CandleAnalysisLibrary "CandleAnalysis"
A collection of frequently used candle analysis functions in my scripts.
isBullish(barsBack)
Checks if a specific bar is bullish.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar is bullish, otherwise returns false.
isBearish(barsBack)
Checks if a specific bar is bearish.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar is bearish, otherwise returns false.
isBE(barsBack)
Checks if a specific bar is break even.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar is break even, otherwise returns false.
getBodySize(barsBack, inPriceChg)
Calculates a specific candle's body size.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
inPriceChg (bool) : (bool) True to return the body size as a price change value. The default is false (in points).
Returns: The candle's body size in points.
getTopWickSize(barsBack, inPriceChg)
Calculates a specific candle's top wick size.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
inPriceChg (bool) : (bool) True to return the wick size as a price change value. The default is false (in points).
Returns: The candle's top wick size in points.
getBottomWickSize(barsBack, inPriceChg)
Calculates a specific candle's bottom wick size.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
inPriceChg (bool) : (bool) True to return the wick size as a price change value. The default is false (in points).
Returns: The candle's bottom wick size in points.
getBodyPercent(barsBack)
Calculates a specific candle's body size as a percentage of its entire size including its wicks.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: The candle's body size percentage.
isHammer(fib, bullish, barsBack)
Checks if a specific bar is a hammer candle based on a given fibonacci level.
Parameters:
fib (float) : (float) The fibonacci level to base candle's body on. The default is 0.382.
bullish (bool) : (bool) True if the candle must to be green. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a hammer candle, otherwise returns false.
isShootingStar(fib, bearish, barsBack)
Checks if a specific bar is a shooting star candle based on a given fibonacci level.
Parameters:
fib (float) : (float) The fibonacci level to base candle's body on. The default is 0.382.
bearish (bool) : (bool) True if the candle must to be red. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a shooting star candle, otherwise returns false.
isDoji(wickSize, bodySize, barsBack)
Checks if a specific bar is a doji candle based on a given wick and body size.
Parameters:
wickSize (float) : (float) The maximum top wick size compared to the bottom and vice versa. The default is 1.5.
bodySize (float) : (bool) The maximum body size as a percentage compared to the entire candle size. The default is 5.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a doji candle.
isBullishEC(gapTolerance, rejectionWickSize, engulfWick, barsBack)
Checks if a specific bar is a bullish engulfing candle.
Parameters:
gapTolerance (int)
rejectionWickSize (int) : (int) The maximum top wick size compared to the body as a percentage. The default is 10.
engulfWick (bool) : (bool) True if the engulfed candle's wick requires to be engulfed as well. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a bullish engulfing candle.
isBearishEC(gapTolerance, rejectionWickSize, engulfWick, barsBack)
Checks if a specific bar is a bearish engulfing candle.
Parameters:
gapTolerance (int)
rejectionWickSize (int) : (int) The maximum bottom wick size compared to the body as a percentage. The default is 10.
engulfWick (bool) : (bool) True if the engulfed candle's wick requires to be engulfed as well. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a bearish engulfing candle.
Cerca negli script per "bear"
MarcosLibraryLibrary "MarcosLibrary"
A colection of frequently used functions in my scripts.
bullFibRet(priceLow, priceHigh, fibLevel)
Calculates a bullish fibonacci retracement value.
Parameters:
priceLow (float) : (float) The lowest price point.
priceHigh (float) : (float) The highest price point.
fibLevel (float) : (float) The fibonacci level to calculate.
Returns: The fibonacci value of the given retracement level.
bearFibRet(priceLow, priceHigh, fibLevel)
Calculates a bearish fibonacci retracement value.
Parameters:
priceLow (float) : (float) The lowest price point.
priceHigh (float) : (float) The highest price point.
fibLevel (float) : (float) The fibonacci level to calculate.
Returns: The fibonacci value of the given retracement level.
bullFibExt(priceLow, priceHigh, thirdPivot, fibLevel)
Calculates a bullish fibonacci extension value.
Parameters:
priceLow (float) : (float) The lowest price point.
priceHigh (float) : (float) The highest price point.
thirdPivot (float) : (float) The third price point.
fibLevel (float) : (float) The fibonacci level to calculate.
Returns: The fibonacci value of the given extension level.
bearFibExt(priceLow, priceHigh, thirdPivot, fibLevel)
Calculates a bearish fibonacci extension value.
Parameters:
priceLow (float) : (float) The lowest price point.
priceHigh (float) : (float) The highest price point.
thirdPivot (float) : (float) The third price point.
fibLevel (float) : (float) The fibonacci level to calculate.
Returns: The fibonacci value of the given extension level.
isBullish(barsBack)
Checks if a specific bar is bullish.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar is bullish, otherwise returns false.
isBearish(barsBack)
Checks if a specific bar is bearish.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar is bearish, otherwise returns false.
isBE(barsBack)
Checks if a specific bar is break even.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar is break even, otherwise returns false.
getBodySize(barsBack, inPriceChg)
Calculates a specific candle's body size.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
inPriceChg (bool) : (bool) True to return the body size as a price change value. The default is false (in points).
Returns: The candle's body size in points.
getTopWickSize(barsBack, inPriceChg)
Calculates a specific candle's top wick size.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
inPriceChg (bool) : (bool) True to return the wick size as a price change value. The default is false (in points).
Returns: The candle's top wick size in points.
getBottomWickSize(barsBack, inPriceChg)
Calculates a specific candle's bottom wick size.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
inPriceChg (bool) : (bool) True to return the wick size as a price change value. The default is false (in points).
Returns: The candle's bottom wick size in points.
getBodyPercent(barsBack)
Calculates a specific candle's body size as a percentage of its entire size including its wicks.
Parameters:
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: The candle's body size percentage.
isHammer(fib, bullish, barsBack)
Checks if a specific bar is a hammer candle based on a given fibonacci level.
Parameters:
fib (float) : (float) The fibonacci level to base candle's body on. The default is 0.382.
bullish (bool) : (bool) True if the candle must to be green. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a hammer candle, otherwise returns false.
isShootingStar(fib, bearish, barsBack)
Checks if a specific bar is a shooting star candle based on a given fibonacci level.
Parameters:
fib (float) : (float) The fibonacci level to base candle's body on. The default is 0.382.
bearish (bool) : (bool) True if the candle must to be red. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a shooting star candle, otherwise returns false.
isDoji(wickSize, bodySize, barsBack)
Checks if a specific bar is a doji candle based on a given wick and body size.
Parameters:
wickSize (float) : (float) The maximum top wick size compared to the bottom and vice versa. The default is 1.5.
bodySize (float) : (bool) The maximum body size as a percentage compared to the entire candle size. The default is 5.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a doji candle.
isBullishEC(gapTolerance, rejectionWickSize, engulfWick, barsBack)
Checks if a specific bar is a bullish engulfing candle.
Parameters:
gapTolerance (int)
rejectionWickSize (int) : (int) The maximum top wick size compared to the body as a percentage. The default is 10.
engulfWick (bool) : (bool) True if the engulfed candle's wick requires to be engulfed as well. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a bullish engulfing candle.
isBearishEC(gapTolerance, rejectionWickSize, engulfWick, barsBack)
Checks if a specific bar is a bearish engulfing candle.
Parameters:
gapTolerance (int)
rejectionWickSize (int) : (int) The maximum bottom wick size compared to the body as a percentage. The default is 10.
engulfWick (bool) : (bool) True if the engulfed candle's wick requires to be engulfed as well. The default is false.
barsBack (int) : (int) The number of bars to look back. The default is 0 (current bar).
Returns: True if the bar matches the requirements of a bearish engulfing candle.
Scaled Historical ATR [SS]Hello again everyone,
This is the Scaled ATR Range indicator. This was done in response to an article/analysis I posted regarding the expected high and range on SPX. I would encourage you to read it here:
Essentially, I took SPX data, scaled it to correct for inflation, then calculated the ATR for Bullish years to get our average range to expect and our close range to expected.
I accomplished this analysis using Excel; however, I figured Pinescript would handle this type of task more elegantly, and I was correct!
This indicator is the result.
What it does:
This indicator permits the analyst to select a historic period in time. The indicator will then scale the period into returns and convert the range to a corrected range based on the current position of the ticker. How it does this is by converting the returns of the historic period selected, then multiplying the returns by the current period open, to ensure that the range amounts are corrected for inflation and natural growth of a ticker.
I say analyst because this indicator is intended to be used by both professional and recreational analysts, to give them an easy way to:
a) Scale historic data and correct it based on the current rate; and
b) Offer insight into a ticker’s ATR and behaviour during bullish and bearish periods.
Prior to this indicator, the only way to do this would be manually or the use of statistical software.
How to use?
The indicator’s use is quite simple. Once launched, the indicator will ask the user to input a timeframe period that the user is interested in assessing. In the main chart above, I chose SPX between 1995 and 2001.
The user can further filter down the data using the settings menu. In the settings menu, there is an option to filter by “All”, “Bullish Periods” or “Bearish Periods”.
Filtering by “All”
Filtering by “All” will include all candles selected within the timeframe. This includes both bearish and bullish candles. It will give you the averaged out range for the entire period of time, including both bearish and bullish instances.
Filtering by “Bullish”
Filtering by “Bullish” will omit any red candles from the analysis. It will only return the ATR ranges for green, bullish candles.
Filtering by “Bearish”
Inverse to filtering by Bullish, if you filter by Bearish, it will only include the red, bearish candles in the analysis.
My suggestion? If you are trying to determine t he likely outcome of a bullish year, filter by Bullish instances. If you want the likely outcome of a bearish year, filter by Bearish.
Other features of the Indicator:
The indicator will display the current period statistics. In the main chart above, you can see that the current ranges for this year are displayed. This allows you to do a side by side comparison of the current period vs. the historic period you are looking at. This can alert you to further upside, further downside and the anticipated close range. It can also alert you to whether or not we are following a similar trajectory as the historical periods you are looking at.
As well, the indicator will list target prices for the current period based on the historical periods you are looking at. This helps to put things into perspective.
Concluding Remarks
And that is the indicator in a nutshell! I encourage you to read the article I linked above to see how you may use it in an analysis. This would be the best example of a real world application of this indicator!
Otherwise, I hope you enjoy and, as always, safe trades!
Flush Percent RangeFans of Woodies CCI may recognize the approach to this one. This is my attempt at using the same methods but for taking the highs and lows into account without the standard deviation of the CCI. The smoothness of other oscillators may not be ideal however the Williams Percent Range is a fast stochastic that also operates within a channel. This provides an alternative yet still complex view for the virtuoso. A unique feature is total utilization of the weighted moving average, from the standard to the more complex. A fun fact is the Hull Moving Average is actually calculated using weighted moving averages.
How to use:
The base length is for accuracy, the fast length is for catching all the moves(even the wrong ones sometimes.)
