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Bull Bear Divergence IndicatorFor Constance Brown-like analysis with divergence signals between price and indicator (i.e. stock close / RSI divergence) Using two different lines: an indicator high line for bearish, and an indi low line for bullish divergences For your individual studies, choose your indicator and replace rsi in line 10 with it, any thing else is auto. Script bottom: optional comparison linse addable Note1: The script only shows divergences to recent pivots, not between actual pivot and one "a few pivots ago" Note2: Though reversal predictions with the example of SPLK here are quite good, in general better results are obtained with un-normalized indicators.
Indicatore Pine Script®
di dep0tyoxxx
7
3-Bar-Reversal-Pattern Strategy Backtest This startegy based on 3-day pattern reversal described in "Are Three-Bar Patterns Reliable For Stocks" article by Thomas Bulkowski, presented in January, 2000 issue of Stocks&Commodities magazine. That pattern conforms to the following rules: - It uses daily prices, not intraday or weekly prices; - The middle day of the three-day pattern has the lowest low of the three days, with no ties allowed; - The last day must have a close above the prior day's high, with no ties allowed; - Each day must have a nonzero trading range. Please, use it only for learning or paper trading. Do not for real trading.
Strategia Pine Script®
di HPotter
4
Triple Bollinger BandsI found myself using multiple bollinger bands a lot so I decided to add them all to one script and add the ability to adjust them by 0.2. It has helped me by not taking up as much space in the upper left corner as well as improving my in's and outs of trend continuation trades. If you manage to find a double top at +2 or greater deviation, and with a bearish divergence on the RSI as shown in this picture, GO SHORT SON! This was a fast and easy 35 - 40 pips and if you used your fibonacci for an exit you had little doubt of the final result and could have even been prepared for an immediate reversal knowing you were then at an oversold -2.8 deviation. I could go on and on........
Indicatore Pine Script®
di TimeFliesBuy
8
Outside Reversal SetUpwww.tradingview.com This is an outside reversal set up from Frank Ochoa's book Secrets of a Pivot Boss. He recommends using this in confirmation with Pivots but I guess you can play with any other indicator of your choice. PATTERN PSYCHOLOGY " The power behind this pattern lies in the psychology behind the traders involved in this setup. If you have ever participated in a breakout at support or resistance only to have the market reverse sharply against you, then you are familiar with the market dynamics of this setup . Basically, market participants are testing the waters above resistance or below support to make sure there is no new business to be done at these levels. When no initiative buyers or sellers participate in range extension, responsive participants have all the information theyneed to reverse price back toward a new area of perceived value."
Indicatore Pine Script®
di cristian.d
9
1-2-3 Reversal Strategy This System was created from the Book "How I Tripled My Money In The Futures Market" by Ulf Jensen, Page 183. This is reverse type of strategies. The strategy buys at market, if close price is higher than the previous close during 2 days and the meaning of 9-days Stochastic Slow Oscillator is lower than 50. The strategy sells at market, if close price is lower than the previous close price during 2 days and the meaning of 9-days Stochastic Fast Oscillator is higher than 50.
Indicatore Pine Script®
di HPotter
Reversal off EMA-XsEMA-Xs works mostly on Forex due to the small prices and price fluctuations. It does work on Gold, oddly enough, and some others like UKX 100...but mostly on forex. It doesn't work as well on JPY pairs but occasionally does; the JPY pairs give less signals, but when a JPY pair gives a signal, its a high probability setup. Another script EMA-XL works better on the higher priced instruments like S&P, DJI, OIL, BTC etc. This script will show 3 moving averages: 13, 34, 200 and works on the 5m, 1hr, 4hr, daily charts. Signals "B" or "S" will be on the chart above or below the candles respectively. When to open: The script gives buy and sell signals based on a counter-trend move away from the MA's. When the price rises a specific percent above/below the EMA, it'll give a signal. It's best to take a trade when it gives a cluster of consecutive signals near the same price. If using on the 5m, definitely wait for consecutive signals. Also, use this in conjunction with support and resistance areas. Using with fibs for confirmation really makes this a good tool with high probability: IE, when price hits a fib and the script gives a signal, its a high probability setup. When to close: 1. After a fast move up/down you may use this to counter trade a scalp 10+ pips, but you need to be quick; applies mostly to the 5m chart. 2. If you have the tenacity wait until you see an opposite signal. With this method you may be holding a loosing trade for a while. But what I've noticed is if it trends against you, price usually with come near to the first time it signaled. You may want to stack trades on each cluster of signals. IE first trade is 1000 units, next is 2000 units, etc... then close when prices comes near the first time it signaled. By this time, if you held, you should have profit. This strategy will really test your mental resilience. 3. Wait until it comes back to one of the trendlines; remember this is a counter trend signal so price is moving away from the MA and it always returns to touch one of the MA's...LOL eventually 4. Applying to scalping on the 5m, keep the stops tight because if the instrument trends hard and fast, you'll be upside-down quickly. If you put a lot of time into using this signal generator, you can really make good profit. But with all tools, you need to master it. There are nuances to the simple logic of this script that can be both fun and frustrating. With all endeavors, if you put the time into it, you will reap the rewards. Good luck and let me know if you have any questions/comments.
