[Tradevietstock] Market Trend Detector_Pulse CrafterBest technical indicator to detect market trend- Pulse Crafter
Hello folks, it's Tradevietstock again! Today, I will introduce you to Pulse Crafter Indicator , which can help you identify market cycle and find your best entry/exit effectively.
i. Overview
1. What is Market Trend Detector_ Pulse Crafter?
Market Trend Detector_ Pulse Crafter is a robust TradingView indicator built to analyze market trends and deliver actionable insights across multiple asset classes. Packed with tools like Bollinger Bands, Ichimoku Cloud, customizable Moving Averages, the Tradevietstock Super HMA, and Beta Volatility Detection, it’s a comprehensive solution for traders seeking clarity in complex markets.
2. The Logic Behind
The market is highly unpredictable, and many traders may not possess advanced skills in data analysis or quantitative techniques. To address this, I developed an indicator that combines well-known trend-detection tools with enhanced mathematical functions for improved precision.
For example, I customized the Bollinger Bands by adjusting their color scheme to better reflect short-term trends. I also enhanced the widely-used Ichimoku Cloud indicator by adding a gradient color effect, making market trends more visually intuitive and easier to interpret. These thoughtful visual adjustments—built upon established technical analysis principles—help transform basic indicators into a more accessible and visually compelling toolset for traders.
In addition, the system includes a flexible combination of moving averages. Users can seamlessly switch between SMA (Simple Moving Average) and EMA (Exponential Moving Average) based on their preferences or trading strategy. This set includes six different moving averages, each with full monitoring capabilities for comprehensive trend tracking.
a. Bollinger Bands with display adjustment
Bollinger Bands can be used in trading to identify volatility, trend strength, and potential reversal points. When the price consistently touches or rides the upper band, it signals strong upward momentum, while riding the lower band indicates a strong downtrend. A common strategy is to use the middle band (a 20-period simple moving average) as dynamic support or resistance during trends. Another powerful setup is the Bollinger Band Squeeze, which occurs when the bands contract tightly—signaling a period of low volatility.
This often precedes a breakout; if the price breaks above the upper band with strong volume, it may suggest a buying opportunity, while a break below the lower band may indicate a potential short position. Traders can also watch for price to revert to the mean after touching the outer bands—especially in a ranging market—using the middle band as a target for profit-taking. However, it's essential to confirm these signals with other indicators or price action to reduce the risk of false entries. Some notable enhancements include the custom color settings, which help traders quickly identify short-term trends. A red band indicates a bearish trend, while a green band suggests a bullish trend. This visual cue allows traders to align their Buy and Sell decisions more effectively with the prevailing market direction shown by the indicator.
b. Ichimoku Clouds and the adjustment of colors
To use the Ichimoku Cloud effectively in trading, start by identifying the overall market trend. When the price is above the cloud, it's considered an uptrend; when below, it's a downtrend; and when it's inside the cloud, the market is likely ranging or neutral.
For a buy signal, traders typically look for the price to break above the cloud, the Tenkan-sen (conversion line) to cross above the Kijun-sen (base line), and the Chikou Span (lagging line) to be positioned above the price and the cloud—these conditions together signal strong bullish momentum. For a sell signal, the opposite applies: price breaks below the cloud, the Tenkan-sen crosses below the Kijun-sen, and the Chikou Span is below the price and cloud. Stop-losses are often placed just outside the opposite edge of the cloud, and traders may use the Kijun-sen as a dynamic trailing stop to lock in profits while riding the trend. It’s important to avoid trading when the price is inside the cloud, as this suggests indecision or a lack of clear direction.
c. Moving Average lines
With the Market Trend Detector_Pulse Crafter Indicator , traders have access to a flexible set of six Moving Averages, with the ability to switch between SMA (Simple Moving Average) and EMA (Exponential Moving Average) options. One of the most common strategies involving moving averages is the crossover technique, where a shorter-period MA crosses above (bullish signal) or below (bearish signal) a longer-period MA. While this strategy is widely used, it's important to note that it can sometimes produce false signals or delayed entries, leading to potential losses—especially in choppy markets. Therefore, I recommend that beginners go beyond just the crossover method and explore additional applications of moving averages. For instance, moving averages can serve as dynamic support and resistance levels, or be used as a statistical benchmark in more advanced strategies, helping traders gauge overall market momentum and make better-informed decisions.
d. Super HMA by Tradevietstock
The Super HMA (Hull Moving Average) in this script is particularly special due to its versatility, enhanced responsiveness, and built-in trend visualization features. Unlike the standard HMA, this implementation allows users to choose from three different variants—HMA, THMA (Triple Hull Moving Average), and EHMA (Exponential Hull Moving Average)—each offering a unique level of sensitivity and smoothing based on their internal weighting formulas.
This flexibility enables traders to adapt the moving average behavior to fit various market conditions or personal strategy preferences. The logic behind the HMA is designed to reduce lag while maintaining a smooth curve by using a combination of weighted moving averages. Specifically, it doubles the WMA of a shorter period, subtracts the WMA of a longer period, and then applies a final smoothing step using the square root of the length. On top of that, the script includes dynamic trend coloring, where the HMA line changes color based on its slope, visually indicating bullish or bearish momentum. This is further enhanced by the ribbon-style plotting and optional ATR-based bands, which highlight volatility zones and help identify strong trend conditions, making the HMA not just a trend filter but a visually intuitive trading tool.
e. True Range Bands and Beta Volatility
This is the most important feature in the entire script. I built it to better detect market trends and capture decisive movements that could signal either a reversal or a strong confirmation.
The True Range Band is a dynamic indicator built on the Average True Range (ATR), designed to adapt to market volatility in real time. Unlike traditional indicators that use static ranges or fixed values, the True Range Band adjusts its upper and lower limits based on recent market activity. It wraps around a Hull Moving Average (HMA), expanding during high volatility and tightening during quiet periods. This makes it particularly useful for identifying trend strength, breakout opportunities, and potential reversal zones. Because it reacts to the intensity of market movement, traders can use it to fine-tune their entry and exit points with greater precision than with standard tools like Bollinger Bands.
The Beta Volatility Detection feature adds another layer of sophistication by incorporating a statistical approach to measuring how much an asset moves in relation to a broader market index, like the S&P 500. This is done by calculating the beta coefficient over a specified lookback period, revealing whether an asset is trending more aggressively than the market itself. When beta exceeds a certain threshold, the system highlights it visually, signaling a strong market trend or deviation. This helps traders stay aligned with momentum-driven movements and avoid false signals that more rigid indicators might miss.
II. How to Use and Trade with the Trend
1. Setting Up
There are two core setups available for traders, but let’s start with the one I personally use the most:
a. Default Setting (My Go-To Setup)
In the Default setting, we activate the True Range Bands, the 250 and 100 Simple Moving Averages (SMA), and Beta Volatility Detection. This is my preferred configuration, and for good reason.
Unlike traditional strategies that rely heavily on moving average crossovers, I use moving averages purely as statistical reference points. According to Tradevietstock's framework, the SMA 250 represents the long-term trend. Every time the price touches or reacts to this line, it means something—it’s not random. It’s a statistically significant moment, and that's where we pay close attention.
The True Range Bands are the star of this setup. They’re designed to adapt to volatility and highlight moments when the price breaks out of its recent range. If the price pushes above or below these bands, it often signals one of two things: either a reversal of the previous trend or a strong confirmation that the current trend still has fuel. Either way, these are decision points.
Then there’s Beta Volatility, which helps us read the pulse of the market. When beta spikes beyond our set threshold, it tells us that the asset is diverging from the broader market with strength—that’s exactly the kind of action we want. On the other hand, flat, low-volatility conditions are where trades go to die. We don’t trade in sideways markets. We wait for volatility, because we trade the trend, not the noise.
b. Alternate Setting with Basic Indicators (Beginner-Friendly, Still Powerful)
While this isn’t my primary setup, it’s still extremely useful—especially for newer traders who haven’t yet developed statistical techniques or quantitative experience. Think of this as the go-to mode for beginners who are still getting familiar with trend detection tools.
In this setup, you’ll be working with Bollinger Bands, Ichimoku Clouds, and Moving Average strategies. These are foundational indicators that have stood the test of time. They’re visually intuitive and easy to interpret, making them perfect for anyone still building their trading instincts.
Bollinger Bands help you understand volatility and identify price extremes. When the price touches or moves outside the bands, it can signal potential reversals or the continuation of a breakout.
Ichimoku Clouds offer a full-picture trend framework—support, resistance, momentum, and even future projections—all in one. It's a bit complex at first glance, but once you get used to it, it’s a powerful all-in-one tool.
Moving Averages (like the 10, 50, 100, or 200 SMA/EMA) let you track trend direction and strength over various timeframes. While I personally don’t trade off MA crossovers, they’re still valuable for understanding the market’s broader structure.
This setup is less about statistical modeling and more about building good habits: watching trend alignment, understanding support/resistance zones, and staying on the right side of momentum. If you’re just starting out, it’s a solid, practical foundation that can take you far.
2. Trading strategy according to each set up
a. Default Mode
With my go-to setup, we focus heavily on price breakouts and the background color, which signals high volatility in the market. These are the moments when the market speaks loudest—either a trend is about to explode or reverse sharply. But there’s another key piece we watch closely: the distance between the current price and the 250-day moving average (SMA 250). This gap isn’t just a visual—it's a risk gauge.
The larger the gap between price and the 250-day moving average (SMA 250), the higher the risk—especially for newcomers. When price stretches too far above this long-term average, it often signals overextension. A sharp spike above the 250MA isn’t a green light to buy—it’s usually a warning. It can indicate that the market is overheating, often driven by FOMO and greed, not fundamentals. That’s the moment to consider taking profits, scaling out, or even fully cashing out, because these parabolic moves frequently mark a market top.
Recognizing these extremes helps you avoid chasing hype and getting trapped in the inevitable pullback. A perfect example is TSLA, which was recently trading nearly 94% above its 250-day moving average. That kind of distance is not a smart entry—it’s a caution flag. And this is exactly why I treat the 250MA as a benchmark, not a signal. It’s a context tool that helps you understand when the market is out of balance, not something to blindly trade off of.
Now let’s apply another part of the Default Mode: breakouts and volatility. When price breaks above the True Range Bands and then crosses above the SMA250, it’s a strong bullish signal. This combo often confirms a trend reversal from a bear market. That’s the perfect moment to BUY.
This strategy helps us capture both the right timing and price zone for entering a new bull market. Take the example we used earlier—the stock doubled after the initial buy, perfectly aligning with the breakout signals from this indicator.
Furthermore, avoiding flat markets is essential—especially in the CFD market, where no trend means no trade. This is where Beta Volatility becomes critical. It helps us identify whether we’re in a bull or bear phase, so we can position ourselves early and ride the wave ahead. Once the trend is confirmed, we use the other tools in this strategy—like True Range Bands and SMA benchmarks—to catch the right signals and execute high-probability trades.
Example: With AMZN, we saw the price break below the True Range Bands—an early bearish signal. This was followed by a sharp drop that pushed the price below the 250-day moving average (SMA250), all during a period of high volatility. Together, these signs confirm a strong bearish trend in AMZN, indicating that the stock has entered a bear market phase.
=> With this Default Mode strategy—built on True Range Bands, Beta Volatility, and the SMA250—we can easily identify the trend and time our entries and exits with precision.
✅ Buy/Entry Signals: Breakout above True Range Bands + Breakout above SMA250 + High Volatility (confirmed by Beta Volatility)
This combo signals strong momentum and a trend shift—ideal for entry.
❌ Sell/Exit Signals: Breakout below True Range Bands + Breakout below SMA250 + High Volatility (confirmed by Beta Volatility)
This combination signals strong downside momentum and potential trend reversal—ideal for exiting or shorting.
b. Basic Strategy for Newbies
Buy/Entry Signals
As I’ve mentioned before, we only trade when there’s a trend—no trend, no trade. In this basic strategy, a bullish signal begins when the Bollinger Bands turn green, indicating upward momentum. But we don’t rely on that alone. We wait for additional confirmation, such as a shorter moving average crossing above a longer moving average, which signals trend strength and continuation.
For example, I applied this setup with LMT (Lockheed Martin). After the Bollinger Bands turned green and the moving averages crossed bullishly, I entered the trade. The result? LMT rose by around 15%—a solid move confirmed by simple, beginner-friendly indicators.
Sell/Exit Signals
Conversely, for sell or exit signals, we look for the Bollinger Bands to turn red, indicating bearish momentum. We also wait for the shorter moving average to cross below the longer one, confirming a downtrend. Additionally, price should break below key support levels or moving averages to validate the breakout.
