Normalized Adaptive Trend Lines [MAMA and FAMA]These indicators was originally developed by John F. Ehlers (Stocks & Commodities V. 19:10: MESA Adaptive Moving Averages). Everget wrote the initial functions for these in pine script. I have simply normalized the indicators and chosen to use the Laplace transformation instead of the hilbert transformation
How the Indicator Works:
The indicator employs a series of complex calculations, but we'll break it down into key steps to understand its functionality:
LaplaceTransform: Calculates the Laplace distribution for the given src input. The Laplace distribution is a continuous probability distribution, also known as the double exponential distribution. I use this because of the assymetrical return profile
MESA Period: The indicator calculates a MESA period, which represents the dominant cycle length in the price data. This period is continuously adjusted to adapt to market changes.
InPhase and Quadrature Components: The InPhase and Quadrature components are derived from the Hilbert Transform output. These components represent different aspects of the price's cyclical behavior.
Homodyne Discriminator: The Homodyne Discriminator is a phase-sensitive technique used to determine the phase and amplitude of a signal. It helps in detecting trend changes.
Alpha Calculation: Alpha represents the adaptive factor that adjusts the sensitivity of the indicator. It is based on the MESA period and the phase of the InPhase component. Alpha helps in dynamically adjusting the indicator's responsiveness to changes in market conditions.
MAMA and FAMA Calculation: The MAMA and FAMA values are calculated using the adaptive factor (alpha) and the input price data. These values are essentially adaptive moving averages that aim to capture the current trend more effectively than traditional moving averages.
But Omar, why would anyone want to use this?
The MAMA and FAMA lines offer benefits:
The indicator offers a distinct advantage over conventional moving averages due to its adaptive nature, which allows it to adjust to changing market conditions. This adaptability ensures that investors can stay on the right side of the trend, as the indicator becomes more responsive during trending periods and less sensitive in choppy or sideways markets.
One of the key strengths of this indicator lies in its ability to identify trends effectively by combining the MESA and MAMA techniques. By doing so, it efficiently filters out market noise, making it highly valuable for trend-following strategies. Investors can rely on this feature to gain clearer insights into the prevailing trends and make well-informed trading decisions.
This indicator is primarily suppoest to be used on the big timeframes to see which trend is prevailing, however I am not against someone using it on a timeframe below the 1D, just be careful if you are using this for modern portfolio theory, this is not suppoest to be a mid-term component, but rather a long term component that works well with proper use of detrended fluctuation analysis.
Dont hesitate to ask me if you have any questions
Again, I want to give credit to Everget and ChartPrime!
M-oscillator
TRAX Detrended Price StrategyIn this script, the "TRAX" (TRIX) indicator is calculated using the Volume Weighted Moving Average (VWMA) instead of Exponential Moving Average (EMA) like the standard TRIX. The Detrended Price is used to identify short term cycles with a rate of change verses the rate of change from a triple smoothed TRAX VWMA . The strategy is intended for counter-trend trading, meaning it tries to capture potential reversals.
1. Indicators Used:
TRAX is calculated using the Volume Weighted Moving Average (VWMA) of the logarithm of the closing price.
DPO (Detrended Price Oscillator) is calculated by taking the closing price and subtracting a simple moving average (SMA) of the closing price shifted back.
2. Crossover Conditions:
Longs occur when DPO crosses above the TRAX, with the TRAX trending below 0, and the stock is trading above an adjustable simple moving average. Shorts occur due to the inverse conditions.
3. Visualization:
This script plots the SMA and the TRAX-DPO Combined Oscillator.
It highlights the periods of zero-line crossover using a green background for potential long positions and a red background for potential short positions. However, it will trigger verified entries/exits in accordance with the SMA.
In conclusion, this fun prototype underwent a unique alteration using the Volume Weighted Moving Average and focuses on capturing shorter counter-trend cycles. You have the freedom to fine-tune the strategy by adjusting parameters and incorporating other analysis methods that resonate with your trading style and risk tolerance.
VCC SmtmWorks better for Cryptos (1W and greater than) timeframes.
This strategy incorporates multiple indicators to make informed trading signals. It leverages the Stochastic indicator to assess price momentum, utilizes the Bollinger Band to identify potential oversold and overbought conditions, and closely monitors Moving Averages to gauge the trend's bullish or bearish nature.
A long signal will be displayed if the following conditions are met:
The Stochastic D and Stochastic K both indicate an oversold condition, with Stochastic K being lower than Stochastic D.
The current Price Low is below the Bollinger Lower Band.
The Price Close is currently below all Moving Averages.
A Death Cross pattern has formed among the Moving Averages.
A short signal will be displayed if the opposite of the long conditions are true:
The Stochastic D and Stochastic K both indicate an overbought condition, with Stochastic K being higher than Stochastic D.
The current Price High is above the Bollinger Upper Band.
The Price Close is currently above all Moving Averages.
A Golden Cross pattern has formed among the Moving Averages.
Expected Move from RSI [SS]Publishing this experimental indicator.
What it does:
The indicator uses a user-defined lookback period on a user-defined timeframe to lookback at all instances of RSI. It breaks RSI down as follows:
RSI between
0 - 10
10 - 20
20 - 30
30 - 40
40 - 50
50 - 60
60 - 70
70 - 80
80 - 90
90 - 100
From there, it stores the ticker's move from open to high and open to low. It will then use this data to look at the current RSI based on the specified timeframe and plot the expected move based on the average move the ticker does with a similar RSI reading.
