Engulfing Signals
Okay, so we've got an indicator here that prints buy sell signals based on engulfing candles and uses a 200 EMA and RSI to filter out some of the noise.
This indicator incorporates price action, in the form of engulfing candles, moving averages and a momentum oscillator. It also has the of plotting either a Simple Moving Average or an Exponential Moving Average over varying periods in order to determine if price is respecting a certain level or to develop more accurately-timed alert signals. Engulfing candles can be a good indication of a change in sentiment and momentum.
Engulfing candles can be a good indication of a change in market behaviour but they happen far too often to be of any practical use by themselves.
In order to filter out some of the weaker candles, I have incorporated RSI into this script. The indicator will provide a BUY signal only when an engulfing candle prints and there is a reading of above 50 on the RSI, which is considered to reflect overall bullish sentiment. The signal is printed directly on the chart as a small green triangle just under the engulfing candle.
In contrast, the indicator will provide a SELL signal only when an engulfing candle prints and there is a reading of below 50 on the RSI, which is considered to reflect overall bearish sentiment. The signal is printed directly on the chart as a small red triangle just above the engulfing candle.
In order to maintain a clean chart and maximise the opportunity to couple this indicator up with other indicators that may increase the accuracy of the signals even further, the RSI will not be shown on the chart. However, to verify the accuracy of the signals please feel free to load the RSI indicator onto your chart and you will see that the signals only print according to the conditions described above.
In order to further filter out weaker signals I have made a rule that a buy signal should only print if it is above the 200 EMA and a sell signal only if the engulfing candle is below the 200 EMA. I use the 200 EMA because it is a commonly accepted indication of the general trend and to make the signals as accurate as possible we want to be trading with the longer trend, not against it.
The indicator will not print signals for engulfing candles outside of these parameters.
I suggest combining this indicator with a shorter moving average such as a 9, 14 or 20 perhaps. There is no need to add an additional indicator. You can do this directly in the settings menu. This unique feature allows you to study possible levels that price may or may not be respecting.
Alternatively, you could use the MACD to filter out some of the weaker signals, though bear in mind that the RSI is already doing that to some degree before the signal even prints.
To my knowledge there is no other indicator out there that combines these three concepts but, as you will see, doing so provides some high quality signals.
Cerca negli script per "bear"
Hide Active Candle [SteinG]Hide Active Candle
An essential tool for disciplined traders seeking to avoid making hasty decisions based on active bars that have not yet closed.
Have you ever found yourself eagerly anticipating an entry, only to be tempted by an active candle that starts to pull away? Or perhaps you've been caught in a trade where an active candle pushes against you, stirring unease and uncertainty. Fear not, for we have a solution!
"Hide Active Candle" is a simple Pine Script indicator designed to ghost the active bar on your chart, reinforcing the importance of patiently waiting for its closure before making any trading decisions. By masking the active candle, this indicator serves as a constant reminder to exercise caution and to base your actions on solid, confirmed information.
To make the most of this powerful tool, ensure that you are using a candlestick chart, as this script operates optimally within that framework. Follow these simple steps to get started:
1. Right-click on your chart and select "Settings..."
2. From the drop-down menu, choose "Symbol" under the "Chart Settings" section.
3. Disable every item in the list to fully utilize the capabilities of "Hide Active Candle."
But wait, there's more! We understand that each trader has unique preferences and requirements. That's why we've included customizable settings within the script to tailor it to your specific needs. You have the option to adjust the following parameters:
- Countdown seconds left : Specify the number of seconds before the bar closes when the current candle becomes visible.
- Bull candle color : Select the color that represents bullish candles on your chart.
- Bear candle color : Choose the color that indicates bearish candles.
- Equal candle color : Define the color for Doji star candles.
- Theme : Opt for a dark or light theme, as the active candle mask will be based on your chosen theme.
- Custom hidden color : Personalize the mask color according to your preferences.
By fine-tuning these settings, you can create a trading environment that perfectly suits your style and enhances your decision-making process.
Thange Momentum KicksTitle: Thange Momentum Kicks Indicator - Identify Strong Bullish and Bearish Candles
Description:
The Thange Momentum Kicks indicator is a small tool designed to identify strong bullish and bearish candles in a candlestick price chart. By analyzing the momentum and size of each candle, this indicator highlights potential significant price movements.
The indicator marks strong bullish candles with a "Bull Kick" label to signal their strength on price action. Similarly, strong bearish candles are identified with the "Bear Kick" label. These kicks are characterized by their size and momentum, indicating a high probability of significant price movement.
The indicator allows traders and investors to easily spot these kicks on their charts, helping them make quick decisions. It calculates the percentage momentum of each candle and compares it to the specified thresholds for bullish and bearish kicks.
Key Features:
- Identifies strong bullish and bearish candles ("Kicks") based on momentum and size.
- Customizable input parameters for setting the percentage thresholds for kicks.
- Labels and tooltips provide essential information such as momentum, percentage change, open, and close prices.
- Differentiates between bullish kicks with blue color and bearish kicks with a unique pink color.
- Plots the candles with the specified colors for easy visualization.
Instructions:
1. Look for the "Kicks" labeled candles on your chart.
2. Bullish kicks indicate strong upward momentum, while bearish kicks represent strong downward momentum.
3. Consider the size and momentum of the kicks when making trading decisions.
4. Combine the Thange Momentum Kicks indicator with other technical analysis tools for a comprehensive market analysis.
Note: The Thange Momentum Kicks indicator is most effective when used in conjunction with other indicators, chart patterns, and risk management strategies to confirm signals and optimize trade entries and exits.
Disclaimer: This indicator should be used as a tool for technical analysis and does not guarantee specific trading outcomes. Users should exercise their own discretion and risk management when making trading decisions based on this indicator.
I hope my Thange Momentum Kicks indicator enhances your trading experience and helps you identify strong bullish and bearish candles with ease. Happy trading!
