Swing-Based Volatility IndexSwing-Based Volatility Index
This indicator helps traders quickly determine whether the market has moved enough over the past few hours to justify scalping.
It measures the percentage price swing (high to low) over a configurable time window (e.g., last 4–8 hours) and compares it to a minimum threshold (e.g., 1%).
✅ If the percent move exceeds the threshold → Market is volatile enough to scalp (green background).
🚫 If it's below the threshold → Market is too quiet (red background).
Features:
Adjustable lookback period in hours
Custom threshold for volatility sensitivity
Automatically adapts to the current chart timeframe
This tool is ideal for scalpers and short-term traders who want to avoid entering trades in low-volatility environments.
Pesquisar nos scripts por "scalp"
MA Thrust Processor | QuantEdgeB⚡MA Thrust Processor | QuantEdgeB
🔭 What is the MA Thrust Processor?
The MA Thrust Processor (MTP) is a dynamic and modular market momentum engine that specializes in thrust-based signal analysis derived from smoothed moving averages. It’s engineered to model directional commitment, detect signal imbalances, and visualize structural momentum in a range of market conditions.
🧬 Think of MTP as a precision-engineered motion sensor — decoding strength, follow-through, and structural imbalance in real time — it detects force, direction, velocity, and alignment, adapting based on your preferred calculation model (Wave, Thrust, Z-Score, or Normalized) and signal mode (Impulse, Trend, or HA Candles).
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1. 🔧 System Core: Customizability and Processing Engine
📊 Moving Average Types
MA Thrust Processor supports a rich menu of 13+ moving average styles:
• Standard: SMA, EMA, WMA
• Advanced: HMA, LSMA, ALMA, JMA, TEMA, DEMA, SMMA
• Volume-Based: VWMA
• Adaptive Models: VIDYA (3 modes), FRAMA
💡 Each MA type acts as the backbone for signal smoothing and thrust deviation modeling, giving the user tight control over behavior and lag tradeoffs.
⚙️ Calculation Methods (MA Derivatives)
You choose how the core value is calculated:
1️⃣ 𝓦𝓪𝓿𝓮
• Sine-wave modeled oscillator
• Combines MA distance with standard deviation normalization
• Ideal for detecting divergences and cyclical structure
• Output includes center, smoothed line , and histogram.
2️⃣ 𝓣𝓱𝓻𝓾𝓼𝓽
• Calculates MA deviation vs. price and midpoint
• Captures aggressive directional pushes relative to range center
• Excellent for breakout/trend force analysis
3️⃣ 𝓩-𝓢𝓬𝓸𝓻𝓮
• Mean-reverting z-score over MA
• Expresses statistical distance from norm
• Used in reversion or probabilistic strategies
4️⃣ 𝓝𝓸𝓻𝓶𝓪𝓵𝓲𝔃𝓮𝓭
• Scales MA output to 0–1 (centered at 0.5)
• Tracks where the signal lies in its own relative range
• Great for flat vs. trending recognition
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2. 🧨 SIGNAL MODES – The Behavioral Core
The system supports 3 powerful signal modes that define how the thrust logic is interpreted and visualized.
1️⃣ 𝓘𝓶𝓹𝓾𝓵𝓼𝓮 Mode
🔥 Use Case: Breakouts, aggressive reversals, divergences
🔍 Logic:
• In Wave mode: compares Wave O (oscillator) and S (smoothed)
• In Thrust/Z-Score/Normalized: applies thresholds (static, SD, or percentile)
• Detects sharp departures or rejections from bounds
🎯 Ideal for:
• Scalp or event trades
• High-velocity moves
• Leading edge of trend or compression breaks
2️⃣ 𝓣𝓻𝓮𝓷𝓭 Mode
🧭 Use Case: Stable continuation and trend following
🔍 Logic:
• Signal triggers when value crosses a calculated midline or long-term average
• Thresholds: midline or 365-SMA of smoothed value
• Acts as a stable “bias direction” for trades
🎯 Ideal for:
• Swing trading
• Portfolio allocations
• Holding directional exposure longer
3️⃣ 𝓗𝓐 𝓒𝓪𝓷𝓭𝓵𝓮𝓼 Mode
🎨 Use Case: Visual clarity + phase detection
🔍 Logic:
• Converts signal to Heikin-Ashi candles
• Adds logic for momentum, reversal, continuation, or chop
• Highly discretionary and pattern-oriented
🎯 Ideal for:
• Visual traders
• Phase-based strategies
• Avoiding false positives in chop
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3. 📊 System Sensor Table (Strength Meter)
MA Thrust Processor includes a sophisticated sensor display with multi-layered insights.
🔁 Signal State
• Long ⟹ bullish conviction or thrust
• Short ⟹ bearish dominance or rejection
• Cash ⟹ neutrality or low conviction
Dynamically generated by logic mode and indicator thresholds.
📊 Strength Bars: Conviction + Potential
Strength output is never binary — instead, it’s expressed via:
1️⃣ Conviction Strength (when signal is active):
• Score from 0% to 100%
• Based on:
o Momentum velocity (Rate of Change)
o Distance from key thresholds
o Divergence signal (Wave mode)
o Flat signal detection (for Normalized)
2️⃣ Potential Strength (when signal = neutral):
• Displays both Bullish and Bearish readiness
• Interprets which side is loading pressure
• Helps traders spot “who has the edge” before breakout
👀 In Wave Mode, potential is calculated from oscillator vs. smoothed
👀 In Impulse/Trend, it blends distance + RoC + signal stability
🔸 HA Candle Phase (HA Mode Only)
When HA mode is active, strength bars are replaced with a live phase classifier:
• Momentum Up/Down: price above/below threshold + same color trend
• Reversal Up/Down: price above/below bounds, opposite signal color
• Continuation Up/Down: following a breakout/confirmation
• Chop: indecision zone
• Neutral: no clear trend
This turns HA mode into a narrative engine, expressing what’s happening, why, and what might come next.
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4. 🧠 Smart Auto-Configuration
Enabling Use Recommended Settings triggers optimized configurations:
• Pre-set thresholds (static, percentile, SD)
• Ideal lengths for each logic type
• Proper bounds scaling
• MA selections that match the logic
For example:
• Impulse + Thrust ⇒ shorter length + SD
• Trend + Z-Score ⇒ long mean-based
• Wave ⇒ balanced smoothing + SD blend
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5. 🧪 Summary of Use Cases
Each mode and calculation method within the MA Thrust Processor is tailored for specific trading styles and market conditions. Here’s how to think about their best applications:
🔹 Signal Modes
Impulse Mode is designed for speed and responsiveness. It excels in fast markets where breakouts or sharp reversals happen quickly. Ideal for scalpers, intraday traders, or anyone looking to catch momentum just as it ignites. It’s particularly effective around high-impact events like economic reports or news catalysts, as it picks up directional shifts rapidly.
Trend Mode focuses on longer-term, stable price action. It identifies directional bias using midline or average-based thresholds, making it best for swing traders and trend followers. Because of its stability, it filters out minor fluctuations and helps you stay in trades longer when the directional move is sustained.
HA Candles Mode is for traders who prefer a visual, phase-based approach. It smooths data using Heikin-Ashi logic and adds interpretive layers like "Momentum," "Reversal," or "Chop" to describe what’s happening structurally. This is excellent for discretionary traders, those who use price rhythm or structure, and those seeking cleaner entry points in noisy environments.
🔹 Calculation Methods
Wave is an oscillator-based model. It detects momentum swings and divergence between price and the smoothed oscillator. Great for spotting early reversals, pullback continuations, or cyclical rhythm patterns. In Impulse mode, it shows histogram shifts that reflect internal thrust dynamics.
Thrust quantifies directional pressure by comparing the signal’s distance from both the midpoint of price range and an SMA. This method is powerful when you want to assess how much true force is behind a move — especially useful during breakout scenarios or strong directional pushes.
Z-Score mode normalizes the signal to its statistical distance from the mean. This makes it ideal for mean reversion strategies or situations where price has deviated too far from historical behavior. Traders can look for exhaustion zones or pullback opportunities with greater confidence.
Normalized rescales the signal within a 0–1 range (centered at 0.5), helping traders understand where the price sits within its own context — whether it’s relatively extended or compressed. It’s great for range traders, flat market identification, or mapping gradual bias accumulation.
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Each mode and method has been thoughtfully designed to align with different strategy frameworks — and switching between them completely reconfigures the way the system operates, giving traders unmatched flexibility across timeframes and asset classes
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🧭 Conclusion
MA Thrust Processor isn’t just a tool - it’s a precision-calibrated thrust engine that gives market context form. It lets you define your logic, style, and MA behavior while delivering rich visual output and conviction-based strength insight.
Whether you're reading momentum waves, modeling thrust deviation, or interpreting candle structure, MTP adapts to your strategy.
🚀 From short-term scalps to long-term rotations, MTP delivers signal clarity with the quantitative conviction needed in modern markets.
📌 Trade with Statistical Precision | Powered by QuantEdgeB
🔹 Disclaimer: Past performance is not indicative of future results.
🔹 Strategic Advice: Always backtest, optimize, and align parameters with your trading objectives and risk tolerance before live trading.
Liquidity Volume Panel Liquidity Volume Panel – Precision Tool for Scalpers & Intraday Traders
This panel is designed to help traders quickly identify volume-driven moves, liquidity events, and fair-value zones. It combines classic volume analysis with enhanced tools like RVOL and VWAP deviation bands, making it ideal for scalping, momentum trading, and intraday strategies.
🔍 Included Features:
✅ Relative Volume (RVOL) Indicator
Displays current volume in relation to its 20-period average – excellent for spotting low-activity zones or high-pressure breakouts.
✅ Dynamic Volume Coloring & Spike Detection
Color-coded volume logic highlights normal, strong, and extremely high volume, with visual markers for volume spikes (>200% of average).
✅ VWAP with ±1σ & ±2σ Bands
Industry-standard deviation bands show overbought/oversold conditions and dynamic support/resistance based on volume-weighted pricing.
✅ Background Highlighting
Subtle orange background alerts you when volume surges beyond extreme levels – making liquidity clusters instantly recognizable.
Usage:
Use this panel as a decision-making tool for entries, reversals, or breakouts – especially in fast-moving markets.
Best used on lower timeframes for precision scalping.
Reversal rehersal v1This indicator was designed to identify potential market reversal zones using a combination of RSI thresholds (shooting range/falling range), candlestick patterns, and Fair Value Gaps (FVGs). By combining all these elements into one indicator, it allow for outputting high probability buy/sell signals for use by scalpers on low timeframes like 1-15 mins, for quick but small profits.
Note: that this has been mainly tested on DE40 index on the 1 min timeframe, and need to be adjusted to whichever timeframe and symbol you intend to use. Refer to the backtester feature for checking if this indicator may work for you.
The indicator use RSI ranges from two timeframes to highlight where momentum is building up. During these areas, it will look for certain candlestick patterns (Sweeps as the primary one) and check for existance of fair value gaps to further enhance the hitrate of the signal.
The logic for FVG detection was based on ©pmk07's work with MTF FVG tiny indicator. Several major changes was implemented though and incorporated into this indicator. Among these are:
Automatically adjustments of FVG boxes when mitigated partially and options to extend/cull boxes for performance and clarity.
Backtesting Table (Experimental):
This indicator also features an optional simplified table to review historical theoretical performance of signals, including win rate, profit/loss, and trade statistics. This does not take commision or slippage into consideration.
