RSI Pivots with Divergence Overlay█ OVERVIEW
The RSI Pivots with Divergence Overlay indicator is an advanced tool based on RSI, displaying dynamic bands on the price chart to simplify the identification of overbought and oversold conditions. Pivot points and divergences between them are derived from these bands, providing a comprehensive view of the market and enabling the creation of various trading strategies based on this single indicator.
█ CONCEPTS
Areas where RSI exits the bands are often reversal points in the market. The concept of this indicator is to highlight places where the probability of a trend reversal increases. Therefore, pivots and divergences have been added to better identify these key moments. Additionally, the bands allow viewing the market context in relation to the RSI indicator, facilitating analysis of momentum and volatility.
█ KEY FEATURES
Dynamic Bands and RSI Signals: The bands are calculated based on the closing price and RSI value, with dynamic scaling adjusted to market volatility. The upper band corresponds to overbought levels, the lower to oversold, and the midline is their average. The price level relative to the bands serves as a visual RSI signal, indicating potential overbought or oversold conditions.
Pivot Points: The indicator identifies local price highs and lows in relation to RSI levels. The pivot level is taken from the high/low of the candle. A high pivot is detected when the high of the candle reaches a local maximum after crossing the upper RSI level (overbought), signaling a potential reversal. A low pivot appears after a local price minimum following a drop below the lower RSI level (oversold), indicating a possible uptrend reversal. The pivot length (default 2 bars) defines the search range for these extremes, meaning that with a length of 2, a potential divergence signal will appear with a 2-candle delay, as this is the minimum time required to confirm a local pivot. Pivot lines are drawn on the chart, and labels display the RSI value (from the close of the candle) and price at the detection moment. Pivot lines disappear after the detection of the next low pivot for lower lines and high pivot for upper lines, but unbreached lines or those with high volume may still serve as support or resistance levels.
Divergence Detection: The indicator automatically detects divergences to predict trend changes. Bearish divergence occurs when the price forms a higher high pivot, but the RSI (from the close of the candle) is lower than in the previous pivot, indicating weakening upward momentum and a potential bearish reversal. Bullish divergence appears when the price forms a lower low pivot, but the RSI is higher, suggesting building momentum and a possible bullish reversal. Divergences are marked in pivot labels (e.g., "Bear Div" or "Bull Div") and supported by alerts upon detection.
Return Signals: The indicator generates buy and sell signals based on RSI (price) returning to the bands after extreme conditions, independently of pivots and divergences. A buy signal is triggered when RSI (price) crosses above the lower level (exiting oversold), suggesting a potential price rise toward the midline or upper band. A sell signal occurs when RSI (price) falls below the upper level (exiting overbought), indicating a possible price drop toward the lower band. Signals are visualized as arrows (up/down triangles) on the chart, with customizable colors.
█ CONFIGURATION
The indicator offers extensive customization options:
RSI Length (rsiLength): Sets the number of periods used to calculate RSI (default 14).
RSI Upper Level (rsiUpper): Defines the overbought threshold (default 70).
RSI Lower Level (rsiLower): Defines the oversold threshold (default 30).
Band Scaling (scale): Determines the scaling multiplier for bands based on market volatility (default 15.0).
SMA Length for Candle Midpoint (length): Number of periods for calculating the moving average of candle midpoints (default 200). This parameter is used to smooth price data, enabling more accurate volatility assessment and band width adjustment to market dynamics.
Pivot Length (pivotLength): Sets the range (in bars) for detecting local price extremes (default 2).
Pivot Label Offset (pivotLabelOffset): Multiplier for the candle range to position pivot labels (default 0.3).
Show Bands (showBands): Enables/disables the display of bands on the chart.
Show Fill (showFill): Enables/disables the fill between bands and the midline.
Show Pivot Lines (showPivotLines): Enables/disables pivot lines on the chart.
Show Pivot Labels (showPivotLabels): Enables/disables labels with RSI and price values at pivots.
Show Return Signals (showReturnSignals): Enables/disables the display of buy and sell signals.
Colors and Style: Customizable colors for bands, fills, pivot lines, labels, and line widths (default 1).
█ USAGE
The indicator performs best when combined with other technical analysis tools, such as Fibonacci levels, moving averages, or trendlines, to confirm pivot, divergence, and return signals. It enables traders to identify key reversal points, detect hidden trend weaknesses through divergences, and confirm trade entries with return signals.
Usage Examples:
Price bounces off a previous pivot with high volume – this increases the probability of a trend change or correction.
A similar situation when RSI is outside the bands strengthens the signal.
If divergence occurs in addition, we have further confirmation.
This can be combined with Fibonacci levels to check if Fibo zones overlap with pivot lines – this may increase the chance of a strong price reaction.
█ ALERTS
The indicator supports alerts for:
Buy and sell signals (RSI returning to bands).
Detection of bearish and bullish divergences.
ابحث في النصوص البرمجية عن "band"
Playbook//@version=6
indicator('Playbook', overlay = true, scale = scale.right)
// === Inputs ===
useYesterdayPOC = input.bool(true, 'Use Yesterday\'s POC (else Today’s Developing)')
atrLength = input.int(14, 'ATR Length', minval = 1)
stretchMult = input.float(1.5, 'Stretch Threshold (in ATRs)', minval = 0.1, step = 0.1)
showBands = input.bool(true, "Show Stretch Bands")
useAnchoredVWAP = input.bool(true, "Show Anchored VWAP")
anchorDate = input.time(timestamp("01 Jan 2023 00:00 +0000"), "VWAP Anchor Date")
// === ATR ===
atr = ta.atr(atrLength)
isNewDay = ta.change(time('D')) != 0
// === VWAP as POC Approximation ===
todayVWAP = ta.vwap
var float yVWAP = na
if isNewDay
yVWAP := todayVWAP
activePOC = useYesterdayPOC and not na(yVWAP) ? yVWAP : todayVWAP
// === Stretch Bands ===
upperBand = activePOC + atr * stretchMult
lowerBand = activePOC - atr * stretchMult
// Plot stretch bands
pocColor = color.yellow
bandFill = plot(upperBand, "Upper Band", color=color.red, linewidth=1, display=showBands ? display.all : display.none)
bandFill2 = plot(lowerBand, "Lower Band", color=color.green, linewidth=1, display=showBands ? display.all : display.none)
pocLine = plot(activePOC, "POC Target", color=pocColor, linewidth=2)
fill(bandFill, bandFill2, color=color.new(color.gray, 90))
// === Anchored VWAP ===
anchoredVWAP = ta.vwap(ta.change(time) >= anchorDate ? close : na)
plot(useAnchoredVWAP ? anchoredVWAP : na, "Anchored VWAP", color=color.blue, linewidth=2)
// === STATUS TABLE ===
var table statusTable = table.new(position.bottom_right, 1, 1, border_width=1, border_color=color.gray)
insideBands = close <= upperBand and close >= lowerBand
statusText = insideBands ? "WAIT" : "TRADE AVAILABLE"
statusColor = insideBands ? color.orange : color.green
table.cell(statusTable, 0, 0, statusText, text_color=color.rgb(5, 4, 4), bgcolor=statusColor)
// === Heatmap ===
bgcolor(close > upperBand ? color.new(color.red, 80) : close < lowerBand ? color.new(color.green, 80) : color.new(color.orange, 90))
_mr_beach Sunday Entwicklung Version 1_mr_beach Sunday Development Version 1
Short Description (for TradingView publication):
This indicator combines EMA crossovers, VWAP with standard deviation bands, gap detection, pivot-based support & resistance, and VWAP distance labels in a single overlay. Perfect for discretionary traders aiming to efficiently identify gap fills, trend reversals, and key price levels. All components can be toggled on/off via the settings menu.
Full Indicator Description:
🧠 Purpose of the Indicator:
This all-in-one tool merges several analytical features to visualize trend direction, market structure, key price levels (e.g., gaps, VWAP distance, pivot support), and entry signals at a glance.
🔧 Integrated Features:
EMA20 / EMA50: Trend detection via moving averages. Crossover signals indicate potential entries.
VWAP + Band: Volume-weighted average price with visual deviation bands.
GAP-Up / GAP-Down: Price gaps are highlighted in color (brown/yellow), optionally showing only open ones.
VWAP Distance Label: Displays the current price’s percentage deviation from the VWAP as a chart label.
Buy/Sell Signals: Triggered by EMA20 and EMA50 crossovers.
HH/LL SL-Marker: Identifies local highs/lows using pivots.
Support & Resistance: Automatically calculated pivot zones.
Customizable Visibility: All features can be toggled in the settings menu.
Dummy Plot: plot(na) ensures error-free compilation.
⚙️ Settings Menu Options:
Show VWAP: Displays VWAP and deviation bands.
Show EMA20 / EMA50: Shows the moving averages.
Show Gaps: Enables gap detection.
Show Only Open Gaps: Hides already filled gaps.
Show VWAP Distance: Activates VWAP deviation label.
Support & Resistance: Displays pivot-based zones as support/resistance.
🔔 Alerts:
‘Mads Morningstar Signal’: Buy/Sell alerts based on EMA crossover.
📈 Use Cases:
Trend-following setups using EMA crossover
Gap-fill trading strategies
VWAP reversion trades
SL/TP based on HH/LL or pivot levels
Visual chart preparation for scalping, intraday, or swing trading
🛠 Suggested Extensions:
Gap table showing open levels
Take-Profit/Stop-Loss strategy
Alerts for new gap formation
Strategy tester module with gap-based entries
Green*DiamondGreen*Diamond (GD1)
Unleash Dynamic Trading Signals with Volatility and Momentum
Overview
GreenDiamond is a versatile overlay indicator designed for traders seeking actionable buy and sell signals across various markets and timeframes. Combining Volatility Bands (VB) bands, Consolidation Detection, MACD, RSI, and a unique Ribbon Wave, it highlights high-probability setups while filtering out noise. With customizable signals like Green-Yellow Buy, Pullback Sell, and Inverse Pullback Buy, plus vibrant candle and volume visuals, GreenDiamond adapts to your trading style—whether you’re scalping, day trading, or swing trading.