Discrete Fourier Transformed Money Flow IndexThe Discrete Fourier Transform Money Flow Index indicator integrates the Money Flow Index (MFI) with Discrete Fourier Transform (credit to author wbburgin - May 26 2023 ) smoothing to offer a refined and smoothed depiction of the MFI's underlying trend. The MFI is calculated using the formula: MFI = 100 - (100 / (1 + MR)), where a high MFI value indicates robust buying pressure (signaling an overbought condition), and a low MFI value indicates substantial selling pressure (signaling an oversold condition).
Why is the DFT and MFI combined?
The aim of this combination between DFT and MFI is to effectively filter out short-term fluctuations and noise, enabling a clearer assessment of the overall trend. This smoothing process enhances the reliability of the MFI by emphasizing dominant and sustained buying or selling pressures. This script executes a full DFT but only uses filtering from one frequency component. The choice to focus on the magnitude at index 0 is significant as it captures the dominant or fundamental frequency in the data. By analyzing this primary cyclic behavior, we can identify recurring patterns and potential turning points more easily. This streamlined approach simplifies interpretation and enhances efficiency by reducing complexity associated with multiple frequency components. Overall, focusing on the dominant frequency and applying it to the MFI provides a concise and actionable assessment of the underlying data.
Note: The FMFI indicator provides both smoothed and non-smoothed versions of the MFI, with the option to toggle the original non-smoothed MFI on or off in the settings.
Application
FMFI functions as a trend-following indicator. Bullish trends are denoted by the color white, while bearish trends are represented by the color purple. Circles plotted on the FMFI indicate regular bull and bear signals. Additionally, red arrows indicate a strong negative trend, while green arrows indicate a strong positive trend. These arrows are calculated based on the presence of regular bull and bear signals within overbought and oversold zones. To enhance its effectiveness, it is recommended to combine this indicator with other complementary technical analysis tools and integrate it into a comprehensive trading strategy. Traders are encouraged to explore a wide range of settings and timeframes to align the indicator with their unique trading preferences and adapt it to the current market conditions. By doing so, traders can optimize the indicator's performance and increase their potential for successful trading outcomes.
Utility
Traders and investors can employ this indicator to enhance their trend-following strategies. The white-colored components of the FMFI can help identify potential buying zones, while the purple-colored components can assist in identifying potential selling points. The red and green arrows can be used to pinpoint moments of strong bull or bear momentum, allowing traders to position themselves advantageously in their trading activities. Please note that future performance of any trading strategy is fundamentally unknowable, and past results do not guarantee future performance.
Cycles AnalysisI strongly believe in cycles, so I wanted to create something that would give a visual representation of bull/bear markets and give a prediction based on the previous data. It's up to you how to decide what is a bull/bear cycle. There is no single rule for all assets because 20% drop in SP500 starts a bear market in traditional markets, while 35% drop for Bitcoin is a Tuesday. You have two options on how to decide when markets turn: either by a % change (traditional definition) or if there is no new high/low after X days. A softer version to show periods of no new highs/lows is to use the Stagnation option. Stagnation periods hava the same logic as the cycle change by X days: if there is no new high/low then we treat this period as a stagnation. The difference is that stagnation periods do not change cycle directions and do not participate in calculations.
The script also draws a possible "predictions" zone where the current cycle might end up. There is no magic here, it just takes previous cycles' size to draw the possible boundaries. If you decide to use percentiles then the box area will be taken from the percentiles calculations, otherwise it will come from the full data. "x" in the predictions zone represents a target mean (average) value, "o" represents a target median value.
A few things to keep in mind:
- this script is not supposed to be used in trading. It was created for analysis. It repaints. And when I say "it repaints" - it might like repaint the last 6 months of data if a new low comes and we are in a stagnation period (aka not a financial advice).
- it doesn't work with replays as it does calculations only once on the last candle.
- you need at least 3 periods to be able to calculate percentiles. And after this it will remove at least 1 period on each side. Which means that 90 percentile will not be a real 90 percentile until you have enough periods for it to be (20 in this specific case).
- it assumes that a year = 360 days, and a month = 30 days. So the duration presentation might not be exact, until you move to the day level.
- I had macro analysis in mind when I created the script, but nothing stops you from using it in a 1m time frame for BTC. Just change the time duration presentation.
- the last period is not finished, so it doesn't participate in calculations.
ASG Delta %This utility script provides a convenient way to calculate the percentage gain or drop of a token's price within a user-defined date range. It eliminates the need for manual measurement on individual charts, saving time and effort.
The script is particularly valuable when integrated into a daily token scanning routine for watchlists. By comparing the significant gains or drops among different tokens, traders can identify potential trading opportunities.
Simply select the desired date range, and the script will identify the highest and lowest price points achieved during that period. It then shows a visual representation in the form of a bullish or bearish box, displaying the percentage change (delta %). If the current price falls within the box's upper and lower bounds, additional percentage information can be shown in either the 'normal' or 'reverse' mode.
For instance, if a token experiences a -52.35% drop, enabling the 'Reverse' setting will reveal a potential 109.86% gain (from the low), or a 76.02% gain (from current price) or a potential drop of -16.5% (from current price) etc.. Having these basic statistics available, without having to manually chart them, especially during prolonged bear or bull markets, enables traders to make informed decisions and position themselves for more profitable trades.
I hope you find this script valuable. Your comments and recommendations are welcome as they will help improve the script's functionality further.
Nifty TOP 10 Puller and Drggaers by Deehi guys this is a straightforward indicator that shows the top 10 nitty pullers and dragger
How to use it ?
in the table, you can see the values of each puller and dragger well as their contribution amount and it will show if they puller or dragger
graph shows the puller and dragger using a line
both have max 100 points allocated
if they exceed the 100 points then a line will struck their ( point to remember ) it does not glitch
so it will give Ruf idea of who is strong
if buyers are strong then the green lien will always be upside
if sellers are string then the red line will always be upside
*Cross Over *
there are 2 types of cross over 1 is bull cross over other is bear cross over
when bulls are strong they will cross over the red from the bottom it showing that significantly strong
when bear is strong they will cross over the green from the bottom it shows that bear is significantly strong
hope you understand how to use it
we have limitation in trading view so we choose only 10 stock to calculate the %
3 Line Strike MTF [MsF]Japanese below / 日本語説明は英文の後にあります。
-------------------------
*This indicator is based on TheTrdFloor's "3 Line Strike ". It's a very cool indicator. thank you.
