MTF Countdown with Direction - AynetIndicator Definition and Inputs:
pineCopyindicator('MTF Countdown with Direction - Aynet', overlay = true)
This code creates a Multiple Time Frame (MTF) countdown indicator with direction
The overlay = true parameter places the indicator on top of the price chart
Timeframe Options:
Users can choose to show/hide the following timeframes:
1 minute
5 minutes
15 minutes
30 minutes
1 hour
4 hours
Daily
Time Calculations:
pineCopyget_current_time()
Calculates the current time
Converts Unix timestamp to seconds
Calculates time since midnight
Returns time broken down into hours, minutes, and seconds
Countdown Calculation:
pineCopyget_period_countdown(period_seconds)
Calculates remaining time for each timeframe
Computes elapsed time in current period
Returns remaining time in hours, minutes, and seconds
Direction and Closing Price Calculation:
Separate functions for each timeframe (get_direction_and_close_1m(), get_direction_and_close_5m(), etc.)
Each function:
Gets current closing price
Compares with previous closing price
Determines direction (up: 1, down: -1, sideways: 0)
Returns direction and closing price
Table Creation and Updates:
Creates a table in the top right corner
Table consists of 4 columns:
Period (Timeframe)
Time Left (Remaining time)
Direction (Shown with arrows)
Close (Closing price)
Each row has a different background color
Direction arrows:
Green up arrow (▲): Price rising
Red down arrow (▼): Price falling
Gray line (―): Price sideways
Dynamic Data Structures:
pineCopyvar timeframes = array.new_int()
var timeframe_names = array.new_string()
var show_array = array.new_bool()
Uses dynamic arrays for timeframes
Adds selected timeframes to arrays on first run
Key Features:
Shows remaining time until period close
Displays price direction for each timeframe
Shows current closing prices
All information in a single, easy-to-read table
This indicator helps traders by providing a comprehensive view of:
When each timeframe will close
The direction of price movement
Current closing prices
across multiple timeframes in a single table, making it easier to track market movements across different time periods.
The color-coding and arrow system makes it visually intuitive to understand market direction at a glance, while the countdown timer helps with timing decisions.
Candlestick analysis
Enigma Endgame with Dynamic Trend-Based FibonacciThe Enigma Endgame script combines dynamic trend-based Fibonacci levels with the core principles of the ENIGMA strategy. It provides traders with actionable signals by identifying key levels of fractal support and resistance and highlighting opportunities to trade with market momentum. This tool is designed for multi-timeframe analysis and is especially effective during high-volatility sessions like London and New York.
Purpose and Usefulness
This script was developed to simplify complex market dynamics by integrating Fibonacci principles with ENIGMA's logic of fractal support and resistance. Traders can use it to:
- Identify key breakout and retracement levels dynamically.
- Understand the shift between support and resistance as price action evolves.
- Gain confidence in their entries with real-time signals derived from logical fractal behavior.
By merging Fibonacci levels with fractal-based trading insights, this script offers a unique and comprehensive approach to analyzing market structure.
How It Works
The script uses a dual approach to provide insights:
1. Dynamic Fibonacci Levels:
- Automatically plots Fibonacci retracement and extension levels based on recent high and low swings, adjusting dynamically to current market trends.
- Allows traders to visualize key levels where price might reverse or extend.
2. Fractal Support and Resistance Logic:
- The script identifies fractal support and resistance by analyzing candle formations.
- When a candle body closes below the low of a previous candle, the previous low, which was fractal support, now becomes fractal resistance. The script generates a bearish signal, encouraging traders to look for sell opportunities at or above the previous low.
- Conversely, when a candle body closes above the high of a previous candle, the previous high, which was fractal resistance, becomes fractal support. The script generates a bullish signal, encouraging traders to look for buy opportunities at or below the previous high.
Real-Time Signals
The script marks these transitions with arrows on the chart:
- Bearish arrows indicate broken fractal support turning into resistance.
- Bullish arrows** indicate broken fractal resistance turning into support.
These signals help traders stay aligned with the trend and trade with market momentum.
Key Features
1. Session-Based Analysis: Focuses on high-probability setups by allowing traders to customize session times, such as London or US sessions.
2. Multi-Timeframe Support: Works seamlessly across multiple timeframes for both scalpers and swing traders.
3. Real-Time Alerts: Sends customizable alerts when price interacts with critical Fibonacci levels or fractal support/resistance shifts.
How to Use the Script
1. Apply the script to a clean chart for clear visualization. Avoid combining it with other scripts unless necessary.
2. Use the arrows to identify shifts in fractal support and resistance and validate opportunities for buy/sell trades.
3. Monitor the dynamic Fibonacci levels to find confluence with key price areas.
4. Customize session times to focus on high-probability trading hours.
Key Notes for Traders
- This script provides insights based on logical market structure but should be used alongside proper risk management and trading plans.
- The fractal-based approach works well in conjunction with dynamic Fibonacci levels, helping traders build confidence in their strategy.
- Adapt the script settings to match your unique trading style and timeframe preferences.
By offering a seamless integration of fractal logic and Fibonacci principles, Enigma Endgame empowers traders with actionable insights to navigate markets effectively.
Santa's Adventure [AlgoAlpha]Introducing "Santa's Adventure," a unique and festive TradingView indicator designed to bring the holiday spirit to your trading charts. With this indicator, watch as Santa, his sleigh, Rudolf the reindeer, and a flurry of snowflakes come to life, creating a cheerful visual experience while you monitor the markets.
Key Features:
🎁 Dynamic Santa Sleigh Visualization : Santa's sleigh, Rudolf, and holiday presents adapt to price movements and chart structure.
🎨 Customizable Holiday Colors : Adjust colors for Santa’s outfit, Rudolf’s nose, sleigh, presents, and more.
❄️ Realistic Snow Animation : A cascade of snowflakes decorates your charts, with density and range adjustable to suit your preferences.
📏 Adaptive Scaling : All visuals scale based on price volatility and market dynamics.
🔄 Rotation by Trend : Santa and his entourage tilt to reflect market trends, making it both functional and fun!
How to Use :
Add the Indicator to Your Chart : Search for "Santa's Adventure" in the TradingView indicator library and add it to your favorites. Use the input menu to adjust snow density, sleigh colors, and other festive elements to match your trading style or holiday mood.
Observe the Market : Watch Santa’s sleigh glide across the chart while Rudolf leads the way, with snowflakes gently falling to enhance the visual charm.
How It Works :
The indicator uses price volatility and market data to dynamically position Santa, his sleigh, Rudolf, and presents on the chart. Santa's Sleigh angle adjusts based on price trends, reflecting market direction. Santa's sleigh and the snowstorm are plotted using advanced polyline arrays for a smooth and interactive display. A festive algorithm powers the snowfall animation, ensuring a consistent and immersive holiday atmosphere. The visuals are built to adapt seamlessly to any market environment, combining holiday cheer with market insights.
