Zero Lag Exponential Moving Average ForLoop [InvestorUnknown]Overview
The Zero Lag Exponential Moving Average (ZLEMA) ForLoop indicator is designed for traders seeking a responsive and adaptive tool to identify trend changes. By leveraging a range of lengths and different moving average (MA) types, this indicator helps smooth out price data and provides timely signals for market entry and exit.
User Inputs
Start and End Lengths: Define the range of lengths over which the IIRF values are calculated.
Moving Average Type: Choose from EMA, SMA, WMA, VWMA, or TMA for trend smoothing.
Moving Average Length: Specify the length for the chosen MA type.
Calculation Source: Select the price data used for calculations.
Signal Calculation
Signal Mode (sigmode): Determines the type of signal generated by the indicator. Options are "Fast", "Slow", "Thresholds Crossing", and "Fast Threshold".
1. Slow: is a simple crossing of the midline (0).
2. Fast: positive signal depends if the current MA > MA or MA is above 0.99, negative signals comes if MA < MA or MA is below -0.99.
3. Thresholds Crossing: simple ta.crossover and ta.crossunder of the user defined threshold for Long and Short.
4. Fast Threshold: signal changes if the value of MA changes by more than user defined threshold against the current signal
col1 = MA > 0 ? colup : coldn
var color col2 = na
if MA > MA or MA > 0.99
col2 := colup
if MA < MA or MA < -0.99
col2 := coldn
var color col3 = na
if ta.crossover(MA,longth)
col3 := colup
if ta.crossunder(MA,shortth)
col3 := coldn
var color col4 = na
if (MA > MA + fastth)
col4 := colup
if (MA < MA - fastth)
col4 := coldn
color col = switch sigmode
"Slow" => col1
"Fast" => col2
"Thresholds Crossing" => col3
"Fast Threshold" => col4
Visualization Settings
Bull Color (colup): The color used to indicate bullish signals.
Bear Color (coldn): The color used to indicate bearish signals.
Color Bars (barcol): Option to color the bars based on the signal.
Custom function
// Function to calculate an array of ZLEMA values over a range of lengths
ZLEMAForLoop(a, b, c, s) =>
// Initialize an array to hold ZLEMA trend values
var Array = array.new_float(b - a + 1, 0.0)
// Loop through the range from 'a' to 'b'
for x = 0 to (b - a)
// Calculate the current length
len = a + x
// Calculate the lag based on the length
lag = math.floor((len - 1) / 2)
// Calculate the smoothing factor alpha
alpha = 2 / (len + 1)
// Initialize the ZLEMA variable
zlema = 0.0
// Compute the ZLEMA value
zlema := na(zlema ) ? (s + s - s ) : alpha * (s + s - s ) + (1 - alpha) * nz(zlema )
// Determine the trend based on ZLEMA value
trend = zlema > zlema ? 1 : -1
// Store the trend in the array
array.set(Array, x, trend)
// Calculate the average of the trend values
Avg = array.avg(Array)
// Apply the selected moving average type to the average trend value
float MA = switch maType
"EMA" => ta.ema(Avg, c) // Exponential Moving Average
"SMA" => ta.sma(Avg, c) // Simple Moving Average
"WMA" => ta.wma(Avg, c) // Weighted Moving Average
"VWMA" => ta.vwma(Avg, c) // Volume-Weighted Moving Average
"TMA" => ta.trima(Avg, c) // Triangular Moving Average
=>
runtime.error("No matching MA type found.") // Error handling for unsupported MA type
float(na)
// Return the array of trends, the average trend, and the moving average
Important Considerations
Speed vs. Stability: The ZLEMA ForLoop is designed for fast response times, making it ideal for short-term trading strategies. However, its sensitivity also means it may generate more signals, some of which could be false positives.
Use with Other Indicators: To improve the reliability of the signals, it is recommended to use the ZLEMA ForLoop in conjunction with other technical indicators.
Customization: Tailor the settings to match your trading style and risk tolerance. Adjusting the lengths, MA type, and thresholds can significantly impact the indicator's performance.
Conclusion
The ZLEMA ForLoop indicator offers a flexible tool for traders looking to capture trend changes quickly. By providing multiple modes and customization options, it allows traders to fine-tune their analysis and make informed decisions. For best results, use this indicator alongside other analytical tools to confirm signals and avoid potential false entries.
Cerca negli script per "bear"
Infinite Impulse Response Filter ForLoop [InvestorUnknown]Overview
The Infinite Impulse Response Filter ForLoop indicator is designed for seeking quick and accurate trend identification. Leveraging the Infinite Impulse Response (IIR) filter technique, this indicator provides fast and responsive signals to aid in market timing and trend following.
User Inputs
Start and End Lengths: Define the range of lengths over which the IIRF values are calculated.
Moving Average Type: Choose from EMA, SMA, WMA, VWMA, or TMA for trend smoothing.
Moving Average Length: Specify the length for the chosen MA type.
Calculation Source: Select the price data used for calculations (default is close price).
Signal Calculation
Signal Mode (sigmode): Determines the type of signal generated by the indicator. Options are "Fast", "Slow", "Thresholds Crossing", and "Fast Threshold".
1. Slow: is a simple crossing of the midline (0).
2. Fast: positive signal depends if the current MA > MA or MA is above 0.99, negative signals comes if MA < MA or MA is below -0.99.
3. Thresholds Crossing: simple ta.crossover and ta.crossunder of the user defined threshold for Long and Short.
4. Fast Threshold: signal changes if the value of MA changes by more than user defined threshold against the current signal
col1 = MA > 0 ? colup : coldn
var color col2 = na
if MA > MA or MA > 0.99
col2 := colup
if MA < MA or MA < -0.99
col2 := coldn
var color col3 = na
if ta.crossover(MA,longth)
col3 := colup
if ta.crossunder(MA,shortth)
col3 := coldn
var color col4 = na
if (MA > MA + fastth)
col4 := colup
if (MA < MA - fastth)
col4 := coldn
color col = switch sigmode
"Slow" => col1
"Fast" => col2
"Thresholds Crossing" => col3
"Fast Threshold" => col4
Visualization Settings
Bull Color (colup): The color used to indicate bullish signals.
Bear Color (coldn): The color used to indicate bearish signals.
Color Bars (barcol): Option to color the bars based on the signal.
Custom function
// Function to calculate an array of IIRF values over a range of lengths
IIRFforLoop(a, b, c, s) =>
// Initialize an array to store IIRF values
var Array = array.new_float(b - a + 1, 0.0)
// Loop over the range from 'a' to 'b'
for x = 0 to (b - a)
// Calculate the length for the current iteration
len = a + x
// Calculate the IIRF alpha parameter
iirfAlpha = 2 / (len + 1)
// Calculate the lag for the IIRF calculation
iirfLag = math.round(1 / iirfAlpha - 1)
// Initialize the IIRF value
iirf = 0.0
// Update the IIRF value using the IIR filter formula
iirf := iirfAlpha * (s + ta.change(s, iirfLag)) + (1 - iirfAlpha) * nz(iirf )
// Determine the trend based on the current and previous IIRF values
trend = iirf > iirf ? 1 : -1
// Store the trend value in the array
array.set(Array, x, trend)
// Calculate the average of the IIRF values in the array
Avg = array.avg(Array)
// Calculate the moving average of the average IIRF values based on the selected MA type
float MA = switch maType
"EMA" => ta.ema(Avg, c) // Exponential Moving Average
"SMA" => ta.sma(Avg, c) // Simple Moving Average
"WMA" => ta.wma(Avg, c) // Weighted Moving Average
"VWMA" => ta.vwma(Avg, c) // Volume Weighted Moving Average
"TMA" => ta.trima(Avg, c) // Triangular Moving Average
=>
runtime.error("No matching MA type found.") // Error handling for invalid MA type
float(na)
// Return the array of IIRF values, their average, and the moving average
Important Considerations
Rapid Signal Response: The IIRF ForLoop is designed to provide very fast trend signals, making it suitable for short-term trading and quick decision-making.
Complementary Tool: While powerful, the IIRF ForLoop should be used in conjunction with other indicators and market analysis techniques to confirm signals and improve trading accuracy.
Conclusion
The Infinite Impulse Response Filter ForLoop indicator is a highly responsive and flexible tool that can significantly enhance your trading strategy. Its ability to quickly identify trends and generate signals based on various moving average types and customizable thresholds makes it invaluable for active traders. For the best results, use this indicator alongside other technical analysis tools to confirm signals and ensure robust trading decisions.