In addition to the original indicator, it will be judged Engulfing only when the display of the MTF signal and the candle have a difference of 2 times or more.
=== Function description ===
1. Display of the MTF signal
Detects Engulfing of the specified Multi Time Frame. MTF Engulfing is displayed with 🍆 and 🍑.
2. Judged Engulfing on a difference of 2 times or more
Show a signal if the body of the current candle is more than twice as large as the body of the previous candle. This will make the signal mark appear larger than normal.
=== Parameter description ===
- COMMON SETTING
- Show Signal on MTF ? … If the check this, you can get MTF 3 Line Strike
- Judge Double Engulfing ? … If you check it, the signal will come up only when the Engulfing has doubled or more.
- 3 LINE STRIKE
- Show Bearish 3 Line Strike … The Bearish 3 Line Strike (3LS-Bear) is a candlestick pattern comprised of 3 bullish (green) candles, followed by a bearish engulfing candle (see 'Big A$$ Candles' below). This pattern tends to be best used as a signal of the end of a retracement period as part of a trend continuation strategy. Default: Checked
- Show Bullish 3 Line Strike … The Bullish 3 Line Strike (3LS-Bull) is a candlestick pattern comprised of 3 bearish (red) candles, followed by a bullish engulfing candle (see 'Big A$$ Candles' below). This pattern tends to be best used as a signal of the end of a retracement period as part of a trend continuation strategy. Default: Checked
- BIG A$$ CANDLES
- Show Bearish Big A$$ Candles … Bearish 'Big A$$ Candles' are the same as Bearish Engulfing candles.
- Show Bullish Big A$$ Candles … Bullish 'Big A$$ Candles' are the same as Bullish Engulfing candles.
-------------------------
本来のインジケーターに、①MTFシグナルの表示と②ローソク足の表示に2倍以上の差がある場合のみ包み足の判定を追加しました。
=== 機能説明 ===
1. MTFシグナルの表示
指定された時間足の包み足を検出します。 🍆 と 🍑 で表示されます。
2. 2倍以上の差で包み足判定
現在のローソクの実体が前のローソクの実体よりも 2 倍以上大きい場合にシグナルを表示します。マークは通常よりも大きく表示されます。
=== パラメータの説明 ===
- COMMON SETTING
- Show Signal on MTF ? … MTFシグナルを表示します
- Judge Double Engulfing ? … 包み足が前の足の2倍以上になった場合のみシグナルを発報します
- 3 LINE STRIKE
- Show Bearish 3 Line Strike … 陰線が3連続続いた後の包み足を検出します
- Show Bullish 3 Line Strike … 陽線が3連続続いた後の包み足を検出します
- BIG A$$ CANDLES
- Show Bearish Big A$$ Candles … 陽線の包み足を検出します
- Show Bullish Big A$$ Candles … 陰線の包み足を検出します
EMA ProHi Traders!
This Improved EMA Cross Pro Indicator does a few things that Ease Up Our Charting.
Personally it Saved me Tons of Time searching for structure highs / lows, measuring ranges and distances from my entry to stop or take profit.
It's like having most of your trade in front of you, charted for you.
Works Across Assets & Time Frames.
The Functions
1. Signals EMA Crosses - green for Bull Cross & Red for Bear Cross
2. Signals Touches to the 55 EMA
a. In a Bull Cross it will only signal touches and closes Above the 55
b. In a Bear Cross it will only signal touches and closes Under the 55
3. Plots Current Horizontals:
a. The current position of the 55
b. The last High & Low
4. Calculation:
a. % from the 55 to the High & Low
b. Risk / Reward Ratio ("Bad Risk Management" message appears if ratio is not favorable)
c. Over Range between the Low and the High
5. Labels - Current prices for all horizontals marked as Entry, Exit & Stop
Notes:
* This Indicator is Interchanging between bull and bear crosses, it recognizes the trend and adapts its high and low output.
* You Can and Should make your personal changes. everything can be changed in the settings inputs.
* You can Turn On & Off most functions in the settings inputs.
BYBIT:BTCUSDT.P
ADW - Colour TrendColour Trend is an indicator that will give you a visual representation of the trend in a selected market, and alert you when the trend changes. The green colour represents a bullish trend (prices are going up), the red colour represents a bearish trend (prices are going down), and silver represents a neutral trend (prices are relatively stable). The script calculates these trends based on the relative price levels and their moving averages.
Below is a breakdown of the script so you can better understand how these trends are defined.
Function f_p(_length, price) : This function calculates the price relative to its highest and lowest point over the given `_length` of time. This calculation is normalized by multiplying it by 100, giving us a percentage-like measure.
User Inputs : The length of the period (default 12), you can choose to show or hide bar colours (default is true).
Variables cycle_avg, cycle_counter, cycle_count, cycle_trend, cycle_col : These variables are used to calculate the trend cycles. The `cycle_avg` is the average trend cycle, `cycle_counter` keeps track of the current trend cycle, `cycle_count` counts the total number of cycles, `cycle_trend` keeps track of the direction of the cycle (1 for up, -1 for down), and `cycle_col` defines the colour of the current cycle.
Variables ph, pl, avg, mean : These variables calculate the price level relative to the highest and lowest prices (`ph` and `pl`), the average of these two levels (`avg`), and the cumulative average of the price level (`mean`).
Conditionals for cycle trend : The if-statements are checking whether the price level has reached a trend extreme and then updating the trend cycle, colour, count, and average accordingly.
Variable col and bar color : The variable `col` is used to define the colour of the bars based on the average price level. If the `show_barcolor` is true, the colour is determined based on the `avg` value.
Alert Conditions : These are conditions that will send alerts to the user when the trend changes. Specifically, the alerts occur when the colour changes from non-green to green (bull trend), from non-red to red (bear trend), or from non-silver to silver (no trend).
Volume accumulation [TCS] | VTAThe indicator calculates buy and sell volume values for different look-back periods, based on the high, low, close, and tick volume data of the chart.
The calculated buy and sell volume values are stored in separate variables, which represent cumulative volume values over the respective look-back periods.