Usage Notes:
Setup:
1. Add the indicator to your chart.
2. Decide if you want to use Long or Short (or both).
3. If you're scalping on ie. 1 min time frame, make sure to set FVG's to higher timeframes (ie. 5, 15, 60).
4. Enable the 'Show backtest results' and adjust the 'Signals' og 'Take profit' and 'Stop loss' values until you are satisfied with the results.
Use:
1. Setup an alert based on either of the 'BullishShooting range' or 'BearishFalling range' alerts. This will draw your attention to watch for the possible setups.
2. Verify if there's a significant imbalance prior to the signal before taking the trade. Otherwise this may invalidate the setup.
3. Once a signal is shown on the graph (either Green arrow up for buys/Red arrow down for sells) - you should enter a trade with the given 'Take profit' and 'Stop loss' values.
4. (optional) Setup an alert for either the Strong/Weak signals. Which corresponds to when one of the arrows are printed.
Important: This is the way I use it myself, but use at own risk and remember to combine with other indicators for further confluence. Remember this is no crystal ball and I do not guarantee profitable results. The indicator merely show signals with high probability setups for scalping.
Multi-Timeframe Stochastic OverviewPurpose of the Multi-Timeframe Stochastic Indicator:
The Multi-Timeframe Stochastic Indicator provides a consolidated view of market conditions across multiple timeframes (M1, M5, M15, H1) based on the Stochastic Oscillator, a popular technical analysis tool. The main objective is to allow traders to quickly assess momentum and potential trend reversals across different timeframes on a single chart, helping to make informed trading decisions.
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General Purpose of Stochastic Oscillator:
The Stochastic Oscillator measures the relationship between a security's closing price and its price range over a given period, aiming to identify momentum, overbought/oversold levels, and potential reversal points. It works on the assumption that:
1. In uptrends, prices tend to close near their highs.
2. In downtrends, prices tend to close near their lows.
It consists of two lines:
%K (fast line): Represents the raw Stochastic value.
%D (slow line): A moving average of %K, used to smooth the data for better signals.
The indicator is generally used to:
Identify Overbought (price above 80% threshold) and Oversold (price below 20% threshold) conditions.
Spot Bullish and Bearish divergences for potential trend reversals.
Evaluate momentum strength within a trend.
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How This Multi-Timeframe Indicator Enhances Stochastic's Utility:
1. Multi-Timeframe Overview:
The indicator calculates Stochastic values for multiple timeframes (1-minute, 5-minute, 15-minute, and 1-hour) and displays their market conditions (e.g., Bullish, Bearish, Overbought, Oversold, or Indecision) in an organized table format.
This gives traders a broad perspective on short-term, mid-term, and long-term trends simultaneously.
2. Market Condition Summary:
Bullish: Indicates upward momentum (both %K and %D > 50%).
Bearish: Indicates downward momentum (both %K and %D < 50%).
Overbought: Suggests potential trend exhaustion (both %K and %D > 80%).
Oversold: Suggests a potential reversal to the upside (both %K and %D < 20%).
Indecision: Highlights uncertainty when %K and %D are on opposite sides of the 50% level.
3. Quick Decision-Making:
The color-coded table (green for Bullish/Overbought, red for Bearish/Oversold, orange for Indecision) allows traders to quickly identify dominant conditions and momentum alignment across timeframes, helping in trade confirmation.
4. Trend Analysis:
By observing alignment or divergence in market conditions across timeframes, traders can gauge the strength of a trend or anticipate reversals. For example:
If all timeframes show "Bullish," it suggests strong momentum.
If smaller timeframes are "Overbought" while larger ones are "Bearish," it warns of a possible pullback.
5. Customizable Parameters:
The indicator allows customization of Stochastic K, D, smoothing values, and overbought/oversold levels, enabling users to tailor the analysis to specific trading styles or market conditions.
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Use Cases:
1. Scalping:
A scalper can use lower timeframes (e.g., M1, M5) to find overbought/oversold zones for quick trades.
2. Swing Trading:
Swing traders can align smaller timeframes with higher ones (e.g., M15 and H1) to confirm momentum before entering a trade.
3. Trend Reversals:
Overbought or oversold conditions across all timeframes may indicate a major reversal point, helping traders plan exits or countertrend entries.
4. Trend Continuation:
Consistent bullish or bearish conditions across all timeframes confirm the continuation of a trend, providing confidence to hold positions.
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Summary:
This indicator enhances the traditional Stochastic Oscillator by giving a multi-timeframe snapshot of market momentum, overbought/oversold conditions, and trend direction. It enables traders to quickly assess the overall market state, spot opportunities, and make more informed trading decisions.
The Ultimate strategy by ATK**The Ultimate Strategy by ATK**
This comprehensive trading script is designed to enhance market analysis and trading strategies by integrating advanced tools for market structure, SMT (Separation and Divergence), Fair Value Gaps (FVG), and session-based insights. With customizable features, real-time alerts, and multi-timeframe functionality, this script caters to both scalpers and long-term traders seeking deeper market insights.
### 🔵 **Key Features**
**🔹 SMT (Divergence) Detection:**
- **High/Low SMT Analysis:** Compares highs and lows between a primary symbol (e.g., NQ1!) and a user-defined comparison symbol (e.g., ES1!).
- Automatically visualizes discrepancies with red (highs) and green (lows) lines.
- Supports two modes: real-time comparison and historical range checks.
- Alerts for detected SMT conditions.
- **Close Price SMT Analysis:** Compares closing prices to highlight divergences.
- Includes user-defined lookback periods and granular cycle-based SMT detection.
**🔹 PSP (Precision Swing Point):**
- Detects and highlights price divergences between symbols, such as NQ and ES, with multi-timeframe compatibility (15-minute, 1-hour, 4-hour).
- Integrated PSP table for visualizing divergences across timeframes.
- Configurable for first PSP detection only or all patterns without lower timeframe interference.
**🔹 Session Analysis with ASIA Session Insights:**
- Tracks high and low prices during the Asia session (1:00–7:00 AM Israel time).
- Draws horizontal lines marking session highs and lows.
- Alerts when prices cross session boundaries.
**🔹 FFMS (First Five-Minute Strategy):**
- Utilizes the high and low of the first five minutes of the trading day.
- Generates buy or sell signals based on retracement and breakout conditions around the previous day’s high/low.
- Real-time alerts for long and short opportunities.
**🔹 Multi-Timeframe Tables and Alerts:**
- Displays SMT and PSP conditions across multiple timeframes (1-minute, 15-minute, 1-hour, etc.).
- Alerts for SMT divergences and PSP patterns across selected time intervals.
**🔹 Visual Enhancements and Customizability:**
- Color-coded lines and labels for easy interpretation of SMT, PSP, and session levels.
- User-friendly input settings for symbol selection, session tracking, and cycle configuration.
- Flexible session range adjustments with macro and micro cycle segmentation (90-minute and 6-hour sessions).
### 🎯 **Use Cases**
- **Scalping:** Analyze short-term divergences with real-time SMT and PSP detection on lower timeframes.
- **Swing Trading:** Leverage session-based insights and SMT conditions to identify potential reversal points.
- **Multi-Symbol Analysis:** Compare key indices or assets (e.g., NQ vs. ES) for SMT-based opportunities.
This script is perfect for traders looking to combine advanced tools into a seamless, actionable trading system. Stay ahead of the markets with **The Ultimate Strategy by ATK**!
The Most Powerful TQQQ EMA Crossover Trend Trading StrategyTQQQ EMA Crossover Strategy Indicator
Meta Title: TQQQ EMA Crossover Strategy - Enhance Your Trading with Effective Signals
Meta Description: Discover the TQQQ EMA Crossover Strategy, designed to optimize trading decisions with fast and slow EMA crossovers. Learn how to effectively use this powerful indicator for better trading results.
Key Features
The TQQQ EMA Crossover Strategy is a powerful trading tool that utilizes Exponential Moving Averages (EMAs) to identify potential entry and exit points in the market. Key features of this indicator include:
**Fast and Slow EMAs:** The strategy incorporates two EMAs, allowing traders to capture short-term trends while filtering out market noise.
**Entry and Exit Signals:** Automated signals for entering and exiting trades based on EMA crossovers, enhancing decision-making efficiency.
**Customizable Parameters:** Users can adjust the lengths of the EMAs, as well as take profit and stop loss multipliers, tailoring the strategy to their trading style.
**Visual Indicators:** Clear visual plots of the EMAs and exit points on the chart for easy interpretation.
How It Works
The TQQQ EMA Crossover Strategy operates by calculating two EMAs: a fast EMA (default length of 20) and a slow EMA (default length of 50). The core concept is based on the crossover of these two moving averages:
- When the fast EMA crosses above the slow EMA, it generates a *buy signal*, indicating a potential upward trend.
- Conversely, when the fast EMA crosses below the slow EMA, it produces a *sell signal*, suggesting a potential downward trend.
This method allows traders to capitalize on momentum shifts in the market, providing timely signals for trade execution.
Trading Ideas and Insights
Traders can leverage the TQQQ EMA Crossover Strategy in various market conditions. Here are some insights:
**Scalping Opportunities:** The strategy is particularly effective for scalping in volatile markets, allowing traders to make quick profits on small price movements.
**Swing Trading:** Longer-term traders can use this strategy to identify significant trend reversals and capitalize on larger price swings.
**Risk Management:** By incorporating customizable stop loss and take profit levels, traders can manage their risk effectively while maximizing potential returns.
How Multiple Indicators Work Together
While this strategy primarily relies on EMAs, it can be enhanced by integrating additional indicators such as:
- **Relative Strength Index (RSI):** To confirm overbought or oversold conditions before entering trades.
- **Volume Indicators:** To validate breakout signals, ensuring that price movements are supported by sufficient trading volume.
Combining these indicators provides a more comprehensive view of market dynamics, increasing the reliability of trade signals generated by the EMA crossover.
Unique Aspects
What sets this indicator apart is its simplicity combined with effectiveness. The reliance on EMAs allows for smoother signals compared to traditional moving averages, reducing false signals often associated with choppy price action. Additionally, the ability to customize parameters ensures that traders can adapt the strategy to fit their unique trading styles and risk tolerance.
How to Use
To effectively utilize the TQQQ EMA Crossover Strategy:
1. **Add the Indicator:** Load the script onto your TradingView chart.
2. **Set Parameters:** Adjust the fast and slow EMA lengths according to your trading preferences.
3. **Monitor Signals:** Watch for crossover points; enter trades based on buy/sell signals generated by the indicator.
4. **Implement Risk Management:** Set your stop loss and take profit levels using the provided multipliers.
Regularly review your trading performance and adjust parameters as necessary to optimize results.
Customization
The TQQQ EMA Crossover Strategy allows for extensive customization:
- **EMA Lengths:** Change the default lengths of both fast and slow EMAs to suit different time frames or market conditions.
- **Take Profit/Stop Loss Multipliers:** Adjust these values to align with your risk management strategy. For instance, increasing the take profit multiplier may yield larger gains but could also increase exposure to market fluctuations.
This flexibility makes it suitable for various trading styles, from aggressive scalpers to conservative swing traders.
Conclusion
The TQQQ EMA Crossover Strategy is an effective tool for traders seeking an edge in their trading endeavors. By utilizing fast and slow EMAs, this indicator provides clear entry and exit signals while allowing for customization to fit individual trading strategies. Whether you are a scalper looking for quick profits or a swing trader aiming for larger moves, this indicator offers valuable insights into market trends.
Incorporate it into your TradingView toolkit today and elevate your trading performance!
