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Média Móvel Simples (MMS)

MTF Ichimoku Conversion Line SMA Well, traders talk about the "trend" or trendlines. We've got many theories defining "the trend" out there... But which "trend" are they discussing? "I've heard of Dow, Elliott, Parabolic SAR, etc..." Let's put it. Just Use the Conversion Line of Ichimoku. It indicates trend conversion. Tired of following the step-like weird line? Okay, Use SMA of it. Yes, you've got a very smooth line, above which the "trend" can be read as an uptrend, and below it is a downtrend. A spacenoid, alien invader's definition of the "trend"? Maybe so. But don't be afraid. Whatever it is, it must be your friend if it's a trend. -Recommended Setting Conversion Line Period: 9 or 12 SMA period: 14 or 10 SMA Mode: True
Indicador Pine Script™
por Darth_Neccoder
Major moving AveragesA combination of major moving averages both simple and exponential with cross signals on 2 of the SMAs and EMAs, great for assessing trend direction and strength at a glance. Entering a position for continuation from a retracement to one of the longer period averages can offer a great R:R and win rate, using this in combination with a traditional oscillator such as RSI or MFI can further increase the effectiveness. Best for use on higher timeframes (4H and above) Default settings: Period: 200 SMA, 50 SMA 20SMA (Bollinger band center), 7SMA 200 EMA, 50 EMA, 21EMA, 10EMA Visual: Lighter = larger period Darker = smaller period 7 SMA = thin white 10 EMA = thin yellow Thick = SMA Thin = EMA
Indicador Pine Script™
por AltcoinDreaming
AwAc OscillatorThis indicator combines the Awesome Oscillator and the Accelerator Oscillator, allowing you to select either of them. It can be particularly useful when you want to utilize both oscillators along with the Parabolic SAR to develop a powerful trading strategy. Strategy Overview In the strategy described below, the Parabolic SAR should be added to the main chart. Short Trade Criteria The Awesome Oscillator turns red. The Accelerator Oscillator turns red. The Parabolic SAR is above the current candle. All conditions for a short trade must be met below the 200 EMA. Action: Go short at the opening of the next candle. Long Trade Criteria The Awesome Oscillator turns green. The Accelerator Oscillator turns green. The Parabolic SAR is below the current candle. All conditions for a long trade must be met above the 200 EMA. Action: Go long at the opening of the next candle.
Indicador Pine Script™
por mosaco
Multi-Timeframe SMA Indicator | Daily & Weekly SMAs🔹 Description: This Multi-Timeframe SMA Indicator is designed for traders who want a clean and structured way to visualize daily and weekly Simple Moving Averages (SMAs) on their TradingView charts. It automatically adjusts based on the selected timeframe: 📅 Daily Chart: SMA 5 (Blue) SMA 20 (Orange) SMA 50 (Green) SMA 150 (Purple) SMA 200 (Red) 🗓 Weekly Chart: SMA 10W (Aqua) SMA 40W (Fuchsia) 🛠️ Features: ✅ Automatic Timeframe Detection: Daily SMAs only appear on daily charts Weekly SMAs only appear on weekly charts ✅ Distinct Colors for Each SMA – Makes it easy to differentiate moving averages. ✅ Slightly Thicker Lines – Ensures better visibility. ✅ Labels on SMA Lines – Helps identify each SMA directly on the chart. ✅ SMA Reference Table (Top-Left Corner) – Shows SMA names & colors for quick reference. 🎯 How to Use This Indicator? 📌 For Swing Traders & Long-Term Investors: Use SMA 50, 150, and 200 to identify overall trend direction. Monitor the weekly SMA 10 & 40 to gauge broader market strength. 📌 For Short-Term Traders: Use SMA 5 & 20 for momentum and trend shifts. 🚀 Perfect for traders who rely on multi-timeframe analysis to make better trading decisions! 🔍 Like this indicator? Don't forget to 🌟 Favorite & Share with your trading community! 🚀📊
Indicador Pine Script™
por finpire_in
Custom Length Moving AverageThe Custom Length Moving Average is a dynamic indicator that allows traders to plot a moving average with an adjustable length based on their preferred number of days. Users can choose between Simple Moving Average (SMA), Exponential Moving Average (EMA), or Weighted Moving Average (WMA) to match their trading strategy. The script automatically calculates the moving average length by factoring in the chart’s timeframe and trading session duration, ensuring precision and adaptability. This makes it an ideal tool for traders looking for a flexible moving average that adjusts to different market conditions and timeframes.
