DCA Strategy with HedgingThis strategy implements a dynamic hedging system with Dollar-Cost Averaging (DCA) based on the 34 EMA. It can hold simultaneous long and short positions, making it suitable for ranging and trending markets.
Key Features:
Uses 34 EMA as baseline indicator
Implements hedging with simultaneous long/short positions
Dynamic DCA for position management
Automatic take-profit adjustments
Entry confirmation using 3-candle rule
How it Works
Long Entries:
Opens when price closes above 34 EMA for 3 candles
Adds positions every 0.1% price drop
Takes profit at 0.05% above average entry
Short Entries:
Opens when price closes below 34 EMA for 3 candles
Adds positions every 0.1% price rise
Takes profit at 0.05% below average entry
Settings
EMA Length: Controls the EMA period (default: 34)
DCA Interval: Price movement needed for additional entries (default: 0.1%)
Take Profit: Profit target from average entry (default: 0.05%)
Initial Position: Starting position size (default: 1.0)
Indicators
L: Long Entry
DL: Long DCA
S: Short Entry
DS: Short DCA
LTP: Long Take Profit
STP: Short Take Profit
Alerts
Compatible with all standard TradingView alerts:
Position Opens (Long/Short)
DCA Entries
Take Profit Hits
Note: This strategy works best on lower timeframes with high liquidity pairs. Adjust parameters based on asset volatility.
المؤشرات والاستراتيجيات
Support Resistance Major/Minor [TradingFinder] Market Structure🔵 Introduction
Support and resistance levels are key concepts in technical analysis, serving as critical points where prices pause or reverse due to the interaction of supply and demand. These foundational elements in price action and classical technical analysis assist traders in understanding market behavior and making better trading decisions.
Support levels are zones where demand is strong enough to prevent further price declines, while resistance levels act as barriers that hinder price increases.
Support and resistance levels are divided into two main types: static and dynamic. Static levels are fixed horizontal lines on charts, formed based on historical price points, and are crucial due to repeated price reactions in these areas.
Dynamic levels, on the other hand, move with market trends and are often identified using tools like moving averages and trendlines. These levels are particularly useful for analyzing dynamic trends and identifying potential reversal points in financial markets.
The importance of support and resistance in technical analysis lies in their ability to pinpoint price reversal or continuation points. Professional traders use these levels to determine optimal entry and exit points and combine them with tools such as Fibonacci retracements or moving averages for precise strategies.
Detailed analysis of price behavior at these levels provides insights into trend strength and the likelihood of price breaks or reversals. By understanding these concepts, technical analysts can forecast future price movements and optimize their trading decisions using tools such as indicators and price action. Support and resistance levels, as a cornerstone of technical analysis, form the foundation for many trading strategies.
🔵 How to Use
The Static Support and Resistance Indicator is a vital tool for identifying significant price zones in financial markets. It automatically detects major and minor support and resistance levels in both short-term and long-term intervals, enabling traders to analyze price behavior accurately and develop optimal entry and exit strategies.
🟣 Major Long-Term Support and Resistance
Major Long-Term Support : The lowest price points recorded over long-term intervals that prevent further declines.
Major Long-Term Resistance : The highest price points in long-term intervals that limit further price increases.
🟣 Minor Long-Term Support and Resistance
Minor Long-Term Support : Temporary halts in price decline within a downtrend over long-term intervals.
Minor Long-Term Resistance : Short-term zones within long-term intervals where prices react negatively in an uptrend.
🟣 Major Short-Term Support and Resistance
Major Short-Term Support : The lowest price points in short-term intervals that act as barriers against sharp price drops.
Major Short-Term Resistance : The highest points in short-term intervals that prevent further price surges.
🟣 Minor Short-Term Support and Resistance
Minor Short-Term Support : Temporary halts in price decline within short-term downtrends.
Minor Short-Term Resistance : Zones where price reacts quickly and reverses in short-term uptrends.
🔵 Settings
Long Term S&R Pivot Period : Defines the interval for identifying long-term support and resistance levels (default: 21).
Short Term S&R Pivot Period : Defines the interval for identifying short-term support and resistance levels (default: 5).
🟣 Long-Term Lines
Major Line Display : Enable/disable major long-term lines.
Minor Line Display : Enable/disable minor long-term lines.
Major Line Colors : Green for support, red for resistance (long-term major levels).
Minor Line Colors : Light green for support, light red for resistance (long-term minor levels).
Major Line Style : Choose between solid, dotted, or dashed lines for major long-term levels.
Minor Line Style : Choose between solid, dotted, or dashed lines for minor long-term levels.
Major Line Width : Adjust the thickness of major long-term lines.
Minor Line Width : Adjust the thickness of minor long-term lines.
🟣 Short-Term Lines
Major Line Display : Enable/disable major short-term lines.
Minor Line Display : Enable/disable minor short-term lines.
Major Line Colors : Gray-green for support, gray-red for resistance (short-term major levels).
Minor Line Colors : Dark green for support, dark red for resistance (short-term minor levels).
Major Line Style : Choose between solid, dotted, or dashed lines for major short-term levels.
Minor Line Style : Choose between solid, dotted, or dashed lines for minor short-term levels.
Major Line Width : Adjust the thickness of major short-term lines.
Minor Line Width : Adjust the thickness of minor short-term lines.
🔵 Conclusion
Static support and resistance levels are among the most critical tools in technical analysis, helping traders identify key reversal or continuation points.
This indicator simplifies and enhances the analysis process by automatically detecting major and minor levels in both short-term and long-term intervals. It allows traders to customize settings to suit their trading strategies and analyze different market levels effectively.
Using this indicator improves price action analysis, enhances market understanding, and identifies trading opportunities. Applicable to all trading styles, from day trading to long-term investing, it is an essential tool for technical analysis.
Combining this indicator with other tools like trendlines, Fibonacci retracements, and moving averages enables comprehensive analysis and allows traders to navigate financial markets with greater confidence.
Visual Range Position Size CalculatorVisual Range Position Size Calculator
The "VR Position Size Calculator" helps traders determine the appropriate position size based on their risk tolerance and the current market conditions. Below is a detailed description of the script, its functionality, and how to use it effectively.
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Key Features
1. Risk Calculation: The script allows users to input their desired risk in monetary terms (in the currency of the ticker). It then calculates the position sizes for both long and short trades based on this risk.
2. Dynamic High and Low Tracking: The script dynamically tracks the highest and lowest prices within the visible range of the chart, allowing for more accurate position sizing.
3. Formatted Output: The calculated values are displayed in a user-friendly table format with thousands separators for better readability.
4. Visual Indicators: Dashed lines are drawn on the chart at the high and low points of the visible range, providing a clear visual reference for traders.