Aroon ForLoop [InvestorUnknown]Overview
The Aroon ForLoop indicator is designed to calculate an array of Aroon values over a range of lengths, providing trend signals based on various moving averages. It offers flexibility with different signal modes and visual customizations.
User Input
Start Length (a) and End Length (b): Defines the range for calculating Aroon values.
MA Type (maType) and MA Length (c): Selects the moving average type (EMA, SMA, WMA, VWMA, TMA) and its length.
Calculation Source (s): Specifies the data source for calculations.
Signal Mode (sigmode): Offers options like Fast, Slow, Thresholds Crossing, and Fast Threshold to generate signals.
Thresholds: Configures long and short thresholds for signal generation.
Visualization Options: Customizes bull and bear colors, and enables/disables bar coloring.
Alert Settings: Chooses whether to wait for bar close for alert confirmation.
Signal Calculation
Signal Mode (sigmode): Determines the type of signal generated by the indicator. Options are "Fast", "Slow", "Thresholds Crossing", and "Fast Threshold".
1. Slow: is a simple crossing of the midline (0).
2. Fast: positive signal depends if the current MA > MA or MA is above 0.99, negative signals comes if MA < MA or MA is below -0.99.
3. Thresholds Crossing: simple ta.crossover and ta.crossunder of the user defined threshold for Long and Short.
4. Fast Threshold: signal changes if the value of Aroon MA changes by more than user defined threshold against the current signal
col1 = MA > 0 ? colup : coldn
var color col2 = na
if MA > MA or MA > 0.99
col2 := colup
if MA < MA or MA < -0.99
col2 := coldn
var color col3 = na
if ta.crossover(MA,longth)
col3 := colup
if ta.crossunder(MA,shortth)
col3 := coldn
var color col4 = na
if (MA > MA + fastth)
col4 := colup
if (MA < MA - fastth)
col4 := coldn
color col = na
if sigmode == "Slow"
col := col1
if sigmode == "Fast"
col := col2
if sigmode == "Thresholds Crossing"
col := col3
if sigmode == "Fast Threshold"
col := col4
else
na
Visualization Settings
Bull Color (colup): The color used to indicate bullish signals.
Bear Color (coldn): The color used to indicate bearish signals.
Color Bars (barcol): Option to color the bars based on the signal.
Custom Function
AroonForLoop: Calculates Aroon values over the specified range, determines the trend, and averages the results using the chosen moving average type.
AroonForLoop(a, b, c) =>
var SignalArray = array.new_float(b - a + 1, 0.0)
for x = 0 to (b - a)
len = a + x
upper = 100 * (ta.highestbars(high, len + 1) + len)/len
lower = 100 * (ta.lowestbars(low, len + 1) + len)/len
trend = upper > lower ? 1 : -1
array.set(SignalArray, x, trend)
Avg = array.avg(SignalArray)
float MA = switch maType
"EMA" => ta.ema(Avg, c)
"SMA" => ta.sma(Avg, c)
"WMA" => ta.wma(Avg, c)
"VWMA" => ta.vwma(Avg, c)
"TMA" => ta.trima(Avg, c)
=>
runtime.error("No matching MA type found.")
float(na)
Important Considerations
Fast Responses: The Aroon ForLoop indicator is designed for quick identification of trend changes, making it ideal for fast-paced trading environments.
Moving Average Types: Supports various MA types (EMA, SMA, WMA, VWMA, TMA) for adaptable smoothing of trend signals.
Combination with Other Indicators: For more reliable signals, use this indicator in conjunction with other technical indicators.
Fisher ForLoop [InvestorUnknown]Overview
The Fisher ForLoop indicator is designed to apply the Fisher Transform over a range of lengths and signal modes. It calculates an array of Fisher values, averages them, and then applies an EMA to these values to derive a trend signal. This indicator can be customized with various settings to suit different trading strategies.
User Inputs
Start Length (a): The initial length for the Fisher Transform calculation (inclusive).
End Length (b): The final length for the Fisher Transform calculation (inclusive).
EMA Length (c): The length of the EMA applied to the average Fisher values.
Calculation Source (s): The price source used for calculations (e.g., ohlc4).
Signal Calculation
Signal Mode (sigmode): Determines the type of signal generated by the indicator. Options are "Fast", "Slow", "Thresholds Crossing", and "Fast Threshold".
1. Slow: is a simple crossing of the midline (0).
2. Fast: positive signal depends if the current Fisher EMA is above Fisher EMA or above 0.99, otherwise the signal is negative.
3. Thresholds Crossing: simple ta.crossover and ta.crossunder of the user defined threshold for Long and Short.
4. Fast Threshold: signal changes if the value of Fisher EMA changes by more than user defined threshold against the current signal
// Determine the color based on the EMA value
// If EMA is greater than 0, use the bullish color, otherwise use the bearish color
col1 = EMA > 0 ? colup : coldn
// Determine the color based on the EMA trend
// If the current EMA is greater than the previous EMA or greater than 0.99, use the bullish color, otherwise use the bearish color
col2 = EMA > EMA or EMA > 0.99 ? colup : coldn
// Initialize a variable for the color based on threshold crossings
var color col3 = na
// If the EMA crosses over the long threshold, set the color to bullish
if ta.crossover(EMA, longth)
col3 := colup
// If the EMA crosses under the short threshold, set the color to bearish
if ta.crossunder(EMA, shortth)
col3 := coldn
// Initialize a variable for the color based on fast threshold changes
var color col4 = na
// If the EMA increases by more than the fast threshold, set the color to bullish
if (EMA > EMA + fastth)
col4 := colup
// If the EMA decreases by more than the fast threshold, set the color to bearish
if (EMA < EMA - fastth)
col4 := coldn
// Initialize the final color variable
color col = na
// Set the color based on the selected signal mode
if sigmode == "Slow"
col := col1 // Use slow mode color
if sigmode == "Fast"
col := col2 // Use fast mode color
if sigmode == "Thresholds Crossing"
col := col3 // Use thresholds crossing color
if sigmode == "Fast Threshold"
col := col4 // Use fast threshold color
else
na // If no valid signal mode is selected, set color to na
Visualization Settings
Bull Color (colup): The color used to indicate bullish signals.
Bear Color (coldn): The color used to indicate bearish signals.
Color Bars (barcol): Option to color the bars based on the signal.
Custom Function: FisherForLoop
This function calculates an array of Fisher values over a specified range of lengths (from a to b). It then computes the average of these values and applies an EMA to derive the final trend signal.
// Function to calculate an array of Fisher values over a range of lengths
FisherForLoop(a, b, c, s) =>
// Initialize an array to store Fisher values for each length
var FisherArray = array.new_float(b - a + 1, 0.0)
// Loop through each length from 'a' to 'b'
for x = 0 to (b - a)
// Calculate the current length
len = a + x
// Calculate the highest and lowest values over the current length
high_ = ta.highest(s, len)
low_ = ta.lowest(s, len)
// Initialize the value variable
value = 0.0
// Update the value using the Fisher Transform formula
// The formula normalizes the price to a range between -0.5 and 0.5, then smooths it
value := .66 * ((s - low_) / (high_ - low_) - .5) + .67 * nz(value )
// Clamp the value to be within -0.999 to 0.999 to avoid math errors
val = value > .99 ? .999 : value < -.99 ? -.999 : value
// Initialize the fish1 variable
fish1 = 0.0
// Apply the Fisher Transform to the normalized value
// This converts the value to a Fisher value, which emphasizes extreme changes in price
fish1 := .5 * math.log((1 + val) / (1 - val)) + .5 * nz(fish1 )
// Store the previous Fisher value for comparison
fish2 = fish1
// Determine the trend based on the Fisher values
// If the current Fisher value is greater than the previous, the trend is up (1)
// Otherwise, the trend is down (-1)
trend = fish1 > fish2 ? 1 : -1
// Store the trend in the FisherArray at the current index
array.set(FisherArray, x, trend)
// Calculate the average of the FisherArray
Avg = array.avg(FisherArray)
// Apply an EMA to the average Fisher values to smooth the result
EMA = ta.ema(Avg, c)
// Return the FisherArray, the average, and the EMA
// Call the FisherForLoop function with the user-defined inputs
= FisherForLoop(a, b, c, s)
Important Considerations
Speed: This indicator is very fast and can provide rapid signals for potential entries. However, this speed also means it may generate false signals if used in isolation.
Complementary Use: It is recommended to use this indicator in conjunction with other indicators and analysis methods to confirm signals and enhance the reliability of your trading strategy.
