Body Percentage of Range (Colored)Short Description:
This indicator measures the dominance of the candle's body relative to its total range (High - Low), providing a visual gauge of intra-candle strength versus indecision. Columns are colored based on whether the body constitutes more or less than a defined percentage (default 50%) of the candle's total height.
Detailed Description:
What it Does:
The "Body Percentage of Range" indicator calculates, for each candle, what percentage of the total price range (High minus Low) is occupied by the candle's body (absolute difference between Open and Close).
A value of 100% means the candle has no wicks (a Marubozu), indicating strong conviction during that period.
A value of 0% means the candle has no body (a Doji), indicating perfect indecision.
Values in between show the relative balance between the directional move (body) and the price exploration/rejection (wicks).
How to Interpret:
The indicator plots this percentage as columns:
Column Height: Represents the percentage of the body relative to the total range. Higher columns indicate a larger body dominance.
Column Color:
Green Columns: Appear when the body percentage is above the user-defined threshold (default 50%). This suggests that the directional move within the candle was stronger than the indecision (wicks). Often seen during trending moves or strong momentum candles.
Red Columns: Appear when the body percentage is at or below the user-defined threshold (default 50%). This suggests that wicks dominate the candle (body is 50% or less of the range), indicating significant indecision, struggle between buyers and sellers, or potential reversals. These are common in choppy, consolidating, or reversal market conditions.
Orange Line (Optional MA): A Simple Moving Average (SMA) of the body percentages is plotted to help smooth the readings and identify broader periods where candle structure indicates more trending (high MA) vs. ranging/indecisive (low MA) characteristics.
Potential Use Cases:
Identifying Choppy vs. Trending Markets: Sustained periods of low, predominantly red columns (and often a low/declining MA) can signal a choppy, range-bound market where trend-following strategies might underperform. Conversely, periods with frequent high, green columns suggest a more trending environment.
Confirming Breakouts/Momentum: High green columns appearing alongside increased volume during a breakout can add conviction to the move's strength.
Spotting Potential Exhaustion/Reversals: A very tall green column after a strong trend, followed immediately by a low red column (like a Doji or Spinning Top pattern appearing on the price chart), might signal potential exhaustion or a pending reversal, indicating indecision has suddenly entered the market.
Filtering Entries: Traders might avoid taking entries (especially trend-following ones) when the indicator shows a consistent pattern of low red columns, suggesting high market indecision.
Settings:
Color Threshold %: Allows you to set the percentage level above which columns turn green (default is 50%).
Smoothing MA Length: Adjusts the lookback period for the Simple Moving Average.
Disclaimer:
This indicator is a tool for technical analysis and should be used in conjunction with other methods (like price action, volume analysis, other indicators) and robust risk management. It does not provide direct buy/sell signals and past performance is not indicative of future results.
Cerca negli script per "range"
BBr1 Candle Range Volitility Gap IndicatorModified Candle Range Volatility Gap Indicator
1. Useful to analyze bars body and wicks and volatility of security.
2. Added a Percentage Option - easier to analyze across different securities.
2. Added a Standard Deviation ("1 std dev= 68.2%, 2 std dev=95.4%, 3 std dev=99.7%, etc") based upon user defined lookback period.
3. Added the ability to include Gaps in Analysis. (Gaps are when the prior closing cost does not equal opening price)
4. Possible Uses setting up stop losses, trailing entries/exits (inside range or outside range).
5. Use it with other indicators in determining if to make an entry or close entry.
Reposted Original Description by © ka66 Kamal Advani
Visually shows the Body Range (open to close) and Candle Range (high to low).
Semi-transparent overlapping area is the full Candle Range, and fully-opaque smaller area is the Body Range. For aesthetics and visual consistency, Candle Range follows the direction of the Body Range, even though technically it's always positive (high - low).
The different plots for each range type also means the UI will allow deselecting one or the other as needed. For example, some strategies may care only about the Body Range, rather than the entire Candle Range, so the latter can be hidden to reduce noise.
Threshold horizontal lines are plotted, so the trader can modify these high and low levels as needed through the user interface. These need to be configured to match the instrument's price range levels for the timeframe. The defaults are pretty arbitrary for +/- 0.0080 (80 pips in a 4-decimal place forex pair). Where a range reaches or exceeds a threshold, it's visually marked as well with a shape at the Body or Candle peak, to assist with quicker visual potential setup scanning, for example, to anticipate a following reversal or continuation.
Dynamic 50% Indicator of the selected range!This is a indicator which shows you the 50% level of the selected timeframe range. This is a good tool because price tends to bounce of of 50% levels.
Introducing the 50% Range Level Indicator, designed for traders who seek accuracy and strategic insights in their market analysis. This tool calculates and visually displays the midpoint (50% level) of any selected price range, helping you identify key equilibrium zones where price action often reacts.
Why Use This Indicator?
Key Market Equilibrium – The 50% level is a crucial reference point where price often consolidates, reverses, or gathers momentum.
Custom Range Selection – Simply select your desired price range, and the indicator will dynamically plot the midpoint.
Enhance Your Trading Strategy – Use it for support & resistance confirmation, retracement analysis, or confluence with other indicators.
Works on All Timeframes & Assets – Suitable for stocks, forex, crypto, and indices.
Gain an Edge in the Market
Whether you’re a day trader, swing trader, or long-term investor, the 50% Range Level Indicator can enhance your technical analysis and decision-making.
Dynamic Range Finder [The_lurker]هو أداة تهدف إلى تحديد نطاق السعر الديناميكي بناءً على التقلبات ومتوسط الأسعار . حيث يتم التعرف على مناطق التوحيد السعري (Consolidation) ويعطي إشارات شراء وبيع عند اختراق أو كسر هذا النطاق .
// يفضل استخدام المؤشر على اطار 4 ساعات واكثر //
مميزات المؤشر :
1- اكتشاف النطاق السعري الديناميكي
- يقوم المؤشر بحساب متوسط السعر خلال فترة محددة ومقارنة الإغلاقات الحديثة بمدى تقلب الأسعار (ATR) لمعرفة ما إذا كان السعر يتحرك داخل نطاق معين.
2- تحديد الاختراقات Breakout Signals
- عند اختراق السعر الحد العلوي للنطاق، يظهر المؤشر إشارة شراء (BUY).
- عند كسر السعر الحد السفلي للنطاق، يظهر المؤشر إشارة بيع (SELL).
3- دعم أنماط متعددة للمتوسطات المتحركة
- يسمح للمستخدمين باختيار نوع المتوسط المتحرك (SMA، EMA، WMA) المستخدم في حساب متوسط السعر.