The bars back option will not flip the histogram/base trend to its bullish/bearish alternative until the base plot remains on the latter half of the oscillator for a certain number of bars. This can be set to zero if desired.
The factor controls the chop on the various levels. A higher number will increase it.
The oscillator levels are measuring slope, price relative to the average, and a summation of percent changes between the two. Both the baseline/histogram and the levels have color coding for bullishness, bearishness, and indecision(depending on the factor.) The fast line matches the indecision color by default. This is all customizable.
There are many potential ways to trade with this indicator. From hooks back toward the trend and range line crossovers to divergence and reversals. It's important to note the current performance of the oscillator levels. Time cycles may come in handy along with other forecasting tools.
Lastly, there are optional linear regression lines plotted on the chart. They're synchronized to the lengths in the oscillator. This is an additional visual aid to provide context to the direction of the channel.
Overall the Flush Percent Range is for analyzing multiple regression models within a single price channel. No smoothing, fast averages, and specified timeframes of highs/lows. Credit to Larry Williams for the original calculation and Ken Woods for design/methodology inspiration.
MTF Regime Filter II [CHE]Regime Filter II - Comprehensive Guide
Introduction
The "Regime Filter II " indicator is a tool designed to help traders identify market trends by smoothing price data and applying a color scheme to visualize bullish and bearish conditions. This guide provides a detailed explanation of the script's functionality, benefits, and how to use it effectively in TradingView.
Key Benefits
1. Trend Identification: Smooths price data to highlight underlying trends, making it easier for traders to spot potential buying or selling opportunities.
2. Visual Clarity: Uses distinct color schemes to differentiate between bullish and bearish market conditions, enhancing visual analysis.
3. Customization: Offers various settings to adjust smoothing and averaging lengths, choose between different color schemes, and set visibility for different timeframes.
4. Neutral Candle Option: Provides an option to display neutral candles for clearer visual representation when market conditions are neither strongly bullish nor bearish.
5. Timeframe Adaptability: Includes functions to determine appropriate step sizes based on different timeframes, ensuring the indicator remains accurate across various trading periods.
Script Breakdown
1. Indicator Declaration
The script starts by declaring itself as a TradingView indicator using the latest version of Pine Script. This sets up the framework for the indicator's functionality.
2. User Inputs for Smoothing and Averaging Lengths
The script allows users to input specific lengths for smoothing and averaging intervals. These inputs are crucial for determining how the price data is processed to identify trends. By adjusting these lengths, users can fine-tune the sensitivity of the indicator to market movements.
3. Color Scheme Selection
Users can choose between two color schemes: "Traditional" and "WT1 0 Rule". The selected color scheme will determine how the indicator colors the candles to represent bullish and bearish conditions. This customization enhances the visual appeal and usability of the indicator according to personal preferences.
4. Settings for Timeframe Visibility
The script includes settings that allow users to specify which timeframes the indicator should be visible on. This feature helps traders focus on the most relevant timeframes for their trading strategies. Additionally, users can set the number of recent candles to display, providing a clear view of the most recent market trends.
5. Color Definitions
The indicator defines specific colors for bearish and bullish candles. Bearish candles are colored red, while bullish candles are green. These color definitions are applied based on the selected color scheme and the calculated trend, providing a quick visual reference for market conditions.
6. Time Constants
To manage different timeframes effectively, the script uses constants that represent various time intervals in milliseconds, such as minutes, hours, and days. These constants are used to convert timeframes into a format that the script can work with to determine the appropriate step size for calculations.
7. Step Size Determination
The script includes a function that determines the step size based on the selected timeframe. This function ensures that the indicator adapts to different timeframes, maintaining its accuracy and relevance across various trading periods. The step size is calculated based on time intervals, and appropriate labels (like "60", "240", "1D") are assigned.
- For timeframes less than or equal to 1 minute, the step size is set to "60".
- For timeframes less than or equal to 5 minutes, the step size is set to "240".
- For timeframes less than or equal to 1 hour, the step size is set to "1D" (daily).
- For timeframes less than or equal to 4 hours, the step size is set to "3D" (three days).
- For timeframes less than or equal to 12 hours, the step size is set to "7D" (weekly).
- For timeframes less than or equal to 1 day, the step size is set to "1M" (monthly).
- For timeframes less than or equal to 1 week, the step size is set to "3M" (three months).
- For all other timeframes, the step size is set to "12M" (yearly).
8. Trend Calculation
The core of the indicator is its ability to calculate market trends. Here's a detailed breakdown of how the `calculateTrend` function works:
- Initialization: Variables for the middle price and scale, and summations of high/low prices and ranges, are initialized.
- Summation Loop: A loop runs over the smoothing length to calculate the sum of high and low prices and their range.
- Middle and Scale Calculation: The middle price is determined as the average of high/low sums, and the scale is calculated as a fraction of the average range.
- Normalization: The high, low, and close prices are normalized based on the middle price and scale.
- HT Calculation: The normalized prices are smoothed using a simple moving average (SMA).
- Frequency and Exponential Calculations: The frequency and related constants (a, c1, c2, c3) are calculated for further smoothing.
- Smoothed Moving Average (SMA): A smoothed moving average is computed using the HT values and exponential constants.
- WT1 and WT2 Calculation: The final smoothed values (WT1) and their average (WT2) are derived.
9. Color Application Based on Trend
Once the trend is calculated, the script applies the appropriate color to the candles based on the selected color scheme. This function ensures that the visual representation of the trend is consistent with the user’s preferences.
10. Label Plotting for Timeframes
If the option to display timeframe labels is enabled, the script plots labels on the chart to indicate the current timeframe. This feature helps users quickly identify which timeframe they are analyzing.
11. Shape Plotting Based on Trend and Color Scheme
The indicator plots shapes (squares) on the chart based on the calculated trend and selected color scheme. These shapes provide an additional visual cue for market conditions, enhancing the overall clarity of the indicator.
12. Neutral Candle Color Option
The script includes an option to set the color of neutral candles when market conditions are neither strongly bullish nor bearish. This option helps traders better visualize periods of market indecision.
Summary
The "Regime Filter II " is a powerful and customizable tool for traders, offering clear visual cues for market trends and adaptability to various timeframes. By smoothing price data and applying intuitive color schemes, it helps traders make more informed decisions. With features like adjustable smoothing lengths, multiple color schemes, and optional neutral candle displays, this indicator enhances market analysis and trading strategy development. By following this comprehensive guide, traders can effectively utilize the "Regime Filter II " indicator to enhance their market analysis and make more informed trading decisions.
Best regards
Advanced Gold Scalping Strategy with RSI Divergence# Advanced Gold Scalping Strategy with RSI Divergence
## Overview
This Pine Script implements an advanced scalping strategy for gold (XAUUSD) trading, primarily designed for the 1-minute timeframe. The strategy utilizes the Relative Strength Index (RSI) indicator along with its moving average to identify potential trade setups based on divergences between price action and RSI movements.
## Key Components
### 1. RSI Calculation
- Uses a customizable RSI length (default: 60)
- Allows selection of the source for RSI calculation (default: close price)
### 2. Moving Average of RSI
- Supports multiple MA types: SMA, EMA, SMMA (RMA), WMA, VWMA, and Bollinger Bands
- Customizable MA length (default: 3)
- Option to display Bollinger Bands with adjustable standard deviation multiplier
### 3. Divergence Detection
- Implements both bullish and bearish divergence identification
- Uses pivot high and pivot low points to detect divergences
- Allows for customization of lookback periods and range for divergence detection
### 4. Entry Conditions
- Long Entry: Bullish divergence when RSI is below 40
- Short Entry: Bearish divergence when RSI is above 60
### 5. Trade Management
- Stop Loss: Customizable, default set to 11 pips
- Take Profit: Customizable, default set to 33 pips
### 6. Visualization
- Plots RSI line and its moving average
- Displays horizontal lines at 30, 50, and 70 RSI levels
- Shows Bollinger Bands when selected
- Highlights divergences with "Bull" and "Bear" labels on the chart
## Input Parameters
- RSI Length: Adjusts the period for RSI calculation
- RSI Source: Selects the price source for RSI (close, open, high, low, hl2, hlc3, ohlc4)
- MA Type: Chooses the type of moving average applied to RSI
- MA Length: Sets the period for the moving average
- BB StdDev: Adjusts the standard deviation multiplier for Bollinger Bands
- Show Divergence: Toggles the display of divergence labels
- Stop Loss: Sets the stop loss distance in pips
- Take Profit: Sets the take profit distance in pips
## Strategy Logic
1. **RSI Calculation**:
- Computes RSI using the specified length and source
- Calculates the chosen type of moving average on the RSI
2. **Divergence Detection**:
- Identifies pivot points in both price and RSI
- Checks for higher lows in RSI with lower lows in price (bullish divergence)
- Checks for lower highs in RSI with higher highs in price (bearish divergence)
3. **Trade Entry**:
- Enters a long position when a bullish divergence is detected and RSI is below 40
- Enters a short position when a bearish divergence is detected and RSI is above 60
4. **Position Management**:
- Places a stop loss order at the entry price ± stop loss pips (depending on the direction)
- Sets a take profit order at the entry price ± take profit pips (depending on the direction)
5. **Visualization**:
- Plots the RSI and its moving average
- Draws horizontal lines for overbought/oversold levels
- Displays Bollinger Bands if selected
- Shows divergence labels on the chart for identified setups
## Usage Instructions
1. Apply the script to a 1-minute XAUUSD (Gold) chart in TradingView
2. Adjust the input parameters as needed:
- Increase RSI Length for less frequent but potentially more reliable signals
- Modify MA Type and Length to change the sensitivity of the RSI moving average
- Adjust Stop Loss and Take Profit levels based on current market volatility
3. Monitor the chart for Bull (long) and Bear (short) labels indicating potential trade setups
4. Use in conjunction with other analysis and risk management techniques
## Considerations
- This strategy is designed for short-term scalping and may not be suitable for all market conditions
- Always backtest and forward test the strategy before using it with real capital
- The effectiveness of divergence-based strategies can vary depending on market trends and volatility
- Consider using additional confirmation signals or filters to improve the strategy's performance
Remember to adapt the strategy parameters to your risk tolerance and trading style, and always practice proper risk management.
Inside Bar Setup [as]Inside Bar Setup Indicator Description
The **Inside Bar Setup ** indicator is a powerful tool for traders to identify and visualize inside bar patterns on their charts. An inside bar pattern occurs when the current candle's high is lower than the previous candle's high, and the current candle's low is higher than the previous candle's low. This pattern can indicate a potential breakout or a continuation of the existing trend.
Key Features:
1. **Highlight Inside Bar Patterns:**
- The indicator highlights inside bar patterns with distinct colors for bullish and bearish bars. Bullish inside bars are colored with the user-defined bull bar color (default lime), and bearish inside bars are colored with the user-defined bear bar color (default maroon).
2. **Marking Mother Candle High and Low:**
- The high and low of the mother candle (the candle preceding the inside bar) are marked with horizontal lines. The high is marked with a green line, and the low is marked with a red line.