Indicatore Pine Script®
di shamgar331
Price Heat Meter [ChartPrime]⯁ OVERVIEW Price Heat Meter visualizes where price sits inside its recent range and turns that into an intuitive “temperature” read. Using rolling extremes, candles fade from ❄️ aqua (cold) near the lower bound to 🔥 red (hot) near the upper bound. The tool also trails recent extreme levels, tags unusually persistent extremes with a % “heat” label, and shows a bottom gauge (0–100%) with a live arrow so you can read market heat at a glance. ⯁ KEY FEATURES Rolling Heat Map (0–100%): The script measures where the close sits between the current Lowest Low and Highest High over the chosen Length (default 50). Candles use a two-stage gradient: aqua → yellow (0–50%), then yellow → red (50–100%). This makes “how stretched are we?” instantly visible. Dynamic Extremes with Time Decay: When a new rolling High or Low is set, the script starts a faint horizontal trail at that price. Each bar that passes without a new extreme increases a counter; the line’s color gradually fades over time and fully disappears after ~100 bars, keeping the chart clean. Persistent-Extreme Tags (Reversal Hints): If an extreme persists for 40 bars (i.e., price hasn’t reclaimed or surpassed it), the tool stamps the original extreme pivot with its recorded Heat% at the moment the extreme formed. • Upper extremes print a red % label (possible exhaustion/resistance context). • Lower extremes print an aqua % label (possible exhaustion/support context). Bottom Heat Gauge (0–100% Scale): A compact, gradient bar renders at the bottom center showing the current Heat% with an arrow/label. ❄️ anchors the left (0%), 🔥 anchors the right (100%). The arrow adopts the same candle heat color for consistency. Minimal Inputs, Clear Theme: • Length (lookback window for H/L) • Heat Color set (Cold / Mid / Hot) The defaults give a balanced, legible gradient on most assets/timeframes. Signal Hygiene by Design: The meter doesn’t “call” reversals. Instead, it contextualizes price within its range and highlights the aging of extremes. That keeps it robust across regimes and assets, and ideal as a confluence layer with your existing triggers. ⯁ HOW IT WORKS (UNDER THE HOOD) Range Model: H = Highest(High, Length), L = Lowest(Low, Length). Heat% = 100 × (Close − L) / (H − L). Extreme Tracking & Fade: When High == H , we record/update the current upper extreme; same for Low == L on the lower side. If the extreme doesn’t change on the next bar, a counter increments and the plotted line’s opacity shifts along a 0→100 fade scale (visual decay). 40-Bar Persistence Labels: On the bar after the extreme forms, the code stores the bar_index and the contemporaneous Heat% . If the extreme survives 40 bars, it places a % label at the original pivot price and index—flagging levels that were meaningfully “tested by time.” Unified Color Logic: Both candles and the gauge use the same two-stage gradient (Cold→Mid, then Mid→Hot), so your eye reads “heat” consistently across all elements. ⯁ USAGE Treat >80% as “hot” and <20% as “cold” context; combine with your trigger (e.g., structure, OB, div, breakouts) instead of acting on heat alone. Watch persistent extreme labels (40-bar marks) as reference zones for reaction or liquidity grabs. Use the fading extreme lines as a memory map of where price last stretched—levels that slowly matter less as they decay. Tighten Length for intraday sensitivity or increase it for swing stability. ⯁ WHY IT’S UNIQUE Rather than another oscillator, Price Heat Meter translates simple market geometry (rolling extremes) into a readable temperature layer with time-aware extremes and a synchronized gauge . You get a continuously updated sense of stretch, persistence, and potential reversal context—without clutter or overfitting.
