Oscillator & SentimentThis script is a custom TradingView indicator that calculates an oscillator and sentiment line based on various input parameters. The oscillator is based on a modified version of My Oscillator, which is a measure of price deviation from its exponential moving average ( EMA ). The sentiment line is a smoothed average of the oscillator values. The script also uses a unique color-coding system to represent the trends in the oscillator and sentiment line, making it visually appealing and easier for traders to identify market movements.
Parameters:
Fast Length: fast EMA length.
Slow Length: slow EMA length.
SMA Length: simple moving average length .
Sentiment Length: The length for calculating the sentiment line.
LengthInputRoR: A constant value used for the highest and lowest calculations.
Calculations:
Highest and Lowest: The highest and lowest values of the Simple Moving Average of high and low prices over the LengthInputRoR period.
Price Calculation (HLC2): The average of the high, low, and close prices divided by ...
My Oscillator ( SMO ): A measure of price deviation from the EMA5. It is calculated with HLC2 , EMA5, STDDEVS
Sentiment: A Simple Moving Average of My Oscillator over the sentiment_length period.
Colors:
Sentiment Color: Changes based on the current sentiment value relative to the previous value. It can have three different color variations to represent increasing, decreasing, or steady sentiment.
Candle Color: Adjusts according to the close price relative to the highest and lowest values. It helps traders to quickly identify if the price is in a strong or weak position.
Key Features:
Unique Oscillator and Sentiment Combination:
The script integrates My Oscillator and a sentiment line calculation, providing a comprehensive view of the market. The oscillator is a deviation-based indicator that is responsive to market trends, while the sentiment line offers a smoothed representation of the oscillator values.
Intuitive Color-Coding System:
Bullish state Confirmed: The oscillator is green and the sentiment is above 0 and below the oscillator.
Bearish state Confirmed: The oscillator is red and the sentiment line is below 0 and above the oscillator.
Neutral state: The oscillator is yellow above or below 0, normally a risk off area and wait for direction confirmation, doesn't mean that there can't be a Long or Short possibility.
Neutral state often also gives Long or Short Setup's when the oscillator is 1 for Long and -1 for Short, but in the Neutral state there will be more chance of moves up or down.
The Script will also color the candles in the main-chart the same as the oscillator colors
Enhanced Market Analysis:
The combination of the oscillator, sentiment line, and color-coding system provides traders with valuable insights into the market's direction, strength, and momentum, ultimately helping them make more informed trading decisions.
** This script is a great to use together with my other script: "Long & Short / Bullish & Bearish & Neutral / Sentiment" ( it will color the bars so if you use them together turn off barcolor in this one if you like that system: "Long & Short / Bullish & Bearish & Neutral / Sentiment")
Sentiment
Quad RSRelative Strength (RS) is an Indicator which measures a Stock's performance as compared to a Benchmark Index or another Stock.
For example: RS will tell you whether “A” is increasing more or less than “B” in any market condition. It is one of the tools which is best suited for Momentum Investing.
How RS can be used as a Momentum Indicator:
RS is used in identifying both the strongest and the weakest stock, or any asset class, within the market. Usually, the stocks which display strong or weak RS over a given time period tend to continue to move in the same direction.
How to calculate Relative Strength:
Divide change of "A" over some time period by the change of a particular index/stock "B" over the same time period.
This indicator oscillates around zero. If the value is greater than zero, "A" has been relatively strong compared to "B", during the selected period; if the value is less than zero, "A" has been relatively weak.
Configuration & Default settings:
The Relative symbol can be Input, default is Nifty50.
Time frame can be set, I recommend setting to Day. Default time frame is set to same as chart.
Four different periods can be set. Default values are 500, 250, 125 & 63. If time frame is set as 'Day', these numbers correspond to 2 years, 1 year, 1/2 year & 1 quarter.
