Momentum + Keltner Stochastic Combo)The Momentum-Keltner-Stochastic Combination Strategy: A Technical Analysis and Empirical Validation
This study presents an advanced algorithmic trading strategy that implements a hybrid approach between momentum-based price dynamics and relative positioning within a volatility-adjusted Keltner Channel framework. The strategy utilizes an innovative "Keltner Stochastic" concept as its primary decision-making factor for market entries and exits, while implementing a dynamic capital allocation model with risk-based stop-loss mechanisms. Empirical testing demonstrates the strategy's potential for generating alpha in various market conditions through the combination of trend-following momentum principles and mean-reversion elements within defined volatility thresholds.
1. Introduction
Financial market trading increasingly relies on the integration of various technical indicators for identifying optimal trading opportunities (Lo et al., 2000). While individual indicators are often compromised by market noise, combinations of complementary approaches have shown superior performance in detecting significant market movements (Murphy, 1999; Kaufman, 2013). This research introduces a novel algorithmic strategy that synthesizes momentum principles with volatility-adjusted envelope analysis through Keltner Channels.
2. Theoretical Foundation
2.1 Momentum Component
The momentum component of the strategy builds upon the seminal work of Jegadeesh and Titman (1993), who demonstrated that stocks which performed well (poorly) over a 3 to 12-month period continue to perform well (poorly) over subsequent months. As Moskowitz et al. (2012) further established, this time-series momentum effect persists across various asset classes and time frames. The present strategy implements a short-term momentum lookback period (7 bars) to identify the prevailing price direction, consistent with findings by Chan et al. (2000) that shorter-term momentum signals can be effective in algorithmic trading systems.
2.2 Keltner Channels
Keltner Channels, as formalized by Chester Keltner (1960) and later modified by Linda Bradford Raschke, represent a volatility-based envelope system that plots bands at a specified distance from a central exponential moving average (Keltner, 1960; Raschke & Connors, 1996). Unlike traditional Bollinger Bands that use standard deviation, Keltner Channels typically employ Average True Range (ATR) to establish the bands' distance from the central line, providing a smoother volatility measure as established by Wilder (1978).
2.3 Stochastic Oscillator Principles
The strategy incorporates a modified stochastic oscillator approach, conceptually similar to Lane's Stochastic (Lane, 1984), but applied to a price's position within Keltner Channels rather than standard price ranges. This creates what we term "Keltner Stochastic," measuring the relative position of price within the volatility-adjusted channel as a percentage value.
3. Strategy Methodology
3.1 Entry and Exit Conditions
The strategy employs a contrarian approach within the channel framework:
Long Entry Condition:
Close price > Close price periods ago (momentum filter)
KeltnerStochastic < threshold (oversold within channel)
Short Entry Condition:
Close price < Close price periods ago (momentum filter)
KeltnerStochastic > threshold (overbought within channel)
Exit Conditions:
Exit long positions when KeltnerStochastic > threshold
Exit short positions when KeltnerStochastic < threshold
This methodology aligns with research by Brock et al. (1992) on the effectiveness of trading range breakouts with confirmation filters.
3.2 Risk Management
Stop-loss mechanisms are implemented using fixed price movements (1185 index points), providing definitive risk boundaries per trade. This approach is consistent with findings by Sweeney (1988) that fixed stop-loss systems can enhance risk-adjusted returns when properly calibrated.
3.3 Dynamic Position Sizing
The strategy implements an equity-based position sizing algorithm that increases or decreases contract size based on cumulative performance:
$ContractSize = \min(baseContracts + \lfloor\frac{\max(profitLoss, 0)}{equityStep}\rfloor - \lfloor\frac{|\min(profitLoss, 0)|}{equityStep}\rfloor, maxContracts)$
This adaptive approach follows modern portfolio theory principles (Markowitz, 1952) and Kelly criterion concepts (Kelly, 1956), scaling exposure proportionally to account equity.
4. Empirical Performance Analysis
Using historical data across multiple market regimes, the strategy demonstrates several key performance characteristics:
Enhanced performance during trending markets with moderate volatility
Reduced drawdowns during choppy market conditions through the dual-filter approach
Optimal performance when the threshold parameter is calibrated to market-specific characteristics (Pardo, 2008)
5. Strategy Limitations and Future Research
While effective in many market conditions, this strategy faces challenges during:
Rapid volatility expansion events where stop-loss mechanisms may be inadequate
Prolonged sideways markets with insufficient momentum
Markets with structural changes in volatility profiles
Future research should explore:
Adaptive threshold parameters based on regime detection
Integration with additional confirmatory indicators
Machine learning approaches to optimize parameter selection across different market environments (Cavalcante et al., 2016)
References
Brock, W., Lakonishok, J., & LeBaron, B. (1992). Simple technical trading rules and the stochastic properties of stock returns. The Journal of Finance, 47(5), 1731-1764.
Cavalcante, R. C., Brasileiro, R. C., Souza, V. L., Nobrega, J. P., & Oliveira, A. L. (2016). Computational intelligence and financial markets: A survey and future directions. Expert Systems with Applications, 55, 194-211.
Chan, L. K. C., Jegadeesh, N., & Lakonishok, J. (2000). Momentum strategies. The Journal of Finance, 51(5), 1681-1713.
Jegadeesh, N., & Titman, S. (1993). Returns to buying winners and selling losers: Implications for stock market efficiency. The Journal of Finance, 48(1), 65-91.
Kaufman, P. J. (2013). Trading systems and methods (5th ed.). John Wiley & Sons.
Kelly, J. L. (1956). A new interpretation of information rate. The Bell System Technical Journal, 35(4), 917-926.
Keltner, C. W. (1960). How to make money in commodities. The Keltner Statistical Service.
Lane, G. C. (1984). Lane's stochastics. Technical Analysis of Stocks & Commodities, 2(3), 87-90.
Lo, A. W., Mamaysky, H., & Wang, J. (2000). Foundations of technical analysis: Computational algorithms, statistical inference, and empirical implementation. The Journal of Finance, 55(4), 1705-1765.
Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77-91.
Moskowitz, T. J., Ooi, Y. H., & Pedersen, L. H. (2012). Time series momentum. Journal of Financial Economics, 104(2), 228-250.
Murphy, J. J. (1999). Technical analysis of the financial markets: A comprehensive guide to trading methods and applications. New York Institute of Finance.
Pardo, R. (2008). The evaluation and optimization of trading strategies (2nd ed.). John Wiley & Sons.
Raschke, L. B., & Connors, L. A. (1996). Street smarts: High probability short-term trading strategies. M. Gordon Publishing Group.
Sweeney, R. J. (1988). Some new filter rule tests: Methods and results. Journal of Financial and Quantitative Analysis, 23(3), 285-300.
Wilder, J. W. (1978). New concepts in technical trading systems. Trend Research.
Oscillatori centrati
SMT SwiftEdge PowerhouseSMT SwiftEdge Powerhouse: Precision Trading with Divergence, Liquidity Grabs, and OTE Zones
The SMT SwiftEdge Powerhouse is a powerful trading tool designed to help traders identify high-probability entry points during the most active market sessions—London and New York. By combining Smart Money Technique (SMT) Divergence, Liquidity Grabs, and Optimal Trade Entry (OTE) Zones, this script provides a unique and cohesive strategy for capturing market reversals with precision. Whether you're a scalper or a swing trader, this indicator offers clear visual signals to enhance your trading decisions on any timeframe.
What Does This Script Do?
This script integrates three key concepts to identify potential trading opportunities:
SMT Divergence:
SMT Divergence compares the price action of two correlated assets (e.g., Nasdaq and S&P 500 futures) to detect hidden market reversals. When one asset makes a higher high while the other makes a lower high (bearish divergence), or one makes a lower low while the other makes a higher low (bullish divergence), it signals a potential reversal. This technique leverages institutional "smart money" behavior to anticipate market shifts.
Liquidity Grabs:
Liquidity Grabs occur when price breaks above recent highs or below recent lows on higher timeframes (5m and 15m), often triggering stop-loss orders from retail traders. These breakouts are identified using pivot points and confirm institutional activity, setting the stage for a reversal. The script focuses on liquidity grabs during the London and New York sessions for maximum market activity.
Optimal Trade Entry (OTE) Zones:
OTE Zones are Fibonacci-based retracement areas (e.g., 61.8%) calculated after a liquidity grab. These zones highlight where price is likely to retrace before continuing in the direction of the reversal, offering a high-probability entry point. The script adjusts the width of these zones using the Average True Range (ATR) to adapt to market volatility.
By combining these components, the script identifies when institutional activity (liquidity grabs) aligns with market reversals (SMT divergence) and pinpoints precise entry points (OTE zones) during high-liquidity sessions.
Why Combine These Components?
The integration of SMT Divergence, Liquidity Grabs, and OTE Zones creates a robust trading system for several reasons:
Synergy of Institutional Signals: SMT Divergence and Liquidity Grabs both reflect "smart money" behavior—divergence shows hidden reversals, while liquidity grabs confirm institutional intent to trap retail traders. Together, they provide a strong foundation for identifying high-probability setups.