5. If the risk in security price is 1% or less, the background of the cells displaying position sizes will be green for long positions and red for short positions. If the risk is between 1% and 5%, the background changes to gray, indicating that the risk may be too high for an effective trade. If the risk exceeds 5% of the price, the text also turns gray, rendering it invisible, which signifies that there is no justification for such a trade.
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Code Explanation
The script identifies the start and end times of the visible range on the chart, ensuring calculations are based only on the data currently in view. It updates and stores the highest (hh) and lowest (ll) prices within this visible range. At the end of the range, dashed lines are drawn at the high and low prices, providing a visual cue for traders.
Users can input their risk amount, which is then used to calculate potential position sizes for both long and short trades based on the current price relative to the tracked high and low. The calculated risk values and position sizes are displayed in a table on the right side of the chart, with color coding to indicate whether the calculated position size meets specific criteria.
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Usage Instructions
1. Add the Indicator: To use this script, copy and paste it into Pine Script editor, then add it to your chart.
2. Input Your Risk: Adjust the 'Risk in money' input to reflect your desired risk amount for trading.
3. Analyze Position Sizes: Observe the calculated position sizes for both long and short trades displayed in the table. Use this information to guide your trading decisions.
4. Visual Cues: Utilize the dashed lines on the chart to understand recent price extremes within your visible range.
Cash and Carry: Annualized BTC Basis (Parametric)This indicator calculates the annualized BTC basis (premium or discount) between a specified futures contract and a given spot symbol. You can customize the spot ticker, the futures ticker, and the exact expiration date/time. As time moves toward expiration, the annualized yield (basis) will adjust accordingly. Ideal for monitoring potential arbitrage or cash-and-carry opportunities!
Volatility Cycle IndicatorThe Volatility Cycle Indicator is a non-directional trading tool designed to measure market volatility and cycles based on the relationship between standard deviation and Average True Range (ATR). In the Chart GBPAUD 1H time frame you can clearly see when volatility is low, market is ranging and when volatility is high market is expanding.
This innovative approach normalizes the standard deviation of closing prices by ATR, providing a dynamic perspective on volatility. By analyzing the interaction between Bollinger Bands and Keltner Channels, it also detects "squeeze" conditions, highlighting periods of reduced volatility, often preceding explosive price movements.
The indicator further features visual aids, including colored zones, plotted volatility cycles, and highlighted horizontal levels to interpret market conditions effectively. Alerts for key events, such as volatility crossing significant thresholds or entering a squeeze, make it an ideal tool for proactive trading.
Key Features:
Volatility Measurement:
Tracks the Volatility Cycle, normalized using standard deviation and ATR.
Helps identify periods of high and low volatility in the market.
Volatility Zones:
Colored zones represent varying levels of market volatility:
Blue Zone: Low volatility (0.5–0.75).
Orange Zone: Transition phase (0.75–1.0).
Green Zone: Moderate volatility (1.0–1.5).
Fuchsia Zone: High volatility (1.5–2.0).
Red Zone: Extreme volatility (>2.0).
Squeeze Detection:
Identifies when Bollinger Bands contract within Keltner Channels, signaling a volatility squeeze.
Alerts are triggered for potential breakout opportunities.
Visual Enhancements:
Dynamic coloring of the Volatility Cycle for clarity on its momentum and direction.
Plots multiple horizontal levels for actionable insights into market conditions.
Alerts:
Sends alerts when the Volatility Cycle crosses significant levels (e.g., 0.75) or when a squeeze condition is detected.
Non-Directional Nature:
The indicator does not predict the market's direction but rather highlights periods of potential movement, making it suitable for both trend-following and mean-reversion strategies.
How to Trade with This Indicator:
Volatility Squeeze Breakout:
When the indicator identifies a squeeze (volatility compression), prepare for a breakout in either direction.
Use additional directional indicators or chart patterns to determine the likely breakout direction.
Crossing Volatility Levels:
Pay attention to when the Volatility Cycle crosses the 0.75 level:
Crossing above 0.75 indicates increasing volatility—ideal for trend-following strategies.
Crossing below 0.75 signals decreasing volatility—consider mean-reversion strategies.
Volatility Zones:
Enter positions as volatility transitions through key zones:
Low volatility (Blue Zone): Watch for breakout setups.
Extreme volatility (Red Zone): Be cautious of overextended moves or reversals.
Alerts for Proactive Trading:
Configure alerts for squeeze conditions and level crossings to stay updated without constant monitoring.
Best Practices:
Pair the Volatility Cycle Indicator with directional indicators such as moving averages, trendlines, or momentum oscillators to improve trade accuracy.
Use on multiple timeframes to align entries with broader market trends.
Combine with risk management techniques, such as ATR-based stop losses, to handle volatility spikes effectively.
Market Cycles
The Market Cycles indicator transforms market price data into a stochastic wave, offering a unique perspective on market cycles. The wave is bounded between positive and negative values, providing clear visual cues for potential bullish and bearish trends. When the wave turns green, it signals a bullish cycle, while red indicates a bearish cycle.
Designed to show clarity and precision, this tool helps identify market momentum and cyclical behavior in an intuitive way. Ideal for fine-tuning entries or analyzing broader trends, this indicator aims to enhance the decision-making process with simplicity and elegance.
Previous 4-Hour High/Low Indicator Name: Previous 4-Hour High/Low Lines
Description:
This indicator highlights the high and low levels of the previous candle from a user-defined timeframe (default: 4 hours) and extends these levels both to the left and right across the chart. It allows traders to visualize key support and resistance levels from higher timeframes while analyzing lower timeframe charts.
Key Features:
• Customizable Timeframe: Select any timeframe (e.g., 4-hour, daily) to track the high and low of the previous candle.
• Dynamic Updates: The high and low levels update automatically with each new candle.
• Extended Levels: Lines extend both left and right, providing a clear reference for past and future price action.
• Overlay on Chart: The indicator works seamlessly on any timeframe, making it ideal for multi-timeframe analysis.
Use Case:
This tool is perfect for traders who rely on higher timeframe levels for setting entry/exit points, identifying potential breakout zones, or managing risk. By visualizing these levels directly on lower timeframe charts, traders can make informed decisions without switching between charts.
DR Oscillator 8 * Measures price deviation: Calculates the percentage difference between the closing price and a simple moving average.
* Defines upper and lower limits: User-defined upper and lower limits determine overbought and oversold conditions.
* Signal line: A simple moving average of the deviation is plotted as a signal line.
* Deviation smoothing (optional): The deviation can be smoothed using a moving average to create a smoother line.
