Auto TrendLines [TradingFinder] Support Resistance Signal Alerts🔵 Introduction
The trendline is one of the most essential tools in technical analysis, widely used in financial markets such as Forex, cryptocurrency, and stocks. A trendline is a straight line that connects swing highs or swing lows and visually indicates the market’s trend direction.
Traders use trendlines to identify price structure, the strength of buyers and sellers, dynamic support and resistance zones, and optimal entry and exit points.
In technical analysis, trendlines are typically classified into three categories: uptrend lines (drawn by connecting higher lows), downtrend lines (formed by connecting lower highs), and sideways trends (moving horizontally). A valid trendline usually requires at least three confirmed touchpoints to be considered reliable for trading decisions.
Trendlines can serve as the foundation for a variety of trading strategies, such as the trendline bounce strategy, valid breakout setups, and confluence-based analysis with other tools like candlestick patterns, divergences, moving averages, and Fibonacci levels.
Additionally, trendlines are categorized into internal and external, and further into major and minor levels, each serving unique roles in market structure analysis.
🔵 How to Use
Trendlines are a key component in technical analysis, used to identify market direction, define dynamic support and resistance zones, highlight strategic entry and exit points, and manage risk. For a trendline to be reliable, it must be drawn based on structural principles—not by simply connecting two arbitrary points.
🟣 Selecting Pivot Types Based on Trend Direction
The first step is to determine the market trend: uptrend, downtrend, or sideways.
Then, choose pivot points that match the trend type :
In an uptrend, trendlines are drawn by connecting low pivots, especially higher lows.
In a downtrend, trendlines are formed by connecting high pivots, specifically lower highs.
It is crucial to connect pivots of the same type and structure to ensure the trendline is valid and analytically sound.
🟣 Pivot Classification
This indicator automatically classifies pivot points into two categories :
Major Pivots :
MLL : Major Lower Low
MHL : Major Higher Low
MHH : Major Higher High
MLH : Major Lower High
These define the primary structure of the market and are typically used in broader structural analysis.
Minor Pivots :
mLL: minor Lower Low
mHL: minor Higher Low
mHH: minor Higher High
mLH: minor Lower High
These are used for drawing more precise trendlines within corrective waves or internal price movements.
Example : In a downtrend, drawing a trendline from an MHH to an mHH creates structural inconsistency and introduces noise. Instead, connect points like MHL to MHL or mLH to mLH for a valid trendline.
🟣 Drawing High-Precision Trendlines
To ensure a reliable trendline :
Use pivots of the same classification (Major with Major or Minor with Minor).
Ensure at least three valid contact points (three touches = structural confirmation).
Draw through candles with the least deviation (choose wicks or bodies based on confluence).
Preferably draw from right to left for better alignment with current market behavior.
Use parallel lines to turn a single trendline into a trendline zone, if needed.
🟣 Using Trendlines for Trade Entries
Bounce Entry: When price approaches the trendline and shows signs of reversal (e.g., a reversal candle, divergence, or support/resistance), enter in the direction of the trend with a logical stop-loss.
Breakout Entry: When price breaks through the trendline with strong momentum and a confirmation (such as a retest or break of structure), consider trading in the direction of the breakout.
🟣 Trendline-Based Risk Management
For bounce entries, the stop-loss is placed below the trendline or the last pivot low (in an uptrend).
For breakout entries, the stop-loss is set behind the breakout candle or the last structural level.
A broken trendline can also act as an exit signal from a trade.
🟣 Combining Trendlines with Other Tools (Confluence)
Trendlines gain much more strength when used alongside other analytical tools :
Horizontal support and resistance levels
Moving averages (such as EMA 50 or EMA 200)
Fibonacci retracement zones
Candlestick patterns (e.g., Engulfing, Pin Bar)
RSI or MACD divergences
Market structure breaks (BoS / ChoCH)
🔵 Settings
Pivot Period : This defines how sensitive the pivot detection is. A higher number means the algorithm will identify more significant pivot points, resulting in longer-term trendlines.
Alerts
Alert :
Enable or disable the entire alert system
Set a custom alert name
Choose how often alerts trigger (every time, once per bar, or on bar close)
Select the time zone for alert timestamps (e.g., UTC)
Each trendline type supports two alert types :
Break Alert : Triggered when price breaks the trendline
React Alert : Triggered when price reacts or bounces off the trendline
These alerts can be independently enabled or disabled for all trendline categories (Major/Minor, Internal/External, Up/Down).
Display :
For each of the eight trendline types, you can control :
Whether to show or hide the line
Whether to delete the previous line when a new one is drawn
Color, line style (solid, dashed, dotted), extension direction (e.g., right only), and width
Major lines are typically thicker and more opaque, while minor lines appear thinner and more transparent.
All settings are designed to give the user full control over the appearance, behavior, and alert system of the indicator, without requiring manual drawing or adjustments.
🔵 Conclusion
A trendline is more than just a line on the chart—it is a structural, strategic, and flexible tool in technical analysis that can serve as the foundation for understanding price behavior and making trading decisions. Whether in trending markets or during corrections, trendlines help traders identify market direction, key zones, and high-potential entry and exit points with precision.
The accuracy and effectiveness of a trendline depend on using structurally valid pivot points and adhering to proper market logic, rather than relying on guesswork or personal bias.
This indicator is built to solve that exact problem. It automatically detects and draws multiple types of trendlines based on actual price structure, separating them into Major/Minor and Internal/External categories, and respecting professional analytical principles such as pivot type, trend direction, and structural location.
Cerca negli script per "stop loss"
StatPivot- Dynamic Range Analyzer - indicator [PresentTrading]Hello everyone! In the following few open scripts, I would like to share various statistical tools that benefit trading. For this time, it is a powerful indicator called StatPivot- Dynamic Range Analyzer that brings a whole new dimension to your technical analysis toolkit.
This tool goes beyond traditional pivot point analysis by providing comprehensive statistical insights about price movements, helping you identify high-probability trading opportunities based on historical data patterns rather than subjective interpretations. Whether you're a day trader, swing trader, or position trader, StatPivot's real-time percentile rankings give you a statistical edge in understanding exactly where current price action stands within historical contexts.
Welcome to share your opinions! Looking forward to sharing the next tool soon!
█ Introduction and How it is Different
StatPivot is an advanced technical analysis tool that revolutionizes retracement analysis. Unlike traditional pivot indicators that only show static support/resistance levels, StatPivot delivers dynamic statistical insights based on historical pivot patterns.
Its key innovation is real-time percentile calculation - while conventional tools require new pivot formations before updating (often too late for trading decisions), StatPivot continuously analyzes where current price stands within historical retracement distributions.
Furthermore, StatPivot provides comprehensive statistical metrics including mean, median, standard deviation, and percentile distributions of price movements, giving traders a probabilistic edge by revealing which price levels represent statistically significant zones for potential reversals or continuations. By transforming raw price data into statistical insights, StatPivot helps traders move beyond subjective price analysis to evidence-based decision making.
█ Strategy, How it Works: Detailed Explanation
🔶 Pivot Point Detection and Analysis
The core of StatPivot's functionality begins with identifying significant pivot points in the price structure. Using the parameters left and right, the indicator locates pivot highs and lows by examining a specified number of bars to the left and right of each potential pivot point:
Copyp_low = ta.pivotlow(low, left, right)
p_high = ta.pivothigh(high, left, right)
For a point to qualify as a pivot low, it must have left higher lows to its left and right higher lows to its right. Similarly, a pivot high must have left lower highs to its left and right lower highs to its right. This approach ensures that only significant turning points are recognized.
