Volume True Range (VTR) and Volume Average True Range (VATR)This indicator uses lower-timeframe cumulative volume delta (CVD) candles to calculate the Volume True Range (VTR) of your instrument. The VTR is calculated similarly to the traditional true range, but uses volume instead (no price is involved in the calculation other than in the lower timeframe bar delta assignments). I haven't seen this concept developed before on TradingView or frankly the Internet, but I thought it seemed fairly intuitive; we can calculate the lower timeframe volume delta candles, so it makes sense to calculate a volume true range, which could show divergences in volume and price.
The VTR is calculated by the following code which uses the lower-timeframe CVD candles:
volumeTR = math.max(cvd_high - cvd_low, math.abs(cvd_high - nz(cvd_close )), math.abs(cvd_low - nz(cvd_close )))
The Volume Average True Range (VATR) is calculated by taking the RMA of the VTR, similarly to the ATR.
I would like to thank TradingView for the calculation of up/down intrabar volumes, which I referenced from their 'CVD - Cumulative Volume Delta Candles' indicator.
How to Use
The VTR and VATR can be used to identify price-volume trends and volatility divergences. A strong VTR (above the VATR of your specified length) can indicate the start or continuation of a trend, which you can identify via the VTR color (determined via price candle colors). Similarly, a rising VATR with most VTR bars of a specific color (green or red) will show that volume is moving in a specific price direction.
Additionally, the VATR plotted next to the ATR of the same length will show you volume volatility divergences. A strong VATR next to a muted/flat ATR indicates strong volume movement, which price might follow in the upcoming bars. Or, for trend reversals, a decreasing ATR after a strong trend combined with a rising VATR of the opposite trend may show a possible reversal.
Hope you all enjoy this.
-wbburgin
* Quick note: lower timeframe analysis returns only so much data. If you are on a high timeframe and the indicator is showing only a limited amount of bars, raise the lower timeframe (but still keep it below your current timeframe) so that the arrays can return more bars for you.
Average True Range (ATR)
Trade Exit Calculator [MarketSignalsPro]█ OVERVIEW
This Pine Script calculates a Stop Loss and Take Profit order suggestion based on the Average True Range (ATR). This provides a market generated visual reference for the user to better gauge risk and profit potential for their trades. This is not a trade signal system, it is a tool best used in conjunction with an existing system.
█ FEATURES
Inputs:
stopLossMultiplier and takeProfitMultiplier : These are input parameters that allow the user to adjust the multiplier for calculating stop loss and take profit levels.
longIndicator : This input parameter determines whether the script is calculating levels for a long setup (buy) or a short setup (sell).
Variable Initialization:
Various variables are initialized to manage labels, lines, and calculated stop loss and take profit levels.
ATR (Average True Range) is calculated using a period of 14.
Calculation of Stop Loss and Take Profit:
Depending on the value of longIndicator stop loss and take profit levels are not calculated the same way.
For long setups, stop loss is calculated below the closing price and take profit above, while for short setups, it's the opposite.
The calculation involves multiplying the ATR value by the user-defined multipliers and adding or subtracting from the closing price accordingly.
Plotting Lines:
Lines representing the calculated stop loss, take profit, and entry price are plotted on the chart.
Displaying Labels:
Labels displaying the calculated stop loss, take profit, and entry price are shown on the chart alongside the respective lines.
Updating and Deleting Objects:
Existing lines and labels are updated or deleted to ensure only the most recent levels are displayed on the chart.
Final Output:
The script outputs visual representations of stop loss, take profit, and entry price levels on the chart, providing traders with guidance for risk management and profit-taking strategies based on the volatility of the market.
█ CONCLUSION
In summary, this Pine Script enhances trading strategies by calculating and illustrating stop loss and take profit levels based on the Average True Range indicator, offering traders a structured way to manage risk and profit potential.
█ THANKS
Special thanks to Cryptosnagger for taking the time to build this Pine Script and share it freely with the community.
Volatility ATR Support and Resistance Bands [Quantigenics]Volatility ATR Support and Resistance Bands
The “Volatility ATR Support and Resistance Bands” is a trend visualization tool that uses Average True Range (ATR) to create a dynamic channel around price action, adapting to changes in volatility and offering clear trend indicators. The band direction can indicate trend and the lines can indicate support and resistance levels.
The script works by calculating a series of moving averages from the highest and lowest prices, then applies an ATR-based multiplier to generate a set of bands. These bands expand and contract with the market’s volatility, providing a visual guide to the strength and potential direction of price movements.
How to Trade with Volatility ATR Band:
Identify Trend Direction: When the bands slope upwards, the market is trending upwards, which may be a good opportunity to consider a long position. When the bands slope downward, the market is trending downwards, which could be a sign to sell or short.
Volatility Awareness: The wider the bands, the higher the market volatility. Narrow bands suggest a quieter market, which might indicate consolidation or a potential breakout/breakdown.
Confirm Entries and Exits: Use the bands as dynamic support and resistance; entering trades as the price bounces off the bands and considering exits as it reaches the opposite side or breaches the bands.
Hope you enjoy this script!
Happy trading!
Daily Chart ATR & Movement %This Pine Script, titled "Daily ATR & Movement %," is designed for traders looking to gauge volatility and price movements relative to that volatility directly on their trading chart. The script calculates and displays the Average True Range (ATR) over a 14-day period using daily data, alongside the percentage movement of the current price from the previous day's close, scaled by the ATR. These metrics provide a snapshot of daily volatility and the magnitude of price movements within that context, which can be crucial for making informed trading decisions, especially in markets where volatility is a significant factor.
Key Features:
Daily ATR Calculation: Utilizes the ta.atr(14) function to compute the Average True Range on a daily basis, which measures market volatility by decomposing the entire range of asset prices for that day.
Movement Percentage: The script calculates the movement from yesterday’s closing price to today’s current price as a percentage of the daily ATR. This shows how significant today's price change is relative to the typical daily volatility, which helps in understanding whether the price movement is substantial or trivial.
Customizable Label Display: Traders can customize the display through a user input dropdown menu for label size ("small", "normal", "large", "huge") and a slider for vertical offset. This allows for better visibility and customization based on user preference and screen setup.
Dynamic Label Updates: A label is dynamically updated each bar with the latest ATR value and movement percentage. This ongoing update keeps traders informed in real-time without manual recalculations.
How to Use:
Setup: Apply the indicator to any chart.
Customization: Adjust the label size and vertical position to suit your viewing preference using the script’s input options.
Interpretation: Monitor the displayed ATR value and movement percentage to assess volatility and relative price movements. High percentages could indicate significant moves worth trading, while low percentages suggest minor changes.
This script is particularly useful for traders who rely on volatility-based trading strategies, such as breakout trading, where understanding the context of price movements relative to typical market fluctuations can provide a strategic edge.
ATR Stop Loss Zones [ziksfx]The indicator is a dynamic tool that helps traders identify potential stop-loss levels in trending markets. It calculates the Average True Range (ATR) and uses it to create upper and lower boxes around the closing price. These boxes visually represent potential stop-loss zones for long and short positions.