It's important to note that the code provided calculates the buy and sell volume values individually for each look-back period and after sum them.
It can be useful to understand who is in control of the market based on the look-back period.
For example if the price is decreasing but the volume in the past candle are bullish it means that the trend probably will turn.
Please note that this indicator is for educational purposes only and should not be used for trading without further testing and analysis.
Fierytrading: Volatility DepthDear Tradingview community,
I'd like to share one of my staple indicators with you. The volatility depth indicator calculates the volatility over a 7-day period and plots it on your chart.
This indicator only works for the DAILY chart on BTC/USD.
Colors
I've color coded the indicator as follows:
- Red: Extreme Volatility
- Orange: High Volatility
- Yellow: Normal Volatility
- Green: Low Volatility
Red: extreme changes in price. Often during local tops and bottoms.
Orange: higher than average moves in price. Often before or after a "red" period. Often seen in the middle of bear or bull markets.
Yellow: normal price action. Often seen during early stage bull-markets and late stage bear-markets.
Green: very low price movement. Often during times of indecision. Once this indicator becomes green, you can expect a big move in either direction. Low volatility is always followed by high volatility.
In a long-term uptrend, a green period often signals a bullish break out. In a long-term downtrend it often signals a bearish break out.
How to use
Save the indicator and apply it to your chart. You can change the length in the settings, but it's optimized for 7 days, so no need to change it.
I've build in alerts for all 4 different volatility periods. In most cases, the low volatility alert is enough.
Good luck!
Cumulative TICK Trend[Pt]Cumulative TICK Trend indicator is a comprehensive trading tool that uses TICK data to define the market's cumulative trend. Trend is shown on ATR EMA bands, which is overlaid on the price chart. Cumulative TICK shown on the bottom pane is for reference only.
Main features of the Cumulative TICK Trend Indicator include:
Selectable TICK Source: You have the flexibility to choose your preferred TICK source from the following options, depending on the market you trade: USI:TICK, USI:TICKQ, USI:TICKI, and USI:TICKA.
TICK Data Type: Select the type of TICK data to use, options include: Close, Open, hl2, ohlc4, hlc3.
Simple Moving Average (SMA): You can choose to apply an SMA on the calculated Cumulative TICK values with a customizable length.
Average True Range (ATR) Bands: It provides the option to display ATR bands with adjustable settings. This includes the ATR period, EMA period, source for the ATR calculation, and the ATR multiplier for the upper band.
Trend Color Customization: You can customize the color of the bull and bear trends according to your preference.
Smooth Line Option: This setting allows you to smooth the ATR Bands with a customizable length.
How it Works:
This indicator accumulates TICK data during market hours (9:30-16:00) as per the New York time zone and resets at the start of a new session or the end of the regular session. This cumulative TICK value is then used to determine the trend.
The trend is defined as bullish if the SMA of cumulative TICK is equal to or greater than zero and bearish if it's less than zero. Additionally, this indicator plots the ATR bands, which can be used as volatility measures. The Upper ATR Band and Lower ATR Band can be made smoother using the SMA, according to the trader's preference.
The plot includes two parts for each trend: a stronger color (Red for bear, Green for bull) when the trend is ongoing, and a lighter color when the trend seems to be changing.
Remember, this tool is intended to be used as part of a comprehensive trading strategy. Always ensure you are managing risk appropriately and consulting various data sources to make informed trading decisions.
True Trend Oscillator [wbburgin]The True Trend oscillator identifies trending or ranging markets with a stochastic ATR and RSI. Here are some examples for how it can be used.
Uptrends
If the candlesticks are lime green, this signals an uptrend. On the oscillator, you can identify an uptrend if the bull strength (the green line) is above the bear strength (the red line). The strength of the uptrend and the downtrend can be found by looking at the slope of these lines.
Downtrends
If the candlesticks are red, this signals a downtrend. On the oscillator, notice how the bear strength line is above the bull strength line.
Ranging Markets and Pullbacks
The True Trend oscillator can also be used to identify ranging markets or pullbacks. Let's look at the previous example again:
If you notice that the bull and bear lines are bouncing above the red weak-trend zone (as in the example above), this signals an extended trend. On the contrary, when the bull and bear lines fall into the weak-trend zone, this may indicate a larger pullback or a range to look to enter a trade again, as in this example, where the ranging candles in gray demonstrate temporary pullbacks in a larger bullish trend:
Ranges can also occur before trend reversals, so a range may also indicate a smart time to secure profits.
You can customize the ranging threshold in the settings. It can be set from 0-100 because the indicator is a stochastic.
Hope you all find this indicator useful!
High Volume Candles Detector - Open Source CodeGreetings, fellow traders!
Throughout my trading career, I've been intrigued by the dynamic interplay between candlestick patterns and trading volume. This fascination led me to develop an open-source indicator to help illuminate these patterns for the broader trading community.
Upon researching the Public Library, I found that many indicators relating to candlestick/volume analysis are proprietary and not open-source. This discovery further fueled my commitment to contribute a free, accessible tool that traders of all levels can utilize in their technical analysis.
Thus, I am excited to present to you our High Volume Bars Indicator. A unique tool that I believe fills a gap in the Public Library. I truly hope you find it beneficial in your trading journey and that it empowers you to make more informed decisions.
Description:
The High Volume Bars Detector is designed to help traders identify bars with significantly higher volume than the average. Users can filter in the settings menu:
1) The length of the Simple Moving Average (SMA) for volume, allowing you to define the average volume over a specific number of bars.
2) The Volume Multiplier, a factor that determines how much greater the volume of a bar should be compared to the SMA to qualify as a high-volume bar.
3) The Lookback Period, a specified number of candles used as a comparative benchmark for identifying the highest volume.
4) If the Volume bar is green or red, so if the candle price is --> close > open or open > close
Examples to better understand the logic of the indicator:
1) Length of the Simple Moving Average (SMA) for Volume: This setting allows you to define the average volume over a specific number of bars. For instance, if you set the SMA length to 20, the indicator will calculate the average volume of the past 20 bars and use it as a baseline to identify high volume bars.