4- إعدادات مخصصة للفلترة بحجم التداول (اختياري)
- فلترة حجم التداول هي ميزة اختيارية في المؤشر تسمح بتصفية إشارات الشراء والبيع بناءً على قوة الحجم المتداول مما يعزز دقة الإشارات عن طريق التأكد من أن الاختراقات السعرية مدعومة بحجم تداول قوي
5- تصميم مرن مع تخصيص للألوان والأنماط
- يمكن للمستخدمين تغيير ألوان النطاق وإشارات البيع والشراء حسب رغبتهم.
6- تنبيهات آلية عند حدوث كسر أو اختراق
- يتضمن تنبيهات (Alerts) عند حدوث إشارة بيع أو شراء.
كيف يعمل المؤشر؟
* يتم حساب متوسط السعر خلال الفترة المحددة (rangePeriod).
* يتم حساب التقلب السعري (ATR) ومضاعفته بمعامل النطاق (rangeMultiplier).
* يتم رسم مستطيل يعبر عن النطاق السعري بين (متوسط السعر ± التقلب).
* إذا تجاوز السعر الحد العلوي → إشارة شراء (BUY).
* إذا كسر السعر الحد السفلي → إشارة بيع (SELL).
* يمكن تصفية الإشارات باستخدام حجم التداول (اختياري).
1.0 → الحجم الحالي يجب أن يكون على الأقل مساويًا للمتوسط.
1.2 → الحجم الحالي يجب أن يكون أعلى من المتوسط بنسبة 20%.
1.5 → الحجم الحالي يجب أن يكون أعلى من المتوسط بنسبة 50%.
تنويه:
المؤشر هو أداة مساعدة فقط ويجب استخدامه مع التحليل الفني والأساسي لتحقيق أفضل النتائج.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView.
It is a tool that aims to determine the dynamic price range based on fluctuations and average prices. Consolidation areas are identified and buy and sell signals are given when this range is breached or broken.
// It is preferable to use the indicator on a 4-hour frame or more //
Features of the indicator:
1- Detecting the dynamic price range
- The indicator calculates the average price over a specific period and compares recent closings with the price volatility range (ATR) to see if the price is moving within a specific range.
2- Identifying Breakout Signals
- When the price breaks the upper limit of the range, the indicator shows a buy signal (BUY).
- When the price breaks the lower limit of the range, the indicator shows a sell signal (SELL).
3- Support for multiple moving average patterns
- Allows users to choose the type of moving average (SMA, EMA, WMA) used to calculate the average price.
4- Custom settings for filtering by trading volume (optional)
- Trading volume filtering is an optional feature in the indicator that allows filtering buy and sell signals based on the strength of the trading volume, which enhances the accuracy of the signals by ensuring that price breakouts are supported by strong trading volume
5- Flexible design with customization of colors and patterns
- Users can change the colors of the range and buy and sell signals as they wish.
6- Automatic alerts when a breakout or breakout occurs
- Includes alerts when a buy or sell signal occurs.
How does the indicator work?
* The average price is calculated over the specified period (rangePeriod).
* The price volatility (ATR) is calculated and multiplied by the range factor (rangeMultiplier).
* A rectangle is drawn that represents the price range between (average price ± volatility).
* If the price exceeds the upper bound → a buy signal (BUY).
* If the price breaks the lower bound → a sell signal (SELL).
* Signals can be filtered using trading volume (optional).
1.0 → Current volume should be at least equal to the average.
1.2 → Current volume should be 20% above the average.
1.5 → Current volume should be 50% above the average.
Disclaimer:
The indicator is an auxiliary tool only and should be used in conjunction with technical and fundamental analysis to achieve the best results.
Disclaimer
The information and posts are not intended to be, or constitute, any financial, investment, trading or other types of advice or recommendations provided or endorsed by TradingView.
CANDLE RANGE THEORY (H1 Only)Hello traders.
This indicator identifies CRT candles
-Each candle is a range.
-Each candle has its own po3.
-Focus on specific times of the day. By recognizing the importance of time and price, we can capture high-quality trades. Together with HTF PD array, Look for 4-hour candles forming at specific times of the day. (1am - 5am - 9am EST)
-After the 1st candle, wait for the 2nd candle to clear the high/low of the 1st candle and then close inside the 1st candle range at a specific time (1-5-9) and look for entries in the LTF
Why choose 1 5 9 hours EST?
### **1. 1:00 AM (EST)**
- **Trading Session:** This is the time between the Tokyo (Asian) session and the Sydney (Australian) session. The Asian market is very active.
- **Characteristics:**
- Liquidity: Moderate, as only the Asian market is active.
- Volatility: Pairs involving JPY (Japanese Yen), AUD (Australian Dollar), and NZD (New Zealand Dollar) tend to have higher volatility.
- Trading Opportunities: Suitable for traders who like to trade trends or news in the Asian region.
- **Note:** Volatility may be lower than the London or New York session.
### **2. 5:00 AM (EST)**
- **Trading Session:** This is the time near the end of the Tokyo session and the London (European) session is about to open.
- **Characteristics:**
- Liquidity: Starts to increase due to the preparation of the European market.
- Volatility: This is the time between two trading sessions, there can be strong fluctuations, especially in major currency pairs such as EUR/USD, GBP/USD.
- Trading opportunities: Suitable for breakout trading strategies when liquidity increases.
- **Note:** The overlap between Tokyo and London can cause sudden fluctuations.
### **3. 9:00 AM (EST)**
- **Trading sessions:** This time is within the London session and near the beginning of the New York session.
- **Characteristics:**
- Liquidity: Very high, as this is the period between the two largest sessions – London and New York.
- Volatility: Extremely strong, especially for major currency pairs such as EUR/USD, GBP/USD, USD/JPY.
- Trading opportunities: Suitable for both news trading and trend trading, as this is the time when a lot of economic data is released (usually from the US or the European region).
- **Note:** High volatility can bring big profits, but also comes with high risks.
### **Summary of effects:**
- **1 AM (EST):** Moderate volatility, focusing on Asian currency pairs.
- **5 AM (EST):** Increased liquidity and volatility, suitable for breakout trading.
- **9 AM (EST):** High volatility and high liquidity, the best time for Forex trading.
==> How to trade, when the high/low of CRT is swept, move to LTF to wait for confirmation to enter the order
Only sell at high level and buy at discount price.
Find CE at specific important time. Trading CRT with HTF direction has better win rate.
The more inside bars, the higher the probability.
Place a partial and Move breakeven at 50% range.
Do a backtest and post your chart.
Average Candle RangeThis indicator calculates and displays the average trading range of candles over a specified period, helping traders identify volatility patterns and potential trading opportunities.
Features:
- Customizable lookback period (1-500 bars)
- Clean visual display in a top-right table overlay
- High-precision calculation showing 10 decimal places
- Real-time updates with each new bar
How it Works:
The indicator calculates the range of each candle (High - Low) and then computes the Simple Moving Average (SMA) of these ranges over your specified lookback period. The result is displayed in an easy-to-read table overlay.
