Unicorn ICT Signals [TradingFinder] Breaker Block + FVG Zones🔵 Introduction
The "ICT Unicorn Model" trading strategy in the "Inner Circle Trader" (ICT) style is one of the well-known strategies in the world of Forex and financial market trading.
The ICT methodology was developed by Michael Huddleston and is based on technical analysis and Price Action concepts.
This style focuses specifically on interpreting price movements and identifying optimal entry and exit points in the market.
In the Unicorn strategy, traders seek points where the probability of price reversal or trend continuation is high. This strategy is primarily based on recognizing and analyzing Price Action patterns and market structure.
By understanding"ICT Unicorn Model", traders can make more informed decisions about where to enter or exit trades, thereby increasing their chances of success in the market.
🟣 Understanding the Breaker Block
A Breaker Block is a specialized form of an Order Block that changes its role after a key market level is broken. Typically, an Order Block is an area on the chart where large institutional orders are likely to be placed, providing strong support or resistance.
However, when this area is breached, and the price moves in the opposite direction, it transforms into what is known as a Breaker Block. This shift indicates a reversal in market sentiment, turning the previous support into resistance or vice versa, thereby signaling a potential trend change to traders.
🟣 The Significance of the Fair Value Gap (FVG)
The Fair Value Gap (FVG) refers to an area on a price chart where the price rapidly moves through a level, leaving behind a gap. This gap represents an imbalance between supply and demand and is often seen as a potential area for price to return and fill the gap.
These zones are crucial for traders as they can indicate future price movements, providing opportunities to enter or exit trades.
🟣 Defining the ICT Unicorn Model
When an FVG overlaps with a Breaker Block, it forms a highly significant trading area known as a Unicorn. This overlap creates an ideal zone for traders to enter the market, as it combines two powerful technical signals.
The Unicorn Model is therefore considered an optimal strategy for identifying precise entry and exit points in the financial markets.
Demand ICT Unicorn Model :
Supply ICT Unicorn Model :
🔵 How to Use
🟣 Bullish ICT Unicorn
The Bullish ICT Unicorn model is applicable when the market is in an uptrend, and traders are seeking buying opportunities.
Follow these steps to identify Bullish ICT Unicorn :
Identify the Bullish Breaker Block : Locate an area where the price moved upward after breaking an Order Block. This area now acts as a Breaker Block.
Identify the Bullish FVG : Look for a Fair Value Gap near the Breaker Block.
Confirm the Unicorn : When the Bullish Breaker Block and Bullish FVG overlap, a Bullish Unicorn is confirmed. Traders can enter a buy position when the price returns to this zone.
🟣Bearish ICT Unicorn
The Bearish ICT Unicorn model is used when the market is in a downtrend, and traders are looking for selling opportunities.
To identify Bearish ICT Unicorn, follow these steps :
Identify the Bearish Breaker Block : Find an area where the price moved downward after breaking an Order Block. This area now acts as a Breaker Block.
Identify the Bearish FVG : Check if a Fair Value Gap has formed near the Breaker Block.
Confirm the Unicorn : When the Bearish Breaker Block and Bearish FVG overlap, a Bearish Unicorn is confirmed. Traders can enter a sell position when the price returns to this zone.
🔵 Setting
🟣 Global Setting
Pivot Period of Order Blocks Detector : Enter the desired pivot period to identify the Order Block.
Order Block Validity Period (Bar) : You can specify the maximum time the Order Block remains valid based on the number of candles from the origin.
Mitigation Level Breaker Block : Determining the basic level of a Breaker Block. When the price hits the basic level, the Breaker Block due to mitigation.
Mitigation Level FVG : Determining the basic level of a FVG. When the price hits the basic level, the FVG due to mitigation.
Mitigation Level Unicorn : Determining the basic level of a Unicorn Block. When the price hits the basic level, the Unicorn Block due to mitigation.
🟣 Unicorn Block Display
Show All Unicorn Block : If it is turned off, only the last Order Block will be displayed.
Demand Unicorn Block : Show or not show and specify color.
Supply Unicorn Block : Show or not show and specify color.
🟣 Breaker Block Display
Show All Breaker Block : If it is turned off, only the last Breaker Block will be displayed.
Demand Main Breaker Block : Show or not show and specify color.
Demand Sub (Propulsion & BoS Origin) Breaker Block : Show or not show and specify color.
Supply Main Breaker Block : Show or not show and specify color.
Supply Sub (Propulsion & BoS Origin) Breaker Block : Show or not show and specify color.
🟣 Fair Value Gap Display
Show Bullish FVG : Toggles the display of demand-related boxes.
Show Bearish FVG : Toggles the display of supply-related boxes.
🟣 Logic Settings
🟣 Order Block Refinement
Refine Order Blocks : Enable or disable the refinement feature. Mode selection.
🟣 FVG Filter
FVG Filter : This refines the number of identified FVG areas based on a specified algorithm to focus on higher quality signals and reduce noise.
Types of FVG filters :
Very Aggressive Filter: Adds a condition where, for an upward FVG, the last candle's highest price must exceed the middle candle's highest price, and for a downward FVG, the last candle's lowest price must be lower than the middle candle's lowest price. This minimally filters out FVGs.
Aggressive Filter: Builds on the Very Aggressive mode by ensuring the middle candle is not too small, filtering out more FVGs.
Defensive Filter: Adds criteria regarding the size and structure of the middle candle, requiring it to have a substantial body and specific polarity conditions, filtering out a significant number of FVGs.
Very Defensive Filter: Further refines filtering by ensuring the first and third candles are not small-bodied doji candles, retaining only the highest quality signals.
🟣 Alert
Alert Name : The name of the alert you receive.
Alert ICT Unicorn Model Block Mitigation :
On / Off
Message Frequency :
This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone :
The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵Conclusion
The Unicorn Model in ICT, utilizing the concepts of Breaker Blocks and Fair Value Gaps, provides an effective tool for identifying entry and exit points in financial markets. By offering more precise signals, this model helps traders make better decisions and minimize trading risks.
Success in applying this model requires practice and a deep understanding of market structure, but it can significantly improve trading performance.
تحليل الاتجاه
Momentum Squeeze Scalper [M2S} [ITZS]Overview
The Momentum Squeeze Scalper is a technical analysis tool designed to identify potential breakout opportunities in the market. It combines elements of momentum analysis with a "squeeze" concept based on Bollinger Bands and Keltner Channels.
Key Components
1. Squeeze Detection
The indicator uses two types of squeezes:
a) Loose TTM Fire (Loose Squeeze): Represented by orange dots. This occurs when one side of the Bollinger Bands is inside the Keltner Channel.
b) Strict TTM Fire (Strict/Tight Squeeze): Represented by green dots. This happens when both sides of the Bollinger Bands are inside the Keltner Channel.
These squeezes can indicate potential breakouts in either direction (long or short).
Long Squeeze: Occurs when prices are compressed at a low level, potentially leading to an upward breakout.
Short Squeeze: Happens when prices are compressed at a high level, possibly leading to a downward breakout.
2. Momentum Line
The Momentum Line is a key feature of this indicator. Its color changes based on specific conditions:
Color 0 (White): Default color, indicating neutral momentum.
Color 1 (Green): Indicates positive momentum. This color appears when:
1. The histogram is positive and increasing, or
2. The momentum is increasing during a squeeze (loose or strict), or
3. There's a strict squeeze in place.
Color 2 (Red): Indicates negative momentum. This color appears when:
1. The histogram is negative and decreasing, or
2. The momentum is decreasing during a squeeze (loose or strict), or
3. There's a strict squeeze in place.
The changing colors of the Momentum Line help traders quickly identify shifts in market momentum and potential trading opportunities.
3. Signal Line
The orange line is the signal line, which is a smoothed version of the momentum line. It can help confirm trend changes when it crosses the momentum line.
Inputs and Their Effects
1. Momentum Period (default: 17):
Purpose: Determines the lookback period for momentum calculation.
Effect: A longer period makes the indicator less sensitive to short-term price changes, resulting in smoother momentum lines but potentially slower signals. A shorter period will make the indicator more responsive to recent price action but may increase noise.
2. Signal Period (default: 8):
Purpose: Sets the smoothing period for the signal line.
Effect: A shorter period makes it more responsive to recent price action, potentially providing earlier signals but with a higher chance of false alerts. A longer period creates a smoother signal line, reducing false signals but potentially delaying entry/exit points.
3. Smooth Momentum (default: false):
Purpose: Determines whether to use EMA smoothing on the source price before momentum calculation.
Effect: When true, it can reduce noise in the momentum calculation, potentially providing clearer signals in choppy markets. When false, it responds more quickly to price changes.
Smoothing Period (default: 1):
Purpose: Sets the period for EMA smoothing when Smooth Momentum is true.
Effect: A higher value creates a smoother momentum line, potentially reducing false signals but also increasing lag.
BB Length (default: 7):
Purpose: Defines the period for Bollinger Bands calculation.
Effect: A shorter length makes the bands more sensitive to price changes, potentially identifying squeezes more quickly but also increasing the chance of false signals. A longer length creates more stable bands but may delay squeeze identification.
StDev (default: 1.0):
Purpose: Standard deviation multiplier for Bollinger Bands.
Effect: Higher values create wider bands, making squeezes less frequent but potentially more significant. Lower values create tighter bands, increasing the frequency of squeezes but potentially reducing their reliability.
Keltner Length (default: 1):
Purpose: Sets the period for Keltner Channel calculation.
Effect: A longer length creates a wider, more stable channel, reducing the frequency of squeezes but potentially making them more reliable. A shorter length creates a tighter channel, increasing squeeze frequency but potentially reducing significance.
Multiplier (default: 0.5):
Purpose: Multiplier for Keltner Channel width.
Effect: Higher values create a wider channel, making squeezes less frequent but potentially more significant. Lower values create a tighter channel, increasing squeeze frequency but potentially reducing their reliability.
KC Smoothing Period (default: 10):
Purpose: Determines the smoothing period for the momentum histogram.
Effect: A longer period creates a smoother histogram, potentially reducing false signals but increasing lag. A shorter period makes the histogram more responsive but potentially noisier.
Smoothing Type (default: None):
Purpose: Allows selection of different smoothing algorithms for the momentum histogram.
Effect: Different smoothing types (e.g., ALMA, DEMA, EMA) can affect how quickly the histogram responds to price changes and how smooth the resulting line is. This can impact the timing and frequency of momentum color changes.
How to Use the Indicator
Look for squeeze dots (orange or green) to identify periods of low volatility.
Pay attention to the color of the Momentum Line:
1. Green suggests potential bullish momentum
2. Red suggests potential bearish momentum
Use the histogram for additional confirmation of momentum strength and direction.
Consider entering trades when the squeeze dots disappear and the Momentum Line shows a strong color signal (green for long, red for short).
How to Adjust the Indicator
1. For More Frequent Signals: Decrease the Momentum Period, Signal Period, BB Length, and Keltner Length. Increase the StDev and decrease the Multiplier. This will make the indicator more sensitive but may increase false signals.
2. For Fewer, More Reliable Signals: Increase the Momentum Period, Signal Period, BB Length, and
Keltner Length. Decrease the StDev and increase the Multiplier. This will reduce sensitivity but may miss some opportunities.
