Cerca negli script per "Fractal"
Isolated Peak and Bottom (Tuncer ŞENGÖZ) by KıvanÇ fr3762This Technique is created by Tuncer Şengöz @TuncerSengoz on twitter
An uptrend with higher highs might not make new highs everyday. So how could we define the end of an uptrend? How could we tell the difference between the end of an uptrend and a temporary correction? This isolated high/low technique aims to help us in this kind of situations.
We call the highest point of an uptrend until the particular day “an isolated Peak” and consider the lowest point of the day before as a signal level. If the signal level is broken in 2 days, we assume the uptrend to be over. If it is not broken in 2 days, the uptrend continues. The same technique also applies to a downtrend and the only difference would be the direction.
conversely it has the same logic of finding an end of a downtrend, called "Isolated Bottom" which can be considered the highest point of the day before as a signal level the same way.
The success rate of this technique is quite high (around 85%). There is no required term for this technique and it can be used in yearly, daily or ticker charts, because the market moves in fractals and repeats itself in every scale.
As in every technique, it might also give false signals in some situations like extreme volatility or emotional decisions of masses. However, it will be very helpful for us to indicate the direction of a trend.
Creator: Tuncer ŞENGÖZ @TuncerSengoz on twitter
Dynamic Range Channel [DW]This is an experimental study that utilizes Kaufman's Adaptive Moving Average and the McGinley Dynamic.
First, a fast and slow KAMA based McGinley Dynamic are calculated. The divergence between them is used to indicate wave direction.
The channel's bounds are calculated by taking the highest high and lowest low of the slow McGinley Dynamic over a specified channel period.
The dynamic midline is calculated by taking the mean of the highest and lowest values over the specified channel period.
Custom bar colors are included.
Also includes Williams Fractals for additional confirmation signals.
Dynamic Structure IndicatorThis is a dynamic structure indicator designed to map potential support and resistance zones (in all markets). It does this by looking back x amount of candles to identify major swing highs and lows on the specified reference timeframe, and then it draws a zone between the highest/lowest wick and the highest/lowest candle close across the chart until a new zone is created.
The settings are important because it gathers data from a separate reference timeframe, so sometimes it will map zones that aren’t really appropriate for lower timeframes. On lower timeframes (1Hr and under) I’d recommend setting the reference timeframe to your actual trading timeframe and increasing the lookback period to fine-tune the zone mapping. The script is set for 4 Hour forex charts by default.
Please note: the max zone option is disabled by default because it is different for every instrument, but this is a useful feature that I recommend using. Sometimes the indicator picks up huge gaps that aren’t really considered support or resistance zones. If this happens to you, use the zone size settings to invalidate huge (or tiny) zones. The zone size is in pips.
To be honest I didn’t get this indicator to be quite as accurate as I envisioned and it’s still a work in progress as I learn pine script, but this is the best I’ve been able to get it to function and with the right settings it works fairly well so I figured I might as well release this first version. Maybe someone with better skills than me can help refine it to more accurately identify major fractals and levels - if so, please get in touch! All traders should be able to identify their own major levels by eye anyway, but this script is intended to be a building block for future signal indicators I wish to develop.
Last of all - please don’t use this indicator to trade blindly! Often price will blast right through these zones and the zones aren’t always accurate. Remember that structure levels only work if they’re obvious to other traders, and always wait for confirmation signals that meet your trade plan rules before entering trades – especially reversals or counter-trend trades.
If you have any questions or tips to improve the script, feel free to leave a comment or private message me.
Enjoy, and good luck out there :)
- Matt.
MACD+STOCHASTICA simple strategy that use MACD and STOCHASTIC to give buy/sell signal. Use fractals to put stop loss
MACD + RSI TSA simple strategy that use EMAs convergence/divergence and RSI peeks to take position. Fractals are really useful to positioning your stop loss.
It works well on commodities and forex markets.
VDUB_REJECTION_SPIKE_V2VDUB_REJECTION_SPIKE_V2
Works on all time frames, Tested on 1min, I can't make it any faster
Hull MA
channel
channel 2
Pivot Channel
{RS} spike hunter
Modified Fractals V2
SilverHawk Trend Flow Part of SilverHawk Suite
This script is designed to be used with the SilverHawk Suite workflow (context → trigger → confirmation → execution).
It works standalone, but the highest accuracy comes from using the full suite together.