Add "Santa's Adventure" to your TradingView charts today and bring the holiday spirit to your trading journey, Merry Christmas! 🎅🎄
Filtered ATR with EMA OverlayFiltered ATR with EMA Overlay is an advanced volatility indicator designed to provide a more accurate representation of market conditions by smoothing the standard Average True Range (ATR). This is achieved by filtering out extreme price movements and abnormal bars that can distort traditional ATR calculations.
The indicator applies an Exponential Moving Average (EMA) to the filtered ATR, creating a dual-layered system that highlights periods of increased or decreased volatility.
Key Features:
Filtered ATR: Filters out extreme bars, reducing noise and making the ATR line more reliable.
EMA Overlay: An EMA (default period of 10) is applied to the filtered ATR, allowing traders to track average volatility trends.
Volatility Signals:
Filtered ATR > EMA(10): Indicates higher-than-average volatility. This often correlates with trend breakouts or strong price movements.
Filtered ATR < EMA(10): Suggests reduced volatility, signaling potential consolidation or sideways price action.
Parameters:
atrLength (Default: 5):
The number of bars used to calculate the ATR. A shorter period (e.g., 3-5) responds faster to price changes, while a longer period (e.g., 10-14) provides smoother results.
multiplier (Default: 1.8):
Controls the sensitivity of the filter. A lower multiplier (e.g., 1.5) filters out more bars, resulting in smoother ATR. Higher values (e.g., 2.0) allow more bars to pass through, retaining more price volatility.
maxIterations (Default: 20):
The maximum number of bars processed to detect abnormal values. Increasing this may improve accuracy at the cost of performance.
ema10Period (Default: 10):
The period for the Exponential Moving Average applied to the filtered ATR. Shorter periods provide faster signals, while longer periods give smoother, lagging signals.
Trading Strategies:
1. Breakout Strategy:
When filtered ATR crosses above EMA(10):
Enter long positions when price breaks above a key resistance level.
Higher volatility suggests strong price action and momentum.
When filtered ATR drops below EMA(10):
Exit positions or tighten stop-loss orders as volatility decreases.
Lower volatility may indicate consolidation or trend exhaustion.
2. Trend Following Strategy:
Use the filtered ATR line to track overall volatility.
If filtered ATR consistently stays above EMA: Hold positions or add to trades.
If filtered ATR remains below EMA: Reduce position size or stay out of trades.
3. Mean Reversion Strategy:
When filtered ATR spikes significantly above EMA, it may indicate market overreaction.
Look for price to revert to the mean once ATR returns below the EMA.
4. Stop-Loss Adjustment:
As volatility increases (ATR above EMA), widen stop-loss levels to avoid being stopped out by random fluctuations.
In low volatility (ATR below EMA), tighten stop-losses to minimize losses during low activity periods.
Benefits:
Reduced Noise: By filtering abnormal bars, the indicator provides cleaner signals.
Better Trend Detection: EMA smoothing highlights volatility trends.
Adaptable: The indicator can be customized for scalping, day trading, or swing trading.
Intuitive Visualization: Traders can visually see volatility shifts and adjust strategies in real-time.
Best Practices:
Timeframes: Works effectively on all timeframes, but higher timeframes (e.g., 1H, 4H, Daily) yield more reliable signals.
Markets: Suitable for forex, crypto, stocks, and commodities.
Combining Indicators: Use in combination with RSI, Moving Averages, Bollinger Bands, or price action analysis for stronger signals.
How It Works (Under the Hood):
The script calculates the Daily Range (High - Low) for each bar.
The largest and smallest bars are filtered out if their difference exceeds the multiplier (default 1.8).
The remaining bars are averaged to generate the filtered ATR.
An EMA(10) is then applied to the filtered ATR for smoother visualization.
Brijesh TTrades candle plot"Brijesh TTrades candle plot" is a powerful and customizable indicator that allows you to overlay higher timeframe candles directly on your chart. Choose your desired timeframe (e.g., Daily, Hourly) and plot up to 10 recent candles with precise control over color, wick style, and width. The candles are offset by 40 bars to the right, providing a clear and unobstructed view of the current price action. Ideal for multi-timeframe analysis and gaining deeper insights into market trends.
Weekly and daily separators - MKThis indicator is designed to provide easier usability and greater customization for traders. The update brings enhanced stability and reliability in detecting day, week, and month changes across various timeframes, ensuring consistent and accurate visuals on your charts.
Key Features:
Time Zone Customization: Select the time zone to determine when session changes are marked.
Adjustable Line Coverage: Lines can now be customized to only partially cover the top and bottom of the chart, offering a cleaner look.
Optional Labels: Enable labels to display the starting month, calendar week, or day. Day formats include:
Weekday name
Date in formats: dd.MM or MM.dd
Visual Enhancements:
Default line widths and colors now use an orange hue for better visibility.
Added a monthly separator line for better long-term trend tracking.
Higher time frame color options for clarity.
Independent customization of line styles and widths.
Additional Improvements:
Ability to hide daily lines on daily charts and higher timeframes. Similarly, weekly lines can be hidden on weekly charts and higher.
Secondary line width for weekly separators on daily and higher timeframes, ensuring cleaner chart aesthetics.
Updated color selection and default values for better readability.
Multi-Timeframe Candle Analysis [by Oberlunar]Multi-Timeframe Candle Analysis
Scalping often requires traders to make rapid decisions based on price movements within a short timeframe. However, a key challenge is understanding the broader trend and market pressure across higher timeframes without cluttering the workspace with multiple charts. This can lead to a lack of clarity, missed opportunities, or poorly timed trades.
The Multi-Timeframe Candle Analysis script addresses this challenge by providing a consolidated view of essential information across multiple timeframes in a single interface. This script calculates and displays the volatility, strength, and type (bullish or bearish) of candles for up to six customizable timeframes. With this data presented in a neat table, traders can quickly assess market conditions without the need to open multiple charts.
How It Works
The script analyzes six user-defined timeframes, ranging from intraday intervals (e.g., 15 or 30 minutes) to daily or even weekly periods. It extracts critical data such as open, high, low, and close prices for the current and previous candles. From this data, the script computes:
Candle Type: Identifies whether the candle is bullish or bearish based on the close relative to the open.
Volatility Percentage Change: Measures the percentage change in candle volatility compared to the previous candle.
Candle Strength: Evaluates the strength of price movements within the candle relative to the previous one.
These metrics are organized into an easy-to-read table that updates dynamically as the market moves. The table color codes bullish and bearish candles for quick visual recognition, enhancing decision-making speed.
Inside Bar Multi-Currency ScannerDescription:
This script is an Inside Bar Scanner that allows you to monitor multiple currency pairs across different timeframes (15 minutes, 1 hour, and 4 hours). Its main features include:
Inside Bar Detection:
An Inside Bar is a candlestick where both the High and Low are within the range of the previous candle.