3. To Detect Stronger Squeezes: Increase the StDev for Bollinger Bands and decrease the Multiplier for Keltner Channels. This will make it harder for squeezes to occur, potentially identifying stronger setups.
4. To Reduce Noise: Enable Smooth Momentum and increase the Smoothing Period. Choose a smoothing type like EMA or DEMA for the histogram. This can help in choppy or ranging markets.
5. For Faster Response: Decrease the Momentum Period and Signal Period, and choose a responsive smoothing type like EMA for the histogram. This can be useful in fast-moving markets but may increase false signals.
Interpretation and Trading
1. Squeeze Formation: When you see orange (loose) or green (strict) dots, it indicates a potential buildup of energy in the market. This compression often precedes a significant move.
2. Momentum Direction: Watch the Momentum Line color changes:
Transition to Green: Suggests increasing bullish momentum, especially during a squeeze.
Transition to Red: Suggests increasing bearish momentum, especially during a squeeze.
White: Indicates neutral momentum or no clear direction.
3. Confirmation: Look for the Momentum Line (colored) to cross above the Signal Line (orange) for bullish confirmation, or below for bearish confirmation.
4. Exit Signals: When the squeeze dots disappear and the Momentum Line color changes, it often indicates that the compressed energy has been released, and the strong move may be ending.
5. Trend Strength: The distance between the Momentum Line and the Signal Line can indicate trend strength. A wider gap suggests a stronger trend.
Remember, no indicator is perfect. Always use this tool in conjunction with other forms of analysis and proper risk management. It's recommended to backtest and practice with this indicator on historical data before using it in live trading. Adjust the inputs based on your trading style, timeframe, and the specific characteristics of the asset you're trading.
DEMA Adaptive DMI [BackQuant]DEMA Adaptive DMI
PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner.
Conceptual Foundation and Innovation
The DEMA Adaptive DMI blends the Double Exponential Moving Average (DEMA) with the Directional Movement Index (DMI) to offer a unique approach to trend-following. By applying DEMA to the high and low prices, this indicator refines the traditional DMI calculation, enhancing its responsiveness to price changes. This results in a more adaptive and timely measure of market trends and momentum, providing traders with a more refined tool for capturing directional movements in the market.
Technical Composition and Calculation
At its core, the DEMA Adaptive DMI calculates the DEMA for both the high and low prices over a user-defined period. This dual application of DEMA serves to smooth out price fluctuations while retaining sensitivity to market movements. The DMI is then derived from the changes in these DEMA values, producing a set of plus and minus directional indicators that reflect the prevailing trend. Additionally, an Average Directional Index (ADX) is computed to measure the strength of the trend, with the entire process being dynamically adjusted based on the DEMA calculations.
DEMA Application:
The DEMA is applied to both high and low prices to reduce lag and provide a smoother representation of price action.
Directional Movement Calculation: The DMI is calculated using the smoothed price changes, resulting in plus and minus indicators that accurately reflect market trends.
ADX Calculation:
The ADX is computed to quantify the strength of the trend, offering traders insight into whether the market is trending strongly or is in a phase of consolidation.
Features and User Inputs The DEMA Adaptive DMI offers a range of customizable options to suit different trading styles and market conditions:
DEMA Calculation Period: Users can set the period for the DEMA calculation, allowing for adjustments based on the desired sensitivity.
DMI Length: The length of the DMI calculation can be adjusted, providing flexibility in how trends are measured.
ADX Smoothing Period: The smoothing period for the ADX can be customized to fine-tune the trend strength measurement.
Divergence Detection: Optional divergence detection features allow traders to spot potential reversals based on the DMI and price action.
Visualization options include static high and low levels to mark extreme DMI thresholds, the ability to color bars according to trend direction, and background hues to highlight overbought and oversold conditions.
Practical Applications
The DEMA Adaptive DMI is particularly effective in markets where trend strength and direction are crucial for successful trading. Traders can leverage this indicator to:
Identify Trend Reversals:
Detect potential trend reversals by monitoring the DMI and ADX in conjunction with divergence signals.
Trend Confirmation:
Use the DEMA-based DMI to confirm the strength and direction of a trend, aiding in the timing of entries and exits.
Strategic Positioning:
The indicator's responsiveness allows traders to position themselves effectively in fast-moving markets, reducing the risk of late entries or exits.
Advantages and Strategic Value
By integrating the DEMA with the DMI, this indicator provides a more adaptive and timely measure of market trends. The reduced lag from the DEMA ensures that traders receive signals that are closely aligned with current market conditions, while the dynamic DMI calculation offers a more accurate representation of trend direction and strength. This makes the DEMA Adaptive DMI a valuable tool for traders looking to enhance their trend-following strategies with a focus on precision and adaptability.
Summary and Usage Tips
The DEMA Adaptive DMI is a sophisticated trend-following indicator that combines the benefits of DEMA and DMI into a single, powerful tool. Traders are encouraged to incorporate this indicator into their trading systems for a more nuanced and responsive approach to trend detection and confirmation. Whether used for identifying trend reversals, confirming trend strength, or strategically positioning in the market, the DEMA Adaptive DMI offers a versatile and reliable solution for trend-following strategies.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Curved Price Channels (Zeiierman)█ Overview
The Curved Price Channels (Zeiierman) is designed to plot dynamic channels around price movements, much like the traditional Donchian Channels, but with a key difference: the channels are curved instead of straight. This curvature allows the channels to adapt more fluidly to price action, providing a smoother representation of the highest high and lowest low levels.
Just like Donchian Channels, the Curved Price Channels help identify potential breakout points and areas of trend reversal. However, the curvature offers a more refined approach to visualizing price boundaries, making it potentially more effective in capturing price trends and reversals in markets that exhibit significant volatility or price swings.
The included trend strength calculation further enhances the indicator by offering insight into the strength of the current trend.
█ How It Works
The Curved Price Channels are calculated based on the asset's average true range (ATR), scaled by the chosen length and multiplier settings. This adaptive size allows the channels to expand and contract based on recent market volatility. The central trendline is calculated as the average of the upper and lower curved bands, providing a smoothed representation of the overall price trend.
Key Calculations:
Adaptive Size: The ATR is used to dynamically adjust the width of the channels, making them responsive to changes in market volatility.
Upper and Lower Bands: The upper band is calculated by taking the maximum close value and adjusting it downward by a factor proportional to the ATR and the multiplier. Similarly, the lower band is calculated by adjusting the minimum close value upward.
Trendline: The trendline is the average of the upper and lower bands, representing the central tendency of the price action.
Trend Strength
The Trend Strength feature in the Curved Price Channels is a powerful feature designed to help traders gauge the strength of the current trend. It calculates the strength of a trend by analyzing the relationship between the price's position within the curved channels and the overall range of the channels themselves.
Range Calculation:
The indicator first determines the distance between the upper and lower curved channels, known as the range. This range represents the overall volatility of the price within the given period.
Range = Upper Band - Lower Band
Relative Position:
The next step involves calculating the relative position of the closing price within this range. This value indicates where the current price sits in relation to the overall range.
RelativePosition = (Close - Trendline) / Range
Normalization:
To assess the trend strength over time, the current range is normalized against the maximum and minimum ranges observed over a specified look-back period.
NormalizedRange = (Range - Min Range) / (Max Range - Min Range)
Trend Strength Calculation:
The final Trend Strength is calculated by multiplying the relative position by the normalized range and then scaling it to a percentage.
TrendStrength = Relative Position * Normalized Range * 100
This approach ensures that the Trend Strength not only reflects the direction of the trend but also its intensity, providing a more comprehensive view of market conditions.
█ Comparison with Donchian Channels
Curved Price Channels offer several advantages over Donchian Channels, particularly in their ability to adapt to changing market conditions.
⚪ Adaptability vs. Fixed Structure
Donchian Channels: Use a fixed period to plot straight lines based on the highest high and lowest low. This can be limiting because the channels do not adjust to volatility; they remain the same width regardless of how much or how little the price is moving.
Curved Price Channels: Adapt dynamically to market conditions using the Average True Range (ATR) as a measure of volatility. The channels expand and contract based on recent price movements, providing a more accurate reflection of the market's current state. This adaptability allows traders to capture both large trends and smaller fluctuations more effectively.
⚪ Sensitivity to Market Movements
Donchian Channels: Are less sensitive to recent price action because they rely on a fixed look-back period. This can result in late signals during fast-moving markets, as the channels may not adjust quickly enough to capture new trends.
Curved Price Channels: Respond more quickly to changes in market volatility, making them more sensitive to recent price action. The multiplier setting further allows traders to adjust the channel's sensitivity, making it possible to capture smaller price movements during periods of low volatility or filter out noise during high volatility.
⚪ Enhanced Trend Strength Analysis
Donchian Channels: Do not provide direct insight into the strength of a trend. Traders must rely on additional indicators or their judgment to gauge whether a trend is strong or weak.
Curved Price Channels: Includes a built-in trend strength calculation that takes into account the distance between the upper and lower channels relative to the trendline. A broader range between the channels typically indicates a stronger trend, while a narrower range suggests a weaker trend. This feature helps traders not only identify the direction of the trend but also assess its potential longevity and strength.
⚪ Dynamic Support and Resistance
Donchian Channels: Offer static support and resistance levels that may not accurately reflect changing market dynamics. These levels can quickly become outdated in volatile markets.
Curved Price Channels: Offer dynamic support and resistance levels that adjust in real-time, providing more relevant and actionable trading signals. As the channels curve to reflect price movements, they can help identify areas where the price is likely to encounter support or resistance, making them more useful in volatile or trending markets.
█ How to Use
Traders can use the Curved Price Channels in similar ways to Donchian Channels but with the added benefits of the adaptive, curved structure:
Breakout Identification:
Just like Donchian Channels, when the price breaks above the upper curved band, it may signal the start of a bullish trend, while a break below the lower curved band could indicate a bearish trend. The curved nature of the channels helps in capturing these breakouts more precisely by adjusting to recent volatility.
Volatility:
The width of the price channels in the Curved Price Channels indicator serves as a clear indicator of current market volatility. A wider channel indicates that the market is experiencing higher volatility, as prices are fluctuating more dramatically within the period. Conversely, a narrower channel suggests that the market is in a lower volatility state, with price movements being more subdued.
Typically, higher volatility is observed during negative trends, where market uncertainty or fear drives larger price swings. In contrast, lower volatility is often associated with positive trends, where prices tend to move more steadily and predictably. The adaptive nature of the Curved Price Channels reflects these volatility conditions in real time, allowing traders to assess the market environment quickly and adjust their strategies accordingly.
Support and Resistance:
The trend line act as dynamic support and resistance levels. Due to it's adaptive nature, this level is more reflective of the current market environment than the fixed level of Donchian Channels.
Trend Direction and Strength:
The trend direction and strength are highlighted by the trendline and the directional candle within the Curved Price Channels indicator. If the price is above the trendline, it indicates a positive trend, while a price below the trendline signals a negative trend. This directional bias is visually represented by the color of the directional candle, making it easy for traders to quickly identify the current market trend.
In addition to the trendline, the indicator also displays Max and Min values. These represent the highest and lowest trend strength values within the lookback period, providing a reference point for understanding the current trend strength relative to historical levels.
