Sentiment OscillatorPrice moves when there are more market takers than there are market makers at a certain price (i.e. price moves up when there are more market buys than limit sells and vice versa). The idea of this indicator is to show the ratio between market takers and market makers in a way that is intuitive to technical analysis methods, and hopefully revealing the overall sentiment of the market in doing so. You can use it in the same way you would other oscillators (histogram crossing zero, divergences, etc). The main difference between this and most volume-weighted indicators is that the price is divided by volume instead of multiplied by it, thus giving you a rough idea of how much "effort" it took to move the price. My hypothesis is that when more volume is needed to move the price, that means bulls and bears are not in agreement of what the "fair price" should be for an asset (e.g. if the candle closes only a bit higher than its open but there's a huge spike in volume, that tells you that a majority of the market are starting to think the price is too high and they've started selling).
Methods of Calculation
1. Price Change Per Volume
The main method this indicator uses to reveal market sentiment is by comparing price change to the volume of trades in a bar.
You will see this calculation plotted in its most basic form by ticking the "Show Bar per Bar Change/Volume" box in the inputs dialog. I personally found that the plots were too noisy and cannot be used in real time reliably due to the fact that there is not much volume at the open of a new bar. I decided to leave in the option to use this method, in case you'd like to experiment with it or get a better grasp of how the indicator works.
2. Exponential Moving Averages
In my quest to smooth out the plotted data, I experimented with exponential moving averages. Applying an EMA on the change per volume data did smooth it out a bit, but still left in a lot of noise. So I worked around it by applying the EMA to the price change first, and then dividing it by the EMA of the volume. The term I use for the result of this calculation is "Market Sentiment" (do let me know if you have a better-fitting term for it ;-)), and I have kept it as an option that you can use in the way you would use other oscillators like CMF, OBV, etc. This option is unticked by default.
3. MACD
I left "Market Sentiment" unchecked as the default option because I thought an easier way to use this indicator would be as a momentum indicator like the MACD . So that's what I turned it into! I applied another EMA on the Market Sentiment, added a slower EMA to subtract from the first, and now we have a MACD line. I added a signal line to subtract from the MACD , and the result is plotted as a histogram... ish . I used area instead of columns for plot style so you don't get confused when comparing with a regular MACD indicator, but you can always change it if an actual histogram is more your taste.
The "histogram" is the main gauge of sentiment change momentum and it is easiest to use, that is why it is the only calculation plotted by default.
Methods of Use
As I have mentioned before, you can use this as you would other oscillators.
-The easiest way to use this indicator is with the Momentum histogram, where crosses over 0 indicate increasing bullish sentiment, and crosses below 0 indicate increasing bearish sentiment. You may also spot occasional divergences with the histogram.
-For the Market Sentiment option, the easiest way to use it is to look for divergences.
-And if you use the "Price Change per Volume of Each Bar", well... I honestly don't know. I guess divergences would be apparent towards the close of a bar, but in realtime, I don't recommend you use this. Maybe if you'd like to study the market movement, looking at historical data and comparing price, volume , and Change per Volume of each bar would come in handy in a pseudo-tape-reading kind of way.
Anyway, that's my explanation of this indicator. The default values were tested on BTC/USDT (Binance) 4h with decent results. You'll have to adjust the parameters for different markets and timeframes.
I have published this as a strategy so you can test out how the indicator performs as you're tweaking the parameters.
I'm aware that the code might not be the cleanest as I have only started learning pine (and code in general) for about a month, so any suggestions to improve the script would be appreciated!
Good luck and happy trading :-)
Cerca negli script per "MACD背离"
Combo Backtest 123 Reversal & MACD Crossover This is combo strategies for get a cumulative signal.
First strategy
This System was created from the Book "How I Tripled My Money In The
Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies.
The strategy buys at market, if close price is higher than the previous close
during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50.
The strategy sells at market, if close price is lower than the previous close price
during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.
Second strategy
MACD – Moving Average Convergence Divergence. The MACD is calculated
by subtracting a 26-day moving average of a security's price from a
12-day moving average of its price. The result is an indicator that
oscillates above and below zero. When the MACD is above zero, it means
the 12-day moving average is higher than the 26-day moving average.
This is bullish as it shows that current expectations (i.e., the 12-day
moving average) are more bullish than previous expectations (i.e., the
26-day average). This implies a bullish, or upward, shift in the supply/demand
lines. When the MACD falls below zero, it means that the 12-day moving average
is less than the 26-day moving average, implying a bearish shift in the
supply/demand lines.
