Super OrderBlock / FVG / BoS Tools by makuchaku & eFeThis super indicator is a Swiss army knife for Smart Money traders for OrderBlocks / FVG / BoS
It provides many options for drawing (non-repainting) boxes for OrderBlocks, Fair Value Gaps (FVG) and Break of Structures. The boxes are extended into the future, until the first retest/mitigation.
Some of the additional options (not explained in the diagrams above)
PPDD OB : An order block which is formed after interacting with Liquidity (old low/high, fractal low/high, etc). Since these OB's are in the most premium or most discount, they are Premium Premium Discount Discount OB's (PPDD OB)
HVB Bars : When the volume of any bar is higher than the average volume of last N bars, it could mean something important (in the right context). Hence, the indicator allows for coloring them differently.
This indicator was built as a collaboration between @makuchaku & eFe
Pro tip : This indicator is a simply a tool to visualize trading concepts on the candle stick chart. It is the job of the trader to sequence these effectively into a profitable trade.
If you come across any bug or have a question on how to effectively use the indicator, please don't hesitate to ask questions.
Good luck & good trading!
Cerca negli script per "smart"
Earthquake Effect by DGTInstitutional investors have a profound impact on financial instruments prices because of the large volume, and their trading activities can greatly impact the price of financial instruments. They sometimes may split trades over time in order to not make a material impact and of course not to decrease liquidity to the point where there may be no one to take the other side of the trade.
Institutional investors (Smart Money) may create an Elephant Effect on the prices of financial instruments, and this study aims to display by emphasizing high volume changes
In the memory of the North Anatolian Earthquake that struck on August 17, 1999, that we remember with pain today, and similarities of plotting outcomes to seismograph plotting I preferred to name this study as Earthquake Effect (SEISMOGRAPH)
Disclaimer:
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
Liquidity Levels (Smart Swing Lows)Liquidity Levels — Smart Swing Low Detection
Efficient Liquidity Sweep Visualization for Smart Money Traders
This script automatically identifies and plots liquidity-rich swing lows based on pivot logic, filters them to remove redundant levels, and overlays daily highs/lows for added context — giving Smart Money Concept (SMC) traders a clean, actionable map of liquidity.
It’s designed to be minimal yet powerful: perfect for spotting potential liquidity grabs, mitigation zones, and sweep targets with zero chart clutter.
🔍 What This Script Does:
Detects Smart Swing Lows
Uses fixed pivot detection (left = 3, right = customizable) to identify structurally significant swing lows.
Filters out swing lows that are too close together using a percentage-based spacing threshold to reduce noise.
Mitigation Cleanup Logic
Tracks whether recent price action breaches past swing lows.
If breached, the swing level is automatically removed, keeping only relevant, unmitigated liquidity levels on your chart.
Plots Daily Highs and Lows
Each new trading day, horizontal rays mark the prior day’s high and low — useful for identifying resting liquidity and possible sweep zones.
Labeling and Style Customization
Optional labels for swing lows.
Full control over label size, color, and visibility to match any chart aesthetic.
Timeframe Filtering
Runs exclusively on 5m, 10m, and 15m charts to ensure optimal reliability and signal clarity.
⚙️ Customization Features:
Pivot sensitivity (Right side control)
Minimum distance between swing lows (in %)
Label visibility, size, and color
Line width and colors for both swing levels and daily highs/lows
Mitigation cleanup lookback length
💡 How to Use:
Add the script to a qualifying intraday chart (5–15m).
Use the swing low levels to monitor liquidity-rich zones.
Combine with your personal strategy to identify liquidity grabs, potential reversal zones, or entry points following a sweep.
Let the built-in cleanup logic remove any already-mitigated levels so you can focus on active targets.
🚀 What Makes It Unique:
This isn’t just another pivot plotter — it’s a smart, self-cleaning SMC tool designed for modern liquidity-based trading strategies.
A must-have for traders using concepts like liquidity grabs, mitigation blocks, or sweep-to-reverse trade models.
🔗 Best used in combination with:
✅ First FVG — Opening Range Fair Value Gap Detector: Pinpoint the day’s first imbalance zone for intraday setups.
✅ ICT SMC Liquidity Grabs + OB + Fibonacci OTE Levels: Confluence-based entries powered by liquidity logic, order blocks, and premium/discount zones.
Used together, these scripts form a complete Smart Money toolkit — helping you build high-probability setups with confidence, clarity, and clean charts.
Wyckoff Range Detector [Beta] + Smart Money ElementsThis indicator detects the key phases of the Wyckoff market structure and integrates smart money elements, such as Order Blocks (OB), Fair Value Gaps (FVG), and Breaker Blocks. It also helps identify potential reversal zones (LPS, UTAD, Spring), breakout opportunities, and provides automatic Risk-Reward (R:R) calculations.
Key Features:
Wyckoff Phases Detection:
Automatically detects key phases of Wyckoff's market structure:
B (Range) – The initial range of accumulation.
C (Spring Phase) – Accumulation phase with a potential breakout.
C (UTAD Phase) – Upthrust After Distribution, indicating a potential reversal.
D (LPS Phase) – Last Point of Support, signaling accumulation before a breakout.
E (Breakout) – Phase marking breakout from range.
Re-Accumulation – Possible continuation in the range after a breakout.
Re-Distribution – Possible breakdown of a distribution phase.
Smart Money Elements:
Order Blocks (OB): Identifies Bullish and Bearish OBs to anticipate market entries.
Fair Value Gap (FVG): Highlights imbalance areas where price is likely to return.
Breaker Blocks: Marks areas where the price has previously broken a structure, indicating strong supply/demand zones.
Automatic Risk-Reward Calculation:
Smart RR: Automatically calculates Risk-Reward (R:R) ratios from LPS phases and Order Blocks. It draws lines to indicate target and stop levels with green for the target and red for the stop.
Visual representation of the entry signal with target and stop levels displayed.
Alerts:
Set alerts for phase changes, breakout, re-accumulation, or re-distribution to stay updated on the market’s movements.
Visual Tools:
Labels are used to indicate key zones such as AR, SC, LPS, and Spring Zones.
Draw boxes for the Spring and LPS phases to highlight areas where price action is likely to reverse.
Lines to represent potential breakouts, with customizable risk-reward indicators.
How to Use:
Apply the Indicator on any chart.
Identify Wyckoff phases to understand market trends.
Monitor Smart Money Elements (OB, FVG, Breaker) for entry and exit points.
Use automatic Risk-Reward levels for managing trades.
Set alerts for various Wyckoff phases and smart money signals to stay updated.