🔶 Percentage Change Calculation
Once pivot points are identified, StatPivot calculates the percentage changes between consecutive pivot points:
For drops (when a pivot low is lower than the previous pivot low):
CopydropPercent = (previous_pivot_low - current_pivot_low) / previous_pivot_low * 100
For rises (when a pivot high is higher than the previous pivot high):
CopyrisePercent = (current_pivot_high - previous_pivot_high) / previous_pivot_high * 100
These calculations quantify the magnitude of each market swing, allowing for statistical analysis of historical price movements.
🔶 Statistical Distribution Analysis
StatPivot computes comprehensive statistics on the historical distribution of drops and rises:
Average (Mean): The arithmetic mean of all recorded percentage changes
CopyavgDrop = array.avg(dropValues)
Median: The middle value when all percentage changes are arranged in order
CopymedianDrop = array.median(dropValues)
Standard Deviation: Measures the dispersion of percentage changes from the average
CopystdDevDrop = array.stdev(dropValues)
Percentiles (25th, 75th): Values below which 25% and 75% of observations fall
Copyq1 = array.get(sorted, math.floor(cnt * 0.25))
q3 = array.get(sorted, math.floor(cnt * 0.75))
VaR95: The maximum expected percentage drop with 95% confidence
Copyvar95D = array.get(sortedD, math.floor(nD * 0.95))
Coefficient of Variation (CV): Measures relative variability
CopycvD = stdDevDrop / avgDrop
These statistics provide a comprehensive view of market behavior, enabling traders to understand the typical ranges and extreme moves.
🔶 Real-time Percentile Ranking
StatPivot's most innovative feature is its real-time percentile calculation. For each current price, it calculates:
The percentage drop from the latest pivot high:
CopycurrentDropPct = (latestPivotHigh - close) / latestPivotHigh * 100
The percentage rise from the latest pivot low:
CopycurrentRisePct = (close - latestPivotLow) / latestPivotLow * 100
The percentile ranks of these values within the historical distribution:
CopyrealtimeDropRank = (count of historical drops <= currentDropPct) / total drops * 100
This calculation reveals exactly where the current price movement stands in relation to all historical movements, providing crucial context for decision-making.
🔶 Cluster Analysis
To identify the most common retracement zones, StatPivot performs a cluster analysis by dividing the range of historical drops into five equal intervals:
CopyrangeSize = maxVal - minVal
For each interval boundary:
Copyboundaries = minVal + rangeSize * i / 5
By counting the number of observations in each interval, the indicator identifies the most frequently occurring retracement zones, which often serve as significant support or resistance areas.
🔶 Expected Price Targets
Using the statistical data, StatPivot calculates expected price targets:
CopytargetBuyPrice = close * (1 - avgDrop / 100)
targetSellPrice = close * (1 + avgRise / 100)
These targets represent statistically probable price levels for potential entries and exits based on the average historical behavior of the market.
█ Trade Direction
StatPivot functions as an analytical tool rather than a direct trading signal generator, providing statistical insights that can be applied to various trading strategies. However, the data it generates can be interpreted for different trade directions:
For Long Trades:
Entry considerations: Look for price drops that reach the 70-80th percentile range in the historical distribution, suggesting a statistically significant retracement
Target setting: Use the Expected Sell price or consider the average rise percentage as a reasonable target
Risk management: Set stop losses below recent pivot lows or at a distance related to the statistical volatility (standard deviation)
For Short Trades:
Entry considerations: Look for price rises that reach the 70-80th percentile range, indicating an unusual extension
Target setting: Use the Expected Buy price or average drop percentage as a target
Risk management: Set stop losses above recent pivot highs or based on statistical measures of volatility
For Range Trading:
Use the most common drop and rise clusters to identify probable reversal zones
Trade bounces between these statistically significant levels
For Trend Following:
Confirm trend strength by analyzing consecutive higher pivot lows (uptrend) or lower pivot highs (downtrend)
Use lower percentile retracements (20-30th percentile) as entry opportunities in established trends
█ Usage
StatPivot offers multiple ways to integrate its statistical insights into your trading workflow:
Statistical Table Analysis: Review the comprehensive statistics displayed in the data table to understand the market's behavior. Pay particular attention to:
Average drop and rise percentages to set reasonable expectations
Standard deviation to gauge volatility
VaR95 for risk assessment
Real-time Percentile Monitoring: Watch the real-time percentile display to see where the current price movement stands within the historical distribution. This can help identify:
Extreme movements (90th+ percentile) that might indicate reversal opportunities
Typical retracements (40-60th percentile) that might continue further
Shallow pullbacks (10-30th percentile) that might represent continuation opportunities in trends
Support and Resistance Identification: Utilize the plotted pivot points as key support and resistance levels, especially when they align with statistically significant percentile ranges.
Target Price Setting: Use the expected buy and sell prices calculated from historical averages as initial targets for your trades.
Risk Management: Apply the statistical measurements like standard deviation and VaR95 to set appropriate stop loss levels that account for the market's historical volatility.
Pattern Recognition: Over time, learn to recognize when certain percentile levels consistently lead to reversals or continuations in your specific market, and develop personalized strategies based on these observations.
█ Default Settings
The default settings of StatPivot have been carefully calibrated to provide reliable statistical analysis across a variety of markets and timeframes, but understanding their effects allows for optimal customization:
Left Bars (30) and Right Bars (30): These parameters determine how pivot points are identified. With both set to 30 by default:
A pivot low must be the lowest point among 30 bars to its left and 30 bars to its right
A pivot high must be the highest point among 30 bars to its left and 30 bars to its right
Effect on performance: Larger values create fewer but more significant pivot points, reducing noise but potentially missing important market structures. Smaller values generate more pivot points, capturing more nuanced movements but potentially including noise.
Table Position (Top Right): Determines where the statistical data table appears on the chart.
Effect on performance: No impact on analytical performance, purely a visual preference.
Show Distribution Histogram (False): Controls whether the distribution histogram of drop percentages is displayed.
Effect on performance: Enabling this provides visual insight into the distribution of retracements but can clutter the chart.
Show Real-time Percentile (True): Toggles the display of real-time percentile rankings.
Effect on performance: A critical setting that enables the dynamic analysis of current price movements. Disabling this removes one of the key advantages of the indicator.
Real-time Percentile Display Mode (Label): Chooses between label display or indicator line for percentile rankings.
Effect on performance: Labels provide precise information at the current price point, while indicator lines show the evolution of percentile rankings over time.
Advanced Considerations for Settings Optimization:
Timeframe Adjustment: Higher timeframes generally benefit from larger Left/Right values to identify truly significant pivots, while lower timeframes may require smaller values to capture shorter-term swings.
Volatility-Based Tuning: In highly volatile markets, consider increasing the Left/Right values to filter out noise. In less volatile conditions, lower values can help identify more potential entry and exit points.
Market-Specific Optimization: Different markets (forex, stocks, commodities) display different retracement patterns. Monitor the statistics table to see if your market typically shows larger or smaller retracements than the current settings are optimized for.
Trading Style Alignment: Adjust the settings to match your trading timeframe. Day traders might prefer settings that identify shorter-term pivots (smaller Left/Right values), while swing traders benefit from more significant pivots (larger Left/Right values).
By understanding how these settings affect the analysis and customizing them to your specific market and trading style, you can maximize the effectiveness of StatPivot as a powerful statistical tool for identifying high-probability trading opportunities.
Penny King**Penny King Trend Indicator**
The **Penny King** is a powerful and versatile trend-following indicator designed to assist traders in identifying market trends and dynamic support/resistance levels. This tool effectively leverages Adaptive True Range (ATR) and Exponential Moving Average (EMA) or a Delta Price method to establish a trailing stop level, ensuring traders can capture strong trends while minimizing risk.
### **Key Features:**
1. **Dual Calculation Modes:**
- **ATR & EMA-Based Mode (Mode 0)**: Uses ATR (Average True Range) and EMA (Exponential Moving Average) to determine the trailing stop level dynamically.