Indicador Pine Script™
por RustamTaveri
Customizable Moving Average Toolkit"Customizable Moving Average" is a versatile and user-friendly TradingView indicator that allows traders to plot up to four customizable moving average lines on their charts. Key features include: Multiple MA Types: Choose between Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), and Volume-Weighted Moving Average (VWMA) for each line. Full Customization: Set individual lengths, colors, and visibility for each moving average line to tailor the indicator to your trading strategy. Toggle Visibility: Enable or disable each moving average line with a simple switch. This indicator empowers traders with dynamic tools to analyze market trends and price action effectively. Perfect for both beginners and experienced traders who want flexibility and clarity in their charting experience.
Indicador Pine Script™
por JamesAchita
AI Volume Breakout for scalpingPurpose of the Indicator This script is designed for trading, specifically for scalping, which involves making numerous trades within a very short time frame to take advantage of small price movements. The indicator looks for volume breakouts, which are moments when trading volume significantly increases, potentially signaling the start of a new price movement. Key Components: Parameters: Volume Threshold (volumeThreshold): Determines how much volume must increase from one bar to the next for it to be considered significant. Set at 4.0, meaning volume must quadruplicate for a breakout signal. Price Change Threshold (priceChangeThreshold): Defines the minimum price change required for a breakout signal. Here, it's 1.5% of the bar's opening price. SMA Length (smaLength): The period for the Simple Moving Average, which helps confirm the trend direction. Here, it's set to 20. Cooldown Period (cooldownPeriod): Prevents signals from being too close together, set to 10 bars. ATR Period (atrPeriod): The period for calculating Average True Range (ATR), used to measure market volatility. Volatility Threshold (volatilityThreshold): If ATR divided by the close price exceeds this, the market is considered too volatile for trading according to this strategy. Calculations: SMA (Simple Moving Average): Used for trend confirmation. A bullish signal is more likely if the price is above this average. ATR (Average True Range): Measures market volatility. Lower volatility (below the threshold) is preferred for this strategy. Signal Generation: The indicator checks if: Volume has increased significantly (volumeDelta > 0 and volume / volume >= volumeThreshold). There's enough price change (math.abs(priceDelta / open) >= priceChangeThreshold). The market isn't too volatile (lowVolatility). The trend supports the direction of the price change (trendUp for bullish, trendDown for bearish). If all these conditions are met, it predicts: 1 (Bullish) if conditions suggest buying. 0 (Bearish) if conditions suggest selling. Cooldown Mechanism: After a signal, the script waits for a number of bars (cooldownPeriod) before considering another signal to avoid over-trading. Visual Feedback: Labels are placed on the chart: Green label for bullish breakouts below the low price. Red label for bearish breakouts above the high price. How to Use: Entry Points: Look for the labels on your chart to decide when to enter trades. Risk Management: Since this is for scalping, ensure each trade has tight stop-losses to manage risk due to the quick, small movements. Market Conditions: This strategy might work best in markets with consistent volume and price changes but not extreme volatility. Caveats: This isn't real AI; it's a heuristic based on volume and price. Actual AI would involve machine learning algorithms trained on historical data. Always backtest any strategy, and consider how it behaves in different market conditions, not just the ones it was designed for.