Key Features
Volatility Bands (VB): Plots dynamic upper and lower bands to identify breakouts or reversals, with toggleable buy/sell signals outside consolidation zones.
Consolidation Detection: Marks low-range periods to avoid choppy markets, ensuring signals fire during trending conditions.
MACD Signals: Offers flexible buy/sell conditions (e.g., cross above signal, above zero, histogram up) with RSI divergence integration for precision.
RSI Filter: Enhances signals with customizable levels (midline, oversold/overbought) and bullish divergence detection.
Ribbon Wave: Visualizes trend strength using three EMAs, colored by MACD and RSI for intuitive momentum cues.
Custom Signals: Includes Green-Yellow Buy, Pullback Sell, and Inverse Pullback Buy, with limits on consecutive signals to prevent overtrading.
Candle & Volume Styling: Blends MACD/RSI colors on candles and scales volume bars to highlight momentum spikes.
Alerts: Set up alerts for VB signals, MACD crosses, Green*Diamond signals, and custom conditions to stay on top of opportunities.
How It Works
Green*Diamond integrates multiple indicators to generate signals:
Volatility Bands: Calculates bands using a pivot SMA and standard deviation. Buy signals trigger on crossovers above the lower band, sell signals on crossunders below the upper band (if enabled).
Consolidation Filter: Suppresses signals when candle ranges are below a threshold, keeping you out of flat markets.
MACD & RSI: Combines MACD conditions (e.g., cross above signal) with RSI filters (e.g., above midline) and optional volume spikes for robust signals.
Custom Logic: Green-Yellow Buy uses MACD bullishness, Pullback Sell targets retracements, and Inverse Pullback Buy catches reversals after downmoves—all filtered to avoid consolidation.
Visuals: Ribbon Wave shows trend direction, candles blend momentum colors, and volume bars scale dynamically to confirm signals.
Settings
Volatility Bands Settings:
VB Lookback Period (20): Adjust to 10–15 for faster markets (e.g., 1-minute scalping) or 25–30 for daily charts.
Upper/Lower Band Multiplier (1.0): Increase to 1.5–2.0 for wider bands in volatile stocks like AEHL; decrease to 0.5 for calmer markets.
Show Volatility Bands: Toggle off to reduce chart clutter.
Use VB Signals: Enable for breakout-focused trades; disable to focus on Green*Diamond signals.
Consolidation Settings:
Consolidation Lookback (14): Set to 5–10 for small caps (e.g., AEHL) to catch quick consolidations; 20 for higher timeframes.
Range Threshold (0.5): Lower to 0.3 for stricter filtering in choppy markets; raise to 0.7 for looser signals.
MACD Settings:
Fast/Slow Length (12/26): Shorten to 8/21 for scalping; extend to 15/34 for swing trading.
Signal Smoothing (9): Reduce to 5 for faster signals; increase to 12 for smoother trends.
Buy/Sell Signal Options: Choose “Cross Above Signal” for classic MACD; “Histogram Up” for momentum plays.
Use RSI Div + MACD Cross: Enable for high-probability reversal signals.
RSI Settings:
RSI Period (14): Drop to 10 for 1-minute charts; raise to 20 for daily.
Filter Level (50): Set to 55 for stricter buys; 45 for sells.
Overbought/Oversold (70/30): Tighten to 65/35 for small caps; widen to 75/25 for indices.
RSI Buy/Sell Options: Select “Bullish Divergence” for reversals; “Cross Above Oversold” for momentum.
Color Settings:
Adjust bullish/bearish colors for visibility (e.g., brighter green/red for dark themes).
Border Thickness (1): Increase to 2–3 for clearer candle outlines.
Volume Settings:
Volume Average Length (20): Shorten to 10 for scalping; extend to 30 for swing trades.
Volume Multiplier (2.0): Raise to 3.0 for AEHL’s volume surges; lower to 1.5 for steady stocks.
Bar Height (10%): Increase to 15% for prominent bars; decrease to 5% to reduce clutter.
Ribbon Settings:
EMA Periods (10/20/30): Tighten to 5/10/15 for scalping; widen to 20/40/60 for trends.
Color by MACD/RSI: Disable for simpler visuals; enable for dynamic momentum cues.
Gradient Fill: Toggle on for trend clarity; off for minimalism.
Custom Signals:
Enable Green-Yellow Buy: Use for momentum confirmation; limit to 1–2 signals to avoid spam.
Pullback/Inverse Pullback % (50): Set to 30–40% for small caps; 60–70% for indices.
Max Buy Signals (1): Increase to 2–3 for active markets; keep at 1 for discipline.
Tips and Tricks
Scalping Small Caps (e.g., AEHL):
Use 1-minute charts with VB Lookback = 10, Consolidation Lookback = 5, and Volume Multiplier = 3.0 to catch $0.10–$0.20 moves.
Enable Green-Yellow Buy and Inverse Pullback Buy for quick entries; disable VB Signals to focus on Green*Diamond logic.
Pair with SMC+ green boxes (if you use them) for reversal confirmation.
Day Trading:
Try 5-minute charts with MACD Fast/Slow = 8/21 and RSI Period = 10.
Enable RSI Divergence + MACD Cross for high-probability setups; set Max Buy Signals = 2.
Watch for volume bars turning yellow to confirm entries.
Swing Trading:
Use daily charts with VB Lookback = 30, Ribbon EMAs = 20/40/60.
Enable Pullback Sell (60%) to exit after rallies; disable RSI Color for cleaner candles.
Check Ribbon Wave gradient for trend strength—bright green signals strong bulls.
Avoiding Noise:
Increase Consolidation Threshold to 0.7 on volatile days to skip false breakouts.
Disable Ribbon Wave or Volume Bars if the chart feels crowded.
Limit Max Buy Signals to 1 for disciplined trading.
Alert Setup:
In TradingView’s Alerts panel, select:
“GD Buy Signal” for standard entries.
“RSI Div + MACD Cross Buy” for reversals.
“VB Buy Signal” for breakout plays.
Set to “Once Per Bar Close” for confirmed signals; “Once Per Bar” for scalping.
Backtesting:
Replay on small caps ( Float < 5M, Price $0.50–$5) to test signals.
Focus on “GD Buy Signal” with yellow volume bars and green Ribbon Wave.
Avoid signals during gray consolidation squares unless paired with RSI Divergence.
Usage Notes
Markets: Works on stocks, forex, crypto, and indices. Best for volatile assets (e.g., small-cap stocks, BTCUSD).
Timeframes: Scalping (1–5 minutes), day trading (15–60 minutes), or swing trading (daily). Adjust settings per timeframe.
Risk Management: Combine with stop-losses (e.g., 1% risk, $0.05 below AEHL entry) and take-profits (3–5%).
Customization: Tweak inputs to match your strategy—experiment in replay to find your sweet spot.
Disclaimer
Green*Diamond is a technical tool to assist with trade identification, not a guarantee of profits. Trading involves risks, and past performance doesn’t predict future results. Always conduct your own analysis, manage risk, and test settings before live trading.
Feedback
Love Green*Diamond? Found a killer setup?
Triple SRSI-MFI Ⅲ - Multi TimeframeTriple SRSI-MFI Ⅲ - Multi Timeframe Indicator
Description
The Triple SRSI-MFI Ⅲ - Multi Timeframe indicator is a powerful tool designed to combine Stochastic RSI (SRSI) and Money Flow Index (MFI) across multiple timeframes (higher, current, and lower). It provides a comprehensive view of market momentum and potential overbought/oversold conditions by calculating a weighted hybrid of SRSI-MFI values from three different timeframes. The indicator also integrates Bollinger Bands to help identify trend direction and volatility.
This indicator is ideal for traders who want to analyze market conditions across multiple timeframes without switching charts. It automatically adjusts settings based on the current timeframe and includes a dynamic weighting system optimized for Bitcoin volatility. Additionally, a real-time information panel displays the market state (buy/sell) and signal strength.
Key Features
Multi-Timeframe Analysis: Combines SRSI-MFI from higher, current, and lower timeframes for a holistic view.
Dynamic Weighting: Automatically adjusts weights for each timeframe based on Bitcoin volatility, with an option for manual customization.
Bollinger Bands Integration: Visualizes trend direction and volatility using Bollinger Bands, with customizable source selection.
Real-Time Info Panel: Displays market state (buy/sell) and signal strength (%) in the top-right corner of the chart.
Customizable Settings: Allows users to tweak MFI source, Bollinger Bands parameters, and visibility of individual components.
How to Use
Add to Chart: Add the "Triple SRSI-MFI Ⅲ - Multi Timeframe" indicator to your chart.
Interpret Signals:
Market State (Buy/Sell): Shown in the info panel. "Buy" when the average SRSI-MFI is above the Bollinger Bands basis, "Sell" when below.
Strength (%): The relative position of the average SRSI-MFI within the Bollinger Bands, scaled from 0% to 100%.
Overbought/Oversold Levels: The indicator plots horizontal lines at 80 (overbought) and 20 (oversold). Use these as potential reversal zones.
Combine with Price Action: Use the indicator in conjunction with price action or other tools for better decision-making.
Adjust Settings: Customize the settings (e.g., Bollinger Bands length, weights, visibility) to match your trading style.
Settings
MFI Source: Select the source for MFI calculation (default: "hlc3"). Options include "close", "open", "high", "low", "hl2", "hlc3", "ohlc4".
Bollinger Bands:
Length: Period for Bollinger Bands calculation (default: 20).
Multiplier: Standard deviation multiplier for the bands (default: 2.0).
Source: Choose which SRSI-MFI value to use for Bollinger Bands ("averageHybrid", "hybrid_higher", "hybrid_current", "hybrid_lower"; default: "hybrid_higher").
Weights:
Auto Weight Enabled: Enable/disable automatic weights based on Bitcoin volatility (default: true).