For extra confirmation, we can use Ichimoku Clouds. The larger the cloud, the stronger the trend. Its color also reflects trend strength, making it a useful tool to support the trading signals mentioned above. A large, bold green cloud indicates a strong bull market. The size and intensity of the color reflect strong momentum and trend confidence, signaling that buyers are firmly in control.
During a major trend, minor correction waves are normal. To determine whether it's just a small pullback or a true reversal, watch the size of the Ichimoku cloud and the direction and color of the Super HMA. If the HMA changes color and the correction cloud begins to grow significantly, that's a warning sign of a potential reversal. In this case, you should strongly consider exiting the trade, or at the very least, adjust your position and tighten your risk management to protect your account.
The Super HMA acts as a short-term trend signal, allowing you to trade in sync with the current market direction. It’s a flexible strategy that adapts as the trend evolves, but this flexibility also means that minor correction waves can affect your profits, since your positions adjust frequently.
When the HMA turns green and price aligns with its direction, it’s a strong sign to hold your position. However, if price breaks below the HMA, that’s your exit signal. At this point, you should turn to other indicators—like the Ichimoku Cloud—for confirmation before re-entering. For example, if the price falls into a large green cloud, it likely indicates a minor correction rather than a full reversal. In that case, it may be a solid opportunity to buy the dip, just as demonstrated in the example below.
iii. Optimal Use by Market Type
Here’s how we suggest using Pulse Crafter depending on what you trade:
Stocks: Best used on the Daily or Weekly chart for swing trades.
Cryptocurrency: Works well on BTC, ETH, or major altcoins using Daily and Weekly charts. Great for catching larger trend reversals.
CFDs and Forex: QFI is built for higher timeframes (H4, D1, W1), where it produces cleaner and more reliable signals.
Best Ways to Use It
🟢 Stocks
Works well on Weekly and Daily charts for swing entries
🟡 Crypto
Works best on Weekly and Daily charts
Good for trend-catching on BTC, ETH, or altcoins
🔴 CFDs
Designed with precision in mind — works on bigger timeframes, like H4, D1, and W1
The Pulse Crafter Indicator is a flexible and powerful tool for navigating full market trends. Its ability to highlight key phases and generate timely signals makes it easier to plan entries, ride trends with confidence, and exit at the right moments.
In addition to its core features, Pulse Crafter supports multiple indicators for confirmation, allowing traders to strengthen their strategies with additional layers of insight. Whether you're trading the spot market or CFDs, and especially when working with larger timeframes like daily (D) or weekly (W), this indicator helps you trade with clarity and confidence.
If you're serious about understanding market structure and improving your timing, Market Trend Detector_Pulse Crafter, the best Indicator to detect market trends, can become a central part of your strategy — no matter what market you're in.
Cerca negli script per "reversal"
Consecutive Close Tracker (CCT)Consecutive Close Tracker (CCT) Indicator
The Consecutive Close Tracker (CCT) is a powerful momentum and breakout detection tool designed to identify consecutive bullish and bearish closes, potential reversals, and breakout points. By tracking consecutive candle closes and plotting key levels, this indicator provides traders with visual cues to recognize trend continuations, reversals, and breakout opportunities effectively.
🔹 Key Features of CCT
1️⃣ Consecutive Move Lines (Green/Red/Yellow Lines)
Tracks three consecutive bullish or bearish closes.
If the fourth candle confirms the trend, a green line (bullish) or red line (bearish) is drawn.
If the fourth candle fails to confirm, a yellow line is drawn, signaling potential indecision.
Helps traders spot trend continuations and exhaustion points.
2️⃣ Reversal Detection Lines (Cyan & Light Red)
Identifies bullish and bearish reversals based on three higher/lower closes followed by a reversal.
A cyan line indicates a bullish reversal, while a light red line signals a bearish reversal.
Useful for traders looking for trend reversals and key turning points.
3️⃣ Breakout Line (Dynamic Resistance/Support Level)
Automatically calculates a breakout level based on the previous timeframe’s open and close.
Can be customized to use different timeframes (e.g., hourly, daily, weekly).
Acts as a dynamic resistance or support level, helping traders determine breakout opportunities.
🔍 How to Use the Indicator?
✅ 1. Spotting Trend Continuations with Consecutive Move Lines
Green Line: Three consecutive bullish closes followed by a fourth higher close.
🚀 Indicates strong buying pressure & potential uptrend continuation.
Red Line: Three consecutive bearish closes followed by a fourth lower close.
📉 Indicates strong selling pressure & potential downtrend continuation.
Yellow Line: Three consecutive closes, but the fourth candle fails to confirm.
⚠️ Signals possible indecision or trend exhaustion.
🔥 Best Strategy:
If a green line appears near support, consider long entries.
If a red line appears near resistance, consider short entries.
If a yellow line appears, wait for further confirmation before entering a trade.
✅ 2. Identifying Trend Reversals with Reversal Lines
Cyan Line: A bearish trend with three consecutive lower closes, followed by a bullish candle → Possible uptrend reversal.
Light Red Line: A bullish trend with three consecutive higher closes, followed by a bearish candle → Possible downtrend reversal.
🔥 Best Strategy:
If a cyan line appears near a major support level, look for long entry opportunities.
If a light red line appears near resistance, prepare for a potential short entry.
Use these lines in combination with candlestick patterns (e.g., bullish engulfing, pin bars) for confirmation.
✅ 3. Using the Breakout Line for Key Entry & Exit Points
The breakout line represents a key dynamic level (midpoint of the previous timeframe’s open & close).
If price breaks above the breakout line, it suggests bullish momentum → Consider long trades.
If price breaks below the breakout line, it suggests bearish momentum → Consider short trades.
🔥 Best Strategy:
Use the breakout line in combination with support & resistance levels.
When price approaches the breakout line, watch for confirmation candles before entering a trade.
The breakout line can also act as a stop-loss or take-profit level.
🎯 How to Utilize CCT Effectively?
✅ For Intraday Traders
Use the consecutive close tracker on a 5M or 15M chart to catch short-term trends.
Watch for reversal lines near major intraday support/resistance for quick scalping opportunities.
Use the breakout line from the hourly chart to identify potential trend shifts.
✅ For Swing Traders
Apply the indicator on 1H, 4H, or daily charts to track medium-term trends.
Look for green/red lines near key Fibonacci retracement or pivot levels.
Use reversal lines to detect early trend reversals before bigger moves occur.
✅ For Breakout Traders
Focus on the breakout line on higher timeframes (e.g., 1H, 4H, Daily) to identify strong momentum shifts.
If price crosses the breakout line with strong volume, enter trades with trend confirmation.
Place stop-loss just below the breakout level for controlled risk management.
🏆 Final Thoughts
The Consecutive Close Tracker (CCT) is a powerful momentum and reversal indicator that helps traders:
✅ Identify strong trend continuations (green/red lines).
✅ Detect early reversal points (cyan/light red lines).
✅ Use a dynamic breakout line for better trade entries & exits.
Whether you’re an intraday trader, swing trader, or breakout trader, this tool can enhance your market insights and improve your trading decisions. 📈🔥
🚀 Try it out, and integrate it with your strategy to maximize its potential! 🚀
Dynamic Trend & Levels by VikOpineThis indicator combines the best aspects of trend-following, volume and price action to help traders make informed decisions and can be used with other indicators for confluence. 🚀
Key Features and Concepts:
Volume-Weighted Moving Average (VWMA):
Unlike a simple moving average, the VWMA gives more weight to price action with higher volume, helping traders identify strong trends backed by significant market participation.
It helps distinguish between low-volume price fluctuations and meaningful market moves.
Volume-Weighted Average Price (VWAP):
Used by institutional traders, VWAP serves as a benchmark to gauge whether the current price is overbought or oversold relative to the average price weighted by volume.
The indicator tracks VWAP levels dynamically, offering insights into price reversion opportunities and breakout confirmations.
Fibonacci Levels (Dynamic Support & Resistance):
The script dynamically plots Fibonacci retracement and extension levels based on recent price swings, allowing traders to identify potential reversal and continuation zones. These levels change colors individually based on them becoming support or resistance.
Fibonacci levels help in setting stop-loss levels and profit targets based on natural market cycles.
Ichimoku Cloud (Trend Confirmation & Market Sentiment):
Provides a multi-dimensional view of trend strength, momentum, and potential reversals.
The Kumo (cloud) helps traders identify support and resistance zones, while the Tenkan-Sen and Kijun-Sen lines confirm trend direction. I prefer to remove the lines and only keep the clouds to anticipate upcoming trend.
How the Indicator Works:
The script dynamically calculates and overlays VWMA and VWAP to give a clear view of volume-backed trends.
Fibonacci levels are recalculated based on recent swing highs and lows, ensuring they remain relevant to current price action. This feature avoids to re-draw Fibs manually.
The Ichimoku Cloud adjusts in real-time to provide trend and momentum signals.
The session volume profile updates dynamically to highlight high-liquidity zones and potential breakout areas.
Alerts can be set up in Tradingview allowing traders to know the price action in real time.
How to Use This Indicator in Trading:
Trend Confirmation: Use VWMA, VWAP, and the Ichimoku Cloud to determine the prevailing trend and avoid trading against market momentum. Go with the trend.
Reversals: Look at the dynamic Fibonacci levels to find key support and resistance areas where price may reverse or consolidate. These levels change color as they become support or resistance.
Breakout & Continuation Trading: Monitor VWAP deviations and Ichimoku signals to identify strong trend continuation setups.
Mean Reversion: Use VWAP re-tests to spot potential pullback entries in established trends.
Alerts: Customize alerts to stay ahead of market moves.
Take advantage of paper trading feature available in Tradingview to familiarize yourself with this indicator. Experience is the best teacher as in any other case.
Ideal for:
✅ Traders looking to capitalize on VWAP trend and level.
✅ Traders utilizing Fibonacci levels and Ichimoku trends for structured trades.
✅ Scalpers leveraging levels and trends for quick entries/exits.
✅ Traders who rely on volume-backed trend confirmations.
No indicator is perfect so take everything with a pinch of salt.
Drop a comment below with your feedback or if you have any question.
3 Period EMA Cloud [deepakks444]3 Period EMA Cloud Indicator
The 3EMA Cloud Indicator uses three key EMAs to capture trends and display the market's direction through a color-coded cloud. The EMAs used in this indicator are:
High EMA: The EMA of the high prices over a specified period.
Low EMA: The EMA of the low prices over a specified period.
Additional EMA: An extra EMA, typically based on the close prices, that serves as an independent confirmation tool for trend direction.
Indicator Logic and Cloud Visualization:
The cloud is drawn between the high EMA and the low EMA, and its color changes based on the price's relationship to the high EMA, low EMA, and additional EMA.
Cloud Color:
Green Cloud: When the price is above both the high EMA and the low EMA, it signals a bullish trend, and the cloud turns green.
Additionally, if the close price is above the Additional EMA, this further confirms the bullish trend.
Red Cloud: When the price is below both the high EMA and the low EMA, it signals a bearish trend, and the cloud turns red.
Additionally, if the close price is below the Additional EMA, this further confirms the bearish trend.
How the Indicator Captures Trends:
Bullish Market:
Price above both high EMA and low EMA: This indicates that the market is in an uptrend, and the cloud will turn green.
Confirmation with Additional EMA: When the close price is above the Additional EMA, this reinforces the bullish market sentiment.
The green cloud is the visual confirmation of a bullish trend, guiding traders to consider long positions.
Bearish Market:
Price below both high EMA and low EMA: This indicates that the market is in a downtrend, and the cloud will turn red.
Confirmation with Additional EMA: When the close price is below the Additional EMA, this confirms the bearish trend.
The red cloud is the visual confirmation of a bearish trend, guiding traders to consider short positions.
Key Components:
High EMA: Calculates the EMA based on high prices, which helps to determine the upper boundary of the cloud.
Low EMA: Calculates the EMA based on low prices, which helps to determine the lower boundary of the cloud.
Additional EMA: An extra EMA (often of the close prices) that acts as an independent trend confirmation. This is used to validate the market direction and filter out potential false signals.
Use Cases for the 3EMA Cloud:
Trend Identification:
The cloud helps to visually identify the prevailing trend. A green cloud suggests a bullish trend, while a red cloud indicates a bearish trend.
Confirmation Tool:
The Additional EMA serves as an additional confirmation tool. A close price above the Additional EMA signals a strong bullish trend, while a close below it signals a strong bearish trend.
Market Reversals:
When the price moves from above both the high EMA and low EMA to below them (or vice versa), this could indicate a trend reversal. Pay attention to cloud color changes and the movement of the close price relative to the Additional EMA for potential reversal signals.
Entry and Exit Signals:
Long Entry (Buy Signal):
Price is above both the high EMA and low EMA, confirming a bullish trend.
Close price is above the Additional EMA, confirming the bullish trend.
