TAS Boxes + TAS Vega + TAS Compass [TASMarketProfile]This bundle of 3 TAS Market Profile indicators provides a shaded background that reveals directional bias, colored price bars show clearly when breakout conditions are bullish (green) or bearish (red) as well as 3 real-time dotted lines that show developing commercial balance areas known as “value areas.” These TAS Boxes 3 lines are calculated in real-time and leveraged to identify trade entry zones, trailing stops and targets. The 3 indicators can be activated and applied to a chart simultaneously (as shown) or individually in the Inputs settings tab. This description contains descriptions for all 3 indicators in the order of TAS Boxes, TAS Vega and TAS Compass so you’ll need to scroll below to get to the one you want insight.
∟ ABOUT TAS BOXES:
TAS Boxes (also known as TAS Dynamic Profile) offers a dynamic representation of developing commercial balance areas known as “value areas” and are depicted with 3 colored horizontal dotted lines. Note that the thickness of the dotted lines may be adjusted in the Style settings.
Red Line- Supply / High Value Area (HVA) / Resistance
Cyan Line- Point of Control (POC)
Green Line- Demand / Low Value Area (LVA) / Support
The TAS Boxes calculate and display in real-time intrabar and are finalized at the close of the bar. The levels may dynamically update intrabar and move and this is viewed as foreshadowing of where new value areas may be attempting to appear next. When the market is between the top and bottom lines, the market is considered “in value” or “in balance.” When the market closes outside the top or bottom lines, the market is considered out of value/unbalanced and in breakout mode in that direction.
INPUT SETTINGS FOR TAS BOXES:
There are 3 inputs for TAS Boxes and below you’ll find the default settings:
MinSignal_123: 2 (only options are 1, 2, or 3)
Length: 7
MapLength: 7
MinSignal_123 -- Measures how established the commercial interest creating the balance area must be to create a new TAS Box. In other words, this input is a measure of the strength of the box.
Length –- Takes into consideration the relative “momentum” behind the move and how extended the move must be before the formation of new TAS Box levels.
MapLength –- Specifies the number of bars of data used to create the parameters of the TAS Box.
In summary, the first two inputs determine how often a new TAS Box will appear. The higher the input numbers the less often and harder it is to establish a new TAS Box, and vice versa. The last input simply determines how much data is included in the calculation of the new TAS Box.
While we recommend the default 2-7-7 as standard inputs for most traders as they work well with any tradable instrument with sufficient liquidity, other input combinations can be explored per the user’s preferences for varying sensitivity to market conditions and how recent of market conditions. Other settings to consider are 2-14-7 or 3-4-50. We invite the user to explore the cause and effect of changing the settings but doing so only after they have mastered an understanding of the strategy deployment with the defaults. The vast majority of users do not change the default settings.
WHAT MARKETS AND TIMEFRAMES CAN BE TRADED?
TAS Boxes can be displayed on Stocks, ETFs, futures, Forex and digital currencies. TAS Boxes can be applied to a chart of any time frame (e.g. 1-minute, 5-minute, 20-minute, daily, weekly, etc.) and will also function with many other style charts such as Range and Renko. Boxes displayed on longer time frames designate more significant balance areas and can be used to locate higher probability entries. Boxes on shorter time frames can be used to identify if the tradable instrument is currently in balance or breaking out, and pinpoint entries accordingly.
INTERPRETATION AND BASIC RULES:
HEIGHT OF BOXES: The height of the TAS Boxes from top line to bottom line is a measure of volatility. When taller Boxes are present and subsequent Boxes expand, this means the volatility of the market has increased. When the height of the Boxes is smaller or contracting, then we are experiencing a market in decreasing volatility or consolidating.
WIDTH OF BOXES: The width of the TAS Boxes are a measure of significance. The longer TAS Boxes have remained at the same levels, the higher the impact they will generally have as support or resistance levels, and in the instances they are breached the market may experience fast and vertical movement.
The TAS Boxes are used to identify high-probability zones for trading both inside the range of the Boxes and also when in breakout mode outside the Boxes:
>>> When price is trading within the boundaries of a normal to wide range commercial
balance area, we can consider trades within the range of the Boxes and should look for entries around the support (green line) or resistance (red line) areas with profit targets around the POC (cyan line) or opposite boundary.
>>> When taking trades near both the upper and lower boundaries, we like to see the POC
near the middle of the box’s range. This is known as a “symmetrical box” as pictured below.
>>> If the POC is plotted tightly close to or at the same price level as the green or red line, we refer to this as forming a “wall” or "plywood" and anticipate stronger commercial interest providing support or resistance in those areas.
>>> When trading above or below the current box, price is said to be in breakout/breakdown mode. During these modes, one should be getting out of any opposing positions that are not in the direction of the breakout. Not all breakout/breakdowns are created equal. Moves outside of TAS Boxes when the vertical distance from Top to Bottom is minimal will tend to have more powerful moves, especially in instances when there are recent long-range bars in the direction of the break.
>>> When markets are breaking out or down outside of Boxes, if there is sizeable space before you encounter recent historal TAS Boxes levels that is favorable for good follow through of the move. Prior TAS Boxes levels do serve as as areas the market may encounter friction and go sideways for a period of time.
MANAGING RISK WITH STOP LOSSES:
We highly recommend the use of stop losses when trading. You can place stop losses outside of the 3 lines of TAS Boxes and trail them behind the market as new Boxes appear in the direction of the trade. You may also move trailing stops among the 3 levels to suit your risk tolerance (e.g. when market is in breakout mode, trailing it from out the Boxes to outside the POC level or opposing level). You can start your initial stop outside the opposite of all 3 lines or on the other side of the POC for lower risk.
∟ ABOUT TAS VEGA:
TAS Vega changes the coloring of the price bars to provide a more meaningful interpretation of when markets are in balance (based on TAS Boxes) or in bullish/bearish breakout mode. There are four colors generated for TAS Vega:
GREEN – Bullish breakout / Don’t be short
RED – Bearish breakdown / Don’t be long
ORANGE – 1st bar back inside TAS Boxes after prior move outside.
GRAY – Balanced, each subsequent bar after the 1st bar closes inside Boxes.
INTERPRETATION AND BASIC RULES:
WHEN VEGA IS GREEN:
Don’t be short.
Consider longs only or retain existing long positions.
Entering on the bar close above the Boxes is higher probability than intrabar entry.
Many consecutive bar closes above Boxes increases probability of eventual move higher.
WHEN VEGA IS RED:
Don’t be long.
Consider shorts only or retain existing short positions.
Entering on the bar close below the Boxes is higher probability than intrabar entry.
Many consecutive bar closes below Boxes increases probability of eventual move lower.
WHEN VEGA IS ORANGE:
If orange due to closing back inside Boxes of your initial entry Box, hold.
If orange due to closing inside a new Box appearing in the direction of your trade (higher Boxes for longs, lower Boxes for short) consider this a potential 1st tier profit-taking opportunity for multi-lot/shares positions. If single units, exit is at the trader's discretion contingent on the extent of the move.
It is prudent risk management to also use the appearance of orange closed bars as a reminder to trail your stop loss behind the new TAS Boxes levels.
Many times you may see many orange bars over a series of bars (not consecutive, however) and this means the market continues to explore both sides of TAS Boxes and is indecisive about intentions. Be cautious at these times.
WHEN VEGA IS GRAY:
Gray bars simply means the bar has closed in balance within the value area of TAS Boxes.
Gray bars are not a cue to exit a position necessarily. It is just a visual that the bar has closed in the value area. Often a trending move will have many periods that the market closes back inside new Boxes that are appearing in the direction of the trend and your largest trades will require that you simply adjust your trailing stop rather than exit with gray bars.
It is prudent risk management to also use the appearance of orange closed bars as a reminder to trail your stop loss behind the new TAS Boxes levels.
Many times you may see many orange bars over a series of bars (not consecutive, however) and this means the market continues to explore both sides of TAS Boxes and is indecisive about intentions. Be cautious at these times.
The user can adjust the coloring of the TAS Vega bars in Style settings.
∟ ABOUT TAS COMPASS:
TAS Compass changes the background color of the chart to reveal the directional bias of the market. It may be applied to charts in any timeframe for stocks, ETFs, futures, Forex and digital currencies.
There are two colors generated for TAS Compass:
GREEN – Bullish directional bias
RED – Bearish directional bias
INTERPRETATION AND BASIC RULES:
The directional bias is established (or changes) when a bar closes outside of TAS Boxes levels. When a market closes above the TAS Boxes, it will establish a bullish bias (green background) and this will remain intact until there is a close below the TAS Boxes. At the time there is a bar close below the TAS Boxes, then the TAS Compass bias changes to bearish bias (red background). This sequence continues back and forth indefinitely. When using TAS Compass, one should still follow the prudent rules and best practices of TAS Boxes as there may be opportunities to exit a losing position sooner by doing so even in the instance a TAS Compass directional bias has not changed.
TAS Compass can be used as a stand-alone visual cue on a chart, but will have accentuated value when used in conjunction with TAS Boxes and TAS Vega indicators included within this bundle.
Below is an example showing TAS Compass with TAS Boxes in order to show how the closes outside of TAS Boxes is the trigger to the background color change logic.
Trade Well My Friends,
Cerca negli script per "renko"
Trend FactorThis indicator is based of a series of averages using different lengths plotted at the same time on a chart.
The thin line is a no lagging average which is to be used when trading with renkos.
The none lagging average is not needed when trading with candles and can be turned off in the settings
At quick glance this will allow you to understand trend direction increasing your probability of winning trades
This indicator is to be used as part of a system
Use the link below to obtain access to this indicator.
Bollinger Bands/Stoch RSI Buy Signal V0.1 [Mr_Orange]
This my second published script, so if there are tips or questions, please let me know.
The goal of the script is to recognise a reversal pattern from bearish to bullish sentiment on a 3m and 5m timeframe. I want my trade entries to be "mechanically chosen" and not emotionally. I have not yet found a Bollinger and Stochastic RSI indicator which did what I wanted it to do, I've yet to find one of those, so I decided to study pine scripts and make one myself that works the way I want, and because I've written it myself, I understand how it works.
It is purely designed for lower timeframes and normal candles, please do not use it Heikin or Renko. Other timeframes I have not studied. At the moment I only included a Buy alert. I have not yet decided on a Sell signal/alert.