- **Delta Price Mode (Mode 1)**: Utilizes a fixed price change threshold (Delta Price) to define stop levels based on market volatility.
2. **Adjustable Parameters for Customization:**
- **Range (akk_range)**: Defines the lookback period for the ATR calculation.
- **IMA Range (ima_range)**: Specifies the EMA smoothing factor applied to the ATR.
- **Factor (akk_factor)**: Multiplier applied to the ATR-based calculation to refine trailing stop sensitivity.
- **Delta Price (DeltaPrice)**: Fixed price-based stop level for an alternative trend calculation.
3. **Intelligent Trailing Stop Mechanism:**
- The trailing stop level dynamically adjusts based on price movement, following the trend while preventing premature exits.
- If the price moves in favor of the trend, the stop level is adjusted accordingly to lock in profits.
- If the price reverses against the trend, the stop level remains intact until a new trend direction is established.
4. **Efficient Market Adaptability:**
- The ATR-based method ensures adaptability to changing market conditions, expanding stop levels in high volatility and tightening them in low volatility periods.
- The Delta Price method offers a fixed approach, ideal for traders who prefer a non-ATR-based system for managing stop levels.
5. **Clean Visual Representation:**
- The indicator plots a clear, orange-colored trend stop line that dynamically follows the market movement.
- Provides a visual cue to determine potential entry and exit points efficiently.
### **How to Use:**
- **Trend Confirmation:**
- If the price remains above the trend stop line, it signals a bullish trend.
- If the price falls below the trend stop line, it indicates a bearish trend.
- **Trade Entries & Exits:**
- Consider long positions when the price remains above the trend stop.
- Consider short positions when the price stays below the trend stop.
- Utilize the trend stop line as a dynamic trailing stop-loss mechanism to protect gains and minimize losses.
- **Parameter Optimization:**
- Adjust the **Range**, **IMA Range**, and **Factor** to optimize settings based on the trading asset and time frame.
- Experiment with **Delta Price Mode** for assets where fixed price-based trailing stops are more effective.
### **Conclusion:**
The **Penny King Trend Indicator** is an essential tool for traders looking to capture market trends while ensuring effective risk management. Whether you prefer ATR-based adaptability or a fixed price stop approach, this indicator provides the flexibility needed to navigate different market conditions successfully. By integrating the **Penny King**, traders can enhance their trading strategy with a reliable and efficient trend-following system.
Custom Support & Resistance with 3 LevelsThis Pine Script indicator calculates and displays three levels of support and resistance based on the opening price of the first bar of the day.
Here's how it works:
Identifies the Day's Open: The indicator first determines the opening price of the trading day. It does this by checking if the current bar's day is different from the previous bar's day. If it is, it stores the current bar's opening price as the day's opening price.
Calculates Support and Resistance: The user provides six input values: three for calculating resistance levels and three for calculating support levels. These values are added to or subtracted from the day's opening price to determine the three support and resistance levels.
Plots the Levels: The indicator then plots these six levels on the chart as horizontal lines. Resistance levels are typically plotted in shades of red, orange, and yellow, while support levels are plotted in shades of green, blue, and purple.
Key Features:
Day-Based Calculation: The support and resistance levels are anchored to the opening price of the day, providing a consistent reference point regardless of intraday price fluctuations.
Multiple Levels: The indicator provides three levels each for support and resistance, giving traders a broader perspective on potential price turning points.
Customizable: Traders can adjust the values used to calculate the support and resistance levels, allowing for flexibility and adaptation to different trading styles and markets.
Potential Use Cases:
Identifying Entry and Exit Points: Traders can use the support and resistance levels to identify potential entry points for long trades (near support) and short trades (near resistance), as well as exit points for existing positions.
Setting Stop-Loss Orders: The support and resistance levels can be used to set stop-loss orders to limit potential losses.
Gauging Trend Strength: A strong break above a resistance level can indicate bullish momentum, while a break below a support level can suggest bearish pressure.
This indicator can be a valuable tool for traders seeking to incorporate support and resistance levels into their technical analysis. However, it's important to remember that these levels are not absolute guarantees of price reversals and should be used in conjunction with other technical indicators and risk management strategies.
Supertrend and Fast and Slow EMA StrategyThis strategy combines Exponential Moving Averages (EMAs) and Average True Range (ATR) to create a simple, yet effective, trend-following approach. The strategy filters out fake or sideways signals by incorporating the ATR as a volatility filter, ensuring that trades are only taken during trending conditions. The key idea is to buy when the short-term trend (Fast EMA) aligns with the long-term trend (Slow EMA), and to avoid trades during low volatility periods.
How It Works:
EMA Crossover:
1). Buy Signal: When the Fast EMA (shorter-term, e.g., 20-period) crosses above the Slow EMA (longer-term, e.g., 50-period), this indicates a potential uptrend.
2). Sell Signal: When the Fast EMA crosses below the Slow EMA, this indicates a potential downtrend.
ATR Filter:
1). The ATR (Average True Range) is used to measure market volatility.
2). Trending Market: If the ATR is above a certain threshold, it indicates high volatility and a trending market. Only when ATR is above the threshold will the strategy generate buy/sell signals.
3). Sideways Market: If ATR is low (sideways or choppy market), the strategy will suppress signals to avoid entering during non-trending conditions.
When to Buy:
1). Condition 1: The Fast EMA crosses above the Slow EMA.
2). Condition 2: The ATR is above the defined threshold, indicating that the market is trending (not sideways or choppy).
When to Sell:
1). Condition 1: The Fast EMA crosses below the Slow EMA.
2). Condition 2: The ATR is above the defined threshold, confirming that the market is in a downtrend.
When Not to Enter the Trade:
1). Sideways Market: If the ATR is below the threshold, signaling low volatility and sideways or choppy market conditions, the strategy will not trigger any buy or sell signals.
2). False Crossovers: In low volatility conditions, price action tends to be noisy, which could lead to false signals. Therefore, avoiding trades during these periods reduces the risk of false breakouts.
Additional Factors to Consider Adding:
=> RSI (Relative Strength Index): Adding an RSI filter can help confirm overbought or oversold conditions to avoid buying into overextended moves or selling too low.
1). RSI Buy Filter: Only take buy signals when RSI is below 70 (avoiding overbought conditions).
2). RSI Sell Filter: Only take sell signals when RSI is above 30 (avoiding oversold conditions).
=> MACD (Moving Average Convergence Divergence): Using MACD can help validate the strength of the trend.
1). Buy when the MACD histogram is above the zero line and the Fast EMA crosses above the Slow EMA.
2). Sell when the MACD histogram is below the zero line and the Fast EMA crosses below the Slow EMA.
=> Support/Resistance Levels: Adding support and resistance levels can help you understand market structure and decide whether to enter or exit a trade.
1). Buy when price breaks above a significant resistance level (after a valid buy signal).
2). Sell when price breaks below a major support level (after a valid sell signal).
=> Volume: Consider adding a volume filter to ensure that buy/sell signals are supported by strong market participation. You could only take signals if the volume is above the moving average of volume over a certain period.
=> Trailing Stop Loss: Instead of a fixed stop loss, use a trailing stop based on a percentage or ATR to lock in profits as the trade moves in your favor.
=> Exit Signals: Besides the EMA crossover, consider adding Take Profit or Stop Loss levels, or even using a secondary indicator like RSI to signal an overbought/oversold condition and exit the trade.
Example Usage:
=> Buy Example:
1). Fast EMA (20-period) crosses above the Slow EMA (50-period).
2). The ATR is above the threshold, confirming that the market is trending.
3). Optionally, if RSI is below 70, the buy signal is further confirmed as not being overbought.
=> Sell Example:
1). Fast EMA (20-period) crosses below the Slow EMA (50-period).