Originality and Usefulness:
This indicator stands out for its unique ability to dynamically adjust stop-loss zones based on market volatility using the ATR approach. This provides traders with a flexible and adaptable risk management tool that adapts to changing market conditions. By visually representing potential stop-loss levels, taking into account the inherent uncertainty of market movements, the indicator empowers traders to make informed decisions about placing stop loses ONLY in trend markets. This allows them to maximize profit potential while minimizing potential downside risk.
Functionality:
Calculates the ATR based on the closing price.
Creates upper and lower of box by adding and subtracting the ATR multiplied by a predefined multiplier (1.5) to the closing price, then generates dynamic boxes based on the upper and lower ATR values.
Indicator allows traders to choose to display boxes for long, short, or both positions simultaneously.
Enables customization of box colors to suit individual preferences and trading styles.
Can be used as a dynamic trailing stop-loss mechanism.
Long box: Enable or disable the display of box for long positions.
Short box: Enable or disable the display of box for short positions.
Color Long Box: Set the color of the box for long positions.
Color Short Box: Set the color of the box for short positions.
Disclaimer:
This information is for educational purposes only and should not be considered financial advice. Remember that trading involves risk, and you could lose money. Always do your own research and consult with a financial professional before making any investment decisions.
Long Bar Highlighter @shrilssThe Long Bar Highlighter is designed to detect long bars that exhibit significant price expansion beyond recent price levels. It highlights bars that exceed the length of the previous four bars, marking them for their potential importance in market movements. Additionally, the indicator plots directional shapes based on the closing prices, which helps traders visualize potential upward or downward momentum. An optional ATR crossover setting refines these signals, focusing on stronger trends for more optimal trading opportunities.
Best Average Candle SizeThis indicator, named "Best Average Candle Size with Dynamic Midline" (BACS), is designed to provide insights into the average candle size of a financial instrument along with a dynamically adjusting midline. Here's a brief description of its components and functionality:
1. **Average Candle Size**: The indicator calculates the average size of candles over a specified period, which is the absolute difference between the open and close prices. This average candle size is plotted on the chart, helping traders understand the typical price movement within each candle.
2. **Dynamic Midline**: In addition to the average candle size, the indicator computes a dynamic midline. This midline is determined by calculating the moving average of the average candle size over another specified period. The dynamic midline adapts to changes in the average candle size, providing a reference point for assessing deviations from the average.
3. **Volatility Analysis**: The indicator incorporates the Average True Range (ATR) to assess volatility. ATR is plotted alongside the average candle size and the dynamic midline. Traders can compare the average candle size to the ATR to gauge volatility levels. Higher average candle sizes relative to ATR may indicate periods of heightened volatility.
4. **Trend Strength Analysis**: The indicator also evaluates trend strength by comparing the average candle size to its dynamic midline. When the average candle size is above the dynamic midline, it suggests potential trend strength. Traders can use this comparison to assess the strength of price movements and identify potential trend reversal points.
5. **Visualization and Highlighting**: The indicator provides visual representations of the average candle size, dynamic midline, and ATR on the price chart. It also highlights conditions of interest, such as periods of high volatility or strong trend strength, using customizable background colours.
Overall, the "Best Average Candle Size with Dynamic Midline" indicator offers traders a comprehensive view of average candle size dynamics, volatility, and trend strength, aiding in their technical analysis and decision-making processes.
TrendVista Swing IndicatorOverview
The swing indicator is designed to offer traders a comprehensive analysis of market trends and volatility by integrating Bollinger Bands and the Average True Range (ATR). It aids in the visualization of price movements and volatility across multiple time frames, thereby providing insights into potential buy and sell opportunities.
Key Features
- Multitimeframe Analysis : By default, the indicator examines the market across the following time frames: 1 Day (1D), 4 Hours (4H), 1 Hour (1H), and 15 Minutes (15min). Users have the flexibility to modify these time frames to suit their trading strategy by adjusting the indicator's settings.
- Buy and Sell Timings : The indicator identifies optimal buy signals when the price drops below the lower Bollinger Band and subsequently re-enters the band's range. Additionally, a buy signal is generated during high volatility periods—signified by the ATR exceeding its 10-day average—helping traders spot potential liquidation points. Sell signals are tailored for traders looking to exit long positions rather than for initiating short positions.
- Bollinger Bands Phases : The indicator categorizes the market condition into three phases based on Bollinger Bands movement:
- Neutral Phase : When the closing price is within the Bollinger Bands' upper and lower limits.
- Bullish Phase : Signaled by the price closing above the upper Bollinger Band, suggesting an upward trend until the price closes below the middle band.
- Bearish Phase : Initiated when the price closes below the lower Bollinger Band, indicating a downtrend until the price closes above the middle band.
Users can opt to exclude the neutral phase from the analysis through the indicator's settings for a more focused view on bullish or bearish trends.
Indicator Customization
The swing indicator is versatile, allowing users to customize the time frames and phase visibility according to their preferences. This feature ensures that traders can tailor the indicator to match their specific analysis needs and trading strategies.
Considerations
- The signals provided by the swing indicator are not symmetrically designed for both buy and sell actions. The indicator primarily optimizes for identifying long positions, particularly in bull markets. The sell signals are intended for exiting existing long positions rather than for short selling.
Range Finder [UAlgo]🔶 Description:
The "Range Finder " indicator aims at identifying and visualizing price ranges within a specified number of candles. By utilizing the Average True Range (ATR) indicator and Simple Moving Average (SMA), it detects potential breakout conditions and tracks consecutive candles that remain within the breakout range. This indicator offers flexibility by allowing users to customize settings such as range length, method for determining range breaks (based on either candle close or wick), and visualization options for displaying range breaks on the chart.
🔶 Key Features
Identifying Ranges: The Range Finder automatically adapts to the market by continuously evaluating the Average True Range (ATR) and its Simple Moving Average (SMA). This helps in dynamically adjusting the range based on market volatility.
Range Length: Users can specify the number of candles to be used for constructing the range via the "Range Length" input setting. This allows for customization based on trading strategies and preferences.
Range Break Method: The indicator offers the flexibility to choose between two methods for identifying range breaks. Users can select between "Close" or "Wick" based on their preference for using the closing price or the highs and lows (including wicks) of candles for defining the breakout.
Show Range Breaks: This option enables visual representation of range breaks on the chart. When activated, labels with the letter "B" will appear at the breakout point, colored according to the breakout direction (upward breakouts in the chosen up range color and downward breakouts in the chosen down range color).
Range Color Customization: The indicator provides the ability to personalize the visual appearance of the range by selecting preferred colors for ranges indicating potential upward and downward breakouts.
🔶 Disclaimer
It's important to understand that the Range Finder indicator is intended for informational purposes only and should not be solely relied upon for making trading decisions. Trading financial instruments involves inherent risks, and past performance is not necessarily indicative of future results.
ZigZag With ATR Filter [vnhilton](OVERVIEW)
The typical ZigZag indicator, which connects pivot points (see TradingView's Help Center regarding their indicator Pivot Points High Low, for an in depth explanation on how they are calculated) with lines, except instead of a percentage threshold, it uses ATR which adjusts for volatility of the ticker you are viewing. The ZigZag indicator can therefore be used to help visualise price legs and trends on a usually noisy looking chart.