Strength: The main strength of the Fisher ForLoop indicator is its ability to identify very fast entries and prevent entries against the current (short-term) market trend.
This indicator is useful for identifying trends and potential reversal points in the market, providing flexibility through its customizable settings. However, due to its sensitivity and speed, it should be used as part of a broader trading strategy rather than as a standalone tool.
ET's FlagsPurpose:
This Pine Script is designed for the TradingView platform to identify and visually highlight specific technical chart patterns known as "Bull Flags" and "Bear Flags" on financial charts. These patterns are significant in trading as they can indicate potential continuation trends after a brief consolidation. The script includes mechanisms to manage signal frequency through a cooldown period, ensuring that the trading signals are not excessively frequent and are easier to interpret.
Functionality:
Input Parameters:
flagpole_length: Defines the number of bars to consider when identifying the initial surge in price, known as the flagpole.
flag_length: Determines the number of bars over which the flag itself is identified, representing a period of consolidation.
percent_change: Sets the minimum percentage change required to validate the presence of a flagpole.
cooldown_period: Specifies the number of bars to wait before another flag can be identified, reducing the risk of overlapping signals.
Percentage Change Calculation:
The script calculates the percentage change between two price points using a helper function percentChange(start, end). This function is crucial for determining whether the price movement within the specified flagpole_length meets the threshold set by percent_change, thus qualifying as a potential flagpole.
Flagpole Identification:
Bull Flagpole: Identified by finding the lowest close price over the flagpole_length and determining if the subsequent price rise meets or exceeds the specified percent_change.
Bear Flagpole: Identified by finding the highest close price over the flagpole_length and checking if the subsequent price drop is sufficient as per the percent_change.
Flag Identification:
After identifying a flagpole, the script assesses if the price action within the next flag_length bars consolidates in a manner that fits a flag pattern. This involves checking if the price fluctuation stays within the bounds set by the percent_change.
Signal Plotting:
If a bull or bear flag pattern is confirmed, and the cooldown period has passed since the last flag of the same type was identified, the script plots a visual shape on the chart:
Green shapes below the price bar for Bull Flags.
Red shapes above the price bar for Bear Flags.
Line Drawing:
For enhanced visualization, the script draws lines at the high and low prices of the flag during its formation period. This visually represents the consolidation phase of the flag pattern.
Debugging Labels:
The script optionally displays labels at the flag formation points, showing the exact percentage change achieved during the flagpole formation. This feature aids users in understanding why a particular segment of the price chart was identified as a flag.
Compliance and Usage:
This script does not automate trading but provides visual aids and potential signals based on historical price analysis. It adheres to TradingView's scripting policies by only accessing publicly available price data and user-defined parameters without executing trades or accessing any external data.
Conclusion:
This Pine Script is a powerful tool for traders who follow technical analysis, offering a clear, automated way to spot potential continuation patterns in the markets they monitor. By emphasizing visual clarity and reducing signal redundancy through cooldown periods, the script enhances decision-making processes for chart analysis on TradingView.
Support and Resistance [CryptoSea]The Support and Resistance Indicator is a powerful tool developed by CryptoSea for traders seeking to identify key market levels with precision. This script leverages advanced pivot and volume analysis to highlight support and resistance zones on the price chart.
Key Features
Multi-Source Pivot Analysis: Choose between wicks or body prices for calculating pivot points, providing flexibility in market analysis.
Volume Spike Detection: Automatically identifies volume spikes using a customizable threshold multiplier, enhancing the accuracy of support and resistance levels.
Dynamic Box Display: Configurable options for extending and graying out boxes based on price interaction, ensuring a clear visual representation of active and invalidated zones.
In the example below, we see a resistance box formed based on wick highs and a volume spike. The box extends to where we see price rejecting from it. In the settings you can change this so the box will stop if price touches it if you prefer.
How it Works
Pivot Point Calculation: The script determines pivot highs and lows using either wicks or body prices over a specified term (Short, Medium, Long), corresponding to 5, 15, or 30 bars.
Volume Analysis: Calculates average volume over twice the pivot length and identifies volume spikes exceeding the user-defined threshold, crucial for confirming support and resistance levels.
Box Management: Maintains arrays of support and resistance boxes, limiting the number based on user settings (All, Recent Few, Recent Several).
Settings Explained
Source: Choose between 'Wicks' or 'Bodies' to determine whether pivot points are calculated using candle wicks or body prices.
Pivot Term: Select 'Short' (5 bars), 'Medium' (15 bars), or 'Long' (30 bars) to adjust the distance for pivot calculation. Longer terms take more bars to confirm support/resistance.
Volume Threshold (multiplier): Set a multiplier of average volume to detect volume spikes, essential for validating support/resistance levels.
Extend Until Price Hits: Enable this to extend support/resistance boxes until the price touches them, providing dynamic levels.
Gray Out Boxes Once Hit: Enable this to gray out the boxes once the price interacts with them, indicating that they are no longer active.
Max Boxes Displayed: Choose 'All', 'Recent Few' (up to 3 boxes each for bull and bear), or 'Recent Several' (up to 10 boxes each for bull and bear) to control the number of visible boxes.
Invalidate Condition: Select 'Touch' to invalidate a box when the price touches it or 'Through' to invalidate when the price passes entirely through the box.
Candle Colors: Option to color candles based on neutral, bullish, or bearish conditions for easier visual analysis.
Application
Strategic Planning: Assists traders in pinpointing potential entry and exit points by marking significant support and resistance zones.
Trend Confirmation: Validates trend strength and potential reversals with volume-based analysis of support and resistance levels.
Customizable Settings: Tailors analysis to various trading strategies with extensive input settings for pivot source, term, volume threshold, and display preferences.
The Support and Resistance Indicator by is an essential addition to any trader’s toolkit, offering robust and customizable market level analysis for improved trading decisions.
Cumulative Volume Delta (MTF)Cumulative Volume Delta (CVD) Indicator
The Cumulative Volume Delta (CVD) indicator is a powerful analytical tool used to understand the behavior and dynamics of market participants through volume analysis. It tracks the net difference between buying and selling pressure, providing insights into market trends and potential reversals. Here's a detailed description of this indicator and its components:
The Cumulative Volume Delta (CVD) indicator calculates the cumulative net difference between buying and selling volume over a specified period. By analyzing this net difference, traders can gain insights into the underlying strength or weakness of a price movement, helping to identify trends, reversals, and potential breakout points.
Key Components:
Bull & Bear Power Calculation:
Bull Power: Represents the strength of buyers in the market. It is calculated based on the relationship between the current and previous price bars. A higher Bull Power indicates stronger buying pressure.
Bear Power: Represents the strength of sellers in the market. It is also calculated based on the relationship between the current and previous price bars. A higher Bear Power indicates stronger selling pressure.
Bull & Bear Volume Calculation:
Bull Volume: The volume attributed to buying pressure. It is calculated by taking the proportion of Bull Power relative to the total of Bull Power and Bear Power, multiplied by the total volume.
Bear Volume: The volume attributed to selling pressure. It is calculated similarly to Bull Volume but using Bear Power.
Delta Calculation:
Delta: The net difference between Bull Volume and Bear Volume for each bar. A positive Delta indicates more buying pressure, while a negative Delta indicates more selling pressure.
Cumulative Volume Delta (CVD):
CVD: The running total of the Delta values over time. It accumulates the net buying and selling pressure to provide a visual representation of the market's cumulative sentiment.
Moving Average of CVD (CVD MA):
CVD MA: A simple moving average of the CVD, used to smooth out fluctuations and help identify the overall trend. It provides a baseline to compare the current CVD value against, highlighting divergences or convergences.
Multi-Timeframe Functionality:
The enhanced version of the CVD indicator includes multi-timeframe (MTF) capabilities, allowing users to select and analyze data from different timeframes. This feature enhances the versatility of the indicator by providing a broader perspective on market dynamics across various time intervals.
Practical Applications:
Trend Identification: By tracking the CVD and its moving average, traders can identify the prevailing trend. An upward-sloping CVD indicates sustained buying pressure, while a downward-sloping CVD indicates sustained selling pressure.
Divergences: Divergences between the CVD and price can signal potential reversals. For example, if the price is making new highs but the CVD is not, it may indicate weakening buying pressure and a potential reversal.
Breakout Confirmation: Significant changes in the CVD can confirm breakouts. A sharp increase in the CVD during a price breakout indicates strong buying support, adding confidence to the breakout.
Support and Resistance Levels: The CVD can help identify significant support and resistance levels based on changes in volume dynamics. For instance, a notable increase in buying volume at a support level can reinforce its strength.