Max Value: Indicates the highest recorded trend strength during the lookback period. If the Max value is greater than the Min value, it suggests that the market has generally experienced more positive (bullish) conditions during this time frame.
Min Value: Represents the lowest recorded trend strength within the same period. If the Min value is greater than the Max value, it indicates that the market has been predominantly negative (bearish) over the lookback period.
By assessing these Max and Min values, traders gain an immediate understanding of the underlying trend. If the current trend strength is close to the Max value, it indicates a strong bullish trend. Conversely, if the trend strength is near the Min value, it suggests a strong bearish trend.
█ Settings
Trend Length: Defines the number of bars used to calculate the core trendline and adaptive size. A length of 200 will create a smooth, long-term trendline that reacts slowly to price changes, while a length of 20 will create a more responsive trendline that tracks short-term movements.
Multiplier: Adjusts the width of the curved price channels. A higher value tightens the channels, making them more sensitive to price movements, while a lower value widens the channels. A multiplier of 10 will create tighter channels that are more sensitive to minor price fluctuations, which is useful in low-volatility markets. A multiplier of 2 will create wider channels that capture larger trends and are better suited for high-volatility markets.
Trend Strength Length: Defines the period over which the maximum and minimum ranges are calculated to normalize the trend strength. A length of 200 will smooth out the trend strength readings, providing a stable indication of trend health, whereas a length of 50 will make the readings more reactive to recent price changes.
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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!
Market Structure Trailing Stop [BigBeluga]The Market Structure Trailing Stop indicator is an advanced tool for identifying market structure shifts, liquidity sweeps, and potential trend reversals using comprehensive volume analysis. This indicator combines the analysis of market structure pivots (CHoCH - Change of Character) with a sophisticated volume-based trailing stop logic. By evaluating delta volume at key structural points, it allows traders to identify high-probability trend continuations or reversals and manage their trades more effectively.
🔵 KEY FEATURES
● Market Structure Analysis
Pivot-Based Market Structure : The indicator identifies high and lows using user-defined periods, allowing traders to spot key market structure shifts.
Change of Character (CHoCH) : The first significant break of a market structure is marked as a CHoCH, indicating a potential trend reversal.
Break of Structure (BoS) : The indicator highlights subsequent breaks of structure after CHoCH, providing traders with crucial insights into trend strength.
● Advanced Volume Analysis
Delta Volume Evaluation : The indicator calculates delta volume (difference between up and down volume) at each ChoCh or BoS market structure point to assess the strength of the move. Identify Delta Volume from break point back to Pivot
● Trailing Stop Logic
Volume-Validated Trailing Stop : The indicator automatically plots a trailing stop if the delta volume at the UP CHoCH is positive and above the defined threshold and vice versa for Down CHoCH , allowing traders to protect their profits while riding the trend.
Trend Weakness Detection : If a subsequent BoS occurs with negative delta volume or lower volume than the input threshold, the trailing stop disappears, indicating potential trend exhaustion or reversal.
Dynamic Stop Placement : The trailing stop is dynamically adjusted based on market structure and volume, providing traders with a more adaptive stop-loss strategy.
Up Trend Trailing Stop:
Down Trend Trailing Stop:
● Liquidity Sweep Detection
Liquidity Sweep (X) Labels : The indicator identifies liquidity sweeps—points where the price temporarily reverses to sweep liquidity above or below a key level—marked with an “X” label.
Potential Reversal Zones : These liquidity sweeps are potential reversal zones, especially when accompanied by significant delta volume changes, providing traders with early warnings of potential trend reversals.
🔵 HOW TO USE
● Identifying Market Structure Shifts
Change of Character (CHoCH) : When a CHoCH occurs, the indicator calculates the total volume from the high point to the break point. If the delta volume is positive and exceeds the input threshold, a trailing stop is plotted, signaling potential trend continuation.
Break of Structure (BoS) : If BoS is enabled, subsequent breaks of structure are highlighted. If these BoS points show weaker volume or negative delta volume, the trailing stop will disappear, indicating that the trend may be losing strength.
● Using the Trailing Stop Feature
Protecting Profits : Once a CHoCH occurs and the delta volume validates the trend, the trailing stop will be plotted below (or above) the price to protect profits while allowing the trend to run.
Trend Reversal Signals : If the trailing stop disappears due to weak volume at subsequent BoS points, it may signal that the trend is losing momentum, and traders may consider closing their positions or tightening their stops manually.
● Liquidity Sweep Interpretation
Spotting Reversal Zones : Liquidity sweeps, marked with an “X” label, indicate zones where the price has swept liquidity. These areas can serve as potential reversal zones, especially when significant delta volume is observed at these points.
Early Reversal Warnings : Traders can use these liquidity sweep labels as early warnings for potential trend reversals, particularly in conjunction with other technical analysis methods.
🔵 CUSTOMIZATION
Highs and Lows Calculation : Customize the number of bars to the left and right for identifying pivots and market structure shifts.
Volume Threshold : Define the volume threshold to filter out weaker moves and focus on significant market structure shifts.
BoS and Liquidity Sweep Labels : Toggle on or off the BoS and Liquidity Sweep labels to tailor the indicator to your trading style.
Trend Color : Enable or disable trend coloring for candles to visually highlight uptrends and downtrends on the chart.
🔵 CONCLUSION
The Market Structure Trailing Stop indicator combines advanced volume analysis with market structure detection to provide traders with a powerful tool for identifying and managing trends. By leveraging delta volume at key structure points, it helps traders validate trend strength and manage their positions with a dynamic trailing stop strategy. The addition of liquidity sweep detection further enhances its utility, offering early warnings of potential trend reversals. This indicator is ideal for traders who want to gain a deeper understanding of market structure while incorporating volume-based insights into their trading strategies.
VRS (Vegas Reversal Strategy)It is based on the reversal of the price after an accentuated volatility of the previous day. It is tested only on BTC, TF Day, and has an activation value equal to a spike of minimum 2.4% amplitude, a value that I have left in the settings free to be modified if it is found valid for other assets.
In the settings you can change how many of the latest longs or shorts I want to view in the past, colors and various aesthetics.
When the system detects a spike at the end of the day from 2.4% onwards it will signal the direction of Reversal, generating the 3 TP, dotted lines.
Entry into the market must be done at the close of the candle day, unfortunately at night time if you want to enter on the tick.
Stop above/below the spike that generated the condition.
If the Day2 candle closes FULL inside the spike, immediate and early closing of the operation.
There cannot be two consecutive Day events: if you are Long or Short and have taken a stop on the next candle, even if the latter generates another entry, this must not be activated.
TP 1 and 2 are both mandatory at 33% of the position, TP3, based on the current movement, can be considered to be left to run to the bitter end or in any case to structuring confirmations of a slowdown in the price.
Upon reaching TP1 it is mandatory to move the STOP to even.
In the event of the presence of extremely strong directional movements, for example Long direction, an opposite activation, Short, must be done but with reduced capital, on the contrary an activation in the same direction as the trend movement can be done with a surcharge. Always pay attention to Money Management and Risk Management.
Always manage Risk and Money Management in an adequate, technical and sustainable manner in relation to your capital. A fair exposure per transaction is between 1% and 2% of the capital.
VS (Vegas Fractal System)VS is a trading system based on the identification of fractal reaction zones within a larger, carefully identified movement. It is internally made up of 4 sub-systems.
The indicator is composed of the following parameters: Max and Min, are the largest area identified and will act as the STOPLOSS point. L1, is the price reaction level. Entry, is where to place a pending market entry order. TP, is the place to place a 100% sell order.
A valid area must be identified through the Fibonacci levels that join Highs and Lows or vice versa depending on the bullish or bearish movement. To be usable, this movement must not have a sub-movement that has already hit the 0.618 level.
Always manage Risk and Money Management in an adequate, technical and sustainable manner in relation to your capital. A fair exposure per transaction is between 1% and 2% of the capital.
Magic Linear Regression Channel [MW]Introduction
The Magic Linear Regression Channel indicator provides users with a way to quickly include a linear regression channel ANYWHERE on their chart, in order to find channel breakouts and bounces within any time period. It uses a novel method that allows users to adjust the start and end period of the regression channel in order to quickly make adjustments faster, with fewer steps, and with more precision than with any other linear regression channel tool. It includes Fibonacci bands AND a horizontal mode in order for users to quickly define significant price levels based on the high, low, open, and close prices defined by the start period.
Settings
Start Time: This is initially MANUALLY SELECTED ON THE CHART when the indicator is first loaded.
End time: This is also initially MANUALLY SELECTED ON THE CHART when the indicator is first loaded.
Horizontal Line: This forces the baseline to be horizontal. The band distance is defined by the maximum price distance from the band.
Horizontal Line Type: This snaps the horizontal line to the close, high, low, or open price. Or, it can also use a regression calculation for the selected time period to define the y-position of the line.
Extend Line N Bars: How many bars to the left in which to extend the baseline and bands.
Show Baseline ONLY!!: Removes all lines except the baseline and it’s extension.
Add Half Band: Includes a band that is half the distance between the baseline and the top and bottom bands
Add Outer Fibonacci Band: Includes a band that is 1.618 (phi) times the default band distance
Add Inner Fibonacci Band - Upper: Includes a band that is 0.618 (1/phi) times the default band distance
Add Inner Fibonacci Band - Lower: Includes a band that is 0.382 (1 - 1/phi) times the default band distance
Calculations
This indicator uses the least squares approach for generating a straight regression line, which can be reviewed at Wikipedia’s “Simple Linear Regression” page. It sums all of the x-values, and y-values, as well as the sum of the product of corresponding x and y values, and the sum of the squares of the x-values. These values are used to calculate the slope and intercept using the following equations:
slope = (n * sum_xy - sum_x * sum_y) / (n * sum_xx - sum_x * sum_x)
And
intercept = (sum_y - slope * sum_x) / n
The slope and intercept are then used to generate the baseline and the corresponding bands using the user-selected offsets.
How to Use
When the Magic Linear Regression Channel indicator is first added to the chart, there will be a blue prompt behind the “Indicators, Metrics & Strategies” window. Close the window, then select a START POINT by clicking at a desired location on the chart. Next, you will be prompted to select an END POINT. The end point MUST be placed after the START POINT. At this time a channel will be generated. Once you’ve selected the START POINT and END POINT, you can adjust them by dragging them anywhere on the chart. Each adjustment will generate a new channel making it easier for you to quickly visualize and recognize any channel exits and bounces.
The Magic Linear Regression Channel indicator works great at identifying wave patterns. Place the start line at a top or bottom pivot point. Place the end line at the next respective top or bottom pivot. This will give you a complete wave form to work with. When price reaches a band and rejects, it can be a strong indication that price may move back to one of the bands in the channel. If price exits the channel with volume that supports the exit, it may be an indication of a breakout.
You can also use the horizontal mode to identify key levels, then add Fibonacci bands based on regression calculations for the given time period to provide more meaningful areas of support and resistance.
Other Usage Notes and Limitations
Occasionally, off-by-1 errors appear which makes the extended lines protrude at a slightly incorrect angle. This is a known bug and will be addressed in the next release.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
Saral Relative StrengthRelative Strength Indicator
### Overview
The Relative Strength (RS) Indicator is a robust tool designed to measure the performance of a security relative to a benchmark or another security. Unlike traditional indicators, this RS Indicator calculates the outperformance or underperformance in percentage terms, providing a clear and concise comparison.