A 9-day moving average of the MACD (not of the security's price) is usually
plotted on top of the MACD indicator. This line is referred to as the "signal"
line. The signal line anticipates the convergence of the two moving averages
(i.e., the movement of the MACD toward the zero line).
Let's consider the rational behind this technique. The MACD is the difference
between two moving averages of price. When the shorter-term moving average rises
above the longer-term moving average (i.e., the MACD rises above zero), it means
that investor expectations are becoming more bullish (i.e., there has been an
upward shift in the supply/demand lines). By plotting a 9-day moving average of
the MACD, we can see the changing of expectations (i.e., the shifting of the
supply/demand lines) as they occur.
WARNING:
- For purpose educate only
- This script to change bars colors.
[blackcat] L1 Another Improved MACD IndicatorLevel: 1
Background
The MACD is a superior derivative of moving average crossovers and was developed by Gerald Appel in 1979 as a market timing tool. MACD uses two exponential moving averages with different bar periods, which are then subtracted to form what Mr. Appel calls the Fast Line. A 9-period moving average of the fast line creates the slow line.
Function
L1 Another Improved MACD Indicator improves MACD histogram by customized an algorithm and add three levels of long entry alerts derived from ema ().
Key Signal
diff --> classic MACD diff fast line in white
dea --> classic MACD dea slow line in yellow
macd --> classic difference histogram,but I did not use it directly in the plot.
macd1 --> ema3 of macd
Pros and Cons
Pros:
1. more clear sub level trend change with new histograms
Cons:
1. need sophisticated knowledge of MACD to use this well
2. this still requires a lot of MACD experience to obtain reliable trading signals
Remarks
Another improved MACD on histogram
Readme
In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.
The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.
Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.
Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.
Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.
Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.
Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.
MACRS {Lite}This is the open-source stripped down version of the full-featured RSI-MACD indicator (MACRS), with the ADO and the option to filter out weekend price action removed.
The main oscillator is the RSI modulated by the MACD (default). The RSI mode can be disabled to revert to a normal MACD oscillator for the main oscillator.
When the main oscillator (thicker line) is > 0, it is green; and if it is < 0, it is red.
The MACD can be re-scaled and whenever its value > 100, a background fill between the oscillator and the zeroline appear to indicates overbought condition; and < -100 indicates oversold condition. The user can tweak the scaling factor to optimize this for a given chart and timeframe.
A (thick transparent light blue) volume oscillator is also provided. An increase in volume trend provides confirmation of (or solidifies) the movements in the main oscillator over that period. A falling volume oscillator trend raises doubts on the main oscillator trend, and hints of the possibility of a counter-trend (also look at the secondary ADO oscillator for clues).
The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
This indicator and script is free for the TV community to use.
100PipsADay third screen / triple screen strategy MACD and W%RThird Screen Strategy
This particular script is specifically designed around this strategy. D1 MACD & H1 Williams %.
I coded the script in a way that you automatically get the signal that is calculated taking in consideration both the indicators (macd and w%R)
Green means that the daily MACD histogram is above 0 (crowd is bullish) but w%R shows that momentarily there is a lower price (W%R is oversold),
Red is vice versa.
Quote from original post :
Below is how I would normally take a trade using my strategy.
As you can see below in my chart, I look on the D1 chart for the MACD to cross over.
Once it is clear that it has crossed over, I will enter positions on the H1 chart using Williams %.
end quote.
This Script i coded in a way that automatically account for both the indicators, so you don't have to switch between timeframes.
3 Important rules :
To get the indicator set correctly you need to use on 1 Hour time frame
-----------------------
You should wait 6 hours when signal appear to open an other position on the same pair
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I coded an alarm that gets triggered when the pair meet both condition (when the bar and/or the background is green) so you can just set it by right clicking the indicator and be relaxed!
Italiano :
Strategia Third screen
Questo particolare script è specificamente progettato attorno a questa strategia. D1 MACD e H1 Williams%.
Ho codificato lo script in modo da ottenere automaticamente il segnale calcolato tenendo conto di entrambi gli indicatori (macd e w% R)
Verde indica che l'istogramma MACD giornaliero è superiore a 0 (la folla è rialzista) ma w% R mostra che momentaneamente esiste un prezzo inferiore (W% R è sotto il livello di oversold),
Il rosso è viceversa.