* Additional signal line (optional): An additional signal line can be added for further analysis.
* Visual representation: The oscillator is plotted with different colors to indicate overbought, oversold, or neutral conditions.
* Background coloring: The background color changes based on the oscillator's value to provide visual cues for buy or sell signals.
In summary:
The DR Oscillator helps traders identify potential buying and selling opportunities by measuring the extent to which a security's price has deviated from its moving average. When the oscillator moves above the upper limit, it suggests that the asset may be overbought and due for a price correction. Conversely, when it moves below the lower limit, it may indicate an oversold condition and a potential buying opportunity.
However, it's important to note that the DR Oscillator is just one tool and should be used in conjunction with other technical indicators and fundamental analysis for more accurate trading decisions.
[blackcat] L2 Kiosotto IndicatorOVERVIEW
The Kiosotto Indicator is a versatile technical analysis tool designed for forex trading but applicable to other financial markets. It excels in detecting market reversals and trends without repainting, ensuring consistent and reliable signals. The indicator has evolved over time, with different versions focusing on specific aspects of market analysis.
KEY FEATURES
Reversal Detection: Identifies potential market reversals, crucial for traders looking to capitalize on turning points.
Trend Detection: Earlier versions focused on detecting trends, useful for traders who prefer to follow the market direction.
Non-Repainting: Signals remain consistent on the chart, providing reliable and consistent signals.
Normalization: Later versions, such as Normalized Kiosotto and Kiosotto_2025, incorporate normalization to assess oversold and overbought conditions, enhancing interpretability.
VERSIONS AND EVOLUTION
Early Versions: Focused on trend detection, useful for following market direction.
2 in 1 Kiosotto: Emphasizes reversal detection and is considered an improvement by users.
Normalized Versions (e.g., Kiosotto_2025, Kiosotto_3_2025): Introduce normalization to assess oversold and overbought conditions, enhancing interpretability.
HOW TO USE THE KIOSOTTO INDICATOR
Understanding Signals:
Reversals: Look for the indicator's signals that suggest a potential reversal, indicated by color changes, line crossings, or other visual cues.
Trends: Earlier versions might show stronger trending signals, indicated by the direction or slope of the indicator's lines.
Normalization Interpretation (for normalized versions):
Oversold: When the indicator hits the lower boundary, it might indicate an oversold condition, suggesting a potential buy signal.
Overbought: Hitting the upper boundary could signal an overbought condition, suggesting a potential sell signal.
PINE SCRIPT IMPLEMENTATION
The provided Pine Script code is a version of the Kiosotto indicator. Here's a detailed explanation of the code:
//@version=5
indicator(" L2 Kiosotto Indicator", overlay=false)
//Pine version of Kiosotto 2015 v4 Alert ms-nrp
// Input parameters
dev_period = input.int(150, "Dev Period")
alerts_level = input.float(15, "Alerts Level")
tsbul = 0.0
tsber = 0.0
hpres = 0.0
lpres = 9999999.0
for i = 0 to dev_period - 1
rsi = ta.rsi(close , dev_period)
if high > hpres
hpres := high
tsbul := tsbul + rsi * close
if low < lpres
lpres := low
tsber := tsber + rsi * close
buffer1 = tsber != 0 ? tsbul / tsber : 0
buffer2 = tsbul != 0 ? tsber / tsbul : 0
// Plotting
plot(buffer1, color=color.aqua, linewidth=3, style=plot.style_histogram)
plot(buffer2, color=color.fuchsia, linewidth=3, style=plot.style_histogram)
hline(alerts_level, color=color.silver)
EXPLANATION OF THE CODE
Indicator Definition:
indicator(" L2 Kiosotto Indicator", overlay=false): Defines the indicator with the name " L2 Kiosotto Indicator" and specifies that it should not be overlaid on the price chart.
Input Parameters:
dev_period = input.int(150, "Dev Period"): Allows users to set the period for the deviation calculation.
alerts_level = input.float(15, "Alerts Level"): Allows users to set the level for alerts.
Initialization:
tsbul = 0.0: Initializes the tsbul variable to 0.0.
tsber = 0.0: Initializes the tsber variable to 0.0.
hpres = 0.0: Initializes the hpres variable to 0.0.
lpres = 9999999.0: Initializes the lpres variable to a very high value.
Loop for Calculation:
The for loop iterates over the last dev_period bars.
rsi = ta.rsi(close , dev_period): Calculates the RSI for the current bar.
if high > hpres: If the high price of the current bar is greater than hpres, update hpres and add the product of RSI and close price to tsbul.
if low < lpres: If the low price of the current bar is less than lpres, update lpres and add the product of RSI and close price to tsber.
Buffer Calculation:
buffer1 = tsber != 0 ? tsbul / tsber : 0: Calculates the first buffer as the ratio of tsbul to tsber if tsber is not zero.
buffer2 = tsbul != 0 ? tsber / tsbul : 0: Calculates the second buffer as the ratio of tsber to tsbul if tsbul is not zero.
Plotting:
plot(buffer1, color=color.aqua, linewidth=3, style=plot.style_histogram): Plots the first buffer as a histogram with an aqua color.
plot(buffer2, color=color.fuchsia, linewidth=3, style=plot.style_histogram): Plots the second buffer as a histogram with a fuchsia color.
hline(alerts_level, color=color.silver): Draws a horizontal line at the alerts_level with a silver color.
FUNCTIONALITY
The Kiosotto indicator calculates two buffers based on the RSI and price levels over a specified period. The buffers are plotted as histograms, and a horizontal line is drawn at the alerts level. The indicator helps traders identify potential reversals and trends by analyzing the relationship between the RSI and price levels.
ALGORITHMS
RSI Calculation:
The Relative Strength Index (RSI) measures the speed and change of price movements. It is calculated using the formula:
RSI=100− (1+RS) / 100
where RS is the ratio of the average gain to the average loss over the specified period.
Buffer Calculation:
The buffers are calculated as the ratio of the sum of RSI multiplied by the close price for high and low price conditions. This helps in identifying the balance between buying and selling pressure.
Signal Generation:
The indicator generates signals based on the values of the buffers and the alerts level. Traders can use these signals to make informed trading decisions, such as entering or exiting trades based on potential reversals or trends.
APPLICATION SCENARIOS
Reversal Trading: Traders can use the Kiosotto indicator to identify potential reversals by looking for significant changes in the buffer values or crossings of the alerts level.
Trend Following: The indicator can also be used to follow trends by analyzing the direction and slope of the buffer lines.
Oversold/Overbought Conditions: For normalized versions, traders can use the indicator to identify oversold and overbought conditions, which can provide buy or sell signals.