The script automatically identifies Inside Bars and displays the results in a table.
Customizable Timeframes:
Supports scanning in 15-minute, 1-hour, and 4-hour timeframes.
Results are displayed for each timeframe separately.
Multi-Currency Support:
Scan up to 10 currency pairs simultaneously.
Currency pairs are customizable and selected by the user.
Candle Coloring:
Inside Bars are highlighted with colors:
Semi-transparent green for bullish Inside Bars.
Semi-transparent red for bearish Inside Bars.
Colors are customizable and selected by the user.
Alerts:
Custom alerts for detecting Inside Bars in selected timeframes.
Receive notifications when an Inside Bar is detected in any of the selected currency pairs.
How to Use:
Select your desired currency pairs from the Scanner Currencies section.
Enable your preferred timeframes in the Scanner Timeframe section.
The script will display a table of results with Inside Bar information for each currency pair and timeframe.
Optionally, customize the candle colors in the Scanner InsideBar Color section.
Additional Explanation for Timeframe Status:
In each selected timeframe, there are three possible states for the candles:
Previous Candle is an Inside Bar:
Displayed with a green background and the symbol ✔.
Previous Candle is NOT an Inside Bar:
Displayed with a red background and the symbol ✘.
Current Candle is an Inside Bar:
Displayed with an orange background and the symbol ⌕.
These visual indicators provide a clear and quick overview of the Inside Bar status for each selected currency pair and timeframe.
ATR Multi-Timeframe (Trend Direction + Current Levels) Indicator Name
ATR Multi-Timeframe (Trend Direction + Current Levels)
Description
This indicator helps you visualize support and resistance levels based on the Average True Range (ATR) and track the current trend direction across multiple timeframes (daily, weekly, and monthly). It is a valuable tool for traders looking to enhance decision-making and market volatility analysis.
Key Features
Multi-Timeframe ATR Analysis:
Calculates the Average True Range (ATR) and True Range (TR) for daily, weekly, and monthly timeframes.
Trend Direction Indicators:
Displays trend direction using arrows (▲ for uptrend, ▼ for downtrend) with color-coded labels (green for uptrend, red for downtrend).
Support and Resistance Levels:
Dynamically calculates trend levels (Open ± ATR) and opposite levels for each timeframe.
Persistent lines extend these levels into the future for better visualization.
Customizable Settings:
Toggle visibility of daily, weekly, and monthly levels.
Adjust line width and colors for each timeframe.
Summary Table:
Displays a compact table showing ATR percentages, TR percentages, and trend direction for all timeframes.
Why Use This Indicator?
Quickly identify key support and resistance levels across different timeframes.
Understand market volatility through ATR-based levels.
Spot trends and reversals with easy-to-read visual elements.
How to Use:
Add the indicator to your chart.
Enable or disable specific timeframes (Daily, Weekly, Monthly) in the settings.
Adjust line styles and colors to match your preferences.
Use the displayed levels to plan entry/exit points or manage risk.
This indicator is perfect for both swing and intraday traders who want a clear and dynamic view of volatility and trend across multiple timeframes.
Fair Value Gap [by Oberlunar]Fair Value Gap
This indicator is designed to identify and display Fair Value Gaps (FVG) on the price chart. Fair Value Gaps are areas between candles where the price lacks continuity, leaving a "gap" that can serve as a reference point for price retracements. These zones are often considered important by traders as they represent market imbalances that tend to be "mitigated" (i.e., filled or tested) over time.
Purpose of Publication
This indicator addresses a common gap in FVG indicators. Most existing FVG indicators do not visually distinguish between mitigated (touched) FVGs and those that remain intact. With this indicator:
Mitigated FVGs are clearly displayed with distinct colors, allowing traders to identify which zones have been partially or fully filled by the price.
Unmitigated FVGs remain prominent, representing potential points of interest.
Key Features
Identification of Fair Value Gaps:
A Bullish FVG (upward gap) forms when the high of the three previous candles (candle -3) is lower than the low of the next candle (candle -1).
A Bearish FVG (downward gap) forms when the low of the three previous candles (candle -3) is higher than the high of the next candle (candle -1).
Dynamic Coloring:
Unmitigated FVGs are highlighted with specific colors: green for Bullish and red for Bearish gaps.
When an FVG is "touched" by the price (i.e., mitigated), the color changes:
Yellow-green for mitigated Bullish FVGs.
Purple for mitigated Bearish FVGs.
Handling Mitigated FVGs:
When an FVG is touched by the price, it is visually updated with a different color.
An option can be enabled to "shrink" the mitigated zone, adjusting the box to reflect the remaining untested portion of the gap.
Customization:
Configure the maximum number of FVGs to display on the chart.
Set specific colors for mitigated and unmitigated FVGs.
Choose whether to automatically shrink mitigated zones.
How to Identify Support and Resistance Levels
Support:
Bullish FVGs represent potential support levels, as they indicate areas where the price might return to seek liquidity or fill the imbalance.
An FVG that is repeatedly touched without being fully filled becomes a significant support zone.
Resistance:
Bearish FVGs represent potential resistance levels, indicating zones where the price might stall or reverse direction.
Why a Repeatedly Mitigated FVG is Significant
When an FVG is touched or mitigated multiple times, it means the market recognizes that area as significant. This can happen for several reasons:
Accumulation or Distribution: Institutional traders may use these zones to accumulate or distribute positions without causing excessive market movement.
Presence of Liquidity: FVGs often represent areas with pending orders (stop-losses, limit orders), and the price revisits these zones to seek liquidity.
Market Equilibrium: When an FVG is repeatedly filled, it indicates the market's attempt to balance a demand-supply imbalance. This makes the zone an important level to monitor for potential breakouts or reversals.
Intrabar BoxPlotThe Intrabar BoxPlot publication highlights an uncommon technique by displaying statistical intrabar Lower Timeframe (LTF) values on the chart.
🔶 USAGE
🔹 Middle 50% Boxes
By showing the middle 50% intrabar values through a box, we can more easily see where the intrabar activity is mainly situated.
The middle 50% intrabar values are referred to from here on as Interquartile range (IQR).
In this example, the successive IQRs form a channel where the price eventually breaks out.
Disproportionately distributed values can give insights which can be used to find potential support/resistance areas.
IQR gaps can give valuable information as well. Potentially, the price can return to these gaps.
Seeing the IQR areas against regular candles gives an alternative image of the underlying price movements.
🔹 Highest volume Price level
The script displays the price level with the highest volume situated, dependable on the user's source setting. Setting the source at 'close' will only display intrabar close values; the same goes for high, low, ...
As seen in the above example, the volume levels can aid in finding support/resistance.