Thanks for checking it out! If you think it is worth something:
- BTC: 1NrG3Sy2VW8u4wWHucj1CQjKQ6hXYwbSyX
Ensemble Consensus System
The Ensemble Consensus System (ECS) brings a **Random Forest-style ensemble vote** to Pine Script: five orthogonal "expert" strategies each cast a bull/bear vote (+1/-1/0), and only high-confidence consensus moves become signals—dramatically reducing noise while capturing strong directional moves.
## What Makes This Original
ECS is the first Pine Script indicator to implement true machine learning-style ensemble voting. Rather than relying on a single methodology, five independent experts analyze different market dimensions:
• **Trend Expert**: Multi-timeframe EMA alignment analysis
• **Momentum Expert**: RSI/MACD/Stochastic confluence with consistency filters
• **Volume Expert**: Proprietary volume pressure + OBV confirmation
• **Volatility Expert**: Bollinger Band mean reversion opportunities
• **Structure Expert**: Adaptive pivot-based support/resistance detection
## How It Works
The system requires consensus among experts, with an **adaptive threshold** based on market volatility:
| Volatility Regime | ATR/Close | Votes Required |
|-------------------|-----------|----------------|
| Low Volatility | <1% | 2+ |
| Normal Markets | 1-2% | 3+ |
| High Volatility | >2% | 4+ |
This dynamic adjustment prevents overtrading in choppy conditions while maintaining responsiveness during strong trends.
## Key Features
### Signals
• **Visual entry points** with strength percentage (60% = 3/5 experts agree)
• **Adaptive thresholds** that adjust to market conditions
• **Multi-expert consensus** reduces false signals
### Risk Control
• **Dynamic stop-loss/take-profit** based on ATR
• **Regime-adjusted targets** (±50% in volatile markets)
• **Visual SL/TP lines** with exact price labels
### Analytics
• **Real-time vote panel** showing each expert's stance
• **Performance tracking** with win rate and P/L
• **Market regime indicator** (Trending/Ranging/Volatile)
• **Light Mode** for better performance on slower systems
## How to Use
1. **Apply ECS** to a liquid instrument on 15m-4H timeframe (best: 1H)
2. **Wait for signal** - green ▲ for long, red ▼ for short with strength %
3. **Verify votes** - check panel to see which experts agree
4. **Execute trade** using the displayed SL/TP levels
5. **Monitor regime** - be cautious if market regime changes
### Quick Start Settings
• **Standard Trading**: Use defaults (3 votes, adaptive mode ON)
• **Conservative**: Increase to 4 votes minimum
• **Aggressive**: Reduce to 2 votes, tighten stops
## Important Limitations
• **Chart Types**: Not compatible with Renko/Heikin-Ashi
• **Volume Data**: Requires reliable volume (forex pairs may underperform)
• **News Events**: Signals may lag during gaps/major announcements
• **Processing**: Heavy calculations - use Light Mode if needed
## Settings Guide
**Ensemble Controls**
• `Minimum Votes` (default: 3): Base threshold before volatility adjustment
• `Adaptive Mode` (default: ON): Auto-adjusts threshold by market volatility
**Visual Options**
• `Vote Panel`: Live expert voting display
• `Performance Stats`: Win rate and trade tracking
• `Light Mode`: Disables heavy visuals for speed
**Risk Parameters**
• `Stop Multiplier` (default: 2.0): ATR multiple for stop-loss
• `TP Multiplier` (default: 3.0): ATR multiple for take-profit
• `Dynamic TP` (default: ON): Adjusts targets by market regime
## Troubleshooting
**Too few signals?**
→ Lower minimum votes or check if market is ranging
**Indicator running slow?**
→ Enable Light Mode, disable performance tracking
**Weird volume votes?**
→ Verify your symbol has accurate volume data
## Technical Concepts
The ensemble approach mimics **Random Forest algorithms** where multiple decision trees vote on outcomes. By requiring agreement among experts using orthogonal methodologies, ECS filters out signals that would fail under different market lenses. The adaptive threshold addresses fixed-parameter weakness by dynamically adjusting selectivity based on volatility.
• Adaptive pivot lookback for dynamic structure detection
• Safe volume pressure calculation preventing division errors
• Momentum consistency filter reducing choppy false signals
• Unified dashboard merging vote panel + performance stats
• Regime-based dynamic take-profit adjustment
*Educational indicator demonstrating ensemble methods in Pine Script. No guarantee of future performance. Always use proper risk management and position sizing.*
Bollinger Bands ETSOverview
Bollinger Bands ETstyle (BB ETS) is an advanced volatility and breakout detection indicator, building upon the classic Bollinger Bands. This script introduces adaptive ATR-based band width smoothing and clear squeeze detection, making it a versatile tool for traders seeking more responsive and actionable volatility analysis.
Features
Dual Bollinger Bands: Plots both standard and outer bands around a configurable moving average, allowing visualization of typical and extreme volatility ranges.
ATR-Based Band Smoothing (Optional): When enabled, the bands automatically widen during low-volatility periods using the Average True Range (ATR), reducing false signals and making the bands more adaptive.
Squeeze Detection (Optional): Highlights periods when the bands contract below a user-defined threshold, signaling potential breakout setups. Squeeze periods are visually marked with a background highlight for easy identification.
Customizable Settings: Users can adjust band length, standard deviation multipliers, ATR parameters, and squeeze thresholds. Both ATR smoothing and squeeze detection can be toggled on or off.
Clean Chart Output: The indicator overlays directly on price with clear, distinguishable visuals for all features.
How It Works
The indicator calculates a moving average (basis) and plots upper and lower bands at user-selected standard deviations.
If ATR smoothing is enabled, the band width expands by a multiple of the ATR, adapting to real-time volatility.
The script computes the relative band width ("bandwidth"). When this falls below your chosen threshold, the background is highlighted to indicate a "squeeze"-a period of reduced volatility that often precedes breakouts.
How to Use
Trend & Volatility Analysis: Use the bands to identify overbought/oversold conditions and current market volatility. Price touching or crossing the outer bands may signal trend exhaustion or continuation.
Breakout Anticipation: Watch for background highlights indicating a squeeze. These periods suggest the market is coiling for a potential significant move.
Adaptive Sensitivity: Enable ATR smoothing to keep bands relevant during both calm and volatile markets, reducing false signals in low-volatility conditions.
Customization: Adjust all parameters in the settings to match your trading style and the asset’s behavior.
Limitations
The indicator is designed for standard price charts and may not perform as intended on non-standard chart types (such as Renko or Heikin Ashi).
As with all technical tools, best results are achieved when used alongside other forms of analysis.
Summary
Bollinger Bands ETstyle (BB ETS) offers a modern, adaptive approach to volatility and breakout analysis by combining classic bands with ATR-based smoothing and clear squeeze visualization. It is suitable for trend-following and breakout strategies, and requires no additional scripts-simply apply to your chart and adjust the settings as needed.
LinReg Heikin Ashi CandlesLinear Regression Heikin Ashi Candles will dramatically change how the candlesticks on your chart will appear. This script creates Heikin Ashi candles from the existing candlesticks and then applies wickless Linear Regression candles as an overlay. The result is an ultra smoothed 'Renko-like' chart that remains time-based and responsive.
Key Features:
Heikin Ashi Base: Provides a smoother representation of price trends by filtering out noise.
Linear Regression Candles on Heikin Ashi: Plots Linear Regression lines as candles on the Heikin Ashi chart, potentially highlighting the immediate trend direction and momentum within the smoothed data. Wicks are intentionally removed for a clearer focus on the linear progression.
Tillson T3 Moving Averages: Includes fast and slow T3 Moving Averages with customizable length and alpha. These smoothed moving averages can help identify trend direction and potential crossover signals. Users can toggle their visibility.
Volatility Bands: Integrates Volatility Bands based on Average True Range (ATR) with customizable length, ATR type (RMA, SMA, EMA, WMA), and inner/outer multipliers. These bands help gauge price volatility and potential reversal zones. Users can toggle the visibility of the basis line.
Customizable Colors: Allows users to customize the colors of the Linear Regression Heikin Ashi bullish and bearish candles.
How to Use:
This is an overlay on your chart so you'll need to 'hide' the existing candlesticks on your chart.
This indicator can be used on any timeframe from seconds to days to quickly identify market trend, gauge volatility, and potentially find entry/exit points. Consider looking for confluence between the candle color/direction, T3 MA crossovers, and price interaction with the Volatility Bands.
Note: This indicator plots Linear Regression directly on Heikin Ashi candles, removing wicks for a focus on the linear trend within the smoothed data. Adjust the input parameters to suit your trading style and the specific market conditions.
HUGE CREDIT to ugurvu who originally created the Linear Regression Candles indicator that my indicator pulls code from.
HALC SYHALC SY @CK
Heikin Ashi Last Candle shows color of the last closed 30m heikin ashi candle for every new candle on your graph indicating local trend for scalp & short term trading in rder to help u choose right direction in your 1-5m tf trading. Non-repainting & designed for use on any graph type incl HA, Renko and other problematic syntetic as well as any of your own.
Dont recommend as entry signal but strong support to confirm/deny your trade system entry signal. Enjoy!
TTM Squeeze Momentum MTF [Cometreon]TTM Squeeze Momentum MTF combines the core logic of both the Squeeze Momentum by LazyBear and the TTM Squeeze by John Carter into a single, unified indicator. It offers a complete system to analyze the phase, direction, and strength of market movements.
Unlike the original versions, this indicator allows you to choose how to calculate the trend, select from 15 different types of moving averages, customize every parameter, and adapt the visual style to your trading preferences.
If you are looking for a powerful, flexible and highly configurable tool, this is the perfect choice for you.
🔷 New Features and Improvements
🟩 Unified System: Trend Detection + Visual Style
You can decide which logic to use for the trend via the "Show TTM Squeeze Trend" input:
✅ Enabled → Trend calculated using TTM Squeeze
❌ Disabled → Trend based on Squeeze Momentum
You can also customize the visual style of the indicator:
✅ Enable "Show Histogram" for a visual mode using Histogram, Area, or Column
❌ Disable it to display the classic LazyBear-style line
Everything updates automatically and dynamically based on your selection.
🟩 Full Customization
Every base parameter of the original indicator is now fully configurable: lengths, sources, moving average types, and more.
You can finally adapt the squeeze logic to your strategy — not the other way around.