Higher/Current/Lower Weights: Manually set weights for each timeframe if auto-weight is disabled (defaults: 1.5, 1.0, 0.5).
Indicator On/Off:
Toggle visibility for Higher SRSI-MFI, Current SRSI-MFI, Lower SRSI-MFI, Average SRSI-MFI, and Bollinger Bands.
How It Works
SRSI-MFI Calculation:
Stochastic RSI (SRSI) and Money Flow Index (MFI) are calculated for three timeframes: higher, current, and lower.
The hybrid value (SRSI * (MFI / 100)) is computed for each timeframe.
Weighted Average:
The hybrid values are combined into a weighted average (averageHybrid) using dynamic or manual weights.
Bollinger Bands:
Bollinger Bands are applied to the selected source (e.g., hybrid_higher) to identify trend direction and volatility.
Relative Position:
The position of averageHybrid within the Bollinger Bands is scaled to a percentage (0% to 100%) for strength assessment.
Visualization:
Plots individual SRSI-MFI lines, Bollinger Bands, and overbought/oversold levels.
A real-time info panel provides market state and signal strength.
Notes
This indicator is best used as part of a broader trading strategy. It is not a standalone signal generator and should be combined with other forms of analysis.
The automatic weights are optimized for Bitcoin (BTC) volatility. For other assets, you may need to adjust the weights manually.
The indicator may require sufficient historical data to calculate higher and lower timeframe values accurately.
Advanced Trend and Volatility Indicator with Alerts by ZaimonThis script presents a comprehensive analytical tool that integrates multiple technical indicators to provide a holistic view of market trends and volatility. By uniquely combining Moving Averages (MA), Relative Strength Index (RSI), Stochastic Oscillator, Bollinger Bands, and Average True Range (ATR), it offers nuanced insights into price movements and helps identify potential trading opportunities.
---
### **Key Features and Integration:**
1. **Moving Averages (MA20 & MA50):**
- **Trend Identification:**
- **Methodology:** Calculates two Simple Moving Averages—MA20 (short-term) and MA50 (long-term).
- **Bullish Trend:** When MA20 crosses above MA50, indicating upward momentum.
- **Bearish Trend:** When MA20 crosses below MA50, signaling downward momentum.
- **Golden Cross & Death Cross Alerts:**
- **Golden Cross:** MA20 crossing above MA50 generates a bullish alert and visual symbol.
- **Death Cross:** MA20 crossing below MA50 triggers a bearish alert and visual symbol.
- **Integration:**
- Serves as the foundational trend indicator, influencing interpretations of other indicators within the script.
2. **Relative Strength Index (RSI):**
- **Momentum Measurement:**
- **Methodology:** Calculates RSI to assess the speed and change of price movements over a 14-period length.
- **Overbought/Oversold Conditions:** Customizable thresholds set at 70 (overbought) and 30 (oversold).
- **Alerts:**
- Generates alerts when RSI crosses above or below the specified thresholds.
- **Integration:**
- Confirms trend strength identified by MAs.
- Overbought/Oversold signals can precede potential trend reversals, especially when aligned with MA crossovers.
3. **Stochastic Oscillator:**
- **Momentum and Reversal Signals:**
- **Methodology:** Uses %K and %D lines to evaluate price momentum relative to high-low range over recent periods.
- **Bullish Signal:** %K crossing above %D in oversold territory (below 20).
- **Bearish Signal:** %K crossing below %D in overbought territory (above 80).
- **Alerts:**
- Provides alerts on bullish and bearish crossovers in extreme regions.
- **Integration:**
- Enhances RSI signals by providing additional momentum confirmation.
- When both RSI and Stochastic indicate overbought/oversold conditions, it strengthens the likelihood of a reversal.
4. **Bollinger Bands:**
- **Volatility Visualization:**
- **Methodology:** Plots upper and lower bands based on standard deviations from a moving average (BB Basis).
- **Dynamic Support/Resistance:** Prices touching or exceeding the bands may indicate potential reversals.
- **Integration:**
- Works with RSI and Stochastic to identify overextended price movements.
- Helps in assessing volatility alongside trend and momentum indicators.
5. **Average True Range (ATR):**
- **Volatility Assessment:**
- **Methodology:** Calculates ATR over a 14-period length to measure market volatility.
- **ATR Bands:** Plots upper and lower bands relative to the current price using an ATR multiplier.
- **Integration:**
- Assists in setting stop-loss and take-profit levels based on current volatility.
- Complements Bollinger Bands for a comprehensive volatility analysis.
6. **Information Table:**
- **Real-Time Data Display:**
- Shows current values of MA20, MA50, RSI, Stochastic %K and %D, BB Basis, ATR, and Trend Status.
- **Trend Status Indicator:**
- Displays "Bullish," "Bearish," or "Sideways" based on MA conditions.
- **Integration:**
- Provides a consolidated view for quick decision-making without analyzing individual indicators separately.
7. **Periodic Labels:**
- **Enhanced Visibility:**
- Adds labels every 50 bars showing RSI and Stochastic values.
- **Integration:**
- Helps track momentum changes over time and spot longer-term patterns.
---
### **How the Components Work Together:**
- **Synergistic Analysis:**
- **Trend Confirmation:** MA crossovers establish the primary trend, while RSI and Stochastic confirm momentum within that trend.
- **Volatility Context:** Bollinger Bands and ATR provide context on market volatility, refining entry and exit points suggested by trend and momentum indicators.
- **Signal Strength:** Concurrent signals from multiple indicators increase confidence in trading decisions.
---
### **Usage Guidelines:**
1. **Trend Analysis:**
- **Identify Trend Direction:**
- Observe MA20 and MA50 crossovers.
- Refer to the Trend Status in the information table.
- **Confirm with Momentum Indicators:**
- Ensure RSI and Stochastic support the identified trend.
2. **Entry and Exit Points:**
- **Overbought/Oversold Conditions:**
- Look for RSI and Stochastic reaching extreme levels.
- Consider entering positions when oversold in a bullish trend or overbought in a bearish trend.
- **Bollinger Band Interactions:**
- Use price interactions with Bollinger Bands to identify potential reversal zones.
3. **Risk Management:**
- **ATR-Based Levels:**
- Set stop-loss and take-profit levels using ATR bands to account for current volatility.
- **Adjusting to Volatility:**
- Modify position sizes and targets based on Bollinger Band width and ATR values.
4. **Alerts Setup:**
- **Customize Alert Thresholds:**
- Configure alerts for MA crossovers, RSI levels, and Stochastic crossovers according to your trading strategy.
- **Stay Informed:**
- Use alerts to monitor key events without constant chart observation.
---
### **Customization:**
- **Flexible Parameters:**
- All indicator lengths, thresholds, and settings are adjustable to suit different trading styles and timeframes.
- **Adjustable Visuals:**
- Modify plot colors, line styles, and label positions to enhance chart readability.
---
### **Originality and Value Addition:**
This script differentiates itself by:
- **Integrated Approach:**
- Seamlessly combining multiple indicators to provide a more comprehensive analysis than using each indicator separately.
- **Enhanced Visualization:**
- Utilizing plots, fills, labels, and an information table to present data intuitively.
- **User-Friendly Features:**
- Pre-configured alerts and real-time data displays reduce the need for manual monitoring.
By explaining how each component interacts and contributes to the overall analysis, the script adds substantial value to traders seeking a multi-faceted tool for market analysis.
---
### **Additional Notes:**
- **Learning Resource:**
- The script is well-commented, serving as an educational tool for those learning Pine Script and technical analysis integration.
- **Further Enhancements:**
- Opportunities exist to incorporate additional indicators like MACD or ADX, and to develop advanced alert logic, such as RSI or Stochastic divergences.
---
### **Disclaimer:**
- **Educational Purpose Only:**
- This script is provided for informational purposes and should not be construed as financial advice.
- **Risk Acknowledgment:**
- Trading involves significant risk; past performance is not indicative of future results.
- **Due Diligence:**
- Users should conduct their own analysis and consider consulting a financial professional before making trading decisions.
---
By providing detailed explanations of the methodologies and the synergistic use of multiple indicators, this script aligns with TradingView's guidelines for originality and usefulness. It offers traders a unique tool that enhances market analysis through the thoughtful integration of technical indicators.
STANDARD DEVIATION INDICATOR BY WISE TRADERWISE TRADER STANDARD DEVIATION SETUP: The Ultimate Volatility and Trend Analysis Tool
Unlock the power of STANDARD DEVIATIONS like never before with the this indicator, a versatile and comprehensive tool designed for traders who seek deeper insights into market volatility, trend strength, and price action. This advanced indicator simultaneously plots three sets of customizable Deviations, each with unique settings for moving average types, standard deviations, and periods. Whether you’re a swing trader, day trader, or long-term investor, the STANDARD DEVIATION indicator provides a dynamic way to spot potential reversals, breakouts, and trend-following opportunities.
Key Features:
STANDARD DEVIATIONS Configuration : Monitor three different Bollinger Bands at the same time, allowing for multi-timeframe analysis within a single chart.
Customizable Moving Average Types: Choose from SMA, EMA, SMMA (RMA), WMA, and VWMA to calculate the basis of each band according to your preferred method.
Dynamic Standard Deviations: Set different standard deviation multipliers for each band to fine-tune sensitivity for various market conditions.
Visual Clarity: Color-coded bands with adjustable thicknesses provide a clear view of upper and lower boundaries, along with fill backgrounds to highlight price ranges effectively.
Enhanced Trend Detection: Identify potential trend continuation, consolidation, or reversal zones based on the position and interaction of price with the three bands.
Offset Adjustment: Shift the bands forward or backward to analyze future or past price movements more effectively.
Why Use Triple STANDARD DEVIATIONS ?
STANDARD DEVIATIONS are a popular choice among traders for measuring volatility and anticipating potential price movements. This indicator takes STANDARD DEVIATIONS to the next level by allowing you to customize and analyze three distinct bands simultaneously, providing an unparalleled view of market dynamics. Use it to:
Spot Volatility Expansion and Contraction: Track periods of high and low volatility as prices move toward or away from the bands.