(FEATURES)
- Toggles for pivot point label contents such as the value, the trend, or nothing at all.
- ATR and pivot point periods.
- ATR multiplier minimum threshold to plot pivots and draw lines only when this threshold is met (helps eliminate small, perhaps insignificant price movements, to have a better focus on the overall trend).
- Show the last 2 to 499 ZigZag lines.
- Uptrend, downtrend and range colors for high and low pivot labels, text labels and lines, for both confirmed and real-time plots.
- Label size, and label styles for the high and low pivots.
- Customisable width and styles (Arrow Right, Dashed, Dotted, Solid) for the ZigZag line.
In the main chart picture, labels show both the pivot point value and the trend at that point. In the picture above, on the left shows only the pivot point value, the right shows only the trend.
Picture above shows just the label with 0 contents. Also notice the last recent line being blue instead of green. This is because the current bar hasn't finished so this line is currently live and not confirmed, so is subject to change. Keep in mind even if a pivot point is confirmed, it can be updated by a subsequent higher high/lower low.
Left chart shows a minimum ATR threshold multiplier of 1x; Right chart has 2x ATR minimum threshold. Notice the left chart highlights more price legs as more price legs satisfy a less strict threshold.
SVMKR_UT_Bot_HMA_UCS_LRSThis Pine Script code is a TradingView study script titled "SVMKR_UT_Bot_HMA_UCS_LRS". It combines two separate trading indicators: the UT Bot (Ultimate Trailing Stop Bot) and the UCS_LRS (Linear Regression Slope) indicator.
UT Bot (Ultimate Trailing Stop Bot):
The UT Bot is designed to provide buy and sell signals based on a trailing stop strategy.
It calculates the trailing stop level using the Average True Range (ATR) and Heikin Ashi candle signals if enabled.
Buy signals are generated when the price crosses above the trailing stop, while sell signals occur when the price crosses below the trailing stop.
Additionally, buy and sell signals are visually represented on the chart with corresponding labels and shapes.
The script also includes options to customize the sensitivity of the trailing stop and to color the bars based on buy or sell signals.
Hull Moving Average (HMA):
This section calculates and plots the Hull Moving Average, a type of moving average that reduces lag and improves smoothing compared to traditional moving averages.
It uses the weighted moving average (WMA) to compute the HMA, which helps to identify trend direction and potential reversal points.
UCS_LRS (Linear Regression Slope):
The UCS_LRS indicator calculates the linear regression slope of the closing prices over a specified period.
It then applies exponential smoothing to the slope values and calculates an average slope.
Buy signals are generated when the current slope is greater than the average slope and positive, indicating an uptrend.
Conversely, sell signals are generated when the current slope is less than the average slope and negative, suggesting a downtrend.
The linear regression slope and its average are plotted on the chart, allowing traders to visually identify trend strength and potential reversal points.
Overall, this combined script provides traders with a comprehensive set of tools for trend following and momentum trading strategies, integrating trailing stop analysis, moving average smoothing, and linear regression slope analysis into a single script for technical analysis on TradingView charts.
ATR Bands (Keltner Channel), Wick and SRSI Signals [MW]Introduction
This indicator uses a novel combination of ATR Bands, candle wicks crossing the ATR upper and lower bands, and baseline, and combines them with the Stochastic SRSI oscillator to provide early BUY and SELL signals in uptrends, downtrends, and in ranging price conditions.
How it’s unique
People generally understand Bollinger Bands and Keltner Channels. Buy at the bottom band, sell at the top band. However, because the bands themselves are not static, impulsive moves can render them useless. People also generally understand wicks. Candles with large wicks can represent a change in pattern, or volatile price movement. Combining those two to determine if price is reaching a pivot point is relatively novel. When Stochastic RSI (SRSI) filtering is also added, it becomes a genuinely unique combination that can be used to determine trade entries and exits.
What’s the benefit
The benefit of the indicator is that it can help potentially identify pivots WHEN THEY HAPPEN, and with potentially minimal retracement, depending on the trader’s time window. Many indicators wait for a trend to be established, or wait for a breakout to occur, or have to wait for some form of confirmation. In the interpretation used by this indicator, bands, wicks, and SRSI cycles provide both the signal and confirmation.
It takes into account 3 elements:
Price approaching the upper or lower band or the baseline - MEANING: Price is becoming extended based on calculations that use the candle trading range.
A candle wick of a defined proportion (e.g. wick is 1/2 the size of a full candle OR candle body) crosses a band or baseline, but the body does not cross the band or baseline - MEANING: Buyers and sellers are both very active.
The Stochastic RSI reading is above 80 for SELL signals and below 20 for BUY signals - MEANING: Additional confirmation that price is becoming extended based on the current cyclic price pattern.
How to Use
SIGNALS
Buy Signals - Green(ish):
B Signal - Potential pivot up from the lower band when using the preferred multiplier
B1 Signal - Potential pivot up from the lower band when using phi * multiplier
B2 Signal - Potential pivot up from the lower band when using 1/2 * multiplier
B3 Signal - Potential pivot up from baseline
Sell Signals - Red(ish):
S Signal - Potential pivot down from the upper band when using the preferred multiplier
S1 Signal - Potential pivot down from the upper band when using
S2 Signal - Potential pivot down from the upper band when using 1/2 * multiplier
S3 Signal - Potential pivot down from the baseline
DISCUSSION
During an uptrend or downtrend, signals from the baseline can help traders identify areas where they may enter the trending move with the least amount of drawdown. In both cases, entry points can occur with baseline signals in the direction of the trend.
For example, in an uptrend (when the price is forming higher highs and higher lows, or when the baseline is rising), price tends to oscillate between the upper band and baseline. In this case, the baseline BUY signal (B3) can show an entry point.
In a downtrend (when the price is forming lower highs and lower lows, or when the baseline is falling), price tends to oscillate between the baseline and the lower band. In this case, the baseline SELL signal (S3) can show an entry point.
During consolidation, when price is ranging, price tends to oscillate between the upper and lower bands, while crossing through the baseline unperturbed. Here, entry points can occur at the upper and lower bands.
When all conditions are met at the lower band during consolidation, a BUY signal (B), can occur. This signal may also occur prior to a break out of consolidation to the upside.
When all conditions are met at the upper band during consolidation, a SELL signal (S), can occur. This signal may also occur prior to a break out of consolidation to the downside.
Additional B1, B2, and S1, and S2 signals can be displayed that use the bands based on a multiplier that is half that of the primary one, and phi (0.618) times the primary multiplier as a way to quickly check for signals occurring along different, but related, bands.
Calculations
ATR Bands, or Keltner Channels, are a technical analysis tool that are used to measure market volatility and identify overbought or oversold conditions in the trading of financial instruments, such as stocks, bonds, commodities, and currencies. ATR Bands consist of three lines plotted on a price chart:
Middle Band, Basis, or Baseline: This is typically a simple moving average (SMA) of the closing prices over a certain period. It represents the intermediate-term trend of the asset's price.
Upper Band: This is calculated by adding a certain number of ATRs to the middle band (SMA). The upper band adjusts itself with the increase in volatility.
Lower Band: This is calculated by subtracting the same number of ATRs from the middle band (SMA). Like the upper band, the lower band adjusts to changes in volatility.