Market Sentiment Technicals [LuxAlgo]The Market Sentiment Technicals indicator synthesizes insights from diverse technical analysis techniques, including price action market structures, trend indicators, volatility indicators, momentum oscillators, and more.
The indicator consolidates the evaluated outputs from these techniques into a singular value and presents the combined data through an oscillator format, technical rating, and a histogram panel featuring the sentiment of each component alongside the overall sentiment.
🔶 USAGE
The Market Sentiment Technicals indicator is a tool able to swiftly and easily gauge market sentiment by consolidating the individual sentiment from multiple technical analysis techniques applied to market data into a single value, allowing users to asses if the market is uptrending, consolidating, or downtrending.
The tool includes various components and presentation formats, each described in the sub-sections below.
🔹Indicators Sentiment Panel
The indicators sentiment panel provides normalized sentiment scores for each supported indicator, along with a synthesized representation derived from the average of all individual normalized sentiments.
🔹Market Sentiment Meter
The market sentiment meter is obtained from the synthesized representation derived from the average of all individual normalized sentiments. It allows users to quickly and easily gauge the overall market sentiment.
🔹Market Sentiment Oscillator
The market sentiment oscillator provides a visual means to monitor the current and historical strength of the market. It assists in identifying the trend direction, trend momentum, and overbought and oversold conditions, aiding in the anticipation of potential trend reversals.
Divergence occurs when there is a difference between what the price action is indicating and what the market sentiment oscillator is indicating, helping traders assess changes in the price trend.
🔶 DETAILS
The indicator employs a range of technical analysis techniques to interpret market data. Each group of indicators provides valuable insights into different aspects of market behavior.
🔹Momentum Indicators
Momentum indicators assess the speed and change of price movements, often indicating whether a trend is strengthening or weakening.
Relative Strength Index (RSI): Measures the magnitude of recent price changes to evaluate overbought or oversold conditions.
Stochastic %K: Compares the closing price to the range over a specified period to identify potential reversal points.
Stochastic RSI Fast: Combines features of Stochastic oscillators and RSI to gauge both momentum and overbought/oversold levels efficiently.
Commodity Channel Index (CCI): Measures the deviation of an asset's price from its statistical average to determine trend strength and overbought and oversold conditions.
Bull Bear Power: Evaluates the strength of buying and selling pressure in the market.
🔹Trend Indicators
Trend indicators help traders identify the direction of a market trend.
Moving Averages: Provides a smoothed representation of the underlying price data, aiding in trend identification and analysis.
Bollinger Bands: Consists of a middle band (typically a simple moving average) and upper and lower bands, which represent volatility levels of the market.
Supertrend: A trailing stop able to identify the current direction of the trend.
Linear Regression: Fits a straight line to past data points to predict future price movements and identify trend direction.
🔹Market Structures
Market Structures: Analyzes the overall pattern of price movements, including Break of Structure (BOS), Market Structure Shifts (MSS), also referred to as Change of Character (CHoCH), aiding in identifying potential market turning and continuation points.
🔹The Normalization Technique
The normalization technique employed for trend indicators relies on buy-sell signals. The script tracks price movements and normalizes them based on these signals.
normalize(buy, sell, smooth)=>
var os = 0
var float max = na
var float min = na
os := buy ? 1 : sell ? -1 : os
max := os > os ? close : os < os ? max : math.max(close, max)
min := os < os ? close : os > os ? min : math.min(close, min)
ta.sma((close - min)/(max - min), smooth) * 100
In this Pine Script snippet:
The variable os tracks market sentiment, taking a value of 1 for buy signals and -1 for sell signals, indicating bullish and bearish sentiments, respectively.
max and min are used to identify extremes in sentiment and are updated based on changes in os . When market sentiment shifts from buying to selling (or vice versa), max and min adjust accordingly.
Normalization is achieved by comparing current price levels to historical extremes in sentiment. The result is smoothed by default using a 3-period simple moving average. Users have the option to customize the smoothing period via the script settings input menu.
🔶 SETTINGS
🔹Generic Settings
Timeframe: This option selects the timeframe for calculating sentiment. If a timeframe lower than the chart's is chosen, calculations will be based on the chart's timeframe.
Horizontal Offset: Determines the distance at which the visual components of the indicator will be displayed from the primary chart.
Gradient Colors: Allows customization of gradient colors.
🔹Indicators Sentiment Panel
Indicators Sentiment Panel: Toggle the visibility of the indicators sentiment panel.
Panel Height: Determines the height of the panel.
🔹Market Sentiment Meter
Market Sentiment Meter: Toggle the visibility of the market sentiment meter (technical ratings in the shape of a speedometer).
🔹Market Sentiment Oscillator
Market Sentiment Oscillator: Toggle the visibility of the market sentiment oscillator.
Show Divergence: Enables detection of divergences based on the selected option.
Oscillator Line Width: Customization option for the line width.
Oscillator Height: Determines the height of the oscillator.
🔹Settings for Individual Components
In general,
Source: Determines the data source for calculations.
Length: The period to be used in calculations.
Smoothing: Degree of smoothness of the evaluated values.
🔹Normalization Settings - Trend Indicators
Smoothing: The period used in smoothing normalized values, where normalization is applied to moving averages, Bollinger Bands, Supertrend, VWAP bands, and market structures.
🔶 LIMITATIONS
Like any technical analysis tool, the Market Sentiment Technicals indicator has limitations. It's based on historical data and patterns, which may not always accurately predict future market movements. Additionally, market sentiment can be influenced by various factors, including economic news, geopolitical events, and market psychology, which may not be fully captured by technical analysis alone.
signalLib_yashgode9Signal Generation Library = "signalLib_yashgode9"
This library, named "signalLib_yashgode9", is designed to generate buy and sell signals based on the price action of a financial instrument. It utilizes various technical indicators and parameters to determine the market direction and provide actionable signals for traders.
Key Features:-
1.Trend Direction Identification: The library calculates the trend direction by comparing the number of bars since the highest and lowest prices within a specified depth. This allows the library to determine the overall market direction, whether it's bullish or bearish.
2.Dynamic Price Tracking: The library maintains two chart points, zee1 and zee2, which dynamically track the price levels based on the identified market direction. These points serve as reference levels for generating buy and sell signals.
3.Customizable Parameters: The library allows users to adjust several parameters, including the depth of the price analysis, the deviation threshold, and the number of bars to consider for the trend direction. This flexibility enables users to fine-tune the library's behavior to suit their trading strategies.
4.Visual Representation: The library provides a visual representation of the buy and sell signals by drawing a line between the zee1 and zee2 chart points. The line's color changes based on the identified market direction, with red indicating a bearish signal and green indicating a bullish signal.
Usage and Integration:
To use this library, you can call the "signalLib_yashgode9" function and pass in the necessary parameters, such as the lower and higher prices, the depth of the analysis, the deviation threshold, and the number of bars to consider for the trend direction. The function will return the direction of the market (1 for bullish, -1 for bearish), as well as the zee1 and zee2 chart points.You can then use these values to generate buy and sell signals in your trading strategy. For example, you could use the direction value to determine when to enter or exit a trade, and the zee1 and zee2 chart points to set stop-loss or take-profit levels.
Potential Use Cases:
This library can be particularly useful for traders who:
1.Trend-following Strategies: The library's ability to identify the market direction can be beneficial for traders who employ trend-following strategies, as it can help them identify the dominant trend and time their entries and exits accordingly.
2.Swing Trading: The dynamic price tracking provided by the zee1 and zee2 chart points can be useful for swing traders, who aim to capture medium-term price movements.
3.Automated Trading Systems: The library's functionality can be integrated into automated trading systems, allowing for the development of more sophisticated and rule-based trading strategies.
4.Educational Purposes: The library can also be used for educational purposes, as it provides a clear and concise way to demonstrate the application of technical analysis concepts in a trading context.
Important Notice:- This library effectively work on timeframe of 5-minute and 15-minute.
Multi-Timeframe Trend Cloud (EMA13/21) with Alerts Purpose:
This indicator combines trend analysis across multiple timeframes with alerts to help identify general trends and market shifts. It visualizes trends by creating EMA clouds (The area between EMA13 & EMA21), detects confirmed EMA crossovers, and can alert users when the price re-enters the cloud or interacts with the EMA200.
Input Parameters:
Lower Timeframe (LTF): Allows you to select the lower timeframe for trend analysis (e.g., 1 hour, 4 hours).