RSI+ Crypto Smart Strategy by Ignotus ### **RSI+ Crypto Smart Strategy by Ignotus**
**Description:**
The **RSI+ Crypto Smart Strategy by Ignotus** is an advanced and visually enhanced version of the classic **Relative Strength Index (RSI)**, developed by the **Crypto Smart** community. This indicator is designed to provide traders with a clear and actionable view of market momentum, overbought/oversold conditions, and potential reversal points. With its sleek design, customizable settings, and intuitive visual signals, this tool is perfect for traders who want to align their strategies with the principles of the **Crypto Smart** methodology.
Whether you're a beginner or an experienced trader, this indicator simplifies technical analysis while offering powerful insights into market behavior. It combines traditional RSI calculations with advanced visual enhancements and natural language interpretations, making it easier than ever to interpret market conditions at a glance.
---
### **Key Features:**
1. **Enhanced RSI Visualization:**
- The RSI line dynamically changes color based on its position relative to the 50-level midpoint:
- **Green** for bullish momentum (RSI > 50).
- **Red** for bearish momentum (RSI < 50).
- Overbought (default: 70) and oversold (default: 30) levels are clearly marked with customizable colors and shaded clouds for better visibility.
2. **Customizable Settings:**
- Adjust the RSI period, overbought/oversold thresholds, and background transparency to match your trading style.
- Fine-tune pivot lookback ranges and other parameters to adapt the indicator to different timeframes and assets.
3. **Interactive Information Table:**
- A compact, easy-to-read table provides real-time data on the current RSI value, its direction (▲, ▼, →), and a natural language interpretation of market conditions.
- Choose from three text sizes (small, medium, large) to optimize readability.
4. **Natural Language Interpretations:**
- The indicator includes a detailed explanation of the RSI's current state in plain English:
- Momentum trends (bullish, bearish, or neutral).
- Overbought/oversold warnings with potential reversal alerts.
- Clear guidance on whether the market is trending or ranging.
5. **Visual Buy/Sell Signals:**
- Triangles (▲ for buy, ▼ for sell) highlight potential entry and exit points based on RSI crossovers and divergence patterns.
- Configurable alerts notify you in real-time when key signals are triggered.
6. **Improved Aesthetics:**
- Clean, modern design with customizable colors for lines, clouds, and backgrounds.
- Dynamic shading and transparency options enhance chart clarity without cluttering the workspace.
---
### **How to Use This Indicator:**
- **Overbought/Oversold Zones:** Use the RSI's overbought (above 70) and oversold (below 30) zones to identify potential reversal points. Look for confirmation from price action or other indicators before entering trades.
- **Momentum Analysis:** Monitor the RSI's position relative to the 50-level midpoint to gauge bullish or bearish momentum.
- **Trend Identification:** Combine the RSI's readings with price trends to confirm the strength and direction of the market.
- **Entry/Exit Signals:** Use the visual signals (triangles) to spot potential entry and exit points. These signals are particularly useful for swing traders and scalpers.
---
### **Why Choose RSI+ Crypto Smart Strategy?**
This indicator is more than just an RSI—it's a complete tool designed to streamline your trading process. By focusing on clarity, customization, and actionable insights, the **RSI+ Crypto Smart Strategy** empowers traders to make informed decisions quickly and confidently. Whether you're trading cryptocurrencies, stocks, or forex, this indicator adapts seamlessly to your needs.
---
### **Developed by Crypto Smart:**
The **RSI+ Crypto Smart Strategy by Ignotus** is part of the **Crypto Smart** ecosystem, a community-driven initiative aimed at providing innovative tools and strategies for traders worldwide. Our mission is to simplify technical analysis while maintaining the depth and precision required for successful trading.
If you find this indicator helpful, please leave a review and share it with fellow traders! Your feedback helps us continue developing cutting-edge tools for the trading community.
---
### **Disclaimer:**
This indicator is a technical analysis tool and should not be considered financial advice. Trading involves risk, and past performance is not indicative of future results. Always conduct your own research and consult with a financial advisor before making trading decisions. Use of this indicator is at your own risk.
Trailing Stop Loss Smart [TradingFinder] Market Trend + CVD/EMA🔵 Introduction
Trailing Stop Loss (TSL) is one of the most powerful tools available. A Trailing Stop Loss is a modification of a typical stop order that adjusts dynamically based on market price movement. It can be set at a defined percentage or dollar amount away from the security's current market price, making it a flexible tool for locking in profits while minimizing risk. Unlike standard stop-loss orders, a Trailing Stop follows the market in the direction of the trade, protecting gains without requiring constant manual adjustments.
The Trailing Stop Loss Smart (TFlab Trailing Stop) indicator takes this concept even further by incorporating advanced metrics like Cumulative Volume Delta (CVD), volume dynamics, and Average True Range (ATR). This combination not only enhances risk management but also acts as a trend identifier, providing traders with a powerful tool to capitalize on both short-term and long-term price movements.
This indicator also supports various Order Types, allowing for flexible strategies that include a trailing stop/stop-loss combo to maximize winning trades while minimizing losses. The trailing stop limit is particularly useful for traders who want to set their stop at a precise level relative to the current market price, either by a percentage or a dollar amount. The Trailing Stop Loss Smart indicator can help ensure that traders do not exit too early during trends, while the stop-loss feature kicks in during reversals.
The advantages of using a Trailing Stop Loss are its ability to protect profits and reduce the emotional decision-making process in volatile markets. However, like all trading strategies, it has disadvantages, such as the risk of triggering too early during normal market fluctuations. By understanding how the Trailing Stop Loss Smart indicator integrates features like CVD, ATR, and volume analysis, traders can leverage its full potential while navigating these pros and cons.
With its unique ability to track market movements and trends using Cumulative Volume Delta, volume dynamics, and ATR-based trailing stops, this indicator offers a complete solution for traders looking to secure profits while minimizing downside risk. Whether you're employing a simple trailing stop or a trailing stop/stop-loss combo, this tool provides all the flexibility and precision needed to execute winning trades in various markets, including Forex, Crypto, and Stock.
🔵 How to Use
The Trailing Stop Loss Smart indicator integrates multiple advanced components to provide traders with superior risk management and trend identification.
Here’s how each part of the logic works :
🟣 Cumulative Volume Delta (CVD) Logic
The CVD tracks buying and selling pressure by calculating the difference between upward and downward price movements. When there’s more buying pressure, the CVD is positive, indicating a potential bullish trend. Conversely, more selling pressure results in a negative CVD, pointing to a bearish trend.
CVD Trend Detection : The indicator determines whether the market is in a bullish or bearish phase by comparing the CVD to its moving average. A bullish trend is confirmed when the CVD is above its moving average and the price is closing higher.
