Pure Price Action Order & Breaker Blocks [LuxAlgo]The Pure Price Action Order & Breaker Blocks indicator is a pure price action adaptation of our previously published and highly popular Order-Blocks-Breaker-Blocks script.
Similar to its earlier version, this indicator detects order blocks that can automatically turn into breaker blocks on the chart once mitigated. However, the key difference/uniqueness is that the pure price action version relies solely on price patterns, eliminating the need for length definitions. In other words, it removes the limitation of user-defined inputs, ensuring a robust and objective analysis of market dynamics.
🔶 USAGE
An order block is a significant area on a price chart where there was a notable accumulation or distribution of orders, often identified by a strong price move followed by consolidation. Traders use order blocks to identify potential support or resistance levels.
A mitigated order block refers to an order block that has been invalidated due to subsequent market movements. It may no longer hold the same significance in the current market context. However, when the price mitigates an order block, a breaker block is confirmed. It is possible that the price might trade back to this breaker block, potentially offering a new trading opportunity.
Users can optionally enable the "Historical Polarity Changes" labels within the settings menu to see where breaker blocks might have previously provided effective trade setups.
This feature is most effective when using replay mode. Please note that these labels are subject to backpainting.
🔶 DETAILS
The swing points detection feature relies exclusively on price action, eliminating the need for numerical user-defined settings.
The first step involves detecting short-term swing points, where a short-term swing high (STH) is identified as a price peak surrounded by lower highs on both sides. Similarly, a short-term swing low is recognized as a price trough surrounded by higher lows on both sides.
Intermediate-term swing and long-term swing points are detected using the same approach but with a slight modification. Instead of directly analyzing price candles, we now utilize the previously detected short-term swing points. For intermediate-term swing points, we rely on short-term swing points, while for long-term swing points, we use the intermediate-term ones.
🔶 SETTINGS
Detection: Market structure used to detect swing points for creating order blocks.
Show Last Bullish OB: Number of the most recent bullish order/breaker blocks to display on the chart.
Show Last Bearish OB: Number of the most recent bearish order/breaker blocks to display on the chart.
Use Candle Body: Allows users to use candle bodies as order block areas instead of the full candle range.
🔹 Style
Show Historical Polarity Changes: Allows users to see labels indicating where a swing high/low previously occurred within a breaker block.
🔶 RELATED SCRIPTS
Pure-Price-Action-Structures.
Order-Blocks-Breaker-Blocks.
تحليل الاتجاه
Carlos IndexOverview:
The "Carlos Index" is designed to help traders identify potential buy and sell opportunities by combining an Exponential Moving Average (EMA) with recent high and low levels of price action. This indicator is particularly useful for those looking to spot trend reversals and potential support/resistance zones.
How It Works:
EMA Calculation: The indicator uses a customizable EMA to smooth price data, making it easier to identify the underlying trend. The default length of the EMA is set to 20 periods, but this can be adjusted to suit different trading styles or timeframes.
High and Low Levels: The script plots the highest and lowest prices over the last 8 periods, providing a visual representation of recent market extremes. These levels can act as potential support and resistance areas.
Buy and Sell Signals: The indicator generates buy and sell signals based on the crossover and crossunder of the price and the EMA. A "Buy" signal is generated when the price crosses above the EMA and was higher than the previous period, indicating a potential bullish reversal. Conversely, a "Sell" signal appears when the price crosses below the EMA and was lower than the previous period, suggesting a bearish reversal.
Customization:
Length: The period length for the EMA can be adjusted to better fit the user's trading strategy.
Source: Users can select the price source for the EMA calculation, such as close, open, high, or low prices.
Originality and Usefulness:
The "Carlos Index" combines traditional technical analysis tools in a unique way to enhance traders' decision-making processes. While moving averages and price extremes are commonly used in market analysis, this indicator integrates them to provide a more holistic view of market conditions. The combination of EMA crossovers with recent high and low levels helps identify potential trend reversals and market sentiment changes more effectively.
What sets the "Carlos Index" apart is its dual approach to signal generation: it not only uses EMA crossovers but also considers the immediate price movement relative to the previous period, adding a layer of confirmation to buy and sell signals. This feature aims to reduce false signals and improve the accuracy of market entry and exit points.
Additionally, the customizable settings allow traders to tailor the indicator to their specific trading strategies, making it adaptable across different market environments and timeframes. The clear visual cues provided by the plotted EMA and price levels, along with the buy/sell labels, offer an intuitive understanding of market dynamics, even for those new to technical analysis.
Chart Usage:
This indicator should be used on a clean chart for best visibility.
The plotted lines (EMA, highs, and lows) and signals (Buy/Sell labels) provide a straightforward visual guide for traders.
By using the Carlos Index, traders can gain a clearer understanding of market dynamics and make more informed trading decisions. This script combines both trend-following and mean-reversion elements, making it versatile across various market conditions.
The Strat with TFC & Combo DashIntroduction:
This indicator is designed to implement "The Strat" trading strategy combined with a Timeframe Continuity Dashboard and Combo Dashboard. The Strat is a robust trading methodology that relies on price action and candlestick formations to make trading decisions. This script helps traders to identify specific bar types such as Inside Bars (1), Continuation Up Bars (2u), Continuation Down Bars (2d), and Outside Bars (3) across multiple timeframes. It visually highlights these bar types on the chart and provides a comprehensive dashboard displaying the current state of the selected timeframes.
Key Features:
Timeframe Continuity Dashboard: Displays arrows and bar types for up to four selected timeframes.
Strat Combos Dashboard: Shows the previous and current bar types to easily spot trading setups.
Customizable Colors and Labels: Options to personalize the colors and labels for Inside and Outside bars.
Adjustable Dashboard Position and Size: Allows users to set the location and size of the dashboard for better visual alignment.
Inputs:
TFC & Combo Dash Configuration:
Show TFC & Combo Dashboard: Toggle to display the dashboard.
Show Strat Combos: Toggle to display Strat combo setups.
Location: Dropdown to select the position of the dashboard on the chart.
Size: Dropdown to choose between desktop and mobile view.
Timeframe Selection:
Timeframe 1: Primary timeframe for analysis.
Timeframe 2: Secondary timeframe for analysis.
Timeframe 3: Tertiary timeframe for analysis.
Timeframe 4: Quaternary timeframe for analysis.
Candle Visuals:
Show Inside Bar Label: Option to show label instead of color for Inside bars.
Inside Bar Color: Color picker for Inside bars.
Show Outside Bar Label: Option to show label instead of color for Outside bars.
Outside Bar Color: Color picker for Outside bars.
TFC & Combo DashboardFunctions:
The script fetches values for the selected timeframes and computes the bar types and corresponding visual elements such as arrows and background colors. The dashboard displays this information in a tabular format for easy reference during trading.
The dashboard is dynamically created based on user input for position and size. It shows the selected timeframes, bar types, and combo setups, providing a quick overview of the market conditions across multiple timeframes.
Timeframes: Displays the four user chosen timeframes that the dashboard fetches data from.
Arrow and Color: Functions to set the arrow direction and color based on current bar action. Green and up arrow: price is above it's candle open.
Red and down arrow: price is below it's candles open.
Background Color: Functions to set background color based on the bar type. White for an outside bar(3), yellow for an inside bar(1), no color for a continuation bar(2).
Strat Candle Combos: Functions to determine if the bar is an Inside(1), Continuation Up(2u), Continuation Down(2d), or Outside bar(3). Shows the previous bar and the current bar for the user's chosen timeframes.
Candle Visuals:
The script plots labels and colors for Inside and Outside bars based on user preferences. It helps in quickly identifying potential trading setups on the chart.
Conclusion:
We believe in providing user-friendly tools to help speed up traders technical analysis and implement easy trading strategies. The Strat with TFC & Combo Dashboard is a tool to assist traders in identifying potential trading setups based on The Strat methodology; to suit the users needs and trading style.