Session-Based Precision: Focusing on the London and New York sessions ensures signals occur during periods of high volatility and liquidity, increasing their reliability.
Precision Entries with OTE: After confirming a setup with divergence and liquidity grabs, OTE zones provide a clear entry area, reducing guesswork and improving trade accuracy.
Adaptability: The script works on any timeframe, with adjustable settings for signal sensitivity, session times, and Fibonacci levels, making it versatile for different trading styles.
This combination makes the script unique by aligning institutional insights with actionable entry points, tailored to the most active market hours.
How to Use the Script
Setup:
Add the script to your chart (works on any timeframe, e.g., 1m, 5m, 15m).
Configure the settings in the indicator's inputs:
Session Settings: Adjust the start/end times for London and New York sessions (default: London 8-11 UTC, New York 13-16 UTC). You can disable session restrictions if desired.
Asset Settings: Set the primary and secondary assets for SMT Divergence (default: NQ1! and ES1!). Ensure the assets are correlated.
Signal Settings: Adjust the lookback period, ATR period, and signal sensitivity (Low/Medium/High) to control the frequency of signals.
OTE Settings: Choose the Fibonacci level for OTE zones (default: 61.8%).
Visual Settings: Enable/disable OTE zones, SMT labels, and debug labels for troubleshooting.
Interpreting Signals:
Blue Circles: Indicate a liquidity grab (price breaking a 5m or 15m pivot high/low), marking the start of a potential setup.
Blue OTE Zones: Appear after a liquidity grab, showing the retracement area (e.g., 61.8% Fibonacci level) where price is likely to enter for a reversal trade. The label "OTE Trigger 5m/15m" confirms the direction (Short/Long) and session.
Green/Red Entry Boxes: Mark precise entry points when price enters the OTE zone and confirms the SMT Divergence. Green boxes indicate a long entry, red boxes a short entry.
Trading Example:
On a 1m chart, a blue circle appears when price breaks a 5m pivot high during the London session.
A blue OTE zone forms, showing a retracement area (e.g., 61.8% Fibonacci level) with the label "OTE Trigger 5m/15m (Short, London)".
Price retraces into the OTE zone, and a red "Short Entry" box appears, confirming a bearish SMT Divergence.
Enter a short trade at the red box, with a stop-loss above the OTE zone and a take-profit at the next support level.
Originality and Utility
The SMT SwiftEdge Powerhouse stands out by merging SMT Divergence, Liquidity Grabs, and OTE Zones into a single, session-focused indicator. Unlike traditional indicators that focus on one aspect of price action, this script combines institutional reversal signals with precise entry zones, tailored to the most active market hours. Its adaptability across timeframes, customizable settings, and clear visual cues make it a versatile tool for traders seeking to capitalize on smart money movements with confidence.
Tips for Best Results
Use on correlated assets like NQ1! (Nasdaq futures) and ES1! (S&P 500 futures) for accurate SMT Divergence.
Test on lower timeframes (1m, 5m) for scalping or higher timeframes (15m, 1H) for swing trading.
Adjust the "Signal Sensitivity" to "High" for more signals or "Low" for fewer, high-quality setups.
Enable "Show Debug Labels" if signals are not appearing as expected, to troubleshoot pivot points and liquidity grabs.
Volume-Price Momentum IndicatorVolume-Price Momentum Indicator (VPMI)
Overview
The Volume-Price Momentum Indicator (VPMI), developed by Kevin Svenson , is a powerful technical analysis tool designed to identify strong bullish and bearish momentum in price movements, driven by volume dynamics. By analyzing price changes and volume surges over a user-defined lookback period, VPMI highlights potential trend shifts and continuation patterns through a smoothed histogram, optional labels, and background highlights. Ideal for traders seeking to capture momentum-driven opportunities, VPMI is suitable for various markets, including stocks, forex, and cryptocurrencies.
How It Works
VPMI calculates the difference between volume-weighted buying and selling pressure based on price changes over a specified lookback period. It amplifies signals during high-volume periods, applies smoothing to reduce noise, and uses momentum checks to detect sustained trends.
Indicator display:
A histogram that oscillates above (bullish) or below (bearish) a zero line, with brighter colors indicating stronger momentum and faded colors for weaker signals.
Optional labels ("Bullish" or "Bearish") to mark significant momentum shifts.
Optional background highlights to visually emphasize strong trend conditions.
Alerts to notify users when strong bullish or bearish momentum is detected.
Key Features
Customizable Settings:
Adjust the lookback period, volume threshold, momentum length, and smoothing to suit your trading style.
Volume Sensitivity:
Emphasizes price movements during high-volume surges, enhancing signal reliability.
Momentum Detection: Uses linear regression and momentum change to confirm sustained trends, reducing false signals.
Visual Clarity:
Offers a clear histogram with color-coded signals, plus optional labels and backgrounds for enhanced chart readability.
Alerts:
Configurable alerts for strong momentum signals, enabling timely trade decisions.
Inputs and Customization
Lookback Period (Default: 9):
Sets the number of bars to analyze price changes. Higher values smooth signals but may lag.
Volume Threshold (Default: 1.4):
Defines the volume level (relative to a 20-period SMA) that qualifies as a surge, amplifying signals.
High Volume Multiplier (Default: 1.5):
Boosts histogram values during high-volume periods for stronger signals.
Histogram Smoothing Length (Default: 4):
Controls the EMA smoothing applied to the histogram, reducing noise.
Momentum Check Length (Default: 4):
Sets the period for momentum trend analysis (recommended to be less than Lookback Period).
Momentum Threshold (Default: 6):
Defines the minimum momentum change required for strong signals.
Show Labels (Default: Off):
Toggle to display "Bullish" or "Bearish" labels on significant momentum shifts.
Show Backgrounds (Default: Off):
Toggle to highlight chart backgrounds during strong momentum periods.
Bullish/Bearish Colors:
Customize colors for bullish (default: green) and bearish (default: red) signals.
Faded Transparency (Default: 40):
Adjusts the transparency of weaker signals for visual distinction.
How to Use
Interpret Signals:
Above Zero (Green):
Indicates bullish momentum. Bright green suggests strong, sustained buying pressure.
Below Zero (Red):
Indicates bearish momentum. Bright red suggests strong, sustained selling pressure.
Faded Colors:
Weaker momentum, potentially signaling consolidation or trend exhaustion.
Enable Visuals:
Turn on "Show Labels" and "Show Backgrounds" in the settings for additional context on strong momentum signals.
Set Alerts:
Use the built-in alert conditions ("Strong Bullish Momentum" or "Strong Bearish Momentum") to receive notifications when significant trends emerge.
Combine with Other Tools:
Pair VPMI with support/resistance levels, trendlines, or other indicators (e.g., RSI, MACD) for confirmation.
Best Practices
Timeframe:
VPMI works on all timeframes, but shorter timeframes (e.g., 5m, 15m) may produce more signals, while longer timeframes (e.g., 1h, 4h, 1D) offer higher reliability.
Market Conditions:
Most effective in trending markets. In choppy or sideways markets, consider increasing the smoothing length or momentum threshold to filter noise.
Risk Management:
Always use VPMI signals in conjunction with a robust trading plan, including stop-losses and position sizing.
Limitations
Lagging Nature:
As a momentum indicator, VPMI may lag in fast-moving markets due to smoothing and lookback calculations.
False Signals:
In low-volume or ranging markets, signals may be less reliable. Adjust the volume threshold or momentum settings to improve accuracy.
Customization Required:
Optimal settings vary by asset and timeframe. Experiment with inputs to align with your trading strategy.
Why Use VPMI?
VPMI offers a unique blend of volume and price momentum analysis, making it a versatile tool for traders seeking to identify high-probability trend opportunities. Its customizable inputs, clear visuals, and alert capabilities empower users to tailor the indicator to their needs, whether for day trading, swing trading, or long-term analysis.
Get Started
Apply VPMI to your chart, tweak the settings to match your trading style, and start exploring momentum-driven opportunities. For questions or feedback, consult TradingView’s community forums or documentation. Happy trading!
Momentum Table - Felipe📊 Momentum Table – By Felipe
This multi-timeframe momentum dashboard displays a clean and color-coded overview of key trend and momentum indicators across 6 major timeframes (5m to 1W), directly on your chart. It’s ideal for quickly identifying market strength, trend alignment, and potential reversals at a glance.
🔍 Features:
EMA Trend Check (EMA 9, 20, 100, 200):
Compares the current close against each EMA.
✅ Green check = price is above the EMA (bullish bias).
🔻 Red arrow = price is below the EMA (bearish bias).
Visual trend alignment helps you spot strong directional setups.
RSI (Relative Strength Index):
Displays current RSI (14) value per timeframe.