2) Volume Multiplier: This is a critical factor that determines the threshold for what constitutes a high-volume bar. If you set the volume multiplier to 2.0, for example, the indicator will flag any bar where the volume is twice the value of the SMA volume as a high-volume bar.
3) Lookback Period: This setting lets you specify the number of candles that the indicator should consider when determining the highest volume. For instance, if the lookback period is set to 14, the indicator will compare the volume of the current bar with the volumes of the previous 14 bars. If the current bar's volume is the highest, it will be flagged.
4) Volume Bar Color: This filter helps you identify whether a high-volume bar is bullish or bearish. If the bar is green (close > open), it suggests buyers were dominant during that period. If the bar is red (open > close), it suggests sellers had the upper hand. By setting this filter, you can choose to focus on high volume bars that are either bullish (green) or bearish (red) or both, depending on your trading strategy.
Remember, these filters offer a level of customization that allows you to tailor the High Volume Bars Detector to your unique trading style and requirements. Always remember to adapt these settings to align with your overall trading plan and risk tolerance.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Support me:)
If you find this new indicator helpful in your trading analysis, I would greatly appreciate your support! Please consider giving it a like, leaving feedback, or sharing it with your trading network. Your engagement will not only help me improve this tool but will also help other traders discover it and benefit from its features. Thank you for your support!
RSI, SRSI, MACD and DMI cross - Open source codeHello,
I'm a passionate trader who has spent years studying technical analysis and exploring different trading strategies. Through my research, I've come to realize that certain indicators are essential tools for conducting accurate market analysis and identifying profitable trading opportunities. In particular, I've found that the RSI, SRSI, MACD cross, and Di cross indicators are crucial for my trading success.
Detailed explanation:
The RSI is a momentum indicator that measures the strength of price movements. It is calculated by comparing the average of gains and losses over a certain period of time. In this indicator, the RSI is calculated based on the close price with a length of 14 periods.
The Stochastic RSI is a combination of the Stochastic Oscillator and the RSI. It is used to identify overbought and oversold conditions of the market. In this indicator, the Stochastic RSI is calculated based on the RSI with a length of 14 periods.
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. It consists of two lines, the MACD line and the signal line, which are used to generate buy and sell signals. In this indicator, the MACD is calculated based on the close price with fast and slow lengths of 12 and 26 periods, respectively, and a signal length of 9 periods.
The DMI is a trend-following indicator that measures the strength of directional movement in the market. It consists of three lines, the Positive Directional Indicator (+DI), the Negative Directional Indicator (-DI), and the Average Directional Index (ADX), which are used to generate buy and sell signals. In this indicator, the DMI is calculated with a length of 14 periods and an ADX smoothing of 14 periods.
The indicator generates buy signals when certain conditions are met for each of these indicators.
1) For the RSI, a buy signal is generated when the RSI is below or equal to 35 and the Stochastic RSI %K is below or equal to 15, or when the RSI is below or equal to 28 the Stochastic RSI %K is below or equal to 15 or when the RSI is below or equal to 25 and the Stochastic RSI %K is below or equal to 10 or when the RSI is below or equal to 28.
2) For the MACD, a buy signal is generated when the MACD line is below 0, there is a change in the histogram from negative to positive, the MACD line and histogram are negative in the previous period, and the current histogram value is greater than 0.
3) For the DMI, a buy signal is generated when the Positive Directional Indicator (+DI) crosses above the Negative Directional Indicator (-DI), and the -DI is less than the +DI.
The indicator generates sell signals when certain conditions are met for each of these indicators:
1) For the RSI, a sell signal is generated when the RSI is above or equal to 75 and the Stochastic RSI %K is above or equal to 85, or when the RSI is above or equal to 80 and the Stochastic RSI %K is above or equal to 85, or when the RSI is above or equal to 85 and the Stochastic RSI %K is above or equal to 90 or when the RSI is above or equal to 82.
2)For the MACD, a sell signal is generated when the MACD line is above 0, there is a change in the histogram from positive to negative, the MACD line and histogram are positive in the previous period, and the current histogram value is less than the previous histogram value. On the other hand, a buy signal is generated when the MACD line is below 0, there is a change in the histogram from negative to positive, the MACD line and histogram are negative in the previous period, and the current histogram value is greater than the previous histogram value.
3)For the DMI a bearish signal is generated when plusDI crosses above minusDI, indicating that bulls are losing strength and bears are taking control.
The indicator uses a combination of these four indicators to generate potential buy and sell signals. The buy signals are generated when RSI and SRSI values are in oversold conditions, while sell signals are generated when RSI and SRSI values are in overbought conditions. The indicator also uses MACD crossovers and DMI crossovers to generate additional buy and sell signals.
When a signal is strong?
The use of multiple signals within a specific timeframe can increase the accuracy and reliability of the signals generated by this indicator. It is recommended to look for at least two signals within a range of 5-8 candles in order to increase the probability of a successful trade.
Why it's original?
1) There is no indicator in the library that combine all of these indicators and give you a 360 view
2)The combination of the RSI, Stochastic RSI, MACD, and DMI indicators in a single script it's unique and not available in the libray.
3)The specific parameters and conditions used to calculate the signals may be unique and not found in other scripts or libraries.
4)The use of plotshape() to plot the signals as shapes on the chart may be unique compared to other scripts that simply plot lines or bars to indicate signals.
5)The use of alertcondition() to trigger alerts based on the signals may be unique compared to other scripts that do not have custom alert functionality.
Keep attention!
It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Support me:)
If you find this new indicator helpful in your trading analysis, I would greatly appreciate your support! Please consider giving it a like, leaving feedback, or sharing it with your trading network. Your engagement will not only help me improve this tool but will also help other traders discover it and benefit from its features. Thank you for your support!
Exponential ADR with Price TargetsThis script is designed to help you analyze price movements in the financial markets by calculating the Average Daily Range (ADR), adjusting it based on exponentiality and generating price targets based on that range.
The ADR represents the average range between the highest and lowest prices of a trading instrument during a specific period. It gives you an idea of how much the price typically moves in a day. In this script, we calculate the ADR using Simple Moving Averages (SMA) of the high and low prices over a certain length of time. You can customize this length according to your preference.