RISK DISCLAIMER
All content, tools, scripts & education provided by Gorb Algo LLC are for informational & educational purposes only. Trading is risk and most lose their money, past performance does not guarantee future results.
Quadratic Kernel with Quadratic Divergence [PinescriptLabs]This indicator combines a quadratic kernel regression with adaptive deviation bands to provide a unique view of market trends.
Key Features:
**Customizable Parameters:**
- Regression Period: Adjusts the sensitivity of the central line (default 50).
- Time Deformation: Modifies the weight of recent vs. older data (default 1.0). Increasing the "Time Deformation" makes more recent data more relevant, while decreasing it gives more weight to older data in the regression calculation.
- Confidence Band Width: Controls the width of the bands (default 3.0). Determines how many standard deviations are added to or subtracted from the central line to form the confidence bands. The standard deviations are calculated as the difference between the central line and the closing prices. A higher confidence value will result in wider bands, indicating a broader range of expected price variation, while a lower confidence value will result in narrower bands, indicating a narrower range of expected price variation.
**How to Use the Indicator Based on Price Crossings with the Kernel Divergence Line?**
Short: We need a candle to cross and close below the Kernel Divergence Line (bullish), and at the same time, the quadratic channels must be in a Bearish state for confirmation. Once the entry is executed, our exit will be when the Divergence Line changes its color by at least two confirmation points, or the price crosses above, which nullifies the entry.
Long: We need a candle to cross and close above the Kernel Divergence Line (bearish), and at the same time, the quadratic channels must be in a Bullish state for confirmation. Once the entry is executed, our exit will be when the Divergence Line changes its color by at least two confirmation points, or the price crosses below, which nullifies the entry.
**How to Use the Indicator Based Solely on Kernel Divergence??**
We observe the Kernel Divergence line, which indicates bullish momentum while the price is declining, and we are looking for the Reversal point.
**Confirmation of the Reversal Point:** When the Kernel Divergence changes from bullish (green color) to bearish (red color), we look for the price at its lowest point to be below the first lower Quadratic channel or even outside the Quadratic channel. This signals a potential strong reversal.
How to Use the Indicator Based Solely on Quadratic Channels?
Use only confirmations of changes from Bullish to Bearish or vice versa. It is recommended to have at least three confirmation points in the same direction.
Quadratic Kernel Regression: Provides a smoothed trend line that adapts to market movements.
Adaptive Deviation Bands: Dynamically calculated to show market volatility.
Buy/Sell Signals: Based on the price crossing the central line and the direction of the trend.
Quadratic Kernel Regression calculates a smoothed central line based on recent prices.
The deviation bands automatically adjust according to market volatility.
The trend is determined by comparing the current position of the central line with its previous position.
Buy signals are generated when the price crosses above the central line in an uptrend.
Sell signals are generated when the price crosses below the central line in a downtrend.
Español:
Este indicador combina una regresión de kernel cuadrático con bandas de desviación adaptativas para proporcionar una visión única de la tendencia del mercado.
Características principales:
**Parámetros personalizables:**
- Período de regresión: Ajusta la sensibilidad de la línea central (por defecto 50).
- Deformación del tiempo: Modifica el peso de los datos recientes vs. antiguos (por defecto 1.0). Aumentar la "Deformación del tiempo" hace que los datos más recientes sean más relevantes, mientras que disminuirla da más peso a los datos antiguos en el cálculo de la regresión.
- Ancho de bandas de confianza: Controla la amplitud de las bandas (por defecto 3.0). Determina cuántas desviaciones estándar se añaden o restan a la línea central para formar las bandas de confianza. Las desviaciones estándar se calculan como la diferencia entre la línea central y los precios de cierre. Un valor mayor de confianza resultará en bandas más anchas, indicando un rango más amplio de variación esperada en los precios, mientras que un valor menor de confianza resultará en bandas más estrechas, indicando un rango más estrecho de variación esperada.
* *Cómo usar el Indicador Basados en los Cruces de Precio con la Línea de Divergencia del Kernel?**
Short: Necesitamos que una vela cruce y cierre por debajo de la línea de Divergencia del Kernel (bullish) y al mismo tiempo los Canales cuadráticos deben estar en un momento Bearish para confirmación. Una vez ejecutada la entrada, nuestra salida será cuando la Línea de Divergencia haga su cambio de color al menos dos puntos de confirmación o el precio haga un cruce por arriba, lo que anula la entrada.
Long: Necesitamos que una vela cruce y cierre por Encima de la linea de Divergencia del Kernel( Bearish) y al mismo tiempo los Canales cuadráticos deben estar en un momento Bullish para confirmación, una vez ejecutada la entrada nuestra salida será cuando la Linea de Divergencia haga su cambio de color al menos dos puntos de confirmación o el precio haga un cruce por Debajo lo que anula la entrada:
Como usar el indicador Basado en solo en Divergencia del Kernel? : Observamos la linea de Divergencia del Kernel la cual nos indica un momentum bullish mientras que precio va a la baja y lo que buscamos es el punto de Reversion.
Confirmación de punto de reversion: cuando la Divergencia de Kernel pasa de bullish ( color verde) a bearish ( color rojo) buscamos que el precio en su punto mas bajo este por debajo del primer canal inferior Quadratico o fuera incluso del canal Quadratico lo que nos indica una posible reversion con fuerza.
Como usar el indicador basado solo en Canales Quadraticos?
Utilizar únicamente las confirmaciones de Cambio de Bullish a Bearish o visceversa, se recomienda al menos tres puntos de confirmación en la misma dirección.
Regresión de kernel cuadrático: Ofrece una línea de tendencia suavizada que se adapta a los movimientos del mercado.
Bandas de desviación adaptativas: Calculadas dinámicamente para mostrar la volatilidad del mercado.
Señales de compra/venta: Basadas en el cruce del precio con la línea central y la dirección de la tendencia.
La regresión de kernel cuadrático calcula una línea central suavizada basada en los precios recientes.
Las bandas de desviación se ajustan automáticamente según la volatilidad del mercado.
La tendencia se determina comparando la posición actual de la línea central con su posición anterior.
Las señales de compra se generan cuando el precio cruza por encima de la línea central en una tendencia alcista.
Las señales de venta se generan cuando el precio cruza por debajo de la línea central en una tendencia bajista.
All Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws and sends alerts for all of the harmonic patterns in my public library as they occur. The patterns included are as follows:
• Bearish 5-0
• Bullish 5-0
• Bearish ABCD
• Bullish ABCD
• Bearish Alternate Bat
• Bullish Alternate Bat
• Bearish Bat
• Bullish Bat
• Bearish Butterfly
• Bullish Butterfly
• Bearish Cassiopeia A
• Bullish Cassiopeia A
• Bearish Cassiopeia B
• Bullish Cassiopeia B
• Bearish Cassiopeia C
• Bullish Cassiopeia C
• Bearish Crab
• Bullish Crab
• Bearish Deep Crab
• Bullish Deep Crab
• Bearish Cypher
• Bullish Cypher
• Bearish Gartley
• Bullish Gartley
• Bearish Shark
• Bullish Shark
• Bearish Three-Drive
• Bullish Three-Drive
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Measurement Tolerances
Tolerance refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. I have applied this concept in my pattern detection logic and have set default tolerances where applicable, as perfect patterns are, needless to say, very rare.
Chart Patterns
Generally speaking price charts are nothing more than a series of swing highs and swing lows. When demand outweighs supply over a period of time prices swing higher and when supply outweighs demand over a period of time prices swing lower. These swing highs and swing lows can form patterns that offer insight into the prevailing supply and demand dynamics at play at the relevant moment in time.