THANKS
Special thanks to the TradingView community and the original developers for their contributions and support in creating and refining the Kiosotto Indicator.
Rolling Window Geometric Brownian Motion Projections📊 Rolling GBM Projections + EV & Adjustable Confidence Bands
Overview
The Rolling GBM Projections + EV & Adjustable Confidence Bands indicator provides traders with a robust, dynamic tool to model and project future price movements using Geometric Brownian Motion (GBM). By combining GBM-based simulations, expected value (EV) calculations, and customizable confidence bands, this indicator offers valuable insights for decision-making and risk management.
Key Features
Rolling GBM Projections: Simulate potential future price paths based on drift (μμ) and volatility (σσ).
Expected Value (EV) Line: Represents the average projection of simulated price paths.
Confidence Bands: Define ranges where the price is expected to remain, adjustable from 51% to 99%.
Simulation Lines: Visualize individual GBM paths for detailed analysis.
EV of EV Line: A smoothed trend of the EV, offering additional clarity on price dynamics.
Customizable Lookback Periods: Adjust the rolling lookback periods for drift and volatility calculations.
Mathematical Foundation
1. Geometric Brownian Motion (GBM)
GBM is a mathematical model used to simulate the random movement of asset prices, described by the following stochastic differential equation:
dSt=μStdt+σStdWt
dSt=μStdt+σStdWt
Where:
StSt: Price at time tt
μμ: Drift term (expected return)
σσ: Volatility (standard deviation of returns)
dWtdWt: Wiener process (standard Brownian motion)
2. Drift (μμ) and Volatility (σσ)
Drift (μμ): Represents the average logarithmic return of the asset. Calculated using a simple moving average (SMA) over a rolling lookback period.
μ=SMA(ln(St/St−1),Lookback Drift)
μ=SMA(ln(St/St−1),Lookback Drift)
Volatility (σσ): Measures the standard deviation of logarithmic returns over a rolling lookback period.
σ=STD(ln(St/St−1),Lookback Volatility)
σ=STD(ln(St/St−1),Lookback Volatility)
3. Price Simulation Using GBM
The GBM formula for simulating future prices is:
St+Δt=St×e(μ−12σ2)Δt+σϵΔt
St+Δt=St×e(μ−21σ2)Δt+σϵΔt
Where:
ϵϵ: Random variable from a standard normal distribution (N(0,1)N(0,1)).
4. Confidence Bands
Confidence bands are determined using the Z-score corresponding to a user-defined confidence percentage (CC):
Upper Band=EV+Z⋅σ
Upper Band=EV+Z⋅σ
Lower Band=EV−Z⋅σ
Lower Band=EV−Z⋅σ
The Z-score is computed using an inverse normal distribution function, approximating the relationship between confidence and standard deviations.
Methodology
Rolling Drift and Volatility:
Drift and volatility are calculated using logarithmic returns over user-defined rolling lookback periods (default: μ=20μ=20, σ=16σ=16).
Drift defines the overall directional tendency, while volatility determines the randomness and variability of price movements.
Simulations:
Multiple GBM paths (default: 30) are generated for a specified number of projection candles (default: 12).
Each path is influenced by the current drift and volatility, incorporating random shocks to simulate real-world price dynamics.
Expected Value (EV):
The EV is calculated as the average of all simulated paths for each projection step, offering a statistical mean of potential price outcomes.
Confidence Bands:
The upper and lower bounds of the confidence bands are derived using the Z-score corresponding to the selected confidence percentage (e.g., 68%, 95%).
EV of EV:
A running average of the EV values, providing a smoothed perspective of price trends over the projection horizon.
Indicator Functionality
User Inputs:
Drift Lookback (Bars): Define the number of bars for rolling drift calculation (default: 20).
Volatility Lookback (Bars): Define the number of bars for rolling volatility calculation (default: 16).
Projection Candles (Bars): Set the number of bars to project future prices (default: 12).
Number of Simulations: Specify the number of GBM paths to simulate (default: 30).
Confidence Percentage: Input the desired confidence level for bands (default: 68%, adjustable from 51% to 99%).
Visualization Components:
Simulation Lines (Blue): Display individual GBM paths to visualize potential price scenarios.
Expected Value (EV) Line (Orange): Highlight the mean projection of all simulated paths.
Confidence Bands (Green & Red): Show the upper and lower confidence limits.
EV of EV Line (Orange Dashed): Provide a smoothed trendline of the EV values.
Current Price (White): Overlay the real-time price for context.
Display Toggles:
Enable or disable components (e.g., simulation lines, EV line, confidence bands) based on preference.
Practical Applications
Risk Management:
Utilize confidence bands to set stop-loss levels and manage trade risk effectively.
Use narrower confidence intervals (e.g., 50%) for aggressive strategies or wider intervals (e.g., 95%) for conservative approaches.
Trend Analysis:
Observe the EV and EV of EV lines to identify overarching trends and potential reversals.
Scenario Planning:
Analyze simulation lines to explore potential outcomes under varying market conditions.
Statistical Insights:
Leverage confidence bands to understand the statistical likelihood of price movements.
How to Use
Add the Indicator:
Copy the script into the TradingView Pine Editor, save it, and apply it to your chart.
Customize Settings:
Adjust the lookback periods for drift and volatility.
Define the number of projection candles and simulations.
Set the confidence percentage to tailor the bands to your strategy.
Interpret the Visualization:
Use the EV and confidence bands to guide trade entry, exit, and position sizing decisions.
Combine with other indicators for a holistic trading strategy.
Disclaimer
This indicator is a mathematical and statistical tool. It does not guarantee future performance.
Use it in conjunction with other forms of analysis and always trade responsibly.
Happy Trading! 🚀
Larry Williams: Market StructureLarry Williams' Three-Bar System of Highs and Lows: A Definition of Market Structure
Larry Williams developed a method of market structure analysis based on identifying local extrema using a sequence of three consecutive bars. This approach helps traders pinpoint significant turning points on the price chart.
Definition of Local Extrema:
Local High:
Consists of three bars where the middle bar has the highest high, while the lows of the bars on either side are lower than the low of the middle bar.
Local Low:
Consists of three bars where the middle bar has the lowest low, while the highs of the bars on either side are higher than the high of the middle bar.
This structure helps identify meaningful reversal points on the price chart.
Constructing the Zigzag Line:
Once the local highs and lows are determined, they are connected with lines to create a zigzag pattern.
This zigzag reflects the major price swings, filtering out minor fluctuations and market noise.
Medium-Term Market Structure:
By analyzing the sequence of local extrema, it is possible to determine the medium-term market trend:
Upward Structure: A sequence of higher highs and higher lows.
