Modern Trend IdentifierThis is an update by Lightangel112 to Trendilo (Open-Source).
Thanks @ Lightangel112
The Modern Trend Identifier (MTI) is a sophisticated technical analysis tool designed for traders and analysts seeking to accurately determine market trends. This indicator leverages the Arnaud Legoux Moving Average (ALMA) to smooth price data and calculate percentage changes, providing a clearer and more responsive trend analysis. MTI is engineered to highlight trend direction with visual cues, fill areas between the indicator and its bands, and color bars based on trend direction, making it a powerful tool for identifying market momentum and potential reversals.
Capabilities
Smoothing and Trend Calculation:
Utilizes ALMA to smooth price data, reducing noise and providing a clearer view of the trend.
Calculates percentage changes in price over a user-defined lookback period.
Dynamic Range Adjustment:
Normalizes the ALMA percentage change values to ensure they stay within a -100 to 100 range.
Uses a combination of linear and smoothstep compression to handle extreme values without losing sensitivity.
Trend Direction and Highlighting:
Determines the trend direction based on the relationship between the smoothed ALMA percentage change and dynamically adjusted RMS (Root Mean Square) bands.
Colors the trend line to visually indicate whether the market is in an uptrend, downtrend, or neutral state.
Dynamic Threshold Calculation:
Calculates dynamic thresholds using percentile ranks to adapt to changing market conditions.
Visualization Enhancements:
Fills areas between the ALMA percentage change line and its RMS bands to provide a clear visual indication of the trend strength.
Offers the option to color price bars based on the identified trend direction.
Customizable Settings:
Provides extensive customization options for lookback periods, smoothing parameters, ALMA settings, band multipliers, and more.
Allows users to enable or disable various visual enhancements and customize their appearance.
Use Cases
Trend Identification:
MTI helps traders identify the current market trend, whether it's bullish, bearish, or neutral. This can be particularly useful for trend-following strategies.
Momentum Analysis:
By highlighting areas of strong momentum, MTI enables traders to spot potential breakouts or breakdowns. This can be useful for both entry and exit decisions.
Support and Resistance Levels:
The dynamic threshold bands can act as support and resistance levels. Traders can use these levels to set stop-loss and take-profit orders.
Divergence Detection:
MTI can help in identifying divergences between price and the indicator, which can signal potential trend reversals. This is useful for traders looking to capitalize on trend changes.
Risk Management:
The fill areas and colored bars provide clear visual cues about trend strength and direction, aiding in better risk management. Traders can adjust their positions based on the strength of the trend.
Backtesting:
The extensive customization options allow traders to backtest different settings and parameters to optimize their trading strategies for various market conditions.
Multiple Timeframes:
MTI can be applied to multiple timeframes, from intraday charts to daily, weekly, or monthly charts, making it a versatile tool for traders with different trading styles.
Example Scenarios
Day Trading:
A day trader can use MTI on a 5-minute chart to identify intraday trends. By adjusting the lookback period and smoothing parameters, the trader can quickly spot potential entry and exit points based on short-term momentum changes.
Swing Trading:
A swing trader might apply MTI to a 4-hour chart to identify medium-term trends. The dynamic thresholds can help in setting appropriate stop-loss levels, while the trend direction highlighting aids in making informed decisions about holding or exiting positions.
Position Trading:
For a position trader using a daily chart, MTI can help identify the overarching trend. The trader can use the fill areas and bar coloring to assess the strength of the trend and make decisions about entering or exiting long-term positions.
Market Analysis:
An analyst could use MTI to study historical price movements and identify patterns. By examining how the indicator reacted to past market conditions, the analyst can gain insights into potential future price movements.
In summary, the Modern Trend Identifier (MTI) is a versatile and powerful tool that enhances trend analysis with advanced smoothing techniques, dynamic adjustments, and comprehensive visual cues. It is designed to meet the needs of traders and analysts across various trading styles and timeframes, providing clear and actionable insights into market trends and momentum.
Updated with the following:
Additions and Enhancements in MTI
Grouped Inputs with Descriptive Tooltips:
Inputs are organized into groups for better clarity.
Each input parameter includes a descriptive tooltip.
Dynamic Threshold Calculation:
Added dynamic threshold calculation using percentile ranks to adapt to changing market conditions.
Normalization and Compression:
Added normalization factor to ensure plots are within -100 to 100 range.
Introduced smoothstep function for smooth transition and selectively applied linear and smoothstep compression to values outside -80 to 100 range.
Enhanced Visualization:
Highlighted trend direction with RGB colors.
Enhanced fill areas between the ALMA percentage change line and its RMS bands.
Colored price bars based on the identified trend direction.
RMS Lines Adjustment:
Dynamically adjusted RMS calculation without strict capping.
Ensured RMS lines stay below fill areas to maintain clarity.
Descriptive and Organized Code:
Enhanced code clarity with detailed comments.
Organized code into logical sections for better readability and maintenance.
Key Differences and Improvements.
Input Customization:
Trendilo: Inputs are simple and ungrouped.
MTI: Inputs are grouped and include tooltips for better user guidance.
Trend Calculation:
Trendilo: Uses ALMA and calculates percentage change.
MTI: Enhanced with normalization, compression, and dynamic threshold calculation.
Normalization and Compression:
Trendilo: No normalization or compression applied.
MTI: Normalizes values to -100 to 100 range and applies smoothstep compression to handle extreme values.
Dynamic RMS Adjustment:
Trendilo: Simple RMS calculation.
MTI: Dynamically adjusted RMS calculation to ensure clarity in visualization.
Visual Enhancements:
Trendilo: Basic trend highlighting and filling.
MTI: Enhanced visual cues with RGB colors, dynamic threshold bands, and improved fill areas.
Code Clarity:
Trendilo: Functional but lacks detailed comments and organization.
MTI: Well-organized, extensively commented code for better readability and maintainability.
Multitimeframe
CPR By Ask Dinesh Kumar(ADK)Simple CPR Indicator to increase probability of profitable trades:
The Central Pivot Range (CPR) is a trading tool used by traders to identify potential support and resistance levels in the market. Here's a simplified explanation of how traders can potentially profit using the Central Pivot Range with 10 lines:
1. *Understanding CPR*: CPR consists of three lines: the pivot point (PP), upper resistance level (R1), and lower support level (S1). Additionally, traders often add five more of profitable tradeslines above and below the PP to create a 10-line CPR.
2. *Identify Trend*: Determine the prevailing market trend. If the market is bullish, traders will look for buying opportunities near support levels. If the market is bearish, they'll seek selling opportunities near resistance levels.
3. *Entry Points*: Look for entry points near the support (S1) or resistance (R1) levels within the CPR. These levels can act as potential turning points where price may reverse.
4. *Risk Management*: Set stop-loss orders to manage risk. Stop-loss orders should be placed slightly below support levels for long positions and slightly above resistance levels for short positions.
5. *Profit Targets*: Determine profit targets based on the distance between entry point and the next support or resistance level. Some traders use a risk-reward ratio to ensure potential profits outweigh potential losses.
6. *Confirmation*: Use additional technical indicators or price action patterns to confirm potential entry or exit points within the CPR.
7. *Monitor Price Action*: Continuously monitor price action around the CPR levels. Traders should be prepared to adjust their positions if price breaks through support or resistance levels convincingly.
8. *Trade Management*: Once in a trade, actively manage it by adjusting stop-loss orders, trailing stops, or taking partial profits as price moves in the desired direction.
9. *Market Conditions*: Consider broader market conditions, such as economic indicators, geopolitical events, or news releases, which can impact price movements and the effectiveness of CPR.
10. *Practice and Analysis*: Practice using CPR on historical price charts and analyze past trades to refine strategies and improve decision-making skills.
Remember, trading involves risks, and no strategy guarantees profits. It's essential to thoroughly understand the concepts behind CPR and practice disciplined risk management to increase the likelihood of successful trades.
How does central pivot range work:
Sure here's a concise explanation of how the Central Pivot Range (CPR) works in 10 points:
1. *Calculation*: CPR is calculated using the previous day's high (H), low (L), and close (C) prices.
2. *Pivot Point (PP)*: The central point of CPR is the average of the previous day's high, low, and close prices: PP = (H + L + C) / 3.
3. *Upper Resistance Levels (R1, R2, R3)*: These are potential price levels above the pivot point where resistance may occur. They are calculated by adding a multiple of the range (H - L) to the pivot point: R1 = (2 * PP) - L, R2 = PP + (H - L), R3 = PP + 2 * (H - L).
4. *Lower Support Levels (S1, S2, S3)*: These are potential price levels below the pivot point where support may occur. They are calculated similarly to resistance levels but subtracting multiples of the range from the pivot point: S1 = (2 * PP) - H, S2 = PP - (H - L), S3 = PP - 2 * (H - L).
5. *Trading Signals*: Traders use CPR to identify potential support and resistance levels where price may reverse or stall.
6. *Range Bound Markets*: In range-bound markets, traders may buy near support levels (S1, S2, S3) and sell near resistance levels (R1, R2, R3).
7. *Breakout Trading*: When price breaks through a CPR level convincingly, it may indicate a potential trend continuation or reversal, providing breakout trading opportunities.
8. *Volume and Momentum*: Traders often look for confirmation from volume and momentum indicators when price approaches CPR levels.
9. *Intraday Trading*: CPR can be applied to intraday timeframes as well, providing shorter-term traders with potential trading levels for the day.
10. *Dynamic Indicator*: CPR is dynamic and recalculates daily based on new price data, allowing traders to adapt their strategies to current market conditions.
Understanding how to interpret CPR levels and integrate them into a trading strategy can help traders identify potential entry and exit points in the market.
Engulfing with Fibonacci LevelsIndicator Explanation
The indicator identifies bullish and bearish engulfing patterns and plots Fibonacci levels based on these patterns. Here's a detailed explanation of the script:
1. Bullish Engulfing Pattern
A bullish engulfing pattern is identified when:
- The previous candle is bearish (`close < open `).
- The current candle is bullish (`close > open`).
- The low of the current candle is lower than the low of the previous candle (`low < low `).
- The current candle's close is higher than the previous candle's open (`close > open `).
When a bullish engulfing pattern is identified:
- Fibonacci levels are plotted from the low (0%) to the high (100%) of the bullish candle.
- A green dot is plotted below the bullish candle to indicate a buy signal.