Uptrick: SMA Pivot Marker### Uptrick: SMA Pivot Marker (SPM) — Extensive Guide
#### Introduction
The **Uptrick: SMA Pivot Marker (SPM)** is a sophisticated technical analysis tool crafted by Uptrick to help traders interpret market trends and identify key price levels where significant reversals might occur. By integrating the principles of the Simple Moving Average (SMA) with pivot point analysis, the SPM offers a comprehensive approach to understanding market dynamics. This extensive guide explores the purpose, functionality, and practical applications of the SPM, providing an in-depth analysis of its features, settings, and usage across various trading strategies.
#### Purpose of the SPM
The **SMA Pivot Marker (SPM)** aims to enhance trading strategies by offering a dual approach to market analysis:
1. **Trend Identification**:
- **Objective**: To discern the prevailing market direction and guide trading decisions based on the overall trend.
- **Method**: Utilizes the SMA to smooth out price fluctuations, providing a clearer picture of the trend. This helps traders align their trades with the market's direction, increasing the probability of successful trades.
2. **Pivot Point Detection**:
- **Objective**: To identify key levels where the price is likely to reverse, providing potential support and resistance zones.
- **Method**: Calculates and marks pivot highs and lows, which are significant price points where previous trends have reversed. These levels are used to predict future price movements and establish trading strategies.
3. **Trend Change Alerts**:
- **Objective**: To notify traders of potential shifts in market direction, enabling timely adjustments to trading positions.
- **Method**: Detects and highlights crossover and crossunder points of the smoothed line, indicating possible trend changes. This helps traders react promptly to changing market conditions.
#### Detailed Functionality
1. **Smoothing Line Calculation**:
- **Simple Moving Average (SMA)**:
- **Definition**: The SMA is a type of moving average that calculates the average of a security’s price over a specified number of periods. It smooths out price data to filter out short-term fluctuations and highlight the longer-term trend.
- **Calculation**: The SMA is computed by summing the closing prices of the chosen number of periods and then dividing by the number of periods. For example, a 20-period SMA adds the closing prices for the past 20 periods and divides by 20.
- **Purpose**: The SMA helps in identifying the direction of the trend. A rising SMA indicates an uptrend, while a falling SMA indicates a downtrend. This smoothing helps traders to avoid being misled by short-term price noise.
2. **Pivot Points Calculation**:
- **Pivot Highs and Lows**:
- **Definition**: Pivot points are significant price levels where a market trend is likely to reverse. A pivot high is the highest price over a certain period, surrounded by lower prices on both sides, while a pivot low is the lowest price surrounded by higher prices.
- **Calculation**: The SPM calculates pivot points based on a user-defined lookback period. For instance, if the lookback period is set to 3, the indicator will find the highest and lowest prices within the past 3 periods and mark these points.
- **Purpose**: Pivot points are used to identify potential support and resistance levels. Traders often use these levels to set entry and exit points, stop-loss orders, and to gauge market sentiment.
3. **Visualization**:
- **Smoothed Line Plot**:
- **Description**: The smoothed line, calculated using the SMA, is plotted on the chart to provide a visual representation of the trend. This line adjusts its color based on the trend direction, helping traders quickly assess the market condition.
- **Color Coding**: The smoothed line is colored green (upColor) when it is rising, indicating a bullish trend, and red (downColor) when it is falling, indicating a bearish trend. This color-coding helps traders visually differentiate between uptrends and downtrends.
- **Line Width**: The width of the line can be adjusted to improve visibility. A thicker line may be more noticeable, while a thinner line might provide a cleaner look on the chart.
- **Pivot Markers**:
- **Description**: Pivot highs and lows are marked on the chart with lines and labels. These markers help in visually identifying significant price levels.
- **Color and Labels**: Pivot highs are represented with green lines and labels ("H"), while pivot lows are marked with red lines and labels ("L"). This color scheme and labeling make it easy to distinguish between resistance (highs) and support (lows).
4. **Trend Change Detection**:
- **Trend Up**:
- **Detection**: The indicator identifies an upward trend change when the smoothed line crosses above its previous value. This crossover suggests a potential shift from a downtrend to an uptrend.
- **Usage**: Traders can interpret this signal as a potential buying opportunity or an indication to review and possibly adjust their trading positions to align with the new uptrend.
- **Trend Down**:
- **Detection**: A downward trend change is detected when the smoothed line crosses below its previous value. This crossunder indicates a potential shift from an uptrend to a downtrend.
- **Usage**: This signal can be used to consider selling opportunities or to reassess long positions in light of the emerging downtrend.
#### User Inputs
1. **Smoothing Period**:
- **Description**: This input determines the number of periods over which the SMA is calculated. It directly affects the smoothness of the line and the sensitivity of trend detection.
- **Range**: The smoothing period can be set to any integer value greater than or equal to 1. There is no specified upper limit, offering flexibility for various trading styles.
- **Default Value**: The default smoothing period is 20, which is a common choice for medium-term trend analysis.
- **Impact**: A longer smoothing period results in a smoother line, filtering out more noise and highlighting long-term trends. A shorter period makes the line more responsive to recent price changes, which can be useful for short-term trading strategies.
2. **Pivot Lookback**:
- **Description**: This input specifies the number of periods used to calculate the pivot highs and lows. It influences the sensitivity of pivot point detection and the relevance of the identified levels.
- **Range**: The pivot lookback period can be set to any integer value greater than or equal to 1, with no upper limit. Traders can adjust this parameter based on their trading timeframe and preferences.
- **Default Value**: The default lookback period is 3, which provides a balance between detecting significant pivots and avoiding excessive noise.
- **Impact**: A longer lookback period generates more stable pivot points, suitable for identifying long-term support and resistance levels. A shorter lookback period results in more frequent and recent pivot points, useful for intraday trading and quick responses to price changes.
#### Applications for Different Traders
1. **Trend Followers**:
- **Using the SMA**: Trend followers utilize the smoothed line to gauge the direction of the market. By aligning trades with the direction of the SMA, traders can capitalize on sustained trends and improve their chances of success.
- **Trend Change Alerts**: The trend change markers alert trend followers to potential shifts in market direction. These alerts help traders make timely decisions to enter or exit positions, ensuring they stay aligned with the prevailing trend.
2. **Reversal Traders**:
- **Pivot Points**: Reversal traders focus on pivot highs and lows to identify potential reversal points in the market. These points indicate where the market has previously reversed direction, providing potential entry and exit levels for trades.
- **Pivot Markers**: The visual markers for pivot highs and lows serve as clear signals for reversal traders. By monitoring these levels, traders can anticipate price reversals and plan their trades to exploit these opportunities.
3. **Swing Traders**:
- **Combining SMA and Pivot Points**: Swing traders can use the combination of the smoothed line and pivot points to identify medium-term trading opportunities. The smoothed line helps in understanding the broader trend, while pivot points provide specific levels for potential swings.
- **Trend Change Alerts**: Trend change markers help swing traders spot new swing opportunities as the market shifts direction. These markers provide potential entry points for swing trades and help traders adjust their strategies to capitalize on market movements.
4. **Scalpers**:
- **Short-Term Analysis**: Scalpers benefit from the short-term signals provided by the SPM. The smoothed line and pivot points offer insights into rapid price movements, while the trend change markers highlight quick trading opportunities.
- **Pivot Points**: For scalpers, pivot points are particularly useful in identifying key levels where price may reverse within a short time frame. By focusing on these levels, scalpers can plan trades with tight stop-loss orders and capitalize on quick price changes.
#### Implementation and Best Practices
1. **Setting Parameters**:
- **Smoothing Period**: Adjust the smoothing period according to your trading strategy and market conditions. For long-term analysis, use a longer period to filter out noise and highlight broader trends. For short-term trading, a shorter period provides more immediate insights into price movements.
- **Pivot Lookback**: Choose a lookback period that matches your trading timeframe. For intraday trading, a shorter lookback period offers quick identification of recent price levels. For swing trading or long-term strategies, a longer lookback period provides more stable pivot points.
2. **Combining with Other Indicators**:
- **Integration with Technical Tools**: The SPM can be used in conjunction with other technical indicators to enhance trading decisions. For instance, combining the
SPM with indicators like RSI (Relative Strength Index) or MACD (Moving Average Convergence Divergence) can provide additional confirmation for trend signals and pivot points.
- **Support and Resistance**: Integrate the SPM’s pivot points with other support and resistance levels to gain a comprehensive view of market conditions. This combined approach helps in identifying stronger levels of support and resistance, improving trade accuracy.
3. **Backtesting**:
- **Historical Performance**: Conduct backtesting with historical data to evaluate the effectiveness of the SPM. Analyze past performance to fine-tune the smoothing period and pivot lookback settings, ensuring they align with your trading style and market conditions.
- **Scenario Analysis**: Test the SPM under various market scenarios to understand its performance in different conditions. This analysis helps in assessing the reliability of the indicator and making necessary adjustments for diverse market environments.
4. **Customization**:
- **Visual Adjustments**: Customize the appearance of the smoothed line and pivot markers to enhance chart readability and match personal preferences. Clear visual representation of these elements improves the effectiveness of the indicator.
- **Alert Configuration**: Set up alerts for trend changes to receive timely notifications. Alerts help traders act quickly on potential market shifts without constant monitoring, allowing for more efficient trading decisions.
#### Conclusion
The **Uptrick: SMA Pivot Marker (SPM)** is a versatile and powerful technical analysis tool that combines the benefits of the Simple Moving Average with pivot point analysis. By providing insights into market trends, identifying key reversal points, and detecting trend changes, the SPM caters to a wide range of trading strategies, including trend following, reversal trading, swing trading, and scalping.
With its customizable inputs, visual markers, and trend change alerts, the SPM offers traders the flexibility to adapt the indicator to different market conditions and trading styles. Whether used independently or in conjunction with other technical tools, the SPM is designed to enhance trading decision-making and improve overall trading performance. By mastering the use of the SPM, traders can gain a valuable edge in navigating the complexities of financial markets and making more informed trading decisions.
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.
Pivot Points ++The Pivot Points is a classical indicator that aims to assess the Location in which a market is trading and infer hints about its directional movement. Its concept idea has been evolving along the XX century, tracing back to traders like Jesse Livermore, Nicholas Darvis, William O’Neil and Mark Minervini.
This is a Leading Indicator which computes a series of key levels that might act as Support and Resistance over the selected time frame period.
This version of the Pivot Points delivers a convenient way to visualize its information. It’s been designed for it to be useful to a variety of trading styles: from the ones that use it to detect reversal points, to the ones that gauge the market at a single glance.
HOW TO READ THE PIVOT POINTS
Pivot Points set a series of price levels which remain constant through the time period (which could be: daily, weekly, monthly, yearly or multi-yearly).
At the beginning of a new time period, it calculates the main Pivot Point Level (PP), and depending on the type, it can compute up to 5 Support Levels (S1 to S5) and 5 Resistance Levels (R1 to R5).
Being such a universal indicator, there exist many ways of reading the Pivot Levels. Now, let’s see some common uses of the indicator.
Warning: Please don’t rely on a single indicator to make your trading decisions, but rather integrate it into a coherent system combining it with complementary signals.
Support and Resistance : This is a straightforward approach. Each Pivot Level may act as Support or Resistance. For instance the level S1 initially behaves as Support. As price gets closer, one may observe that the level is being respected and price bounces around the level. Or in case it would get broken, then it would automatically shift its role into a Resistance Level.
Mood Gauge : One can quickly gauge the mood of the market by seeing where price stands in relation to the Main Pivot Point Level (PP). Above the Pivot point is generally interpreted as bullish, whilst standing below implies a bearish tone.
Stop Loss and Profit Levels : When entering on a trade, one can use the Pivot Levels to set the Stop Loss behind it, or set the Take Profit in an area surrounding it.