Downward Structure: A sequence of lower highs and lower lows.
Sideways Structure (Flat): Lack of a clear trend, where highs and lows remain approximately at the same level.
This method allows traders and analysts to better understand the current market phase and make informed trading decisions.
Built-in Indicator Feature:
The indicator includes a built-in functionality to display Intermediate Term Highs and Lows , which are defined by filtering short-term highs and lows as described in Larry Williams' methodology. This feature is enabled by default, ensuring traders can immediately visualize key levels for support, resistance, and trend assessment.
Quote from Larry Williams' Work on Intermediate Term Highs and Lows:
"Now, the most interesting part! Look, if we can identify a short-term high by defining it as a day with lower highs (excluding inside days) on both sides, we can take a giant leap forward and define an intermediate term high as any short-term high with lower short-term highs on both sides. But that’s not all, because we can take it even further and say that any intermediate term high with lower intermediate term highs on both sides—you see where I’m going—forms a long-term high.
For many years, I made a very good living simply by identifying these points as buy and sell signals. These points are the only valid support and resistance levels I’ve ever found. They are crucial, and the breach of these price levels provides important information about trend development and changes. Therefore, I use them for placing stop loss protection and entry methods into the market."
— Larry Williams
This insightful quote highlights the practical importance of identifying market highs and lows at different timeframes and underscores their role in effective trading strategies.
Money Flow ExtendedMoney Flow Extended (MF)
Definition
The Money Flow Extended (MF) indicator brings together the functionality of the Money Flow Index indicator (MFI) , a tool created by Gene Quong and Avrum Soudack and used in technical analysis for measuring buying and selling pressure, and The Relative Strength Index (RSI) , a well versed momentum based oscillator created by J.Welles Wilder Jr., which is used to measure the speed (velocity) as well as the change (magnitude) of directional price movements.
History
As the Money Flow Index (MFI) is quite similar to The Relative Strength Index (RSI), essentially the RSI with the added aspect of volume, adding a Moving Average, divergence calculation, oversold and overbought gradients, facilitates the transition from RSI, making the use of MFI pretty similar.
What to look for
Overbought/Oversold
When momentum and price rise fast enough, at a high enough level, eventual the security will be considered overbought. The opposite is also true. When price and momentum fall far enough, they can be considered oversold. Traditional overbought territory starts above 80 and oversold territory starts below 20. These values are subjective however, and a technical analyst can set whichever thresholds they choose.
Divergence
MF Divergence occurs when there is a difference between what the price action is indicating and what MF is indicating. These differences can be interpreted as an impending reversal. Specifically, there are two types of divergences, bearish and bullish.
Bullish MFI Divergence – When price makes a new low but MF makes a higher low.
Bearish MFI Divergence – When price makes a new high but MF makes a lower high.
Failure Swings
Failure swings are another occurrence which can lead to a price reversal. One thing to keep in mind about failure swings is that they are completely independent of price and rely solely on MF. Failure swings consist of four steps and are considered to be either Bullish (buying opportunity) or Bearish (selling opportunity).
Bullish Failure Swing
MF drops below 20 (considered oversold).
MF bounces back above 20.
MF pulls back but remains above 20 (remains above oversold)
MF breaks out above its previous high.
Bearish Failure Swing
MF rises above 80 (considered overbought)
MF drops back below 80
MF rises slightly but remains below 80 (remains below overbought)
MF drops lower than its previous low.
Summary
The Money Flow Extended (MF) can be a very valuable technical analysis tool. Of course, MF should not be used alone as the sole source for a trader’s signals or setups. MF can be combined with additional indicators or chart pattern analysis to increase its effectiveness.
Inputs
Length
The time period to be used in calculating the MF. 14 is the default.
Pivot Loopback
After how many bars you want the divergence to show, on the scale of 1-5. 5 is the default.
Calculate Divergence
Calculating divergences is needed in order for divergence alerts to fire.
Moving Average section
You can learn more about the inputs in the "Moving Average" section in this Help Center article .
Style
MF
Can toggle the visibility of the MF as well as the visibility of a price line showing the actual current value of the MF. Can also select the MF Line's color, line thickness and visual style.
MF-based MA
Can toggle the visibility of the MF-based MA as well as the visibility of a price line showing the actual current MA value. Can also select its color, line thickness and line style.
MF Upper Band
Can toggle the visibility of the Upper Band as well as sets the boundary, on the scale of 1-100, for the Upper Band (80 is the default). The color, line thickness and line style can also be determined.
MF Middle Band
Can toggle the visibility of the Middle Band as well as sets the boundary, on the scale of 1-100, for the Middle Band (50 is the default). The color, line thickness and line style can also be determined.
MF Lower Band
Can toggle the visibility of the Lower Band as well as sets the boundary, on the scale of 1-100, for the Lower Band (20 is the default). The color, line thickness and line style can also be determined.
MF Background Fill
Toggles the visibility of a Background color within the MF's boundaries. Can also change the Color itself as well as the opacity.
Overbought Gradient Fill
Can toggle the visibility of the Overbought Gradient Fill. Can also select its colors combination.
Oversold Gradient Fill
Can toggle the visibility of the Oversold Gradient Fill. Can also select its colors combination.
Precision
Sets the number of decimal places to be left on the indicator's value before rounding up. The higher this number, the more decimal points will be on the indicator's value.
BTC Trendline Patterns with Signals BTC Trendline Patterns with Signals
This custom Pine Script indicator automatically detects key pivot points in Bitcoin price action and draws support and resistance trendlines. The indicator provides buy (long) and sell (short) signals when these trendlines are broken. This can help traders identify potential breakout opportunities and trend reversals based on established price levels.
Features:
Pivot Point Detection: Automatically identifies pivot highs and lows in the price chart, based on customizable parameters (Pivot Left and Pivot Right).
Support and Resistance Trendlines: Draws trendlines based on the identified pivot points. These lines represent significant price levels where price may experience support or resistance.
Breakout Signals: Provides buy (long) and sell (short) signals when the price breaks above the resistance trendline (for buy signals) or below the support trendline (for sell signals).
Customizable Pivot Lengths: Adjust the number of bars considered for determining pivot points using the Pivot Left and Pivot Right input parameters.
How it Works:
Pivot Detection: The script identifies the highest high (pivotHigh) and the lowest low (pivotLow) within a specific range of bars (defined by Pivot Left and Pivot Right).
Trendline Plotting: Once pivots are detected, the script draws resistance (red) and support (green) trendlines connecting the most recent pivots. These trendlines act as dynamic support and resistance levels.
Breakout Signals: The script generates signals:
BUY (Long): Triggered when the price breaks above the most recent resistance trendline.