2. Bearish Engulfing Pattern
A bearish engulfing pattern is identified when:
- The previous candle is bullish (`close > open `).
- The current candle is bearish (`close < open`).
- The high of the current candle is higher than the high of the previous candle (`high > high `).
- The current candle's close is lower than the previous candle's open (`close < open `).
When a bearish engulfing pattern is identified:
- Fibonacci levels are plotted from the high (0%) to the low (100%) of the bearish candle.
- A red dot is plotted above the bearish candle to indicate a sell signal.
3. Plotting Fibonacci Levels
For both bullish and bearish patterns, Fibonacci levels are plotted at:
- 0% (high for bullish, low for bearish)
- 50%
- 61.8%
- 79%
- 100% (low for bullish, high for bearish)
Smart Money Concept (SMC) Explanation
Bearish Signal
In the context of Smart Money Concepts (SMC), a bearish engulfing pattern can indicate:
- **Buy Side Liquidity Grab**: The high of the current bearish candle goes above the high of the previous bullish candle, potentially grabbing buy-side liquidity (stop losses of short positions or buy stops).
- **Break of Structure (BoS)**: The close of the bearish candle below the open of the previous bullish candle indicates a shift in market structure.
After identifying this bearish engulfing pattern, a smart money trader might:
1. Wait for the market to retrace 50% of the bearish candle.
2. Enter a sell trade around the 50% retracement level, anticipating a continuation of the downward move.
#### Bullish Signal
Similarly, a bullish engulfing pattern can indicate:
- **Sell Side Liquidity Grab**: The low of the current bullish candle goes below the low of the previous bearish candle, potentially grabbing sell-side liquidity (stop losses of long positions or sell stops).
- **Break of Structure (BoS)**: The close of the bullish candle above the open of the previous bearish candle indicates a shift in market structure.
After identifying this bullish engulfing pattern, a smart money trader might:
1. Wait for the market to retrace 50% of the bullish candle.
2. Enter a buy trade around the 50% retracement level, anticipating a continuation of the upward move.
The indicator helps traders identify key engulfing patterns that align with smart money concepts of liquidity grabs and breaks of structure. By plotting Fibonacci levels, it visually aids traders in waiting for optimal retracement levels (50%) to enter trades in the direction of the anticipated move. This approach leverages the idea that significant market participants often seek liquidity and cause structural shifts, providing entry opportunities for informed traders.
[GYTS-Pro] Flux Composer🧬 Flux Composer (Professional Edition)
🌸 Confluence indicator in GoemonYae Trading System (GYTS) 🌸
The Flux Composer is a powerful tool in the GYTS suite that is designed to aggregate signals from multiple Signal Providers, apply advanced decaying functions, and offer customisable and advanced confluence mechanisms. This allows making informed decisions by considering the strength and agreement ("when all stars align") of various input signals.
🌸 --------- TABLE OF CONTENTS --------- 🌸
1️⃣ Main Highlights
2️⃣ Flux Composer’s Features
Multi Signal Provider support
Advanced decaying functions
Customisable Flux confluence mechanisms
Actionable trading experience
Filtering options
User-friendly experience
Upgrades compared to Community Edition
3️⃣ User Guide
Selecting Signal Providers
Connecting Signal Providers to the Flux Composer
Understanding the Flux
Tuning the decaying functions
Choosing Flux confluence mechanism
Choosing sensitivity
Utilising the filtering options
Interpreting the Flux for trading signals
4️⃣ Limitations
🌸 ------ 1️⃣ --- MAIN HIGHLIGHTS --- 1️⃣ ------ 🌸
- Signal aggregation : Combines signals from multiple different 📡 Signal Providers, each of which can be tuned and adjusted independently.
- Decaying function : Utilises advanced decaying functions to model the diminishing effect of signals over time, ensuring that recent signals have more weight. In addition to the decaying effect, the "quality" of the original signals (e.g. a "strong" GDM from WaveTrend 4D ) are accounted for as well.
- Flux confluence mechanism : The aggregation of all decaying functions form the "Flux", which is the core signal measurement of the Flux Composer. Multiple mechanisms are available for creating the Flux and effectively using it for actionable trading signals.
- Visualisation : Provides detailed visualisation options to help users understand and tune the contributions of individual Signal Providers and their decaying functions.
- Backtesting : The 🧬 Flux Composer is a core component of the TradingView suite of the 🌸 GoemonYae Trading System (GYTS) 🌸. It connects multiple 📡 Signal Providers, such as the WaveTrend 4D, and processes their signals to produce a unified "Flux". This Flux can then be used by the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
🌸 ------ 2️⃣ --- FLUX COMPOSER'S FEATURES --- 2️⃣ ------ 🌸
Let's delve into more details...
💮 1. Multi Signal Provider support
Using the name of the GYTS "🎼 Order Orchestrator" as an analogy: Imagine a symphony where each instrument plays its own unique part, contributing to the overall harmony. The Flux Composer operates similarly, integrating multiple Signal Providers to create a comprehensive and robust trading signal -- the "Flux". Currently, it supports up to four streams from the WaveTrend 4D's ’s Gradient Divergence Measure (GDM) and another four streams from the Quantile Median Cross (QMC). These can be either four "Professional Edition" Signal Providers or eight "Community Editions".
Note that the GDM includes 2 different continuous signals and the QMC 3 different continuous signals (from different frequencies). This means that the Community Edition can handle 2*2 + 2*3 = 10 different continuous signals and the Professional Edition as much as 20.
As GYTS evolves, more Signal Providers will be added; at the moment of releasing the Flux Composer, only WaveTrend 4D is publicly available.
💮 2. Advanced decaying functions
A trading signal can be relevant today, less relevant tomorrow, and irrelevant in a week's time. In other words, its relevance diminishes, or decays , over time. The Flux Composer utilises decaying functions that ensure that recent signals carry more weight, while older signals fade away. This is crucial for accurate signal processing. The intensity and decay settings allow for precise control, allowing emphasising certain signals based on their strength and relevance over time. On top of that, unlike binary signals ("buy now"), the Flux Composer utilises the actual values from the Signal Providers, differentiating between the exact quality of signals, and thus offering a detailed representation of the trading landscape. We will illustrate this in a further section.
💮 3. Customisable Flux confluence mechanisms
Another core component of the Flux Composer is the ability of intelligently combining the decaying functions. It offers four sophisticated confluence mechanisms: Amplitude Compression, Accentuated Amplitude Compression, Trigonometric, and GYTSynthesis. Each mechanism has its unique way of processing the Flux, tailored to different trading needs. For instance, the Amplitude Compression method scales the Flux based on recent values, much like the Stochastic Oscillator, while the Trigonometric method uses smooth functions to reduce outliers’ impact. The GYTSynthesis is a proprietary method, striking a balance between signal strength and discriminative power.
We'll discuss this in more detail in the User Guide section.
💮 4. Actionable trading experience
While the mathematical abilities might seem overwhelming, the goal of the Flux Composer is to transform complex signal data into actionable trading signals. When the Flux reaches certain thresholds, it generates clear bullish or bearish signals, making it easy for traders to interpret. The inclusion of upper and lower thresholds (UT and LT) helps in identifying strong signals visually and should be a familiar behaviour similar to how many other indicators operate. Furthermore, the Flux Composer can plot trading signals directly on the oscillator, showing triangle shapes for buy or sell signals. This visual aid is complemented by the possibility to setup TradingView alerts.
💮 5. Filtering options
The Professional Edition also offers filtering options to possibly further improve the quality of Flux signals. Signal streams can be divided into “Signal Flux” and “Filter Flux.” The Filter Flux acts as a gatekeeper, ensuring that only signals meeting the Filter's criteria (which consist of similar UT/LT thresholds) are considered for trading. This dual-layer approach enhances the reliability of trading signals, reducing the chances of false positives.
💮 6. User-friendly experience
GYTS is all about sophisticated, robust methods but also "elegance". One of the interpretations of the latter, is that the users' experience is very important. Despite the Flux Composer's mathematical underpinnings, it offers intuitive settings that with omprehensive tooltips to help with a smooth setup process. For those looking to fine-tune their signals, the Flux Composer allows the visualisation of individual decaying functions. This feature helps users understand the impact of each setting and make informed adjustments. Additionally, the background of the chart can be coloured to indicate the trading direction suggested by the Filter Flux, providing an at-a-glance overview of market conditions.
💮 7. Upgrades compared to Community Edition
Number of signal streams -- At the moment of writing, the Professional Edition works with 4x GDM and 4x QMC signal streams from WaveTrend 4D Signal Provider , while Community Edition (CE) Flux Composer (FC) only works with 2x GDM and 2x QMC signal streams.
Flux confluence mechanism -- CE includes the Amplitude Compression and Trigonometric confluence mechanisms, while the Pro Edition also includes the Accentuated Amplitude Compression and the GYTSynthesis mechanisms.
Signal streams as filters -- The Pro Edition can use Signal Providers as filters.
🌸 ------ 3️⃣ --- USER GUIDE --- 3️⃣ ------ 🌸
💮 1. Selecting Signal Providers
The Flux Composer’s foundation lies in its Signal Providers. When starting with the Flux Composer, using a single Signal Provider can already provide significant value due to the nature of decaying functions. For instance, the WaveTrend 4D signal provider includes up to 5 signal types (GDM and QMC in different frequencies) in a single direction (long/short). Moreover, the various confluence mechanisms that enhance the resulting Flux result in improved discrimination between weak and strong signals. This approach is akin to ensemble learning in machine learning, where multiple models are combined to improve predictive performance.
While using a single Signal Provider is beneficial, the true power of the Flux Composer is realised with multiple Signal Providers. Here are two general approaches to selecting Signal Providers:
Diverse Behaviours
Use Signal Providers with different behaviours, such as WaveTrend 4D on various assets/timeframes or entirely different Signal Providers. This approach leverages diversification to achieve robustness, rooted in the principle that varied sources enhance the overall signal quality. To explain this with an analogy, this strategy aligns with the theory of diversification in portfolio management, where combining uncorrelated assets reduces overall risk. Similarly, combining uncorrelated signals can mitigate the risk of signal failure. A practical example can be integrating a mean-reversion signal with a trend-following signal -- these can balance each other out, providing more stable outputs over different market conditions.