🟩 Multi-MA Engine
Choose from 15 different Moving Averages for each part of the calculation:
SMA (Simple Moving Average)
EMA (Exponential Moving Average)
WMA (Weighted Moving Average)
RMA (Smoothed Moving Average)
HMA (Hull Moving Average)
JMA (Jurik Moving Average)
DEMA (Double Exponential Moving Average)
TEMA (Triple Exponential Moving Average)
LSMA (Least Squares Moving Average)
VWMA (Volume-Weighted Moving Average)
SMMA (Smoothed Moving Average)
KAMA (Kaufman’s Adaptive Moving Average)
ALMA (Arnaud Legoux Moving Average)
FRAMA (Fractal Adaptive Moving Average)
VIDYA (Variable Index Dynamic Average)
🟩 Dynamic Signal Line
Apply a moving average to the momentum for real-time cross signals, with full control over its length and type.
🟩 Multi-Timeframe & Multi-Ticker Support
You're no longer limited to the chart's current timeframe or ticker. Apply the squeeze to any symbol or timeframe without repainting.
🔷 Technical Details and Customizable Inputs
This indicator offers a fully modular structure with configurable parameters for every component:
1️⃣ Squeeze Momentum Settings – Choose the source, length, and type of moving average used to calculate the base momentum.
2️⃣ Trend Mode Selector – Toggle "Show TTM Squeeze Trend" to select the trend logic displayed on the chart:
✅ Enabled – Shows the trend based on TTM Squeeze (Bollinger Bands inside/outside Keltner Channel)
❌ Disabled – Displays the trend based on Squeeze Momentum logic
🔁 The moving average type for the Keltner Channel is handled automatically, so you don't need to select it manually, even if the custom input is disabled.
3️⃣ Signal Line – Toggle the Signal Line on the Squeeze Momentum. Select its length and MA type to generate visual cross signals.
4️⃣ Bollinger Bands – Configure the length, multiplier, source, and MA type used in the bands.
5️⃣ Keltner Channel – Adjust the length, multiplier, source, and MA type. You can also enable or disable the True Range option.
6️⃣ Advanced MA Parameters – Customize the parameters for advanced MAs (JMA, ALMA, FRAMA, VIDYA), including Phase, Power, Offset, Sigma, and Shift values.
7️⃣ Ticker & Input Source – Select the ticker and manage inputs for alternative chart types like Renko, Kagi, Line Break, and Point & Figure.
8️⃣ Style Settings – Choose how the squeeze is displayed:
Enable "Show Histogram" for Histogram, Area, or Column style
Disable it to show the classic LazyBear-style line
Use Reverse Color to invert line colors
Toggle Show Label to highlight Signal Line cross signals
Customize trend colors to suit your preferences
9️⃣ Multi-Timeframe Options - Timeframe – Use the squeeze on higher timeframes for stronger confirmation
🔟 Wait for Timeframe Closes -
✅ Enabled – Prevents multiple signals within the same candle
❌ Disabled – Displays the indicator smoothly without delay
🔧 Default Settings Reference
To replicate the default settings of the original indicators as they appear when first applied to the chart, use the following configurations:
🟩 TTM Squeeze (John Carter Style)
Squeeze
Length: 20
MA Type: SMA
Show TTM Squeeze Trend: Enabled
Bollinger Bands
Length: 20
Multiplier: 2.0
MA Type: SMA
Keltner Channel
Length: 20
Multiplier: 1.0
Use True Range: ON
MA Type: EMA
Style
Show Histogram: Enabled
Reverse Color: Enabled
🟩 Squeeze Momentum (LazyBear Style)
Squeeze
Length: 10
MA Type: SMA
Show TTM Squeeze Trend: Disabled
Bollinger Bands
Length: 20
Multiplier: 1.5
MA Type: SMA
Keltner Channel
Length: 10
Multiplier: 1.5
Use True Range: ON
MA Type: SMA
Style
Show Histogram: Disabled
Reverse Color: Disabled
⚠️ These values are intended as a starting point. The Cometreon indicator lets you fully customize every input to fit your trading style.
🔷 How to Use Squeeze Momentum Pro
🔍 Identifying Trends
Squeeze Momentum Pro supports two different methods for identifying the trend visually, each based on a distinct logic:
Squeeze Momentum Trend (LazyBear-style):
Displays 3 states based on the position of the Bollinger Bands relative to the Keltner Channel:
🔵 Blue = No Squeeze (BB outside KC and KC outside BB)
⚪️ White = Squeeze Active (BB fully inside KC)
⚫️ Gray = Neutral state (none of the above)
TTM Squeeze Trend (John Carter-style):
Calculates the difference in width between the Bollinger Bands and the Keltner Channel:
🟩 Green = BB width is greater than KC → potential expansion phase
🟥 Red = BB are tighter than KC → possible compression or pre-breakout
📈 Interpreting Signals
Depending on the active configuration, the indicator can provide various signals, including:
Trend color → Reflects the current compression/expansion state (based on selected mode)
Momentum value (above or below 0) → May indicate directional pressure
Signal Line cross → Can highlight momentum shifts
Color change in the momentum → May suggest a potential trend reversal
🛠 Integration with Other Tools
Squeeze Momentum Pro works well alongside other indicators to strengthen market context:
✅ Volume Profile / OBV – Helps confirm accumulation or distribution during squeezes
✅ RSI – Useful to detect divergence between momentum and price
✅ Moving Averages – Ideal for defining primary trend direction and filtering signals
☄️ If you find this indicator useful, leave a Boost to support its development!
Every piece of feedback helps improve the tool and deliver an even better trading experience.
🔥 Share your ideas or feature requests in the comments!
Shadow EdgeShadow Edge Indicator
Overview
Shadow Edge is an advanced technical analysis tool that visualizes key price levels and statistical patterns based on multiple timeframe analysis. It helps traders identify potential support, resistance, and expansion zones by tracking historical price behavior at specific hours of the trading day.
This indicator offers unique statistical insights by calculating average expansion levels and tracking market behavior patterns on an hourly basis. Unlike standard technical indicators, Shadow Edge combines historical price analysis with proprietary statistical calculations to identify high-probability zones for market reactions.
Key Features
• Previous High/Low Visualization : Displays previous session high and low levels with configurable line styles
• Mean Expansion Levels : Calculates and displays average price expansion levels (MuEH/MuEL) based on historical data
• Manipulation/Distribution Levels : Shows potential manipulation and distribution zones calculated from price action patterns
• Sweep Detection : Alerts when price sweeps previous high or low levels with customizable offset
• Multi-timeframe Analysis : Analyzes higher timeframe data and projects it onto your current chart
• Statistical Tracking : Maintains a database of price behavior by hour to identify recurring patterns
• Fully Customizable Visuals : Adjust colors, line styles, and transparency to match your chart setup
Settings
• Customize appearance of all elements including candles, lines, and labels
• Toggle visibility of different price levels
• Set alert conditions for level tests and sweeps
• Configure historical bar lookback period
• Optional stats display showing reliability percentages by hour
Use Cases
• Identify potential reversal zones at previous highs/lows
• Anticipate likely price expansion based on statistical averages
• Recognize manipulation and distribution patterns in price action
• Set precise alerts for sweep events at key levels
• Enhance your trading strategy with multi-timeframe analysis
How to Use It
1. Initial Setup : Apply the indicator to your chart and configure the higher timeframe setting (default is 60 min) to match your trading style.
2. Level Identification :
• Previous High (PH) and Previous Low (PL) levels show where price previously found support/resistance
• Mean Expansion High (MuEH) and Low (MuEL) levels indicate statistically likely price boundaries
• The Previous EQ level represents the equilibrium point between previous high and low
3. Trading Strategy Applications :
• Look for price reactions when testing previous high/low levels
• Use expansion levels (MuEH/MuEL) as potential take-profit targets
• Monitor manipulation (-M, +M) and distribution (-D, +D) levels for potential reversal zones
• Set alerts for sweeps of previous high/low levels to identify potential stop hunts
4. Statistical Analysis :
• The optional stats table shows reliability percentages for different hours
• Higher percentages indicate historically stronger adherence to the projected levels
• Use this data to adjust your trade timing and risk management
5. Visual Customization :
• Adjust colors and line styles to create a clean, easy-to-read chart
• Toggle different elements on/off based on your specific trading approach
• Reduce transparency settings if you prefer a more subtle visual overlay
Important Notes
• This indicator uses statistical calculations to identify price levels; past performance does not guarantee future results
• For best results, use on liquid markets during their primary trading sessions
• While the indicator provides statistical projections, always combine these signals with your own analysis and risk management strategy
• The code containing the proprietary algorithms is protected as closed source to maintain its integrity
Limitations
• The indicator requires sufficient historical data to calculate accurate statistical levels
• Performance may vary depending on market volatility and trading conditions
• Level projections work best on standard chart types (not Heikin Ashi, Renko, etc.)
• Sweep detections should be confirmed with price action before taking action
Note : Contact me for a version of this indicator that can work on any Higher Timeframe.
Session Bar/Candle ColoringChange the color of candles within a user-defined trading session. Borders and wicks can be changed as well, not just the body color.
PREFACE
This script can be used an educational resource for those who are interested in learning Pine Script. Therefore, the script is published open source and is organized in a manner that follows the recommended Style Guide .
While the main premise of the indicator is rather simple, the script showcases various things that can be achieved such as conditional plotting, alignment of indicator settings, user input validation, script optimization, and more. The script also has examples of taking into consideration the chart timeframe and/or different chart types (Heikin Ashi, Renko, etc.) that a user might be running it on. Note: for complete beginners, I strongly suggest going through the Pine Script User Manual (possibly more than once).
FEATURES
Besides being able to select a specific time window, the indicator also provides additional color settings for changing the background color or changing the colors of neutral/indecisive candles, as shown in the image below.
This allows for a higher level of customization beyond the TradingView chart settings or other similar scripts that are currently available.
HOW TO USE
First, define the intraday trading session that will contain the candles to modify. The session can be limited to specific days of the week.
Next, select the parts of the candles that should be modified: Body, Borders, Wick, and/or Background.
For each of the candle parts that were enabled, you can select the colors that will be used depending on whether a candle is bullish (⇧), bearish (⇩), or neutral (⇆).
All other indicator settings will have a detailed tooltip to describe its usage and/or effect.