Example chart: NiftyMidCap100 with Quad RS indicator with Nifty50 used as Relative Symbol, Four periods: 500, 250, 125 & 63
LNL Simple Hedging ToolLNL Simple Hedging Tool
Simple Hedging Tool was created specifically for swing traders who struggle with hedging. This tool helps to spot the ideal moments to put the hedges on (protection of the portfolio during "high risk" times). Simple Hedging Tool will not help you when day trading. It was designed for the daily charts. It is called simple because it is pretty much self-explanatory indicator. The candles are either blue or yellow. Meaning of the colors depend on the version you are using. This tool consist of two versions:
SPX Version:
This version was designed for indexes & overall market benchmarks. In contrast with the VIX version, the SPX version is little more sophisticated since it is based on key market internals. Blue arrows above the candles? More often than not this is signalizing that the key market internals are now approaching bearish signals which means it is the best time to hedge any bullish positions. On the contrary, the yellow arrows are the good reason to lighten up of the shorts & ease off the gas pedal on any bearish outlooks.
VIX Version:
Apart from the black swan events (big market crashes) Vix usually oscillates between the daily extremes. The VIX version is based on a simple bollinger band technique which is visualized with blue & yellow arrows. Whenever the yellow arrows & candles appear, it is good time to put the hedges on & perhaps lighten up on longs.
IMPORTANT DISCLAIMER:
The signals from this tool WILL NOT TELL YOU where to buy or sell! But rather when is a good time TO NOT buy or TO NOT sell. Once the signals appear it does not necessarily mean that the move is over & reversion willl happen immidiately. These signals can be flashing for days even weeks. They are not flashing for you to change the bias but rather tighten up your exposure in case your portfolio is mostly one sided.
Hope it helps.
Market RiskThis Pine Script defines an indicator called "Custom Market Risk, Sentiment & Bollinger Bands Indicator" with the short title "CMRS&BB". The indicator calculates risk, sentiment, and Bollinger Bands Percent based on technical indicators and user inputs.
The risk calculation is based on the difference between the current close price and the previous close price, and the average gain and loss over a specified period are calculated. The relative strength index is then calculated by dividing the average gain by the average loss. The risk is calculated using a formula that involves the relative strength index.
The sentiment calculation is based on three technical indicators, and the sentiment score is calculated as the average of the signals generated by these indicators. The sentiment is considered positive if the sentiment score is greater than 0.
The Bollinger Bands Percent is calculated based on the length and multiplier inputs, the moving average, and the standard deviation of the close price. The upper and lower bands are calculated based on the basis and deviation. The Bollinger Bands Percent is then calculated as the ratio of the difference between the close price and the lower band to the difference between the upper and lower bands.
The combined signal is calculated by adding the risk, sentiment score multiplied by a factor, and Bollinger Bands Percent multiplied by a factor. The risk levels are color-coded based on the combined signal, and the corresponding color-coded risk levels are plotted. The horizontal lines and fills representing the risk levels are also plotted. The candle color is set based on the sentiment, where green represents positive sentiment, and red represents negative sentiment.
It is important to note that this script is not intended to provide specific buy or sell signals. However, green color-coded risk levels may indicate a possible buy moment, while red color-coded risk levels may indicate a possible sell moment. It is recommended to perform additional analysis and consider other factors before making any trading decisions.
Long & Short / Bullish & Bearish & Neutral / Sentiment LONG and SHORT signal generation:
The LONG and SHORT signals in this script are generated based on a combination of sentiment, price strength, and volume strength calculations. The following parameters and calculations are used in determining these signals:
Sentiment:
The sentiment is calculated using a Simple Moving Average ( SMA ) of the SMO (oscillator) over a specified sentiment_length.
Price Strength:
The price strength is calculated as the percentage change in the closing price compared to the previous closing price.
Volume Strength:
The volume strength is calculated as the percentage change in the trading volume compared to the previous trading volume .
Custom Oscillator:
This oscillator is calculated as the difference between price strength and volume strength, followed by calculating its SMA over a specified strength_length.