To make the ADR smoother and more responsive to recent price changes, we apply an Exponential Moving Average (EMA) to the ADR values. The EMA places more weight on recent data, giving you a more up-to-date measure of the ADR. The length of the EMA is also adjustable.
Once we have the Exponential ADR, we can generate price targets based on it. Price targets are potential levels where the price may reach in the future. We calculate these targets by adding or subtracting a certain multiple of the Exponential ADR from the current closing price. The multiple is determined by a parameter called the "Target Multiplier." You can adjust this value to control the distance of the price targets from the closing price.
In addition to plotting the Exponential ADR as a histogram on the chart, we create a table that displays the price targets. The table shows three bullish (positive) targets and three bearish (negative) targets. The targets are labeled as "Bull Target" or "Bear Target" followed by a number indicating the target's order. For each target, we display the corresponding price level.
To estimate the potential price levels, we used a formula that takes into account the current closing price and a value called the Exponential Average Daily Range (Exponential ADR). The Exponential ADR represents the average range of price movement over a specific period.
To calculate the price targets, we multiplied the Exponential ADR by a user-defined value called the target multiplier. This target multiplier allows traders to control the distance of the price targets from the current price. The resulting value indicates the desired distance from the current price for each target level.
For bullish targets, we added the calculated value to the current closing price. This suggests potential upward movement in the price. On the other hand, for bearish targets, we subtracted the calculated value from the current closing price. This indicates potential downward movement in the price.
By providing multiple target levels, such as level 1, level 2, and level 3, traders can assess different scenarios and potential price outcomes. These target levels help traders identify possible price levels where they might consider taking profit or adjusting their trading positions.
It's important to note that these price targets are not guaranteed to be reached, but they serve as reference points based on historical price behavior and the Exponential ADR. Traders can use them as part of their overall trading strategy and decision-making process.
Adjust the input parameters according to your desired settings, such as the ADR length, EMA length, target multiplier, table position, and table style. The indicator will then calculate and display the Exponential ADR and price targets on the chart, helping you identify potential levels of support and resistance for your trading decisions.
See inside Candles: Directionality %; Constituent Bars & GapsSee inside candles based on user-input LTF setting: get data on 'Directionality' of your candle; Gaps (total and Sum; UP and DOWN); Number of Bull or Bear constituent candles
//Features:
-DIRECTIONALITY: compare length of the 'zig-zag' random walk of lower time frame constituent candles, to the full height of the current candle. Resulting % I refer to as 'directionality'.
-GAPs: what i refer to as 'gaps' are also known as Volume imbalances: the gap between previous candles close and current candle's open (if there is one).
--Gaps total (up vs down gaps). Number of Up gaps printed above bar in green, down gaps printed below bar in red.
--Gaps Sum (total summed UP gap, total summed down gaps. Sum of Up gaps printed above bar in green, Sum of down gaps printed below bar in red.
-Candles Total: Numer of LTF up vs down candles within current timeframe candle. Number of up candles printed above bar in green, Number of down candles printed below bar in red.
//USAGE:
-Primary purpose in this was the Directionality aspect. Wanted to get a measure of how choppy vs how directional the internals of a candle were. Idea being that a candle with high % directionality (approaching 100) would imply trending conditions; while a candle which was large range and full bodies but had a low % directionality would imply the internals were back-and-forth and => rebalanced, potentially indicating price may not need to retrace back into it and rebalance further. All rather experimental, please treat it as such: have a play around with it.
-Number of gaps, Sums of up and down gaps, ratio of up and down constituent candles also intended to serve a similar purpose as the above.
-Set the input lower timeframe; this must obviously be lower then your current timeframe. You will significant differences in results depending on the ratio your timeframes (chart timeframe vs user-input timeframe).
//User Inputs:
-Lower timeframe input (setting child candle size within current chart parent candle).
-Choose function from the four listed above.
-typical formating options: Bull color/bear color txt for gaps functions.
-display % unit or not.
-display vertical or horizontal text.
-Set min / max directionality thresholds; and color code results.
-Toggle on/off 'hide results outside of threshold' to declutter the chart.
-choose label style.
//NOTES:
-Directionality thresholds can be set manually; Max and Min thresholds can be set to filter out 'non-extreme' readings.
-Note that directionality % can sometimes exceed 100%, in cases where price trends very strongly and gaps up continuously such that sum of constituent candles is less than total range of parent candle.
-Personally i like the idea of seeking bold, large-range, full bodied candles, with a lower than typical directionality %; indicating that a price move is both significant and it's already done it's rebalancing; I would see this as potentially favourable for continuation (obviously depending on context).
---- Showcase of the other functions beyond Directionality percentage ----
Candles Total (bull vs Bear). ES1! Hourly; ltf = 5min: Candles total: LTF up candles and LTF down candles making up the current HTF candle (constituent number of UP candles printed above in green, Down candles printed below in red):
Gaps SUM. SPX hourly, ltf = 5min. Sum of 'UP' gaps within candle printed above in green, sum of 'DOWN' gaps printed below in red:
Gaps TOTAL: SPX hourly, ltf = 1min. Simply the total of 'up' gaps vs 'down' gaps withing our candle; based on the user input constituent candles within:
Volume Divergence IndicatorThe Volume Divergence Indicator is a powerful tool that can help traders identify potential price reversals in the market by analyzing volume data. The indicator has several features, including divergences signals, volume spikes, volume contractions, and volume trend signals.
Unlike most divergence indicators, this one is focused on providing non-repainting alerts. That is why I chose not to use pivot points.
The Volume Divergence Indicator can be used as an overlay or a non-overlay. The overlay mode displays the indicator on top of the price chart, while the non-overlay mode displays the indicator below the price chart.
The indicator has five alerts that can be used to generate alerts:
Bullish Divergence : This alert is generated when prices are making lower lows, but volume is making higher lows. This suggests that the selling pressure is weakening, and a bullish reversal may be imminent.
Bearish Divergence : This alert is generated when prices are making higher highs, but volume is making lower highs. This suggests that the buying pressure is weakening, and a bearish reversal may be imminent.
Volume Spike : This alert is generated when volume spikes above a certain threshold, such as two standard deviations above the moving average. This suggests that there is unusual buying or selling activity in the market, and traders may want to pay attention to the price movements that follow.
