Combined + Reversal By Demirkan

This indicator is a comprehensive tool designed to identify potential trend reversals, trend direction, and entry/exit points by combining multiple technical analysis instruments. It includes the following components:

Two Reversal Lines (Based on Donchian Channel): Two lines with different periods indicate potential support/resistance levels and trend changes.

Hull Moving Average (HMA): A smoother, less lagging moving average helps determine trend direction and short-term momentum.

Fibonacci Level: A dynamic Fibonacci retracement level, calculated based on the highest high and lowest low over a specific period, serves as a potential support or area of interest.

Signal Generation: Produces Buy/Sell signals based on the crossovers and conditions of these components.

Visual Aids: Enhances interpretation by coloring the area between lines, coloring candlesticks, and adding labels.

Detailed Component Description:

Input Parameters (Settings):

Reversal Line 1 Length (Default: 100): The period (number of bars) used to calculate the first reversal line. Longer periods capture slower, more significant trends.

Reversal Line 2 Length (Default: 33): The period used to calculate the second reversal line. Shorter periods react to faster, shorter-term changes.

HMA Length (Default: 100): The period for calculating the Hull Moving Average.

Source (Default: close): The price source used for all calculations (close, open, high, low, etc.).

Reversal Line Bar Offset (Default: 3): Determines how many bars forward the Reversal Lines are shifted on the chart. This can make signals appear slightly earlier (or later, depending on the strategy). 0 means no shift.

Fibonacci Level (Default: 0.382): Specifies the Fibonacci retracement level (between 0.0 and 1.0). Common levels like 0.382, 0.5, 0.618 can be used.

Lookback Period (Default: 20): The period (number of bars) over which to look back for the highest high and lowest low to calculate the Fibonacci level.

Price Margin (Default: 0.005): Tolerance (as a percentage) determining how close the price needs to be to the Fibonacci level to be considered "at the level". E.g., 0.005 = 0.5%. If the price is within 0.5% of the calculated Fibonacci level, the condition is met.

Calculations:

donchian(len) Function: Calculates the average (math.avg) of the highest high (ta.highest) and lowest low (ta.lowest) over a specific period (len). This is effectively the midline of a classic Donchian Channel and is used here as the "Reversal Line".

Reversal Lines (conversionLine1, conversionLine2): Calculated using the donchian function based on the user-defined conversionPeriods1 and conversionPeriods2 lengths.

Hull Moving Average (hullMA): Calculated using the hma function. This function uniquely combines Weighted Moving Averages (WMA) to achieve less lag.

Fibonacci Level Calculation (fibLevel1, isAtFibLevel): Finds the highest high and lowest low within the lookbackPeriod, calculates the range (priceRange). fibLevel1 is determined by subtracting priceRange * fibLevel from the highest high (representing a retracement level). isAtFibLevel checks if the current closing price is within the priceMargin tolerance of the calculated fibLevel1.

Visual Elements (Plots/Drawing):

plot(conversionLine1[barOffset], ...): Plots the first reversal line in blue, shifted forward by barOffset.

plot(conversionLine2[barOffset], ...): Plots the second reversal line in black, shifted forward by barOffset.

plot(hullMA, ...): Plots the Hull Moving Average in orange.

plot(fibLevel1, ...): Plots the calculated Fibonacci level as a light blue, dashed line.

fill(...): Fills the area between the two (shifted) reversal lines. The area is colored blue if conversionLine1 > conversionLine2 (often interpreted as bullish) and red otherwise (bearish). The color transparency is set to 90 (almost opaque).

label.*: Adds labels at trend change points. A "Buy" label appears when the area turns blue (Line 1 crosses above Line 2), and a "Sell" label appears when it turns red (Line 1 crosses below Line 2). Labels appear once when the trend starts and are updated/deleted when the trend changes.

plotshape(...): Plots shapes (arrows/labels) on the chart when specific conditions are met:

Reversal Crossover Signals: A green up arrow (shape.labelup) appears when conversionLine2 crosses above conversionLine1 (Buy Signal - buySignal). A red down arrow (shape.labeldown) appears when conversionLine1 crosses below conversionLine2 (Sell Signal - sellSignal).

Hull MA Signals: A green up arrow (hullBuySignal) appears when the price closes above the HMA after being below it. A red down arrow (hullSellSignal) appears when the price closes below the HMA after being above it.

Fibonacci Buy Signal: A purple up arrow (fibBuySignal) appears when both the price is near the calculated Fibonacci level (isAtFibLevel) and a Hull MA Buy signal (hullBuySignal) occurs simultaneously. This signifies a "confluence" signal.

barcolor(...): Changes the color of the candlesticks. Bars turn blue on a Hull MA Buy signal (hullBuySignal) and red on a Hull MA Sell signal (hullSellSignal). Otherwise, the bar color remains the default chart color.

How to Use / Interpret:

Trend Direction:

Observe the color of the filled area between the reversal lines (Blue = Uptrend, Red = Downtrend).

Note whether the price is above or below the Hull MA.

Consider the slope of the Hull MA (upward or downward).

Entry/Exit Signals:

Aggressive: Use the crossovers of the reversal lines (buySignal, sellSignal). Green arrow suggests buy, red arrow suggests sell.

Trend Following: Use the HMA crossovers (hullBuySignal, hullSellSignal). Green arrow suggests buy, red arrow suggests sell. The bar colors also confirm these signals visually.

Confirmed Buy: Look for the Fibonacci Buy Signal (Purple arrow). When the price reaches a potential support level (Fibonacci) and simultaneously gets an HMA Buy signal, it can be considered a stronger buy indication.

Support/Resistance:

The reversal lines themselves can act as dynamic support/resistance levels.

The plotted Fibonacci level (fibLevel1) can be monitored as a potential retracement and support zone.

Strategy:

Confluence (multiple signals aligning) can increase confidence. For example, a buySignal or hullBuySignal occurring while the HMA is pointing up and the fill area is blue might be considered stronger.

Adjust the barOffset parameter to fine-tune the timing of the visual signals according to your trading style.

Use the Fibonacci Buy signal to potentially find entry points after pullbacks in an uptrend or near potential bottoms after a decline.

Important Notes:

No single indicator provides 100% accurate signals. It's crucial to use this indicator in conjunction with other analysis methods (price action, chart patterns, volume, etc.) and sound risk management strategies.

The indicator's performance might vary in different market conditions (trending, sideways) and across different timeframes. Backtesting before live trading is recommended.

The barOffset value shifts the plotting of the lines forward visually but does not change the time at which the underlying calculation occurs (it's still based on the data up to the current closing bar).