Ho codificato questo script in un modo che tiene conto automaticamente di entrambi gli indicatori, quindi non è necessario passare da un intervallo di tempo all'altro.
3 Regole importanti:
Per impostare correttamente l'indicatore è necessario utilizzare nel periodo di 1 ora
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Dovresti aspettare 6 ore una volta che arriva il segnale per aprire un'altra posizione sullo stessa moneta
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Ho codificato un allarme che viene attivato quando sono soddisfatte entrambe le condizioni (ossia quando lo sfondo è verde), quindi puoi semplicemente impostarlo facendo clic con il pulsante destro del mouse sull'indicatore ed essere rilassato!
Physics MACD double// Physics MACD double 12, 26 and 5, 15
// with rsi and cci rise green on bottom
// with macd 15 rising above 0 with macd 26 below 0 green on top
// with macd 15 below 0 and macd 26 above 0 red on top
// CCI low and increasing lime bottom
// low and high volume change red green bottom circle
// use with Physics Bollinger Bands
Candlestick Trend Indicator v0.5 by JustUncleLRequested Update to this Indicator alert project. In this update I have added the option to be able select which Price Action candles you want included in the display and the generated alarm Alert. Other changes also included in this update:
Also added a Price Action candle for "Last Fractal S/R Break", this also a good continuation indication.
Added option to select a different moving average types for directional MA line.
Modified some default settings, using HullMA instead of Zero Lag EMA and standard MACD settings(12,26,9).
Description:
This is a trend following indicator and alert for Binary Options based on Candlestick patterns and trend line -
NOTE: original system was a forex trading system.
This code combines a number of indicators to create an overall trading strategy.
The indicator recognises and displays some useful candle named defined patterns that are used to support trend continuation:
Bearish + Bullish PinBars
Dark Cloud Cover
Piecing Line
Bullish + Bearish Harami
Bullish + Bearish Engulfing Candle
Bullish + Bearish Last Fractal S/R break
Also recognises main Price Action candles from ChrisMoody (CM), the four(4) price action patterns are colored coded bars:
Yellow = Inside Bar - breakout/continuance
Orange = Outside Bar - breakout/continuance
Aqua/Fuschia = Up/Down Shaved Bars - Buying/Selling pressure
Red/Green = Possible reversal PinBars - Reverse Down / reverse Up
The highlighted candles (maroon and darker green) represent the defined PA patterns that have been confirmed following the current trend direction that is indicated by the Hull MA(20) line (can select a different type of MA, or even disable) and confirmed by MACD direction (can be disabled). The confirmed Alerts are indication by green (buy) and red (sell) dots at the bottom of the chart. An alert is generated from this selection for the alert condition of the alarming system.
The fractal upper/lower break lines are also draw, if the (optional) last fractal break line is broken by a highlighted bar then this indicates a stronger trend conformation.
The MACD indicator MACD DEUTER 2 colour(12,26,9) you can visually see the MACD histogram colours with MACD direction - needs "MACD DEUTER 2 colour" indicator.
This multi-indicator set up is suitable for 1hr, 4hr and daily charts with 1-4 candle expiry.
References and Inspiration from:
Fractal Levels by RicardoSantos
Almost Zero Lag EMA
Candlestick Patterns With EMA by rmwaddelljr
CM_Price-Action-Bars by ChrisMoody
www.forexstrategiesresources.com
"Scalp Jockey - MTF MA Cross Visual Strategizer by JayRogers"
MTF Trend Heatmap (EMA + MACD) by PierreKMTF Trend Heatmap (EMA + MACD) by PierreK
This indicator offers a compact and clear heatmap that visualizes the current trend status of an instrument across multiple key timeframes. Based on the combination of the EMA 50 and EMA 200, as well as the MACD indicator, the heatmap shows whether the trend is bullish (green dot) or bearish (red dot) on the 1-minute, 5-minute, 15-minute, 1-hour, 4-hour, and 1-day timeframes.
Highlights:
• Multi-timeframe analysis at a glance - perfect for traders who want to keep an eye on multiple timeframes.
• Clearly defined trend logic: EMA 50 > EMA 200 and MACD above signal and zero line.
‣ Simple color scheme for quick trend decisions.
Optimized for all markets and assets (forex, stocks, cryptocurrencies, etc.).