Use Cases:
- Volatility Analysis: Monitor market volatility trends
- Position Sizing: Help determine position sizes based on average price movements
- Trading Strategy Development: Use as a reference for setting stop losses and take profits
- Market Phase Identification: Help identify high vs low volatility market phases
Settings:
- Lookback Period: Default is 140 bars, adjustable from 1 to 500
Note:
The indicator displays values with 10 decimal places for high-precision analysis, particularly useful in markets with small price movements.
ka66: Candle Range MarkThis is a simple trailing stop loss tool using bar ranges, to be used with some discretion and understanding of basic price action.
Given a configurable percentage value, e.g. 25%:
A bullish bar (close > open) will be marked at the lower 25%
A bearish bar (close < open) will be marked at the upper 25%
The idea is to move your stop loss after each completed bar in the direction of the trade, at the configured percentage value.
If you have an inside bar, or something very close to it, or a doji-type bar, don't trail that, because there is no clarity of what the bar means, we can only wait.
The chart shows an example use, with trailing at 10% of the bar, from the initial stop loss after entry, trailing till we get stopped out. Some things to note:
Because this example focuses on a short trade, we ignore the bullish candles, and keep our trailing stop at the last bearish candle.
We ignore doji-esque candles and inside bars, where the body is in the range of the prior candle. Some definitions of inside bars include the wicks as well. I don't have a strong opinion, and this example is just for illustration. Furthermore, the inside bar will likely be the opposite of the swing bars (e.g. bullish bar in a range of bearish bars), so our stop remains unchanged.
One could use this semi-systematic approach in scalping on any timeframe, for example to maximise gains, adjusting the bar percentage as needed.
Volatility FinderVolatility Finder / Daily Range.
This indicator will measure the Average amount of Pips/Points movement of price, over an X amount of time.
This is often referred to as "Forex Volatility" Most pairs have different amounts of volatility. Exotics pairs are considered very volatile, Forex Majors is less volatile.
So this Indicator, will measure the amount of ADR/Average Daily Range.
Average amount of Pips/Points of movement, within a specific period of time, and tell you that.
- In the settings, you can choose how many days you want the indicator to measure from, and it will tell you the average amount of pips, based on the average movement on those days.
The Default setting is set to 90 days/3 months.
IMPORTANT:
To see the number the indicator tells you, you have to RIGHT-click up in the Left-side corner, where you see the Pair you have open on your Chart. And make sure to Enable "INDICATOR VALUES". Then if you However over the Indicator area, where the indicators you have open. You will see the number that the indicator has found. Based on the Settings you have set in the Settings Menu.
* One applicable way to use this information is if you are inside a trade, and price has moved past the Daily Range. It could be less probable it will continue in the same direction when it has Met the Daily Range.
* Another is to use this, to find pairs that you might want to trade. If the Average Price movement over the time you input, is High, you can use this information to help you decide if this pair is to Volatile for you to consider trading, or if it moving to slow for you.
It's very accurate, if you want to compare, you can go to 3rd party websites like
Mataf / mataf.net/en/forex/tools/volatility
Investing.com / investing.com/tools/forex-volatility-calculator
Expected Volatility, Range, and Estimated VolatilityOverview
The Expected Volatility, Expected Range, and Estimated Volatility Indicator helps traders quantify and visualize the expected price movement of a financial instrument based on historical price changes. Unlike traditional historical volatility measures that are annualized, this indicator calculates expected volatility using a proprietary transform model directly from historical price data over a specified period. This provides an immediate, timeframe-specific estimate of expected volatility without annualization, making it more directly applicable to the current trading timeframe.
This indicator should be used with the Mean and Standard Deviation Lines to enhance analysis by combining price distribution and volatility insights.
Inputs
Volatility Period (Bars): Determines the number of bars used to calculate the expected volatility. For accurate visualization, it is recommended to set this period to be the same as the one used in the Mean and Standard Deviation Lines indicator. Adjusting this period can make the indicator more responsive to recent price changes or smooth out short-term fluctuations.
Plot Mode: Choose between "Percent" or "Base Currency" to display the indicator's outputs either as a percentage or in the asset's base currency value.
Outputs
Expected Volatility (Orange Line): Displays the expected volatility calculated using the transform model based on historical price changes over the specified period and serves as a reference for typical market movements and aiding in the identification of high-risk periods or potential breakout opportunities.
Expected Range (Red Line): Represents the expected price movement range based on the expected volatility.
Estimated Volatility (Yellow Line): Provides an alternative volatility measure based on the intraday range (high-low) relative to the previous close, offering additional insights into price fluctuations within each bar.
How to Use
Risk Management
You can use either the Expected Volatility or the Expected Range to set stop-loss and take-profit levels based on your preference. Using the Expected Volatility values will generally result in tighter stop-loss levels, potentially exiting trades earlier, while using the Expected Range may allow for more room to accommodate price fluctuations.
Historical Performance Analysis
Monitor when the Estimated Volatility (yellow line) crosses above the Expected Volatility or Expected Range lines (orange and red lines). Such crossings indicate periods where actual market volatility exceeded expected levels, providing insights into the historical effectiveness of your stop-loss or take-profit strategies.
Combined Analysis with Mean and Standard Deviation Lines
Use this indicator alongside the Mean and Standard Deviation Lines to gain a comprehensive view of both price distribution and volatility. Ensure that the Volatility Period is set to the same value in both indicators for accurate visualization and comparison. This combined approach enhances your ability to identify significant price movements and adjust your trading strategy accordingly.
Trend Analysis
Observe changes in the Expected Volatility values to identify periods of increasing or decreasing market volatility, which may signal potential trend developments or reversals.
Identifying Typical and Extreme Conditions
The Expected Volatility serves as a benchmark for typical market movements, aiding in the identification of high-risk periods or potential breakout opportunities when price action moves beyond this range.
Preference-Based Strategy
Choose between using the Expected Volatility or Expected Range based on your risk tolerance and trading strategy. The Expected Volatility provides a more conservative approach, while the Expected Range allows for greater flexibility in accommodating market fluctuations.
Additional Notes
For accurate visualization, set the Volatility Period to the same value used in the Mean and Standard Deviation Lines indicator. This alignment ensures consistency in your analysis and enhances the reliability of the insights gained from both indicators.
Be mindful that higher volatility periods can present both opportunities and increased risk; appropriate risk management practices are essential.
Important: The Expected Volatility calculated by this indicator is not annualized , unlike traditional historical volatility measures. This makes it directly applicable to the timeframe of your analysis, providing a more immediate estimate of expected price movements.
Daily Range Position Sizer// ENGLISH, GERMAN BELOW
Daily Range Position Sizer
A versatile indicator that helps traders calculate position sizes based on daily high/low levels with flexible session handling.