Background color highlights momentum conditions:
🔴 Red = Overbought (>70)
🟢 Green = Oversold (<30)
⚪ Gray = Neutral
Stochastic RSI:
Uses Stoch RSI applied to RSI (14) for sensitivity.
Background color follows the same logic as RSI for quick visual cues.
Compact Visual Table:
Located in the bottom-right corner.
Clean design with headers and rows labeled by timeframe.
Helps traders monitor trend and momentum confluence across multiple timeframes in real time.
This tool supports momentum-based strategies, EMA stacking confirmation, and multi-timeframe alignment, making it ideal for scalpers, swing traders, and trend followers alike.
[blackcat] L3 Dark Horse OscillatorOVERVIEW
The L3 Dark Horse Oscillator is a sophisticated technical indicator meticulously crafted to offer traders deep insights into market momentum. By leveraging advanced calculations involving Relative Strength Value (RSV) and proprietary oscillatory techniques, this script provides clear and actionable signals for identifying potential buying and selling opportunities. Its distinctive feature—a vibrant gradient color scheme—enhances readability and makes it easier to visualize trends and reversals on the chart 📈↗️.
FEATURES
Advanced Calculation Methods: Utilizes complex algorithms to compute the Relative Strength Value (RSV) over specific periods, providing a nuanced view of price movements.
Default Period: 27 bars for initial RSV calculation.
Additional Period: 36 bars for extended RSV analysis.
Dual-Oscillator Components:
Component A: Derived using multiple layers of Simple Moving Averages (SMAs) applied to the RSV, offering a smoothed representation of short-term momentum.
Component B: Employs a unique averaging method tailored to capture medium-term trends effectively.
Dynamic Gradient Color Scheme: Enhances visualization through a spectrum of colors that change dynamically based on the calculated values, making trend identification intuitive and engaging 🌈.
Customizable Horizontal Reference Lines: Key levels are marked at 0, 10, 50, and 90 to serve as benchmarks for assessing the oscillator's readings, helping traders make informed decisions quickly.
Comprehensive Visual Representation: Combines the strengths of both components into a single, gradient-colored candlestick plot, providing a holistic view of market sentiment and momentum shifts 📊.
HOW TO USE
Adding the Indicator: Start by adding the L3 Dark Horse Oscillator to your TradingView chart via the indicators menu. This will overlay the necessary plots directly onto your price chart.
Interpreting the Components: Familiarize yourself with the two primary components represented by yellow and fuchsia lines. These lines indicate the underlying momentum derived from the RSV calculations.
Monitoring Momentum Shifts: Pay close attention to the gradient-colored candlesticks, which reflect the combined strength of both components. Notice how these candles transition through various shades, signaling changes in market dynamics.
Utilizing Reference Levels: Leverage the horizontal lines at 0, 10, 50, and 90 as critical thresholds. For instance, values above 50 might suggest bullish conditions, while those below could hint at bearish tendencies.
Combining with Other Tools: To enhance reliability, integrate this indicator with complementary technical analyses such as moving averages, volume profiles, or other oscillators like RSI or MACD.
LIMITATIONS
Market Volatility: In extremely volatile or sideways-trending markets, the indicator might produce false signals due to erratic price movements. Always cross-reference with broader market contexts.
Testing Required: Before deploying the indicator in real-time trading, conduct thorough backtesting across diverse assets and timeframes to understand its performance characteristics fully.
Asset-Specific Performance: The efficacy of the L3 Dark Horse Oscillator can differ significantly across various financial instruments and market conditions. Tailor your strategies accordingly.
NOTES
Historical Data: Ensure ample historical data availability to facilitate precise calculations and avoid inaccuracies stemming from insufficient data points.
Parameter Adjustments: Experiment with adjusting the default periods (27 and 36 bars) if you find them unsuitable for your specific trading style or market conditions.
Visual Customization: Modify the appearance settings, including line styles and gradient colors, to better suit personal preferences without compromising functionality.
Risk Management: While the indicator offers valuable insights, always adhere to robust risk management practices to safeguard against unexpected market fluctuations.
EXAMPLE STRATEGIES
Trend Following: Use the oscillator to confirm existing trends. When Component A crosses above Component B, consider entering long positions; conversely, look for short entries during downward crossovers.
Mean Reversion: Identify extreme readings near the upper (90) or lower (10) bands where prices might revert to mean levels, presenting potential reversal opportunities.
Divergence Analysis: Compare the oscillator's behavior with price action to spot divergences, which often precede trend reversals. Bullish divergence occurs when prices make lower lows but the oscillator shows higher lows, suggesting upward momentum.
[blackcat] L3 Magic-9 MACD SetupOVERVIEW
The L3 Magic-9 MACD Setup indicator is meticulously crafted to assist traders in identifying precise buy and sell signals through an enhanced Moving Average Convergence Divergence (MACD) methodology. This advanced tool integrates the Magic-9 Sequential technique to refine signal accuracy by filtering out market noise. By providing clear visual cues via labeled charts and real-time alerts, it empowers users to make informed trading decisions swiftly and confidently 📈✅.
FEATURES
Customizable MACD Parameters:
Fast Length: Adjustable parameter to control the sensitivity of the fast moving average.
Slow Length: Configurable setting for the slow moving average to balance responsiveness and stability.
Signal Length: Modifiable value to determine the smoothing factor applied to the MACD line.
Dynamic Plot Visuals:
MACD Line: Representing the difference between short-term and long-term EMAs.
Signal Line: A smoothed version of the MACD line used to generate crossover signals.
Histogram: Illustrating the distance between the MACD and Signal lines, highlighting momentum changes.
All elements feature adjustable colors and styles for personalized visualization preferences 🎨.
Advanced Filtering Mechanism:
Utilizes the Magic-9 Sequential method to analyze consecutive price movements, enhancing signal reliability.
Counts sequential occurrences above or below initial values to detect trends more accurately 🔍.
Sequential Labels:
Displays numerical labels (e.g., '5', '6', etc.) at key points where sequential conditions are met, offering insights into trend strength.
Highlights significant reversals with special labels like '9' and '13' for critical decision-making moments 🏷️.
Buy/Sell Signals:
Generates clear 'B' (buy) and 'S' (sell) labels based on predefined conditions derived from sequential analysis.
Provides actionable trade suggestions directly on the chart for easy interpretation.
Alert System:
Supports customizable alerts to notify users instantly when buy/sell conditions are triggered.
Ensures timely responses to market movements without constant monitoring 🔔.
HOW TO USE
Add Indicator to Chart:
Access the TradingView platform and navigate to the indicators section.
Select ' L3 Magic-9 MACD Setup' from the list and add it to your desired chart.
Configure Settings:
Open the settings panel to adjust MACD parameters such as Fast Length, Slow Length, and Signal Length according to your trading strategy.
Modify plot colors and styles to suit your visual preferences for better readability.
Analyze Chart Labels:
Monitor the chart for sequentially numbered labels indicating trend strength and potential reversal points.
Pay close attention to special labels like '9' and '13' for crucial trading signals.
Combine with Other Tools:
Use additional technical indicators or fundamental analysis to confirm signals generated by the L3 Magic-9 MACD Setup.
Enhance decision-making accuracy by cross-verifying multiple data sources.
LIMITATIONS
Market Conditions Sensitivity:
The indicator may produce fewer reliable signals during periods of low volatility or range-bound markets.
Traders should be cautious of false positives in highly choppy environments 🌪️.
Dependency on Historical Data:
Accurate performance requires sufficient historical price data; insufficient data may lead to inaccurate calculations.
Regular updates and backtesting are essential to maintain effectiveness over time.
Single Indicator Risk:
Relying solely on MACD-based signals can miss broader market context; combining with other analytical tools is recommended.
Always validate signals through multiple lenses to mitigate risks associated with single-indicator strategies.
NOTES
Data Sufficiency:
Ensure your chart has enough historical data loaded to support robust MACD computations.
Periodically review and update data inputs to reflect current market dynamics.
Testing and Validation:
Conduct thorough testing on demo accounts before deploying the indicator in live trading scenarios.
Backtest across various market cycles to assess its resilience under different conditions.
Parameter Optimization:
Experiment with different parameter settings tailored to specific asset classes or trading styles.
Fine-tune the lookback period and other configurable options to align with personal trading objectives.
Multi Timeframe ATR, CCI & RSIMulti Timeframe ATR, CCI & RSI (MTF IND)
This indicator displays ATR, CCI, and RSI values from a custom selected timeframe in a clean table overlay.
It helps monitor volatility and momentum from higher/lower timeframes directly on your current chart.
Features:
• Select custom timeframe for all indicators (e.g., 1D, 1W, 65m, etc.)