The LONG signal is triggered when:
The sentiment_diff (difference between the oscillator and the SMA oscillator) is greater than 0, and the close price is greater than the fast EMA ( Exponential Moving Average ) of the close price, OR
The custom oscillator crosses over its SMA , and the close price is greater than the open price, and the close price of the previous period is greater than the close price of two periods ago.
The SHORT signal is triggered when:
The sentiment_diff is less than 0, and the close price is less than the fast EMA of the close price, OR
The custom oscillator crosses under its SMA , and the close price is less than the open price, and the close price of the previous period is less than the close price of two periods ago.
Color change description:
The color change in this script is based on the relationship between the close price and the highest/lowest SMAs of the high/low price over a specified lengthInputRoR. The following colors are used:
Green:
Bullish area (close price is greater than the highest SMA of the high price)
Red:
Bearish area (close price is less than the lowest SMA of the low price)
Yellow:
Neutral area (close price is between the highest and lowest SMAs of the high and low prices)
Color meaning description:
Yellow (Neutral Area):
This color indicates that the close price is between the highest and lowest SMAs of the high and low prices, signaling more caution and uncertainty in the market.
Green ( Bullish Area):
This color represents a bullish market condition where the close price is greater than the highest SMA of the high price, suggesting a higher probability of a successful LONG position.
Red ( Bearish Area):
This color signifies a bearish market condition where the close price is less than the lowest SMA of the low price, indicating a higher probability of a successful SHORT position.
Support and Resistance lines explanation:
Support and resistance lines are calculated based on the highest and lowest prices over a specified number of periods. These lines are used to identify significant price levels where the market may experience increased buying or selling pressure.
Resistance:
The resistance line is calculated using the highest high price over a specified number of periods. This line represents a price level where selling pressure is expected to increase, making it more difficult for the price to rise further. Traders often consider resistance levels as potential entry points for SHORT positions or exit points for LONG positions.
Support:
The support line is calculated using the lowest low price over a specified number of periods. This line represents a price level where buying pressure is expected to increase, making it more difficult for the price to fall further. Traders often consider support levels as potential entry points for LONG positions or exit points for SHORT positions.
The resistance and support lines are plotted using different colors to help traders visualize the important price levels where the market may experience a reversal or consolidation.
Final Words:
This script provides LONG and SHORT signals and alerts based on a combination of sentiment, price strength, and volume strength calculations. It is designed to serve as a high-quality aid for executing well-informed trading ideas. However, it's important to note that the LONG and SHORT signals and alerts generated by this script should not be considered as trading advice. Traders should always conduct their own research and analysis before making any trading decisions. The script aims to assist in visualizing important market trends and price levels, helping traders make more informed decisions based on their personal trading strategies.
Mason’s Line IndicatorThe Macon Strategy is an idea conceived by Didier Darcet , co-founder of Gavekal Intelligence Software. Inspired by the Water Level, an instrument used by masons to check the horizontality or verticality of a wall. This method aims to measure the psychology of financial markets and determine if the market is balanced or tilting towards an unfavorable side, focusing on the behavioral risk of markets rather than economic or political factors.
The strategy examines the satisfaction and frustration of investors based on the distance between the low and high points of the market over a period of one year. Investor satisfaction is influenced by the current price of the index and the path taken to reach that price. The distance to the low point provides satisfaction, while the distance to the high point generates frustration. The balance between the two dictates investors’ desire to hold or sell their positions.
To refine the strategy, it is important to consider the opinion of a group of investors rather than just one individual. The members of a hypothetical investor club invest successively throughout the past year. The overall satisfaction of the market on a given day is a democratic expression of all participants.
If the overall satisfaction is below 50%, investors are frustrated and sell their positions. If it is above, they are satisfied and hold their positions. The position of the group of investors relative to the high and low points represents the position of the air bubble in the water level. Market performance is measured day by day based on participant satisfaction or dissatisfaction.
In conclusion, memory, emotions, and decision-making ability are closely linked, and their interaction influences investment decisions. The Macon Strategy highlights the importance of the behavioral dimension in understanding financial market dynamics. By studying investor behavior through this strategy, it is possible to better anticipate market trends and make more informed investment decisions.