2). The ATR is above the threshold, confirming that the market is trending.
3). Optionally, if RSI is above 30, the sell signal is further confirmed as not being oversold.
Conclusion:
This strategy helps to identify trending markets and filters out sideways or choppy market conditions. By using Fast and Slow EMAs combined with the ATR volatility filter, it provides a reliable approach to catching trending moves while avoiding false signals during low-volatility, sideways markets.
Supertrend with 1% Target and 1% StoplossSupertrend Calculation: The Supertrend indicator is calculated using the Average True Range (ATR) and a factor. The factor and ATR length can be adjusted in the inputs.
Long and Short Conditions: The strategy enters a long position when the price crosses above the Supertrend line and a short position when the price crosses below it.
Target and Stop Loss: The strategy places a 1% target and a 1% stop loss for both long and short positions.
Visuals: The stop loss and take profit levels are plotted on the chart for better visibility.
Enhanced Doji Candle StrategyYour trading strategy is a Doji Candlestick Reversal Strategy designed to identify potential market reversals using Doji candlestick patterns. These candles indicate indecision in the market, and when detected, your strategy uses a Simple Moving Average (SMA) with a short period of 20 to confirm the overall market trend. If the price is above the SMA, the trend is considered bullish; if it's below, the trend is bearish.
Once a Doji is detected, the strategy waits for one or two consecutive confirmation candles that align with the market trend. For a bullish confirmation, the candles must close higher than their opening price without significant bottom wicks. Conversely, for a bearish confirmation, the candles must close lower without noticeable top wicks. When these conditions are met, a trade is entered at the market price.
The risk management aspect of your strategy is clearly defined. A stop loss is automatically placed at the nearest recent swing high or low, with a tighter distance of 5 pips to allow for more trading opportunities. A take-profit level is set using a 2:1 reward-to-risk ratio, meaning the potential reward is twice the size of the risk on each trade.
Additionally, the strategy incorporates an early exit mechanism. If a reversal Doji forms in the opposite direction of your trade, the position is closed immediately to minimize losses. This strategy has been optimized to increase trade frequency by loosening the strictness of Doji detection and confirmation conditions while still maintaining sound risk management principles.
The strategy is coded in Pine Script for use on TradingView and uses built-in indicators like the SMA for trend detection. You also have flexible parameters to adjust risk levels, take-profit targets, and stop-loss placements, allowing you to tailor the strategy to different market conditions.
Grim SlashOverview:
The Touch Previous Candle Strategy is a simple yet effective trading approach designed for the 1-hour chart. It focuses on price action by placing trades when the current candle interacts with key levels from the previous candle. The strategy is fully automated and includes risk management with take profit and stop loss levels.
Entry Conditions:
Buy Signal: A buy order is triggered when the low of the current candle touches or drops below the previous candle's closing price.
Sell Signal: A position is closed when the high of the current candle reaches or exceeds the previous candle's highest price.
Risk Management:
Take Profit: The trade is exited automatically when the price increases by 15% from the entry point.
Stop Loss: A stop loss is set at 5% below the entry price to minimize risk.
Best Use Cases:
Works well in volatile markets where price frequently tests previous levels.
Suitable for traders who prefer price-action-based strategies over indicators.
Can be optimized for different assets or timeframes based on market behavior.
Candlesticks Not Touching EMA 3 & EMA 5 ScannerCandlesticks Not Touching EMA 3 & EMA 5 Scanner
Short Title: EMA Scanner
Overview
This indicator scans for candlesticks that do not touch the EMA 3 and EMA 5, highlighting potential trading opportunities where price action is significantly distanced from these moving averages. It identifies momentum-based entries and helps traders spot strong trends.
How It Works
It checks if the candle's high and low are completely above or below both EMAs (3 & 5).
It ensures that the distance between the candle and EMA 5 is at least a user-defined multiple of the candle range.
When a valid candle is detected, a triangle marker appears below (for long trades) or above (for short trades).
Trade Execution Strategy
Entry:
Long Entry → Break of the candle’s high
Short Entry → Break of the candle’s low
Stop Loss:
Long SL → Low of the same candle
Short SL → High of the same candle
Target: EMA 5
Additional Features
✅ Plots EMA 3 (Blue) and EMA 5 (Red) for reference
✅ Marks potential long and short trades with arrows
✅ Detects & plots when Target or Stop Loss is hit
✅ Alerts for valid signals, target hits, and stop loss hits
Best Use Cases
🔹 Suitable for intraday & swing traders looking for momentum-based trades
🔹 Works well in trending markets
🔹 Helps identify mean-reversion & breakout opportunities
🚀 Use this indicator to refine your trading setups & boost your market edge! 🚀
John Bob-Trading-BotDeveloped by Ayebale John Bob with the help of his bestie, this innovative strategy combines advanced Smart Money Concepts with practical risk management tools to help traders identify and capitalize on key market moves.
Key Features:
Smart Money Concepts & Fair Value Gaps (FVG):
The strategy monitors price action for fair value gaps, which are visualized as extremely faint horizontal lines on the chart. These FVGs signal potential areas where institutional traders might have entered or exited positions.
Dynamic Entry Signals:
Buy signals are triggered when the price crosses above the 50-bar lowest low or when a bullish FVG is detected. Conversely, sell signals are generated when the price falls below the 50-bar highest high or a bearish FVG is identified. Each signal is visually marked on the chart with clear buy (green) and sell (red) labels.
Multi-Level Order Execution:
Once an entry signal occurs, the strategy places five separate orders, each with its own take-profit (TP) level. The TP levels are calculated dynamically using the Average True Range (ATR) and a set of predefined multipliers. This allows traders to scale out of positions as the market moves favorably.
Dynamic Risk Management:
A stop-loss is automatically set at a distance determined by the ATR, ensuring that risk is managed in accordance with current market volatility.
Real-Time Trade Information Table:
In the bottom-right corner of the chart, a trade information table displays essential details about the current trade:
Side: Displays "BUY NOW" (with a dark green background) for long entries or "SELL NOW" (with a dark red background) for short entries.
Entry Price & Stop-Loss: Shows the entry price (highlighted in green) and the corresponding stop-loss level (highlighted in red).
Take-Profit Levels: Lists the five TP levels, each of which turns green once the market price reaches that target.
Timer: A live timer in minutes counts from the moment the current trade trigger started, helping traders track the duration of their active trades.
Visual Progress Bar:
A histogram-style progress bar is plotted on the chart, visually representing the percentage gain (or loss) relative to the entry price.
This strategy was meticulously designed to incorporate both technical analysis and smart risk management, offering a robust trading solution that adapts to changing market conditions. Whether you're a seasoned trader or just starting out, the AyebaleJohnBob Trading Bot equips you with the tools and visual cues needed to make well-informed trading decisions. Enjoy a seamless blend of strategy and style—crafted with passion by Ayebale John Bob and his bestie!
Scalping trading system based on 4 ema linesScalping Trading System Based on 4 EMA Lines
Overview:
This is a scalping trading strategy built on signals from 4 EMA moving averages: EMA(8), EMA(12), EMA(24) and EMA(72).
Conditions:
- Time frame: H1 (1 hour).
- Trading assets: Applicable to major currency pairs with high volatility
- Risk management: Use a maximum of 1-2% of capital for each transaction. The order holding time can be from a few hours to a few days, depending on the price fluctuation amplitude.
Trading rules:
Determine the main trend:
Uptrend: EMA(8), EMA(12) and EMA(24) are above EMA(72).
Downtrend: EMA(8), EMA(12) and EMA(24) are below EMA(72).
Trade in the direction of the main trend** (buy in an uptrend and sell in a downtrend).
Entry conditions:
- Only trade in a clearly trending market.
Uptrend:
- Wait for the price to correct to the EMA(24).