Enhancing a Single Provider
If you consider a particular Signal Provider highly effective, you could improve its robustness by using multiple instances with slight variations. These variations could include different sources (e.g., close, HL2, HLC3), data providers (same asset across different brokers/exchanges), or parameter adjustments. This method mirrors Monte Carlo simulations, often used in risk management and derivative pricing, which involve running many simulations with varied inputs to estimate the probability of different outcomes. By applying similar principles, the strategy becomes less susceptible to overfitting, ensuring the signals are not overly dependent on specific data conditions.
💮 2. Connecting Signal Providers to the Flux Composer
Moving on to practicalities: how do you connect Signal Providers with the Flux Composer? You may have noticed that when you open the drawdown of a data source in a TradingView indicator (with "open", "high", "low", etc.), you also see names from other indicators on your chart. We call these "streams", and the Signal Providers are designed such that they output this stream in a way that the Flux Composer can interpret it. Thus, to connect a Signal Provider with the Flux Composer, you should first have that Signal Provider on your chart. Obviously you should set it up an a way that it seems to provide good signals. After that, in the Data Stream dropdown in the Flux Composer, you can select the stream that is outputted by your Signal Provider. This will always be with a prefix of "🔗 STREAM" (after the Signal Provider's indicator name). See the chart below.
There is one important nuance: when you have multiple (similar) Signal Providers on your chart, it may be hard to select the correct data stream in the Flux Composer as the names of the streams keep repeating when you use identical indicators. So be sure to be attentive as you might end up using the same signals multiple times.
Also, the Signal Providers have an "Indicator name" parameter (and another parameter to repeat this name) that is handy to use when you have multiple Signal Providers on your screen. It is handy to give names that describe the unique settings of that Signal Provider so you can better differentiate what you are looking at on your screen.
💮 3. Understanding the Flux
Let's understand how the Signal Provider's signals are processed. In the chart below, you see we have one Signal Provider (WaveTrend 4D) connected to the Flux Composer and that it gives a bearish QMC signal. The Flux Composer converts this into a decaying function. You can show these functions per Signal Provider when the option "Show decaying function of Signal Provider" is enabled (as it is in the chart).
In our opinion, of crucial importance is the ability to process the quality of signals, rather than just any signal. In mathematical terms, we are interested in continuous signals as these provide a spectrum of values. These signals can reflect varying degrees of market sentiment or trend strength, offering richer information than binary signals, which offer only two states (e.g., buy/sell). Especially in the context of the Flux Composer, where you aggregate multiple signals, it makes a big difference whether you combine 10 weak signals or 10 strong signals. To illustrate this principle, look at the chart below where there are 4 signals of different strengths. As you can see, each of the signals affects the Flux with different intensities.
💮 4. Tuning the decaying functions
As previously mentioned, the decaying functions are a way to give more importance to recent signals while allowing older ones to fade away gradually. This mimics the natural way we assess information, giving more weight to recent events. The decaying functions in the Flux Composer are highly customisable while remaining easy to use. You can adjust the initial intensity , which sets the starting strength of a signal, and the decay rate, which determines how quickly this signal diminishes over time. Let's look at specific examples.
If we add 3 Flux Composers on the chart, connect the same Signal Provider, keep all settings the same with one exception, we get the chart below. Here we have changed the "intensity" parameter of the specific signal. As you can see, the decaying functions are different. The intensity determines the initial strength of the decayed function. Adjusting the intensity allows you to emphasise certain signal types based on their perceived reliability or importance.
Let's now keep the intensity the same ("normal"), but change the "decay" parameter. As you can see in the image below, the decay controls how quickly the signal’s strength diminishes over time. By adjusting the decay, you can model the longevity of the signal’s impact. A faster decay means the signal loses its influence quickly, while a slower decay means it remains relevant for a longer period.
So how do multiple signals interact? You can see this as a simple "stacking of decaying functions" (although there is more to it, see next section). In the chart below we different strenghts of signals and different decay rates to illustrate how the Flux is constructed.
Hopefully this helps with developing some intuition how signals are converted to decaying functions, how you can control them, and how the Flux is constructed. When tuning these parameters, use the visualisation options to see how individual decaying functions contribute to the overall Flux. This helps in understanding and refining the parameters to achieve the desired trading signal behaviour.
💮 5. Choosing Flux confluence mechanism
While we mentioned that the Flux is a "stacking of individual decaying functions", in the back-end, that is not exactly that simple. Like previously mentioned, for GYTS, "elegance" is very important. One of the interpretations is "user friendliness" and the Flux confluence mechanism is one of the essential developments for this characteristic. The Flux confluence mechanism is critical in synthesising the aggregated signals into the Flux. The choice of mechanism affects how the signals are combined and the resulting trading signals. The Professional Edition offers four distinct mechanisms, each with its strengths.
The Amplitude Compression mechanism is intuitive, scaling the Flux based on recent values, intuitively not unlike the method of the well-known Stochastic Oscillator. The Accentuated Amplitude Compression method takes this a step further, giving more weight to strong Flux values. The Trigonometric mechanism smooths the Flux and reduces the impact of outliers, providing a balanced approach. Finally, the GYTSynthesis mechanism, a proprietary approach, balances signal strength and discriminative power, making it easier to tune and generalise.
It's difficult to convey the workings of the Flux confluence mechanism in a chart, but let's take the opportunity to show how the Flux would look like when connecting both one WaveTrend 4D Signal Provider signals to four Flux Composers with default settings, except the Flux confluence mechanism:
You may notice subtle differences between the four methods. They react differently to different values and their overall shape is slightly be different. The Amplitude Compression is more "pointy" and GYTSynthesis doesn't react to low values. There are many nuances, especially in combination with tuning the sensitivity and upper/lower threshold (UT/LT) parameters.
💮 6. Choosing sensitivity
Speaking of the sensitivity , this parameters fine-tunes how responsive the Flux is to the input signals. Higher sensitivity results in more pronounced responses, leading to more frequent trading signals. Lower sensitivity makes the Flux less responsive, resulting in fewer but potentially more reliable signals.
You might think that changing the upper/lower threshold (UT/LT) parameters would be equivalent, but that's not the case. The sensitivity In case of the Amplitude Compression mechanisms, changing the sensitivity would change the relative Flux shape over time, and with the Trigonometric and GYTSynthesis mechanisms, the Flux shape itself (independent of time) would change. In other words, these are all good parameters for tuning.
💮 7. Utilising the filtering options
When choosing the signal stream of a Signal Provider, you can also change the default "Signal" category of that Signal Provider to a "Filter". In the example below, two Signal Providers are connected; the second is set as a filter. You can see that a second row of a Flux is shown in the Flux Composer (this visualisation can be disabled), corresponding with the signals of the second Signal Provider.
Logically, only when the Filter Flux gives a signal in a certain direction, signals from the regular Signal Flux are registered. Generally speaking, for this use case it is handy to set the thresholds for the Filter Flux low and possibly to decrease the decay rate so that the filtering is active for a long enough time.
💮 8. Interpreting the Flux for trading signals
Lastly, the Signal Flux gives buy and sell signals when it crosses the upper/lower thresholds (UT/LT), when the filter allows it (if enabled). This can be visualised with the triangles as you may have seen in the charts in the previous sections. For people using TradingView's alerts -- these would work too out of the box. And finally, for backtesting and possibly trade automation, we will have the GYTS "🎼 Order Orchestrator" that connects with the Flux Composer.
🌸 ------ 4️⃣ --- LIMITATIONS --- 4️⃣ ------ 🌸
Only 🌸 GYTS 📡 Signal Providers are supported, as there is a specific method to pass continuous (non-binary) data in the data stream
At the moment of release, only the WaveTrend 4D Signal Provider is available. Other Signal Providers will be gradually released.
[GYTS-CE] Flux Composer🧬 Flux Composer (Community Edition)
🌸 Confluence indicator in GoemonYae Trading System (GYTS) 🌸
The Flux Composer is a powerful tool in the GYTS suite that is designed to aggregate signals from multiple Signal Providers, apply customisable decaying functions, and offer customisable and advanced confluence mechanisms. This allows making informed decisions by considering the strength and agreement ("when all stars align") of various input signals.
🌸 --------- TABLE OF CONTENTS --------- 🌸
1️⃣ Main Highlights
2️⃣ Flux Composer’s Features
Multi Signal Provider support
Advanced decaying functions
Customisable Flux confluence mechanisms
Actionable trading experience
User-friendly experience
3️⃣ User Guide
Selecting Signal Providers
Connecting Signal Providers to the Flux Composer
Understanding the Flux
Tuning the decaying functions
Choosing Flux confluence mechanism
Choosing sensitivity
Interpreting the Flux for trading signals
4️⃣ Limitations
🌸 ------ 1️⃣ --- MAIN HIGHLIGHTS --- 1️⃣ ------ 🌸
- Signal aggregation : Combines signals from multiple different 📡 Signal Providers, each of which can be tuned and adjusted independently.
- Decaying function : Utilises advanced decaying functions to model the diminishing effect of signals over time, ensuring that recent signals have more weight. In addition to the decaying effect, the "quality" of the original signals (e.g. a "strong" GDM from WaveTrend 4D with GDM ) are accounted for as well.
- Flux confluence mechanism : The aggregation of all decaying functions form the "Flux", which is the core signal measurement of the Flux Composer. Multiple mechanisms are available for creating the Flux and effectively using it for actionable trading signals.
- Visualisation : Provides detailed visualisation options to help users understand and tune the contributions of individual Signal Providers and their decaying functions.
- Backtesting : The 🧬 Flux Composer is a core component of the TradingView suite of the 🌸 GoemonYae Trading System (GYTS) 🌸. It connects multiple 📡 Signal Providers, such as the WaveTrend 4D, and processes their signals to produce a unified "Flux". This Flux can then be used by the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
🌸 ------ 2️⃣ --- FLUX COMPOSER'S FEATURES --- 2️⃣ ------ 🌸
Let's delve into more details...
💮 1. Multi Signal Provider support
Using the name of the GYTS "🎼 Order Orchestrator" as an analogy: Imagine a symphony where each instrument plays its own unique part, contributing to the overall harmony. The Flux Composer operates similarly, integrating multiple Signal Providers to create a comprehensive and robust trading signal -- the "Flux". Currently, it supports up to two streams from the WaveTrend 4D’s Gradient Divergence Measure (GDM) and another two streams from the WaveTrend 4D's Quantile Median Cross (QMC) .