Features:
- Displays daily high and low levels with broken line style for clear visibility
- Calculates position sizes for both long and short setups based on your defined risk amount
- Flexible session dealing with optional pre-market inclusion
- Real-time position size updates based on current price
- Clearly visible info box showing position sizes
Settings:
- Risk Amount ($): Define your desired risk amount in dollars
- Include Pre-market: Toggle between regular session only (9:30-16:00 ET) or full day including pre-market
- X-Offset: Adjust the horizontal position of the info box
Usage:
1. Set your desired risk amount
2. Choose whether to include pre-market data
3. Monitor daily ranges and corresponding position sizes
4. Use the automatically calculated position sizes for your trades
Note: This indicator is for educational and informational purposes only. Always verify calculations and manage your risk appropriately.
Contributions and feedback are welcome!
// GERMAN
Tageshoch/-Tief & Positionsgröße
Ein vielseitiger Indikator, der Tradern bei der Berechnung von Positionsgrößen auf der Basis von Tageshochs und -tiefs hilft und eine flexible Handhabung der Sitzungen ermöglicht.
Eigenschaften:
- Zeigt tägliche Höchst- und Tiefststände mit gestrichelten Linien für eine klare Sichtbarkeit an
- Berechnet Positionsgrößen für Long- und Short-Setups auf der Grundlage des von Ihnen definierten Risikobetrags
- Flexibles Session-Handling mit optionaler Einbeziehung des vorbörslichen Handels
- Aktualisierung der Positionsgröße in Echtzeit auf Basis des aktuellen Kurses
- Deutlich sichtbare Infobox mit Positionsgrößen
Einstellungen:
- Risikobetrag ($): Definieren Sie Ihren gewünschten Risikobetrag in Dollar
- Vorbörslich einbeziehen: Schalten Sie um zwischen nur regulärer Sitzung (9:30-16:00 ET) oder ganztägig einschließlich Vormarkt
- X-Absatz: Passen Sie die horizontale Position der Infobox an
Verwendung:
1. Legen Sie den gewünschten Risikobetrag fest
2. Wählen Sie, ob vorbörsliche Daten einbezogen werden sollen
3. Überwachen Sie die täglichen Bandbreiten und die entsprechenden Positionsgrößen
4. Verwenden Sie die automatisch berechneten Positionsgrößen für Ihre Trades
Hinweis: Dieser Indikator ist nur für Lehr- und Informationszwecke gedacht. Überprüfen Sie stets die Berechnungen und steuern Sie Ihr Risiko angemessen.
Beiträge und Feedback sind willkommen!
ATR Range Pivot LinesDescription:
This Pine Script calculates and plots pivot lines based on ATR (Average True Range) value and closing price. It uses the previous trading day's ATR value to set static pivot levels for the current trading day. These pivot lines help traders identify potential support and resistance levels based on historical volatility. The script includes two main pivot lines—ATR High and ATR Low —and two midpoint lines between them for additional context. Labels are added to show the exact pivot values, with options to customize label positions.
Intended Use:
The script is designed to help traders forecast potential price ranges for the current trading day based on the previous day’s volatility. By adding and subtracting the previous day's ATR from the prior close, the script identifies key levels where price action may encounter support or resistance. It is useful for setting realistic price targets or entry/exit points. Since the ATR-based pivot lines are static for the entire day, they provide a reliable range for intraday trading strategies.
Disclosure:
This script was generated using AI. It is recommended to review and test the script thoroughly before applying it in live trading scenarios.
Standard Deviation based Upper Lower RangeThis script makes use of historical data for finding the standard deviation on daily returns. Based on the mean and standard deviation, the upper and lower range for the stock is shown upto 2x standard deviation. These bounds can be treated as volatility range for the next n trading sessions. This volatility is based on historical data. Users can change the lookback historical period, and can also set the time period (days) for upcoming trading sessions.
This indicator can be useful in determining stoploss and target levels along with the traditional support/resistance levels. It can also be useful in option trading where one needs to determine a range beyond which it is safe to sell an option.
A range of 1 SD has around 65% to 68% probability that it will not be breached. A range of 2 SD has around 95% probability that it will not be breached.
The indicator is based on Normal distribution theory. In future editions, I envision to also calculate the skewness and kurtosis so that we can determine if a stock is properly following Normal Distribution theory. That may further favor the calculated range.
Tick Range Engulfing Candle Highlighter with Trend ChangeOverview
The "Tick Range Engulfing Candle Highlighter with Trend Change" indicator is designed to identify potential trend reversals by analyzing the size of each candle relative to a customizable tick size. This indicator highlights key moments when the market may shift direction based on an "engulfing" candle pattern, where the current candle's price range is larger than the previous one. By identifying these moments, traders can gain insight into possible trend changes, which could be useful for various trading strategies, including trend-following or reversal-based trading.
Key Concepts
Tick Size:
The indicator uses a user-defined tick size to calculate the price range of each candle. The tick size represents the minimum price movement that the market recognizes, allowing for more precise control over the range calculations.
Engulfing Candle Pattern:
The concept of an "engulfing candle" refers to a scenario where the current candle’s range (high minus low) is larger than the previous candle’s range. This pattern can signal a potential trend reversal, especially when combined with a change in the candle's direction (bullish to bearish or bearish to bullish).
Trend Change Detection:
The indicator specifically looks for situations where a bullish candle is followed by a larger bearish candle (indicating a potential downward trend reversal) or where a bearish candle is followed by a larger bullish candle (indicating a potential upward trend reversal).
The trend change is validated by comparing the tick range of the current and previous candles, ensuring that the current range is larger, which adds significance to the reversal signal.
How the Indicator Works
Input and Calculation:
Users start by setting the tick size through the indicator’s input. The script then calculates the tick range for the current and previous candles by dividing the difference between the high and low prices by the specified tick size.
Candle Direction Analysis:
The indicator assesses whether each candle is bullish (closing price higher than the opening price) or bearish (closing price lower than the opening price).
Engulfing and Trend Reversal Detection:
The script checks for an engulfing pattern combined with a change in the candle's direction:
Bullish to Bearish Change: Detected when a bullish candle is followed by a larger bearish candle.
Bearish to Bullish Change: Detected when a bearish candle is followed by a larger bullish candle.
Visual Cues:
When the conditions for a trend change are met, the indicator plots visual signals on the chart:
A red downward arrow below the candle indicates a potential bearish reversal.
A green upward arrow above the candle indicates a potential bullish reversal.
How to Use This Indicator
Customization:
Adjust the tick size to match the asset’s characteristics or your trading preferences. A smaller tick size will result in more sensitive detection, while a larger tick size will smooth out minor fluctuations.
Trade Confirmation:
This indicator can be used as a confirmation tool for other trend-following or reversal strategies. It’s particularly useful for traders looking to identify early signs of trend reversals.