LIMITATIONS
The indicator is not intended to function on Daily or higher timeframes due to the intraday nature of session time windows.
The indicator cannot always automatically detect the chart type being used, therefore the user is requested to manually input the chart type via the " Chart Style " setting.
Depending on the available historical data and the selected choice for the " Portion of bar in session " setting, the indicator may not be able to update very old candles on the chart.
EXAMPLE USAGE
This section will show examples of different scenarios that the indicator can be used for.
Emphasizing a main trading session.
Defining a "Pre/post market hours background" like is available for some symbols (e.g., NASDAQ:AAPL ).
Highlighting in which bar the midnight candle occurs.
Hiding indecision bars (neutral candles).
Showing only "Regular Trading Hours" for a chart that does not have the option to toggle ETH/RTH. To achieve this, the actual chart data is hidden, and only the indicator is visible; alternatively, a 2nd instance of the indicator could change colors to match the chart background.
Using a combination of Bars and Japanese Candlesticks. Alternatively, this could be done by hiding the main chart data and using 2 instances of the indicator (one with " Chart Style " setting as Bars , and the other set to Candles ).
Using a combination of thin and thick bars on Range charts. Note: requires disabling the "Thin Bars" setting for Bar charts in the TradingView chart settings.
NOTES
If using more than one instance of this indicator on the same chart, you can use the TradingView "Save Indicator Template" feature to avoid having to re-configure the multiple indicators at a later time.
This indicator is intended to work "out-of-the-box" thanks to the behind_chart option introduced to Pine Script in October 2024. But you can always manually bring the indicator to the front just in case the color changes are not being seen (using the "More" option in the indicator status line: More > Visual Order > Bring to front ).
Many thanks to fikira for their help and inspiring me to create open source scripts.
Any feedback including bug reports or suggestions for improving the indicator (or source code itself) are always welcome in the comments section.
Uptrick: Smart BoundariesThis script is an indicator that combines the RSI (Relative Strength Index) and Bollinger Bands to highlight potential points where price momentum and volatility may both be at extreme levels. Below is a detailed explanation of its components, how it calculates signals, and why these two indicators have been merged into one tool. This script is intended solely for educational purposes and for traders who want to explore the combined use of momentum and volatility measures. Please remember that no single indicator guarantees profitable results.
Purpose of This Script
This script is designed to serve as a concise, all-in-one tool for traders seeking to track both momentum and volatility extremes in real time. By overlaying RSI signals with Bollinger Band boundaries, it helps users quickly identify points on a chart where price movement may be highly stretched. The goal is to offer a clearer snapshot of potential overbought or oversold conditions without requiring two separate indicators. Additionally, its optional pyramiding feature enables users to manage how many times they initiate trades when signals repeat in the same direction. Through these combined functions, the script aims to streamline technical analysis by consolidating two popular measures—momentum via RSI and volatility via Bollinger Bands—into a single, manageable interface.
1. Why Combine RSI and Bollinger Bands
• RSI (Relative Strength Index): This is a momentum oscillator that measures the speed and magnitude of recent price changes. It typically ranges between 0 and 100. Traders often watch for RSI crossing into “overbought” or “oversold” levels because it may indicate a potential shift in momentum.
• Bollinger Bands: These bands are plotted around a moving average, using a standard deviation multiplier to create an upper and lower boundary. They help illustrate how volatile the price has been relative to its recent average. When price moves outside these boundaries, some traders see it as a sign the price may be overstretched and could revert closer to the average.
Combining these two can be useful because it blends two different perspectives on market movement. RSI attempts to identify momentum extremes, while Bollinger Bands track volatility extremes. By looking for moments when both conditions agree, the script tries to highlight points where price might be unusually stretched in terms of both momentum and volatility.
2. How Signals Are Generated
• Buy Condition:
- RSI dips below a specified “oversold” level (for example, 30 by default).
- Price closes below the lower Bollinger Band.
When these occur together, the script draws a label indicating a potential bullish opportunity. The underlying reasoning is that momentum (RSI) suggests a stronger-than-usual sell-off, and price is also stretched below the lower Bollinger Band.
• Sell Condition:
- RSI rises above a specified “overbought” level (for example, 70 by default).
- Price closes above the upper Bollinger Band.
When these occur together, a label is plotted for a potential bearish opportunity. The rationale is that momentum (RSI) may be overheated, and the price is trading outside the top of its volatility range.
3. Pyramiding Logic and Trade Count Management
• Pyramiding refers to taking multiple positions in the same direction when signals keep firing. While some traders prefer just one position per signal, others like to scale into a trade if the market keeps pushing in their favor.
• This script uses variables that keep track of how many recent buy or sell signals have fired. If the count reaches a user-defined maximum, no more signals of that type will trigger additional labels. This protects traders from over-committing to one direction if the market conditions remain “extreme” for a prolonged period.
• If you disable the pyramiding feature, the script will only plot one label per side until the condition resets (i.e., until RSI and price conditions are no longer met).
4. Labels and Visual Feedback
• Whenever a buy or sell condition appears, the script plots a label directly on the chart:
- Buy labels under the price bar.
- Sell labels above the price bar.
These labels make it easier to review where both RSI and Bollinger Band conditions align. It can be helpful for visually scanning the chart to see if the signals show any patterns related to market reversals or trend continuations.
• The Bollinger Bands themselves are plotted so traders can see when the price is approaching or exceeding the upper or lower band. Watching the RSI and Bollinger Band plots simultaneously can give traders more context for each signal.
5. Originality and Usefulness
This script provides a distinct approach by merging two well-established concepts—RSI and Bollinger Bands—within a single framework, complemented by optional pyramiding controls. Rather than using each indicator separately, it attempts to uncover moments when momentum signals from RSI align with volatility extremes highlighted by Bollinger Bands. This combined perspective can aid in spotting areas of possible overextension in price. Additionally, the built-in pyramiding mechanism offers a method to manage multiple signals in the same direction, allowing users to adjust how aggressively they scale into trades. By integrating these elements together, the script aims to deliver a tool that caters to diverse trading styles while remaining straightforward to configure and interpret.
6. How to Use the Indicator
• Configure the Inputs:
- RSI Length (the lookback period used for the RSI calculation).
- RSI Overbought and Oversold Levels.
- Bollinger Bands Length and Multiplier (defines the moving average period and the degree of deviation).
- Option to reduce pyramiding.
• Set Alerts (Optional):
- You can create TradingView alerts for when these conditions occur, so you do not have to monitor the chart constantly. Choose the buy or sell alert conditions in your alert settings.
• Integration in a Trading Plan:
- This script alone is not a complete trading system. Consider combining it with other forms of analysis, such as support and resistance, volume profiles, or candlestick patterns. Thorough research, testing on historical data, and risk management are always recommended.
7. No Performance Guarantees
• This script does not promise any specific trading results. It is crucial to remember that no single indicator can accurately predict future market movements all the time. The script simply tries to highlight moments when two well-known indicators both point to an extreme condition.
• Actual trading decisions should factor in a range of market information, including personal risk tolerance and broader market conditions.
8. Purpose and Limitations
• Purpose:
- Provide a combined view of momentum (RSI) and volatility (Bollinger Bands) in a single script.
- Assist in spotting times when price may be at an extreme.
- Offer a configurable system for labeling potential buy or sell points based on these extremes.
• Limitations:
- Overbought and oversold conditions can persist for an extended period in trending markets.
- Bollinger Band breakouts do not always result in immediate reversals. Sometimes price keeps moving in the same direction.
- The script does not include a built-in exit strategy or risk management rules. Traders must handle these themselves.
Additional Disclosures
This script is published open-source and does not rely on any external or private libraries. It does not use lookahead methods or repaint signals; all calculations are performed on the current bar without referencing future data. Furthermore, the script is designed for standard candlestick or bar charts rather than non-standard chart types (e.g., Heikin Ashi, Renko). Traders should keep in mind that while the script can help locate potential momentum and volatility extremes, it does not include an exit strategy or account for factors like slippage or commission. All code comes from built-in Pine Script functions and standard formulas for RSI and Bollinger Bands. Anyone reviewing or modifying this script should exercise caution and incorporate proper risk management when applying it to their own trading.
Calculation Details
The script computes RSI by examining a user-defined number of prior bars (the RSI Length) and determining the average of up-moves relative to the average of down-moves over that period. This ratio is then scaled to a 0–100 range, so lower values typically indicate stronger downward momentum, while higher values suggest stronger upward momentum. In parallel, Bollinger Bands are generated by first calculating a simple moving average (SMA) of the closing price for the user-specified length. The script then measures the standard deviation of closing prices over the same period and multiplies it by the chosen factor (the Bollinger Bands Multiplier) to form the upper and lower boundaries around the SMA. These two measures are checked in tandem: if the RSI dips below a certain oversold threshold and price trades below the lower Bollinger Band, a condition is met that may imply a strong short-term sell-off; similarly, if the RSI surpasses the overbought threshold and price rises above the upper Band, it may indicate an overextended move to the upside. The pyramiding counters track how many of these signals occur in sequence, preventing excessive stacking of labels on the chart if conditions remain extreme for multiple bars.
Conclusion
This indicator aims to provide a more complete view of potential market extremes by overlaying the RSI’s momentum readings on top of Bollinger Band volatility signals. By doing so, it attempts to help traders see when both indicators suggest that the market might be oversold or overbought. The optional reduced pyramiding logic further refines how many signals appear, giving users the choice of a single entry or multiple scaling entries. It does not claim any guaranteed success or predictive power, but rather serves as a tool for those wanting to explore this combined approach. Always be cautious and consider multiple factors before placing any trades.
Line Break Chart StrategyHello All!
We should not pass this year without a gift!
My last publication in 2024 is Complete Line Break Chart Strategy with many features!
What is Line Break Chart?
" Line Break is a Japanese chart style that disregards time intervals and only focuses on price movements, similar to the Kagi and Renko chart styles. Line Break charts form a series of up and down bars (referred to as lines). Up lines represent rising prices, and down lines represent falling prices. New confirmed lines only form on the chart when closing prices break the range covered by previous lines. Users can control the number of past lines used in the calculation via the "Number of Lines" input in the chart settings. The typical "Number of Lines" setting is 3, meaning the chart forms a new up line when the closing price is above the high prices of the last three lines, and it forms a new down line when the closing price is below the past three lines' low prices. If the current price is higher, it is an up line and if it is lower, it is a down line. If the current closing price is the same or the move in the opposite direction is not large enough to warrant a reversal, l then no new line is draw n" by Tradingview. You can find it here
Now let's start examining the features of the indicator:
By using Line break reversals it shows trend on the main chart. You can create alert .