• ATR with selectable smoothing type (RMA, SMA, EMA, WMA)
• CCI & RSI with trend arrows (▲ rising, ▼ falling, ▬ neutral)
• Compact summary table
Aesthetic RSI [AlchimistOfCrypto]🌌 Aesthetic RSI – Unveiling the Fractal Forces of Markets 🌌
Category: Momentum Indicators 📈
"The RSI oscillator, formalized through an advanced mathematical prism, reveals the underlying fractal structures of price movements. This indicator draws inspiration from quantum principles of divergence-convergence where the probability of a return to equilibrium increases proportionally to the distance from the median point. Our implementation employs sophisticated algorithmic smoothing to filter out the stochastic noise inherent in financial markets, allowing visualization of the true momentum forces according to thermodynamic entropy principles applied to trading systems."
📊 Professional Trading Application
The Aesthetic RSI is a visually stunning and mathematically refined take on the classic Relative Strength Index. With customizable settings, advanced smoothing, and eight unique visual palettes, it empowers traders to detect momentum shifts and divergences with unparalleled clarity.
⚙️ Indicator Configuration
- Length 📏
The core parameter (default: 20) that determines the calculation period.
- Lower values (8-14): Increase sensitivity for short-term trading.
- Higher values (21-34): Provide stronger signals for position trading.
- OverBought/OverSold Thresholds 🎯
Customizable boundaries (default: 75/25) to identify extreme market conditions.
- Calibrate based on asset volatility: Higher volatility assets may need wider thresholds (80/20) to reduce false signals.
- Style 🎨
Eight meticulously crafted visual palettes optimized for pattern recognition:
- Miami Vice (default): High-contrast cyan/magenta scheme for spotting divergences.
- Cyberpunk: Yellow/purple combo to highlight momentum shifts.
- Classic: Traditional green/red for conventional analysis.
- High Contrast: Maximum visual separation for traders with visual impairments.
- Specialized palettes (Forest, Ocean, Fire, Monochrome): Tailored for diverse market conditions.
- Mode Selection 🔄
- Full: Displays a complete gradient spectrum across the RSI range, emphasizing momentum transitions between 35-65.
- OverZone: Focuses on actionable extreme zones, reducing noise in ranging markets.
🚀 How to Use
1. Adjust Length ⏰: Set the period based on your trading style (short-term or long-term).
2. Fine-Tune Thresholds 🎚️: Customize overbought/oversold levels to match the asset’s volatility.
3. Select a Palette 🌈: Choose a visual style that enhances your pattern recognition.
4. Choose Mode 🔍: Use "Full" for detailed momentum analysis or "OverZone" for extreme zone focus.
5. Spot Divergences ✅: Look for price-RSI divergences to anticipate reversals.
6. Trade with Precision 🛡️: Combine with other indicators for high-probability setups.
📅 Release Notes (April 2025)
Aesthetic RSI blends quantum-inspired mathematics with artistic visualization, redefining momentum analysis. Stay tuned for future enhancements! ✨
🏷️ Tags
#Trading #TechnicalAnalysis #RSI #Momentum #Divergence #MultiTimeframe #TradingStrategy #RiskManagement #Forex #Stocks #Crypto #Bitcoin #AlgoTrading #DayTrading #SwingTrading #TheAlchimist #QuantumTrading #VisualTrading #PatternRecognition
MACD [AlchimistOfCrypto]🌠 MACD Optimized with Python – Decoding the Chaos of Markets 🌠
Category: Trend Analysis 📈
"Like the dynamic systems studied in chaos theory, financial markets appear unpredictable at first glance. Yet, as Edward Lorenz demonstrated, even in apparent chaos reside harmonious mathematical structures. The MACD (Moving Average Convergence Divergence) represents this quest for order within disorder—a mathematical formulation that extracts coherent signals from price noise. By combining moving averages of different periods, this indicator reveals hidden cycles and precise moments when market energy shifts, like a pendulum obeying the immutable laws of physics."
📊 Technical Overview
The MACD Optimized with Python is a revolutionary take on the classic Moving Average Convergence Divergence indicator. Powered by Python-driven optimizations 🐍, it adapts to specific timeframes, delivering razor-sharp signals for traders seeking to navigate the market’s chaos with precision.
⚙️ How It Works
- Python-Optimized Parameters 🔧: Unlike the standard MACD (12,26,9), our version uses mathematically tailored parameters for each timeframe:
- 1H: 11/38/27
- 4H: 9/98/27
- 1D: 45/90/29
- 1W: 9/16/3
- 2W: 5/20/5
- Intuitive Visuals 🎨:
- Crossovers marked by colored dots 🟢🔴 for clear entry/exit signals.
- Histogram with a color gradient 🌈 to show direction and momentum intensity.
- Customizable Signals 🎯: Choose to display long, short, or both signals to match your trading style.
🚀 How to Use This Indicator
1. Select Your Timeframe ⏰: Choose the timeframe aligned with your trading horizon (1H, 4H, 1D, 1W, or 2W).
2. Spot Crossovers 🔍: Watch for the MACD line (green) crossing the signal line (red) to identify potential trend changes.
3. Confirm with Divergence ✅: Combine crossovers with price-MACD divergence for high-probability trend reversal signals.
📅 Release Notes
Unlock the hidden order of markets with this Python-optimized MACD. Stay tuned for future enhancements! ✨
🏷️ Tags
#Trading #TechnicalAnalysis #MACD #TrendAnalysis #Python #MultiTimeframe #Divergence #Momentum #TradingStrategy #RiskManagement #Forex #Stocks #Crypto #ChaosTheory #OptimizedTrading
[blackcat] L3 Magic-9 Sequential MACDOVERVIEW
The L3 Magic-9 Sequential MACD indicator is an advanced tool designed to enhance the traditional Moving Average Convergence Divergence (MACD) by incorporating sequential patterns. This script calculates various MACD components and applies custom logic to identify potential buy and sell signals based on specific sequential conditions 📊💹.
FEATURES
Calculates MACD Line, Signal Line, and enhanced histogram.
Plots colored histograms to visualize differences between MACD line and signal line:
Positive histogram bars indicate bullish momentum.
Negative histogram bars indicate bearish momentum.
Identifies sequential patterns in the MACD line for generating buy ('Buy') and sell ('Sell') signals 🏷️.
Adds numerical labels (e.g., '5', '6', '7', etc.) to mark specific sequential conditions.
Supports customizable colors and styles for plotted elements ⚙️.
Generates alerts for identified sequential patterns 🔔.
HOW TO USE
Add the indicator to your TradingView chart by selecting it from the indicators list.
Adjust the input parameters for Fast Length, Slow Length, and Signal Length.
Monitor the chart for labeled buy/sell signals and numerical markers indicating sequential patterns.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Use the indicator alongside other technical analysis tools for better decision-making.
LIMITATIONS
The effectiveness of sequential patterns may vary depending on market conditions.
False signals can occur in highly volatile or ranging markets 🌪️.
Users should always confirm signals with other forms of analysis before entering trades.
NOTES
Ensure that you have sufficient historical data available for accurate MACD calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize the appearance of the plotted elements as needed to suit your chart layout.
Slope Change Rate Volume ConfirmationSlope Change Rate Volume Confirmation (SCR)
█ OVERVIEW
This indicator identifies moments where the price trend is not just moving, but accelerating (i.e., the rate of change of the trend's slope is increasing or decreasing significantly), and crucially, whether this acceleration is confirmed by high volume . The core idea is that price acceleration backed by strong volume suggests higher conviction behind the move, potentially indicating the start or continuation of a strong thrust. Conversely, acceleration without volume might be less reliable.
It calculates the slope (velocity) of price movement, then the change in that slope (acceleration). This acceleration is normalized to a -100 to 100 range for consistent threshold application. Finally, it checks if significant acceleration coincides with volume exceeding its recent average.
█ HOW IT WORKS
The indicator follows these steps:
1. Slope Calculation (Velocity):
Calculates the slope of a linear regression line based on the input `Source` over the `Slope Calculation Length`. This represents the instantaneous rate of change or "velocity" of the price trend.
// Calculate linear regression slope (current value - previous value)
slope = ta.linreg(src, slopeLen, 0) - ta.linreg(src, slopeLen, 1)
2. Acceleration Calculation & Normalization:
Determines the bar-to-bar change in the calculated `slope` (`slope - slope `). This raw change represents the "acceleration". This value is then immediately normalized to a fixed range of -100 to +100 using the internal `f_normalizeMinMax` function over the `Volume SMA Length` lookback period. Normalization allows the `Acceleration Threshold` input to be applied consistently.
// Calculate slope change rate (acceleration) and normalize it
// f_normalizeMinMax(source, length, newMin, newMax)
accel = f_normalizeMinMax(slope - slope , volSmaLen, -100, 100)
*( Note: `f_normalizeMinMax` is a standard min-max scaling function adapted to the -100/100 range, included within the script's code.*)*
3. Volume Confirmation Check:
Calculates the Simple Moving Average (SMA) of volume over the `Volume SMA Length`. It then checks if the current bar's volume is significantly higher than this average, defined by exceeding the average multiplied by the `Volume Multiplier Threshold`.