- Enter a buy order when the price closes above the EMA(24).
- Place a stop loss below the bottom of the EMA(24) candle that has just been swept.
Downtrend:
- Wait for the price to correct to the EMA(24).
- Enter a sell order when the price closes below the EMA(24).
- Place a stop loss above the top of the EMA(24) candle that has just been swept.
Take profit and order management:
- Take profit when the price moves 20 to 40 pips in the direction of the trade.
Use Trailing Stop to optimize profits instead of setting a fixed Take Profit.
Note:
- Do not trade within 30 minutes before and after the announcement of important economic news, as the price may fluctuate abnormally.
Additional filters:
To increase the success rate and reduce noise, this strategy uses additional conditions:
1. The price is calculated only when the candle closes (no repaint).
2. When sweeping through EMA(24), the price needs to close above EMA(24).
3. The closing price must be higher than 50% of the candle's length.
4. **The bottom of the candle sweeping through EMA(24) must be lower than the bottom of the previous candle (liquidity sweep).
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Alert function:
When the EMA(24) sweep conditions are met, the system will trigger an alert if you have set it up.
- Entry point: The closing price of the candle sweeping through EMA(24).
- Stop Loss:
- Buy Order: Place at the bottom of the sweep candle.
- Sell Order: Place at the top of the sweep candle.
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Note:
This strategy is designed to help traders identify profitable trading opportunities based on trends. However, no strategy is 100% guaranteed to be successful. Please test it thoroughly on a demo account before using it.
Adaptive Fractal Grid Scalping StrategyThis Pine Script v6 component implements an "Adaptive Fractal Grid Scalping Strategy" with an added volatility threshold feature.
Here's how it works:
Fractal Break Detection: Uses ta.pivothigh and ta.pivotlow to identify local highs and lows.
Volatility Clustering: Measures volatility using the Average True Range (ATR).
Adaptive Grid Levels: Dynamically adjusts grid levels based on ATR and user-defined multipliers.
Directional Bias Filter: Uses a Simple Moving Average (SMA) to determine trend direction.
Volatility Threshold: Introduces a new input to specify a minimum ATR value required to activate the strategy.
Trade Execution Logic: Places limit orders at grid levels based on trend direction and fractal levels, but only when ATR exceeds the volatility threshold.
Profit-Taking and Stop-Loss: Implements profit-taking at grid levels and a trailing stop-loss based on ATR.
How to Use
Inputs: Customize the ATR length, SMA length, grid multipliers, trailing stop multiplier, and volatility threshold through the input settings.
Visuals: The script plots fractal points and grid levels on the chart for easy visualization.
Trade Signals: The strategy automatically places buy/sell orders based on the detected fractals, trend direction, and volatility threshold.
Profit and Risk Management: The script includes logic for taking profits and setting stop-loss levels to manage trades effectively.
This strategy is designed to capitalize on micro-movements during high volatility and avoid overtrading during low-volatility trends. Adjust the input parameters to suit your trading style and market conditions.
Futures Engulfing Candle Size Strategy (Ticks, TP/SL)The Futures Candle Size Strategy is designed to identify and trade significant price movements in the futures market based on candle size. It is optimized for futures instruments like ES, NQ, or CL, where precise tick-level calculations are essential. The strategy includes a customizable take profit and stop loss in ticks and operates only within a specified time window (e.g., 7:00 AM to 9:15 AM CST).
Key Features:
Candle Size Threshold: Trades are triggered when the candle's high-to-low range exceeds the defined threshold in ticks.
Time Filter: Limits trades to the most active market hours, specifically between 7:00 AM and 9:15 AM CST.
Take Profit and Stop Loss: Customizable exit levels in ticks to manage risk and lock in profits.
Long and Short Trades: Automatically places buy or sell orders based on the candle's direction (bullish or bearish).
Alerts: Sends alerts whenever a trade is triggered, helping you stay informed in real-time.
How It Works:
The strategy calculates the size of each candle in ticks and compares it to the user-defined threshold.
If the candle size meets or exceeds the threshold within the specified time range, it triggers a long or short trade.
The trade automatically exits when the price hits the take profit or stop loss levels.
Dynamic S/R Levels: Edge FinderOverview
The Dynamic S/R Levels: Edge Finder indicator is designed to identify dynamic support and resistance levels based on historical price action. It uses a combination of price extremes (highs and lows) over user-defined lookback periods, weighted moving averages (WMAs), and touch-count analysis to provide actionable insights into key market levels.
This tool is ideal for traders who want to:
Identify dynamic support and resistance zones.
Understand the strength of these levels based on price touches.
Make informed decisions using clear, adaptive levels.
How It Works
Dynamic Levels Calculation:
The indicator calculates dynamic support levels using the lowest lows and dynamic resistance levels using the highest highs over user-defined lookback periods (e.g., 20, 40, 60 bars, etc.).
These levels are updated dynamically as new price data becomes available.
Touch Count Analysis:
The indicator counts how many times the price has touched or come close to each support/resistance level within the lookback period.
Levels with more touches are considered stronger and are highlighted accordingly.
Weighted Moving Averages (WMAs):
The indicator uses 50-period and 100-period WMAs to identify the closest support/resistance levels to the current trend.
Levels near these WMAs are given additional weight, as they are more likely to act as significant barriers.
Level Merging:
If two support or resistance levels are too close to each other (based on the minimum distance percentage), the weaker level (with fewer touches) is removed to avoid clutter.
Visualization:
Support levels are displayed as dashed red lines, and resistance levels are displayed as dashed blue lines.
Each level is labeled with its corresponding touch count, allowing traders to quickly assess its strength.
How to Interpret the Indicator
Strong Support/Resistance Levels:
Levels with higher touch counts (e.g., 5, 10, or more) are considered stronger and are more likely to hold in the future.
Use these levels to plan entries, exits, or stop-loss placements.
Proximity to WMAs:
Levels closest to the 50-period or 100-period WMA are more significant, especially in trending markets.
These levels often act as dynamic barriers where price reactions are more likely.
Breakouts and Rejections:
If the price breaks through a strong resistance level, it may indicate a potential bullish trend.
If the price rejects a strong support level, it may indicate a potential bearish trend.
Always confirm breakouts or rejections with additional analysis (e.g., volume, candlestick patterns).
Level Merging:
Merged levels indicate areas of high confluence, where multiple support/resistance zones overlap.
These areas are particularly important for decision-making, as they represent stronger market reactions.
Key Features
Customizable Lookback Periods: Adjust the lookback periods for each dynamic level to suit your trading style.
Touch Count Labels: Quickly identify the strength of each level based on the number of price touches.
Adaptive Levels: The indicator dynamically updates levels based on recent price action.
Clean Visualization: Levels are automatically merged to avoid clutter and provide a clear view of the market structure.
Usage Tips
Trend Identification: Combine the indicator with trend-following tools (e.g., moving averages, trendlines) to confirm the overall market direction.
Risk Management: Use the identified levels to set stop-loss orders or take-profit targets.
Timeframe Flexibility: The indicator works on all timeframes, but it is particularly effective on higher timeframes (e.g., 1H, 4H, Daily) for more reliable levels.
Example Scenarios
Bounce Trade:
If the price approaches a strong support level (high touch count) and shows signs of rejection (e.g., bullish candlestick patterns), consider a long position with a stop-loss below the support level.
Breakout Trade:
If the price breaks above a strong resistance level with high volume, consider a long position with a target at the next resistance level.
Range-Bound Market:
In a sideways market, use the support and resistance levels to identify range boundaries and trade bounces between them.
Disclaimer
Dynamic S/R Levels: Edge Finder is a technical analysis tool designed to identify dynamic support and resistance levels based on historical price action. It is intended for informational and educational purposes only. This indicator does not provide financial, investment, or trading advice. Users are solely responsible for their trading decisions and should conduct their own research and analysis before making any trades. The developer of this tool is not liable for any financial losses or damages resulting from the use of this indicator. Trading in financial markets involves risk, and you should only trade with capital you can afford to lose.
