algo. It combines momentum detection with visual cues to show trend strength and potential reversal points. The CCI doesn’t just indicate regular overbought and oversold levels—it provides a dynamic gradient transition to help you gauge market momentum.
Overbought and Oversold Glow
Potential Reversals (Glow Signals)
When the market is reaching critical overbought or oversold levels, Hawk Pro Algo uses a pink glow on the CCI to signal potential reversals:
Pink Glow (Overbought): When the CCI turns pink, the market is nearing a potential reversal from overbought conditions. It suggests caution and may be a signal to prepare for a downturn.
Pink Glow (Oversold): Conversely, a pink glow in oversold conditions signals a potential upward reversal, providing an early warning to get ready for a bullish move.
Three CCI Color Logics: Momentum and Reversal Detection
Hawk Pro Algo features a three-step gradient system that helps you visualize trend strength and detect potential reversals. This tricolor CCI logic transitions smoothly between green, white, and red, giving traders a deeper understanding of market dynamics.
#1: Red → White → Green Transition (and vice versa)
Green: Indicates strong bullish momentum. The CCI turns green when the market is in a strong upward trend, especially after recovering from oversold levels.
White: Represents a neutral zone, showing that momentum is fading or in transition. When the CCI is between overbought and oversold levels, the indicator turns white, signaling indecision or a potential upcoming shift in trend.
Red: Indicates strong bearish momentum. The CCI turns red when the market is under selling pressure or in an overbought state, signaling potential weakness.
This color transition allows you to see when momentum is shifting from bullish to bearish (or vice versa) and helps you time your entries and exits with greater precision.
ETHUSDT.P 8H
#2: Flippable Gradient CCI
For added flexibility, Hawk Pro Algo allows you to flip the CCI gradient colors to suit your personal preference:
By default, the gradient transitions from green (bullish) to red (bearish).
By flipping the gradient, you can reverse this visualization, with red indicating bullish momentum and green signaling bearish conditions.
This feature ensures that the CCI display aligns with your individual trading style, providing a clearer picture of market conditions.
#3: Overbought/Oversold Color Logic
When the CCI crosses into overbought or oversold territory, the color transitions to help you stay on top of extreme market conditions:
Darker Red for overbought levels, helping you recognize when the market may be due for a reversal.
Deeper Green for oversold levels, signaling potential buying opportunities as the market reaches exhaustion.
These color shifts ensure that traders are visually alerted to key moments in the market, helping to avoid buying at the top or selling at the bottom.
Trigger Signals: Detecting Market Manipulation
The trigger signals in Hawk Pro Algo are designed to detect potential market manipulation—moments when artificial price moves occur before a larger trend shift. These signals help protect you from false breakouts or breakdowns.
Buy Triggers: These occur when the indicator detects potential upward manipulation, helping you prepare for a rally after a price dip.
Sell Triggers: Conversely, sell triggers indicate potential downward manipulation, alerting you to a possible sell-off after a price spike.
These signals act as early warnings, helping you avoid getting caught in manipulated price action and positioning you for better trade entries.
Divergence Detection: Pinpointing Reversals with real time Confidence
Hawk Pro Algo excels in divergence detection, identifying both regular and hidden divergences. Divergences occur when price action and the oscillator (CCI) are out of sync, signaling potential reversals.
Bullish Divergence: This occurs when the price is making lower lows, but the CCI is making higher lows. It suggests that downward momentum is weakening, and a reversal could be imminent. In this case, wait for the CCI to turn green to confirm that the bullish divergence is playing out before entering a trade.
Bearish Divergence: This happens when the price is making higher highs, but the CCI is making lower highs, signaling that upward momentum is weakening. Wait for the CCI to turn red to confirm that the bearish divergence is unfolding, and then consider entering a short trade.
By waiting for the CCI color to change (green for bullish divergence, red for bearish divergence), you ensure that the divergence is confirmed before taking action, leading to higher-confidence trades.
How It All Works Together
The combination of CCI color transitions, overbought/oversold detection, smart money signals, and trigger manipulations makes Hawk Pro Algo a comprehensive tool for traders of all skill levels:
Trend Strength: The CCI gradient provides instant visual feedback on the strength of the current trend, helping you gauge when to stay in a trade or prepare for a reversal.
Reversal Signals: The color-coded overbought/oversold signals help you spot key moments when the market may reverse, while divergence detection adds another layer of confidence to your entries.
Smart Money Flow: Follow the institutional money with precision buy/sell signals based on volume and trend strength, ensuring that you're aligned with
LIT_Globas_sys - Liquidity Inducement Theorem (SMC, IDM)LIT_GLOBAL_SYS Trading Tool Documentation, is a comprehensive market analysis tool that includes all components needed for trading according to Liquidity Inducement Theorem (LIT). LIT differs from classical trading methods and is considered a highly effective and profitable strategy.
What can LIT_GLOBAL_SYS do?
--- Market Structure
The main feature of Liquidity Inducement Theorem is building the correct structure, specifically construction taking into account inducement (IDM). Thus, a new HH or LL can only form when the price has taken the first correct pullback - inducement (IDM), and after this, we understand the location of BoS (break of structure) and CHoCH (change of character).
LIT_GLOBAL_SYS automatically and perfectly displays the correct structure following all LIT rules. Looking at the indicator, a trader always understands which range the price is currently in and where it's trending at the moment. The indicator also shows dynamic (live) levels, providing a clear understanding of the market structure in real-time.
The indicator settings allow customization of each structural element according to trader preferences. For example, you can change the style, color, and shape of structural objects.
--- Correct Pullbacks and Inside Bars
In Liquidity Inducement Theorem, correct pullbacks are fundamental. The structure, order blocks, liquidity levels, order flow, and single candle order blocks (CSOB) are all built based on pullbacks.
What is a pullback?
- When the next candle updates the low of the previous candle, we can finish drawing an upward pullback
- We can start drawing a downward correct pullback when the next candle updates the low of the previous candle
- The downward movement will continue until the opposite occurs - updating the high of the previous candle
There are complexities in determining pullbacks - these are inside bars. In Liquidity Inducement Theorem, inside bars are completely ignored!
For example, in an upward movement, at some point, candles may stop updating the high and low of the previous candle and remain within the boundaries of the previous candle. Theoretically, there could be any number of such candles from 1 to infinity. In such cases, it's important to wait for the price to exit the mother candle (the candle after which other candles remained within its high and low range).
LIT_GLOBAL_SYS easily handles this and displays both pullbacks and inside bars correctly.
--- Order Blocks and Fair Value Gaps (FVG)
In Liquidity Inducement Theorem, order blocks are defined differently from classical order blocks:
1. The order block must take liquidity from the previous candle
2. The order block must have Fair Value Gaps (FVG) before it
3. Inside bars are completely ignored for both Order Blocks and FVG
4. If an OB fulfills the first condition (taking liquidity from the previous candle) but doesn't have FVG before it, this block is moved forward along the candles until there is an imbalance before it
There are two most important order blocks in LIT strategy:
1. Inducement order block (idm ob) - the first order block after Inducement
2. Extreme order block (Ext ob) - the first order block before CHoCH
LIT_GLOBAL_SYS perfectly displays correct order blocks and Fair Value Gaps following all rules. It offers full customization options:
- Specify the number of displayed OBs
- Disable all order blocks except idm ob and Ext ob
- Change block frame color and style
- Disable or modify text display in blocks
--- Single Candle Order Block (Scob)
Rules for building Scob:
1. The candle takes liquidity from the previous candle and closes within the body of the previous candle
2. The candle following the Scob candle must close its body below the previous candle
3. Scob forms in continuation of the trend movement
4. Scob completely ignores inside bars
LIT_GLOBAL_SYS accurately displays Scob as triangles and fully ignores inside bars both left and right. The menu allows complete customization of display and quantity of displayed Scobs.
--- Liquidity Lines, Order Flow, and Three-Minute Rule
Auxiliary functions include:
- Liquidity Lines -
Each pullback is marked with a line, showing where unclosed liquidity exists. Completed lines can be hidden to help predict price movement and enter trades correctly.
- Order Flow -
The indicator implements order flow by drawing a line when a pullback is broken (closed by body) in the opposite direction until the second touch. If price moves away without a second touch, the line remains, showing unclosed OF and potential price return zones.
- Three-Minute Rule -
Some LIT traders use the three-minute rule: price manipulations in the last and first three minutes of each 15-minute candle are additional entry factors, especially in the last quarter of an hourly candle. LIT_GLOBAL_SYS displays this rule only on the one-minute timeframe with symbols below for M15 and H1.
--- Trading Sessions, PDH/PDL, and EMA
The system includes:
- Trading sessions (Tokyo, Frankfurt, London, New York) with customizable time settings
- Previous Day High and Previous Day Low (pdh/pdl) levels
- Exponential Moving Average (EMA) with adjustable length
- Equilibrium display between current BoS and CHoCH levels
--- Alert System
LIT_GLOBAL_SYS includes all necessary alerts for Liquidity Inducement Theorem:
1. SCOB
2. EMA
3. BoS, ChoCh, Sweep
4. IDM
5. IDM OB and Ext OB
Users can simply check the desired alerts in the menu and activate them to receive notifications when price reaches specified zones.
Supertrend with Extreme SignalsOriginality and Usefulness
The "Supertrend with Extreme Signals" indicator is an innovative tool I've developed to combine the strengths of the Supertrend indicator with the RSI (Relative Strength Index). This combination enhances the accuracy of entry and exit signals, making it more useful for traders looking to gain a comprehensive understanding of market conditions.
Justification for Mashup:
Supertrend: This is a trend-following indicator that identifies the current market trend and potential reversal points by adjusting dynamically based on market volatility.
RSI: A momentum oscillator that measures the speed and change of price movements. It helps pinpoint overbought and oversold conditions, adding an extra layer of confirmation to trend signals.
By merging these two indicators, the script filters out false signals and improves the precision of trade entries and exits. The Supertrend identifies the trend direction, while the RSI confirms the strength and potential reversals within that trend.
Description
Overview
The "Supertrend with Extreme Signals" indicator is a powerful hybrid tool that brings together the trend-following capability of the Supertrend and the momentum analysis of RSI. This integration provides clear buy and sell signals, helping traders make more informed decisions.
What It Does
Trend Identification: Utilizes the Supertrend to determine the prevailing market trend.
Signal Confirmation: Uses RSI to confirm signals by identifying overbought and oversold conditions.
Buy and Sell Signals: Generates buy signals when the price crosses above the Supertrend line and RSI indicates oversold conditions. Generates sell signals when the price crosses below the Supertrend line and RSI indicates overbought conditions.
How It Works
Supertrend Calculation:
Calculates the Average True Range (ATR) to assess market volatility.
Computes upper and lower levels based on the mid-price and ATR.
Determines trend direction by smoothing these levels over a specified period.
Dynamically adjusts the Supertrend value based on market conditions.
RSI Calculation:
Calculates the RSI over a defined period to measure price momentum.
Uses RSI levels to identify overbought (above 70) and oversold (below 30) conditions.
Signal Generation:
Buy Signal: Triggered when the price crosses above the Supertrend line and RSI is below the oversold threshold.
Sell Signal: Triggered when the price crosses below the Supertrend line and RSI is above the overbought threshold.
How to Use It
Trend Following: Use the Supertrend color to identify the current trend (green for uptrend, red for downtrend).
Entry Signals: Look for buy signals (green label) when the price crosses above the Supertrend line and RSI is in the oversold zone.
Exit Signals: Look for sell signals (red label) when the price crosses below the Supertrend line and RSI is in the overbought zone.
Visual Confirmation: The background color changes based on the trend direction, providing a quick visual cue for the current market state.
This script is especially useful for traders who combine trend-following strategies with momentum indicators. It helps filter out false signals and provides a robust framework for identifying profitable trading opportunities.
Concepts Underlying Calculations
ATR (Average True Range): Measures market volatility by calculating the average range of price movements over a specified period.
Supertrend: A trend-following indicator that adjusts dynamically based on market volatility.
RSI (Relative Strength Index): A momentum oscillator that measures the speed and change of price movements, helping to identify overbought and oversold conditions.
By combining these concepts, the "Supertrend with Extreme Signals" indicator offers a balanced approach to trading. It considers both trend direction and market momentum, making it a powerful tool for improving trading performance through informed market analysis.
VATICAN BANK CARTELVATICAN BANK CARTEL - Precision Signal Detection for Buyers.
The VATICAN BANK CARTEL indicator is a highly sophisticated tool designed specifically for buyers, helping them identify key market trends and generate actionable buy signals. Utilizing advanced algorithms, this indicator employs a multi-variable detection mechanism that dynamically adapts to price movements, offering real-time insights to assist in executing profitable buy trades. This indicator is optimized solely for identifying buying opportunities, ensuring that traders are equipped to make well-timed entries and exits, without signals for shorting or selling.