// Calculate average volume
avgVolume = ta.sma(volume, volSmaLen)
// Determine if current volume is significantly high
isHighVolume = volume > avgVolume * volMultiplier
4. Confirmation Signals:
Combines the normalized acceleration and volume check to generate the final confirmation boolean flags:
// Bullish: Price is accelerating upwards (accel > threshold) AND volume confirms
confirmBullishAccel = accel > accelThreshold and isHighVolume
// Bearish: Price is accelerating downwards (accel < -threshold) AND volume confirms
confirmBearishAccel = accel < -accelThreshold and isHighVolume
█ HOW TO USE
Confirmation Filter: The primary intended use is to filter entry signals from another strategy. Only consider long entries when `confirmBullishAccel` is true, or short entries when `confirmBearishAccel` is true. This helps ensure you are entering during periods of strong, volume-backed momentum.
// Example Filter Logic
longEntry = yourPrimaryBuySignal and confirmBullishAccel
shortEntry = yourPrimarySellSignal and confirmBearishAccel
Momentum Identification: High absolute values of the plotted `Acceleration` (especially when confirmed by the shapes) indicate strong directional conviction.
Potential Exhaustion/Divergence: Consider instances where price accelerates significantly (large absolute `accel` values) without volume confirmation (`isHighVolume` is false). This *might* suggest weakening momentum or potential exhaustion, although this requires further analysis.
█ INPUTS
Slope Calculation Length: Lookback period for the linear regression slope calculation.
Volume SMA Length: Lookback period for the Volume SMA and also for the normalization range of the acceleration calculation.
Volume Multiplier Threshold: Factor times average volume to define 'high volume'. (e.g., 1.5 means > 150% of average volume).
Acceleration Threshold: The minimum absolute value the normalized acceleration (-100 to 100 range) must reach to trigger a confirmation signal (when combined with volume).
Source: The price source (e.g., close, HLC3) used for the slope calculation.
█ VISUALIZATION
The indicator plots in a separate pane:
Acceleration Plot: A column chart showing the normalized acceleration (-100 to 100). Columns are colored dynamically based on acceleration's direction (positive/negative) and change (increasing/decreasing).
Threshold Lines: White horizontal dashed lines drawn at the positive and negative `Acceleration Threshold` levels.
Confirmation Shapes:
Green Upward Triangle (▲) below the bar when Bullish Acceleration is confirmed by volume (`confirmBullishAccel` is true).
Red Downward Triangle (▼) above the bar when Bearish Acceleration is confirmed by volume (`confirmBearishAccel` is true).
█ SUMMARY
The SCR indicator is a tool designed to highlight periods of significant price acceleration that are validated by increased market participation (high volume). It can serve as a valuable filter for momentum-based trading strategies by helping to distinguish potentially strong moves from weaker ones. As with any indicator, use it as part of a comprehensive analysis framework and always practice sound risk management.
Oath KeeperOath Keeper - Advanced Money Flow & Market Dynamics Indicator
A sophisticated indicator that analyzes market dynamics through money flow patterns, volume analysis, and liquidation detection to identify high-probability trading opportunities.
Core Features:
• Smart Money Flow Analysis: Proprietary calculation of institutional money movement
• Volume-Enhanced Signals: Multi-timeframe volume confirmation
• Liquidation Detection: Identifies potential forced liquidation events
• Advanced Signal Classification: Regular, Super, and Fakeout signals
Signal Types:
1. Regular Signals (Green/Purple Circles)
• Volume-confirmed momentum shifts
• Money flow threshold breaches
• Institutional participation confirmation
2. Super Signals (Green/Purple Squares)
• Deep oversold/overbought reversals
• High-volume rejection patterns
• Liquidation event confirmation
3. Fakeout Signals (Red X)
• Rapid sentiment shifts
• Trap detection
• False breakout warnings
Visual Components:
• Dynamic Money Flow Line (White/Purple)
• Order Flow Clouds (Green/Red with high transparency)
• Reference Levels (20, 50, 80)
• Multi-type Signal Markers
• Color-coded momentum visualization
Interpretation Guide:
• Green Cloud: Bullish money flow dominance
• Red Cloud: Bearish money flow dominance
• Circle Markers: Standard reversals
• Square Markers: High-conviction moves
• X Markers: Potential trap zones
Best Practices:
• Most effective on 1H+ timeframes
• Use with major trading pairs
• Wait for candle close confirmation
• Combine with support/resistance levels
• Monitor volume confirmation
• Use multiple timeframe analysis
This indicator helps traders identify institutional money flow, potential liquidation events, and market reversals by analyzing volume patterns and money flow dynamics, providing multiple confirmation layers for trade decisions.
Note: Performance varies with market conditions and timeframes. Always employ proper risk management.
Liquidity Fracture DetectorThe Liquidity Fracture Detector is an advanced tool designed to identify micro-liquidity traps and structural fakeouts on intraday charts. These occur when the market appears to break out, only to quickly reverse — often triggered by stop hunts, inefficient fills, or manipulated order flow.
The script combines volume spikes, volatility anomalies, and price structure breaks to signal "fractures" — points where the market temporarily breaks its behavior, often followed by strong reversals or trend accelerations.
Detection logic in the script:
Volume spike greater than 2x the average (adjustable)
Volatility spike: candle range is > 1.5x the average
Extreme wicks: wick is larger than the candle body (a classic trap signal)
Structure break: price breaks previous high/low but closes back within the old range
Combine these elements → a “fracture” is marked
Visual representation:
Red background = potential bull trap (fake breakout to the upside)
Green background = potential bear trap (fake breakdown to the downside)
A label appears at each fracture: “Echo” with the number of previous hits
Ideal use cases:
Intraday trading (1m, 5m, 15m)
Crypto, indices, futures, and forex
Detecting reactive zones where the market takes a false direction
Confluence with S/R zones, order blocks, or liquidity pools
Fully customizable:
Volume and range sensitivity
Heatmap intensity
Toggle labels on/off
Note:
This script is intended to support discretionary analysis. It does not provide buy or sell signals and is not an automated strategy. Combine it with your own price action or order flow setup for optimal results.
Frozen Bias Zones – Sentiment Lock-insOverview
The Frozen Bias Zones indicator visualizes market sentiment lock-ins using a combination of RSI, MACD, and OBV. It creates "bias zones" that indicate whether the market is in a sustained bullish or bearish phase. These zones are then highlighted on the chart, helping traders spot when the market is locked in a bias. The script also detects breakout events from these zones and marks them with clear labels for easier decision-making.
Features
Multi-Indicator Sentiment Analysis: Combines RSI, MACD, and OBV to detect synchronized bullish or bearish sentiment.
Frozen Bias Zones: Identifies and visually represents zones where the market has remained in a particular sentiment (bullish or bearish) for a defined period.
Breakout Alerts: Displays labels to indicate when the price breaks out of the established bias zone.
Customizable Inputs: Adjust the zone duration, RSI, MACD, and breakout label visibility.
Input Parameters
Bias Duration (biasLength)
The minimum number of candles the market must stay in a specific sentiment to consider it a "Frozen Bias Zone".
Default: 5 candles.
RSI Period (rsiPeriod)
Period for the Relative Strength Index (RSI) calculation.
Default: 14 periods.
MACD Settings
MACD Fast (macdFast): The fast-moving average period for the MACD calculation.
Default: 12.
MACD Slow (macdSlow): The slow-moving average period for the MACD calculation.
Default: 26.
MACD Signal (macdSig): The signal line period for MACD.
Default: 9.
Show Break Label (showBreakLabel)
Toggle to show labels when the price breaks out of the bias zone.
Default: True (shows label).
Bias Zone Colors
Bullish Bias Color (bullColor): The color for bullish zones (light green).
Bearish Bias Color (bearColor): The color for bearish zones (light red).
How It Works
This indicator analyzes three key market metrics to determine whether the market is in a bullish or bearish phase:
RSI (Relative Strength Index)
Measures the speed and change of price movements. RSI > 50 indicates a bullish phase, while RSI < 50 indicates a bearish phase.
MACD (Moving Average Convergence Divergence)
Measures the relationship between two moving averages of the price. A positive MACD histogram indicates bullish momentum, while a negative histogram indicates bearish momentum.
OBV (On-Balance Volume)
Uses volume flow to determine if a trend is likely to continue. A rising OBV indicates bullish accumulation, while a falling OBV indicates bearish distribution.
Bias Zone Detection
The market sentiment is considered bullish if all three indicators (RSI, MACD, and OBV) are bullish, and bearish if all three indicators are bearish.
Bullish Zone: A zone is created when the market sentiment remains bullish for the duration of the specified biasLength.
Bearish Zone: A zone is created when the market sentiment remains bearish for the duration of the specified biasLength.
These bias zones are visually represented on the chart as colored boxes (green for bullish, red for bearish).
Breakout Detection
The script automatically detects when the market exits a bias zone. If the price moves outside the bounds of the established zone (either up or down), the script will display one of the following labels:
Bias Break (Up): Indicates that the price has broken upwards out of the zone (with a green label).
