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Power Play Signal Indicator [Masky18]

Power Play Signal Indicator [Masky18]

The Power Play Signal Indicator is a sophisticated custom trading strategy designed to identify high-probability breakout and breakdown opportunities by combining consolidation detection, trend alignment, volume analysis, and relative strength ranking. Unlike simple mashups of existing indicators, this script integrates multiple technical concepts into a cohesive strategy that helps traders capitalize on market momentum with precision.

What Makes This Indicator Unique?

The PowerPlay Signal Indicator is not just a combination of existing indicators; it is a custom-built strategy that uses original logic to filter out low-probability setups and focus on high-quality trading opportunities. Here’s how it works:

Consolidation Detection:

The script identifies consolidation zones by analyzing price action over a user-defined period (default: 6 bars). It calculates the high, low, and midpoint of the consolidation range and ensures the price stays within a specified percentage range (default: 13%).

Consolidations are classified as Tight, Loose, or Okay, helping traders gauge the strength of the potential breakout or breakdown.

Breakout & Breakdown Logic:

Breakouts and breakdowns are confirmed using a combination of:

Price Action: The script checks if the price closes above the consolidation high (breakout) or below the consolidation low (breakdown).
Volume Analysis: A significant volume spike (default: 20% increase) is required to confirm the move.
MACD & Moving Averages: The script uses MACD and moving averages (50-day and 200-day) to ensure the breakout/breakdown aligns with the prevailing trend.

Trend Alignment:

The script ensures trades are aligned with the long-term trend by using:

50-day SMA and 200-day SMA to confirm uptrends or downtrends.
150-day SMA as an additional filter to ensure the trend is strong.
52-week high/low conditions to ensure the price is in a favorable position relative to its historical range.

Relative Strength Ranking:

The script compares the asset’s performance against a benchmark asset (e.g., SPY) to ensure it is outperforming the market. This is done using a customizable Relative Strength (RS) Threshold (default: 70).

Golden Candle Signals:

For high-probability setups, the script identifies Golden Candles—strong breakout or breakdown candles with:

Large price movement (default: 7.5% to 12.5% candle size).
High volume (default: 2x the average consolidation volume).
Alignment with MACD and moving averages.

Risk Management:

The script provides stop loss, trailing stop, and take profit levels based on:

ATR (Average True Range): Dynamic stop loss levels are calculated using ATR (default: 14-period ATR with a 2x multiplier).
Trailing Stop Percentage: User-defined trailing stop (default: 2%).
Take Profit Percentage: User-defined take profit (default: 5%).

Performance Tracking:

The script includes a Performance Table that tracks:

Total breakouts and breakdowns.
Successful and failed trades.
Win rates for breakouts and breakdowns.
Golden candle signals.

How Does It Work?

The PowerPlay Signal Indicator combines the following key components to generate signals:

Consolidation Detection:

The script calculates the high, low, and midpoint of the consolidation range over a user-defined period.
It ensures the price stays within a specified percentage range (default: 13%) to confirm consolidation.

Breakout/Breakdown Confirmation:

A breakout is confirmed when:

The price closes above the consolidation high.
Volume increases by at least 20%.
MACD is positive and above the signal line.
The price is above the 50-day and 200-day SMAs.

A breakdown is confirmed when:

The price closes below the consolidation low.
Volume increases by at least 20%.
MACD is negative and below the signal line.
The price is below the 50-day and 200-day SMAs.

Golden Candle Signals:

Golden Candles are identified when:

The candle size is between 7.5% and 12.5%.
Volume is at least 2x the average consolidation volume.
The candle aligns with the prevailing trend and MACD.

Risk Management:

Stop loss levels are calculated using ATR (default: 14-period ATR with a 2x multiplier).
Trailing stop and take profit levels are based on user-defined percentages.

How to Use the Indicator

Input Parameters:

Consolidation Periods: Set the number of bars to analyze for consolidation (default: 6).
Maximum Consolidation Range: Define the maximum percentage range for consolidation (default: 13%).
Stop Loss Factor: Adjust the stop loss multiplier based on the midpoint of the consolidation range (default: 0.985).
RS Threshold: Set the relative strength threshold for trend alignment (default: 70).
Comparison Asset: Enable comparison with a benchmark asset (e.g., SPY) to ensure the asset is outperforming the market.
Trailing Stop Percentage: Set the trailing stop percentage (default: 2%).
Take Profit Percentage: Set the take profit percentage (default: 5%).
Time Exit Bars: Define the maximum number of bars to hold a trade (default: 10).

Interpreting Signals:

Breakout Signal: A green label ("BO") appears when a breakout is detected.
Breakdown Signal: A red label ("BD") appears when a breakdown is detected.
Golden Candle Signal: A gold medal icon (🥇) appears for high-probability setups.

Performance Table:

The performance table displays the number of trades, successful trades, failed trades, and win rates for breakouts and breakdowns.

Alerts:

Enable alerts for breakouts, breakdowns, and golden candles to stay informed about potential trading opportunities.

Why Choose the PowerPlay Signal Indicator?

Original Logic: Combines consolidation detection, trend alignment, volume analysis, and relative strength ranking into a unique strategy.
High-Probability Signals: Focuses on high-quality setups with strong volume and trend alignment.
Risk Management: Built-in stop loss, trailing stop, and take profit options help you manage risk effectively.
Performance Tracking: Tracks trade outcomes and win rates to help you refine your strategy.
Customizable: Fully adjustable inputs allow you to adapt the indicator to your trading style and market conditions.

Note di rilascio

Power Play Signal Indicator [Masky18]

The Power Play Signal Indicator is a sophisticated trading tool designed to identify high-probability breakout and breakdown opportunities by combining consolidation detection, trend alignment, volume analysis, and relative strength ranking. Unlike simple mashups of existing indicators, this script integrates multiple technical concepts into a cohesive strategy that helps traders capitalize on market momentum with precision.

What Makes This Indicator Unique?

The PowerPlay Signal Indicator is not just a combination of existing indicators; it is a custom-built strategy that uses original logic to filter out low-probability setups and focus on high-quality trading opportunities. Here’s how it works:

Consolidation Detection:

The script identifies consolidation zones by analyzing price action over a user-defined period (default: 6 bars). It calculates the high, low, and midpoint of the consolidation range and ensures the price stays within a specified percentage range (default: 13%).

Consolidations are classified as Tight, Loose, or Okay, helping traders gauge the strength of the potential breakout or breakdown.

Breakout & Breakdown Logic:

Breakouts and breakdowns are confirmed using a combination of:

Price Action: The script checks if the price closes above the consolidation high (breakout) or below the consolidation low (breakdown).
Volume Analysis: A significant volume spike (default: 20% increase) is required to confirm the move.
MACD & Moving Averages: The script uses MACD and moving averages (50-day and 200-day) to ensure the breakout/breakdown aligns with the prevailing trend.