Higher Timeframe (HTF): Allows you to select the higher timeframe for the main trend reference (e.g., 4 hours, 1 day).
Fill Colors: You can customize the colors used to fill the areas between the EMA lines in both the higher and lower timeframes. Note: The LTF cloud defaults to transparent white so if you have a light background change the color in style settings.
The EMA's default to transparent but can be turned on in the style settings.
Calculating & Plotting EMAs:
The indicator calculates two Exponential Moving Averages (EMAs) on both the LTF and HTF: a faster 13-period EMA and a slower 21-period EMA.
Additionally, it calculates a 200-period EMA on the HTF.
These EMAs are plotted on your chart, providing a visual representation of the trend.
Identifying Trend States:
The script uses the relationships between the price and the 13-period and 21-period EMAs on the Higher Time Frame (HTF) to identify four distinct trend states, each depicted by a specific color to create the "Trend Cloud":
Strong Bull Trend: The 13-period EMA is above the 21-period EMA, and the price is above both EMAs. --- "Color 0" in HTF Trend style settings.
Broken Bullish Trend: The 13-period EMA is above the 21-period EMA but price has broken below both EMA's. --- "Color 3" in HTF Trend style settings.
Strong Bear Trend: The 13-period EMA is below the 21-period EMA, and the price is below both EMAs. --- "Color 2" in HTF Trend style settings.
Broken Bearish Trend: The 13-period EMA is below the 21-period EMA but price has broken above both EMA's. --- "Color 1" in HTF Trend style settings.
Important Note: The 200-period EMA is plotted for reference but is not directly used in determining the current trend state within this script.
Confirmed Crossover Signals:
The indicator plots upward or downward triangles to signal confirmed crossovers of the EMA13 and EMA21 on the HTF. A crossover is considered "confirmed" when it's followed by a candle closing on the same side of the crossing point, adding an extra layer of confidence to the signal.
Cloud Re-entry Alerts:
Receive alerts whenever the price re-enters the HTF cloud - aka "Trend".
EMA200 Retest Alerts:
Get alerts when the price touches the 200 EMA on the HTF. These alerts can be valuable for identifying potential trend reversals or trend continuation scenarios.
Benefits:
Clear Visual Representation: Easily visualize trends on both the lower and higher timeframes.
Confirmed Signals: Filter out false signals by focusing on confirmed crossovers.
Timely Alerts: Get instant notifications for important price actions, allowing you to react quickly to market opportunities.
Customizable: Tailor the indicator's appearance and alert settings to your preferences.
How to Use:
Add the indicator to your chart.
Select your desired LTF and HTF in the Inputs tab.
Customize the fill colors (and optional EMA line colors) in the Style tab.
Enable the alerts you want to receive in the Alerts tab.
Note: This indicator is a great tool for trend analysis, but it should be used with other forms of analysis and risk management techniques to make informed trading decisions.
Ichimoku Theories [LuxAlgo]The Ichimoku Theories indicator is the most complete Ichimoku tool you will ever need. Four tools combined into one to harness all the power of Ichimoku Kinkō Hyō.
This tool features the following concepts based on the work of Goichi Hosoda:
Ichimoku Kinkō Hyō: Original Ichimoku indicator with its five main lines and kumo.
Time Theory: automatic time cycle identification and forecasting to understand market timing.
Wave Theory: automatic wave identification to understand market structure.
Price Theory: automatic identification of developing N waves and possible price targets to understand future price behavior.
🔶 ICHIMOKU KINKŌ HYŌ
Ichimoku with lines only, Kumo only and both together
Let us start with the basics: the Ichimoku original indicator is a tool to understand the market, not to predict it, it is a trend-following tool, so it is best used in trending markets.
Ichimoku tells us what is happening in the market and what may happen next, the aim of the tool is to provide market understanding, not trading signals.
The tool is based on calculating the mid-point between the high and low of three pre-defined ranges as the equilibrium price for short (9 periods), medium (26 periods), and long (52 periods) time horizons:
Tenkan sen: middle point of the range of the last 9 candles
Kinjun sen: middle point of the range of the last 26 candles
Senkou span A: middle point between Tankan Sen and Kijun Sen, plotted 26 candles into the future
Senkou span B: midpoint of the range of the last 52 candles, plotted 26 candles into the future
Chikou span: closing price plotted 26 candles into the past
Kumo: area between Senkou pans A and B (kumo means cloud in Japanese)
The most basic use of the tool is to use the Kumo as an area of possible support or resistance.
🔶 TIME THEORY
Current cycles and forecast
Time theory is a critical concept used to identify historical and current market cycles, and use these to forecast the next ones. This concept is based on the Kihon Suchi (translating to "Basic Numbers" in Japanese), these are 9 and 26, and from their combinations we obtain the following sequence:
9, 17, 26, 33, 42, 51, 65, 76, 129, 172, 200, 257
The main idea is that the market moves in cycles with periods set by the Kihon Suchi sequence.
When the cycle has the same exact periods, we obtain the Taito Suchi (translating to "Same Number" in Japanese).
This tool allows traders to identify historical and current market cycles and forecast the next one.
🔹 Time Cycle Identification
Presentation of 4 different modes: SWINGS, HIGHS, KINJUN, and WAVES .
The tool draws a horizontal line at the bottom of the chart showing the cycles detected and their size.
The following settings are used:
Time Cycle Mode: up to 7 different modes
Wave Cycle: Which wave to use when WAVE mode is selected, only active waves in the Wave Theory settings will be used.
Show Time Cycles: keep a cleaner chart by disabling cycles visualisation
Show last X time cycles: how many cycles to display
🔹 Time Cycle Forecast
Showcasing the two forecasting patterns: Kihon Suchi and Taito Suchi
The tool plots horizontal lines, a solid anchor line, and several dotted forecast lines.
The following settings are used:
Show time cycle forecast: to keep things clean
Forecast Pattern: comes in two flavors
Kihon Suchi plots a line from the anchor at each number in the Kihon Suchi sequence.
Taito Suchi plot lines from the anchor with the same size detected in the anchored cycle
Anchor forecast on last X time cycle: traders can place the anchor in any detected cycle
🔶 WAVE THEORY
All waves activated with overlapping
The main idea behind this theory is that markets move like waves in the sea, back and forth (making swing lows and highs). Understanding the current market structure is key to having realistic expectations of what the market may do next. The waves are divided into Simple and Complex.
The following settings are used:
Basic Waves: allows traders to activate waves I, V and N
Complex Waves: allows traders to activate waves P, Y and W
Overlapping waves: to avoid missing out on any of the waves activated
Show last X waves: how many waves will be displayed
🔹 Basic Waves
The three basic waves
The basic waves from which all waves are made are I, V, and N
I wave: one leg moves
V wave: two legs move, one against the other
N wave: Three legs move, push, pull back, and another push
🔹 Complex Waves
Three complex waves
There are other waves like
P wave: contracting market
Y wave: expanding market
W wave: double top or double bottom
🔶 PRICE THEORY
All targets for the current N wave with their calculations
This theory is based on identifying developing N waves and predicting potential price targets based on that developing wave.
The tool displays 4 basic targets (V, E, N, and NT) and 3 extended targets (2E and 3E) according to the calculations shown in the chart above. Traders can enable or disable each target in the settings panel.
🔶 USING EVERYTHING TOGETHER
Please DON'T do this. This is not how you use it
Now the real example:
Daily chart of Nasdaq 100 futures (NQ1!) with our Ichimoku analysis
Time, waves, and price theories go together as one:
First, we identify the current time cycles and wave structure.
Then we forecast the next cycle and possible key price levels.
We identify a Taito Suchi with both legs of exactly 41 candles on each I wave, both together forming a V wave, the last two I waves are part of a developing N wave, and the time cycle of the first one is 191 candles. We forecast this cycle into the future and get 22nd April as a key date, so in 6 trading days (as of this writing) the market would have completed another Taito Suchi pattern if a new wave and time cycle starts. As we have a developing N wave we can see the potential price targets, the price is actually between the NT and V targets. We have a bullish Kumo and the price is touching it, if this Kumo provides enough support for the price to go further, the market could reach N or E targets.
So we have identified the cycle and wave, our expectations are that the current cycle is another Taito Suchi and the current wave is an N wave, the first I wave went for 191 candles, and we expect the second and third I waves together to amount to 191 candles, so in theory the N wave would complete in the next 6 trading days making a swing high. If this is indeed the case, the price could reach the V target (it is almost there) or even the N target if the bulls have the necessary strength.
