HODL LINE [AstrideUnicorn]This indicator determines periods of bull market when a buy-and-hold investor can hold the asset, and bear market periods when they should avoid holding it. Though it was designed primarily with cryptocurrencies in mind, it can be successfully used for any market.
Technically, the indicator is an asymmetric trend filter aimed to account for the fact that market sell-offs tend to be sharper than up-trends. The algorithm has two regimes – with and without price smoothing.
HOW TO USE
The step-like line is the main trend filter. It is colored green in an uptrend and red in a downtrend. When the smoothing is on, in addition to the trend filter, the indicator plots a purple line. It is a Hull Moving Average (HMA) of the price. In this case, the indicator uses this line instead of the price to find crossings with the trend filter.
When the price or the smoothed line crosses the trend filter above, it is an uptrend signal. The indicator marks such crossings with green circles. It also colors the chart background green in an uptrend. The price or the purple line crossing the trend filter below means a downtrend signal. Downtrend signals show as red circles. The chart background in a downtrend turns red.
SETTINGS
Sensitivity – a dropdown list that allows the user to choose an averaging period of the indicator. Users can select a value for sensitivity from a predetermined set that better suits their investment horizon.
Use Smoothing – turns on and off smoothing of the price with HMA. With the smoothing turned on, the indicator responds slower to price changes, but at the same time produces less amount of false signals.
Bearmarketsignal
Market Risk ON/OFFMarket Risk ON/OFF is a indicator designed to show you when it may be a good time to add hedges and/or reduce long exposure to the US stock market. It can be used to make forecasts on the overall market, when a crash or bear market may be about to occur and when a bull market is still strong. When the indicator is applied to a chart, entire time periods will be shaded either Green (Risk-ON Mode) or shaded Red (Risk-OFF Mode). It can be applied to any chart, however it's best applied to a chart of the S&P 500 Index or the ETF $SPY on the daily timeframe.
It's calculation is based on 3 things; price action of the S&P 500 Index ETF $SPY, overall market breadth (that is advancing stocks versus declining stocks) and CBOE Volatility (VIX) Futures term structure. By default 2 out of these 3 signals must be in confluence for a regime change from Risk-On to Risk-Off mode, however this setting can be changed to either 1, 2 or 3 signals required for a regime change.
You can see in the chart above an example of how this indicator would have alerted users on the 25th February 2020 of a change to Risk-Off mode and allowed you to prepare for a possible market crash which happened (the Covid bear market) and when things settled down it switched back to Risk-On mode on the 24th of April 2020 letting you know it was safer to position your portfolio for a bull market again.
Here's another example from the 2008 Global Financial Crisis (GFC) market crash of the Market Risk ON/OFF indicator alerting you to a possible crash.
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Disclaimer: All my scripts and content are for educational purposes only. I'm not a financial advisor and do not give personal finance advice. Past performance is no guarantee of future performance. Please trade at your own risk.