Presentation of the Mason’s Line Indicator:
The main strategy of this indicator is to measure the average satisfaction of investors based on the position of an imaginary air bubble in a tube delimited by the market’s highs and lows over a given period. After calculating the satisfaction level, it is then normalized between 0 and 1, and a moving average can be used to visualize trends.
Key features:
Calculation of highs and lows over a user-defined period.
Determination of the position of the air bubble in the tube based on the closing price.
Calculation of the average satisfaction of investors over a selected period.
Normalization of the average satisfaction between 0 and 1.
Visualization of normalized or non-normalized average satisfaction levels, as well as their corresponding moving averages.
User parameters:
Period for min and max (days) : Sets the period over which highs and lows will be calculated (1 to 365 days).
Period for average satisfaction (days) : Determines the period over which the average satisfaction of investors will be calculated (1 to 365 days).
Period for SMA : Sets the period of the simple moving average used to smooth the data (1 to 1000 days).
Bubble_value : Adjustment of the air bubble value, ranging from 0 to 1, in increments of 0.025.
Normalized average satisfaction : Option to choose whether to display the normalized or non-normalized average satisfaction.
Please note that the Mason’s Line Indicator is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
Cryptocurrency Market Sentiment v1.0Introduction:
Capable of observing the market sentiment of the cryptocurrency market
The relative status of BTC and altcoins
How it works:
1. The general uptrend process of the cryptocurrency market is BTC → ETH → high-cap altcoins → low-cap altcoins. When funds cannot push up BTC's market cap, funds gradually flow into smaller-cap altcoins until the upward trend ends.
2. Select ETH as the representative of altcoins, and understand the sentiment and current stage
3. Mathematical principle : divide the price of ETH by the price of BTC, and then apply it to the RSI formula .
How to use it:
1. Similar to the RSI indicator , when CMS enters the overbought zone, it represents an active altcoin market, a passionate market sentiment , and the end of the uptrend.
2. When CMS enters the oversold zone, it indicates the leading stage of BTC in the rising trend or the capital flow back to BTC in the declining process .
3. If CMS is at a low level, long positions should focus on altcoins, and short positions should focus on BTC, and vice versa.
----------------------------------------------------------------------------------------------------------
简单介绍：
能够观察加密市场市场情绪
BTC和寨币的相对状态
如何工作：
1、加密市场一般的上涨过程为 BTC → ETH → 大市值山寨 → 小市值山寨，当资金无法推动大市值的BTC上涨时，资金就会逐渐流向市值较小的山寨，直到一轮上涨结束。
2、选取ETH作为altcoins的代表，通过ETH与BTC的关系来了解加密市场的情绪和目前上涨的阶段。
3、数学原理：将ETH的价格/BTC的价格，随后将其带入RSI公式
如何使用：
1、与RSI指标类似，当cms进入超买时，代表寨币市场的活跃，市场情绪热烈，上涨进入尾声。
2、当cms进入超卖时，为上涨中BTC领涨的阶段或下降过程中资金回流BTC。
3、如果cms在低位，做多应关注altcoins，做空应关注btc，反之亦然。
My LONG and SHORT signals and Bullish and Bearish by seatripsLONG and SHORT signal generation:
The LONG and SHORT signals in this script are generated based on a combination of sentiment, price strength, and volume strength calculations. The following parameters and calculations are used in determining these signals:
Sentiment: The sentiment is calculated using a Simple Moving Average ( SMA ) of the SMO (oscillator) over a specified sentiment_length.
Price Strength: The price strength is calculated as the percentage change in the closing price compared to the previous closing price.
Volume Strength: The volume strength is calculated as the percentage change in the trading volume compared to the previous trading volume .
Custom Oscillator: This oscillator is calculated as the difference between price strength and volume strength, followed by calculating its SMA over a specified strength_length.