The candle wick signals occur if the wick is at the specified ratio compared to either the entire candle or the candle body. The upper band, lower band, and baseline signals happen if the wick is the specified ratio of the total candle size. For the major signals for upper and lower bands, these occur when the wick extends outside of the bands while closing a candle inside of the bands. For the baseline signals, they occur if a wick crosses a baseline but closes on the other side.
Settings
CHANNEL SETTINGS
Baseline EMA Period (Default: 21): Period length of the moving average basis line.
ATR Period (Default: 21): The number of periods over which the Average True Range (ATR) is calculated.
Basis MA Type (Default: SMA): The moving average type for the basis line.
Multiplier (Default: 2.5: The deviation multiplier used to calculate the band distance from the basis line.
ADDITIONAL CHANNELS
Half of Multiplier Offset (Default: True): Toggles the display of the ATR bands that are set a distance of half of the ATR multiplier.
Quarter of Multiplier Offset (Default: false): Toggles the display of the ATR bands that are set a distance of one quarter of the ATR multiplier.
Phi (Φ) Offset (Default: false): Toggles the display of the ATR bands that are set a distance of phi (Φ) times the ATR multiplier.
WICK SETTINGS FOR CANDLE FILTERS
Wick Ratio for Bands (Default: 0.4): The ratio of wick size to total candle size for use at upper and lower bands.
Wick Ratio for Baseline (Default: 0.4): The ratio of wick size to total candle size for use at baseline.
Use Candle Body (rather than full candle size) (Default: false): Determines whether wick calculations use the candle body or the entire candle size.
VISUAL PREFERENCES - SIGNALS
Show Signals (Default: true): Allows signal labels to be shown.
Show Signals from 1/2 Band Offset (Default: false): Toggle signals originating from 1/2 offset upper and lower bands.
Show Signals from Phi (Φ) Band Offset (Default: false): Toggle signals originating from phi (Φ) offset upper and lower bands.
Show Baseline Signals (Default: false): Toggle Baseline signals.
VISUAL PREFERENCES - BANDS
Show ATR (Keltner) Bands (Default: true): Use a background color inside the Bollinger Bands.
Fill Bands (Default: true): Use a background color inside the Bollinger Bands.
STOCHASTIC SETTINGS
Use Stochastic RSI Filtering (Default: False): This will only trigger some SELL signals when the stochastic RSI is above 80, and BUY signals when below 20.
K (Default: 3): The smoothing level for the Stochastic RSI.
RSI Length (Default: 14): The period length for the RSI calculation.
Stochastic Length (Default: 8): The period length over which the stochastic calculation is performed.
Other Usage Notes and Limitations
To understand future price movement, this indicator assumes that 3 things must be known:
Evidence of a change of market structure. This can be demonstrated by increased volatility, consolidation, volume spikes (which can be tracked with the MW Volume Impulse Indicator) or, in the case of this indicator, candle wicks.
The potential cause of the change. It could be a VWAP line (which can be tracked with the Multi VWAP , and Multi VWAP from Gaps indicators), an event, an important support or resistance level, a key moving average, or many other things. This indicator assumes the ATR bands can be a cause.
The current position in the price cycle. Oscillators like the RSI, and MACD, are typical measures of price oscillation (other oscillators like the Price and Volume Stochastic Divergence indicator can also be useful). This indicator uses the Stochastic RSI oscillator to determine overbought and oversold conditions.
When evidence of the change appears, and the potential cause of the change is identified, and the price oscillation is at a favorable position for the desired trading direction, this indicator will generate a signal.
ATR Bands (or Keltner Channels) are used to determine when price might “revert to the mean”. Crossing, or being near the upper or lower band, can indicate an overbought or oversold condition, which could lead to a price reversal. By tracking the behavior of candle wicks during these events, we can see how active the battle is between buyers and sellers.
If the top of a wick is large, it may indicate that sellers are aggressively attempting to bring the price down. Conversely, if the bottom wick is large, it can indicate that buyers are actively trying to counter the price action caused by selling pressure.
When this wicking action occurs at times when price is not near the upper band, lower band, or baseline, it could indicate the presence of an important level. That could mean a nearby VWAP line, a supply or demand zone, a round price number, or a number of other factors. In any case, this wick may be the first indication of a price reversal.
Shorter baseline periods may be better for short period trading like scalping or day trading, while longer period baselines can show signals that are better suited to swing trading, or longer term investing.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
The TradingView platform allows a maximum of 500 labels per chart. This means that if your settings allow for a lot of signals, labels for earlier ones may not appear if the total number of labels exceeds 500 for the chart.
Median Supertrend [BackQuant]Median Supertrend Concept by BackQuant ©
This was created since the normal supertrend is noisy, in the attempts to remove that and still get a good signal we decided to use a special median calculation as the source to a modified supertrend. This allows us to reduce noise, and make the supertrend adaptive to volatility. The full description and reasoning, including definitions and backtests are as follows:
1. Definition of Median
The median is a statistical measure that identifies the middle value in a given set of numbers when those numbers are arranged in either ascending or descending order. If the dataset has an even number of observations, the median is calculated as the average of the two middle numbers. This measure is particularly useful in understanding the central tendency of data, especially in cases where the dataset may contain outliers that could skew the mean. For example, in a dataset representing the earnings of families, the median provides a more accurate reflection of the typical income than the mean if the dataset includes extreme values.
2. Understanding Supertrend and Its Use Case
Supertrend is a popular trend-following indicator used in technical analysis. It is computed using the Average True Range (ATR) to capture volatility, combined with a moving average. The indicator provides clear signals to traders about bullish or bearish trends, indicating potential entry and exit points. Traders often use Supertrend in various market conditions to enhance their trading strategies, leveraging its simplicity and effectiveness in identifying ongoing trends and reversals.
3. Rationale Behind Combining Median with Supertrend
The integration of the median into the Supertrend indicator seeks to mitigate the impact of outliers and sudden market spikes that can affect trend analysis. By using the median value of price data for trend determination, the Median Supertrend aims to offer a more stable and reliable indicator that reflects the underlying market conditions more accurately than traditional methods. This modification is intended to improve the timing of trend detection and the precision of entry and exit signals.
4. Key Differences and Benefits
Enhanced Stability: The use of median values reduces sensitivity to extreme price movements, offering a smoother trend line that can lead to more reliable trading signals.
Adaptive Sensitivity: Users can adjust the indicator's sensitivity to align with different trading styles and market conditions through customizable parameters like the ATR multiplier and lookback period.
Explicit Trading Signals: The indicator simplifies the trading process by providing clear, actionable long and short signals based on trend reversals, aiding in decision-making.
Customizability: Options to use Heikin Ashi candles, paint candles based on the trend, and toggle signal visibility allow traders to personalize the indicator to their preference.
5. User Inputs
The Median Supertrend indicator includes several user inputs to tailor its operation:
Use HA Candles as Source?: Option to base calculations on Heikin Ashi candles for smoother price data.
Paint Candles According to Trend?: Visual aid that colors candles based on the current trend direction, enhancing chart readability.
ATR Period and Multiplier: Parameters to adjust the sensitivity of the trend detection, allowing users to fine-tune the indicator.