Enhanced VIP-like IndicatorSettings Breakdown Tutorial: Optimizing a Trading Strategy
This guide explains the key trading strategy settings and how to customize them based on your trading style and goals. Each parameter is essential for tailoring the strategy to market conditions and your risk appetite.
1. Short Moving Average Length (Default: 9)
• Purpose: Tracks short-term trends using a small number of candles.
• Settings Tips:
• Smaller Values (e.g., 9): Quickly react to price changes, useful for fast-moving markets.
• Larger Values (e.g., 12-15): Generate smoother signals for less volatile trades.
2. Long Moving Average Length (Default: 21)
• Purpose: Identifies long-term trends.
• Settings Tips:
• Higher Values (e.g., 50): Spot broader trends at the expense of slower signals.
• Trend Analysis: The interaction of short and long MAs helps determine bullish or bearish trends (e.g., bullish when short MA crosses above long MA).
3. Higher Timeframe MA Length (Default: 200)
• Purpose: Filters long-term trends on a higher timeframe (e.g., daily).
• Settings Tips:
• 200 Periods: Standard for defining bullish (price above) or bearish (price below) markets.
• Adjustable: Use 100 for faster responses or stick with 200 for reliability.
4. Higher Timeframe (Default: 1 Day)
• Purpose: Defines the timeframe for the higher moving average.
• Settings Tips:
• Shorter Timeframes (e.g., 4 Hours): More frequent trading signals.
• Daily Timeframe: Best for swing trading and identifying macro trends.
5. RSI Length (Default: 14)
• Purpose: Measures momentum over a specific number of candles.
• Settings Tips:
• Lower Values (e.g., 7): More sensitive to price changes, ideal for quick trades.
• Higher Values (e.g., 20): Smooth signals for more stable markets.
6. RSI Overbought (70) and Oversold (30) Levels
• Purpose: Marks thresholds for overbought and oversold conditions.
• Settings Tips:
• Stricter Levels (e.g., 80/20): Fewer, higher-quality signals.
• Looser Levels (e.g., 65/35): More frequent signals, suitable for active trading.
7. Pivot Left Bars (5) and Pivot Right Bars (5)
• Purpose: Confirms pivot points (support/resistance) based on surrounding candles.
• Settings Tips:
• Higher Values (e.g., 10): Stronger but less frequent pivot points.
• Lower Values: More responsive, for traders seeking quick pivots.
8. Take Profit Percentage (Default: 2%)
• Purpose: Defines the profit level to exit trades.
• Settings Tips:
• Higher Values (e.g., 5%): For swing traders holding positions longer.
• Lower Values (e.g., 1%): For scalpers focusing on quick trades.
9. Minimum Volume (Default: 1,000,000)
• Purpose: Ensures sufficient liquidity for trading.
• Settings Tips:
• Lower Values: For lower-volume markets.
• Higher Values: Reduces risk in high-liquidity assets.
10. Stop Loss Percentage (Default: 1%)
• Purpose: Sets the maximum acceptable loss per trade.
• Settings Tips:
• Lower Values (e.g., 0.5%): Reduces risk, suited for conservative trading.
• Higher Values (e.g., 2%): Allows more price fluctuation, ideal for volatile markets.
11. Entry Conditions
• Options:
• MA Crossover & RSI: Combines trend-following and momentum for well-rounded signals.
• Pivot Breakout: Focuses on support/resistance breakouts for high-impact trades.
• Settings Tips:
• Trend-Following Traders: Use MA Crossover & RSI.
12. Exit Conditions
• Options:
• Opposite Signal: Exits when the trade’s opposite condition occurs (e.g., bullish to bearish).
• Fixed Take Profit/Stop Loss: Exits based on predefined profit/loss thresholds.
• Settings Tips:
• Opposite Signal: Ideal for trend-following strategies.
Summary
Customizing these settings aligns the strategy with your trading goals. Test configurations in a demo environment before live trading to refine the approach and optimize results. Always balance profit potential with risk management.
• Fixed Levels: Better for strict risk management.
• Breakout Traders: Opt for Pivot Breakout.
Follow Through Day (FTD) + Sweep [TrendX_]The Follow Through Day (FTD) + Sweep indicator is a Trend-following tool mixing William O'Neil's original FTD concept and Liquidity concept. This indicator helps you identify potential subsequent bullish trends with greater precision by combining volume analysis, price action, and liquidity concepts.
💎 FEATURES
Follow Through Day Candle (FTD Candle)
The FTD, pioneered by William O'Neil, serves as a reliable signal for identifying the beginning of new bull markets. It's particularly valuable because it combines multiple market factors - price action, volume, and timing - to confirm genuine market reversals rather than temporary bounces.
The power of the FTD lies in its ability to distinguish between ordinary market fluctuations and significant trend changes. By requiring specific criteria to be met across multiple sessions, it helps filter out false signals and identifies high-probability reversal points where institutional investors are likely beginning to accumulate positions.
Sweep Area
The Sweep area feature enhances the traditional FTD concept by incorporating modern liquidity analysis. This overlay identifies zones where large market participants are likely to trigger stop losses before continuing the trend. These areas often represent optimal entry points for traders looking to join the new uptrend with reduced risk.
🔎 BREAKDOWN
FTD Candle
The FTD formation process occurs in two distinct phases: Setup and Completion.
Setup Phase
Strong Market Decline
The market must first experience a significant downtrend
This selling pressure helps clear out weak hands and creates oversold conditions
The decline creates the potential energy for a powerful reversal
First Recovery Session
Marks the initial sign of buying pressure emerging
Often characterized by a strong reversal candle
Represents the first indication that selling pressure may be exhausting
Recovery Confirmation
The second and third days must maintain prices above the new pivot low
This consolidation period helps confirm the validity of the initial bounce
Shows that sellers are no longer in control of price action
Completion Phase:
Supply Test Session
Low volume indicates diminishing selling pressure
Price remains above the pivot low
Creates the foundation for institutional buyers to begin accumulating
Breakout Day
Price increase exceeds average profit of bullish candles
Volume increases by at least 15% compared to previous session
Shows strong institutional commitment to the new uptrend
Timing Window
Must occur between the 4th and 8th candle after First Recovery Session
This specific timing helps confirm the sustainability of the reversal
Based on O'Neil's research of historical market bottoms
FTD Sweep
The Post-FTD Phase introduces the Sweep concept, which is crucial for understanding how large market participants operate. This feature leverages the liquidity concept because institutional traders often need to trigger stop losses to accumulate larger positions at better prices. This helps:
Create liquidity pools for large position entries
Shake out weak hands before continuing the trend
Test the strength of the new trend by absorbing selling pressure
⚙️ USAGE
Sweep + TP & SL Strategy
Example: BTCUSDT (1D) - Replay back to 9th November 2024
After an FTD candle forms, traders can adopt a systematic approach to enhance their trading strategy. First, they should determine the swing range and convert the post-FTD zone into concrete stop loss and take profit levels, which are based on the price action during the FTD formation. Next, traders should wait for a sweep formation, as this indicates that institutional players are accumulating positions. A quick price rejection from the sweep level should be observed before executing an entry.
The reasoning behind this strategy is rooted in market microstructure. By waiting for the sweep, traders position themselves alongside institutional players who need to build large positions without causing adverse price movement. The sweep creates the liquidity they need, and the subsequent move often represents the true trend continuation.
DISCLAIMER
This indicator is not financial advice, it can only help traders make better decisions. There are many factors and uncertainties that can affect the outcome of any endeavor, and no one can guarantee or predict with certainty what will occur. Therefore, one should always exercise caution and judgment when making decisions based on past performance.