Indicatore Pine Script®
di ChartPrime
Polynomial Regression HeatmapPolynomial Regression Heatmap – Advanced Trend & Volatility Visualizer Overview The Polynomial Regression Heatmap is a sophisticated trading tool designed for traders who require a clear and precise understanding of market trends and volatility. By applying a second-degree polynomial regression to price data, the indicator generates a smooth trend curve, augmented with adaptive volatility bands and a dynamic heatmap. This framework allows users to instantly recognize trend direction, potential reversals, and areas of market strength or weakness, translating complex price action into a visually intuitive map. Unlike static trend indicators, the Polynomial Regression Heatmap adapts to changing market conditions. Its visual design—including color-coded candles, regression bands, optional polynomial channels, and breakout markers—ensures that price behavior is easy to interpret. This makes it suitable for scalping, swing trading, and longer-term strategies across multiple asset classes. How It Works The core of the indicator relies on fitting a second-degree polynomial to a defined lookback period of price data. This regression curve captures the non-linear nature of market movements, revealing the true trajectory of price beyond the distortions of noise or short-term volatility. Adaptive upper and lower bands are constructed using ATR-based scaling, surrounding the regression line to reflect periods of high and low volatility. When price moves toward or beyond these bands, it signals areas of potential overextension or support/resistance. The heatmap colors each candle based on its relative position within the bands. Green shades indicate proximity to the upper band, red shades indicate proximity to the lower band, and neutral tones represent mid-range positioning. This continuous gradient visualization provides immediate feedback on trend strength, market balance, and potential turning points. Optional polynomial channels can be overlaid around the regression curve. These three-line channels are based on regression residuals and a fixed width multiplier, offering additional reference points for analyzing price deviations, trend continuation, and reversion zones. Signals and Breakouts The Polynomial Regression Heatmap includes statistical pivot-based signals to highlight actionable price movements: Buy Signals – A triangular marker appears below the candle when a pivot low occurs below the lower regression band. Sell Signals – A triangular marker appears above the candle when a pivot high occurs above the upper regression band. These markers identify significant deviations from the regression curve while accounting for volatility, providing high-quality visual cues for potential entry points. The indicator ensures clarity by spacing markers vertically using ATR-based calculations, preventing overlap during periods of high volatility. Users can rely on these signals in combination with heatmap intensity and regression slope for contextual confirmation. Interpretation Trend Analysis : The slope of the polynomial regression line represents trend direction. A rising curve indicates bullish bias, a falling curve indicates bearish bias, and a flat curve indicates consolidation. Steeper slopes suggest stronger momentum, while gradual slopes indicate more moderate trend conditions. Volatility Assessment : Band width provides an instant visual measure of market volatility. Narrow bands correspond to low volatility and potential consolidation, whereas wide bands indicate higher volatility and significant price swings. Heatmap Coloring : Candle colors visually represent price position within the bands. This allows traders to quickly identify zones of bullish or bearish pressure without performing complex calculations. Channel Analysis (Optional) : The polynomial channel defines zones for evaluating potential overextensions or retracements. Price interacting with these lines may suggest areas where mean-reversion or trend continuation is likely. Breakout Signals : Buy and Sell markers highlight pivot points relative to the regression and volatility bands. These are statistical signals, not arbitrary triggers, and should be interpreted in context with trend slope, band width, and heatmap intensity. Strategy Integration The Polynomial Regression Heatmap supports multiple trading approaches: Trend Following – Enter trades in the direction of the regression slope while using the heatmap for momentum confirmation. Pullback Entries – Use breakouts or deviations from the regression bands as low-risk entry points during trend continuation. Mean Reversion – Price reaching outer channel boundaries can indicate potential reversal or retracement opportunities. Multi-Timeframe Alignment – Overlay on higher and lower timeframes to filter noise and improve entry timing. Stop-loss levels can be set just beyond the opposing regression band, while take-profit targets can be informed by the distance between the bands or