Indicador Pine Script™
por TRADING-ARMOUR
12
John Bob-Trading-BotDeveloped by Ayebale John Bob with the help of his bestie, this innovative strategy combines advanced Smart Money Concepts with practical risk management tools to help traders identify and capitalize on key market moves. Key Features: Smart Money Concepts & Fair Value Gaps (FVG): The strategy monitors price action for fair value gaps, which are visualized as extremely faint horizontal lines on the chart. These FVGs signal potential areas where institutional traders might have entered or exited positions. Dynamic Entry Signals: Buy signals are triggered when the price crosses above the 50-bar lowest low or when a bullish FVG is detected. Conversely, sell signals are generated when the price falls below the 50-bar highest high or a bearish FVG is identified. Each signal is visually marked on the chart with clear buy (green) and sell (red) labels. Multi-Level Order Execution: Once an entry signal occurs, the strategy places five separate orders, each with its own take-profit (TP) level. The TP levels are calculated dynamically using the Average True Range (ATR) and a set of predefined multipliers. This allows traders to scale out of positions as the market moves favorably. Dynamic Risk Management: A stop-loss is automatically set at a distance determined by the ATR, ensuring that risk is managed in accordance with current market volatility. Real-Time Trade Information Table: In the bottom-right corner of the chart, a trade information table displays essential details about the current trade: Side: Displays "BUY NOW" (with a dark green background) for long entries or "SELL NOW" (with a dark red background) for short entries. Entry Price & Stop-Loss: Shows the entry price (highlighted in green) and the corresponding stop-loss level (highlighted in red). Take-Profit Levels: Lists the five TP levels, each of which turns green once the market price reaches that target. Timer: A live timer in minutes counts from the moment the current trade trigger started, helping traders track the duration of their active trades. Visual Progress Bar: A histogram-style progress bar is plotted on the chart, visually representing the percentage gain (or loss) relative to the entry price. This strategy was meticulously designed to incorporate both technical analysis and smart risk management, offering a robust trading solution that adapts to changing market conditions. Whether you're a seasoned trader or just starting out, the AyebaleJohnBob Trading Bot equips you with the tools and visual cues needed to make well-informed trading decisions. Enjoy a seamless blend of strategy and style—crafted with passion by Ayebale John Bob and his bestie!
Estratégia Pine Script™
por ayebalejohnbob
7
Price Imbalance as Consecutive Levels of AveragesOverview The Price Imbalance as Consecutive Levels of Averages indicator is an advanced technical analysis tool designed to identify and visualize price imbalances in financial markets. Unlike traditional moving average (MA) indicators that update continuously with each new price bar, this indicator employs moving averages calculated over consecutive, non-overlapping historical windows. This unique approach leverages comparative historical data to provide deeper insights into trend strength and potential reversals, offering traders a more nuanced understanding of market dynamics and reducing the likelihood of false signals or fakeouts. Key Features Consecutive Rolling Moving Averages: Utilizes three distinct simple moving averages (SMAs) calculated over consecutive, non-overlapping windows to capture different historical segments of price data. Dynamic Color-Coded Visualization: SMA lines change color and style based on the relationship between the averages, highlighting both extreme and normal market conditions. Median and Secondary Median Lines: Provides additional layers of price distribution insight during normal trend conditions through the plotting of primary and secondary median lines. Fakeout Prevention: Filters out short-term volatility and sharp price movements by requiring consistent historical alignment of multiple moving averages. Customizable Parameters: Offers flexibility to adjust SMA window lengths and line extensions to align with various trading strategies and timeframes. Real-Time Updates with Historical Context: Continuously recalculates and updates SMA lines based on comparative historical windows, ensuring that the indicator reflects both current and past market conditions. Inputs & Settings Rolling Window Lengths: Window 1 Length (Most Recent) Bars: Number of bars used to calculate the most recent SMA. (Default: 5, Range: 2–300) Window 2 Length (Preceding) Bars: Number of bars for the second SMA, shifted by Window 1. (Default: 8, Range: 2–300) Window 3 Length (Third Rolling) Bars: Number of bars for the third SMA, shifted by the combined lengths of Window 1 and Window 2. (Default: 13, Range: 2–300) Horizontal Line Extension: Horizontal Line Extension (Bars): Determines how far each SMA line extends horizontally on the chart. (Default: 10 bars, Range: 1–100) Functionality and Theory 1. Calculating Consecutive Simple Moving Averages (SMAs): The