Enter a long position when the cloud turns green and the confirmation by the Additional EMA is in place.
Short Entry (Sell Signal):
Price is below both the high EMA and low EMA, confirming a bearish trend.
Close price is below the Additional EMA, confirming the bearish trend.
Enter a short position when the cloud turns red and the confirmation by the Additional EMA is in place.
Exit Signal:
Exit Long Position when the price moves below both the high EMA and low EMA (signaling a potential trend reversal), or if the close price falls below the Additional EMA.
Exit Short Position when the price moves above both the high EMA and low EMA (signaling a potential trend reversal), or if the close price rises above the Additional EMA.
How This Indicator Improves Trend Following:
The 3EMA Cloud indicator enhances trend-following strategies by:
Visual Clarity: The color-coded cloud provides immediate visual feedback on whether the market is in a bullish or bearish phase.
Price Confirmation: The indicator uses the relationship of price to three EMAs (high, low, and additional) to confirm trend strength, which can help reduce false signals.
Flexibility: The Additional EMA adds flexibility by serving as an independent confirmation tool for trend direction, ensuring that you don’t enter trades based on weak or choppy market conditions.
This 3EMA Cloud indicator is designed to help traders follow and confirm trends with precision, improving their ability to identify strong market movements and avoid getting caught in sideways or choppy conditions. It provides a clear visual cue for potential buy and sell opportunities based on price relative to multiple EMAs, ensuring that trend-following strategies are robust and effective.
Disclaimer:
This script and its associated indicators are for educational purposes only. The information provided does not constitute financial advice or a recommendation to buy or sell any financial instruments. Users are advised to conduct their own research and consult with a professional financial advisor before making any trading decisions. Trading and investing involve risk, and users should be aware of the risks involved in financial markets.
RM - FF - DDRM - rKr Indicator
The RM - rKr Indicator is designed to evaluate price momentum by analyzing relative percentage deviations of price components (high, open, low, and close) from their simple moving average. It provides a comprehensive signal of market conditions through color-coded bars, crossovers, and dynamic alerts.
Key Features
• Relative Kr Calculations: Calculates the relative percentage deviation of each price component (high, open, low, close) from their respective moving averages. The results are then averaged to provide a single momentum value.
• Dynamic Bar Coloring: Bars are color-coded based on the sum's value:
Green for positive momentum (sum > 0).
Purple for negative momentum (sum < 0).
• Crossover Signals: Visual markers indicate when the momentum crosses above or below the zero line, signaling potential long (⦿ below bars) or short (⦿ above bars) opportunities.
• Alerts: Built-in alert conditions notify traders of bullish or bearish market conditions when the momentum value crosses zero.
How It Works
Calculates the percentage difference between price components (high, open, low, close) and their simple moving averages.
Averages the results to derive a single momentum value (sum).
Uses zero as the baseline to determine market direction:
Positive values suggest bullish momentum.
Negative values suggest bearish momentum.
Highlights potential trade opportunities with crossover signals when the sum crosses the zero line.
How to Use
• Identify Trends: Use bar colors and the momentum value to gauge market direction.
• Spot Reversals: Monitor for crossover signals near the zero line to identify potential entry or exit points.
• Confirm Conditions: Combine with other indicators for enhanced trend confirmation.
Example Use Cases
Momentum Trading: Use green or purple bars to confirm bullish or bearish momentum.
Reversal Signals: Watch for crossover signals near the zero line for potential trend reversals.
Volatility Assessment: Employ the indicator to measure price momentum deviations over time.
Disclaimer
This indicator provides an analytical view of price momentum and market conditions. It does not guarantee future performance and should be used in conjunction with other tools and proper risk management strategies.
[blackcat] L2 Kiosotto IndicatorOVERVIEW
The Kiosotto Indicator is a versatile technical analysis tool designed for forex trading but applicable to other financial markets. It excels in detecting market reversals and trends without repainting, ensuring consistent and reliable signals. The indicator has evolved over time, with different versions focusing on specific aspects of market analysis.
KEY FEATURES
Reversal Detection: Identifies potential market reversals, crucial for traders looking to capitalize on turning points.
Trend Detection: Earlier versions focused on detecting trends, useful for traders who prefer to follow the market direction.
Non-Repainting: Signals remain consistent on the chart, providing reliable and consistent signals.
Normalization: Later versions, such as Normalized Kiosotto and Kiosotto_2025, incorporate normalization to assess oversold and overbought conditions, enhancing interpretability.
VERSIONS AND EVOLUTION
Early Versions: Focused on trend detection, useful for following market direction.
2 in 1 Kiosotto: Emphasizes reversal detection and is considered an improvement by users.
Normalized Versions (e.g., Kiosotto_2025, Kiosotto_3_2025): Introduce normalization to assess oversold and overbought conditions, enhancing interpretability.
HOW TO USE THE KIOSOTTO INDICATOR
Understanding Signals:
Reversals: Look for the indicator's signals that suggest a potential reversal, indicated by color changes, line crossings, or other visual cues.
Trends: Earlier versions might show stronger trending signals, indicated by the direction or slope of the indicator's lines.
Normalization Interpretation (for normalized versions):
Oversold: When the indicator hits the lower boundary, it might indicate an oversold condition, suggesting a potential buy signal.
Overbought: Hitting the upper boundary could signal an overbought condition, suggesting a potential sell signal.
PINE SCRIPT IMPLEMENTATION
The provided Pine Script code is a version of the Kiosotto indicator. Here's a detailed explanation of the code:
//@version=5
indicator(" L2 Kiosotto Indicator", overlay=false)
//Pine version of Kiosotto 2015 v4 Alert ms-nrp
// Input parameters
dev_period = input.int(150, "Dev Period")
alerts_level = input.float(15, "Alerts Level")
tsbul = 0.0
tsber = 0.0
hpres = 0.0
lpres = 9999999.0
for i = 0 to dev_period - 1
rsi = ta.rsi(close , dev_period)
if high > hpres
hpres := high
tsbul := tsbul + rsi * close
if low < lpres
lpres := low
tsber := tsber + rsi * close
buffer1 = tsber != 0 ? tsbul / tsber : 0
buffer2 = tsbul != 0 ? tsber / tsbul : 0
// Plotting
plot(buffer1, color=color.aqua, linewidth=3, style=plot.style_histogram)
plot(buffer2, color=color.fuchsia, linewidth=3, style=plot.style_histogram)
hline(alerts_level, color=color.silver)
EXPLANATION OF THE CODE
Indicator Definition:
indicator(" L2 Kiosotto Indicator", overlay=false): Defines the indicator with the name " L2 Kiosotto Indicator" and specifies that it should not be overlaid on the price chart.
Input Parameters:
dev_period = input.int(150, "Dev Period"): Allows users to set the period for the deviation calculation.
alerts_level = input.float(15, "Alerts Level"): Allows users to set the level for alerts.
Initialization:
tsbul = 0.0: Initializes the tsbul variable to 0.0.
tsber = 0.0: Initializes the tsber variable to 0.0.
hpres = 0.0: Initializes the hpres variable to 0.0.
lpres = 9999999.0: Initializes the lpres variable to a very high value.
Loop for Calculation:
The for loop iterates over the last dev_period bars.
rsi = ta.rsi(close , dev_period): Calculates the RSI for the current bar.
if high > hpres: If the high price of the current bar is greater than hpres, update hpres and add the product of RSI and close price to tsbul.
if low < lpres: If the low price of the current bar is less than lpres, update lpres and add the product of RSI and close price to tsber.
Buffer Calculation:
buffer1 = tsber != 0 ? tsbul / tsber : 0: Calculates the first buffer as the ratio of tsbul to tsber if tsber is not zero.
buffer2 = tsbul != 0 ? tsber / tsbul : 0: Calculates the second buffer as the ratio of tsber to tsbul if tsbul is not zero.
Plotting:
plot(buffer1, color=color.aqua, linewidth=3, style=plot.style_histogram): Plots the first buffer as a histogram with an aqua color.
plot(buffer2, color=color.fuchsia, linewidth=3, style=plot.style_histogram): Plots the second buffer as a histogram with a fuchsia color.
hline(alerts_level, color=color.silver): Draws a horizontal line at the alerts_level with a silver color.
FUNCTIONALITY
The Kiosotto indicator calculates two buffers based on the RSI and price levels over a specified period. The buffers are plotted as histograms, and a horizontal line is drawn at the alerts level. The indicator helps traders identify potential reversals and trends by analyzing the relationship between the RSI and price levels.
ALGORITHMS
RSI Calculation:
The Relative Strength Index (RSI) measures the speed and change of price movements. It is calculated using the formula:
RSI=100− (1+RS) / 100
where RS is the ratio of the average gain to the average loss over the specified period.
Buffer Calculation:
The buffers are calculated as the ratio of the sum of RSI multiplied by the close price for high and low price conditions. This helps in identifying the balance between buying and selling pressure.
Signal Generation:
The indicator generates signals based on the values of the buffers and the alerts level. Traders can use these signals to make informed trading decisions, such as entering or exiting trades based on potential reversals or trends.
APPLICATION SCENARIOS
Reversal Trading: Traders can use the Kiosotto indicator to identify potential reversals by looking for significant changes in the buffer values or crossings of the alerts level.
Trend Following: The indicator can also be used to follow trends by analyzing the direction and slope of the buffer lines.
Oversold/Overbought Conditions: For normalized versions, traders can use the indicator to identify oversold and overbought conditions, which can provide buy or sell signals.
THANKS
Special thanks to the TradingView community and the original developers for their contributions and support in creating and refining the Kiosotto Indicator.
RM - rKrRM - rKr Indicator
The RM - rKr Indicator is designed to evaluate price momentum by analyzing relative percentage deviations of price components (high, open, low, and close) from their simple moving average. It provides a comprehensive signal of market conditions through color-coded bars, crossovers, and dynamic alerts.
Key Features
• Relative Kr Calculations: Calculates the relative percentage deviation of each price component (high, open, low, close) from their respective moving averages. The results are then averaged to provide a single momentum value.
• Dynamic Bar Coloring: Bars are color-coded based on the sum's value:
Green for positive momentum (sum > 0).
Purple for negative momentum (sum < 0).
• Crossover Signals: Visual markers indicate when the momentum crosses above or below the zero line, signaling potential long (⦿ below bars) or short (⦿ above bars) opportunities.
• Alerts: Built-in alert conditions notify traders of bullish or bearish market conditions when the momentum value crosses zero.
How It Works
Calculates the percentage difference between price components (high, open, low, close) and their simple moving averages.
Averages the results to derive a single momentum value (sum).
Uses zero as the baseline to determine market direction:
Positive values suggest bullish momentum.
Negative values suggest bearish momentum.
Highlights potential trade opportunities with crossover signals when the sum crosses the zero line.
How to Use
• Identify Trends: Use bar colors and the momentum value to gauge market direction.
• Spot Reversals: Monitor for crossover signals near the zero line to identify potential entry or exit points.
• Confirm Conditions: Combine with other indicators for enhanced trend confirmation.
Example Use Cases
Momentum Trading: Use green or purple bars to confirm bullish or bearish momentum.
Reversal Signals: Watch for crossover signals near the zero line for potential trend reversals.
Volatility Assessment: Employ the indicator to measure price momentum deviations over time.
Disclaimer
This indicator provides an analytical view of price momentum and market conditions. It does not guarantee future performance and should be used in conjunction with other tools and proper risk management strategies.
Momentum Divergence SignalDescription:
The Momentum Divergence Signal is a powerful tool that identifies potential trend reversals by analyzing the interaction between price movements and main oscillators. It highlights moments when price action diverges from the following, which can be a key signal of a trend shift. The most important aspect of this indicator is its ability to detect bullish and bearish divergences.
Coming to the critical part, it is highly recommended to pair this indicator with another trend confirmation tool for improved decision-making, as it works on catching both trend continuation and reversal signals, but it is always favored to match use it as a trend continuation entry provider.
Core Functionality:
Session-Based Signals:
The indicator limits signals to specific market sessions: the Asian, London, and US sessions, optimizing trade opportunities during active trading hours.
Cooldown Mechanism:
To prevent signal spamming, a cooldown period of at least 8 bars is required between each signal, ensuring that new signals are spaced out and not over-generating.
Divergence with Trend Confirmation:
While the RSI divergence alone can highlight potential trend shifts, this script is best paired with other trend-following indicators to filter out false signals. This ensures that the divergence signal is part of a broader, more reliable trend-following strategy.
Visual Components:
Buy and Sell Arrows: Visual arrows on the chart where the divergence occurs, accompanied by "Buy" and "Sell" labels in white to clearly indicate the signal points.