the curvature of the polynomial line. Advanced Techniques For traders seeking greater precision: Combine the Polynomial Regression Heatmap with volume, momentum, or volatility indicators to validate signals. Observe the width and slope of the regression bands over time to anticipate expanding or contracting volatility. Track sequences of breakout signals in conjunction with heatmap intensity for systematic trade management. Adjusting regression length allows customization for different assets or timeframes, balancing responsiveness and smoothing. The combination of polynomial curve, adaptive bands, heatmap, and optional channels provides a comprehensive statistical framework for informed decision-making. Inputs and Customization Regression Length – Determines the number of bars used for polynomial fitting. Shorter lengths increase responsiveness; longer lengths improve smoothing. Show Bands – Toggle visibility of the ATR-based regression bands. Show Channel – Enable or disable the polynomial channel overlay. Color Settings – Customize bullish, bearish, neutral, and accent colors for clarity and visual preference. All other internal parameters are fixed to ensure consistent statistical behavior and minimize potential misconfiguration. Why Use Polynomial Regression Heatmap The Polynomial Regression Heatmap transforms complex price action into a clear, actionable visual framework. By combining non-linear trend mapping, adaptive volatility bands, heatmap visualization, and breakout signals, it provides a multi-dimensional perspective that is both quantitative and intuitive. This indicator allows traders to focus on execution, interpret market structure at a glance, and evaluate trend strength, overextensions, and potential reversals in real time. Its design is compatible with scalping, swing trading, and long-term strategies, providing a robust tool for disciplined, data-driven trading.
Indicatore Pine Script®
di BOSWaves
AltCoin & MemeCoin Index Correlation [Eddie_Bitcoin]🧠 Philosophy of the Strategy The AltCoin & MemeCoin Index Correlation Strategy by Eddie_Bitcoin is a carefully engineered trend-following system built specifically for the highly volatile and sentiment-driven world of altcoins and memecoins. This strategy recognizes that crypto markets—especially niche sectors like memecoins—are not only influenced by individual price action but also by the relative strength or weakness of their broader sector. Hence, it attempts to improve the reliability of trading signals by requiring alignment between a specific coin’s trend and its sector-wide index trend. Rather than treating each crypto asset in isolation, this strategy dynamically incorporates real-time dominance metrics from custom indices (OTHERS.D and MEME.D) and combines them with local price action through dual exponential moving average (EMA) crossovers. Only when both the asset and its sector are moving in the same direction does it allow for trade entries—making it a confluence-based system rather than a single-signal strategy. It supports risk-aware capital allocation, partial exits, configurable stop loss and take profit levels, and a scalable equity-compounding model. ✅ Why did I choose OTHERS.D and MEME.D as reference indices? I selected OTHERS.D and MEME.D because they offer a sector-focused view of crypto market dynamics, especially relevant when trading altcoins and memecoins. 🔹 OTHERS.D tracks the market dominance of all cryptocurrencies outside the top 10 by market cap. This excludes not only BTC and ETH, but also major stablecoins like USDT and USDC, making it a cleaner indicator of risk appetite across true altcoins. 🔹 This is particularly useful for detecting "Altcoin Season"—periods where capital rotates away from Bitcoin and flows into smaller-cap coins. A rising OTHERS.D often signals the start of broader altcoin rallies. 🔹 MEME.D, on the other hand, captures the speculative behavior of memecoin segments, which are often driven by retail hype and social media activity. It's perfect for timing momentum shifts in high-risk, high-reward tokens. By using these indices, the strategy aligns entries with broader sector trends, filtering out noise and increasing the probability of catching true directional moves, especially in phases of capital rotation and altcoin risk-on behavior. 📐 How It Works — Core Logic and Execution Model At its heart, this strategy employs dual EMA crossover detection—one pair for the asset being traded and one pair for the selected market index. A trade is only executed when both EMA crossovers agree on the direction. For example: Long Entry: Coin's fast EMA > slow EMA and Index's fast EMA > slow EMA Short Entry: Coin's fast EMA < slow EMA and Index's fast EMA < slow EMA You can disable the index filter and trade solely based on the asset’s trend just to make a comparison and see if improves a classic EMA crossover strategy. Additionally, the strategy includes: - Adaptive position sizing, based on fixed capital or current equity (compound mode) - Take Profit and Stop Loss in percentage terms - Smart partial exits when trend momentum fades - Date filtering for precise backtesting over specific timeframes - Real-time performance stats, equity tracking, and visual cues on chart ⚙️ Parameters & Customization 🔁 EMA Settings Each EMA pair is customizable: Coin Fast EMA: Default = 47 Coin Slow EMA: Default = 50 Index Fast EMA: Default = 47 Index Slow EMA: Default = 50 These control the sensitivity of the trend detection. A wider spread gives smoother, slower entries; a narrower spread makes it more responsive. 