Agreement with Fibonacci Retracements or Expansions : One can combine the power of these 2 leading indicators in search for Agreement areas where to find both a significant Pivot Level and a Relevant Fibonacci Level.
Volume or Volatility Squeezes : Some traders focus on the Pivot Levels in combination with Volume or Volatility readings, in order to anticipate turning points or continuation legs.
WHY WOULD YOU BE INTERESTED IN THIS INDICATOR?
Pivot Points ++ has been designed to address the needs of dedicated traders. Let’s review its main features.
Display up to 9 sets of Pivot Points simultaneously
Long term view: As an analyst and as a trader, being able to display many sets of Pivot Points simultaneously is of great advantage when assessing long term views on the market.
Pivot Levels clearly Identified: Each set of Pivot Points get clearly identified with a prefaced letter indicating its time frame, i.e. Yearly Pivot Point appears as YPP and Monthly Pivot Resistance 1 appears as MR1 .
Minimalistic coloring: The Main Pivot Levels are highlighted in color to stand out, yet the intention of the indicator is to be as minimalistic and keep the chart as clean as possible.
Display Pivots as a Panel
Panel View: Display the Pivot Points’ information in the way that better suits your charting style. In addition to displaying the lines over the price chart, the indicator allows displaying the data on a Panel. The Panel view can be used together with the Line view, or it can be used in isolation.
Fully customizable: Its location, size and its design parameters can be customized through the Settings tab.
Common sense formatting: It displays a column for each of the selected time frames, and a row for each of the selected Pivot Levels. When a Pivot Level displays in colors, it means that price is currently trading above (green) or below (red) that level. Moreover, when the current price is trading just near the Pivot Level, the color shifts to Dark Red when it’s acting as a Resistance, and Dark Green when it acts as Support.
Keep your Chart Clean!
Disciplined traders keep their charts clean. One needs proper focus to trade in the zone.
Please check how the chart on the left looks compared to the one on the right. Both display exactly the same Pivot Points.
The chart on the left contributes to a more minimalistic display of information, as for when a trader wishes to quickly check where the price is trading in relation to the Pivot Points. Moreover, the chart on the right has the advantage to display clearly the Reversals and Price Reactions in relation to the Pivot Points. The decision is yours.
Show only Pivots Relevant to the Current Time Frame
The sets of Pivot Points belonging to time frames Below or Near the current Time Frame get hidden to prevent overcrowding the chart with lines. Nevertheless, this feature can be disabled through the Settings tab.
These are the preset Time Frames:
Intraday/Scalping: Those operating on time frames below 1H will be able to see the whole range of Pivot Levels.
1H: Traders operating on 1-Hour Charts display Pivots from Weekly and above. Daily Pivot Points get hidden.
4H: On 4-Hour Charts, Monthly Pivots and above get displayed. Weekly Pivot Points get hidden.
D: On Daily Charts, Quarterly Pivots and above get displayed. Monthly Pivot Points get hidden.
W: On Weekly Charts, Yearly Pivots and above get displayed. Quarterly Pivot Points get hidden.
M: On Monthly Charts, Tri-Yearly Pivots and above get displayed. Yearly and Bi-Yearly Pivot Points get hidden.
3M and 12M: Above Monthly Charts, only Decennial Pivots get displayed. All the rest get hidden.
Good Looking right off the box
It looks good: The indicator will look just fine on most of the charts. It displays well on dark themed charts and on light themed charts. No need to mess up with the coloring of the indicator for it to display properly.
Fully customizable: Nevertheless, you can easily override the defaults and customize the Colors and Line Styles for each Pivot Level.
Displays True on Heikin Ashi Charts
That’s good news for scalpers, because Pivot Points get computed correctly even when being displayed over Heiken Ashi charts.
SETTINGS
Now let’s dive into the settings of this indicator.
Display : It allows to enable/disable the display of the following:
Lines and Panel : Switch on/off the general view of the Lines over the chart or the Panel.
Pivot, R1 to R5, S1 to S5 : Select which Pivot Levels will be displayed.
Labels and Price : It applies only to Lines. Allows to select which information to display near the Pivot Level, and whether to place it right or left of the line.
Auto Hide Pivots from Near Time Frames : By default it hides the sets of Pivot Points from time frames near the current one. Disabling this one allows to display all the Pivot Points from higher time frames, regardless whether they are near.
Move Pivots to the Right : This selection moves all the current Pivot Points to the Right Hand Side of the Chart, in order to keep the main area of the chart clean of lines. This setting allows customizing the how far to the right from the last candle (Offset) and how wide to draw the levels (Width).
Pivots : It sets up the conditions for each of the 9 sets of Pivot Levels. It includes the following:
General checkmark : Allows displaying or hiding that set of Pivots.
Time Frame : Select the time frame for which the Pivot Point will be computed.
Type : Select the type of Pivot Point: Traditional, Fibonacci, Woodie, Classic, DM or Camarilla.
Lines : Enable/Disable the display of this Pivot as Lines over the chart.
Panel : Enable/Disable the display of this Pivot in the Panel.
Panel Display : It allows customizing the position of the Panel. It includes the following:
Vertical Position : Top, Middle or Bottom of the chart.
Horizontal Position : Left, Center or Right of the chart.
Size of the Panel : Auto, Huge, Large, Normal, Small or Tiny.
Parameters : It applies only to the Line View. It includes the following:
Pivots Back : By default the indicator only shows the current Pivot Levels, but it can display up to 10 past instances of each pivot.
Support and Resistance Price Reference : It allows to specify which price should it take into account to define a Pivot Level acting as Support or Resistance.
Support and Resistance % Area : It defines the size of the zone around each Pivot Level in which it acts as Support or Resistance.
Theming Panel : It applies only to the Panel View. It allows customizing every color used in the Panel.
Theming Pivot #1 to #9 : It applies only to the Line View. It includes the following:
Thickness : Customize the line thickness for all the lines within that set of Pivot Points.
Style : Customize the line style for all the lines within that set of Pivot Points. It can be drawn as a Solid, Dotted or Dashed line.
Colors : Customize the color for each Pivot Level.
Supply And DemandThis supply and demand indicator uses sessions, volume spikes, higher timeframe price action and other volume calculations to spot areas on the chart where price will likely react. From the 1 minute and below charts to the daily and up charts, you can get excellent levels for any timeframe.
Why Use Supply And Demand?
One of the safest ways to trade is to wait for price to enter an area of interest where price should react. When we play reversals off of these areas, you increase the likelihood that your trade will be profitable because there was previous price action that told you that the current level is one where price will react. So we look for reversals at or very near these levels to enter into scalp or swing trade positions and look to exit that position when price is at or near the next major supply and demand level.
How To Use
The strategy with this indicator is to wait for price action to reach the levels shown by this supply and demand indicator and then enter trades at these levels, looking for a reversal. The thicker lines and the lines that are from the highest timeframes will be the most important levels on the chart. There is a table on the chart that will help you identify what timeframe the levels are using, with the color of that line next to it for easy identification.
The default settings are designed for scalping the 1-5 minute charts, so there are more levels turned on than necessary if you are using higher timeframes than 5 minutes. If you are using higher timeframes, make sure to turn off some of the lower timeframe levels so that it doesn’t clog up your charts. On the daily timeframe and above, many of the levels are coded to not turn on so that you don’t have to turn them off manually, but be aware that you will need to adjust your charts to suit your preferences, especially if you are on anything above the 5 minute chart.
For scalping, wait for price to react from the supply and demand levels by showing wicks, struggling to break through or getting reversal candles at those levels. Ride those moves to the next major supply and demand area before taking profit. You may want to turn on sessions and some of the lower timeframe levels as well if there are big gaps on the chart that are not suitable for scalping.
For swing trading, you will want to turn some of the lower timeframe and session levels off. Leave it to only higher timeframe OHLC lines and volume spike levels. Then you can swing moves that reverse off of the supply and demand lines.
Customization
This indicator is fully customizable. You can turn on or off any of the levels as well as increase the number specific levels so your charts suit your preferences.
All of the levels used are color coded individually so you can easily tell which type of level it is and these colors can be changed within the settings to suit your preferences. These colors are also reflected in the line identification table that show you exactly which color each type of level is.
There are toggles for the line identification table and session identification table as well if you don’t want them on your chart.
Types Of Levels Used
This indicator uses 4 different types of levels that I have found to be extremely influential on the price action. They are: volume spikes, higher timeframe price action, country based trading sessions and the VWAP. All of these levels have proven to be very important levels in my testing and are very helpful in spotting reversal areas.
Volume Spikes
This indicator is looking for the largest volume spikes and plotting the levels where that volume came in. It checks for the highest volume spikes across multiple different lengths of candles so that you get recent levels as well as the most important levels in the past. There are volume spike calculations for your current chart timeframe, 1 hour charts, 4 hour charts, daily charts, weekly charts, and monthly charts. Each of these looks for volume spikes across various lengths of candles for each timeframe and is color coded so you can identify which levels are which easily. The weekly and monthly volume spike levels are fatter than the normal volume spike levels with a line width of 2 to signify their importance.
OHLC Higher Timeframe Candles
This script plots levels of higher timeframe candles since price usually reacts very strongly to these levels. The levels it will produce are the high, low, open and close of the most recent closed candle of each higher timeframe. You can adjust these to show as many or as few previous HTF candles as you would like. The higher timeframe candles available to use are as follows: 1 hour, 4 hour, daily, 3 day, weekly, monthly, quarterly and yearly. The monthly, quarterly and yearly levels are fatter than the normal levels with a line width of 2 to signify their importance.
Trading Sessions
Trading sessions are very important levels because the market makers of different parts of the world are typically positioning themselves at these specific times. The number of each trading session line can be adjusted to show more or less levels depending on your preference. When you adjust the number, it will affect all lines that are enabled for that specific session. The levels available for each Tokyo, London & New York session are as follows: session premarket open, regular session open, session close, and session high & low. The session close boxes are fatter than the others with a line width of 2 to signify its importance.
VWAP & Previous Close
We all know that the VWAP aka Volume Weighted Average Price is a very important level on any chart, so we included this level as a default. However, we decided to take this a step further and include the previous daily session’s VWAP closing price and plot those levels. These are extremely important levels that you should pay very close attention to, along with the other levels mentioned above. The market makers are hedging their positions based on these levels and you will typically see very strong reactions to these levels, especially in the first hour when the markets open up. The VWAP and previous session VWAP close levels can be turned on or off and the default for the number of previous VWAP session close prices is set to 5. These levels are fatter lines because they are extremely important, so make sure to pay attention to them!
Line & Session Identification Tables
There are two tables to help you identify what is on the chart. The first is a large table in the top right that shows you the color and type of each line that is turned on so you can easily identify which lines are which. The second table is a small one at the bottom center of the chart that tells you which trading session we are currently in and what color that session is on the chart. These tables can be turned on or off and you can also change where they are on the chart by adjusting them at the bottom of the settings page.
Markets
This Supply And Demand indicator can be used on any market with price data such as stocks, crypto, forex and futures.
Timeframes
This Supply And Demand indicator can be used on any timeframe, from the second charts all the way up to the yearly charts.
Strategy Developer ToolSolar Strategies: Strategy Developer Tool Complete Guide
This guide provides full explanation of the intended purpose of our script along with individual explanation of each input and the logic behind them coupled with general knowledge which we find useful in using our tool regarding elements of risk and strategy. Use this information wisely and understand we are not providing financial advise, this is a learning tool meant to help advance traders knowledge of the markets and their strategies which are formed as such.
Basics
Before getting into the specifics of how to use our strategy developer tool, it's important to understand a few basic fundamental things about it. The purpose of the tool is to allow the user to optimize a strategy through back testing with our strategy tracker and 50+ user inputs. The way you optimize your strategy depends on a couple things:
The state of the current and recent previous market.