Identify Overbought or Oversold Conditions: Monitor when prices reach extreme levels compared to historical volatility to gauge potential reversal points.
Validate Breakouts: Confirm the strength of a breakout when prices move beyond the outer bands.
Optimize Risk Management: Enhance your strategy's risk-reward ratio by dynamically adjusting stop-loss and take-profit levels based on band positions.
Ideal For:
Forex, Stocks, Cryptocurrencies, and Commodities Traders looking to enhance their technical analysis.
Scalpers and Day Traders who need rapid insights into market conditions.
Swing Traders and Long-Term Investors seeking to confirm entry and exit points.
Trend Followers and Mean Reversion Traders interested in combining both strategies for maximum profitability.
Harness the full potential of STANDARD DEVIATIONS with this multi-dimensional approach. The "STANDARD DEVIATIONS " indicator by WISE TRADER will become an essential part of your trading arsenal, helping you make more informed decisions, reduce risks, and seize profitable opportunities.
Who is WISE TRADER ?
Wise Trader is a highly skilled trader who launched his channel in 2020 during the COVID-19 pandemic, quickly building a loyal following. With thousands of paid subscribed members and over 70,000 YouTube subscribers, Wise Trader has become a trusted authority in the trading world. He is known for his ability to navigate significant events, such as the Indian elections and stock market crashes, providing his audience with valuable insights into market movements and volatility. With a deep understanding of macroeconomics and its correlation to global stock markets, Wise Trader shares informed strategies that help traders make better decisions. His content covers technical analysis, trading setups, economic indicators, and market trends, offering a comprehensive approach to understanding financial markets. The channel serves as a go-to resource for traders who want to enhance their skills and stay informed about key market developments.
Adjustable Percentage Range Moving AverageAdjustable Percentage Range Moving Average (APRMA)
The Adjustable Percentage Range Moving Average (APRMA) is a technical analysis tool designed for traders and market analysts who seek a dynamic approach to understanding market volatility and trend identification. Unlike traditional moving averages, the APRMA incorporates user-adjustable percentage bands around a central moving average line, offering a customizable view of price action relative to its recent history.
Key Features:
Central Moving Average: At its core, APRMA calculates a moving average (type of your choice) of the price over a specified number of periods, serving as the baseline for the indicator.
Percentage Bands: Surrounding the moving average are four bands, two above and two below, set at user-defined percentages away from the central line. These bands expand and contract based on the percentage input, not on standard deviation like Bollinger Bands, which allows for a consistent visual interpretation of how far the price has moved from its average.
Customizability: Users can adjust:
The length of the moving average period to suit short-term, medium-term, or long-term analysis.
The percentage offset for the bands, enabling traders to set the sensitivity of the indicator according to the asset's volatility or their trading strategy.
Visual Interpretation:
When the price moves towards or beyond the upper band, it might indicate that the asset is potentially overbought or that a strong upward trend is in place.
Conversely, price action near or below the lower band could suggest an oversold condition or a strong downward trend.
The space between the bands can be used to gauge volatility; narrower bands suggest lower current volatility relative to the average, while wider bands indicate higher volatility.
Usage in Trading:
Trend Confirmation: A price staying above the moving average and pushing the upper band might confirm an uptrend, while staying below and testing the lower band could confirm a downtrend.
Reversion Strategies: Traders might look for price to revert to the mean (moving average) when it touches or crosses the bands, setting up potential entry or exit points.
Breakout Signals: A price moving decisively through a band after a period of consolidation within the bands might signal a breakout.
The APRMA provides a clear, adaptable framework for traders to visualize where the price stands in relation to its recent average, offering insights into potential overbought/oversold conditions, trend strength, and volatility, all tailored by the trader's strategic preferences.
Log Regression Channel [UAlgo]The "Log Regression Channel " channel is useful for analyzing price trends and volatility in a financial instrument over a specified period. By using logarithmic scaling, this indicator can more effectively handle the wide range of price movements seen in many financial markets, making it particularly valuable for assets with exponential growth characteristics.
The indicator plots the central regression line along with upper and lower deviation bands, providing a visual representation of potential support and resistance levels.
🔶 Key Features
Logarithmic Regression Line: The central line represents the logarithmic regression, which fits the price data over the specified length using a logarithmic scale. This helps in identifying the overall trend direction.
Deviation Bands: The upper and lower bands are plotted at a specified multiple of the standard deviation from the regression line, highlighting areas of potential overbought and oversold conditions.
Customizable Parameters: Users can adjust the length of the regression, the deviation multiplier, the color of the labels, and the size of the text labels to suit their preferences.
R-Squared Display: The R-squared value, which measures the goodness of fit of the regression model, is displayed on the chart. This helps traders assess the reliability of the regression line.
🔶 Calculations
The indicator performs several key calculations to plot the logarithmic regression channel:
Logarithmic Transformation: The prices and time indices are transformed using the natural logarithm to handle exponential growth in price data.
Regression Coefficients: The slope and intercept of the regression line are calculated using the least squares method on the transformed data.
Predicted Values: The regression equation is used to calculate predicted values for each data point.
Standard Deviation: The standard deviation of the residuals (differences between actual and predicted values) is computed to determine the width of the deviation bands.
Deviation Bands: Upper and lower bands are plotted at a specified multiple of the standard deviation above and below the regression line.
R-Squared Value: The R-squared value is calculated to measure how well the regression line fits the data. This value is displayed on the chart to inform the user of the model's reliability.
🔶 Disclaimer
The "Log Regression Channel " indicator is provided for educational and informational purposes only.
It is not intended as investment advice or a recommendation to buy or sell any financial instrument. Trading financial instruments involves substantial risk and may not be suitable for all investors.
Past performance is not indicative of future results. Users should conduct their own research.
Bollinger OTT SpreadBollinger OTT Spread (BOOTS) is a development combining Bollinger Bands with Optimized Trend Tracker (OTT) Indicator by Anıl Özekşi.
Bollinger Bands have originally 3 lines: Simple Moving Average (Middle Line), Upper Band and Lower Band.
BOOTS concentrates on the upper and lower Bollinger band lines.
First, it calculates the OTT using the UPPER and LOWER Bollinger Bands in a period of time (default lengths are 2) instead of closing prices.
After that, Upper and lower bands have more constant values.
There are 2 lines in BOOTS:
-The top (cyan) line is originally an OTT of the Upper Bollinger Band. (BOOTShigh)
-The bottom line (purple) is also an OTT line but conversely uses Lower Bollinger Band in the same period. (BOOTSlow)
Default values:
Bollinger Bands Moving AveragePeriod: 2 Bars
OTT Length: 2 Bars
OTT Optimizing coefficient (percent): %10
Bollinger Bands Standart Deviation Multiplier: 2 (not adjustable)
These values are designed for daily time frame, so they have to be optimized in other timeframes by the user. (Ex: Higher values can be considered in lower time frames)
Originally, Bollinger Bands used a Simple Moving Average in their calculation, but this time, Anıl Özekşi prefers VIDYA (Variable Dynamic Moving Average = VAR) instead of a Simple Moving Average.
Bollinger Bands cannot create significant BUY & SELL signals considering their original logic, but the primary purpose of BOOTS is to have substantial trading signals:
BUY when the price crosses above the BOOTSLower line (purple line)
STOP when the price crosses back below the BOOTSLower line (purple line)
SELL when the price crosses below the BOOTSUpper line (cyan line)
STOP when the price crosses back above the BOOTSUpper line (cyan line)
The price zone between the two lines is the flat zone; traders don't consider taking new positions in that area between the two lines.
Developer Anıl Özekşi advises that traders may have more accurate signals when using a short-period moving average instead of closing prices. So, I added a moving average with the same default length of 2 , which was used in Bollinger Bands calculation. You can check the "SHOW MOVING AVERAGE?" box on the settings tab of the indicator.
[blackcat] L1 Triple EMA ChannelHey, friends! blackcat is here to bring you an interesting and professional article today, talking about the "Triple Exponential Moving Average (TEMA) Channel" - a powerful tool as a trend indicator in volatile markets.
First of all, let's delve into the origins of the TEMA indicator. It was invented by Patrick Mulloy in the mid-90s with the aim to address the lagging issue encountered when using oscillators or Exponential Moving Averages (EMA). The TEMA indicator smooths out short-term fluctuations by utilizing multiple moving averages. What sets it apart is its unique approach of continuously using the EMA's EMA and adjusting for lag in its formula.
In this article, we will primarily focus on the functionality of the TEMA channel as a trend indicator. However, it's worth noting that its effectiveness is diminished in choppy or sideways markets. Instead, the TEMA indicator shines brightest in long-term trend trading. By utilizing TEMA, analysts can easily filter out and disregard periods of volatility, allowing them to focus on the overall trend.
To gain a comprehensive understanding of market trends, it is often recommended to combine TEMA with other oscillators or technical indicators. This combination can help traders and analysts interpret sharp price movements and assess the level of volatility. For example, some analysts suggest combining the Moving Average Convergence Divergence (MACD) with the TEMA channel to evaluate market trends more accurately.
Now, let's explore how the TEMA channel can be used as a tool to showcase interesting features of price support and resistance. In this script, the TEMA channel is represented by three bands: the upper band, the middle band, and the lower band. The upper band is depicted in white, the middle band in yellow, and the lower band in magenta.
So, let's dive deep into the world of the TEMA channel and enjoy the benefits it brings to understanding market trends. Join us on this exciting journey!
Scalp Tool
This script is primarily intended as a scalping tool.
The theory of the tool is based on the fact that the price always returns to its mean.
Elements used:
1. VWMA as a moving average. VWMA is calculated once based on source close and once based on source open.
2. the bands are not calculated like the Bollinger Band, but only a settlement is calculated for the lower bands based on the Lows and for the upper bands based on the Highs. Thus the bands do not become thicker or thinner, but remain in the same measure to the mean value above or below the price.