🧭 Index Reference The correlation mechanism uses CryptoCap sector dominance indexes: OTHERS.D: Dominance of all coins EXCLUDING Top 10 ones MEME.D: Dominance of all Meme coins These are dynamically calculated using: OTHERS_D = OTHERS_cap / TOTAL_cap * 100 MEME_D = MEME_cap / TOTAL_cap * 100 You can select: Reference Index: OTHERS.D or MEME.D Or disable the index reference completely (Don't Use Index Reference) 💰 Position Sizing & Risk Management Two capital allocation models are supported: - Fixed % of initial capital (default) - Compound profits, which scales positions as equity grows Settings: - Compound profits?: true/false - % of equity: Between 1% and 200% (default = 10%) This is critical for users who want to balance growth with risk. 🎯 Take Profit / Stop Loss Customizable thresholds determine automatic exits: - TakeProfit: Default = 99999 (disabled) - StopLoss: Default = 5 (%) These exits are percentage-based and operate off the entry price vs. current close. 📉 Trend Weakening Exit (Scale Out) If the position is in profit but the trend weakens (e.g., EMA color signals trend loss), the strategy can partially close a configurable portion of the position: - Scale Position on Weak Trend?: true/false - Scaled Percentage: % to close (default = 65%) This feature is useful for preserving profits without exiting completely. 📆 Date Filter Useful for segmenting performance over specific timeframes (e.g., bull vs bear markets): - Filter Date Range of Backtest: ON/OFF - Start Date and End Date: Custom time range OTHER PARAMETERS EXPLANATION (Strategy "Properties" Tab): - Initial Capital is set to 100 USD - Commission is set to 0.055% (The ones I have on Bybit) - Slippage is set to 3 ticks - Margin (short and long) are set to 0.001% to avoid "overspending" your initial capital allocation 📊 Visual Feedback and Debug Tools 📈 EMA Trend Visualization The slow EMA line is dynamically color-coded to visually display the alignment between the asset trend and the index trend: Lime: Coin and index both bullish Teal: Only coin bullish Maroon: Only index bullish Red: Both bearish This allows for immediate visual confirmation of current trend strength. 💬 Real-Time PnL Labels When a trade closes, a label shows: Previous trade return in % (first value is the effective PL) Green background for profit, Red for losses. 📑 Summary Table Overlay This table appears in a corner of the chart (user-defined) and shows live performance data including: Trade direction (yellow long, purple short) Emojis: 💚 for current profit, 😡 for current loss Total number of trades Win rate Max drawdown Duration in days Current trade profit/loss (absolute and %) Cumulative PnL (absolute and %) APR (Annualized Percentage Return) Each metric is color-coded: Green for strong results Yellow/orange for average Red/maroon for poor performance You can select where this appears: Top Left Top Right Bottom Left Bottom Right (default) 📚 Interpretation of Key Metrics Equity Multiplier: How many times initial capital has grown (e.g., “1.75x”) Net Profit: Total gains including open positions Max Drawdown: Largest peak-to-valley drop in strategy equity APR: Annualized return calculated based on equity growth and days elapsed Win Rate: % of profitable trades PnL %: Percentage profit on the most recent trade 🧠 Advanced Logic & Safety Features 🛑 “Don’t Re-Enter” Filter If a trade is closed due to StopLoss without a confirmed reversal, the strategy avoids re-entering in that same direction until conditions improve. This prevents false reversals and repetitive losses in sideways markets. 🧷 Equity Protection No new trades are initiated if equity falls below initial_capital / 30. This avoids overleveraging or continuing to trade when capital preservation is critical. Keep in mind that past results in no way guarantee future performance. Eddie Bitcoin
Strategia Pine Script®
di Eddie_Bitcoin