Volume Contraction : This alert is generated when volume contracts to a certain level, such as two standard deviations below the moving average. This suggests that there is little buying or selling activity in the market, and traders may want to be cautious until volume picks up again.
Volume Trend : This alert is generated when volume trends above or below the moving average for a certain number of periods, such as five or ten. This suggests that there is a sustained increase or decrease in buying or selling pressure, and traders may want to adjust their trading strategy accordingly.
To customize the indicator settings, users can adjust the following inputs:
Choose overlay mode: select either Overlay or Non-Overlay
Price and volume lookback: set the number of bars to look back for price and volume data
Bull and bear sensitivity: adjust the sensitivity of the bullish and bearish divergences
Volume MA length: set the length of the moving average used to calculate volume spikes and contractions
Sensitivity of spikes: adjust the sensitivity of the volume spikes
Sensitivity of contractions: adjust the sensitivity of the volume contractions
Trend sensitivity: set the number of periods to identify the volume trend
The Volume Divergence Indicator can be a valuable addition to any trader's toolkit. It can help traders identify potential price reversals in the market, as well as unusual buying or selling activity.
I am open to suggestions for further updates or additions.
Joel Greenblatt Magic FormulaJoel Greenblatt Magic Formula. I always wanted to make this.
The Indicator shows 3 values.
ROC,EY,SUM.
ROC= Return On Capital.
EY=Earnings Yield
SUM= Addition of Two.
Formula:
ROC=EBIT / (Net Working Capital + Net Fixed Assets).
EY = EBIT / Enterprise value
Enterprise Value=(Market value of equity + Net Interest-bearing debt)
To implement the strategy, investors start by identifying a universe of stocks, typically large-cap or mid-cap companies that trade on a major stock exchange. Next, they rank the stocks based on their ROC and EY. The companies with the best combination of these two metrics are considered the best investments (based on this ranking).
For example, a stock that ranks 10th on EY and 99th on ROIC gets a value of 109. The two ranks are simply added together and all stocks are ranked on the sum of the two ranks. The stocks with the lowest values are best.
All credits to "The Little Book That Beats The Market" by Joel Greenblatt
The Magic Formula strategy is a stock selection method popularized by Joel Greenblatt’s book The Little Book That Beats the Market.
It involves ranking companies based on Two factors:
A high return on capital and A high Earnings Yield.
The companies with the best combination of these two metrics are considered the best investments. The strategy aims to find undervalued companies with strong financials that have the potential for high returns over the long term.
Momentum-Adjusted Volatility Ratio (MAVR)The Momentum-Adjusted Volatility Ratio (MAVR) indicator is designed to help you understand the strength of price movements relative to the market's volatility. It combines the concepts of rate of change (ROC) and average true range (ATR) and then calculates their ratio, which is then smoothed using an exponential moving average (EMA). Here's a general guide on how to use the MAVR indicator:
Identify the trend: Look for the overall direction of the EMA of the MAVR. When the EMA is above the zero line, it indicates that the momentum is positive and the trend is generally bullish. Conversely, when the EMA is below the zero line, it indicates that the momentum is negative, and the trend is generally bearish.
Assess momentum strength: Pay attention to the distance between the EMA of the MAVR and the zero line. A larger distance indicates a stronger momentum, while a smaller distance suggests weaker momentum. If the EMA of the MAVR moves further away from the zero line, it indicates that the price movement is becoming more robust relative to the market's volatility.
Look for potential entry and exit signals: When the EMA of the MAVR crosses the zero line, it could provide a potential trading signal. For instance, a cross from below to above the zero line may indicate a potential buying opportunity, while a cross from above to below the zero line may signal a potential selling opportunity. Keep in mind that the MAVR indicator should not be used in isolation, and it's essential to combine it with other technical analysis tools and risk management techniques.
Monitor for divergences: Sometimes, the price and the EMA of the MAVR can show divergences. For example, if the price makes a higher high while the EMA of the MAVR makes a lower high, it could signal a bearish divergence, suggesting a potential trend reversal. Similarly, if the price makes a lower low while the EMA of the MAVR makes a higher low, it could indicate a bullish divergence, suggesting a possible trend reversal.
Remember that no indicator is perfect, and the MAVR should be used in conjunction with other technical analysis tools and a solid trading strategy to increase the chances of success. Always use proper risk management techniques to protect your capital.
Put to Call Ratio CorrelationHello!
Excited to share this with the community!
This is actually a very simple indicator but actually usurpingly helpful, especially for those who trade indices such as SPX, IWM, QQQ, etc.
Before I get into the indicator itself, let me explain to you its development.
I have been interested in the use of option data to detect sentiment and potential reversals in the market. However, I found option data on its own is full of noise. Its very difficult if not impossible for a trader to make their own subjective assessment about how option data is reflecting market sentiment.
Generally speaking, put to call ratios generally range between 0.8 to 1.1 on average. Unless there is a dramatic pump in calls or puts causing an aggressive spike up to over this range, or fall below this range, its really difficult to make the subjective assessment about what is happening.
So what I thought about trying to do was, instead of looking directly at put to call ratio, why not see what happens when you perform a correlation analysis of the PTC ratio to the underlying stock.
So I tried this in pinescript, pulling for Tradingview's ticker PCC (Total Equity Put to Call Ratio) and using the ta.correlation function against whichever ticker I was looking at.
I played around with this idea a bit, pulled the data into excel and from this I found something interesting. When there is a very significant negative or positive correlation between PTC ratio and price movement, we see a reversal impending. In fact, a significant negative or positive correlation (defined as a R value of 0.8 or higher or -0.8 or lower) corresponded to a stock reversal about 92% of the time when data was pulled on a 5 minute timeframe on SPY.
But wait, what is a correlation?
If you are not already familiar, a correlation is simply a statistical relationship. It is defined with a Pearson R correlation value which ranges from 0 (no correlation) to 1 (significant positive correlation) and 0 to -1 (significant negative correlation).
So what does positive vs negative mean?