Advanced Concepts:
Divergence as a Reversal Signal: The key strength of this indicator lies in detecting divergences that can indicate a trend reversal. Divergences often precede significant changes in price direction, offering potential opportunities for traders to enter or exit positions before the trend fully shifts.
Pairing with Trend Confirmation Indicators: Since divergence signals can sometimes produce false positives, the most effective use of this tool comes when paired with a trend-following indicator (such as moving averages or price action analysis) to validate the reversal signals.
Applications:
Trend Reversal Detection: Monitor for divergences between price action and RSI to identify potential trend reversals. These signals are most useful when combined with trend confirmation tools to ensure the validity of the reversal.
Strategic Use in Trend-Following Systems: This indicator is best employed within a trend-following strategy where it serves as an additional confirmation signal for market shifts. While it can identify potential reversal points, its strength lies in its ability to identify shifts in momentum within an ongoing trend.
Real-Time Visual Feedback: The "Buy" and "Sell" signals, that are displayed directly on the chart, providing real-time context for traders.
Disclaimer: This indicator is designed for informational purposes only and should not be considered financial advice. Traders should combine it with other market analysis tools and perform their own research before making trading decisions.
TechniTrendMasterIntroducing "TechniTrendMaster"
The TechniTrendMaster indicator is designed to bring clarity and depth to your trading strategy. This indicator combines robust trend analysis with volume insights, giving you a comprehensive view of the market’s pulse. Let's break down the features.
🔵 Analysis Mode
TechniTrendMaster's Analysis Mode provides various configurations tailored to specific market behaviors. Here are the options you can utilize:
🔹Strong Movements: Focuses on powerful market shifts, ideal for capturing major trend changes and high-momentum moves. Perfect for identifying strong breakout opportunities.
🔹Reversal: Detects potential turning points in the market, signaling when a trend might be about to change direction, allowing for well-timed entries and exits.
🔹Consolidations: Spots periods of low volatility where the market moves sideways, helping you avoid trading traps and anticipate breakout scenarios.
🔹Momentum-Driven: Prioritizes momentum in the market, identifying when the force behind price movement is accelerating or decelerating.
🔹Balanced: Offers a well-rounded view of the market by weighing both trend direction and volume equally, making it suitable for stable market conditions.
🔹Volatility Adapted: Adjusts to periods of increased or decreased volatility, providing accurate signals regardless of market conditions.
🔹Trend Confirmation: Confirms the strength and sustainability of a trend, allowing traders to enter trades with higher confidence.
🔹Short-Term Scalping: Tailored for traders who focus on Short-Term and Scalp trades, offering rapid insights for intraday or short-term trading strategies.
🔵 Trend Analysis Mode
The Trend Analysis Mode allows you to customize how trends are detected and analyzed:
🔹Default: A balanced mode for general use, offering reliable trend identification across different market conditions.
🔹Aggressive: A more sensitive setting that reacts quickly to market changes, ideal for traders looking to capitalize on smaller, quicker movements.
🔹Conservative: Takes a cautious approach, favoring long-term stability over short-term fluctuations, perfect for risk-averse traders.
🔹Volatility Aware: Focuses on adapting to volatility shifts, giving accurate trend signals even in erratic markets.
🔹Range Bound: Targets horizontal price movements and channel trades, helping traders take advantage of well-defined ranges.
🔵 Divergence
Divergence is a powerful tool within TechniTrendMaster, highlighting discrepancies between price movement and underlying volume. These differences can indicate potential reversals or trend continuations before they are visible on price charts alone.
🔵 Hidden Divergence
Hidden divergence is a subtle yet crucial signal that reveals when an existing trend might resume after a temporary correction. This mode provides early detection of trend continuity opportunities, giving traders a significant advantage in timing.
🔵 Divergence Mode
TechniTrendMaster includes different divergence detection settings to suit your analysis style:
🔹Standard: Captures typical divergence patterns for general analysis.
🔹Short-Term Focused: Concentrates on short-lived divergences, offering rapid detection of shifts for active traders.
🔹Long-Term Analysis: Highlights divergence in a broader context, which is better for understanding the overall market direction.
🔹High Sensitivity: Prioritizes capturing even the smallest shifts in the market, making it excellent for high-frequency trading or volatile environments.
🔹Low Sensitivity: Reduces market noise, only reacting to more significant changes in trend or volume. It’s perfect for traders who seek higher accuracy with fewer false signals.
🔵 Dynamic Channel
TechniTrendMaster features a Dynamic Channel, that automatically adapts to market conditions. This channel provides a visual guide to price action, adjusting in real-time based on current trends and volatility. It identifies key support and resistance zones, making it easier to spot breakouts, trend continuations, or potential reversals.
🔵 Volume Integration
Volume is a critical part of TechniTrendMaster, offering deeper insights beyond just price movement. By analyzing volume patterns alongside trends, the indicator highlights the strength and reliability of market shifts. This integration ensures that traders can distinguish between genuine movements backed by solid volume and weak trends that might not hold.
🔵 A Solution for All Trading Styles
TechniTrendMaster’s strength lies in its versatility. No matter your trading approach—be it scalping, swing trading, trend following, or range trading—this indicator adapts to your needs. Here's how it caters to different trader profiles:
🔹Scalpers get precise, quick-response insights through the Short-Term Scalping and High Sensitivity settings, helping them capture minute price movements.
🔹Swing Traders benefit from modes like Reversal, Balanced, and Momentum-Driven, which focus on identifying trends and shifts that occur over several days.
🔹Long-Term Investors will find the Conservative, Low Sensitivity, and Long-Term Analysis modes ideal for filtering noise and sticking to broader market trends.
🔹Volatility Traders can rely on the Volatility Adapted and Volatility Aware options to get accurate signals even during unpredictable periods.
🔓 Unlock Access :
Check out the Author's Instructions or Dm me to Unlock the Access.
S&P500 Market Breadth /MA20Introduction
It calculates the percentage of assets trading above their 20-day moving average (MA20), providing a clear view of market breadth and highlighting the strength of an uptrend or downtrend.
Features
• Market Breadth Analysis: The MA20 Market Breadth Indicator tracks the number of assets trading above their 20-day moving average, offering an intuitive view of the proportion of rising versus falling assets. A high breadth suggests a strong uptrend, while low breadth indicates that most assets are in a downtrend.
• Trend Following: This indicator allows traders to easily identify whether the overall market trend is healthy and upward or potentially weakening and downward.
• Simple and Intuitive: The breadth is displayed as a percentage, enabling users to quickly assess market conditions and make informed decisions.
How to Use
1. Assess Market Sentiment: When the MA20 market breadth is above the 50% zone, it indicates that the market is in a broad uptrend, favoring long positions. When it falls below 50%, it signals downward pressure, making it a time for caution or short opportunities.
2. Spot Trend Reversals: Sudden changes in market breadth, such as a sharp decline from a high level, can indicate an upcoming market reversal or correction, signaling traders to adjust their positions.
3. Confirm Trends: Combine the MA20 market breadth with other indicators, such as momentum or volume, to further validate the overall direction of the market.
Applicable Markets
This indicator works across various markets and asset classes, including but not limited to:
• Stock markets (indices and individual stocks)
• Cryptocurrencies
• Forex markets
Conclusion
The MA20 Market Breadth Indicator provides traders with a clear picture of market health, helping to identify broader trends and confirm shifts in market sentiment. It’s an essential tool for traders of all types, particularly those focused on medium to short-term trend following and market reversals.
Disclaimer
This indicator is for educational purposes only. Please use it in conjunction with your own trading strategies and adjust according to your risk tolerance.
This introduction should work well for your TradingView release. You can adjust it as needed for specific features or updates in the indicator.
Quarterly H/L [Dango]Introducing the Quarterly High and Low Indicator, a powerful and original tool designed to enhance your understanding of price action by identifying key turning points within quarterly cycles. This innovative script accurately determines the most significant highs and lows in each quarter, providing valuable insights for traders.
Key Features:
- Identifies and displays quarterly highs and lows on 90-minute, daily, weekly, monthly, and yearly timeframes
- Employs advanced algorithms and a deep understanding of cycle theory to precisely pinpoint key turning points
- Accounts for subtle nuances in price action and market dynamics
- Intended to be used in conjunction with the Quarterly Cycles Indicator for further confluence
How It Works:
The Quarterly High and Low Indicator utilizes a proprietary algorithm to meticulously analyze price action within each quarter. This advanced formula takes into account multiple factors, such as price momentum, volatility, and volume, to accurately identify the most significant high and low points.
The script employs a multi-step process to determine the quarterly highs and lows:
1. Cycle Isolation: The indicator first isolates the price action within each quarter, focusing on the specific time frame being analyzed (90-minute, daily, weekly, monthly, or yearly).
2. Momentum Analysis: The script then analyzes the price momentum within each quarter, identifying periods of strong bullish or bearish sentiment. This helps to narrow down potential high and low points.
3. Volatility and Volume Confirmation: To further refine the identification of key turning points, the indicator assesses the volatility and volume characteristics surrounding potential highs and lows. Significant changes in volatility and volume often accompany important price reversals.
4. Proprietary Scoring System: The algorithm assigns scores to each potential high and low point based on a proprietary scoring system. This system takes into account the confluence of momentum, volatility, and volume factors to determine the most significant turning points within each quarter.
The Quarterly High and Low Indicator visually represents these key turning points on the chart, enabling traders to easily identify potential support and resistance levels, trend reversals, and optimal entry and exit points. By focusing on the most significant price levels within each quarter, the indicator helps traders cut through the noise and make more informed trading decisions.
Expected Usage:
The Quarterly High and Low Indicator is designed to be a valuable tool for traders seeking to gain a deeper understanding of price action and market dynamics. By mapping out the most significant high and low points within each quarter, the indicator provides users with key levels to watch for potential trend reversals, support, and resistance.
1. Identifying Pivots and Reversals: The quarterly highs and lows identified by the indicator serve as critical levels where price is more likely to pivot or reverse. Traders can use these levels to anticipate potential trend changes and adjust their trading strategies accordingly.
2. Backtesting and Historical Analysis: The indicator enables traders to analyze historical price action and assess how the market has reacted to quarterly high and low levels in the past. By backtesting their strategies using these key levels, traders can gain valuable insights into the effectiveness of their approach and make data-driven refinements.
3. Support and Resistance: Quarterly highs and lows often act as significant support and resistance levels. Traders can use the indicator to identify these key areas and plan their trades around them. For example, if price approaches a quarterly high, traders may watch for potential selling pressure and consider taking profits or initiating short positions.
4. Confirmation and Confluence: The Quarterly High and Low Indicator can be used in conjunction with other technical analysis tools to confirm trade setups and increase confidence in trading decisions. When multiple indicators or analysis techniques align with the quarterly highs and lows, it provides a stronger signal for potential trade entry or exit points.
5. Risk Management: By understanding the location of quarterly highs and lows, traders can make more informed decisions about stop-loss placement and position sizing. Setting stop-losses beyond these key levels can help mitigate the risk of getting stopped out prematurely due to short-term price fluctuations.
6. Combining with the Quarterly Cycles Indicator: The Quarterly High and Low Indicator is intended to be used alongside the Quarterly Cycles Indicator for further confluence and validation. By analyzing the relationship between the identified quarterly highs and lows and the underlying quarterly cycles, traders can gain a more comprehensive understanding of market dynamics and potential turning points. When the quarterly highs and lows align with the key phases of the quarterly cycles, it provides a stronger signal for potential trend changes and trading opportunities.
Incorporating the Quarterly High and Low Indicator into a trading strategy, along with the Quarterly Cycles Indicator, allows traders to develop a more comprehensive understanding of price action and make better-informed decisions. By backtesting and analyzing how price reacts around these key levels and cycles, traders can refine their approach and potentially improve their trading outcomes.
Limitations and Disclaimer:
While the Quarterly High and Low Indicator is a powerful tool, it should not be used in isolation. Traders should combine the insights gained from this indicator with other forms of analysis, such as the Quarterly Cycles Indicator, fundamental analysis, risk management, and sound trading psychology, to develop a well-rounded and effective trading approach.
Please note that the indicator's accuracy may be impacted by extreme market volatility or unusual events, and quarterly highs and lows should not be relied upon in isolation. As with any trading tool, individual results may vary, and past performance does not guarantee future outcomes. Traders should always exercise caution, use appropriate risk management techniques, and continuously educate themselves to adapt to changing market conditions.
This indicator is provided for educational purposes only and should not be considered financial advice. Always conduct your own due diligence and consult with a financial professional before making any trading decisions.
Privacy of Code:
The underlying logic and specific calculations used in the proprietary algorithm are not disclosed to protect the intellectual property of the script. The advanced formula and scoring system used to identify quarterly highs and lows are the result of extensive research, testing, and refinement. By keeping these details confidential, the script maintains its competitive edge and ensures the protection of its intellectual property.
