[blackcat] L2 Price Envelope Tracker

6 ott 2020

Level: 2

Background

Price envelopes sare shown at a set percentage above and below a moving average. They are used to indicate overbought and oversold levels and can be traded individually or in conjunction with a momentum indicator.

Function

[blackcat] L2 Price Envelope Tracker is an innovative indicator that use customized envelope of price to disclose overbought and oversold periods. With this function, long and short entries can be further developped in this pine script.

Key Signal

sma5 --> typical price moving average line
resistance --> upper envelope as resistance line
support ---> lower envelope as support line

Pros and Cons

Pros:

1. easy observe overbought and oversold zone
2. disclose exact long and short entries in overbought and oversold zones


Cons:

1. Only applicable for the trading pairs that support financial() functions. crypto/xau/xag/indice are not applicable
2. Need to tune r1 and s1 for different trading pairs


Remarks

NA

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

7 ott 2020

Note di rilascio

This release responsed to Jittra inquiry to add support for XAU, XAG with this indicator. NOTE: different time frame requires different but proper r1 and s1 coefficients to be applicable.

25 mar

Note di rilascio

OVERVIEW

This study tracks Level 2 price envelope dynamics using linear regression-adjusted moving averages and dynamic support/resistance zones. It provides real-time visual analysis of trend directionality and generates buy/sell signals based on multi-tier momentum checks.

FEATURES

Dual moving average system: Combines 5-period short-term and 18-period long-term averages adjusted with linear regression slope calculations
Dynamic zone creation: • Resistance level calculated via 12-period SMA × 1.06 coefficient • Support level determined using 10-period SMA × 0.95 multiplier
Advanced pattern detection using backward-looking index scanning (up to 1000 bars)
Visual indicators: ✔ Colored background alerts for confirmed signals ✔ Filled band between critical support/resistance zones changing color based on trend direction ✔ Key lines for trend identification (white line) and risk boundaries (yellow/purple zones)

HOW TO USE

Adjust input multipliers: • [Resistance Multiplier]: Modify 1.06 base value (range ≥1.00) • [Support Multiplier]: Adjust 0.95 base value (range ≥0.90)
Monitor trend direction via colored fill bands: ▶ Yellow indicates upward momentum dominance ▶ Purple signifies downward pressure advantage
Execute trades when: ✅ Lime background appears for confirmed buy setups ✅ Red highlighting confirms sell opportunities

LIMITATIONS

• Lag potential due to SMA-based foundation
• Over-reliance on historical pattern detection within limited lookback window
• Timeframe sensitivity affecting signal frequency/accuracy
• No volatility normalization mechanisms built-in

NOTES

• Uses Pine Script v4 requiring minimum TF multiplier consideration
• Signal validation employs three-stage comparison:

Cross-validation across 1-, 2-, and 3-bar offsets
Lookback confirmation across up to 1000 prior bars
Proximity check maintaining ≤2% deviation from critical support threshold