3. a volume filter on simple calculation of a MA with deviation. Therefore, it can be identified if a volume breakout has occurred.
4. support and resistance zones which are calculated based on the highs and lows over a certain length.
5. RSI to determine oversold and overbought zones. It also tries to capture the momentum by using a moving average (variable selectable) to filter the signals. The theory is that in an uptrend the RSI does not go below 50 and in a downtrend it does not go above 50.
However, this can be very different depending on the financial instrument.
Explanation of the signals:
The main signal in this indicator Serves for pure short-term trading and is generated purely on the basis of the bands and the RSI.
Only the first bands are taken into account.
Buy signal is generated when the price opens below the lower band 1 and closes above the lower band 1 or the RSI crosses a value of 25 from bottom to top.
Sell signal is generated when the price opens above the Upper Band 1 and closes below the Upper Band 1 or the RSI crosses a value of 75 from top to bottom.
The position should be closed when the price hits the opposite band. Alternatively, it can also be closed at the mean.
Other side signals:
1. breakouts:
The indicator includes 2 support and resistance zones, which differ only in length. For the breakout signals, the short version of the R/S is used. A signal is generated when the price breaks through the zones with increased volume. It is then assumed that the price will continue to follow the breakout.
The values of the S/R are adjustable and marked with "BK".
The value under Threshold 2 defines the volume breakout. 4 is considered as the highest value. The smaller the value, the smaller the volume must be during a breakout.
2. bounce
If the price hits a S/R (here the long variant is used with the designation "Support" or "Resistance") and makes a wick with small volume, the script assumes a bounce and generates a Sell or Buy signal accordingly.
The volume can be defined under "Threshold".
The S/R according to the designation as well.
Combined signals:
If the value of the S/R BK and the S/R is the same and the bounce logic of the S/R BK applies and an RSI signal is also generated, a signal is also plotted.
Here the idea was to get very strong signals for possible swing entries.
4. RSI Signals
The script contains two RSI.
RSI 1:
Bullish signal is generated when the set value is crossed from the bottom to the top.
Bearish signal is generated when the set value is crossed from the top to the bottom.
RSI 2:
Bullish signal is generated when the set value is crossed from the top to the bottom.
Bearish signal is generated when the set value is crossed from bottom to top.
For RSI 2 the theory is taken into account according to the description under Used elements point 5
Optical trend filter:
Also an optical trend filter was generated which fills the bands accordingly.
For this the VWMA is used and the two average values of the band.
Color definition:
Gray = Neutral
Red = Bearish
Green = Bullish
If the mean value is above the VWMA and the mean value based on the closing price is above the mean value based on the open price, the band is colored green. It is a bullish trend
If the mean value is below the VWMA and the mean value based on the closing price is below the mean value based on the open price, the band is colored red.
The band is colored gray if the mean value is correspondingly opposite. A sideways phase is assumed.
The script was developed on the basis of the pair BTCUSD in the 15 minute chart and the settings were defined accordingly on it. The display of S/R for forex pairs does not work correctly and should be hidden. The logic works anyway.
When using the script, all options should first be set accordingly to the asset and tested before trading afterwards. It applies of course also here that there is no 100% guarantee.
Also, a strong breakout leads to false signals and overheating of the indicator.
Nadaraya-Watson OscillatorThis indicator is based on the work of @jdehorty and his amazing Nadaraya-Watson Kernel Envelope, which you can see here:
General Description
The Nadaraya-Watson Oscillator (NWO) will give the same information as the Nadaraya-Watson Envelope, but as an oscillator off the main chart, by plotting the relationship between price and the Kernel and its bands. This also means that we can now detect divergences between price and the NWO.
You can see the relationship between the two here:
You can think of this indicator as the kernel envelope version of a Bollinger Band %B. In ranging markets the bands are perfect for mean reversion trades, but in certain situations the break of one of the bands can signal the beggining of a strong trend and price will remain close to the bands for a long period and will only give small pullbacks. As with any indicator, confluence with price and other tools must be taken into account.
Main Features
As with @jdehorty 's Envelope, you can change the following settings:
Lookback Window.
Relative Weighting.
The initial bar for the regression.
ATR period for the bands.
Inner and Outer Multiples for the bands.
I also added the following:
A middle band around the Kernel to filter out false crossovers.
A Hull Moving Average to smoothen out the movements of the oscillator and give extra confirmation of turnover points.
Colors
Some special things to note regarding the coloring:
The zero line features a gradient that changes color every time the Kernel slope changes direction.
The Oscillator plot has a gradient coloring that gets stronger the closer it gets to each of the bands.
Every time the oscillator crosses over/under the outer bands the background will be highlighted.
Happy trading!
VWAP Market Session AnchoredVWAP Market Session Anchored differs from the traditional VWAP or VWAP Auto Anchored indicator in that the Volume Weighted Average Price calculation is automatically anchored to four major market session starts: Sydney, London, Tokyo, New York.
Settings
Source: the source for the VWAP calculation.
Offset: changing this number will move the VWAP either Forwards or Backwards, relative to the current market. Zero is the default.
Band: enabling this will show Standard Deviation bands.
Band Multiplier: the value the Standard Deviation bands will be multiplied by before being plotted on the chart.
Sessions : enabling the sessions will plot the respective anchored VWAP on chart.
Custom: enabling this will show a custom user-defined session.
Custom UTC : the custom session is defined by a starting UTC hour followed by the ending UTC hour.
Usage
Similar to the traditional VWAP, VWAP Market Session Anchored is a technical analysis tool used to measure the average price weighted by volume. VWAP Market Session Anchored can be used to identify the trend during a specific market session.
Limitations
When setting a custom session, be mindful that calculations are based off of the Coordinated Universal Time (UTC) time, you must convert your local time zone to UTC in order to have an accurate representation of your custom session.
It is not recommended to use this indicator on timeframes above 1 hour as market sessions only last a few hours.
WAP Maverick - (Dual EMA Smoothed VWAP) - [mutantdog]Short Version:
This here is my take on the popular VWAP indicator with several novel features including:
Dual EMA smoothing.
Arithmetic and Harmonic Mean plots.
Custom Anchor feat. Intraday Session Sizes.
2 Pairs of Bands.
Side Input for Connection to other Indicator.
This can be used 'out of the box' as a replacement VWAP, benefitting from smoother transitions and easy-to-use custom alerts.
By design however, this is intended to be a highly customisable alternative with many adjustable parameters and a pseudo-modular input system to connect with another indicator. Well suited for the tweakers around here and those who like to get a little more creative.
I made this primarily for crypto although it should work for other markets. Default settings are best suited to 15m timeframe - the anchor of 1 week is ideal for crypto which often follows a cyclical nature from Monday through Sunday. In 15m, the default ema length of 21 means that the wap comes to match a standard vwap towards the end of Monday. If using higher chart timeframes, i recommend decreasing the ema length to closely match this principle (suggested: for 1h chart, try length = 8; for 4h chart, length = 2 or 3 should suffice).
Note: the use of harmonic mean calculations will cause problems on any data source incorporating both positive and negative values, it may also return unusable results on extremely low-value charts (eg: low-sat coins in /btc pairs).
Long version:
The development of this project was one driven more by experimentation than a specific end-goal, however i have tried to fine-tune everything into a coherent usable end-product. With that in mind then, this walkthrough will follow something of a development chronology as i dissect the various functions.
DUAL-EMA SMOOTHING
At its core this is based upon / adapted from the standard vwap indicator provided by TradingView although I have modified and changed most of it. The first mod is the dual ema smoothing. Rather than simply applying an ema to the output of the standard vwap function, instead i have incorporated the ema in a manner analogous to the way smas are used within a standard vwma. Sticking for now with the arithmetic mean, the basic vwap calculation is simply sum(source * volume) / sum(volume) across the anchored period. In this case i have simply applied an ema to each of the numerator and denominator values resulting in ema(sum(source * volume)) / ema(sum(volume)) with the ema length independent of the anchor. This results in smoother (albeit slower) transitions than the aforementioned post-vwap method. Furthermore in the case when anchor period is equal to current timeframe, the result is a basic volume-weighted ema.
The example below shows a standard vwap (1week anchor) in blue, a 21-ema applied to the vwap in purple and a dual-21-ema smoothed wap in gold. Notably both ema types come to effectively resemble the standard vwap after around 24 hours into the new anchor session but how they behave in the meantime is very different. The dual-ema transitions quite gradually while the post-vwap ema immediately sets about trying to catch up. Incidentally. a similar and slower variation of the dual-ema can be achieved with dual-rma although i have not included it in this indicator, attempted analogues using sma or wma were far less useful however.
STANDARD DEVIATION AND BANDS
With this updated calculation, a corresponding update to the standard deviation is also required. The vwap has its own anchored volume-weighted st.dev but this cannot be used in combination with the ema smoothing so instead it has been recalculated appropriately. There are two pairs of bands with separate multipliers (stepped to 0.1x) and in both cases high and low bands can be activated or deactivated individually. An example usage for this would be to create different upper and lower bands for profit and stoploss targets. Alerts can be set easily for different crossing conditions, more on this later.
Alongside the bands, i have also added the option to shift ('Deviate') the entire indicator up or down according to a multiple of the corrected st.dev value. This has many potential uses, for example if we want to bias our analysis in one direction it may be useful to move the wap in the opposite. Or if the asset is trading within a narrow range and we are waiting on a breakout, we could shift to the desired level and set alerts accordingly. The 'Deviate' parameter applies to the entire indicator including the bands which will remain centred on the main WAP.
CUSTOM (W)ANCHOR
Ever thought about using a vwap with anchor periods smaller than a day? Here you can do just that. I've removed the Earnings/Dividends/Splits options from the basic vwap and added an 'Intraday' option instead. When selected, a custom anchor length can be created as a multiple of minutes (default steps of 60 mins but can input any value from 0 - 1440). While this may not seem at first like a useful feature for anyone except hi-speed scalpers, this actually offers more interesting potential than it appears.