The equation for calculation can be found in the code itself. This equation compares how much a security's price has changed over a given period (len) relative to the change in price of a benchmark over the same period. The result is expressed as a percentage, showing whether the security has outperformed or underperformed the benchmark. A positive RS value indicates outperformance, while a negative value signals underperformance.
Basically, this indicator is an enhanced version of 'Relative Strength' indicator of 'BharatTrader' Sir with added features like automatic divergence plotting, color-coded filled area and sector names for NSE F&O securities. Default values for some of the parameters are based on discussion by Subhadip Nandy Sir in Trader's Talk with Mr. Rohit Katwal.
### Input Parameters:
Source: The price of a security used in the calculation, with the default being the 'close' price.
Comparative Symbol: Ticker ID of the comparative security, with the default set to NIFTY 50.
Period-RS: The period for calculating the RS line, with a default of 22. The RS line measures the relative performance of the security against the benchmark, helping to identify outperformance or underperformance over time.
Period-MA: The period for calculating the Simple Moving Average (SMA) overlay on the RS line, with a default of 11. The SMA provides a smoothed view of the RS line, helping to identify trends more clearly.
Lookback - Zero Line Trend: Zero Line Trend look-back period, used to determine the angle of the RS line, with a default of 5. This parameter influences the color of the Zero Line based on whether the RS line’s angle is positive or negative.
Lookback - Divergence: Divergence look-back period, with a default of 2, used to detect divergence between the price and the RS line.
Display MA Line: Controls the display of the SMA line. When enabled, the SMA line is plotted over the RS line to indicate trend strength.
Toggle RS Color on MA Crossovers: Controls the color of the RS line. If disabled, the RS line is purple. If enabled, the RS line changes color based on its position relative to the SMA: green for RS > MA, red for RS < MA.
Display Zero Line Trend: Controls the display of the Zero Line. If disabled, the Zero Line is black. If enabled, the Zero Line’s color changes to green or maroon based on the RS line’s angle over time.
Display Divergence: Controls the display of divergence dots on the RS line, indicating potential reversal points.
Display Filled Area: Controls whether the area between the Zero Line and the RS line is filled with color. The fill color changes based on the relationship of the RS line with the SMA & Zero Line as given below.
- Dark Green: RS > 0 and RS > MA, indicating strong outperformance.
- Light Green: RS > 0 and RS < MA, indicating weakening outperformance.
- Dark Red: RS < 0 and RS < MA, indicating strong underperformance.
- Light Red: RS < 0 and RS > MA, indicating weakening underperformance.
Display Sector Name: Controls the display of sector names for NSE F&O securities, helping to plot RS with sectoral indices.
### Key Features:
RS Line:
The RS line represents the relative performance of a security against a benchmark over a specified period (default 22). It helps traders identify whether the security is outperforming or underperforming the benchmark.
SMA Overlay:
A Simple Moving Average (SMA) line is plotted over the RS line, with a default period of 11. The SMA provides a smoothed trend of the RS, making it easier to identify consistent performance trends.
Trend-Sensitive Zero Line:
The Zero Line’s color adapts based on the RS line’s trend:
- Green: Positive angle of the RS line, indicating upward momentum.
- Maroon: Negative angle, indicating downward momentum.
The color can be toggled, with an option to display the Zero Line in black.
Divergence Detection:
Automatically detects and highlights divergences.
- Positive Divergence: RS line rises while the price falls, marked by blue dots.
- Negative Divergence: RS line falls while the price rises, marked by black dots.
Color-Coded Fill Area:
The area between the RS line and the Zero Line is filled with color to visually distinguish different market conditions, with Dark and Light colors providing insight into the strength of the performance:
- Dark Green: Indicates strong outperformance (RS > 0 and RS > MA), suggesting the security is showing significant strength compared to the benchmark.
- Light Green: Indicates weakening outperformance (RS > 0 and RS < MA), signaling that while the security is still outperforming, its strength is diminishing.
- Dark Red: Indicates strong underperformance (RS < 0 and RS < MA), showing the security is significantly weaker than the benchmark.
- Light Red: Indicates weakening underperformance (RS < 0 and RS > MA), suggesting the security is still underperforming but may be regaining some strength.
Sectoral Strength:
Displays sector names for NSE F&O securities, helping users to compare the RS of individual securities with their respective sectoral indices. Comparative Security can be changed easily based on this sector name. Users need not to remember sector names for individual securities.
If any security is not categorized in a specific sector, CNX500 has been considered as a default sector for NSE F&O securities. For other securities, NIFTY50 has been considered as a default sector.
Displacement [QuantVue]Displacement refers to a significant and forceful price movement that indicates a potential shift in market sentiment or trend. Displacement is characterized by a strong push in price action, often seen after a period of consolidation or within a trending market. It is a key concept used to identify the strength of a move and to confirm the direction of the market.
The "Displacement" indicator does this by focusing on identifying strong, directional price movements by combining candlestick analysis with volatility (ATR).
Displacement often appears as a group of candles that are all positioned in the same direction, these candles typically have large bodies and short wicks.
How the indicator works:
Body Size Requirement: Ensures that only candles with a significant body size (relative to their total range) are considered, helping to identify strong market moves.
Consecutive Candle Analysis: Identifies shifts in market sentiment by requiring a series of consecutive bullish or bearish candles to confirm a potential change in trend.
ATR-Based Analysis: Uses the Average True Range (ATR) to gauge market volatility and filter out minor price fluctuations, focusing on substantial movements.
Once all of the requirements are met a triangle is plotted above or below the bar.
Xtrender and TSI FusionXtrender and TSI Fusion Indicator
I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share all of the indicator I have created because I believe in learning and earing together as a community. If you guys have any questions or suggestions write them.
Overview: The Xtrender and TSI Fusion Indicator is a powerful tool designed to help traders analyze market momentum, trends, and potential reversals. By combining Xtrender with the True Strength Index (TSI), this indicator provides a comprehensive view of market dynamics, making it easier to identify trading opportunities.
Image: Timeframe is set to daily
Features:
1.Xtrender Analysis:
Short-Term Xtrender: Visualizes short-term momentum using RSI-based calculations on EMA differences. This helps in identifying immediate market trends and pullbacks.
Image above: showcases Short-Term Xtrender
Xtrender T3: A smoothed version of the Xtrender that reduces noise and highlights significant trend changes.
Image above: showcases Xtrender T3 with Xtrender T3 color
2.TSI (True Strength Index):
TSI Value: Measures momentum by comparing price changes over two time periods, offering a clear view of trend strength.
TSI Signal Line: A smoothed version of the TSI value, used to generate buy and sell signals when crossed by the TSI.
Image: showcases TSI Value with TSI Signal Line
TSI Histogram: Shows the difference between the TSI and its signal line, highlighting potential reversals and trend continuations.
Image: showcases TSI Histogram
3.Color Coding and Visual Cues:
Trend Colors: The indicator uses dynamic colors to represent bullish or bearish conditions, making it easy to interpret market sentiment.
Background Color : The background changes color based on TSI signals, further aiding in visual trend analysis.
Image: showcases Background color and Zero line
How to Use
1.Xtrender Analysis:
Short-Term Xtrender: The short-term Xtrender is plotted as columns, changing color based on its direction and value. Green or lime indicates positive momentum, while red or maroon indicates negative momentum.
Xtrender T3: The Xtrender T3 line (black) represents a smoothed version of the short-term Xtrender, providing a clearer picture of the overall trend. The color of this line changes based on the Xtrender's value, helping you spot potential trend changes.
2.TSI (True Strength Index):
TSI Value and Signal Line: The TSI value is plotted as a line, with its color changing based on its relationship to the signal line. A crossover of the TSI above the signal line suggests a potential bullish move, while a crossover below indicates a bearish trend.
TSI Histogram: The histogram represents the difference between the TSI and its signal line. Positive values indicate bullish momentum, while negative values suggest bearish momentum.
3.Background Color:
The background color changes based on the TSI signal, with a greenish hue indicating bullish conditions and a reddish hue indicating bearish conditions. This provides a quick visual reference for market sentiment.
4.Zero Line:
A horizontal gray dotted line at the zero level helps you easily identify when the Xtrender or TSI crosses into positive or negative territory, signaling potential trend shifts.
Image above: Timeframe on daily with the individual elements combined
Example of Use:
•Trend Confirmation: Use the Xtrender and Xtrender T3 to confirm the direction of the trend. If both are aligned with the same color and direction, it increases the probability of a strong trend.
•Momentum Reversals: Watch for TSI crosses and histogram shifts to identify potential reversals. For example, a TSI crossover above its signal line with a corresponding change in the histogram from negative to positive could signal a buying opportunity.
•Pullbacks: Identify pullbacks within a trend by observing temporary shifts in the short-term Xtrender or TSI histogram. Use these signals to enter trades in the direction of the overall trend.
Image above: Showcases, Trend confirmation, reversal and pullbacks on daily timeframe.
Customization:
•TSI Speed: Choose between "Fast" and "Slow" TSI settings based on your trading style. Fast settings are more responsive to price changes, while slow settings offer smoother signals.
•Color Settings: Customize the colors for bullish, bearish, and neutral TSI conditions to match your personal preferences or chart theme.
This indicator is versatile and can be used for various trading strategies, from trend following to momentum trading, making it a valuable tool in any trader's arsenal.
My Scripts/Indicators/Ideas /Systems that I share are only for educational purposes
Fibonacci Levels for Recent CandlesThis Pine Script indicator calculates and plots 17 predefined Fibonacci retracement levels based on the high and low of a user-defined number of previous candles. The levels are drawn on the chart for the most recent candles, as specified by the user, allowing traders to see how these historical Fibonacci levels align with the current price action.
BX-Volume Trend and OscillatorBX-Volume Trend and Oscillator (VTO)
This is my second indicator. I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share this because I believe in learning and earing together as a community. I will later share the rest of the indicators I have created. If you guys have any questions or suggestions write them.
The BX-Volume Trend and Oscillator (VTO) is a comprehensive trading indicator designed to help traders identify trends, momentum shifts, and potential reversals by analyzing volume and price action through various metrics. This indicator combines relative volume analysis with custom Xtrender oscillators and moving averages to provide valuable insights into market behavior.
Image: BX-Volume Trend and Oscillator (VTO)
Features:
Relative Volume Analysis: Measures the current volume relative to the average volume over a specified period, helping traders understand if the current trading activity is unusually high or low.
Short-Term Xtrender Oscillator: This oscillator analyzes the difference between two short-term Exponential Moving Averages (EMAs) and smooths it with a custom RSI, highlighting short-term trends and potential reversal points.
Long-Term Xtrender Oscillator: Similar to the short-term oscillator but uses longer-term EMAs and RSI for identifying more sustained trends and shifts.
T3 Moving Average: A smoothed version of the Xtrender oscillator that helps in detecting trend changes more clearly.
Volume Trend Plot: Shows the smoothed relative volume to understand how trading activity aligns with the trend.
Visual Indicators: Uses colors and shapes to highlight significant changes and trends, such as circles to mark potential reversal points.
