Flying Dragon Trend Indicator can be used to indicate the trend on all timeframes by finetuning the input settings. The Flying Dragon Trend family includes both the strategy and the indicator, where the strategy supports of selecting the optimal set of inputs for the indicator in each scenario. Highly recommended to get familiar with the strategy first to get the best out of the indicator.
Flying Dragon Trend plots the trend bands into the ribbon, where the colours indicate the trend of each band. The plotting of the bands can be turned off in the input settings. Based on the user selectable Risk Level the trend pivot indicator is shown for the possible trend pivot when the price crosses the certain moving average line, or at the Lowest risk level all the bands have the same colour. The trend pivot indicator is not shown on the Lowest risk level, but the colour of the trend bands is the indicator instead .
The main idea is to combine two different moving averages to cross each other at the possible trend pivot point, but trying to avoid any short term bounces to affect the trend indication. The ingenuity resides in the combination of selected moving average types, lengths and especially the offsets. The trend bands give visual hint for the user while observing the price interaction with the bands, one could say that when "the Dragon swallows the candles the jaws wide open", then there is high possibility for the pivot. The leading moving average should be fast while the lagging moving average should be, well, lagging behind the leading one. There is Offset selections for each moving average, three for leading one and one for the lagging one, those are where the magic happens. After user has selected preferred moving average types and lengths, by tuning each offset the optimal sweet spot for each timeframe and equity will be found. The default values are good enough starting points for longer (4h and up) timeframes, but shorter timeframes (minutes to hours) require different combination of settings, some hints are provided in tooltips. Basically the slower the "leading" moving average (like HMA75 or HMA115) and quicker the "lagging" moving average (like SMA12 or SMA5) become, the better performance at the Lowest risk level on minute scales. This "reversed" approach at the minute scales is shown also as reversed colour for the "lagging" moving average trend band, which seems to make it work surprisingly well.
The Flying Dragon Trend does not necessarily work well on zig zag and range bounce scenarios without additional finetuning of the input settings to fit the current condition.
ملاحظات الأخبار
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Fixed minor bug. Now also the Lowest risk level shows the indicator triangle.
ملاحظات الأخبار
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Alert function added. Alerts are enabled when indicators are on. Create Alert on selected equity and timeframe, select on Condition this indicator and Any alert () function call, Create.
Alert function added. Alerts are enabled when indicators are on. Create Alert on selected equity and timeframe, select on Condition this indicator and Any alert () function call, Create.
IMDave
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I was recently forced to change brokers twice and move from mt4...something going on with US traders getting booted from brokers/brokers dropping mt4?? Anyway, I found this indicator and can't thank you enough. It is very similar to my mt4 set-up and works great! Thank you for making this transition a bit easier!
MarkoP010
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@IMDave, Nice to hear it is helpfull. There is also strategy with the same name, which I made to find out the optimal settings easier. Cheers!
IMDave
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@MarkoP010, Thank you! I downloaded from the community scripts (the one with 307 downloads). The only thing I changed was the MA's (13 & 50) and it works like a charm. I put ZigZag Trend Divergence indicator on the chart also and deleted everything off that except the trend indicator line...also changed to Heiken Ashi...I just trade on the M5 chart when the M5, M15, M30 trend line are in agreement and take entries when all of your colors match up and candle closes below/above MA's. I have been exiting when your yellow line moves from the middle of the cloud/ribbon to the bottom/top...structure always has a say in what I do as well. I don't get greedy looking to get in on the first move. I let the trend get started and take some meat off the bone in the middle.
I have deep backtested the Strategy extensively and found some optimal settings for BTC. What concerns me is that when I put the indicator on the same Timeframe and risk level (lowest), it isn't producing trade signals, while the strategy produced them in abundance. I'm not sure what the precise issue is, but I'm very keep to see this set of indicators further develop - they are powerful! Keep it up, Marco!!! Let the dragon roar!
MarkoP010
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@OnchainCrypto, Thank you. Yes, that is true, the Lowest risk level does not produce the indicator. I think it is because the logic there is that when all colours are the same, then it should plot the indicator but I did not get it function, as it is just moving average cross overs then I guess it does not know on which candle to plot the indicator, but in Strategy it is able to execute the trade though. The indicators in other risk levels rely on the price cross over of the moving average, thus it knows which candle to plot the indicator on.
As this was my first Pine Script tries (Indicator and Strategy) and I am not into coding as such (more like copy-paste-combine), then fixing this might take some time.
PS. Clad You got the point that Strategy is for finetuning the Indicator for each scenario, as default values are generated on some commodities with 4h and 1D Heikin Ashi candles (thus the Strategy executes on Close, if not using HA then that can be changed as well to get even better results, Settings - Properties - On bar close, but I prefer to wait the candle close).
MarkoP010
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@OnchainCrypto, Now it shows indicator signal also on Lowest risk level. The fix was easier than I expected, to figure it out was not. :) Enjoy!
Alerts are enabled when indicators are on.
Create Alert on selected equity and timeframe, select on Condition this indicator and Any alert () function call, Create.