- These levels are labeled as "Range High" and "Range Low" respectively, with the labels displayed a few bars to the right for clarity. The labels have a semi-transparent background for better visibility.
3. **Target Levels:**
- The indicator calculates and plots potential target levels (T1 and T2) for both long and short positions based on user-defined multipliers of the mother candle's range.
- For long positions, T1 and T2 are plotted above the mother candle's high.
- For short positions, T1 and T2 are plotted below the mother candle's low.
- These target levels are optional and can be toggled on or off via the input settings.
4. **Customizable Inputs:**
- **Colors:**
- Bull Bar Color: Customize the color for bullish inside bars.
- Bear Bar Color: Customize the color for bearish inside bars.
- **Long Targets:**
- Show Long T1: Toggle the display of the first long target.
- Show Long T2: Toggle the display of the second long target.
- Long T1: Multiplier for the first long target above the mother candle's high.
- Long T2: Multiplier for the second long target above the mother candle's high.
- **Short Targets:**
- Show Short T1: Toggle the display of the first short target.
- Show Short T2: Toggle the display of the second short target.
- Short T1: Multiplier for the first short target below the mother candle's low.
- Short T2: Multiplier for the second short target below the mother candle's low.
5. **New Day Detection:**
- The indicator detects the start of a new day and clears the inside bar arrays, ensuring that the pattern detection is always current.
#### Usage:
- Add the indicator to your TradingView chart.
- Customize the inputs to match your trading strategy.
- Watch for highlighted inside bars to identify potential breakout opportunities.
- Use the marked range highs and lows, along with the calculated target levels, to plan your trades.
This indicator is ideal for traders looking to capitalize on inside bar patterns and their potential breakouts. It provides clear visual cues and customizable settings to enhance your trading decisions.
Note:
This indicator is based on famous 15 min inside bar strategy shared by Subashish Pani on his youtube channel Power of stocks. Please watch his videos to use this indicator for best results.
Quantiple Direction IndexThis indicator indicates market trends by analyzing the following signals:
1. RSI which is a momentum oscillator
2. Directional Movement Index (DMI) which measures the direction of the movement
3. Price in comparison to EMA 13 and 21 to determine whether the trend is clear or there is an ambiguity
4. ADX that shows the strength of the momentum
Scoring logic
While we have kept the source code open which gives the scoring logic, for ease of the user, I am summarizing the scoring logic
A. We break down RSI and DMI into a 9 point scale (-4 to +4) from extremely bearish to bullish. Then we give equal weight to both and come out with a direction score.
B. We use EMA to determine if their is clarity in the price trend. While the direction is deduced from point A, if there is clarity we know that the confidence on the direction is high. If EMA 13 is higher than EMA 21 and the price is above EMA 13, then we assign it as a score of +1 as we get clear bullish trend. Similarly if EMA 13 is below EMA 21 and the price is below both the EMAs then we assign it a score of -1 as we get clear bearish trend. Anything else is considered as inconclusive and given a score of 0
C. We use ADX to determine the strength of the directional momentum. It is like acceleration. We use ADX score as an strength adjustment factor. If the value is above 25 - we multiply A+B by 1.25. Similarly we multiply it by 0.75 if the strength is weak and no change if the strength is neutral.
Finally this indicator categorizes market direction into five levels:
- Very Bullish
- Bullish
- Neutral
- Bearish
- Very Bearish
Scores range from +6 (very bullish) to -6 (very bearish), with the user setting thresholds for each category. The midpoint between Bullish and Bearish defines the neutral zone.
Again all the exact values are in the code and the user can also customize as per their trading system.
Why does it make sense to combine these different indicators rather than looking at them in isolation?
We give equal weight to RSI and DMI to derive the direction of the price movement. Using two different indicators provide a better confirmation on the direction. However, this alone is not sufficient.
We want clarity of the direction and for that we use the EMA score (please refer to point B above). If we have clarity, the probability of the direction being right goes up.
Once we know the direction, we want to know what is the strength of that direction. This point is very valuable for an option trader. This is where this indicator brings value.
Please note that by looking at these indicators in isolation one can get a sense of direction or a sense of strength of the direction. But, when you combine them, you get whether the direction move is with strength or not. If you are into option trading, you will clearly understand the rational behind it when you look at the trading rules provided in this description. For example if one knows that the direction is bullish (which one can potentially get from RSI or DMI), one can either buy a call or sell a put. But one knows that not only the direction is bullish, but it has the right acceleration (strength of the momentum), then one will assign higher probability of higher profit from buying call than from selling put.
To summarize we have combined indicators to achieve the following
1. Get confirmation from two different indicators on the direction of the price movement (RSI and DMI)
2. Confirm that the direction is clear (Price relative to EMA)
3. Combine with the strength of the direction (ADX)
Direction, clarity of the direction and the strength of the directional movement is a valuable trading indicator in our opinion.
Suggested trading rules
1. Short strangle strategy when the trend is neutral with one's usual option selling quantity. Equal quantity on put and call.
2. Full quantity short put and half quantity short call when the trend is bullish.
3. Full quantity short put and call long when the indicator is very bullish.
4. Vice versa for bearish ( full call short, half put short) and very bearish (full call short, put long)
Suggested to use 5 min timeframe for scalping, 15 min for intraday positions, 1 hour for weekly and monthly positions, and daily/weekly for investments.
The value of this indicator oscillates between +6 to -6. You can tweak the range for V bullish, bullish, bearish, and v bearish. The values in between will default to the neutral zone.
Disclaimers:
1. While the creator has used this in the live market, no claim is being made on its effectiveness or profit making ability. Please use it for trading only after you have tested it and are satisfied.
2. There may be thousands or millions of better trader in this world than the creator of this script. The creator makes no claim of his intelligence or trading ability.
3. The creator has no intention of selling this particular script now or in future. This is purely for community use and there's no intention to make any monetary profit from it.
4. The creator is not requesting or soliciting anyone to like or promote this script. The creator is also not asking anyone to give him any business now or in future even if they like this script and benefit from it.
Chuck Dukas Market Phases of Trends (based on 2 Moving Averages)This script is based on the article “Defining The Bull And The Bear” by Chuck Duckas, published in Stocks & Commodities V. 25:13 (14-22); (S&C Bonus Issue, 2007).
The article “Defining The Bull And The Bear” discusses the concepts of “bullish” and “bearish” in relation to the price behavior of financial instruments. Chuck Dukas explains the importance of analyzing price trends and provides a framework for categorizing price activity into six phases. These phases, including recovery, accumulation, bullish, warning, distribution, and bearish, help to assess the quality of the price structure and guide decision-making in trading. Moving averages are used as tools for determining the context preceding the current price action, and the slope of a moving average is seen as an indicator of trend and price phase analysis.
The six phases of trends
// Definitions of Market Phases
recovery_phase = src > ma050 and src < ma200 and ma050 < ma200 // color: blue
accumulation_phase = src > ma050 and src > ma200 and ma050 < ma200 // color: purple
bullish_phase = src > ma050 and src > ma200 and ma050 > ma200 // color: green
warning_phase = src < ma050 and src > ma200 and ma050 > ma200 // color: yellow
distribution_phase = src < ma050 and src < ma200 and ma050 > ma200 // color: orange
bearish_phase = src < ma050 and src < ma200 and ma050 < ma200 // color red
Recovery Phase : This phase marks the beginning of a new trend after a period of consolidation or downtrend. It is characterized by the gradual increase in prices as the market starts to recover from previous losses.
Accumulation Phase : In this phase, the market continues to build a base as prices stabilize before making a significant move. It is a period of consolidation where buying and selling are balanced.
Bullish Phase : The bullish phase indicates a strong upward trend in prices with higher highs and higher lows. It is a period of optimism and positive sentiment in the market.
Warning Phase : This phase occurs when the bullish trend starts to show signs of weakness or exhaustion. It serves as a cautionary signal to traders and investors that a potential reversal or correction may be imminent.
Distribution Phase : The distribution phase is characterized by the market topping out as selling pressure increases. It is a period where supply exceeds demand, leading to a potential shift in trend direction.
Bearish Phase : The bearish phase signifies a strong downward trend in prices with lower lows and lower highs. It is a period of pessimism and negative sentiment in the market.
These rules of the six phases outline the cyclical nature of market trends and provide traders with a framework for understanding and analyzing price behavior to make informed trading decisions based on the current market phase.
60-period channel
The 60-period channel should be applied differently in each phase of the market cycle.
Recovery Phase : In this phase, the 60-period channel can help identify the beginning of a potential uptrend as price stabilizes or improves. Traders can look for new highs frequently in the 60-period channel to confirm the trend initiation or continuation.
Accumulation Phase : During the accumulation phase, the 60-period channel can highlight that the current price is sufficiently strong to be above recent price and longer-term price. Traders may observe new highs frequently in the 60-period channel as the slope of the 50-period moving average (SMA) trends upwards while the 200-period moving average (SMA) slope is losing its downward slope.
Bullish Phase : In the bullish phase, the 60-period channel showing a series of higher highs is crucial for confirming the uptrend. Additionally, traders should observe an upward-sloping 50-period SMA above an upward-sloping 200-period SMA for further validation of the bullish phase.
Warning Phase : When in the warning phase, the 60-period channel can provide insights into whether the current price is weaker than recent prices. Traders should pay attention to the relationship between the price close, the 50-period SMA, and the 200-period SMA to gauge the strength of the phase.
Distribution Phase : In the distribution phase, traders should look for new lows frequently in the 60-period channel, hinting at a weakening trend. It is crucial to observe that the 50-period SMA is still above the 200-period SMA in this phase.
Bearish Phase : Lastly, in the bearish phase, the 60-period channel reflecting a series of lower lows confirms the downtrend. Traders should also note that the price close is below both the 50-period SMA and the 200-period SMA, with the relationship of the 50-period SMA being less than the 200-period SMA.
By carefully analyzing the 60-period channel in each phase, traders can better understand market trends and make informed decisions regarding their investments.
Volume Spread Analysis [TANHEF]Volume Spread Analysis: Understanding Market Intentions through the Interpretation of Volume and Price Movements.
█ Simple Explanation:
The Volume Spread Analysis (VSA) indicator is a comprehensive tool that helps traders identify key market patterns and trends based on volume and spread data. This indicator highlights significant VSA patterns and provides insights into market behavior through color-coded volume/spread bars and identification of bars indicating strength, weakness, and neutrality between buyers and sellers. It also includes powerful volume and spread forecasting capabilities.
█ Laws of Volume Spread Analysis (VSA):
The origin of VSA begins with Richard Wyckoff, a pivotal figure in its development. Wyckoff made significant contributions to trading theory, including the formulation of three basic laws:
The Law of Supply and Demand: This fundamental law states that supply and demand balance each other over time. High demand and low supply lead to rising prices until demand falls to a level where supply can meet it. Conversely, low demand and high supply cause prices to fall until demand increases enough to absorb the excess supply.