The LONG signal is triggered when:
The sentiment_diff (difference between the oscillator and the SMA oscillator) is greater than 0, and the close price is greater than the fast EMA ( Exponential Moving Average ) of the close price, OR
The custom oscillator crosses over its SMA , and the close price is greater than the open price, and the close price of the previous period is greater than the close price of two periods ago.
The SHORT signal is triggered when:
The sentiment_diff is less than 0, and the close price is less than the fast EMA of the close price, OR
The custom oscillator crosses under its SMA , and the close price is less than the open price, and the close price of the previous period is less than the close price of two periods ago.
Color change description:
The color change in this script is based on the relationship between the close price and the highest/lowest SMAs of the high/low price over a specified lengthInputRoR. The following colors are used:
Green: Bullish area (close price is greater than the highest SMA of the high price)
Red: Bearish area (close price is less than the lowest SMA of the low price)
Yellow: Neutral area (close price is between the highest and lowest SMAs of the high and low prices)
Color meaning description:
Yellow (Neutral Area): This color indicates that the close price is between the highest and lowest SMAs of the high and low prices, signaling more caution and uncertainty in the market.
Green ( Bullish Area): This color represents a bullish market condition where the close price is greater than the highest SMA of the high price, suggesting a higher probability of a successful LONG position.
Red ( Bearish Area): This color signifies a bearish market condition where the close price is less than the lowest SMA of the low price, indicating a higher probability of a successful SHORT position.
Support and Resistance lines explanation:
Support and resistance lines are calculated based on the highest and lowest prices over a specified number of periods. These lines are used to identify significant price levels where the market may experience increased buying or selling pressure.
Resistance: The resistance line is calculated using the highest high price over a specified number of periods. This line represents a price level where selling pressure is expected to increase, making it more difficult for the price to rise further. Traders often consider resistance levels as potential entry points for SHORT positions or exit points for LONG positions.
Support: The support line is calculated using the lowest low price over a specified number of periods. This line represents a price level where buying pressure is expected to increase, making it more difficult for the price to fall further. Traders often consider support levels as potential entry points for LONG positions or exit points for SHORT positions.
The resistance and support lines are plotted using different colors to help traders visualize the important price levels where the market may experience a reversal or consolidation.
Final Words:
This script provides LONG and SHORT signals and alerts based on a combination of sentiment, price strength, and volume strength calculations. It is designed to serve as a high-quality aid for executing well-informed trading ideas. However, it's important to note that the LONG and SHORT signals and alerts generated by this script should not be considered as trading advice. Traders should always conduct their own research and analysis before making any trading decisions. The script aims to assist in visualizing important market trends and price levels, helping traders make more informed decisions based on their personal trading strategies.
Regular Trading Hour Sessions for America, Asia and EUThis trading view script is a simple one but I find it very helpful in spotting changes in trend of FX.
The basic idea is to create a visual direction from the previous session to the next new session.
The concept while basic provides visual trend direction and changes as session change.
The three sessions are:
1. Asia from 2130-0400
2. Europe from 0300-1130
3. America from 0930-1600
When you use a line chart you will see the default line when no sessions are active.
Features I plan to add
* Tracking delta of each session
* Moving Averages of each session
* Momentum of each session
* Delta difference
My ultimate goal for this script will be to provide a way to visualize the impact of each session and provide data to buy/sell triggers for Trading Strategies.
Please provide feedback and if you use the script or add a feature please update me or send me the feature to add to the script.
Equilibrium╭━━━╮╱╱╱╱╱╱╭╮╱╭╮
┃╭━━╯╱╱╱╱╱╱┃┃╱┃┃
┃╰━━┳━━┳╮╭┳┫┃╭┫╰━┳━┳┳╮╭┳╮╭╮
┃╭━━┫╭╮┃┃┃┣┫┃┣┫╭╮┃╭╋┫┃┃┃╰╯┃
┃╰━━┫╰╯┃╰╯┃┃╰┫┃╰╯┃┃┃┃╰╯┃┃┃┃
╰━━━┻━╮┣━━┻┻━┻┻━━┻╯╰┻━━┻┻┻╯
╱╱╱╱╱╱┃┃
╱╱╱╱╱╱╰╯
Overview
Equilibrium is a tool designed to measure the buying & selling pressure in the market. It is depicted as a “pressure gauge” that automatically adjusts as new candles are formed, providing a real-time indication of who's on top right now, buyers or sellers?