When set to 0 minutes the current timeframe is always used, turning this into the basic volume-weighted ema mentioned earlier. When using other low time frames the anchor can act as a pre-ema filter creating a stepped effect akin to an adaptive MA. Used in combination with the bands, the result is a kind of volume-weighted adaptive exponential bollinger band; if such a thing does not already exist then this is where you create it. Alternatively, by combining two instances you may find potential interesting crosses between an intraday wap and a standard timeframe wap. Below is an example set to intraday with 480 mins, 2x st.dev bands and ema length 21. Included for comparison in purple is a standard 21 ema.
I'm sure there are many potential uses to be found here, so be creative and please share anything you come up with in the comments.
ARITHMETIC AND HARMONIC MEAN CALCULATIONS
The standard vwap uses the arithmetic mean in its calculation. Indeed, most mean calculations tend to be arithmetic: sma being the most widely used example. When volume weighting is involved though this can lead to a slight bias in favour of upward moves over downward. While the effect of this is minor, over longer anchor periods it can become increasingly significant. The harmonic mean, on the other hand, has the opposite effect which results in a value that is always lower than the arithmetic mean. By viewing both arithmetic and harmonic waps together, the extent to which they diverge from each other can be used as a visual reference of how much price has changed during the anchored period.
Furthermore, the harmonic mean may actually be the more appropriate one to use during downtrends or bearish periods, in principle at least. Consider that a short trade is functionally the same as a long trade on the inverse of the pair (eg: selling BTC/USD is the same as buying USD/BTC). With the harmonic mean being an inverse of the arithmetic then, it makes sense to use it instead. To illustrate this below is a snapshot of LUNA/USDT on the left with its inverse 1/(LUNA/USDT) = USDT/LUNA on the right. On both charts is a wap with identical settings, note the resistance on the left and its corresponding support on the right. It should be easy from this to see that the lower harmonic wap on the left corresponds to the upper arithmetic wap on the right. Thus, it would appear that the harmonic mean should be used in a downtrend. In principle, at least...
In reality though, it is not quite so black and white. Rarely are these values exact in their predictions and the sort of range one should allow for inaccuracies will likely be greater than the difference between these two means. Furthermore, the ema smoothing has already introduced some lag and thus additional inaccuracies. Nevertheless, the symmetry warrants its inclusion.
SIDE INPUT & ALERTS
Finally we move on to the pseudo-modular component here. While TradingView allows some interoperability between indicators, it is limited to just one connection. Any attempt to use multiple source inputs will remove this functionality completely. The workaround here is to instead use custom 'string' input menus for additional sources, preserving this function in the sole 'source' input. In this case, since the wap itself is dependant only price and volume, i have repurposed the full 'source' into the second 'side' input. This allows for a separate indicator to interact with this one that can be used for triggering alerts. You could even use another instance of this one (there is a hidden wap:mid plot intended for this use which is the midpoint between both means). Note that deleting a connected indicator may result in the deletion of those connected to it.
Preset alertconditions are available for crossings of the side input above and below the main wap, alongside several customisable alerts with corresponding visual markers based upon selectable conditions. Alerts for band crossings apply only to those that are active and only crossings of the type specified within the 'crosses' subsection of the indicator settings. The included options make it easy to create buy alerts specific to certain bands with sell alerts specific to other bands. The chart below shows two instances with differing anchor periods, both are connected with buy and sell alerts enabled for visible bands.
Okay... So that just about covers it here, i think. As mentioned earlier this is the product of various experiments while i have been learning my way around PineScript. Some of those experiments have been branched off from this in order to not over-clutter it with functions. The pseudo-modular design and the 'side' input are the result of an attempt to create a connective framework across various projects. Even on its own though, this should offer plenty of tweaking potential for anyone who likes to venture away from the usual standards, all the while still retaining its core purpose as a traders tool.
Thanks for checking this out. I look forward to any feedback below.
BTC Evaluation IndicatorBTC Evaluation Indicator
The BTC Evaluation Indicator is a volatility-based tool designed to help traders evaluate Bitcoin’s price behavior relative to its moving average trend. It combines customizable moving averages with dynamic standard deviation bands to identify overbought and oversold conditions.
Key Features
Flexible Moving Averages: Choose between SMA, EMA, WMA, VWMA, HMA, or RMA for the baseline trend.
Dynamic Volatility Bands: Upper and lower bands are calculated using standard deviation, scaled by a user-defined multiplier.
Visual Clarity:
Orange line = central moving average (trend mean)
Green line = upper band (potential overbought zone)
Red line = lower band (potential oversold zone)
Shaded gray area = volatility range
Automatic Highlights: Background shading marks when price breaks above the upper band (overbought) or below the lower band (oversold).
How to Use
When price pushes above the upper band, it may indicate overextension or potential local overbought conditions.
When price falls below the lower band, it may signal undervaluation or potential oversold conditions.
The mean line acts as a dynamic equilibrium, often serving as short-term support/resistance.
This indicator is designed for Bitcoin evaluation, but it can be applied to any asset. By combining trend analysis with volatility context, it helps traders better understand when price may be stretched and when conditions are reverting to the mean.
OB/OS adaptative v1.1# OB/OS Adaptative v1.1 - Multi-Timeframe Adaptive Overbought/Oversold Indicator
## Overview
The `tradingview_indicator_emas.pine` script is a sophisticated multi-timeframe indicator designed to identify dynamic overbought and oversold levels in financial markets. It combines EMA (Exponential Moving Average) crossovers and Bollinger Bands across monthly, weekly, and daily timeframes to create adaptive support and resistance levels that adjust to changing market conditions.
## Core Functionality
### Multi-Timeframe Analysis
The indicator analyzes three timeframes simultaneously:
- **Monthly (M)**: Long-term trend identification
- **Weekly (W)**: Intermediate-term trend identification
- **Daily (D)**: Short-term volatility measurement
### Technical Indicators Used
- **EMA 9 and EMA 20**: For trend identification and momentum assessment
- **Bollinger Bands (20-period)**: For volatility measurement and extreme level identification
- **Price action**: For confirmation of level validity and signal generation
## Key Features
### Adaptive Level Calculation
The indicator dynamically determines overbought and oversold levels based on market structure and trend bias:
#### Monthly Level Logic
- **Bullish Bias** (when monthly open > EMA20):
- Oversold = lower of EMA9 or EMA20
- Overbought = upper of EMA9 or Bollinger Upper Band
- **Bearish/Neutral Bias** (when monthly open ≤ EMA20):
- Oversold = Bollinger Lower Band
- Overbought = upper of EMA20 or EMA9
#### Weekly Level Logic
- **Bullish Bias** (when weekly open > EMA20):
- Oversold = lower of EMA9 or EMA20
- Overbought = Bollinger Upper Band
- **Bearish/Neutral Bias** (when weekly open ≤ EMA20):
- Oversold = Bollinger Lower Band
- Overbought = upper of EMA20 or EMA9
#### Daily Level Logic
- Simple Bollinger Bands:
- Oversold = Bollinger Lower Band
- Overbought = Bollinger Upper Band
### Final Level Determination
The indicator combines all three timeframes through a weighted averaging process:
1. Calculates initial values as the average of monthly, weekly, and daily levels
2. Ensures mathematical consistency by enforcing overbought_final ≥ oversold_final using min/max functions
3. Calculates a midpoint average level as the center of the range
### Visual Elements
- **Dynamic Lines**: Draws horizontal lines for current and previous period overbought, oversold, and average levels
- **Labels**: Places clear textual labels at the start of each period
- **Color Coding**:
- Red for overbought levels (resistance)
- Green for oversold levels (support)
- Blue for average levels (pivot point)
- **Transparency**: Previous period lines use semi-transparent colors to distinguish between current and historical levels
### Update Mechanism
- **Calculation Day**: User-defined day of the week (default: Monday)
- On the specified calculation day, the indicator:
- Updates all levels based on previous bar's data
- Draws new lines extending forward for a user-defined number of days
- Maintains previous period lines for comparison and trend analysis
- Automatically deletes and recreates lines to ensure clean visualization
### Proximity Detection
- Alerts when price approaches overbought/oversold levels (configurable distance in percentage)
- Helps identify potential reversal zones before actual crossovers occur
- Distance thresholds are user-configurable for both overbought and oversold conditions
### Alert Conditions
The indicator provides four distinct alert types:
1. **Cross below oversold**: Triggered when price crosses below the oversold level
2. **Cross above overbought**: Triggered when price crosses above the overbought level
3. **Near oversold**: Triggered when price approaches the oversold level within the configured distance
4. **Near overbought**: Triggered when price approaches the overbought level within the configured distance
### Debug Mode
When enabled, displays comprehensive debug information including:
- Current values for all levels (oversold, overbought, average)
- Timeframe-specific calculations and raw data points
- System status information (current day, calculation day, etc.)
- Lines existence and timing information
- Organized in multiple labels at different price levels to avoid overlap
## Configuration Parameters
| Parameter | Default Value | Description |
|---------|---------------|-------------|
| Short EMA (9) | 9 | Length for short-term EMA calculation |
| Long EMA (20) | 20 | Length for long-term EMA calculation |
| BB Length | 20 | Period for Bollinger Bands calculation |
| Std Dev | 2.0 | Standard deviation multiplier for Bollinger Bands |
| Distance to overbought (%) | 0.5 | Percentage threshold for "near overbought" alerts |
| Distance to oversold (%) | 0.5 | Percentage threshold for "near oversold" alerts |
| Calculation day | Monday | Day of week when levels are recalculated |
| Lookback days | 7 | Number of days to extend previous period lines backward |
| Forward days | 7 | Number of days to extend current period lines forward |
| Show Debug Labels | false | Toggle for comprehensive debug information display |
## Trading Applications
### Primary Use Cases
1. **Reversal Trading**: Identify potential reversal zones when price approaches overbought/oversold levels
2. **Trend Confirmation**: Use the adaptive nature of levels to confirm trend strength and direction
3. **Position Sizing**: Adjust position size based on distance from key levels
4. **Stop Placement**: Use opposite levels as dynamic stop-loss references
### Strategic Advantages
- **Adaptive Nature**: Levels adjust to changing market volatility and trend structure
- **Multi-Timeframe Confirmation**: Signals are validated across multiple timeframes
- **Visual Clarity**: Clear color-coded lines and labels enhance decision-making
- **Proactive Alerts**: "Near" conditions provide early warnings before crossovers
## Implementation Details
### Data Security
Uses `request.security()` function to fetch data from higher timeframes (monthly, weekly) while maintaining proper bar indexing with ` ` offset for open prices.
