ATR-Based Trailing Stop Loss The Logical Trading Indicator V.1 utilizes the Average True Range (ATR) to implement a dynamic trailing stop loss. You can customize the sensitivity of your alerts by adjusting the ATR Multiple and ATR Period settings.
Higher ATR Multiple values create wider stops, while lower values result in tighter stops. This feature ensures that your trades are protected against adverse price movements. For best practice, use higher values on higher timeframes and lower values on lower term timeframes.
Bollinger Bands The Logical Trading Indicator V.1 includes Bollinger Bands, which can be customized to use either a Simple Moving Average (SMA) or an Exponential Moving Average (EMA) as the basis.
You can adjust the length and standard deviation multiplier of the Bollinger Bands to fine-tune your strategy. The color of the basis line changes to green when price is above and red when price is below the line to represent the trend.
The bands show a range vs a single band that also represents when the price is in overbought and oversold ranges similar to an RSI. These bands also control the take profit signals.
You also have the ability to change the band colors as well as toggle them off, which only affects the view, they are still active which will still fire the take profit signals.
Momentum Indicator Our indicator offers a momentum filter option that highlights market momentum directly on the candlesticks, identifying periods of bullish, bearish, or consolidation phases. You can enable or disable this filter as needed, providing valuable insights into market conditions.
By default, you will see the candlestick colors represent the momentum direction as green or red, and consolidation periods as white, but the filter on the BUY and SELL signals is not active. The view options and filter can be toggled on and off in the settings.
Buy and Sell Signals The Logical Trading Indicator V.1 generates buy and sell signals based on a combination of ATR-based filtering, Bollinger Band basis crossover, and optional momentum conditions if selected in the settings. These signals help you make informed decisions about when to enter or exit a trade. You can also enable a consolidation filter to stay out of trades during tight ranges.
Basically a BUY signal fires when the price closes above the basis line, and the price meets or exceeds the ATR multiple from the previous candle length, which is also editable in the settings.
If the momentum filter is engaged, it will not fire BUY signals when in consolidation periods. It works just the opposite for SELL signals.
Take Profit Signals We've integrated a Take Profit feature that helps you identify points to exit your trades with profits. The indicator marks Long Take Profit when prices close below the upper zone line of the Bollinger Bands after the previous candle closes inside the band, suggesting an optimal point to exit a long trade or consider a short position.
Conversely, Short Take Profit signals appear when prices close above the lower zone after the previous candle closes inside of it, indicating the right time to exit a short trade or contemplate a long position.
Alerts for Informed Trading The Logical Trading Indicator V.1 comes equipped with alert conditions for buy signals, sell signals, take profit points, and more. Receive real-time notifications to your preferred devices or platforms to stay updated on market movements and trading opportunities.
@designcreation974, You are welcome, and thank you for the feedback! Hope you get some good trades out of it!
dnlmccnn
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@thelogicaldude, I really like the indicator, quick question on your web site your offer 2.0 and I am going to read all about it and probable purchase it but what is the major difference?
thelogicaldude
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@dnlmccnn, glad you like it! So Version 2.0 comes with more customization, functionality, and fine tuning capabilities as well as additional filters and indicators. This is also the version that I will be keeping updated as I make changes and updating the code on my site. If I can ever make enough to warrant paying for the TV premium membership, then I will publish it as an invite only script down the line. But, we'll see. Anyway, here is what is different about V2 vs V1.
One of the additional filters is a long period moving average that can be customized and has alerts not only for price cross over, but also basis and moving average crosses, that I call golden and death crosses. It also changes color based on the price position like the bollinger band basis line.
With the momentum indicator, you are able to select the values of the Bollinger band and keltner channel so that you can fine tune your strategy even further. It also has the ability to print the momentum arrows on the chart so that you can see not only the direction, but the momentum amount.
There is also an order blocks feature that prints automatic supply and demand zone based on your choice of wicks or candle bodies. This comes with alerts letting you know when price has reached these blocks.
Oh, and one feature that the TV gatekeepers made me take out of this script that V2 still has is the ability to set BUY and SELL orders based on the Heiken Ashi candlesticks if that is your game. I personally love the HA candles and this thing trades really well with them.
But for now, that is the main differences. This version has the meat and potatoes, but V2 has all the fixin's lol.
I am also currently working on adding in automatic trend lines and eventually I want to add in more SMC concepts like fair value gaps, etc.
Spyrkamcnasty1
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Just wanted to drop In and say great work.
thelogicaldude
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@mattspyrka, thanks for the feedback and appreciate you stopping by!
MarkAHeading
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Hi, Just want to say that I have been able to make quite a number of profitable trades with this indicator. Thank you so much! One Question: Do you have any suggestions an accompanying osciallator that might be able to help weed out any false signals? Many thanks again!! 😎
thelogicaldude
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@MarkAHeading, that's awesome! Glad to know it's working for you! You might want to play around with the ATR settings based on your timeframe and backtest as well as using the consolidation filter. I will use a simple RSI in many cases just as a confirmation and additional filter. If you want to get fancy with it, you can check out the free version of Market Cipher B by Vumanchu on the Community scripts. The PRO version of this indicator also includes momentum arrows, long period moving average with filter option, as well as support and resistance zones that can help with that. Basically the way I look at it is, in an uptrend, buys are entries and sells are exits. In a down trend, sells are entries and buys are exits.
MarkAHeading
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@thelogicaldude, That makes sense. I will look into the market Cipher B and see if that is able to help me. I think you are right Still have to evaluate whether it is an up trend of downtrend. even looking for the higher time frames. Thank you so much 🙏for your quick response. I appreciate it!!
GorgeousGlenn
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This is "THE" BEST indicator on TradingView, I don't know the guy who created it-but PURE GENIUS 🧠 🤓😎