🔹 Median
The location of the median off all intrabar values is displayed as a coloured dot: green when the close price is higher than the opening price and red if otherwise. The median can give valuable insights into price movements.
🔹 Outliers
Medium (white dots) and extreme (white X) outliers, in combination with the IQR box, can help identify potential areas of interest.
🔹 Volume Delta
When there is a discrepancy between the delta volume and direction of the candle, this will be displayed as follows:
Green candle: when the sum of the volume of red intrabars is higher than the sum of the volume of green intrabars, the candle will be coloured orange.
Red candle: when the sum of the volume of green intrabars is higher than the sum of the volume of red intrabars, the candle will be coloured blue.
🔹 Highlight Boxplot only
Probably the easiest way to display boxplot only is by changing the Bar's style to Bars .
🔶 DETAILS
All intrabar values (Lower TimeFrame - LTF) are sorted and evaluated. Values can be close , high , low , ... by selecting this in Settings ( source ).
The middle 50% of all values are displayed as a box; this contains the values between percentile 25 (p25) and percentile 75 (p75). The value of percentile rank 75 means 75% of all values are lower. The value of percentile rank 25 means 25% of all values are lower, or 75% is higher.
The difference between p75 and p25 is also known as Interquartile range (IQR)
IQR is used to check for outliers.
Wiki: Boxplot , Interquartile range
Extreme high: maximum value, higher than p75 + IQR*3
Max outlier high: maximum value, higher than p75 + IQR*1.5 but lower than p75 + IQR*3
Max: maximum value, lower than p75 + IQR*1.5
Min: minimum value, higher than p25 - IQR*1.5
Min outlier low: minimum value, lower than p25 - IQR*1.5 but higher than p25 - IQR*3
Extreme low: minimum value, lower than p25 - IQR*3
Max and min must not be interpreted with the current candle high/low.
🔹 Example: Length of chart-puppets
The following example can make it easier to digest. Forty "chart-puppets" are sorted by their length.
The p25 value is 97
The p50 value is 120
The p75 value is 149
75% of all "chart-puppets" are smaller than p75, and 25% is larger than p75.
50% of all "chart-puppets" are smaller than p50, and 50% is larger than p50 (= median).
25% of all "chart-puppets" are smaller than p25, and 75% is larger than p25.
IQR = 149 - 97 = 52
Extreme outlier limit max: p75 + IQR*3 = 149 + 52*3 = 305
Mild outlier limit max: p75 + IQR*1.5 = 149 + 52*1.5 = 227
Mild outlier limit min: p25 - IQR*1.5 = 97 - 52*1.5 = 19
Extreme outlier limit min: p25 - IQR*3 = 97 - 52*3 = -59
In this example there are no outliers to be found, all values are located between p25 - IQR*1.5 (19) and p75 + IQR*1.5. (227)
🔹 Source settings
Note that results are dependable on the chosen source (settings). When, for example, close is chosen as the source, only intrabar close prices are included. This means a low or high can stretch further then the min or max.
Here we can see different results with different source settings
🔹 LTF settings
When 'Auto' is enabled (Settings, LTF), the LTF will be the nearest possible x times smaller TF than the current TF. When 'Premium' is disabled, the minimum TF will always be 1 minute to ensure TradingView plans lower than Premium don't get an error.
Examples with current Daily TF (when Premium is enabled):
500 : 3 minute LTF
1500 (default): 1 minute LTF
5000: 30 seconds LTF (1 minute if Premium is disabled)
🔶 SETTINGS
Source: Set source at close, high, low,...
🔹 LTF
LTF: LTF setting
Auto + multiple: Adjusts the initial set LTF
Premium: Enable when your TradingView plan is Premium or higher
🔹 Intrabar Delta : Colors, dependable on different circumstances.
Up: Price goes up, with more bullish than bearish intrabar volume.
Up-: Price goes up, with more bearish than bullish intrabar volume.
Down: Price goes down, with more bearish than bullish intrabar volume.
Down+: Price goes down, with more bullish than bearish intrabar volume.
🔹 Table
Show table: Show details at the top right corner
Show TF: Show LTF at the bottom right corner
Text color/table size
See DETAILS for more information
Volume Delta Candles HTF [TradingFinder] LTF Volume Candles 🔵 Introduction
In financial markets, understanding the concepts of supply and demand and their impact on price movements is of paramount importance. Supply and demand, as fundamental pillars of economics, reflect the interaction between buyers and sellers.
When buyers' strength surpasses that of sellers, demand increases, and prices tend to rise. Conversely, when sellers dominate buyers, supply overtakes demand, causing prices to drop. These interactions play a crucial role in determining market trends, price reversal points, and trading decisions.
Volume Delta Candles offer traders a practical way to visualize trading activity within each candlestick. By integrating data from lower timeframes or live market feeds, these candles eliminate the need for standalone volume indicators.
They present the proportions of buying and selling volume as intuitive colored bars, making it easier to interpret market dynamics at a glance. Additionally, they encapsulate critical metrics like peak delta, lowest delta, and net delta, allowing traders to grasp the market's internal order flow with greater precision.
In financial markets, grasping the interplay between supply and demand and its influence on price movements is crucial for successful trading. These fundamental economic forces reflect the ongoing balance between buyers and sellers in the market.
When buyers exert greater strength than sellers, demand dominates, driving prices upward. Conversely, when sellers take control, supply surpasses demand, and prices decline. Understanding these dynamics is essential for identifying market trends, pinpointing reversal points, and making informed trading decisions.
Volume Delta Candles provide an innovative method for evaluating trading activity within individual candlesticks, offering a simplified view without relying on separate volume indicators. By leveraging lower timeframe or real-time data, this tool visualizes the distribution of buying and selling volumes within a candle through color-coded bars.
This visual representation enables traders to quickly assess market sentiment and understand the forces driving price action. Buyer and seller strength is a critical concept that focuses on the ratio of buying to selling volumes. This ratio not only provides insights into the market's current state but also serves as a leading indicator for detecting potential shifts in trends.
Traders often rely on volume analysis to identify significant supply and demand zones, guiding their entry and exit strategies. Delta Candles translate these complex metrics, such as Maximum Delta, Minimum Delta, and Final Delta, into an easy-to-read visual format using Japanese candlestick structures, making them an invaluable resource for analyzing order flows and market momentum.
By merging the principles of supply and demand with comprehensive volume analysis, tools like the indicator introduced here offer unparalleled clarity into market behavior. This indicator calculates the relative strength of supply and demand for each candlestick by analyzing the ratio of buyers to sellers.
🔵 How to Use
The presented indicator is a powerful tool for analyzing supply and demand strength in financial markets. It helps traders identify the strengths and weaknesses of buyers and sellers and utilize this information for better decision-making.
🟣 Analyzing the Highest Volume Trades on Candles
A unique feature of this indicator is the visualization of price levels with the highest trade volume for each candlestick. These levels are marked as black lines on the candles, indicating prices where most trades occurred. This information is invaluable for identifying key supply and demand zones, which often act as support or resistance levels.