The timeframe you trade on.
The types of trades you prefer. (swings, scalps, etc.)
How much risk you are willing to take on.
Risk Basics:
Going off the last bullet point on the list above, risk plays a huge part in how you optimize your strategy, with that being said here are a few general rules of risk as they relate to trades:
The more trades you take on, the more risk you are opening your strategy up to.
If done correctly, more trades will often result in more profit with slightly lower accuracy, and more risk.
The less trades you take on, the easier it is to have higher accuracy because ideally by rooting out the losing trades, you are left with fewer overall trades but mostly winning trades.
Less trades with higher accuracy often result in less profit but will 100% be less risky than the opposite. (More trades, less accurate, more profit, MORE RISK)
Input Basics:
More trades, less trades, more risk, less risk, what does this all mean as it relates to our tool?
The 50+ user inputs that allow you to optimize and create your strategy all effect when the script takes a trade.
Many of the inputs are essentially conditions. By changing these inputs, what you are doing is changing how specific the conditions need to be in order to take a trade.
This is how the inputs tie into the bullet point list above regarding risk and the number of trades you take on. By raising or lowering certain inputs, you are making the conditions more or less specific on when to trade.
Making conditions more specific will allow for less trades to be taken and will often result in a higher win rate, and less associated risk.
Making conditions less specific will allow for more trades to be taken and depending on the state of the market, could result in more profit being realized, but at the same time opens you up to more risk because you are stating a more general set of conditions in order to take a trade.
How does it work?
Our strategy developer tool is based on two simple factors in order to identify specific areas in the market deemed good for trade. They are as follows:
Directional momentum to identify when a move might happen.
A confirmation of the desired move.
Indicators:
The tool gets its information on these two factors from two custom built indicators which are hard coded into the script. These two indicators and the inputs which affect them can be found labeled with Indicator 1 or Indicator 2 in the tool's settings.
When the conditions are met based on the factors of both indicators, it then decides your stop losses and take profits using pivot points.
Indicator 1 is the momentum indicator.
Indicator 2 looks for confirmation of the move.
Hedges:
Since nothing is ever certain when trading, our tool also aims to minimize potential loss before it can happen by incorporating hedges when a signal prints in the opposite direction of the trade you are currently in.
To identify when to hedge, the candles will appear with the opposite color of your original trade. Candles, while in a long trade, appear as green and candles while in a short trade appear as red. While in a long trade the only time red candles will appear is when a hedge occurs and vice versa for shorts.
Example: If you just took a long trade based on a long signal that the script gave off, but a short signal prints off while you are in the long, you are directed to sell half your long position and enter that half into a short position. Since there is now more uncertainty in the long because of the short signal, minimizing your position size and having a smaller position in the opposite direction allows you to cover your bases if the trade moves against you. If it doesn’t move against you and ends up going long as originally intended, you are not to lose any money, likely a small profit or break even when all is said and done.
In order to give the hedges a greater change of hitting, the take profits are smaller than a normal trade, this way even if your hedge wasn’t necessary and the original trade does not move against you, it's likely that your hedge will still win, and you can just consider it a small scalp to further your profits on the original trade.
Doubles:
Besides minimizing loss, we also aim to maximize the potential gain. When a second signal prints off in the direction of the trade you are currently already in, the tool directs you to double your position size.
The signal for doubling is a label with “2x” written inside.
The logic here is similar to hedging but in the opposite way. Just as a signal in the opposite direction creates uncertainty, a signal in the same direction indicates more certainty hence doubling your position size.
Example: If you are currently in a long position and you get a second long signal, you would then double your existing position since two long signals printing off before the first one has a chance to play out indicates a stronger chance of movement in the intended direction of your trade.
User Inputs
Upon opening the tools settings tab, you will find all the user inputs which can then be modified to fit your desired strategy. In this section of our guides, you will find individual explanations and use cases for each input so you can correctly use them to your best advantage.
Strategy Tracker Table:
By ticking this input on, the strategy tracker table will be visible to the user. (Default is on)
Indicator 1 Greater Than: Long:
By ticking this input on, you are adding a condition the script will then look for in order to take a long. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall above a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too low because this would indicate prolonged downwards movement on the timeframe of the market being observed, making a long position riskier.
Indicator 1 Greater Than Input: Long:
This input correlates to the previous input directly above.
If Indicator 1 Greater Than: Long is ticked on, then one of the conditions in order to take a long position will be that the average of indicator 1 must fall above the level which you set in this input.
max level 100, min level 0
Indicator 1 Less Than: Long
By ticking this input on, you are adding a condition the script will then look for in order to take a long position. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall below a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too high, because this would indicate a prior significant upwards movement or trend on the timeframe of the market being observed.
Taking a long position while the average momentum is at higher levels exposes the risk of longing as the market has started to pull back from a peak or when the market has just reached a peak.
Indicator 1 Less Than Input: Long
This input correlates to the previous input directly above.
If Indicator 1 Less Than: Long is ticked on, then one of the conditions in order to take a long position will be that the average of indicator 1 must fall below the level which you set in this input.
max level 100, min level 0
Indicator 1 Greater Than: Short
By ticking this input on, you are adding a condition the script will then look for in order to take a short. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall above a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too low because this would indicate prolonged downwards movement or trend on the timeframe of the market being observed.
Taking a short position while the average momentum is at lower levels exposes the risk of shorting as the market has started to recover from a bottom or when the market has just reached a bottom.
Indicator 1 Greater Than Input: Short
This input correlates to the previous input directly above.
If Indicator 1 Greater Than: Short is ticked on, then one of the conditions in order to take a short position will be that the average of indicator 1 must fall above the level which you set in this input.
max level 100, min level 0
Indicator 1 Less Than: Short
By ticking this input on, you are adding a condition the script will then look for in order to take a short position. (Default is on)
This condition is that an average of indicator 1, which searches for momentum, must fall below a certain level, which is determined in the next input.
The purpose of this is to ensure that the average momentum is not too high, because this would indicate a prior significant upwards movement or trend on the timeframe of the market being observed.
Taking a short position while the average momentum is at higher levels exposes the risk of shorting as the market is currently in a strong uptrend.
Indicator 1 Less Than: Short
This input correlates to the previous input directly above.
If Indicator 1 Less Than: Short is ticked on, then one of the conditions in order to take a short position will be that the average of indicator 1 must fall below the level which you set in this input.
max level 100, min level 0
Summary of Input Group: Indicator 1 Greater/Less Than Long/Short
This grouping of inputs is best used as a filter of sorts, much like many of the other inputs which are also essentially filters of the market to find areas ripe for trade. Specifically, however, this group of inputs is especially powerful because if used correctly, it can specify a range for the average momentum to fall in when looking for either long or short trades. Think of it like a sweet spot where the average is not too high nor too low. In combination with the numerous other inputs which will shortly be explained, this sweet spot can be a great indication. Keep in mind that once you find a working range, this will not last forever. Conditions in the market are ever changing and as such your inputs, in this case the range the average momentum must fall in, will also need to change with the market conditions.
Bars Since Crossover:
This input simply describes a crossover of the momentum indicator (indicator 1) and its average.
In the category How does it work? Two main factors are discussed, the first being directional momentum to determine when an upwards move might happen. The crossover correlated to this input is the directional momentum as mentioned earlier.
As also mentioned in How does it work? The second factor is a confirmation of the desired upwards move. This confirmation is a crossover of the current price and indicator 2 which will be further addressed later on.
What's important to understand about the two key factors at play in regard to Bars Since Crossover is that this input is determining a condition which looks for a certain number of bars prior to the confirmation of indicator 2 which the crossover of momentum and its average has happened on indicator 1.
Example: Bars Since Crossover input is set to 10. This means that the crossover of momentum and its average from indicator 1 must be within 10 bars prior to the confirmation from indicator 2. If this happens then this condition is met for a long position.
Bars Since Crossunder:
This input simply describes a crossunder of the momentum indicator (indicator 1) and its average.
In the category How does it work? Two main factors are discussed, the first being directional momentum to determine when a downwards move might happen. The crossunder correlated to this input is the directional momentum as mentioned earlier.
As also mentioned in How does it work? The second factor is a confirmation of the desired downwards move. This confirmation is a crossunder of the current price and indicator 2 which will be further addressed later on.
What's important to understand about the two key factors at play in regard to Bars Since Crossunder is that this input is determining a condition which looks for a certain number of bars prior to the confirmation of indicator 2 which the crossunder of momentum and its average has happened on indicator 1.
Example: Bars Since Crossunder input is set to 10. This means that the crossunder of momentum and its average from indicator 1 must be within 10 bars prior to the confirmation from indicator 2. If this happens then this condition is met for a short position.
Summary of Input Group: Bars Since Crossover/Crossunder
These two inputs can have a large effect on the types of trades being taken and the risk which your strategy opens up to. The idea is that in order for the two key factors described in How does it work? to be correlated and therefore indicate a strong directional move, the two events must happen within a somewhat small period of time. If the period of time between the two events taking place is too large, then it's riskier for your strategy due to a delay in directional momentum and the necessary confirmation. It's important to note that this “small period of time” is relative to the security you're trading and the timeframe its being trades on. Small could mean 5 bars in some cases or 20 bars in others, this is why our custom back tester exists. So that the process of optimization on different securities and different timeframes is smooth and only requires adjustments to inputs then your own analysis of the back test results.
Indicator 1 Input Long
Defines how strong the upwards momentum needs to be in order to take a long position.
When optimizing your strategy, this input is likely to have some of the most effect on when the script takes a long position.
The reasoning for this is because the level you set for this input is the level which indicator 1 must close above following the crossover of its average.
Example: Indicator 1 Input Long set to 50, this means that when the momentum crosses over its average from indicator 1, upon the close of this crossover the momentum must be above the level 50 in order for this condition to be met to take a long position.
The higher the level, the stronger the upwards momentum must be, and therefore by using higher levels for this input, the script will search for stronger directional moves leaving less chance for the trade to move against you.
Indicator 1 Input Short
Defines how strong the downwards momentum needs to be in order to take a short position.
When optimizing your strategy, this input is likely to have some of the most effect on when the script takes a short position.
The reasoning for this is because the level you set for this input is the level which indicator 1 must close below following the crossunder of its average.
Example: Indicator 1 Input Short set to 40, this means that when the momentum crosses under its average from indicator 1, upon the close of this crossunder the momentum must be below the level 40 in order for this condition to be met to take a short position.
The lower the level, the stronger the downwards momentum must be, and therefore by using lower levels for this input, the script will search for stronger directional moves leaving less chance for the trade to move against you.
Summary of Input Group: Indicator 1 Input Long/Short
These two inputs are so important to your strategy because at the end of the day no matter how you set it up, it's still a momentum-based strategy. With that being said the level of momentum or the strength needed in order to take trades is of course going to be a key decider in the successfulness of the strategy. When optimizing these two inputs make sure to take into account what the overall market conditions are, meaning if it’s a bull market maybe make the momentum needed to take a long slightly less comparatively to the amount needed to take a short, in other words make long conditions less specific and short conditions more specific. Slight variations of this input can have very big effects, even changing it by 1 or 2 can make a major difference. In might even be good to consider starting optimization with these inputs and then work the rest of the strategy out from there. A lot could be said about these inputs and more docs will be added in order to further explain more strategy approaches revolving around them, for now don’t hesitate to ask any questions.
Indicator 2 Red
This input is used as a sort of chop filter at its base level, however if used correctly it can be a much broader filter for what areas of the market you want to trade in.