The Law of Cause and Effect: This law assumes that a 'cause' will result in an 'effect' proportional to the 'cause'. A strong 'cause' will lead to a strong trend (effect), while a weak 'cause' will lead to a weak trend.
The Law of Effort vs. Result: This law asserts that the result should reflect the effort exerted. In trading terms, a large volume should result in a significant price move (spread). If the spread is small, the volume should also be small. Any deviation from this pattern is considered an anomaly.
█ Volume and Spread Analysis Bars:
Display: Volume and/or spread bars that consist of color coded levels. If both of these are displayed, the number of spread bars can be limited for visual appeal and understanding, with the spread bars scaled to match the volume bars. While automatic calculation of the number of visual bars for auto scaling is possible, it is avoided to prevent the indicator from reloading whenever the number of visual price bars on the chart is adjusted, ensuring uninterrupted analysis. A displayable table (Legend) of bar colors and levels can give context and clarify to each volume/spread bar.
Calculation: Levels are calculated using multipliers applied to moving averages to represent key levels based on historical data: low, normal, high, ultra. This method smooths out short-term fluctuations and focuses on longer-term trends.
Low Level: Indicates reduced volatility and market interest.
Normal Level: Reflects typical market activity and volatility.
High Level: Indicates increased activity and volatility.
Ultra Level: Identifies extreme levels of activity and volatility.
This illustrates the appearance of Volume and Spread bars when scaled and plotted together:
█ Forecasting Capabilities:
Display: Forecasted volume and spread levels using predictive models.
Calculation: Volume and Spread prediction calculations differ as volume is linear and spread is non-linear.
Volume Forecast (Linear Forecasting): Predicts future volume based on current volume rate and bar time till close.
Spread Forecast (Non-Linear Dynamic Forecasting): Predicts future spread using a dynamic multiplier, less near midpoint (consolidation) and more near low or high (trending), reflecting non-linear expansion.
Moving Averages: In forecasting, moving averages utilize forecasted levels instead of actual levels to ensure the correct level is forecasted (low, normal, high, or ultra).
The following compares forecasted volume with actual resulting volume, highlighting the power of early identifying increased volume through forecasted levels:
█ VSA Patterns:
Criteria and descriptions for each VSA pattern are available as tooltips beside them within the indicator’s settings. These tooltips provide explanations of potential developments based on the volume and spread data.
Signs of Strength (🟢): Patterns indicating strong buying pressure and potential market upturns.
Down Thrust
Selling Climax
No Effort → Bearish Result
Bearish Effort → No Result
Inverse Down Thrust
Failed Selling Climax
Bull Outside Reversal
End of Falling Market (Bag Holder)
Pseudo Down Thrust
No Supply
Signs of Weakness (🔴): Patterns indicating strong selling pressure and potential market downturns.
Up Thrust
Buying Climax
No Effort → Bullish Result
Bullish Effort → No Result
Inverse Up Thrust
Failed Buying Climax
Bear Outside Reversal
End of Rising Market (Bag Seller)
Pseudo Up Thrust
No Demand
Neutral Patterns (🔵): Patterns indicating market indecision and potential for continuation or reversal.
Quiet Doji
Balanced Doji
Strong Doji
Quiet Spinning Top
Balanced Spinning Top
Strong Spinning Top
Quiet High Wave
Balanced High Wave
Strong High Wave
Consolidation
Bar Patterns (🟡): Common candlestick patterns that offer insights into market sentiment. These are required in some VSA patterns and can also be displayed independently.
Bull Pin Bar
Bear Pin Bar
Doji
Spinning Top
High Wave
Consolidation
This demonstrates the acronym and descriptive options for displaying bar patterns, with the ability to hover over text to reveal the descriptive text along with what type of pattern:
█ Alerts:
VSA Pattern Alerts: Notifications for identified VSA patterns at bar close.
Volume and Spread Alerts: Alerts for confirmed and forecasted volume/spread levels (Low, High, Ultra).
Forecasted Volume and Spread Alerts: Alerts for forecasted volume/spread levels (High, Ultra) include a minimum percent time elapsed input to reduce false early signals by ensuring sufficient bar time has passed.
█ Inputs and Settings:
Display Volume and/or Spread: Choose between displaying volume bars, spread bars, or both with different lookback periods.
Indicator Bar Color: Select color schemes for bars (Normal, Detail, Levels).
Indicator Moving Average Color: Select schemes for bars (Fill, Lines, None).
Price Bar Colors: Options to color price bars based on VSA patterns and volume levels.
Legend: Display a table of bar colors and levels for context and clarity of volume/spread bars.
Forecast: Configure forecast display and prediction details for volume and spread.
Average Multipliers: Define multipliers for different levels (Low, High, Ultra) to refine the analysis.
Moving Average: Set volume and spread moving average settings.
VSA: Select the VSA patterns to be calculated and displayed (Strength, Weakness, Neutral).
Bar Patterns: Criteria for bar patterns used in VSA (Doji, Bull Pin Bar, Bear Pin Bar, Spinning Top, Consolidation, High Wave).
Colors: Set exact colors used for indicator bars, indicator moving averages, and price bars.
More Display Options: Specify how VSA pattern text is displayed (Acronym, Descriptive), positioning, and sizes.
Alerts: Configure alerts for VSA patterns, volume, and spread levels, including forecasted levels.
█ Usage:
The Volume Spread Analysis indicator is a helpful tool for leveraging volume spread analysis to make informed trading decisions. It offers comprehensive visual and textual cues on the chart, making it easier to identify market conditions, potential reversals, and continuations. Whether analyzing historical data or forecasting future trends, this indicator provides insights into the underlying factors driving market movements.
Expansion Candles by Alex EntrepreneurHey people! Thanks for using Expansion Candles. I designed this tool to help me identify price runs (expansions) based on consecutive bullish or bearish candle closes and then trade continuations on the lower timeframes. Here's what makes it awesome:
How Does It Work?
An “expansion” is confirmed after multiple closes above the previous candle’s high (in the bull case) or below the previous candle’s low (in the bear case) while also having a higher candle low than the previous candle (in the bull case) or having lower candle high that the previous candle (in the bear case). After an expansion is confirmed, then the indicator will be displayed on the next candle.
You can set the number of required candle closes that confirm an “expansion” by increasing or decreasing the "Required Candles For Valid Expansion" setting.
An expansion will continue until an “invalidation” event occurs this will cause the indicator to stop displaying.
This “invalidation” can either be a lower candle low than the previous candle (in the bull case) and a higher candle high than the previous candle (in the bear case), or a close below the previous candle’s low (in the bull case) or a close above the previous candle’s high (in the bear case).
You can choose whether you want to use candle highs and lows as invalidation or candle closes as invalidation by changing the “Invalidation Type” setting to either “Wick” or “Candle Close”.
Key Features
Price Run Detection : Identify when price is expanding through consecutive bullish or bearish candle closes. You can chose whether a wick or opposite candle close finishes the run.
Timeframe Selection : Select your preferred timeframe for expansion candles and then view the indicator on lower timeframes for precise continuation entries.
Custom Display Options : Tailor the way expansions are shown on your chart. Choose your bullish and bearish colours and then display expansions as coloured candles, background colours, boxes, or arrows.
Sensitivity Adjustment : Adjust the indicator's sensitivity by changing the number of "Required Candles For Valid Expansion" to suit your analysis.
Set Alerts : Detect new bullish or bearish expansions in your favourite instruments with customisable alerts.
Best,
Alex Entrepreneur
Johnny's Adjusted BB Buy/Sell Signal"Johnny's Adjusted BB Buy/Sell Signal" leverages Bollinger Bands and moving averages to provide dynamic buy and sell signals based on market conditions. This indicator is particularly useful for traders looking to identify strategic entry and exit points based on volatility and trend analysis.
How It Works
Bollinger Bands Setup: The indicator calculates Bollinger Bands using a specified length and multiplier. These bands serve to identify potential overbought (upper band) or oversold (lower band) conditions.
Moving Averages: Two moving averages are calculated — a trend moving average (trendMA) and a long-term moving average (longTermMA) — to gauge the market's direction over different time frames.
Market Phase Determination: The script classifies the market into bullish or bearish phases based on the relationship of the closing price to the long-term moving average.
Strong Buy and Sell Signals: Enhanced signals are generated based on how significantly the price deviates from the Bollinger Bands, coupled with the average candle size over a specified lookback period. The signals are adjusted based on whether the market is bullish or bearish:
In bullish markets, a strong buy signal is triggered if the price significantly drops below the lower Bollinger Band. Conversely, a strong sell signal is activated when the price rises well above the upper band.
In bearish markets, these signals are modified to be more conservative, adjusting the thresholds for triggering strong buy and sell signals.
Features:
Flexibility: Users can adjust the length of the Bollinger Bands and moving averages, as well as the multipliers and factors that determine the strength of buy and sell signals, making it highly customizable to different trading styles and market conditions.
Visual Aids: The script vividly plots the Bollinger Bands and moving averages, and signals are visually represented on the chart, allowing traders to quickly assess trading opportunities:
Regular buy and sell signals are indicated by simple shapes below or above price bars.
Strong buy and sell signals are highlighted with distinctive colors and placed prominently to catch the trader's attention.
Background Coloring: The background color changes based on the market phase, providing an immediate visual cue of the market's overall sentiment.
Usage:
This indicator is ideal for traders who rely on technical analysis to guide their trading decisions. By integrating both Bollinger Bands and moving averages, it provides a multi-faceted view of market trends and volatility, making it suitable for identifying potential reversals and continuation patterns. Traders can use this tool to enhance their understanding of market dynamics and refine their trading strategies accordingly.
FVG Positioning Average [LuxAlgo]The FVG Positioning Average indicator aims to uncover potential price levels of interest by averaging together recent Fair Value Gap (FVG) initiation levels.
This indicator is grounded in the theory that significant buying or selling activity is the primary catalyst for creating FVGs.
By averaging together the prices where each FVG initiated, we may potentially reveal where major participants are positioned.
🔶 USAGE
By analyzing the average price of bullish or bearish FVGs, users can identify potential support or resistance areas where the larger participants may re-enter or defend their positions.
These areas could be used to adjust entries and exits or assist with risk management such as take-profit or stop-loss levels.
The indicator displays 2 lines, the Bull Average and the Bear Average.
The Bull Average is only displayed when the price holds above the bull Average.
The Bear Average is only displayed when the price holds below the bear average.
When only one average is displayed alone, this level is seen as support or resistance, it is anticipated that this level would be defended for the current trend to stay valid.
When both averages are displayed simultaneously, it can be interpreted as one side attempting to take over the trend.
The movements and reactions during these attempts can be analyzed to provide helpful information about where the price might be headed.
Possible outcomes:
Trend Confirmation/Re-Entry (From Weak Attempts)
Trend Reversal (Creating Support or Resistance)
Consolidation (Oscillating between/around Bull & Bear Averages)
🔶 DETAILS
🔹 Lookback Types
This indicator includes 2 lookback types:
Bar Count: Uses Bars to determine what data to include. This type can be utilized for averages that are more locally relevant to the current chart data.