Moreover, you can decide which trade should be taken by using Risk Management in the indicator. You can set the " Maximum Risk " and then if the risk is more than you set then the trade is not taken. When trend changed it checks the distance between reversal level and open price and compare it with the Maximum Risk
Breakout:
It can find breakouts and shows on the chart. You can create alert for breakouts
It can show breakouts on the main chart:
Flip-Flops:
Upon looking at set of price break charts, the trader will notice that there are instances when uptrend blocks is followed by one reversal block, and then by a reversal to a series of uptrend blocks. The opposite is also possible: a series of downtrend blocks is followed by one reversal box and then by an immediate reversal to downtrend. This price action is called a " Flip-Flop ". This structure usually produces trend continuation signal. when we see this then we better use Buy/Sell stop order. lets see this on the chart:
Temporal Sequence Table:
Sequence frequency shows the frequency distribution of the number of sequential highs and the number of sequential lows that have been generated. This is quite important to the trader who is seeking to join a trend or put on a trade when the price break reverses into a new trend direction. For example, if the pattern over the past year has been that there never were more than nine consecutive high closes, it would make sense not to enter a position late into the sequence of new high closes.
also you can see market structure. I have tried to formalize it and show it under the table. so you can understand if it's choppy market.
"Number of Lines" has very important role. While using low time frames such seconds/minutes time frame you may want to choose higher number of lines such 5,6. ( this may minimize the risk of a whipsaw )
Gaps feature:
You can set Gaps on/off. if Gaps on then you can see how long it takes for each box
Reversal and Continuation Probability:
The script calculated Reversal level and Continuation probability of the trend by using Sequence frequency.
It also shows unconfirmed box and current closing price level:
Last but not least it has Overlay option for all items, and can show all items in the main chart!
P.S. I added alerts :)
Wish you all a happy new year!
Enjoy!
BRT Cluster VolumeTitle and Purpose
BRT Cluster Volume is a powerful market analysis tool designed to identify key support and resistance levels, cluster volumes, and breakout signals. This script is highly beneficial for traders who aim to gain deeper insights into market trends and pinpoint zones of interest for buyers and sellers.
Key Features
1. Support and Resistance Levels:
- The script automatically detects chart extremums by analyzing a specified number of bars on the left and right to form levels. This approach effectively identifies local highs and lows.
- The uniqueness of this implementation lies in its dynamic data processing. For each extremum, the "channel width" is calculated, allowing insignificant levels to be filtered out based on a user-defined minimum width. This method eliminates noise and ensures focus on critical levels.
- Extremum lines can be extended to the right (when enabled), allowing traders to track current price movements relative to historical levels.
2. Cluster Volume:
- The cluster analysis is based on lower timeframe data, providing precise identification of key zones of market participant activity. The script dynamically requests close prices and volumes from lower timeframes, calculates the average volume, and identifies levels where volumes exceed a defined threshold.
- The visualization of cluster volumes is unique: volumes exceeding the threshold are displayed as candles with customizable colors and markers. These indicators help traders identify zones of significant interest.
- Cluster volume is only displayed when it interacts with support or resistance levels, ensuring that the visualization remains precise and relevant for market analysis.
3. Breakout Signals:
- The script evaluates "breakout strength" for each breakout of support or resistance levels by comparing the current price with the level. This helps filter false breakouts and focus on significant price movements.
- Traders can select the source for breakout signals (close price or high/low), offering flexibility for various trading styles and strategies.
- By incorporating the concept of "maximum breakout strength," the script highlights only meaningful breakouts, ignoring minor fluctuations.
4. Integration of Trading Sessions:
- Extremum levels for major trading sessions (Asia, Europe, USA) are identified and labeled on the chart. This allows traders to see when significant price levels were formed during the day.
- The script uses timestamps to automatically detect session times, ensuring accuracy and minimizing manual adjustments.
5. Dynamic Data Updates:
- The script dynamically updates support and resistance levels in real time as new data becomes available. This feature is crucial for traders working in fast-moving markets.
- Outdated information (such as obsolete levels) is automatically removed to keep the chart clean and focused on relevant data.
6. Visualization of Activity Zones:
- Trend direction is visualized using color-coded candles based on cluster volumes. For instance, candles with volumes exceeding the average are highlighted with specific colors, helping traders quickly identify areas of heightened activity.
- The unique aspect of this visualization is that cluster volumes appear only in zones where they interact with breakout levels, providing an intuitive and streamlined presentation of critical data.
Usage
- Support and Resistance: Adjust the "Left Bars" and "Right Bars" settings to determine extremums. Use the "Channel Min Width" setting to filter out insignificant levels.
- Cluster Volume: Customize the analysis period and volume threshold to identify high-activity zones. Enable breakout clusters to see how volumes interact with breakouts.
- Session Extremums: Highlight significant levels for Asia, Europe, and US trading sessions to gain insights into market dynamics across different time zones.
- Breakout Signals: Configure the breakout strength and source (close or high/low) for precise signal detection.
Parameter Details
1. Support & Resistance:
- `Left Bars` / `Right Bars`: Number of bars to consider for determining extremums.
- `# of Lines`: Maximum number of support/resistance lines to display.
- `Channel Min Width`: Minimum channel width to filter insignificant levels.
2. Breakout:
- `Show Breakouts`: Toggle breakout signal display.
- `Max breakout strength`: Maximum strength for valid breakouts.
- `Breakout source`: Data source for breakouts (close or high/low).
3. Cluster Volume:
- `Lookback`: Number of bars to analyze for cluster volumes.
- `Threshold`: Volume threshold (percentage above the average).
- `Cluster Volume Timeframe`: Timeframe for cluster volume analysis.
- `Breakout Cluster`: Display cluster volumes only for breakout-related zones.
4. Visual Settings:
- `Extend extremum lines to the right`: Extend support/resistance lines to the right.
- `Show ASIA/EU/US Session Extremums`: Display extremums for trading sessions.
Features and Benefits
- The script provides flexible parameter customization, allowing it to adapt to different trading styles and timeframes.
- The visualization is designed to be clean and intuitive, ensuring users can easily interpret the data.
- Suitable for all timeframes, making it ideal for both intraday and long-term market analysis.
Limitations
- The script is not suitable for analysis on non-standard chart types (e.g., Heikin Ashi, Renko, Kagi).
- To ensure accurate performance, realistic data for commission and slippage should be used.
Warnings
- The script relies on historical data for calculations, which may cause discrepancies in real-time conditions.
- Users should fully understand the functionality of cluster analysis and breakout signals before using the script in live trading.
This script combines advanced data processing logic, dynamic level adjustments, and unique visualization approaches, making it an indispensable tool for market analysis and trading decision-making.
BooBee Digital - Enhanced Buy & Sell Alerts Suite
BooBee Digital - Enhanced Buy & Sell Alerts Suite
Introduction:
The “BooBee Digital - Enhanced Buy & Sell Alerts Suite” is a comprehensive trading tool designed to provide traders with precise buy and sell signals by integrating the Average True Range (ATR) trailing stop technique and the Volume Weighted Average Price (VWAP) indicator. This script is tailored to help traders make informed decisions by considering both market volatility and trading volume.
How It Works:
1. ATR Calculation:
• Purpose: Measures market volatility to set dynamic stop levels.
• Details: The Average True Range (ATR) is calculated over a user-defined period. The ATR value reflects the average range of price movements over the specified period, which is crucial for assessing market volatility.
2. ATR Trailing Stop:
• Purpose: Identifies potential trend reversals by setting trailing stops based on market volatility.
• Details: The ATR trailing stop is dynamically adjusted using the ATR value and a user-defined sensitivity factor. This trailing stop level helps identify trend reversals by moving in accordance with price fluctuations.
3. VWAP Calculation:
• Purpose: Provides a volume-weighted average price to benchmark fair value.
• Details: The VWAP is calculated by taking the sum of the product of price and volume, divided by the total volume. This indicator gives traders a reference point for the average price at which the asset has traded throughout the day, considering trading volume.
4. EMA Crossover:
• Purpose: Adds a confirmation layer for buy and sell signals.
• Details: A 1-period Exponential Moving Average (EMA) is used to identify short-term price movements. Buy and sell signals are generated based on the crossover of the EMA and the ATR trailing stop, adding an extra layer of confirmation for trade entries and exits.
Signal Generation:
Buy Signal:
• Generated when the price is above the ATR trailing stop and there is a bullish crossover of the EMA and ATR trailing stop.
• Indicator: Green label below the bar with “Buy” text.
Sell Signal:
• Generated when the price is below the ATR trailing stop and there is a bearish crossover of the EMA and ATR trailing stop.
• Indicator: Red label above the bar with “Sell” text.
VWAP Line:
• The VWAP line is plotted on the chart to help traders identify significant price levels based on trading volume.
• Indicator: Blue line representing the VWAP.
How to Use:
• Chart Type: The script is designed for use on standard chart types such as Candlestick and OHLC. It does not support non-standard chart types like Heikin Ashi, Renko, Kagi, Point & Figure, and Range, as they may produce unrealistic results.
• Clean Chart: Ensure your chart is clean and free of other indicators to avoid confusion. The signals and colors plotted by the script should be easily identifiable.
• Trade Confirmation: Use the buy and sell signals generated by the script in conjunction with other analysis methods to confirm trades.
Key Concepts:
• ATR Trailing Stop: This technique sets dynamic stop levels based on market volatility, helping to identify trend reversals.
• VWAP: This indicator provides a benchmark for the average price considering trading volume, helping traders identify fair value.
• EMA Crossover: This adds a layer of confirmation for buy and sell signals, improving the accuracy of trade entries and exits.
ICT Opening Range GapOpening Range Gap
The Opening Range Gap, also known as the Regular Trading Hours (RTH) Gap, is the distance between the first opening tick of a session and the previous session's close, when looking at a chart's Regular Trading Hours (not to be confused with Electronic Trading Hours). This gap is an important element for Futures Market traders that follow the works of The Inner Circle Trader (ICT). To be more specific, the Opening Range Gap occurs between 4:15pm and 9:30am of the next day.