Swing High/Low Pivots Strategy [LV]The Swing High/Low Pivots Strategy was developed as a counter-momentum trading tool.
The strategy is suitable for any market and the default values used in the input settings menu are set for Bitcoin (best on 15min). These values, expressed in minimum ticks (or pips if symbol is Forex) make this tool perfectly adaptable to every symbol and/or timeframe.
Check tooltips in the settings menu for more details about every user input.
STRTEGY ENTRY & EXIT MECHANISMS:
Trades Entry based on the detection of swing highs and lows for short and long entries respectively, validated by:
- Limit orders placed after each new pivot level confirmation
- Moving averages trend filter (if enabled)
- No active trade currently open
Trades Exit when the price reaches take-profit or stop-loss level as defined in the settings menu. A double entry/second take-profit level can be enabled for partial exits, with dynamic stop-loss adjustment for the remaining position.
Enhanced Trade Precision:
By limiting entries to confirmed swing high (HH, LH) or swing low (HL, LL) pivot points, the strategy ensures that trades occur at levels of significant price reversals. This precision reduces the likelihood of entering trades in the midst of a trend or during uncertain price action.
Risk Management Optimization:
The strategy incorporates clearly defined stop-loss (SL) and take-profit (TP) levels derived from the pivot points. This structured approach minimizes potential losses while locking in profits, which is critical for consistent performance in volatile markets.
Trend Filtering for Better Entry:
The use of a configurable moving average filter adds a layer of trend validation. This prevents entering trades against the dominant market trend, increasing the probability of success for each trade.
Avoidance of Noise:
The lookback period (length parameter) confirms pivots only after a set number of bars, effectively filtering out market noise and ensuring that entries are based on reliable, well-defined price movements.
Adaptability Across Markets:
The strategy is versatile and can be applied across different markets (Forex, stocks, crypto) due to its dynamic use of ticks and pips converters. It adapts seamlessly to varying price scales and asset types.
Dual Quantity Entries:
The original and optionnal double-entry mechanism allows traders to capture both short-term and extended profits by scaling out of positions. This adaptive approach caters to varying risk appetites and market conditions.
Clear Visualization:
The plotted pivot points, entry limits, SL, and TP levels provide visual clarity, making it easy for traders to track the strategy's behavior and make informed decisions.
Automated Execution with Alerts:
Integrated alerts for both entries and exits ensure timely actions without the need for constant market monitoring, enhancing efficiency. Configurable alert messages are suitable for API use.
Any feedback, comments, or suggestions for improvement are always welcome.
Hope you enjoy!
MCP Stop Strategy [JARUTIR]The MCP Stop Strategy is a trading tool designed to help traders lock in profits and manage risks. It is based on the concept of setting a MCP (Mental Capacity Preservation) Stop explained in the book "The Lifecycle Trade". I call it Maximum Controllable Profit Stop which helps protect profits once a stock or asset reaches a new peak. The MCP Stop is dynamically calculated based on the Buy Price and the All Time High Price (Peak Price), and is adjusted using a customizable percentage (MCP%) to retain a portion of the gains from the peak price during a drawdown.
Key Features :
MCP Stop Calculation: The script calculates the MCP Stop as:
MCP Stop = Buy Price + (Peak Price - Buy Price) x MCP%
This helps you protect a portion of your gains (defined by MCP%) as the price moves in your favor.
Flexible Buy Date Option:
You can either manually input a Buy Date or let the script automatically detect the Buy Date when the price first meets or exceeds the user-defined Buy Price.
After the Buy Date, the MCP Stop, Buy Price, and Peak Price are plotted on the chart for easy visualization.
Customizable Parameters:
Buy Price: The price at which the asset was bought.
MCP Percentage: The percentage of profit from the peak that you want to retain in case of a drawdown.
Lookback Length: The number of bars to consider when calculating the Peak Price (All Time High).
How to Use the Script :
Set the Buy Price: Enter the price at which you bought the asset.
Set the MCP%: Enter the percentage of profits you want to protect from the peak. For example, if you want to retain 10% of the gain from the peak, set this to 10.
Choose the Buy Date Method:
Automated Buy Date: The script will automatically detect the first bar where the price meets or exceeds the Buy Price.
Manual Buy Date: If you prefer to specify a particular Buy Date, input the desired date and time.
View the MCP Stop and Peak Price: After the Buy Date (either manually or automatically detected), the MCP Stop, Buy Price, and Peak Price will be plotted on the chart.
Monitor the MCP Stop Trigger: The script will alert you when the price falls below the MCP Stop, indicating a potential exit point to protect profits.
Frequently Asked Questions (FAQs):
1. What is the MCP Stop?
The MCP Stop is a dynamic stop-loss level that adjusts based on your Buy Price and the All Time High Price (Peak Price). It protects a portion of your gains from the peak, which is defined by the MCP%. For example, if you set the MCP% to 10%, the script will retain 10% of the gains from the peak and use this as a stop-loss.
2. How does the Buy Date work?
The Buy Date is the date when you entered the position:
If you choose Automated Buy Date, the script will automatically set the Buy Date to the first bar when the price meets or exceeds the Buy Price.
If you choose Manual Buy Date, you can specify a particular date and time when you want the strategy to start calculating and plotting the MCP Stop and Peak Price.
3. What happens if the price falls below the MCP Stop?
If the price drops below the MCP Stop, the script will mark this as a potential exit point, helping you protect profits. A visual alert (MCP STOP) will be shown on the chart when the price reaches or falls below the MCP Stop.
4. Can I adjust the Lookback Length for Peak Price?
Yes, you can customize the Lookback Length (the number of bars the script considers when calculating the Peak Price) by entering a value in the input field. By default, it is set to 1000 bars, which represents a few months of historical data, but you can increase or decrease this based on your trading strategy.
5. Why would I want to use the automated Buy Date?
The Automated Buy Date is useful for traders who want the script to automatically track the Buy Date when the price first reaches or exceeds the Buy Price. This is helpful when you're unsure of the exact entry date but know the price at which you bought the asset. It simplifies the process by eliminating the need for manual input.
6. Can I use this strategy for long and short positions?
The current version of this script is designed for long positions, where you buy an asset and want to protect your profits as the price increases. If you're interested in applying it to short positions, you would need to adjust the logic accordingly (e.g., tracking the lowest price instead of the peak price).
7. Can I modify the script to fit my trading strategy?
Yes, this script is highly customizable. You can adjust parameters such as Buy Price, MCP%, and Lookback Length to suit your specific trading style. You can also tweak the visual appearance of the plotted lines and alerts.
Disclaimer:
This strategy is intended for educational purposes only. It should not be considered financial advice. Always perform your own research and consult with a professional before making any trading decisions. Trading involves significant risk, and you should never trade with money you cannot afford to lose.
RSI and Bollinger Bands Screener [deepakks444]Indicator Overview
The indicator is designed to help traders identify potential long signals by combining the Relative Strength Index (RSI) and Bollinger Bands across multiple timeframes. This combination allows traders to leverage the strengths of both indicators to make more informed trading decisions.
Understanding RSI
What is RSI?
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. Developed by J. Welles Wilder Jr. for stocks and forex trading, the RSI is primarily used to identify overbought or oversold conditions in an asset.
How RSI Works:
Calculation: The RSI is calculated using the average gains and losses over a specified period, typically 14 periods.
Range: The RSI oscillates between 0 and 100.
Interpretation:
Key Features of RSI:
Momentum Indicator: RSI helps identify the momentum of price movements.
Divergences: RSI can show divergences, where the price makes a higher high, but the RSI makes a lower high, indicating potential reversals.
Trend Identification: RSI can also help identify trends. In an uptrend, the RSI tends to stay above 50, and in a downtrend, it tends to stay below 50.