Strategy Integration:
Consider integrating this indicator with other technical analysis tools such as moving averages, RSI, or support/resistance levels to build a more comprehensive trading strategy.
Underlying Concepts
The core idea behind this indicator is the principle of engulfing patterns combined with tick size analysis. By focusing on candles that not only change direction but also show a significant increase in range, the indicator highlights moments when the market may be experiencing a substantial shift in momentum. This method can help traders filter out noise and focus on more meaningful potential reversals.
In summary, the "Tick Range Engulfing Candle Highlighter with Trend Change" indicator provides traders with a tool to spot potential trend changes based on price action and candle analysis. It's flexible, allowing for customization, and can be a valuable addition to various trading strategies.
[Opening Range pre-Market Breakout Screener] with Alerts (TSO)=
with Alerts (TSO)
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This Opening Range/pre-Market breakout screener lets you monitor up to 10 symbols/instruments simultaneously (9 plus the one currently displayed on the chart). It provides alerts when the price breaks out of the pre-market range, offering two options: 1) Immediate alerts as the breakout happens with the live bar, and 2) Alerts after the bar closes. The screener also labels breakouts on the chart and offers live status updates in the stats table. The Opening Range/pre-Market area is fully customizable, with a default setting optimized for US stock market pre-market hours (07:00 am-09:30 am ET). Additionally, you can set the Active Trading Session Schedule to define specific intraday periods when breakouts and alerts will be displayed.
What sets this indicator apart from other ORB indicators is its integrated screener for multiple symbols and an IMMEDIATE alert/status feature that notifies you the moment the price breaks through the pre-market range. Moreover, it can be used worldwide as it includes an active trading session schedule for every trading region globally!
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Explanation of all the Features/Inputs/Settings
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>>> This is where the desired symbols can be turned on/checked to be screened for ORB breakout - the selected/checked symbols at creation of a 'Any alert() function call' alert will alert on any of the selected/checked symbols.
>>> Active Trading Session Hours, this is where Active Trading Session Hours can be setup during which breakouts will be shown on chart/table and alerts will trigger. Every trading region is included, by default it's set to a regular US trading session: 09:30am0-4:00pm ET.
>>> ORB Breakout Config is where the desired breakout approaches can be shown/alert turn on. Closed Bar Breakout: means that a breakout is considered as occurred only when a candle bar is fully closed. Live Breakouts: a breakout occurs immediately at price breakout thru pre-Market range, while candle bar is still open.
>>> Final section is simply the stats table location.
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Adding Alerts in TradngView
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1) Consolidation alert(s) for the selected/checked symbols
- Select/check/find the desired symbols/instruments (when selecting symbols, make sure - they are from correct BROKER/SOURCE as pricing may differ between different brokers, causing confusion (under 1 broker/source, the symbol will be consolidated, under another it will not...))
-Right-click anywhere on any TradingView chart
-Click on Add alert
-Condition: Select this indicator by it’s name
-Immediately below, change it to "alert() function calls only"
-Expiration: Open-ended (that may require higher tier TradingView account, otherwise the alert will need to be occasionally re-triggered)
-Alert name: Anything
-Hit “Create”
-Note: If you change ANY Settings within the indicator – you must DELETE the current alert and create a new one per steps above, otherwise it will continue triggering alerts per old Settings!
* Once alert triggers, don't get confused, as it will show "Alert on SYMBOL", the SYMBOL will be where you created the major alert for all the symbols within the screener list! Within the alert, on the bottom, it will say: "SPY - LONG Breakout - Live" - this is where the correct symbol is for which the alert for consolidation was triggered!
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If you have any questions or issues with the indicator, please message me directly via TradingView.
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Good Luck! (NOTE: Trading is very risky, past performance is not necessarily indicative of future results, so please trade responsibly!)
Asian Range IndicatorIndicator Name:
Asian Range Indicator
Description:
This TradingView indicator is designed to accurately detect the price range during the Asian session, based on our trading strategy. This range is crucial for planning trades in the European and American sessions. Using advanced algorithms, the indicator automatically identifies and plots the highs and lows within the Asian session period, highlighting them on the chart with shaded areas for clear visualization. This helps traders anticipate breakouts and set more precise entry and exit levels.
How to Use the Indicator:
Add the indicator to your TradingView chart.
Observe the shaded areas representing the Asian range.
Use these levels to plan your trades during the European and American sessions.
Combine with other technical indicators to confirm your trading decisions.
Chart:
The chart published with this script is clean and easy to understand, clearly showing the Asian range highlighted with shaded areas. No other scripts are included, ensuring the indicator's output is easily identifiable. The shaded areas contribute to the visual understanding of the Asian range, helping traders effectively use the script.
Opening Range Breakout [UkutaLabs]█ OVERVIEW
The Opening Range Breakout is a powerful trading tool that indicates a strong range based on the high and low of the first fifteen or thirty minutes after market open. This range serves as a potential area of Support or Resistance that traders should be aware of during their trading. Because of this, the Opening Range Breakout is a versatile trading tool that can be included in a wide variety of trading strategies.
The aim of this script is to simplify the trading experience of users by automatically identifying and displaying price levels that they should be aware of.
█ USAGE
When the New York Market opens each day, the script will automatically identify and label the opening range in real time. The user can control whether the script measures the first 15 or 30 minutes of each trading day to fit each trader’s trading style.
Because there tends to be a spike in volume during this period, the range that is identified can serve as a powerful indication of overall market strength. Once the price breaks out of this range, it then can be used as an area of support or resistance depending on the direction of the breakout.
█ SETTINGS
Configuration
• Show Labels: Determines whether labels are drawn within the range.
• Display Mode: Determines the number of days the script should load.
Range Settings
• 15 Minute: Determines whether or not the 15 minute range is drawn.
• 15 Minute Color: Determines the color of the 15 minute range and labels.
• 30 Minute: Determines whether or not the 30 minute range is drawn.
• 30 Minute Color: Determines the color of the 30 minute range and labels.
10 Minute Futures Session Open RangeInspired by SamRecio's 30sec OR script.
The 10 minute Opening Range (OR) dynamically identifies and visualizes the opening range of a trading session within the first 10 minutes after the market opens at 9:30 AM EST, concluding at 4:00 PM EST, reflecting the typical trading hours for U.S. stock exchanges. This indicator is particularly useful for strategies that rely on the initial market momentum and direction established during the early moments of the trading session.
Upon activation, the indicator calculates the highest (orHigh) and lowest (orLow) price levels reached during the first 10 minutes of the trading session, marking these levels with green (for the high) and red (for the low) lines directly on the chart overlay. Additionally, it computes and plots a midpoint (midPoint) between these high and low levels, displayed as a blue line, offering a visual reference for the median of the opening range.