It will plot the expected range, with the high range being plotted in green and the low range being plotted in red.
It will also display an infographic that dictates the current RSI based on the selected time frame, the anticipated up move and the anticipated down move. This infographic will also tell you the strength of the relationship (correlation) RSI has with the ticker's high or low price:
From there the user can determine whether this RSI reading is traditionally bullish or bearish for the ticker. A greater down move indicates that the RSI traditionally elicits a bearish response. A greater up move indicates the inverse.
The user can also view a chart of a breakdown of the anticipated moves based on RSI. If the option to "Show Expected Move Table" is select in the settings menu, the following table will appear:
From here you can see the average up move and down move a ticker does based on its corresponding RSI reading.
NOTE: When using the table, please adjust your chart timeframe to the selected timeframe on the indicator. Thus, if you are looking at the 1 hour levels, please adjust your chart to the 1 hour timeframe to use the chart.
Additional Note: When using the table, an "NaN" means that there are no instances of the ticker being at that RSI level within the designated timeframe period. You can extend your lookback period to up to 500 candles to see if it finds additional instances of similar RSI. Otherwise, you can adjust the selected timeframe.
Uses:
The indicator can be used on all timeframes. It can help give you an idea as to whether the RSI indicates a bearish or bullish sentiment.
It can signal a potential reversal or continuation. It can also help you with determining target prices for day trades and scalp trades.
And that is the indicator. Its pretty straight forward. It is experimental and new, so feel free to play around with it and let me know your thoughts.
Safe trades everyone and thank you for reading!
MACDh with divergences & impulse system-----------------------------------------------------------------
General Description:
This indicator ( the one on the low panel ) is a classic MACD that also shows regular divergences between its histogram and the prices. This script is special because it can be adjusted to fit several criteria when trading divergences filtering them according to the "height" and "width" of the patterns. The script also includes the "extra feature" Impulse System, which you will hardly find anywhere else in similar classic MACD histogram divergence indicators.
The indicator helps to find trend reversals, and it works on any market, any instrument, any timeframe, and any market condition (except against really strong trends that do not show any other sign of reversion yet).
Please take on consideration that divergences should be taken with caution.
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Definition of classic Bullish and Bearish divergences:
* Bearish divergences occur in uptrends identifying market tops. A classical or regular bearish divergence occurs when prices reach a new high and then pull back, with an oscillator (MACD histogram in this case) dropping below its zero line. Prices stabilize and rally to a higher high, but the oscillator reaches a lower peak than it did on a previous rally.
In the chart above (weekly charts of NKE, Nike, Inc.), in area X (around August 2021), NKE rallied to a new bull market high and MACD-Histogram rallied with it, rising above its previous peak and showing that bulls were extremely strong. In area Y, MACD-H fell below its centerline and at the same time prices punched below the zone between the two moving averages. In area Z, NKE rallied to a new bull market high, but the rally of MACD-H was feeble, reflecting the bulls’ weakness. Its downtick from peak Z completed a bearish divergence, giving a strong sell signal and auguring a nasty bear market.
* Bullish divergences , in the other hand, occur towards the ends of downtrends identifying market bottoms. A classical (also called regular) bullish divergence occurs when prices and an oscillator (MACD histogram in this case) both fall to a new low, rally, with the oscillator rising above its zero line, then both fall again. This time, prices drop to a lower low, but the oscillator traces a higher bottom than during its previous decline.
In the example in the chart above (weekly charts of NKE, Nike, Inc.), you see a bearish divergence that signaled the October 2022 bear market bottom, giving a strong buy signal right near the lows. In area A, NKE (weekly charts) appeared in a free fall. The record low A of MACD-H indicated that bears were extremely strong. In area B, MACD-H rallied above its centerline. Notice the brief rally of prices at that moment. In area C, NKE slid to a new bear market low, but MACD-H traced a much more shallow low. Its uptick completed a bullish divergence, giving a strong buy signal.
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Extra feature: Impulse System
This indicator also includes the “ Impulse System ”. The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram, and identifies inflection points where a trend speeds up or slows down. The moving average identifies the trend, while the MACD-Histogram measures momentum. This unique indicator combination is color coded into the price bars or macd histogram bars for easy reference.
Calculation:
Green Price Bar: (13-period EMA > previous 13-period EMA) and
(MACD-Histogram > previous period's MACD-Histogram)
Red Price Bar: (13-period EMA < previous 13-period EMA) and
(MACD-Histogram < previous period's MACD-Histogram)
Histogram bars are colored blue when conditions for a Red Histogram Bar or Green Histogram Bar are not met. The MACD-Histogram is based on MACD(12,26,9).
The Impulse System works more like a censorship system. Green histogram bars show that the bulls are in control of both trend and momentum as both the 13-day EMA and MACD-Histogram are rising (you don't have permission to sell). A red histogram bar indicates that the bears have taken control because the 13-day EMA and MACD Histogram are falling (you don't have permission to buy). A blue histogram bar indicates mixed technical signals, with neither buying nor selling pressure predominating (either both buying or selling are permitted).