We do not predict the future, we can only aim to understand the current market conditions and have future expectations of when (time), how (wave), and where (price) the market will make the next turning point where one side of the market overcomes the other (bulls vs bears).
To generate this chart, we change the following settings from the default ones:
Swing length: 64
Show lines: disabled
Forecast pattern: TAITO SUCHI
Anchor forecast: 2
Show last time cycles: 5
I WAVE: enabled
N WAVE: disabled
Show last waves: 5
🔶 SETTINGS
Show Swing Highs & Lows: Enable/Disable points on swing highs and swing lows.
Swing Length: Number of candles to confirm a swing high or swing low. A higher number detects larger swings.
🔹 Ichimoku Kinkō Hyō
Show Lines: Enable/Disable the 5 Ichimoku lines: Kijun sen, Tenkan sen, Senkou span A & B and Chikou Span.
Show Kumo: Enable/Disable the Kumo (cloud). The Kumo is formed by 2 lines: Senkou Span A and Senkou Span B.
Tenkan Sen Length: Number of candles for Tenkan Sen calculation.
Kinjun Sen Length: Number of candles for the Kijun Sen calculation.
Senkou Span B Length: Number of candles for Senkou Span B calculation.
Chikou & Senkou Offset: Number of candles for Chikou and Senkou Span calculation. Chikou Span is plotted in the past, and Senkou Span A & B in the future.
🔹 Time Theory
Show Time Cycle Forecast: Enable/Disable time cycle forecast vertical lines. Disable for better performance.
Forecast Pattern: Choose between two patterns: Kihon Suchi (basic numbers) or Taito Suchi (equal numbers).
Anchor forecast on last X time cycle: Number of time cycles in the past to anchor the time cycle forecast. The larger the number, the deeper in the past the anchor will be.
Time Cycle Mode: Choose from 7 time cycle detection modes: Tenkan Sen cross, Kijun Sen cross, Kumo change between bullish & bearish, swing highs only, swing lows only, both swing highs & lows and wave detection.
Wave Cycle: Choose which type of wave to detect from 6 different wave types when the time cycle mode is set to WAVES.
Show Time Cycles: Enable/Disable time cycle horizontal lines. Disable for better performance.
how last X time cycles: Maximum number of time cycles to display.
🔹 Wave Theory
Basic Waves: Enable/Disable the display of basic waves, all at once or one at a time. Disable for better performance.
Complex Waves: Enable/Disable complex wave display, all at once or one by one. Disable for better performance.
Overlapping Waves: Enable/Disable the display of waves ending on the same swing point.
Show last X waves: 'Maximum number of waves to display.
🔹 Price Theory
Basic Targets: Enable/Disable horizontal price target lines. Disable for better performance.
Extended Targets: Enable/Disable extended price target horizontal lines. Disable for better performance.
Net Buying/Selling Flows Toolkit [AlgoAlpha]🌟📊 Introducing the Net Buying/Selling Flows Toolkit by AlgoAlpha 📈🚀
🔍 Explore the intricate dynamics of market movements with the Net Buying/Selling Flows Toolkit designed for precision and effectiveness in visualizing money inflows and outflows and their impact on asset prices.
🔀 Multiple Display Modes : Choose from "Flow Comparison", "Net Flow", or "Sum of Flows" to view the data in the most relevant way for your analysis.
📏 Adjustable Unit Display : Easily manage the magnitude of the values displayed with options like "1 Billion", "1 Million", "1 Thousand", or "None".
🔧 Lookback Period Customization : Tailor the sum calculation window with a configurable lookback period, applicable in "Sum of Flows" mode.
📊 Deviation Thresholds : Set up lower and upper deviation thresholds to identify significant changes in flow data.
🔄 Reversal Signals and Deviation Bands : Enable signals for potential reversals and visualize deviation bands for comparative analysis.
🎨 Color-coded Visualization : Distinct colors for upward and downward movements make it easy to distinguish between buying and selling pressures.
🚀 Quick Guide to Using the Net Buying/Selling Flows Toolkit :
🔍 Add the Indicator : Add the indicator to you favorites. Customize the settings to fit your trading requirements.
👁️🗨️ Data Analysis : Compare the trend of Buying and Selling to help indicate whether bulls or bears are in control of the market. Utilize the different display modes to present the data in different form to suite your analysis style.
🔔 Set Alerts : Activate alerts for reversal conditions to keep abreast of significant market movements without having to monitor the charts constantly.
🌐 How It Works :
The toolkit processes volume data on a lower timeframe to distinguish between buying and selling pressures based on intra-bar price closing higher or lower than it opened. It aggregates these transactions and finds the net selling and buying that took place during that bar, offering a clearer view of market fundamentals. The indicator then plots this data visually with multiple modes including comparisons between buying/selling and the net flow of the asset. Deviation thresholds help in identifying significant changes, allowing traders to spot potential buying or selling opportunities based on the money flow dynamics. The "Sum of Flows" mode is unique from other trend following indicators as it does not determine trend based on price action, but rather based on the net buying/selling. Therefore in some cases the "Sum of Flows" mode can be a leading indicator showing bullish/bearish net flows even before the prices move significantly.
Embark on a more informed trading journey with this dynamic and insightful tool, tailor-made for those who demand precision and clarity in their trading strategies. 🌟📉📈
RSI w/Hann WindowingThis RSI by John Ehlers of "Yet Another" Improved RSI. Taking advantage of the Hann windowing. As seen on PRC and published by John Ehlers, it has a zero mean and appears smoother than the classic RSI. In his own words " I prefer oscillator-type indicators to have a zero mean. We can achieve this simply by multiplying the classic RSI by 2 so it swings from 0 to 2, and then subtract 1 from the product so the indicator swings from -1 to +1." Ehlers goes on to say " Bear in mind 14 may not be the best length to analysis. So, the best length to use for the RSIH indicator is on the order of the dominant cycle period of the data."
This indicator works well with both bullish and bearish divergences. It also works well with oversold and overbought indications. Shown by the Red zone on top (Overbought) and the green zone on the bottom(oversold). Each which have an adjustable buffer zone. You may need to adjust the length of the RSIH to suit your asset. There are also multiply signal line's to choose from. Also take note of when the RSIH crosses up or down on the signal line.
None of this is financial advice.
Dynamic Cycle Oscillator [Quantigenics]This script is designed to navigate through the ebbs and flows of financial markets. At its core, this script is a sophisticated yet user-friendly tool that helps you identify potential market turning points and trend continuations.
How It Works:
The script operates by plotting two distinct lines and a central histogram that collectively form a band structure: a center line and two outer boundaries, indicating overbought and oversold conditions. The lines are calculated based on a blend of exponential moving averages, which are then refined by a root mean square (RMS) over a specified number of bars to establish the cyclic envelope.
The input parameters:
Fast and Slow Periods:
These determine the sensitivity of the script. Shorter periods react quicker to price changes, while longer periods offer a smoother view.
RMS Length:
This parameter controls the range of the cyclic envelope, influencing the trigger levels for trading signals.
Using the Script:
On your chart, you’ll notice how the Dynamic Cycle Oscillator’s lines and histogram weave through the price action. Here’s how to interpret the movements.
Breakouts and Continuations:
Buy Signal: Consider a long position when the histogram crosses above the upper boundary. This suggests a possible strong bullish run.
Sell Signal: Consider a short position when the histogram crosses below the lower boundary. This suggests a possible strong bearish run.
Reversals:
Buy Signal: Consider a long position when the histogram crosses above the lower boundary. This suggests an oversold market turning bullish.
Sell Signal: Consider a short position when the histogram crosses below the upper boundary. This implies an overbought market turning bearish.
The script’s real-time analysis can serve as a robust addition to your trading strategy, offering clarity in choppy markets and an edge in trend-following systems.
Thanks! Hope you enjoy!
CandleInsightsLibrary "CandleInsights"
CandleInsights provides a set of utility functions to facilitate identifying certain types of individual candles and candle patterns.
isBullish()
Returns true if candle is bullish.
Returns: bool
isBearish()
Returns true if candle is bearish.
Returns: bool
isHammer()
Returns true if candle is a hammer. TODO: Allow params
Returns: bool
isShootingStar()
Returns true if candle is a shooting star. TODO: Allow params
Returns: bool
isBearishToppingTail()
Returns true if candle is bearish with a top wick over half the range of the candle. TODO: Allow params
Returns: bool
isHanging()
Returns true if candle is considering a hanging candle (aka hanging man). TODO: Allow params
Returns: bool
isLongBullish(pctChg)
Parameters:
pctChg (float)
isBullishEngulfing()
ICT Silver Bullet | Flux Charts💎 GENERAL OVERVIEW
Introducing our new ICT Silver Bullet Indicator! This indicator is built around the ICT's "Silver Bullet" strategy. The strategy has 5 steps for execution and works best in 1-5 min timeframes. For more information about the process, check the "HOW DOES IT WORK" section.