‘Let us assume… that you the reader, are not a member of that mysterious inner circle known to the boardrooms as “the insiders”… But it is fairly certain that there are not nearly so many “insiders” as amateur trader supposes and… It is even more certain that insiders can be wrong… Any success they have, however, can be accomplished only by buying and selling… hey can do neither without altering the delicate poise of supply and demand that governs prices. Whatever they do is sooner or later reflected on the charts where you… can detect it. Or detect, at least, the way in which the supply-demand equation is being affected… So, you do not need to be an insider to ride with them frequently… prices move in trends. Some of those trends are straight, some are curved; some are brief and some are long and continued… produced in a series of action and reaction waves of great uniformity. Sooner or later, these trends change direction; they may reverse (as from up to down), or they may be interrupted by some sort of sideways movement and then, after a time, proceed again in their former direction… when a price trend is in the process of reversal… a characteristic area or pattern takes shape on the chart, which becomes recognisable as a reversal formation… Needless to say, the first and most important task of the technical chart analyst is to learn to know the important reversal formations and to judge what they may signify in terms of trading opportunities’ (Edwards & Magee, 1948).
This is as true today as it was when Edwards and Magee were writing in the first half of the last Century, study your patterns and make judgements for yourself about what their implications truly are on the markets and timeframes you are interested in trading.
Over the years, traders have come to discover a multitude of chart and candlestick patterns that are supposed to pertain information on future price movements. However, it is never so clear cut in practice and patterns that where once considered to be reversal patterns are now considered to be continuation patterns and vice versa. Bullish patterns can have bearish implications and bearish patterns can have bullish implications. As such, I would highly encourage you to do your own backtesting.
There is no denying that chart patterns exist, but their implications will vary from market to market and timeframe to timeframe. So it is down to you as an individual to study them and make decisions about how they may be used in a strategic sense.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements. The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
█ INPUTS
• Change pattern and label colours
• Show or hide patterns individually
• Adjust pattern tolerances
• Set or remove alerts for individual patterns
█ NOTES
You can test the patterns with your own strategies manually by applying the indicator to your chart while in bar replay mode and playing through the history. You could also automate this process with PineScript by using the conditions from my swing and pattern libraries as entry conditions in the strategy tester or your own custom made strategy screener.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ SOURCES
Edwards, R., & Magee, J. (1948) Technical Analysis of Stock Trends (10th edn). Reprint, Boca Raton, Florida: Taylor and Francis Group, CRC Press: 2013.
All Chart Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically draws and sends alerts for all of the chart patterns in my public library as they occur. The patterns included are as follows:
• Ascending Broadening
• Broadening
• Descending Broadening
• Double Bottom
• Double Top
• Triple Bottom
• Triple Top
• Bearish Elliot Wave
• Bullish Elliot Wave
• Bearish Alternate Flag
• Bullish Alternate Flag
• Bearish Flag
• Bullish Flag
• Bearish Ascending Head and Shoulders
• Bullish Ascending Head and Shoulders
• Bearish Descending Head and Shoulders
• Bullish Descending Head and Shoulders
• Bearish Head and Shoulders
• Bullish Head and Shoulders
• Bearish Pennant
• Bullish Pennant
• Ascending Wedge
• Descending Wedge
• Wedge
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Measurement Tolerances
Tolerance refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. I have applied this concept in my pattern detection logic and have set default tolerances where applicable, as perfect patterns are, needless to say, very rare.
Chart Patterns
Generally speaking price charts are nothing more than a series of swing highs and swing lows. When demand outweighs supply over a period of time prices swing higher and when supply outweighs demand over a period of time prices swing lower. These swing highs and swing lows can form patterns that offer insight into the prevailing supply and demand dynamics at play at the relevant moment in time.
‘Let us assume… that you the reader, are not a member of that mysterious inner circle known to the boardrooms as “the insiders”… But it is fairly certain that there are not nearly so many “insiders” as amateur trader supposes and… It is even more certain that insiders can be wrong… Any success they have, however, can be accomplished only by buying and selling… hey can do neither without altering the delicate poise of supply and demand that governs prices. Whatever they do is sooner or later reflected on the charts where you… can detect it. Or detect, at least, the way in which the supply-demand equation is being affected… So, you do not need to be an insider to ride with them frequently… prices move in trends. Some of those trends are straight, some are curved; some are brief and some are long and continued… produced in a series of action and reaction waves of great uniformity. Sooner or later, these trends change direction; they may reverse (as from up to down), or they may be interrupted by some sort of sideways movement and then, after a time, proceed again in their former direction… when a price trend is in the process of reversal… a characteristic area or pattern takes shape on the chart, which becomes recognisable as a reversal formation… Needless to say, the first and most important task of the technical chart analyst is to learn to know the important reversal formations and to judge what they may signify in terms of trading opportunities’ (Edwards & Magee, 1948).
This is as true today as it was when Edwards and Magee were writing in the first half of the last Century, study your patterns and make judgements for yourself about what their implications truly are on the markets and timeframes you are interested in trading.
Over the years, traders have come to discover a multitude of chart and candlestick patterns that are supposed to pertain information on future price movements. However, it is never so clear cut in practice and patterns that where once considered to be reversal patterns are now considered to be continuation patterns and vice versa. Bullish patterns can have bearish implications and bearish patterns can have bullish implications. As such, I would highly encourage you to do your own backtesting.
There is no denying that chart patterns exist, but their implications will vary from market to market and timeframe to timeframe. So it is down to you as an individual to study them and make decisions about how they may be used in a strategic sense.
█ INPUTS
• Change pattern and label colours
• Show or hide patterns individually
• Adjust pattern ratios and tolerances
• Set or remove alerts for individual patterns
█ NOTES
I have decided to rename some of my previously published patterns based on the way in which the pattern completes. If the pattern completes on a swing high then the pattern is considered bearish, if the pattern completes on a swing low then it is considered bullish. This may seem confusing but it makes sense when you come to backtesting the patterns and want to use the most recent peak or trough prices as stop losses. Patterns that can complete on both a swing high and swing low are for such reasons treated as neutral, namely all broadening and wedge variations. I trust that it is quite self-evident that double and triple bottom patterns are considered bullish while double and triple top patterns are considered bearish, so I did not feel the need to rename those.
The patterns that have been renamed and what they have been renamed to, are as follows:
• Ascending Elliot Waves to Bearish Elliot Waves
• Descending Elliot Waves to Bullish Elliot Waves
• Ascending Head and Shoulders to Bearish Ascending Head and Shoulders
• Descending Head and Shoulders to Bearish Descending Head and Shoulders
• Head and Shoulders to Bearish Head and Shoulders
• Ascending Inverse Head and Shoulders to Bullish Ascending Head and Shoulders
• Descending Inverse Head and Shoulders to Bullish Descending Head and Shoulders
• Inverse Head and Shoulders to Bullish Head and Shoulders
You can test the patterns with your own strategies manually by applying the indicator to your chart while in bar replay mode and playing through the history. You could also automate this process with PineScript by using the conditions from my swing and pattern libraries as entry conditions in the strategy tester or your own custom made strategy screener.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ SOURCES
Edwards, R., & Magee, J. (1948) Technical Analysis of Stock Trends (10th edn). Reprint, Boca Raton, Florida: Taylor and Francis Group, CRC Press: 2013.
Multi Deviation Scaled Moving Average [ChartPrime]Multi Deviation Scaled Moving Average ChartPrime
⯁ OVERVIEW
The Multi Deviation Scaled Moving Average is an analysis tool that combines multiple Deviation Scaled Moving Averages (DSMAs) to provide a comprehensive view of market trends. The DSMA, originally created by John Ehlers, is a sophisticated moving average that adapts to market volatility. This indicator offers a unique approach to trend analysis by utilizing a series of DSMAs with different periods and presenting the results through a color-coded line and a visual histogram.
◆ KEY FEATURES
Multiple DSMA Calculation: Computes eight DSMAs with incrementally increasing periods for multi-faceted trend analysis.
Trend Strength Visualization: Provides a color-coded moving average line indicating trend strength and direction.
Trend Percentage Histogram: Displays a visual representation of bullish vs bearish trend percentages.
Signal Generation: Identifies potential entry and exit points based on trend strength crossovers.
Customizable Parameters: Allows users to adjust the base period and sensitivity of the indicator.