Indicator 2 shows as either red or green and is used as a confirmation when price crosses over it following the crossover of momentum and its average from indicator 1 to take a long position.
If ticked on, Indicator 2 Red states a condition in order for the script to take a long position. (Default is on)
The condition is that upon the crossover of the current price and Indicator 2, 10 bars ago indicator 2 must have been red.
The reason for this input is because the current color of indicator 2 upon the crossover must also be red. However, this condition is hard coded in and cannot be changed by any input.
This is because the type of trade being targeted is that of a type of reversal or continuation.
If indicator 2 showed green 10 bars ago and is currently red this would indicate that a top was just reached, and price is reversing downwards making this not a good area to take a long.
Another scenario if indicator 2 showed green 10 bars ago and is currently red is that there is currently a sideways trend going on or otherwise known as chop, also not an ideal area to take a long
However, if 10 bars ago indicator 2 was red and it's currently red this would indicate a more prolonged pullback.
If all conditions are met and we know that price has been pulling back, now we can enter a long with more knowledge pointing to price reversing upwards from a downwards trend, or continuing its upwards trend after a pullback.
Indicator 2 Green
This input is used as a sort of chop filter at its base level, however if used correctly it can be a much broader filter for what areas of the market you want to trade in.
Indicator 2 shows as either red or green and is used as a confirmation when price crosses under it following the crossunder of momentum and its average from indicator 1 to take a short position.
If ticked on, Indicator 2 Green states a condition in order for the script to take a short position. (Default is on)
The condition is that upon the crossunder of the current price and Indicator 2, 10 bars ago indicator 2 must have been green.
The reason for this input is because the current color of indicator 2 upon the crossunder must also be green. However, this condition is hard coded in and cannot be changed by any input.
This is because the type of trade being targeted is that of a type of reversal or continuation.
If indicator 2 showed red 10 bars ago and is currently green this would indicate that a bottom was just reached, and price is reversing upwards making this not a good area to take a short.
Another scenario if indicator 2 showed red 10 bars ago and is currently green is that there is currently a sideways trend going on or otherwise known as chop, also not an ideal area to take a short.
However, if 10 bars ago indicator 2 was green and it's currently green this would indicate a more prolonged upwards movement.
If all conditions are met and we know that price has been moving up, now we can enter a short with more knowledge pointing to price reversing downwards from an upwards trend, or continuing its downwards trend after a bounce up.
Summary of Input Group: Indicator 2 Red/Green
Similar to Indicator 1 Greater/Less Than Long/Short, the goal of these inputs is to try to get a picture of what the previous recent market has been doing. By getting this picture it's easier to find different areas of the market more ideal for trades. Different from Indicator 1 Greater/Less Than Long/Short though, Indicator 2 Red/Green is directly correlated to the price action in the market rather than the momentum. By switching these on or off you are setting more or less specific conditions for taking trades. Some markets require this extra condition to lower your risk in your strategy, however others may not.
Pivot Low
This input is used to define the number of bars the script will look back to grab a pivot low when taking a long position.
This pivot low is then used to set the stop loss when entering a long position.
This input is very important and optimizing it correctly can be extremely crucial to your strategies success.
The Strategy Developer tool uses a 1:1 risk to reward ratio when setting your first take profit point, so when the script looks back to get a pivot low based on the input you set, it will then set your first take profit at an equal ratio to the stop loss found from the pivot low.
The goal in optimizing this input is to give enough lookback to find real pivot points where price has reversed off of, but not to give too much lookback where its grabbing previous pivot points unrelated to the current move of momentum the script is giving a long signal from.
Consider the type of trades you're looking for in your strategy and what timeframe you are trying to trade on.
Longer swing trades which aim to catch bigger moves in the market, possibly on higher time frames, may require a further lookback in order to get your take profits in the correct positioning to catch the desired move, and not exit early before the trade has fully played out.
Shorter scalp trades may aim to catch smaller moves and therefore you don’t want to allow for too much risk by having a large stop loss and large take profits as a result.
Pivot Low 2
Pivot low 2 can be thought of as a backup lookback in order to get the correct pivot low.
In an input which will be discussed shortly called Pivot Low Minimum, you can set a minimum percentage for your pivot low to be, if the pivot low does not meet the minimum then the script will look to Pivot Low 2’s input to use as a bar lookback in order to get the correct pivot low.
This input is used because you might find a Pivot Low input that works well for the majority of the trades in your back tested strategy, however, there will always be outliers and when this Pivot Low input falls short of getting the correct level to put your stop losses at, Pivot Low 2 is used.
Pivot Low 2’s input should always be higher than Pivot Low’s input, that way you can allow the script to look back further in time to find the correct level when the minimum is not met.
Pivot High
This input is used to define the number of bars the script will look back to grab a pivot high when taking a short position.
This pivot high is then used to set the stop loss when entering a short position.
This input is very important and optimizing it correctly can be extremely crucial to your strategies success.
The Strategy Developer tool uses a 1:1 risk to reward ratio when setting your first take profit point, so when the script looks back to get a pivot high based on the input you set, it will then set your first take profit at an equal ratio to the stop loss found from the pivot high.
The goal in optimizing this input is to give enough lookback to find real pivot points where price has reversed off of, but not to give too much lookback where its grabbing previous pivot points unrelated to the current move of momentum the script is giving a short signal from.
Consider the type of trades you're looking for in your strategy and what timeframe you are trying to trade on.
Longer swing trades which aim to catch bigger moves in the market, possibly on higher time frames, may require a further lookback in order to get your take profits in the correct positioning to catch the desired move, and not exit early before the trade has fully played out.
Shorter scalp trades may aim to catch smaller moves and therefore you don’t want to allow for too much risk by having a large stop loss and large take profits as a result.
Pivot High 2
Pivot high 2 can be thought of as a backup lookback in order to get the correct pivot high.
In an input which will be discussed shortly called Pivot High Minimum, you can set a minimum percentage for your pivot high to be, if the pivot high does not meet the minimum then the script will look to Pivot High 2’s input to use as a bar lookback in order to get the correct pivot high.
This input is used because you might find a Pivot High input that works well for the majority of the trades in your back tested strategy, however, there will always be outliers and when this Pivot High input falls short of getting the correct level to put your stop losses at, Pivot High 2 is used.
Pivot High 2’s input should always be higher than Pivot High’s input, that way you can allow the script to look back further in time to find the correct level when the minimum is not met.
Pivot Low Risk Tolerance
This input is very important in managing the risk associated with your strategy.
Pivot Low Risk Tolerance is defining a maximum percentage the pivot low can be away from your entry.
Since the pivot low that’s found is assigned to your stop loss and directly affects the placement of your take profits when taking a long position, making sure the pivot low isn’t too far down is crucial.
Depending on the types of trades you're aiming to take, the timeframe you choose to trade on, and the leverage you use in your strategy, you may want to assign a higher risk tolerance or a lower one.
Example: Pivot Low Risk Tolerance input set to 3, this means that when all other conditions are met in order to take a long position, when searching for the pivot low in order to set a stop loss, if the script finds the pivot low is greater than 3% away from the entry point, it will not take the trade.
Pivot High Risk Tolerance
This input is very important in managing the risk associated with your strategy.
Pivot High Risk Tolerance is defining a maximum percentage the pivot high can be away from your entry.
Since the pivot high that’s found is assigned to your stop loss and directly affects the placement of your take profits when taking a short position, making sure the pivot high isn’t too far up is crucial.
Depending on the types of trades you're aiming to take, the timeframe you choose to trade on, and the leverage you use in your strategy, you may want to assign a higher risk tolerance or a lower one.
Example: Pivot High Risk Tolerance input set to 3, this means that when all other conditions are met in order to take a short position, when searching for the pivot high in order to set a stop loss, if the script finds the pivot high is greater than 3% away from the entry point, it will not take the trade.
Pivot Low Minimum
Sometimes when searching for the pivot low, the script's defined lookback may not be enough to find the proper pivot point.
This can cause improper placement of stop losses and take profits and may cause trades to be exited early before they can fully play out in your favor.
Pivot Low Minimum is an input used to combat this problem, when the script finds a pivot low that does not meet the minimum percentage away from the entry point, it will then turn to Pivot Low 2 input in order to gain a further lookback and grab the correct pivot point to set your stop loss and take profits with.
When reading and setting this input, understand that setting it to 1 means there is no minimum, setting it to 0.9 would mean the minimum is a 10% difference between the pivot low and your entry point.
Think of it in terms of decimals and their equivalent percentage, 0.1 is equal to 10%, 0.01 is equal to 1%.
Whatever percentage you want to set for a minimum, convert it to a decimal, then simply subtract it from 1.
Example: Say you desire a 1.5% minimum pivot low and as a result an equivalent stop loss of 1.5% below your long entry and furthermore a take profit 1.5% above your long entry since the script uses a 1:1 ratio. Converting 1.5% to a decimal would give you 0.015, then subtracting it from 1 would give you 0.985, this would be the input assigned to Pivot Low Minimum.
Pivot High Minimum
Sometimes when searching for the pivot high, the script's defined lookback may not be enough to find the proper pivot point.
This can cause improper placement of stop losses and take profits and may cause trades to be exited early before they can fully play out in your favor.
Pivot High Minimum is an input used to combat this problem, when the script finds a pivot high that does not meet the minimum percentage away from the entry point, it will then turn to Pivot High 2 input in order to gain a further lookback and grab the correct pivot point to set your stop loss and take profits with.
When reading and setting this input, understand that setting it to 1 means there is no minimum, setting it to 0.9 would mean the minimum is a 10% difference between the pivot high and your entry point.
Think of it in terms of decimals and their equivalent percentage, 0.1 is equal to 10%, 0.01 is equal to 1%.
Whatever percentage you want to set for a minimum, convert it to a decimal, then simply subtract it from 1.
Example: Say you desire a 1.5% minimum pivot high and as a result an equivalent stop loss of 1.5% above your short entry and furthermore a take profit 1.5% below your short entry since the script uses a 1:1 ratio. Converting 1.5% to a decimal would give you 0.015, then subtracting it from 1 would give you 0.985, this would be the input assigned to Pivot High Minimum.
Summary of Input Group: Pivot Low/High - Pivot Low/High 2 – Pivot Low/High Risk Tolerance – Pivot Low/High Minimum
The first key takeaway from all these inputs is that your stop losses and take profits will be directly affected through optimizing any of them. The second key takeaway is that these inputs are crucial in managing the risk in your strategy, and while this has been said many times throughout the guide for various inputs, when it comes to stop losses and take profits it is especially true. Having a stop loss which is too high opens up the possibility for much bigger losses, and as a result your take profits will also be too high, minimizing the chance of any of them being hit. Having a stop loss which is too low increases the chance that your trade will get stopped out preemptively, before the trade can mature and move in your favor because remember that trades will not always move immediately in the intended direction, a good amount of patience is often involved in creating consistent successful trades and a successful strategy as such. On the same note, too low of a stop loss could also mean you are missing out on unrealized profit since your take profits are a direct result of the stop loss which is found. When optimizing your pivot low/high risk tolerance, think not about how much you are willing to lose on a single trade, but how much your portfolio can actually afford to lose not just on a single trade but multiple trades, sometimes even in a row. Obviously, the goal in creating a strategy is that you avoid losing trades and especially multiple in a row, however, there are many things that can’t be accounted for. The only way to manage this unaccounted risk is to use proper risk management and not open yourself up to big losses even in the worst most unlikely scenarios. Even if you don’t lose multiple trades in a row, ask yourself, could I afford to lose multiple trades with the risk tolerance I have set if everything were to go to $hit, (hopefully it would not), but in the off chance it did, instead of beating yourself up over what you did wrong, you’ll be patting yourself on the back for what you did right.