Pasrsifal.RegressionTrendStateSummary The Parsifal.Regression.Trend.State Indicator analyzes the leading coefficients of linear and quadratic regressions of price (against time). It also considers their first- and second-order changes. These features are aggregated into a Trend-State background, shown as a gradient color. In addition, the indicator generates fast and slow signals that can be used as potential entry- or exit triggers. This tool is designed for advanced trend-following strategies, leveraging information from multiple trendline features. Background Trendlines provide insight into the state of a trend or the “trendiness” of a price process. While moving averages or pivot-based lines can serve as envelopes and breakout levels, they are often too lagging for swing traders, who need tools that adapt more closely to price swings, ideally using trendlines, around which the price process swings continuously. Regression lines address this by cutting directly through the data, making them a natural anchor for observing how price winds around a central trendline within a chosen lookback period. Regression Trendlines • Linear Regression: o Minimizes distance to all closing values over the lookback period. o The slope represents the short-term linear trend. o The change of slope indicates trend acceleration or deceleration. o Linear regression lags during phases of rapid market shifts. • Quadratic Regression: o Fits a second-degree polynomial to minimize deviation from closing prices. o The convexity term (leading coefficient) reflects curvature:  Positive convexity → accelerating uptrend or fading downtrend.  Negative convexity → accelerating downtrend or fading uptrend. o The change of convexity detects early shifts in momentum and often reacts faster than slope features. Features Extracted The indicator evaluates six features: • Linear features: slope, first derivative of slope, second derivative of slope. • Quadratic features: convexity term, first derivative of the convexity term, second derivative of the convexity term. • Linear features: capture broad, background trend behavior. • Quadratic features: detect deviations, accelerations, and smaller-scale dynamics. Quadratic terms generally react first to market changes, while linear terms provide stability and context. Dynamics of Market Moves as seen by linear and quadratic regressions • At the start of a rapid move: The change of convexity reacts first, capturing the shift in dynamics before other features. The convexity term then follows, while linear slope features lag further behind. Because convexity measures deviation from linearity, it reflects accelerating momentum more effectively than slope. • At the end of a rapid move: Again, the change of convexity responds first to fading momentum, signaling the transition from above-linear to below-linear dynamics. Even while a strong trend persists, the change of convexity may flip sign early, offering a warning of weakening strength. The convexity term itself adjusts more slowly but may still turn before the price process does. Linear features lag the most, typically only flipping after price has already reversed, thereby smoothing out the rapid, more sensitive reactions of quadratic terms. ________________________________________ Parsifal Regression.Trend.State Method 1. Feature Mapping: Each feature is mapped to a range between -1 and 1, preserving zero-crossings (critical for sign interpretation). 2. Aggregation: A heuristic linear combination*) produces a background information value, visualized as a gradient color scale: o Deep green → strong positive trend. o Deep red → strong negative trend. o Yellow → neutral or transitional states. 3. Signals: o Fast signal (oscillator): ranges from -1 to 1, reflecting short-term trend state. o Slow signal (smoothed): moving average of the fast signal. o Their interactions (crossovers, zero-crossings) provide actionable trading triggers. How to Use The Trend-State background gradient provides intuitive visual feedback on the aggregated regression features (slope, convexity, and their changes). Because these features reflect not only current trend strength but also their acceleration or deceleration, the color transitions help anticipate evolving market states: • Solid Green: All features near their highs. Indicates a strong, accelerating uptrend. May also reflect explosive or hyperbolic upside moves (including gaps). • Fading Solid Green: A recently strong uptrend is losing momentum. Price may shift into a slower uptrend, consolidation, or even a reversal. • Fading Green → Yellow: Often appears as a dirty yellow or a rapidly mixing pattern of green and red. Signals that the uptrend is weakening toward neutrality or beginning to turn negative. • Yellow → Deepening Red: Two possible scenarios: o Coming from a strong uptrend → suggests a sharp fade, though the trend may still technically be up. o Coming from a weaker uptrend or sideways market → suggests the start of an accelerating downtrend. • Solid Red: All features near their lows. Indicates a strong, accelerating downtrend. May also reflect crash-type conditions or downside gaps. • Fading Solid Red: A recently strong downtrend is losing strength. Market may move into a slower decline, consolidation, or early reversal upward. • Fading Red → Yellow : The downtrend is weakening toward neutral, with potential for a bullish shift. • Yellow → Increasing Green: Two possible scenarios: o Coming from a strong downtrend, it reflects a sharp fade of bearish momentum, though the market may still technically be trending down. o Coming from a weaker downtrend or sideways movement, it suggests the start of an accelerating uptrend. Note: Market evolution does not always follow this neat “color cycle.” It may jump between states, skip stages, or reverse abruptly depending on market conditions. This makes the background coloring particularly valuable as a contextual map of current and evolving price dynamics. Signal Crossovers: Although the fast signal is very similar (but not identical) to the background coloring, it provides a numerical representation indicating a bullish interpretation for rising values and bearish for falling. o High-confidence entries:  Fast signal rising from < -0.7 and crossing above the slow signal → potential long entry.  