The calculations are reset daily to ensure the indicator accurately reflects the opening range for each new trading session. By doing so, it avoids carrying over data from previous days, maintaining relevance and precision for day traders and those utilizing short-term trading strategies. The indicator also incorporates timezone adjustments to align with the America/New_York timezone, ensuring that the opening range is accurately captured regardless of the user's local timezone.
This tool is invaluable for traders looking to capitalize on breakout or reversion strategies around the opening range, providing clear visual cues for significant price levels established at the start of the trading session. By focusing on the first 10 minutes of trading, it caters to a specific segment of the market that believes the initial movements can set the tone for the rest of the day's trading activity.
Three Candle Rolling Pivot Range**Strategy Description: Three Previous Candle Rolling Pivot Range**
**Introduction:**
This trading strategy is based on the concept of the rolling pivot range calculated from the high, low, and close prices of the three previous candles. The rolling pivot range serves as a dynamic support and resistance level, and this strategy aims to capture potential trading opportunities based on the price relationship with this range.
**Strategy Components:**
**1. Rolling Pivot Range Calculation:**
- **Rolling Pivot:** Calculate the rolling pivot by averaging the high, low, and close prices of the three previous candles.
- **Second Number:** Find the midpoint between the high and low of the three previous candles.
- **Pivot Differential:** Measure the difference between the rolling pivot and the second number.
- **Rolling Pivot Range High:** Set as rolling pivot + pivot differential.
- **Rolling Pivot Range Low:** Set as rolling pivot - pivot differential.
**2. Entry Rules:**
- **Long Entry:**
- Initiate a long entry when the current close is above both the rolling pivot range high and the rolling pivot.
- Continue the long entry as long as both the rolling pivot range high and low are higher than the corresponding values of the previous candle.
- **Short Entry:**
- Start a short entry when the current close is below both the rolling pivot range high and the rolling pivot.
- Continue the short entry as long as both the rolling pivot range high and low are lower than the corresponding values of the previous candle.
**Visualization:**
- **Plotting:**
- The rolling pivot range high, rolling pivot, and rolling pivot range low are plotted on the chart for visual reference.
- Long entry points are marked with a green triangle below the corresponding candle.
- Short entry points are marked with a red triangle above the corresponding candle.
**Conclusion:**
This strategy leverages the rolling pivot range to identify potential reversal points in the market. By considering the relative position of the current price compared to the dynamic support and resistance levels, the strategy aims to capture favorable trading opportunities. However, like all trading strategies, it should be used cautiously and backtested thoroughly on historical data to ensure its effectiveness before implementation in a live trading environment. Additionally, risk management techniques should always be applied to safeguard trading capital.
[AbaTherium] Internal ranges analysis - Beta Internal Ranges Analysis - IRA - Beta
Introduction:
Internal Ranges Analysis - IRA - Beta is a cutting-edge technical analysis tool designed to enhance your trading prowess. This beta version introduces three vital concepts: "Liquidity Sweep" , "Single Candle Mitigation Entry" , and "Single Candle Order Block Entry" . These concepts provide traders with a nuanced perspective on price action dynamics and opportunities for entry into the market.
Chapter 1: Understanding Liquidity Sweep
1.1 Liquidity Sweep Defined
- Liquidity Sweep occurs when the market price reacts after taking out a historical pivot. This phenomenon often signifies a swift move designed to clear resting buy or sell orders in the market. IRA - Beta excels at identifying and visualizing Liquidity Sweep events, allowing traders to capitalize on them.
Chapter 2: Single Candle Mitigation Entry
2.1 Introduction to Single Candle Mitigation Entry
- Single Candle Mitigation (SCM) Entry is a strategic approach employed when price action takes out the high or low of the preceding candle. This entry method is designed to capitalize on potential reversals or shifts in market sentiment. IRA - Beta offers effective tools to identify and act upon Single Candle Mitigation opportunities.
2.2 Single Candle Order Block Entry
- Traders can also explore the concept of Single Candle Order Blocks, where specific price levels act as potential entry points. This feature is integrated into IRA - Beta, providing traders with additional options for making well-informed entry decisions.
Chapter 3: Real-World Examples
Trading with internal structures needs to be done carefully with multiple confluences, like current market bias or LTF confirmations.
Here is an example on using liquidities concept and break of SCOB as confluences to enter a trade:
Conclusion:
Internal Ranges Analysis - IRA - Beta is a valuable asset for traders seeking to gain an edge in today's dynamic markets. By focusing on concepts like Liquidity Sweep, Single Candle Mitigation Entry , and Single Candle Order Block Entry , this tool equips traders with the knowledge and tools needed to make informed entry decisions. Whether you're a seasoned trader or just starting your journey, IRA - Bet a can help you navigate through the complexities of price action and make more informed trading choices.
This document serves as a comprehensive guide to Internal Ranges Analysis - IRA - Beta , highlighting its significance in understanding market dynamics and leveraging key trading concepts. Incorporating these principles into your trading strategies can lead to improved decision-making and potentially more profitable outcomes.
blackOrb ZoneBuying near the bottom and selling near the peak can be a challenging trading approach. However, it all begins with the ability to identify these essential zones. This indicator is targeting support and resistance with heightened accuracy. It utilizes features like:
I. Multi-Level Weighting for Enhanced Support and Resistance Zones
II. Vertical Zone Range Adjustment for Enhanced Price Level Identification
III. High-Time Frame for Solid Macro Validation
IV. Projection Function for Informed Trade Management
V. Automatic Level Identification for Pinpointing Potential Order Positions
VI. Customizable Pivot Analysis for Accurate Zone Identifications
Technical Methodology
I. Multi-Level Weighting for Enhanced Support and Resistance Zones
Support and resistance are more accurately represented as wider zones rather than singular lines. In practical application, relevant support or resistance levels often converge around a central mean-weighted level within a zone.
This indicator visually represents these zones by calculating values from open, high, low, and close prices, accentuating them through varying opacities. Higher opacity within an area indicates a higher likelihood of it serving as a relevant support or resistance level.
Multiple mean options within the settings menu encompass weighted average calculations that utilize different combinations of price data within the relevant pivot analysis phase. This versatility allows users to target pertinent levels within a zone. For instance, when employing hlcc4 price data, the calculation is as follows:
mean_price_hlcc4 = (high + low + close + close) / 4
II. Vertical Zone Range Adjustment for Enhanced Price Level Identification
This feature enables users to precisely adjust the vertical zone range for price references within potential support or resistance phases. For instance, decreasing the reference setting results in a more granular validation within a narrower range. This creates vertically thinner zones with increased price level precision, although it may offer a less comprehensive perspective.
III. High-Time Frame for Solid Macro Validation
The indicator enhances pivot points, potentially in conjunction with high-time frame validation, to identify significant price zones with heightened confirmation strength driven by volume. Higher time frames provide more extensive volume verification, for instance, comparing the 4-hour to the 24-hour timeframe (a multiple of six).