Where it fits:
• Role: Context
What it does:
Colors candles based on detected trend regime, so you trade with the prevailing direction and avoid fighting structure.
How to use:
• Bullish color: prefer long triggers only
• Bearish color: prefer short triggers only
• No clear trend / transition: stand down and wait for the suite trigger + confirmation
Visual Tip: (important)
If candles look “hidden”: Settings → Visual Order → Bring To Front
Alerts:
New Up Trend / New Down Trend alerts trigger on confirmed candles (non-repainting style).
Suite note:
For full workflow and loadouts, start with: “SilverHawk Suite — Start Here (Workflow Guide)” (free)
Credits / License
Based on PhantomFlow Trend Detector (MPL-2.0). This script remains MPL-2.0.
Smart Money Concepts - Absorption Smart Money Concepts - Absorption (SMC-ABS)
Absorption event detector using split-volume VWMA ribbons, entropy filtering, and elasticity validation
Overview
This indicator highlights potential absorption/defense events: moments where price touches a volume-weighted band and then rejects, while additional filters confirm that market conditions are not random/noisy.
What it plots
• Energy ribbons (bands): two split-volume VWMA ribbon sets - Buy-weighted (cyan) and Sell-weighted (magma).
• ABS markers: printed when touch + rejection + validation conditions are met (see Logic section).
• Dashboard (HUD): real-time metrics such as price/volume z-scores, delta, entropy state, and resonance momentum states.
Core logic
1) Volume engine
The script builds Buy Volume and Sell Volume series using one of two modes:
• Geometry (candle-range split): estimates buy/sell participation from the close position within the candle range.
• Intrabar (precise): uses lower-timeframe up/down volume to derive buy/sell flows when data is available.
2) Split-VWMA resonance score
For multiple periods (5, 10, 20, 30, 40, 50), the script computes:
• A standard SMA of price.
• A Buy-weighted VWMA of price (weighted by Buy Volume).
• A Sell-weighted VWMA of price (weighted by Sell Volume).
Resonance is derived from the normalized divergence between the SMA and the split VWMAs, aggregated across the available periods.
3) Validation filters
Signals can be filtered by the following components (each toggleable):
• Volume-weighted entropy: a fractal-efficiency style disorder metric (TR-sum vs range) adjusted by relative volume; high entropy blocks signals.
• Momentum alignment (resonance velocity) : direction filter requiring positive velocity for buy events and negative velocity for sell events.
• Elasticity (recoil vs penetration): rejection quality check based on the bounce-back strength relative to the penetration depth into the fast band.
Absorption event conditions (ABS markers)
ABS markers are generated using the fastest ribbon band (length 5) for the touch/rejection logic:
• Buy absorption: low touches/penetrates the Buy band and the candle closes back above it, with filters passing.
• Sell absorption: high touches/penetrates the Sell band and the candle closes back below it, with filters passing.
Note: acceleration/deceleration is displayed in the HUD as a state; the primary directional filter is the resonance velocity.
Settings
• Volume Model: choose Geometry or Intrabar.
• Intrabar LTF: lower timeframe used by the Intrabar model (only applies when Intrabar is selected).
• Global Lookback: lookback window used for z-score statistics and related calculations.
• Quantum Filters: toggles and thresholds for entropy, momentum alignment, and elasticity validation.
• Dashboard Settings :/ Energy Ribbons / Absorption Events: controls for visuals and filtering behavior.
Usage notes and limitations
• Signals are most reliable after candle close. On the forming candle, conditions can change until the bar closes.
• Results depend on the availability and quality of volume data for the selected symbol and exchange.
• The Geometry mode is an estimate based on candle structure; it is not tick-accurate order flow.
• Terms such as “quantum” and “physics” are metaphorical labels for statistical filters and validation heuristics.
Disclaimer
This tool is provided for analytical and educational use only. It does not constitute investment advice. Trading involves risk.
Important note about Intrabar data and TradingView plan limits
This indicator is volume-dependent. When using the Intrabar model, the best results typically come from very low intrabar timeframes such as 1 tick or 1 second (if your symbol and data feed support it). Please check your TradingView subscription plan and data entitlements - access to 1-second/1-tick lower timeframes is commonly restricted to higher-tier plans (often referred to as Premium/Ultra tiers). If intrabar data is not available, the script falls back to relative buy/sell volume estimation (Geometry mode), and results may be less precise.