Features of the new ICT Silver Bullet Indicator :
Implementation of ICT's Silver Bullet Strategy
Customizable Execution Settings
2 NY Sessions & London Session
Customizable Backtesting Dashboard
Alerts for Buy, Sell, TP & SL Signals
📌 HOW DOES IT WORK ?
ICT's Silver Bullet strategy has 5 steps :
1. Mark your market sessions open (This indicator has 3 -> NY 10-11, NY 14-15, LDN 03-04)
2. Mark the swing liquidity points
3. Wait for market to take down one liquidity side
4. Look for a market structure-shift for reversals
5. Wait for a FVG for execution
This indicator follows these steps and inform you step by step by plotting them in your chart. You can switch execution types between FVG and MSS.
🚩UNIQUENESS
This indicator is an all-in-one suit for the ICT's Silver Bullet concept. It's capable of plotting the strategy, giving signals, a backtesting dashboard and alerts feature. It's designed for simplyfing a rather complex strategy, helping you to execute it with clean signals. The backtesting dashboard allows you to see how your settings perform in the current ticker. You can also set up alerts to get informed when the strategy is executable for different tickers.
⚙️SETTINGS
1. General Configuration
Execution Type -> FVG execution type will require a FVG to take an entry, while the MSS setting will take an entry as soon as it detects a market structure-shift.
MSS Swing Length -> The swing length when finding liquidity zones for market structure-shift detection.
Breakout Method -> If "Wick" is selected, a bar wick will be enough to confirm a market structure-shift. If "Close" is selected, the bar must close above / below the liquidity zone to confirm a market structure-shift.
FVG Detection -> "Same Type" means that all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). "All" means that bar types may vary between bullish / bearish.
FVG Detection Sensitivity -> You can turn this setting on and off. If it's off, any 3 consecutive bullish / bearish bars will be calculated as FVGs. If it's on, the size of FVGs will be filtered by the selected sensitivity. Lower settings mean less but larger FVGs.
2. TP / SL
TP / SL Method -> If "Fixed" is selected, you can adjust the TP / SL ratios from the settings below. If "Dynamic" is selected, the TP / SL zones will be auto-determined by the algorithm.
Risk -> The risk you're willing to take if "Dynamic" TP / SL Method is selected. Higher risk usually means a better winrate at the cost of losing more if the strategy fails.
Close Position @ Session End -> If this setting is enabled, the current position (if any) will be closed at the beginning of a new session, regardless if it hit the TP / SL zone. If it's off, the position will be open until it hits a TP / SL zone.
Market Structure Volume Distribution [LuxAlgo]The Market Structure Volume Distribution tool allows traders to identify the strength behind breaks of market structure at defined price ranges to measure de correlation of forces between bulls and bears visually and easily.
🔶 USAGE
This tool has three main features: market structure highlighting, grid levels, and volume profile. Each feature is covered more in depth below:
🔹 Market Structure
The basic unit of market structure is a swing point, the period of the swing point is user-defined, so traders can identify longer-term market structures. Price breaking a prior swing point will confirm the occurrence of a market structure.
The tool will plot a line after a market structure is confirmed, by default the lines on bullish MS will be green (indicative of an uptrend), and red in case of bearish MS (indicative of a downtrend).
🔹 Grid Levels
The Grid visually divides the price range contained inside the tool execution window, into equal size rows, the number of rows is user-defined so users can divide the full price range up to 100 rows.
The main objective of this feature is to help identify the execution window and the limits of each row in the volume profile so traders can know in a simple look what BoMS belongs to each row.
There is however another use for the grid, by dividing the range into equal-sized parts, this feature provides automatic support and resistance levels as good as any other.
Grid provides a visual help to know what our execution window is and to associate MS with their rows in the profile. It can provide S/R levels too.
🔹 Volume Profile
The volume profile feature shows in a visually easy way the volume behind each MS aggregated by rows and divided into buy and sell volume to spot the differences in a simple look.
This tool allows users to spot the liquidity associated with the event of a market structure in a specific price range, allowing users to know which price areas where associated with the most trading activity during the occurrence of a market structutre.
🔶 SETTINGS
🔹 Data Gathering
Execute on all visible range: Activate this to use all visible bars on the calculations. This disables the use of the next parameter "Execute on the last N bars". Default false.
Execute on the last N bars: Use last N bars on the calculations. To use this parameter "Execute on all visible range" must be disabled. Values from 20 to 5000, default 500.
Pivot Length: How many bars will be used to confirm a pivot. The bigger this parameter is the fewer breaks of structure will detect. Values from 1, default 2
🔹 Profile
Profile Rows: Number of rows in the volume profile. Values from 2 to 100, default 10.
Profile Width: Maximum width of the volume profile. Values from 25 to 500, default 200.
Profile Mode: How the volume will be displayed on each row. "TOTAL VOLUME" will aggregate buy & sell volume per row, "BUY&SELL VOLUME" will separate the buy volume from the sell volume on each row. Default BUY&SELL VOLUME.
🔹 Style
Buy Color: This is the color for the buy volume on the profile when the "BUY&SELL VOLUME" mode is activated. Default green.
Sell Color: This is the color for the sell volume on the profile when the "BUY&SELL VOLUME" mode is activated. Default red.
Show dotted grid levels: Show dotted inner grid levels. Default true.
Trailing Management (Zeiierman)█ Overview
The Trailing Management (Zeiierman) indicator is designed for traders who seek an automated and dynamic approach to managing trailing stops. It helps traders make systematic decisions regarding when to enter and exit trades based on the calculated risk-reward ratio. By providing a clear visual representation of trailing stop levels and risk-reward metrics, the indicator is an essential tool for both novice and experienced traders aiming to enhance their trading discipline.
The Trailing Management (Zeiierman) indicator integrates a Break-Even Curve feature to enhance its utility in trailing stop management and risk-reward optimization. The Break-Even Curve illuminates the precise point at which a trade neither gains nor loses value, offering clarity on the risk-reward landscape. Furthermore, this precise point is calculated based on the required win rate and the risk/reward ratio. This calculation aids traders in understanding the type of strategy they need to employ at any given time to be profitable. In other words, traders can, at any given point, assess the kind of strategy they need to utilize to make money, depending on the price's position within the risk/reward box.
█ How It Works
The indicator operates by computing the highest high and the lowest low over a user-defined period and then applying this information to determine optimal trailing stop levels for both long and short positions.
Directional Bias:
It establishes the direction of the market trend by comparing the index of the highest high and the lowest low within the lookback period.
Bullish
Bearish
Trailing Stop Adjustment:
The trailing stops are adjusted using one of three methods: an automatic calculation based on the median of recent peak differences, pivot points, or a fixed percentage defined by the user.
The Break-Even Curve:
The Break-Even Curve, along with the risk/reward ratio, is determined through the trailing method. This approach utilizes the current closing price as a hypothetical entry point for trades. All calculations, including those for the curve, are based on this current closing price, ensuring real-time accuracy and relevance. As market conditions fluctuate, the curve dynamically adjusts, offering traders a visual benchmark that signifies the break-even point. This real-time adjustment provides traders with an invaluable tool, allowing them to visually track how shifts in the market could impact the point at which their trades neither gain nor lose value.
Example:
Let's say the price is at the midpoint of the risk/reward box; this means that the risk/reward ratio should be 1:1, and the minimum win rate is 50% to break even.
In this example, we can see that the price is near the stop-loss level. If you are about to take a trade in this area and would respect your stop, you only need to have a minimum win rate of 11% to earn money, given the risk/reward ratio, assuming that you hold the trade to the target.
In other words, traders can, at any given point, assess the kind of strategy they need to employ to make money based on the price's position within the risk/reward box.
█ How to Use
Market Bias:
When using the Auto Bias feature, the indicator calculates the underlying market bias and displays it as either bullish or bearish. This helps traders align their trades with the underlying market trend.
Risk Management:
By observing the plotted trailing stops and the risk-reward ratios, traders can make strategic decisions to enter or exit positions, effectively managing the risk.
Strategy selection:
The Break-Even Curve is a powerful tool for managing risk, allowing traders to visualize the relationship between their trailing stops and the market's price movements. By understanding where the break-even point lies, traders can adjust their strategies to either lock in profits or cut losses.
