Dynamic Time Period CandlesThis indicator gives the dynamic history of the current price over various time frames as a series of candles on the right of the display, with optional lines on the chart, so that you can assess the current trend more easily.
In the library I found lots of indicators that looked at the previous xx time period candle, but they then immediately switched to the new xx time candle when it started to be formed. This indicator looks back at the rolling previous time period. With this indicator, you can clearly see how price has been behaving over time.
IMPORTANT SETUP INFO:
Initially, you must go into the settings and select the timeframe (in minutes) that your chart is displaying. If you don't do this then the indicator will look back the wrong number of candles and give you totally wrong results.
You can then setup how high you want the candle labels to be on the chart.
Then you can select settings for each candle that you want displayed. Anywhere between 1 and 5 different timeframes can be displayed on the chart at once.
I initially published an indicator called 'Dynamic 4-Hour Candle (Accurate Highs and Lows)', but this new indicator is so different that it needs to be forked and published as a separate indicator. The reasons for this are below:
The original indicator only looked at the previous 4 hour time period. This indicator allows the user to select any time period that they choose.
The original indicator only looked at one time period. This indicator allows to select between one and five time periods on the chart at once.
The original indicator did not put lines on the chart to show the lookback period and the highs and lows of that time period. This indicator does both those things.
The name of the original indicator in no way now describes what this new indicator is capable of, and would be very misleading to anyone who came across it. This new indicator has a name that much more accurately reflects what its' purpose and functionality is.
تحليل الاتجاه
[ AlgoChart ] - Compare MarketIndicator Description:
This indicator allows you to display a second asset, selectable from the input panel, in a separate window. Plotted on the same time scale as the first asset but with a distinct price scale, the indicator enables analysis of the relationships and relative movements of two financial instruments. It’s an ideal tool for understanding whether two assets move in a correlated or divergent manner.
Key Features:
Multi-Asset Comparison: Display two assets simultaneously to compare their trends.
Custom Scale: Each asset uses its own price scale, making comparative analysis easier.
Intuitive Interface: Easily select the second asset through the input panel.
Operational Applications:
Spread Trading: Identify optimal moments to execute spread trades when two highly correlated instruments move in opposite directions.
Supply & Demand: Pinpoint zones of interest on both assets, increasing the validity of support and resistance areas.
Exposure Reduction: Monitor instruments that move similarly to avoid exposing the portfolio in identical directions, thereby reducing the risk of double losses.
Additional Features:
Candle Color Change: When a directional divergence occurs between the two assets, the candles change color to highlight the event.
Customizable Notifications: Receive instant alerts when a divergence occurs, allowing you to act promptly.
Trend of Multiple Oscillator Dashboard ModifiedDescription: The "Trend of Multiple Oscillator Dashboard Modified" is a powerful Pine Script indicator that provides a dashboard view of various oscillator and trend-following indicators across multiple timeframes. This indicator helps traders to assess trend conditions comprehensively by integrating popular technical indicators, including MACD, EMA, Stochastic, Elliott Wave, DID (Curta, Media, Longa), Price Volume Trend (PVT), Kuskus Trend, and Wave Trend Oscillator. Each indicator’s trend signal (bullish, bearish, or neutral) is displayed in a color-coded dashboard, making it easy to spot the consensus or divergence in trends across different timeframes.
Key Features:
Multi-Timeframe Analysis: Displays trend signals across five predefined timeframes (1, 2, 3, 5, and 10 minutes) for each included indicator.
Customizable Inputs: Allows for customization of key parameters for each oscillator and trend-following indicator.
Trend Interpretation: Each indicator is visually represented with green (bullish), red (bearish), and yellow (neutral) trend markers, making trend identification intuitive and quick.
Trade Condition Controls: Input options for the number of positive and negative conditions needed to trigger entries and exits, allowing users to refine the decision-making criteria.
Delay Management: Options for re-entry conditions based on both price movement (in points) and the minimum number of candles since the last exit, giving users flexibility in managing trade entries.
Usage: This indicator is ideal for traders who rely on multiple oscillators and moving averages to gauge trend direction and strength across timeframes. The dashboard allows users to observe trends at a glance and make informed decisions based on the alignment of various trend indicators. It’s particularly useful in consolidating signals for strategies that require multiple conditions to align before entering or exiting trades.
Note: Ensure that you’re familiar with each oscillator’s functionality, as some indicators like Elliott Wave and Wave Trend are simplified for visual coherence in this dashboard.
Disclaimer: This script is intended for educational and informational purposes only. Use it with caution and adapt it to your specific trading plan.
Developer's Remark: "This indicator's comprehensive design allows traders to filter noise and identify the most robust trends effectively. Use it to visualize trends across timeframes, understand oscillator behavior, and enhance decision-making with a more strategic approach."
Market structureHi all!
This script shows you the market structure. You can choose to show internal market structure (with pivots of a default length of 5) and swing market structure (with pivots of a default length of 50). For these two trends it will show you:
• Break of structure (BOS)
• Change of character (CHoCH) (mandatory)
• Equal high/low (EQH/EQL)
It's inspired by "Smart Money Concepts (SMC) " by LuxAlgo that will also show you the market structure.
It will create the two market structures depending on the pivots found. Both of these market structures can be enabled/disabled. The pivots length can be configured separately. The pivots found will be the 'base' of this indicator and will show you when price breaks it. When that happens a break of structure or a change of character will be created. The latest 5 pivots found within the current trends will be kept to take action on. The internal market structure is shown with dashed lines and swing market structure is shown with solid lines.
A break of structure is removed if an earlier pivots within the same trend is broken. Like in the images below, the first pivot (in the first image) is removed when an earlier pivot's higher price within the same trend is broken (the second image):
Equal high/lows have a pink zone (by default but can be changed by the user). These zones can be configured to be extended to the right (off by default). Equal high/lows are only possible if it's not been broken by price and if a later bar has a high/low within the limit it's added to the zone (without it being more 'extreme' (high or low) then the previous price). A factor (percentage of width) of the Average True Length (of length 14) that the pivot must be within to to be considered an Equal high/low. This is configurable and sets this 'limit' and is 10 by default.
You are able to show the pivots that are used. "HH" (higher high), "HL" (higher low), "LH" (lower high), "LL" (lower low) and "H"/"L" (for pivots (high/low) when the trend has changed) are the labels used.
This script has proven itself useful for me to quickly see how the current market is. You can see the pivots (price and bar) where break of structure or change of character happens to see the current trends. I hope that you will find this useful for you.
When programming I focused on simplicity and ease of read. I did not focus on performance, I will do so if it's a problem (haven't noticed it is one yet).