Adaptive Trend-Based Fib Extension + TrendlinesThis advanced analysis tool is designed to take the guesswork out of Fibonacci trading. By combining Adaptive Fibonacci Extensions with multi-method Pivot Detection, Dynamic Trendlines, and Horizontal Support/Resistance, this indicator provides a comprehensive roadmap for any market trend.
Learn volume trading - @pricevolumetraders
Key Features
Adaptive Fibonacci Engine: Unlike static tools, this indicator uses an ATR-based adaptive factor to adjust extension levels according to current market volatility.
Smart Trend Detection: Automatically identifies trend direction using EMA cross-overs or Higher High/Higher Low sequences to determine whether to plot Bullish or Bearish extensions.
Multi-Method Pivots: Choose from six different pivot detection methods, including Volume-Based, Fractal, ATR-Based, and Long Wick detection, to suit your specific trading style.
Automated Trendlines & S/R: High-probability diagonal trendlines and horizontal S/R levels are drawn only when they meet a minimum "touch" requirement and volume confirmation.
Institutional Zones: Highlights the "Golden Zone" between the 127.2% and 161.8% extension levels, where trends often reach exhaustion or find major targets.
How to Use
Trend Alignment: Use the built-in Dashboard to quickly identify the current trend (Bull/Bear) and RSI momentum.
The 3-Point Setup: The indicator automatically finds Point 1 (Trend Start), Point 2 (Impulse End), and Point 3 (Retracement/Last Touch) to project future price targets.
Entry Confirmation: Look for price action near the 61.8% or 78.6% Retracement levels for high-probability entries in the direction of the trend.
Targeting: Use the extension levels (100%, 127.2%, 161.8%) as your primary Take Profit zones.
Confluence: The strongest setups occur when a Fibonacci level aligns perfectly with a Horizontal S/R line or a Diagonal Trendline.
Technical Settings
Pivot Settings: Adjust 'Left' and 'Right' bars to change the sensitivity of swing high/low detection.
Fib Timeframe: You can anchor Fibonacci levels to a higher timeframe (e.g., 1-hour levels) while trading on a lower timeframe (e.g., 5-minute).
Volume Multiplier: Filter for horizontal levels that were formed with significant institutional volume.
Disclaimer: Trading involves significant risk. This tool is for educational and analytical purposes only and should be used in conjunction with a complete trading plan.
A program written by a beginner# TXF Choppy Market Detector (Whipsaw Filter)
## Introduction
This project is a technical indicator developed in **Pine Script v5**, specifically optimized for **Taiwan Index Futures (TXF)** intraday trading.
The TXF market is known for its frequent periods of low-volatility consolidation following sharp moves, often resulting in "whipsaws" (double-loss scenarios for trend followers). This script utilizes **volatility analysis** and **trend efficiency metrics** to filter out noise and detect potential "Stop Hunting" or "Liquidity Sweep" setups within range-bound markets.
## Methodology & Algorithms
The strategy operates on the principle of **Mean Reversion**, combining two core components:
### 1. Market Regime Filter: Choppiness Index (CHOP)
We use the Choppiness Index (originally developed by E.W. Dreiss) to determine if the market is trending or consolidating based on **Fractal Dimension** theory.
* **Logic**:
The index ranges from 0 to 100. Higher values indicate low trend efficiency (consolidation), while lower values indicate strong directional trends.
* **Condition**: `CHOP > Threshold` (Default: 50).
* **Application**: When this condition is met, the background turns **gray**, signaling a "No-Trade Zone" for trend strategies and activating the Mean Reversion logic.
### 2. Whipsaw Detection: Bollinger Bands
Bollinger Bands are used to define the dynamic statistical extremities of price action.
* **Logic**:
We identify **Fakeouts** (False Breakouts) that occur specifically during the choppy regime identified above. This is often where institutional traders hunt for liquidity (stops) before reversing the price.
#### Signal Algorithms (Pseudocode)
**A. Bull Trap (Washout High)**
A false upside breakout designed to trap long traders.
```pine
Condition:
1. Is_Choppy == true (Market is sideways)
2. High > Upper_Bollinger_Band (Price pierces the upper band)
3. Close < Upper_Bollinger_Band (Price fails to hold and closes back inside)
50-Point Psych Levels (Multiples of 50)50-Point Psychological Levels (Multiples of 50)
This indicator plots static psychological price levels at fixed point intervals (default every 50 points) across the chart. These levels are commonly watched by traders as natural areas of reaction, balance, support, and resistance, especially on index futures such as NQ, ES, YM, and RTY.