FVG Count: Uses a specific # of FVGs for calculations. This type can be utilized for a continuous & consistent view, typically relevant with longer term analysis.
Note: When using bar lookback, if no data is in range, no lines will be displayed.
Below is an example of the 'FVG Count' Display.
🔹 Initiation Levels
Initiation Levels are the specific price points where each FVG starts, these are the last points the price was traded at before creating the gap.
Bull Initiation Level: Lowest Point (Bottom) of FVG
Bear Initiation Level: Highest Point (Top) of FVG
🔹 FVG Display
Each FVG being used for the current calculation of averages is displayed on the chart for reference.
Note: If you prefer to not display the FVGs, they can be toggled off in the settings, uncheck "Show FVGs on Chart".
🔶 Settings
FVG Lookback: As mentioned above in the 'Lookback Types', this sets the number of FVGs or Bars to use for consideration.
Lookback Type: As also mentioned above in 'Lookback Types', this determines the method of lookback to be used.
ATR Multiplier: The FVGs are required to have a Greater Width than (ATR * Multiplier) in order to be used for calculations. This allows you to focus on the data being considered if needed.
Bullish Cassiopeia A Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia A harmonic patterns and price projections derived from the ranges that constitute the patterns.
Cassiopeia A, B and C harmonic patterns are patterns that I created/discovered myself. They are all inspired by the Cassiopeia constellation and each one is based on different rotations of the constellation as it moves through the sky. The range ratios are also based on the constellation's right ascension and declination listed on Wikipedia:
Right ascension 22h 57m 04.5897s–03h 41m 14.0997s
Declination 77.6923447°–48.6632690°
en.wikipedia.org
I actually developed this idea quite a while ago now but have not felt audacious enough to introduce a new harmonic pattern, let alone 3 at the same time! But I have since been able to run backtests on tick data going back to 2002 across a variety of market and timeframe combinations and have learned that the Cassiopeia patterns can certainly hold their own against the currently known harmonic patterns. As can be seen in the picture above the bullish Cassiopeia A caught the 2009 bear market bottom almost perfectly.
I would also point out that the Cassiopeia constellation does actually look like a harmonic pattern and the Cassiopeia A star is literally the 'strongest source of radio emission in the sky beyond the solar system', so its arguably more of a real harmonic phenomenon than the current patterns.
www.britannica.com
chandra.si.edu
█ CONCEPTS
Green and Red Candles
• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.
Swing Highs and Swing Lows
• A swing high is a green candle or series of consecutive green candles followed by a single red candle to complete the swing and form the peak.
• A swing low is a red candle or series of consecutive red candles followed by a single green candle to complete the swing and form the trough.
Peak and Trough Prices (Basic)
• The peak price of a complete swing high is the high price of either the red candle that completes the swing high or the high price of the preceding green candle, depending on which is higher.
• The trough price of a complete swing low is the low price of either the green candle that completes the swing low or the low price of the preceding red candle, depending on which is lower.
Historic Peaks and Troughs
The current, or most recent, peak and trough occurrences are referred to as occurrence zero. Previous peak and trough occurrences are referred to as historic and ordered numerically from right to left, with the most recent historic peak and trough occurrences being occurrence one.
Range
The range is simply the difference between the current peak and current trough prices, generally expressed in terms of points or pips.
Upper Trends
• A return line uptrend is formed when the current peak price is higher than the preceding peak price.
• A downtrend is formed when the current peak price is lower than the preceding peak price.
• A double-top is formed when the current peak price is equal to the preceding peak price.
Lower Trends
• An uptrend is formed when the current trough price is higher than the preceding trough price.
• A return line downtrend is formed when the current trough price is lower than the preceding trough price.
• A double-bottom is formed when the current trough price is equal to the preceding trough price.
Muti-Part Upper and Lower Trends
• A multi-part return line uptrend begins with the formation of a new return line uptrend and continues until a new downtrend ends the trend.
• A multi-part downtrend begins with the formation of a new downtrend and continues until a new return line uptrend ends the trend.
• A multi-part uptrend begins with the formation of a new uptrend and continues until a new return line downtrend ends the trend.
• A multi-part return line downtrend begins with the formation of a new return line downtrend and continues until a new uptrend ends the trend.
Double Trends
• A double uptrend is formed when the current trough price is higher than the preceding trough price and the current peak price is higher than the preceding peak price.
• A double downtrend is formed when the current peak price is lower than the preceding peak price and the current trough price is lower than the preceding trough price.
Muti-Part Double Trends
• A multi-part double uptrend begins with the formation of a new uptrend that proceeds a new return line uptrend, and continues until a new downtrend or return line downtrend ends the trend.
• A multi-part double downtrend begins with the formation of a new downtrend that proceeds a new return line downtrend, and continues until a new uptrend or return line uptrend ends the trend.
Wave Cycles
A wave cycle is here defined as a complete two-part move between a swing high and a swing low, or a swing low and a swing high. The first swing high or swing low will set the course for the sequence of wave cycles that follow; for example a chart that begins with a swing low will form its first complete wave cycle upon the formation of the first complete swing high and vice versa.
Figure 1.
Retracement and Extension Ratios
Retracement and extension ratios are calculated by dividing the current range by the preceding range and multiplying the answer by 100. Retracement ratios are those that are equal to or below 100% of the preceding range and extension ratios are those that are above 100% of the preceding range.
Fibonacci Retracement and Extension Ratios
The Fibonacci sequence is a series of numbers in which each number is the sum of the two preceding numbers, starting with 0 and 1. For example 0 + 1 = 1, 1 + 1 = 2, 1 + 2 = 3, and so on. Ultimately, we could go on forever but the first few numbers in the sequence are as follows: 0 , 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144.
The extension ratios are calculated by dividing each number in the sequence by the number preceding it. For example 0/1 = 0, 1/1 = 1, 2/1 = 2, 3/2 = 1.5, 5/3 = 1.6666..., 8/5 = 1.6, 13/8 = 1.625, 21/13 = 1.6153..., 34/21 = 1.6190..., 55/34 = 1.6176..., 89/55 = 1.6181..., 144/89 = 1.6179..., and so on. The retracement ratios are calculated by inverting this process and dividing each number in the sequence by the number proceeding it. For example 0/1 = 0, 1/1 = 1, 1/2 = 0.5, 2/3 = 0.666..., 3/5 = 0.6, 5/8 = 0.625, 8/13 = 0.6153..., 13/21 = 0.6190..., 21/34 = 0.6176..., 34/55 = 0.6181..., 55/89 = 0.6179..., 89/144 = 0.6180..., and so on.
1.618 is considered to be the 'golden ratio', found in many natural phenomena such as the growth of seashells and the branching of trees. Some now speculate the universe oscillates at a frequency of 0,618 Hz, which could help to explain such phenomena, but this theory has yet to be proven.
Traders and analysts use Fibonacci retracement and extension indicators, consisting of horizontal lines representing different Fibonacci ratios, for identifying potential levels of support and resistance. Fibonacci ranges are typically drawn from left to right, with retracement levels representing ratios inside of the current range and extension levels representing ratios extended outside of the current range. If the current wave cycle ends on a swing low, the Fibonacci range is drawn from peak to trough. If the current wave cycle ends on a swing high the Fibonacci range is drawn from trough to peak.
Harmonic Patterns
The concept of harmonic patterns in trading was first introduced by H.M. Gartley in his book "Profits in the Stock Market", published in 1935. Gartley observed that markets have a tendency to move in repetitive patterns, and he identified several specific patterns that he believed could be used to predict future price movements.
Since then, many other traders and analysts have built upon Gartley's work and developed their own variations of harmonic patterns. One such contributor is Larry Pesavento, who developed his own methods for measuring harmonic patterns using Fibonacci ratios. Pesavento has written several books on the subject of harmonic patterns and Fibonacci ratios in trading. Another notable contributor to harmonic patterns is Scott Carney, who developed his own approach to harmonic trading in the late 1990s and also popularised the use of Fibonacci ratios to measure harmonic patterns. Carney expanded on Gartley's work and also introduced several new harmonic patterns, such as the Shark pattern and the 5-0 pattern.
The bullish and bearish Gartley patterns are the oldest recognized harmonic patterns in trading and all the other harmonic patterns are ultimately modifications of the original Gartley patterns. Gartley patterns are fundamentally composed of 5 points, or 4 waves.
Bullish and Bearish Cassiopeia A Harmonic Patterns
• Bullish Cassiopeia A patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being higher than both the first and second troughs, while the second trough is also higher than the first.
• Bearish Cassiopeia A patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being lower than both the first and second peaks, while the second peak is also lower than the first.
The ratio measurements I use to detect the patterns are as follows:
• Wave 1 of the pattern, generally referred to as XA, has no specific ratio requirements.
• Wave 2 of the pattern, generally referred to as AB, should retrace by at least 11.34%, but no further than 22.31% of the range set by wave 1.
• Wave 3 of the pattern, generally referred to as BC, should extend by at least 225.7%, but no further than 341% of the range set by wave 2.
• Wave 4 of the pattern, generally referred to as CD, should retrace by at least 77.69%, but no further than 88.66% of the range set by wave 3.
Measurement Tolerances
In general, tolerance in measurements refers to the allowable variation or deviation from a specific value or dimension. It is the range within which a particular measurement is considered to be acceptable or accurate. In this script I have applied this concept to the measurement of harmonic pattern ratios to increase to the frequency of pattern occurrences.
For example, the AB measurement of Gartley patterns is generally set at around 61.8%, but with such specificity in the measuring requirements the patterns are very rare. We can increase the frequency of pattern occurrences by setting a tolerance. A tolerance of 10% to both downside and upside, which is the default setting for all tolerances, means we would have a tolerable measurement range between 51.8-71.8%, thus increasing the frequency of occurrence.
█ FEATURES
Inputs
• AB Lower Tolerance
• AB Upper Tolerance
• BC Lower Tolerance
• BC Upper Tolerance
• CD Lower Tolerance
• CD Upper Tolerance
• Pattern Color
• Label Color
• Show Projections
• Extend Current Projection Lines
Alerts
Users can set alerts for when the patterns occur.
█ LIMITATIONS
All green and red candle calculations are based on differences between open and close prices, as such I have made no attempt to account for green candles that gap lower and close below the close price of the preceding candle, or red candles that gap higher and close above the close price of the preceding candle. This may cause some unexpected behaviour on some markets and timeframes. I can only recommend using 24-hour markets, if and where possible, as there are far fewer gaps and, generally, more data to work with.