You can set alerts for when a change of character happens. You can configure it to fire on when it happens (all or once per bar) but it defaults to 'once_per_bar_close' to avoid repainting. This has the drawback to alert you when the bar closes.
TLDR: this is an indicator showing you the market structure (break of structures and change of characters) using swing points/pivots. Two trends can be shown, internal (with pivots of length of 5) and swing (with pivots of the length of 50).
Best of trading luck!
Trend Trader-RemasteredThe script was originally coded in 2018 with Pine Script version 3, and it was in invite only status. It has been updated and optimised for Pine Script v5 and made completely open source.
Overview
The Trend Trader-Remastered is a refined and highly sophisticated implementation of the Parabolic SAR designed to create strategic buy and sell entry signals, alongside precision take profit and re-entry signals based on marked Bill Williams (BW) fractals. Built with a deep emphasis on clarity and accuracy, this indicator ensures that only relevant and meaningful signals are generated, eliminating any unnecessary entries or exits.
Key Features
1) Parabolic SAR-Based Entry Signals:
This indicator leverages an advanced implementation of the Parabolic SAR to create clear buy and sell position entry signals.
The Parabolic SAR detects potential trend shifts, helping traders make timely entries in trending markets.
These entries are strategically aligned to maximise trend-following opportunities and minimise whipsaw trades, providing an effective approach for trend traders.
2) Take Profit and Re-Entry Signals with BW Fractals:
The indicator goes beyond simple entry and exit signals by integrating BW Fractal-based take profit and re-entry signals.
Relevant Signal Generation: The indicator maintains strict criteria for signal relevance, ensuring that a re-entry signal is only generated if there has been a preceding take profit signal in the respective position. This prevents any misleading or premature re-entry signals.
Progressive Take Profit Signals: The script generates multiple take profit signals sequentially in alignment with prior take profit levels. For instance, in a buy position initiated at a price of 100, the first take profit might occur at 110. Any subsequent take profit signals will then occur at prices greater than 110, ensuring they are "in favour" of the original position's trajectory and previous take profits.
3) Consistent Trend-Following Structure:
This design allows the Trend Trader-Remastered to continue signaling take profit opportunities as the trend advances. The indicator only generates take profit signals in alignment with previous ones, supporting a systematic and profit-maximising strategy.
This structure helps traders maintain positions effectively, securing incremental profits as the trend progresses.
4) Customisability and Usability:
Adjustable Parameters: Users can configure key settings, including sensitivity to the Parabolic SAR and fractal identification. This allows flexibility to fine-tune the indicator according to different market conditions or trading styles.
User-Friendly Alerts: The indicator provides clear visual signals on the chart, along with optional alerts to notify traders of new buy, sell, take profit, or re-entry opportunities in real-time.
TrigWave Suite [InvestorUnknown]The TrigWave Suite combines Sine-weighted, Cosine-weighted, and Hyperbolic Tangent moving averages (HTMA) with a Directional Movement System (DMS) and a Relative Strength System (RSS).
Hyperbolic Tangent Moving Average (HTMA)
The HTMA smooths the price by applying a hyperbolic tangent transformation to the difference between the price and a simple moving average. It also adjusts this value by multiplying it by a standard deviation to create a more stable signal.
// Function to calculate Hyperbolic Tangent
tanh(x) =>
e_x = math.exp(x)
e_neg_x = math.exp(-x)
(e_x - e_neg_x) / (e_x + e_neg_x)
// Function to calculate Hyperbolic Tangent Moving Average
htma(src, len, mul) =>
tanh_src = tanh((src - ta.sma(src, len)) * mul) * ta.stdev(src, len) + ta.sma(src, len)
htma = ta.sma(tanh_src, len)
Sine-Weighted Moving Average (SWMA)
The SWMA applies sine-based weights to historical prices. This gives more weight to the central data points, making it responsive yet less prone to noise.
// Function to calculate the Sine-Weighted Moving Average
f_Sine_Weighted_MA(series float src, simple int length) =>
var float sine_weights = array.new_float(0)
array.clear(sine_weights) // Clear the array before recalculating weights
for i = 0 to length - 1
weight = math.sin((math.pi * (i + 1)) / length)
array.push(sine_weights, weight)
// Normalize the weights
sum_weights = array.sum(sine_weights)
for i = 0 to length - 1
norm_weight = array.get(sine_weights, i) / sum_weights
array.set(sine_weights, i, norm_weight)
// Calculate Sine-Weighted Moving Average
swma = 0.0
if bar_index >= length
for i = 0 to length - 1
swma := swma + array.get(sine_weights, i) * src
swma
Cosine-Weighted Moving Average (CWMA)
The CWMA uses cosine-based weights for data points, which produces a more stable trend-following behavior, especially in low-volatility markets.
f_Cosine_Weighted_MA(series float src, simple int length) =>
var float cosine_weights = array.new_float(0)
array.clear(cosine_weights) // Clear the array before recalculating weights
for i = 0 to length - 1
weight = math.cos((math.pi * (i + 1)) / length) + 1 // Shift by adding 1
array.push(cosine_weights, weight)
// Normalize the weights
sum_weights = array.sum(cosine_weights)
for i = 0 to length - 1
norm_weight = array.get(cosine_weights, i) / sum_weights
array.set(cosine_weights, i, norm_weight)
// Calculate Cosine-Weighted Moving Average
cwma = 0.0
if bar_index >= length
for i = 0 to length - 1
cwma := cwma + array.get(cosine_weights, i) * src
cwma
Directional Movement System (DMS)
DMS is used to identify trend direction and strength based on directional movement. It uses ADX to gauge trend strength and combines +DI and -DI for directional bias.
// Function to calculate Directional Movement System
f_DMS(simple int dmi_len, simple int adx_len) =>
up = ta.change(high)
down = -ta.change(low)
plusDM = na(up) ? na : (up > down and up > 0 ? up : 0)
minusDM = na(down) ? na : (down > up and down > 0 ? down : 0)
trur = ta.rma(ta.tr, dmi_len)
plus = fixnan(100 * ta.rma(plusDM, dmi_len) / trur)
minus = fixnan(100 * ta.rma(minusDM, dmi_len) / trur)
sum = plus + minus
adx = 100 * ta.rma(math.abs(plus - minus) / (sum == 0 ? 1 : sum), adx_len)
dms_up = plus > minus and adx > minus
dms_down = plus < minus and adx > plus
dms_neutral = not (dms_up or dms_down)
signal = dms_up ? 1 : dms_down ? -1 : 0
Relative Strength System (RSS)
RSS employs RSI and an adjustable moving average type (SMA, EMA, or HMA) to evaluate whether the market is in a bullish or bearish state.
