[blackcat] L3 Best Cost Line

6 gen 2023

Level: 3

Background

One of my favourite tool to see fast trends which is simple but powerful. It runs under below market logic.

Function

Best cose line is a tool to model the people's mood and preference in the market. I define a typical price as wcx, when wcx is above the best cost line, which means traders are willing to use higher price to buy, then if you long, you are following the trend and make profit. On the other hand, if wcx is below the best cost line, which means traders are NOT willing to pursue higher price (maybe due to continous stop loss or sth other), then you should at least not long or if you are agressive in style, you may consider short.
That is it. Do you think it is simple and powerful enough?

Remarks

Feedbacks are appreciated.

22 apr

Note di rilascio

OVERVIEW
The L3 Best Cost Line indicator helps traders identify potential support and resistance levels using a sophisticated combination of price action analysis and weighted calculations. By utilizing both historical highs/lows and real-time market data, this tool provides dynamic trading signals through visual cues and alerts, making it particularly useful for scalpers and intraday traders looking to capitalize on short-term market movements.

FEATURES

• Dynamic Support & Resistance Detection:

Calculates weighted center prices using a proprietary formula
Identifies significant price levels based on recent market activity
• Real-Time Market Analysis:

Monitors price action over the past 3 bars
Provides continuous updates to support/resistance levels
• Visual Alert System:

Green line indicates bullish zones
Red line shows bearish areas
Labels display 'B' for buying opportunities and 'S' for selling signals
HOW TO USE

Installation:

Copy the entire code into TradingView's Pine Editor
Save and attach to your chart
Interpretation:

Monitor the colored lines for trend direction
Look for crossovers between current price and the best cost line
Pay attention to labeled entries ('B'/'S') for trade timing
Risk Management:

Use as part of a comprehensive trading strategy
Always combine with other technical indicators
Consider volume and broader market context
LIMITATIONS

⚠️ This indicator works best on higher timeframe charts (H4 or daily)
⚠️ May generate false signals during volatile periods
⚠️ Requires manual confirmation before executing trades

NOTES

• The calculation uses a unique weighted center price formula that combines opening, closing, high, and low prices
• The indicator requires at least 3 bars of historical data for accurate readings
• Performance may vary across different asset classes and market conditions