The Opening Range Gap can be viewed easily when switching the session type to "Regular trading hours".
The image above shows an example of an RTH Gap for Wednesday, June 12, 2024 in CME_MINI:ES1!
How To Use Opening Range Gap
The Opening Range Gap can be used like any other form of a gap by extending it into future price action and looking for it to be filled on the same day or the upcoming days.
Looking for 50% of the gap to be filled as an initial target is one of the methodologies taught by ICT. Additionally, the high and low of the gap (as well as the midpoint) can be used as points of dynamic support & resistance, even if the gap is already filled. Therefore, these gaps do not "expire", and they can be used as key price levels extended through to the end of the week.
Disclaimer
This indicator is mainly intended to work for Futures markets, and specifically the following Index Futures markets: E-mini S&P 500 Futures, E-mini NASDAQ-100 Futures, E-mini DOW Futures.
Given that, the indicator still supports various other markets/assets out-of-the-box, such as other types of Futures Markets, Stocks, Options, and more. The main difference will be that other markets may have RTH Gaps forming at different times, rather than the 4:15pm-9:30am gap that occurs in the Index Futures (Regular trading hours).
Indicator Purpose
While RTH Gaps can be labeled by hand, this indicator allows you to quickly plot multiple RTH Gaps and get a quick glimpse at potential gaps that you may have missed, which could end up being useful in your analysis.
This indicator is 100% custom-built, not using code from any other existing indicators that may plot Opening Range Gaps. The main purpose of this indicator was to overcome many shortcomings from other existing indicators, most notably the problem of displaying RTH Gaps while using ETH as the chart session.
Therefore, this indicator has many UNIQUE features, such as:
Ability to maintain accuracy of the closing/opening prices even when changing chart settings (e.g., toggling ETH/RTH sessions, toggling BACK-ADJUSTMENT on futures contracts, toggling SETTLEMENT prices, etc.).
Draw up to 25 previous Opening Range Gaps, even on ultra-low timeframes like the 1-minute or 1-second chart.
Automatically or manually choose which Opening Range Gaps to hide/show on the chart.
Highly customizable, including a different color scheme to easily distinguish between the Current and Previous RTH Gaps.
Modified price values to correctly display prices that use a format like 109'32 (e.g., Bond Futures or Wheat Futures).
Helpful tooltips to provide more detailed information about the RTH Gaps or about the current Input Settings.
Error Messages
There are some conditions which can cause the script to fail and display an error message (by clicking the red exclamation mark next to the indicator.)
Error messages:
Use a Standard Chart Type : this will occur when using a non-standard chart such as Heikin Ashi, Renko, Point & Figure, etc.
Use a Daily or Lower Timeframe : this error will appear when using a higher timeframe chart like weekly or monthly, because it can clutter the chart since RTH Gaps can form every day.
RTH Gap was not detected : this means that no RTH gap was found, which will occur on markets that don't have the option to toggle between ETH and RTH sessions (e.g., Forex or Crypto).
Exceeded the maximum lookback for Bar Replay mode : when using bar replay mode; this can depend on the amount of historical bars available in different account subscription types.
Unable to Activate Bar Replay mode : if the indicator could not be used in Bar Replay mode.
Restart Bar Replay : if the indicator works in Bar Replay but it detected an error that would cause RTH Gaps to be plotted incorrectly.
This is an example of what a script error would look like.
Indicator Settings
Most settings are self-explanatory or have a tooltip with information on what the setting does, but this section will only briefly cover the available settings.
Extend to End of Day : This setting is enabled by default. It will extend each RTH Gap only up to the end of its day (specifically, to the RTH close of the day). The option can be toggled OFF to automatically extend all RTH Gaps to the right-most candle on the chart.
Previous RTH Gaps : Between 1 and 25 previous RTH Gaps can be displayed. The checkbox can be toggled to quickly hide all previous RTH Gaps (but the same effect would be reached by setting the value to 0).
Hide Current RTH Gap : The Current RTH Gap (most recent one), can be optionally hidden from being plotted.
Beginning Anchor Point : Choose the beginning anchor point for all RTH Gaps. The default is "RTH Close", which means that each gap will be drawn on the chart starting from their previous session's RTH close @ 4:15pm. But it will be a more transparent version of the actual gap; this ghost-like image will extend from 4:15pm all the way up to 9:30am where the gap will then be drawn normally from 9:30am onwards. The other option for this setting is "RTH Open" which means that the gap will be drawn starting from the actual 9:30am opening.
Current RTH Gap Style
These settings are used to customize the visual style of the most recent RTH Gap (also known as the "Current" RTH Gap). Note: the exact same set of settings are available for the Previous RTH Gaps. The text label next to each gap can be optionally hidden to clean the chart a little.
Price Table
These are settings to customize the appearance of the Price Table on the right, including the ability to hide it completely. Note: to actually use the color configurations, you must select "Custom Style" in one of the dropdowns, otherwise it will use "Default Style" which means that the Price Table is automatically styled based on the colors chosen in the Current RTH Gap Style and Previous RTH Gap Style settings.
Overlap Handling
One of 7 available overlap handling options can be used to filter which RTH Gaps are plotted on the chart. By default, the "None" option will be selected, meaning that all valid RTH Gaps are plotted on the chart.
Formatting
Date Format : select the format of the date that is shown next to each RTH Gaps.
Timezone : choose the timezone for the RTH Gap closing/opening date-times that are displayed (only in tooltips when you hover over an RTH Gap label).
RTH Gap Label : choose the details to display next to each gap (e.g., date, or gap number, or both).
Price Format : only two options: Auto/Decimal. "Auto" uses custom processing to allow displaying values such as 109'32 for Bond futures.
Tooltips
The indicator provides additional details about an RTH Gap when you hover over a row in the Price Table.
Note: the same information can be found by hovering over the Text Label that is to the right of each RTH Gap (even when the Text Label is disabled via the Settings).
Overlap Handling
The tooltip next to "Select a Strategy" in the options will provide details on each overlap handling strategy. Additionally, when a strategy is selected, a new row in the Price Table will appear; hovering over that will show details about the currently selected strategy, as well as any suggestions in case the inputs were invalid. When a strategy hides an RTH Gap, the number in the Price Table will be replaced with an "Eye" icon, indicating that it is not currently plotted on the chart.
Available strategies are:
Option 1 (Gradients) : select the percentage opacity to shade RTH Gaps in. The more recent RTH Gaps will be closer to the maximum opacity defined, while the older RTH Gaps will appear more transparent, closer to the minimum opacity defined. Note: only affects previous RTH Gaps, not the current RTH Gap.
Option 2 (Day Extension) : select the number of days to extend each RTH Gap up to. Note: this will override the "Extend to End of Day" setting, regardless whether it is toggled ON or OFF.
Option 3 (Nested Gaps) : hides nested gaps, i.e., RTH Gaps that are enclosed within another RTH Gap. Note: this option is only available when the "Extend to End of Day" setting is disabled .
Option 4 (Intersecting Gaps) : hides intersecting/overlapping gaps, i.e., RTH Gaps that overlap one another (this may also include, but is not limited to, nested gaps). The drop-down next to this option allows choosing the priority of which RTH Gaps to hide first. Note: this option is only available when the "Extend to End of Day" setting is disabled .
Option 5 (Gap Width) : the chart will only show RTH Gaps that have a width/size between the defined parameters.
Option 6 (Close Proximity) : the chart will only show the RTH Gaps that are within a certain range from the market price. This can be useful when plotting multiple RTH Gaps while using auto-scaling on the chart. By only showing nearby RTH Gaps, it will prevent the auto-scaling from having to compress the candles to fit the far-away RTH Gaps onto the screen.
Option 7 (CSV) : this option is used if none of the others suit you well; it allows specifically choosing which RTH Gaps to hide or show on the chart.
This is an example that chooses the Overlap Handling Strategy Option 6. Note that in this example, the tooltip in the price table shows a warning that the Input Number should be increased to plot some RTH Gaps on the chart.
Tips
Chart settings can be toggled to "Scale price chart only" to prevent the auto-scaling of TradingView from compressing the chart if there are RTH Gaps that are far away from the current market action.
If you change a lot of indicator settings such as RTH Gap color schemes, you can save the settings as the Default to prevent your settings from resetting the next time you use the indicator.
ICT New Day Opening GapNew Day Opening Gap
The New Day Opening Gap (NDOG) is defined by The Inner Circle Trader (ICT) as the separation in time/price that is caused by the 1-hour break that occurs each day in the futures market. The opening price of the gap is the very first tick that occurs at the 6:00pm restart; then we look at the 5:00pm closing price of the previous session. This New Day Opening Gap forms every day from Monday to Friday, but it does not include the gap between Friday's close and Sunday's open (because that is instead referred to as a New Week Opening Gap).
This is an example of a New Day Opening Gap (NDOG) for Wednesday, May 22, 2024 in CME_MINI:ES1!
How To Use NDOG
When an NDOG forms, it can be extended into future price action. One way to use these gaps is to look for it to be filled in by price action. Another usage for these gaps is to look for support & resistance to come in at the high and low of these NDOGs (as well as the midpoint).
Disclaimer
This indicator is mainly intended to work for Futures markets, and specifically the following Index Futures markets: E-mini S&P 500 Futures, E-mini NASDAQ-100 Futures, E-mini DOW Futures.
Given that, the indicator still supports various other markets/assets out-of-the-box, such as other types of Futures Markets, Forex markets, Stocks, Options, and more. The main difference will be that other markets may have NDOGs forming at different times, rather than the 5pm-6pm gap that occurs in the Index Futures.
Indicator Features
This indicator is 100% custom-built, not using code from any other existing NDOG plotting indicators. The purpose of this indicator was to overcome many shortcomings from other existing indicators. Therefore, this indicator has many UNIQUE features, such as:
Ability to maintain accuracy of the closing/opening prices even when changing chart settings (e.g., toggling ETH/RTH sessions, toggling BACK-ADJUSTMENT on futures contracts, toggling SETTLEMENT prices, etc.).
Draw up to 25 previous NDOGs, even on ultra-low timeframes like the 1-minute or 1-second chart.
Automatically or manually choose which NDOGs to hide/show on the chart.
Highly customizable, including a different color scheme to easily distinguish between the Current and Previous NDOGs.