SELL (Short): Triggered when the price breaks below the most recent support trendline.
Parameters:
Pivot Left: Number of bars to the left of the pivot point to consider.
Pivot Right: Number of bars to the right of the pivot point to consider.
Line Width: Customizable line width for drawing trendlines.
Ideal Use:
Timeframes: This indicator works well on timeframes ranging from 1-minute to daily charts. For best results, use it on 1-hour, 4-hour, or daily charts.
Strategy: Ideal for breakout traders or trend-following strategies. Use it to identify potential entry points when price breaks key levels of support or resistance.
Example Use Case:
Swing Traders: Traders looking for potential breakouts can use this script to identify key levels in the market and wait for the price to break through resistance for a long trade or support for a short trade.
Day Traders: For those looking to enter and exit trades in a single day, this indicator can help pinpoint areas of support and resistance, and provide actionable signals when price breaks those levels.
Disclaimer:
This script is not a guarantee of success and should be used in conjunction with other technical analysis tools. Always perform additional research and backtesting before live trading.
Important Notes:
The pivot points and trendlines may adjust dynamically as the price evolves. Adjust the pivot settings to suit the volatility and timeframe of the market you're trading.
This indicator works best when combined with other indicators such as volume, RSI, or MACD for confirmation.
How to Use:
Add the indicator to your chart.
Adjust the Pivot Left and Pivot Right parameters to fine-tune the pivot point detection.
Monitor for trendline breakouts. When the price breaks above the resistance line, a BUY signal will appear. When the price breaks below the support line, a SELL signal will appear.
Use the signals to enter trades at the right moment.
Final Notes:
If you're submitting to TradingView for publishing, keep your description clear and informative, but also concise. Traders need to quickly understand how your indicator works, what parameters they can adjust, and how it might fit into their trading strategy.
Crypto/Stable Mcap Ratio NormalizedCreate a normalized ratio of total crypto market cap to stablecoin supply (USDT + USDC + DAI). Idea is to create a reference point for the total market cap's position, relative to total "dollars" in the crypto ecosystem. It's an imperfect metric, but potentially helpful. V0.1.
This script provides four different normalization methods:
Z-Score Normalization:
Shows how many standard deviations the ratio is from its mean
Good for identifying extreme values
Mean-reverting properties
Min-Max Normalization:
Scales values between 0 and 1
Good for relative position within recent range
More sensitive to recent changes
Percent of All-Time Range:
Shows where current ratio is relative to all-time highs/lows
Good for historical context
Less sensitive to recent changes
Bollinger Band Position:
Similar to z-score but with adjustable sensitivity
Good for trading signals
Can be tuned via standard deviation multiplier
Features:
Adjustable lookback period
Reference bands for overbought/oversold levels
Built-in alerts for extreme values
Color-coded plots for easy visualization
MACD Pseudo Super Smoother [MACDPSS]The MACD Pseudo Super Smoother (MACDPSS) is a variation of the classic Moving Average Convergence Divergence (MACD) indicator. It utilizes the Pseudo Super Smoother (PSS) filter, a Finite Impulse Response (FIR) filter, to smooth both the MACD line and the signal line, providing a potentially refined representation of momentum compared to the traditional MACD which typically uses Exponential Moving Averages (EMAs).
The PSS, inspired by the Super Smoother filter (an Infinite Impulse Response (IIR) filter), aims to reduce noise while minimizing lag. The MACDPSS leverages this FIR implementation to create a unique MACD variant. The core concept of MACD, which involves analyzing the relationship between two moving averages of different lengths to identify momentum shifts, remains intact.
Filter Types and Customization
The MACDPSS offers independent control over the smoothing applied to the MACD line and the signal line through two "Filter Style" inputs:
Oscillator MA Type: This setting determines the filter type used to calculate the fast and slow moving averages that form the basis of the MACD line.
Signal Line MA Type: This setting controls the filter type used to smooth the MACD line, generating the signal line.
Each of these settings allows a choice between two distinct PSS filter types:
Type 1: Provides a smoother output with a more gradual response, characterized by greater attenuation of high-frequency components.
Type 2: Exhibits increased reactivity, allowing for a faster response to shifts in momentum, but with a potential for overshoot.
This dual-filter approach provides flexibility in tailoring the indicator's responsiveness and smoothness to individual preferences and specific market conditions. The user can, for example, choose a smoother Type 1 filter for the MACD line and a more reactive Type 2 filter for the signal line, or vice-versa.
Calculations
The MACDPSS calculates the MACD line by subtracting the slow moving average from the fast moving average, both derived using the PSS filter with the selected "Oscillator MA Type." The signal line is then calculated by applying the PSS filter with the selected "Signal Line MA Type" to the MACD line. The histogram represents the difference between the MACD line and the signal line.
Interpretation
The interpretation of the MACDPSS is similar to the standard MACD. Crossovers between the MACD line and the signal line, the position of the MACD line relative to the zero line, and the slope and direction of the histogram are all used to gauge momentum and potential trend changes.
Disclaimer
The MACDPSS, while inspired by the Super Smoother, utilizes a distinct FIR approximation (the PSS). Therefore, its behavior will not perfectly mirror that of a MACD calculated using IIR filters. The PSS is designed to be a rough approximation. This indicator should be used in conjunction with other technical analysis tools, and users should be aware of the inherent differences between FIR and IIR filter characteristics when interpreting the indicator's signals. Like any moving average based indicator, the MACDPSS is a lagging indicator, although it tries to improve it. The novelty of this indicator comes from applying a unique FIR filter to a classic momentum oscillator in a configurable way.
Pseudo Super Smoother [PSS]The Pseudo Super Smoother (PSS) is a a Finite Impulse Response (FIR) filter. It provides a smoothed representation of the underlying data. This indicator can be considered a variation of a moving average, offering a unique approach to filtering price or other data series.
The PSS is inspired by the Super Smoother filter, known for its ability to reduce noise while maintaining a relatively low delay. However, the Super Smoother is an Infinite Impulse Response (IIR) filter. The PSS attempts to approximate some characteristics of the Super Smoother using an FIR design, which offers inherent stability.
The indicator offers two distinct filter types, selectable via the "Filter Style" input: Type 1 and Type 2 . Type 1 provides a smoother output with a more gradual response to changes in the input data. It is characterized by a greater attenuation of high-frequency components. Type 2 exhibits increased reactivity compared to Type 1 , allowing for a faster response to shifts in the underlying data trend, albeit with a potential overshoot. The choice between these two types will depend on the specific application and the preference for responsiveness versus smoothness.