How to Use the Indicator
Analyze Relative Volume:
Relative Volume Plot: The smoothed relative volume is displayed in white, helping you assess if current trading volumes are above or below the historical average.
High Relative Volume: Indicates strong trading interest, which could support or contradict the prevailing trend.
Image above: is set to daily timeframe
Monitor Short-Term Xtrender Oscillator
Short-Term Xtrender: Plotted as a column histogram with colors changing from green to red based on the oscillator's movement and momentum. Green and lime colors indicate bullish trends, while maroon and red suggest bearish conditions.
Smoothed Short-Term Xtrender (T3): Plotted as a line that adjusts color based on the short-term Xtrender's trend. The line changes color to match the histogram's color, providing a clearer view of momentum shifts.
Reversal Markers: Small circles indicate potential short-term trend reversals, where changes in the T3 moving average suggest shifts in momentum.
Assess Long-Term Xtrender Oscillator:
Long-Term Xtrender: Plotted as a histogram, with color changes similar to the short-term Xtrender. It shows longer-term trends and shifts.
Color Indicators: Lime and green colors suggest an uptrend, while red and maroon indicate a downtrend.
Look for Zero Line Crossings:
The zero line serves as a reference point. Crossings above the zero line may indicate bullish trends, while crossings below may signal bearish trends.
Image above: is set to daily timeframe, and it showcases the Short-Term Xtrender (T3) applied.
Image above: is set to 8hr timeframe: Using the lower timeframe you can spot better details of pullbacks and potential reversals.
Example of Use:
Identify Trend and Momentum: Use the combination of the short-term and long-term Xtrender oscillators to gauge the prevailing market trend. For instance, if both oscillators are above zero and showing upward momentum, it suggests a strong bullish trend.
Spot Reversals: Observe the short-term Xtrender and its smoothed T3 version. If the T3 line changes direction and crosses through previous peaks and troughs, it could signal a potential reversal.
Volume Confirmation: Check the relative volume and its smoothed version to confirm the strength of price movements. Significant changes in volume can validate the trends indicated by the Xtrender oscillators.
By combining these elements, the BX-Volume Trend and Oscillator (VTO) provides a holistic view of market dynamics, helping traders make more informed decisions based on trend strength, potential reversals, and volume activity.
Lastly, my Scripts/Indicators/Ideas /Systems that I share are only for educational purposes!
Key Times & Opening Prices [Olitrades]This indicator plots key time's (opening prices) with the possibility of vertical separators. It was initially created to utilize on the indices futures market, utilizing ICT logic.
These opening prices are often utilized to determine if price is currently at a premium or a discounted value.
The default times include:
Daily Open (18:00 PM)
Midnight (00:00 AM)
Settlement (15:00 PM)
7:30 AM
8:30 AM
9:30 AM (Equities Open)
10:00 AM (Morning 4h Candle Open)
14:00 PM (Afternoon 4h Candle Open)
Along with up to three custom time slots.
All times used in the indicator are Eastern Standard time (New York local time) and will automatically adjust no matter your time zone.
Historical
When in historical mode, the indicator will keep the previous levels so you can easily visualize them and their relation to price.
You can also choose how many past levels you want to see. This allows you to back test only specific days/weeks.
Other Inputs
The indicator contains an adjustable offset, to modify how far the line extends depending on the current timeframe.
Each one of the above-mentioned levels can be turned on and off, including the custom times. You can also choose between plotting just the opening price, a vertical line separator, or both! All of these lines have adjustable styles (dotted, dashed or solid) and width.
They also have custom cut offs. You may choose specific cut off times for custom time slots (when to stop extending the lines), as well as for AM (before noon) default levels and PM (after noon) default levels.
The indicator also allows to show text labels next to these lines, which is set by default but can be turned off. Custom times also include custom text options.
Trend and RSI Bias FusionTrend and RSI Bias Fusion Indicator
This is my first ever indicator. I created this indicator for myself. I was inspired by the indicators created by Bjorgum, Duyck and QuantTherapy and decided to create multiple indicators that either work well combined with their indicators or something new that applies some of their indicator concepts. I decided to share this because I believe in learning and earing together as a community. I will later share the rest of the indicators I have created. This is my first time ever sharing any indicator so if you guys have any questions or suggestions write them.
Overview
The "Trend and RSI Bias Fusion" indicator is a versatile tool designed to help traders identify key market trends, potential reversals, momentum shifts, and RSI-based pullbacks. This indicator fuses trend analysis and RSI bias into a single, comprehensive visual, making it easier to make informed trading decisions across various timeframes and market conditions.
Features
Dual Timeframe Analysis: Combines trend analysis on a higher timeframe (e.g., Daily) with RSI analysis on a lower timeframe (e.g., 4-Hour), providing a more granular view of market conditions. You can, however, choose any timeframe you want for instance 12hr with trend and 2hr RSI analysis.
Trend and Momentum Visualization: The indicator uses Exponential Moving Averages (EMAs) to determine trend direction and colors the chart background to reflect bullish or bearish trends, along with momentum strength.
RSI Bias Detection: Automatically identifies overbought and oversold conditions using the RSI, providing a clear indication of potential market reversals or continuations.
Color-Coded Bars: Optionally color codes bars based on either trend direction or RSI bias, giving you a quick visual cue of the market's state.
Reversal Markers: Displays trend reversal markers on the chart when the short-term EMA crosses over or under the long-term EMA.
Calculation Details
Exponential Moving Averages (EMAs): The indicator calculates short-term and long-term EMAs using the closing prices.
The crossover between these EMAs is used to determine the trend direction:
Short-Term EMA: Typically a 14-period EMA.
Long-Term EMA: Typically a 50-period EMA.
Momentum: Calculated using the RSI and then centered around zero by subtracting 50. This allows the indicator to distinguish between positive and negative momentum.
RSI Bias: The RSI is calculated on a lower timeframe to detect overbought (above 60) and oversold (below 40) conditions, which are used to determine the bias:
RSI Above 60: Indicates potential overbought conditions (bearish bias).
RSI Below 40: Indicates potential oversold conditions (bullish bias).
How to Use the Indicator
Select Your Timeframes: Choose your preferred trend timeframe (e.g., Daily) and RSI timeframe (e.g., 4-2 Hour) in the indicator settings. These should match your trading strategy and the asset class you're analyzing.
Interpret Trend and Momentum
Background Color: The background color reflects the current trend direction:
Green/Lime: Uptrend, with lime indicating positive momentum.
Red/Maroon: Downtrend, with maroon indicating positive momentum within a downtrend.
Momentum Histogram: The histogram plot shows momentum, color-coded by the trend. A histogram above zero with green/lime indicates bullish momentum, while below zero with red/maroon indicates bearish momentum.
Image above: Both RSI and Trend are set to daily, uses RSI bar color
Read RSI Bias:
The RSI bias line helps identify the current market state relative to overbought or oversold levels. The RSI value is plotted on the chart, with lines at 60 and 40 to mark these levels.
When the RSI crosses above 60, it suggests a bearish bias; crossing below 40 suggests a bullish bias.
Use Reversal Markers: The indicator places small circles on the chart at points where the short-term EMA crosses the long-term EMA, signaling potential trend reversals.
Bar Color Customization:
You can choose to color the bars based on either the trend or the RSI bias in the indicator settings. In the Images below I have changed the colors to fit my personal style , Blue for uptrend and Pink for downtrend:
Trend-Based: Bars will reflect the trend direction (green for uptrend or in this case blue, red for downtrend or in this case pink).
RSI-Based: Bars will reflect RSI conditions (yellow for overbought, maroon for oversold).
Image above: RSI is set to 4hr and Trend is set to daily, uses RSI bar color
Image above: RSI is set to 4hr and Trend is set to daily, uses Trend bar color
Image above: Both RSI and Trend are set to daily, uses RSI bar color
Image above: Both RSI and Trend are set to daily, uses Trend bar color
Image above: Both RSI and Trend are set to daily, without bar color
Image above: Both RSI and Trend are set to daily, how it looks on a clean chart
Example Use Case Swing Traders:
For instance, if you're trading a 4-hour chart of USDCHF:
Set the trend timeframe to Daily and the RSI timeframe to 4-Hour.
Watch for background color shifts and reversal markers to determine trend direction.
Use RSI bias to time your entries and exits, especially around overbought/oversold levels.
Enable bar coloring to quickly see when conditions favor either trend continuation or reversal.
This indicator is particularly effective for swing traders and those who want to align their trades with higher timeframe trends while using momentum and RSI for entry and exit signals.
For Day Traders
Timeframe Selection:
Trend Timeframe: Set to a higher intraday timeframe such as the 1 or 2 Hour chart.
RSI Timeframe: Set to a shorter timeframe like 15-10 Minutes or 5-Minutes to capture finer details of intraday momentum shifts.
Using the Indicator:
Trend Identification: Day traders can use the background color to quickly identify whether the market is in a bullish or bearish trend on the 1-Hour chart. A green background suggests looking for long opportunities, while a red background suggests short opportunities.
Momentum Analysis: The histogram can help day traders gauge the strength of the current trend. For example, if the histogram is green and above zero, the trader may consider buying pullbacks within the trend.
RSI Bias: Monitor RSI levels on the lower timeframe (e.g., 15-Minutes). If the RSI crosses below 40, it indicates an oversold condition, potentially signaling a buying opportunity, especially if it aligns with a bullish trend on the higher timeframe.
Trade Execution:
Look for entries when the RSI shows a reversal or pullback in the direction of the higher timeframe trend.
Use the trend reversal markers to confirm potential intraday reversals, adding extra confidence to trade setups.
For Scalpers
Timeframe Selection:
Trend Timeframe: Set to a short intraday timeframe like 15-Minutes or 5-Minutes.
RSI Timeframe: Use an even shorter timeframe, such as 1-Minute, to capture rapid price movements.
Final Notes:
The "Trend and RSI Bias Fusion" indicator is a powerful tool that combines trend analysis, momentum assessment, and RSI insights into one cohesive package. By integrating these different aspects, the indicator helps traders navigate complex market environments with greater clarity and confidence. Customize the settings to fit your specific trading style and market and use it to stay ahead of market trends and potential reversals.
My Scripts/Indicators/Ideas /Systems that I share are only for educational purposes!
VWAP with Trend Alerts [CrossTrade]The VWAP with Trend Alerts indicator is designed to provide a comprehensive visual and analytical tool for traders using the Volume Weighted Average Price (VWAP) along with additional features like custom bar coloring and trend-based signal alerts.
Key Components and Functionalities:
1. VWAP Calculation: The core of this indicator is the VWAP, which represents the average price of an asset, weighted by volume. It's a popular tool among traders to identify the general direction and strength of a trend, and for assessing entry and exit points.
2. Standard Deviation Bands: Surrounding the VWAP are multiple bands calculated based on standard deviation values. These bands serve as dynamic support and resistance levels. The script allows up to three bands, each with customizable multipliers, giving insights into price volatility and potential breakout or reversal points.
3. Bar Coloring Options:
- Color All Bars: When enabled, all bars on the chart are colored based on whether they close above (green) or below (red) the VWAP.