// Function to calculate Relative Strength System
f_RSS(rsi_src, rsi_len, ma_type, ma_len) =>
rsi = ta.rsi(rsi_src, rsi_len)
ma = switch ma_type
"SMA" => ta.sma(rsi, ma_len)
"EMA" => ta.ema(rsi, ma_len)
"HMA" => ta.hma(rsi, ma_len)
signal = (rsi > ma and rsi > 50) ? 1 : (rsi < ma and rsi < 50) ? -1 : 0
ATR Adjustments
To minimize false signals, the HTMA, SWMA, and CWMA signals are adjusted with an Average True Range (ATR) filter:
// Calculate ATR adjusted components for HTMA, CWMA and SWMA
float atr = ta.atr(atr_len)
float htma_up = htma + (atr * atr_mult)
float htma_dn = htma - (atr * atr_mult)
float swma_up = swma + (atr * atr_mult)
float swma_dn = swma - (atr * atr_mult)
float cwma_up = cwma + (atr * atr_mult)
float cwma_dn = cwma - (atr * atr_mult)
This adjustment allows for better adaptation to varying market volatility, making the signal more reliable.
Signals and Trend Calculation
The indicator generates a Trend Signal by aggregating the output from each component. Each component provides a directional signal that is combined to form a unified trend reading. The trend value is then converted into a long (1), short (-1), or neutral (0) state.
Backtesting Mode and Performance Metrics
The Backtesting Mode includes a performance metrics table that compares the Buy and Hold strategy with the TrigWave Suite strategy. Key statistics like Sharpe Ratio, Sortino Ratio, and Omega Ratio are displayed to help users assess performance. Note that due to labels and plotchar use, automatic scaling may not function ideally in backtest mode.
Alerts and Visualization
Trend Direction Alerts: Set up alerts for long and short signals
Color Bars and Gradient Option: Bars are colored based on the trend direction, with an optional gradient for smoother visual feedback.
Important Notes
Customization: Default settings are experimental and not intended for trading/investing purposes. Users are encouraged to adjust and calibrate the settings to optimize results according to their trading style.
Backtest Results Disclaimer: Please note that backtest results are not indicative of future performance, and no strategy guarantees success.
Volume Flow ConfluenceVolume Flow Confluence (CMF-KVO Integration)
Core Function:
The Volume Flow Confluence Indicator combines two volume-analysis methods: Chaikin Money Flow (CMF) and the Klinger Volume Oscillator (KVO). It displays a histogram only when both indicators align in their respective signals.
Signal States:
• Green Bars: CMF is positive (> 0) and KVO is above its signal line
• Red Bars: CMF is negative (< 0) and KVO is below its signal line
• No Bars: When indicators disagree
Technical Components:
Chaikin Money Flow (CMF):
Measures the relationship between volume and price location within the trading range:
• Calculates money flow volume using close position relative to high/low range
• Aggregates and normalizes over specified period
• Default period: 20
Klinger Volume Oscillator (KVO):
Evaluates volume in relation to price movement:
• Tracks trend changes using HLC3
• Applies volume force calculation
• Uses two EMAs (34/55) with a signal line (13)
Practical Applications:
1. Signal Identification
- New colored bars after blank periods show new agreement between indicators
- Color intensity differentiates new signals from continuations
- Blank spaces indicate lack of agreement
2. Trend Analysis
- Consecutive colored bars show continued indicator agreement
- Transitions between colors or to blank spaces show changing conditions
- Can be used alongside other technical analysis tools
3. Risk Considerations
- Signals are not predictive of future price movement
- Should be used as one of multiple analysis tools
- Effectiveness may vary across different markets and timeframes
Technical Specifications:
Core Algorithm
CMF = Σ(((C - L) - (H - C))/(H - L) × V)n / Σ(V)n
KVO = EMA(VF, 34) - EMA(VF, 55)
Where VF = V × |2(dm/cm) - 1| × sign(Δhlc3)
Signal Line = EMA(KVO, 13)
Signal Logic
Long: CMF > 0 AND KVO > Signal
Short: CMF < 0 AND KVO < Signal
Neutral: All other conditions
Parameters
CMF Length = 20
KVO Fast = 34
KVO Slow = 55
KVO Signal = 13
Volume = Regular/Actual Volume
Data Requirements
Price Data: OHLC
Volume Data: Required
Minimum History: 55 bars
Recommended Timeframe: ≥ 1H
Credits:
• Marc Chaikin - Original CMF development
• Stephen Klinger - Original KVO development
• Alex Orekhov (everget) - CMF script implementation
• nj_guy72 - KVO script implementation
3 CANDLE SUPPLY/DEMANDExplanation of the Code:
Demand Zone Logic: The script checks if the second candle closes below the low of the first candle and the third candle closes above both the highs of the first and second candles.
Zone Plotting: Once the pattern is identified, a demand zone is plotted from the low of the first candle to the high of the third candle, using a dashed green line for clarity.
Markers: A small triangle marker is added below the bars where a demand zone is detected for easy visualization.
Efficient Logic: The script checks the conditions for demand zone formation for every three consecutive candles on the chart.
This approach should be both accurate and efficient in plotting demand zones, making it easier to spot potential support levels on the chart.
Rikki's DikFat Bull/Bear OscillatorRikki's DikFat Bull/Bear Oscillator - Trend Identification & Candle Colorization
Rikki's DikFat Bull/Bear Oscillator is a powerful visual tool designed to help traders easily identify bullish and bearish trends on the chart. By analyzing market momentum using specific elements of the Commodity Channel Index (CCI) , this indicator highlights key trend reversals and continuations with color-coded candles, allowing you to quickly spot areas of opportunity.
How It Works
At the heart of this indicator is the Commodity Channel Index (CCI) , a popular momentum-based oscillator. The CCI measures the deviation of price from its average over a specified period (default is 30 bars). This helps identify whether the market is overbought, oversold, or trending.
Here's how the indicator interprets the CCI:
Bullish Trend (Green Candles) : When the market is showing signs of continued upward momentum, the candles turn green. This happens when the current CCI is less than 200 and moves from a value greater than 100 with velocity, signaling that the upward trend is still strong, and the market is likely to continue rising. Green candles indicate bullish price action , suggesting it might be a good time to look for buying opportunities or hold your current long position.
Bearish Trend (Red Candles) : Conversely, when the CCI shows signs of downward momentum (both the current and previous CCI readings are negative), the candles turn red. This signals that the market is likely in a bearish trend , with downward price action expected to continue. Red candles are a visual cue to consider selling opportunities or to stay out of the market if you're risk-averse.
