ADX Momentum Shaded CandlesDescription:
The "ADX Momentum Shaded Candles" indicator (ADXMSC) is an overlay indicator that enhances candlestick charts by adding shading based on the momentum derived from the Average Directional Index (ADX). This indicator provides visual cues about the strength of bullish and bearish momentum by adjusting the transparency of the candlesticks.
How it Works:
The indicator utilizes the ADX indicator to calculate the values of +DI (Directional Indicator Plus) and -DI (Directional Indicator Minus) based on user-defined parameters. It then determines the transparency levels for the bullish and bearish candlesticks based on the calculated values of +DI and -DI. Higher values of +DI or -DI result in lower transparency levels, while lower values increase transparency.
Transparency Calculation:
The transparency of the bullish and bearish candlesticks is adjusted based on the values of +DI and -DI, which reflect the momentum of the price movement. Transparency is inversely proportional to these values, with higher values resulting in lower transparency. To calculate transparency, the indicator uses the formula 100 minus the value of +DI or -DI multiplied by 2. This ensures that higher values of +DI or -DI produce more opaque candlesticks.
Usage:
To effectively use the "ADX Momentum Shaded Candles" indicator (ADXMSC), follow these steps:
1. Apply the indicator to your chart by adding it from the available indicators.
2. Observe the candlesticks on the chart:
- Bullish candlesticks are represented by the original bullish color with adjusted transparency.
- Bearish candlesticks are represented by the original bearish color with adjusted transparency.
3. Analyze the transparency levels of the candlesticks to assess the strength of bullish and bearish momentum. Less transparent candlesticks indicate stronger momentum, while more transparent ones suggest weaker momentum.
4. Combine the visual information from the shaded candlesticks with other technical analysis tools, such as support and resistance levels, trend lines, or oscillators, to confirm potential trade opportunities.
5. Customize the indicator's parameters, such as the ADX length and smoothing, to suit your trading preferences.
6. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
Averagedirectionalmovementindex
ADX Divergence IndicatorDescription:
The ADX Divergence Indicator (ADXDI) is a technical analysis tool designed to identify potential bullish and bearish signals based on the Average Directional Index (ADX), the Positive Directional Indicator (+DI), and the Negative Directional Indicator (-DI) lines. This overlay indicator plots circles on the chart to highlight these signals.
How it Works:
The ADXDI calculates the ADX, +DI, and -DI values using user-defined parameters. It then evaluates specific conditions to determine potential bullish and bearish signals. The indicator considers rising and falling trends of the +DI and -DI lines, as well as changes in the ADX values. Additionally, it detects a bounce condition when the current ADX is less than the previous ADX value and that ADX value is higher than the one previous to it.
Usage:
To effectively utilize the ADX Divergence Indicator, follow these steps:
1. Apply the ADX Divergence Indicator to your chart by adding it from the available indicators.
2. Observe the circles plotted on the chart:
- Bullish circles (green by default) indicate potential bullish signals.
- Bearish circles (red by default) indicate potential bearish signals.
4. Interpret the signals provided by the indicator:
- A bullish signal occurs when the +DI line rises and the -DI line falls.
- A bearish signal occurs when the -DI line rises and the +DI line falls.
- The presence of a bounce condition (ADX < ADX and ADX > ADX) further strengthens the signal.
5. Combine the signals from the ADX Signals indicator with other technical analysis tools, such as support and resistance levels, trend lines, or candlestick patterns, to confirm potential trade setups.
6. Customize the indicator's parameters, such as the lengths of the DI and ADX calculations or the colors of the plotted circles, to suit your trading preferences.
7. Implement appropriate risk management strategies, including setting stop-loss orders and position sizing, to manage your trades effectively and protect your capital.
Ichimoku Cloud and ADX with Trailing Stop Loss (by Coinrule)The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.
The Ichimoku Cloud was developed by Goichi Hosoda, a Japanese journalist, and published in the late 1960s. It provides more data points than the standard candlestick chart. While it seems complicated at first glance, those familiar with how to read the charts often find it easy to understand with well-defined trading signals.
The Ichimoku Cloud is composed of five lines or calculations, two of which comprise a cloud where the difference between the two lines is shaded in.
The lines include a nine-period average, a 26-period average, an average of those two averages, a 52-period average, and a lagging closing price line.
The cloud is a key part of the indicator. When the price is below the cloud, the trend is down. When the price is above the cloud, the trend is up.
The above trend signals are strengthened if the cloud is moving in the same direction as the price. For example, during an uptrend, the top of the cloud is moving up, or during a downtrend, the bottom of the cloud is moving down.
DMI is simple to interpret. When +DI > - DI, it means the price is trending up. On the other hand, when -DI > +DI , the trend is weak or moving on the downside. The ADX does not give an indication about the direction but about the strength of the trend.
Typically values of ADX above 25 mean that the trend is steeply moving up or down, based on the -DI and +D positioning. This script aims to capture swings in the DMI, and thus, in the trend of the asset, using a contrarian approach.
Trading on high values of ADX, the strategy tries to spot extremely oversold and overbought conditions. Values of ADX above 45 may suggest that the trend has overextended and is may be about to reverse.
This strategy combines the Ichimoku Cloud with the ADX indicator to better enter trades.
Long orders are placed when these basic signals are triggered.
Long Position:
Tenkan-Sen is above the Kijun-Sen
Chikou-Span is above the close of 26 bars ago
Close is above the Kumo Cloud
MACD line crosses over the signal line
-DI is greater than +DI
ADX is greater than 45
Close Position:
3% increase trailing
3% decrease trailing
The script is backtested from 1 January 2018 and provides good returns.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
This script also works well on MATIC (1d timeframe), ETH (1d timeframe), and SOL (1d timeframe).
VHF Adaptive ADXm [Loxx]VHF Adaptive ADXm is a variation of the ADX DI indicator with adaptive filtering using a vertical horizontal filter.
What is ADXm?
Unlike the traditional ADX indicator, where the ADX itself is plotted in absolute units and detection of the trend direction is hindered, this indicator clearly displays the positive and negative ADX half-waves (displayed as colored on the chart). And the DI+/- signals are displayed as their difference (gray).
The method of using this indicator is the same as the traditional one.
In addition, it displays the levels (dashed), above which the market is considered to be in a trend state. This level is usually set to approximately 20-25 percents--somewhat depends on the time frame it is used on.
What is VHF Adaptive Cycle?
Vertical Horizontal Filter (VHF) was created by Adam White to identify trending and ranging markets. VHF measures the level of trend activity, similar to ADX DI. Vertical Horizontal Filter does not, itself, generate trading signals, but determines whether signals are taken from trend or momentum indicators. Using this trend information, one is then able to derive an average cycle length.
Included:
Bar coloring
Alerts
Signal types: zero-line crosses, level crosses, or signal crosses
ADX +- DiThis Adx +-Di is just a complete version of what the ADX is supposed to signal.
So you have:
15 (contraction), 20 (threshold), 30 (expansion), 40 (resistance) levels.
Below 20 the price is not trending
Above 30 the price is trending
Below 15 price has been in contraction for too long
Between 20 and 30 price is in a "transition zone".
I finally added a "Resistance" level (40), which has to be adapted to best represent the historical levels where price usually encounters resistance, and where the price can be declared "overtrending", which means a return to lower levels is likely to happen.
I've chosen mild colors, and set the Adx Color to White, because I use black background, you can easily change that.
Enjoy
-Maurice