indicator calculates three SMAs, each based on distinct and consecutive historical windows of price data. This approach contrasts with traditional MAs that continuously update with each new price bar, offering a static view of past trends rather than an ongoing one. Mean1 (SMA1): Calculated over the most recent Window 1 Length bars. Represents the short-term trend. Mean1=∑i=1N1CloseiN1 Mean1=N1​∑i=1N1​​Closei​​ Where N1N1​ is the length of Window 1. Mean2 (SMA2): Calculated over the preceding Window 2 Length bars, shifted back by Window 1 Length bars. Represents the medium-term trend. \text{Mean2} = \frac{\sum_{i=1}^{N_2} \text{Close}_{i + N_1}}}{N_2} Where N2N2​ is the length of Window 2. Mean3 (SMA3): Calculated over the third rolling Window 3 Length bars, shifted back by the combined lengths of Window 1 and Window 2 bars. Represents the long-term trend. \text{Mean3} = \frac{\sum_{i=1}^{N_3} \text{Close}_{i + N_1 + N_2}}}{N_3} Where N3N3​ is the length of Window 3. 2. Determining Market Conditions: The relationship between the three SMAs categorizes the market condition into either extreme or normal states, enabling traders to quickly assess trend strength and potential reversals. Extreme Bullish: Mean3Mean2>Mean1 Mean3>Mean2>Mean1 Indicates a strong and sustained downward trend. SMA lines are colored purple and styled as dashed lines. Normal Bullish: Mean1>Mean2andnot in extreme bullish condition Mean1>Mean2andnot in extreme bullish condition Indicates a standard upward trend. SMA lines are colored green and styled as solid lines. Normal Bearish: Mean1Mean2>Mean1 Mean3>Mean2>Mean1 Normal Bullish: Mean1>Mean2andnot in Extreme Bullish Mean1>Mean2andnot in Extreme Bullish Normal Bearish: Mean1 Mean2 > Mean3 Visualization: All three SMAs are displayed as gold dashed lines. Median Lines: Not displayed to maintain chart clarity. Interpretation: Indicates a strong and sustained upward trend. Traders may consider entering long positions, confident in the trend's strength without the distraction of additional lines. 2. Normal Bullish Condition: SMAs Alignment: Mean1 > Mean2 (not in extreme condition) Visualization: Mean1 and Mean2 are green solid lines; Mean3 is gray. Median Lines: A thin blue dotted median line is plotted between Mean1 and Mean2, with two additional thin blue dashed lines as secondary medians. Interpretation: Confirms an upward trend while providing deeper insights into price distribution. Traders can use the median and secondary median lines to identify optimal entry points and manage risk more effectively. 3. Extreme Bearish Condition: SMAs Alignment: Mean3 > Mean2 > Mean1 Visualization: All three SMAs are displayed as purple dashed lines. Median Lines: Not displayed to maintain chart clarity. Interpretation: Indicates a strong and sustained downward trend. Traders may consider entering short positions, confident in the trend's strength without the distraction of additional lines. 4. Normal Bearish Condition: SMAs Alignment: Mean1 < Mean2 (not in extreme condition) Visualization: Mean1 and Mean2 are red solid lines; Mean3 is gray. Median Lines: A thin blue dotted median line is plotted between Mean1 and Mean2, with two additional thin blue dashed lines as secondary medians. Interpretation: Confirms a downward trend while providing deeper insights into price distribution. Traders can use the median and secondary median lines to identify optimal entry points and manage risk more effectively. Customization and Flexibility The Price Imbalance as Consecutive Levels of Averages indicator is highly adaptable, allowing traders to tailor it to their specific trading styles and market conditions through adjustable parameters: SMA Window Lengths: Modify the lengths of Window 1, Window 2, and Window 3 to capture different historical trend segments, whether focusing on short-term fluctuations or long-term movements. Line Extension: Adjust the horizontal extension of SMA and median lines to align with different trading horizons and chart preferences. Color and Style Preferences: While default colors and styles are optimized for clarity, traders can customize these elements to match their personal chart aesthetics and enhance visual differentiation. This flexibility ensures that the indicator remains versatile and applicable across various markets, asset classes, and trading strategies, providing valuable insights tailored to individual trading needs. Conclusion The Price Imbalance as Consecutive Levels of Averages indicator offers a comprehensive and innovative approach to analyzing price trends and imbalances within financial markets. By utilizing three consecutive, non-overlapping SMAs and incorporating median lines during normal trend conditions, the indicator provides clear and actionable insights into trend strength and price distribution. Its unique design leverages comparative historical data, distinguishing it from traditional moving averages and enhancing its utility in identifying genuine market movements while minimizing false signals. This dynamic and customizable tool empowers traders to refine their technical analysis, optimize their trading strategies, and navigate the markets with greater confidence and precision.