TradeDots - Buy Sell SignalsThe TradeDots Buy Sell Indicator is a sophisticated multi-strategy analytics tool designed to discern market direction and identify potential trading opportunities.
The TradeDots indicator utilizes a trend-following strategy that initially identifies the long-term market trend, whether bullish or bearish, at a macro level. It then zooms in on pullback and reversal price action patterns within this broader trend. These patterns are confirmed by a micro-level candlestick analysis, which leads to the issuance of a "buy" alert. This process ensures both macro and micro elements of the market are considered before entering a trade.
How Does It Work?
In more detail, the procedure begins at the macro level where the advanced indicator applies an Exponential Moving Average (EMA) within the current timeframe. This EMA is then cross-verified with another EMA of the same length from a higher timeframe, ensuring a reliable assessment of long-term market trends. This approach helps establish whether the market situation favors long or short positions.
Following this, a complex mathematical model uses a designated window of candlesticks to calculate price action changes, storing all significant reversal patterns for subsequent comparison. The algorithm then identifies similar repeated reversal patterns in the chart, pinpointing potential market turning points.
For precision and reliability, the confirmation of these reversal patterns involves further refinement and filtering at a micro level. By calculating market momentum in tandem with an exhaustive analysis, e.g. Average True Value (ATR), candlestick body and wick data, the algorithm can affirm the reversal. Finally, the buy or sell signals are plotted on the chart in real-time.
The indicator includes 4 distinct entry strategies for both "Long" and "Short" orders. Each strategy represents different levels of rigorousness in their analysis rules. For instance, a "Weak Buy" signal represents a lighter pullback strength compared to a "Strong Buy" signal, with "Reversal Buy" exhibiting the robust pullback strength based on the change in price action value.
Each type of order comes with its minimum threshold and conditions for profit-taking to prevent excessive trading activity that could lead to high commission costs. Once these conditions are met and coupled with a reversal signal — generated with the same concepts as mentioned earlier but in the opposite direction — a sell signal is then triggered in real time. It's a systematic process that ensures an optimal balance between timely entries and exits in the market.
Generating Trading Ideas Catering To Traders Of All Kinds
TradeDots Buy Sell Indicator includes multiple strategies and many features:
4+ Types of Trading Alerts: Strong, Weak, Reversal, and Breakout for different market conditions (Should not be followed blindly).
2+ Trading Styles: Buy and Hold, Swing Trading (Should not be followed blindly).
Facilitates both "Long" and "Short" trades.
+ more. (Check the changelog below for current features)
HOW TO USE
⭐️ TRADING STRATEGY
Buy and Hold: An approach suitable for long-term investments or as an alternative to a dollar-cost averaging strategy by identifying only the undervalued positions in markets with long-term growth potential like stocks and indices.
Note: This strategy does not provide an exit strategy.
Swing Trading: This method targets buying low and selling high, adapted for traders looking to make the most of short to mid-term market volatility.
⭐️ ORDER DIRECTION
Order direction is for “Swing trading” strategy and other strategies that comes with an exit strategy. It is to choose the direction of the market that you wish to place your order on.
Long: Primarily targeting markets that exhibit a left-skewed trend (more often it rises than falls), this strategy focuses on "long" trading opportunities, avoiding "short" market actions.
Short: Apt for markets displaying a right-skewed trend (more often it falls than rises), this approach targets "short" opportunities exclusively, refraining from "long" market actions.
Long and Short: This comprehensive strategy identifies trading opportunities for both "long" and "short" market actions, facilitating increased opportunities for volatile assets.
⭐️ ALERT TYPES
Strong: These alerts designate high risk/reward return opportunities with a reasonable win rate. They tend to appear near previous support pivots where a Change in Character (CoCh) may often occur, typically coupled with a tight stop-loss strategy.
Weak: Indicative of opportunities balancing risk/reward return and win-rate, these alerts often appear during strong momentum markets.
Reversal: These signals identify potential reversals by highlighting extreme oversold or overbought states, thus revealing markets that are underpriced or overpriced for swift trading actions.
Breakout: They are to identify a change in trend and market breakout by gaps created post earnings or significant economic events, purposed for "Buy high, sell higher" strategies.
⭐️ STOP LOSS
The stop-loss feature offers customization options, enabling users to close a position upon reaching a predefined percentage drawdown. As volatility varies across different timeframes and markets, tuning this feature in accordance with the market allows optimal usage of this indicator.
CONCLUSION
While technical indicators are certainly vital in trading analysis, they are just one part of the equation. The individual trader's style and mindset significantly influence their trading outcomes, making them equally crucial in the process. Therefore, relying solely on indicators for a successful trading outcome may not be the most effective strategy.
Understanding and leveraging these indicators requires substantial time and significant effort from traders. They need to deeply engage with these tools to truly grasp their behavior and functionality. Taking this into consideration, our aim is to create highly advanced, customizable, and user-friendly technical indicators. This tool is designed to illuminate the fundamental role that technical indicators play as a supportive decision-making apparatus, aiding traders to more swiftly embark on their journey towards successful trading.
See Author's instructions below to get instant access to this indicator.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Standardized Orderflow [AlgoAlpha]Introducing the Standardized Orderflow indicator by AlgoAlpha. This innovative tool is designed to enhance your trading strategy by providing a detailed analysis of order flow and velocity. Perfect for traders who seek a deeper insight into market dynamics, it's packed with features that cater to various trading styles. 🚀📊
Key Features:
📈 Order Flow Analysis: At its core, the indicator analyzes order flow, distinguishing between bullish and bearish volume within a specified period. It uses a unique standard deviation calculation for normalization, offering a clear view of market sentiment.
🔄 Smoothing Options: Users can opt for a smoothed representation of order flow, using a Hull Moving Average (HMA) for a more refined analysis.
🌪️ Velocity Tracking: The indicator tracks the velocity of order flow changes, providing insights into the market's momentum.
🎨 Customizable Display: Tailor the display mode to focus on either order flow, order velocity, or both, depending on your analysis needs.
🔔 Alerts for Critical Events: Set up alerts for crucial market events like crossover/crossunder of the zero line and overbought/oversold conditions.
How to Use:
1. Setup: Easily configure the indicator to match your trading strategy with customizable input parameters such as order flow period, smoothing length, and moving average types.
2. Interpretation: Watch for bullish and bearish columns in the order flow chart, utilize the Heiken Ashi RSI candle calculation, and look our for reversal notations for additional market insights.
3. Alerts: Stay informed with real-time alerts for key market events.
Code Explanation:
- Order Flow Calculation:
The core of the indicator is the calculation of order flow, which is the sum of volumes for bullish or bearish price movements. This is followed by normalization using standard deviation.
orderFlow = math.sum(close > close ? volume : (close < close ? -volume : 0), orderFlowWindow)
orderFlow := useSmoothing ? ta.hma(orderFlow, smoothingLength) : orderFlow
stdDev = ta.stdev(orderFlow, 45) * 1
normalizedOrderFlow = orderFlow/(stdDev + stdDev)
- Velocity Calculation:
The velocity of order flow changes is calculated using moving averages, providing a dynamic view of market momentum.
velocityDiff = ma((normalizedOrderFlow - ma(normalizedOrderFlow, velocitySignalLength, maTypeInput)) * 10, velocityCalcLength, maTypeInput)
- Display Options:
Users can choose their preferred display mode, focusing on either order flow, order velocity, or both.
orderFlowDisplayCond = displayMode != "Order Velocity" ? display.all : display.none
wideDisplayCond = displayMode != "Order Flow" ? display.all : display.none
- Reversal Indicators and Divergences:
The indicator also includes plots for potential bullish and bearish reversals, as well as regular and hidden divergences, adding depth to your market analysis.
bullishReversalCond = reversalType == "Order Flow" ? ta.crossover(normalizedOrderFlow, -1.5) : (reversalType == "Order Velocity" ? ta.crossover(velocityDiff, -4) : (ta.crossover(velocityDiff, -4) or ta.crossover(normalizedOrderFlow, -1.5)) )
bearishReversalCond = reversalType == "Order Flow" ? ta.crossunder(normalizedOrderFlow, 1.5) : (reversalType == "Order Velocity" ? ta.crossunder(velocityDiff, 4) : (ta.crossunder(velocityDiff, 4) or ta.crossunder(normalizedOrderFlow, 1.5)) )
In summary, the Standardized Orderflow indicator by AlgoAlpha is a versatile tool for traders aiming to enhance their market analysis. Whether you're focused on short-term momentum or long-term trends, this indicator provides valuable insights into market dynamics. 🌟📉📈
Smart Money Oscillator [ChartPrime]The "Smart Money Oscillator " is a premium and discount zone oscillator with BOS and CHoCH built in for further analysis of price action. This indicator works by first determining the the premium and discount zones by using pivot points and high/lows. The top of this oscillator represents the current premium zone while the bottom half of this oscillator represents the discount zone. This oscillator functionally works like a stochastic oscillator with more sophisticated upper and lower bounds generated using smart money concept theories. We have included a moving average to allow the user to visualize the currant momentum in the oscillator. Another key feature we have included lagging divergences to help traders visualize potential reversal conditions.
Understanding the concepts of Premium and Discount zones, as well as Break of Structure (BoS) and Change of Character (CHoCH), is crucial for traders using the Smart Money Oscillator. These concepts are rooted in market structure analysis, which involves studying price levels and movements.
Premium Zone is where the price is considered to be relatively high or 'overbought'. In this zone, prices have risen significantly and may indicate that the asset is becoming overvalued, potentially leading to a reversal or slowdown in the upward trend.
The Discount Zone represents a 'discount' or 'oversold' area. Here, prices have fallen substantially, suggesting that the asset might be undervalued. This could be an indicator of a potential upward reversal or a pause in the downward trend.
Break of Structure (BoS) is about the continuation of a trend. In a bullish trend, a BoS is identified by the break of a recent higher high. In a bearish trend, it's the break of a recent Lower Low. BoS indicates that the trend is strong and likely to continue in its current direction. It's a sign of strength in the prevailing trend, whether up or down.
Change of Character (CHoCH) is an indication of a potential end to a trend. It occurs when there's a significant change in the market's behavior, contradicting the current trend. For example, in an uptrend characterized by higher highs and higher lows, a CHoCH may occur if a new high is formed but then is followed by an impulsive move downwards. This suggests that the bullish trend may be weakening and a bearish reversal could be imminent. CHoCH is essentially a sign of trend exhaustion and potential reversal.
With each consecutive BoS, the signal line of the oscillator will deepen in color. This allows you to visually see the strength of the current trend. The maximum strength of the trend is found by keeping track of the maximum number of consecutive BoS's within a window of 10. This calculation excludes periods without any BoS's to allow for a more stable max.
Quick Update is a feature that implements a more aggressive algorithm to update the highs and lows. Instead of updating the pivot points exclusively to update the range levels, it will attempt to use the current historical highs/lows to update the bounds. This results in a more responsive range at the cost of stability. There are pros and cons for both settings. With Quick Update disabled, the indicator will allow for strong reversals to register without the indicator maxing out. With Quick Update enabled, the indicator will show shorter term extremes with the risk of the signal being pinned to the extremities during strong trends or large movements. With Quick Update disabled, the oscillator prioritizes stability, using a more historical perspective to set its bounds. When Quick Update is enabled, the oscillator becomes more responsive, adjusting its bounds rapidly to reflect the latest market movements.
The Scale Offset feature allows the indicator to break the boundaries of the oscillator. This can be useful when the market is breaking highs or lows allowing the user to identify extremities in price. With Scale Offset disabled the oscillator will always remain inside of the boundaries because the extremities will be updated instantly. When this feature is enabled it will update the boundaries one step behind instead of updating it instantly. This allows the user to more easily see overbought and oversold conditions at the cost of incurring a single bar lag to the boundaries. Generally this is a good idea as this behavior makes the oscillator more sensitive to recent price spikes or drops, reflecting sudden market movements more accurately. It accentuates the extremities of the market conditions, potentially offering a more aggressive analysis. The main trade-off with the Scale Offset feature is between sensitivity and potential overreaction. It offers a more immediate and exaggerated reflection of market conditions but might also lead to misinterpretations in certain scenarios, especially in highly volatile markets.
Divergence is used to predict potential trend reversals. It occurs when the price of an asset and the reading of an oscillator move in opposite directions. This discrepancy can signal a weakening of the current trend and possibly indicate a potential reversal.
Divergence doesn't always lead to a trend reversal, but it's a warning sign that the current trend might be weakening. Divergence can sometimes give false signals, particularly in strongly trending markets where the oscillator may remain in overbought or oversold conditions for extended periods. The lagging nature of using pivot points to calculate divergences means that all divergences are limited by the pivot look forward input. The upside of using a longer look forward is that the divergences will be more accurate. The obvious con here is that it will be more delayed and might be useless by the time it appears. Its recommended to use the built in divergences as a way to learn how these are formed so you can make your own in real time.