Adaptive Lookback Period: Defines the period for the median calculation, offering flexibility in trend assessment.
Show Long and Short Signals: Enables traders to visualize entry signals directly on the chart.
6. Application in Trading
Traders can incorporate the Median Supertrend into their strategies as a standalone indicator for trend following or as a filter in a multi-indicator system. It is particularly useful in markets known for having outliers or sudden price jumps, as the median-based calculation provides a grounded trend analysis. This indicator can be applied across various timeframes and asset classes, making it a versatile tool for day traders, swing traders, and long-term investors alike.
7. Summary and Empirical Soundness
The integration of median values into the Supertrend indicator represents an innovative approach to trend analysis, addressing some of the volatility and outlier-related challenges inherent in traditional methods. This combination is empirically sound as it leans on the statistical robustness of the median to offer a more stable and reliable trend determination mechanism.
8. Relavant Backtests on Major Assets (1D Timeframe)
We include these backtests as a general proxy for how they work.
Please do your own calibrating to suit it to your own needs and backtest.
Past results don't = future results but they can help you understand how it functions.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Shadow Range IndexShadow Range Index (SRI) introduces a new concept to calculate momentum, shadow range.
What is range?
Traditionally, True Range (TR) is the current high minus the current low of each bar in the timeframe. This is often used successfully on its own in indicators, or as a moving average in ATR (Average True Range).
To calculate range, SRI uses an innovative calculation of current bar range that also considers the previous bar. It calculates the difference between its maximum upward and maximum downward values over the number of bars the user chooses (by adjusting ‘Range lookback’).
What is shadow range?
True Range (TR) uses elements in its calculation (the highs and lows of the bar) that are also visible on the chart bars. Shadow range does not, though.
SRI calculates shadow range in a similar formula to range, except that this time it works out the difference between the minimum upward and minimum downward movement. This movement is by its nature less than the maximums, hence a shadow of it. Although more subtle, shadow range is significant, because it is quantifiable, and goes in one direction or another.
Finally, SRI smoothes shadow range and plots it as a histogram, and also smoothes and plots range as a signal line. Useful up and down triangles show trend changes, which optionally colour the chart bars.
Here’s an example of a long trade setup:
In summary, Shadow Range Index identifies and traces maximum and minimum bar range movement both up and down, and plots them as centred oscillators. The dynamics between the two can provide insights into the chart's performance and future direction.
Credit to these authors, whose MA or filters form part of this script:
@balipour - Super Smoother MA
@cheatcountry - Hann window smoothing
@AlgoAlpha - Gaussian filter
ATR Bands with Optional Risk/Reward Colors█ OVERVIEW
This indicator projects ATR bands and, optionally, colors them based on a risk/reward advantage for those who trade breakouts/breakdowns using moving averages as partial or full exit points.
█ DEFINITIONS
► True Range
The True Range is a measure of the volatility of a financial asset and is defined as the maximum difference among one of the following values:
- The high of the current period minus the low of the current period.
- The absolute value of the high of the current period minus the closing price of the previous period.
- The absolute value of the low of the current period minus the closing price of the previous period.
► Average True Range
The Average True Range was developed by J. Welles Wilder Jr. and was introduced in his 1978 book titled "New Concepts in Technical Trading Systems". It is calculated as an average of the true range values over a certain number of periods (usually 14) and is commonly used to measure volatility and set stop-loss and profit targets (1).
For example, if you are looking at a daily chart and you want to calculate the 14-day ATR, you would take the True Range of the previous 14 days, calculate their average, and this would be the ATR for that day. The process is then repeated every day to obtain a series of ATR values over time.
The ATR can be smoothed using different methods, such as the Simple Moving Average (SMA), the Exponential Moving Average (EMA), or others, depending on the user's preferences or analysis needs.
► ATR Bands
The ATR bands are created by adding or subtracting the ATR from a reference point (usually the closing price). This process generates bands around the central point that expand and contract based on market volatility, allowing traders to assess dynamic support and resistance levels and to adapt their trading strategies to current market conditions.
█ INDICATOR
► ATR Bands
The indicator provides all the essential parameters for calculating the ATR: period length, time frame, smoothing method, and multiplier.
It is then possible to choose the reference point from which to create the bands. The most commonly used reference points are Open, High, Low, and Close, but you can also choose the commonly used candle averages: HL2, HLC3, HLCC4, OHLC4. Among these, there is also a less common "OC2", which represents the average of the candle body. Additionally, two parameters have been specifically created for this indicator: Open/Close and High/Low.
With the "Open/Close" parameter, the upper band is calculated from the higher value between Open and Close, while the lower one is calculated from the lower value between Open and Close. In the case of bullish candles, therefore, the Close value is taken as the starting point for the upper band and the Open value for the lower one; conversely, in bearish candles, the Open value is used for the upper band and the Close value for the lower band. This setting can be useful for precautionally generating broader bands when trading with candlesticks like hammers or inverted hammers.
The "High/Low" parameter calculates the upper band starting from the High and the lower band starting from the Low. Among all the available options, this one allows drawing the widest bands.
Other possible options to improve the drawing of ATR bands, aligning them with the price action, are:
• Doji Smoothing: When the current candle is a doji (having the same Open and Close price), the bands assume the values they had on the previous candle. This can be useful to avoid steep fluctuations of the bands themselves.
• Extend to High/Low: Extends the bands to the High or Low values when they exceed the value of the band.
• Round Last Cent: Expands the upper band by one cent if the price ends with x.x9, and the lower band if the price ends with x.x1. This function only works when the asset's tick is 0.01.
► Risk/Reward Advantage
The indicator optionally colors the ATR bands after setting a breakpoint, one or two risk/reward ratios, and a series of moving averages. This function allows you to know in advance whether entering a trade can provide an advantage over the risk. The band is colored when the ratio between the distance from the break point to the band and the distance from the break point to the first available moving average reaches at least the set ratio value. It is possible to set two colorings, one for a minimum risk/reward ratio and one for an optimal risk/reward ratio.
The break point can be chosen between High/Low (High in case of breakout, Low in case of breakdown) or Open/Close (on breakouts, Close with bullish candles or Open with bearish candles; on breakdowns, Close with bearish candles or Open with bullish candles).
It is possible to choose up to 10 moving averages of various types, including the VWAP with the Anchor Period (2).
Depending on the "Price to MA" setting, the bands can be individually or simultaneously colored.
By selecting "Single Direction," the risk/reward calculation is performed only when all moving averages are above or below the break point, resulting in only one band being colored at a time. For this reason, when the break point is in between the moving averages, the calculation is not executed. This setting can be useful for strategies involving price movement from a level towards a series of specific moving averages (for example, in reversals starting from a certain level towards the VWAP with possible partial take profits on some previous moving averages, or simply in trend following towards one or more moving averages).
Choosing "Both Directions" the risk/reward ratio is calculated based on the first available moving averages both above and below the price. This setting is useful for those who operate in range bound markets or simply take advantage of movements between moving averages.
█ NOTE
This script may not be suitable for scalping strategies that require immediate entries due to the inability to know the ATR of a candle in advance until its closure. Once the candle is closed, you should have time to place a stop or stop-limit order, so your strategy should not anticipate an immediate start with the next candle. Even more conveniently, if your strategy involves an entry on a pullback, you can place a limit order at the breakout level.