🟣 Trend Confirmation
The indicator enables traders to confirm bullish or bearish trends by observing changes in buyer and seller strength. When buyer strength increases and demand surpasses supply, the likelihood of a bullish trend continuation grows. Conversely, decreasing buyer strength and increasing seller strength may signal a potential bearish trend reversal.
🟣 Adjusting Timeframes and Calculation Methods
Users can customize the indicator's candlestick timeframe to align with their trading strategy. Additionally, they can switch between moving average and current candle modes to achieve more precise market analysis.
This indicator, with its accurate and visual data display, is a practical and reliable tool for market analysts and traders. Using it can help traders make better decisions and identify optimal entry and exit points.
🔵 Settings
Lower Time Frame Volume : This setting determines which timeframe the indicator should use to identify the price levels with the highest trade volume. These levels, displayed as black lines on the candlesticks, indicate prices where the most trades occurred.
It is recommended that users align this timeframe with their primary chart’s timeframe.
As a general rule :
If the main chart’s timeframe is low (e.g., 1-minute or 5-minute), it is better to keep this setting at a similarly low timeframe.
As the main chart’s timeframe increases (e.g., daily or weekly), it is advisable to set this parameter to a higher timeframe for more aligned data analysis.
Cumulative Mode :
Current Candle : Strength is calculated only for the current candlestick.
EMA (Exponential Moving Average) : The strength is calculated using an exponential moving average, suitable for identifying longer-term trends.
Calculation Period : The default period for the exponential moving average (EMA) is set to 21. Users can modify this value for more precise analysis based on their specific requirements.
Ultra Data : This option enables users to view more detailed data from various market sources, such as Forex, Crypto, or Stocks. When activated, the indicator aggregates and displays volume data from multiple sources.
🟣 Table Settings
Show Info Table : This option determines whether the information table is displayed on the chart. When enabled, the table appears in a corner of the chart and provides details about the strength of buyers and sellers.
Table Size : Users can adjust the size of the text within the table to improve readability.
Table Position : This setting defines the table’s placement on the chart.
🔵 Conclusion
The indicator introduced in this article is designed as an advanced tool for analyzing supply and demand dynamics in financial markets. By leveraging buyer and seller strength ratios and visually highlighting price levels with the highest trade volume, it aids traders in identifying key market zones.
Key features, such as adjustable analysis timeframes, customizable calculation methods, and precise volume data display, allow users to tailor their analyses to market conditions.
This indicator is invaluable for analyzing support and resistance levels derived from trade volumes, enabling traders to make more accurate decisions about entering or exiting trades.
By utilizing real market data and displaying the highest trade volume lines directly on the chart, it provides a precise perspective on market behavior. These features make it suitable for both novice and professional traders aiming to enhance their analysis and trading strategies.
With this indicator, traders can gain a better understanding of supply and demand dynamics and operate more intelligently in financial markets. By combining volume data with visual analysis, this tool provides a solid foundation for effective decision-making and improved trading performance. Choosing this indicator is a significant step toward refining analysis and achieving success in complex financial markets.
Support and Resistance TrendlinesStrategy:
Support: Identified as the lowest low over a specific period.
Resistance: Identified as the highest high over a specific period.
Dynamic Trendlines: We’ll use the concept of a rolling window to calculate the highest highs and lowest lows over the last n bars (you can adjust the number of bars for more sensitivity).
Explanation:
Lookback Period (length): The number of bars over which we calculate the support and resistance levels. You can adjust this value depending on the timeframe and the sensitivity you want for the trendlines.
Resistance: This is the highest high over the length of bars. We use ta.highest(high, length) to find the highest high within the specified lookback period.
Support: This is the lowest low over the length of bars. We use ta.lowest(low, length) to find the lowest low within the specified lookback period.
Plotting the Lines:
We plot the support and resistance as horizontal lines on the chart using plot().
Additionally, we create dynamic trendlines that update automatically with each new bar. The line.new function creates lines that can be modified dynamically as new price data comes in.
Line Persistence:
The line functions are used to create horizontal lines that persist across bars. The trendlines adjust their position as the bars move forward.
How It Works:
This indicator will automatically detect the highest and lowest prices over the last n bars and draw support (green line) and resistance (red line) levels on the chart.
The trendlines will adjust as the market evolves and provide visual reference points for potential areas of price reversal.
How to Use This Script:
Copy and paste the Pine Script code into the Pine Script Editor on TradingView.
Save the script, and then add it to your chart.
Adjust the Lookback Period input to suit your trading strategy and timeframe.
The support and resistance levels will be drawn dynamically, and the lines will update as new bars form.
Customizations:
You can modify the number of bars (length) used to calculate support and resistance, depending on the timeframes you're interested in.
If you need more advanced trendline drawing (such as drawing trendlines between significant high/low points or automatic adjustment to more complex patterns), you might need to implement more advanced logic using peaks and valleys or price action patterns.
Let me know if you need any further adjustments!
Alert Kabi Family Unlimited Alarm indicator for any time frame and any type of currency, stock and index
اندییکاتور آلارم نامحدود برای هر تایم فریم و هر شاخص و ارز و سهام
Settings :
1- Before starting, clear all alarms in the trading view alarm section
2- Specify your alarm areas and currency pairs in the indicator settings section
3- Go to the trading view alarm section, click create alert, select the name of the indicator and click OK
4- Good Luck
T e L : @Ar3781
1- قبل از شروع تمام آلارم های تریدینگ ویو را پاک کنید
2- در قسمت تنظیمات اندیکاتور نواحی آلارم و جفت ارز خود را مشخص کنید
3- به قسمت الارم تریدینگ ویو رفته ایجاد هشدار را زده و اسم اندیکاتور را انتخاب کنید و اوکی کنید
4- مـــــــوفق بــــــاشـید
Percent Movement HighlighterThe Percent Movement Highlighter is a custom TradingView indicator that visually highlights candles based on their percentage movement relative to the previous day's close. The indicator uses two user-defined thresholds:
Positive Threshold: Marks candles that move up by a specified percentage or more.
Negative Threshold: Marks candles that move down by a specified percentage or more.
Features:
Visual Highlights:
Green candles for upward moves exceeding the positive threshold.
Red candles for downward moves exceeding the negative threshold.
Dynamic Counters:
Displays a summary label that counts the number of positive, negative, and neutral candles dynamically as the chart progresses.
User Inputs:
Customizable positive and negative percentage thresholds to suit different trading strategies.
This tool is useful for traders seeking to identify significant price movements and analyze market volatility efficiently.
1-3-1 Strat Combo with 50% Level (12h)Logic Explanation
1-3-1 Combo Detection:
The script detects the 1-3-1 pattern using the previous 3 candles:
Candle 4: Inside Bar (Type 1).