The impulse system can be removed from the chart any time.
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Options/adjustments for this indicator:
*Horizontal Distance (width) between two tops/bottoms criteria.
Refers to the horizontal distance between the MACH histogram peaks involved in the divergence
*Height of tops/bottoms criteria (for Histogram).
Refers to the difference/relation/vertical distance between the MACH HISTOGRAM peaks involved in the divergence: 1st Histogram Peak is X times the 2nd.
*Height/Vertical deviation of tops/bottoms criteria (for Price).
Deviation refers to the difference/relation/vertical distance between the PRICE peaks involved in the divergence.
*Plot Regular Bullish Divergences?.
*Plot Regular Bearish Divergences?.
*Delete Previous Cancelled Divergences?.
*This indicator also has the option to show the Impulse System over the MACD histogram bars
Crude Oil Top and Bottoms -by Trevor GeallDiscover the Crude Oil Tops and Bottoms Predictor Indicator: Your Key to Market Precision!
How to Use:
Ideal for the daily chart. Wait for the colored background to form.
Confirm signals by waiting for the first candle to close after the background disappears. That would be your sign to go long (if the line is crossing up) or short (if line is crossing dow).
Combine with other indicators for enhanced insights.
Unveil Market Secrets:
Identifies potential tops and bottoms in crude oil.
Empowers strategic trading decisions.
Advanced divergence detection and price channel analysis.
Note: While powerful, no indicator guarantees perfect predictions. Use it alongside comprehensive analysis and risk management. Elevate your crude oil trading now!
PS If I get enough positive feedback on my indicators ill release some of the better ones.
Qualitative Smoothed Strength Index***RSI CHART BELOW IS FOR COMPARSION TO SHOW HOE THEY MAKE SIMILIAR PATTERNS*** IT IS NOT PART OF THE INDICATOR***
The Qualitative Smoothed Strength Index (QSSI) is a simplified momentum oscillator whose values will oscillate between 0 and 1 . By converting price differences into binary values and smoothing them with a moving average, it identifies qualitative strength of price movements. This simplification allows traders to easily interpret trends and reversals. The QSSI offers advantages such as noise reduction, clear trend identification, and early signal detection, resulting in less lag compared to traditional oscillators. Traders can customize the indicator based on their preferences and use it across various markets.
QSSI Indicator uses the input function is used to define the input parameters of the indicator. In this case, there are two inputs:
length: The number of periods used for calculating the differences (a, b, c) and their assigned values. Default value is 5.
MAL: The length of the moving average used for smoothing the assigned values. Default value is 14.
The next few lines calculate 'a', 'b', and 'c', which represent the differences between the high, low, and close prices, respectively, and their corresponding previous simple moving averages (SMAs) of specified length. These differences are used to identify price movements.
The code assigns binary values (0 or 1) to a_assigned, b_assigned, and c_assigned, depending on whether the corresponding differences (a, b, c) are greater than 0. This step converts the differences into a binary representation, indicating upward or downward price movements.
Average_assigned calculates the average of the assigned binary values of a, b, and c. This average value represents the overall strength of the price movement.ma_assigned calculates the 14-day moving average of average_assigned, which smoothens the indicator and helps traders identify trends more easily.
The code plots the 14-day moving average (ma_assigned) on the chart as a blue line. It also plots the individual assigned values of a, b, and c as dots on the chart. a_assigned is shown in green, b_assigned in red, and c_assigned in black. These dots indicate the presence of upward or downward movements in the respective price components. By visualizing these dots on the chart, the trader can quickly identify the presence and direction of price movements for each of the price components. This information can be valuable for understanding how the different price elements (high, low, and close) are contributing to the overall trend and strength of the market. Traders can use this data to make more informed decisions, such as confirming the presence of trends, identifying potential reversals, or gauging the overall market sentiment based on the distribution of upward and downward movements across the price components.
Finally, the code draws horizontal dotted lines at levels 0.70 (0.8)and 0.30 (0.2). These levels are typically used to identify overbought (above 0.70 or 0.8) and oversold (below 0.30 or 0.2) conditions in the market.
The Qualitative Smoothed Strength Index (QSSI) provides traders with information about the strength and direction of price movements. By using assigned binary values, the indicator simplifies the interpretation of price data, making it easier to identify trends and potential reversals.
Trend Correlation Oscillator [SS]Hello,
Publishing this simple indicator.
What is it?
The Trend Correlation Oscillator takes the concept of my autocorrelation oscillator but applies it simply to time instead of autocorrelation.
It performs a correlation assessment to time. The theory behind it is the stronger the correlation, the more "exhausted" the trend and the more likely the trend will reverse. It is kind of building off of random walk theory in which the market should be random and efficient.
Does it work?
If you follow me on my indicator side, you will know that my indicators are all based on my own research and findings and stuff that I personally find that works. All of this comes from years of losing money trying to use conventional systems and finally developing my own stuff that I find works well. This is such an invention. It does work extremely well but its best applied for day traders. If you want to use this as a swing trader, play around with the lookback length. I don't have general recommendations to swing traders wanting to use this because this isn't an indicator I personally would use for swing trading (I would use the autocorrelation oscillator for that).
How to use it:
The default setting is to a 14 candle lookback. This works the best. It also should really be used on the 5 minute chart and not the 1 minute chart, as from my experience this works much better.