The recommended settings for VATICAN BANK CARTEL indicator is as follows:-
Depth Engine = 20,30,40,50,100.
Deviation Engine = 3,5,7,15,20.
Backstep Engine = 15,17,20,25.
NOTE:- But you can also use this indicator as per your setting, whichever setting gives you best results use that setting.
Key Features:
1.Adaptive Depth, Deviation, and Backstep Inputs:
The core of this indicator is its customizable Depth Engine, Deviation Engine, and Backstep Engine parameters. These inputs allow traders to adjust the sensitivity of the trend detection algorithm based on specific market conditions:
Depth: Defines how deep the indicator scans historical price data for potential trend reversals.
Deviation: Determines the minimum required price fluctuation to confirm a market movement.
Backstep: Sets the retracement level to filter false signals and maintain the accuracy of trend detection.
2. Visual Signal Representation:
The VATICAN BANK CARTEL plots highly visible labels on the chart to mark trend reversals. These labels are customizable in terms of size and transparency, ensuring clarity in various chart environments. Traders can quickly spot buying opportunities with green labels and potential square-off points with red labels, focusing exclusively on buy-side signals.
3.Real-Time Alerts:
The indicator is equipped with real-time alert conditions to notify traders of significant buy or square-off buy signals. These alerts, which are triggered based on the indicator’s internal signal logic, ensure that traders never miss a critical market movement on the buy side.
4.Custom Label Size and Transparency:
To enhance visual flexibility, the indicator allows the user to adjust label size (from small to large) and transparency levels. This feature provides a clean, adaptable view suited for different charting styles and timeframes.
How It Works:
The VATICAN BANK CARTEL analyzes the price action using a sophisticated algorithm that considers historical low and high points, dynamically detecting directional changes. When a change in market direction is detected, the indicator plots a label at the key reversal points, helping traders confirm potential entry points:
- Buy Signal (Green): Indicates potential buying opportunities based on a trend reversal.
- Square-Off Buy Signal (Red): Marks the exit point for open buy positions, allowing traders to take profits or protect capital from potential market reversals.
Note: This indicator is exclusively designed to provide signals for buyers. It does not generate sell or short signals, making it ideal for traders focused solely on identifying optimal buying opportunities in the market.
Customizable Parameters:
- Depth Engine: Fine-tunes the historical data analysis for signal generation.
- Deviation Engine: Adjusts the minimum price change required for detecting trends.
- Backstep Engine: Controls the indicator's sensitivity to retracements, minimizing false signals.
- Labels Transparency: Adjusts the opacity of the labels, ensuring they integrate seamlessly into any chart layout.
- Buy and Sell Colors: Customizable color options for buy and square-off buy labels to match your preferred color scheme.
- Label Size: Select between five different label sizes for optimal chart visibility.
Ideal For:
This indicator is ideal for both beginner and experienced traders looking to enhance their buying strategy with a highly reliable, visual, and alert-driven tool. The VATICAN BANK CARTEL adapts to various timeframes, making it suitable for day traders, swing traders, and long-term investors alike—focused exclusively on buying opportunities.
Benefits and Applications:
1.Intraday Trading: The VATICAN BANK CARTEL indicator is particularly well-suited for intraday trading, as it provides accurate and timely "buy" and "square-off buy" signals based on the current market dynamics.
2.Trend-following Strategies: Traders who employ trend-following strategies can leverage the indicator's ability to identify the overall market direction, allowing them to align their trades with the dominant trend.
3.Swing Trading: The dynamic price tracking and signal generation capabilities of the indicator can be beneficial for swing traders, who aim to capture medium-term price movements.
Security Measures:
1. The code includes a security notice at the beginning, indicating that it is subject to the Mozilla Public License 2.0, which is a reputable open-source license.
2. The code does not appear to contain any obvious security vulnerabilities or malicious content that could compromise user data or accounts.
NOTE:- This indicator is provided under the Mozilla Public License 2.0 and is subject to its terms and conditions.
Disclaimer: The usage of VATICAN BANK CARTEL indicator might or might not contribute to your trading capital(money) profits and losses and the author is not responsible for the same.
IMPORTANT NOTICE:
While the indicator aims to provide reliable "buy" and "square-off buy" signals, it is crucial to understand that the market can be influenced by unpredictable events, such as natural disasters, political unrest, changes in monetary policies, or economic crises. These unforeseen situations may occasionally lead to false signals generated by the VATICAN BANK CARTEL indicator.
Users should exercise caution and diligence when relying on the indicator's signals, as the market's behavior can be unpredictable, and external factors may impact the accuracy of the signals. It is recommended to thoroughly backtest the indicator's performance in various market conditions and to use it as one of the many tools in a comprehensive trading strategy, rather than solely relying on its output.
Ultimately, the success of the VATICAN BANK CARTEL indicator will depend on the user's ability to adapt it to their specific trading style, market conditions, and risk management approach. Continuous monitoring, analysis, and adjustment of the indicator's settings may be necessary to maintain its effectiveness in the ever-evolving financial markets.
DEVELOPER:- yashgode9
PineScript:- version:- 5
This indicator aims to enhance trading decision-making by combining DEPTH, DEVIATION, BACKSTEP with custom signal generation, offering a comprehensive tool for traders seeking clear "buy" and "square-off buy" signals on the TradingView platform.
Triangular Arbitrage [Starbots]Triangular arbitrage in crypto refers to a trading strategy that exploits price discrepancies between three different cryptocurrencies or currency pairs on the same exchange.
The idea is to make a series of trades that ultimately result in a profit without the risk typically involved in trading. It works by taking advantage of the inefficiencies in the pricing of cryptocurrency pairs.
Here’s how it works:
Identify the Discrepancy: A trader finds a pricing mismatch between three cryptocurrencies. For example, they identify that the exchange rates between BTC/ETH, ETH/USDT, and BTC/USDT pairs are not aligned in a way that satisfies arbitrage-free conditions.
Three Trades:
Trade 1: Start with one cryptocurrency, say USDT (Tether).
Trade 2: Use USDT to buy ETH.
Trade 3: Use ETH to buy BTC.
Final Trade: Finally, convert the BTC back into USDT.
Profit: If the exchange rates between these pairs are out of sync, the trader can end up with more USDT (or the initial cryptocurrency) than they started with. This is because the temporary price inefficiency allowed them to buy low and sell high across different pairs.
Example:
Initial position: You have 10,000 USDT.
Step 1: You buy ETH with USDT (at a rate of 1 ETH = 2000 USDT), getting 5 ETH.
Step 2: You buy BTC with ETH (at a rate of 1 BTC = 2.5 ETH), getting 2 BTC.
Step 3: You sell BTC back for USDT (at a rate of 1 BTC = 5200 USDT), getting 10,400 USDT.
This results in a profit of 400 USDT after completing the cycle, assuming no fees or slippage.
Key Points:
Risk-Free (In Theory): In theory, triangular arbitrage is risk-free because you’re taking advantage of price discrepancies and not market trends.
High Speed Required: Since the inefficiencies in the crypto market are usually very short-lived, this strategy often requires bots or automated systems to execute trades quickly.
Fees and Slippage: In reality, exchange fees, trading volume, and slippage (the difference between the expected price and the actual execution price) can eat into profits and should be carefully considered.
Triangular arbitrage opportunities arise in crypto markets due to the high volatility and fragmentation across different trading pairs and exchanges.
________________________________________________________________
Recommended Binance pairs: DOGE/BTC, TRX/BTC, LINK/BTC, RUNE/BTC, FET/BTC, WIF/BTC,.. Make sure they have big daily volume when you swap them.
You typically have 30 seconds to 2 minutes to complete all three orders, but the main challenge is slippage, especially if the trading volume is low.
<>How to use indicator?
For example, open the DOGE/BTC chart on Binance and set the timeframe to 30 seconds or 1 minute.
In the first input, enter DOGE/USDT, the symbol that's on the left of your slash (DOGE/BTC), and in the second, enter BTC/USDT, the symbol that's on the right of your slash (DOGE/BTC).
Next, select the investment and commissions option.
Indicator will automatically calculate the discrepancies between these three different cryptocurrency pairs and show you when it's profitable to trade it on the chart.
Follow the indicator's suggested orders and capitalize on the price discrepancies between the three cryptocurrencies on the same exchange. This is how Triangular Arbitrage work.
Order Book Pressure Index (OBPI)Overview
The Order Book Pressure Index (OBPI) is a custom technical indicator designed to provide traders with a real-time approximation of market pressure by analyzing buying and selling volumes. Unlike traditional indicators that rely heavily on historical price data, the OBPI focuses on current price movements and volume dynamics to offer a more responsive tool for detecting potential market shifts.
Key Features
Approximation of Order Book Pressure : Estimates market pressure by calculating the cumulative delta volume based on price movements and corresponding volumes. False Signal Filtering : Incorporates threshold levels and moving averages to reduce market noise and minimize false trading signals. Multi-Timeframe Analysis : Allows selection of multiple higher timeframes for signal confirmation, enhancing signal reliability. Customizable Parameters : Offers adjustable settings for thresholds, moving average periods, and the number of bars used in calculations.
How It Works
Volume Direction Calculation : Determines the price direction for each bar: Bullish : Closing price > Opening price; volume attributed to buying pressure. Bearish : Closing price < Opening price; volume attributed to selling pressure. Delta Volume Calculation : Computes the difference between buying and selling volumes to obtain the delta volume for each bar. Cumulative Delta Volume : Calculates the cumulative sum of delta volumes over a specified number of bars (user-defined), focusing on recent market activity. Moving Average Application : Applies a moving average to the cumulative delta volume to smooth out short-term fluctuations and highlight underlying trends. Signal Generation with Thresholds : Threshold Levels : User-defined thresholds identify significant changes in market pressure. Buy Signal : Triggered when the cumulative delta volume crosses above the positive threshold and is above its moving average. Sell Signal : Triggered when the cumulative delta volume crosses below the negative threshold and is below its moving average. Multi-Timeframe Filtering : Timeframe Selection : Traders can select multiple higher timeframes (e.g., 15 min, 30 min, 1 hr, 4 hr) via checkboxes. Signal Aggregation : The indicator aggregates signals from the selected timeframes. Final Signal Generation : A buy or sell signal is generated only if it is present on the current timeframe and at least one of the selected higher timeframes.
How to Use
1. Indicator Settings
Max Bars : Sets the maximum number of bars for cumulative delta volume calculation. A smaller number increases responsiveness by focusing on recent activity. Moving Average Period : Adjusts the period for the moving average applied to the cumulative delta volume. A shorter period increases sensitivity; a longer period smooths out noise. Signal Threshold : Defines the minimum delta volume required to generate a signal. Higher thresholds filter out minor fluctuations. Timeframe Selection : Use the checkboxes to select higher timeframes for multi-timeframe analysis. Available timeframes include 15 min, 30 min, 1 hr, and 4 hr.
2. Interpreting the Signals
Buy Signal (Green Triangle Up) : Indicates potential bullish market pressure. Consider entering long positions when the signal appears. Sell Signal (Red Triangle Down) : Indicates potential bearish market pressure. Consider entering short positions or exiting long positions when the signal appears. Signal Confirmation : For higher reliability, ensure that the signal aligns across multiple timeframes. The signal is stronger when confirmed by selected higher timeframes.
3. Trading Strategies
Trend Following : Use the indicator to identify and follow prevailing market trends. Enter trades in the direction of the cumulative delta volume. Reversal Signals : Look for divergences between price movements and the OBPI to anticipate potential market reversals. Risk Management : Always implement appropriate stop-loss and take-profit levels. Combine the OBPI with sound risk management practices.
Best Practices
Combine with Other Indicators : Enhance signal reliability by using the OBPI alongside indicators like RSI, MACD, or support and resistance levels. Adjust Parameters : Test different settings in a demo account to find optimal parameters for your trading style and the specific asset. Market Conditions : Be mindful of market volatility and liquidity, as extreme conditions can affect indicator performance. Backtesting : Conduct thorough backtesting over historical data before applying the indicator to live trading.
Limitations
Approximation : The OBPI provides an approximation of market pressure and does not access actual order book data. Lag in Higher Timeframes : Signals from higher timeframes may lag, affecting the timeliness of combined signals. Complexity : Multi-timeframe features increase complexity and may impact performance on some platforms.
Conclusion
The Order Book Pressure Index (OBPI) offers traders a unique perspective by focusing on current price movements and volume. Its ability to filter false signals and incorporate multi-timeframe analysis makes it a valuable addition to any trading strategy. Remember to use it in conjunction with other analytical methods and always practice prudent risk management.
Disclaimer : Trading involves significant risk. The OBPI indicator is a tool to aid decision-making and does not guarantee profitable trades. Perform your own analysis and consider consulting a financial advisor before making trading decisions.