Candle 3: Outside Bar (Type 3).
Candle 2: Inside Bar (Type 1).
4th Candle Behavior:
If the 4th candle (current bar):
Stays an inside bar (Type 1) → isFourthInsideBar is true.
Becomes a directional bar (Type 2) → isFourthDirectional is true.
If either of these conditions is true, the script stops calculating and waits for the next valid 1-3-1 setup.
50% Level Calculation:
If the conditions are not met (e.g., the 4th candle doesn’t stop the pattern), the script:
Plots a dotted line at the 50% level of the 3rd candle.
Adds a label showing the 50% level.
Stop Calculations:
No line, box, or label is drawn if the 4th candle is a Type 1 (inside bar) or Type 2 (directional bar).
Visual Outputs:
Dotted Box: Marks the 1-3-1 combo setup.
50% Line: Drawn only if the 4th candle does not invalidate the pattern.
Label: Displays the 50% level of the 3rd candle.
How to Use:
Apply this script on the 12-hour chart.
The script will:
Detect valid 1-3-1 patterns.
Stop drawing any calculations if the 4th candle is an inside bar (1) or a directional bar (2).
Wait for the next valid 1-3-1 combo.
Adjustable Entry Price Levels by Sobhi v6Adjustable Entry Price Levels", is designed to display customizable price levels on a chart, allowing traders to visualize key price zones relative to a chosen entry price. Here's a detailed breakdown of its functionality:
Purpose
The indicator helps traders create and manage equidistant price levels (both above and below a selected entry price). These levels can assist in planning trades, setting stop-loss and take-profit levels, or identifying key market zones for decision-making.
Features
Entry Price Input:
Users can specify a starting price (Entry Price) to base the levels on.
Adjustable Distance Between Levels:
Levels are spaced at a user-defined interval (Distance), creating equidistant horizontal lines.
Number of Levels:
Users can select how many levels to display above and below the entry price (Number of Levels).
Line Customization:
Style: Choose between Solid, Dotted, or Dashed lines.
Color: Customize the color for upward and downward levels (Line Color Up and Line Color Down).
Thickness: Adjust line thickness (Line Width).
Label Customization:
Visibility: Option to show or hide labels on each level (Show Labels).
Font Size: Set the size of the text for level labels (Label Font Size).
Colors: Separate customization for labels above (Label Color Up) and below (Label Color Down) the entry price.
Extended Line Display:
The lines extend backward (Extend Bars Back) and forward (Extend Bars Forward) to ensure visibility over a larger section of the chart.
Visualization
Upward Levels:
Represented by blue (default) horizontal lines above the entry price.
Labels display the price value of each level in the same color.
Downward Levels:
Represented by red (default) horizontal lines below the entry price.
Labels display the price value of each level in the same color.
Example Use Case
Scenario 1: Support and Resistance Planning
A trader can define a key level (Entry Price) and observe nearby support and resistance zones using the calculated price levels.
Scenario 2: Risk Management
The indicator helps in visualizing stop-loss and take-profit areas equidistant from the entry price.
Scenario 3: Breakout Targets
Traders can use the levels to anticipate potential breakout or breakdown targets.
Customization Options
This indicator is highly customizable, making it versatile for different trading strategies. Traders can tweak:
The visual appearance of the levels (style, color, width).
The number of levels and their spacing.
Whether labels are displayed and their style.
Inside Bar Breakout/Fakeout with AI Scenarios [Yosiet]Inside Bar Breakout/Fakeout Indicator with Scenarios
The Indicator is a powerful tool for traders looking to identify potential breakout and fakeout opportunities based on inside bar patterns. This indicator combines multiple technical analysis concepts to provide a comprehensive view of market behavior, helping traders make more informed decisions.
Key Features
Inside bar detection with filtering
Breakout and fakeout identification
Three distinct scenario detections
Customizable moving average calculations
Flexible visualization options
Alert conditions for various events
How It Works
The indicator identifies inside bars and filters them based on a maximum number of consecutive inside bars. It then detects breakouts and fakeouts using user-defined parameters. The script also calculates moving averages to determine trend direction.
Three specific scenarios are detected:
Strong breakout followed by a strong reversal
Weak breakout with multiple doji/weak candles
Strong breakout without reversal
These scenarios are visually represented on the chart, allowing traders to quickly identify potential trading opportunities.
How to Use
Apply the indicator to your chart
Adjust the input parameters to suit your trading style
Look for inside bar patterns and subsequent breakouts/fakeouts
Pay attention to the three scenario markers for additional context
Use the alert conditions to stay informed of potential opportunities
Previous Key Levels (fadi)Previous Key Levels indicator is a highly configurable OHLC levels tool designed to provide traders with the ability to plot multiple levels while minimizing screen clutter. This indicator is perfect for those who want to monitor various timeframes simultaneously without overloading their charts with unnecessary information.
How to Use It
This indicator offers traders the flexibility to track up to 6 higher timeframes (HTFs) and multiple candles for each timeframe. For example, a trader can choose to monitor the OHLC of the last four 4-hour candles, providing a comprehensive view of significant price levels over different periods.
Key Features
Highly Configurable: Customize the number of timeframes and candles to suit your trading strategy.
Minimal Screen Clutter: Efficiently plot multiple levels without overwhelming your chart.
Flexible Application: Ideal for identifying support and resistance levels, liquidity sweeps, target levels, and more, adapting to various trading styles.
Traders have diverse trading styles and preferences. Some may use these levels to identify support and resistance zones, while others might look for liquidity sweeps or set target levels. By offering a high degree of customization, the Previous Key Levels indicator caters to the unique needs of individual traders, helping them make informed decisions based on historical price action across multiple timeframes.
Timeframe Settings
Toggle to track 6 HTF settings and the number of candles to track for each.
Limit to next HTFs only can be used to limit the HTF levels displayed based on the current timeframe.
Hide Above will disable the indicator above the specified interval.
Offset to Left and Right are used to specify where the level line starts and ends based on the current candle.
Offset between HTFs extends HTF levels to become more readable.
HTF Settings
Choice of the OHLC levels to track.
Specify the color, line style, and line width for each level.
Mark the start of that level, for example, draw a vertical line where the 4H candle has started.
Trace back to draw optional lines to track back to the origin of the level.
Label Settings
Highly configurable labels that allow traders to customize the labels to their liking.
Label color, background, and size.
Customize using up to 9 configurable parts.
Fading Levels
To prevent clutter, the indicator offers the option to change the transparency of the levels based on their distance from the current price. The distance is calculated based on a configurable Average True Range (ATR).
Change Transparency to a percentage of its current color.
Range should be within X candles will fade any level that is X candles length away from the current price.
ATR length used in calculation will calculate the average size of candles in the calculation.