A bearish trend occurs when the CVD is below its moving average and the price is closing lower. This trend detection is critical for determining whether the trailing stop should be placed below the price (bullish) or above it (bearish).
🟣 Volume Dynamics
Volume is a key factor in identifying market strength. The Trailing Stop Loss Smart indicator pulls volume data based on the market selected (Forex, Crypto, or Stock) and adjusts the trailing stop based on whether the market is experiencing high volume or low volume.
High Volume : When the current volume exceeds the average volume, the market is in a high-volume state. During these conditions, the trailing stop is placed closer to the price, as high volume often indicates strong trends with less chance of reversals.
Low Volume : In low-volume conditions, the trailing stop gives the market more room to breathe by placing the stop further away from the price. This prevents premature stop-outs in periods of reduced market activity.
🟣 ATR-Based Trailing Stop
The Average True Range (ATR) is used to measure market volatility. The Trailing Stop Loss Smart uses the ATR to dynamically adjust the stop-loss distance.
Bullish Market : When a bullish trend is detected, the trailing stop is placed below the lowest price of the recent bars (determined by the Bar Back parameter), and adjusted by the ATR Multiplier. This allows for tighter protection during strong bullish trends.
Bearish Market : When the market is bearish, the trailing stop is placed above the highest price of recent bars, also adjusted by the ATR Multiplier. This ensures that short positions are safeguarded against sudden reversals.
🟣 Dynamic Stop-Loss Updates
The trailing stop is updated every few bars (according to the Refiner parameter), ensuring it remains relevant to the most recent price action and volume changes. This dynamic feature ensures the stop-loss adapts to both trending and volatile market conditions, without requiring manual intervention.
High Volume with Trends : In periods of high volume and a confirmed trend, the stop-loss is positioned tightly to lock in profits while minimizing the risk of reversal.
Low Volume with Trends : In low-volume conditions, the stop-loss is placed further from the price, allowing the market to move freely without triggering premature exits.
🟣 Visual Representation
The indicator visually represents the trailing stop on the chart, with green lines indicating bullish trends and red lines for bearish trends. This visual aid helps traders quickly assess the state of the market and the position of their trailing stop in real-time.
🔵 Settings
The Trailing Stop Loss Smart indicator offers several customizable settings to suit various trading strategies. Understanding these inputs is key to optimizing the tool for your specific trading style.
🟣 General Settings
Cumulative Mode : This controls how the CVD is calculated.
You can choose between :
EMA : Exponential Moving Average smoothing.
Periodic : Sums the delta over a fixed period.
CVD Period : Defines the look-back period for CVD calculation. A longer period smooths the data, making it less sensitive to short-term fluctuations.
Ultra Data : This Boolean input aggregates volume across multiple exchanges for a more comprehensive view of market activity.
Market Ultra Data : Select between Forex, Crypto, and Stock to ensure the indicator pulls accurate volume data for your market.
🟣 Logical Settings
Moving Average CVD Period : Defines the period for the moving average of the CVD. A longer period smooths the trend, reducing noise.
Moving Average Volume Period : Sets the period for the moving average used to distinguish between high and low volume conditions.
Level Finder Bar Back : Determines how many bars to look back when identifying the highest or lowest price for trailing stop placement.
Levels update per candles : Sets how often (in bars) the trailing stop should be updated to remain in sync with market movements.
ATR On : Toggles the use of ATR to adjust the trailing stop based on volatility.
ATR Multiplie r: Defines how far the stop is placed from the price based on the ATR. A larger multiplier increases the stop distance, reducing the likelihood of getting stopped out during market fluctuations.
ATR Multiplier Adjusts the distance of the trailing stop based on the ATR. A higher multiplier places the stop further from the price, providing more breathing room in volatile markets.
🔵 Conclusion
The Trailing Stop Loss Smart indicator is a comprehensive tool for traders looking to manage risk while identifying market trends. By incorporating Cumulative Volume Delta (CVD) to detect buying and selling pressure, volume dynamics to gauge market activity, and ATR to adjust for volatility, this indicator ensures that stop-loss levels are both adaptive and protective.
Whether you’re trading in Forex, Crypto, or Stock markets, the Trailing Stop Loss Smart allows you to capitalize on trends while dynamically adjusting to changing market conditions. Its ability to distinguish between high-volume and low-volume periods ensures that you’re not stopped out prematurely during periods of consolidation or market hesitation.
By providing real-time visual feedback, dynamic adjustments, and trend identification, this indicator serves as a vital tool for traders aiming to maximize profits while minimizing risk. Its versatility and adaptability make it an essential part of any trader’s toolkit, helping you stay ahead in fast-moving markets while safeguarding your positions.
ORB Smart Candle finder [With Volume Candle] with EXTENDOpening Range Breakout (ORB) Smart Candle Finder Indicator - finds first smart candle of the day and make it a label to trade at its higher or lower levels. You can adjust the size of smart candle as well as the Volume levels to detect smart candle.
[blackcat] L3 Smart Money FlowCOMPREHENSIVE ANALYSIS OF THE L3 SMART MONEY FLOW INDICATOR
🌐 OVERVIEW:
The L3 Smart Money Flow indicator represents a sophisticated multi-dimensional analytics tool combining traditional momentum measurements with advanced institutional investor tracking capabilities. It's particularly effective at identifying large-scale capital movement dynamics that often precede significant price shifts.