The script automatically centers the levels around the current market price and draws them across a configurable range above and below price. All levels extend across the entire chart and are drawn once only, keeping the display clean and preventing redraw lag.
Key Features
Plots horizontal levels at fixed point spacing (default: 50 points)
Automatically anchors around the latest price
Configurable range above and below price
Customizable line color, width, and style
Lightweight, non-repainting, static reference levels
Best Use Cases
Identifying psychological support and resistance
Confluence with VWAP, EMA structure, ORB levels, and volume
Futures trading (NQ, ES, YM, RTY), indexes, and large-tick instruments
CS Trendline ProTitle: CS Trendline Pro
Description:
CS Trendline Pro is a comprehensive scalping and day-trading system designed to filter out noise and identify high-probability breakout setups. It combines the structural precision of Fractal Trendlines with a robust Dual-EMA Filter, visualized through an intuitive "Traffic Light" color system.
This tool is specifically engineered for traders who want to trade Trendline Breakouts but need a safety mechanism to avoid false signals (fakeouts) and counter-trend traps.
🚦 How the "Traffic Light" Logic Works
The core feature of this script is the dynamic coloring of the candles, which acts as a visual filter for your entries:
🟢 GREEN Zone (Safe Buy):
Condition: A Bullish Trendline Breakout has occurred AND the price is holding ABOVE the EMA 30 (Yellow Line).
Meaning: Momentum is bullish, and you are in a safe zone to look for Long entries.
🔴 RED Zone (Safe Sell):
Condition: A Bearish Trendline Breakout has occurred AND the price is holding BELOW the EMA 30 (Yellow Line).
Meaning: Momentum is bearish, and you are in a safe zone to look for Short entries.
⚪ GRAY Zone (No Trade / Wait):
Condition: A breakout occurred, but the price is on the "wrong side" of the EMA 30.
Meaning: Indecision. The market structure is conflicting with the immediate momentum. It is recommended to stay out until the color changes.
🛠️ Key Features
** automated Trendlines:** Automatically draws Support and Resistance dynamic trendlines based on pivot points (LuxAlgo engine).
Dual EMA Filter:
EMA 30 (Yellow): Acts as the immediate "Safe Zone" filter.
EMA 200 (White): Displays the macro trend. (Pro Tip: Only take Green signals if price is above the White line).
CS-BUY / CS-SELL Labels: Clear text markers appear exactly when a valid breakout occurs.
Customizable: Adjustable sensitivity (Length), EMA periods, and Slope calculation methods (ATR, Stdev, Linreg).
📉 How to Trade with CS Trendline Pro
For Scalping (5m / 15m):
Identify the Main Trend: Look at the White EMA (200).
If Price > EMA 200 → Focus on BUY signals.
If Price < EMA 200 → Focus on SELL signals.
Wait for the Signal:
Wait for the candle to turn Teal (Green) or Red.
Ensure the candle closes with the new color.
Risk Management:
Place Stop Loss below the recent swing low (for buys) or above the swing high (for sells).
Target a 1.5 Risk/Reward ratio or trail your stop using the EMA 30.
⚠️ Important Note on Backpainting
This indicator uses pivot points to draw trendlines. By nature, a pivot point can only be confirmed after a few bars have passed (Lag).
Backpaint Setting (Default ON): Keeps your historical chart clean by connecting the exact pivot points in the past.
Real-Time Behavior: In live trading, the trendline and signal will appear once the pivot is confirmed (based on your 'Length' setting). This is normal behavior for any trendline script.
Settings Recommended:
5-Minute Chart: Length 10 or 14.
15-Minute Chart: Length 14.
Enjoy trading with precision! ~ CS Trading
Risk & Order Size Calculatorhello,
this will calculate the risk and you may change the script as per your risk appetite, my advise do not risk more than 2% of your capital.
Thank you
Wavelet Candle Constructor (Inc. Morlet) 2Here is the detailed description of the **Wavelet Candle** construction principles based on the code provided.
This indicator is not a simple smoothing mechanism (like a Moving Average). It utilizes the **Discrete Wavelet Transform (DWT)**, specifically the Stationary variant (SWT / à Trous Algorithm), to separate "noise" (high frequencies) from the "trend" (low frequencies).