TP2-4 Long Placement
The first thing to understand about the take profit placement is that our system of stop losses and take profits uses a 1:1 risk to reward ratio for the first stop loss and first take profit.
This means that if your stop loss falls 2% below your long entry, your first take profit will be 2% above your long entry, hence 1:1.
As for take profits 2-4, they are just extensions of that ratio. This means that if TP2 Long Placement is set to 1.5, the ratio for your second take profit is 1:1.5.
Using the same percentage from the second bullet point being 2%, we can now gather that with a 1:1.5 ratio our second take profit would be at 3% above our long entry.
The same applies for the rest of the take profits, meaning whatever the take profit is set at regardless of which one, apply that number to the second placeholder of the ratio.
Example: First stop loss falls 2% below long entry. TP2 Long Placement input set to 1.5; risk to reward ratio is 1:1.5; corresponding percentage would be a 3% gain. TP3 Long Placement input set to 2; risk to reward ratio is 1:2; corresponding percentage would be a 4% gain. TP4 Long Placement input set to 2.5; risk to reward ratio is 1:2.5; corresponding percentage would be a 5% gain.
The next key thing to understand about the trailing take profits system is the position size being sold at each take profit and therefore how the strategy tracker calculates your strategy's profit.
At the first take profit, 50% of your position is being calculated as sold, locking in good profits off the bat.
At TP2, 20% of your position is being calculated as sold, leaving a remaining 30% open to gain more profit.
At TP3, another 20% of your position is being calculated as sold, leaving 10% to collect any additional possible gains.
At TP4 the remaining 10% of your position is sold and the trade will be fully closed out.
SL2-4 Long Placement
Our system of trailing stop losses is completely similar to that of our trailing take profits.
Just like the trailing take profits, the inputs for stop losses 2-4 are also used as the second placeholders in the risk to reward ratio.
This may be confusing since generally stop losses are associated with a loss on your position, however, the only stop loss which results in a loss on your position is the first one, not stop losses 2-4.
This is because once your first take profit is hit on your long, your stop loss will automatically move up to the price equivalent to the ratio which you set using these inputs that lies in profit.
Example: Since your first take profit will always be at a 1:1 risk to reward ratio with your stop loss, your second take profit could be at a 1:0.8 ratio. So, to clarify, once your first take profit is hit at a 1:1, your original first stop loss will now be moved up in profits to just below your first take profit at a 1:0.8 risk to reward ratio. This only happens AFTER the first take profit is hit.
For stop losses 3 and 4, the same logic is true, once TP2 is hit, your second stop loss will now be moved up to the placement of SL3 which will fall somewhere below TP2. Once TP3 is hit, your third stop loss will now be moved up to the placement of SL4 which will fall somewhere below TP3. If stop loss 4 does not get hit, then the only thing left to happen is for TP4 to hit and the trade will fully close out.
The one major difference between our system of trailing stop losses and take profits is that no matter what stop loss is hit, the entire remainder of your position will be calculated as sold.
So, if your first take profit hits and sells 50% of your long position, but the trade does not continue upwards and moves down to your second stop loss, the remaining 50% of your position will be calculated as sold.
The same applies to SL3 and SL4, so at SL3 the remaining 30% of your position will be calculated as sold, and at SL4 the remaining 10% will be calculated as sold.
Your trailing stop loss placement is dependent on what types of trades you desire. For shorter scalps on smaller timeframes, it's recommended to place each stop loss just below each corresponding take profit for long trades.
This way you leave just enough room for the trade to continue upwards if there is enough momentum, but you don’t open yourself up to losing your unrealized profit if it does not make this continuation.
If you desire longer swing trades on higher timeframes, it might be a good idea to leave more room in between the take profit and corresponding stop loss.
This way you leave more room for the trade to mature and move in your favor since when trading longer moves, often they will not shoot straight up but rather have a series of small pullbacks throughout the more general upwards trend.
Note that when a long trade is first entered the only stop loss and take profit in play are your original stop loss found by the pivot low which would result in a loss, and the first take profit at a 1:1 risk to reward ratio from that pivot low.
TP2-4 Short Placement
The first thing to understand about the take profit placement is that our system of stop losses and take profits uses a 1:1 risk to reward ratio for the first stop loss and first take profit.
This means that if your stop loss falls 2% above your short entry, your first take profit will be 2% below your short entry, hence, 1:1.
As for take profits 2-4, they are just extensions of that ratio. This means that if TP2 Short Placement is set to 1.5, the ratio for your second take profit is 1:1.5.
Using the same percentage from the second bullet point being 2%, we can now gather that with a 1:1.5 ratio our second take profit would be at 3% below our short entry.
The same applies for the rest of the take profits, meaning whatever the take profit is set at regardless of which one, apply that number to the second placeholder of the ratio.
Example: First stop loss falls 2% above short entry. TP2 Short Placement input set to 1.5; risk to reward ratio is 1:1.5; corresponding percentage would be a 3% gain. TP3 Short Placement input set to 2; risk to reward ratio is 1:2; corresponding percentage would be a 4% gain. TP4 Short Placement input set to 2.5; risk to reward ratio is 1:2.5; corresponding percentage would be a 5% gain.
The next key thing to understand about the trailing take profits system is the position size being sold at each take profit and therefore how the strategy tracker calculates your strategy's profit.
At the first take profit, 50% of your position is being calculated as sold, locking in good profits off the bat.
At TP2, 20% of your position is being calculated as sold, leaving a remaining 30% open to gain more profit.
At TP3, another 20% of your position is being calculated as sold, leaving 10% to collect any additional possible gains.
At TP4 the remaining 10% of your position is sold and the trade will be fully closed out.
SL2-4 Short Placement
Our system of trailing stop losses is completely similar to that of our trailing take profits.
Just like the trailing take profits, the inputs for stop losses 2-4 are also used as the second placeholders in the risk to reward ratio.
This may be confusing since generally stop losses are associated with a loss on your position, however, the only stop loss which results in a loss on your position is the first one, not stop losses 2-4.
This is because once your first take profit is hit on your short, your stop loss will automatically move down to the price equivalent to the ratio which you set using these inputs that lies in profit.
Example: Since your first take profit will always be at a 1:1 risk to reward ratio with your stop loss, your second take profit could be at a 1:0.8 ratio. So, to clarify, once your first take profit is hit at a 1:1, your original first stop loss will now be moved down in profits to just below your first take profit at a 1:0.8 risk to reward ratio. This only happens AFTER the first take profit is hit.
For stop losses 3 and 4, the same logic is true, once TP2 is hit, your second stop loss will now be moved down to the placement of SL3 which will fall somewhere above TP2. Once TP3 is hit, your third stop loss will now be moved down to the placement of SL4 which will fall somewhere above TP3. If stop loss 4 does not get hit, then the only thing left to happen is for TP4 to hit and the trade will fully close out.
The one major difference between our system of trailing stop losses and take profits is that no matter what stop loss is hit, the entire remainder of your position will be calculated as sold.
So, if your first take profit hits and sells 50% of your short position, but the trade does not continue downwards and moves up to your second stop loss, the remaining 50% of your position will be calculated as sold.
The same applies to SL3 and SL4, so at SL3 the remaining 30% of your position will be calculated as sold, and at SL4 the remaining 10% will be calculated as sold.
Your trailing stop loss placement is dependent on what types of trades you desire. For shorter scalps on smaller timeframes, it's recommended to place each stop loss just above each corresponding take profit for short trades.
This way you leave just enough room for the trade to continue downwards if there is enough momentum, but you don’t open yourself up to losing your unrealized profit if it does not make this continuation.
If you desire longer swing trades on higher timeframes, it might be a good idea to leave more room in between the take profit and corresponding stop loss.
This way you leave more room for the trade to mature and move in your favor since when trading longer moves, often they will not shoot straight down but rather have a series of small bounces throughout the more general downwards trend.
Note that when a short trade is first entered the only stop loss and take profit in play are your original stop loss found by the pivot high which would result in a loss, and the first take profit at a 1:1 risk to reward ratio from that pivot high.
Summary of Take Profit/Stop Loss Placement:
Correctly placed take profits and stop losses are essential in having a successful strategy and proper risk management. With that being said there are also many ways in which to use this system. Deciding how to set them up is really just a matter of determining the trading style you aim to succeed with. Once this has been determined, the placement of take profits and stop losses should be easier to configure. However, if there is any confusion on either of these topics as the ratios and corresponding TP/SL can get confusing, please do not hesitate to ask further questions in our discord!
Leverage Long
Leverage Long input simply defines the leverage used in your long positions, and is used in calculating the profit in Strategy Tracker
A rundown of risk associated with using leverage will not be given here since it should assume that if you're using leverage, you should already understand the risks.
If you are not using any leverage, then set Leverage Long input to 1.
Long Position Size
This input defines the position size you are using in your long trades.
This input is also used in calculating profit in Strategy Tracker.
Long Hedge Position Size
This input is used to define the position size of long hedge positions.
This input is also used in calculating profit in Strategy Tracker.
Important: Your Long Hedge Position Size should always be half of your Long Position Size for accurate profit calculation.
Double Long Position Size
This input is used to define the position size when in a double long.
This input is also used in calculating profit in Strategy Tracker
Important: Your Double Long Position Size should always be double your Long Position Size for accurate profit calculation.
Short Position Size
This input defines the position size you are using in your short trades.
This input is also used in calculating profit in Strategy Tracker.
Short Hedge Position Size
This input is used to define the position size of short hedge positions.
This input is also used in calculating profit in Strategy Tracker.
Important: Your Short Hedge Position Size should always be half of your Short Position Size for accurate profit calculation.
Double Short Position Size
This input is used to define the position size when in a double short.
This input is also used in calculating profit in Strategy Tracker
Important: Your Double Short Position Size should always be double your Short Position Size for accurate profit calculation.
A Message From the Developer PLEASE READ!!!
If you have made it this far in the guide, I applaud you and thank you for sticking with it as I know there is a lot of information here! This is not an exaggeration when I say there are hundreds of millions of possible variations that could be applied throughout all the inputs which is why I much prefer to call this a tool rather than an algorithm. Algorithm is a loaded word in my opinion as it comes with an implication of guarantee in the trades being made. This is not meant to discourage anybody from taking trades based off the tool which is also why I provided the option for automated alerts which through third party software can turn into automated trades; if you have the confidence in your strategy by all means I encourage you to trade it, automated or not. Just please understand that it's highly recommended to also apply your own knowledge and analysis before taking a trade as historical back testing data has its limitations and cannot always account for current market conditions. The real applicability does not fall in what the back tester window is saying you would have made or how accurate your strategy would have been, it's within the sheer number of markets and scenarios this tool can be used in and the information you can get which a human just can’t comprehend all at once; its literally endless. I urge all of you to be creative and think outside the box about what you can do with such a powerful tool at your fingertips. After all this is the reason why so many inputs were provided. Another main goal of this project was to give users a better understanding of risk management. It can be hard to manage your risk when it’s all kept in your head, but when you can modify your strategy to better manage your risk by simply optimizing a few inputs, it’s a lot easier to comprehend and actually apply when trading. The last thing I want to say is have fun working through the possible learning curve in using this tool, it may be a process but enjoy it because the one thing I can guarantee is that you will come out the other side a better trader than before!
OBV Bottoms and Tops by Richie RichHello and Welcome to Trading With Richie Rich's Indicator Suite!
This Indicator is known as OBV Bottoms and Tops Finder because it has been consistent with the bottoms and tops to the extreme levels possible with the help of On Balance Volume (OBV) which can be used for scalping as well Investing.