Engulfing & Pin Bar DetectorOverview
The "Engulfing & Pin Bar Detector" script identifies two important candlestick patterns: Engulfing Candles and Pin Bars. These patterns are widely used in technical analysis to signal potential reversals or continuations in the market. The script provides visual signals directly on the chart to help traders make informed decisions.
Features Bullish Engulfing:
The second candle completely engulfs the body and shadows (high and low) of the previous bearish candle.
Signals a potential reversal to the upside.
Marked with a green background and a label below the candle.
Bearish Engulfing:
The second candle completely engulfs the body and shadows (high and low) of the previous bullish candle.
Signals a potential reversal to the downside.
Marked with a red background and a label above the candle.
Bullish Pin Bar:
A candle with a long lower shadow and a small body near the top of the range.
Indicates potential upward price action.
Marked with a blue background and an upward triangle below the candle.
Bearish Pin Bar:
A candle with a long upper shadow and a small body near the bottom of the range.
Indicates potential downward price action.
Marked with an orange background and a downward triangle above the candle.
Customizable Visual Alerts:
Background highlights and shape markers for quick and easy identification of patterns.
How to Use
Add the script to your TradingView chart.
Look for:
Green background: Bullish Engulfing.
Red background: Bearish Engulfing.
Blue background: Bullish Pin Bar.
Orange background: Bearish Pin Bar.
Combine with other indicators or price action techniques for confirmation.
Adjust your entry and exit strategies based on the patterns:
For Bullish Engulfing or Bullish Pin Bar, consider entering long positions or exiting shorts.
For Bearish Engulfing or Bearish Pin Bar, consider entering short positions or exiting longs.
Example Use Cases
Identify potential reversal zones.
Use as confirmation in trend-following or counter-trend strategies.
Enhance your analysis with clear visual signals.
BRT Cluster VolumeTitle and Purpose
BRT Cluster Volume is a powerful market analysis tool designed to identify key support and resistance levels, cluster volumes, and breakout signals. This script is highly beneficial for traders who aim to gain deeper insights into market trends and pinpoint zones of interest for buyers and sellers.
Key Features
1. Support and Resistance Levels:
- The script automatically detects chart extremums by analyzing a specified number of bars on the left and right to form levels. This approach effectively identifies local highs and lows.
- The uniqueness of this implementation lies in its dynamic data processing. For each extremum, the "channel width" is calculated, allowing insignificant levels to be filtered out based on a user-defined minimum width. This method eliminates noise and ensures focus on critical levels.
- Extremum lines can be extended to the right (when enabled), allowing traders to track current price movements relative to historical levels.
2. Cluster Volume:
- The cluster analysis is based on lower timeframe data, providing precise identification of key zones of market participant activity. The script dynamically requests close prices and volumes from lower timeframes, calculates the average volume, and identifies levels where volumes exceed a defined threshold.
- The visualization of cluster volumes is unique: volumes exceeding the threshold are displayed as candles with customizable colors and markers. These indicators help traders identify zones of significant interest.
- Cluster volume is only displayed when it interacts with support or resistance levels, ensuring that the visualization remains precise and relevant for market analysis.
3. Breakout Signals:
- The script evaluates "breakout strength" for each breakout of support or resistance levels by comparing the current price with the level. This helps filter false breakouts and focus on significant price movements.
- Traders can select the source for breakout signals (close price or high/low), offering flexibility for various trading styles and strategies.
- By incorporating the concept of "maximum breakout strength," the script highlights only meaningful breakouts, ignoring minor fluctuations.
4. Integration of Trading Sessions:
- Extremum levels for major trading sessions (Asia, Europe, USA) are identified and labeled on the chart. This allows traders to see when significant price levels were formed during the day.
- The script uses timestamps to automatically detect session times, ensuring accuracy and minimizing manual adjustments.
5. Dynamic Data Updates:
- The script dynamically updates support and resistance levels in real time as new data becomes available. This feature is crucial for traders working in fast-moving markets.
- Outdated information (such as obsolete levels) is automatically removed to keep the chart clean and focused on relevant data.
6. Visualization of Activity Zones:
- Trend direction is visualized using color-coded candles based on cluster volumes. For instance, candles with volumes exceeding the average are highlighted with specific colors, helping traders quickly identify areas of heightened activity.
- The unique aspect of this visualization is that cluster volumes appear only in zones where they interact with breakout levels, providing an intuitive and streamlined presentation of critical data.
Usage
- Support and Resistance: Adjust the "Left Bars" and "Right Bars" settings to determine extremums. Use the "Channel Min Width" setting to filter out insignificant levels.
- Cluster Volume: Customize the analysis period and volume threshold to identify high-activity zones. Enable breakout clusters to see how volumes interact with breakouts.
- Session Extremums: Highlight significant levels for Asia, Europe, and US trading sessions to gain insights into market dynamics across different time zones.
- Breakout Signals: Configure the breakout strength and source (close or high/low) for precise signal detection.
Parameter Details
1. Support & Resistance:
- `Left Bars` / `Right Bars`: Number of bars to consider for determining extremums.
- `# of Lines`: Maximum number of support/resistance lines to display.
- `Channel Min Width`: Minimum channel width to filter insignificant levels.
2. Breakout:
- `Show Breakouts`: Toggle breakout signal display.
- `Max breakout strength`: Maximum strength for valid breakouts.
- `Breakout source`: Data source for breakouts (close or high/low).
3. Cluster Volume:
- `Lookback`: Number of bars to analyze for cluster volumes.
- `Threshold`: Volume threshold (percentage above the average).
- `Cluster Volume Timeframe`: Timeframe for cluster volume analysis.
- `Breakout Cluster`: Display cluster volumes only for breakout-related zones.
4. Visual Settings:
- `Extend extremum lines to the right`: Extend support/resistance lines to the right.
- `Show ASIA/EU/US Session Extremums`: Display extremums for trading sessions.
Features and Benefits
- The script provides flexible parameter customization, allowing it to adapt to different trading styles and timeframes.
- The visualization is designed to be clean and intuitive, ensuring users can easily interpret the data.
- Suitable for all timeframes, making it ideal for both intraday and long-term market analysis.
Limitations
- The script is not suitable for analysis on non-standard chart types (e.g., Heikin Ashi, Renko, Kagi).
- To ensure accurate performance, realistic data for commission and slippage should be used.
Warnings
- The script relies on historical data for calculations, which may cause discrepancies in real-time conditions.
- Users should fully understand the functionality of cluster analysis and breakout signals before using the script in live trading.
This script combines advanced data processing logic, dynamic level adjustments, and unique visualization approaches, making it an indispensable tool for market analysis and trading decision-making.
Weekly Covered Calls Strategy with IV & Delta LogicWhat Does the Indicator Do?
this is interactive you must use it with your options chain to input data based on the contract you want to trade.
Visualize three strike price levels for covered calls based on:
Aggressive (closest to price, riskier).