The PSS calculates the FIR filter coefficients based on a decaying exponential function, adjusted according to the selected filter type and the user-defined period. The filter then applies these coefficients to a window of past data, effectively creating a weighted average that emphasizes more recent data points to varying degrees. The PSS uses a specific initialization technique that uses the first non-null data point to pre-fill the input window, which helps it start right away.
The PSS is an approximation of the Super Smoother filter using an FIR design. While it try's to emulate some of the Super Smoother's smoothing characteristics, users should be aware that the frequency response and overall behavior will differ due to it being a rough approximation. The PSS should be considered an experimental indicator and used in conjunction with other analysis techniques. This is, effectively, just another moving average, but its novelty lies in its attempt to bridge the gap between FIR and IIR filter designs for a specific smoothing goal.
10-Year Yields Table for Major CurrenciesThe "10-Year Yields Table for Major Currencies" indicator provides a visual representation of the 10-year government bond yields for several major global economies, alongside their corresponding Rate of Change (ROC) values. This indicator is designed to help traders and analysts monitor the yields of key currencies—such as the US Dollar (USD), British Pound (GBP), Japanese Yen (JPY), and others—on a daily timeframe. The 10-year yield is a crucial economic indicator, often used to gauge investor sentiment, inflation expectations, and the overall health of a country's economy (Higgins, 2021).
Key Components:
10-Year Government Bond Yields: The indicator displays the daily closing values of 10-year government bond yields for major economies. These yields represent the return on investment for holding government bonds with a 10-year maturity and are often considered a benchmark for long-term interest rates. A rise in bond yields generally indicates that investors expect higher inflation and/or interest rates, while falling yields may signal deflationary pressures or lower expectations for future economic growth (Aizenman & Marion, 2020).
Rate of Change (ROC): The ROC for each bond yield is calculated using the formula:
ROC=Current Yield−Previous YieldPrevious Yield×100
ROC=Previous YieldCurrent Yield−Previous Yield×100
This percentage change over a one-day period helps to identify the momentum or trend of the bond yields. A positive ROC indicates an increase in yields, often linked to expectations of stronger economic performance or rising inflation, while a negative ROC suggests a decrease in yields, which could signal concerns about economic slowdown or deflation (Valls et al., 2019).
Table Format: The indicator presents the 10-year yields and their corresponding ROC values in a table format for easy comparison. The table is color-coded to differentiate between countries, enhancing readability. This structure is designed to provide a quick snapshot of global yield trends, aiding decision-making in currency and bond market strategies.
Plotting Yield Trends: In addition to the table, the indicator plots the 10-year yields as lines on the chart, allowing for immediate visual reference of yield movements across different currencies. The plotted lines provide a dynamic view of the yield curve, which is a vital tool for economic analysis and forecasting (Campbell et al., 2017).
Applications:
This indicator is particularly useful for currency traders, bond investors, and economic analysts who need to monitor the relationship between bond yields and currency strength. The 10-year yield can be a leading indicator of economic health and interest rate expectations, which often impact currency valuations. For instance, higher yields in the US tend to attract foreign investment, strengthening the USD, while declining yields in the Eurozone might signal economic weakness, leading to a depreciating Euro.
Conclusion:
The "10-Year Yields Table for Major Currencies" indicator combines essential economic data—10-year government bond yields and their rate of change—into a single, accessible tool. By tracking these yields, traders can better understand global economic trends, anticipate currency movements, and refine their trading strategies.
References:
Aizenman, J., & Marion, N. (2020). The High-Frequency Data of Global Bond Markets: An Analysis of Bond Yields. Journal of International Economics, 115, 26-45.
Campbell, J. Y., Lo, A. W., & MacKinlay, A. C. (2017). The Econometrics of Financial Markets. Princeton University Press.
Higgins, M. (2021). Macroeconomic Analysis: Bond Markets and Inflation. Harvard Business Review, 99(5), 45-60.
Valls, A., Ferreira, M., & Lopes, M. (2019). Understanding Yield Curves and Economic Indicators. Financial Markets Review, 32(4), 72-91.
MERRY CHRISTMAS HAPPY 2025 Year [TradingFinder]🎅🎄✨ Merry Christmas and Happy New Year 2025! 🎉✨
As we bid farewell to 2024 and welcome the fresh opportunities of 2025, we want to send our warmest wishes to all the amazing TradingView users, Pine Script developers, and loyal followers of TradingFinder.
Your enthusiasm and support have made this community stronger and more inspiring every day. May this holiday season bring you happiness, success, and prosperity both in life and in trading.
We also wish for all of you to make great profits and achieve your financial goals in the new year. Let's make 2025 a year filled with innovation, growth, and great achievements together.
Thank you for being part of this journey! 🎅🌟📈
ATR news targetThis indicator is based on the calculation of the ATR and the use of multipliers to define specific price levels. It is crucial that it is fixed to the price axis.
During periods of high volatility, such as during the release of macroeconomic data, it is essential to understand the magnitude of price movements.
By multiplying the ATR (customizable period) by specific multipliers (customizable variables), exit targets (stop loss and take profit) are determined based on the current volatility, ensuring greater adaptability to the market.
The directionality will be determined by the news, but thanks to the indicator (calculated on the last closed candle), you will have the ability to precisely determine stop loss, take profit, and retracement points.
Forex Pair Yield Momentum This Pine Script strategy leverages yield differentials between the 2-year government bond yields of two countries to trade Forex pairs. Yield spreads are widely regarded as a fundamental driver of currency movements, as highlighted by international finance theories like the Interest Rate Parity (IRP), which suggests that currencies with higher yields tend to appreciate due to increased capital flows:
1. Dynamic Yield Spread Calculation:
• The strategy dynamically calculates the yield spread (yield_a - yield_b) for the chosen Forex pair.
• Example: For GBP/USD, the spread equals US 2Y Yield - UK 2Y Yield.
2. Momentum Analysis via Bollinger Bands:
• Yield momentum is computed as the difference between the current spread and its moving
Bollinger Bands are applied to identify extreme deviations:
• Long Entry: When momentum crosses below the lower band.
• Short Entry: When momentum crosses above the upper band.
3. Reversal Logic:
• An optional checkbox reverses the trading logic, allowing long trades at the upper band and short trades at the lower band, accommodating different market conditions.
4. Trade Management:
• Positions are held for a predefined number of bars (hold_periods), and each trade uses a fixed contract size of 100 with a starting capital of $20,000.
Theoretical Basis:
1. Yield Differentials and Currency Movements:
• Empirical studies, such as Clarida et al. (2009), confirm that interest rate differentials significantly impact exchange rate dynamics, especially in carry trade strategies .
• Higher-yields tend to appreciate against lower-yielding currencies due to speculative flows and demand for higher returns.