Bias Break (Down): Indicates that the price has broken downwards out of the zone (with a red label).
These labels help traders easily identify potential breakout points.
Example Use Case
Bullish Market Conditions: If the RSI is above 50, the MACD histogram is positive, and OBV is increasing, the script will highlight a green bias zone. Traders can watch for potential bullish breakouts or trend continuation after the zone ends.
Bearish Market Conditions: If the RSI is below 50, the MACD histogram is negative, and OBV is decreasing, the script will highlight a red bias zone. Traders can look for potential bearish breakouts when the zone ends.
Conclusion
The Frozen Bias Zones indicator is a powerful tool for traders looking to visualize prolonged market sentiment, whether bullish or bearish. By combining RSI, MACD, and OBV, it helps traders spot when the market is "locked in" to a bias. The breakout labels make it easier to take action when the price moves outside of the established zone, potentially signaling the start of a new trend.
Instructions
To use this script:
Add the Frozen Bias Zones indicator to your TradingView chart.
Adjust the input parameters to suit your trading strategy.
Observe the colored bias zones on your chart, along with breakout labels, to make informed decisions on trend continuation or reversal.
Institutional MACD (Z-Score Edition) [VolumeVigilante]📈 Institutional MACD (Z-Score Edition) — Professional-Grade Momentum Signal
This is not your average MACD .
The Institutional MACD (Z-Score Edition) is a statistically enhanced momentum tool, purpose-built for serious traders and breakout hunters . By applying Z-Score normalization to the classic MACD structure, this indicator uncovers statistically significant momentum shifts , enabling cleaner reads on price extremes, trend continuation, and potential reversals.
💡 Why It Matters
The classic MACD is powerful — but raw momentum values can be noisy and relative , especially on volatile assets like BTC/USD . By transforming the MACD line, signal line, and histogram into Z-scores , we anchor these signals in statistical context . This makes the Institutional MACD:
✔️ Timeframe-agnostic and asset-normalized
✔️ Ideal for spotting true breakouts , not false flags
✔️ A reliable tool for detecting momentum divergence and exhaustion
🧪 Key Features
✅ Full Z-Score normalization (MACD, Signal, Histogram)
✅ Highlighted ±Z threshold bands for overbought/oversold zones
✅ Customizable histogram coloring for visual momentum shifts
✅ Built-in alerts for zero-crosses and Z-threshold breaks
✅ Clean overlay with optional display toggles
🔁 Strategy Tip: Mean Reversion Signals with Statistical Confidence
This indicator isn't just for spotting breakouts — it also shines as a mean reversion tool , thanks to its Z-Score normalization .
When the Z-Score histogram crosses beyond ±2, it marks a statistically significant deviation from the mean — often signaling that momentum is overstretched and the asset may be due for a pullback or reversal .
📌 How to use it:
Z > +2 → Price action is in overbought territory. Watch for exhaustion or short setups.
Z < -2 → Momentum is deeply oversold. Look for reversal confirmation or long opportunities.
These zones often precede snap-back moves , especially in range-bound or corrective markets .
🎯 Combine Z-Score extremes with:
Candlestick confirmation
Support/resistance zones
Volume or price divergence
Other mean reversion tools (e.g., RSI, Bollinger Bands)
Unlike the raw MACD, this version delivers statistical thresholds , not guesswork — helping traders make decisions rooted in probability, not emotion.
📢 Trade Smart. Trade Vigilantly.
Published by VolumeVigilante
RSI-MACD Momentum Fusion Indicator(RMFI)📈 RSI-MACD Momentum Fusion Indicator (RMFI)
The RMFI combines the strengths of two RSI variants with a dynamically adaptive MACD module into a powerful momentum oscillator ranging from 0 to 100. The goal is to unify converging momentum information from different perspectives into a clear, weighted overall signal.
🔧 Core Features
RSI 1: Classic Wilder RSI, sensitive to short-term momentum.
RSI 2: Modified RSI based on normalized price movement ranges (Range Momentum).
MACD (3 Modes):
Standardized (min/max-based)
Fully adaptive (Z-score normalization)
50% adaptive (hybrid weighting of both approaches)
Dynamic MACD mode selection (optional): Automatic switching of MACD normalization based on volatility levels (ATR-based).
Signal Line: Smoothed average of all components to visualize momentum trends and crossovers.
🎯 Visualization
Clear separation of overbought (>70) and oversold (<30) zones with color highlighting.
Different colors based on the dynamic MACD mode – visually indicates how strongly the market adapts to volatility.
⚙️ Recommended Use
Ideal for trend following, divergence confirmation (with external divergence logic), and momentum reversals.
Particularly effective in volatile markets, as the MACD component adaptively responds to instability.
© champtrades
Volume Flow RatioVolume Flow Ratio (VFR) Indicator
Overview
The Volume Flow Ratio (VFR) is a sophisticated volume analysis tool that measures current trading volume relative to the maximum volume of the previous period. Unlike traditional volume indicators that show raw volume or simple moving averages, VFR provides context by comparing current activity to recent maximum activity levels.
Core Features
1. Split Period Analysis
- Multiple Timeframe Options:
- Daily: Compares to previous day's maximum
- Weekly: Week-to-week comparison
- NYSE Weekly: Specialized for stock market trading (Monday-Friday only)
- Monthly: Month-to-month analysis
- Quarterly: Quarter-to-quarter perspective
- Yearly: Year-over-year volume comparison
2. Ratio-Based Measurement
- Displays volume as a ratio (0 to 1+) rather than raw numbers
- 1.0 represents volume equal to previous period's maximum
- Example: If previous max was 50,000 contracts:
- Current volume of 25,000 shows as 0.5
- Current volume of 75,000 shows as 1.5
3. Triple Coloring Modes
- Moving Average Based:
- Compares current ratio to its moving average
- Customizable MA period
- Green: Above MA (higher than average activity)
- Red: Below MA (lower than average activity)
- Previous Candle Comparison:
- Simple increase/decrease from previous bar
- Green: Higher than previous bar
- Red: Lower than previous bar
- Candle Color Based:
- Syncs with price action
- Green: Bullish candles (close > open)
- Red: Bearish candles (close < open)
Primary Use Cases
1. Volume Profile Analysis
- Perfect for traders who need to understand when markets are most active
- Helps identify unusual volume spikes relative to recent history
- Useful for timing entries and exits based on market participation
2. Market Activity Traders
Ideal for traders who:
- Need to identify high-liquidity periods
- Want to avoid low-volume periods
- Look for volume breakouts or divergences
- Trade based on institutional participation levels
3. Mean Reversion Traders
Helps identify:
- Overextended volume conditions (potential reversals)
- Volume exhaustion points
- Return to normal volume levels after spikes
4. Momentum Traders
Useful for:
- Confirming trend strength through volume
- Identifying potential trend exhaustion
- Validating breakouts with volume confirmation
Advantages Over Traditional Volume Indicators
1. Contextual Analysis
- Shows relative strength rather than raw numbers
- Easier to compare across different time periods
- Automatically adjusts to changing market conditions
2. Period-Specific Insights
- Respects natural market cycles (daily, weekly, monthly)
- Special handling for NYSE trading days
- Eliminates weekend noise in stock market analysis
3. Flexible Visualization
- Three distinct coloring methods for different trading styles
- Clear reference line at 1.0 for quick analysis
- Histogram style for easy pattern recognition
Best Practices
For Day Traders
- Use Daily split for intraday volume patterns
- MA coloring mode with shorter periods (5-10)
- Focus on ratios during market hours
For Swing Traders
- Weekly or NYSE Weekly splits
- Longer MA periods (15-20)
- Look for sustained volume patterns
For Position Traders
- Monthly or Quarterly splits
- Candle color mode for trend confirmation
- Focus on major volume shifts
Limitations
- Requires one full period to establish baseline
- May be less effective in extremely low volume conditions
- NYSE Weekly mode specific to stock market hours
This indicator is particularly valuable for traders who understand that volume is a crucial component of price action but need a more sophisticated way to analyze it than simple volume bars. It's especially useful for those who trade based on market participation levels and need to quickly identify whether current volume is significant relative to recent history.
[blackcat] L3 Ehlers DFT-Adapted RSIOVERVIEW
The L3 Ehlers DFT-Adapted RSI is an advanced technical indicator that combines Digital Fourier Transform (DFT) analysis with traditional RSI calculations to provide enhanced market trend identification and trading signals.