◆ USAGE
Trend Direction and Strength: The color and intensity of the main indicator line provide quick insights into the current trend.
Trend Percentage Histogram: The histogram value can give you an idea of the market trend ahead
Entry and Exit Signals: Diamond-shaped markers indicate potential trade entry and exit points based on trend strength shifts.
Trend Bias Assessment: The trend percentage histogram offers a visual representation of the overall market bias.
Multi-Timeframe Analysis: By applying the indicator to different timeframes, traders can gain insights into trends across various time horizons.
⯁ USER INPUTS
Period: Sets the initial calculation period for the DSMAs (default: 30).
Sensitivity: Adjusts the step size between DSMA periods. Lower values increase sensitivity (default: 60, range: 0-100).
Source: Uses HLC3 (High, Low, Close average) as the default price source.
The Multi Deviation Scaled Moving Average indicator offers traders a sophisticated tool for trend analysis and signal generation. By combining multiple DSMAs and providing clear visual cues, it enables traders to make more informed decisions about market direction and potential entry or exit points. The indicator's customizable parameters allow for fine-tuning to suit various trading styles and market conditions.
Anchored Auto Fibonacci Retracement with Alerts [ImaWrknMan]SYNOPSIS
Automatically generates a Fibonacci Retracement anchored to the candle of your choosing. As price moves further away from the anchor point, the fib levels automatically adjust to represent the entirety of the move.
BULLISH VS. BEARISH
It automatically detects if the Fibonacci Retracement should be drawn from the low or high of the anchored candle by considering the candles that follow (if they produce new highs, it will use the anchored candle low; if they produce new lows, it will use the anchored candle high).
MITIGATION
If the Fibonacci levels are fully retraced (i.e., price pulls back beyond the originating price), the levels will remain on the chart but it will no longer adjust as new candles form - it will become static.
OPTIONS
The following options are offered:
Extend Retracement Levels
The Fibonacci Retracement levels will extend beyond the last candle into the future. These extensions are visually represented using dashed lines.
Retracement Levels
Twelve levels are supported. The default levels mirror those used by the standard Fibonacci Retracement tool. Select only the levels you want to see on the chart. Line color can also be customized to your liking. You can optionally define an alert condition and alert message for each level (see "Alerts" below).
ALERTS
To receive an alert when price retraces into a level, check the "Alert" box to the right of that level. You can optionally define the text to display in the alert by entering it in the text box to the right of the alert checkbox. Levels with alerts will be marked on the chart with a "bell" symbol. Once you've selected the alerts you want to receive and (optionally) the text for each alert, create an Alert for the indicator.
NOTE: You do NOT need to create a separate Alert for each level.
Limitations
Alerts can only be defined for levels that fall between 0 and 1.
Once an alert is created, its settings are fixed. Any changes to the settings after the Alert is created will have no effect on the existing Alert. In this case, the Alert should be recreated.
Alert notifications will only be generated for visible levels.
Other Alerts
Alert on expansion - Use this alert option if you want to be notified when price moves further from the anchored price, causing the retracement levels to adjust. This is useful if you have Limit orders at current levels and you want to cancel or move them when the levels change.
"Alert on mitigation" - Use this alert option if you want to be notified when the Fibonacci Retracement has been fully retraced.
The code for this indicator was inspired by the Fibonacci Toolkit by LuxAlgo
Market Sentiment Fear and Greed [AlgoAlpha]Unleash the power of sentiment analysis with the Market Sentiment Fear and Greed Indicator! 📈💡 This tool provides insights into market sentiment, helping you make informed trading decisions. Let's dive into its key features and how it works. 🚀✨
Key Features 🎯
🧠 Sentiment Analysis : Calculates market sentiment using volume and price data. 📊
📅 Customizable Lookback Window : Adjust the lookback period to fine-tune sensitivity. 🔧
🎨 Bullish and Bearish Colors : Visualize trends with customizable colors. 🟢🔴
🚀 Impulse Detection : Identifies bullish and bearish impulses for trend confirmation. 🔍
📉 Normalized Sentiment Index : Offers a normalized view of market sentiment. 📊
🔔 Alerts : Set alerts for key sentiment changes and trend impulses. 🚨
🟢🔴 Table Visualization : Displays sentiment strength using a gradient color table. 🗂️
How to Use 📖
Maximize your trading potential with this indicator by following these steps:
🔍 Add the Indicator : Search for "Market Sentiment Fear and Greed " in TradingView's Indicators & Strategies. Customize settings like the lookback window and trend breakout threshold to suit your trading strategy.
📊 Monitor Sentiment : Watch the sentiment gauge and plot changes to detect market sentiment shifts. Use the Normalized Sentiment Index for a more balanced view.
🚨 Set Alerts : Enable alerts for sentiment flips and trend impulses to stay ahead of market movements.
How It Works ⚙️
The indicator calculates market sentiment by averaging the volume and closing prices over a user-defined lookback period, creating a sentiment score. It differentiates between bullish and bearish sentiment by evaluating whether the closing price is higher or lower than the opening price, summing the respective volumes. The true sentiment is determined by comparing these summed values, with a positive score indicating bullish sentiment and a negative score indicating bearish sentiment. The indicator further normalizes this sentiment score by dividing it by the EMA of the highest high minus the lowest low over double the lookback period, ensuring values are constrained between -1 and 1. Bullish and bearish impulses are identified using Hull Moving Averages (HMA) of the positive and negative sentiments, respectively. When these impulses exceed a calculated threshold based on the standard deviation of the sentiment, it indicates a significant trend change. The script also includes a gradient color table to visually represent the strength of sentiment, and customizable alerts to notify users of key sentiment changes and trend impulses.
Unlock deeper insights into market sentiment and elevate your trading strategy with the Market Sentiment Fear and Greed Indicator! 📈✨
Market Structure Break Targets [UAlgo]The "Market Structure Break Targets " indicator is designed to identify and visualize key market structure points such as Market Structure Breaks (MSBs) and Break of Structures (BoS). These points are crucial for understanding market trends and potential reversal zones. By plotting these structures on the chart, traders can easily spot significant support and resistance levels, as well as potential entry and exit points.
This indicator uses a combination of swing highs and lows to determine market structures and calculates targets based on user-defined percentages or Average True Range (ATR) multipliers. It provides visual cues in the form of lines, labels, and boxes to help traders quickly interpret market conditions.
🔶 Key Features
Customizable Swing Length: Users can set the swing length to identify the pivot highs and lows, which are crucial for determining market structure.
Target Duration Bars: Defines the maximum duration (in bars) for which the targets will be considered valid.
Target Calculation Methods: The target levels are crucial for setting potential price objectives. The calculation can be based on a percentage move from the identified pivot or using the ATR to factor in market volatility. These targets help in setting realistic profit-taking levels or identifying stop-loss placements.
Bullish and Bearish Market Structure Break (MSB): Detects and highlights bullish and bearish market structure breaks with customizable colors and target percentages.
Bullish MSB
When the price closes above a significant pivot high, a bullish MSB is identified. The indicator will draw a line at this level and calculate a target based on the chosen method (percentage or ATR). The target is visualized with a dotted line, and a label "MSB" is displayed. Additionally, an order block is created at the level of the bullish MSB. This order block is highlighted with a semi-transparent box, representing a potential area where price might find support in the future.
Bearish MSB
Conversely, when the price closes below a significant pivot low, a bearish MSB is marked. Similar to bullish MSBs, targets are calculated and displayed on the chart. An order block is also generated at the level of the bearish MSB, visualized with a semi-transparent box. This box highlights a potential resistance area where price might face selling pressure.
Bullish and Bearish Break of Structure (BoS): Identifies break of structures for both bullish and bearish scenarios, providing additional target levels.
Bullish BoS
If the price continues to rise and breaks another significant level, a bullish BoS is detected. This break is also marked with lines and labels, providing additional target levels for traders. An order block is created at the BoS level, serving as a potential support zone.