Modified price values to correctly display prices that use a format like 109'32 (e.g., Bond Futures or Wheat Futures).
Helpful tooltips to provide more detailed information about the NDOGs or about the current Input Settings.
Error Messages
There are some conditions which can cause the script to fail and display an error message (by clicking the red exclamation mark next to the indicator.)
Error messages:
Use a Standard Chart Type : this will occur when using a non-standard chart such as Heikin Ashi, Renko, Point & Figure, etc.
Use a Daily or Lower Timeframe : this error will appear when using a higher timeframe chart like weekly or monthly, because it can clutter the chart since NDOGs can form every day.
NDOG was not detected : this means that no NDOG was found, for example if the chart did not have enough bars/candles (e.g., some Options markets).
Exceeded the maximum lookback for Bar Replay mode : when using bar replay mode; this can depend on the amount of historical bars available in different account subscription types.
Unable to Activate Bar Replay mode : if the indicator could not be used in Bar Replay mode.
Restart Bar Replay : if the indicator works in Bar Replay but it detected an error that would cause NDOGs to be plotted incorrectly.
NDOG was not detected. Toggle "Error Handling" Option at your own discretion : this is more of a warning message that will appear when the indicator does not detect any actual gap between the days (e.g., Forex markets where it is continuously traded through each day, without any gap forming in between). But the warning can be dismissed by toggling the checkbox at the bottom of the Indicator's Input Settings.
This is an example of what a script error would look like.
Indicator Settings
Most settings are self-explanatory or have a tooltip with information on what the setting does, so this section will only briefly cover the available settings.
The "Extend to End of Week" option is enabled by default, which will extend each NDOG only up to the end of the week that it belongs to. This option can be toggled OFF to automatically extend all NDOGs to the right-most candle on the chart.
Previous NDOGs: Between 1 and 25 previous NDOGs can be displayed. The checkbox can be toggled to quickly hide all previous NDOGs (but the same effect would be reached by setting the value to 0).
Hide Current NDOG: the current NDOG (colored in Green in the example above), can be optionally hidden from being plotted.
These settings are used to customize the visual style of the most recent NDOG (also known as the "Current" NDOG). Note: the exact same set of settings are available for the Previous NDOGs. The text next to each NDOG can be optionally hidden to clean the chart a little.
These are settings to customize the appearance of the Price Table on the right, including the ability to hide it completely.
One of 7 available overlap handling options can be used to filter which NDOGs are plotted on the chart. By default, the "None" option will be selected, meaning that all valid NDOGs are plotted on the chart.
Date Format : select the format of the date that is shown next to each NDOG.
Timezone : choose the timezone for the NDOG closing/opening date-times that are displayed (only in tooltips when you hover over an NDOG label).
NDOG Label : choose the details to display next to each NDOG (e.g., date, or NDOG number, or both).
Price Format : only two options: Auto/Decimal. "Auto" uses custom processing to allow displaying values such as 109'32 for Bond futures.
This option can be toggled to allow displaying NDOGs for markets that may not have an actual gap between days, such as Forex markets, or BTC/USD (which is traded 24/7). Note: this option must be used at your own discretion because the opening/closing times for the NDOGs are not guaranteed to be accurate.
Tooltips
The indicator provides additional details about an NDOG when you hover over a row in the Price Table.
Note: the same information can be found by hovering over the Text Label that is to the right of each NDOG.
Overlap Handling
The tooltip next to "Select a Strategy" in the options will provide details on each overlap handling strategy. Additionally, when a strategy is selected, a new row in the Price Table will appear; hovering over that will show details about the currently selected strategy, as well as any suggestions in case the inputs were invalid. When a strategy hides an NDOG, the number in the Price Table will be replaced with an "Eye" icon, indicating that it is not currently plotted on the chart.
Available strategies are:
Option 1 (Gradients) : select the percentage opacity to shade NDOGs in. The more recent NDOGs will be closer to the maximum opacity defined, while the older NDOGs will appear more transparent, closer to the minimum opacity defined. Note: only affects previous NDOGs, not the current NDOG.
Option 2 (Week Extension) : select the number of weeks to extend each NDOG up to. Note: this will override the "Extend to End of Week" setting, regardless whether it is toggled ON or OFF.
Option 3 (Nested Gaps) : hides nested gaps, i.e., NDOGs that are enclosed within another NDOG. Note: this option is only available when the "Extend to End of Week" setting is disabled .
Option 4 (Intersecting Gaps) : hides intersecting/overlapping gaps, i.e., NDOGs that overlap one another (this may also include, but is not limited to, nested gaps). The drop-down next to this option allows choosing the priority of which NDOGs to hide first. Note: this option is only available when the "Extend to End of Week" setting is disabled .
Option 5 (Gap Width) : the chart will only show NDOGs that have a width between the defined parameters. This can be useful to filter out NDOGs that are deemed "insignificant". For example, the Inner Circle Trader will generally filter out of his analysis any NDOGs that are less than a point (4 ticks) for Index futures.
Option 6 (Close Proximity) : the chart will only show the NDOGs that are within a certain range from the market price. This can be useful when plotting multiple NDOGs while using auto-scaling on the chart. By only showing nearby NDOGs, it will prevent the auto-scaling from having to compress the candles to fit the far-away NDOGs onto the screen.
Option 7 (CSV) : this option is used if none of the others suit you well; it allows specifically choosing which NDOGs to hide or show on the chart.
This is an example that chooses the Overlap Handling Strategy Option 6. Note that in this example, the tooltip in the price table shows a warning that the Input Number should be increased to plot some NDOGs on the chart.
Tips
Chart settings can be toggled to "Scale price chart only" to prevent the auto-scaling of TradingView from compressing the chart if there are NDOGs that are far away from the current market action.
If you change a lot of indicator settings such as NDOG color schemes, you can save the settings as the Default to prevent your settings from resetting the next time you use the indicator.
Anchored Progressive RangeIntroducing a simple script based off of the idea that ranges form from a point of origin that can be measured and produce interesting analysis indicating potential opportunities.
Specifically I use this on daily and weekly anchorage to find mid range retracements once range has developed.
Configure internal multipliers to provide potentially useful measurements between range high and mid point, as well as mid point and range low. By default it's standard .25 based multipliers but one could adjust to fib multipliers such as .615, .65, etc.
Anchored open price is plotted as continuous line as often times reversals will occur and open price will be tested on daily, weekly, monthly timeframes.
Once a bit of range is established and there's a rapid adjustment of range mid up or down, these can signal interesting breakouts. Also areas where the range stays flat due to no new high or low being printed can be indicative of consolidation, etc.
I've tested this with heikin ashi, renko, bars, line and regular candles through various markets such as futures, etfs and stocks and everything appears to anchor correctly, please feedback if experiencing otherwise.
I hope you enjoy this indicator as much as I enjoyed creating it, happy trading!
Volume Spread Analysis [Ahmed]Greetings everyone,
I'm thrilled to present a Pine Script I've crafted for Volume Spread Analysis (VSA) Indicator. This tool is aimed at empowering you to make smarter trading choices by scrutinizing the volume spread across a specified interval.
The script delivers a comparative volume analysis, permitting you to fix the type and length of the moving average. It subsequently delineates the moving average (MA), MA augmented by 1 standard deviation (SD), and MA increased by 2 SD. You can fully personalize the color coding for these echelons.
Volume Spread Analysis is an analytical technique that scrutinizes candles and the volume per candle to predict price direction. It considers the volume per candle, the spread range, and the closing price.
To effectively leverage VSA, you need to adhere to a few steps:
1. Ensure you use candlesticks for trading. Other chart types like line, bar, and renko charts may not yield optimal results.
2. Confirm that your broker provides reliable volume data.
3. Be mindful of the chart's timeframe. Volume analysis may not be effective on very short timeframes such as a minute chart. I recommend using daily, weekly, or monthly charts.
Another tip is to examine the spread between the price bars and the volume bars to discern the trend.
The script not only makes it easier to integrate these principles into your trading but also brings precision and convenience to your analysis.
Please remember to adhere to Tradinview terms of service when using the script. Happy trading!
External Indicator Analysis Overlay | Buy/Sell | HTF Heikin-AshiThis chart overlay offers multiple candlestick display options. The Regular (Japanese) and the Heikin-Ashi candles are well known. The Mari-Ashi (or Renko) option is something special as it should be timeframe independent, so that sideways action should be represented in one candle. That is difficult to realize as an overlay on the normal candlestick structure, but perhaps the chosen implementation is useful nonetheless. The Velocity option is experimental and is designed to show if the price has accelerated too much in a trend direction. In this case, the highs and lows do not reflect the actual highs and lows, but indicate the overshooting velocity. The opening of the candle also depends on the inherent velocity, but the close of the candle is always the actual close. Anyway, it doesn't look very useful, but the option is there.
All options can be applied to higher timeframes. A usable setting is obtained by disabling only the body of the TradingView candles in regular mode and enabling this overlay.
A large part of this overlay consists of buy/sell indication settings. For activation it is necessary to select an external source. For example the “Relative Bi-Directional Volatility Range”, specifically the Trend Shift Signal (TSS). This signal switches from 0 to 1, if the trend becomes bullish or from 0 to -1, if the trend becomes bearish. It will be automatically detected without specifying the Indication Type. Alternatively, the Volatility Moving Average (VMA) would meet the requirements for the Indication Type “Buy = positive | Sell = negative”. The Moving Average Convergence Divergence (MACD) also fulfills these conditions. Another example is to use any Moving Average with the Indication Type “Buy = rising | Sell = falling”. In the chart above the Hull Moving Average (HMA) is used. In addition, it is possible to reverse the signal, so that positive signals become negative and vice versa. The signals will be labeled as Buy or Sell on the chart.
The user can analyze whether the provided signals are good or bad indications for going long or short or simply for rebalancing a portfolio. Therefore, it is possible to set a starting point for the analysis and choose a weighting for the investments from 0% to 100% of the portfolio. To avoid sleepless nights, a very reliable (and conservative) setting seems to be Rebalancing with 50% (very similar to the well-known 60/40 portfolio). The calculation results are shown in a table.
As a small addition there is the possibility to label the peaks by setting the distance between the highs/lows. This will make the quality of the buy and sell signals even more clear.
[Trendycator] Trendycator Trend Following IndicatorThis script proposes a simple and intuitive trend following indicator, better usage on those assets which are sufficiently liquid and don't go through random spikes.