Fast signal falling from > +0.7 and crossing below the slow signal → potential short entry. o Low-confidence entries:  Crossovers near zero may still provide a valid trigger but may be noisy and should be confirmed with other signals. o Zero-crossings:  Indicate broader state changes, useful for conservative positioning or option strategies. For confirmation of a Fast signal 0-crossing, wait for the Slow signal to cross as well. ________________________________________ *) Note on Aggregation While the indicator currently uses a heuristic linear combination of features, alternatives such as Principal Component Analysis (PCA) could provide a more formal aggregation. However, while in the absence of matrix algebra, the required eigenvalue decomposition can be approximated, its computational expense does not justify the marginal higher insight in this case. The current heuristic approach offers a practical balance of clarity, speed, and accuracy.
Indicatore Pine Script®
di parsifaltrading
Mean Reversion Indictor, Based on Standard Deviations Description: The Reversal Candle Mean Reversion Indicator is designed for traders seeking to identify potential reversal points in the market based on key price action and volatility. This indicator combines price action analysis (sweeping prior highs or lows) with mean reversion theory, highlighting opportunities where the price tests or touches a moving average's standard deviation bands. By focusing on these moments of price extremes, the indicator helps traders spot bullish and bearish reversal signals when the price retraces from volatile movements. These conditions often signal a return to the mean—an ideal setup for reversal traders who thrive on fading exaggerated price moves. How It Works: 1. Price Action Reversal Signal: * Bullish Reversal: The indicator flags a bullish signal when the current candle's low sweeps the prior candle's low, and the candle closes higher than the prior candle's close. * Bearish Reversal: The indicator flags a bearish signal when the current candle's high sweeps the prior candle's high, and the candle closes lower than the prior candle's close. 2. Mean Reversion Confirmation: * Mean Reversion Signal is triggered when the price touches or tests the upper or lower bands, calculated using a user-selected moving average (SMA, EMA, WMA, VWMA, or Hull MA) and standard deviation. * The indicator combines price action and volatility, providing stronger reversal signals when the price reaches an extreme distance from the moving average. 3. Customization Options: * Moving Average Type: Choose from SMA, EMA, WMA, VWMA, or Hull MA. * Moving Average Length: Adjust the length of the moving average (default: 20). * Standard Deviation Multiplier: Set the number of standard deviations for the volatility bands (default: 2.0). * Custom Candle Colors: Choose custom colors for bullish and bearish reversal candles to easily spot signals. How to Use for Trading Reversals: 1. Identify Extremes: * Watch for candles where the price tests or touches the standard deviation bands. These are key moments when the price has moved significantly from the moving average, indicating a potential overbought or oversold condition. 2. Look for Reversals: * When the price tests a band and simultaneously forms a bullish reversal pattern (sweeping the prior low and closing higher), it signals a potential mean reversion to the upside. * When the price tests a band and forms a bearish reversal pattern (sweeping the prior high and closing lower), it signals a potential mean reversion to the downside. 3. Entry Points: * Long Trades: Enter a long trade after a bullish signal appears (green candle) near the lower band, indicating a likely price reversal back towards the mean. * Short Trades: Enter a short trade after a bearish signal appears (red candle) near the upper band, indicating a likely price pullback. 4. Exit Strategy: * Set a profit target at the moving average (the mean) or a specific price level based on your strategy. * Consider using a trailing stop to capture additional profit in case of a stronger reversal beyond the mean. 5. Risk Management: * Place stops just below the low of the bullish reversal candle or just above the high of the bearish reversal candle to manage risk efficiently.
Indicatore Pine Script®
di thinkCNE