### Performance Optimization
- Uses `var` keyword to declare persistent variables that maintain state across bars
- Efficient line and label management with proper deletion before recreation
- Conditional execution of debug code to minimize performance impact
### Error Handling
- Comprehensive NA (not available) checks throughout the code
- Graceful degradation when data is unavailable for higher timeframes
- Mathematical safeguards to prevent invalid level calculations
## Conclusion
The OB/OS Adaptative v1.1 indicator represents a sophisticated approach to identifying market extremes by combining multiple technical analysis concepts. Its adaptive nature makes it particularly useful in trending markets where static levels may be less effective. The multi-timeframe approach provides a comprehensive view of market structure, while the visual elements and alert system enhance its practical utility for active traders.
Squeeze & Breakout Confirmation StrategyThis strategy focuses on identifying periods of low volatility (Bollinger Band Squeeze) and then confirming the direction of the subsequent breakout with momentum, volume, and candle strength.
Concepts Applied: Bollinger Bands (Squeeze), RSI (Momentum), Market Volume (Conviction), Candle Size (Strength)
Buy Signal:
Bollinger Band Squeeze: Look for a period where the Bollinger Bands contract significantly, indicating low volatility and consolidation. The bands should be very close to the price action.
RSI Breakout: After the squeeze, wait for the price to break decisively above the upper Bollinger Band. Simultaneously, the RSI should break above 60 (or even 70), indicating strong bullish momentum.
Volume Surge: The breakout candle should be accompanied by a significant increase in trading volume, ideally above its recent average, confirming strong buying interest.
Strong Bullish Candle: The breakout candle itself should be a large, bullish candle (e.g., a strong green candle with a small upper wick or a bullish engulfing pattern), demonstrating buyer conviction.
Sell Signal (Short):
Bollinger Band Squeeze: Look for a period where the Bollinger Bands contract significantly.
RSI Breakdown: After the squeeze, wait for the price to break decisively below the lower Bollinger Band. Simultaneously, the RSI should break below 40 (or even 30), indicating strong bearish momentum.
Volume Surge: The breakdown candle should be accompanied by a significant increase in trading volume, ideally above its recent average, confirming strong selling interest.
Strong Bearish Candle: The breakdown candle itself should be a large, bearish candle (e.g., a strong red candle with a small lower wick or a bearish engulfing pattern), demonstrating seller conviction.
Rolling VWAP LevelsRolling VWAP Levels Indicator
Overview
Dynamic horizontal lines showing rolling Volume Weighted Average Price (VWAP) levels for multiple timeframes (7D, 30D, 90D, 365D) that update in real-time as new bars form.
Who This Is For
Day traders using VWAP as support/resistance
Swing traders analyzing multi-timeframe price structure
Scalpers looking for mean reversion entries
Options traders needing volatility bands for strike selection
Institutional traders tracking volume-weighted fair value
Risk managers requiring dynamic stop levels
How To Trade With It
Mean Reversion Strategies:
Buy when price is below VWAP and showing bullish divergence
Sell when price is above VWAP and showing bearish signals
Use multiple timeframes - enter on shorter, confirm on longer
Target opposite VWAP level for profit taking
Breakout Trading:
Watch for price breaking above/below key VWAP levels with volume
Use 7D VWAP for intraday breakouts
Use 30D/90D VWAP for swing trade breakouts
Confirm breakout with move beyond first standard deviation band
Support/Resistance Trading:
VWAP levels act as dynamic support in uptrends
VWAP levels act as dynamic resistance in downtrends
Multiple timeframe VWAP confluence creates stronger levels
Use standard deviation bands as additional S/R zones
Risk Management:
Place stops beyond next VWAP level
Use standard deviation bands for position sizing
Exit partial positions at VWAP levels
Monitor distance table for overextended moves
Key Features
Real-time Updates: Lines move and extend as new bars form
Individual Styling: Custom colors, widths, styles for each timeframe
Standard Deviation Bands: Optional volatility bands with custom multipliers
Smart Labels: Positioned above, below, or diagonally relative to lines
Distance Table: Shows percentage distance from each VWAP level
Alert System: Get notified when price crosses VWAP levels
Memory Efficient: Automatically cleans up old drawing objects
Settings Explained
Display Group: Show/hide labels, font size, line transparency, positioning
Individual VWAP Groups: Color, line width (1-5), line style for each timeframe
Standard Deviation Bands: Enable bands with custom multipliers (0.5, 1.0, 1.5, 2.0, etc.)
Labels Group: Position (8 options including diagonal), custom text, price display
Additional Info: Distance table, alert conditions
Technical Implementation
Uses rolling arrays to maintain sliding windows of price*volume data. The core calculation function processes both VWAP and standard deviation efficiently. Lines are created dynamically and updated every bar. Memory management prevents object accumulation through automatic cleanup.
Best Practices
Start with 7D and 30D VWAP for most strategies
Add 90D/365D for longer-term context
Use standard deviation bands when volatility matters
Position labels to avoid chart clutter
Enable distance table during high volatility periods
Set alerts for key VWAP level breaks
Market Applications
Forex: Major pairs during London/NY sessions
Stocks: Large cap names with good volume
Crypto: Bitcoin, Ethereum, major altcoins
Futures: ES, NQ, CL, GC with continuous volume
Options: Use SD bands for strike selection and volatility assessment
Trend Impulse Channels (Zeiierman)█ Overview
Trend Impulse Channels (Zeiierman) is a precision-engineered trend-following system that visualizes discrete trend progression using volatility-scaled step logic. It replaces traditional slope-based tracking with clearly defined “trend steps,” capturing directional momentum only when price action decisively confirms a shift through an ATR-based trigger.
This tool is ideal for traders who prefer structured, stair-step progression over fluid curves, and value the clarity of momentum-based bands that reveal breakout conviction, pullback retests, and consolidation zones. The channel width adapts automatically to market volatility, while the step logic filters out noise and false flips.
⚪ The Structural Assumption
This indicator is built on a core market structure observation:
After each strong trend impulse, the market typically enters a “cooling-off” phase as profit-taking occurs and counter-trend participants enter. This often results in a shallow pullback or stall, creating a slight negative slope in an uptrend (or a positive slope in a downtrend).
These “cooling-off” phases don’t reverse the trend — they signal temporary pressure before the next leg continues. By tracking trend steps discretely and filtering for this behavior, Trend Impulse Channels helps traders align with the rhythm of impulse → pause → impulse.
█ How It Works
⚪ Step-Based Trend Engine
At the heart of this tool is a dynamic step engine that progresses only when price crosses a predefined ATR-scaled trigger level:
Trigger Threshold (× ATR) – Defines how far price must break beyond the current trend state to register a new trend step.
Step Size (Volatility-Guided) – Each trend continuation moves the trend line in discrete units, scaling with ATR and trend persistence.
Trend Direction State – Maintains a +1/-1 internal bias to support directional filters and step tracking.
⚪ Volatility-Adaptive Channel
Each step is wrapped inside a dynamic envelope scaled to current volatility:
Upper and Lower Bands – Derived from ATR and band multipliers to expand/contract as volatility changes.
⚪ Retest Signal System
Optional signal markers show when price re-tests the upper or lower band:
Upper Retest → Pullback into resistance during a bearish trend.
Lower Retest → Pullback into support during a bullish trend.
⚪ Trend Step Signals
Circular markers can be shown to mark each time the trend steps forward, making it easy to identify structurally significant moments of continuation within a larger trend.
█ How to Use
⚪ Trend Alignment
Use the Trend Line and Step Markers to visually confirm the direction of momentum. If multiple trend steps occur in sequence without reversal, this typically signals strong conviction and trend persistence.
⚪ Retest-Based Entries
Wait for pullbacks into the channel and monitor for triangle retest signals. When used in confluence with trend direction, these offer high-quality continuation setups.
⚪ Breakouts
Look for breakouts beyond the upper or lower band after a longer period of pause. For higher likelihood of success, look for breakouts in the direction of the trend.
█ Settings
Trigger Threshold (× ATR) - Defines how far price must move to register a new trend step. Controls sensitivity to trend flips.
Max Step Size (× ATR) - Caps how far each trend step can extend. Prevents runaway step expansion in high volatility.
Band Multiplier (× ATR) - Expands the upper and lower channels. Controls how much breathing room the bands allow.
Trend Hold (bars) - Minimum number of bars the trend must remain active before allowing a flip. Helps reduce noise.
Filter by Trend - Restrict retest signals to those aligned with the current trend direction.
-----------------
Disclaimer
The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
TradersFriendCandles v2
TradersFriendCandles
A fully customizable candle‑color and banding indicator built on percentile + ATR, with optional EMA vs. ALMA trend filtering and higher‑timeframe support.
Key Features
Dynamic Percentile Center Line
Compute any Nth percentile over M bars (default 20th over 15) to serve as a reference “mid‑price” level.
ATR‑Based Bands
Envelope that percentile line with upper/lower bands at X × ATR (default 1×), plus an extended upper band at 3.5× ATR.
Higher‑Timeframe Mode
Plot bands based on a higher timeframe (e.g. daily bands on a 15m chart) so you can gauge macro support/resistance in micro timeframes.
Custom‑Color Candles
5 user‑editable colors for:
Strong bullish
Light bullish
Neutral
Light bearish
Strong bearish
Optional EMA vs. ALMA Trend Filter
When enabled, candles simply turn “bull” or “bear” based on fast EMA crossing above/below slow ALMA.