Note that the GDM includes 2 different continuous signals and the QMC 3 different continuous signals (from different frequencies). This means that the Community Edition can handle 2*2 + 2*3 = 10 different continuous signals.
As GYTS evolves, more Signal Providers will be added; at the moment of releasing the Flux Composer, only WaveTrend 4D with GDM and with QMC are publicly available.
💮 2. Advanced decaying functions
A trading signal can be relevant today, less relevant tomorrow, and irrelevant in a week's time. In other words, its relevance diminishes, or decays , over time. The Flux Composer utilises decaying functions that ensure that recent signals carry more weight, while older signals fade away. This is crucial for accurate signal processing. The intensity and decay settings allow for precise control, allowing emphasising certain signals based on their strength and relevance over time. On top of that, unlike binary signals ("buy now"), the Flux Composer utilises the actual values from the Signal Providers, differentiating between the exact quality of signals, and thus offering a detailed representation of the trading landscape. We will illustrate this in a further section.
💮 3. Customisable Flux confluence mechanisms
Another core component of the Flux Composer is the ability of intelligently combining the decaying functions. It offers two sophisticated confluence mechanisms: Amplitude Compression and Trigonometric. Each mechanism has its unique way of processing the Flux, tailored to different trading needs. The Amplitude Compression method scales the Flux based on recent values, much like the Stochastic Oscillator, while the Trigonometric method uses smooth functions to reduce outliers’ impact We'll discuss this in more detail in the User Guide section.
💮 4. Actionable trading experience
While the mathematical abilities might seem overwhelming, the goal of the Flux Composer is to transform complex signal data into actionable trading signals. When the Flux reaches certain thresholds, it generates clear bullish or bearish signals, making it easy for traders to interpret. The inclusion of upper and lower thresholds (UT and LT) helps in identifying strong signals visually and should be a familiar behaviour similar to how many other indicators operate. Furthermore, the Flux Composer can plot trading signals directly on the oscillator, showing triangle shapes for buy or sell signals. This visual aid is complemented by the possibility to setup TradingView alerts.
💮 5. User-friendly experience
GYTS is all about sophisticated, robust methods but also "elegance". One of the interpretations of the latter, is that the users' experience is very important. Despite the Flux Composer's mathematical underpinnings, it offers intuitive settings that with omprehensive tooltips to help with a smooth setup process. For those looking to fine-tune their signals, the Flux Composer allows the visualisation of individual decaying functions. This feature helps users understand the impact of each setting and make informed adjustments.
🌸 ------ 3️⃣ --- USER GUIDE --- 3️⃣ ------ 🌸
💮 1. Selecting Signal Providers
The Flux Composer’s foundation lies in its Signal Providers. When starting with the Flux Composer, using a single Signal Provider can already provide significant value due to the nature of decaying functions. For instance, the WaveTrend 4D signal provider includes up to two GDM and three QMC signals in a single direction (long/short). Moreover, the various confluence mechanisms that enhance the resulting Flux result in improved discrimination between weak and strong signals. This approach is akin to ensemble learning in machine learning, where multiple models are combined to improve predictive performance.
While using a single Signal Provider is beneficial, the true power of the Flux Composer is realised with multiple Signal Providers. Here are two general approaches to selecting Signal Providers:
Diverse Behaviours
Use Signal Providers with different behaviours, such as WaveTrend 4D on various assets/timeframes or entirely different Signal Providers. This approach leverages diversification to achieve robustness, rooted in the principle that varied sources enhance the overall signal quality. To explain this with an analogy, this strategy aligns with the theory of diversification in portfolio management, where combining uncorrelated assets reduces overall risk. Similarly, combining uncorrelated signals can mitigate the risk of signal failure. A practical example can be integrating a mean-reversion signal with a trend-following signal -- these can balance each other out, providing more stable outputs over different market conditions.
Enhancing a Single Provider
If you consider a particular Signal Provider highly effective, you could improve its robustness by using multiple instances with slight variations. These variations could include different sources (e.g., close, HL2, HLC3), data providers (same asset across different brokers/exchanges), or parameter adjustments. This method mirrors Monte Carlo simulations, often used in risk management and derivative pricing, which involve running many simulations with varied inputs to estimate the probability of different outcomes. By applying similar principles, the strategy becomes less susceptible to overfitting, ensuring the signals are not overly dependent on specific data conditions.
💮 2. Connecting Signal Providers to the Flux Composer
Moving on to practicalities: how do you connect Signal Providers with the Flux Composer? You may have noticed that when you open the drawdown of a data source in a TradingView indicator (with "open", "high", "low", etc.), you also see names from other indicators on your chart. We call these "streams", and the Signal Providers are designed such that they output this stream in a way that the Flux Composer can interpret it. Thus, to connect a Signal Provider with the Flux Composer, you should first have that Signal Provider on your chart. Obviously you should set it up an a way that it seems to provide good signals. After that, in the Data Stream dropdown in the Flux Composer, you can select the stream that is outputted by your Signal Provider. This will always be with a prefix of "🔗 STREAM" (after the Signal Provider's indicator name). See the chart below.
There is one important nuance: when you have multiple (similar) Signal Providers on your chart, it may be hard to select the correct data stream in the Flux Composer as the names of the streams keep repeating when you use identical indicators. So be sure to be attentive as you might end up using the same signals multiple times.
Also, the Signal Providers have an "Indicator name" parameter (and another parameter to repeat this name) that is handy to use when you have multiple Signal Providers on your screen. It is handy to give names that describe the unique settings of that Signal Provider so you can better differentiate what you are looking at on your screen.
💮 3. Understanding the Flux
Let's understand how the Signal Provider's signals are processed. In the chart below, you see we have one Signal Provider (WaveTrend 4D) connected to the Flux Composer and that it gives a bearish QMC signal. The Flux Composer converts this into a decaying function. You can show these functions per Signal Provider when the option "Show decaying function of Signal Provider" is enabled (as it is in the chart).
In our opinion, of crucial importance is the ability to process the quality of signals, rather than just any signal. In mathematical terms, we are interested in continuous signals as these provide a spectrum of values. These signals can reflect varying degrees of market sentiment or trend strength, offering richer information than binary signals, which offer only two states (e.g., buy/sell). Especially in the context of the Flux Composer, where you aggregate multiple signals, it makes a big difference whether you combine 10 weak signals or 10 strong signals. To illustrate this principle, look at the chart below where there are 4 signals of different strengths. As you can see, each of the signals affects the Flux with different intensities.
💮 4. Tuning the decaying functions
As previously mentioned, the decaying functions are a way to give more importance to recent signals while allowing older ones to fade away gradually. This mimics the natural way we assess information, giving more weight to recent events. The decaying functions in the Flux Composer are highly customisable while remaining easy to use. You can adjust the initial intensity , which sets the starting strength of a signal, and the decay rate, which determines how quickly this signal diminishes over time. Let's look at specific examples.
If we add 3 Flux Composers on the chart, connect the same Signal Provider, keep all settings the same with one exception, we get the chart below. Here we have changed the "intensity" parameter of the specific signal. As you can see, the decaying functions are different. The intensity determines the initial strength of the decayed function. Adjusting the intensity allows you to emphasise certain signal types based on their perceived reliability or importance.
Let's now keep the intensity the same ("normal"), but change the "decay" parameter. As you can see in the image below, the decay controls how quickly the signal’s strength diminishes over time. By adjusting the decay, you can model the longevity of the signal’s impact. A faster decay means the signal loses its influence quickly, while a slower decay means it remains relevant for a longer period.
So how do multiple signals interact? You can see this as a simple "stacking of decaying functions" (although there is more to it, see next section). In the chart below we use different "intensity" and "decay" parameters to discuss how the Flux is created.
Hopefully this helps with developing some intuition how signals are converted to decaying functions, how you can control them, and how the Flux is constructed. When tuning these parameters, use the visualisation options to see how individual decaying functions contribute to the overall Flux. This helps in understanding and refining the parameters to achieve the desired trading signal behaviour.
💮 5. Choosing Flux confluence mechanism
While we mentioned that the Flux is a "stacking of individual decaying functions", in the back-end, that is not exactly that simple. Like previously mentioned, for GYTS, "elegance" is very important. One of the interpretations is "user friendliness" and the Flux confluence mechanism is one of the essential developments for this characteristic. The Flux confluence mechanism is critical in synthesising the aggregated signals into the Flux. The choice of mechanism affects how the signals are combined and the resulting trading signals. The Community Edition offers two distinct mechanisms, each with its strengths.
The Amplitude Compression mechanism is intuitive, scaling the Flux based on recent values, intuitively not unlike the method of the well-known Stochastic Oscillator. On the other hand, the Trigonometric mechanism smooths the Flux and reduces the impact of outliers, providing a balanced approach. It's difficult to convey the workings of the Flux confluence mechanism in a chart, but let's take the opportunity to show how the Flux would look like when connecting both GDM and QMC signals to two Flux Composers with default settings, except the Flux confluence mechanism:
You can notice that the upper Flux Converter (FC) triggered two signals while the other FC triggered only one. There are more nuances, especially in combination with tuning the sensitivity and upper/lower threshold (UT/LT) parameters.
💮 6. Choosing sensitivity
Speaking of the sensitivity , this parameters fine-tunes how responsive the Flux is to the input signals. Higher sensitivity results in more pronounced responses, leading to more frequent trading signals. Lower sensitivity makes the Flux less responsive, resulting in fewer but potentially more reliable signals.
You might think that changing the upper/lower threshold (UT/LT) parameters would be equivalent, but that's not the case. The sensitivity In case of the Amplitude Compression mechanism, changing the sensitivity would change the relative Flux shape over time, and with the Trigonometric mechanism, the Flux shape itself (independent of time) would change. In other words, these are all good parameters for tuning.
💮 8. Interpreting the Flux for trading signals
Lastly, the Signal Flux gives buy and sell signals when it crosses the upper/lower thresholds (UT/LT) This can be visualised with the triangles as you may have seen in the charts in the previous sections. For people using TradingView's alerts -- these would work out of the box. And finally, for backtesting and possibly trade automation, we will have the GYTS "🎼 Order Orchestrator" that connects with the Flux Composer.
🌸 ------ 4️⃣ --- LIMITATIONS --- 4️⃣ ------ 🌸
Only 🌸 GYTS 📡 Signal Providers are supported, as there is a specific method to pass continuous (non-binary) data in the data stream
At the moment of release, only WaveTrend 4D with GDM and with QMC are available. Other Signal Providers will be gradually released.