Precision Cloud by Dr ABIRAM SIVPRASAD
Precision Cloud by Dr. Abhiram Sivprasad"
The " Precision Cloud" script, created by Dr. Abhiram Sivprasad, is a multi-purpose technical analysis tool designed for Forex, Bitcoin, Commodities, Stocks, and Options trading. It focuses on identifying key levels of support and resistance, combined with moving averages (EMAs) and central pivot ranges (CPR), to help traders make informed trading decisions. The script also provides a visual "light system" to highlight potential long or short positions, aiding traders in entering trades with a clear strategy.
Key Features of the Script:
Central Pivot Range (CPR):
The CPR is calculated as the average of the high, low, and close of the price, while the top and bottom pivots are derived from it. These act as dynamic support and resistance zones.
The script can plot daily CPR, support, and resistance levels (S1/R1, S2/R2, S3/R3) as well as optional weekly and monthly pivot points.
The CPR helps identify whether the price is in a bullish, bearish, or neutral zone.
Support and Resistance Levels:
Three daily support (S1, S2, S3) and resistance (R1, R2, R3) levels are plotted based on the CPR.
These levels act as potential reversal or breakout points, allowing traders to make decisions around key price points.
EMA (Exponential Moving Averages):
The script includes two customizable EMAs (default periods of 9 and 21). You can choose the source for these EMAs (open, high, low, or close).
The crossovers between EMA1 and EMA2 help identify potential trend reversals or momentum shifts.
Lagging Span:
The Lagging Span is plotted with a customizable displacement (default 26), which helps identify overall trend direction by comparing past price with the current price.
Light System:
A color-coded table provides a visual representation of market conditions:
Green indicates bullish signals (e.g., price above CPR, EMAs aligning positively).
Red indicates bearish signals (e.g., price below CPR, EMAs aligning negatively).
Yellow indicates neutral conditions, where there is no clear trend direction.
The system includes lights for CPR, EMA, Long Position, and Short Position, helping traders quickly assess whether the market is in a buying or selling opportunity.
Trading Strategies Using the Script
1. Forex Trading:
Trend-Following with EMAs: Use the EMA crossovers to capture trending markets in Forex. A green light for the EMA combined with a price above the daily or weekly pivot levels suggests a buying opportunity. Conversely, if the EMA light turns red and price falls below the CPR levels, look for shorting opportunities.
Reversal Strategy: Watch for price action near the daily S1/R1 levels. If price holds above S1 and the EMA is green, this could signal a reversal from support. The same applies to resistance levels.
2. Bitcoin Trading:
Momentum Breakouts: Bitcoin is known for its sharp moves. The script helps to identify breakouts from the CPR range. If the price breaks above the TC (Top Central Pivot) with bullish EMA alignment (green light), it could signal a strong uptrend.
Lagging Span Confirmation: Use the Lagging Span to confirm the trend direction. For Bitcoin's volatility, when the lagging span shows consistent alignment with the price and CPR, it often indicates continuation of the trend.
3. Commodities Trading:
Support/Resistance Bounce: Commodities such as gold and oil often react well to pivot levels. Look for price bouncing off S1 or R1 for potential entry points. A green CPR light along with price above the pivot range supports a bullish bias.
EMA Pullback Strategy: If price moves in a strong trend and pulls back to one of the EMAs, a green EMA light suggests re-entry on a pullback. If the EMA light is red and price breaks below the BC (Bottom Central Pivot), short positions could be considered.
4. Stocks Trading:
Long Position Strategy: For stocks, use the combination of the long position light turning green (price above TC and EMA alignment) as a signal to buy. This could be especially useful for riding bullish trends in growth stocks or during earnings seasons when volatility is high.
Short Position Strategy: If the short position light turns green, indicating price below BC and EMAs turning bearish, this could be an ideal setup for shorting overvalued stocks or during market corrections.
5. Options Trading:
Directional Bias for Options: The light system is particularly helpful for options traders. A green long position light provides a clear signal to buy call options, while a green short position light supports buying puts.
Pivot Breakout Strategy: Buy options (calls or puts) when the price breaks above resistance or below support, with confirmation from the CPR and EMA lights. This helps capture the sharp moves required for profitable options trades.
Conclusion
The S&R Precision Cloud script is a versatile tool for traders across markets, including Forex, Bitcoin, Commodities, Stocks, and Options. It combines critical technical elements like pivot ranges, support and resistance levels, EMAs, and the Lagging Span to provide a clear picture of market conditions. The intuitive light system helps traders quickly assess whether to take a long or short position, making it an excellent tool for both new and experienced traders.
The S&R Precision Cloud by Dr. Abhiram Sivprasad script is a technical analysis tool designed to assist traders in making informed decisions. However, it should not be interpreted as financial or investment advice. The signals generated by the script are based on historical price data and technical indicators, which are inherently subject to market fluctuations and do not guarantee future performance.
Trading in Forex, Bitcoin, Commodities, Stocks, and Options carries a high level of risk and may not be suitable for all investors. You should be aware of the risks involved and be willing to accept them before engaging in such activities. Always conduct your own research and consult with a licensed financial advisor or professional before making any trading decisions.
The creators of this script are not responsible for any financial losses that may occur from its use. Past performance is not indicative of future results, and the use of this script is at your own risk.
BRT Signals Buy / Sell v2Title: BRT Signals Buy/Sell v2
Description:
The BRT Signals Buy/Sell v2 script is an innovative and original trading indicator designed to generate precise buy and sell signals by uniquely combining several advanced technical analysis tools. This script introduces new methodologies not found in existing public scripts, offering traders enhanced accuracy and customization.
Key Original Features:
Proprietary Mean Reversion Channel (MRC) Oscillator:
Unlike traditional oscillators, our MRC oscillator is developed using a customized SuperSmoother function, transforming the mean reversion concept into a dynamic oscillator ranging from 0 to 100.
This unique approach allows for more responsive detection of overbought and oversold conditions, setting it apart from standard oscillators.
Advanced Moving Average Options with Jurik Moving Average (JMA):
Incorporates the Jurik Moving Average (JMA), an advanced MA that offers low lag and high smoothness, which is rarely included in public scripts due to its complexity.
Provides multiple MA types (EMA, SMA, RMA, VWMA, WMA, Wilders MA, JMA) for unparalleled customization, enabling traders to fine-tune the indicator to their specific strategies.
Enhanced ADX Trend Strength Filter:
Integrates a custom implementation of the Average Directional Index (ADX) with proprietary modifications to measure trend strength more accurately.
Our script's ADX filter reduces lag and improves the detection of strong trends, a feature not commonly available in other indicators.
Dual Signal Sensitivity Filters:
Introduces two types of signal sensitivity filters (Signal Sensitivity Type 1 and Type 2) that can be independently enabled or disabled.
This dual-filter system is a novel feature that allows for refined control over signal generation, enhancing the script's adaptability.
Sophisticated Labeling and Alert System:
Features a customizable labeling system with various styles and sizes, providing clear and immediate visual cues on the chart.
Includes meticulously configured alert conditions that work seamlessly with the script's unique logic, ensuring timely notifications.
How It Works:
Buy Signal:
Generated when the proprietary MRC oscillator value increases compared to its previous value, indicating upward momentum detected by our unique algorithm.
Price is above the selected moving average (if the EMA filter is enabled), confirming a bullish trend with enhanced precision due to the advanced MA options.
ADX conditions are met using our improved calculation method, ensuring signals occur only during strong uptrends.
Sell Signal:
Triggered when the MRC oscillator value decreases compared to its previous value, signaling downward momentum identified by our custom oscillator.
Price is below the selected moving average (if the EMA filter is enabled), confirming a bearish trend with greater accuracy.
ADX conditions are met, indicating strong downtrends, thanks to our proprietary enhancements to the ADX indicator.
Original Concepts and Calculations:
Customized SuperSmoother Filter: Our version of the SuperSmoother filter is tailored to work specifically with the MRC oscillator, providing smoother and more responsive signals than standard implementations.
Proprietary ADX Enhancements: We have modified the traditional ADX formula to better capture trend strength and direction, reducing lag and improving reliability in various market conditions.
Integration of Advanced Indicators: The script uniquely combines advanced indicators like JMA and our custom MRC oscillator, offering functionalities not found in other public scripts.
Usage Instructions:
Parameter Configuration:
Lookback Period: Adjusts the sensitivity of the Mean Reversion Channel to suit different market conditions.
Timeframe Selection: Analyze different timeframes independent of the chart's timeframe for multi-timeframe analysis.
MA Length and Type: Choose from various moving averages, including the advanced JMA, to align with your trading preferences.
Signal Sensitivity Filters: Enable or disable the EMA and ADX filters to refine signal accuracy based on your strategy.
Visual Aids and Alerts:
Customize label styles and sizes for optimal visualization on the chart.
Set up alerts using the built-in alert conditions to receive real-time notifications aligned with the script's unique logic.
Benefits of Originality:
Enhanced Signal Accuracy: The unique combination of advanced indicators and proprietary calculations reduces false signals, improving the quality of trading decisions.
High Adaptability: The script's extensive customization options allow it to be adapted to various assets, timeframes, and trading styles, making it suitable for a wide range of traders.
Unique Analytical Approach: By introducing new methodologies and integrating advanced technical tools in a novel way, this script provides traders with insights not available in other indicators.
Disclaimer:
This indicator is a unique tool developed to assist traders in making informed decisions. It should be used in conjunction with other analysis methods and does not guarantee profitable results. Always practice proper risk management and due diligence.
Demand and Supply Conditions with SignalsIntroduction:
This document outlines a trading strategy that utilizes price action analysis and color signals to make informed trading decisions. The strategy focuses on identifying demand and supply conditions, curve patterns, and generating signals based on historical price data. The colors associated with each condition and signal serve as visual indicators to assist in decision-making.
I. Strategy Overview:
Objective:
The objective of this trading strategy is to identify potential trading opportunities based on price action analysis and color signals.
Key Components:
Demand Condition: A green upward-facing triangle indicates a potential demand condition.
Supply Condition: A red downward-facing triangle indicates a potential supply condition.
Curve Pattern Condition: A blue upward-facing triangle indicates a potential curve pattern condition.
Signal Condition: A yellow upward-facing triangle indicates a potential buy signal.
II. Understanding the Colors:
* Green: Represents the demand condition, which suggests potential buying pressure in the market. A green upward-facing triangle is plotted on the chart when the demand condition is met at a specific candle or bar.
* Red: Represents the supply condition, which suggests potential selling pressure in the market. A red downward-facing triangle is plotted on the chart when the supply condition is met at a specific candle or bar.
* Blue: Represents the curve pattern condition, which suggests the presence of a specific pattern based on price action analysis. A blue upward-facing triangle is plotted on the chart when the curve pattern condition is met at a specific candle or bar.
* Yellow: Represents the signal condition, which is a combination of the demand condition and the curve pattern condition. A yellow upward-facing triangle is plotted on the chart when the signal condition is met at a specific candle or bar, indicating a potential buy signal.
III. Decision-Making Process:
* Demand and Supply Conditions: Identify potential buying opportunities when a green demand condition is present. Consider potential selling opportunities when a red supply condition is present. Use these conditions to assess the overall market sentiment and potential price reversals.
* Curve Patterns: Analyze the presence of blue curve pattern conditions to identify specific price patterns. These patterns can provide additional confirmation for potential trading decisions.
* Signal Condition: Pay attention to the yellow signal condition, which indicates a potential buy signal. Evaluate the overall market context and consider entering a buy position when the signal condition is met.
* Risk Management: Implement proper risk management techniques such as setting stop-loss orders and position sizing to protect against potential losses.
IV. Conclusion:
This trading strategy leverages price action analysis and color signals to identify potential trading opportunities. The colors associated with each condition and signal serve as visual aids to highlight specific points on the chart. It's important to thoroughly backtest and validate the strategy before applying it to real-world trading scenarios. Additionally, always consider market conditions, risk management, and individual trading preferences when making trading decisions.
Disclaimer: Trading involves risks, and this document does not guarantee profitable outcomes. Traders should exercise caution and perform their own due diligence before engaging in any trading activity.
Remember to continually review and adapt your trading strategy based on market conditions and personal experiences to enhance its effectiveness.
Multi-Scale Adaptive MAs (Hurst, CVaR, Fractal) // AlgoFyreThe Multi-Scale Adaptive MAs (Hurst, CVaR, Fractal) indicator adjusts moving averages based on market conditions, using Hurst Exponent for trend persistence, CVaR for extreme risk assessment, and Fractal Dimension for market complexity. It enhances trend detection and risk management across various timeframes.