When a trend is approaching "exhaustion" to the upside, the indicator will turn red to let you know we are approaching a trend exhaustion. Once the exhaustion is at its peak and beginning to reverse, the indicator will place a cross symbol on where your entry should be. See the image below for an example:
It also works well if you combine it with my PTCR Correlation Indicator:
Closing thoughts
That is basically the indicator. Its one of my more simple ones, but many times simple is better and most effective!
Hopefully you find it helpful.
As always let me know your questions, comments and feedback/recommendations for improvements below.
Please know I do read and make note of all recommendations for indicators and improvements, however as it is just me managing them, it takes time for implementation and review :-).
Safe trades!
P/VF BollThis code draws a custom indicator named "P/VF Boll" on the price chart with the following visual elements:
1. **Basis Line (Blue)**: This line represents the moving average value (ma_value) calculated based on the user-selected moving average type (SMA, EMA, or WMA) and length.
2. **Upper Bands (Green)**: The upper bands are calculated by adding a certain multiple of the standard deviation (dev1 to dev12) to the basis line. These bands represent a certain level of price volatility above the moving average.
3. **Lower Bands (Red)**: The lower bands are calculated by subtracting a certain multiple of the standard deviation (dev1 to dev12) from the basis line. These bands represent a certain level of price volatility below the moving average.
4. **Histogram (White and Gray)**: A histogram is drawn only when the average_price_change values are outside the 3rd standard deviation (dev3) and beyond. The histogram color alternates between white and gray, indicating higher price volatility.
The user can customize the following parameters:
- Average Length: The length of the moving average.
- Moving Average Type: The type of moving average to be used (SMA, EMA, or WMA).
- Timeframe: The timeframe used to calculate volume data.
- Deviation 1 to Deviation 12: Multipliers for calculating the upper and lower bands.
The purpose of this indicator is to visually represent the relationship between price volatility, volume, and the moving average, allowing traders to assess potential price breakouts or reversals when the price moves beyond certain levels of standard deviations from the moving average.
RSI-Volume Oscillator Quick Scalping By Akhilesh PatelTitle: RSI-Volume Oscillator Quick Scalping Indicator
Description:
The "RSI-Volume Oscillator Quick Scalping" is a powerful and versatile custom indicator designed for traders who engage in scalping strategies. This indicator combines the Relative Strength Index (RSI) with a Volume Oscillator to provide valuable insights into momentum and volume dynamics in the market. Traders can also select their preferred moving average types (SMA, EMA, or HMA) to further customize the indicator's behavior.
Key Features:
RSI and Volume Oscillator Fusion: The indicator blends the RSI and a custom Volume Oscillator to offer a comprehensive view of both price momentum and volume trends. This integration provides valuable signals for quick scalping opportunities.
Customizable Moving Averages: Traders can choose from three popular moving average types (SMA, EMA, or HMA) for further customization. This flexibility allows users to align the indicator with their preferred trading strategies.
Clear Visualization: The Combined RSI-Volume Oscillator is plotted as a solid blue line, while the three selected moving averages are represented by orange, purple, and green lines, respectively. The zero line, overbought, and oversold levels for RSI are also indicated for easy reference.
Quick Scalping Signals: The indicator helps traders spot potential buy and sell signals efficiently, making it ideal for quick scalping strategies in rapidly moving markets.
Usage Instructions:
Customize the indicator by selecting your preferred RSI length, Volume Oscillator length, and moving average type (SMA, EMA, or HMA).
Observe the Combined RSI-Volume Oscillator and moving averages for potential entry and exit points.
Look for crossovers between the Combined RSI-Volume Oscillator and the selected moving averages for buy and sell signals.
The overbought (70) and oversold (30) levels for RSI can be used to identify potential reversal points.
Important Note:
Test the indicator on historical data and demo accounts before using it in live trading to ensure it aligns with your trading strategy.
Understand that no indicator guarantees profits, and trading involves risk. Always use proper risk management and discipline when executing trades.
Overall, the "RSI-Volume Oscillator Quick Scalping" indicator is a valuable addition to any scalper's toolkit, providing comprehensive insights into momentum and volume dynamics to enhance trading decisions. Happy scalping!
AlexD Intraday market footprintThe indicator shows probability of a moving average non reversal at certain moment of day.
IMF_Predict line shows the probability of a reversal for the specified period.
moving average - period/2 shifted sma of typical price ( (close+high+low)/3 ).
Parameters:
Number of days - previous days to calculate the probability
SMA filter period - chart smoothing period
IMF smooth period - additional indicator smoothing after calculation
IMF predict period - period for calculating the probability of a reversal in the next N bars
Skip N hours in days(optimisation) - I recommend a half of the normal session time. Low values - long calculation time, High values - skipping days.
Anit Momentum IndicatorAnit Momentum Indicator: A Powerful Trend Continuation Tool for Long-Only Strategies
The "Anit Momentum Indicator" (AMI) is a powerful technical analysis tool designed to assist traders in identifying potential trend continuation opportunities in the financial markets. Unlike traditional trend reversal indicators, AMI is specifically crafted for long-only strategies, making it an ideal tool for traders seeking to capture sustained uptrends.