Core Objectives:
• Detect subtle but meaningful price action anomalies indicating major player involvement
• Provide clear entry/exit markers based on multiple validated criteria
• Offer risk-managed positioning strategies suitable for various account sizes
• Maintain operational efficiency even during high volatility regimes
THEORETICAL BACKDROP AND METHODOLOGY
🎓 Conceptual Foundation Principles:
Utilizes Time-Varying Moving Averages (TVMA) responding adaptively to changing market states
Implements Extended Smoothing Algorithm (XSA) providing enhanced filtration characteristics
Employs asymmetric weight distribution favoring recent price observations over historical ones
→ Analyzes price-weighted closing prices incorporating volume influence indirectly
← Applies Asymmetric Local Maximum (ALMA) filters generating institution-specific trends
⟸ Combines multiple temporal perspectives producing robust directional assessments
✓ Calculates normalized momentum ratios comparing current state against extended range extremes
✗ Filters out insignificant fluctuations via double-stage verification process
⤾ Generates actionable alerts upon exceeding predefined significance boundaries
CONFIGURABLE PARAMETERS IN DEPTH
⚙️ Input Customization Options Detailed Explanation:
Temporal Resolution Control:
→ TVMA Length Setting:
Minimum value constraint ensuring mathematical validity
Higher numbers increase smoothing effect reducing reaction velocity
Lower intervals enhance responsiveness potentially increasing noise exposure
Validation Threshold Definition:
↓ Bull-Bear Boundary Level:
Establishes fundamental acceptance/rejection zones
Typically set near extreme values reflecting rare occurrence probability
Can be adjusted per instrument liquidity profiles if necessary
ADVANCED ALGORITHMIC PROCEDURES BREAKDOWN
💻 Internal Operation Architecture:
Base Calculations Infrastructure:
☑ Raw Data Preparation and Normalization
☐ High/Low/Closing Aggregation Processes
☒ Range Estimation Algorithms
Intermediate Transform Engine:
📈 Momentum Ratio Computation Workflow
↔ First Pass XSA Application Details
➖ Second Stage Refinement Mechanics
Final Output Synthesis Framework:
➢ Composite Reading Compilation Logic
➣ Validation Status Determination Process
➤ Alert Trigger Decision Making Structure
INTERACTIVE VISUAL INTERFACE COMPONENTS
🎨 User Experience Interface Elements:
🔵 Plotting Series Hierarchy:
→ Primary FundFlow Signal: White trace marking core oscillator progression
↑ Secondary Confirmation Overlay: Orange/Yellow highlighting validation status
🟥 Risk/Reward Boundaries: Aqua line delineating strategic areas requiring attention
🏷️ Interactive Marker System:
✔ "BUY": Green upward-pointing labels denoting confirmed long entries
❌ "SELL": Red downward-facing badges signaling short setups
PRACTICAL APPLICATION STRATEGY GUIDE
📋 Operational Deployment Instructions:
Strategic Planning Initiatives:
• Define precise profit targets considering realistic reward/risk scenarios
→ Set maximum acceptable loss thresholds protecting available resources adequately
↓ Develop contingency plans addressing unexpected adverse developments promptly
Live Trading Engagement Protocols:
→ Maintaining vigilant monitoring of label placement activities continuously
↓ Tracking order fill success rates across implemented grids regularly
↑ Evaluating system effectiveness compared alternative methodologies periodically
Performance Optimization Techniques:
✔ Implement incremental improvements iteratively throughout lifecycle
❌ Eliminate ineffective component variations systematically
⟹ Ensure proportional growth capability matching user needs appropriately
EFFICIENCY ENHANCEMENT APPROACHES
🚀 Ongoing Development Strategy:
Resource Management Focus Areas:
→ Minimizing redundant computation cycles through intelligent caching mechanisms
↓ Leveraging parallel processing capabilities where feasible efficiently
↑ Optimizing storage access patterns improving response times substantially
Scalability Consideration Factors:
✔ Adapting to varying account sizes/market capitalizations seamlessly
❌ Preventing bottlenecks limiting concurrent operation capacity
⟹ Ensuring balanced growth capability matching evolving requirements accurately
Maintenance Routine Establishment:
✓ Regular codebase updates incorporation keeping functionality current
↓ Periodic performance audits conducting verifying continued effectiveness
↑ Documentation refinement updating explaining any material modifications made
SYSTEMATIC RISK CONTROL MECHANISMS
🛡️ Comprehensive Protection Systems:
Position Sizing Governance:
∅ Never exceed predetermined exposure limitations strictly observed
± Scale entries proportionally according to available resources carefully
× Include slippage allowances within planning stages realistically
Emergency Response Procedures:
↩ Well-defined exit strategies including trailing stops activation logic
🌀 Contingency plan formulation covering worst-case scenario contingencies
⇄ Recovery procedure documentation outlining restoration steps methodically
TrendSync Pro (SMC)📊 TrendSync Pro (SMC) – Advanced Trend-Following Strategy with HTF Alignment
Created by Shubham Singh
🔍 Strategy Overview
TrendSync Pro (SMC) is a precision-based smart trend-following strategy inspired by Smart Money Concepts (SMC). It combines: Real-time pivot-based trendline detection
Higher Time Frame (HTF) filtering to align trades with dominant trend
Risk management via adjustable Stop Loss (SL) and Take Profit (TP)
Directional control — trade only bullish, bearish, or both setups
Realistic backtesting using commissions and slippage
Pre-optimized profiles for scalpers, intraday, swing, and long-term traders
🧠 How It Works:
🔧 Strategy Settings Image:
beeimg.com
The strategy dynamically identifies trend direction by using swing high/low pivots. When a new pivot forms: It draws a trendline from the last significant pivot
Detects whether the trend is up (based on pivot lows) or down (based on pivot highs)
Waits for price to break above/below the trendline
Confirms with HTF price direction (HTF close > previous HTF close = bullish)
Only then it triggers a long or short trade
It exits either at TP, SL, or a manual trendline break
🛠️ Adjustable Parameters:
Trend Period: Length for pivot detection (affects sensitivity of trendlines)
HTF Timeframe: Aligns lower timeframe entries with higher timeframe direction
SL% and TP%: Customize your risk-reward profile
Commission & Slippage: Make backtests more realistic
Trade Direction: Choose to trade: Long only, Short only, or Both
🎛️ Trade Direction Control:
In settings, you can choose: Bullish Only: Executes only long entries
Bearish Only: Executes only short entries
Both: Executes both long and short entries when conditions are met
This allows you to align trades with your own market bias or external analysis.
📈 Entry Logic: Long Entry:
• Price crosses above trendline
• HTF is bullish (HTF close > previous close)
• Latest pivot is a low (trend is considered up)
Short Entry:
• Price crosses below trendline
• HTF is bearish (HTF close < previous close)
• Latest pivot is a high (trend is considered down)
📉 Exit Logic: Hit Take Profit or Stop Loss
Manual trendline invalidation: If price crosses opposite of the trend direction
⏰ Best Timeframes & Recommended Settings:
Scalping (1m to 5m):
HTF = 15m | Trend Period = 7
SL = 0.5% | TP = 1% to 2%
Intraday (15m to 30m):
HTF = 1H | Trend Period = 10–14
SL = 0.75% | TP = 2% to 3%
6 Hour Trading (30m to 1H):
HTF = 4H | Trend Period = 20
SL = 1% | TP = 4% to 6%
Swing Trading (4H to 1D):
HTF = 1D | Trend Period = 35
SL = 2% | TP = 8% to 12%
Long-Term Investing (1D+):
HTF = 1W | Trend Period = 50
SL = 3% | TP = 15%+
Note: These are recommended base settings. Adjust based on volatility, asset class, or personal trading style.
📸 Testing Note:
beeimg.com
TradingView limits test length to 20k bars (~40 trades on smaller timeframes). To show long-term results: Test on higher timeframes (e.g., 1H, 4H, 1D)
Share images of backtest result in description
Host longer test result screenshots on Imgur or any public drive
📍 Asset Behavior Insight:
This strategy works on multiple assets, including BTC, ETH, etc.