By default, the oscillator uses a smoothing of 3 to allow for a more price like behavior while still being rather smooth compared to raw price data. Conversely, you can increase this value to make this indicator behave smoother. Something to keep in mind is that the amount of delay from real time is equal to half of the smoothing period.
We have included a verity of alerts in this indicator. Here is a list of all of the available alerts: Bullish BOS, Bearish BOS, Bullish CHoCH, Bearish CHoCH, Bullish Divergence, Hidden Bullish Divergence, Bearish Divergence, Hidden Bearish Divergence, Cross Over Average, Cross Under Average.
Below are all of the inputs and their tooltips to get you started:
Settings:
Smoothing: Specifies the degree of smoothing applied to the oscillator. Higher values result in smoother but potentially less responsive signals.
Average Length: Sets the length of the moving average applied to the oscillator, affecting its sensitivity and smoothness.
Pivot Length: Specifies the forward-looking length for pivot points, affecting how the oscillator anticipates future price movements. This directly impacts the delay in finding a pivot.
Max Length: Sets the maximum length to consider for calculating the highest values in the oscillator.
Min Length: Defines the minimum length for calculating the lowest values in the oscillator.
Quick Update: Activates a faster update mode for the oscillator's extremities, which may result in less stable range boundaries.
Scale Offset: When enabled, delays updating minimum and maximum values to enhance signal directionality, allowing the signal to occasionally exceed normal bounds.
Candle Color: Enables coloring of candles based on the current directional signal of the oscillator.
Labels:
Enable BOS/CHoCH Labels: Activates the display of BOS (Break of Structure) and CHoCH (Change of Character) labels on the chart.
Visual Padding: Turns on additional visual padding at the top and bottom of the chart to accommodate labels. Determines the amount of visual padding added to the chart for label display.
Divergence:
Divergence Pivot: Defines the number of bars to the right of the pivot in divergence calculations, influencing the oscillator's responsiveness.
Divergence Pivot Forward: Directly impacts latency. Longer periods results in more accurate results at the sacrifice of delay.
Upper Range: Sets the upper range limit for divergence calculations, influencing the oscillator's sensitivity to larger trends.
Lower Range: Determines the lower range limit for divergence calculations, affecting the oscillator's sensitivity to shorter trends.
Symbol: Allows selection of the label style for divergence indicators, with options for text or symbolic representation.
Regular Bullish: Activates the detection and marking of regular bullish divergences in the oscillator.
Hidden Bullish: Enables the identification and display of hidden bullish divergences.
Regular Bearish: Turns on the feature to detect and highlight regular bearish divergences.
Hidden Bearish: Activates the functionality for detecting and displaying hidden bearish divergences.
Color:
Bullish: Determines the minimum/maximum color gradient for bullish signals, impacting the chart's visual appearance.
Bearish: Defines the minimum/maximum color gradient for bearish signals, affecting their visual representation.
Average: Specifies the color for the average line of the oscillator, enhancing chart readability.
CHoCH: Sets the color for bullish/bearish CHoCH (Change of Character) signals.
Premium/Discount: Determines the color for the premium/discount zone in the oscillator's visual representation.
Text Color: Sets the color for the text in BoS/CHoCH labels.
Regular Bullish: Defines the color used to represent regular bullish divergences.
Hidden Bullish: Specifies the color for hidden bullish divergences.
Regular Bearish: Determines the color for hidden bearish divergences.
Divergence Text Color: Specifies the color for the text in divergence labels.
Liquidation Volume (Zeiierman)█ Overview
The Liquidation Volume (Zeiierman) indicator highlights real-time long and short liquidations across all timeframes on TradingView. The indicator assists traders in identifying potential liquidation points in the market based on volume and price movements. Liquidation, in this context, refers to the forced closure of a trader's position due to insufficient margin in their account to support open positions, often occurring during significant price movements.
█ How It Works
The indicator operates primarily through the computation of a MomentumAdjustedPrice function, which is applied to volume-weighted prices (open, high, low, close) adjusted for volatility.
█ How to Use
Identifying Support and Resistance Levels: Liquidation data can provide valuable insights into key market levels where significant trading activities occur. These levels often act as support or resistance in the price chart. Support levels are typically where an asset's price finds a floor, as buying interest is significant enough to outweigh selling pressure. Conversely, resistance levels are where an asset's price may find a ceiling, with selling interest outweighing buying pressure. By analyzing liquidation data, traders can identify these critical points.
Start of a New Trend:
The initiation of a new trend can often be identified by a significant shift in liquidation volumes near breakout levels.
Trend Continuations:
Trend continuations are periods where the current trend is sustained and further confirmed by liquidation patterns. For example, in an uptrend, continuous short liquidations might occur, suggesting that the trend is strong and likely to persist as bearish traders keep getting squeezed out. In a downtrend, continuous long liquidations can serve as confirmation that the trend is still in place. Recognizing these patterns in liquidation data can help traders to stay aligned with the prevailing trend and avoid premature exits or entries against the trend.
Trend Reversals: Patterns in liquidations can be crucial in signaling potential trend reversals. A sudden and significant change in liquidation volumes—like a spike in long liquidations during a downtrend or short liquidations during an uptrend—can indicate that the current trend is losing steam and a reversal may be imminent. This information can be particularly useful for traders looking to anticipate market turns and adjust their strategies accordingly.
Spot Potential Liquidation Points: By observing the liquidation candles and their colors, traders can identify where large liquidations are likely occurring, signaling potential market turning points.
Understand Market Sentiment: Changes in liquidation volumes can provide insights into bullish or bearish sentiment, helping traders gauge the market mood. By observing liquidation patterns and clusters, traders can get insights into prevailing market sentiments and emerging trends.
█ Settings
Liquidation Source: Allows selection between 'Price' and 'Volume' for liquidation analysis.
Volume Period: Determines the period over which volume is averaged.
Volatility Period: Sets the length for calculating standard deviation, influencing the volatility measure.
Candle Display Toggle: Enables or disables the display of liquidation candles on the chart.
Threshold: Sets the level at which liquidation bars are triggered.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Swing based support and resistanceThis indicator provided here is for identifying swing-based support and resistance levels. It uses two swing lengths, which can be adjusted by the user, to identify swings in the price data. For each swing length, the script calculates the support level as the low of the swing if the trend is up, or the high of the swing if the trend is down. It then plots the support and resistance levels on the chart, along with buy and sell signals.
The buy and sell signals are generated by comparing the current closing price to the support and resistance levels. If the closing price is above the support level, the script plots a buy signal. If the closing price is below the level, the script plots a sell signal.
To use the script, you would first need to add it to your trading platform. Once it is added, you can configure the swing lengths and other parameters to suit your trading style. You can then apply the script to a chart and begin using the support and resistance levels and buy and sell signals to make trading decisions.
Points to be noted while using the indicator:
# The script is designed to be used on a daily chart. However, you can also use it on other timeframes, such as weekly or monthly charts.
# The swing lengths that you choose will depend on your trading style. If you are a swing trader, you may want to use longer swing lengths. If you are a day trader, you may want to use shorter swing lengths.
# Remember, the support and resistance levels generated by the script are not exact price points. They are rather zones where demand and supply can change. Therefore, you should always use other technical analysis tools and indicators to confirm your trading decisions.
# Overall, the script is a useful tool for identifying swing-based support and resistance levels. It can be used by traders of all experience levels to generate trading ideas and improve their trading performance.
To use the swing-based support and resistance indicator with respect to price, you can follow these steps:
=> Identify the support and resistance levels that have been generated by the indicator.
=> Look for price action that is taking place near these levels.
=> If the price is above the level, look for bullish reversals or continuations.
=> If the price is below the level, look for bearish reversals or continuations.
For Example,
=> Bullish reversal: The price is above the level and forms a bullish candlestick pattern, such as a bullish hammer or engulfing pattern.
=> Bullish continuation: The price is above the level and bounces off of the level.
=> Bearish reversal: The price is below the level and forms a bearish candlestick pattern, such as a bearish hammer or engulfing pattern.
=> Bearish continuation: The price is below the level and rejects the level.
$$ You can also use the indicator to identify potential trading entry and exit points. For example, you could enter a long trade when the price breaks above a resistance level and exit the trade when the price retraces to the resistance level. Or, you could enter a short trade when the price breaks below a support level and exit the trade when the price rallies to the support level.
This swing-based support and resistance indicator is just one tool that you can use to trade. You should always use other technical analysis tools and indicators, such as price action and trend analysis, to confirm your trading decisions.
Additionally:
=> Be aware of the overall trend direction. If the trend is up, you should be looking for bullish reversals or continuations. If the trend is down, you should be looking for bearish reversals or continuations.
=> Use a stop loss order to limit your risk on each trade.
=> Consider using a position sizing strategy to manage your risk.
=> Do your own research and backtest any trading strategy before using it in a live trading environment.
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HILOCLOP AnalysisThe "HILOCLOP Analysis" indicator is designed to analyze price data based on different conditions and provide insights into market trends and patterns. Let's break down its features and understand its potential usefulness in trading:
Sample Length: The indicator allows the user to specify the sample length, which determines the number of bars or periods considered for the analysis. This parameter can be adjusted to capture short-term or long-term trends and patterns in the market.
Raw Up/Down Analysis: The indicator calculates the number of occurrences where the current price values (high, low, open, close) are higher or lower than their previous values. It provides separate counts for each price component. By visualizing these counts on the chart, traders can identify periods of upward or downward movement in the price data.
HICLOP Analysis: The indicator offers a color scheme option called "HICLOP," which determines the color of the plotted results. If the HICLOP analysis is enabled, the plots representing raw up/down counts will have different colors based on whether the current count is higher or lower than the previous count. This color coding helps traders quickly identify changes in price trends.
Unchecking this Box will Show the general trend.
Raw HICLOP Color Scheme
Trend Color Scheme
Analysis Up vs. Down: The indicator provides an option to analyze instances where all four price components (high, low, open, close) are higher or lower than their respective previous values. This analysis helps traders identify periods of strong upward or downward movement in the market.
Analysis High vs. Low: The indicator compares the number of occurrences where the current high is higher than the previous high and the current low is higher than the previous low. It provides insights into whether the market is experiencing higher highs or higher lows, which can help traders determine the strength of an upward or downward trend.
Analysis Open vs. Close: The indicator compares the number of occurrences where the current close is higher than the previous close and the current open is higher than the previous open. This analysis helps traders assess the relationship between opening and closing prices, providing insights into the strength of buying or selling pressure in the market.
The usefulness of the "HILOCLOP Analysis" indicator in trading depends on the specific trading strategy and the trader's preferences. Here are a few potential use cases:
Trend Identification: By analyzing the raw up/down counts and the HICLOP color scheme, traders can identify trends and changes in price momentum. Increasing raw up counts and corresponding color changes to positive values may indicate an upward trend, while increasing raw down counts and negative color changes may suggest a downward trend.
Confirmation of Breakouts: Traders often look for confirmation of breakouts from key levels or chart patterns. The "Analysis Up V Dn" feature can help identify instances where all four price components simultaneously confirm a breakout, indicating a potentially significant move in the market.
Trend Reversals: The "Analysis High V Low" and "Analysis Open V Close" features can provide insights into potential trend reversals. For example, if there are more higher highs than higher lows, it may indicate a weakening trend, potentially signaling a reversal or a correction.
Composite MomentumComposite Momentum Indicator - Enhancing Trading Insights with RSI & Williams %R
The Composite Momentum Indicator is a powerful technical tool that combines the Relative Strength Index (RSI) and Williams %R indicators from TradingView. This unique composite indicator offers enhanced insights into market momentum and provides traders with a comprehensive perspective on price movements. By leveraging the strengths of both RSI and Williams %R, the Composite Momentum Indicator offers distinct advantages over a simple RSI calculation.
1. Comprehensive Momentum Analysis:
The Composite Momentum Indicator integrates the RSI and Williams %R indicators to provide a comprehensive analysis of market momentum. It takes into account both the strength of recent price gains and losses (RSI) and the relationship between the current closing price and the highest-high and lowest-low price range (Williams %R). By combining these two momentum indicators, traders gain a more holistic view of market conditions.
2. Increased Accuracy:
While the RSI is widely used for measuring overbought and oversold conditions, it can sometimes generate false signals in certain market environments. The Composite Momentum Indicator addresses this limitation by incorporating the Williams %R, which focuses on the price range and can offer more accurate signals in volatile market conditions. This combination enhances the accuracy of momentum analysis, allowing traders to make more informed trading decisions.