How to Use It
Bullish Market : When you see green candles, the market is in a bullish phase. This suggests that prices are moving upward, and you may want to focus on buying signals . Green candles are your visual confirmation of a strong upward trend.
Bearish Market : When red candles appear, the market is in a bearish phase. This indicates that prices are moving downward, and you may want to consider selling or staying out of long positions. Red candles signal that downward pressure is likely to continue.
Why It Works
This indicator uses momentum to identify shifts in trend. By tracking the movement of the CCI , the oscillator detects whether the market is trending strongly or simply moving in a sideways range. The color changes in the candles help you quickly visualize where the market momentum is headed, giving you an edge in determining potential buy or sell opportunities.
Clear Visual Signals : The green and red candles make it easy to follow market trends, even for beginners.
Identifying Trend Continuations : The oscillator helps spot ongoing trends, whether bullish or bearish, so you can align your trades with the prevailing market direction.
Quick Decision-Making : By using color-coded candles, you can instantly know whether to consider entering a long (buy) or short (sell) position without needing to dive into complex indicators.
NOTES This indicator draws and colors it's own candles bodies, wicks and borders. In order to have the completed visualization of red and green trends, you may need to adjust your TradingView chart settings to turn off or otherwise modify chart candles.
Conclusion
With Rikki's DikFat Bull/Bear Oscillator , you have an intuitive and easy-to-read tool that helps identify bullish and bearish trends based on proven momentum indicators. Whether you’re a novice or an experienced trader, this oscillator allows you to stay in tune with the market’s direction and make more informed, confident trading decisions.
Make sure to use this indicator in conjunction with your own trading strategy and risk management plan to maximize your trading potential and limit your risks.
Cross-Asset Correlation Trend IndicatorCross-Asset Correlation Trend Indicator
This indicator uses correlations between the charted asset and ten others to calculate an overall trend prediction. Each ticker is configurable, and by analyzing the trend of each asset, the indicator predicts an average trend for the main asset on the chart. The strength of each asset's trend is weighted by its correlation to the charted asset, resulting in a single average trend signal. This can be a rather robust and effective signal, though it is often slow.
Functionality Overview :
The Cross-Asset Correlation Trend Indicator calculates the average trend of a charted asset based on the correlation and trend of up to ten other assets. Each asset is assigned a trend signal using a simple EMA crossover method (two customizable EMAs). If the shorter EMA crosses above the longer one, the asset trend is marked as positive; if it crosses below, the trend is negative. Each trend is then weighted by the correlation coefficient between that asset’s closing price and the charted asset’s closing price. The final output is an average weighted trend signal, which combines each trend with its respective correlation weight.
Input Parameters :
EMA 1 Length : Sets the period of the shorter EMA used to determine trends.
EMA 2 Length : Sets the period of the longer EMA used to determine trends.
Correlation Length : Defines the lookback period used for calculating the correlation between the charted asset and each of the other selected assets.
Asset Tickers : Each of the ten tickers is configurable, allowing you to set specific assets to analyze correlations with the charted asset.
Show Trend Table : Toggle to show or hide a table with each asset’s weighted trend. The table displays green, red, or white text for each weighted trend, indicating positive, negative, or neutral trends, respectively.
Table Position : Choose the position of the trend table on the chart.
Recommended Use :
As always, it’s essential to backtest the indicator thoroughly on your chosen asset and timeframe to ensure it aligns with your strategy. Feel free to modify the input parameters as needed—while the defaults work well for me, they may need adjustment to better suit your assets, timeframes, and trading style.
As always, I wish you the best of luck and immense fortune as you develop your systems. May this indicator help you make well-informed, profitable decisions!
Composite Oscillation Indicator Based on MACD and OthersThis indicator combines various technical analysis tools to create a composite oscillator that aims to capture multiple aspects of market behavior. Here's a breakdown of its components:
* Individual RSIs (xxoo1-xxoo15): The code calculates the RSI (Relative Strength Index) of numerous indicators, including volume-based indicators (NVI, PVI, OBV, etc.), price-based indicators (CCI, CMO, etc.), and moving averages (WMA, ALMA, etc.). It also includes the RSI of the MACD histogram (xxoo14).
* Composite RSI (xxoojht): The individual RSIs are then averaged to create a composite RSI, aiming to provide a more comprehensive view of market momentum and potential turning points.
* MACD Line RSI (xxoo14): The RSI of the MACD histogram incorporates the momentum aspect of the MACD indicator into the composite measure.
* Double EMA (co, coo): The code employs two Exponential Moving Averages (EMAs) of the composite RSI, with different lengths (9 and 18 periods).
* Difference (jo): The difference between the two EMAs (co and coo) is calculated, aiming to capture the rate of change in the composite RSI.
* Smoothed Difference (xxp): The difference (jo) is further smoothed using another EMA (9 periods) to reduce noise and enhance the signal.
* RSI of Smoothed Difference (cco): Finally, the RSI is applied to the smoothed difference (xxp) to create the core output of the indicator.
Market Applications and Trading Strategies:
* Overbought/Oversold: The indicator's central line (plotted at 50) acts as a reference for overbought/oversold conditions. Values above 50 suggest potential overbought zones, while values below 50 indicate oversold zones.
* Crossovers and Divergences: Crossovers of the cco line above or below its previous bar's value can signal potential trend changes. Divergences between the cco line and price action can also provide insights into potential trend reversals.
* Emoji Markers: The code adds emoji markers ("" for bullish and "" for bearish) based on the crossover direction of the cco line. These can provide a quick visual indication of potential trend shifts.
* Colored Fill: The area between the composite RSI line (xxoojht) and the central line (50) is filled with color to visually represent the prevailing market sentiment (green for above 50, red for below 50).
Trading Strategies (Examples):
* Long Entry: Consider a long entry (buying) signal when the cco line crosses above its previous bar's value and the composite RSI (xxoojht) is below 50, suggesting a potential reversal from oversold conditions.
* Short Entry: Conversely, consider a short entry (selling) signal when the cco line crosses below its previous bar's value and the composite RSI (xxoojht) is above 50, suggesting a potential reversal from overbought conditions.
* Confirmation: Always combine the indicator's signals with other technical analysis tools and price action confirmation for better trade validation.
Additional Notes:
* The indicator offers a complex combination of multiple indicators. Consider testing and optimizing the parameters (EMAs, RSI periods) to suit your trading style and market conditions.
* Backtesting with historical data can help assess the indicator's effectiveness and identify potential strengths and weaknesses in different market environments.