TABLE OF CONTENTS
🔶 ORIGINALITY 🔸Adaptive Mechanisms
🔸Multi-Faceted Analysis
🔸Versatility Across Timeframes
🔸Multi-Scale Combination
🔶 FUNCTIONALITY 🔸Hurst Exponent (H)
🞘 How it works
🞘 How to calculate
🞘 Code extract
🔸Conditional Value at Risk (CVaR)
🞘 How it works
🞘 How to calculate
🞘 Code extract
🔸Fractal Dimension (FD)
🞘 How it works
🞘 How to calculate
🞘 Code extract
🔶 INSTRUCTIONS 🔸Step-by-Step Guidelines
🞘 Setting Up the Indicator
🞘 Understanding What to Look For on the Chart
🞘 Possible Entry Signals
🞘 Possible Take Profit Strategies
🞘 Possible Stop-Loss Levels
🞘 Additional Tips
🔸Customize settings
🔶 CONCLUSION
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🔶 ORIGINALITY The Multi-Scale Adaptive MAs (Hurst, CVaR, Fractal) indicator stands out due to its unique approach of dynamically adjusting moving averages based on advanced statistical measures, making it highly responsive to varying market conditions. Unlike traditional moving averages that rely on static periods, this indicator adapts in real-time using three distinct adaptive methods: Hurst Exponent, CVaR, and Fractal Dimension.
🔸Adaptive Mechanisms
Traditional MA indicators use fixed lengths, which can lead to lagging signals or over-sensitivity in volatile markets. The Multi-Scale Adaptive MAs employ adaptive methods to adjust the MA length dynamically, providing a more accurate reflection of current market conditions.
🔸Multi-Faceted Analysis
By integrating Hurst Exponent, CVaR, and Fractal Dimension, the indicator offers a comprehensive market analysis. It captures different aspects of market behavior, including trend persistence, risk of extreme movements, and complexity, which are often missed by standard MAs.
🔸Versatility Across Timeframes
The indicator’s ability to switch between different adaptive methods based on market conditions allows traders to analyze short-term, medium-term, and long-term trends with enhanced precision.
🔸Multi-Scale Combination
Utilizing multiple adaptive MAs in combination provides a more nuanced view of the market, allowing traders to see how short, medium, and long-term trends interact. This layered approach helps in identifying the strength and consistency of trends across different scales, offering more reliable signals and aiding in complex decision-making processes. When combined, these MAs can also signal key market shifts when they converge or diverge, offering deeper insights than a single MA could provide.
🔶 FUNCTIONALITY The indicator adjusts moving averages based on a variety of different choosable adaptives. The Hurst Exponent to identify trend persistence or mean reversion, adapting to market conditions for both short-term and long-term trends. Using CVaR, it evaluates the risk of extreme price movements, ensuring the moving average is more conservative during high-risk periods, protecting against potential large losses. By incorporating the Fractal Dimension, the indicator adapts to market complexity, adjusting to varying levels of price roughness and volatility, which allows it to respond more accurately to different market structures and patterns.
Let's dive into the details:
🔸Hurst Exponent (H)
Measures the degree of trend persistence or mean reversion.
By using the Hurst Exponent, the indicator adjusts to capture the strength and duration of trends, helping traders to stay in profitable trades longer and avoid false reversals in ranging markets.
It enhances the detection of trends, making it suitable for both short-term scalping and identifying long-term trends.
🞘 How it works Rescaled Range (R/S) Analysis Calculate the mean of the closing prices over a set window.
Determine the deviation of each price from the mean.
Compute the cumulative sum of these deviations over the window.
Calculate the range (R) of the cumulative deviations (maximum minus minimum).
Compute the standard deviation (S) of the price series over the window.
Obtain the R/S ratio as R/S.
Linear Regression for Hurst Exponent Calculate the logarithm of multiple window sizes and their corresponding R/S values.
Use linear regression to determine the slope of the line fitting the log(R/S) against log(window size).
The slope of this line is an estimate of the Hurst Exponent.
🞘 How to calculate Range (R)
Calculate the maximum cumulative deviation:
R=max(sum(deviation))−min(sum(deviation))
Where deviation is the difference between each price and the mean.
Standard Deviation (S)
Calculate the standard deviation of the price series:
S=sqrt((1/(n−1))∗sum((Xi−mean)2))
Rescaled Range (R/S)
Divide the range by the standard deviation:
R/S=R/S
Hurst Exponent
Perform linear regression to estimate the slope of:
log(R/S) versus log(windowsize)
The slope of this line is the Hurst Exponent.
🞘 Code extract // Hurst Exponent
calc_hurst(source_, adaptive_window_) =>
window_sizes = array.from(adaptive_window_/10, adaptive_window_/5, adaptive_window_/2, adaptive_window_)
float hurst_exp = 0.5
// Calculate Hurst Exponent proxy
rs_list = array.new_float()
log_length_list = array.new_float()
for i = 0 to array.size(window_sizes) - 1
len = array.get(window_sizes, i)
// Ensure we have enough data
if bar_index >= len * 2
mean = adaptive_sma(source_, len)
dev = source_ - mean
// Calculate cumulative deviations over the window
cum_dev = ta.cum(dev) - ta.cum(dev )
r = ta.highest(cum_dev, len) - ta.lowest(cum_dev, len)
s = ta.stdev(source_, len)
if s != 0
rs = r / s
array.push(rs_list, math.log(rs))
array.push(log_length_list, math.log(len))
// Linear regression to estimate Hurst Exponent
n = array.size(log_length_list)
if n > 1
mean_x = array.sum(log_length_list) / n
mean_y = array.sum(rs_list) / n
sum_num = 0.0
sum_den = 0.0
for i = 0 to n - 1
x = array.get(log_length_list, i)
y = array.get(rs_list, i)
sum_num += (x - mean_x) * (y - mean_y)
sum_den += (x - mean_x) * (x - mean_x)
hurst_exp := sum_den != 0 ? sum_num / sum_den : 0.5
else
hurst_exp := 0.5 // Default to 0.5 if not enough data
hurst_exp
🔸Conditional Value at Risk (CVaR)
Assesses the risk of extreme losses by focusing on tail risk.
This method adjusts the moving average to account for market conditions where extreme price movements are likely, providing a more conservative approach during periods of high risk.
Traders benefit by better managing risk and avoiding major losses during volatile market conditions.
🞘 How it works Calculate Returns Determine the returns as the percentage change between consecutive closing prices over a specified window.
Percentile Calculation Identify the percentile threshold (e.g., the 5th percentile) for the worst returns in the dataset.
Average of Extreme Losses Calculate the average of all returns that are less than or equal to this percentile, representing the CVaR.
🞘 How to calculate Return Calculation
Calculate the return as the percentage change between consecutive prices:
Return = (Pt − Pt−1) / Pt−1
Where Pt is the price at time t.
Percentile Threshold
Identify the return value at the specified percentile (e.g., 5th percentile):
PercentileValue=percentile(returns,percentile_threshold)
CVaR Calculation
Compute the average of all returns below the percentile threshold:
CVaR = (1/n)∗sum(Return) for all Return≤PercentileValue
Where n is the total number of returns.
🞘 Code extract // Percentile
calc_percentile(data, percentile, window) =>
arr = array.new_float(0)
for i = 0 to window - 1
array.push(arr, data )
array.sort(arr)
index = math.floor(percentile / 100 * (window - 1))
array.get(arr, index)
// Conditional Value at Risk
calc_cvar(percentile_value, returns, window) =>
// Collect returns worse than the threshold
cvar_sum = 0.0
cvar_count = 0
for i = 0 to window - 1
ret = returns
if ret <= percentile_value
cvar_sum += ret
cvar_count += 1
// Calculate CVaR
cvar = cvar_count > 0 ? cvar_sum / cvar_count : 0.0
cvar
🔸Fractal Dimension (FD)
Evaluates market complexity and roughness by analyzing how price movements behave across different scales.
It enables the moving average to adapt based on the level of market noise or structure, allowing for smoother MAs during complex, volatile periods and more sensitive MAs during clear trends.
This adaptability is crucial for traders dealing with varying market states, improving the indicator's responsiveness to price changes.
🞘 How it works Total Distance (L) Calculation Sum the absolute price movements between consecutive periods over a given window.
Maximum Distance (D) Calculation Calculate the maximum displacement from the first to the last price point within the window.
Calculate Fractal Dimension Use Katz's method to estimate the Fractal Dimension as the ratio of the logarithms of L and D, divided by the logarithm of the number of steps (N).
🞘 How to calculate Total Distance (L)
Sum the absolute price changes over the window:
L=sum(abs(Pt−Pt−1)) for t from 2 to n
Where Pt is the price at time t.
Maximum Distance (D)
Find the maximum absolute displacement from the first to the last price in the window:
D=max(abs(Pn-P1))
Fractal Dimension Calculation
Use Katz's method to estimate fractal dimension:
FD=log(L/D)/log(N)
Where N is the number of steps in the window.
🞘 Code extract // Fractal Dimension
calc_fractal(source_, adaptive_window_) =>
// Calculate the total distance (L) traveled by the price
L = 0.0
for i = 1 to adaptive_window_
L += math.abs(source_ - source_ )
// Calculate the maximum distance between first and last price
D = math.max(math.abs(source_ - source_ ), 1e-10) // Avoid division by zero
// Calculate the number of steps (N)
N = adaptive_window_
// Estimate the Fractal Dimension using Katz's formula
math.log(L / D) / math.log(N)
🔶 INSTRUCTIONS The Multi-Scale Adaptive MAs indicator can be set up by adding it to your TradingView chart and configuring the adaptive method (Hurst, CVaR, or Fractal) to match current market conditions. Look for price crossovers and changes in the slope for potential entry signals. Set take profit and stop-loss levels based on dynamic changes in the moving average, and consider combining it with other indicators for confirmation. Adjust settings and use adaptive strategies for enhanced trend detection and risk management.
🔸Step-by-Step Guidelines 🞘 Setting Up the Indicator Adding the Indicator to the Chart: Go to your TradingView chart.
Click on the "Indicators" button at the top.
Search for "Multi-Scale Adaptive MAs (Hurst, CVaR, Fractal)" in the indicators list.
Click on the indicator to add it to your chart.
Configuring the Indicator: Open the indicator settings by clicking on the gear icon next to its name on the chart.
Adaptive Method: Choose between "Hurst," "CVaR," and "Fractal" depending on the market condition and your trading style.
Length: Set the base length for the moving average (e.g., 20, 50, or 100). This length will be adjusted dynamically based on the selected adaptive method.
Other Parameters: Adjust any other parameters as needed, such as window sizes or scaling factors specific to each adaptive method.
Chart Setup: Ensure you have an appropriate timeframe selected (e.g., 1-hour, 4-hour, daily) based on your trading strategy.
Consider using additional indicators like volume or RSI to confirm signals.
🞘 Understanding What to Look For on the Chart Indicator Behavior: Observe how the adaptive moving average (AMA) behaves compared to standard moving averages, e.g. notice how it might change direction with strength (Hurst).
For example, the AMA may become smoother during high market volatility (CVaR) or more responsive during strong trends (Hurst).
Crossovers: Look for crossovers between the price and the adaptive moving average.
A bullish crossover occurs when the price crosses above the AMA, suggesting a potential uptrend.
A bearish crossover occurs when the price crosses below the AMA, indicating a possible downtrend.
Slope and Direction: Pay attention to the slope of the AMA. A rising slope suggests a bullish trend, while a declining slope indicates a bearish trend.
The slope’s steepness can give you clues about the trend's strength.
🞘 Possible Entry Signals Bullish Entry: Crossover Entry: Enter a long position when the price crosses above the AMA and the AMA has a positive slope.
Confirmation Entry: Combine the crossover with other indicators like RSI (above 50) or increasing volume for confirmation.
Bearish Entry: Crossover Entry: Enter a short position when the price crosses below the AMA and the AMA has a negative slope.
Confirmation Entry: Use additional indicators like RSI (below 50) or decreasing volume to confirm the bearish trend.
Adaptive Method Confirmation: Hurst: Enter when the AMA indicates a strong trend (steeper slope). Suitable for trend-following strategies.
CVaR: Be cautious during high-risk periods. Enter only if confirmed by other indicators, as the AMA may become more conservative.
Fractal: Ideal for capturing reversals in complex markets. Look for crossovers in volatile markets.
🞘 Possible Take Profit Strategies Static Take Profit Levels: Set take profit levels based on predefined ratios (e.g., 1:2 or 1:3 risk-reward ratio).
Place take profit orders at recent swing highs (for long positions) or swing lows (for short positions).
Trailing Stop Loss: Use a trailing stop based on a percentage of the AMA value to lock in profits as the trend progresses.
Adjust the trailing stop dynamically to follow the AMA, allowing profits to run while protecting gains.
Adaptive Method Based Exits: Hurst: Exit when the AMA begins to flatten or turn in the opposite direction, signaling a potential trend reversal.