Bearish BoS
If the price falls further after a bearish MSB, a bearish BoS is identified and visualized similarly. The indicator creates an order block at the BoS level, which acts as a potential resistance zone.
🔶 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.
Bullish Breakout After ConsolidationDescription:
The Bullish Breakout After Consolidation Indicator is designed to help traders identify potential bullish breakout opportunities following a period of tight price consolidation. This indicator combines price action and volume analysis to signal when a stock may experience a significant upward movement.
Features:
Consolidation Range Tightness: The indicator identifies periods where the stock price consolidates within a narrow range, defined as a range less than 2% of the lowest low during the consolidation period. This tight consolidation is often a precursor to strong price movements.
Breakout Detection: Once the price breaks above the highest high of the consolidation range, and this breakout occurs after a specified number of days post-consolidation, the indicator marks it as a potential breakout opportunity.
Volume Confirmation: To avoid false breakouts, the indicator requires increased trading volume during the breakout. This ensures that the breakout is supported by substantial market activity.
Visual Cues:
Breakout Label: A "Breakout" label appears above the bar where a valid breakout occurs, making it easy to spot potential entry points.
Support and Resistance Lines: Horizontal lines plot the highest high (resistance) and lowest low (support) during the consolidation period, helping traders visualize the breakout levels.
Moving Averages: Optional 20-day and 50-day simple moving averages are plotted for additional trend confirmation.
How to Use:
Apply the Indicator: Add the indicator to your chart in TradingView to start analyzing potential breakouts.
Observe Consolidation: Look for tight consolidation periods where the price trades within a narrow range.
Identify Breakouts: Watch for breakouts where the price moves above the highest high of the consolidation range, supported by increased volume.
Confirm with Labels: The "Breakout" label will help you quickly identify valid breakout signals.
Parameters:
Consolidation Length: Number of days to consider for consolidation.
Range Percentage: Maximum percentage range for consolidation tightness.
Days After Consolidation: Number of days post-consolidation to check for the breakout.
Note: As with any trading tool, it is important to use this indicator as part of a broader trading strategy and in conjunction with other forms of analysis.
Disclaimer: This indicator is provided for educational purposes and should not be construed as financial advice. Trading involves risk and may not be suitable for all investors.
AT RatioAT Ratio
This indicator plots a ratio chart of 2 symbols, calculated as symbol1/symbol2.
The current chart symbol is used as symbol1.
A ratio chart allows to determine the relative strength of an asset compared to another asset.
It can be used for example to compare two stocks or a stock to its benchmark index, thus showing,
- if a stock has strength on its own (climbing ratio chart)
- if a stock just moves with the index (sideways ratio chart)
- if a stock is weaker than the index (falling ratio chart)
Inputs:
Style:
Plain: Only the ratio chart is plotted
MAs: Additional Moving Averages of the ratio chart are plotted
Perdiod Long: The period for the long MA
Perdiod Short: The period for the long MA
MA Type Long:
Simple: A simple MA is used
Expo: An exponential MA is used
MA Type Short:
Simple: A simple MA is used
Expo: An exponential MA is used
Ratio Symbol: The symbol to be used for symbol2
Factor: A factor the ratio value is multiplied by
Open-source script
Momentum Candles by @PipsandProfitFXThe High Momentum Candles indicator highlights price bars with exceptional price movement and strong volume. It identifies candles with significantly long bodies relative to their shadows, indicating rapid price changes. Additionally, the indicator filters for candles with above-average volume to confirm the strength of the price movement.
Dark red: bearish momentum
Orange: bullish momentum
(You can easily change the momentum candles to whatever color you want in the indicator settings.)
By visually emphasizing these high momentum candles, traders can potentially identify potential trend reversals or continuations, as well as potential entry and exit points.
Key Features:
Identifies candles with large bodies relative to their shadows
Filters candles based on volume to confirm strength
Highlights high momentum candles with a distinct color
Let me know if you'd like to see any updates on this indicator.
Note: This indicator is a visual tool and should be used in conjunction with other technical analysis techniques for making informed trading decisions.
WMA Trend and Growth Rate IndicatorThe "WMA Trend and Growth Rate Indicator" is a powerful tool for analyzing market trends and momentum. By understanding its components and how to configure it, traders of all levels can leverage this indicator to enhance their trading strategies. Experiment with the settings and integrate it into your analysis to gain valuable insights into market movements.
Indicator Components
WMA Length : The length of the WMA. This controls how many periods are included in the calculation.
Start : The starting value for accumulation levels.
End : The ending value for accumulation levels.
Key Concepts
Weighted Moving Average (WMA): A type of moving average that gives more weight to recent price data, making it more responsive to recent price changes.
Growth Rate : Measures how much the WMA has increased or decreased over a specified period, expressed as a percentage.
Accumulation and Distribution Levels : Zones where buying (accumulation) or selling (distribution) pressure is expected.
Configuring the Inputs
WMA Length : Adjust this value to change the sensitivity of the WMA. A smaller value makes the WMA more sensitive to recent price changes, while a larger value smooths out the data more.
Start and End : Adjust these values to define the range for accumulation and distribution levels. The indicator will automatically adjust the colors based on whether the Start value is higher or lower than the End value.
Interpreting the Plots
WMAT Line : The main trend line that shows the direction and strength of the trend.
Growth Index : Shows the growth rate of the WMAT.
Accumulation Levels : Indicated by lines and fill colors, showing potential zones to increase positions.
Distribution Levels : Indicated by lines and fill colors, showing potential zones to decrease positions.
The indicator checks if "Start" is greater than "End". Based on this check, it assigns colors to the accumulation and distribution levels. This color scheme helps traders visually distinguish between areas of potential buying and selling zones.
Daily Liquidity Peaks and Troughs [ST]Daily Liquidity Peaks and Troughs
Description in English:
This indicator identifies peaks and troughs of highest liquidity on a daily timeframe by analyzing volume data. It helps traders visualize key points of high buying or selling pressure, which could indicate potential reversal or continuation areas.
Detailed Explanation:
Configuration:
Lookback Length: This input defines the period over which the highest high and lowest low are calculated. The default value is 14. This means the script will look at the past 14 bars to determine if the current high or low is a pivot point.
Volume Threshold Multiplier: This input defines the multiplier for the average volume. For example, a multiplier of 1.5 means the volume needs to be 1.5 times the average volume to be considered a significant peak or trough.
Peak Color: This input sets the color for liquidity peaks. The default color is red.
Trough Color: This input sets the color for liquidity troughs. The default color is green.
Volume Calculation:
Average Volume: The script calculates the simple moving average (SMA) of the volume over the lookback period. This helps to identify periods of significantly higher volume.
Volume Threshold: The threshold is determined by multiplying the average volume by the volume threshold multiplier. Only volumes exceeding this threshold are considered significant.
Identifying Peaks and Troughs:
Liquidity Peak: A peak is identified when the current high is the highest high over the lookback period and the current volume exceeds the volume threshold. This indicates a potential area of strong selling pressure.
Liquidity Trough: A trough is identified when the current low is the lowest low over the lookback period and the current volume exceeds the volume threshold. This indicates a potential area of strong buying pressure.
These peaks and troughs are marked on the chart with labels and shapes for easy visualization.
Plotting Peaks and Troughs:
Labels: The script uses labels to mark peaks and troughs on the chart. Peaks are marked with a red label and troughs with a green label.
Shapes: The script plots triangles above peaks and below troughs to highlight these areas visually.
Indicator Benefits:
Liquidity Identification: Helps traders identify key areas of high liquidity, indicating strong buying or selling pressure.
Visual Cues: Provides clear visual signals for potential reversal or continuation points, aiding in making informed trading decisions.
Customizable Parameters: Allows traders to adjust the lookback length and volume threshold to suit different trading strategies and market conditions.
Justification of Component Combination:
Peaks and Troughs Identification: Combining pivot points with volume analysis provides a robust method to identify significant liquidity areas. This helps in detecting potential market reversals or continuations.