- Trend Bars Only: This option, when selected, colors only the bars that close beyond the second standard deviation band. It helps in identifying stronger trends and significant market movements.
4. Buy and Sell Signal Conditions: The script includes conditions for buy and sell signals specifically tailored for trend bars. A buy signal is generated when a bar closes above both the VWAP and the upper second standard deviation band, indicating a potential strong uptrend. Conversely, a sell signal is triggered when a bar closes below both the VWAP and the lower second standard deviation band, suggesting a strong downtrend.
5. Alert Conditions: To aid in timely decision-making, the script features alert conditions corresponding to the buy and sell signals.
Usage and Application:
- For Trend Identification: The VWAP and its bands can help identify the prevailing market trend. Bars closing consistently above the VWAP suggest an uptrend, while those closing below indicate a downtrend.
- Volatility Assessment: The standard deviation bands provide a visual representation of market volatility. Narrower bands suggest low volatility, while wider bands indicate high volatility.
- Signal Alerts for Trading: The buy and sell signals, especially those filtered by the trend bars condition, can be valuable for traders looking for strong movement confirmations.
Flexibility and Customization:
This indicator is highly customizable and builds off of the core logic found in standard VWAP indicators. By allowing traders to adjust the standard deviation multipliers and choose their preferred bar coloring strategy. It caters to various trading styles, whether focusing on the broader market trend or pinpointing significant trend-based movements.
Arithmetic Candlesticks (Zeiierman)█ Arithmetic Candlestick - Overview
Arithmetic Candlesticks (Zeiierman) introduce a new way to read charts by applying logical arithmetic to real price data. These candlesticks focus on filtering out noise and smoothing price movements using a bell-shaped curve, which helps to refine the data and highlight the true trend. This approach provides a clearer view of market trends, allowing traders to interpret price action more effectively with minimal lag and distraction.
⚪ What is Arithmetic Candlesticks
Arithmetic Candlesticks use a calculation method rooted in the idea that the market moves in patterns that can be identified and predicted by examining past price movements.
Analyzing momentum, price action, and trend patterns is useful for traders who want to quickly scan and identify price patterns, trends, and momentum in the market. The system searches for these patterns and trends to anticipate future price movements. Traders and investors can identify trends hidden in market noise, enabling them to uncover trading opportunities that might not be immediately obvious to the naked eye.
⚪ Eliminates price noise
The Arithmetic Candlestick noise filtering function is used to reduce price noise, which is the randomness in the price movement of an asset caused by market participants trading on a short-term basis. The idea behind the filter is that it eliminates the impact of short-term fluctuations in the price, thus providing a more accurate picture of the overall trend.
█ Capturing Trends with precise chart reading
Trend moves are some of the biggest moneymakers in trading; in fact, trading in the direction of the trend reduces risk and increases profit potential. Arithmetic Candlestick helps traders do just that.
In a fast-moving and volatile market characterized by high-frequency algorithms, retail traders have a hard time distinguishing the real trend from the noise. Arithmetic Candlesticks are designed to filter out the noise created by insignificant price moves and leave traders with the price action that matters, namely a clear and insightful chart reading. Due to its sophisticated mathematical calculations, Arithmetic Candlesticks are able to analyze any market and timeframe.
█ How to use Arithmetic Candlesticks
Arithmetic Candlesticks is an all-in-one trend and momentum tool that can be used stand-alone or in conjunction with other indicators. Its primary use is to provide a clear chart reading, easily identify trends, and help traders stay longer in trends.
The indicator includes excellent momentum features that offer insights into the current momentum and the strength of the price action. This provides traders with a unique chart experience that yields valuable insights. The indicator boasts numerous features, each of which can be used stand-alone or in combination with others. Read more about the features below.
These candles can be used in conjunction with other indicators such as support/resistance, trendlines, ICT trading, and other patterns.
█ Arithmetic Candlesticks features
The indicator comes with tons of great features that make the indicator into its own system that can be used stand-alone. You find everything from trend reading, entry/exit points, identifying momentum, and auto-stop loss.
⚪ Candle Modes:
Traders can select from three different types of arithmetic candle calculations and enable our volatility-adjusted filter for all of them. By default, the candles are set to Arithmetic candlesticks. However, depending on their trading preferences, users can select Arithmetic + Heikin Ashi Candles or Impulse + Wicks Candles.
The Heikin Ashi mode of the candlesticks makes the indicator smoother and more trend-friendly.
The Impulse + Wick mode of the candlesticks makes the indicator responsive to momentum. The length of the wicks represents the strength of the current momentum. The longer the wicks, the greater the momentum in the market.
If traders enable the Volatility Adjusted candles , the indicator becomes much more responsive to volatility moves, which is a way of making the candlesticks more responsive to significant price movements.
⚪ Trend coloring
Arithmetic candlesticks come in three different color modes: the default one, the gradient one, and the advanced trend coloring. Enable the Trend coloring if you want to engage in long-term trend trading. This filter does not change the arithmetic candlesticks, only the bar coloring.
⚪ Buy and Sell signals
To make trend trading easier to understand, we have included Buy/Sell signals. These signals are based both on the type of candlesticks selected and the type of coloring used. In addition, they come with three filters and are available in scalping and trend modes.
Candle Color Filter: A buy signal will only occur if the candlesticks are bullish, and a sell signal will only occur if the candlesticks are bearish.
Trend Tracker Filter: A buy signal will only occur if the Trend Tracker is bullish, and a sell signal will only occur if the Trend Tracker is bearish.
When both filters are applied, it means that both the candle color and the Trend Tracker should have the same sign in order to trigger a signal.
These filters are very effective and should be used when utilizing the signals.
Take Profit signals can be enabled to help traders know when to take profits.
Adaptive Stop Loss can be enabled for the signals, helping traders manage their risk.
⚪ Trend Tracker
The Trend Tracker line provides insights about the underlying trend. Adjust it if you want to engage in scalping, which makes the line much more responsive. Set the underlying speed of the trend to either Fast or Slow. This Trend Tracker works well in conjunction with Arithmetic Candlesticks and the associated signals.
⚪ Trend Sentiment
Enable Trend Sentiment to identify the levels at which the market is considered bullish or bearish. This feature helps you gauge the overall market direction, allowing you to align your trades with the prevailing trend. The Trend Sentiment also measures the strength of the trend, highlighting whether the current price action reflects a strong or weak trend. Adjust the sensitivity to determine how early or late you want to capture these trend signals.
⚪ Impulse
Enable Impulse Signals to understand when the market is making a significant move, often leading to a pullback or pause. These Impulse Signals can indicate the very start of a trend or serve as the first sign of a reversal. Enable 'Significant Impulses' if you only want to display the most significant market impulses.
█ How is Arithmetic Candlesticks Calculated?
⚪ Candlesticks
These candlesticks combine advanced smoothing techniques with price pattern recognition, giving traders a clearer view of market dynamics.
Adaptive Smoothing: The core of this smoothing approach is its ability to adjust dynamically based on market conditions. It reduces lag while staying responsive to price changes. This adaptive nature allows the candlesticks to follow the price action smoothly, minimizing the influence of short-term fluctuations. As a result, the trend is depicted with greater accuracy, helping traders to stay in tune with the market’s true direction.
Refined Smoothing with Weighted Averages: Another key component of the smoothing process involves applying a refined technique that uses a bell-shaped curve to weight price data. This method reduces the impact of outlier movements, resulting in a smoother, more continuous curve that accurately represents the market's central trend. This ensures that the candlesticks reflect a more balanced view of price action, focusing on the significant movements while filtering out unnecessary noise.
⚪ Trend Coloring
The Trend Coloring feature offers a powerful visualization tool that helps traders quickly identify the prevailing market trend and its strength. By analyzing market structure and the velocity of price movements, this feature provides a clear, dynamic view of the long-term trend direction.
Market Structure Analysis: The Trend Coloring is rooted in a thorough analysis of market structure, focusing on key price levels over time. By evaluating these levels, the system determines whether the market is in an uptrend, downtrend, or ranging phase. This information is then used to color the chart according to the current trend direction, providing a visual cue that makes it easier to align your trades with the broader market movement.
Velocity of Price Movements: . In addition to identifying the trend direction, the system also calculates the velocity of price movements. This involves assessing how quickly or slowly prices are advancing in a particular direction, offering deeper insight into the trend's strength and momentum. Faster price movements suggest a stronger trend, while slower movements may indicate a weakening or consolidating market. This dynamic approach ensures that the Trend Coloring not only highlights the trend but also reflects its intensity and potential sustainability.
⚪ Buy and Sell signals
The Buy/Sell signals are generated using a sophisticated approach that tracks key price action levels to determine market direction and momentum. This method constantly evaluates the relationship between the current price and dynamically adjusting levels that reflect the underlying market conditions. By staying in tune with the flow of the market, this approach effectively captures the onset of new trends while reducing the lag typically associated with traditional indicators.
Dynamic Price Action Levels: The signals are based on critical price action levels that adapt in real-time to market movements. These levels serve as flexible thresholds that help identify potential buy or sell opportunities. When the price interacts with these levels, it triggers signals that indicate possible entry or exit points, aligning your trades with the prevailing market direction.
Price Patterns: The algorithm also recognizes and integrates specific price patterns that are often precursors to significant market moves. By identifying these patterns, the system can anticipate changes in market direction more accurately, enabling earlier and more precise signals. This helps in capturing trend reversals or continuations effectively.
Momentum-Driven Adjustments: The system's price action levels are not static; they adjust dynamically in response to strong price movements. This ensures that the signals are not only timely but also in sync with the underlying market momentum, making the system highly effective in volatile conditions where quick decision-making is crucial.
⚪ Trend Tracker
The Trend Tracker utilizes the core principles of Arithmetic Candlesticks, including their sophisticated smoothing techniques and pattern recognition capabilities. By leveraging these features, the Trend Tracker effectively filters out market noise, allowing it to present a smooth and accurate representation of the current trend. This makes it easier to identify whether the market is trending upwards, downwards, or entering a period of consolidation.
Adaptive to Market Conditions: The Trend Tracker is not static; it dynamically adjusts as market conditions change. Whether the market is experiencing high volatility or moving through a quieter phase, the Trend Tracker remains responsive, continuously updating to reflect the most recent price action. This ensures that traders are always working with the most relevant information, making it easier to stay in sync with the market's true direction.
⚪ Trend Sentiment
Trend Sentiment analyzes key price levels and market structure to determine whether the current market sentiment is bullish or bearish. By examining the direction and momentum of price movements, it provides a straightforward view of the market's overall trend direction.
⚪ Impulse
Impulse monitors the market for sudden shifts in momentum, recognizing when the price is making a strong move that could lead to a trend continuation or a reversal. The feature is tuned to distinguish between regular market fluctuations and significant impulses. It focuses on the most meaningful price movements, ensuring that the signals you receive are relevant and actionable.
█ Important Note
Caution! Arithmetic candlesticks do not always reflect the actual price. Arithmetic uses smoothing and noise filtering to capture trends; hence, it might deviate from the actual close.
It's important to understand that Arithmetic Candlesticks are intended to provide a clearer picture of trend direction rather than exact price levels. Therefore, they should not be used as a substitute for actual market prices, especially in scenarios like backtesting or precise trade execution where exact price data is crucial. Instead, use Arithmetic Candlesticks as a tool for understanding trends and overall market direction, while relying on actual price data for decisions that require precise price points.