Here is how it works step-by-step:
###1. The Wavelet Kernel (Coefficients)The heart of the algorithm lies in the coefficients (the `h` array in the `get_coeffs` function). Each wavelet type represents a different set of mathematical weights that define how price data is analyzed:
* **Haar:** The simplest wavelet. It acts like a simple average of neighboring candles. It reacts quickly but produces a "boxy" or "jagged" output.
* **Daubechies 4:** An asymmetric wavelet. It is better at detecting sudden trend changes and the fractal structure of the market, though it introduces a slight phase shift.
* **Symlet / Coiflet:** More symmetric than Daubechies. They attempt to minimize lag (phase shift) while maintaining smoothness.
* **Morlet (Gaussian):** Implemented in this code as a Gaussian approximation (bell curve). It provides the smoothest, most "organic" effect, ideal for filtering noise without jagged edges.
###2. The Convolution EngineInstead of a simple average, the code performs a mathematical operation called **convolution**:
For every candle on the chart, the algorithm takes past prices, multiplies them by the Wavelet Kernel weights, and sums them up. This acts as a **digital low-pass filter**—it allows the main price movements to pass through while cutting out the noise.
###3. The "à Trous" Algorithm (Stationary Wavelet Transform)This is the key difference between this indicator and standard data compression.
In a classic wavelet transform, every second data point is usually discarded (downsampling). Here, the **Stationary** approach is used:
* **Level 1:** Convolution every **1** candle.
* **Level 2:** Convolution every **2** candles (skipping one in between).
* **Level 3:** Convolution every **4** candles.
* **Level 4:** Convolution every **8** candles.
Because of this, **we do not lose time resolution**. The Wavelet Candle is drawn exactly where the original candle is, but it represents the trend structure from a broader perspective. The higher the `Decomposition Level`, the deeper the denoising (looking at a wider context).
###4. Independent OHLC ProcessingThe algorithm processes each component of the candle separately:
1. Filters the **Open** series.
2. Filters the **High** series.
3. Filters the **Low** series.
4. Filters the **Close** series.
This results in four smoothed curves: `w_open`, `w_high`, `w_low`, `w_close`.
###5. Geometric Reconstruction (Logic Repair)Since each price series is filtered independently, the mathematics can sometimes lead to physically impossible situations (e.g., the smoothed `Low` being higher than the smoothed `High`).
The code includes a repair section:
```pinescript
real_high = math.max(w_high, w_low)
real_high := math.max(real_high, math.max(w_open, w_close))
// Same logic for Low (math.min)
```
This guarantees that the final Wavelet Candle always has a valid construction: wicks encapsulate the body, and the `High` is strictly the highest point.
---
###Summary of ApplicationThis construction makes the Wavelet Candle an **excellent trend-following tool**.
* If the candle is **green**, it means that after filtering the noise (according to the selected wavelet), the market energy is bullish.
* If it is **red**, the energy is bearish.
* The wicks show volatility that exists within the bounds of the selected decomposition level.
Here is a descriptive comparison of **Wavelet Candles** against other popular chart types. As requested, this is a narrative explanation focusing on the differences in mechanics, interpretation philosophy, and the specific pros and cons of each approach.
---
###1. Wavelet Candles vs. Standard (Japanese) CandlesThis is a clash between "the raw truth" and "mathematical interpretation." Standard Japanese candles display raw market data—exactly what happened on the exchange. Wavelet Candles are a synthetic image created by a signal processor.
**Differences and Philosophy:**
A standard candle is full of emotion and noise. Every single price tick impacts its shape. The Wavelet Candle treats this noise as interference that must be removed to reveal the true energy of the trend. Wavelets decompose the price, reject high frequencies (noise), and reconstruct the candle using only low frequencies (the trend).
* **Wavelet Advantages:** The main advantage is clarity. Where a standard chart shows a series of confusing candles (e.g., a long green one, followed by a short red one, then a doji), the Wavelet Candle often draws a smooth, uniform wave in a single color. This makes it psychologically easier to hold a position and ignore temporary pullbacks.
* **Wavelet Disadvantages:** The biggest drawback is the loss of price precision. The Open, Close, High, and Low values on a Wavelet candle are calculated, not real. You **cannot** place Stop Loss orders or enter trades based on these levels, as the actual market price might be in a completely different place than the smoothed candle suggests. They also introduce lag, which depends on the chosen wavelet—whereas a standard candle reacts instantly.