Moderate (mid-range, balanced).
Low Delta (farthest, safer).
Incorporate Implied Volatility (IV) from the options chain to make strike predictions more realistic and aligned with market sentiment. Adjust the risk tolerance by modifying Delta inputs and IV values. Risk is defined for example .30 delta means 30% chance of your shares being assigned. If you want to generate steady income with your shares you might want to lower the risk of them being assigned to .05 or 5% etc.
How to Use the Indicator with the Options Chain
Start with the Options Chain:
Look for the following data points from your options chain:
Implied Volatility (IV Mid): Average IV for a particular strike price.
Delta:
~0.30 Delta: Closest strike (Aggressive).
~0.15–0.20 Delta: Mid-range strike (Moderate).
~0.05–0.10 Delta: Far OTM, safer (Low Delta).
Strike Price: Identify strike prices for the desired Deltas.
Open Interest: Check liquidity; higher OI ensures tighter spreads.
Input IV into the Indicator:
Enter the IV Mid value (e.g., 0.70 for 70%) from the options chain into the Implied Volatility field of the indicator.
Adjust Delta Inputs Based on Risk Tolerance:
Aggressive Delta: Increase if you want strikes closer to the current price (riskier, higher premium).
Default: 0.2 (20% chance of shares being assigned).
Moderate Delta: Balanced risk/reward.
Default: 0.12 (12%)
Low Delta: Decrease for safer, farther OTM strikes.
Default: 0.05 (5%)
Visualize the Chart:
Once inputs are updated:
Red Line: Aggressive Strike (closest, riskiest, higher premium).
Blue Line: Moderate Strike (mid-range).
Green Line: Low Delta Strike (farthest, safer).
Step-by-Step Workflow Example
Open the options chain and note:
Implied Volatility (IV Mid): Example 71.5% → input as 0.715.
Delta for desired strikes:
Aggressive: 0.30 Delta → Closest strike ~ $455.
Moderate: 0.15 Delta → Mid-range strike ~ $470.
Low Delta: 0.05 Delta → Farther strike ~ $505.
Open the indicator and adjust:
IV Mid: Enter 0.715.
Aggressive Delta: Leave at 0.12 (or adjust to bring strikes closer).
Moderate Delta: Leave at 0.18.
Low Delta: Adjust to 0.25 for safer, farther strikes.
View the chart:
Compare the indicator's strikes (red, blue, green) with actual options chain strikes.
Use the visualization to: Validate the risk/reward for each strike.
Align strikes with technical trends, support/resistance.
Adjusting Inputs Based on Risk Tolerance
Higher Risk: Increase Aggressive Delta (e.g., 0.15) for closer strikes.
Use higher IV values for volatile stocks.
Moderate Risk: Use default values (0.12–0.18 Delta).
Balance premiums and probability.
Lower Risk: Increase Low Delta (e.g., 0.30) for farther, safer strikes.
Focus on higher IV stocks with good open interest.
Key Benefits
Simplifies Strike Selection: Visualizes the three risk levels directly on the chart.
Aligns with Market Sentiment: Incorporates IV for realistic forecasts.
Customizable for Risk: Adjust inputs to match personal risk tolerance.
By combining the options chain (IV, Delta, and liquidity) with the technical chart, you get a powerful, visually intuitive tool for covered call strategies.
Weekly Covered Calls StrategyWhat Does This Indicator Do?
This indicator is a tool to help you pick strike prices for your weekly covered call options strategy. It does two things:
Plots two suggested strike prices on your chart:
Aggressive Strike (red label): A strike price closer to the current price, offering higher premiums but with a higher chance of assignment.
Moderate Strike (blue label): A strike price further from the current price, offering lower premiums but with a lower chance of assignment.
Uses technical analysis (volatility) to calculate these strike prices dynamically. It adjusts them based on the market's volatility and your chosen risk settings.
How It Works:
The indicator uses the following inputs to determine the strike prices:
ATR (Average True Range):
This measures the stock's volatility (how much the stock moves up or down over a given period).
A higher ATR = more volatile stock = wider range for strike prices.
Delta Adjustments:
The default settings use Delta values of 0.12 (Aggressive) and 0.18 (Moderate).
Delta is a concept in options trading that estimates the likelihood of the option being "in the money" (ITM) by expiration.
A 0.12 Delta = 12% chance of assignment (Aggressive)
A 0.18 Delta = 18% chance of assignment (Moderate)
Volatility Factor:
This multiplies the ATR by a factor (default is 1.5) to estimate the expected price move and adjust strike prices accordingly.
How to Use the Indicator:
Step 1: Understand the Labels
Red Label (Aggressive Strike):
Closer to the current stock price.
You’ll collect higher premiums because the strike price is riskier (closer to being ITM).
Best for traders comfortable with a higher risk of assignment.
Blue Label (Moderate Strike):
Further from the current stock price.
You’ll collect lower premiums because the strike price is safer (further from being ITM).
Best for traders looking to avoid assignment and collect safer weekly income.
Step 2: Match It to the Options Chain
Open your options chain (like the one you see in Fidelity, TOS, or TradingView).
Look for the strike prices closest to the red (aggressive) and blue (moderate) labels plotted by the indicator.
Compare the premiums (the amount you collect for selling the call) and decide:
If you want higher income: Go with the Aggressive Strike.
If you want safety: Go with the Moderate Strike.
Step 3: Manage Your Risk and Income
Avoid Assignment:
If you do not want your shares to be called away, choose strike prices further from the current price (e.g., moderate strike).
Maximize Premiums:
If you’re okay with a chance of your shares being called away, choose the closer aggressive strike for higher premium income.
Weekly Income Goal:
Use this strategy consistently each week to collect premium income while holding your shares.
Step 4: Adjust for Your Risk Tolerance
You can adjust the Delta values (0.12 for Aggressive and 0.18 for Moderate) to suit your risk tolerance:
Lower Delta (e.g., 0.08–0.10): Safer, fewer chances of assignment, lower premiums.
Higher Delta (e.g., 0.20–0.25): Riskier, higher chances of assignment, higher premiums.
Technical Analysis Summary (What the Indicator Uses):
The indicator uses ATR (Average True Range) to measure volatility and estimate how far the price might move.
It then multiplies ATR by a Volatility Factor to calculate the strike prices.
Using the Delta Adjustment settings, it adjusts these strike prices to give you a balance between risk and reward.
Putting It All Together:
Look at the Chart: The indicator will show two lines and labels for strike prices.
Check the Options Chain: Find the closest strike prices and compare premiums.
Decide Your Strategy:
Want higher premium income? Choose the Aggressive Strike (red label).
Want lower risk of assignment? Choose the Moderate Strike (blue label).
Collect Weekly Income: Sell the call option and repeat this process weekly to generate consistent income.
Happy trading, and may your premiums roll in while your shares stay safe! 🎯📊