* Remember that no single indicator is perfect, and the cco indicator should be used in conjunction with other forms of analysis to make informed trading decisions.
By understanding the logic behind this composite oscillator and its potential applications, you can incorporate it into your trading strategy to potentially identify trends, gauge market sentiment, and generate trading signals.
Supertrend EMA & KNNSupertrend EMA & KNN
The Supertrend EMA indicator cuts through the noise to deliver clear trend signals.
This tool is built using the good old Exponential Moving Averages (EMAs) with a novel of machine learning; KNN (K Nearest Neighbors) breakout detection method.
Key Features:
Effortless Trend Identification: Supertrend EMA simplifies trend analysis by automatically displaying a color-coded EMA. Green indicates an uptrend, red signifies a downtrend, and the absence of color suggests a potential range.
Dynamic Breakout Detection: Unlike traditional EMAs, Supertrend EMA incorporates a KNN-based approach to identify breakouts. This allows for faster color changes compared to standard EMAs, offering a more dynamic picture of the trend.
Customizable Parameters: Fine-tune the indicator to your trading style. Adjust the EMA length for trend smoothing, KNN lookback window for breakout sensitivity, and breakout threshold for filtering noise.
A Glimpse Under the Hood:
Dual EMA Power: The indicator utilizes two EMAs. A longer EMA (controlled by the "EMA Length" parameter) provides a smooth trend direction, while a shorter EMA (controlled by the "Short EMA Length" parameter) triggers color changes, aiming for faster response to breakouts.
KNN Breakout Detection: This innovative feature analyzes price action over a user-defined lookback period (controlled by the "KNN Lookback Length" parameter) to identify potential breakouts. If the price surpasses a user-defined threshold (controlled by the "Breakout Threshold" parameter) above the recent highs, a green color is triggered, signaling a potential uptrend. Conversely, a breakdown below the recent lows triggers a red color, indicating a potential downtrend.
Trading with Supertrend EMA:
Ride the Trend: When the indicator displays green, look for long (buy) opportunities, especially when confirmed by bullish price action patterns on lower timeframes. Conversely, red suggests potential shorting (sell) opportunities, again confirmed by bearish price action on lower timeframes.
Embrace Clarity: The color-coded EMA provides a clear visual representation of the trend, allowing you to focus on price action and refine your entry and exit strategies.
A Word of Caution:
While Supertrend EMA offers faster color changes than traditional EMAs, it's important to acknowledge a slight inherent lag. Breakout detection relies on historical data, and there may be a brief delay before the color reflects a new trend.
To achieve optimal results, consider:
Complementary Tools: Combine Supertrend EMA with other indicators or price action analysis for additional confirmation before entering trades.
Solid Risk Management: Always practice sound risk management strategies such as using stop-loss orders to limit potential losses.
Supertrend EMA is a powerful tool designed to simplify trend identification and enhance your trading experience. However, remember, no single indicator guarantees success. Use it with a comprehensive trading strategy and disciplined risk management for optimal results.
Disclaimer:
While the Supertrend EMA indicator can be a valuable tool for identifying potential trend changes, it's important to note that it's not infallible. Market conditions can be highly dynamic, and indicators may sometimes provide false signals. Therefore, it's crucial to use this indicator in conjunction with other technical analysis tools and sound risk management practices. Always conduct thorough research and consider consulting with a financial advisor before making any investment decisions.
Power Core MAThe Power Core MA indicator is a powerful tool designed to identify the most significant moving average (MA) in a given price chart. This indicator analyzes a wide range of moving averages, from 50 to 400 periods, to determine which one has the strongest influence on the current price action.
The blue line plotted on the chart represents the "Current Core MA," which is the moving average that is most closely aligned with other nearby moving averages. This line indicates the current trend and potential support or resistance levels.
The table displayed on the chart provides two important pieces of information. The "Current Core MA" value shows the length of the moving average that is currently most influential. The "Historical Core MA" value represents the average length of the most influential moving averages over time.
This indicator is particularly useful for traders and analysts who want to identify the most relevant moving average for their analysis. By focusing on the moving average that has the strongest historical significance, users can make more informed decisions about trend direction, support and resistance levels, and potential entry or exit points.
The Power Core MA is an excellent tool for those interested in finding the strongest moving average in the price history. It simplifies the process of analyzing multiple moving averages by automatically identifying the most influential one, saving time and providing valuable insights into market dynamics.
By combining current and historical data, this indicator offers a comprehensive view of the market's behavior, helping traders to adapt their strategies to the most relevant timeframes and trend strengths.
Option Delta CandlesDescription:
The Option Delta Candles with EMA indicator is designed to help traders visualize option delta values as candlesticks, calculated using the Black-Scholes model. It provides a unique way to view the cumulative delta changes in a normalized format, making it easier to identify trends and reversals. The addition of an EMA (Exponential Moving Average) overlay helps smooth out the data for better trend analysis.
Features:
Customizable Inputs:
Risk-Free Interest Rate: Adjust the risk-free rate for more precise option calculations.
Volatility: Input the volatility of the underlying asset to reflect current market conditions.
Strike Price: Enter the desired strike price of the option.
Days to Expiration: Specify the days until the option's expiration.
EMA Length: Modify the length of the EMA to suit different time frames and trading styles.
Visual Styles:
Customizable candle colors for bullish and bearish candles.
Configurable border and wick colors for personalized chart aesthetics.
How It Works:
The indicator uses the Black-Scholes model to calculate the delta of a European call option. Delta measures the sensitivity of the option's price to changes in the price of the underlying asset.
A cumulative delta is calculated and normalized to create candlestick representations, providing a visual cue of how the option delta changes over time.
The scaled delta values are normalized between 0 and 1, allowing for a consistent view of relative strength and weakness.
The EMA overlay helps identify smoothed trends and potential reversals within the delta data.
Applications:
Trend Identification: The indicator helps spot trends and potential reversals in option delta movements.
Volatility Analysis: By visualizing option delta, traders can gain insight into how changes in volatility impact options pricing.
Advanced Analysis: This tool is ideal for options traders and analysts looking to integrate delta analysis into their strategies.
Use Cases:
Traders can use the candlestick view to understand shifts in market sentiment through delta changes.
Options Analysts can visualize delta fluctuations over time, aiding in complex options trading strategies.
Technical Analysts may combine this indicator with other tools to confirm signals and enhance trading decisions.
Indicator Configuration:
Input Settings:
Risk-free interest rate (as a percentage).
Volatility (standard deviation) in percentage.
Strike price of the option.
Days remaining until expiration.
EMA length for trend analysis.
Style Customization:
Select colors for bullish and bearish candles, border, and wicks.