(1) www.tradingview.com
(2) For convenience, the code for the Anchor Period has been entirely copied from the VWAP code provided by TradingView.
[Spinn] LevelsThis is one of the best and most useful indicators I have ever created. It plots support and resistance levels at pivot points. The purpose of this indicator is to save the trader’s time on drawing levels and automate this routine process.
Support and resistance levels are a cornerstone of trading. Every seasoned trader can plot them on a chart, underscoring their significance for making trading decisions—they're visible to all, indicating areas dense with orders on both sides.
Despite the plethora of level indicators available, many of which are free, I found none that were convenient and fulfilled their intended purpose. Here are the key features and advantages of this indicator, setting it apart from others and deemed critically important:
Only Key Levels *
The main challenge in creating a levels indicator is ensuring only significant, key levels are displayed, avoiding clutter. This indicator achieves this by selectively filtering important levels from the noise and visually distinguishing confirmed levels (solid lines for tested or price-near levels) from unconfirmed (dashed lines for less important ones).
Visible Chart Fragment Only
It displays levels for only the visible part of the chart, avoiding an overload of lines across the entire history.
False Breakouts
Lines persist until a level is breached. Minor false breakouts are ignored.
Target Timeframe
Occasionally, viewing levels from a higher timeframe is necessary. This indicator can do so, highlighting target timeframe levels with thicker lines. It allows viewing levels from both the current and target timeframes simultaneously or just the target timeframe.
By Bodies or By Shadows
The indicator can draw support and resistance levels by both candle bodies and shadows, accommodating strategies based on breaking or bouncing off levels.
Level Price Tags
To avoid searching for the price at which a level is drawn, price tags are immediately visible near all currently relevant levels, simplifying and speeding up routine work.
Alerts
Setting alerts for approaching a level is a key feature. Haven't grasped its awesomeness? Here's why it's a game-changer: Set alerts on your favorite coins for each working timeframe. When the price approaches a level, you'll get a signal. Just open the chart to assess the situation and make a trading decision. This way, you don't waste time flipping through charts, searching for trading setups. Focus on your tasks, and let the indicator signal trading opportunities.
Three types of alerts are available: approaching a support level, a resistance level, or any level.
* Important (key) levels are the levels where the price reverses, or stops and “stomps around” for some time. This indicates that these places are an area of interest for a major seller or buyer. This effect is enhanced since such levels are visible to all market players, which means that even more traders can make trading decisions in these zones.
Three additional features enhance usability:
ATR in the Status Line: The indicator's status line displays four numbers - average price movement in points and percentages for both the current and target timeframes, invaluable for deciding stop and take-profit sizes if you base them on ATR. It works on historical data too—just hover over the desired chart section. Don't forget to enable indicator values display in its status line (right-click the indicator name to access the menu).
Visualize ATR: You can display the average price movement as a dotted line - one ATR up and one down from the current price. This visually indicates how close the price is to a level — whether within its average movement range. If you've enabled levels display for the higher timeframe, the average movement for it is also shown.
You can enable the mode for viewing historical levels. In this mode, when a level appears close to the historical one, a new level will not be drawn, but the historical level will continue. Use this option with caution, as the script will "pull out" too many old levels.
If you're interested in testing how effective this indicator is, send me a private message for free trial access. I believe it's a "must-have" for both beginners and experienced traders.
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Это один из самых лучших и полезных индикаторов, которые я когда-либо создавал. Он строит уровни поддержки и сопротивления в точках разворота. Задача данного индикатора - сэкономить время трейдера на прорисовку уровней и автоматизировать этот рутинный процесс.
Уровни поддержки и сопротивления - это одна из основ трейдинга. Каждый опытный трейдер может нарисовать их на графике, и в этом и заключается их важность для принятия торговых решений - их все видят, и все знают, что в зоне этих уровней располагается много ордеров в обе стороны.
Существует огромное количество индикаторов уровней, многие из которых бесплатны. Однако я не нашел ни одного индикатора, который бы был удобен в работе и делал бы именно то, ради чего он и нужен. Вот ключевые особенности и преимущества данного индикатора, которые отличают его от других индикаторов уровней. Я считаю их критически важными:
Только ключевые уровни *
Одна из главных проблем при написании индикатора уровней - как сделать так, чтобы на графике былы отображены только важные, ключевые уровни, и не было ничего лишнего. Данный индикатор делает это двумя способами. Во-первых, он не перегружает график лишними линиями, алгоритм умеет отбирать важные и отсекать шум. А во-вторых, подтвержденные уровни (если был тест или если цена подходила близко к уровню) визуально видны - они рисуются сплошной линией. Неподтвержденные (а значит, менее важные) уровни рисуются пунктиром.
Только видимый фрагмент графика
Показаны уровни лишь для видимого участка графика, а не огромное число линий одновременно для всей истории графика
Ложные пробои
Линии рисуются до того момента, пока уровень не будет пробит. Если происходят небольшие ложные пробои, они игнорируются.
Целевой таймфрейм
Иногда возникает необходимость увидеть уровни со старшего таймфрейма. Индикатор умеет это делать, при этом уровни целевого таймфрейма выделяются более толстыми линиями. Причем вы можете видеть как одновременно уровни с двух таймфреймов - с текущего и целевого, так и только с целевого.
По телам и по теням
Индикатор умеет рисовать уровни поддержки и сопротивления как по теням, так и по телам свечей. То есть, вы сможете применять его как для стратегии работы на пробой уровня, так и для стратегии работы на отбой от уровня.
На какой цене стоит уровень
Чтобы не искать цену, на которой нарисован уровень, вы сразу можете видеть метки с ценами возле всех актуальных на данный момент уровней. Это простая, но очень полезная функция, которая сильно облегчает и ускоряет рутинную работу.
Оповещения
Индикатор позволяет расставить оповещения о приближении к уровню. Это одна из ключевых особенностей индикаторы. Вы еще не поняли, насколько это крутая фишка? Объясняю. Добавляете оповещения на ваших любимых монетах на каждом из рабочих таймфреймов. Когда цена приблизится к одному из уровней, вы получите сигнал об этом. Достаточно будет открыть график и оценить ситуацию, чтобы принять торговое решение. Таким образом, вам не надо тратить время на перебор графиков и проводить часы в поисках торговой ситуации. Занимайтесь своими делами, а сигнал о торговой ситуации вам подаст индикатор.
Для облегчения работы доступны три вида оповещений - цена приближается к уровню поддержки, цена приближается к уровню сопротивления, цена приближается к одному из уровней.
* Важными (ключевыми) уровнями являются уровни, где цена разворачивается, либо останавливается и «топчется» некоторое время. Это свидетельствует о том, что эти места являются зоной интереса крупного продавца или покупателя. Этот эффект усиливается, так как такие уровни видны всем игрокам рынка, а, значит, еще больше трейдеров могут принимать торговые решения в этих зонах.
Я добавил три полезные фишки для удобства работы.