2. Bollinger Bands for Momentum:
• Bollinger Bands effectively capture deviations in yield momentum, identifying opportunities where price returns to equilibrium (mean reversion) or extends in trend-following scenarios (momentum breakout).
• As Bollinger (2001) emphasized, this tool adapts to market volatility by dynamically adjusting thresholds .
References:
1. Dornbusch, R. (1976). Expectations and Exchange Rate Dynamics. Journal of Political Economy.
2. Obstfeld, M., & Rogoff, K. (1996). Foundations of International Macroeconomics.
3. Clarida, R., Davis, J., & Pedersen, N. (2009). Currency Carry Trade Regimes. NBER.
4. Bollinger, J. (2001). Bollinger on Bollinger Bands.
5. Mendelsohn, L. B. (2006). Forex Trading Using Intermarket Analysis.
EMA Crossover Strategy with 50 & 200 EMAs - Faisal AnwarThis indicator uses 50 and 200-day Exponential Moving Averages (EMAs) to identify significant trend directions and potential trading opportunities through golden crossovers and death crosses. It highlights the role of EMAs as dynamic support in uptrends and downtrends, enhancing trend-following strategies.
Detailed Explanation:
EMAs Used:
The strategy utilizes two key EMAs — the 50-day EMA and the 200-day EMA. The 50-day EMA is often seen as a medium-term trend indicator, while the 200-day EMA is regarded as a benchmark for the long-term market trend.
Golden Crossover:
This occurs when the 50-day EMA crosses above the 200-day EMA, traditionally considered a bullish signal indicating potential long positions.
Death Cross:
This event is marked by the 50-day EMA crossing below the 200-day EMA, typically viewed as a bearish signal suggesting potential short positions.
Trend Support Identification:
The script also identifies when the price is above the 50-day EMA during an uptrend (indicating ongoing support) and when the price is above the 200-day EMA during a downtrend, suggesting the EMA is acting as resistance turning into support.
Visual Tools:
The indicator plots these EMAs on the chart with distinct colors for easy differentiation and uses background color changes to visually indicate when these EMAs act as support. Buy and sell signals are clearly marked with shapes and text directly on the chart for actionable insights.
Usage Tips:
Trading Decisions:
This indicator is best used in markets with clear trends, where EMAs can effectively identify shifts in momentum and serve as reliable support or resistance levels.
Complementary Tools:
Consider combining this EMA strategy with other technical analysis tools like RSI or MACD for confirmation of signals to enhance the reliability of the trading signals.
Ideal for:
Traders looking for a visual tool to assist in identifying trend directions and optimal points for entering or exiting trades based on established technical analysis principles.
CRT TBSThe CRT Candle Marker is a custom indicator designed to identify and highlight specific candlestick patterns on a chart. This indicator focuses on detecting candles where the body of the candlestick is larger than the combined size of its wicks (upper and lower). Such candles often indicate strong momentum in the market, making them valuable for traders who rely on price action analysis.
Features
Automatic Detection: The indicator automatically scans all candlesticks on the chart to identify CRT candles.
Visual Marking: Once a CRT candle is detected, it places a label with the text "CRT" above the candlestick for easy identification.
Customizable Design: The label is styled with a blue background and white text, ensuring it stands out clearly on the chart.
Use Case
The CRT Candle Marker is particularly useful for traders who:
Want to identify strong momentum candles that could signal potential trend continuation or reversal points.
Rely on price action strategies and need visual cues to spot significant patterns quickly.
Analyze candlestick behavior to confirm entry or exit points in their trading strategies.
How to Use
Copy the Pine Script code and paste it into the Pine Editor in TradingView.
Click Add to Chart to apply the indicator.
Look for candles marked with the "CRT" label to identify strong momentum candles.
Example Scenario
Imagine you're analyzing a chart and looking for strong bullish momentum. With the CRT Candle Marker, you can easily spot candles where the buyers dominated the session, as indicated by a large body relative to the wicks. Similarly, bearish CRT candles could indicate strong selling pressure.
Conclusion
The CRT Candle Marker is a simple yet powerful tool for traders who want to enhance their candlestick analysis. By highlighting significant momentum candles, this indicator helps traders make more informed decisions and improve their overall trading performance.
Enhanced SMA Signal Box With TargetsEnhanced SMA Signal Box With Targets
The Enhanced SMA Signal Box With Targets indicator is a versatile tool designed to help traders identify buy and sell signals based on various technical analysis methods, including Simple Moving Averages (SMA), Exponential Moving Averages (EMA), and Average True Range (ATR). This indicator provides clear visual signals and target levels to assist traders in making informed decisions.
Key Features
Simple Moving Averages (SMA):
20 SMA: Represents short-term price trends.
50 SMA: Represents long-term price trends.
Exponential Moving Average (EMA):
50 EMA: Adds additional trend confirmation to the SMA.
Signal Visualization:
Buy Signals: Displayed with a green "🚀" emoji below the candle when the closing price crosses above the 20 SMA.
Sell Signals: Displayed with a red "💣" emoji above the candle when the closing price crosses below the 20 SMA.
Yellow Box: Highlights the signal candle, making it easy to identify the most recent and historical signals.
Target Prices:
First Target: Based on the size of the signal candle.
Second and Third Targets: Calculated using the ATR multiplied by a user-defined factor to help set profit-taking levels.
Customizable Filters:
MACD Filter: Users can enable this filter to use MACD line crossings for signal confirmation.
Higher Timeframe SMA Filter: Users can set a higher timeframe SMA to filter signals based on the long-term trend.
Volume Filter: Users can set a minimum volume threshold for signals.
Alerts:
Users can enable alerts for buy and sell signals, ensuring they never miss a trading opportunity.
Customizable Settings:
Line Colors and Thickness: Users can adjust the colors and thickness of the SMAs, EMA, and signal boxes.
Signal Emojis: Users can choose custom emojis for buy and sell signals.
How It Works
Trend Calculation: The indicator calculates short-term and long-term trends using the 20 SMA, 50 SMA, and 50 EMA.
Signal Generation: Buy and sell signals are generated when the price crosses the 20 SMA, with optional confirmation from MACD and volume filters.
Target Calculation: Profit targets are based on the size of the signal candle and ATR, helping traders set realistic profit-taking levels.
Important Notice
This indicator is designed for educational purposes and should not be considered as financial advice. Past performance does not guarantee future results. Users should conduct their own research and analysis before making any trading decisions. Trading involves substantial risk and is not suitable for every investor. Always consider your financial situation, investment objectives, and risk tolerance before trading. Please ensure you comply with all the relevant regulations and TradingView's house rules while using this indicator.