###2. Wavelet Candles vs. Heikin AshiThese are close cousins, but they share very different "DNA." Both methods aim to smooth the trend, but they achieve it differently.
**Differences and Philosophy:**
Heikin Ashi (HA) is based on a simple recursive arithmetic average. The current HA candle depends on the previous one, making it react linearly.
The Wavelet Candle uses **convolution**. This means the shape of the current candle depends on a "window" (group) of past candles multiplied by weights (Gaussian curve, Daubechies, etc.). This results in a more "organic" and elastic reaction.
* **Wavelet Advantages:** Wavelets are highly customizable. With Heikin Ashi, you are stuck with one algorithm. With Wavelet Candles, you can change the kernel to "Haar" for a fast (boxy) reaction or "Morlet" for an ultra-smooth, wave-like effect. Wavelets handle the separation of market cycles better than simple HA averaging, which can generate many false color flips during consolidation.
* **Wavelet Disadvantages:** They are computationally much more complex and harder to understand intuitively ("Why is this candle red if the price is going up?"). In strong, vertical breakouts (pumps), Heikin Ashi often "chases" the price faster, whereas deep wavelet decomposition (High Level) may show more inertia and change color more slowly.
###3. Wavelet Candles vs. RenkoThis compares two different dimensions: Time vs. Price.
**Differences and Philosophy:**
Renko completely ignores time. A new brick is formed only when the price moves by a specific amount. If the market stands still for 5 hours, nothing happens on a Renko chart.
The Wavelet Candle is **time-synchronous**. If the market stands still for 5 hours, the Wavelet algorithm will draw a series of flat, small candles (the "wavelet decays").
* **Wavelet Advantages:** They preserve the context of time, which is crucial for traders who consider trading sessions (London/New York) or macroeconomic data releases. On a wavelet chart, you can see when volatility drops (candles become small), whereas Renko hides periods of stagnation, which can be misleading for options traders or intraday strategies.
* **Wavelet Disadvantages:** In sideways trends (chop), Wavelet Candles—despite the smoothing—will still draw a "snake" that flips colors (unless you set a very high decomposition level). Renko can remain perfectly clean and static during the same period, not drawing any new bricks, which for many traders is the ultimate filter against overtrading in a flat market.
###Summary**Wavelet Candles** are a tool for the analyst who wants to visualize the **structure of the wave and market cycle**, accepting some lag in exchange for noise reduction, but without giving up the time axis (like in Renko) or relying on simple averaging (like in Heikin Ashi). It serves best as a "roadmap" for the trend rather than a "sniper scope" for precise entries.
Quantum Darvas BoxesQuantum Darvas Boxes - The Modern Evolution
The original Darvas Box methodology, conceived by Nicolas Darvas in the 1950s, revolutionized breakout trading by identifying consolidation phases as "boxes." However, modern markets move with algorithmic speed and fractal volatility that often trigger false breakouts. Quantum Darvas Boxes were designed not as a nostalgic tribute, but as a computational upgrade. By anchoring boxes to volatility-adjusted boundaries rather than raw highs/lows, and introducing adaptive stability mechanisms, this indicator transforms a classic discretionary tool into a systematic, noise-filtered engine.
Description & Improvements
Quantum Darvas Boxes solve the three fatal flaws of the original: false breakouts, arbitrary box sizing, and lack of confirmation. Instead of drawing boxes at exact recent highs/lows, it creates volatility-buffered boundaries using ATR, ensuring breakouts require meaningful momentum. The boxes remain anchored until a confirmed close beyond the buffer occurs, preventing the constant redrawing that plagued traditional Darvas implementations. Built-in volume and RSI filters add discretionary-grade confirmation to pure price action. Visually, the system presents as a stable, semi-transparent blue zone between red (resistance) and lime (support) lines, with clear triangle signals appearing only on validated breakouts.
How It's Based on Darvas
The core philosophy remains true to Darvas' 1950s methodology:
Identify Consolidation: Finds price ranges where the market consolidates
Draw Box: Creates a "box" representing the accumulation zone
Breakout Trading: Enters when price breaks out of the box with momentum
Volatility-Adjusted Boundaries
Original: Boxes at exact highs/lows → prone to false breakouts
QDB: Boxes set at High - (ATR × Multiplier) and Low + (ATR × Multiplier)
→ Breakouts require meaningful momentum, not just price tags
→ Adapts to different volatility regimes
Signal Logic:
Long: Close above box top, previous close was inside box
Short: Close below box bottom, previous close was inside box
Ideal Settings:
For daily charts, use lookback=13 and mult=2.4.