Cumulative Volume Delta (MTF)Cumulative Volume Delta (CVD) Indicator
The Cumulative Volume Delta (CVD) indicator is a powerful analytical tool used to understand the behavior and dynamics of market participants through volume analysis. It tracks the net difference between buying and selling pressure, providing insights into market trends and potential reversals. Here's a detailed description of this indicator and its components:
The Cumulative Volume Delta (CVD) indicator calculates the cumulative net difference between buying and selling volume over a specified period. By analyzing this net difference, traders can gain insights into the underlying strength or weakness of a price movement, helping to identify trends, reversals, and potential breakout points.
Key Components:
Bull & Bear Power Calculation:
Bull Power: Represents the strength of buyers in the market. It is calculated based on the relationship between the current and previous price bars. A higher Bull Power indicates stronger buying pressure.
Bear Power: Represents the strength of sellers in the market. It is also calculated based on the relationship between the current and previous price bars. A higher Bear Power indicates stronger selling pressure.
Bull & Bear Volume Calculation:
Bull Volume: The volume attributed to buying pressure. It is calculated by taking the proportion of Bull Power relative to the total of Bull Power and Bear Power, multiplied by the total volume.
Bear Volume: The volume attributed to selling pressure. It is calculated similarly to Bull Volume but using Bear Power.
Delta Calculation:
Delta: The net difference between Bull Volume and Bear Volume for each bar. A positive Delta indicates more buying pressure, while a negative Delta indicates more selling pressure.
Cumulative Volume Delta (CVD):
CVD: The running total of the Delta values over time. It accumulates the net buying and selling pressure to provide a visual representation of the market's cumulative sentiment.
Moving Average of CVD (CVD MA):
CVD MA: A simple moving average of the CVD, used to smooth out fluctuations and help identify the overall trend. It provides a baseline to compare the current CVD value against, highlighting divergences or convergences.
Multi-Timeframe Functionality:
The enhanced version of the CVD indicator includes multi-timeframe (MTF) capabilities, allowing users to select and analyze data from different timeframes. This feature enhances the versatility of the indicator by providing a broader perspective on market dynamics across various time intervals.
Practical Applications:
Trend Identification: By tracking the CVD and its moving average, traders can identify the prevailing trend. An upward-sloping CVD indicates sustained buying pressure, while a downward-sloping CVD indicates sustained selling pressure.
Divergences: Divergences between the CVD and price can signal potential reversals. For example, if the price is making new highs but the CVD is not, it may indicate weakening buying pressure and a potential reversal.
Breakout Confirmation: Significant changes in the CVD can confirm breakouts. A sharp increase in the CVD during a price breakout indicates strong buying support, adding confidence to the breakout.
Support and Resistance Levels: The CVD can help identify significant support and resistance levels based on changes in volume dynamics. For instance, a notable increase in buying volume at a support level can reinforce its strength.
Bar Outlines [UkutaLabs]█ OVERVIEW
The Bar Outlines indicator will automatically draw bars from higher time frames onto lower time frames, allowing traders to analyse multiple levels of information at a glance. This indicator is intended to assist traders by allowing them to see different depths of the market on one single chart, as well as to improve the clarity of other indicators that mirror higher time frame data.
The purpose of this script is to simplify the experience of users by allowing them to mirror bars from several higher time frame options onto lower time frame charts.
█ USAGE
Users can choose between several different time frames that they would like to have displayed on their lower time frame charts.
The colors of these bars are customizable, allowing users to distinguish between bullish and bearish bars, as well as making it easier to understand which time frame the bars are being mirrored from if they choose to mirror multiple time frames.
The mirrored bars also contain two sections. The main section is a solid section that represents the body of the higher time frame bar, and the secondary section is a border that represents the wick of the higher time frame bar, making it easier for the user to get all the information they need about the higher time frame bar at a glance.
█ SETTINGS
Configuration
- Max Bars to Display: Determines the number of higher time frame bars to draw on the chart. This number is for each higher time frame that the user has enabled, not the total.
5 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 5 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 5 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 5 minute time frame.
15 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 15 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 15 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 15 minute time frame.
30 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 30 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 30 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 30 minute time frame.
60 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 60 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 60 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 60 minute time frame.
240 Minute (Higher Time Frame)
- Display (On/Off): Determines whether bars from the 240 minute chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the 240 minute time frame.
- Bearish Color: Determines the color of bearish bars drawn from the 240 minute time frame.
Daily (Higher Time Frame)
- Display (On/Off): Determines whether bars from the daily chart are drawn on the current chart.
- Bullish Color: Determines the color of bullish bars drawn from the daily time frame.
- Bearish Color: Determines the color of bearish bars drawn from the daily time frame.
Table Volume MultiframeDescription
The Table Volume Multiframe indicator displays volume information across multiple timeframes in a convenient table format. Users can customize the table's position, size, and the specific timeframes to be displayed. This indicator helps traders analyze volume trends and divergences across different timeframes, providing a comprehensive view of market activity. The table shows the total volume, buy percentage, sell percentage, and a countdown timer for the next bar close for each selected timeframe. The countdown function updates consistently to provide real-time information.
Features
- Customizable table position and size
- Selectable timeframes
- Displays volume, buy percentage, sell percentage
- Countdown timer for next bar close
- Real-time updates
Average price in candlePlots the average price a security had within a candle.
So, for example: If you have a 15m candle, and price stayed near the candle's high for 10 out of the 15 minutes, you would expect the average price top be near the candle's high as well. And that's actually how it is.
(Blue 10:30 candle in the screenshot.)
I think this "average in-candle price" could be a useful thing to know. You can't gather this information from the normal chart (as you would need to go to a lower timeframe). Plus this plot can be smoother than plots of, say, closing price or hl2.
The calculation happens in a lower timeframe which is selected automatically. There is a precision selector which allows you to influence this. By default, at least 10 values are sampled for each candle.
If you have TradingView Premium, the script is able to use second-based intervals to look inside 1m candles. (Tick the corresponding checkbox to enable this.)
How it works: I collect timestamps and hl2 values from the lower timeframe. (I figure hl2 is the best choice here because a close is so arbitrary. If we don't have further information, our guess is the average is simply exactly in the middle of the candle's range.)
Then I throw the last close and current close (from the CHART timeframe) into the mix and calculate an average of the prices we collected weighted by the duration that price was in effect.
tl;dr; It's just math baby
CARNAC Trading Support and Resistance LevelsOverview
The "Carnac Trading Support and Resistance Levels" indicator is a powerful tool designed to help traders identify key support and resistance levels across multiple timeframes. This tool enhances trading strategies by visually marking significant price levels and providing configurable stop-loss and alert features.
Features
Support and Resistance Levels: Automatically calculates and plots support and resistance levels for the following timeframes:
5 minutes (5M)
10 minutes (10M)
15 minutes (15M)
30 minutes (30M)
1 hour (1H)
2 hours (2H)
4 hours (4H)
6 hours (6H)
12 hours (12H)
1 day (1D)
1 week (1W)
1 month (1M)
Configurable Stop-Loss (SL) Levels: Adds a stop-loss line below each support level and above each resistance level with customizable padding (as a percentage).
Visual Labels: Clearly labels support, resistance, and stop-loss levels with the corresponding prices and timeframes for easy identification.
Line Customization:
Support Levels: Green lines with varying thickness based on the timeframe.
Resistance Levels: Red lines with varying thickness based on the timeframe.
Stop-Loss Levels: Gray dotted lines for clear distinction.
Alerts: Alerts trigger when the price gets to a configurable percentage from the support or resistance levels, helping you stay informed about potential buying and selling opportunities.
Visibility Toggling: Easily toggle the visibility of support and resistance levels for each timeframe (default enabled for 2H, 4H, and 1D).
How to Use
Add the Indicator:
Navigate to the TradingView Pine Editor.
Paste the provided Pine Script code and click "Add to Chart."
Configure Inputs:
Lookback Periods: Adjust the lookback periods for each timeframe to suit your analysis needs.
Padding Percentage: Set the padding percentage for the stop-loss levels to define the distance below the support levels and above the resistance levels.
Visibility: Toggle the visibility of the support and resistance levels for each timeframe as needed (default enabled for 2H, 4H, and 1D).
Alert Trigger Distance: Set the alert trigger distance as a percentage to determine when the alerts should be triggered.
Interpret the Plotted Levels:
Green Lines: Indicate support levels for the respective timeframes.
Red Lines: Indicate resistance levels for the respective timeframes.
Gray Dotted Lines: Represent the stop-loss levels below each support level and above each resistance level, with the specified padding.
Labels: Provide clear indications of the price levels and their respective timeframes in white text for visibility.
Identifying Buying and Selling Opportunities:
Buying Opportunities:
Look for the price to approach or bounce off a support level (green line).
Confirm the potential for a reversal by checking if the price is nearing a key support level from multiple timeframes.
Use the stop-loss level (gray dotted line) to set your stop-loss order below the support level to minimize risk.
Selling Opportunities:
Look for the price to approach or get rejected at a resistance level (red line).
Confirm the potential for a reversal by checking if the price is nearing a key resistance level from multiple timeframes.
Use the stop-loss level (gray dotted line) to set your stop-loss order above the resistance level to minimize risk.
Alerts:
Alerts will notify you when the price gets within the specified percentage distance from each support or resistance level.
Use these alerts to stay informed about potential buying and selling opportunities.
True Market Structure {DCAquant}
True Market Structure
Overview
The True Market Structure is a technical analysis tool designed for use across all timeframes. It identifies and visualizes market structure breaks (MSBs) and break of structure (BOS) events, emphasizing interim highs and lows using the "Deroz Wick" system. Unlike many other indicators, this tool does not rely on traditional pivot points, making it a unique addition to any trader's toolkit.
How It Works
The True Market Structure indicator uses a combination of algorithms to detect and highlight significant market structure events. By analyzing price action and identifying key levels, the indicator aids in understanding potential reversal points and trend continuations.
Bull and Bear Market Structures: Differentiates between bullish and bearish market structures, applying distinct color settings for easy visualization.
Customizable Settings: Users can tailor the indicator’s appearance and functionality to their preferences, including toggling lines, labels, and selecting between SWING and INTERIM MS settings.