How to Use OBV Bottoms and Tops Finder Indicator?
General Idea - Everyone in trading is familiar with On Balance Volume (OBV) and it is mainly used to calculate Divergences and catch breakouts and breakdowns. But is it possible to catch the bottom or top price of an asset with the help of On Balance Volume? Typically with the normal OBV it is not but with this one.... Yes, it is Now! We'll learn it soon enough.
- After getting access to the indicator you must apply it to your chart and Favorite it so that it becomes handy all the time.
- There are 2 line namely,
1. The Overbought Line (color coded Red) - which helps you to know when the asset has been highly overbought in short term and is due for a correction short term.
2. The Oversold Line (color coded Green) - this helps you know when the price of asset has been really highly oversold and is highly due for a bounce to its main interest
levels.
- Long / Buy Setup - Wait for the main oscillator to fall back below the oversold level ,i.e, -1 and wait for the candle close to always verify it. Once it is in the region of below -1 you should either start to DCA (Dollar Cost Averaging) in a Trade or if you believe the asset is due for a more dump in coming minutes, wait for the indicator to bottom out in the -1.2 to -1.5 region, which will be your ultimate bottom to long. Once you have entered the trade which will basically (might be) the bottom for short term - mid term you should then start focusing on your Risk Reward Ratio. For Scalpers, in my opinion it is enough to target 1-2% on each trade and then flip and rotate.
If you are with a large sized portfolio and are basically an investor rather than a Trader. You should switch the chart to 4hour chart and apply the indicator and just basically wait for the Trade God and the Extreme Top and Bottom Finder to completely bottom out. Once they both are at there lowest you might have entered the Bottom once again at start focusing on your Risk Reward Ratio. After Bottoming out on a 4hour chart, i have backtested to find out that the asset price usually rises to 10-20% a minimum that will be your Take Profits Zone!
- Short / Sell Setup - Wait for the main oscillator to rise above below the overbought level ,i.e, +1 and wait for the candle close to always verify it. Once it is in the region of above +1 you should either start to DCA (Dollar Cost Averaging) in a Trade or if you believe the asset is due for a more pump in coming minutes, wait for the indicator to Top out in the +1.2 to +1.5 region, which will be your ultimate Top to short. Once you have entered the trade which will basically (might be) the Top for short term - mid term should then start focusing on your Risk Reward Ratio. For Scalpers, in my opinion it is enough to target 1-2% on each trade and then flip and rotate.
If you are with a large sized portfolio switch to low leverage mode and switch the chart to 4hour chart and apply the indicator and just basically wait for the Trade God and the Extreme Top and Bottom Finder to completely Top out or show Bearish Divergence after topping out once. Once they both are at there highest or have started to show bearish divergences you might have entered the Top once again at start focusing on your Risk Reward Ratio. After Topping out on a 4hour chart, i have backtested to find out that the asset price usually fall up to 10-20% a minimum that will be your Take Profits Zone!
This really comes in handy when paired with my Trade God/Scalp God and the Extreme Top and Bottom Finder indicator Setup!
All the above examples are backtested and can be checked via applying the indicator on the chart!
Extreme Bottom and Top Finder - By Richie RichHello and Welcome to Trading With Richie Rich's Indicator Suite!
This Indicator is known as Extreme Top and Bottom Finder because it has been consistent with the bottoms and tops to the extreme levels possible which can be used for scalping as well Investing.
How to Use Extreme Top and Bottom Finder Indicator?
- After getting access to the indicator you must apply it to your chart and Favorite it so that it becomes handy all the time.
- There are 2 line namely,
1. The Overbought Line (color coded Red) - which helps you to know when the asset has been highly overbought in short term and is due for a correction short term.
2. The Oversold Line (color coded Green) - this helps you know when the price of asset has been really highly oversold and is highly due for a bounce to its main interest
levels.
- Long / Buy Setup - Wait for the main oscillator to fall back below the oversold level ,i.e, -80 and wait for the candle close to always verify it. Once it is in the region of below 20s you should either start to DCA (Dollar Cost Averaging) in a Trade or if you believe the asset is due for a more dump in coming minutes, wait for the indicator to bottom out in the -83 to -85 region, which will be your ultimate bottom to long. Once you have entered the trade which will basically (might be) the bottom for short term - mid term you should then start focusing on your Risk Reward Ratio. For Scalpers, in my opinion it is enough to target 1-2% on each trade and then flip and rotate.
If you are with a large sized portfolio and are basically an investor rather than a Trader. You should switch the chart to 4hour chart and apply the indicator and just basically wait for the Trade God and the Extreme Top and Bottom Finder to completely bottom out. Once they both are at there lowest you might have entered the Bottom once again at start focusing on your Risk Reward Ratio. After Bottoming out on a 4hour chart, i have backtested to find out that the asset price usually rises to 10-20% a minimum that will be your Take Profits Zone!
- Short / Sell Setup - Wait for the main oscillator to rise above below the overbought level ,i.e, -20 and wait for the candle close to always verify it. Once it is in the region of above 80s you should either start to DCA (Dollar Cost Averaging) in a Trade or if you believe the asset is due for a more pump in coming minutes, wait for the indicator to Top out in the -13 to -15 region, which will be your ultimate Top to short. Once you have entered the trade which will basically (might be) the Top for short term - mid term should then start focusing on your Risk Reward Ratio. For Scalpers, in my opinion it is enough to target 1-2% on each trade and then flip and rotate.
If you are with a large sized portfolio switch to low leverage mode and switch the chart to 4hour chart and apply the indicator and just basically wait for the Trade God and the Extreme Top and Bottom Finder to completely Top out or show Bearish Divergence after topping out once. Once they both are at there highest or have started to show bearish divergences you might have entered the Top once again at start focusing on your Risk Reward Ratio. After Topping out on a 4hour chart, i have backtested to find out that the asset price usually fall up to 10-20% a minimum that will be your Take Profits Zone!
This really comes in handy when paired with my Trade God/Scalp God indicator Setup!
All the above examples are backtested and can be checked via applying the indicator on the chart!
Cheers, Thanks!
Slickwater Strategy [frac]This indicator is the culmination of various other indicators and attempts to help traders assess the actual current trend and filter out all the noise.
In reality, this indicator is extremely similar to the Traders Dynamic Index in concept and the overall results of the indicator across any time frame. The differences though are that while TDI uses just RSI, this uses RSI, CCI, MFI, and TSI, and also includes an assessment of the momentum associated with the move, to better enable traders to detect divergence.
The default settings generate the best returns across any time frame, however can be ultra sensitive and generate too many trade signals on high resolution time frames (i.e., the 15M or 30M). If one desires less sensitive results, one can use (14,12,9) for the first 3 inputs. This generates consistent signals, but is not as sensitive as the default.
In general:
GO LONG:
- Scalp: Wt1 crosses over Wt2
- Short Term: Wt1 crosses over Wt2 and the middle band. Wt2 is above the middle band as well
- Medium Term: Same as short term, but there are extended oversold trading signals (yellow dots)
- Long term: Same as medium term, but there is divergence in the momentum as well (i.e. it is increasing while price decreases)
GO SHORT:
- Scalp: Wt1 crosses under Wt2
- Short Term: Wt1 crosses under Wt2 and the middle band. Wt2 is below the middle band as well.
- Medium Term: Same as short term, but there are extended overbought trading signals (yellow dots)
- Long term: Same as medium term, but there is divergence in the momentum as well (i.e., it is decreasing while price increases)
Momentum Flow Matrix — VWAP × RSI × ADX × Volume🧠 Momentum Flow Matrix — VWAP × RSI × ADX × Volume
📌 OVERVIEW
The Momentum Flow Matrix is a compact yet powerful multi-factor market diagnosis tool.
It combines institutional-grade price anchoring (VWAP) with momentum and volume analytics (RSI, ADX, volume spikes) and displays the result as a clean dashboard widget on your chart.
You’ll instantly know:
1. Where price is anchored
2. Whether momentum is building or fading
3. Whether volume is supporting the move
4. Whether it’s a high-probability continuation or a risk of mean reversion
🚀 FEATURES
✅ 1. NinjaTrader VWAP Logic (Optional Toggle)
The VWAP calculation can be switched between:
📊 TradingView's native ta.vwap
🧠 Custom NinjaTrader-style VWAP, based on:
VWAP = sum( ((open+close)/2 + (high+low)/2)/2 × volume ) / sum(volume)
This more nuanced formula better reflects institutional execution levels.
⏰ 2. Anchor VWAP to Any Timeframe
Choose your VWAP anchor period from:
Daily, Weekly, Monthly
Intraday (e.g. 60-min, 240-min)
Custom (e.g. 15-min for scalpers)
This makes FlowM suitable for all timeframes and trading styles.
📉 3. RSI Monitoring with Color Zones
Dynamically highlights overbought/oversold conditions
Color-coded (red, green, gray) in the matrix
Can be used alone or combined with other signals
📈 4. ADX & DI Trend Strength Detection
Computes trend strength (ADX) and direction (DI+, DI–)
Classifies price action as:
✅ Bullish trend
🔴 Bearish trend
⚫ Neutral/no trend
🔥 5. Volume Spike Pulse
Flags when current volume exceeds historical average
Helps identify breakouts, panic dumps, or institutional interest
🧮 6. Momentum Score (0–100%)
A weighted combination of all components to produce a single momentum health score:
RSI state
ADX strength
Directional bias (DI)
Volume strength
Color-coded in real time:
🟢 Above 60%: Bullish bias
🔴 Below 40%: Bearish bias
⚪ Between: Neutral / Transition
🧑🏫 HOW TO TRADE WITH IT
📌 Setup Example 1 — Trend Continuation
VWAP rising (anchored to 1H or Daily)
RSI in the 50–60 range (not OB yet)
ADX > 25, DI+ > DI–
Volume spike present
✅ Matrix score > 70%
🟢 Trade idea: Long breakout entry with tight stop just under VWAP
📌 Setup Example 2 — Mean Reversion
Price above VWAP but RSI > 70
ADX < 20
Momentum % < 45%
Vol spike recently happened and faded
🔴 Trade idea: Short pullback into VWAP or fade extreme extension
📌 Setup Example 3 — Reversal Emerging
VWAP flat or down, but price just reclaimed it
RSI rising from oversold
ADX < 25 but DI+ crossing over DI–
Volume starting to rise
⚪ Trade idea: Early entry before full trend confirmation
🖼 VISUAL OUTPUT (Widget Example)
────────────────────────────
- Signal Value
────────────────────────────
- VWAP 45123.75
- RSI 61.2 🔴
- ADX 27.4 🟢 Bull
- Vol Spike 🔥 Yes
- Momentum % 75% 🟢
─────────────────────────────
✅ Positioned in the top-right of your chart
✅ Non-intrusive, always-on, highly visual
⚙️ CUSTOMIZATION OPTIONS
VWAP formula (Ninja vs TV)
Anchor timeframe
RSI, ADX lengths
Volume spike threshold
Toggle widget on/off
Clean and fast performance (optimized for Pine v6)
🧪 Best Use Cases
Intraday scalping (15m VWAP + short RSI/ADX)
Trend confirmation for swing entries (1H–4H anchors)
Momentum scoring for options traders
Exit management when scores begin to fade
🎁 Final Notes
FlowM was built to be intelligent, visually elegant, and truly multidimensional.
Whether you're a scalper, swing trader, or algo developer — this matrix simplifies complex conditions into clean, actionable insight.
👉 Try adding FlowM to your existing chart templates.
👉 Combine it with order flow or liquidity zones for maximum edge.
Please note that this is an educational idea and past performance may not be replicable in the future.