Indicador Pine Script™
por garysebastianbrowniii
Ultimate Total MA + ATRIndicator Description (English) Name: Tendencias FX - Multi-Line with Customizable Offsets (1x..6x) This script is a multi-purpose trend-following indicator that calculates a central Moving Average (Mid Line) plus a set of 6 different bands (1x to 6x) above and below that average. Each band is determined by a user-defined ATR length and multiplier. Key features include: Independent MA Types Choose different moving average methods for the Mid Line and for the ATR calculation. Available types: SMA, EMA, WMA, RMA, HMA, and ALMA. Separate Lengths Configure the length of the Mid Line independently from the ATR length. This allows fine-tuning of both the central average and the volatility measure. 6 Customizable Multipliers Bands are calculated for 1x, 2x, 3x, 4x, 5x, and 6x multiples of the chosen ATR. Each level has its own checkbox in the Inputs tab so you can show or hide them at will. Color Dynamics The Mid Line automatically changes color to green when its current value is higher than the previous bar’s value, and red otherwise. All upper/lower bands are rendered in a neutral gray (#787b86) for easy distinction. Time Shift (Offset) An offset parameter allows shifting the entire indicator (Mid Line plus bands) forward (to the right) or backward (to the left) by a certain number of bars. This can help evaluate leads/lags, or compare the past behavior of these lines against future price developments. Check Boxes for Visibility Checkboxes in the Inputs let you toggle 1x..6x band levels. By default, 1x, 2x, and 3x are visible, while 4x, 5x, and 6x are off. Overlay with Shared Price Scale The script is set as overlay=true and uses scale=scale.right, so it draws directly on the main chart and shares the same price axis as your candles. This indicator is ideal if you want: A central MA for trend detection. ATR-based volatility bands (up to 6 multipliers). Full control over the type and length of both the Mid Line MA and the ATR. An optional offset to shift the lines in time for backtesting or forward-projection. Usage Tips In the Inputs tab, customize: Mid Line length and ATR length independently. MA methods for both Mid Line and ATR (SMA, EMA, WMA, RMA, HMA, ALMA). Band visibility via checkboxes for 1x..6x. Offset for shifting lines in time. In the Style tab, you can further customize colors, line widths, and visibility of each element (Mid line, ±1x..±6x). Enjoy exploring different settings to best match your preferred trading style and timeframe!
Indicador Pine Script™
por PriceSpeakers
Smooth Moving Average (SMA) MTF Trend PanelDescription: The SMA MTF Trend Panel is a multi-timeframe (MTF) trend visualization tool designed to help traders quickly assess market conditions across multiple timeframes based on the Simple Moving Average (SMA). This script calculates the trend direction (Bullish, Bearish, or Neutral) and the trend strength percentage for each selected timeframe. It displays the information in an intuitive panel that is dynamically updated in real-time. How It Works: 1. SMA Calculation: • For each timeframe, the script calculates the SMA based on a user-defined length (default: 50). 2. Trend Identification: • Compares the current price to the SMA and assigns a label: “Bull,” “Bear,” or “Neutral.” 3. Panel Display: • Displays trends, strengths, and shifts for each timeframe in an interactive table. 4. Real-Time Updates: • Continuously monitors price movements and updates the panel to reflect the latest data. Customizable Inputs: 1. Panel Settings: • Orientation: Choose vertical or horizontal layout. • Position: Select panel location on the chart. • Border Width/Color: Adjust panel borders for better visualization. 2. Trend Colors: • Define custom colors for bullish, bearish, neutral, and shift conditions. 3. SMA Length: • Adjust the SMA period to suit your trading style (e.g., short-term scalping or long-term trend following). 4. Timeframes: • Set specific timeframes to analyze based on your trading strategy.