How our market structure indicator is different
All known market structure indicators work with pivot points. This is a lookback function to find highs and lows within a certain period and then producing market structure.
Our indicator doesn't work like this as the DCAquant True Market Structure finds swing and interim lows and saves it into memory thus giving us the ability to create real market structure breaks and BOS’s.
This is achieved when an MSB or BOS is triggered the script will perform a check through its memory to find previous Interim or swing which ever setting the user has selected.
A saved interim or swing will never change unless it is broken giving you true market structure, this Indicator cannot repaint because it only produces breaks whenever candle is closed.
The next MSB or BOS you see on the chart are the direct function of saved memory points which gives clear indication of true market structure.
Almost 500 lines of code to give you True Market Structure usable on any timeframe.
Key Features
1. Market Structure Breaks (MSBs) and Break of Structure (BOS)
Market Structure Breaks (MSBs): Occur when the price breaks through a previous significant high or low, indicating a potential reversal or continuation of the current trend.
Break of Structure (BOS): Highlights significant breaks in market structure, providing insights into potential trend changes.
2. Visualization Options
Customizable colour settings for both bull and bear market structures, ensuring it integrates with any chart setup.
Options to enable or disable lines and labels for flexible information display.
3. The WICK System
Standard WICK System: Identifies wicks based on standard high/low calculations.
Deroz WICK System: Enhances the standard WICK system by looking back at price history and replacing the standard wick if an even lower or higher wick is found in the subsequent bar.
4. MS Settings
SWING Setting: Sets future MSB events at swing highs/lows, offering a broader market perspective.
INTERIM Setting: Sets future MSB events at interim highs/lows, providing more immediate and frequent market structure updates.
Understanding Market Structure
Market structure is defined by a series of price actions that form recognizable patterns indicating the current trend. Key elements include:
Higher Highs (HH) and Higher Lows (HL): Indicate an uptrend, where each successive high and low is higher than the previous one.
Lower Highs (LH) and Lower Lows (LL): Indicate a downtrend, where each successive high and low is lower than the previous one.
These patterns help traders identify trend direction and potential reversal points. In an uptrend, traders look for higher highs and higher lows to continue, whereas in a downtrend, they look for lower highs and lower lows.
Application in Breakout Trading
Market structure analysis is crucial for breakout trading, where traders seek to capitalize on significant price movements following a break of established price levels.
Uptrend Breakouts: Traders watch for breaks above higher highs as potential entry points for long positions.
Downtrend Breakouts: Traders watch for breaks below lower lows as potential entry points for short positions.
The True Market Structure indicator assists by visually marking these critical levels, simplifying the process of identifying and acting on breakout opportunities.
Visual Representation
Indicator Settings
Standard WICK vs. Deroz WICK System:
Standard WICK
Deroz WICK
SWING MSB
INTERIM MSB
Summary
The True Market Structure indicator provides a clear and detailed view of market structure changes. By highlighting key MSB and BOS events and incorporating advanced wick detection through the Deroz WICK system, this tool can aid in making informed decisions based on a thorough understanding of market dynamics. However DCAquant recommends using this indicator as part of a system.
ALT Trend DetectionALT Trend Detection Indicator
Overview:
The "ALT Trend Detection" indicator is designed to help traders analyze the relationship between Bitcoin's dominance, Bitcoin's price, and the potential impact on altcoin prices. This indicator uses various time frames and average true range (ATR) calculations to detect trends and provide insights into the altcoin market conditions based on Bitcoin's movements.
How It Works:
BTC Dominance and Price Data:
The indicator fetches Bitcoin dominance data (percentage of the total cryptocurrency market cap that Bitcoin represents) and Bitcoin price data using the selected time frame.
It calculates whether Bitcoin dominance and price are trending up, down, or remaining stable based on ATR calculations.
Altcoin Trend Detection:
The indicator then evaluates different scenarios based on the combination of Bitcoin dominance and price movements. These scenarios help predict the potential impact on altcoin prices.
For instance, if Bitcoin dominance is up and Bitcoin price is up, it might indicate a bearish trend for altcoins. Conversely, if Bitcoin dominance is down and Bitcoin price is up, it might indicate a bullish trend for altcoins (altseason).
Table Display:
The indicator displays a table on the chart that summarizes the current conditions for Bitcoin dominance, Bitcoin price, and the expected impact on altcoins. Each cell in the table is color-coded to provide a quick visual representation of the trends.
Usage:
Add the indicator to your TradingView chart.
Customize the time frame, ATR multiplier, table position, table size, and background color as per your preference.
Observe the table displayed on the chart. It shows the current state of Bitcoin dominance, Bitcoin price, and the potential trend for altcoin prices based on predefined scenarios.
Use this information to make informed trading decisions about altcoins. For example, if the table shows "ALT SEASON" in green, it might be a good time to consider investing in altcoins.
By analyzing the interaction between Bitcoin dominance and price, this indicator helps traders identify potential opportunities and risks in the altcoin market.
Pvsra Candles Boxes and VolumeIntroduction:
The PVSRA Candles and Liquidity Zones Indicator is a indicator created to support your trading analysis on TradingView. This indicator integrates PVSRA candle analysis, liquidity zone identification, gap detection, and volume visualization, providing a detailed view of market dynamics.
Key Features:
PVSRA Candles: The indicator detects PVSRA candle patterns, which are based on price, volume, and support/resistance analysis. These candles illustrate the interaction between price movements and volume activity, offering insights into market behavior.
Liquidity Zones: The indicator marks liquidity zones, representing areas of unrecovered liquidity on both PVSRA candles and regular candles. These zones can help you identify key price levels and areas of interest for price action.
Gap Detection: The indicator automatically identifies and highlights price gaps on the chart. These gaps can indicate strong market sentiment and potential areas for price retracement or continuation.
Custom PVSRA Zones: You can plot custom PVSRA zones from higher timeframes onto the current chart, enabling the analysis of key levels and trends from multiple timeframes for a broader market perspective.
Midpoints with Price Labels: Each zone, whether it's a PVSRA zone or a custom zone, includes midpoints and price labels, aiding in the quick identification of important levels within each zone.
Volume Visualization: The indicator offers an option to display the volume of PVSRA candles directly on the PVSRA candle zones, providing additional context to understand volume activity within each zone.
Customization Options: Extensive customization options allow you to tailor the indicator to your preferences, including color schemes, wick inclusion, volume visualization, and other parameters.
Usage Instructions:
Apply the indicator to your TradingView chart.
Customize the indicator's settings based on your preferences, such as color schemes, wick inclusion, volume visualization, gap detection, and other parameters.
Observe the PVSRA candles, liquidity zones, gaps, and custom zones plotted on the chart.
Analyze the interactions between price, volume, gaps, and liquidity zones to identify potential trade setups.
Combine the insights from PVSRA candles, liquidity zones, gap detection, and volume visualization with your existing trading strategy and risk management techniques for informed decision-making.
Conclusion:
The PVSRA Candles and Liquidity Zones Indicator provides traders with a comprehensive toolset for analyzing PVSRA candle patterns, liquidity zones, gap detection, and volume visualization. By utilizing this indicator's features and customization options, you can enrich your trading analysis.
Please ensure to thoroughly test the indicator and its functionality within your trading strategy before applying it to live trading scenarios. Happy trading!
Open Interest liquidation map [Ox_kali]This script is inspired by @LeviathanCapital work on aggregating Open Interest , as presented in the Open Interest Suite Aggregated script. This script aims to provide a liquidation map of Open Interest by identifying significant anomalies across multiple trading platforms. By integrating data from Binance, BitMEX, and Kraken, this script tries to offer a comprehensive and detailed view of Open Interest movements and attempts to define zones of interest.
Key Points
1. Multiple Data Sources : The script retrieves Open Interest data from several trading platforms, including Binance (USDT, USD, BUSD), BitMEX (USD, USDT), and Kraken (USD).
2. Anomaly Detection : Utilizes a simple moving average (SMA) to calculate the average size of Open Interest candles and identify anomalies based on a user-specified size factor.
3. Background Coloring : Offers an option to color the background of the charts based on detected anomalies, allowing for clear visualization of significant movements.
4. Dynamic Support and Resistance Zones : Defines and dynamically updates support and resistance zones based on Open Interest anomalies.
5. Alerts : Configures alerts to notify the user when an Open Interest anomaly is detected.
Trading Utility
This script can be useful for monitoring significant changes in Open Interest and potential liquidation zones across multiple platforms. The main trading applications include:
1. Identifying Liquidation Points : By detecting Open Interest anomalies, it is possible to identify potential liquidation points where significant price movements might occur.
2. Multi-Platform Analysis : By aggregating Open Interest data from multiple platforms, a more comprehensive market overview is obtained.
3. Detecting Support and Resistance Zones : Dynamic support and resistance zones help identify key price levels where trend reversals might occur.
4. Customized Alerts: Anomaly alerts allow for automated responses to market changes.
Conclusion
The “Open Interest liquidation map ” script is an experimental tool for analyzing Open Interest across multiple trading platforms. Inspired by Leviathan’s work, this script attempts to identify liquidation and interest zones. This is an experimental version, and I welcome any comments and feedback for improvement.
Please note that the Open Interest liquidation map is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
Cipher Mean ReversionThe Cipher Mean Reversion Indicator is an advanced trading tool that dynamically adjusts to market volatility to provide optimal entry and exit signals. This indicator is designed to identify significant deviations from a calculated mean, signaling potential reversal points where prices might revert to their average.
Core Functionality:
Cipher Mean Reversion uses an Exponential Moving Average (EMA) as the foundation for its mean price calculation. What sets Cipher apart is its dynamic adjustment mechanism that adapts the sensitivity of the EMA based on a volatility index. This index assesses both the rate and magnitude of price changes over a user-specified period, utilizing standard deviation and average true range calculations to gauge market volatility.
Unique Features:
Dynamic Sensitivity Adjustment: The sensitivity of our mean reversion detection changes in real-time, driven by our proprietary volatility index. This index is calculated using a combination of standard deviation and average true range, providing a robust measure of market volatility that informs the adjustment of our signal thresholds.
Adaptive Signal Thresholds: Instead of static buy and sell thresholds, Cipher uses thresholds that adapt to ongoing market conditions. These thresholds expand during periods of high volatility to reduce the risk of false signals and contract during quieter market conditions to capture smaller price reversals.