Change the color of the EMA line to distinguish it on the chart.
Release Notes:
Initial Version: Includes full implementation of the Black-Scholes delta calculation with customizable EMA and normalized candlestick view.
Future Updates: Potential additions may include enhancements for put options and integrated alerts.
COIN/ETH RatioThis TradingView indicator calculates and visualizes the ratio between Coinbase's stock price (COIN) and Ethereum's price (ETH) to help traders compare Coinbase's performance relative to Ethereum over time. This can be useful for those interested in understanding correlations or relative strength between a traditional crypto exchange stock and a major cryptocurrency.
Rainbow EMA Areas with Volatility HighlightThe indicator provides traders with an enhanced visual tool to observe price movements, trend strength, and market volatility on their charts. It combines multiple EMAs (Exponential Moving Averages) with color-coded areas to indicate the market’s directional bias and a high-volatility highlight for detecting times of increased market activity.
Explanation of Key Components
Multiple EMAs (Exponential Moving Averages):
Six different EMAs are calculated for various periods (15, 45, 100, 150, 200, 300).
Each EMA period represents a different timeframe, from short-term to long-term trends, providing a well-rounded view of price behavior across different market cycles.
The EMAs are color-coded for easy differentiation:
Green shades indicate bullish trends when prices are above the EMAs.
Red shades indicate bearish trends when prices are below the EMAs.
The space between each EMA is filled with a gradient color, creating a "wave" effect that helps identify the market’s overall direction.
ATR-Based Volatility Detection:
The ATR (Average True Range), a measure of market volatility, is used to assess how much the price is fluctuating. When volatility is high, price movements are typically more significant, indicating potential trading opportunities or times to exercise caution.
The indicator calculates ATR and uses a customizable multiplier to set a high-volatility threshold.
When the ATR exceeds this threshold, it signals that the market is experiencing high volatility.
Visual High Volatility Highlight:
A yellow background appears on the chart during periods of high volatility, giving a subtle but clear visual indication that the market is active.
This highlight helps traders spot potential breakout areas or increased activity zones without obstructing the EMA areas.
Volatility Signal Markers:
Small, red triangular markers are plotted above price bars when high volatility is detected, marking these areas for additional emphasis.
These signals serve as alerts to help traders quickly recognize high volatility moments where price moves may be stronger.
How to Use This Indicator
Identify Trends Using EMA Areas:
Bullish Trend: When the price is above most or all EMAs, and the EMA areas are colored in shades of green, it indicates a strong bullish trend. Traders might look for buy opportunities in this scenario.
Bearish Trend: When the price is below most or all EMAs, and the EMA areas are colored in shades of red, it signals a bearish trend. This condition can suggest potential sell opportunities.
Consolidation or Neutral Trend: If the price is moving within the EMA bands without a clear green or red dominance, the market may be in a consolidation phase. This period often precedes a breakout in either direction.
Volatility-Based Entries and Exits:
High Volatility Areas: The yellow background and red triangular markers signal high-volatility areas. This information can be valuable for identifying potential breakout points or strong moves.
Trading in High Volatility: During high-volatility phases, the market may experience rapid price changes, which can be ideal for breakout trades. However, high volatility also involves higher risk, so traders may adjust their strategies accordingly (e.g., setting wider stops or adjusting position sizes).
Trading in Low Volatility: When the yellow background and markers are absent, volatility is lower, indicating a calmer market. In these times, traders may choose to look for range-bound trading opportunities or wait for the next trend to develop.
Combining with Other Indicators:
This indicator works well in combination with momentum or oscillating indicators like RSI or MACD, providing a well-rounded view of the market.
For example, if the indicator shows a bullish EMA area with high volatility, and an RSI is trending up, it could be a stronger buy signal. Conversely, if the indicator shows a bearish EMA area with high volatility and RSI is trending down, this could be a stronger sell signal.
Practical Trading Examples
Bullish Trend in High Volatility:
Price is above the EMAs, showing green EMA areas, and the high volatility background is active.
This indicates a strong bullish trend with significant price movement potential.
A trader could look for breakout or continuation entries in the direction of the trend.
Bearish Reversal Signal:
Price crosses below the EMAs, showing red EMA areas, while high volatility is also detected.
This suggests that the market may be reversing to a bearish trend with increased price movement.
Traders could consider taking short positions or setting stops on existing long trades.
This indicator is designed to provide a rich visual experience, making it easy to spot trends, consolidations, and volatility zones at a glance. It is best used by traders who benefit from visual cues and who seek a quick understanding of both trend direction and market activity. Let me know if you'd like further customization or additional functionalities!
Support & Resistance AI LevelScopeSupport & Resistance AI LevelScope
Support & Resistance AI LevelScope is an advanced, AI-driven tool that automatically detects and highlights key support and resistance levels on your chart. This indicator leverages smart algorithms to pinpoint the most impactful levels, providing traders with a precise, real-time view of critical price boundaries. Save time and enhance your trading edge with effortless, intelligent support and resistance identification.
Key Features:
AI-Powered Level Detection: The LevelScope algorithm continuously analyzes price action, dynamically plotting support and resistance levels based on recent highs and lows across your chosen timeframe.
Sensitivity Control: Customize the sensitivity to display either major levels for a macro view or more frequent levels for detailed intraday analysis. Easily adjust to suit any trading style or market condition.
Level Strength Differentiation: Instantly recognize the strength of each level with visual cues based on how often price has touched each one. Stronger levels are emphasized, highlighting areas with higher significance, while weaker levels are marked subtly.
Customizable Visuals: Tailor the look of your chart with customizable color schemes and line thickness options for strong and weak levels, ensuring clear visibility without clutter.
Proximity Alerts: Receive alerts when price approaches key support or resistance, giving you a heads-up for potential market reactions and trading opportunities.
Who It’s For:
Whether you're a day trader, swing trader, or just want a quick, AI-driven way to identify high-probability levels on your chart, Support & Resistance AI LevelScope is designed to keep you focused and informed. This indicator is the perfect addition to any trader’s toolkit, empowering you to make more confident, data-backed trading decisions with ease.
Upgrade your analysis with AI-powered support and resistance—no more manual lines, only smart levels!
Volumetric Rejection Blocks [UAlgo]The Volumetric Rejection Blocks is designed to help traders identify and visualize key price levels where volumetric rejections occur, which may indicate a shift in market sentiment. These rejections can signal potential trend reversals or areas where price action is likely to face support or resistance. By drawing rejection blocks based on volumetric strength, the indicator allows users to observe where significant buying or selling pressure has been exerted, which can be used as a reference point for future price action.