█ NOTES
I know a few people have been requesting a single indicator that contains all my patterns and I definitely hear you on that one. However, I have been very busy working on other projects while trying to trade and be a human at the same time. For now I am going to maintain my original approach of releasing each pattern individually so as to maintain consistency. But I am now also working on getting my some of my libraries ready for public release and in doing so I will finally be able to fit all patterns into one script. I will also be giving my scripts some TLC by making them cleaner once I have the libraries up and running. Please bear with me in the meantime, this may take a while. Cheers!
Multi-Timeframe Momentum Indicator [Ox_kali]The Multi-Timeframe Momentum Indicator is a trend analysis tool designed to examine market momentum across various timeframes on a single chart. Utilizing the Relative Strength Index (RSI) to assess the market’s strength and direction, this indicator offers a multidimensional perspective on current trends, enriching technical analysis with a deeper understanding of price movements. Other oscillators, such as the MACD and StochRSI, will be integrated in future updates.
Regarding the operation with the RSI: when its value is below 50 for a given period, the trend is considered bearish. Conversely, a value above 50 indicates a bullish trend. The indicator goes beyond the isolated analysis of each period by calculating an average of the displayed trends, based on user preferences. This average, ranging from “Strong Down” to “Strong Up,” reflects the percentage of periods indicating a bullish or bearish trend, thus providing a precise overview of the overall market condition.
Key Features:
Multi-Timeframe Analysis : Allows RSI analysis across multiple timeframes, offering an overview of market dynamics.
Advanced Customization : Includes options to adjust the RSI period, the RSI trend threshold, and more.
Color and Transparency Options : Offers color styles for bullish and bearish trends, as well as adjustable transparency levels for personalized visualization.
Average Trend Display : Calculates and displays the average trend based on activated timeframes, providing a quick summary of the current market state.
Flexible Table Positioning : Allows users to choose the indicator’s display location on the chart for seamless integration.
List of Parameters:
RSI Period : Defines the RSI period for calculation.
RSI Up/Down Threshold: Threshold for determining bullish or bearish trends of the RSI.
Table Position: Location of the indicator’s display on the chart.
Color Style : Selection of the color style for the indicator.
Strong Down/Up Color (User) : Customization of colors for strong market movements.
Table TF Transparency : Adjustment of the transparency level for the timeframe table.
Show X Minute/Hour/Day/Week Trend : Activation of the RSI display for specific timeframes.
Show AVG : Option to display or not the calculated average trend.
the Multi-Timeframe Momentum Indicator , stands as a comprehensive tool for market trend analysis across various timeframes, leveraging the RSI for in-depth market insights. With the promise of future updates including the integration of additional oscillators like the MACD and StochRSI, this indicator is set to offer even more robust analysis capabilities.
Please note that the MTF-Momentum 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.
Delta ZigZag [LuxAlgo]The Delta ZigZag indicator is focused on volume analysis during the development of ZigZag lines. Volume data can be retrieved from a Lower timeframe (LTF) or real-time Tick data.
Our Delta ZigZag publication can be helpful in detecting indications of a trend reversal or potential weakening/strengthening of the trend.
This indicator by its very nature backpaints, meaning that the displayed components are offset in the past.
🔶 USAGE
The ZigZag line is formed by connecting Swings , which can be set by adjusting the Left and Right settings.
Left is the number of bars for evaluation at the left of the evaluated point.
Right is the number of bars for evaluation at the right of the evaluated point.
A valid Swing is a value higher or lower than the bars at the left/right .
A higher Left or Right set number will generally create broader ZigZag ( ZZ ) lines, while the drawing of the ZZ line will be delayed (especially when Right is set higher). On the other hand, when Right is set at 0, ZZ line are drawn quickly. However, this results in a hyperactive switching of the ZZ direction.
To ensure maximum visibility of values, we recommend using " Bars " from the " Bar's style " menu.
🔹 Volume examination
The script provides two options for Volume examination :
Examination per ZigZag line
Examination per bar
Bullish Volume is volume associated with a green bar ( close > open )
Bearish Volume is volume associated with a red bar ( close < open )
Neutral Volume (volume on a " close == open" bar) is not included in this publication.
🔹 Examination per ZigZag line
As long as the price moves in the same direction, the present ZZ line will continue. When the direction of the price changes, the bull/bear volume of the previous ZZ line is evaluated and drawn on the chart.
The ZZ line is divided into two parts: a bullish green line and a bearish red line.
The intercept of these two lines will depend on the ratio of bullish/bearish volume
This ratio is displayed at the intercept as % bullish volume (Settings -> Show % Bullish Volume)
* Note that we cannot draw between 2 bars. Therefore, if a ZZ line is only 1 bar long, the intercept will be at one of those 2 bars and not in between. The percentage can be helpful in interpreting bull/bear volume.
In the example above (2 most right labels), you can see that an overlap of 2 labels is prevented, ensuring the ability to evaluate the bullish % volume of the ZZ line .
The percentage will be colored green when more than 50%, red otherwise. The color will fade when the direction is contradictory; for example, 40% when the ZZ line goes up or 70% when the ZZ line falls.
More details can be visualized by enabling " Show " and choosing 1 of 3 options:
Average Volume Delta/bar
Average Volume/bar
Normalised Volume Delta
For both 'averages', the sum of " Volume "/" Volume Delta " of every bar on the ZZ line is divided by the number of bars (per ZZ line ).
The " Normalised Volume Delta " is calculated by dividing the sum of " Delta Volume " by the sum of " Volume " (neutral volume not included), which is displayed as a percentage.
All three options will display a label at the last point of the ZZ line and be coloured similarly: green when the ratio bullish/bearish volume of the ZZ line is bullish and red otherwise. Here, the colour also fades when it is bullish, but the ZZ line falls or when it is bearish with a rising ZZ line .
A tooltip at each label hints at the chosen option.
You can pick one of the options or combine them together.
🔹 Examination per bar
Besides information about what's happening during the ZZ line , information per bar can be visualized by enabling " Show Details " in Settings .
Split Volume per bar : show the sum of bullish (upV) and bearish (dnV) volume per bar
Volume (bar) : Total Volume per bar (bullish + bearish volume, neutral volume not included)
Δ Volume (bar) : Show Delta Volume (bullish - bearish volume)
🔹 Using Lower Timeframe Data
The ZigZag lines using LTF data are colored brighter. Also note the vertical line where the LTF data starts and the gap between ZZ lines with LTF data and without.
When " LTF " is chosen for the " Data from: " option in Settings , data is retrieved from Lower Timeframe bars (default 1 minute). When the LTF setting is higher than the current chart timeframe, the LTF period will automatically be adjusted to the current timeframe to prevent errors.
As there is a 100K limit to the number of LTF intrabars that can be analyzed by a script, this implies the higher the difference between LTF and current TF; the fewer ZZ lines will be seen.
🔹 Using real-time tick data
The principles are mostly the same as those of LTF data. However, in contrast with LTF data, where you already have LTF ZZ lines when loading the script, real-time tick data-based ZZ lines will only start after loading the chart.
Changing the settings of a ticker will reset everything. However, returning to the same settings/ticker would show the cached data again.
Here, you can see that changing settings reset everything, but returning after 2 minutes to the initial settings shows the cached data. Don't expect it to be cached for hours or days, though.
🔶 DETAILS
The timeframe used for LTF data should always be the same or lower than the current TF; otherwise, an error occurs. This snippet prevents the error and adjusts the LTF to the current TF when LTF is too high:
res = input.timeframe('1')
res := timeframe.from_seconds( math.min( timeframe.in_seconds(timeframe.period), timeframe.in_seconds(res) ) )
🔶 SETTINGS
Data from: LTF (Lower TimeFrame) or Ticks (Real-time ticks)
Res: Lower TimeFrame (only applicable when choosing LTF )
Option: choose " high/low " or " close " for Swing detection
🔹 ZigZag
Left: Lookback period for Swings
Right: Confirmation period after potential Swing
🔹 ZigZag Delta
Show % Bullish Volume : % bullish volume against total volume during the ZZ line
Show:
Average Volume Delta/bar
Average Volume/bar
Normalised Volume Delta
See USAGE for more information
🔹 Bar Data
Split Volume per bar: shows the sum of bullish ( upV ) and bearish ( dnV ) volume per bar
Volume (bar): Total Volume per bar (bullish + bearish volume, neutral volume not included)
Δ Volume (bar): Show Volume Delta (bullish - bearish volume)
MTF HalfTrendIntroduction
A half-trend indicator is a technical analysis tool that uses moving averages and price data to find potential trend reversal and entry points in the form of graphical arrows showing market turning points.
The salient features of this indicator are:
- It uses the phenomenon of moving averages.
- It is a momentum indicator.
- It can indicate a trend change.
- It is capable of detecting a bullish or bearish trend reversal.
- It can signal to sell/buy.
- It is a real-time indicator.
Multi-Timeframe Application
A standout feature is its flexibility across timeframes. Traders have the liberty to choose any timeframe on the chart, enhancing the tool's versatility and making it suitable for both short-term and long-term analyses.
Principle of the Half Trend indicator
This indicator is based on the moving averages. The moving average is the average of the fluctuation or change in the price of an asset. These averages are taken for a time interval.
So, a half-trend indicator takes the moving averages phenomenon as its principle for working. The most commonly used moving averages in a half trend indicator are:
- Relative strength index (RSI)
- EMA (estimated moving average)
Components of a Half Trend indicator
There are two main components of a half trend indicator:
- Half trend line
- Arrows
- ATR lines
Half trend line
Half trend line represents this indicator on a candlestick chart. This line shows the trend of a chart in real-time. A half-trend line is based on the moving averages.
There are two further components of a half-trend line:
- Redline
- Blue line
A red line represents a bearish trend. When the half-trend line turns red, a trend is facing a dip. It is time for the bears to take control of the market. A bearish control of the market represents the domination of sellers in the market.
On the other hand, the blue line represents the bullish nature of the market. It tells a trader that the bullish sentiment of the market is prevailing. A bullish market means the number of buyers is significantly greater than the number of sellers.
Moreover, a trader can change these colors to his choice by customization.
Arrows
There are two types of arrows in this indicator which help a trader with the entry and exit points. These arrows are,
- Blue arrow
- Red arrow
A blue arrow signals a buying trade; on the other hand, a red arrow tells a trader about the selling of the assets. These arrows work with the moving average line to formulate a trading strategy.
The color of these arrows is changed if a trader desires so.
ATR lines
The ATR blue and red lines represent the Average True Range of the Half trend line. They may be used as stop loss or take profit levels.
Pros and Cons
Pros
- It is a very easy to eyes indicator.
- This is a very useful friendly indicator.
- It provides sufficient information to beginner traders.
- It provides sufficient information for entry points in a trade.
- A half-trend indicator provides a good exit strategy for a trader.
- It provides information about market reversals.
- It helps a trader to find a bullish and bearish sentiment in the market.
Cons
- It is a real-time indicator. So, it can lag.
- The lagging of this indicator can lead to miss opportunities.
- The most advanced and professional traders may not rely on this indicator for crucial trading decisions.
- The lagging of this indicator can predict false reversals of the market.
- It can create false signals.