Background
Supply & demand is considered to be the main driving force of our modern economies, where the interaction between the two parties(sellers & buyers) leads to the determination of the fair price for a given product. Stock markets are no exception, they operate very much based around the idea of supply & demand.
In simple terms, supply refers to the availability of a product, and demand is the willingness of consumers to buy that product at a given price. It is obvious that different vendors may sell the same product at slightly different prices, and similarly, different customers may choose to buy the same product from different vendors at varying prices. The idea is that the price is allowed to fluctuate from time to time, but in a free & fair market, the price will eventually settle down to a value that makes both the parties happy. Such a state is known as the “Price-Equilibrium”, and this process is also referred to as the market mechanism.
This is the basic assumption around which this tool is based, the market is always trying to move towards a state of equilibrium.
Calculations
This tool takes a simplistic approach to estimate the degree of imbalance between buyers & sellers, here’s a brief summary of how the pressure is calculated:
- We compute the total lengths of red & green candles for a given period, i.e. price range multiplied by the volume for that candle.
- Then the distribution of each type of candle is calculated.
- Assuming more red candles denote more selling pressure, and green candles denote buying pressure, the gauge is populated cell by cell.
- As the pressure on one side increases, the intensity of the cell color also increases, signifying the extent to which one side is dominating.
How to use it
- The indicator is designed as a pressure gauge that moves up(vertical alignment) or to the right(horizontal alignment) as the buying pressure increases, and moves down or to the left as the selling pressure increases. How it is to be used & applied, that completely depends on your trading methodology. But, the general idea is that we expect the market to be in a state of equilibrium, and if that is not the case the tool will highlight that, and this is also where the opportunity lies to find suitable trades.
- Just by having an idea about who’s dominating the market currently, a trader can also pick sides wisely. Remember, the market is always striving to come back a state of equilibrium, and a slight imbalance can indicate the current trend, and more importantly, who’s more likely to make the next move.
User Settings
The tool offers some minimal configurations for the end user:
- You can choose to display the actual percentage value in the gauge(Show Text).
- You can adjust colors that denote buyers & sellers.
- You can change the layout of gauge, default is vertical(right side of the screen).
- Last, and most important, you can adjust the number of candles to traverse for calculating the pressure. Default is 50, can go upto 1000.
Stock Dissect DashboardI developed this script, to help me in my analysis process of Stocks.
In it I have combined several things that I look at when evaluating a company.
First, there is the Macro part, where I have added the most important (at least for me) macro indicators, such as inflation, interest rates, initial jobless claims etc.
Under the last is the latest reported value, next we have the previous, and next to them is the change.
Underneath it is the technical part.
I have added the 1-Week, 1-Month, 3-Month, and 1-Year returns. This way I can easily see the performance of the stock over time.
We have a market regime indicator, which tells us whether the stock is Trending, Mean-Reverting, or Neutral.
Also, I've added the RSI and 50 and 200 Day Moving Averages for additional analysis
At the bottom, I've included some of the fundamentals that I look at in my analysis process. We have the PE and PB ratio, as well as the debt-to-equity and profit margins.
I hope you guys like it and saves you as much time and energy as it did for me.
Happy trading!
War TimesPlots US Miltary operations start dates. Will update the script later to include more dates and end dates if there is one.
30 Second Futures Session Open RangeThis indicator displays 30 second opening ranges from Globex, Europe, and RTH sessions.
From the RTH session range, it also displays infinitely generating Price Targets based on a % of the opening range size.
I am retrieving the 30 second data using the new "request.security_lower_tf()" function.
The importance of these levels is based on the idea that when the market opens, algorithms establish their positions within the first 30 seconds.
These areas can also be seen as potential areas of support and resistance throughout the sessions.