• Chart overload - heatmap as a separate, clearly positioned table.
Ideal for day traders, swing traders, and anyone who needs quick trend overviews for their trading.
FAQ
Q. Which markets is the indicator suitable for?
A: The indicator works universally on forex, stocks, cryptocurrencies, and other TradingView symbols.
Q: Can I add additional timeframes?
A: Currently, 1m, 5m, 15m, 1h, 4h, and 1d are preset. Adjustments are possible in the code if you are familiar with Pine Script.
Q: How accurate is the trend determination?
A: The trend is determined very reliably using the combination of the EMA 50/200 and MACD (via the signal line and the zero line).
Q: Can I use alerts with this indicator?
A: Alerts are not included in the standard script, but can be added individually.
Custom Paul MACD-likePaul MACD is an indicator created by David Paul. It is implemented to effectively represent trend periods and non-trend (sideways/consolidation) periods, and its calculation method is particularly designed to reduce whipsaw.
Unlike the existing MACD which uses the difference between short-term (12) and long-term (26) exponential moving averages (EMA), Paul MACD has a different calculation method. This indicator uses a "center value" or "intermediate value". Calculation occurs when this intermediate value is higher than the High value (specifically, the difference between the center and High is calculated) or lower than the Low value (specifically, the difference between the center and Low is calculated). Otherwise, the value becomes 0. Here, the High and Low values are intended to be smoothly reflected using Smoothed Moving Average (SMMA). The indicator's method itself (using SMMA and ZLMA) is aimed at diluting whipsaws.
Thanks to this calculation method, in sections where whipsaw occurs, meaning when the intermediate value is between High and Low, the indicator value is expressed as 0 and appears as a horizontal line (zero line). This serves to visually clearly show sideways/consolidation periods.
Triple Confirmation Buy/Sell Engine VWAP + MACD + RSIDescription:
This custom-built indicator generates high-confidence Buy/Sell signals using a powerful combination of MACD momentum, RSI strength, and VWAP trend confirmation — designed for cleaner entries and fewer false signals.
Unlike traditional scripts that rely on only one indicator (and produce noisy or early signals), this system requires triple confirmation, greatly increasing signal quality and reducing false trades.
✅ Buy Signal Conditions:
MACD histogram turns green (momentum shift positive)
RSI crosses above 50 (bullish strength confirmation)
Price closes above VWAP (trend confirmation)
🔻 Sell Signal Conditions:
MACD histogram turns red (momentum shift negative)
RSI crosses below 50 (weakening trend)
Price closes below VWAP (bearish confirmation)
🛠 Best For:
Trend traders seeking higher probability entries
Swing traders who want to catch bigger moves
Crypto, stocks, forex traders looking for simple, effective signals
NR4/NR7 + Trend + MACD + VWAP FilterThe Ultimate Momentum-Compression Strategy
This strategy merges the power of price compression and trend confirmation, ensuring you're trading when the market is coiled and ready to move. By combining multiple filters—NR4/NR7, trend alignment, MACD momentum, and VWAP support—this setup identifies high-probability trade opportunities in dynamic, trending stocks. Here's how it works:
NR4/NR7 Patterns: These are narrow-range days where the current price range is smaller than the previous 4 or 7 days. This signals potential breakout or continuation setups, as the market is compressing before making a move.
Trend Confirmation: To ensure you're not trading against the current trend, the price must be above the 20 EMA, and the 10 EMA must be above the 20 EMA. This confirms a bullish structure, with the price trending in your favour.
MACD Momentum: The fast MACD line must be above the slow MACD line, confirming the trend is not only intact but also gaining momentum.
VWAP Filter: Price must be above the VWAP (Volume Weighted Average Price). This is the final confirmation that the market is in a strong, bullish phase, with buyers dominating the market.
By requiring all these conditions to align, this strategy takes the guesswork out of day trading. It ensures you're trading within a well-established trend, with compression patterns and momentum backing your trade. The result? You’re entering positions with confidence and clarity, poised to ride strong, sustained moves.
This strategy is for the trader who values both flexibility and discipline—able to capture dynamic moves while staying aligned with market structure and momentum. It’s a refined, systematic approach that makes decisions clear, without the emotional second-guessing.