Performance varies by trend strength:
Sometimes BTC performs better than ETH
Other times ETH gives better results
That’s normal as both assets follow different volatility and trend behavior
It’s a trend-following setup. Longer and clearer the trend → better the results.
✅ Best Practices: Avoid ranging markets
Use proper SL/TP for each timeframe
Use directional filter if you already have a directional bias
Always forward test before going live
⚠️ Trading Disclaimer:
This script is for educational and backtesting purposes only. Trading involves risk. Always use risk management and never invest more than you can afford to lose.
Tims Smart Money COT-IndexThe **Tims Smart Money COT Index** analyzes the positions of different groups of market participants from the COT report (Commercials, Large Specs, Small Specs). It calculates their net positions and scales them relative to extremes of the last 24 weeks. It indicates bullish and bearish zones to identify market sentiments.
- Commercials (Smart Money)**: Often act against the trend, bullish from 80+.
- Large Specs (Retail Money)**: Trend-following, bullish from 80+.
- Small Specs**: Mostly impulsive, bullish from 80+.
The indicator helps to identify turning points in the market based on the behavior of the players.
Relative volume zone + Smart Order Flow Dynamic S/ROverview:
The Relative Volume Zone + Smart Order Flow with Dynamic S/R indicator is designed to help traders identify key trading opportunities by combining multiple technical components. This script integrates relative volume analysis, order flow detection, VWAP, RSI filtering, and dynamic support and resistance levels to offer a comprehensive view of the market conditions. It is particularly effective on shorter timeframes (M5, M15), making it suitable for scalping and day trading strategies.
Key Components:
1. Relative Volume Zones:
• The script calculates the relative volume by comparing the current volume with the average volume over a defined lookback period (volLookback). When the relative volume exceeds a specified multiplier (volMultiplier), it indicates a high volume zone, signaling potential accumulation or distribution areas.
• Purpose: Identifies high-volume trading zones that may act as significant support or resistance, indicating possible entry or exit points.
2. Smart Order Flow Analysis:
• The indicator uses Volume Delta (the difference between buying and selling volume) and a Cumulative Delta to detect order imbalances in the market.
• Order Imbalance is identified using a moving average of the Volume Delta (orderImbalance), which helps highlight hidden buying or selling pressure.
• Purpose: Reveals market sentiment by showing whether buyers or sellers dominate the market, aiding in the identification of trend reversals or continuations.
3. VWAP (Volume Weighted Average Price):
• VWAP is calculated over a default daily length (vwapLength) to show the average price a security has traded at throughout the day, based on both volume and price.
• Purpose: Provides insight into the fair value of the asset, indicating whether the market is in an accumulation or distribution phase.
4. RSI (Relative Strength Index) Filter:
• RSI is used to filter buy and sell signals, preventing trades in overbought or oversold conditions. It is calculated using a specified period (rsiPeriod).
• Purpose: Reduces false signals and improves trade accuracy by only allowing trades when RSI conditions align with volume and order flow signals.
5. Dynamic Support and Resistance Levels:
• The script dynamically plots support and resistance levels based on recent swing highs and lows (swingLookback).
• Purpose: Identifies potential reversal zones where price action may change direction, allowing for more precise entry and exit points.
How It Works:
• Buy Signal:
A buy signal is generated when:
• The price enters a high-volume zone.
• The price crosses above a 5-period moving average.
• The cumulative delta shows more buying pressure (cumulativeDelta > SMA of cumulativeDelta).
• The RSI is below 70 (not in overbought conditions).
• Sell Signal:
A sell signal is generated when:
• The price enters a high-volume zone.
• The price crosses below a 5-period moving average.
• The cumulative delta shows more selling pressure (cumulativeDelta < SMA of cumulativeDelta).
• The RSI is above 30 (not in oversold conditions).
• Dynamic Support and Resistance Lines:
Drawn based on recent swing highs and lows, these lines provide context for potential price reversals or breakouts.
• VWAP and Order Imbalance Lines:
Plotted to show the average traded price and highlight order flow shifts, helping to validate buy/sell signals.
How to Use:
1. Apply the Indicator:
Add the script to your chart and adjust the settings to match your trading style and preferred timeframe (optimized for M5/M15).
2. Interpret the Signals:
Use the buy and sell signals in conjunction with dynamic support/resistance, VWAP, and order imbalance lines to identify high-probability trade setups.
3. Monitor Alerts:
Set alerts for significant order flow events to receive notifications when there is a positive or negative order imbalance, indicating potential market shifts.
What Makes It Unique:
This script is unique because it combines multiple market analysis tools — relative volume zones, smart order flow, VWAP, RSI filtering, and dynamic support/resistance — to provide a well-rounded, multi-dimensional view of the market. This integration allows traders to make more informed decisions by validating signals across various indicators, enhancing overall trading accuracy and effectiveness.
Price Legs: Average Heights; 'Smart ATR'Price Legs: Average Heights; 'Smart ATR'. Consol Range Gauge
~~ Indicator to show small and large price legs (based on short and long input pivot lengths), and calculating the average heights of these price legs; counting legs from user-input start time ~~
//Premise: Wanted to use this as something like a 'Smart ATR': where the average/typical range of a distinct & dynamic price leg could be calculated based on a user-input time interval (as opposed to standard ATR, which is simply the average range over a consistent repeating period, with no regard to market structure). My instinct is that this would be most useful for consolidated periods & range trading: giving the trader an idea of what the typical size of a price leg might be in the current market state (hence in the title, Consol Range gauge)
//Features & User inputs:
-Start time: confirm input when loading indicator by clicking on the chart. Then drag the vertical line to change start time easily.
-Large Legs (toggle on/off) and user-input pivot lookback/lookforward length (larger => larger legs)
-Small Legs (toggle on/off) and user-input pivot lookback/lookforward length (smaller => smaller legs)
-Display Stats table: toggle on/off: simple view- shows the averages of large (up & down), small (up & down), and combined (for each).
-Extended stats table: toggle on/off option to show the averages of the last 3 legs of each category (up/down/large/small/combined)
-Toggle on/off Time & Price chart text labels of price legs (time in mins/hours/days; price in $ or pips; auto assigned based on asset)
-Table position: user choice.
//Notes & tips:
-Using custom start time along with replay mode, you can select any arbitrary chunk of price for the purpose of backtesting.
-Play around with the pivot lookback lengths to find price legs most suitable to the current market regime (consolidating/trending; high volatility/ low volatility)
-Single bar price legs will never be counted: they must be at least 2 bars from H>>L or L>>H.