Concepts and Functionality:
1. Momentum Calculation:
The Anit Momentum Indicator begins by calculating the momentum of the closing price over a specified period. Momentum represents the rate of price change, offering clues about the strength and direction of price movements during the chosen duration.
2. RSI for Trend Continuation:
The script then applies the RSI to the previously computed momentum values. The RSI is a well-known oscillator used to measure the speed and magnitude of price changes. By utilizing the RSI on momentum data, the Anit Momentum Indicator gains a distinct advantage in gauging the strength of price momentum, leading to more accurate trend evaluations.
3. Rescaling for Better Visualization:
To enhance visual clarity and maintain consistent representation, the RSI on Momentum is rescaled to range from 0 to 100. This normalization ensures that the indicator's values remain within a fixed range, making it easier for traders to identify crucial overbought and oversold regions.
How to Use the Indicator:
Long-Only Strategy:
The AMI is most effective in long-only strategies. Traders can deploy the indicator to identify promising opportunities to go long on a stock or asset. A long position is established when the AMI crosses above 50, signaling a robust upward momentum.
Trend Continuation Confirmation:
The AMI's ability to capture trend continuation opportunities allows traders to stay invested in an uptrend for an extended period. As long as the AMI remains above 50, the uptrend is considered intact, and traders may continue to hold the position.
Higher Timeframe Advantage:
The AMI's effectiveness is further enhanced on higher timeframes. Longer timeframes provide a more reliable and sustained view of the underlying trend, giving traders greater confidence in their long-only strategies.
Conclusion:
The Anit Momentum Indicator is a valuable tool for traders pursuing trend continuation strategies, specifically long-only approaches. By leveraging the concept of momentum and RSI, the AMI helps traders identify and participate in sustained uptrends. With its focus on trend continuation rather than reversals, the AMI can be a key component in building successful long-only trading strategies, especially on higher timeframes. Traders can use this indicator to stay invested in robust uptrends, maximizing their profit potential while minimizing exposure to counter-trend moves by staying long till AMI value is greater than 50,it is better to stay away or exit from the asst class when AMI value is less than 50.
Normalized Close IndicatorThe central aspect of this indicator is the computation of a normalized close price. The normalized close price is computed by first determining the highest and lowest closing prices over a specified historical period. This highest and lowest value form the boundaries of the historical price range.
Once these bounds are established, the current closing price's position within this range is calculated. This is done by subtracting the lowest close from the current close and dividing the result by the range (the highest close minus the lowest close). This yields a value between 0 and 1, which is then multiplied by 100 to provide a percentage. This is not calculating percentile rank, but often it overlaps.
This percentage represents where the current close price stands relative to the historical price range. If the value is near 0, it indicates that the current close price is near the historical low, potentially signaling an oversold condition. Conversely, if the value is near 100, it suggests that the current close price is near the historical high, possibly indicating an overbought condition.
By using this approach, the indicator helps identify points at which the price may be considered relatively high (overbought) or low (oversold) compared to its recent historical range.
Additionally alerts are to switch from long to short and vice versa, for the most part, my strategy that incorporates this indicator is either long or short, sometimes though, the opposite bounds (high level for longs and low level for shorts) are not reached, then stop loss and take profit levels are needed.
I discovered it works fine on markets that spend most of time in a range like BTC/USD, adjustment needs to be done in user inputs and in Pine Script (length) for different exchanges, in current configuration works fine for me on Deribit Perpetuals (BTCUSD.P and ETHUSD.P), on 5 minute and 3 minute timeframes with a stop loss of 1.5% and take profit of 4.5% for BTCUSD.P and 1.7% and 5.1% for ETHUSD.P.
Price Acceleration Indicator (PAI)I have designed a "Price Acceleration" Indicator (PAI). It tracks the second derivative in price movements. This is different from ROC as that one measures Price Velocity rather than Acceleration. This Indicator should give you an idea of when the steam has come out of a move, or when one is getting started. For example, if RSI is reaching overbought, and PAI is Negative, that means the move is slowing down and likely to give in to the opposite direction soon.
3-Signal Directional Trend Strategy for E-MinisThis is a conceptual strategy intended for E-mini S&P 500 futures with hourly bars.
It uses three signals, going long or short when two or more change in the same direction.
First is MACD. A positive oscillator is considered a bullish signal and a falling oscillator is interpreted bearishly.
Next, stochastics are used as an overbought/oversold indicator. Overbought conditions are considered bearish and oversold readings are viewed as bullish.
Third is a custom indicator based on our Moving Average Speed script. It takes the rate of change of the 50-hour simple moving average (SMA), and then smooths it using a 10-period average. This provides a directional signal.
Traders may want to experiment with different settings for moving average speed.
Note: This is intended for use with stock index futures, which have round-the clock price data to populate the data in the indicators. It may not yield good results with stocks or ETFs.
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Buyers & Sellers / RangeBuyers & Sellers / Range
Volatility oscillator that measures the relationship of Buying & Selling Pressure to True Range.
In other words, how much % Buyers and Sellers separately occupy the Bar
BSP is a part of Bar Range. Entire bar metrics will always have bigger value than its composite elements (body and wicks).
Since there will be NO chance of BP or SP being more than ATR, their ratio would serve crucial Volatility details.
Hence, we can relate each of them to the overall range.
As a result we have simultaneous measurements of proportions buyers and sellers to the bar.