Volume Analysis: Utilizing average volume and volume threshold ensures that only significant volume spikes are considered, enhancing the accuracy of identified peaks and troughs.
How Components Work Together:
The script first calculates the average volume over the specified lookback period.
It then checks each bar to see if it qualifies as a liquidity peak or trough based on the highest high, lowest low, and volume threshold.
When a peak or trough is identified, it is marked on the chart with a label and a shape, providing clear visual cues for traders.
Título: Picos e Fundos de Liquidez Diários
Descrição em Português:
Este indicador identifica picos e fundos de maior liquidez no gráfico diário, analisando os dados de volume. Ele ajuda os traders a visualizar pontos-chave de alta pressão de compra ou venda, o que pode indicar áreas potenciais de reversão ou continuação.
Explicação Detalhada:
Configuração:
Comprimento de Retrocesso: Este input define o período sobre o qual a máxima e mínima são calculadas. O valor padrão é 14. Isso significa que o script analisará os últimos 14 candles para determinar se a máxima ou mínima atual é um ponto de pivô.
Multiplicador de Limite de Volume: Este input define o multiplicador para o volume médio. Por exemplo, um multiplicador de 1.5 significa que o volume precisa ser 1.5 vezes o volume médio para ser considerado um pico ou fundo significativo.
Cor do Pico: Este input define a cor para os picos de liquidez. A cor padrão é vermelha.
Cor do Fundo: Este input define a cor para os fundos de liquidez. A cor padrão é verde.
Cálculo do Volume:
Volume Médio: O script calcula a média móvel simples (SMA) do volume ao longo do período de retrocesso. Isso ajuda a identificar períodos de volume significativamente mais alto.
Limite de Volume: O limite é determinado multiplicando o volume médio pelo multiplicador de limite de volume. Apenas volumes que excedem esse limite são considerados significativos.
Identificação de Picos e Fundos:
Pico de Liquidez: Um pico é identificado quando a máxima atual é a máxima mais alta no período de retrocesso e o volume atual excede o limite de volume. Isso indica uma potencial área de forte pressão de venda.
Fundo de Liquidez: Um fundo é identificado quando a mínima atual é a mínima mais baixa no período de retrocesso e o volume atual excede o limite de volume. Isso indica uma potencial área de forte pressão de compra.
Esses picos e fundos são marcados no gráfico com etiquetas e formas para fácil visualização.
Plotagem de Picos e Fundos:
Etiquetas: O script usa etiquetas para marcar picos e fundos no gráfico. Os picos são marcados com uma etiqueta vermelha e os fundos com uma etiqueta verde.
Formas: O script plota triângulos acima dos picos e abaixo dos fundos para destacar essas áreas visualmente.
Benefícios do Indicador:
Identificação de Liquidez: Ajuda os traders a identificar áreas-chave de alta liquidez, indicando forte pressão de compra ou venda.
Cues Visuais: Fornece sinais visuais claros para pontos potenciais de reversão ou continuação, auxiliando na tomada de decisões informadas.
Parâmetros Personalizáveis: Permite que os traders ajustem o comprimento de retrocesso e o limite de volume para se adequar a diferentes estratégias de negociação e condições de mercado.
Justificação da Combinação de Componentes:
Identificação de Picos e Fundos: A combinação de pontos de pivô com análise de volume fornece um método robusto para identificar áreas significativas de liquidez. Isso ajuda na detecção de potenciais reversões ou continuações de mercado.
Análise de Volume: Utilizar o volume médio e o limite de volume garante que apenas picos de volume significativos sejam considerados, aumentando a precisão dos picos e fundos identificados.
Como os Componentes Funcionam Juntos:
O script primeiro calcula o volume médio ao longo do período especificado de retrocesso.
Em seguida, verifica cada barra para ver se ela se qualifica como um pico ou fundo de liquidez com base
Higher Timeframe Open High Low ClosePURPOSE
1. Multi-timeframe analysis (MTFA).
2. Better visualize intraday price action relative higher timeframe price action, and this is not limited to the current time frame or the higher time frame including current price movement.
3. Higher Timeframes provides an overview of the long-term trend (e.g., weekly or monthly charts).
4. Confirm trends occurring on more than one timeframe.
5. Improve choice of entry and exit points.
ORIGINALITY
1. Compare current lower time frame price movement to current or previous higher time frame movement. The user specifies in the settings the higher time frame (day, week, month, quarter, or year) and the associated price movement data, including OHLC, average prices, and moving average levels.
2. Previous time frames and all specified levels (OHLC, average prices, and moving averages) can be shifted together to overlay the current time frame. This allows analysis of lower/intraday price movement against that of any past higher time frames.
3. Use: In the settings, the current time frame (i.e., that including current price movement) 'count from current' is '0', a count of '1' would shift one higher level time frame such that the open date of that shifted time frame aligns with the open date of the current time frame. A count of '3' would shift three higher level time frames to align with the current."
4. Example: On the Wednesday July 24 intraday chart, overlay the daily OHLC, typical price, and 10-day EMA data occurring at the close of Wednesday July 17. This allows analyze current price movement against data from one week prior.
HIGHER TIMEFRAME DATA that can be PLOTTED and SHIFTED
1. Open, High, Low, Close.
2. Average prices: Median (HL/2), Typical (HLC/3), (Average OHLC/4), Body Median (OC/2), Weighted Close (HL2C/4), Biased 01 (HC/2 if Close > Open, else LC/2), Biased 02 (High if Close > HL/2, else Low), Biased 03 (High if Close > Open, else Low).
3. Moving averages with user specified source, length and type.
Gartley Harmonic Pattern [TradingFinder] Harmonic Chart patterns🔵 Introduction
Research by H.M. Gartley and Scott Carney emphasizes the importance of harmonic patterns in technical analysis for predicting market movements. Gartley's work, particularly the Gartley 222 pattern, is detailed in his book "Profits in the Stock Market" and relies on the specific placement of points X, A, B, C, and D.
🟣 Defining the Gartley Pattern
The Gartley pattern is a powerful technical analysis tool often seen at the end of a trend, signaling a potential reversal. Ideally, it forms during the first and second waves of Elliott Wave theory, with wave XA representing wave 1 and the entire ABCD correction representing wave 2.
While patterns outside this structure are also valid, the key points of the Gartley pattern align closely with Fibonacci retracement levels. Specifically, point B corrects wave XA to the 61.8% level, point C lies between 38% and 79% of wave AB, and point D extends between 113% and 162% of wave BC.
The bullish Gartley pattern, shown below, forms at the end of a downtrend and signals a potential buying opportunity.
Bullish :
Bearish :
🔵 How to Use
🟣 Bullish Gartley Pattern
To spot a bullish Gartley pattern, follow these rules: the move from point X to point A (the first leg) must be upward. The subsequent move from point A to point B is downward, followed by an upward move from point B to point C.
Finally, the move from point C to point D is downward. On a chart, this pattern resembles the letter M. After the final leg of this pattern, prices are expected to rise from point D.
🟣 Bearish Gartley Pattern
A bearish Gartley pattern forms similarly to the bullish one but in reverse. The initial move from point X to point A should be downward. The next move from point A to point B is upward, followed by a downward move from point B to point C.
The final leg moves upward from point C to point D. This pattern appears as a W on charts, indicating that prices are likely to fall from point D after the final move.
By understanding and identifying Gartley patterns, traders can enhance their technical analysis and improve their decision-making in financial markets. These patterns, when correctly identified, offer significant insights into potential market reversals and continuation patterns.
🔵 Setting
🟣 Logical Setting
ZigZag Pivot Period : You can adjust the period so that the harmonic patterns are adjusted according to the pivot period you want. This factor is the most important parameter in pattern recognition.
Show Valid Format : If this parameter is on "On" mode, only patterns will be displayed that they have exact format and no noise can be seen in them. If "Off" is, the patterns displayed that maybe are noisy and do not exactly correspond to the original pattern
Show Formation Last Pivot Confirm : if Turned on, you can see this ability of patterns when their last pivot is formed. If this feature is off, it will see the patterns as soon as they are formed. The advantage of this option being clear is less formation of fielded patterns, and it is accompanied by the latest pattern seeing and a sharp reduction in reward to risk.