//Credits: Thanks to @crypto_juju for the idea of applying statistics to this simple price leg indicator.
Simple View: showing only the full averages (counting from Start time):
View showing ONLY the large legs, with Time & Price labels toggled ON:
MJ Important Candlestick Patterns + Smart TrendThis script detects 6 important candlestick patterns defined by the author and puts chart labels on your chart for your attention. It also includes a smart trend checking algorithm to detect trends.
The six candlestick patterns covered are:
Bullish Engulfing
Bearish Engulfing
Piercing Line
Dark Cloud Cover
Bullish Harami
Bearish Harami
*** Smart feature of this indicator is that it can detect uptrends or downtrends before alerting you regarding the bullish or bearish reversal candlestick pattern. This is achieved by comparing the typical price (high+low+close divided by 3) of today's candle versus three days ago.
BTC Smart Buy/Sell//@version=5
indicator("BTC Smart Buy/Sell", overlay=true)
// === INPUTS ===
rsiPeriod = input.int(14, "RSI Period")
macdFast = input.int(12, "MACD Fast")
macdSlow = input.int(26, "MACD Slow")
macdSignal = input.int(9, "MACD Signal")
atrPeriod = input.int(10, "ATR Period")
atrMultiplier = input.float(3.0, "Supertrend Multiplier")
volMultiplier = input.float(1.5, "Volume Spike Multiplier")
// === CALCULATIONS ===
rsi = ta.rsi(close, rsiPeriod)
= ta.macd(close, macdFast, macdSlow, macdSignal)
macdCrossUp = ta.crossover(macdLine, signalLine)
macdCrossDown = ta.crossunder(macdLine, signalLine)
// Supertrend
= ta.supertrend(atrMultiplier, atrPeriod)
// Volume spike
avgVol = ta.sma(volume, 20)
volSpike = volume > avgVol * volMultiplier
volDrop = volume < avgVol * 0.7
// === CONDITIONS ===
buyCond = (rsi < 30 ? 1 : 0) + (macdCrossUp ? 1 : 0) + (supertrendDir == 1 ? 1 : 0) + (volSpike ? 1 : 0)
sellCond = (rsi > 70 ? 1 : 0) + (macdCrossDown ? 1 : 0) + (supertrendDir == -1 ? 1 : 0) + (volDrop ? 1 : 0)
buySignal = buyCond >= 3
sellSignal = sellCond >= 3
// === PLOT ===
plotshape(buySignal, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.labelup, text="BUY")
plotshape(sellSignal, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.labeldown, text="SELL")
FVG Candle HighlighterThis indicator highlights only the true Fair Value Gap (FVG) creator candle — the middle candle in a 3-bar FVG formation — with zero clutter.
🔹 Bullish FVG: Candle is colored if price gaps above the high two bars back
🔹 Bearish FVG: Candle is colored if price gaps below the low two bars back
✨ No boxes. No zones. Just pure, visual price-action accuracy.
🔧 Powered by Pine Script v6
🧠 Based on institutional-style FVG logic
🎯 Ideal for Smart Money / ICT / Order Block strategies
IU Smart Flow SystemDESCRIPTION
The IU Smart Flow System is a powerful and dynamic order flow-based strategy designed to capture high-probability trades by analyzing bullish and bearish imbalances, trend direction, and RSI strength. It identifies trading opportunities by aligning order flow conditions with the prevailing trend and momentum, making it suitable for trend-following and momentum-based trading.
This system utilizes a unique combination of:
- Order flow score to gauge market imbalance
- Trend filter using SMA and ATR to confirm market direction
- RSI to ensure entry only during strong momentum
USER INPUTS:
- Imbalance Length: Defines the lookback period for calculating bullish and bearish imbalances. (Default: 10)
- Trend Length: Determines the length of the SMA to evaluate the trend direction. (Default: 50)
- RSI Length: Specifies the RSI period to assess momentum strength. (Default: 14)
LONG CONDITIONS:
Long entries are triggered when:
- Order flow score is positive, indicating bullish imbalance
- Price is above the bullish trend level (SMA + ATR), confirming an uptrend
- RSI is above 50, indicating bullish momentum
- No active short position is currently open
SHORT CONDITIONS:
Short entries are triggered when:
- Order flow score is negative, indicating bearish imbalance
- Price is below the bearish trend level (SMA - ATR), confirming a downtrend
- RSI is below 50, indicating bearish momentum
- No active long position is currently open
WHY IT IS UNIQUE:
- Imbalance-Based Approach: Unlike traditional strategies that rely solely on price action, this system evaluates bullish and bearish imbalances to anticipate order flow direction.
- Adaptive Trend Filter: The combination of SMA and ATR dynamically adjusts to market volatility, providing a reliable trend confirmation mechanism.
- Momentum Validation with RSI: Ensures that entries are taken only in the direction of strong momentum, reducing false signals.
HOW USERS CAN BENEFIT FROM IT:
- Enhanced Trade Accuracy: Aligning order flow, trend, and momentum reduces false signals and improves trade success rates.
- Versatile Application: Suitable for various markets and timeframes, making it adaptable to different trading styles.
- Clear Trade Signals: Provides clear entry labels and alerts, ensuring traders never miss a potential opportunity.
- Visual Clarity: The filled region between bullish and bearish trends highlights trend direction, enhancing decision-making.
Introducing the "Smart Money Trap" (SMT) IndicatorThe "Smart Money Trap" (SMT) indicator is a powerful tool designed for simultaneous analysis of multiple currency pairs and their correlations. This indicator allows you to effortlessly visualize divergences and correlations between various currency pairs on a single chart, enhancing your ability to perform in-depth technical analysis.
Key Features:
Multi-Currency Comparison:
The SMT indicator enables you to view the following currency pairs simultaneously:
EUR/USD (Euro to US Dollar)
GBP/USD (British Pound to US Dollar)
USD/JPY (US Dollar to Japanese Yen)
DXY (US Dollar Index)
Correlation and Divergence Analysis:
By overlaying these currency pairs, the SMT indicator helps you identify correlations and divergences between them, which can signal potential trading opportunities.
Customizable Timeframes:
The indicator automatically adjusts to the current chart’s timeframe, ensuring that your analysis is always in sync with the selected period.
Enhanced Decision-Making:
With the ability to visualize multiple currency pairs and their relationships, you can make more informed trading decisions and better understand market dynamics.
The SMT indicator is a valuable tool for traders looking to track and analyze currency pair interactions and identify trading signals based on their correlations and divergences.