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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!
Uptrick: SMA Pivot Marker### Uptrick: SMA Pivot Marker (SPM) — Extensive Guide
#### Introduction
The **Uptrick: SMA Pivot Marker (SPM)** is a sophisticated technical analysis tool crafted by Uptrick to help traders interpret market trends and identify key price levels where significant reversals might occur. By integrating the principles of the Simple Moving Average (SMA) with pivot point analysis, the SPM offers a comprehensive approach to understanding market dynamics. This extensive guide explores the purpose, functionality, and practical applications of the SPM, providing an in-depth analysis of its features, settings, and usage across various trading strategies.
#### Purpose of the SPM
The **SMA Pivot Marker (SPM)** aims to enhance trading strategies by offering a dual approach to market analysis:
1. **Trend Identification**:
- **Objective**: To discern the prevailing market direction and guide trading decisions based on the overall trend.
- **Method**: Utilizes the SMA to smooth out price fluctuations, providing a clearer picture of the trend. This helps traders align their trades with the market's direction, increasing the probability of successful trades.
2. **Pivot Point Detection**:
- **Objective**: To identify key levels where the price is likely to reverse, providing potential support and resistance zones.
- **Method**: Calculates and marks pivot highs and lows, which are significant price points where previous trends have reversed. These levels are used to predict future price movements and establish trading strategies.
3. **Trend Change Alerts**:
- **Objective**: To notify traders of potential shifts in market direction, enabling timely adjustments to trading positions.
- **Method**: Detects and highlights crossover and crossunder points of the smoothed line, indicating possible trend changes. This helps traders react promptly to changing market conditions.
#### Detailed Functionality
1. **Smoothing Line Calculation**:
- **Simple Moving Average (SMA)**:
- **Definition**: The SMA is a type of moving average that calculates the average of a security’s price over a specified number of periods. It smooths out price data to filter out short-term fluctuations and highlight the longer-term trend.
- **Calculation**: The SMA is computed by summing the closing prices of the chosen number of periods and then dividing by the number of periods. For example, a 20-period SMA adds the closing prices for the past 20 periods and divides by 20.
- **Purpose**: The SMA helps in identifying the direction of the trend. A rising SMA indicates an uptrend, while a falling SMA indicates a downtrend. This smoothing helps traders to avoid being misled by short-term price noise.
2. **Pivot Points Calculation**:
- **Pivot Highs and Lows**:
- **Definition**: Pivot points are significant price levels where a market trend is likely to reverse. A pivot high is the highest price over a certain period, surrounded by lower prices on both sides, while a pivot low is the lowest price surrounded by higher prices.
- **Calculation**: The SPM calculates pivot points based on a user-defined lookback period. For instance, if the lookback period is set to 3, the indicator will find the highest and lowest prices within the past 3 periods and mark these points.
- **Purpose**: Pivot points are used to identify potential support and resistance levels. Traders often use these levels to set entry and exit points, stop-loss orders, and to gauge market sentiment.
3. **Visualization**:
- **Smoothed Line Plot**:
- **Description**: The smoothed line, calculated using the SMA, is plotted on the chart to provide a visual representation of the trend. This line adjusts its color based on the trend direction, helping traders quickly assess the market condition.
- **Color Coding**: The smoothed line is colored green (upColor) when it is rising, indicating a bullish trend, and red (downColor) when it is falling, indicating a bearish trend. This color-coding helps traders visually differentiate between uptrends and downtrends.
- **Line Width**: The width of the line can be adjusted to improve visibility. A thicker line may be more noticeable, while a thinner line might provide a cleaner look on the chart.
- **Pivot Markers**:
- **Description**: Pivot highs and lows are marked on the chart with lines and labels. These markers help in visually identifying significant price levels.
- **Color and Labels**: Pivot highs are represented with green lines and labels ("H"), while pivot lows are marked with red lines and labels ("L"). This color scheme and labeling make it easy to distinguish between resistance (highs) and support (lows).
4. **Trend Change Detection**:
- **Trend Up**:
- **Detection**: The indicator identifies an upward trend change when the smoothed line crosses above its previous value. This crossover suggests a potential shift from a downtrend to an uptrend.
- **Usage**: Traders can interpret this signal as a potential buying opportunity or an indication to review and possibly adjust their trading positions to align with the new uptrend.
- **Trend Down**:
- **Detection**: A downward trend change is detected when the smoothed line crosses below its previous value. This crossunder indicates a potential shift from an uptrend to a downtrend.
- **Usage**: This signal can be used to consider selling opportunities or to reassess long positions in light of the emerging downtrend.
#### User Inputs
1. **Smoothing Period**:
- **Description**: This input determines the number of periods over which the SMA is calculated. It directly affects the smoothness of the line and the sensitivity of trend detection.
- **Range**: The smoothing period can be set to any integer value greater than or equal to 1. There is no specified upper limit, offering flexibility for various trading styles.
- **Default Value**: The default smoothing period is 20, which is a common choice for medium-term trend analysis.
- **Impact**: A longer smoothing period results in a smoother line, filtering out more noise and highlighting long-term trends. A shorter period makes the line more responsive to recent price changes, which can be useful for short-term trading strategies.
2. **Pivot Lookback**:
- **Description**: This input specifies the number of periods used to calculate the pivot highs and lows. It influences the sensitivity of pivot point detection and the relevance of the identified levels.
- **Range**: The pivot lookback period can be set to any integer value greater than or equal to 1, with no upper limit. Traders can adjust this parameter based on their trading timeframe and preferences.
- **Default Value**: The default lookback period is 3, which provides a balance between detecting significant pivots and avoiding excessive noise.
- **Impact**: A longer lookback period generates more stable pivot points, suitable for identifying long-term support and resistance levels. A shorter lookback period results in more frequent and recent pivot points, useful for intraday trading and quick responses to price changes.
#### Applications for Different Traders
1. **Trend Followers**:
- **Using the SMA**: Trend followers utilize the smoothed line to gauge the direction of the market. By aligning trades with the direction of the SMA, traders can capitalize on sustained trends and improve their chances of success.
- **Trend Change Alerts**: The trend change markers alert trend followers to potential shifts in market direction. These alerts help traders make timely decisions to enter or exit positions, ensuring they stay aligned with the prevailing trend.
2. **Reversal Traders**:
- **Pivot Points**: Reversal traders focus on pivot highs and lows to identify potential reversal points in the market. These points indicate where the market has previously reversed direction, providing potential entry and exit levels for trades.
- **Pivot Markers**: The visual markers for pivot highs and lows serve as clear signals for reversal traders. By monitoring these levels, traders can anticipate price reversals and plan their trades to exploit these opportunities.
3. **Swing Traders**:
- **Combining SMA and Pivot Points**: Swing traders can use the combination of the smoothed line and pivot points to identify medium-term trading opportunities. The smoothed line helps in understanding the broader trend, while pivot points provide specific levels for potential swings.
- **Trend Change Alerts**: Trend change markers help swing traders spot new swing opportunities as the market shifts direction. These markers provide potential entry points for swing trades and help traders adjust their strategies to capitalize on market movements.
4. **Scalpers**:
- **Short-Term Analysis**: Scalpers benefit from the short-term signals provided by the SPM. The smoothed line and pivot points offer insights into rapid price movements, while the trend change markers highlight quick trading opportunities.
- **Pivot Points**: For scalpers, pivot points are particularly useful in identifying key levels where price may reverse within a short time frame. By focusing on these levels, scalpers can plan trades with tight stop-loss orders and capitalize on quick price changes.
#### Implementation and Best Practices
1. **Setting Parameters**:
- **Smoothing Period**: Adjust the smoothing period according to your trading strategy and market conditions. For long-term analysis, use a longer period to filter out noise and highlight broader trends. For short-term trading, a shorter period provides more immediate insights into price movements.
- **Pivot Lookback**: Choose a lookback period that matches your trading timeframe. For intraday trading, a shorter lookback period offers quick identification of recent price levels. For swing trading or long-term strategies, a longer lookback period provides more stable pivot points.
2. **Combining with Other Indicators**:
- **Integration with Technical Tools**: The SPM can be used in conjunction with other technical indicators to enhance trading decisions. For instance, combining the
SPM with indicators like RSI (Relative Strength Index) or MACD (Moving Average Convergence Divergence) can provide additional confirmation for trend signals and pivot points.
- **Support and Resistance**: Integrate the SPM’s pivot points with other support and resistance levels to gain a comprehensive view of market conditions. This combined approach helps in identifying stronger levels of support and resistance, improving trade accuracy.
3. **Backtesting**:
- **Historical Performance**: Conduct backtesting with historical data to evaluate the effectiveness of the SPM. Analyze past performance to fine-tune the smoothing period and pivot lookback settings, ensuring they align with your trading style and market conditions.
- **Scenario Analysis**: Test the SPM under various market scenarios to understand its performance in different conditions. This analysis helps in assessing the reliability of the indicator and making necessary adjustments for diverse market environments.
4. **Customization**:
- **Visual Adjustments**: Customize the appearance of the smoothed line and pivot markers to enhance chart readability and match personal preferences. Clear visual representation of these elements improves the effectiveness of the indicator.
- **Alert Configuration**: Set up alerts for trend changes to receive timely notifications. Alerts help traders act quickly on potential market shifts without constant monitoring, allowing for more efficient trading decisions.
#### Conclusion
The **Uptrick: SMA Pivot Marker (SPM)** is a versatile and powerful technical analysis tool that combines the benefits of the Simple Moving Average with pivot point analysis. By providing insights into market trends, identifying key reversal points, and detecting trend changes, the SPM caters to a wide range of trading strategies, including trend following, reversal trading, swing trading, and scalping.
With its customizable inputs, visual markers, and trend change alerts, the SPM offers traders the flexibility to adapt the indicator to different market conditions and trading styles. Whether used independently or in conjunction with other technical tools, the SPM is designed to enhance trading decision-making and improve overall trading performance. By mastering the use of the SPM, traders can gain a valuable edge in navigating the complexities of financial markets and making more informed trading decisions.
Trend Signals with TP & SL [UAlgo] StrategyThe "Trend Signals with TP & SL Strategy" is a trading strategy designed to capture trend continuation signals while incorporating sophisticated risk management techniques. This strategy is tailored for traders who wish to capitalize on trending market conditions with precise entry and exit points, automatically calculating Take Profit (TP) and Stop Loss (SL) levels based on either Average True Range (ATR) or percentage values. The strategy aims to enhance trade management by preventing multiple simultaneous positions and dynamically adapting to changing market conditions.
This strategy is highly configurable, allowing traders to adjust sensitivity, the ATR calculation method, and the cloud moving average length. Additionally, the strategy can display buy and sell signals directly on the chart, along with visual representation of entry points, stop losses, and take profits. It also features a cloud-based trend analysis using a MACD-driven color fill that indicates the strength and direction of the trend.
🔶 Key Features
Configurable Trend Continuation Signals:
Source Selection: The strategy uses the midpoint of the high-low range as the default source, but it is adjustable.
Sensitivity: The sensitivity of the trend signals can be adjusted using a multiplier, ranging from 0.5 to 5.
