[blackcat] L1 Fibonacci MA Band

3 feb 2024

The true charm of the Fibonacci moving average band lies not only in its predictive ability. Its essence is that it combines the beauty of mathematics with the practicality of market analysis, providing traders with a powerful tool to optimize trading strategies. It's not a simple number game, but a wisdom that sees into the deeper structure of the market.

Next, we will delve into the core technical indicators of the Fibonacci moving average band - WHALES, RESOLINE, STICKLINE functions, and TRENDLINE, as well as their clever applications. The WHALES indicator, with its 12-period exponential moving average, captures short-term market trends; the RESOLINE indicator, through the 120-period EMA, reveals mid-term market movements; the STICKLINE function, distinguishes the relationship between WHALES and RESOLINE with colors, providing clear visual aids; while TRENDLINE, combining price slope with EMA, depicts more detailed market changes for traders.

The integrated application of these indicators has built a multi-dimensional market analysis framework for traders. They help traders examine the market from different angles, judge the market status more accurately, and make wiser decisions in the ever-changing market environment. The Fibonacci moving average band indicator is like a lighthouse, emitting guiding light in the ocean of trader's navigation.

1. `xsl(src, len)` function: This function calculates a value called the linear regression slope. Len defines the length of the linear regression. Then, this function normalizes the difference between the current value of the linear regression and the previous value. The formula is `(lrc - lrprev) / timeframe.multiplier`.
2. `whales`, `resoline`, and `trendline` are Exponential Moving Averages (EMA) calculated in different ways. "whales" is the 13-period closing price EMA, "resoline" is the 144-period closing price EMA, and "trendline" is a more complicated EMA. It is the 50-period EMA calculated by the 21-period closing price slope multiplied by 23 plus the closing price.
3. The `plotcandle` function draws two sets of candlestick charts. One set shows in blue when "whales" is greater than "resoline", and the other set shows in green when "whales" is less than "resoline".
4. The `plot` function draws three lines: "whales", "resoline", and "trendline". "whales" is displayed in orange with a line thickness of 2. "resoline" is displayed in yellow with a line thickness of 1. "trendline" is displayed in red with a line thickness of 3.
5. The last line draws a conditional line. When the closing price is less than the "trendline", the green "trendline" is drawn, otherwise, it is not drawn. This is a logical judgment, the drawing operation is only executed when the condition is met.

26 apr

Note di rilascio

OVERVIEW
The [blackcat] L1 Fibonacci MA Band indicator combines Moving Averages (MA) and Fibonacci principles to provide traders with a comprehensive view of market trends and potential reversal points. This script calculates three key moving averages: Whale, Resistance, and Trendline, which are then plotted on the chart along with conditional candlesticks and labels. It also generates alerts for buy and sell signals, helping traders make informed decisions 📈💹.

FEATURES

Calculates and plots three main moving averages:
Whale Moving Average: Short-term Exponential Moving Average (EMA).
Resistance Moving Average: Longer-term EMA.
Trendline Moving Average: Slope-based EMA indicating trend direction.
Displays conditional candlesticks based on the relationship between Whale and Resistance MAs:
Blue candlesticks when Whale MA is above Resistance MA.
Green candlesticks when Whale MA is below Resistance MA.
Plots distinct lines for each moving average with customizable colors and styles 🎨
Adds buy ('BUY') and sell ('SELL') labels on the chart for quick identification 🏷️
Generates alerts based on crossover events between the close price and Whale MA 🔔
HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Monitor the chart for blue and green candlesticks indicating the current trend.
Observe the plotted moving averages for additional context on market momentum.
Look for buy and sell labels to identify potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
LIMITATIONS

The indicator relies heavily on moving averages, which might lag behind rapid price movements 🌪️.
False signals can occur in highly volatile or ranging markets.
Users should always confirm signals with other forms of analysis before making trading decisions.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize the appearance and parameters as needed to fit your trading strategy.