3. Improved Timing of Reversals:
One of the key advantages of the Composite Momentum Indicator is its ability to provide improved timing for trend reversals. By incorporating both RSI and Williams %R, traders can identify potential turning points more effectively. The Composite Momentum Indicator offers an early warning system for identifying overbought and oversold conditions and potential trend shifts, helping traders seize opportunities with better timing.
4. Enhanced Divergence Analysis:
Divergence analysis is a popular technique among traders, and the Composite Momentum Indicator strengthens this analysis further. By comparing the RSI and Williams %R within the composite calculation, traders can identify divergences between the two indicators more easily. Divergence between the RSI and Williams %R can signal potential trend reversals or the weakening of an existing trend, providing valuable insights for traders.
5. Customizable Moving Average:
The Composite Momentum Indicator also features a customizable moving average (MA), allowing traders to further fine-tune their analysis. By incorporating the MA, traders can smooth out the composite momentum line and identify longer-term trends. This additional layer of customization enhances the versatility of the indicator, catering to various trading styles and timeframes.
The Composite Momentum Indicator, developed using the popular TradingView indicators RSI and Williams %R, offers a powerful tool for comprehensive momentum analysis. By combining the strengths of both indicators, traders can gain deeper insights into market conditions, improve accuracy, enhance timing for reversals, and leverage divergence analysis. With the added customization of the moving average, the Composite Momentum Indicator provides traders with a versatile and effective tool to make more informed trading decisions.
ADX Extrapolation Is calculated by using the formula y(x)=y1+ (x−x1/x2−x1) * (y2−y1). Linear Extrapolation.
You can edit the x1 and x2 coordinate distance, where x is the current point, x1 is the number of periods previous, and x2 is two times the previous periods.
Measures the differences between a line of best fit and average line and issues signals when they exceed a multiplier of the extrapolated values.
It is ADX and +DI and -DI.
The ADX and +DI and -DI is set to be and oscillation as we are not calulating the values themselves, but the difference from the mean/best fit.
DI+ and DI- are simple to read, minus is orange, while plus is aqua. They operate as a normal 14 length DI plotted, but will turn red when they are trending stronger than expected, and green when trending weaker than expected.
The yellow line is the ADX, oscillating around the colored line 0. When the ADX is red it signals that the current trend is significantly stronger than expected and has a high chance of reversal. When the line is green is signifies the trend is significantly weaker than expected. A clear shortcoming is most trends ADX will read to be weaker than normal after a significant blow off or drop.
To make it as simple as possible, I included a large line at 0 under the ADX oscillation so you can just read that if you wish.
Bull Reversals:
green = stronger than extrap ADX and minus ***great signal
blue = stronger than extrap ADX and plus < minus ***good signal
purple = stronger than extrap minus and weaker than expected ADX ***ok signal
Bear Reversals:
red = stronger than extrap ADX and plus ***great signal
orange = stronger than extrap ADX and minus < plus ***good signal
yellow = stronger than extrap plus and weaker than expected ADX ***ok signal
Other than that is treated as normal ADX.
RSI Candles with EMA byAuncleJoeThe Relative Strength Index (RSI) is one of the most widely used momentum indicators in trading. It helps traders assess whether an asset is overbought or oversold by measuring the speed and magnitude of recent price changes. Traditionally, RSI is displayed as a single line oscillating between 0 and 100, but this representation can sometimes make it difficult to spot trends, reversals, and momentum shifts effectively.
To enhance RSI visualization and usability, the RSI Candles with EMA indicator transforms the RSI values into candlestick charts, providing a more intuitive and dynamic way to analyze momentum. Unlike the traditional RSI line, this approach allows traders to observe RSI trends just as they would analyze price charts, making it easier to detect changes in momentum and trend strength.
Each RSI candle represents a specific period’s momentum activity. Green candles indicate that the RSI closed higher than it opened, signaling bullish momentum, while red candles suggest that the RSI closed lower than it opened, indicating bearish sentiment. This candlestick-style visualization helps traders spot RSI trends, breakouts, and reversals more effectively than a simple line chart.
To further refine momentum analysis, this indicator also includes an Exponential Moving Average (EMA) of RSI. The EMA smooths RSI fluctuations and provides a clearer trend direction. When RSI candles remain above the EMA, it suggests strong buying momentum, whereas RSI candles falling below the EMA indicate increasing selling pressure. This combination of RSI candlesticks and an EMA line allows traders to better identify shifts in market sentiment and potential trend reversals.
Additionally, the indicator includes customizable overbought and oversold levels (defaulted at 70 and 30, respectively). These levels help traders recognize when an asset might be overextended in either direction, potentially signaling an upcoming reversal. When RSI candles approach or cross these thresholds, traders can anticipate possible changes in market direction.
This indicator is particularly useful for a wide range of traders. Scalpers and day traders can leverage it to quickly identify short-term momentum shifts, while swing traders can use it to detect potential reversals in multi-day trends. Trend-following traders can confirm bullish or bearish trends based on RSI’s position relative to its EMA, and mean reversion traders can use it to spot extreme conditions where price action might snap back.
By combining RSI candlesticks with an EMA filter, this indicator provides a more dynamic and visually intuitive approach to momentum trading. It offers clearer trend signals, better reversal detection, and enhanced decision-making, making it an essential tool for traders who rely on RSI-based strategies.
TICK+ [Pt]█ TICK+ – Advanced US Market Internals & TICK Distribution Tool
TICK+ is a comprehensive indicator that decodes US market internals by leveraging the TICK index—the net difference between stocks ticking up and those ticking down. Unlike many standard TICK tools that only plot raw values, TICK+ provides multiple visualization modes, dynamic moving averages, an independent MA Ribbon, a detailed distribution profile, divergence and pivot analysis, and real-time data tables. This integrated approach offers both visual and quantitative insights into intraday market breadth, trend sustainability, and potential reversals—making it an indispensable tool for trading US indices, futures, and blue‑chip stocks.
Market internals enthusiasts often consider the TICK index indispensable for trading these markets. By offering an immediate snapshot of sentiment and confirming trends through additional analytics, TICK+ gives traders a decisive edge—helping to determine whether a rally is truly supported by broad participation or if caution is warranted.
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█ Key Features:
► Market Internal – Multiple Display Modes:
Line Mode: Plots the TICK index as a continuous line for a clear view of real‑time values and trend direction.
Bar Mode: Uses traditional bar charts to represent the TICK index, emphasizing the magnitude of changes.
Heikin Ashi Mode: Applies the Heikin Ashi technique to smooth out fluctuations, making the underlying trend easier to discern.
Iceberg TICK Mode: Fills the area between zero and the highs in green, and between zero and the lows in red—highlighting how long the market remains in positive versus negative territory.
How It Works & Usage:
These display modes enable traders to select the visualization that best fits their analysis style. For instance, Iceberg TICK Mode highlights the duration of market strength or weakness, a critical factor for intraday directional assessment.
Comparison of Display Modes
► Dual Moving Average – Fast & Slow:
Computes two moving averages on the TICK index:
• Fast MA – reacts quickly to recent changes.
• Slow MA – confirms the overall trend.
Crossovers provide clear signals:
• Fast MA crossing above the slow MA indicates rising bullish momentum.
• Fast MA crossing below the slow MA indicates increasing bearish pressure.
How It Works & Usage:
These dual moving averages assist in detecting momentum shifts. Crossover signals can be used to time entries and exits to align with prevailing market sentiment.
Dual MA Crossover Example
► Moving Average / Smoothed MA – Smoothed & Base Moving Averages:
Calculates a Base MA and a Smoothed MA on the TICK index to reduce short‑term volatility.
Helps clarify the prevailing trend, providing additional confirmation alongside the dual moving averages.
How It Works & Usage:
These averages filter out noise and offer extra validation of the current trend, enhancing the reliability of trading signals.
Base and Smoothed MA Example
► Moving Average Ribbon – MA Ribbon:
Independently plots several moving averages together as a “ribbon,” each line customizable in length and type.
Visually reflects overall market directional strength:
• Consistent green color indicate sustained bullish conditions.
• Uniform red color indicate prevailing bearish sentiment.
How It Works & Usage:
The MA Ribbon provides a layered perspective on market internals. It enables traders to quickly gauge the robustness of a trend or identify early signs of a potential reversal.
MA Ribbon Trend and Shading
► Divergence - Pivot based – Divergence & Pivot Analysis:
Integrates divergence detection with pivot-based trendline analysis.
Identifies instances when the TICK index and price action diverge, serving as an early warning of a weakening trend.
How It Works & Usage:
Divergence signals help refine trade entries and exits by indicating potential trend reversals or adjustments in market sentiment.
Divergence Analysis
► TICK Distribution Profile – TICK Distribution Profile:
Divides the TICK index range into multiple bins to create a profile of how TICK values are distributed.
Identifies the point of control—the level where most TICK readings concentrate—relative to zero.
Allows adjustment of the lookback period to detect shifts in market bias, such as a move from a neutral zone toward extreme levels.
How It Works & Usage:
By visualizing the distribution of TICK readings, traders can monitor changes in market internals that may precede significant trend changes.
TICK Distribution Profile
► ZigZag – ZigZag:
Applies a zigzag algorithm to filter out minor fluctuations and identify significant swing highs and lows.
Highlights trend extremities and potential reversal points.
Offers an optional extension to the last bar for dynamic trend tracking.
How It Works & Usage:
The ZigZag feature helps traders focus on the major price swings that define market structure, eliminating the noise of insignificant movements.
ZigZag Example
► Pivot Trendline – Pivot Trendline:
Draws trendlines connecting pivot highs and pivot lows.
Provides settings to display only the most recent trendline or extend the last trendline.
Assists in identifying evolving support and resistance levels.
How It Works & Usage:
Pivot trendlines offer clear visual cues for key price levels and potential reversal zones, aiding in the timing of trades.
Pivot Trendline Example
► TICK Levels – TICK Levels:
Defines key thresholds for the TICK index, including neutral levels, trend zones, and overbought/oversold (OB/OS) extremes.
Highlights these levels to assist in identifying conditions that may trigger caution or present opportunities.
How It Works & Usage:
Marking these levels provides an immediate reference for assessing when the TICK index enters critical zones, guiding risk management and trade planning.
TICK Levels
► Background Color – Background Color:
Optionally changes the chart background based on TICK or moving average thresholds.
Provides additional visual cues regarding shifts in market sentiment.
How It Works & Usage:
Background color changes help reinforce key signals by immediately indicating shifts in market internals, enhancing overall situational awareness.
Background Color Example
► Data Tables – Data Table:
Displays essential market data in a single, easy-to-read table, including the TICK index source, market sentiment (e.g. Bullish, Bearish, or Neutral), trend status (such as Accelerating ⇗ or Retracing ⇘), and the current TICK value with color-coded strength.
Consolidates numerical data for a quick and precise assessment of market internals.
How It Works & Usage:
The data tables provide live, numerical feedback that complements the visual analysis, making it easy to monitor market sentiment and trend changes at a glance.
Data Table Display with Metrics
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█ Customization & Input Flexibility:
TICK+ offers extensive input options organized into feature‑specific groups, enabling traders to tailor the tool to various strategies:
► Market Internals Group:
Selects the primary TICK index source (with an optional custom override).
Provides a choice of display modes (Line, Bar, Heikin Ashi, Iceberg TICK) with configurable color schemes.
Includes options for iceberg overlays and highlighting.
► Moving Averages Groups (Dual, Smoothed/Base, MA Ribbon):
Dual MA group: Settings for fast and slow moving averages, including type, length, color, and crossover alerts.
Smoothed/Base MA group: Additional methods to filter out short‑term noise and confirm trends.
MA Ribbon group: Independently plots multiple moving averages as a ribbon, with full customization for each line.
► Divergence & Profile Groups:
Includes inputs for divergence detection (source, pivot lookback) and customization of the TICK Distribution Profile (lookback period, color thresholds, layout details).
► ZigZag & Pivot Trendline Groups:
Allows customization of zigzag parameters to highlight trend extremities.
Provides settings for pivot trendline appearance and behavior.
► TICK Levels & Background Colors:
Defines thresholds for neutral, trend, and extreme levels.
Offers color selections for level markers and optional background shading.
► Data Table Configuration:
Enables setting of table location, lookback intervals, and font size to present essential TICK metrics in a user‑friendly format.
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█ Additional Insights:
► TICK Index Fundamentals:
Monitors the net difference between stocks ticking up and down.
A positive reading indicates broader market participation, while a negative reading suggests increased selling pressure.
Understanding how long the TICK stays above or below zero is crucial for gauging intraday momentum.
► Role of Moving Averages:
Smooth out short‑term fluctuations, helping to highlight the prevailing trend.
Crossovers between fast and slow MAs can serve as clear signals for market momentum shifts.