Period of Formation Last Pivot : Using this parameter you can determine that the last pivot is based on Pivot period.
🟣 Genaral Setting
Show : Enter "On" to display the template and "Off" to not display the template.
Color : Enter the desired color to draw the pattern in this parameter.
LineWidth : You can enter the number 1 or numbers higher than one to adjust the thickness of the drawing lines. This number must be an integer and increases with increasing thickness.
LabelSize : You can adjust the size of the labels by using the "size.auto", "size.tiny", "size.smal", "size.normal", "size.large" or "size.huge" entries.
🟣 Alert Setting
Alert : 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.
ICT Power Of Three | Flux Charts💎 GENERAL OVERVIEW
Introducing our new ICT Power Of Three Indicator! This indicator is built around the ICT's "Power Of Three" strategy. This strategy makes use of these 3 key smart money concepts : Accumulation, Manipulation and Distribution. Each step is explained in detail within this write-up. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new ICT Power Of Three Indicator :
Implementation of ICT's Power Of Three Strategy
Different Algorithm Modes
Customizable Execution Settings
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
The "Power Of Three" comes from these three keywords "Accumulation, Manipulation and Distribution". Here is a brief explanation of each keyword :
Accumulation -> Accumulation phase is when the smart money accumulate their positions in a fixed range. This phase indicates price stability, generally meaning that the price constantly switches between up & down trend between a low and a high pivot point. When the indicator detects an accumulation zone, the Power Of Three strategy begins.
Manipulation -> When the smart money needs to increase their position sizes, they need retail traders' positions for liquidity. So, they manipulate the market into the opposite direction of their intended direction. This will result in retail traders opening positions the way that the smart money intended them to do, creating liquidity. After this step, the real move that the smart money intended begins.
Distribution -> This is when the real intention of the smart money comes into action. With the new liquidity thanks to the manipulation phase, the smart money add their positions towards the opposite direction of the retail mindset. The purpose of this indicator is to detect the accumulation and manipulation phases, and help the trader move towards the same direction as the smart money for their trades.
Detection Methods Of The Indicator :
Accumulation -> The indicator detects accumulation zones as explained step-by-step :
1. Draw two lines from the lowest point and the highest point of the latest X bars.
2. If the (high line - low line) is lower than Average True Range (ATR) * accumulationConstant
3. After the condition is validated, an accumulation zone is detected. The accumulation zone will be invalidated and manipulation phase will begin when the range is broken.
Manipulation -> If the accumulation range is broken, check if the current bar closes / wicks above the (high line + ATR * manipulationConstant) or below the (low line - ATR * manipulationConstant). If the condition is met, the indicator detects a manipulation zone.
Distribution -> The purpose of this indicator is to try to foresee the distribution zone, so instead of a detection, after the manipulation zone is detected the indicator automatically create a "shadow" distribution zone towards the opposite direction of the freshly detected manipulation zone. This shadow distribution zone comes with a take-profit and stop-loss layout, customizable by the trader in the settings.
The X bars, accumulationConstant and manipulationConstant are subject to change with the "Algorithm Mode" setting. Read the "Settings" section for more information.
This indicator follows these steps and inform you step by step by plotting them in your chart.
🚩UNIQUENESS
This indicator is an all-in-one suite for the ICT's Power Of Three concept. It's capable of plotting the strategy, giving signals, a backtesting dashboard and alerts feature. Different and customizable algorithm modes will help the trader fine-tune the indicator for the asset they are currently trading. The backtesting dashboard allows you to see how your settings perform in the current ticker. You can also set up alerts to get informed when the strategy is executable for different tickers.
⚙️SETTINGS
1. General Configuration
Algorithm Mode -> The indicator offers 3 different detection algorithm modes according to your needs. Here is the explanation of each mode.
a) Small Manipulation
This mode has the default bar length for the accumulation detection, but a lower manipulation constant, meaning that slighter imbalances in the price action can be detected as manipulation. This setting can be useful on tickers that have lower liquidity, thus can be manipulated easier.
b) Big Manipulation
This mode has the default bar length for the accumulation detection, but a higher manipulation constant, meaning that heavier imbalances on the price action are required in order to detect manipulation zones. This setting can be useful on tickers that have higher liquidity, thus can be manipulated harder.
c) Short Accumulation
This mode has a ~70% lower bar length requirement for accumulation zone detection, and the default manipulation constant. This setting can be useful on tickers that are highly volatile and do not enter accumulation phases too often.
Breakout Method -> If "Close" is selected, bar close price will be taken into calculation when Accumulation & Manipulation zone invalidation. If "Wick" is selected, a wick will be enough to validate the corresponding zone.
2. TP / SL
TP / SL Method -> If "Fixed" is selected, you can adjust the TP / SL ratios from the settings below. If "Dynamic" is selected, the TP / SL zones will be auto-determined by the algorithm.
Risk -> The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails. This setting is has a crucial effect on the performance of the indicator, as different tickers may have different volatility so the indicator may have increased performance when this setting is correctly adjusted.
3. Visuals
Show Zones -> Enables / Disables rendering of Accumulation (yellow) and Manipulation (red) zones.
Money Flow Index Trend Zone Strength [UAlgo]The "Money Flow Index Trend Zone Strength " indicator is designed to analyze and visualize the strength of market trends and OB/OS zones using the Money Flow Index (MFI). The MFI is a momentum indicator that incorporates both price and volume data, providing insights into the buying and selling pressure in the market. This script enhances the traditional MFI by introducing trend and zone strength analysis, helping traders identify potential trend reversals and continuation points.
🔶 Customizable Settings
Amplitude: Defines the range for the MFI Zone Strength calculation.
Wavelength: Period used for the MFI calculation and Stochastic calculations.
Smoothing Factor: Smoothing period for the Stochastic calculations.
Show Zone Strength: Enables/disables visualization of the MFI Zone Strength line.
Show Trend Strength: Enables/disables visualization of the MFI Trend Strength area.
Trend Strength Signal Length: Period used for the final smoothing of the Trend Strength indicator.
Trend Anchor: Selects the anchor point (0 or 50) for the Trend Strength Stochastic calculation.
Trend Transform MA Length: Moving Average length for the Trend Transform calculation.
🔶 Calculations
Zone Strength (Stochastic MFI):
The highest and lowest MFI values over a specified amplitude are used to normalize the MFI value:
MFI Highest: Highest MFI value over the amplitude period.
MFI Lowest: Lowest MFI value over the amplitude period.
MFI Zone Strength: (MFI Value - MFI Lowest) / (MFI Highest - MFI Lowest)
By normalizing and smoothing the MFI values, we aim to highlight the relative strength of different market zones.
Trend Strength:
The smoothed MFI zone strength values are further processed to calculate the trend strength:
EMA of MFI Zone Strength: Exponential Moving Average of the MFI Zone Strength over the wavelength period.
Stochastic of EMA: Stochastic calculation of the EMA values, smoothed with the same smoothing factor.
Purpose: The trend strength calculation provides insights into the underlying market trends. By using EMA and stochastic functions, we can filter out noise and better understand the overall market direction. This helps traders stay aligned with the prevailing trend and make more informed trading decisions.
🔶 Usage
Interpreting Zone Strength: The zone strength plot helps identify overbought and oversold conditions. A higher zone strength indicates potential overbought conditions, while a lower zone strength suggests oversold conditions, can suggest areas for entry/exit decisions.
Interpreting Trend Strength: The trend strength plot visualizes the underlying market trend, can help signal potential trend continuation or reversal based on the chosen anchor point.
Using the Trend Transform: The trend transform plot provides an additional layer of trend analysis, helping traders identify potential trend reversals and continuation points.
Combine the insights from the zone strength and trend strength plots with other technical analysis tools to make informed trading decisions. Look for confluence between different indicators to increase the reliability of your trades.