Signal Generation:
Buy Signals: Generated when the price falls significantly below the dynamically adjusted lower threshold, indicating an oversold condition ripe for reversal.
Sell Signals: Occur when the price exceeds the dynamically adjusted upper threshold, suggesting an overbought condition likely to revert.
Usage Tips:
Parameter Customization: Users can adjust the lookback period for the volatility assessment and the length of the EMA to better fit different assets and trading styles.
Complementary Analysis: For enhanced trading decisions, combine the Cipher Mean Reversion with other analytical tools such as volume indicators or momentum oscillators.
Risk Management: Employ risk management strategies, including predefined stop-loss and take-profit levels, tailored to the volatility insights provided by the indicator.
Originality and Usefulness:
The Cipher Mean Reversion Indicator offers a novel approach to mean reversion analysis by integrating real-time volatility adaptations into the signal generation process. This methodology ensures that the indicator remains highly responsive to changing market dynamics, providing traders with signals that are both timely and relevant.
Intended Use:
Cipher is versatile and can be used across various asset classes, including stocks, forex, and commodities. It is ideal for traders who require an indicator that can adapt to different market environments, from fast-moving markets to more stable conditions.
ka66: FX Sessions High/LowThis indicator is specific to the 24-hour Forex Market. It provides 2 features:
Demarcating forex sessions with open and close lines. Note that looking at various sources online, we use the convention that the Asia session starts with the Tokyo market open, rather than the earlier Sydney session. Presumably this is better since we then have more liquidity in the market. Note that we have three sessions: Asia, London, New York.
At the end of each session, we begin plotting that (closed) session's high and low, which acts as a natural support and resistance for the Forex market. This is the key feature it provides. The first feature is mainly there for a visual guide, which can be turned off via the UI settings, but it certainly helps verifying the logic!
For more background, we are taking the idea of Previous Day High/Low (PDH/PDL), but adjusting it to a multi-session market like Forex. In essence, this is is a "Previous Session High/Low" indicator.
PDH/PDL works fine when you have a market with Regular Trading Hours, ignoring Extended Hours. However, in the Forex market, each session can have differing sentiments, e.g. we often see say London bringing prices up, and New York bringing them back down.
The break of session high/lows (or bouncing off them) can reflect where the potential direction price is going to take.
I also categorised this as a Sentiment indicator, because support and resistance areas where prices react do provide the sentiment of the market. They aren't just lines, they are prices of interest to major players.
MTF Bollinger BandWidth [CryptoSea]The MTF Bollinger BandWidth Indicator is an advanced analytical tool crafted for traders who need to gauge market volatility and trend strength across multiple timeframes. This powerful indicator leverages the Bollinger BandWidth concept to provide a comprehensive view of price movements and volatility changes, making it ideal for those looking to enhance their trading strategies with multi-timeframe analysis.
Key Features
Multi-Timeframe Analysis: Allows users to monitor Bollinger BandWidth across various timeframes, providing a macro and micro perspective on market volatility.
Pivot Point Detection: Identifies crucial high and low pivot points, offering insights into potential support and resistance levels. Pivot points are dynamic and adjust based on the timeframe viewed, reflecting short-term fluctuations or longer-term trends.
Customizable Parameters: Includes options to adjust the length of the moving average, the standard deviation multiplier, and more, enabling traders to tailor the tool to their specific needs.
Dynamic Color Coding: Utilizes color changes to indicate different market conditions, aiding in quick visual assessments.
In the example below, notice how changes in BBW across different timeframes provide early signals for potential volatility increases or decreases.
How it Works
Calculation of BandWidth: Measures the percentage difference between the upper and lower Bollinger Bands, which expands or contracts based on market volatility.
High and Low Pivot Tracking: Automatically calculates and tracks the pivots in BBW values, which are critical for identifying turning points in market behavior. High and low levels will change depending on the timeframe, capturing distinct market behaviors from granular movements to broad trends.
Visual Alerts and Table Display: Highlights significant changes in BBW with visual alerts and provides a detailed table view for comparison across timeframes.
In the example below, BBW identifies a significant contraction followed by an expansion, suggesting a potential breakout.
Application
Strategic Market Entry and Exit: Assists traders in making well-informed decisions about when to enter and exit trades based on volatility cues.
Trend Strength Assessment: Helps in determining the strength of the prevailing market trend through detailed analysis of expansion and contraction periods.
Adaptable to Various Trading Styles: Suitable for day traders, swing traders, and long-term investors due to its customization capabilities and effectiveness across different timeframes.
The MTF Bollinger BandWidth Indicator is a must-have in the arsenal of traders who demand depth, accuracy, and responsiveness in their market analysis tools. Enhance your trading decisions by integrating this sophisticated indicator into your strategy to navigate the complexities of various market conditions effectively.
Multi Timeframe Moving Average Convergence Divergence {DCAquant}Overview
The MTF MACD indicator provides a unique view of MACD (Moving Average Convergence Divergence) and Signal Line dynamics across various timeframes. It calculates the MACD and Signal Line for each selected timeframe and aggregates them for analysis.
Key Features
MACD Calculation
Utilizes standard MACD calculations based on user-defined parameters like fast length, slow length, and signal smoothing.
Determines the difference between the MACD and Signal Line to identify convergence or divergence.
Multiple Timeframe Analysis
Allows users to select up to six different timeframes for analysis, ranging from minutes to days, providing a holistic view of market trends.
Calculates MACD and Signal Line for each timeframe independently.
Aggregated Analysis
Combines MACD and Signal Line values from multiple timeframes to derive a consolidated view.
Optionally applies moving average smoothing to aggregated MACD and Signal Line values for better clarity.
Position Identification
Determines the trading position (Long, Short, or Neutral) based on the relationship between MACD and Signal Line.
Considers the proximity of MACD and Signal Line to identify potential trading opportunities.
Visual Representation
Plots MACD and Signal Line on the price chart for visual analysis.
Utilizes color-coded backgrounds to indicate trading conditions (Long, Short, or Neutral) for quick interpretation.
Dynamic Table Display
Displays trading position alongside graphical indicators (rocket for Long, snowflake for Short, and star for Neutral) in a customizable table.
Offers flexibility in table placement and size for user preference.
How to Use
Parameter Configuration
Adjust parameters like fast length, slow length, and signal smoothing to fine-tune MACD calculations.
Select desired timeframes for analysis based on trading preferences and market conditions.
Interpretation
Monitor the relationship between MACD and Signal Line on the price chart.
Pay attention to color-coded backgrounds and graphical indicators in the table for actionable insights.
Decision Making
Consider entering Long positions when MACD is above the Signal Line and vice versa for Short positions.
Exercise caution during Neutral conditions, as there may be uncertainty in market direction.
Risk Management
Combine MTF MACD analysis with risk management strategies to optimize trade entries and exits.
Set stop-loss and take-profit levels based on individual risk tolerance and market conditions.
Conclusion
The Multi Timeframe Moving Average Convergence Divergence (MTF MACD) indicator offers a robust framework for traders to analyze market trends across multiple timeframes efficiently. By combining MACD insights from various time horizons and presenting them in a clear and actionable format, it empowers traders to make informed decisions and enhance their trading strategies.
Disclaimer
The Multi Timeframe Moving Average Convergence Divergence (MTF MACD) indicator provided here is intended for educational and informational purposes only. Trading in financial markets involves risk, and past performance is not indicative of future results. The use of this indicator does not guarantee profits or prevent losses.
Please be aware that trading decisions should be made based on your own analysis, risk tolerance, and financial situation. It is essential to conduct thorough research and seek advice from qualified financial professionals before engaging in any trading activity.
The MTF MACD indicator is a tool designed to assist traders in analyzing market trends and identifying potential trading opportunities. However, it is not a substitute for sound judgment and prudent risk management.
By using this indicator, you acknowledge that you are solely responsible for your trading decisions, and you agree to indemnify and hold harmless the developer and distributor of this indicator from any losses, damages, or liabilities arising from its use.
Trading in financial markets carries inherent risks, and you should only trade with capital that you can afford to lose. Exercise caution and discretion when implementing trading strategies, and consider seeking independent financial advice if necessary.
Multi Timeframe Relative Strength Index {DCAquant}Overview
The Multi Timeframe Relative Strength Index (MTF RSI) is a powerful technical analysis tool designed to provide insights into market momentum and potential trend reversals across multiple timeframes. Leveraging the Relative Strength Index (RSI) formula, this indicator offers traders a comprehensive view of market sentiment and identifies overbought and oversold conditions.
Key Features
RSI Calculation:
Utilizes the standard RSI calculation formula to measure the magnitude of recent price changes and assess the strength of market trends.
Employs a user-defined length parameter to customize the sensitivity of the RSI calculation based on trading preferences.
Multiple Timeframe Analysis:
Allows traders to analyze RSI values across up to six different timeframes, ranging from minutes to days, providing a holistic perspective on market dynamics.
Calculates RSI values independently for each selected timeframe, enabling comparison and trend identification.
Threshold Levels:
Defines overbought and oversold levels to highlight potential reversal points in market trends.
Offers flexibility in adjusting threshold levels based on individual risk tolerance and trading strategies.
Neutral Zone:
Establishes upper and lower neutral thresholds to identify periods of consolidation or sideways movement in price.
Helps traders distinguish between trending and ranging market conditions for more accurate analysis.
Moving Average Smoothing:
Provides the option to apply moving average smoothing to aggregated RSI values for enhanced clarity and reduced noise.
Enables smoother visualization of RSI trends, facilitating easier interpretation for traders.
Visual Representation:
Plots the aggregated MTF RSI values on the price chart, allowing traders to visually assess market momentum and potential reversal points.
Utilizes color-coded backgrounds to indicate Long, Short, or Neutral conditions for quick identification.
Dynamic Table Display:
Displays trading signals alongside graphical indicators (rocket for Long, snowflake for Short, and star for Neutral) in a customizable table format.
Offers flexibility in table placement and size to accommodate user preferences.
How to Use:
Parameter Configuration:
Adjust the length parameter to fine-tune the sensitivity of the RSI calculation based on the desired timeframe and trading strategy.
Define overbought and oversold levels to identify potential reversal points in market trends.
Customize upper and lower neutral thresholds to differentiate between trending and ranging market conditions.
Interpretation:
Monitor the aggregated MTF RSI values plotted on the price chart for signals of overbought or oversold conditions.