A significant positive correlation means the correlation is moving the same as the underlying. In the case of this indicator, if there is a significant positive correlation could mean the stock price is climbing at the same time as the PTC ratio.
Inversely, it could mean the stock price is falling as well as the PTC ratio.
A significant negative correlation means the correlation is moving in the opposite direction. So in this case, if the stock price is climbing and the PTC ratio is falling proportionately, we would see a significant negative correlation.
So how does this work in real life?
To answer this, let's get into the actual indicator!
In the image above, you will see the arrow pointing to an area of significant POSITIVE correlation.
The indicator will paint the bars on the actual chart purple (customizable of course) to signify this is an area of significant correlation.
So, in the above example this means that the PTC ratio is increase proportionately to the increase in the stock price in the SAME direction (Puts are going up proportionately to the stock price). Thus, we can make the assumption that the underlying sentiment is overwhelmingly BEARISH. Why? Because option trading activity is significantly proportionate to stock movement, meaning that there is consensus among the options being traded and the movement of the market itself.
And in the above example we will see, the stock does indeed end up selling:
In this case, IWM fell roughly 1 point from where there was bearish consensus in the market.
Let's use this same trading day and same example to show the inverse:
You will see a little bit later, a significant NEGATIVE correlation developed.
In this case identified, the stock wise RISING and the PTC ratio was FALLING.
This means that Puts were not being bought up as much as calls and the sentiment had shifted to bullish .
And from that point, IWM ended up going up an additional 0.75 points from where there was a significant INVERSE correlation.
So you can see that it is helpful for identifying reversals. But what is also can be used for is identifying areas of LOW conviction. Meaning, areas where there really is no relationship between option activity and stock movement. Let's take spy on the 1 hour timeframe for this example:
You can see in the above example there really is no consensus in the option trading activity with the overarching sentiment. The price action is choppy and so too is option trading activity. Option traders are not pushing too far in one direction or the other. We can also see the lack of conviction in the option trading activity by looking at the correlation SMA (the white line).
When a ticker is experiencing volatile and good movement up and down, the SMA will generally trade to the top of the correlation range (roughly + 1.0) and then make a move down to the bottom (roughly - 1.0), see the example below:
When the SMA is not moving much and accumulating around the centerline, it generally means a lot of indecision.
Additional Indicator Information:
As I have said, the indicator is very simple. It pulls the data from the ticker PCC and runs a correlation assessment against whichever ticker you are on.
PCC pulls averaged data from all equities within the market and is not limited to a single equity. As such, its helpful to use this with indices such as SPY, IWM and QQQ, but I have had success with using it on individual tickers such as NVDA and AMD.
The correlation length is defaulted to 14. You can modify it if you wish, but I do recommend leaving it at this as the default and the testing I have done with this have all been on the 14 correlation length.
You can chose to smooth the SMA over whichever length of period you wish as well.
When the indicator is approaching a significant negative or positive relationship, you will see the indicator flash red in the upper or lower band to signify the relationship. As well, the chart will change the bar colour to purple:
Everything else is pretty straight forward.
Let me know your questions/comments or suggestions around the indicator and its applications.
As always, no indicator is meant to provide a single, reliable strategy to your trading regimen and no indicator or group of indicators should be relied on solely. Be sure to do your own analysis and assessments of the stock prior to taking any trades.
Safe trades everyone!
RSI and Stochastic Probability Based Price Target IndicatorHello,
Releasing this beta indicator. It is somewhat experimental but I have had some good success with it so I figured I would share it!
What is it?
This is an indicator that combines RSI and Stochastics with probability levels.
How it works?
This works by applying a regression based analysis on both Stochastics and RSI to attempt to predict a likely close price of the stock.
It also assess the normal distribution range the stock is trading in. With this information it does the following:
2 lines are plotted:
Yellow line: This is the stochastic line. This represents the smoothed version of the stochastic price prediction of the most likely close price.
White Line: This is the RSI line. It represents the smoothed version of the RSI price prediction of the most likely close price.
When the Yellow Line (Stochastic Line) crosses over the White Line (the RSI line), this is a bearish indication. It will signal a bearish cross (red arrow) to signal that some selling or pullback may follow.
IF this bearish cross happens while the stock is trading in a low probability upper zone (anything 13% or less), it will trigger a label to print with a pullback price. The pullback price is the "regression to the mean" assumption price. Its the current mean at the time of the bearish cross.
The inverse is true if it is a bullish cross. If the stock has a bullish cross and is trading in a low probability bearish range, it will print the price target for a regression back to the upward mean.
Additional information:
The indicator also provides a data table. This data table provides you with the current probability range (i.e. whether the stock is trading in the 68% probability zone or the outer 13, 2.1 or 0.1 probability zones), as well as the overall probability of a move up or down.
It also provides the next bull and bear targets. These are calculated based on the next probability zone located immediately above and below the current trading zone of the stock.
Smoothing vs Non-smoothed data:
For those who like to assess RSI and Stochastic for divergences, there is an option in the indicator to un-smooth the stochastic and RSI lines. Doing so looks like this:
Un-smoothing the RSI and stochastic will not affect the analysis or price targets. However it does add some noise to the chart and makes it slightly difficult to check for crosses. But whatever your preference is you can use.
Cross Indicators :
A bearish cross (stochastic crosses above RSI line) is signalled with a red arrow down shape.
A bullish cross (RSI crosses above stochastic line) is signalled with a green arrow up shape.
Labels vs Arrows:
The arrows are lax in their signalling. They will signal at any cross. Thus you are inclined to get false signals.
The labels are programmed to only trigger on high probability setups.
Please keep this in mind when using the indicator!
Warning and disclaimer:
As with all indicators, no indicator is 100% perfect.
This will not replace the need for solid analysis, risk management and planning.
This is also kind of beta in its approach. As such, there are no real rules on how it should be or can be applied rigorously. Thus, its important to exercise caution and not rely on this alone. Do your due diligence before using or applying this indicator to your trading regimen.
As it is kind of different, I am interested in hearing your feedback and experience using it. Let me know your feedback, experiences and suggestions below.
Also, because it does have a lot of moving parts, I have done a tutorial video on its use linked below:
Thanks for checking it out, safe trades everyone and take care!