This feature involves cross-referencing data from higher time frames, heightening the reliability of support and resistance zones and providing valuable insights into potential trading interest levels.
Technically, the indicator applies the identical rigorous analysis to both lower and higher time frames. This approach facilitates a more comprehensive perspective and aids in the clearer identification of overarching macro support and resistance levels, even when focusing on smaller timeframes. For instance, a potential support zone identified on the daily time frame can gain higher confidence when confirmed on a weekly chart.
IV. Projection Function for Informed Trade Management
The projection function visually extends the most recent analysis of support and resistance zones forward, in accordance with the user's configured parameters.
By displaying precise price values at these visualized support and resistance levels, this indicator offers valuable assistance in decision-making, particularly when planning real-time orders or when engaged in an active trade management phase (e.g., for the purpose of adjusting stop-loss levels post-entry).
Note: This function is based on historical data. It may not account for unforeseen market events. It's important to complement this feature with ongoing analysis of real-time market data.
V. Automatic Level Identification for Pinpointing Potential Order Positions
It is empirically observed that traders frequently position orders at price levels that conform to quantized values due to cognitive biases.*
Consequently, blackOrb Zone not only facilitates the identification of pertinent levels within a weighted zone but also features an "auto" functionality designed to analyze price dynamics in the proximity of these relevant levels. The objective is to identify discrete values in close vicinity, which exhibit a higher likelihood of serving as authentic support and resistance zones.
This processing approach assists traders in precisely locating the central mean-weighted level within a given zone and identifies proximate quantized levels.
Note: This method becomes especially relevant during phases of price retesting, where market participants converge, contributing to a further refinement of levels, indicative of an asymmetric balance between supply and demand.
*Source: Prof. Mitchell, Jason. "Clustering and Psychological Barriers: The Importance of Numbers." Journal of Futures Markets, vol. 21, no. 5, 2001, pp. 395-428.
VI. Customizable Pivot Analysis for Accurate Zone Identifications
The indicator employs pivot points to pinpoint key price zones where price dynamics could encounter buying or selling pressure.
Essential components of this method involve comparing time units both to the left and right within a designated phase of support or resistance, effectively defining the search range for pivotal points.
For instance, in the analysis below, the search is for the highest price point that hasn't been surpassed within a certain resistance zone in the last 10 time units to the left and 10 time units to the right:
ta.pivothigh(10, 10)
Potential Trade Management Applications of blackOrb Zone
- Reversal Trading : Robust support zones with bullish signals can indicate opportune moments for buying or long position entries, whereas confirmed resistance zones can be identified for selling or short position entries.
- Breakout Trading : Anticipating price surges as price breach support or resistance level. A resistance breakout can signal a bullish price dynamic, while a support breakdown may suggest a bearish price dynamic.
- Range Trading : In lateral sideways markets, users can capitalize on support zones for buying and resistance zones for selling, profiting from price fluctuations.
- Take-Profit Management : For buying or long positions, resistance zones can be identified to determine suitable take-profit levels either within or near these zones - for short positions, vice versa with support zones.
- Stop-Loss Management : For buying or long positions, support zones can be identified to determine appropriate stop-loss levels beneath these zones - for short positions, vice versa with resistance zones to determine stop-loss levels above these zones.
Note on Usability
blackOrb Zone can have synergies with blackOrb Price as both indicators combined can give a bigger picture for supporting comprehensive and multifaceted data-driven trading analysis.
This tool was meticulously created to serve as an additional frame for the seamless integration of other more granular trading indicators. This indicator isn't intended for standalone trading application. Instead, it is serving as a supplementary tool for orientation within broader trading strategies.
Irrespective of market conditions, it can harmonize with a wider range of trading styles and instruments / trading pairs / indices like Stocks, Gold, FX, EURUSD, SPX500, GBPUSD, BTCUSD and Oil.
Inspiration and Publishing
Taking genesis from the inspirations amongst others provided by TradingView Pine Script Wizard Kodify, blackOrb Zone is a multi-encompassing script meticulously forged from scratch. It aspires to furnish a comprehensive approach, borne out of personal experiences and a strong dedication in supporting the trading community. We eagerly await valuable feedback to refine and further enhance this tool.
AIR Supertrend (Average Interpercentile Range)Supertrend (ST) is a popular stop loss and trend identification script. The simplicity of seeing a clean trend on a chart makes it attractive, yet it is restricted by only allowing the source, length and multiplier to be adjusted, & these tend to have a limited effect on the properties of the identified trend.
There is a wide variety of interesting ST scripts on TradingView that give the user more control, but none to my knowledge, based on measuring the statistical dispersion of Average Interpercentile Range (AIR).
Two more levels of control:
Normally, ATR Average True Range is used to calculate the range in ST. ATR is initially calculated using RMA to smooth out True Range. This script gives the user the option of changing the MA to some more interesting varieties & modifying their parameters.
The default range setting when you load the indicator on a chart will be AIR.
The real strength of the indicator, however, and the reason I am publishing it, is to release AIR. Play round with the percentile range setting. Lowering it will allow you to stay longer in a trade in a volatile market. Raising it will make it tighter.
For comparison, you can switch back the range setting to ATR and load up RMA to see how the original, classic ST plots.
Alerts are included in this version. Alway use a stop loss.
DISCLAIMER: None of this is financial advice.
Credits to these authors, whose hard work inspired parts of this script:
@ KivancOzbilgic - SuperTrend
@ KioseffTrading - Tillson T3 MA
@ cheatcountry - Hann Window Smoothing
@ mutantdog - Interquartile Range function in his 'Blaze' script
Trend-Range-Indicator - 3hrThe Trend and Range Indicator is a tool based on median calculation and volatility analysis. It helps identify trends and ranges in price charts. This indicator highlights consolidation areas.
Only work in 3 hours timeframe
SuperTrend with Chebyshev FilterModified Super Trend with Chebyshev Filter
The Modified Super Trend is an innovative take on the classic Super Trend indicator. This advanced version incorporates a Chebyshev filter, which significantly enhances its capabilities by reducing false signals and improving overall signal quality. In this post, we'll dive deep into the Modified Super Trend, exploring its history, the benefits of the Chebyshev filter, and how it effectively addresses the challenges associated with smoothing, delay, and noise.
History of the Super Trend
The Super Trend indicator, developed by Olivier Seban, has been a popular tool among traders since its inception. It helps traders identify market trends and potential entry and exit points. The Super Trend uses average true range (ATR) and a multiplier to create a volatility-based trailing stop, providing traders with a dynamic tool that adapts to changing market conditions. However, the original Super Trend has its limitations, such as the tendency to produce false signals during periods of low volatility or sideways trading.