CVaR: Consider taking profits earlier during high-risk periods when the AMA suggests caution.
Fractal: Use the AMA to exit in complex markets when it smooths out, indicating reduced volatility.
🞘 Possible Stop-Loss Levels Initial Stop Loss: Place an initial stop loss below the AMA (for long positions) or above the AMA (for short positions) to protect against adverse movements.
Use a buffer (e.g., ATR value) to avoid being stopped out by normal price fluctuations.
Adaptive Stop Loss: Adjust the stop loss dynamically based on the AMA. Move the stop loss along the AMA as the trend progresses to minimize risk.
This helps in adapting to changing market conditions and avoiding premature exits.
Adaptive Method-Specific Stop Loss: Hurst: Use wider stops during trending markets to allow for minor pullbacks.
CVaR: Adjust stops in high-risk periods to avoid being stopped out prematurely during price fluctuations.
Fractal: Place stops at recent support/resistance levels in highly volatile markets.
🞘 Additional Tips Combine with Other Indicators: Enhance your strategy by combining the AMA with other technical indicators like MACD, RSI, or Bollinger Bands for better signal confirmation.
Backtesting and Practice: Backtest the indicator on historical data to understand how it performs in different market conditions.
Practice using the indicator on a demo account before applying it to live trading.
Market Awareness: Always be aware of market conditions and fundamental events that might impact price movements, as the AMA reacts to price action and may not account for sudden news-driven events.
🔸Customize settings 🞘 Time Override: Enables or disables the ability to override the default time frame for the moving averages. When enabled, you can specify a custom time frame for the calculations.
🞘 Time: Specifies the custom time frame to use when the Time Override setting is enabled.
🞘 Enable MA: Enables or disables the moving average. When disabled, MA will not be displayed on the chart.
🞘 Show Smoothing Line: Enables or disables the display of a smoothing line for the moving average. The smoothing line helps to reduce noise and provide a clearer trend.
🞘 Show as Horizontal Line: Displays the moving average as a horizontal line instead of a dynamic line that follows the price.
🞘 Source: Specifies the data source for the moving average calculation (e.g., close, open, high, low).
🞘 Length: Sets the period length for the moving average. A longer length will result in a smoother moving average, while a shorter length will make it more responsive to price changes.
🞘 Time: Specifies a custom time frame for the moving average, overriding the default time frame if Time Override is enabled.
🞘 Method: Selects the calculation method for the moving average (e.g., SMA, EMA, SMMA, WMA, VWMA).
🞘 Offset: Shifts the moving average forward or backward by the specified number of bars.
🞘 Color: Sets the color for the moving average line.
🞘 Adaptive Method: Selects the adaptive method to dynamically adjust the moving average based on market conditions (e.g., Hurst, CVaR, Fractal).
🞘 Window Size: Sets the window size for the adaptive method, determining how much historical data is used for the calculation.
🞘 CVaR Scaling Factor: Adjusts the influence of CVaR on the moving average length, controlling how much the length changes based on calculated risk.
🞘 CVaR Risk: Specifies the percentile cutoff for the worst-case returns used in the CVaR calculation to assess extreme losses.
🞘 Smoothing Method: Selects the method for smoothing the moving average (e.g., SMA, EMA, SMMA, WMA, VWMA).
🞘 Smoothing Length: Sets the period length for smoothing the moving average.
🞘 Fill Color to Smoothing Moving Average: Enables or disables the color fill between the moving average and its smoothing line.
🞘 Transparency: Sets the transparency level for the color fill between the moving average and its smoothing line.
🞘 Show Label: Enables or disables the display of a label for the moving average on the chart.
🞘 Show Label for Smoothing: Enables or disables the display of a label for the smoothing line of the moving average on the chart.
🔶 CONCLUSION The Multi-Scale Adaptive MAs indicator offers a sophisticated approach to trend analysis and risk management by dynamically adjusting moving averages based on Hurst Exponent, CVaR, and Fractal Dimension. This adaptability allows traders to respond more effectively to varying market conditions, capturing trends and managing risks with greater precision. By incorporating advanced statistical measures, the indicator goes beyond traditional moving averages, providing a nuanced and versatile tool for both short-term and long-term trading strategies. Its unique ability to reflect market complexity and extreme risks makes it an invaluable asset for traders seeking a deeper understanding of market dynamics.
Weighted Vstop | viResearchWeighted Vstop | viResearch
Conceptual Foundation and Innovation
The "Weighted Vstop" indicator from viResearch is a volatility-based stop-loss system that enhances the accuracy of trend-following strategies by incorporating weighted price calculations. The innovation lies in its use of a weighted closing price, combined with the Average True Range (ATR) to account for volatility. By emphasizing recent data through a weighted price, the indicator becomes more responsive to market changes, providing a dynamic tool for setting stop-losses and identifying potential trend shifts.
This weighted approach helps traders manage risk more effectively, reducing the likelihood of false signals caused by sudden market fluctuations, making it ideal for traders seeking to stay aligned with market trends.
Technical Composition and Calculation
The "Weighted Vstop" script starts by calculating a weighted closing price, assigning 90% weight to the current close and 10% weight to the previous close. This produces a smoother price series, minimizing noise. The core component, the volatility stop (Vstop), is calculated using the ATR and a user-defined multiplier. The ATR measures market volatility over a specified length, while the multiplier adjusts the Vstop's sensitivity to these changes in volatility.
Two key variables—the maximum and minimum values of the weighted closing price—are maintained throughout. When the price moves above the Vstop, an uptrend is signaled, causing the stop to adjust upward. If the price falls below the Vstop, the stop moves downward, indicating a potential downtrend. This dynamic adjustment mechanism helps traders lock in profits during trends and minimize losses during reversals.
Features and User Inputs
The "Weighted Vstop" script offers various customizable inputs for traders to fine-tune the indicator based on their strategies. Traders can adjust:
Vstop Length, which defines the period used to calculate the ATR, determining how sensitive the stop-loss levels are to volatility.
Multiplier, which modifies the ATR’s influence on the Vstop, allowing traders to widen or tighten the stop-loss levels.
Bar Color Settings, enabling traders to visually distinguish trend shifts by coloring bars according to the current trend direction. Practical Applications
The "Weighted Vstop" indicator is designed for traders seeking a dynamic method to set stop-losses and identify trends. The weighted price series helps reduce false signals during volatile conditions, while the ATR-based Vstop ensures that stop-loss levels adjust based on market volatility. This makes it particularly effective for:
Risk Management, allowing traders to adapt their strategy by tightening stops during low volatility and widening them in high-volatility environments.
Trend-Following, providing clear signals for when trends continue or reverse, helping traders stay in profitable trades longer while avoiding premature exits.
Reducing False Signals, where the weighted price calculation helps minimize the noise that could trigger unnecessary stop-losses in conventional systems. Advantages and Strategic Value
The "Weighted Vstop" script is valuable for its integration of a volatility-based stop-loss with a weighted price calculation. The ATR-based stop-loss dynamically adapts to market conditions, offering a more refined approach to risk management. Customizable Vstop length and multiplier settings allow traders to adjust the indicator based on their timeframes and trading preferences.
This adaptability makes the "Weighted Vstop" a key tool for optimizing risk management, providing accurate stop-loss levels that respond to market volatility without overreacting to short-term fluctuations.
Alerts and Visual Cues
The script includes alert conditions to notify traders of significant trend changes. A "Weighted Vstop Long" alert triggers when the weighted price moves above the Vstop, indicating a potential upward trend. Conversely, the "Weighted Vstop Short" alert signals a possible downward trend when the price falls below the Vstop. Color-coded bar plots offer clear visual cues to indicate the current trend, helping traders interpret real-time market conditions effectively.
Summary and Usage Tips
The "Weighted Vstop | viResearch" indicator provides an adaptable and powerful solution for traders who want to use volatility-based stop-losses to identify trend shifts. By integrating a weighted closing price with an ATR-based Vstop, this script helps traders remain aligned with trends while managing risk efficiently. Incorporating this tool into your trading strategy can improve your ability to capture trends and minimize losses during market reversals, offering a reliable and customizable option for traders at all levels.
Note: Backtests are based on past results and are not indicative of future performance.
Gaps Trend [ChartPrime]The Gaps Trend - ChartPrime indicator is designed to detect Fair Value Gaps (FVGs) in the market and apply a trailing stop mechanism based on those gaps. It identifies both bullish and bearish gaps and provides traders with a way to manage trades dynamically as gaps appear. The indicator visually highlights gaps and uses the detected momentum to assess trend direction, helping traders identify price imbalances caused by strong buy or sell pressure.
⯁ KEY FEATURES & HOW TO USE
⯌ Fair Value Gap (FVG) Detection :
The indicator automatically detects both bullish and bearish FVGs, identifying gaps between candle highs and lows. Bullish gaps are shown in green, and bearish gaps in purple. These gaps indicate price imbalances driven by strong momentum, such as when there is significant buying or selling pressure.
Use : Traders can use FVG detection to identify periods of high price momentum, offering insight into potential continuation or exhaustion of trends.
⯌ Trailing Stop Feature Based on FVGs :
A core feature of this indicator is the trailing stop mechanism, which adjusts dynamically based on the identified FVGs. When a bullish gap is detected, the trailing stop is placed below the price to capture upward momentum, while bearish gaps result in a trailing stop placed above the price. This feature helps traders stay in trends while protecting profits as the price moves.
Use : The trailing stop follows the momentum of the price, ensuring that traders can stay in profitable trades during strong trends and exit when the momentum shifts.
bullish set up
bearish set up
⯌ Trend Direction Indication :
The indicator colors the chart according to the current trend direction based on the position of the price relative to the trailing stop. Green indicates an uptrend (bullish gap), while purple shows a downtrend (bearish gap). This provides traders with a quick visual assessment of trend direction based on the presence of gaps.
Use : Traders can monitor the chart's color to stay aligned with the market’s trend, staying long during green phases and short during purple ones.
⯌ Gap Size Filtering :
Each detected gap is assigned a numerical ranking based on its size, with larger gaps having higher rankings. The gap size filter allows traders to only display gaps that meet a minimum size threshold, focusing on the most impactful gaps in terms of price movement.
Use : Traders can use the filter to focus on gaps of a certain size, filtering out smaller, less significant gaps. The numerical ranking helps identify the largest and most influential gaps for decision-making.
⯌ FVG Level Visualization :
The indicator can display dashed lines marking the levels of previously filled FVGs. These levels represent areas where price once experienced a gap and later filled it. Monitoring these levels can provide traders with key reference points for potential reactions in price.
Use : Traders can use these gap levels to track where price has filled gaps and potentially use these levels as zones for entry, exit, or assessing market behavior.
⯁ USER INPUTS
Filter Gaps : Adjust the size threshold to filter gaps by their size ranking.
Show Gap Levels : Toggle the display of dashed lines at filled FVG levels.
Enable Trailing Stop : Activate or deactivate the trailing stop feature based on FVGs.
Trailing Stop Length : Set the number of bars used to calculate the trailing stop.
Bullish/Bearish Colors : Customize the colors representing bullish and bearish gaps.
⯁ CONCLUSION
The Gaps Trend indicator combines Fair Value Gap detection with a dynamic trailing stop feature to help traders manage trades during periods of high price momentum. By detecting gaps caused by strong buy or sell pressure and applying adaptive stops, the indicator provides a powerful tool for riding trends and managing risk. The additional ability to filter gaps by size and visualize previously filled gaps enhances its utility for both trend-following and risk management strategies.
Average True Range with Price MAATR with Price Moving Average Indicator
This custom indicator combines the Average True Range (ATR) with a Price Moving Average (MA) to help traders analyze market volatility in percent to the price.
Key Components:
Average True Range (ATR)
Price Moving Average (MA)
ATR/Price in Percent
ATR/Price in Percent
Purpose: This ratio helps traders understand the relative size of the ATR compared to the current price, providing a clearer sense of how significant the volatility is in proportion to the price level.
Calculation: ATR is divided by the current closing price and multiplied by 100 to express it as a percentage. This makes it easier to compare volatility across assets with different price ranges.
Plot: This is plotted as a percentage, making it easier to gauge whether the volatility is proportionally high or low compared to the asset's price.
Usage:
This indicator is designed to help identify the most volatile tokens, making it ideal for configuring a Grid Bot to maximize profit. By focusing on high-volatility assets, traders can capitalize on larger price swings within the grid, increasing the potential for more profitable trades.
Features:
Customizable Smoothing Method: Choose from RMA (Relative Moving Average), SMA (Simple Moving Average), EMA (Exponential Moving Average), or WMA (Weighted Moving Average) for both ATR and the Price Moving Average.
Dual Perspective: The indicator provides both volatility analysis (ATR) and trend analysis (Price MA) in a single view.
Proportional Volatility: The ATR/Price (%) ratio adds a layer of context by showing how volatile the asset is relative to its current price.