- It requires the confluence of the other technical tools for a better success ratio.
Settings for Half Trend indicator
The default settings for half trend indicator are:
Amplitude = 2
Channel deviation = 2
Different markets or financial instruments may require different settings for optimal execution.
Amplitude: The degree that the Half trend line takes the internal variables into consideration. The higher the number, the fewer trades. The default value is 2.
Channel deviation: The ATR value calculation from the Half trend line. The default value is 2.
Trading strategy
It is an effective indicator in terms of strategy formation for a trading setup. The new and beginner trades can take benefit from this indicator for the formulation of a good trading setup. This indicator also helps seasoned and professional traders formulate a good trading setup with other technical tools.
The trading strategy involving a half-trend indicator is divided into three parts:
- Entry and exit
- Risk management
- Take profit
Entry and exit
It is an effective indicator that provides sufficient information about the entry and exit points in a trading setup. The profit of a trader is directly proportional to the appropriate entry and exit points. So, it is a crucial step in any trading setup.
The blue and red arrows provide information about the entry and exit points in a trading setup. Furthermore, the entry and exit for the bullish and bearish setups are as follows.
Entry and exit for a bullish setup
If a blue arrow appears under the half-trend line, it means the bullish sentiment of the market is getting stronger in the future. So, it is a signal for entry in a bullish setup.
As the red arrow appears on the chart, it is a signal to exit your trade. The red arrow represents a reversal in the market, so it is a good opportunity to close your trade in a bullish setup.
Entry and exit for a bearish setup
Suppose a red arrow appears above the red moving average line. It is a good opportunity to enter a trade in a bearish setup. The red line represents that sooner the sellers are going to take control and the value of the asset is about to face a dip. So it is the best time to make your move.
As the opposite arrow appears in the chart, it is time to exit from a bearish trade setup.
Re-entering a position
Bullish setup
- The half-trend line is blue.
- At least one candle closes below the blue half-trend line.
- Enter on the candle that closes above the blue half-trend line.
Bearish setup
- The half-trend line is red.
- At least one candle closes above the red half-trend line.
- Enter on the candle that closes below the red half-trend line.
Risk management
Risk management is an integral part of a trading setup. It is an important step to protect your potential profits and losses.
When trading in a bullish market, place the stop loss at the prior swing low. It will help you to cut your losses in case the prices move to the lower end.
In the case of a bearish market, place your stop loss above the prior swing high.
A trader may trail the stop loss using the ATR lines.
The new trader often makes mistakes in the placement of the stop loss. If you don’t place the stop loss at an appropriate point. It can drain your bank account and ruin your trading experience. Is is recommended not to risk more than 2% of your trading account, per trade.
Take profit
The blue ATR line may be used as one take profit level on a bullish setup followed by the previous swing high. The signal reversal would indicate the final take profit and closing of any position.
The red ATR line may be used as one take profit level on a bearish setup followed by the previous swing low. The signal reversal would indicate the final take profit and closing of any position.
Conclusion
A half trend indicator is a decent indicator that can transform your trading experience. It is a dual indicator that is based on the moving averages as well as helps you to form a trading strategy. If you are a new trader, this indicator can help you to learn and flourish in the trading universe. If you are a seasoned trader, I recommend you use this indicator with other technical analysis tools to enhance your success ratio.
All credits go to:
- @everget the original creator of this indicator (I just added the MTF capability).
- Ali Muhammad original author of much of the description used.
TSF 20What kind of traders/investors are we?
We are trend followers. We look for assets that are outperforming the market. Our scripts are designed to be used on the higher timeframes (weekly/daily) to catch the large moves/trends in the market.
Our scripts have been designed to help you follow the trend in an asset.
What does this script do?
This script is designed to colour candles on a chart based on their position relative to two sets of Bollinger Bands. Here's a breakdown of how it functions:
Bollinger Bands Setup:
The script uses two sets of Bollinger Bands, both with a length of 20 and based on the closing prices of candles.
The first set of Bollinger Bands uses a standard deviation (StdDev) of 1.
The second set uses a standard deviation of 2.
Neither set of bands is displayed on the chart.
Coloring Candles:
Green Candle: A candle is coloured green if its close is above the upper Bollinger Band with StdDev 1 but below the upper Bollinger Band with StdDev 2. This indicates a moderately bullish sentiment.
Dark Green Candle: A candle is colored dark green when its close is above the upper Bollinger Band with StdDev 2. This implies a stronger bullish sentiment.
Red Candle: A candle is coloured red if its close is below the lower Bollinger Band with StdDev 1 but above the lower Bollinger Band with StdDev 2. This indicates a moderately bearish sentiment.
Dark Red Candle: A candle is colored dark red if its close is below the lower Bollinger Band with StdDev 2, indicating a stronger bearish sentiment.
Grey Candle: A candle is coloured grey if it closes between the upper and lower Bollinger Bands with StdDev 1. This usually signifies a neutral market condition or periods of consolidation.
In summary, this script is an analytical tool that visually represents the market's bullishness or bearishness relative to the Bollinger Bands, without displaying the bands themselves. It's designed to help investors quickly assess market conditions and sentiment based on the colour-coded representation of price action in relation to these volatility bands.
What makes this script unique?
Innovative Color-Coding System: Candles are colored in varying shades of green and red, providing an immediate visual cue about the market's bullish or bearish tendencies. A neutral grey is also used, offering a quick assessment of market indecision or consolidation phases.
Dual Bollinger Band Analysis: Utilizes two sets of Bollinger Bands (StdDev 1 and StdDev 2) to gauge market volatility and sentiment. This dual-band approach enhances the precision of sentiment analysis compared to using a single standard deviation.
Customizable and Non-Obtrusive: Designed to keep your charts clean and readable. The Bollinger Bands themselves are not displayed, reducing visual clutter and allowing for a focus on price action.
Versatile and Adaptable: Suitable for various trading styles and timeframes. Whether you are a short-term or long-term investor, this indicator can be seamlessly integrated into your analysis toolkit.
Valuable Addition to Market Analysis: Enhances traditional candlestick analysis and complements other technical indicators and strategies. It offers an additional layer of understanding market dynamics and can be used to confirm or question other signals.
How It Adds Value:
Enhanced Visual Analysis: By colour-coding candles based on Bollinger Band positioning, it simplifies the interpretation of market sentiment and volatility, making it easier to spot trends and reversals.
Strategic Decision Making: Helps traders make more informed decisions by clearly highlighting bullish and bearish strength, or lack thereof, in the market.
Time Efficiency: Reduces the time spent analyzing charts by providing an immediate visual representation of market conditions.
Originality: Offers a fresh perspective and an innovative approach to using Bollinger Bands, making it a unique addition to the community's toolbox.
Fair Value Gap Screener | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Fair Value Gap Screener! This screener can provide information about the latest Fair Value Gaps in up to 5 tickers. You can also customize the algorithm that finds the Fair Value Gaps and the styling of the screener.
Features of the new Fair Value Gap (FVG) Screener :
Find Latest Fair Value Gaps Accross 5 Tickers
Shows Their Information Of :
Latest Status
Number Of Retests
Consumption Percent
Bullish & Bearish Volume
Customizable Algoritm / Styling
📌 HOW DOES IT WORK ?
A Fair Value Gap generally occur when there is an imbalance in the market. They can be detected by specific formations within the chart. This screener then finds Fair Value Gaps accross 5 different tickers, and shows the latest information about them.
Status ->
Far -> The current price is far away from the FVG.
Approaching ⬆️/⬇️ -> The current price is approaching the FVG, and the direction it's approaching from.
Inside -> The price is currently inside the FVG.
Retests -> Retest means the price tried to invalidate the FVG, but failed to do so. Here you can see how many times the price retested the FVG.
Consumed -> FVGs get consumed when a Close / Wick enters the FVG zone. For example, if the price hits the middle of the FVG zone, the zone is considered 50% consumed.
Bullish / Bearish Volume -> Bullish & Bearish volume of a FVG is calculated by analyzing the bars that formed it. For example in a bullish FVG, the bullish volume is the total volume of the first 2 bars forming the FVG, and the bearish volume is the volume of the 3rd bar that forms it.
🚩UNIQUENESS
This screener can detect latest Fair Value Gaps and give information about them for up to 5 tickers. This saves the user time by showing them all in a dashboard at the same time. The screener also uniquely shows information about the number of retests and the consumed percent of the FVG, as well as it's bullish & bearish volume. We believe that this extra information will help you spot reliable FVGs easier.
⚙️SETTINGS
1. Tickers
You can set up to 5 tickers for the screener to scan Fair Value Gaps here. You can also enable / disable them and set their individual timeframes.
2. General Configuration
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
Squeeze Momentum DeluxeThe Squeeze Momentum Deluxe is a comprehensive trading toolkit built with features of momentum, volatility, and price action. This script offers a suite for both mean reversion and trend-following analysis. Developed based on the original TTM Squeeze implementation by @LazyBear, this indicator introduces several innovative components to enhance your trading insights.
🔲 Components and Features
Momentum Oscillator - as rooted in the TTM Squeeze, quantifies the relationship between price and its extremes over a defined period. By normalizing the calculation, the values become comparable throughout time and across securities, allowing for a nuanced assessment of Bullish and Bearish momentum. Furthermore, by presenting it as a ribbon with a signal line we gain additional information about the direction of price swings.
Squeeze Bars - The original squeeze concept is based on the relationship between the Bollinger Bands and Keltner Channel , once the BB resides inside the KC a squeeze occurs. By understanding their fundamentals a new form of calculation can be inferred.
method bb(float src, simple int len, simple float mult) => method kc(float src, simple int len, simple float mult) =>
float basis = ta.sma (src, len) float basis = ta.sma (src, len)
float dev = ta.stdev(src, len) float rng = ta.atr ( len)
float upper = basis + dev * mult float upper = basis + rng * mult
float lower = basis - dev * mult float lower = basis - rng * mult
Both BB and KC are constructed upon a moving average with the addition of Standard Deviation and Average True Range respectively. Therefore, the calculation can be transformed to when the Stdev is lower than the ATR a squeeze occurs.
method sqz(float src, simple int len) =>
float dev = ta.stdev(src, len)
float atr = ta.atr ( len)
dev < atr ? true : false
This indicator uses three different thresholds for the ATR to gain three levels of price "Squeeze" for further analysis.
Directional Flux- This component measures the overall direction of price volatility, offering insights into trend sentiment. Presented as waves in the background, it includes an OverFlux feature to signal extreme market bias in a particular direction which can signal either exhaustion or vital continuation. Additionally, the user can choose if to base the calculation on Heikin-Ashi Candles to bias the tool toward trend assessment.
Confluence Gauges - Placed at the top and bottom of the indicator, these gauges measure confluence in the relationship between the Momentum Oscillator and Directional Flux. They provide traders with an easily interpretable visual aid for detecting market sentiment. Reversal doritos displayed alongside them contribute to mean reversion analysis.