Border‑Only Coloring
Keep candle bodies transparent and color only the border & wick.
Live Plot Labels & Track Price
All lines carry titles and can display current values directly on the price scale.
Alerts
Strong Bull Breakout (price stays above upper band)
Strong Bear Breakdown (price closes below lower band)
EMA/ALMA crossovers
Inputs & Customization
Percentile level & lookback length
ATR length, multiplier, opacity
Fast EMA length, ALMA parameters (offset, length, sigma)
Toggle bands, lines, custom candles, higher‑timeframe mode
Pick your own colors via color‑picker inputs
Use TradersFriendCandles to visualize momentum shifts, dynamic support/resistance, and trend strength all in one overlay. Perfect for pinpointing breakouts, breakdowns, and filtering noise with adjustable sensitivity.
Daily ATR Bonanza: Expected Moves - Tr33man Daily ATR Bonanza: Expected Moves
Overview 🤷♂️
The Daily ATR Bonanza script is a powerful trading tool designed to help traders visualize and understand potential price movements using the Average True Range (ATR). It provides daily and weekly ATR levels, historical statistics, and conditional probability analysis to give traders actionable insights. The script also plots the daily Keltner channel. This script is ideal for traders who want to gauge volatility, identify key levels, and make data-driven decisions.
b]Key Features:
📈 1. Daily and Weekly ATR Levels
🔵ATR Levels: The script calculates and displays ATR-based levels for the day and week. These levels are derived from the previous day's or week's close price and are adjusted using customizable multipliers (0.5x, 1x, and 1.5x by default).
🔵You can choose the number of ATR levels (1, 2, or 3) and adjust the multipliers to suit your trading strategy.
🌐 2. ATR Bands (Keltner Channels)
🔵The script includes an option to display ATR Bands, which are volatility-based envelopes around a moving average. These bands help identify overbought and oversold conditions.
🔵You can adjust the ATR multiplier and the length of the moving average used for the bands.
🧮 3. Historical Statistics and Conditional Probability
🔵 Historical Analysis: The script analyzes historical price movements to calculate the likelihood of closing at certain ATR levels.
🔵 Conditional Probability: This feature shows the probability of the price reaching specific ATR levels given the current market conditions. The conditional matches historical data by an open in the same opening ATR bucket, as well as the current price bucket having been visited in the historical case. Conditional probabilities are just statistics, and do not predict anything.
Data Table: 📚
🔵 Historical Close Probability: The percentage of days the price closed within each ATR level.
🔵 Conditional Close Probability: The likelihood of the price closing within each ATR level today.
❓ What is Conditional Probability? ❓
Conditional probability is a statistical measure that calculates the likelihood of an event occurring given that another event has already occurred. In this script, it is used to determine the probability of the price reaching specific ATR levels based on the current opening range as well as current ATR distance from the previous close.
For example:
If the market opens near the lower end of the first ATR level, the script calculates the likelihood of the price reaching the upper end of the first, second, or third ATR level.
This analysis is based on historical data, making it a powerful tool for understanding potential price movements.
🌟 Understanding the Levels
🔵Daily Levels: These are based on the previous day's close price and ATR. They are updated at the start of each new day.
🔵Weekly Levels: These are based on the previous week's close price and ATR. They are updated at the start of each new week.
🔵ATR Bands: These are dynamic levels that adjust with market volatility.
🔬 Analyze the Statistics (Daily only for now, no weekly yet)
🔵Use the interactive table to understand historical probabilities and conditional probabilities.
🔵Focus on the current opening range and the likelihood of reaching specific levels.
🧠 Make Trading Decisions
🔵Use the ATR levels and bands to identify key support and resistance levels.
🔵Use the conditional probability table to gauge the likelihood of reaching specific targets.
🔵Adjust your strategy based on the historical performance of the market.
Example Use Cases
1. Day Trading
Use the daily ATR levels to set intraday targets and stop-loss levels.
Monitor the conditional probability table to adjust your expectations based on the opening range.
2. Swing Trading
Use the weekly ATR levels to identify longer-term support and resistance levels.
3. Scalping
Use the ATR bands to identify overbought and oversold conditions.
Use the conditional probability table to quickly assess the likelihood of price movements.
Elastic Volume-Weighted Student-T TensionOverview
The Elastic Volume-Weighted Student-T Tension Bands indicator dynamically adapts to market conditions using an advanced statistical model based on the Student-T distribution. Unlike traditional Bollinger Bands or Keltner Channels, this indicator leverages elastic volume-weighted averaging to compute real-time dispersion and location parameters, making it highly responsive to volatility changes while maintaining robustness against price fluctuations.
This methodology is inspired by incremental calculation techniques for weighted mean and variance, as outlined in the paper by Tony Finch:
📄 "Incremental Calculation of Weighted Mean and Variance" .
Key Features
✅ Adaptive Volatility Estimation – Uses an exponentially weighted Student-T model to dynamically adjust band width.
✅ Volume-Weighted Mean & Dispersion – Incorporates real-time volume weighting, ensuring a more accurate representation of market sentiment.
✅ High-Timeframe Volume Normalization – Provides an option to smooth volume impact by referencing a higher timeframe’s cumulative volume, reducing noise from high-variability bars.
✅ Customizable Tension Parameters – Configurable standard deviation multipliers (σ) allow for fine-tuned volatility sensitivity.
✅ %B-Like Oscillator for Relative Price Positioning – The main indicator is in form of a dedicated oscillator pane that normalizes price position within the sigma ranges, helping identify overbought/oversold conditions and potential momentum shifts.
✅ Robust Statistical Foundation – Utilizes kurtosis-based degree-of-freedom estimation, enhancing responsiveness across different market conditions.
How It Works
Volume-Weighted Elastic Mean (eμ) – Computes a dynamic mean price using an elastic weighted moving average approach, influenced by trade volume, if not volume detected in series, study takes true range as replacement.
Dispersion (eσ) via Student-T Distribution – Instead of assuming a fixed normal distribution, the bands adapt to heavy-tailed distributions using kurtosis-driven degrees of freedom.
Incremental Calculation of Variance – The indicator applies Tony Finch’s incremental method for computing weighted variance instead of arithmetic sum's of fixed bar window or arrays, improving efficiency and numerical stability.
Tension Calculation – There are 2 dispersion custom "zones" that are computed based on the weighted mean and dynamically adjusted standard student-t deviation.
%B-Like Oscillator Calculation – The oscillator normalizes the price within the band structure, with values between 0 and 1:
* 0.00 → Price is at the lower band (-2σ).
* 0.50 → Price is at the volume-weighted mean (eμ).
* 1.00 → Price is at the upper band (+2σ).
* Readings above 1.00 or below 0.00 suggest extreme movements or possible breakouts.
Recommended Usage
For scalping in lower timeframes, it is recommended to use the fixed α Decay Factor, it is in raw format for better control, but you can easily make a like of transformation to N-bar size window like in EMA-1 bar dividing 2 / decayFactor or like an RMA dividing 1 / decayFactor.
The HTF selector catch quite well Higher Time Frame analysis, for example using a Daily chart and using as HTF the 200-day timeframe, weekly or monthly.
Suitable for trend confirmation, breakout detection, and mean reversion plays.
The %B-like oscillator helps gauge momentum strength and detect divergences in price action if user prefer a clean chart without bands, this thanks to pineScript v6 force overlay feature.
Ideal for markets with volume-driven momentum shifts (e.g., futures, forex, crypto).
Customization Parameters
Fixed α Decay Factor – Controls the rate of volume weighting influence for an approximation EWMA approach instead of using sum of series or arrays, making the code lightweight & computing fast O(1).
HTF Volume Smoothing – Instead of a fixed denominator for computing α , a volume sum of the last 2 higher timeframe closed candles are used as denominator for our α weight factor. This is useful to review mayor trends like in daily, weekly, monthly.
Tension Multipliers (±σ) – Adjusts sensitivity to dispersion sigma parameter (volatility).
Oscillator Zone Fills – Visual cues for price positioning within the cloud range.
Posible Interpretations
As market within indicators relay on each individual edge, this are just some key ideas to glimpse how the indicator could be interpreted by the user:
📌 Price inside bands – Market is considered somehow "stable"; price is like resting from tension or "charging batteries" for volume spike moves.
📌 Price breaking outer bands – Potential breakout or extreme movement; watch for reversals or continuation from strong moves. Market is already in tension or generating it.
📌 Narrowing Bands – Decreasing volatility; expect contraction before expansion.
📌 Widening Bands – Increased volatility; prepare for high probability pull-back moves, specially to the center location of the bands (the mean) or the other side of them.
📌 Oscillator is just the interpretation of the price normalized across the Student-T distribution fitting "curve" using the location parameter, our Elastic Volume weighted mean (eμ) fixed at 0.5 value.
Final Thoughts
The Elastic Volume-Weighted Student-T Tension indicator provides a powerful, volume-sensitive alternative to traditional volatility bands. By integrating real-time volume analysis with an adaptive statistical model, incremental variance computation, in a relative price oscillator that can be overlayed in the chart as bands, it offers traders an edge in identifying momentum shifts, trend strength, and breakout potential. Think of the distribution as a relative "tension" rubber band in which price never leave so far alone.
DISCLAIMER:
The Following indicator/code IS NOT intended to be a formal investment advice or recommendation by the author, nor should be construed as such. Users will be fully responsible by their use regarding their own trading vehicles/assets.
The following indicator was made for NON LUCRATIVE ACTIVITIES and must remain as is, following TradingView's regulations. Use of indicator and their code are published for work and knowledge sharing. All access granted over it, their use, copy or re-use should mention authorship(s) and origin(s).
WARNING NOTICE!
THE INCLUDED FUNCTION MUST BE CONSIDERED FOR TESTING. The models included in the indicator have been taken from open sources on the web and some of them has been modified by the author, problems could occur at diverse data sceneries, compiler version, or any other externality.