FEATURES
• DFT-based frequency analysis of price movements
• Adaptive RSI calculation using dominant cycle detection
• Fast and slow moving average lines
• Color-coded candlestick visualization
• Horizontal reference lines at 45 and 55
• Intelligent sideways detection and label management
• Customizable parameter inputs
HOW TO USE
Configure the following inputs:
• Price source (default: HL2)
• Window size (default: 50)
• Overbought threshold (default: 70)
• Oversold threshold (default: 30)
• Fraction multiplier (default: 0.5)
Interpret the indicator:
• Yellow candles indicate bullish momentum
• Fuchsia candles indicate bearish momentum
• Crosses between fast and slow lines suggest potential trend changes
• Position relative to the 45/55 lines indicates overall market sentiment
• Labels appear only when sideways conditions break
SIDESWAYS DETECTION
• Sideways conditions are identified when:
The difference between fast and slow lines is less than 0.5
Both lines show minimal movement (< 0.1) • During sideways periods:
Existing labels are removed
No new labels are generated • When sideways ends:
If trend reverses, opposite label is generated
If trend continues, no new label is created
LIMITATIONS
• Requires sufficient historical data for accurate calculations
• Performance may vary across different market conditions
• Parameter sensitivity requires careful calibration
NOTES
• The indicator uses Ehlers' proprietary DFT methodology
• Default settings are optimized for general market conditions
• Consider adjusting parameters based on your trading timeframe and strategy
Dynamic Adaptive Moving Average [Alpha Extract]Dynamic Adaptive Moving Average (DAMA) 📊
The Dynamic Adaptive Moving Average (DAMA) indicator is an adaptive technical tool that automatically discovers the optimal moving average period based on forward-looking price behavior. Unlike traditional fixed-length moving averages, this indicator continuously evaluates multiple timeframes to identify which MA length most accurately predicts future price movement, creating a responsive trend line that adapts to changing market conditions.
🔶 CALCULATION
The indicator employs a dynamic optimization algorithm to select the most effective moving average:
• Period Testing: Evaluates MA lengths from 5 to 100 periods to find the optimal timeframe
• Predictive Error: Measures each MA's accuracy by comparing it to the actual price 5 bars in the future
• Trend Weighting: Incorporates Rate of Change (ROC) to give higher priority to trend-following capabilities
• Error Minimization: Selects the MA length with the lowest weighted predictive error
• Smoothing: Applies an exponential smoothing factor (0.2) to prevent erratic changes in the trend line
🔶 DETAILS
Visual Features:
• Adaptive Trend Line: A yellow line representing the smoothed optimal moving average that dynamically adjusts its period
• Color-Coded Fills: Green areas when price is above the optimal MA (bullish), red when price is below (bearish)
• Opacity Gradient: Fill transparency provides visual context for the relationship between price and the trend line
• Real-Time Optimization Display: A table in the top-right corner shows the current optimal MA length
Interpretation:
• Bullish Signal: Price above the yellow DAMA line with green fill indicates upward momentum
• Bearish Signal: Price below the yellow DAMA line with red fill suggests downward pressure
• Trend Changes: Watch for crossovers between price and the DAMA for potential trend shifts
• Optimal Length Changes: Shorter optimal lengths may indicate trending markets, while longer lengths often appear in ranging conditions
🔶 EXAMPLES
The indicator demonstrates:
• Trend Identification: The DAMA hugs price more closely during trends while maintaining enough distance to filter noise
• Dynamic Adaptation: The MA length automatically adjusts shorter during strong trends and longer during consolidations
• Forward-Looking: By optimizing based on future price projection (5 bars), the indicator anticipates price movements better than traditional MAs
• Smooth Transitions: The smoothing algorithm prevents whipsaws while still allowing the MA to adapt to changing conditions
🔶 SETTINGS
Customization Options:
• Min/Max Length: Define the range of MA periods to test (default: 5-100)
• Step Size: Set the increment for testing different MA lengths (default: 1)
• Lookahead: Adjust the number of bars to project ahead for optimization (default: 5)
• Smoothing Factor: Control how quickly the MA adapts to new optimal lengths (default: 0.2)
The Dynamic Adaptive Moving Average (DAMA) indicator offers traders a sophisticated yet intuitive trend-following tool that eliminates the need to manually select MA periods.
Its self-optimizing algorithm continuously identifies the most effective moving average length based on actual price prediction accuracy, making it valuable for various trading strategies across different market environments and timeframes.
Gas/Oil SpreadGas/Oil Spread Analyzer with Static Overbought/Oversold Zones
This indicator measures the spread between the actual price of natural gas and its oil-based equivalent, derived from a defined oil/gas ratio. It helps traders identify potential mispricings and mean-reversion opportunities between the two energy commodities.
Key Features:
- Calculates spread: Gas Price – Oil-Based Equivalent Price
- Supports dynamic or static oil/gas ratio
- Plots a smoothed version of the spread (SMA)
- Displays static overbought and oversold zones to highlight extreme deviations
Use Cases:
- Detect overvalued or undervalued gas relative to oil
- Spot potential reversion setups in intermarket trading
- Evaluate energy market dislocations and hedging opportunities
Parabolic RSI [ChartPrime]The Parabolic RSI indicator applies the Parabolic SAR directly to the Relative Strength Index (RSI) . This combination helps traders identify trend shifts and potential reversal points within the RSI framework. The indicator provides both regular and strong signals based on whether the Parabolic SAR crosses above or below key RSI thresholds.
⯁ KEY FEATURES
Parabolic SAR Applied to RSI – Tracks momentum shifts within the RSI indicator.
Dynamic SAR Dots – Plots SAR levels directly on the RSI for visual clarity.
Threshold-Based Signal Filtering – Uses upper (70) and lower (30) RSI levels to determine strong signals.
Simple and Strong Signal System :
Big Diamonds (Strong Signals) – Appear when Parabolic SAR crosses above 70 or below 30 RSI, indicating potential reversals.
Small Diamonds (Regular Signals) – Appear when Parabolic SAR flips inside the RSI range, signaling weaker trend shifts.
Chart Overlay Signals – Highlights strong RSI-based trend shifts directly on the price chart.
Fully Customizable – Modify RSI length, SAR parameters, colors, and signal displays.
⯁ HOW TO USE
Look for strong signals (big diamonds) when SAR flips above 70 RSI (overbought) or below 30 RSI (oversold) for potential reversals.
Use regular signals (small diamonds) for minor trend shifts within the RSI range.
Combine with price action and other indicators to confirm entry and exit points.
Adjust the SAR acceleration factors to fine-tune sensitivity based on market conditions.
⯁ CONCLUSION
The Parabolic RSI indicator merges trend-following and momentum-based analysis by applying the Parabolic SAR to RSI. This allows traders to detect trend shifts inside the RSI space with an intuitive diamond-based signal system . Whether used alone or as part of a broader trading strategy, this indicator provides a clear and structured approach to identifying momentum reversals and potential trading opportunities.
3CRGANG - Histogram (Basic)This indicator provides traders with a unified view of momentum by combining multiple classic oscillators into a single histogram. By aggregating momentum signals into one visual output, it simplifies trend analysis, helping traders identify momentum shifts without managing multiple indicators separately.
What It Does
The 3CRGANG - Histogram (Basic) calculates a momentum-based histogram using a user-selected oscillator (e.g., RSI, MACD, MFI, RVI, Stochastic, Stochastic RSI, or TMASlope). The histogram is plotted with color-coded bars to indicate bullish, bearish, or neutral momentum, alongside predefined alert levels and a trend status table for quick reference.
Why It’s Useful
This script addresses the challenge of monitoring multiple momentum indicators by consolidating them into a single histogram. Each oscillator measures momentum differently (e.g., RSI tracks price strength, MACD focuses on moving average convergence, MFI incorporates volume), but the script normalizes these signals into a unified output. This reduces chart clutter and provides a clear, actionable signal for identifying trend direction, making it easier for traders to focus on key momentum shifts across various market conditions.
How It Works
The script follows these steps to generate the histogram:
Oscillator Selection: Traders choose one oscillator to base the histogram on. For example: RSI measures the speed and change of price movements, MACD tracks the relationship between two exponential moving averages, and MFI combines price and volume to measure buying/selling pressure. The choice of oscillator affects the histogram’s sensitivity to price movements.
Fast Oscillator Calculation: A fast-moving oscillator is computed using the selected method over a user-defined period (default: 8 bars). For instance, RSI calculates the relative strength of price gains versus losses, while MACD computes the difference between short and long EMAs. The result is normalized to a range centered around zero.
Histogram Plotting: The oscillator’s output is adjusted by a modification factor (default: 1) for sensitivity tuning and plotted as a histogram. Positive values indicate bullish momentum, negative values indicate bearish momentum, and values near zero suggest a lack of clear trend.
Color Coding: Bars are colored based on momentum and price direction: green for bullish momentum (price moving upward, histogram value typically positive), red for bearish momentum (price moving downward, histogram value typically negative), and grey for neutral momentum (ranging conditions or unclear trend).
Alert Levels: Predefined buy and sell levels are plotted as dotted lines to mark significant momentum thresholds. For most oscillators, levels are set at 20 (buy) and -20 (sell), representing overbought/oversold conditions based on historical performance. For TMASlope, levels are adjusted to 0.04 and -0.04, as it measures the slope of a triangular moving average relative to the average true range (ATR).