Divergences (Real-Time) - Equipped with a custom algorithm, the indicator detects real-time divergences between price and the oscillator. This dynamic feature enhances your ability to spot potential trend reversals as they occur.
🔲 Settings
Directional Flux Length - Adjusts the period of which the background volatility waves operate on.
Trend Bias - Bases the calculation of the Flux to HA candles to bias its behavior toward the trend of price action.
Squeeze Momentum Length - Calibrates the length of the main oscillator ribbon as well as the period for the squeeze algorithm.
Signal - Controls the width of the ribbon. Lower values result in faster responsiveness at the cost of premature positives.
Divergence Sensitivity - Adjusts a threshold to limit the amount of divergences detected based on strength. Higher values result in less detections, stronger structure.
🔲 Alerts
Sell Signal
Buy Signal
Bullish Momentum
Bearish Momentum
Bullish Flux
Bearish Flux
Bullish Swing
Bearish Swing
Strong Bull Gauge
Strong Bear Gauge
Weak Bull Gauge
Weak Bear Gauge
High Squeeze
Normal Squeeze
Low Squeeze
Bullish Divergence
Bearish Divergence
As well as the option to trigger 'any alert' call.
The Squeeze Momentum Deluxe is a comprehensive tool that goes beyond traditional momentum indicators, offering a rich set of features to elevate your trading strategy. I recommend using toolkit alongside other indicators to have a wide variety of confluence to therefore gain higher probabilistic and better informed decisions.
Morning & Evening Star This Pine Script code is designed to identify Morning Star and Evening Star candlestick patterns on a chart. Here's how it works:
Calculate Candle Body and Wick Sizes: The script calculates the size of the candle body and wick based on the difference between the close and open prices, as well as the difference between the high and the maximum of the close and open prices.
Determine if the Candle is a Doji: It checks if the candle is a doji by comparing the size of the body to a fraction of the wick size. If the body size is less than or equal to 20% of the wick size, it is considered a doji.
Determine if the Current Candle is Bullish or Bearish: It checks if the current candle is bullish (close price is higher than open price) or bearish (close price is lower than open price).
Plot Shapes for Doji and Candles: It plots shapes on the chart to indicate buy and sell signals based on the presence of a doji and the formation of Morning Star or Evening Star patterns. These shapes are displayed below (for buy signals) or above (for sell signals) the respective candlesticks.
Combine this indicator with my support and resistance zones indicator for better results
Fibonacci Inversion Fair Value Gaps | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Fibonacci Inversion Fair Value Gaps (IFVG) indicator! Inverse Fair Value Gaps occur when a Fair Value Gap becomes invalidated. They reverse the role of the original Fair Value Gap, making a bullish zone bearish and vice versa. This indicator plots the Fibonacci retracement levels of the IFVG, which often act like support & resistance levels.
Features of the new Fibonacci IFVGs Indicator :
Renders Bullish / Bearish IFVG Zones
Renders Fibonacci Retracement Levels Of IFVGs
Combination Of Overlapping FVG Zones
Variety Of Zone Detection / Sensitivity / Filtering / Invalidation Settings
High Customizability
🚩UNIQUENESS
This indicator stands out with its ability to render up to 3 Fibonacci retracement levels of IFVGs. Fibonacci retracement levels are widely used within trading, and we wanted to implement them for IFVG zones. You can also customize the FVG Filtering method, FVG & IFVG Zone Invalidation, Detection Sensitivity etc. according to your needs to get the best performance from the indicator.
📌 HOW DOES IT WORK ?
A Fair Value Gap generally occur when there is an imbalance in the market. They can be detected by specific formations within the chart. An Inverse Fair Value Gap is when a FVG becomes invalidated, thus reversing the direction of the FVG.
This indicator renders 0.618, 0.5 and 0.382 (can be changed from the settings) Fibonacci retracement levels of the IFVGs, which often act as support and resistances. Check this example :
⚙️SETTINGS
1. General Configuration
FVG Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
IFVG Zone Invalidation -> Select between Wick & Close price for IFVG Zone Invalidation. This setting also switches the type for IFVG consumption.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
Show Historic Zones -> If this option is on, the indicator will render invalidated IFVG zones as well as current IFVG zones. For a cleaner look at current IFVG zones which are not invalidated yet, you can turn this option off.
2. Fibonacci Retracement Levels
You can enable / disable up to 3 different Fibonnaci Retracement levels at this group of settings. You can also switch their line styles between solid, dashed and dotted as well as changing their colors.
Relative Strength Scoring SystemRelative Strength Scoring System :
Important prerequisite :
This indicator can be loaded on any forex chart, i.e. a currency pair, but must not be loaded on any other asset due to certain market closures.
The chart timeframe must be less than or equal to the trading timeframe, which is the indicator's first parameter. A timeframe equal to that of the "Trading Timeframe" parameter is preferable.
Introduction :
This indicator measures the relative strength of a currency against all other currencies using spread formulas. It gives an indication of which currencies are bullish, neutral or bearish. The ultimate aim of this indicator is to find out which pair will generate a higher probability of gain than the others by pairing the most bullish pair with the most bearish pair.
Spread formulas :
To find the relative strength of a currency compared with others, we use the following spreads formulas :
USD = (FX:USDJPY/100+SAXO:USDEUR+FX:USDCHF+SAXO:USDGBP+FX:USDCAD+SAXO:USDAUD+FX_IDC:USDNZD)/7
JPY = (SAXO:JPYUSD/100+FX_IDC:JPYAUD/100+FX_IDC:JPYCAD/100+FX_IDC:JPYNZD/100+FX_IDC:JPYCHF/100+SAXO:JPYEUR/100+FX_IDC:JPYGBP/100)/7
CHF = (FX:CHFJPY/100+SAXO:CHFUSD+SAXO:CHFEUR+FX_IDC:CHFGBP+FX_IDC:CHFCAD+SAXO:CHFAUD+FX_IDC:CHFNZD)/7
EUR = (FX:EURJPY/100+FX:EURUSD+FX:EURCHF+FX:EURGBP+FX:EURCAD+FX:EURAUD+FX:EURNZD)/7
GBP = (FX:GBPJPY/100+FX:GBPUSD+FX:GBPCHF+SAXO:GBPEUR+FX:GBPCAD+FX:GBPAUD+FX:GBPNZD)/7
CAD = (FX:CADJPY/100+SAXO:CADUSD+FX:CADCHF+FX_IDC:CADGBP+SAXO:CADEUR+FX_IDC:CADAUD+FX_IDC:CADNZD)/7
AUD = (FX:AUDJPY/100+FX:AUDUSD+FX:AUDCHF+SAXO:AUDGBP+FX:AUDCAD+SAXO:AUDEUR+FX:AUDNZD)/7
NZD = (FX:NZDJPY/100+FX:NZDUSD+FX:NZDCHF+SAXO:NZDGBP+FX:NZDCAD+SAXO:NZDAUD+SAXO:NZDEUR)/7
CRYPTO = (BITSTAMP:BTCUSD+BITSTAMP:ETHUSD+BITSTAMP:LTCUSD+BITSTAMP:BCHUSD)/4
Timeframes :
As mentioned in the prerequisites, the chart timeframe must not be greater than the trading timeframe. The latter corresponds to the timeframe chosen by the trader to enter a position, and is the indicator's first parameter. Once this has been chosen, the algorithm selects the timeframes of the "Trend" and "Velocity" charts. Here's how it allocates them :
Trading TF => ("Velocity TF", "Trend TF")
"5min" => ("15min ", "60min")
"15min" => ("60min ", "4h")
"30min" => ("2h ", "8h")
"60min" => ("4h ", "12h")
"4h" => ("12h", "1D")
"6h" => ("1D", "3D")
"8h" => ("1D", "4D")
"12h" => ("2D", "1W")
"1D" => ("3D", "1W")
Trend Scoring System :
When the timeframe of the trend graph has been allocated, the algorithm will establish this graph's score using three criteria :
Trend chart pivot points: if the last two pivots, high and low, are increasing, the score is 1; if they are decreasing, the score is -1; else the score is 0.
SMA: if its slope is increasing with a candle strictly above the SMA value, the score is 1; if its slope is decreasing with a candle strictly below it, the score is -1; otherwise, it is 0.
MACD: if the MACD is positive, the score is 1, if it is negative, the score is -1; else it's 0.
We then sum the scores of these three criteria to find the trend score.
Velocity Scoring System :
In the same way, we analyze the score of the "velocity" graph with its corresponding timeframe using three criteria :
The EMA: if its slope is increasing with a candle strictly above the EMA value, the score is 1; if its slope is decreasing with a candle strictly below it, the score is -1; otherwise, it is 0.
The RSI: if the RSI's EMA has an increasing slope with an RSI strictly greater than the value of this EMA, the score is 1; and if the RSI's EMA has a decreasing slope with an RSI strictly less than this EMA, the score is -1; otherwise it is 0.
SAR parabolic: if the SAR is below the price, the score is 1; if it is above the price, the score is -1.
We then sum the scores of these three criteria to find the velocity score.
Relative Strength Scoring System :
Once the trend score and velocity score have been calculated, we determine the relative strength score of each currency using the following algorithm :
If trend score >=2 and velocity score >=2, the currency is bullish.
If trend score <=2 and velocity score <=2, currency is bearish
If (trendScore>=2 or velocityScore>=2) and (trendScore=1 or velocityScore=1) the currency is not yet bullish
If (trendScore<=2 or velocityScore<=2) and (trendScore=-1 or velocityScore=-1) the currency is not yet bearish.
Otherwise the currency is neutral
Parameters :
Trading Timeframe: the trading timeframe chosen by the trader for which he makes his position entry and exit decisions. Default is 1h
Pivot Legs: Parameter used for the chart "Trend" setting the pivot strength to the right and left of high/low. Default is 2
SMA Length: SMA length of the chart "Trend". Default is 20
MACD Fast Length: Length of the MACD fast SMA calculated on the chart "Trend". Default is 12
MACD Slow Length: Length of the MACD slow SMA calculated on the chart "Trend". Default is 26
MACD Signal Length: Length of the MACD signal SMA calculated on the chart "Trend". Default is 9
EMA Length: EMA length of the "Velocity" graph. Default is 13
RSI Length: RSI length of the "Velocity" graph. Default is 14
RSI EMA Length: Length of the RSI EMA. Default is 9
Parabolic SAR Start: Start of the SAR parabola in the "Velocity" graph. Default is 0.02
Parabolic SAR Increment: Increment of the SAR parabola in the "Velocity" graph. Default is 0.02
Parabolic SAR Max: Maximum of the SAR parabola in the "Velocity" graph. Default is 0.2
Conclusion :
This indicator has been designed to determine the relative strength of the major currencies against each other. The aim is to know which pair to trade at the right time in order to maximize the probability of a successful trade. For example, if the USD is bullish and the NZD bearish, we'll short the NZDUSD pair.
Enjoy this indicator and don't forget to take the trade ;)