For intraday (1H-4H), reduce to lookback=8 and mult=1.8. Enable volume filter in trending markets and RSI filter in ranging conditions.
Trade Execution: Enter long on the green triangle below the bar following a close above the red top line; enter short on the red triangle above the bar after a close below the lime bottom line. The background glow provides immediate visual confirmation.
Risk Management: Set stops at the opposite box boundary. The volatility multiplier inherently calculates a risk buffer—larger multipliers create wider, higher-conviction boxes; smaller multipliers produce more frequent, sensitive signals. This system excels in trending markets and provides clear exit/reversal points, transforming Darvas's original speculation into a quantified, repeatable edge.
ORB Strategy: Extensions & Custom SL (EOD & Live Lines)That's a great request. Since you've now built a complex Pine Script Strategy with several user-configurable risk management, targeting, and exit options, the description should focus on the systematic rules used for entering, managing, and exiting trades.
Here is a clear, written description of the trading strategy you have built:
Trading Strategy Description: ORB Extension Breakout with Custom Stop, Live Tracking, and EOD Exit
This strategy is a systematic, momentum-based system designed for intraday trading. It operates on the principle of an Opening Range Breakout (ORB), utilizing the initial market consolidation to project high-probability targets, while offering multiple methods for managing risk and enforcing a mandatory end-of-day closure.
1. Market Identification (The Opening Range)
The strategy first defines the market's initial boundaries and volatility:
Session Window: The strategy calculates the Opening Range (OR) over a user-defined time period (default: 9:30 AM to 10:30 AM New York Time).
ORB Levels: Two key price levels are established and locked once the time window closes:
Wick High/Low: The absolute highest and lowest prices of the session. These serve as the entry trigger lines.
Body High/Low (Shaded Range): The highest and lowest open/close prices of the session. The height of this range is used as the basis for calculating all targets and stops.
2. Entry Rule (The Breakout)
The strategy waits passively for a breakout that confirms direction and ensures the move has not yet reached its immediate target.
Trigger Condition: A trade is signaled when a candle closes either:
Above the Wick High (for a Long entry).
Below the Wick Low (for a Short entry).
Constraint (Fresh Breakout): The entry is invalidated if the breakout candle's price action (High for Long, Low for Short) has already touched or surpassed the projected Take Profit (0.5 Extension) level before the candle closes.
Execution: The entry is a Market Order executed on the candle that meets the trigger conditions, subject to a user-defined Entry Delay (default 0 bars).
Direction Control: The user can select to trade Long Only, Short Only, or Both.
3. Exit and Risk Management
All trades are placed with simultaneous Take Profit and Stop Loss orders (a bracket order) upon entry.
A. Take Profit (TP)
The Take Profit is set at the 0.5 Extension of the Shaded Range (Body Range).
Calculation: The distance from the Body High/Low to the TP level is exactly 50% of the total height of the Shaded Range.
B. Stop Loss (SL)
The Stop Loss is dynamically calculated based on a user-selected method for risk control:
Range 0.5 (Body Range): The SL is placed an equal distance (0.5 times the Body Range height) outside the opposite side of the Body Range.
ATR Multiple: The Stop Loss distance is calculated as a user-defined Multiplier times the Average True Range (ATR).
Recent Swing Low/High: The Stop Loss is placed based on a structural low (for Long) or high (for Short) within a user-defined lookback period.
C. End-of-Day (EOD) Exit
Any open position is forced closed at the market price if it is still open when the user-defined closing time (default: 16:00 HHMM) is reached. This prevents carrying intraday risk overnight.
4. Visualization
The strategy includes comprehensive visual cues for analysis:
ORB Drawing: Displays the Wick High/Low and the shaded Body Range.
Breakout Signals: Highlights the specific bar where the validated entry signal occurs.
Closed Trades: Draws persistent lines for the Entry and Exit prices of the last few closed trades.
Live Open Trades: Draws persistent lines for the current Entry Price, active Take Profit Level, and active Stop Loss Level for any open position.