Default mode shows BP/ATR and SP/ATR mirrored. When one rises, the other falls to compensate.
Buying Pressure / True Range ⬆️🟢 ⬇️🔵
Selling Pressure / True Range ⬆️🔴 ⬇️🟠
They are being averaged in 2 different ways:
Pre-average first, then relate as ratio
Related first, then Averaged
Enable "Preaveraged" to use already averaged BSP and Ranges in ratio instead of averaging the ratio of BSP to individual bar. For example, we're looking BP/ATR, in calculation of buyers / Range it will use "MA(Buying Pressure) / MA(True Range)" instead of "MA(Buying Pressure / True Range)".
Due such calculation, it is going to be more lagging than in off mode. Nevertheless, it reduces noise from the impact of individual bar change.
Second way of noise reduction is enabling "Body / Range"
BSP Body / Range where Bullish & Bearish Body = Buying & Selling Pressure - Relevant Wick
Buying Body = Buying Pressure - Lower Wick
Selling Body = Selling Pressure - Upper Wick
And only then it is divided to ATR.
Note that Balance line differs because body is less than it used to be with wicks. So change in wicks won't play any role in computing the ratio anymore. Thus, signals of their crossings will be more reliable than in default mode.
Pseudo-Entropy Oscillator with Standard Deviation (modified)Intuition: The Pseudo-Entropy Oscillator with Standard Deviation (PEO_SD) was created to provide traders with a way to analyze market momentum and potential reversals. It combines the concepts of entropy, standard deviation, and moving averages to offer insights into market behavior.The oscillator's core idea is to measure the pseudo-entropy of the market using standard deviation. Pseudo-entropy refers to the degree of disorder or randomness in the price data. By calculating the standard deviation of the closing prices over a specified period, the oscillator quantifies the market's volatility.To enhance the usefulness of the pseudo-entropy measurement, the oscillator incorporates moving averages. The entropy delta is calculated by applying momentum analysis to the pseudo-entropy values. This helps identify short-term changes in the entropy, indicating shifts in market sentiment or momentum.The oscillator further smoothes the pseudo-entropy values by calculating the simple moving average (SMA) over a specified length. This helps filter out noise and provides a clearer representation of the market's overall momentum.
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The "Pseudo-Entropy Oscillator with Standard Deviation" (PEO_SD) is a custom indicator designed to help traders analyze market momentum and potential reversal points. It can be applied to various markets like stocks, commodities, forex, or cryptocurrencies. By using this indicator, you can gain insights into the market's behavior and make more informed trading decisions.
The PEO_SD indicator plots three lines on your chart: the fast pseudo-entropy line, the medium pseudo-entropy line, and the slow pseudo-entropy line. Each line represents the combined pseudo-entropy values, which are calculated using standard deviation and moving averages.
The lines are color-coded for easy identification. The fast line is represented by blue, the medium line by yellow, and the slow line by red. Additionally, three horizontal reference lines are plotted: the mid line (at 50), the lower bound (at 20), and the upper bound (at 80).
To use this indicator effectively, you can observe the interactions of the lines with the reference lines. For example, when any of the lines cross above the mid line, it might indicate a bullish signal, suggesting an upward price movement. Conversely, a crossover below the mid line could be a bearish signal, indicating a potential downward price movement. If the lines reach the upper bound, it might suggest that the market is overbought, and a reversal could be imminent. Conversely, reaching the lower bound may indicate that the market is oversold, possibly leading to a price reversal.
By applying the PEO_SD indicator and studying the lines' movements, you can gain valuable insights into market momentum, identify potential reversal points, and make more informed trading decisions.
Top - Bottom Using MAThis script is used decide weather stock is overbought or oversold in given length/days from the settings.
using close difference from ohlc4 moving average ratio.
Settings Available
1) moving average length
2) Highest / Lowest ratio length
3) Difference Between Highest and Lowest Line
this script plot/display 4 lines
1) highest difference from moving averages in provided length.
2) lowest difference from moving averages in provided length.
3) ratio of moving average and ohlc4
4) linear regression moving averages of ratio of moving average and ohlc4
How to use this script
1) when ratio line is touch 2 days to highest ratio line means we are consider stock is in overbought levels or linear regression moving average above highest ratio line means overbought.
2) when ratio lines cross below its linear regression moving average then we consider final exit or book profit.
3) when linear regression moving average below lowest ratio line means stock is in oversold.
4) when linear regression moving average below lowest ratio line and linear regression line start rising after fall it means there is change in trend.
5) when linear regression moving average cross above lowest ratio line it means trend is changed and linear regression line turns green.
MACD Fake Filter [RH]Introducing a new indicator for the TradingView community based on the MACD indicator! This innovative tool goes beyond traditional MACD signals by analyzing positive and negative waves to determine the average height of the waves to filter false cross-over or cross-under signals during the sideways market.
There are two types of waves created by the MACD line, one is a positive wave above the "zero" line and another is a negative wave below "zero" line. Each wave has peaks. This indicator will find the average height of the positive waves' peaks and plot as a green line(by default). Vice-versa it will also find the average height of the negative waves' peaks and plot as a red line(by default).
Example :
This indicator will show labels when the MACD line crosses-under the MACD signal line above the average height of the positive waves.