The Chebyshev Filter
The Chebyshev filter is a powerful mathematical tool that makes an excellent addition to the Super Trend indicator. It effectively addresses the issues of smoothing, delay, and noise associated with traditional moving averages. Chebyshev filters are named after Pafnuty Chebyshev, a renowned Russian mathematician who made significant contributions to the field of approximation theory.
The Chebyshev filter is capable of producing smoother, more responsive moving averages without introducing additional lag. This is possible because the filter minimizes the worst-case error between the ideal and the actual frequency response. There are two types of Chebyshev filters: Type I and Type II. Type I Chebyshev filters are designed to have an equiripple response in the passband, while Type II Chebyshev filters have an equiripple response in the stopband. The Modified Super Trend allows users to choose between these two types based on their preferences.
Overcoming the Challenges
The Modified Super Trend addresses several challenges associated with the original Super Trend:
Smoothing: The Chebyshev filter produces a smoother moving average without introducing additional lag. This feature is particularly beneficial during periods of low volatility or sideways trading, as it reduces the number of false signals.
Delay: The Chebyshev filter helps minimize the delay between price action and the generated signal, allowing traders to make timely decisions based on more accurate information.
Noise Reduction: The Chebyshev filter's ability to minimize the worst-case error between the ideal and actual frequency response reduces the impact of noise on the generated signals. This feature is especially useful when using the true range as an offset for the price, as it helps generate more reliable signals within a reasonable time frame.
The Great Replacement
The Modified Super Trend with Chebyshev filter is an excellent replacement for the original Super Trend indicator. It offers significant improvements in terms of signal quality, responsiveness, and accuracy. By incorporating the Chebyshev filter, the Modified Super Trend effectively reduces the number of false signals during low volatility or sideways trading, making it a more reliable tool for identifying market trends and potential entry and exit points.
In-Depth Guide to the Modified Super Trend Settings
The Modified Super Trend with Chebyshev filter offers a wide range of settings that allow traders to fine-tune the indicator to suit their specific trading styles and objectives. In this section, we will discuss each setting in detail, explaining its purpose and how to use it effectively.
Source
The source setting determines the price data used for calculations. The default setting is hl2, which calculates the average of the high and low prices. You can choose other price data sources such as close, open, or ohlc4 (average of open, high, low, and close prices) based on your preference.
Up Color and Down Color
These settings control the color of the trend line when the market is in an uptrend (up_color) and a downtrend (down_color). You can customize these colors to your liking, making it easier to visually identify the current market trend.
Text Color
This setting controls the color of the text displayed on the chart when using labels to indicate trend changes. You can choose any color that contrasts well with your chart background for better readability.
Mean Length
The mean_length setting determines the length (number of bars) used for the Chebyshev moving average calculation. A shorter length will make the moving average more responsive to price changes, while a longer length will produce a smoother moving average. It is crucial to find the right balance between responsiveness and smoothness, as a too-short length may generate false signals, while a too-long length might produce lagging signals. The default value is 64, but you can experiment with different values to find the optimal setting for your trading strategy.
Mean Ripple
The mean_ripple setting influences the Chebyshev filter's ripple effect in the passband (Type I) or stopband (Type II). The ripple effect represents small oscillations in the frequency response, which can impact the moving average's smoothness. The default value is 0.01, but you can experiment with different values to find the best balance between smoothness and responsiveness.
Chebyshev Type: Type I or Type II
The style setting allows you to choose between Type I and Type II Chebyshev filters. Type I filters have an equiripple response in the passband, while Type II filters have an equiripple response in the stopband. Depending on your preference for smoothness and responsiveness, you can choose the type that best fits your trading style.
ATR Style
The atr_style setting determines the method used for calculating the Average True Range (ATR). By default (false), it uses the traditional high-low range. When set to true, it uses the absolute difference between the open and close prices. You can choose the method that works best for your trading strategy and the market you are trading.
ATR Length
The atr_length setting controls the length (number of bars) used for calculating the ATR. Similar to the mean_length, a shorter length will make the ATR more responsive to price changes, while a longer length will produce a smoother ATR. The default value is 64, but you can experiment with different values to find the optimal setting for your trading strategy.
ATR Ripple
The atr_ripple setting, like the mean_ripple, influences the ripple effect of the Chebyshev filter used in the ATR calculation. The default value is 0.05, but you can experiment with different values to find the best balance between smoothness and responsiveness.
Multiplier
The multiplier setting determines the factor by which the ATR is multiplied before being added
Super Trend Logic and Signal Optimization
The Modified Super Trend with Chebyshev filter is designed to minimize false signals and provide a clear indication of market trends. It does so by using a combination of moving averages, Average True Range (ATR), and a multiplier. In this section, we will discuss the Super Trend's logic, its ability to prevent false signals, and the early warning crosses added to the indicator.
Super Trend Logic
The Super Trend's logic is based on a combination of the Chebyshev moving average and ATR. The Chebyshev moving average is a smooth moving average that effectively filters out market noise, while the ATR is a measure of market volatility.
The Super Trend is calculated by adding or subtracting a multiple of the ATR from the Chebyshev moving average. The multiplier is a user-defined value that determines the distance between the trend line and the price action. A larger multiplier results in a wider channel, reducing the likelihood of false signals but potentially missing out on valid trend changes.
Preventing False Signals
The Super Trend is designed to minimize false signals by maintaining its trend direction until a significant change in the market occurs. In a downtrend, the trend line will only decrease in value, and in an uptrend, it will only increase. This helps prevent false signals caused by temporary price fluctuations or market noise.
When the price crosses the trend line, the Super Trend does not immediately change its direction. Instead, it employs a safety logic to ensure that the trend change is genuine. The safety logic checks if the new trend line (calculated using the updated moving average and ATR) is more extreme than the previous one. If it is, the trend line is updated; otherwise, the previous trend line is maintained. This mechanism further reduces the likelihood of false signals by ensuring that the trend line only changes when there is a significant shift in the market.
Early Warning Crosses
To provide traders with additional insight, the Modified Super Trend with Chebyshev filter includes early warning crosses. These crosses are plotted on the chart when the price crosses the trend line without the safety logic. Although these crosses do not necessarily indicate a trend change, they can serve as a valuable heads-up for traders to monitor the market closely and prepare for potential trend reversals.
In conclusion, the Modified Super Trend with Chebyshev filter offers a significant improvement over the original Super Trend indicator. By incorporating the Chebyshev filter, this modified version effectively addresses the challenges of smoothing, delay, and noise reduction while minimizing false signals. The wide range of customizable settings allows traders to tailor the indicator to their specific needs, while the inclusion of early warning crosses provides valuable insight into potential trend reversals.
Ultimately, the Modified Super Trend with Chebyshev filter is an excellent tool for traders looking to enhance their trend identification and decision-making abilities. With its advanced features, this indicator can help traders navigate volatile markets with confidence, making more informed decisions based on accurate, timely information.