Indicador Pine Script™
por Mouiii
1
Composite Indicator (CCI + ATR)Composite Indicator (CCI + ATR) The Composite Indicator (CCI + ATR) combines the Commodity Channel Index (CCI) with the Average True Range (ATR) , providing traders with a dynamic tool for identifying entry and exit points based on momentum and volatility. This indicator is particularly useful for markets like cryptocurrencies, which often exhibit sharp sell-offs and gradual upward trends. Key Features Momentum Analysis with CCI: The CCI calculates price momentum by comparing the current price level to its average over a specific period. The indicator generates signals when CCI crosses predefined thresholds. - Buy Signal: Triggered when CCI crosses above the lower threshold (e.g., -100). - Sell Signal: Triggered when CCI crosses below the upper threshold (e.g., +100). Volatility Filtering with ATR: The ATR measures market volatility, ensuring signals occur only during significant price movements. Separate multipliers for buy and sell signals allow tailored filtering based on market behavior. Stop Loss Calculation: Dynamic stop loss levels are calculated using the ATR multiplier to adapt to market volatility, offering better risk management. How It Works CCI Calculation: The CCI is calculated using the typical price ((High + Low + Close) / 3) and a user-defined length. It detects momentum changes by measuring deviations from the average price. ATR Calculation: The ATR determines the average price range over a specified period, identifying the market’s volatility. The ATR SMA acts as a baseline to filter signals. Buy Signal: A buy signal is triggered when: - CCI crosses above the lower threshold (e.g., -100). - ATR exceeds its SMA multiplied by the buy multiplier (e.g., 1.0). Sell Signal: A sell signal is triggered when: - CCI crosses below the upper threshold (e.g., +100). - ATR exceeds its SMA multiplied by the sell multiplier (e.g., 0.95). Stop Loss Integration: - Long positions: Stop loss = Low – (ATR * ATR Multiplier) - Short positions: Stop loss = High + (ATR * ATR Multiplier) Advantages Combines momentum (CCI) and volatility (ATR) for precise signal generation. Customizable thresholds and multipliers for different market conditions. Dynamic stop loss ensures better risk management in volatile markets. Suggested Parameter Settings CCI Length: 20 (default). Adjust as follows: - 10–15: Shorter timeframes (e.g., 5-15 minutes). - 20: General use for 1-hour timeframes. - 30–50: Longer timeframes (e.g., 4-hour or daily charts). CCI Threshold: 100 (default). Adjust as follows: - 50–75: For more frequent signals in ranging markets. - 100: Balanced for most trading conditions. - 150–200: For strong trends to reduce noise. ATR Length: 14 (default). Adjust as follows: - 10–14: For assets with moderate volatility. - 20: For assets with lower volatility. ATR Buy Multiplier: 1.0 (default). Adjust as follows: - 0.9–1.0: For gradual uptrends in crypto markets. - 1.1–1.2: For stronger trend filtering. ATR Sell Multiplier: 0.95 (default). Adjust as follows: - 0.8–0.95: For sharp sell-offs. - 1.0–1.1: For stable downward trends. ATR Multiplier (Stop Loss): 1.5 (default). Adjust as follows: - 1.0–1.2: For shorter timeframes or less volatile markets. - 2.0–2.5: For highly volatile markets like cryptocurrencies. Example Use Cases Scalping (5-15 minute charts): Use CCI Length = 10, CCI Threshold = 75, ATR Buy Multiplier = 0.9, ATR Sell Multiplier = 0.8. Day Trading (1-hour charts): Use CCI Length = 20, CCI Threshold = 100, ATR Buy Multiplier = 1.0, ATR Sell Multiplier = 0.95. Swing Trading (4-hour or daily charts): Use CCI Length = 30, CCI Threshold = 150, ATR Buy Multiplier = 1.2, ATR Sell Multiplier = 1.0. Final Thoughts The Composite Indicator (CCI + ATR) is a versatile tool designed to enhance trading decisions by combining momentum analysis with volatility filtering. Whether scalping or swing trading, this indicator provides actionable insights and robust risk management to navigate complex markets effectively.