Fundamental AnalysisThis indicator compiles a wide range of essential financial metrics directly onto your chart, providing a quick and easy reference to the financial condition of any listed company. Instead of diving into lengthy financial reports, you get an at-a-glance overview of the most critical financial ratios and figures.
Key Metrics Included:
Interest Coverage Ratio: Helps assess a company’s ability to pay interest on its debt. Higher values suggest greater financial stability and lower default risk.
Gross Profit Margin: Shows how much profit a company makes after covering its production costs. A higher margin indicates better efficiency and profitability in managing costs.
Dividend Yield: Reflects the annual dividend payout as a percentage of the current stock price. A moderate dividend yield may indicate a balance between income generation and growth potential.
Enterprise Value (EV): A comprehensive measure of a company's total value, including debt. Useful for comparing companies with different capital structures.
Free Cash Flow to Equity (FCFE): Reveals how much cash is available to shareholders after accounting for capital expenditures and debt repayments, indicating the company’s ability to reward investors.
Price-to-Book Ratio (P/B): Compares a company's market value to its book value. Lower values might indicate undervaluation, while higher values can suggest overvaluation.
Price-to-Cash Flow Ratio (P/CF): Helps identify companies that generate a significant amount of cash relative to their price, a key metric for assessing liquidity and sustainability.
Price-to-Free Cash Flow Ratio: Shows how much investors are paying for the company's free cash flow, which is crucial for assessing value, especially in capital-intensive sectors.
Price Earnings Ratio (P/E): The classic metric for valuing a company based on its earnings. Useful for comparing valuations across companies and industries.
Debt-to-Equity Ratio: Indicates the proportion of company financing that comes from debt and equity. A lower ratio typically signifies a less risky investment.
Return on Equity (ROE): Measures how effectively a company uses equity capital to generate profit. A higher ROE can indicate a profitable, well-managed company.
Quick Ratio: Assesses a company’s short-term liquidity by comparing its liquid assets to its current liabilities. Higher values indicate better liquidity.
Operating Margin: Reflects the percentage of revenue left after covering operating expenses. Higher margins suggest greater operational efficiency.
How to Use This Indicator:
Use this indicator as part of your due diligence when analyzing potential investments. Each metric is color-coded to quickly highlight whether the value is within a favorable range, making it easy to identify strong or weak aspects of a company’s financial position.
Green indicates favorable metrics, suggesting financial strength or value.
Red highlights areas of concern, pointing to potential risks or weaknesses.
This tool can help you compare different companies, spot trends over time, and make more informed decisions based on solid financial analysis. Whether you’re a value investor looking for undervalued stocks, a dividend seeker searching for sustainable payouts, or a growth investor focused on profitability and efficiency, this indicator can be tailored to your strategy.
Smart Signals Assistant [AlgoAlpha]Introduction
The Smart Signals Assistant, developed by AlgoAlpha, is a robust trading tool designed to empower traders of all levels with a flexible, customizable overlay indicator. Built on proprietary logic, this tool can integrate seamlessly with other indicators or be used as a standalone tool and offers powerful market insights, enabling users to tailor their trading strategy by combining different components for unique strategies. Whether you focus on trend-following or mean-reversion strategies, the Smart Signals Assistant is optimized to support you across various market conditions.
Core Features
1. Trend Cipher Component (Trend Identification and Bar Coloring):
The Trend Cipher is the core feature of the Smart Signals Assistant. It offers an intuitive method to detect trends by displaying clear visual signals, such as arrows ("▲" for bullish trends and "▼" for bearish trends). Additionally, signal strength indications are also included where the arrows will have a '+' sign to signify a strong trend, a strong signal is determined when the volatility of prices are increasing. the candlesticks are color-coded to reflect market conditions—green for bullish, red for bearish, and gray when the market is ranging, ranging markets are marked when the prices end up retracing in the opposite direction after a signal is sent, indicating that buyers/sellers are not ready to continue the trend yet. These added layers of confluence allows users to judge if signals provided by the Trend Cipher are high probability signals.
- Exit Signals : "X" marks indicate potential take-profit points when momentum is waning. Users can set a maximum number of exit signals, allowing for greater control over trade management and predictable exit strategies.
- Customization : Users can adjust the period length for the Trend Cipher to suit different market conditions and strategies. For example, a shorter period is more sensitive and responsive to quick shifts in trends, while a longer period offers more stable signals for long-term traders.(longer periods shown below)
2. Trend Bias Component (Long-term Trend Filter and Confirmation):
The Trend Bias acts as a trend confirmation tool. It comes in the form of a smooth band that reflects the central tendency of price movements. It provides a more comprehensive view of whether the price is trend up or down, as well as whether the price is trending strongly or not. It does so by checking if the current momentum of price is stronger relative to the average momentum over a period of time.
As mentioned earlier, the Trend Bias can also act as a marker of central tendency, meaning that users can use the Trend Bias as a dynamic take-profit zone when executing reversal trades.
- When aligned with the Trend Cipher, the Trend Bias helps traders differentiate between strong and weak trends. Bright colors signify a robust trend, while subdued colors signal weakening momentum. This helps users avoid false signals and enter high-probability trades.
3. Fair Value Trail (Entry Optimization):
The Fair Value Trail is a zone-based component that helps users capture optimal entry points, such as when the market is overbought or oversold. By waiting for price retracements into the Fair Value Trail, traders can achieve better pricing and potentially maximize their profits. The Fair Value Trail is unique in the sense that it dynamically adjusts its width according to the market volatility so that the optimal entry area remains as relevant.
- This feature works in conjunction with the Trend Cipher by allowing users to wait for retracement before entering the trade, thus improving their risk-reward ratio.
4. Trend Spine (Range Detection and Filter):
The Trend Spine helps identify periods of price consolidation by flattening the price action into a rigid line. This helps traders avoid entering trades in choppy or directionless markets. The Trend Spine’s values remain unchanged during consolidations, alerting users when to refrain from trading due to a lack of trend direction.
- This feature integrates with other components, providing clearer signals for trading in trending markets while filtering out trades in ranging or consolidating markets.
5. Firmament Cloud (Reversal Zones):
The Firmament Cloud defines zones on the price chart that are considered extreme, indicating overbought or oversold conditions. Price reaching these zones suggests potential reversal points, giving traders additional confirmation to enter or exit trades. The separation of the upper and lower clouds as well of the width of each respective cloud are dynamically adjusted based on the aggressiveness of price movements coupled with user defined settings for some base parameters such as multipliers for separation and width.
- This component works well for traders using a mean-reversion strategy or those looking for early exits during overextended price movements.
Usage and Customization
The Smart Signals Assistant offers a flexible interface, making it simple to adjust settings such as indicator lengths, noise reduction factors, and display options. Key components, such as the Trend Cipher, Trend Bias, and Fair Value Trail, are highly customizable, allowing traders to create a unique trading system tailored to their specific needs. Tooltips accompany most inputs to help users quickly understand how to adjust the tool effectively.
Combining Components for Synergy
1. Trend Cipher and Trend Bias:
By combining the Trend Cipher with the Trend Bias, users receive both short-term and long-term trend confirmations. A bullish signal from the Trend Cipher, when aligned with an upward-trending Trend Bias, significantly enhances the likelihood of a profitable trade, minimizing the chances of acting on premature signals.
2. Fair Value Trail for Entry Optimization:
Rather than immediately acting on a Trend Cipher signal, users can wait for the price to enter the Fair Value Trail. This strategy ensures better entries at premium or discounted prices, maximizing potential returns.
3. Trend Spine for Range Detection:
The Trend Spine works alongside the Trend Cipher to keep traders out of consolidating markets. When the Trend Spine remains flat, it signals a ranging market, advising users to avoid trades during such periods.
4. Firmament Cloud for Reversal Points:
The Firmament Cloud identifies extreme market conditions, marking zones where traders should be cautious about entering trades. When combined with Trend Cipher signals, this component helps users pinpoint overbought or oversold markets, allowing for strategic entries and exits.
Conclusion
The Smart Signals Assistant is more than just a collection of individual indicators. It offers a comprehensive, multi-layered system that provides a deeper understanding of market dynamics, ranging from trend detection to reversal opportunities. The flexibility in customizing its various components allows traders to craft a strategy suited to their style, whether they prefer trend-following or mean-reversion methods. With this tool, traders can enhance decision-making, optimize entries and exits, and navigate both trending and ranging markets more effectively.
Lsma For Loop | viResearchLsma For Loop | viResearch
Conceptual Foundation and Innovation
The "Lsma For Loop" indicator offers a unique combination of the Least Squares Moving Average (LSMA) with a dynamic scoring system based on a loop function. By comparing the current LSMA value with historical values over a user-defined range, this indicator generates a detailed score that helps detect trend strength and potential reversals. This approach provides traders with a more nuanced analysis of price action, allowing them to identify trends earlier and with more accuracy.
The LSMA, which minimizes lag compared to traditional moving averages, is ideal for detecting trends as it provides a smooth and quick-to-respond line. When combined with the loop-based scoring system, traders can benefit from a powerful tool for analyzing market momentum and capturing profitable trends.
Technical Composition and Calculation
The "Lsma For Loop" script features two essential components:
Least Squares Moving Average (LSMA): The LSMA is calculated over a user-defined length using a linear regression model. It provides a smooth line that follows price trends more closely, reducing the noise that is often present in simple moving averages.
For Loop Scoring System: This system evaluates the LSMA over a range of previous values, generating a score based on whether the current LSMA is higher or lower than its previous values within the specified range. The resulting score reflects the strength of the trend, with higher scores indicating a stronger uptrend and lower scores signaling a downtrend.
Key Calculations:
LSMA Calculation: The LSMA is derived from the closing price over the selected period (len), providing a smooth moving average that fits the price data closely.
For Loop Scoring:
The loop iterates over a range of previous LSMA values, comparing the current LSMA to each past value.
If the current LSMA is higher than a previous value, a positive score is added; if it is lower, a negative score is added. The sum of these comparisons forms the overall score.
Features and User Inputs
The "Lsma For Loop" script offers a range of customization options, allowing traders to tailor the indicator to their specific trading strategies and market conditions:
LSMA Length: Adjust the length of the LSMA, controlling the smoothness of the indicator and how quickly it reacts to price changes.
Loop Range (From and To): Define the range over which the for loop evaluates LSMA values. This provides flexibility in assessing momentum over different timeframes.
Thresholds: Customizable threshold levels are used to define when the score indicates an uptrend or downtrend. This allows traders to fine-tune the sensitivity of the indicator to market movements.
Practical Applications
The "Lsma For Loop" is a versatile tool for traders who want to leverage the advantages of LSMA smoothing while gaining a more detailed view of trend strength. This indicator is particularly useful for:
Identifying Trend Reversals: The loop-based scoring system provides an early indication of potential trend reversals, allowing traders to react before major market movements.
Confirming Trend Strength: By evaluating the LSMA against a range of previous values, the script helps confirm whether a trend is strengthening or weakening.
Enhanced Market Positioning: The customizable range and thresholds enable traders to adapt the script to different market conditions, whether they are day trading or swing trading.
Advantages and Strategic Value
The primary advantage of the "Lsma For Loop" script lies in its ability to provide a more granular analysis of LSMA behavior through the use of the for loop. This dynamic approach reduces the likelihood of false signals and offers greater accuracy in detecting trends. The indicator’s versatility makes it a valuable tool for both short-term and long-term trading strategies.
Alerts and Visual Cues
The script includes built-in alert conditions to notify traders of key trend changes:
Lsma For Loop Long: Indicates a potential upward trend when the score exceeds the upper threshold.
Lsma For Loop Short: Signals a potential downward trend when the score falls below the lower threshold.
Additionally, visual cues such as background color changes highlight when the score crosses certain key levels, providing an easy-to-read representation of market trends directly on the chart.
Summary and Usage Tips
The "Lsma For Loop | viResearch" indicator provides traders with a powerful tool that combines LSMA smoothing with a dynamic loop-based scoring system for trend detection. Incorporating this script into your trading strategy can help improve trend identification and enhance decision-making around entries and exits. Whether you are trading in trending markets or looking for early reversal signals, this script offers a reliable and flexible solution.
Note: Backtests are based on past results and are not indicative of future performance.
Dema Vstop | viResearchTitle: Dema Vstop | viResearch
Conceptual Foundation and Innovation
The "Dema Vstop" indicator combines the Double Exponential Moving Average (DEMA) with the Volatility Stop (Vstop) concept to improve trend-following and trend-reversal signals. This script provides a more responsive and dynamic approach to identifying trends and capturing market movements by integrating these two powerful tools. It is particularly effective for traders who seek a balance between smoothing out price action and quickly adapting to volatile changes in the market.