Since it is a trend-following system, it works well during trends only and his intent is to find a primary trend and ride it for as long as possible.
We know that the biggest problem is how to understand if asset is in trend or not: for this purpose, the intuitive colors explained hereafter help Traders to understand when asset is in non trend.
It will never enter on the minimum and will never exit on the maximum but will always try to identify the central part of the trend, maintaining the position until the forces supporting the rise of the stock fail.
Usage details
Color interpretation
Green color mean that asset is in a UP Trend.
Red color mean that asset is in a Down Trend.
Gray color mean that indicator is not able to find any clear trend.
Trendycator use stochastic oscillator, which establish the trend and his strength.
As additional filter as noise removal the stochastic oscillator is smoothened using simple moving average.
Trendycator use as well price swing recognition which identify significant high and significant low breakouts.
When stochastic find trend with strength and significant breakout change color: green for up trend and red for down trend.
This mix of trend-following indicator and breakout system is made to avoid, as much as possible, false signal generated from side movement.
Settings
Trendycator usually doesn’t need to set anything.
This because we believe that the user have to searching for the charts where it works well and never "overfitting" the system on a chart.
Overfitting never work as a long time and in the first step for loosing money.
In Tradingview we decide to let the possibilities to set two parameters: "Period_UP" and "Period_DN".
The reason is because this can be adjusted slightly for testing in intraday, but we recommend to manipulate as less as possible.
Period UP/DN meaning: Period_UP are the number of bars considered for swing high detection and Period_DN is the number of bar that Trendycator use for swing low detection.
Important usage note
Trendycator was born and tested in weekly timeframe and works in daily as well. Intraday charts, normally have high volatility that is the opposite of trend; weekly, or daily bars reduce the noise.
Trendycator is tested, and used, in Etf and stocks.
Trendycator is tested, and used, for long operation only.
Trendycator is not tested in different timeframe from what explained above, or chart type different from bars (eg. Renko or Heikin Ashi).
Trendycator is not tested in instrument different from what listed above: like future or Forex.
Trendycator is not tested for short operation. Normally short have very strong movement in less time that is different from trend following concept.
Entry/Exit recommended filters
Investor and traders are free to use and interpretate Trendycator as they feel more confortable but, we recommend to apply some filters on entry and exit.
As you can see in example, we use a trigger for enter in position (not plotted by this indicator).
The high of first green bar is the trigger level for entry: the long position will be in Buy Stop above this level.
The low of first red bar is the trigger level for exit: the long position will be exit in Stop after this level.
Use this trigger criteria is useful to avoid, once more, the false signal.
Conclusion
Trendycator do not provide any guarantees regarding your ability to obtain results or earn money with our ideas, information, tools or strategies.
Nothing on our content makes any promise or guarantee of future results or earnings.
You alone are responsible for your decisions, actions and results in life, and using our code you agree that you will not attempt to hold us responsible for your decisions, actions or results, at any time, under any circumstances.
Deming Linear Regression [wbburgin]Deming regression is a type of linear regression used to model the relationship between two variables when there is variability in both variables. Deming regression provides a solution by simultaneously accounting for the variability in both the independent and dependent variables, resulting in a more accurate estimation of the underlying relationship. In the hard-science fields, where measurements are critically important to judging the conclusions drawn from data, Deming regression can be used to account for measurement error.
Tradingview's default linear regression indicator (the ta.linreg() function) uses least squares linear regression, which is similar but different than Deming regression. In least squares regression, the regression function minimizes the sum of the squared vertical distances between the data points and the fitted line. This method assumes that the errors or variability are only present in the y-values (dependent variable), and that the x-values (independent variable) are measured without error.
In time series data used in trading, Deming regression can be more accurate than least squares regression because the ratio of the variances of the x and y variables is large. X is the bar index, which is an incrementally-increasing function that has little variance, while Y is the price data, which has extremely high variance when compared to the bar index. In such situations, least squares regression can be heavily influenced by outliers or extreme points in the data, whereas Deming regression is more resistant to such influence.
Additionally, if your x-axis uses variable widths - such as renko blocks or other types of non-linear widths - Deming regression might be more effective than least-squares linear regression because it accounts for the variability in your x-values as well. Additionally, if you are creating a machine-learning model that uses linear regression to filter or extrapolate data, this regression method may be more accurate than least squares.
In contrast to least squares regression, Deming regression takes into account the variability or errors in both the x- and y-values. It minimizes the sum of the squared perpendicular distances between the data points and the fitted line, accounting for both the x- and y-variability. This makes Deming regression more robust in both variables than least squares regression.
Fair Value Gap - FVG - HistogramThis indicator uses a histogram to represent "fair value gaps" ("FVG"). FVG is a popular pattern among modern traders.
This document describes the purpose of the script and discusses the conceptual meaning of "fair value," as well as the connotations attached to it.
█🚀 Based on the previous script - improved clarity
This indicator is a modified version of the "Three Bar Gap (Simple Price Action - with 1 line plot)" indicator, which is also available as open source and can be applied to a chart as a complementary tool along with this indicator.
Differences:
The previous version introduced a "Threshold filter" to reduce the number of lines plotted on charts. This filter introduced two additional parameters for users to consider (ATR length and multiplier). These parameters made the indicator more complicated than intended.
To address this issue of having too many lines in the former version, I proposed a spin-off on this version: It's to consider plotting the magnitude of the FVGs on a histogram instead of using lines on a price chart. In my opinion, a histogram is more suitable for decision-making because it lays out data points side-by-side as bins, which makes comparisons much clearer.
Minor FVGs are expected to have smaller bins compared to their neighboring bins, and in extreme cases, the bins will become seemingly invisible due to the auto-adjusted scale of the y-axis. Therefore, there is no need to filter out any data, and all FVGs can be included in this spin-off version.
█🚀 Candlestick patterns - revisited
This script calculates the displacement of highs and lows over three consecutive bars.
A) Down move: When the high of the recent-confirmed bar is lower than the low of the previous-previous candle.
B) Up move: When the low of the recently-confirmed bar is higher than the high of the previous-previous candle.
█🚀 Parameters
Core Functionality
The purpose of this indicator is to generate bins representing the magnitude of FVGs in the form of a histogram to facilitate the visualization of price movements.
The act of "finding FVGs" does not require any inputs, but users can still customize the colors of the bins to indicate the direction of movement.
Auxiliary functionality: “Key level finder” by searching for large FVGs
The following inputs are optional, in fact, the entire feature can be toggled on/off.
In this example, setting the lookback at 20 means the script will generate a signal if the current histogram bin is taller than all previous bins over the past 20 bars.
█🚀 Applications
Tall histogram bins = key levels .
Traders should observe key levels for entry or exit opportunities.
It is important to note that this indicator was designed for standard time-based charts.
On a separate note, FVGs will not appear in Renko charts with fixed-size bricks. This is because the bricks align with their neighboring bricks. When the bricks are fixed, any displacement between highs and lows within less than or equal to three bars will be zero.
The concept of a "gap" is used to illustrate that price follows a jump-diffusion process, and time intervals can be assigned arbitrarily on the x-axis without needing fixed intervals. This idea was briefly discussed in the previous script's write-up.
█🚀 FAQ: Does it repaint?
No. And please continue reading.
Bins are plotted with a one-bar delay. It only takes one bar for the FVG to become confirmed. Lag is beneficial because it clarifies the need for traders to wait for the bar to close and for the signals to become confirmed before entering or exiting a trade. Experienced traders know that prices tend to retrace, so there is no need to chase. An added bar of delay proves to be useful.
█🚀 Opinion: The term “fair value” can be misleading
Those who come from traditional finance may find the term "fair value gap" somewhat insulting. When encountering the phrase, it can feel like a group of aliens from "Planet Technical Analysis" have intrusively landed on your planet and assertively redefined what "fair value" is supposed to mean.
So, what does "fair value" mean in the realm of technical analysis?
In the world of corporate finance, "fair value" is a subjective estimate of what buyers and sellers are hypothetically willing to pay or accept. Buy-side and sell-side analysts use their own methodologies to determine what constitutes "fair value". These approaches may be based on income, asset, or market comparables. Regardless of the approach used, subjectivity is inherent, and results depend on fundamental data provided by the numbers on financial statements. Valuations are unrelated to candlestick patterns .
When dealing with financial statements, finance professionals who are non-market-participants, such as those working in group reporting practices for reporting issuers, or those hired as external auditors, as required by regulators, may also question what constitutes "fair value". The main concerns always revolve around the assumptions used in valuation models; these are inputs that ultimately require management's judgment, and if not critically questioned, valuations as reported in the statements could end up becoming materially bogus. Both IFRS and U.S. GAAP define "fair value" with the same intended meaning in terms of definitions. We will not delve into the details here. The main point is that "fair value" from a financial reporting perspective has nothing to do with candlesticks .
If a price is already quoted in an actively traded market, you can refer to it to obtain what is known as "mark-to-market". This involves simply referring to the bid or ask price on the reporting date, and you're done - there's no need to read candlesticks !
"Fair value" is a neutral term used by finance professionals in all domains. It is not meant to imply that something is actually "fair." Paying the "fair value" for an asset can still result in overpaying or underpaying for what the asset is worth, depending on different model assumptions. The point is, candlesticks are irrelevant to the analysis of what is considered "fair value" in the realm of traditional finance.
That being said, there is no definitive answer as to why people refer to this pattern as a "fair value gap". It's like one of those oddball interview questions asking you to explain why tennis balls are fuzzy. Whatever answer you give, it's important to note that the subject itself is trivial.
Emphasis of matter on why "fair value" can be misleading
The previous paragraphs were not intended to attack ideas from the realm of technical analysis, nor to assert the true meaning, or lack of meaning, of the term "fair value". Words are constantly evolving. If the term "fair value gap" becomes more widely used to describe the displacement of highs and lows over three bars, then let's call it a "fair value gap".
To be clear, I argue that the term "fair value gap" should not be given a positive connotation. Traders should interpret the word "fair" neutrally. Although these signals occur frequently, if you trade every time there is a signal, you will overtrade and incur astronomical transaction costs over the long run, which can lead to losses.
█🚀 Conclusion:
In the end, what matters is how you apply FVG to trading. As mentioned in the "Applications" section above, traders should look for large FVGs - indicated by tall histogram bins - to identify key levels.