Scalper's Fractal Cloud with RSI + VWAP + MACD (Fixed)Scalper’s Fractal Confluence Dashboard
1. Purpose of the Indicator
This TradingView indicator script provides a high-confluence setup for scalping and day trading. It blends momentum indicators (RSI, MACD), trend bias tools (EMA Cloud, VWAP), and structure (fractal swings, gap zones) to help confirm precise entries and exits.
2. Components of the Indicator
- EMA Cloud (50 & 200 EMA): Trend bias – green means bullish, red means bearish. Avoid longs under red cloud.
- VWAP: Institutional volume anchor. Ideal entries are pullbacks to VWAP in direction of trend.
- Gap Zones: Shows open-air zones (white space) where price can move fast. Used to anticipate momentum moves.
- ZigZag Swings: Marks structural pivots (highs/lows) – useful for stop placement and range anticipation.
- MACD Histogram: Shows bullish or bearish momentum via background color.
- RSI: Overbought (>70) or oversold (<30) warnings. Good for exits or countertrend reversion plays.
- EMA Spread Label: Quick view of momentum strength. Wide spread = strong trend.
3. Scalping Entry Checklist
Before entering a trade, confirm these conditions:
• • Bias: EMA cloud color supports trade direction
• • Price is above/below VWAP (confirming institutional flow)
• • MACD histogram matches direction (green for long, red for short)
• • RSI not at extreme (unless you’re fading trend)
• • If entering gap zone, expect fast move
• • Recent swing high/low nearby for target or stop
4. Risk & Sizing Guidelines
Risk 1–2% of account per trade. Place stop below recent swing low (for longs) or high (for shorts). Use fractional sizing near VWAP or white space zones for scalping reversals.
5. Daily Trade Journal Template
- Date:
- Ticker:
- Setup Type (VWAP pullback, Gap Break, EMA reversion):
- Entry Time:
- Bias (Green/Red Cloud):
- RSI Level / MACD Reading:
- Stop Loss:
- Target:
- Result (P/L):
- What I Did Well:
- What Needs Work:
Scalping 15min: EMA + MACD + RSI + ATR-based SL/TP📈 Strategy: 15-Minute Scalping — EMA + MACD + RSI + ATR-based SL/TP
This scalping strategy is designed for 15-minute charts and combines trend-following and momentum confirmation with dynamic stop loss and take profit levels based on volatility.
🔧 Indicators Used:
EMA 50 — identifies the main trend
MACD Histogram — confirms momentum direction
RSI (14) — filters overbought/oversold conditions
ATR (14) — dynamically sets SL and TP based on market volatility
📊 Entry Conditions:
Long Entry:
Price is above EMA 50
MACD histogram is positive
RSI is above 50 but below 70
Short Entry:
Price is below EMA 50
MACD histogram is negative
RSI is below 50 but above 30
🛑 Risk Management:
Stop Loss: 1×ATR (user-configurable)
Take Profit: 2×ATR (user-configurable)
These values can be adjusted in the script inputs depending on your risk/reward preference or market conditions.
⚠️ Notes:
Strategy is optimized for scalping fast-moving pairs (e.g. crypto, forex).
Works best in trending markets.
Use backtesting and forward testing before live trading.
Median MACD - MattesThe Median Based MACD is a new-generation indicator created from old statistical Concepts. It combines a Median Calculation with a MACD to create a smoother signal with less noise and increased robustness.
In this case, the original calculation source of the MACD is replaced with a Median which can be calculated over user set X time.
- Why its good:
This "Phoenix" of sorts brings old concepts together to create a strong, new indicator which can frontrun & see trends from miles up front.
- How it can be used:
While this indicator can be used to follow trends, it can also be used to detect where a trend has weakened and is unlikely to continue. Please keep in mind that its unlikely but the chance is never 0.
In my personal opinion, i think that this indicator should NOT be used as a standalone indicator but rather as a compliment to analysis.
Enjoy!
Composite Oscillation Indicator Based on MACD and OthersThis indicator combines various technical analysis tools to create a composite oscillator that aims to capture multiple aspects of market behavior. Here's a breakdown of its components:
* Individual RSIs (xxoo1-xxoo15): The code calculates the RSI (Relative Strength Index) of numerous indicators, including volume-based indicators (NVI, PVI, OBV, etc.), price-based indicators (CCI, CMO, etc.), and moving averages (WMA, ALMA, etc.). It also includes the RSI of the MACD histogram (xxoo14).
* Composite RSI (xxoojht): The individual RSIs are then averaged to create a composite RSI, aiming to provide a more comprehensive view of market momentum and potential turning points.