ATR в статусной строке. В статусной строке индикатора отображаются 4 числа - средний ход цены пунктах и в процентах для текущего ТФ, и то же самое для целевого ТФ. Очень удобно для принятия решения о размерах тейка и стопа, если вы привязываете их к ATR. Работает и на истории - просто подведите мышку к нужному участку графика. Не забудьте включить показ значений индикатора в его статусной строке (клик правой кнопкой мышки на названии индикатора вызовет нужное меню).
Можно отобразить средний ход цены пунктирной линией - один ATR вверх от текущей цены, и один ATR вниз. Таким образом, вы визуально сможете определить, насколько близко мы подошли к уровню - находится ли цена от уровня в пределах ее среднего хода, или нет. Если вы включили опцию отображения уровней для старшего ТФ, то будет показан средний ход и для него.
Можно включить режим просмотра исторических уровней. В этом режиме при появлении уровня, близкого к историческому, новый уровень рисоваться не будет, а будет продолжаться исторический уровень. Используйте эту опцию с осторожностью, так как скрипт "вытащит" слишком много старых уровней.
Если вы хотите попробовать, насколько хорош данный индикатор, напишите мне личное сообщение - я предоставлю вам бесплатный тестовый доступ. Я же считаю, что он относится к категории «маст хев» - как для новичков, так и для опытных трейдеров.
ATR Grid Levels [By MUQWISHI]▋ INTRODUCTION :
The “ATR Levels” produces a sequence of horizontal line levels above and below the Center Line (reference level). They are sized based on the instrument's volatility, representing the average historical price movement on a selected higher timeframe using the average true range (ATR) indicator.
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▋ OVERVIEW:
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▋ IMPLEMENTATION:
The indicator starts by drawing a Center Line that is selected by the user from a variety of common levels. Then, it draws a sequence of horizontal lines above and below the Center Line, which are sized based on the most confirmed average true range (ATR) at the selected higher timeframe.
In the top right corner of the chart, there is a table displaying both the selected ATR (in the right cell) and the ATR of the current bar (in the left cell). This feature enables users to compare these two values. It's important to note that the ATR of the current bar may not be confirmed yet, as the market is still active.
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▋ INDICATOR SETTINGS:
# Section (1): ATR Settings
(1) ATR Period & Smoothing.
(2) Timeframe where ATR value imported from.
(3) To show/hide the table comparison between the current ATR and the ATR for the selected period. Also, ability to color the current ATR cell if it’s greater.
# Section (2): Levels Settings
(1) Selecting a Center Line level among a variety of common levels, which is taken as reference level where a sequence of horizontal lines plot above and below it.
(2) Size of grid in ATR unit.
(3) Number of horizontal lines to plot in a single side.
(4) Grid Side. Ability to plot above or below the Center Line.
(5) Lines colors, and mode.
(6) Line style.
(7) Label style.
(8) Ability to remove old lines, from previous HTF.
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▋ COMMENT:
The ATR Levels should not be taken as a major concept to build a trading decision.
Please let me know if you have any questions.
Thank you.
Scalper's Volatility Filter [QuantraSystems]Scalpers Volatility Filter
Introduction
The 𝒮𝒸𝒶𝓁𝓅𝑒𝓇'𝓈 𝒱𝑜𝓁𝒶𝓉𝒾𝓁𝒾𝓉𝓎 𝐹𝒾𝓁𝓉𝑒𝓇 (𝒮𝒱𝐹) is a sophisticated technical indicator, designed to increase the profitability of lower timeframe trading.
Due to the inherent decrease in the signal-to-noise ratio when trading on lower timeframes, it is critical to develop analysis methods to inform traders of the optimal market periods to trade - and more importantly, when you shouldn’t trade.
The 𝒮𝒱𝐹 uses a blend of volatility and momentum measurements, to signal the dominant market condition - trending or ranging.
Legend
The 𝒮𝒱𝐹 consists of a signal line that moves above and below a central zero line, serving as the indication of market regime.
When the signal line is positioned above zero, it indicates a period of elevated volatility. These periods are more profitable for trading, as an asset will experience larger price swings, and by design, trend-following indicators will give less false signals.
Conversely, when the signal line moves below zero, a low volatility or mean-reverting market regime dominates.
This distinction is critical for traders in order to align strategies with the prevailing market behaviors - leveraging trends in volatile markets and exercising caution or implementing mean-reversion systems in periods of lower volatility.
Case Study
Here we can see the indicator's unique edge in action.
Out of the four potential long entries seen on the chart - displayed via bar coloring, two would result in losses.
However, with the power of the 𝒮𝒱𝐹 a trader can effectively filter false signals by only entering momentum-trades when the signal line is above zero.
In this small sample of four trades, the 𝒮𝒱𝐹 increased the win rate from 50% to 100%
Methodology
The methodology behind the 𝒮𝒱𝐹 is based upon three components:
By calculating and contrasting two ATR’s, the immediate market momentum relative to the broader, established trend is calculated. The original method for this can be credited to the user @xinolia
A modified and smoothed ADX indicator is calculated to further assess the strength and sustainability of trends.
The ‘Linear Regression Dispersion’ measures price deviations from a fitted regression line, adding further confluence to the signals representation of market conditions.
Together, these components synthesize a robust, balanced view of market conditions, enabling traders to help align strategies with the prevailing market environment, in order to potentially increase expected value and win rates.
Truncated ATRThis program uses SMA and Truncated Mean to calculate ATR.
A truncated mean or trimmed mean is a statistical measure of central tendency, much like the mean and median. It involves the calculation of the mean after discarding given parts of a probability distribution or sample at the high and low end, and typically discarding an equal amount of both.
Heiken Ashi Algo v6The Heiken Ashi Algo Oscillator v6, introduces a refined approach to technical analysis applicable across various markets. Central to this algorithm is the integration of the Relative Strength Index #RSI, a staple indicator renowned for its effectiveness in measuring momentum.
The RSI - Tried and True:
By incorporating the #RSI, traders gain valuable insights into the speed and strength of price movements, aiding in the identification of potential #trend #reversals and #continuations.
Why Heiken Ashi Candles:
Additionally, the utilization of #Heiken Ashi candles within this algorithm offers a smoother representation of price action, reducing noise and enhancing clarity in trend analysis. This feature is particularly advantageous in volatile markets, where traditional candlestick patterns may produce false signals. By employing Heiken #Ashi candles, traders can more accurately identify underlying trends and make informed decisions based on reliable price data.
Combining RSI and Heiken Ashi:
The synergy between the RSI and Heiken Ashi candles in the Heiken Ashi Algo Oscillator v6 provides traders with a comprehensive perspective on both momentum and trend direction. This combination allows for a nuanced analysis of market dynamics, enabling traders to navigate various market conditions with greater confidence.
Heiken Ashi Candle Sizes:
The size of the Heiken Ashi candles serves as a visual indicator of the distance the RSI has moved between closing prices, offering additional insights into momentum shifts.
Not your average Heiken Ashi Candles:
Ive taken the time to do some serious custom coding for these particular Heiken Ashi Candles.
They do NOT color as the normal ones do. There is a setting in the inputs tab of the indicator that allows you to color them according to my secret code where its looking for Breaks of Structure on lower timeframes based on Heiken Ashi Candle calculations.
Turning on this feature gives you a more promising array of candle colors telling you about false or positive breakouts and trends.