The DEMA smooths the price action more effectively than a traditional moving average, while the Vstop introduces a volatility-adjusted stop-loss mechanism, allowing traders to adapt to the market's changing conditions. The result is a robust system that captures both trend direction and potential reversal points with improved precision.
Technical Composition and Calculation
At the core of the "Dema Vstop" script are two primary components:
Double Exponential Moving Average (DEMA): This is used to smooth the source price over a user-defined period (dema_len), making it ideal for trend identification.
Volatility Stop (Vstop): The Vstop mechanism uses the Average True Range (ATR) to adjust stop-loss levels based on market volatility, allowing the indicator to account for changes in market conditions.
Key Calculations:
DEMA Calculation: Based on the selected length and source, the DEMA smooths the price data.
Vstop Calculation: The ATR (with customizable length) is used to adjust the stop distance, and the Vstop level is calculated based on whether the price is trending up or down.
Features and User Inputs
The "Dema Vstop" script offers a high degree of customization:
DEMA Length and Source: Control the smoothness of the DEMA and the price data being smoothed.
Vstop Length: Customize the length of the ATR calculation to control how reactive the Vstop is to price volatility.
Multiplier: Adjust the sensitivity of the Vstop to market volatility. A higher multiplier results in a wider stop, while a lower multiplier tightens the stop, making it more sensitive to price changes.
Practical Applications
The "Dema Vstop" is designed for traders looking for a hybrid trend-following system that is both smooth and responsive. It can be particularly useful for:
Identifying Trends: The combination of DEMA and Vstop makes trend-following easier, helping traders stay in profitable positions longer.
Volatility Protection: The Vstop dynamically adjusts based on market volatility, providing a built-in risk management tool that reduces exposure to volatile markets.
Reversals and Entries: The Vstop helps identify potential reversals by flipping its stop level when the trend direction changes, making it effective for signaling entries and exits with improved accuracy.
Advantages and Strategic Value
The key advantage of the "Dema Vstop" script lies in its ability to offer smoother trend detection through the DEMA while dynamically adapting to volatility using the Vstop. This combination reduces false signals, providing traders with a more stable and reliable tool for trend trading. Additionally, the customizable parameters allow traders to fine-tune the indicator to suit different trading styles and market conditions.
Alerts and Visual Cues
The script comes with built-in alert conditions that trigger when a trend shift is detected:
- Dema Vstop Long: Signals a potential upward trend.
- Dema Vstop Short: Signals a potential downward trend.
These alerts ensure that traders can stay informed about critical market changes without constantly monitoring the chart.
Summary and Usage Tips
The "Dema Vstop | viResearch" script is an innovative trend-following tool that combines the smoothness of DEMA with the adaptive qualities of Vstop. By offering a customizable and dynamic system, this indicator helps traders navigate the complexities of volatile markets while reducing noise and false signals. Incorporating this script into your trading strategy can improve trend analysis and increase the accuracy of entries and exits.
Note: Backtests are based on past results and are not indicative of future performance.
Uptrick: RSI Histogram
1. **Introduction to the RSI and Moving Averages**
2. **Detailed Breakdown of the Uptrick: RSI Histogram**
3. **Calculation and Formula**
4. **Visual Representation**
5. **Customization and User Settings**
6. **Trading Strategies and Applications**
7. **Risk Management**
8. **Case Studies and Examples**
9. **Comparison with Other Indicators**
10. **Advanced Usage and Tips**
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## 1. Introduction to the RSI and Moving Averages
### **1.1 Relative Strength Index (RSI)**
The Relative Strength Index (RSI) is a momentum oscillator developed by J. Welles Wilder and introduced in his 1978 book "New Concepts in Technical Trading Systems." It is widely used in technical analysis to measure the speed and change of price movements.
**Purpose of RSI:**
- **Identify Overbought/Oversold Conditions:** RSI values range from 0 to 100. Traditionally, values above 70 are considered overbought, while values below 30 are considered oversold. These thresholds help traders identify potential reversal points in the market.
- **Trend Strength Measurement:** RSI also indicates the strength of a trend. High RSI values suggest strong bullish momentum, while low values indicate bearish momentum.
**Calculation of RSI:**
1. **Calculate the Average Gain and Loss:** Over a specified period (e.g., 14 days), calculate the average gain and loss.
2. **Compute the Relative Strength (RS):** RS is the ratio of average gain to average loss.
3. **RSI Formula:** RSI = 100 - (100 / (1 + RS))
### **1.2 Moving Averages (MA)**
Moving Averages are used to smooth out price data and identify trends by filtering out short-term fluctuations. Two common types are:
**Simple Moving Average (SMA):** The average of prices over a specified number of periods.
**Exponential Moving Average (EMA):** A type of moving average that gives more weight to recent prices, making it more responsive to recent price changes.
**Smoothed Moving Average (SMA):** Used to reduce the impact of volatility and provide a clearer view of the underlying trend. The RMA, or Running Moving Average, used in the USH script is similar to an EMA but based on the average of RSI values.
## 2. Detailed Breakdown of the Uptrick: RSI Histogram
### **2.1 Indicator Overview**
The Uptrick: RSI Histogram (USH) is a technical analysis tool that combines the RSI with a moving average to create a histogram that reflects momentum and trend strength.
**Key Components:**
- **RSI Calculation:** Determines the relative strength of price movements.
- **Moving Average Application:** Smooths the RSI values to provide a clearer trend indication.
- **Histogram Plotting:** Visualizes the deviation of the smoothed RSI from a neutral level.
### **2.2 Indicator Purpose**
The primary purpose of the USH is to provide a clear visual representation of the market's momentum and trend strength. It helps traders identify:
- **Bullish and Bearish Trends:** By showing how far the smoothed RSI is from the neutral 50 level.
- **Potential Reversal Points:** By highlighting changes in momentum.
### **2.3 Indicator Design**
**RSI Moving Average (RSI MA):** The RSI MA is a smoothed version of the RSI, calculated using a running moving average. This smooths out short-term fluctuations and provides a clearer indication of the underlying trend.
**Histogram Calculation:**
- **Neutral Level:** The histogram is plotted relative to the neutral level of 50. This level represents a balanced market where neither bulls nor bears have dominance.
- **Histogram Values:** The histogram bars show the difference between the RSI MA and the neutral level. Positive values indicate bullish momentum, while negative values indicate bearish momentum.
## 3. Calculation and Formula
### **3.1 RSI Calculation**
The RSI calculation involves:
1. **Average Gain and Loss:** Calculated over the specified length (e.g., 14 periods).
2. **Relative Strength (RS):** RS = Average Gain / Average Loss.
3. **RSI Formula:** RSI = 100 - (100 / (1 + RS)).
### **3.2 Moving Average Calculation**
For the USH indicator, the RSI is smoothed using a running moving average (RMA). The RMA formula is similar to that of the EMA but is based on averaging RSI values over the specified length.
### **3.3 Histogram Calculation**
The histogram value is calculated as:
- **Histogram Value = RSI MA - 50**
**Plotting the Histogram:**
- **Positive Histogram Values:** Indicate that the RSI MA is above the neutral level, suggesting bullish momentum.
- **Negative Histogram Values:** Indicate that the RSI MA is below the neutral level, suggesting bearish momentum.
## 4. Visual Representation
### **4.1 Histogram Bars**
The histogram is plotted as bars on the chart:
- **Bullish Bars:** Colored green when the RSI MA is above 50.
- **Bearish Bars:** Colored red when the RSI MA is below 50.
### **4.2 Customization Options**
Traders can customize:
- **RSI Length:** Adjust the length of the RSI calculation to match their trading style.
- **Bull and Bear Colors:** Choose colors for histogram bars to enhance visual clarity.
### **4.3 Interpretation**
**Bullish Signal:** A histogram bar that moves from red to green indicates a potential shift to a bullish trend.
**Bearish Signal:** A histogram bar that moves from green to red indicates a potential shift to a bearish trend.
## 5. Customization and User Settings
### **5.1 Adjusting RSI Length**
The length parameter determines the number of periods over which the RSI is calculated and smoothed. Shorter lengths make the RSI more sensitive to price changes, while longer lengths provide a smoother view of trends.
### **5.2 Color Settings**
Traders can adjust:
- **Bull Color:** Color of histogram bars indicating bullish momentum.
- **Bear Color:** Color of histogram bars indicating bearish momentum.
**Customization Benefits:**
- **Visual Clarity:** Traders can choose colors that stand out against their chart’s background.
- **Personal Preference:** Adjust settings to match individual trading styles and preferences.
## 6. Trading Strategies and Applications
### **6.1 Trend Following**
**Identifying Entry Points:**
- **Bullish Entry:** When the histogram changes from red to green, it signals a potential entry point for long positions.
- **Bearish Entry:** When the histogram changes from green to red, it signals a potential entry point for short positions.
**Trend Confirmation:** The histogram helps confirm the strength of a trend. Strong, consistent green bars indicate robust bullish momentum, while strong, consistent red bars indicate robust bearish momentum.
### **6.2 Swing Trading**
**Momentum Analysis:**
- **Entry Signals:** Look for significant shifts in the histogram to time entries. A shift from bearish to bullish (red to green) indicates potential for upward movement.
- **Exit Signals:** A shift from bullish to bearish (green to red) suggests a potential weakening of the trend, signaling an exit or reversal point.
### **6.3 Range Trading**
**Market Conditions:**
- **Consolidation:** The histogram close to zero suggests a range-bound market. Traders can use this information to identify support and resistance levels.
- **Breakout Potential:** A significant move away from the neutral level may indicate a potential breakout from the range.
### **6.4 Risk Management**
**Stop-Loss Placement:**
- **Bullish Positions:** Place stop-loss orders below recent support levels when the histogram is green.
- **Bearish Positions:** Place stop-loss orders above recent resistance levels when the histogram is red.
**Position Sizing:** Adjust position sizes based on the strength of the histogram signals. Strong trends (indicated by larger histogram bars) may warrant larger positions, while weaker signals suggest smaller positions.
## 7. Risk Management
### **7.1 Importance of Risk Management**
Effective risk management is crucial for long-term trading success. It involves protecting capital, managing losses, and optimizing trade setups.
### **7.2 Using USH for Risk Management**
**Stop-Loss and Take-Profit Levels:**
- **Stop-Loss Orders:** Use the histogram to set stop-loss levels based on trend strength. For instance, place stops below support levels in bullish trends and above resistance levels in bearish trends.
- **Take-Profit Targets:** Adjust take-profit levels based on histogram changes. For example, lock in profits as the histogram starts to shift from green to red.
**Position Sizing:**
- **Trend Strength:** Scale position sizes based on the strength of histogram signals. Larger histogram bars indicate stronger trends, which may justify larger positions.
- **Volatility:** Consider market volatility and adjust position sizes to mitigate risk.
## 8. Case Studies and Examples
### **8.1 Example 1: Bullish Trend**
**Scenario:** A trader notices a transition from red to green histogram bars.
**Analysis:**
- **Entry Point:** The transition indicates a potential bullish trend. The trader decides to enter a long position.
- **Stop-Loss:** Set stop-loss below recent support levels.
- **Take-Profit:** Consider taking profits as the histogram moves back towards zero or turns red.
**Outcome:** The bullish trend continues, and the histogram remains green, providing a profitable trade setup.
### **8.2 Example 2: Bearish Trend**
**Scenario:** A trader observes a transition from green to red histogram bars.
**Analysis:**
- **Entry Point:** The transition suggests a potential
bearish trend. The trader decides to enter a short position.
- **Stop-Loss:** Set stop-loss above recent resistance levels.
- **Take-Profit:** Consider taking profits as the histogram approaches zero or shifts to green.
**Outcome:** The bearish trend continues, and the histogram remains red, resulting in a successful trade.
## 9. Comparison with Other Indicators
### **9.1 RSI vs. USH**
**RSI:** Measures momentum and identifies overbought/oversold conditions.
**USH:** Builds on RSI by incorporating a moving average and histogram to provide a clearer view of trend strength and momentum.
### **9.2 RSI vs. MACD**
**MACD (Moving Average Convergence Divergence):** A trend-following momentum indicator that uses moving averages to identify changes in trend direction.
**Comparison:**
- **USH:** Provides a smoothed RSI perspective and visual histogram for trend strength.
- **MACD:** Offers signals based on the convergence and divergence of moving averages.
### **9.3 RSI vs. Stochastic Oscillator**
**Stochastic Oscillator:** Measures the level of the closing price relative to the high-low range over a specified period.
**Comparison:**
- **USH:** Focuses on smoothed RSI values and histogram representation.
- **Stochastic Oscillator:** Provides overbought/oversold signals and potential reversals based on price levels.
## 10. Advanced Usage and Tips
### **10.1 Combining Indicators**
**Multi-Indicator Strategies:** Combine the USH with other technical indicators (e.g., Moving Averages, Bollinger Bands) for a comprehensive trading strategy.