* MACD Line RSI (xxoo14): The RSI of the MACD histogram incorporates the momentum aspect of the MACD indicator into the composite measure.
* Double EMA (co, coo): The code employs two Exponential Moving Averages (EMAs) of the composite RSI, with different lengths (9 and 18 periods).
* Difference (jo): The difference between the two EMAs (co and coo) is calculated, aiming to capture the rate of change in the composite RSI.
* Smoothed Difference (xxp): The difference (jo) is further smoothed using another EMA (9 periods) to reduce noise and enhance the signal.
* RSI of Smoothed Difference (cco): Finally, the RSI is applied to the smoothed difference (xxp) to create the core output of the indicator.
Market Applications and Trading Strategies:
* Overbought/Oversold: The indicator's central line (plotted at 50) acts as a reference for overbought/oversold conditions. Values above 50 suggest potential overbought zones, while values below 50 indicate oversold zones.
* Crossovers and Divergences: Crossovers of the cco line above or below its previous bar's value can signal potential trend changes. Divergences between the cco line and price action can also provide insights into potential trend reversals.
* Emoji Markers: The code adds emoji markers ("" for bullish and "" for bearish) based on the crossover direction of the cco line. These can provide a quick visual indication of potential trend shifts.
* Colored Fill: The area between the composite RSI line (xxoojht) and the central line (50) is filled with color to visually represent the prevailing market sentiment (green for above 50, red for below 50).
Trading Strategies (Examples):
* Long Entry: Consider a long entry (buying) signal when the cco line crosses above its previous bar's value and the composite RSI (xxoojht) is below 50, suggesting a potential reversal from oversold conditions.
* Short Entry: Conversely, consider a short entry (selling) signal when the cco line crosses below its previous bar's value and the composite RSI (xxoojht) is above 50, suggesting a potential reversal from overbought conditions.
* Confirmation: Always combine the indicator's signals with other technical analysis tools and price action confirmation for better trade validation.
Additional Notes:
* The indicator offers a complex combination of multiple indicators. Consider testing and optimizing the parameters (EMAs, RSI periods) to suit your trading style and market conditions.
* Backtesting with historical data can help assess the indicator's effectiveness and identify potential strengths and weaknesses in different market environments.
* Remember that no single indicator is perfect, and the cco indicator should be used in conjunction with other forms of analysis to make informed trading decisions.
By understanding the logic behind this composite oscillator and its potential applications, you can incorporate it into your trading strategy to potentially identify trends, gauge market sentiment, and generate trading signals.
Volume-Adjusted Schaff Trend Cycle (VASTC)Volume-Adjusted Schaff Trend Cycle (VASTC)
The VASTC is a fairly fast-moving oscillator designed to identify trends early and signal when trends may be nearing their end. While it can be used for both trend-following and mean-reversion strategies , it shines in trend-following setups. It’s particularly useful for catching the start of a trend and giving early warnings that a trend might end soon, making it a valuable addition to a multi-indicator system.
How It Works:
The VASTC adapts the traditional Schaff Trend Cycle by adjusting the MACD component with volume data. This volume-adjusted MACD is run through two stochastic processes , applying exponential smoothing to enhance responsiveness. Volume sensitivity allows the VASTC to adapt dynamically to periods of high or low trading activity, providing more reliable trend signals.
Recommended Use:
Use VASTC in confluence with other indicators to confirm trend entries and exits. It’s best for identifying early trend setups rather than sustaining prolonged trend trades. When used alongside other indicators, especially those with a longer-term outlook or momentum based trend indicators, you’ll gain a clearer signal for potential exits or entries. Always backtest the VASTC on your chosen assets to determine the most effective input parameters, as the defaults may not suit all markets or assets. Different assets behave differently, and adjustments in parameters can improve its ability to analyze the assets you're looking at.
Parameters:
Length : Sets the primary smoothing length.
Fast/Slow Length : Adjust the speed of the volume-adjusted MACD component.
Factor : Controls the final smoothing applied to the STC.
Overbought/Oversold Levels : Defines overbought/oversold levels.
Experiment with these settings to customize the VASTC to your trading strategy and asset.
Disclaimer : This indicator is a tool to complement your trading analysis and should not be used in isolation. Always backtest and use other confluence signals for best results. The assets I looked at when making this indicator are almost certainly different than what you're looking at.