Based on the plotted risk/reward box and the location of the price within this box, traders can easily see the win rate required by their strategy to make money in the long run, given the risk/reward ratio.
Consider this example: The market is bullish, as indicated by the bias, and the indicator suggests looking into long trades. The price is near the top of the risk/reward box, which means entering the market right now carries a huge risk, and the potential reward is very low. To take this trade, traders must have a strategy with a win rate of at least 90%.
█ Settings
Trailing Method:
Auto: The indicator calculates the trailing stop dynamically based on market conditions.
Pivot: The trailing stop is adjusted to the highest high (long positions) or lowest low (short positions) identified within a specified lookback period. This method uses the pivotal points of the market to set the trailing stop.
Percentage: The trailing stop is set at a fixed percentage away from the peak high or low.
Trailing Size (prd):
This setting defines the lookback period for the highest high and lowest low, which affects the sensitivity of the trailing stop to price movements.
Percentage Step (perc):
If the 'Percentage' method is selected, this setting determines the fixed percentage for the trailing stop distance.
Set Bias (bias):
Allows users to set a market bias which can be Bullish, Bearish, or Auto, affecting how the trailing stop is adjusted in relation to the market trend.
-----------------
Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Smart Money Setup 04 [TradingFinder] Three Drive (Harmonic) + OB🔵 Introduction
The "Three Drive" pattern is a well-known formation in technical analysis, recognized for its ability to signal potential trend reversals in price action. Within the realm of trading, particularly in the context of "Reversal Patterns," the Three Drive pattern holds significance as a reliable indicator of shifts in market sentiment.
🟣 Bullish 3 Drive
This pattern typically manifests at a price bottom, where a sequence of lower lows suggests a prevailing negative trend. However, within the structure of the Three Drive pattern, a notable occurrence unfolds.
The second low breaches the range of the first low, followed by the third low surpassing the range of the second low. These penetrations signify a diminishing selling pressure and an emerging buying interest.
Traders often await the confirmation of the third low surpassing the second low as an entry point, with price targets set at the highs formed within the Three Drive pattern.
🟣 Bearish 3 Drive
Conversely, the Bearish Three Drive pattern emerges at a price top, characterized by a sequence of higher highs indicating an upward trend. Yet, amidst this apparent bullish momentum, a shift occurs.
The second high breaks beyond the range of the first high, succeeded by the third high exceeding the range of the second high. These breaches signify a waning buying strength and a resurgence in selling pressure.
Entry into a trade is often executed after the confirmation of the third high surpassing the second high, with targets set at the lows formed within the Three Drive pattern.
Importance :
Understanding the Three Drive pattern's significance extends beyond mere technical analysis. It bears resemblance to other established patterns, such as the Harmonic Pattern and Ending Diagonal within the Elliott Wave Theory.
Recognizing these parallels aids traders in comprehending broader market dynamics and potential price movements.
🔵 Formation of 3 Drive in Order Block Zone
The convergence of the Three Drive pattern with the concept of the Order Block Zone introduces a nuanced layer to traders' analytical approach.
In "Price Action" methodology, Order Blocks represent areas on the price chart where significant market players, such as institutional traders, have executed notable orders.
These zones often act as barriers, with price encountering resistance or support upon reaching them.
When the Three Drive pattern forms within an Order Block Zone, it signifies a confluence of market dynamics.
The completion of the pattern within this zone suggests a potential reversal in the prevailing trend, augmented by the presence of significant institutional orders.
Traders incorporate these Order Blocks into their analysis to identify probable levels where price may change direction, enhancing the reliability of their trading decisions.
🔵 How to Use :
To effectively utilize the Three Drive pattern within the Order Block Zone, traders seek alignment between the completion of the pattern and the presence of significant Order Blocks.
This convergence enhances the reliability of the pattern's signals, increasing the likelihood of successful trade outcomes.
Bullish Three Drive in Demand Zone :
Bearish Three Drive in Supply Zone :
Settings :
You can set your desired "Pivot Period" via settings for the indicator to identify setups based on it.
Bullish Cassiopeia C Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia C 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.
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 C Harmonic Patterns
• Bullish Cassiopeia C patterns are fundamentally composed of three troughs and two peaks. The second peak being higher than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is higher than the first.
• Bearish Cassiopeia C patterns are fundamentally composed of three peaks and two troughs. The second trough being lower than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is 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!
Bullish Cassiopeia B Harmonic Patterns [theEccentricTrader]█ OVERVIEW
This indicator automatically detects and draws bullish Cassiopeia B 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.
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 B Harmonic Patterns
• Bullish Cassiopeia B patterns are fundamentally composed of three troughs and two peaks. The second peak being lower than the first peak. And the third trough being lower than both the first and second troughs, while the second trough is also lower than the first.
• Bearish Cassiopeia B patterns are fundamentally composed of three peaks and two troughs. The second trough being higher than the first trough. And the third peak being higher than both the first and second peaks, while the second peak is also higher 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!
Three Drive [TradingFinder] 3 Drive Harmonic Pattern Indicator🔵 Introduction
The "Three Drive" pattern is one of the light "RTM" setups suitable for identifying price trend reversals. For this reason, this pattern is considered one of the "Reversal Patterns."
🟣 Bullish 3 Drive
At a price bottom, a formation occurs where the negative trend appears to continue, and lower lows are made.
However, the second low penetrates the range of the first low, and the third low penetrates the range of the second low, indicating a decrease in selling pressure and an increase in buying pressure.
Entry point is issued after the penetration of the third low to the second low, and targets are the highs formed in the "3 Drive."
🟣 Bearish 3 Drive
At a price top, a formation occurs where the positive trend appears to continue, and higher highs are made.
However, the second high penetrates the range of the first high, and the third high penetrates the range of the second high, indicating a decrease in buyers' strength and an increase in sellers' strength.
Entry point is issued after the penetration of the third high to the second high, and targets are the lows formed in the "3 Drive."
Importance :
This pattern bears a striking resemblance to the some of "Harmonic Pattern" and "Ending Diagonal" in the "Elliott Pattern".
🔵 How to Use
There is no need for further confirmation to use this pattern, and you can use it as soon as the pattern forms. However, to reduce errors, it is better to use this pattern when it forms within a "Supply and Demand" or "Support and Resistance" structure.
Bullish 3 Drive in Demand Zone :
Bearish 3 Drive in Supply Zone :
🔵 Settings
You can set your desired "Pivot Period" via settings for the indicator to identify setups based on it.
ChartRage - ELMAELMA - Exponential Logarithmic Moving Average
This is a new kind of moving average that is using exponential normalization of a logarithmic formula. The exponential function is used to average the weight on the moving average while the logarithmic function is used to calculate the overall price effect.
Features and Settings:
◻️ Following rate of change instead of absolute levels
◻️ Choose input source of the data
◻️ Real time signals through price interaction
◻️ Change ELMA length
◻️ Change the exponential decay rate
◻️ Customize base color and signal color
Equation of the ELMA:
This formula calculates a weighted average of the logarithm of prices, where more recent prices have a higher weight. The result is then exponentiated to return the ELMA value. This approach emphasizes the relative changes in price, making the ELMA sensitive to the % rate of change rather than absolute price levels. The decay rate can be adjusted in the settings.
Comparison EMA vs ELMA:
In this image we see the differences to the Exponential Moving Average.
Price Interaction and earlier Signals:
In this image we have added the bars, so we can see that the ELMA provides different signals of resistance and support zones and highlights them, by changing to the color yellow, when prices interact with the ELMA.
Strategy by trading Support and Resistance Zones:
The ELMA helps to evaluate trends and find entry points in bullish market conditions, and exit points in bearish conditions. When prices drop below the ELMA in a bull market, it is considered a buying signal. Conversely, in a bear market, it serves as an exit signal when prices trade above the ELMA.
Volatile Markets:
The ELMA works on all timeframes and markets. In this example we used the default value for Bitcoin. The ELMA clearly shows support and resistance zones. Depending on the asset, the length and the decay rate should be adjusted to provide the best results.
Real Time Signals:
Signals occur not after a candle closes but when price interacts with the ELMA level, providing real time signals by shifting color. (default = yellow)
Disclaimer* All analyses, charts, scripts, strategies, ideas, or indicators developed by us are provided for informational and educational purposes only. We do not guarantee any future results based on the use of these tools or past data. Users should trade at their own risk.
This work is licensed under Attribution-NonCommercial-ShareAlike 4.0 International
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