Also indicator dynamically calculates swing highs and lows, analyzes bullish and bearish strengths based on volume-weighted price movements, and displays rejection blocks on the chart. Each rejection block represents an area where the price attempted to move beyond a certain level but faced rejection, either on a close or wick basis. This can be particularly useful for traders who rely on market structure and order flow to make informed decisions about entering or exiting trades.
🔶 Key Features
Swing Length Customization: Allows users to define the swing length, helping tailor the sensitivity of the swing high and low detection to the specific market conditions.
Rejection Block Visualization: Displays up to the last 10 rejection blocks based on user settings, clearly marking areas of significant bullish or bearish rejections.
Volumetric Strength Analysis: The indicator calculates bullish and bearish strength for each rejection block, based on volume-weighted price movements over the last few bars, giving insight into the intensity of the rejection.
Violation Check Type: Offers two options for violation detection—"Close" and "Wick". This allows traders to specify whether a price level is considered broken only if it closes beyond the level or if any wick breaches it.
Bullish and Bearish Block Coloring: Rejection blocks are colored to represent bullish (green) and bearish (red) rejection areas. The color transparency can be adjusted for clear visibility overlaid on the price chart.
Market Structure Labels: Labels and lines marking "Market Structure Shift" (MSS) and "Break of Structure" (BOS) are displayed, giving traders context about significant market structure changes.
🔶 Interpreting the Indicator
Rejection Blocks: These colored blocks on the chart indicate areas where the price faced significant buying or selling pressure. A green block suggests a bullish rejection (support zone), where buyers absorbed the sell-off, potentially pushing the price upward. Conversely, a red block indicates a bearish rejection (resistance zone), where sellers overpowered buyers, potentially driving the price lower.
Strength Analysis: The width of the green and red sections within a rejection block represents the relative bullish and bearish strengths. A wider green section indicates stronger bullish support, while a wider red section suggests more robust bearish resistance. This helps traders gauge the likelihood of price holding or breaching these levels.
Market Structure Shift (MSS) and Break of Structure (BOS): The indicator automatically detects and labels significant changes in market structure. An "MSS" label indicates the first break, suggesting a potential shift in trend direction. A "BOS" label indicates a subsequent confirmation in trend direction, allowing traders to recognize potential trend continuations.
Violation Check: Traders can choose how to interpret breaks of these rejection blocks. Using the "Close" option provides a more conservative approach, requiring a close beyond the level for confirmation. The "Wick" option is more aggressive, treating any wick beyond the level as a break.
🔶 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.
Inversion Fair Value Gap Oscillator | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Inversion Fair Value Gap Oscillator (IFVG Oscillator) indicator! This unique indicator identifies and tracks Inversion Fair Value Gaps (IFVGs) in price action, presenting them in an oscillator format to reveal market momentum based on IFVG strength. It highlights bullish and bearish IFVGs while enabling traders to adjust detection sensitivity and apply volume and ATR-based filters for more precise setups. For more information about the process, check the "📌 HOW DOES IT WORK" section.
Features of the new IFVG Oscillator:
Fully Customizable FVG & IFVG Detection
An Oscillator Approach To IFVGs
Divergence Markers For Potential Reversals
Alerts For Divergence Labels
Customizable Styling
📌 HOW DOES IT WORK?
Fair Value Gaps are price gaps within bars that indicate inefficiencies, often filled as the market retraces. An Inversion Fair Value Gap is created in the opposite direction once a FVG gets invalidated. The IFVG Oscillator scans historical bars to identify these gaps, then filters them based on ATR or volume. Each IFVG is marked as bullish or bearish according to the opposite direction of the original FVG that got invalidated.
An oscillator is calculated using recent IFVGs with this formula :
1. The Oscillator starts as 0.
2. When a new IFVG Appears, it contributes (IFVG Width / ATR) to the oscillator of the corresponding type.
3. Each confirmed bar, the oscillator is recalculated as OSC = OSC * (1 - Decay Coefficient)
The oscillator aggregates and decays past IFVGs, allowing recent IFVG activity to dominate the signal. This approach emphasizes current market momentum, with oscillations moving bullish or bearish based on IFVG intensity. Divergences are marked where IFVG oscillations suggest potential reversals. Bullish Divergence conditions are as follows :
1. The current candlestick low must be the lowest of last 25 bars.
2. Net Oscillator (Shown in gray line by default) must be > 0.
3. The current Bullish IFVG Oscillator value should be no more than 0.1 below the highest value from the last 25 bars.
Traders can use divergence signals to get an idea of potential reversals, and use the Net IFVG Oscillator as a trend following marker.
🚩 UNIQUENESS
The Inversion Fair Value Gap Oscillator stands out by converting IFVG activity into an oscillator format, providing a momentum-based visualization of IFVGs that reveals market sentiment dynamically. Unlike traditional indicators that statically mark IFVG zones, the oscillator decays older IFVGs over time, showing only the most recent, relevant activity. This approach allows for real-time insight into market conditions and potential reversals based on oscillating IFVG strength, making it both intuitive and powerful for momentum trading.
Another unique feature is the combination of customizable ATR and volume filters, letting traders adapt the indicator to match their strategy and market type. You can also set-up alerts for bullish & bearish divergences.
⚙️ SETTINGS
1. General Configuration
Decay Coefficient -> The decay coefficient for oscillators. Increasing this setting will result in oscillators giving the weight to recent IFVGs, while decreasing it will distribute the weight equally to the past and recent IFVGs.
2. Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
3. Inversion Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for IFVG Zone Invalidation.
4. Style
Divergence Labels On -> You can switch divergence labels to show up on the chart or the oscillator plot.
Engulfing BoxThe Engulfing Box indicator is a custom script designed to visually highlight and track bullish and bearish engulfing candlestick patterns on a price chart. These patterns are often used to identify potential reversal points, making them valuable for technical analysis. The script dynamically draws colored boxes around these patterns, helping users easily spot them in the price action.
Key Features:
Bullish Engulfing Pattern: When a candlestick fully engulfs the previous bearish candle (i.e., the close of the current candle is higher than the open of the previous candle, and the open is lower than the close of the previous candle), the script draws a green box around the bullish engulfing candle. This box is drawn from the open of the previous candle to the low of the previous candle.
Bearish Engulfing Pattern: When a candlestick fully engulfs the previous bullish candle (i.e., the close of the current candle is lower than the open of the previous candle, and the open is higher than the close of the previous candle), a red box is drawn around the bearish engulfing candle. This box is drawn from the open of the previous candle to the high of the previous candle.
Dynamic Box Management: Once an engulfing pattern is detected, a box is drawn with the following attributes:
Bullish Engulfing Box: Green, with a transparent background.