Pay attention to color-coded backgrounds and graphical indicators in the table for actionable trading insights.
Trading Strategy:
Consider entering Long positions when the aggregated MTF RSI is above the upper neutral threshold, indicating potential bullish momentum.
Evaluate Short opportunities when the aggregated MTF RSI falls below the lower neutral threshold, signaling possible bearish momentum.
Exercise caution during Neutral conditions, as there may be uncertainty in market direction.
Risk Management:
Combine MTF RSI analysis with robust risk management strategies, including stop-loss and take-profit levels, to manage trading risks effectively.
Practice prudent risk management and trade within your risk tolerance to minimize potential losses.
Disclaimer
Trading in financial markets involves risk, and past performance is not indicative of future results. The use of the MTF RSI indicator does not guarantee profits or prevent losses. Traders should conduct their own analysis, exercise caution, and seek advice from qualified financial professionals before making trading decisions.
HTF Descending TriangleHTF Descending Triangle aims at detecting descending triangles using higher time frame data, without repainting nor misalignment issues.
Descending triangles are defined by a falling upper trend line and an horizontal lower trend line. It is a chart pattern used in technical analysis to predict the continuation of a downtrend.
This indicator can be useful if you, like me, believe that higher time frames can offer a broader perspective and provide clearer signals, smoothing out market noise and showing longer-term trends.
You can change the indicator settings as you see fit to tighten or loosen the detection, and achieve the best results for your use case.
Features
It draws the detected descending triangle on the chart.
It supports alerting when a detection occurs.
It allows for setting the higher time frame to run the detection on.
It allows for setting the minimum number of consecutive valid higher time frame bars to fit the pattern criteria.
It allows for setting a low factor detection criteria to apply on higher time frame bars low as a proportion of the distance between the reference bar low and open/close.
It allows for turning on an adjustment of the triangle using highest/lowest values within valid higher time frame bars.
Settings
Higher Time Frame dropdown: Selects higher time frame to run the detection on. It must be higher than, and a multiple of, the chart's timeframe.
Valid Bars Minimum field: Sets minimum number of consecutive valid higher time frame bars to fit the pattern criteria.
Low Factor checkbox: Turns on/off low factor detection criteria.
Low Factor field: Sets low factor to apply on higher time frame bars low as a proportion of the distance between the reference bar low and open/close.
Adjust Triangle checkbox: Turns on/off triangle adjustment using highest/lowest values within valid higher time frame bars.
Detection Algorithm Notes
The detection algorithm recursively selects a higher time frame bar as reference. Then it looks at the consecutive higher time frame bars (as per the requested number of minimum valid bars) as follows:
High must be lower than previous bar.
Open/close min value must be higher than reference bar low.
When low factor criteria is turned on, low must be lower than reference bar open/close min value minus low factor proportion of the distance between reference bar low and open/close min value.
VolCorrBeta [NariCapitalTrading]Indicator Overview: VolCorrBeta
The VolCorrBeta indicator is designed to analyze and interpret intermarket relationships. This indicator combines volatility, correlation, and beta calculations to provide a comprehensive view of how certain assets (BTC, DXY, CL) influence the ES futures contract (I tailored this indicator to the ES contract, but it will work for any symbol).
Functionality
Input Symbols
BTCUSD : Bitcoin to USD
DXY : US Dollar Index
CL1! : Crude Oil Futures
ES1! : S&P 500 Futures
These symbols can be customized according to user preferences. The main focus of the indicator is to analyze how the price movements of these assets correlate with and lead the price movements of the ES futures contract.
Parameters for Calculation
Correlation Length : Number of periods for calculating the correlation.
Standard Deviation Length : Number of periods for calculating the standard deviation.
Lookback Period for Beta : Number of periods for calculating beta.
Volatility Filter Length : Length of the volatility filter.
Volatility Threshold : Threshold for adjusting the lookback period based on volatility.
Key Calculations
Returns Calculation : Computes the daily returns for each input symbol.
Correlation Calculation : Computes the correlation between each input symbol's returns and the ES futures contract returns over the specified correlation length.
Standard Deviation Calculation : Computes the standard deviation for each input symbol's returns and the ES futures contract returns.
Beta Calculation : Computes the beta for each input symbol relative to the ES futures contract.
Weighted Returns Calculation : Computes the weighted returns based on the calculated betas.
Lead-Lag Indicator : Calculates a lead-lag indicator by averaging the weighted returns.
Volatility Filter : Smooths the lead-lag indicator using a simple moving average.
Price Target Estimation : Estimates the ES price target based on the lead-lag indicator (the yellow line on the chart).
Dynamic Stop Loss (SL) and Take Profit (TP) Levels : Calculates dynamic SL and TP levels using volatility bands.
Signal Generation
The indicator generates buy and sell signals based on the filtered lead-lag indicator and confirms them using higher timeframe analysis. Signals are debounced to reduce frequency, ensuring that only significant signals are considered.
Visualization
Background Coloring : The background color changes based on the buy and sell signals for easy visualization (user can toggle this on/off).
Signal Labels : Labels with arrows are plotted on the chart, showing the signal type (buy/sell), the entry price, TP, and SL levels.
Estimated ES Price Target : The estimated price target for ES futures is plotted on the chart.
Correlation and Beta Dashboard : A table displayed in the top right corner shows the current correlation and beta values for relative to the ES futures contract.
Customization
Traders can customize the following parameters to tailor the indicator to their specific needs:
Input Symbols : Change the symbols for BTC, DXY, CL, and ES.
Correlation Length : Adjust the number of periods used for calculating correlation.
Standard Deviation Length : Adjust the number of periods used for calculating standard deviation.
Lookback Period for Beta : Change the lookback period for calculating beta.
Volatility Filter Length : Modify the length of the volatility filter.
Volatility Threshold : Set a threshold for adjusting the lookback period based on volatility.
Plotting Options : Customize the colors and line widths of the plotted elements.
BEC (Bearish Elephant Candle)Description:
The Bearish Elephant Candle Indicator is designed to identify and signal potential short entry points based on the Bearish Elephant Candle pattern. This pattern is characterized by a large bearish candle, where the body (difference between open and close) is more than 70% of the entire range (difference between high and low), and the total range is greater than the average true range over a specified period. The indicator also plots a 20-period Exponential Moving Average (EMA) to help visualize the trend.
How It Works:
Bearish Elephant Candle Identification:
The indicator calculates the true range and the average true range (ATR) over a specified period (default is 20 periods).
A candle is identified as a Bearish Elephant Candle if the body is more than 70% of the entire range, and the total range exceeds the average true range.
Short Entry Signal:
When a Bearish Elephant Candle is identified, a short entry signal is plotted on the chart as a red downward label.
Exponential Moving Average (EMA):
A 20-period EMA is plotted on the chart to help users visualize the overall trend. The EMA can serve as an additional filter or exit point for trades.
Pros:
Simplicity: The Bearish Elephant Candle pattern is straightforward to understand and identify.
Visual Signals: The indicator provides clear visual signals for potential short entries, making it easy for traders to spot opportunities.
Trend Visualization: The inclusion of the EMA helps traders stay aligned with the overall trend, potentially improving the effectiveness of the signals.
Cons:
False Signals: Like any pattern-based indicator, it can generate false signals, especially in choppy or sideways markets.
No Confirmation: This version of the indicator does not include additional confirmation signals (e.g., from other indicators like MACD), which may reduce its reliability.
Limited Scope: The indicator focuses solely on bearish signals and does not provide long entry signals.
Best Way to Use It:
Trend Alignment: Use the 20-period EMA to ensure you are trading in the direction of the overall trend. For example, prioritize short signals when the price is below the EMA.
Combine with Other Indicators: Enhance the reliability of the signals by combining this indicator with other technical indicators (e.g., MACD, RSI) for additional confirmation.
Risk Management: Always use proper risk management techniques, such as stop-loss orders, to protect against adverse market movements. Consider placing stop-loss orders above the high of the Bearish Elephant Candle.
Market Context: Be mindful of the broader market context and avoid using the indicator in highly volatile or news-driven environments where patterns may be less reliable.
Multi-Timeframe MA Levels█ OVERVIEW
This Pine Script is an indicator for displaying multiple moving average (MA) levels from several timeframes on your TradingView charts. At the Realtime Bar (the right-most bar on your chart), it draws a line where the various moving averages currently are.
For example, it will show you where the 8 EMA on the 5 minute timeframe is on your 1-minute timeframe chart.
It derives its look and function from "Lepelle's Key Levels" and focuses on visualizing various moving averages to complement this indicator.
█ FEATURES
1 — Multi-Timeframe Analysis:
• The script allows traders to view moving averages from different timeframes on a single chart.
This multi-timeframe approach helps identify significant levels and trends that might not be apparent when looking at a single timeframe.
2 — Customization and Flexibility:
• Extensive input options for customizing the appearance of the lines (width, style, color) and labels (size, position, distance from price).
This ensures that the indicator can be tailored to individual preferences and charting styles.
3 — Multiple Moving Averages:
• Support for various types of moving averages (8 EMA, 21 EMA, 50 SMA, 100 SMA, 200 SMA).
Each moving average can be individually enabled or disabled for specific timeframes,
providing a flexible tool for technical analysis.
█ SETTINGS
Inputs for Styling:
• Controls the appearance of the lines and labels.
• Includes options for line width, line style, text size, distance from the candlesticks, label position,
and whether to hide prices or use shorthand notation.
Moving Averages Settings:
• Inputs to select different moving averages (8 EMA, 21 EMA, 50 SMA, 100 SMA, 200 SMA) and their corresponding colors.
• Boolean inputs to enable or disable these moving averages on various timeframes (2 min, 5 min, hourly, daily).
█ SUMMARY
In essence, this script provides a comprehensive tool for technical analysis by combining multi-timeframe moving averages into a single, customizable, and user-friendly indicator. It enhances traders' ability to make informed decisions by providing clear visual representations of key moving average levels across different timeframes.
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█ LIMITATIONS
This script is best used with a short timeframe such as 1-minute or lower because of the limitations of Multi-Timeframe scripts. Basically, the alternate timeframes in use should always be higher than the chart timeframe.
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█ NOTES
This indicator is intended to complement and be used with "Lepelle's Key Levels" indicator.
In that indictor settings, I recommend turning off the 5 Daily timeframe moving average levels in that script, if using this one.
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