DB Support Resistance Levels + Smart Higher Highs and Lower LowsDB Support Resistance Levels + Smart Higher Highs and Lower Lows
The indicator plots historic lines for high, low and close prices shown in settings as "base levels". Users can control the lookback period that is plotted along with an optional multiplier. Traders will notice that the price bounces off these historic base levels. The base levels are shown as light gray by default (customizable in the settings). Users may choose to display base levels by a combination of historic high, low and close values.
On top of the historic base levels, the indicator display higher high and lower low levels from the current bar high/low. Higher highs are shown by default in pink and lower lows by default in yellow. The user can adjust the lookback period for displaying higher highs and the optional multiplier. Only historic values higher than the current bar high are displayed filtering out (by highlighting) the remaining levels for the current bar. Users may choose to use a combination of historic open, low and close values for displaying higher highs. The user can adjust the lookback period for displaying lower lows and the optional multiplier. Only historic values lower than the current bar low are displayed filtering out (by highlighting) the remaining levels for the current bar. Users may choose to use a combination of historic open, low and close values for displaying lower low.
The indicator includes two optional filters for filtering out higher highs and lower lows to focus (highlight) the most relevant levels. The filters include KC and a simple price multiplier filter. The latter is enabled by default and recommended.
The indicator aims to provide two things; first a simple plot of historic base levels and second as the price moves to highlight the most relevant levels for the current price action. While the indicator works on all timeframes, it was tested with the weekly. Please keep in mind adjusting the timeframe may require the lookback settings to be adjusted to ensure the bars are within range.
How should I use this indicator?
Traders may use this indicator to gain a visual reference of support and resistance levels from higher periods of time with the most likely levels highlighted in pink and yellow. Replaying the indicator gives a visual show of levels in action and just how very often price action bounces from these highlighted levels.
Additional Notes
This indicator does increase the max total lines allowed which may impact performance depending on device specs. No alerts or signals for now. Perhaps coming soon...
LNL Smart TICKLNL Smart TICK
This study is mostly beneficial for intraday traders. It is basically a user-friendly "colorful" representation of the $TICK chart with highlighted $TICK extremes. This indicator also includes: a simple trend gauge that can visualize the bias for the day, cumulative tick cloud which is showing the cumulative strength of either longs & shorts on the day.
$TICK Trend Gauge
Although it is just a exponential moving average. This average (default set on 20) works quite well as an overall gauge for the day. Whenever the gauge is green (above zero), any negative $TICK values below -500 can offer great pullback opportunities. Same applies for the red gauge. 20 EMA is below zero ? Great time to fade any +500 or +1000 tick readings. Obviously the gauge can be ajdusted to any number based on personal style.
$TICK Extremes (little triangles)
These little triangles are triggered anytime $TICK jumps above or below the pre-set values of +1000 or -1000. By just simply observing the $TICK triangles during the day can tell you how much volaility or pressure there is. Sometimes there will be 20 green triangles and only 2 red ones. That obviously mean there is a strong bearish pressure. But there will be days when you are not going to see any triangles at all which can mean there is either a low volatility or the price is stuck in the indecisive market.
Cumulative $TICK Cloud
Cumulative $TICK by itself is a great study for day traders. It is basically running "counting" $TICK that is adding the previous $TICK values from previous bars. Cumulative $TICK can create a direct picture of the current market sentiment. It is not just a simple green / red line but a cloud that can really show you the depth on the $TICK. Some days, the cloud will be quite wide which is a good sign for the strength to one side, but sometimes the cloud will be so narrow it will practically disappear. This would be telling you the exact opposite - not much conviction to any side. Of course the depth as well as the color of the cloud can change during the day.
$TICK & Cumulative $TICK Tables
By just looking at these tables. You can immidiately tell the state of the current $TICK. They both can be red or green. It all depends whether the values are positive or negative. The tables are just a little visual addition to the whole $TICK study.
Hope it helps.
Price Swing Detection - Smart Money ConceptSince my own style is Smart Money Concept and these days I have seen a lot of my friends who are having trouble identifying structures for their indicators and strategies. I wrote this code so they could use it in their strategy . In fact, this type of structure, as one of the strongest technical structures, can increase the success of your strategy according to your personalization.
The script detects swings (i.e. significant highs and lows) in a financial instrument's price action over a specified period. The user can set the lookback period (number of candles to consider) and the colors of the lines representing bullish and bearish trends.
The script has two functions: detectSwing and pivot high. The detectSwing function calculates the swing highs and lows for the specified number of candles. The function uses the ta.highest and ta.lowest functions to find the highest and lowest prices, respectively, over the lookback period. The function also determines the swing state (high or low) of the current candle and returns the calculated swing values.
The pivot high function calculates the pivot high, which is an important step in detecting bullish structures in the market. If a new top (i.e. swing high) is found, the script updates the pivot high values and creates a line from the recent top to the last bar. The script also updates the trailing maximum values, which are used to extend the top extension line.
For Strategy :
The variable "trendDirection" in the code is used to keep track of the trend state, either bullish (up trend) or bearish (down trend), in the market. The variable is initialized to 0 which represents a downtrend. The value of this variable is updated later in the code based on the calculations of swing highs and lows, pivot crosses, and the trailing maximum. If a bullish structure is detected, the value of "trendDirection" is set to 1, indicating an uptrend.
MACD Alert [All MA in one] [Smart Crypto Trade (SCT)]This code is a gift from "Smart Crypto Trade (SCT)" group
MACD indicator contains 3 EMA, I think one of the best usage of MACD is trend detection and divergences.
In our indicator, you can select the type of Moving averages that used in macd.
You can using "MACD" based on several types of moving averages including:
Exponential Moving Average ( EMA )
Volume-Weighted Moving Average ( VWMA )
Simple Moving Average ( SMA )
Weighted Moving Average ( WMA )
Exponentially Weighted Moving Average (RMA) that used in RSI
Smoothed Moving Average ( SMMA )
Arnaud Legoux Moving Average ( ALMA )
Double EMA ( DEMA )
Double SMA (DSMA)
Double WMA (DWMA)
Double RMA (DRMA)
Triple EMA ( TEMA )
Triple SMA (TSMA)
Triple WMA (TWMA)
Triple RMA (TRMA)
Linear regression curve Moving Average ( LSMA )
Variable Index Dynamic Average ( VIDYA )
Fractal Adaptive Moving Average ( FRAMA )
In other words we tried to collect all the most popular MAs in our MACD indicator.
In addition, you can use four types of alert or alarm conditions for detection LONG or SHORT positions and trends. For this, you must set an alert in alert tab and set the condition based on four defaults conditions.
Enjoy
[LunaOwl] 智慧型RSI (Smart RSI - a handy tool with less noise)Relative Strength Index is a common technical analysis tool, it is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements. it is most typically used on a 14-period timeframe, measured on a scale from 0 to 100, with high and low levels marked at 70 and 30.