Indicador Pine Script™
por CharLi0t
Composite Indicator (Donchian + OBV)Composite Indicator (Donchian + OBV) The Composite Indicator (Donchian + OBV) is a powerful tool designed to evaluate the strength of market breakouts and momentum trends , offering traders a comprehensive perspective on price action. This indicator combines the Donchian Channel with On-Balance Volume (OBV) to create a dynamic and easy-to-interpret metric scaled between -1 and 1 . Key Features Breakout Strength Analysis: - The indicator assesses the strength of price breakouts relative to the upper and lower bounds of the Donchian Channel. - Positive values close to 1 indicate a strong bullish breakout. - Negative values close to -1 indicate a strong bearish breakout. Momentum Detection with OBV: - On-Balance Volume (OBV) tracks the cumulative buying and selling volume to gauge market momentum. - The smoothed OBV trend ensures the momentum component aligns with price action, reducing noise. Integrated Composite Value: - Combines breakout strength and OBV momentum into a single metric for enhanced clarity. - The final composite value highlights whether the market is bullish, bearish, or neutral. Divergence Detection: - Spot bullish divergences when the indicator rises while price falls, suggesting a potential upward reversal. - Identify bearish divergences when the indicator falls while price rises, hinting at a potential downward reversal. How It Works Donchian Channel Analysis: - Calculates the highest high and lowest low over a user-defined period to establish the upper and lower channels . - Breakouts beyond these channels contribute to the breakout strength component. OBV Momentum: - Measures cumulative volume trends to validate price movements. - Momentum is derived from the rate of change in smoothed OBV values. Composite Calculation: - Combines breakout strength and OBV momentum, normalized and scaled to -1 to 1 for clarity. How to Use Bullish Breakout: - When the indicator value approaches 1 , it signals a strong upward breakout supported by positive OBV momentum. - Example Action: Consider a Buy if price breaks the upper Donchian Channel with increasing OBV. Bearish Breakout: - When the indicator value approaches -1 , it indicates a strong downward breakout supported by negative OBV momentum. - Example Action: Consider a Sell if price breaks the lower Donchian Channel with decreasing OBV. Neutral Market: - When the value is near 0 , the market is likely balanced with no significant breakout or momentum detected. Divergence Opportunities: - Bullish Divergence: Price makes lower lows, but the indicator trends upward → Potential upward reversal. - Bearish Divergence: Price makes higher highs, but the indicator trends downward → Potential downward reversal. Customization Options Donchian Channel Length: Adjust the period for the upper and lower bounds. OBV Smoothing Length: Modify the smoothing period for OBV to fine-tune momentum detection. Scaling Adjustments: The composite value is automatically normalized for consistency across timeframes. Ideal Use Cases Breakout Trading: Identify and confirm strong breakouts in volatile markets. Momentum Confirmation: Validate price movements with volume-based momentum. Reversal Detection: Leverage divergences to spot potential market reversals. Example Applications Strong Bullish Signal: - Price breaks the upper channel , and OBV shows increasing volume → Composite value near 1 . - Action: Enter a Buy position and set a Stop Loss below the upper channel. Strong Bearish Signal: - Price breaks the lower channel , and OBV shows decreasing volume → Composite value near -1 . - Action: Enter a Sell position and set a Stop Loss above the lower channel. Neutral Market: - Composite value near 0 suggests indecision or consolidation. Wait for a breakout. Limitations Best used alongside additional tools like RSI or MACD for filtering noise and improving decision-making. Requires careful parameter tuning based on the asset and timeframe. Final Thoughts The Composite Indicator (Donchian + OBV) offers traders a versatile tool to navigate complex markets. By blending breakout analysis with volume-based momentum, this indicator provides an actionable edge for identifying high-probability opportunities and potential reversals.
Indicador Pine Script™
por CharLi0t