**Confirmation Signals:** Use the USH to confirm signals from other indicators. For instance, a bullish histogram combined with a moving average crossover may provide a stronger buy signal.
### **10.2 Customization Tips**
**Adjust RSI Length:** Experiment with different RSI lengths to match various market conditions and trading styles.
**Color Preferences:** Choose histogram colors that enhance visibility and align with personal preferences.
### **10.3 Continuous Learning**
**Backtesting:** Regularly backtest the USH with historical data to refine strategies and improve accuracy.
**Education:** Stay updated with trading education and adapt strategies based on market changes and personal experiences.
Cash Cycle BandCash cycle band shows the number of days and the profit margin compared to the previous period (it does not indicate how profitable the company is, but how well it is managed).
Cash cycle band consists of 6 sections:
1. DPO is the days payables outstanding in the "red" followed by O/D which is overdraft or short-term debt (if any) .
2. DIO is the days inventory outstanding in the "green" followed by classified inventory (if any) consists of finished goods. work in process and raw materials.
3. DSO is days sales outstanding in "blue".
4. DWC is days converting working capital to revenue in "orange".
5. CCC is days converting inventory and resources to cash flow in "yellow".
6. GPM is gross profit margin and OPM is operating profit margin.
The "😱" emoji indicates a value if it increases by more than or decreases by less than 20%, e.g.
- DPO, finished goods, work in process, raw materials, GPM, OPM is decreasing.
- O/D, DIO, DSO, DWC, CCC is increasing.
The "🔥" emoji indicates a value if it increases by more than or decreases, e.g.
- DPO, finished goods, work in process, raw materials, GPM, OPM is increasing.
- O/D, DIO, DSO, DWC, CCC is decreasing.
The order of the list depends on the day of each item, the more days more high.
Machine Learning Signal FilterIntroducing the "Machine Learning Signal Filter," an innovative trading indicator designed to leverage the power of machine learning to enhance trading strategies. This tool combines advanced data processing capabilities with user-friendly customization options, offering traders a sophisticated yet accessible means to optimize their market analysis and decision-making processes. Importantly, this indicator does not repaint, ensuring that signals remain consistent and reliable after they are generated.
Machine Learning Integration
The "Machine Learning Signal Filter" employs machine learning algorithms to analyze historical price data and identify patterns that may not be immediately apparent through traditional technical analysis. By utilizing techniques such as regression analysis and neural networks, the indicator continuously learns from new data, refining its predictive capabilities over time. This dynamic adaptability allows the indicator to adjust to changing market conditions, potentially improving the accuracy of trading signals.
Key Features and Benefits
Dynamic Signal Generation: The indicator uses machine learning to generate buy and sell signals based on complex data patterns. This approach enables it to adapt to evolving market trends, offering traders timely and relevant insights. Crucially, the indicator does not repaint, providing reliable signals that traders can trust.
Customizable Parameters: Users can fine-tune the indicator to suit their specific trading styles by adjusting settings such as the temporal synchronization and neural pulse rate. This flexibility ensures that the indicator can be tailored to different market environments.
Visual Clarity and Usability: The indicator provides clear visual cues on the chart, including color-coded signals and optional display of signal curves. Users can also customize the table's position and text size, enhancing readability and ease of use.
Comprehensive Performance Metrics: The indicator includes a detailed metrics table that displays key performance indicators such as return rates, trade counts, and win/loss ratios. This feature helps traders assess the effectiveness of their strategies and make data-driven decisions.
How It Works
The core of the "Machine Learning Signal Filter" is its ability to process and learn from large datasets. By applying machine learning models, the indicator identifies potential trading opportunities based on historical data patterns. It uses regression techniques to predict future price movements and neural networks to enhance pattern recognition. As new data is introduced, the indicator refines its algorithms, improving its accuracy and reliability over time.
Use Cases
Trend Following: Ideal for traders seeking to capitalize on market trends, the indicator helps identify the direction and strength of price movements.
Scalping: With its ability to provide quick signals, the indicator is suitable for scalpers aiming for rapid profits in volatile markets.
Risk Management: By offering insights into trade performance, the indicator aids in managing risk and optimizing trade setups.
In summary, the "Machine Learning Signal Filter" is a powerful tool that combines the analytical strength of machine learning with the practical needs of traders. Its ability to adapt and provide actionable insights makes it an invaluable asset for navigating the complexities of financial markets.
The "Machine Learning Signal Filter" is a tool designed to assist traders by providing insights based on historical data and machine learning techniques. It does not guarantee profitable trades and should be used as part of a comprehensive trading strategy. Users are encouraged to conduct their own research and consider their financial situation before making trading decisions. Trading involves significant risk, and it is possible to lose more than the initial investment. Always trade responsibly and be aware of the risks involved.
Price & Volume Breakout Fibonacci Probability [TradeDots]📝 OVERVIEW
The "Price & Volume Breakout Fibonacci Probability" indicator is designed to detect the probability of the maximum run-up and drawdown of each breakout trade on an asset, assisting traders in optimizing their take profit and stop loss strategies.
🧮 CALCULATIONS
The algorithm detects price and volume breakouts to activate the Fibonacci levels displayed on the chart. It calculates these levels using the period pivot high and low, with the close price of the breakout bar as the reference price.
The indicator then forward-tests within an user-selected number of bars, detecting the maximum run-up and drawdown during that period. Consequently, it calculates the probability of the price hitting either side of the Fibonacci levels, showing the likelihood of reaching take profit and stop loss targets for each breakout trade.
📊 EXAMPLE
The above example shows two breakout trades, circled within the yellow rectangle zone.
The first trade has a maximum run-up above the +0.382 Fibonacci level zone and a maximum drawdown below the -0.618 Fibonacci level zone.
When the price reaches the maximum run-up, it only has a ~45% probability of moving further upward into the last two zones (25% + 19.44%). This indicates that setting a take profit at a higher level may have less than a 50% chance of success.
Conversely, when the price reaches its maximum drawdown, there is only an ~8% probability of moving further downward into the last drawdown zone. This could indicate a potential reversal.
⚙️ SETTINGS
Breakout Condition: Determines the type of breakout condition to track: "Price", "Volume", "Price & Volume".
Backtest Period: The maximum run-up and drawdown are detected within this bar period.
Price Breakout Period: Specifies the number of bars the price needs to break out from.
Volume Breakout Period: Specifies the number of bars the volume needs to break out from.
Trendline Confirmation: Confirms that the close price needs to be above the trendline.
📈 HOW TO USE
By understanding the probabilities of price movements to both the upside and downside, traders can set take profit and stop loss targets with greater accuracy.
For instance, placing a stop loss order below the zone with the highest probability minimizes the chances of being stopped out of a profitable trade. Conversely, setting a take profit target at the zone with the highest probability increases the win rate.
Additionally, if the price breaches multiple Fibonacci levels during the breakout period, it may indicate an abnormal state, signaling a potential reversal or pullback. This can help traders exit trades in a timely manner.
Traders can adjust their take profit and stop loss levels based on their individual risk tolerance.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Gabriel's Relative Unrealized Profit with Dynamic MVRV Histogram
Certainly! Here’s an enhanced description of the Gabriel's Relative Unrealized Profit with Dynamic MVRV Histogram indicator with detailed usage instructions and explanations of why it's effective:
Gabriel's Relative Unrealized Profit with Dynamic MVRV Histogram
Description:
The Gabriel's Relative Unrealized Profit with Dynamic MVRV Histogram is an advanced trading indicator designed to offer in-depth insights into asset profitability and market valuation. By integrating Relative Unrealized Profit (RUP) and the Market Value to Realized Value (MVRV) Ratio, this indicator provides a nuanced view of an asset's performance and potential trading signals.
Key Components:
SMA Length and Volume Indicator:
SMA Length: Defines the period for the Simple Moving Average (SMA) used to calculate the entry price, defaulted to 14 periods. This smoothing technique helps estimate the average historical price at which the asset was acquired.
Volume Indicator: Allows selection between "volume" and "vwap" (Volume-Weighted Average Price) for calculating entry volume. The choice impacts the calculation of entry volume, either based on standard trading volume or a weighted average price.
Realized Price Calculation:
Computes the average price over a specified period (default of 30 periods) to establish the realized price. This serves as a benchmark for evaluating the cost basis of the asset.
MVRV Calculation:
Current Price: The most recent closing price of the asset, representing its market value.
Total Cost: Calculated as the product of the entry price and entry volume, reflecting the total investment made.
Unrealized Profit: The difference between the current price and the entry price, multiplied by entry volume, indicating profit or loss that has yet to be realized.
Relative Unrealized Profit: Expressed as a percentage of the total cost, showing how much profit or loss exists relative to the initial investment.
Market Value and Realized Value: Market Value is the current price multiplied by entry volume, while Realized Value is the realized price multiplied by entry volume. The MVRV Ratio is obtained by dividing Market Value by Realized Value.
Normalization:
Normalizes both Relative Unrealized Profit and MVRV Ratio to a standardized range of -100 to 100. This involves calculating the minimum and maximum values over a 100-period window to ensure comparability and relevance.
Histogram Calculation:
The histogram is derived from the difference between the normalized Relative Unrealized Profit and the normalized MVRV Ratio. It visually represents the disparity between the two metrics, highlighting potential trading signals.
Plotting and Alerts:
Plots:
Normalized Relative Unrealized Profit (Blue Line): Plotted in blue, this line shows the scaled measure of unrealized profit. Positive values indicate potential gains, while negative values suggest potential losses.
Normalized MVRV Ratio (Red Line): Plotted in red, this line represents the scaled MVRV Ratio. Higher values suggest that the asset’s market value significantly exceeds its realized value, indicating potential overvaluation, while lower values suggest potential undervaluation.
Histogram (Green Bars): Plotted in green, this histogram displays the difference between the normalized Relative Unrealized Profit and the normalized MVRV Ratio. Positive bars indicate that the asset’s profitability is exceeding its market valuation, while negative bars suggest the opposite.
Alerts:
High Histogram Alert: Activated when the histogram value exceeds 50. This condition signals a strong positive divergence, indicating that the asset's profitability is outperforming its market valuation. It may suggest a buying opportunity or indicate that the asset is undervalued relative to its potential profitability.
Low Histogram Alert: Triggered when the histogram value falls below -50. This condition signals a strong negative divergence, indicating that the asset's profitability is lagging behind its market valuation. It may suggest a selling opportunity or indicate that the asset is overvalued relative to its profitability.
How to Use the Indicator:
Setup: Customize the SMA Length, Volume Indicator, and Realized Price Length based on your trading strategy and asset volatility. These parameters allow you to tailor the indicator to different market conditions and asset types.
Interpretation:
Blue Line (Normalized Relative Unrealized Profit): Monitor this line to gauge the profitability of holding the asset. Significant positive values suggest that the asset is currently in a profitable position relative to its purchase price.
Red Line (Normalized MVRV Ratio): Use this line to assess whether the asset is trading at a premium or discount relative to its cost basis. Higher values may indicate overvaluation, while lower values suggest undervaluation.
Green Bars (Histogram): Observe the histogram for deviations between RUP and MVRV Ratio. Large positive bars indicate that the asset's profitability is strong relative to its valuation, signaling potential buying opportunities. Large negative bars suggest that the asset's profitability is weak relative to its valuation, signaling potential selling opportunities.
Trading Strategy:
Bullish Conditions: When the histogram shows large positive values, it suggests that the asset’s profitability is strong compared to its valuation. Consider this as a potential buying signal, especially if the histogram remains consistently positive.
Bearish Conditions: When the histogram displays large negative values, it indicates that the asset’s profitability is weak compared to its valuation. This may signal a potential selling opportunity or caution, particularly if the histogram remains consistently negative.
Why This Indicator is Effective:
Integrated Metrics: Combining Relative Unrealized Profit and MVRV Ratio provides a comprehensive view of asset performance. This integration allows traders to evaluate both profitability and market valuation in one cohesive tool.
-5% Rule Investment Method ＠Ray_SP500NISASigns are displayed on the chart when the price drops more than 5% from the previous week. Otherwise, the previous week's change is displayed in a smaller size.
Buy if it falls 5% or more from the previous week, and do not buy if it does not fall. The sign is for the sole purpose of making it easier to understand.
This method is expected to be more effective and profitable than this method alone when used in conjunction with accumulation investing.
Details of the 5% Rule Investment Method
It is basically designed to be applied to the S&P 500.
The sign to follow is a simple rule: buy only when the S&P 500 has fallen 5% or more from the previous week. This makes this investment method easy for beginners.
Combined with accumulation: This method, when used in conjunction with accumulation, can be expected to produce higher returns than when used alone.
As an added bonus, we also provide a sign when the market rises 10% or more from the previous week, which is something to keep in mind.