► Interpreting the MA Ribbon:
Provides a layered perspective on market direction.
Consistent color and alignment confirm a strong trend, while variations may hint at reversals.
► Utility of the Distribution Profile:
Breaks down the TICK index into bins, identifying the point of control.
Changes in this control zone—particularly over different lookback periods—can signal potential trend changes.
► Precision of Data Tables:
Supplies live numerical feedback on key market internals, ensuring trading decisions are based on precise, real‑time measurements.
► Comparative Advantage:
Unlike many TICK tools that simply plot raw values, TICK+ provides an integrated, multidimensional analysis of market internals.
Its advanced features—ranging from unique display modes to sophisticated analytical components—make it indispensable for trading US indices, futures, and blue‑chip stocks.
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Disclaimer
This indicator is provided for educational and research purposes only and does not constitute financial advice. Trading involves risk, and thorough testing on historical data is recommended before applying any strategy using TICK+ in live markets.
WaveTrend Divergences, Candle Colouring and TP Signal [LuciTech]WaveTrend is a momentum-based oscillator designed to track trend strength, detect divergences, and highlight potential take-profit zones using Bollinger Bands. It provides a clear visualization of market conditions to help traders identify trend shifts and exhaustion points.
The WaveTrend Oscillator consists of a smoothed momentum line (WT Line) and a signal line, which work together to indicate trend direction and possible reversals. When the WT Line crosses above the signal line, it suggests bullish momentum, while crossing below signals bearish momentum.
Candle colouring changes dynamically based on WaveTrend crossovers. If the WT Line crosses above the signal line, candles turn bullish. If the WT Line crosses below the signal line, candles turn bearish. This provides an immediate visual cue for trend direction.
Divergence Detection identifies when price action contradicts the WaveTrend movement.
Bullish Divergence appears when price makes a lower low, but the WT Line forms a higher low, suggesting weakening bearish pressure.
Bearish Divergence appears when price makes a higher high, but the WT Line forms a lower high, indicating weakening bullish pressure.
Plus (+) Divergences are stronger signals that occur when the first pivot of the divergence happens at an extreme level—above +60 for bearish divergence or below -60 for bullish divergence. These levels suggest the market is overbought or oversold, making the divergence more significant.
Bollinger Band Signals highlight potential take-profit zones by detecting when the WT Line moves beyond its upper or lower Bollinger Band.
If the WT Line crosses above the upper band, it signals stretched bullish momentum, suggesting a possible pullback or reversal.
If the WT Line crosses below the lower band, it indicates stretched bearish momentum, warning of a potential bounce.
How It Works
The WaveTrend momentum calculation is based on an EMA-smoothed moving average to filter out noise and provide a more reliable trend indication.
The WT Line (momentum line) fluctuates based on market momentum.
The signal line smooths out the WT Line to help identify trend shifts.
When the WT Line crosses above the signal line, it suggests buying pressure, and when it crosses below, it indicates selling pressure.
Divergences are detected by comparing pivot highs and lows in price with pivot highs and lows in the WT Line.
A pivot forms when a local high or low is confirmed after a certain number of bars.
The indicator tracks whether price action and the WT Line are making opposite movements.
If a divergence occurs and the first pivot was beyond ±60, it is marked as a Plus Divergence, making it a stronger reversal signal.
Bollinger Bands are applied directly to the WT Line instead of price, identifying when the WT Line moves outside its volatility range. This helps traders recognize when momentum is overstretched and a potential reversal or retracement is likely.
Settings
Channel Length (default: 8) controls the period used to calculate the WT Line.
Average Length (default: 16) smooths the WT Line for better trend detection.
Divergences (on/off) enables or disables divergence plotting.
Candle colouring (on/off) applies or removes trend-based candle colour changes.
Bollinger Band Signals (on/off) toggles take-profit signals when the WT Line crosses the bands.
Bullish/Bearish colours allow customization of divergence and signal colours.
Interpretation
The WaveTrend Oscillator helps traders assess market momentum and trend strength.
Crossovers between the WT Line and signal line indicate potential trend reversals.
Divergences warn of weakening momentum and possible reversals, with Plus Divergences acting as stronger signals.
Bollinger Band Crosses highlight areas where momentum is overstretched, signaling potential profit-taking opportunities.
Uptrick: FRAMA Matrix RSIUptrick: FRAMA Matrix RSI
Introduction
The Uptrick: FRAMA Matrix RSI is a momentum-based indicator that integrates the Relative Strength Index (RSI) with the Fractal Adaptive Moving Average (FRAMA). By applying FRAMA's adaptive smoothing to RSI—and further refining it with a Zero-Lag Moving Average (ZLMA)—this script creates a refined and reliable momentum oscillator. The indicator now includes enhanced divergence detection, potential reversal signals, customizable buy/sell signal options, an internal stats table, and a fully customizable bar coloring system for an enhanced visual trading experience.
Why Combine RSI with FRAMA
Traditional RSI is a well-known momentum indicator but has several limitations. It is highly sensitive to price fluctuations, often generating false signals in choppy or volatile markets. FRAMA, in contrast, adapts dynamically to price changes by adjusting its smoothing factor based on market conditions.
By integrating FRAMA into RSI calculations, this indicator reduces noise while preserving RSI's ability to track momentum, adapts to volatility by reducing lag in trending markets and smoothing out choppiness in ranging conditions, enhances trend-following capability for more reliable momentum shifts, and refines overbought and oversold signals by adjusting to the current market structure.
With the new enhancements, such as a manual alpha input, noise filtering, divergence detection, and multiple buy/sell signal options, the indicator offers even greater flexibility and precision for traders. This combination improves the standard RSI by making it more adaptive and responsive to market changes.
Originality
This indicator is unique because it applies FRAMA's adaptive smoothing technique to RSI, creating a dynamic momentum oscillator that adjusts to different market conditions. Many traditional RSI-based indicators either use fixed smoothing methods like exponential moving averages or employ basic RSI calculations without adjusting for volatility.
This script stands out by integrating several elements, including the fractal dimension-based smoothing of FRAMA to reduce noise while retaining responsiveness, the use of Zero-Lag Moving Average smoothing to enhance trend sensitivity and reduce lag, divergence detection to highlight mismatches between price action and RSI momentum, a noise filter and manual alpha option to prevent minor fluctuations from generating false signals, customizable buy/sell signal options that let traders choose between ZLMA-based or FRAMA RSI-based signals, an internal stats table displaying real-time FRAMA calculations such as fractal dimension and the adaptive alpha factor, and a fully customizable bar coloring system to visually distinguish bullish, bearish, and neutral conditions.
Features
Adaptive FRAMA RSI
The indicator applies FRAMA to RSI values, making the momentum oscillator adaptive to volatility while filtering out noise. Unlike a traditional RSI that reacts equally to all price movements, FRAMA RSI adjusts its smoothing factor based on market structure, making it more effective for identifying true momentum shifts.
Zero-Lag Moving Average (ZLMA)
A smoothing technique that minimizes lag while preserving the responsiveness of price movements. It is applied to the FRAMA RSI to further refine signals and ensure smoother trend detection.
Bullish and Bearish Threshold Crossovers
This system compares FRAMA RSI to a user-defined threshold (default is 50). When FRAMA RSI moves above the threshold, it indicates bullish momentum, while movement below signals bearish conditions. The enhanced noise filter ensures that only significant moves trigger signals.
Noise Filter and Manual Alpha
A new noise filter input prevents tiny fluctuations from triggering false signals. In addition, a manual alpha option allows traders to override the automatically computed smoothing factor with a custom value, providing extra control over the indicator’s sensitivity.
Divergence Detection
The indicator identifies divergence patterns by comparing FRAMA RSI pivots to price action. Bullish divergence occurs when price makes a lower low while FRAMA RSI makes a higher low, and bearish divergence occurs when price makes a higher high while FRAMA RSI makes a lower high. These signals can help traders anticipate potential reversals.
Reversal Signals
Labels appear on the chart when FRAMA RSI confirms classic RSI overbought (70) or oversold (30) conditions, providing visual cues for potential trend reversals.
Buy and Sell Signal Options
Traders can now choose between two signal-generation methods. ZLMA-based signals trigger when the ZLMA of FRAMA RSI crosses key overbought (70) or oversold (30) levels, while FRAMA RSI-based signals trigger when FRAMA RSI itself crosses these levels. This added flexibility allows users to tailor the indicator to their preferred trading style.
ZLMA:
FRAMA:
Customizable Alerts
Alerts notify traders when FRAMA RSI crosses key levels, divergence signals occur, reversal conditions are met, or buy/sell signals trigger. This ensures that important trading events are not missed.
Fully Customizable Bar Coloring System
Users can color bars based on different conditions, enhancing visual clarity. Bar coloring modes include: FRAMA RSI threshold (bars change color based on whether FRAMA RSI is above or below the threshold), ZLMA crossover (bars change when ZLMA crosses overbought or oversold levels), buy/sell signals (bars change when official signals trigger), divergence (bars highlight when bullish or bearish divergence is detected), and reversals (bars indicate when RSI reaches overbought or oversold conditions confirmed by FRAMA RSI). The system also remembers the last applied bar color, ensuring a smooth visual transition.
Input Parameters and Features
Core Inputs
RSI Length (default: 14) defines the period for RSI calculations.
FRAMA Lookback (default: 16) determines the length for the FRAMA smoothing function.
RSI Bull Threshold (default: 50) sets the level above which the market is considered bullish and below which it is bearish.
Noise Filter (default: 1.0) ensures that small fluctuations do not trigger false bullish or bearish signals.
Additional Features
Show Bull and Bear Alerts (default: true) enables notifications when FRAMA RSI crosses the threshold.
Enable Divergence Detection (default: false) highlights bullish and bearish divergences based on price and FRAMA RSI pivots.
Show Potential Reversal Signals (default: false) identifies overbought (70) and oversold (30) levels as possible trend reversal points.
Buy and Sell Signal Option (default: ZLMA) allows traders to choose between ZLMA-based signals or FRAMA RSI-based signals for trade entry.
ZLMA Enhancements
ZLMA Length (default: 14) determines the period for the Zero-Lag Moving Average applied to FRAMA RSI.
Visualization Options
Show Internal Stats Table (default: false) displays real-time FRAMA calculations, including fractal dimension and the adaptive alpha smoothing factor.
Show Threshold FRAMA Signals (default: false) plots buy and sell labels when FRAMA RSI crosses the threshold level.
How It Works
FRAMA Calculation
FRAMA dynamically adjusts smoothing based on the price fractal dimension. The alpha smoothing factor is derived from the fractal dimension or can be set manually to maintain responsiveness.
RSI with FRAMA Smoothing
RSI is calculated using the user-defined lookback period. FRAMA is then applied to the RSI to make it more adaptive to volatility. Optionally, ZLMA is applied to further refine the signals and reduce lag.
Bullish and Bearish Threshold Crosses
A bullish condition occurs when FRAMA RSI crosses above the threshold, while a bearish condition occurs when it falls below. The noise filter ensures that only significant trend shifts generate signals.
Buy and Sell Signal Options
Traders can choose between ZLMA crossovers or FRAMA RSI crossovers as the basis for buy and sell signals, offering flexibility in trade entry timing.
Divergence Detection
The indicator identifies divergences where price action and FRAMA RSI momentum do not align, potentially signaling upcoming reversals.
Reversal Signal Labels
When classic RSI overbought or oversold levels are confirmed by FRAMA RSI conditions, reversal labels are added on the chart to highlight potential exhaustion points.
Bar Coloring System
Bars are dynamically colored based on various conditions such as RSI thresholds, ZLMA crossovers, buy/sell signals, divergence, and reversals, allowing traders to quickly interpret market sentiment.
Alerts and Internal Stats
Customizable alerts notify traders of key events, and an optional internal stats table displays real-time calculations (fractal dimension, alpha value, and RSI values) to help users understand the underlying dynamics of the indicator.
Summary
The Uptrick: FRAMA Matrix RSI offers an enhanced approach to momentum analysis by combining RSI with adaptive FRAMA smoothing and additional layers of signal refinement. The indicator now includes adaptive RSI smoothing to reduce noise and improve responsiveness, Zero-Lag Moving Average filtering to minimize lag, divergence and reversal detection to identify potential turning points, customizable buy/sell signal options that let traders choose between different signal methodologies, a fully customizable bar coloring system to visually distinguish market conditions, and an internal stats table for real-time insight into FRAMA calculation parameters.
Whether used for trend confirmation, divergence detection, or momentum-based strategies, this indicator provides a powerful and adaptive approach to trading.
Disclaimer
This script is for informational and educational purposes only. Trading involves risk, and past performance does not guarantee future results. Always conduct proper research and consult with a financial advisor before making trading decisions.