🔶 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.
Coinbase vs Binance Spot Premium for All coins🔶 Coinbase Premium
This indicator allows you to track the premiums for various coins listed on Coinbase relative to Binance. The buying strength of US markets tend to be a good indicator for up trending markets.
The moving average crosses shown as ribbons can be used to time entries and exits
🔶 Available Pairs
Currently, the indicator includes 31 coins as listed below:
BTC, ETH, SOL, BONK, DOGE, XRP, SHIB, ONDO, AVAX, LINK, ENS, LTC, RNDR, INJ, BCH, ARB, OP, ADA, DOT, TIA, ICP, MATIC, LDO, NEAR, CVX, AERO, ORCA, SEI, STX, MKR, SUI
🔶 Key Features
Select Coin: You can select any of the 31 supported coins to track its premium.
Show Ribbons: Option to enable or disable the display of ribbon trend lines between two moving averages.
Adjust MA Lengths: Customizable lengths for the short and long moving averages to fine-tune the trend analysis.
🔶 Calculations
The premium is a simple nominal difference between the Coinbase price and the Binance price.
eg) Coinbase ETHUSD - Binance ETHUSDT = Premium
🔶 Disclaimer
This indicator is for informational purposes only and should not be considered financial advice.
Always conduct your own research and due diligence before making any trading decisions. Past performance is not necessarily indicative of future results.
DTFX Algo Zones [LuxAlgo]DTFX Algo Zones are auto-generated Fibonacci Retracements based on market structure shifts.
These retracement levels are intended to be used as support and resistance levels to look for price to bounce off of to confirm direction.
🔶 USAGE
Due to the retracement levels only being generated from identified market structure shifts, the retracements are confined to only draw from areas considered more important due to the technical Break of Structure (BOS) or Change of Character (CHoCH).
The simple action that causes a market structure shift occurs is price breaking above or below a specific swing point. When a market structure shift happens, a retracement is drawn from the point of break to the highest or lowest point since that point. Due to the price action necessary for a market structure shift, these retracements will not always be immediately actionable.
These retracement levels are intended to be used as points to watch for price to retrace to and bounce from, confirming the current direction of price.
In the example below, after the retracement is initiated, by bouncing off of the retracement levels formed from the previous market structure shift it would further confirm the bias of the market structure shift. A break going through these levels would display a weakness from the current market structure shift, implying that it could simply be noise.
🔶 DETAILS
The script uses standard SMC Market structure identification to determine Break of Structures (BOS) and Change of Characters (CHoCH). The specific swing points can be identified by the shapes placed above or below the specific swing high/low candle.
By unchecking the "Display All Zones" setting, users are able to specify the exact number of retracement zones to display using the "Show Last" parameter. This is handy for cleaning up the chart to stay focused on the most recent retracements.
Additionally, when displaying multiple zones, the "Clean-Up Level Overlap" setting may be helpful for decluttering as well. This option optimizes the display of retracement levels to minimize their overlap on other adjacent zones.
The script allows for up to 5 Fib levels to be displayed from each zone, with options for display, value, line style, and color for each of the 5.
The calculation for Fib Levels changes depending on the direction of market structure shifts. When an upwards (Bullish) zone is generated, the retracement is drawn with the bottom of the zone being 0 and the top of the zone being 1. This is reversed for downwards (Bearish) zones.
🔶 SETTINGS
Structure Length: Sets the SMC structure length to use for finding MMS.
Show Last: Displays this number of retracement zones. (Display All Zones Must be Unchecked)
Display All Zones: Ignores "Show Last" number and displays all historical MMS Retracement Zones.
Zone Display: Choose which zones to display, only bearish, only bullish, or both.
Clean-Up Level Overlap: Minimizes overlap between adjacent zones and levels.
Fib Levels: Settings to display and customize up to 5 Fib levels for each zone.
Algo Market Structure (Nephew_Sam_)This indicator takes a different approach into reading market structure.
The key difference between this logic compared to the pivot logic is; we read highs and lows based on bullish and bearish candles. Ie:
Pivot method - highest/lowest point in previous and next X candles
Algo method - Bullish candle(s) followed by a bearish candle and vice versa
More explanation in each of the key feature below.
Here are all of the concepts and features included in the indicator:
Timeframe
- You can select the timeframe of the indicator (has to be higher or equal to the chart timeframe)
- Min option is the minimum timeframe to show the indicator. If you show daily structure on 1m chart, you can run into a timeout error so keep it close to the chart timeframe.
- Recommended timeframe for no bugs is the current chart timeframe.
Structure
The structure is calculated using a combination of candle patterns (ie. pivot top = Bullish x3-Bearish-Bullish) and marks out circle labels after a new HH or LL
Structure high = 1 or more consecutive bull candles followed by a bear candle
Structure low = 1 or more consecutive bear candles followed by a bull candle
Structure direction change = when the second previous H/L is taken out (TLQ)
ILQ - Inducement Liquidity concept
In a bearish example this is the most recent structure high.
TLQ
In a bearish example this is the second most recent structure high.
This is also what helps define our structure direction. If broken, the structure changes (bullish / bearish) and plots a bos line.
EPA - Efficient price action
When price returns back to previous structure point after bos. Similar to an ICT breaker.
Note: It might be a little, just a little buggy if you have set your indicator timeframe to higher than the chart timeframe.
Extremes Zones
The final zone to find a trade entry before a structural shift. These are wick of the TLQ candle. This is select the wick of the current timeframe candle even if indicator is set to higher timeframe.
MSU
Tiny arrow labels at the bottom of your chart. Plots the arrows when price is between an ILQ and TLQ
VTA
Valid trading range. This is when we get some sort of a structure pattern. Plots a box when price induces previous structure point and then breaks structure in the opposite direction. Here are the patterns:
Bull VTA - HH-LL-HH
Bear VTA - LL-HH-LL
Bull Strict VTA - LL-HH-LL-HH
Bear Strict VTA - HH-LL-HH-LL
Bar colors
Changes the bar color based on the structure to all green/red.
Note: for this to work, you will have to right click on the indicator, then under visual order select 'bring to front'
Table
This table plots the structure stats/data
1. If structure is bullish / bearish
2. If price is efficient or not
3. If there is an MSU
4. If price is inside a VTA
Disclaimer: This indicator is fully written from scratch by me, the idea behind the concepts come from AlgoHub material on Youtube. Do NOT use this code for reselling purposes and if anything is created using any part of this code, the source code should be public.
Rolling Price Activity Heatmap [AlgoAlpha]📈 Rolling Price Activity Heatmap 🔥
Enhance your trading experience with the Rolling Price Activity Heatmap , designed by AlgoAlpha to provide a dynamic view of price activity over a rolling lookback period. This indicator overlays a heatmap on your chart, highlighting areas of significant price activity, allowing traders to spot key price levels at a glance.
🌟 Key Features
📊 Rolling Heatmap: Visualize historical price activity intensity over a user-defined lookback period.
🔄 Customizable Lookback: Adjust the heatmap lookback period to suit your trading style.
🌫️ Transparency Filter: Fine-tune the heatmap’s transparency to filter out less significant areas.
🎨 Color Customization: Choose colors for up, down, and highlight areas to fit your chart’s theme.
🔄 Inverse Heatmap Option: Flip the heatmap to highlight less active areas if needed.
🛠 Add the Indicator: Add the Indicator to favorites. Customize settings like lookback period, transparency filter, and colors to fit your trading style.
📊 Market Analysis: Watch for areas of high price activity indicated by the heatmap to identify potential support and resistance levels.
🔧 How it Works
This script calculates the highest and lowest prices within a specified lookback period and divides the price range into 15 segments. It counts the number of candles that fall within each segment to determine areas of high and low price activity. The script then plots the heatmap on the chart, using varying levels of transparency to indicate the strength of price activity in each segment, providing a clear visual representation of where significant trading occurs.
Stay ahead of the market with this powerful visualization tool and make informed trading decisions! 📈💼