Enjoy!
ORB Smart Candle finder [With Volume Candle] with EXTENDOpening Range Breakout (ORB) Smart Candle Finder Indicator - finds first smart candle of the day and make it a label to trade at its higher or lower levels. You can adjust the size of smart candle as well as the Volume levels to detect smart candle.
Big 8 Intraday TICKAt the start of each trading day (0930 EST), this indicator calculates the intraday price difference between open and close for the eight largest market cap stocks (AAPL, AMZN, GOOGLE, META, MSFT, NFLX, NVDA, and TSLA), assigns a +/-1 for each, and then plots the cumulative change. An EMA has been added for smoothing purposes that is set to 5 but can be changed. Please note indicator is best used on lower timeframes (15 min or less) and has no applicability to time frames above 1 hour.
The thought behind this indicator is those eight major stocks drive a majority of intraday price change in indices like SPY and QQQ that are heavily weighted towards these stocks, therefore they should be a leading indicator in price change. You can often catch a move in SPY or QQQ one to two bars (on 1 min chart) ahead of the actual move because you see this indicator moving strong to one direction.
It's not perfect as there are divergences you will see when you compare historical charts, but oftentimes those divergences ultimately lead to significant price swings in the same direction as this indicator, so recommend being on watch to pull the trigger when you see those and price confirms.
You can use this indicator in a few ways:
1. Confirmation that your current trade is in the same direction as this indicator
2. Use the zero cross as a trigger for put or call entry
3. Focusing only on calls/longs if the value is above 0, or only puts/shorts if the value is below zero. Just be sure to keep an eye on reversals.
If you have recommendations on how to improve, let me know and I'll do my best to make changes.
Institutional Strength & Flow (Expo)█ Overview
The Institutional Strength & Flow (Expo) Indicator is a tool that's designed to help traders identify institutional activity in the market. Institutional investors, such as hedge funds and investment banks, have a major impact on the market. By tracking their activity, traders can gain insights into the direction of the market and make more informed trading decisions.
█ How is Institutional Strength & Flow calculated?
Institutional strength and flow refer to the large trades made by institutional investors, such as pension funds, hedge funds, and mutual funds. These investors manage large amounts of money and can make significant trades that move the market. As a result, it is essential to understand and interpret the impact of these trades on the price of an asset.
To calculate institutional strength and flow, you would need access to information on the amount of money institutional investors have to invest in the market and the volume of their trades. Unfortunately, this information is not readily available to retail traders.
There are, however, some proxies for institutional strength and flow that can be used to approximate these values by looking at other factors correlated with institutional activity. Three factors are:
The average trading volume over a given period.
The strength of the price changes.
The given volatility.
This indicator uses these approximate values to calculate the institutional strength and flow.
█ How to use
Market trends
One of the key benefits of the indicator is that it can help traders identify market trends. By tracking institutional activity, we can get a sense of which way the market is headed.
Market sentiment
Institutional strength and flow can also provide insight into market sentiment. Positive institutional flow indicates that institutional investors are buying a particular market or security. This could be a sign of bullish sentiment and may indicate that prices are likely to rise. Negative institutional flow indicates that institutional investors are selling a particular market or security. This could be a sign of bearish sentiment and may indicate that prices are likely to fall.
Divergences
Another way to use the indicator is to look for divergences between the indicator and the price of a particular stock or market. For example, if the price of a stock is trending upwards, but the indicator is trending downwards, this could be an indication that the market is weakening and a good time to sell. Conversely, if the price of a stock is trending downwards, but the indicator is trending upwards, this could be a sign that the market is strengthening and a good time to buy.
Overbought and Oversold
Use the divergences to look for overbought or oversold conditions. If the indicator is above its scaling factor of 1, this could indicate that the market is overbought and due for a correction. Conversely, if the indicator is below 0, this could indicate that the market is oversold and due for a rebound.
█ Indicator Features
The main features are:
Institutional Strength
Institutional Flow
Additional features:
Volatility Bands
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. 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.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