Bearish Engulfing Box: Red, with a transparent background.
The box will adjust its color to gray if the price moves past certain thresholds, indicating that the engulfing pattern may no longer be as relevant.
Max Pattern Tracking: The script limits the number of engulfing boxes tracked on the chart to prevent clutter. The maximum number of bullish and bearish engulfing patterns shown is customizable (set to 500 by default), and once this limit is exceeded, older boxes are deleted to maintain a clean chart.
Pattern Expiry: Boxes are deleted if price action moves beyond the pattern’s range, ensuring that outdated signals are removed. If the low price falls below the bottom of the bullish engulfing box, or the high price rises above the top of the bearish engulfing box, the respective box is removed. Additionally, if the low price moves below the top of the bullish box or the high price exceeds the bottom of the bearish box, the box's color is changed to a more neutral tone.
How it Works:
Pattern Detection: The script compares the current price data with the previous candlestick to detect the bullish or bearish engulfing patterns.
Box Creation: If a pattern is detected, a colored box is drawn around the candle to visually highlight the pattern.
Pattern Expiry and Cleanup: The script continuously monitors past boxes. If the price moves too far from the box’s range, the box is either deleted or altered to reflect the reduced significance of the pattern.
B ox Count Limit: To avoid clutter, the script ensures that no more than 500 bullish or bearish engulfing boxes are shown at any time.
Customization:
The number of previous bars to scan for engulfing patterns can be adjusted (maxBarsback).
The maximum number of patterns displayed at any time can be modified.
Simplified MetroThis is a derivative of J. Welles Wilder's RSI (Relative Strength Index) from 1978. This version uses a fast and slow offset of the RSI to create signals. The RSI itself has been removed from this version for visual simplicity, but its setting still has an impact on the fast and slow stepped lines.
The "RSI Period" sets the number of bars used to calculate the RSI. A higher value results in a smoother RSI, while a lower value makes it more reactive to price changes.
The "Fast Step Size" defines the step size for the fast trend line. A larger value makes the fast step line less sensitive to RSI changes, creating a smoother line.
The "Slow Step Size" defines the step size for the slow trend line. A larger value makes the slow step line less sensitive to RSI changes, resulting in a smoother line compared to the fast step.
When the faster blue line crosses and closes above the slower fuchsia line we have a signal to go long, and vice versa we take a short position.
This indicator should not be traded on its own, but could be a valuable addition to a system used for identifying trends.
Alex JMA RSX Clone with Price & Divergence [LazyBear]Indicator Description:
RSX Indicator (RSXC_LB): This script is based on a clone of the JMA RSX (Relative Strength Index clone by LazyBear). It is a momentum-based indicator that helps identify overbought and oversold levels, as well as potential trend reversals.
Functional Changes:
Convergence is now marked with a white line on the RSX plot.
Bullish Divergence is marked with a green line, indicating potential upward movement.
Bearish Divergence is marked with a red line, indicating potential downward movement.
The default state is marked with a blue line.
Strong Divergences (both bullish and bearish) are highlighted with triangle markers on the chart.
Updated Features:
The script now visualizes convergence and divergence more clearly using distinct colors:
White: Convergence (indicates potential trend strength).
Green: Bullish divergence (possible price increase).
Red: Bearish divergence (possible price decrease).
Blue: Neutral/default state.
Triangle markers indicate strong divergences, making it easier for the user to spot critical moments.
This visual enhancement aims to provide clearer and more intuitive signals for traders using the RSX indicator, helping them identify trend changes and reversals more effectively.
Probabilistic Trend Oscillator** MACD PLOTS ARE NOT PART OF THE INDICATOR IT IS FOR COMPARSION**
The "Probabilistic Trend Oscillator" is a technical indicator designed to measure trend strength and direction by analyzing price behavior relative to a moving average over both long-term and short-term periods. This indicator incorporates several innovative features, including probabilistic trend detection, enhanced strength scaling, and percentile-based thresholds for identifying potential trend reversals.
Key Components
Inputs:
The indicator allows users to customize several key parameters:
EMA Length defines the period for the Exponential Moving Average (EMA), which serves as a baseline to classify trend direction.
Long and Short Term Lengths provide customizable periods for analyzing trend strength over different timeframes.
Signal Line Length is used to smooth the trend strength data, helping users spot more reliable trend signals.
Extreme Value Lookback Length controls how far back to look when calculating percentile thresholds, which are used to identify overbought and oversold zones.
Trend Classification:
The indicator categorizes price behavior into four conditions:
Green: Price closes above the open and is also above the EMA, suggesting a strong upward trend.
Red: Price closes below the open but is above the EMA, indicating weaker upward pressure.
Green1: Price closes above the open but remains below the EMA, representing weak upward movement.
Red1: Price closes below the open and the EMA, signaling a strong downward trend.
Trend Strength Calculation:
The script calculates long-term and short-term trend values based on the frequency of these trend conditions, normalizing them to create probabilistic scores.
It then measures the difference between the short-term and long-term trend values, creating a metric that reflects the intensity of the current trend. This comparison provides insight into whether the trend is strengthening or weakening.
Enhanced Trend Strength:
To emphasize significant movements, the trend strength metric is scaled by the average absolute price change (distance between close and open prices). This creates an "enhanced trend strength" value that highlights periods with high momentum.
Users can toggle between two variations of trend strength:
Absolute Trend Strength is a straightforward measure of the trend's force.
Relative Trend Strength accounts for deviations between short term and long term values, focusing on how current price action differs from a long term behavior.
Percentile-Based Thresholds:
The indicator calculates percentile thresholds over the specified lookback period to mark extreme values:
The 97th and 3rd percentiles act as overbought and oversold zones, respectively, indicating potential reversal points.
Intermediate levels (75th and 25th percentiles) are added to give additional context for overbought or oversold conditions, creating a probabilistic range.
Visualization:
The selected trend strength value (either absolute or relative) is plotted in orange.
Overbought (green) and oversold (red) percentiles are marked with dashed lines and filled in blue, highlighting potential reversal zones.
The signal line—a smoothed EMA of the trend strength—is plotted in white, helping users to confirm trend changes.
A gray horizontal line at zero acts as a baseline, further clarifying the strength of upward vs. downward trends.
Summary
This indicator provides a flexible, probabilistic approach to trend detection, allowing users to monitor trend strength with customizable thresholds and lookback periods. By combining percentile-based thresholds with enhanced trend strength scaling, it offers insights into market reversals and momentum shifts, making it a valuable tool for both trend-following and counter-trend trading strategies.