相對強弱指標是常見的技術分析工具，它被歸類為動量振盪器，用於測量定向價格運動的速度和幅度，通常會使用14期數，擺盪範圍在0到100間，超買超賣分別標記成70、30。
after simple improvement and addition of logical judgment, it becomes a passive judge from subjective judgments, avoid the shortcomings of peoples in watching passivation, and the trade can be more consistent.
經過簡單的改良與添加邏輯判斷，能夠使RSI指標的使用，從主觀的判斷成為被動的確認指標，有效避免人們判斷指標鈍化的主觀缺失，並能夠使得交易更加一致。
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1) parameter
RSI period 1 - default is 14, same as general RSI.
RSI period 2 - default is 5, due to its own formula, the amplitude of the oscillator will become larger and more agile or fast. When the parameter is small.
exponential moving avg of RSI - using the result of RSI period 1 as the source of Ema's formula, the default length is 14, which can filter the excessive agility of RSI period 2 to reduce noise, and compared to using the baseline as the criterion for long and short judgments, The characteristics of exponential moving avg are more suitable to become flexible filtering standards.
Overbought - default is 70, you can set your overbought level.
Oversold - same as above, the default is 30.
2) Options
Open Candle color(開啟蠟燭線趨勢) - choose whether to start the color of the candle.
Open background color(開啟指標背景色) - the default is false, you can turn on.
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1. 設置參數
RSI期數1：預設值是14，是普通的RSI指標。
RSI期數2：預設值是5，由於RSI公式的算法，造成參數愈小擺盪幅度就會變大，反應比較快。
指數平均化的RSI期數1：將RSI期數1的結果帶入指數移動平均公式，預設值14，它能過濾RSI期數2過度敏捷的缺點，減少雜訊，相較於單純使用基準線作為多空判斷標準，用EMA的判斷標準更加因時制宜。
超買線：預設值是70，可以隨意調。
超賣線：預設值是30，一樣的。
2. 設定選項
開啟蠟燭線趨勢：顧名思義。已經幫您開好了。
開啟指標背景色：顏色太淺的話可以調深一點。
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ver.2- adjust new style design and create two options.
修改2: 調整新的樣式設計與建立兩個選項。
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ver.3- Create alert condition. maybe I should refer to the Alert Creation Framework,
there is also room for improvement.
修改3: 建立快訊選項。我應該參考警報創建框架，還有進步空間。
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Indicator Style - 指標樣式
The design uses casual light color style, light gray between overbought and oversold.
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Market Example - 市場範例
1. Bitcoin/Tether, Binance, 1 day
2. Bitcoin/USD, Coinbase, 4 hour
3. EUR/USD, Forex Market, 4 hour
4. GBP/USD, Forex Market, 30 min
5. TAIEX, Taiwan SE Weighted Index, 1 week
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postscript - 後記感想
The purpose of publishing Chinese Scripts is to make Pine close to more Chinese user.
I hope English skills enhancement...staggered writing makes me feel hard.
發布中文腳本的目的，是希望可以讓 Pine 親近更多中文圈的使用者。希望我的英語進步，中英文交錯撰寫有一些困難。
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If you find my works useful, you can give me encouragement. I can buy more books to sophisticated themselves.
如果您發現我的作品有用，可以給我鼓勵。讓我可以買更多書籍來精進自己。
Financial Conditions Composite Z-Score1. Inputs and Data Sources
The script pulls data for the following financial metrics using TradingView's request.security function:
CBOE:VIX (Volatility Index): A measure of market volatility.
MOVE Index: A measure of bond market volatility (or Treasury volatility).
BAMLH0A0HYM2 (High-Yield Spread): The spread between high-yield corporate bonds and Treasury yields.
BAMLC0A0CM (Credit Spread): The spread for investment-grade corporate bonds.
Each of these metrics represents a key aspect of financial conditions:
VIX: Equity market risk.
MOVE: Bond market risk.
High-Yield Spread and Credit Spread: Perception of risk in corporate debt.
2. Z-Score Calculation
A z-score standardizes each metric to show how far it deviates from its average over a specified period (lookback = 160, or 160 days):
Positive z-scores indicate the metric is higher than average.
Negative z-scores indicate the metric is lower than average.
The formula for the z-score:
Z-Score = Metric − Mean
Standard Deviation Z-Score = Standard Deviation Metric−Mean
3. Combined Z-Score
The script combines the four individual z-scores into a single Composite Z-Score, equally weighted across the metrics:
Combined Z-Score = (Z VIX + Z MOVE + Z High-Yield Spread + Z Credit Spread) / 4
This Combined Z-Score provides an overall measure of financial conditions:
Positive combined z-scores indicate tighter or riskier financial conditions.
Negative combined z-scores indicate looser or less risky financial conditions.
4. Visual Elements on the Chart
A. Colorful Lines: Individual Z-Scores
Each of the four metrics is plotted as a separate line:
Red: Z-score of the VIX.
Green: Z-score of the MOVE index.
Orange: Z-score of the high-yield spread.
Purple: Z-score of the credit spread.
These lines show how each metric contributes to the overall financial conditions. For example:
A rising red line means increasing equity market volatility (risk).
A rising green line means increasing bond market volatility (risk).
B. Blue Line: Combined Z-Score
The blue line represents the Combined Z-Score. It aggregates the individual z-scores into a single measure:
A rising blue line suggests financial conditions are tightening (greater risk across markets).
A falling blue line suggests financial conditions are loosening (lower risk across markets).
C. Red and Green Background: Z-Score Regions
Red Background: When the Combined Z-Score is positive (>0), it indicates riskier or tighter financial conditions.
Green Background: When the Combined Z-Score is negative (<0), it indicates less risky or looser financial conditions.
This background coloring helps visually distinguish periods of riskier financial conditions from less risky ones.
5. Purpose of the Visualization
This indicator provides a comprehensive view of financial conditions across multiple asset classes:
Traders can use it to gauge the level of systemic market stress.
Investors can use it to assess when risk is elevated (positive z-scores) or subdued (negative z-scores).
It helps in decision-making for strategies that depend on market volatility or risk appetite.
Summary of What You See:
Colorful Lines (Red, Green, Orange, Purple): Individual z-scores for each metric (VIX, MOVE, high-yield spread, credit spread).
Blue Line: The aggregated Combined Z-Score that summarizes financial conditions.
Red and Green Background:
Red: Tight or risky financial conditions (Combined Z-Score > 0).
Green: Loose or low-risk financial conditions (Combined Z-Score < 0).
This visualization provides a multi-dimensional view of financial conditions at a glance, helping to identify periods of high or low risk in the markets.