Vice-versa, the indicator will show labels when the MACD line crosses-above the MACD signal line below the average height of the negative waves.
Example:
Alerts are also available for these types of cross-over and cross-under.
ARSIXARSIX
I have written this indicator after two years of continuous experience in writing and backtesting for several different indicators, and I believe that this indicator with its high capabilities can show you the best point of entry into the market as well as exit from it. arsix should work with any time frame and any instrument used.
This indicator has many points to understand so that you can make the best possible use of it, in the following I will try to bring you some of the most important points:
First, we will have an introduction of the different parts of the indicator:
The above line is a relatively simple but very useful formula to determine the momentum of chart. To understand the exact formula, you can refer to the source of the program itself, and its two colors are used to determine the direction of movement.
At the bottom, we have three opposing elements.
The first is the RSI14 line with dark blue color, the second is the RMA or Relative Momentum Index(RMI20) line with the number 20 for Momentum , which will significantly help us understand the overall momentum of the chart, this part is also made in two colors to increase or It will show the decline of the overall momentum of the chart.
And finally, we have a bar chart that is again created in two colors, and this histogram also calculates the momentum chart with a different formula.
And now let's talk about how to interpret these tools and how to use them for Trading:
At first, you may have the question that all these different indicators are not excessive to determine the momentum chart and are all of them necessary? In response, I must say that yes, each of these parts has been selected and made with great care and with my previous experience, the full explanation of each of these parts is beyond the scope of this article, and I will try to explain it in short words. I will give you a general understanding of each one of them and the rest is up to you to find out their capabilities by working more with these tools.
The main thing is to know that none of these tools alone will bring you success and it is their teamwork together that will help you achieve success.
For the sake of simplicity, I will tell you when to open a buy position with this indicator And you can then use this definition of the main thread to interpret the rest of the capabilities of this indicator.
To open a buy position, first the upper indicator should turn light blue, at the same time, the RMI indicator should also turn light blue, and you should also see that this RMI indicator shows the momentum of the overall chart in order to increase. in this case you will be almost sure that the general trend of the chart is towards the rise of the price. In the next step, to determine the exact point of the Entry, you have to wait until the RSI indicator passes the number 50 in this state and at the same time, make sure that the histogram also turns green and shows the increasing direction of momentum in the market, when the RSI is in This state crossed the number 50, you can enter the buy position, it should be noted that due to a series of restrictions, I have moved the RSI indicator down by 50 numbers, so as a result, the number 50 for RSI here is equivalent to The same number zero.
This was an example of how to work with this indicator, I hope that it helped you to understand how to use this indicator. In the end, I would like to point out again that the main topic is understanding the group and mutual behavior of each of the indicators' tools together. For example, if the RSI indicator crosses the number 50 here, but the histogram does not grow or shows a small growth, this indicates that the movement will be low, or for another example, if the RSI indicator cross over From the RMI indicator, This means that the market is very high, and as a result, it is a great opportunity to hold a buy position. In the same way, other parts of this indicator can also be interpreted in opposition to each other.
I hope this indicator will help you in better trades. I look forward to your constructive comments. Thanks Hamid Moradi.
Advanced Volatility-Adjusted Momentum IndexAdvanced Volatility-Adjusted Momentum Index (AVAMI)
The AVAMI is a powerful and versatile trading index which enhances the traditional momentum readings by introducing a volatility adjustment. This results in a more nuanced interpretation of market momentum, considering not only the rate of price changes but also the inherent volatility of the asset.
Settings and Parameters:
Momentum Length: This parameter sets the number of periods used to calculate the momentum, which is essentially the rate of change of the asset's price. A shorter length value means the momentum calculation will be more sensitive to recent price changes. Conversely, a longer length will yield a smoother and more stabilized momentum value, thereby reducing the impact of short-term price fluctuations.
Volatility Length: This parameter is responsible for determining the number of periods to be considered in the calculation of standard deviation of returns, which acts as the volatility measure. A shorter length will result in a more reactive volatility measure, while a longer length will produce a more stable, but less sensitive measure of volatility.
Smoothing Length: This parameter sets the number of periods used to apply a moving average smoothing to the AVAMI and its signal line. The purpose of this is to minimize the impact of volatile periods and to make the indicator's lines smoother and easier to interpret.
Lookback Period for Scaling: This is the number of periods used when rescaling the AVAMI values. The rescaling process is necessary to ensure that the AVAMI values remain within a consistent and interpretable range over time.
Overbought and Oversold Levels: These levels are thresholds at which the asset is considered overbought (potentially overvalued) or oversold (potentially undervalued), respectively. For instance, if the AVAMI exceeds the overbought level, traders may consider it as a possible selling opportunity, anticipating a price correction. Conversely, if the AVAMI falls below the oversold level, it could be seen as a buying opportunity, with the expectation of a price bounce.
Mid Level: This level represents the middle ground between the overbought and oversold levels. Crossing the mid-level line from below can be perceived as an increasing bullish momentum, and vice versa.
Show Divergences and Hidden Divergences: These checkboxes give traders the option to display regular and hidden divergences between the AVAMI and the asset's price. Divergences are crucial market structures that often signal potential price reversals.