Why choose this tool:
CoffeeShopCrypto's Heiken Ashi Algo Oscillator v6 offers a balanced and effective tool for traders across different markets. By leveraging the power of the RSI and Heiken Ashi candles, traders can enhance their decision-making process, identify trading opportunities with greater precision, and ultimately improve their overall trading performance.
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Inflow / Outflow (accumulation and distribution) Ribbon
In trading we know liquidity means volume and volume is orders. This ribbon shows you when orders are entering, exiting, filling or flat in the market.
The Liquidity Ribbon is a visual representation of whats happening with accumulation and distribution in the market.
It acts as a dynamic area of support and resistance for the RSI (momentum).
Once the RSI breaks above or below the full area of the ribbon, you have an overturned short term market.
Breaking this area isn't easy because of the one sided thick line known as the PoC line or Point of Control Line.
This line changes between a rising and falling color to tell you what side of the market has the most resistance or support.
Custom HA candles
The common way for HA candles to be colors is green for bullish and red for bearish.
These candles color differently according to market dynamics vs how the current candle closes.
This is helpful to keep you from taking longs or shorts when the momentum just doesn't have the move.
How it all works together: Taking entries and failed breakouts.
In the image below (left to right) you can see the following take place:
Short Entry:
HA Candles push down through the ribbon breaking below its low side (Support Ribbon Broken)
Following this the RSI RANGE is broken to the down side.
This is a good setup for a short breakout
Retrace to false breakout:
After this price retraces and so does momentum.
HA Candles attempt to but fail to break through the top of the ribbon and push back down . This is a false breakout.
Bullish Divergence to Long Entry:
The Heiken Ashi Algo forms a bullish divergence and HA candles push back up into the ribbon. Without a change in candle structure the RSI breaks the top of the ribbon where the control line sits as well as breaking through the top of the RANGE area and
This is a promising setup for a long trade.
Rally Base Rally: (into secondary long trade)
As price is rising, it retraces until HA candles are within the RANGE. No candle closes or has a low below the RSI midline.
HA Candles are forming a consolidation. After consolidation the RSI breaks out the top of the ribbon and the top of the RANGE allowing a secondary long entry.
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Im not gonna lie. Ive written a lot of tutorials but this one was probably the most exciting to describe.
If you have any questions please do ask below.
ATR Based Support and Resistance Zones [UAlgo]🔶 ATR Based Support and Resistance Indicator 🔶
The ATR Based Support and Resistance Indicator is a technical tool designed for TradingView users to analyze and visualize support and resistance levels based on the Average True Range (ATR) indicator. ATR is a widely used volatility indicator that measures the average trading range of an asset over a specified period. This indicator utilizes ATR values to dynamically calculate and display support and resistance zones on the price chart.
🔶 Indicator Settings
ATR Length: This setting allows users to specify the length of the period over which the ATR indicator is calculated. A longer period results in a smoother ATR value, providing a broader view of market volatility.
ATR Multiplier: The ATR multiplier enables users to adjust the sensitivity of the support and resistance zones. Increasing the multiplier widens the zones, while decreasing it narrows them, allowing traders to customize the indicator according to their trading preferences and market conditions.
🔶 Key Features
Trend Identification: The indicator identifies potential support and resistance zones based on the relationship between the ATR values and the price action. When the current ATR value exceeds a certain threshold determined by the ATR multiplier, it indicates a significant price movement, potentially signaling a trend reversal or continuation.
Impulse Detection: The indicator detects impulses in price movement by comparing the current ATR value with the previous value. An impulse is identified when the current ATR value is greater than or equal to the previous value, indicating a sudden surge in market volatility.
Bearish Impulse Example :
Bullish Impulse Example:
Color-Coded Impulses: Impulse candles are color-coded for easy visualization of bullish (green) and bearish (red) impulses. This feature helps traders quickly identify potential trading opportunities and market trends.
Wick Percentage Calculation: The indicator calculates the percentage of the wick length relative to the true range of each candle. Users can specify a threshold percentage, and when the wick percentage exceeds this threshold, it indicates a potential support or resistance zone.
Support and Resistance Zones: The indicator plots support and resistance zones based on the calculated wick percentage. These zones are visualized as rectangular boxes on the price chart, highlighting areas where price reversals or significant price movements are likely to occur.
Customizable Styling: Users can customize the styling of support and resistance zones, including line style, width, border color, and background color. This flexibility allows traders to adapt the indicator's visual appearance to their personal preferences and trading strategies.
🔶 Usage
Traders can utilize the ATR Based Support and Resistance Indicator in various ways :
Trend Direction Analysis: By observing the color-coded impulse candles, traders can identify the prevailing trend direction (bullish or bearish) based on the frequency and magnitude of impulses.
Entry and Exit Signals: Traders can use the detected support and resistance zones as potential entry and exit points for their trades. When price approaches these zones, it may indicate a trading opportunity or signal the need to adjust stop-loss or take-profit levels.
Confirmation Tool: The indicator serves as a confirmation tool for identifying potential reversal or continuation signals in conjunction with other technical indicators or trading strategies.
ATR Percentage ValuesThis indicator is created to give you the daily ATR 2% and 10% values for any product that you are looking at. The way the indicator is designed is to only show the most recent 2 and 10 percent values on any chart and will not show you any other number. If you are hovering over price that occurred in the past it will show zeros on the values. To get the right values, take your mouse off of the chart and it will show you the values.
The way this indicator is coded will give you the daily ATR numbers no matter what chart timeframe you are currently looking at. The idea is to save time and make sure you do not make a mistake getting the wrong value.
*** To make this show up on the status line, click on the settings, click on the style box and check the box "VALUES IN STATUS LINE" ****
ATR Divergences [UAlgo]Divergence is a concept in financial markets that highlights inconsistencies between the price of an asset and a given indicator. This script focuses on identifying divergences using the Average True Range (ATR). Divergence occurs when there is a disparity between the direction of the price and the oscillator, providing valuable insights for traders anticipating potential trend reversals.
This script employs pivot points (with using High-Low values of the candles) to identify potential divergences between the oscillator (ATR) and price movements. Here's how each type of divergence is determined:
Key Features:
Regular Bullish Divergence:
Oscillator registers a higher low.
Price records a lower low.
Indicative of potential upward reversal.
Hidden Bullish Divergence:
Oscillator indicates a lower low.
Price exhibits a higher low.
Signals a concealed bullish continuation pattern.
Regular Bearish Divergence:
Oscillator shows a lower high.
Price marks a higher high.
Suggests a possible downward reversal.
Hidden Bearish Divergence:
Oscillator reflects a higher high.
Price displays a lower high.
Indicates a hidden bearish continuation pattern.
Usage and Customization:
ATR Length: Adjustable parameter for customizing the Average True Range calculation period.
Plot Options: Choose to display Regular Bullish, Hidden Bullish, Regular Bearish, and/or Hidden Bearish divergences.
Wait for Candle Close: Option to wait for candle closure before plotting signals.
How to Interpret:
Regular divergences may indicate potential trend reversals, while hidden divergences suggest a continuation of the current trend. Traders can leverage these signals to make informed decisions in their trading strategies.
Feel free to customize the parameters based on your trading preferences. Happy Trading!