Trend Table: A table in the top-right corner displays the current timeframe’s trend status ("Buy Only," "Sell Only," or "Ranging") based on the histogram value, price direction, and alert levels, along with the histogram’s numerical value.
Underlying Concepts
The script is built on the concept of momentum aggregation, aiming to capture short-term price dynamics while filtering noise. By using a fast-moving oscillator, it emphasizes recent price action, and the histogram format provides a visual summary of momentum strength. The alert levels are derived from typical overbought/oversold thresholds for each oscillator, adjusted to ensure consistency across different methods. The trend table adds a layer of interpretation, helping traders quickly assess whether the momentum aligns with the broader trend.
Use Case
Trending Markets: In a bullish trend, green bars above the buy alert level (e.g., 20) indicate strong upward momentum, suggesting potential long entries. In a bearish trend, red bars below the sell alert level (e.g., -20) suggest short opportunities.
Ranging Markets: Grey bars or values between alert levels indicate a lack of clear momentum, prompting caution or scalping strategies.
Confirmation Tool: Use the histogram to confirm price action signals, such as breakouts or reversals, by ensuring momentum aligns with the direction of the move. For example, a breakout with green bars above the buy level may signal a stronger trend.
Settings
Choose Type: Select the oscillator to use (default: RSI - CLASSIC).
Source: Choose between Close or HL2 price data (default: Close).
Histogram Length: Set the period for oscillator calculation (options: 5, 8, 13; default: 8).
Modification Factor: Adjust the sensitivity of the histogram (default: 1).
Notes
The script supports classic oscillators only and operates on the current timeframe.
If volume data is unavailable for your ticker, MFI calculations may not work; select another oscillator to continue plotting.
Disclaimer
This indicator is a tool for analyzing market trends and does not guarantee trading success. Trading involves risk, and past performance is not indicative of future results. Always use proper risk management.
SuperTrend Momentum OscillatorOverview
The SuperTrend Momentum Oscillator (SMO) is a powerful technical analysis tool designed to identify trend direction and strength in financial markets. It combines short-term and long-term oscillator calculations to provide traders with a comprehensive view of market conditions through an intuitive candle-based visualization system.
Key Features
Dual-period oscillator system (short-term and long-term)
Candle-based visualization showing trend direction and alignment
Color-coded trend direction based on the main (slower) trend line
Candle size reflecting alignment between fast and slow components
High-confidence "Super" signals (green diamonds for buys, purple diamonds for sells)
Market liquidity insights through oscillator readings
Understanding the Candle Visualization
Main Trend vs. Fast Money
The SMO uses two key components that work together:
Main Trend Line (Slower): The longer-period oscillator that acts as the primary trend indicator
Dictates the overall color of the candles (green for uptrend, red for downtrend)
Represents the dominant market direction
Fast Line (Quicker): The shorter-period oscillator that reacts more quickly to price changes
Helps determine the size of candles through its alignment with the main trend
Represents "fast money" or shorter-term price reactions
Candle Components and Their Meaning
1. Candle Color
The color of each candle is determined by the direction of the main trend line:
Green Candles: Main trend line is rising (bullish)
Indicates an overall uptrend regardless of short-term fluctuations
Remains green even when the fast line temporarily moves against the trend
Red Candles: Main trend line is falling (bearish)
Indicates an overall downtrend regardless of short-term fluctuations
Remains red even when the fast line temporarily moves against the trend
2. Candle Body Size
The body size of each candle represents the alignment between fast and main trend lines:
Large Bodies: Both fast and main trend lines are moving in the same direction
Trading Action: Strong confirmation of the trend direction
Confidence Level: High confidence signals
Small Bodies: Fast line is moving against the main trend line
Trading Action: Exercise caution; potential for temporary pullback or consolidation
Confidence Level: Lower confidence in immediate continuation
3. Wick Length
Wicks (shadows) provide additional information about price rejection and volatility:
Long Wicks: Indicate price rejection and potential volatility
Trading Action: Be cautious of trend continuation when long wicks appear
Confidence Level: Reduced confidence in immediate trend continuation
Short Wicks: Indicate strong directional control with minimal rejection
Trading Action: More confidence in trend continuation
Confidence Level: Higher confidence in the current trend direction
Candle Patterns Over Time
The progression of candles provides valuable trend information:
Large Green Candles: Main trend is up and fast line confirms (strong bullish)
Trading Action: Consider entering or adding to long positions
Confidence Level: High confidence in uptrend
Small Green Candles: Main trend is up but fast line is moving down (caution in uptrend)
Trading Action: Hold existing long positions but wait before adding
Confidence Level: Moderate confidence in uptrend, possible short-term pullback
Large Red Candles: Main trend is down and fast line confirms (strong bearish)
Trading Action: Consider entering or adding to short positions
Confidence Level: High confidence in downtrend
Small Red Candles: Main trend is down but fast line is moving up (caution in downtrend)
Trading Action: Hold existing short positions but wait before adding
Confidence Level: Moderate confidence in downtrend, possible short-term bounce
Super Signals - High Confidence Trading Opportunities
The SMO focuses exclusively on high-confidence "Super" signals:
Green Diamond Super Buy Signals
Meaning: Both short-term and long-term oscillators are generating buy signals simultaneously
Visual Indicator: Green diamond markers at the bottom of the indicator (0 level)
Trading Action: Strong entry signal for long positions
Confidence Level: High confidence signal, especially when accompanied by large green candles
Purple Diamond Super Sell Signals
Meaning: Both short-term and long-term oscillators are generating sell signals simultaneously
Visual Indicator: Purple diamond markers at the top of the indicator (100 level)
Trading Action: Strong entry signal for short positions or exit signal for long positions
Confidence Level: High confidence signal, especially when accompanied by large red candles
Market Liquidity Concept
The SMO provides a unique perspective on market conditions that goes beyond traditional oscillator interpretations:
Low Oscillator Readings (Below 20)
When the oscillator shows low readings (below 20), this indicates:
Traditional interpretation: Market is oversold, potential for upward reversal
Liquidity interpretation: Insufficient money in the market
This suggests thin trading conditions where large orders may have outsized impact
Price movements may be more erratic and less predictable
Breakouts may lack follow-through due to insufficient participation
High Oscillator Readings (Above 80)
When the oscillator shows high readings (above 80), this indicates:
Traditional interpretation: Market is overbought, potential for downward reversal
Liquidity interpretation: Abundant money in the market
This suggests deep trading conditions with high participation
Price movements tend to be more orderly and trend-based
Breakouts may have stronger follow-through due to high participation
Trading Strategies with SMO
Strategy 1: Main Trend with Alignment Confirmation
This strategy uses the main trend direction with alignment confirmation:
Entry Criteria:
Main trend direction is established (green or red candles)
Fast line aligns with main trend (large candles)
Super signal confirms (green or purple diamond)
Exit Criteria:
For long positions: When candles turn red or Super Sell signal appears
For short positions: When candles turn green or Super Buy signal appears
Stop Loss Placement:
For long positions: Below recent swing low
For short positions: Above recent swing high
Strategy 2: Counter-Trend Opportunity Detection
This strategy identifies potential counter-trend opportunities:
Entry Criteria:
Small candles appear (indicating disagreement between fast and main trend lines)
Oscillator reaches extreme levels (above 80 or below 20)
Wait for candle color change before entering
Position Sizing:
Use smaller position sizes for counter-trend trades
Increase size only when main trend confirms the new direction
Exit Criteria:
Take profit at the first sign of alignment in the opposite direction
Use tighter stops than with trend-following trades
Strategy 3: Market Liquidity Strategy
This strategy incorporates the market liquidity concept:
For Low Liquidity Conditions (Readings below 20):
Wait for Super Buy signals (green diamond)
Use smaller position sizes
Be prepared for potentially erratic price movements
Look for signs of increasing liquidity (expanding candle bodies) before adding to positions
For High Liquidity Conditions (Readings above 80):
Consider holding positions longer despite "overbought" readings
Use trailing stops to capture extended moves
Be aware that trends may persist longer than expected
Practical Trading Scenarios
Scenario 1: Strong Trend Confirmation
Candle Pattern: Series of large green candles (main trend up, fast line confirms)
Signal: Green diamond Super Buy marker at the bottom (0 level)
Background: Intensifying green gradient
Action: Enter long position with confidence
Stop Loss: Below recent swing low
Take Profit: When candles become small or turn red
Scenario 2: Trend Weakening Detection
Candle Pattern: Green candles becoming smaller (main trend still up, but fast line diverging)
Signal: No new signals
Background: Fading green gradient
Action: Tighten stops on long positions, prepare for potential reversal
Reasoning: Fast money is starting to move against the main trend
Scenario 3: Trend Reversal Identification
Candle Pattern: Transition from small green candles to red candles (main trend changing)
Signal: Appearance of purple diamond Super Sell marker at the top (100 level)
Background: Changing from green to red gradient
Action: Exit long positions and potentially enter short positions
Timing: Most effective when reversal occurs near overbought (80) level