ATR Calculation: The strategy allows users to choose between two ATR calculation methods for better adaptability to different market conditions.
Cloud Moving Average: Traders can adjust the cloud moving average length, which is used in conjunction with MACD to provide a visual trend indication.
Take Profit & Stop Loss Management:
ATR-Based or Percent-Based: The strategy offers flexibility in setting TP and SL levels, allowing traders to choose between ATR-based multipliers or fixed percentage values.
Dynamic Adjustment: TP and SL levels are dynamically adjusted according to the selected method, ensuring trades are managed based on real-time market conditions.
Prevention of Multiple Positions:
Single Position Control: To reduce risk and enhance strategy reliability, the strategy includes an option to prevent multiple positions from being opened simultaneously.
Visual Trade Indicators:
Buy/Sell Signals: Clearly displays buy and sell signals on the chart for easy interpretation.
Entry, SL, and TP Lines: Draws lines for entry price, stop loss, and take profit directly on the chart, helping traders to monitor trades visually.
Trend Cloud: A color-filled cloud based on MACD and the cloud moving average provides a visual cue of the trend’s direction and strength.
Performance Summary Table:
In-Chart Statistics: A table in the top right of the chart displays key performance metrics, including total trades, wins, losses, and win rate percentage, offering a quick overview of the strategy’s effectiveness.
🔶 Interpreting the Indicator
Trend Signals: The strategy identifies trend continuation signals based on price action relative to an ATR-based threshold. A buy signal is generated when the price crosses above a key level, indicating an uptrend. Conversely, a sell signal occurs when the price crosses below a level, signaling a downtrend.
Cloud Visualization: The cloud, derived from MACD and moving averages, changes color to reflect the current trend. A positive cloud in aqua suggests an uptrend, while a red cloud indicates a downtrend. The transparency of the cloud offers further nuance, with more solid colors denoting stronger trends.
Entry and Exit Management: Once a trend signal is generated, the strategy automatically sets TP and SL levels based on your chosen method (ATR or percentage). The stop loss and take profit lines will appear on the chart, showing where the strategy will exit the trade. If the price reaches either the SL or TP, the trade is closed, and the respective line is deleted from the chart.
Performance Metrics: The strategy’s performance is tracked in real-time with an in-chart table. This table provides essential information about the number of trades executed, the win/loss ratio, and the overall win rate. This information helps traders assess the strategy's effectiveness and make necessary adjustments.
This strategy is designed for those who seek to engage with trending markets, offering robust tools for entry, exit, and overall trade management. By understanding and leveraging these features, traders can potentially improve their trading outcomes and risk management.
🔷 Related Script
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Change in State of Delivery (CISD) [LuxAlgo]The Change In State Of Delivery (CISD) indicator detects and displays Change in State Of Delivery, a concept related to market structures.
Users can choose between two different CISD detection methods. Various filtering options are also included to filter out less significant CISDs.
🔶 USAGE
A Change in State of Delivery (CISD) is a concept closely related to market structures, where price breaks a level of interest, confirming trends and their continuations from the resulting breakouts.
Unlike more traditional market structures which rely on swing points, CISDs rely on a persistent sequence of candles, using the sequence extremes as breakout levels.
CISDs are detected as follows:
Bullish: The price closes above the opening price of the first candle in a sequence of bearish candles (or its own opening price if it's the only candle).
Bearish: The price closes below the opening price of the first candle in a sequence of bullish candles (or its own opening price if it's the only candle).
If a newly detected CISD aligns with the indicator's current established trend, this confirms a trend continuation (represented with a dashed line).
On the other hand, if a newly detected CISD is in the opposite direction to the detected trend it can confirm a trend reversal (represented with a solid line).
🔹 Liquidity Sweep Detection Method
Using Liquidity Sweeps to update CISD breakout levels allows us to obtain less frequent and more relevant levels that are less sensitive to noisy price variations.
Sweeps are obtained from detected Swing Points , with a higher Swing Length allowing us to obtain longer-term swing levels and potentially more detected sweeps from a specific level over time.
Note: The 'Swing Length' setting is only applicable on the Liquidity Sweep Detection Method and will only change the Liquidity levels.
A Liquidity Sweep is valid when the price reaches an important liquidity level , after which the price closes below/above this level.
Bullish scenario: The price goes below a previous unbroken Swing Low but closes above.
Bearish scenario: The price goes above a previous unbroken Swing High but closes below.
After a Liquidity Sweep has been detected, the last level of importance acts as support/resistance . Breaking this level in the other direction changes the state of delivery .
Users must keep observing the price and significant levels, as highlighted by the white rectangle in the above example.
🔹 CISD Filtering
Users can adjust the following two settings:
Minimum CISD Duration: The minimum length of the 'CISD' line
Maximum Swing Validity: The maximum length of the 'CISD' line; potential CISD lines that aren't broken are deleted when exceeding the limit.
The chart can get cluttered when the Minimum CISD Duration is low. Users could focus on a switch in trend (first solid line CISD ), where the following dashed CISD lines can be seen as extra opportunities/confirmations.
🔶 DETAIL
🔹 Using Different Timeframes
When an important liquidity level (Previous Swing high/low, FVG, etc.) is reached on the higher timeframe, the user can move to a lower timeframe to check whether there is a CISD .
Above example:
The high of the last candle breaches a liquidity level (previous Swing High). The opening price of the last candle acts as a trigger/confirmation level.
A confirmed CISD is seen in a lower timeframe, just after this Liquidity Sweep. This could be an early opportunity.
Later, a confirmed CISD on the higher timeframe is established.
🔶 SETTINGS
Detection Method: Classic or Liquidity Sweep
Swing Length: Period used for the swing detection, with higher values returning longer-term Swing Levels.
Minimum CISD Duration: The minimum length of the CISD line
Maximum Swing Validity: The maximum length of the CISD line; potential CISD lines that aren't broken are deleted when exceeding the limit.
ICT 9:30am First FVGThis indicator is designed based on ICT (Inner Circle Trader)'s algorithmic price action theory, specifically targeting the first fair value gap (FVG) that forms immediately after the New York Stock Exchange opens at 9:30am. The FVG represents an imbalance in the price delivery where a significant price action gap occurs, which can play a crucial role in future price movements.
Features:
Identification of First FVG: Automatically identifies and plots the first fair value gap that forms post the 9:30am NY open.
Customizable Visualization: Choose between block or line styles for visual representation, with customizable colors and border styles.
Date Labeling: Optionally displays date labels for each identified gap to track patterns over time.
Imbalance Extension: Options to extend the imbalances to the current bar, helping to visualize their influence on ongoing price action.
Purpose:
The first fair value gap formed after the market opens is an important algorithmic price range in ICT's price action theory. This indicator simplifies the identification of these critical gaps and helps in understanding their impact on future price action.
Fixed Range FootprintFixed Range Footprint allows you to analyze the Footprint over a specified time period. By enabling the "Extend Right" option, the Footprint transforms into a classic mode, extending from the starting point to the most recent bar in real-time.
Input Options:
Group: Coordinates
"Start range": Defines the starting coordinate for the Footprint period.
"End range": Defines the ending coordinate for the Footprint period.
Group: Row Size
"Ticks Per Row": Directly sets the price step, calculated by multiplying the input value by syminfo.mintick.
"Auto": Activates automatic mode for selecting the "Ticks Per Row" value.
"Max row": Relevant in auto mode; it limits the number of rows within a bar. The automatic calculation for "Ticks Per Row" is based on the first available bar and applied to subsequent bars.
Group: Imbalance
"Imbalance Percent": Sets a percentage-based coefficient to determine price level Imbalance by comparing the diagonal buy price to the previous sell price.
"Stacked levels": Defines the minimum number of consecutive Imbalance levels required to draw extended lines.
Group: Support
"Show Footprint Info": Toggles the display of Footprint information.
Group: Value Area
"Value Area": Sets the percentage for the Value Area.
"POC": Toggles the Point of Control (POC).
"VAH": Toggles the Value Area High (VAH).
"VAL": Toggles the Value Area Low (VAL).
"Show Volume Profile": Displays buy/sell volume at each level.
Group: Alerts
"Alert on New Imbalance": Enables alerts for the creation of new Imbalance levels.
"Alert on New Imbalance Line": Enables alerts for the creation of new Imbalance lines.
"Alert on Stop Past Imbalance Line": Enables alerts when price stops past an Imbalance line.
Kenji 2.0KenJi 2.0
Class : average analysis/trend following
Trading type : any
Time frame : any
Purpose : work in trend
Level of aggressiveness : any
About Kenji
The Kenji 2.0 indicator represents a fresh perspective on average analysis. Traditional trading strategies and indicators reliant on average analysis often generate a lot of false signals, particularly in flat market conditions characterized by frequent average crossovers and directional changes. Consequently, their efficacy and potency are compromised.
The "Kenji" Indicator overcomes these limitations through a unique algorithm (based on combination of correlation analysis and moving average analysis) designed to circumvent common pitfalls associated with average analysis. By accurately identifying the current market state—indicated by color (red for a downward trend, blue for an uptrend, and green for a flat market)—the Kenji indicator enhances signal quality, enabling traders to navigate local trends comfortably.
This indicator not only generates signals for entering positions at optimal times but also provides guidance on profit-taking. Additionally, it assists in assessing signal aggressiveness, making it a valuable tool for both novice and experienced traders.
Rules of Trading
The rules of trading with the indicator are very simple: when the price enters the buy/sell zone (depicted by a blue/red colored area between the fast and slow averages), a signal to enter a position is generated. This position remains valid until either the market state changes (e.g., a shift from a downtrend to a flat or an uptrend) or a signal to close it appears (indicated by a blue/red cross, signaling a significant divergence between the price and average values).
Structure of the Indicator
The indicator comprises colored zones and level lines:
- Colored zones (marked blue, red, or green) are utilized for identifying trading opportunities and detecting entry points.
- Level lines (marked red and blue depending on the current price direction) are employed to identify whether the current price direction is upward or downward.
To streamline the trading process, the indicator displays "buy" and "sell" signals on the chart.
These signals are categorized into two groups: standard (trading with the basic lot size) and aggressive (trading with double the basic lot size). Additionally, take-profit zones are visualized on the chart using blue/red x-crosses. Red x-crosses indicate zones where profits on "sell" positions should be taken, while blue x-crosses indicate zones where profits on "buy" positions should be taken.
Input Parameters of the Indicator
The indicator utilizes several input parameters for configuration:
Slow Average Period: This parameter determines the period of the slow average. A larger period results in a more conservative response of the average to price changes.
Fast Average Period: This parameter determines the period of the fast average. Similar to the slow average period, a larger period leads to a more conservative response of the average to price changes.
Correlation Period: This parameter is utilized in correlation analysis to calculate the level of interconnection between the averages.
Stop Sensitivity: This parameter determines the take-profit zones displayed on the chart in the form of red/blue x-crosses. A higher parameter value corresponds to a larger take-profit value.
Version 2.0 updates:
Alerts and Notifications are added ("sell" and "buy" signals are sent as Alerts and Notifications).
Improved vizualisation
Improved algorithm (mechanics of stop-loss marks in modified)
Access to the indicator
Please address all questions about this indicator (including access to it) in private messages.