Index Logic:
The AVAMI index begins with the calculation of a simple rate of change momentum indicator. This raw momentum is then adjusted by the standard deviation of log returns, which acts as a measure of market volatility. This adjustment process ensures that the resulting momentum index encapsulates not only the speed of price changes but also the market's volatility context.
The raw AVAMI is then smoothed using a moving average, and a signal line is generated as an exponential moving average (EMA) of this smoothed AVAMI. This signal line serves as a trigger for potential trading signals when crossed by the AVAMI.
The script also includes an algorithm to identify 'fractals', which are distinct price patterns that often act as potential market reversal points. These fractals are utilized to spot both regular and hidden divergences between the asset's price and the AVAMI.
Application and Strategy Concepts:
The AVAMI is a versatile tool that can be integrated into various trading strategies. Traders can utilize the overbought and oversold levels to identify potential reversal points. The AVAMI crossing the mid-level line can signify a change in market momentum. Additionally, the identification of regular and hidden divergences can serve as potential trading signals:
Regular Divergence: This happens when the asset's price records a new high/low, but the AVAMI fails to follow suit, suggesting a possible trend reversal. For instance, if the asset's price forms a higher high but the AVAMI forms a lower high, it's a regular bearish divergence, indicating potential price downturn.
Hidden Divergence: This is observed when the price forms a lower high/higher low, but the AVAMI forms a higher high/lower low, suggesting the continuation of the prevailing trend. For example, if the price forms a lower low during a downtrend, but the AVAMI forms a higher low, it's a hidden bullish divergence, signaling the potential continuation of the downtrend.
As with any trading tool, the AVAMI should not be used in isolation but in conjunction with other technical analysis tools and within the context of a well-defined trading plan.
Volume Price Trend (VPT)
The Volume Price Trend (VPT) is a technical analysis indicator that combines price and volume data. It's used to identify the direction of a trend or to confirm the strength of a trend. The indicator was developed on the premise that volume often precedes price.
Working of VPT:
VPT is calculated by adding or subtracting a multiple of the percentage change in the share price trend and current volume, depending upon the direction of the share price. The starting point of the VPT line is arbitrary.
The formula for calculating VPT is:
VPT = Previous VPT + Volume x (Today's Close - Previous Close)
This formula adds the total volume traded on the days the price went up, and subtracts the total volume on the days the price went down.
For each period:
If the closing price is higher than the previous closing price, the volume for that period is added to the previous VPT.
If the closing price is lower than the previous closing price, the volume for that period is subtracted from the previous VPT.
If the closing price is the same as the previous closing price, the volume for that period does not affect the VPT (i.e., it remains the same as the previous VPT).
Usage and Interpretation of VPT:
The primary use of the VPT is to help confirm the condition of prices. It’s usually used in combination with other technical analysis indicators. Here are some ways traders use the VPT:
Trend Confirmation: A rising VPT line typically confirms an uptrend as it shows that volume is increasing as prices increase. Conversely, a falling VPT line confirms a downtrend.
Divergences: Traders often look for divergences between the VPT and price movements as a sign of upcoming reversals. If prices are rising and the VPT is falling, it suggests that the upward trend may not sustain because it isn't being supported by volume. Similarly, if prices are falling and the VPT is rising, it suggests the downward trend may reverse soon.
Change in Trend: A sudden sharp increase in the VPT could signal a possible change in trend. This is based on the belief that volume changes before price.
In the script provided, the VPT is calculated and then rescaled to a 0-100 scale, which makes it easier to compare across different stocks or time periods. This script also colors the VPT line based on whether it's increasing or decreasing. The color is green when VPT is increasing, and red when it's decreasing.
Enjoy!
kyle algo v1
Integration of multiple technical indicators: The strategy mainly combines two technical indicators - Keltner Channels and Supertrend, to generate trading signals. It also calculates fifteen exponential moving averages (EMAs) for the high price with different periods ranging from 9 to 51.
Unique combination of indicators: The traditional Supertrend typically uses Average True Range (ATR) to calculate its upper and lower bands. In contrast, this script modifies the approach to use Keltner Channels instead.
Flexible sensitivity adjustment: This strategy provides a "sensitivity" input parameter for users to adjust, which controls the multiplier for the range in the Supertrend calculation. This can make the signals more or less sensitive to price changes, allowing users to tailor the strategy to their own risk tolerance and trading style.
EMA Energy Representation: The code offers a visualization of "EMA Energy", which color-codes the EMA lines based on whether the closing price is above or below the EMA line. This can provide an intuitive understanding of market trends.
Clear visual signals: The strategy generates clear "BUY" and "SELL" signals, represented as labels on the chart. This makes it easy to identify potential entry and exit points in the market.
Customizable: The script provides several user inputs, making it possible to fine-tune the strategy according to different market conditions and individual trading preferences.
EMA (Exponential Moving Average) Principle:
The EMA is a type of moving average that assigns more weight to the most recent data.
It responds more quickly to recent price changes and is used to capture short-term price trends.
Principle of Color Change :
In this trading strategy, the color of the EMA line changes based on whether the closing price is above or below the EMA. If the closing price is above the EMA, the EMA line turns green,
indicating an upward price trend. Conversely, if the closing price is below the EMA, the EMA line turns red,
indicating a downward price trend. These color changes help traders to more intuitively identify price trends
In short, our team provides a lot of practical space
That is your development space