Understanding Bollinger Bands
What is Bollinger Bands?
Bollinger Bands are a type of trading band or envelope plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a price. Developed by financial analyst John Bollinger, Bollinger Bands consist of three lines:
Upper Band: SMA + (Standard Deviation × Multiplier)
Middle Band (Basis): SMA
Lower Band: SMA - (Standard Deviation × Multiplier)
How Bollinger Bands Work:
Volatility Measure: Bollinger Bands measure the volatility of the market. When the bands are wide, it indicates high volatility, and when the bands are narrow, it indicates low volatility.
Price Movement: The price tends to revert to the mean (middle band) after touching the upper or lower bands.
Support and Resistance: The upper and lower bands can act as dynamic support and resistance levels.
Key Features of Bollinger Bands:
Volatility Indicator: Bollinger Bands help traders understand the volatility of the market.
Mean Reversion: Prices tend to revert to the mean (middle band) after touching the bands.
Squeeze: A Bollinger Band Squeeze occurs when the bands narrow significantly, indicating low volatility and a potential breakout.
Combining RSI and Bollinger Bands
Strategy Overview:
The strategy aims to identify potential long signals by combining RSI and Bollinger Bands across multiple timeframes. The key conditions are:
RSI Crossing Above 60: The RSI should cross above 60 on the 15-minute timeframe.
RSI Above 60 on Higher Timeframes: The RSI should already be above 60 on the hourly and daily timeframes.
Price Above 20MA or Walking on Upper Bollinger Band: The price should be above the 20-period moving average of the Bollinger Bands or walking on the upper Bollinger Band.
Strategy Details:
RSI Calculation:
Calculate the RSI for the 15-minute, 1-hour, and 1-day timeframes.
Check if the RSI crosses above 60 on the 15-minute timeframe.
Ensure the RSI is above 60 on the 1-hour and 1-day timeframes.
Bollinger Bands Calculation:
Calculate the Bollinger Bands using a 20-period moving average and 2 standard deviations.
Check if the price is above the 20-period moving average or walking on the upper Bollinger Band.
Entry and Exit Signals:
Long Signal: When all the above conditions are met, consider a long entry.
Exit: Exit the trade when the price crosses below the 20-period moving average or the stop-loss is hit.
Example Usage
Setup:
Add the indicator to your TradingView chart.
Configure the inputs as per your requirements.
Monitoring:
Look for the long signal on the chart.
Ensure that the RSI is above 60 on the 15-minute, 1-hour, and 1-day timeframes.
Check that the price is above the 20-period moving average or walking on the upper Bollinger Band.
Trading:
Enter a long position when the criteria are met.
Set a stop-loss below the low of the recent 15-minute candle or based on your risk management rules.
Monitor the trade and exit when the RSI returns below 60 on any of the timeframes or when the price crosses below the 20-period moving average.
House Rules Compliance
No Financial Advice: This strategy is for educational purposes only and should not be construed as financial advice.
Risk Management: Always use proper risk management techniques, including stop-loss orders and position sizing.
Past Performance: Past performance is not indicative of future results. Always conduct your own research and analysis.
TradingView Guidelines: Ensure that any shared scripts or strategies comply with TradingView's terms of service and community guidelines.
Conclusion
This strategy combines RSI and Bollinger Bands across multiple timeframes to identify potential long signals. By ensuring that the RSI is above 60 on higher timeframes and that the price is above the 20-period moving average or walking on the upper Bollinger Band, traders can make more informed decisions. Always remember to conduct thorough research and use proper risk management techniques.
MACD Aggressive Scalp SimpleComment on the Script
Purpose and Structure:
The script is a scalping strategy based on the MACD indicator combined with EMA (50) as a trend filter.
It uses the MACD histogram's crossover/crossunder of zero to trigger entries and exits, allowing the trader to capitalize on short-term momentum shifts.
The use of strategy.close ensures that positions are closed when specified conditions are met, although adjustments were made to align with Pine Script version 6.
Strengths:
Simplicity and Clarity: The logic is straightforward and focuses on essential scalping principles (momentum-based entries and exits).
Visual Indicators: The plotted MACD line, signal line, and histogram columns provide clear visual feedback for the strategy's operation.
Trend Confirmation: Incorporating the EMA(50) as a trend filter helps avoid trades that go against the prevailing trend, reducing the likelihood of false signals.
Dynamic Exit Conditions: The conditional logic for closing positions based on weakening momentum (via MACD histogram change) is a good way to protect profits or minimize losses.
Potential Improvements:
Parameter Inputs:
Make the MACD (12, 26, 9) and EMA(50) values adjustable by the user through input statements for better customization during backtesting.
Example:
pine
Copy code
macdFast = input(12, title="MACD Fast Length")
macdSlow = input(26, title="MACD Slow Length")
macdSignal = input(9, title="MACD Signal Line Length")
emaLength = input(50, title="EMA Length")
Stop Loss and Take Profit:
The strategy currently lacks explicit stop-loss or take-profit levels, which are critical in a scalping strategy to manage risk and lock in profits.
ATR-based or fixed-percentage exits could be added for better control.
Position Size and Risk Management:
While the script uses 50% of equity per trade, additional options (e.g., fixed position sizes or risk-adjusted sizes) would be beneficial for flexibility.
Avoid Overlapping Signals:
Add logic to prevent overlapping signals (e.g., opening a new position immediately after closing one on the same bar).
Backtesting Optimization:
Consider adding labels or markers (label.new or plotshape) to visualize entry and exit points on the chart for better debugging and analysis.
The inclusion of performance metrics like max drawdown, Sharpe ratio, or profit factor would help assess the strategy's robustness during backtesting.
Compatibility with Live Trading:
The strategy could be further enhanced with alert conditions using alertcondition to notify the trader of buy/sell signals in real-time.
Hidden SMT Divergence ICT 01 [TradingFinder] HSMT SMC Technique🔵 Introduction
Hidden SMT Divergence, an advanced concept within the Smart Money Technique (SMT), identifies discrepancies between correlated assets by focusing on their closing prices.
Unlike the standard SMT Divergence, which uses high and low prices for analysis, Hidden SMT Divergence uncovers subtle signals by examining divergences based on the assets' closing values.
These divergences often highlight potential reversals or trend continuations, making this technique a valuable tool for traders aiming to anticipate market movements.
This approach applies across various markets and asset classes, including :
Commodities : CAPITALCOM:GOLD vs. CAPITALCOM:SILVER or BLACKBULL:BRENT vs. BLACKBULL:WTI .
Indices : NASDAQ:NDX vs. TVC:SPX vs. FX:US30 .
FOREX : FX:EURUSD vs. OANDA:GBPUSD vs. TVC:DXY (US Dollar Index).
Cryptocurrencies : BITSTAMP:BTCUSD vs. COINBASE:ETHUSD vs. KUCOIN:SOLUSDT vs. CRYPTOCAP:TOTAL3 .
Volatility Measures : FOREXCOM:XAUUSD vs. TVC:VIX (Volatility Index).
By identifying divergences within these asset groups, traders can gain actionable insights into potential market reversals or shifts in trend direction. Hidden SMT Divergence is particularly effective for pinpointing subtle market signals that traditional methods may overlook.
Bullish Hidden SMT Divergence : This divergence emerges when one asset forms a higher low, while the correlated asset creates a lower low in terms of their closing prices. It often signals weakening downward momentum and a potential reversal to the upside.
Bearish Hidden SMT Divergence : This occurs when one asset establishes a higher high, while the correlated asset forms a lower high based on their closing prices. It typically reflects declining upward momentum and a probable shift to the downside.
🔵 How to Use
The Hidden SMT Divergence indicator provides traders with a systematic approach to identify market reversals or trend continuations through divergences in closing prices between two correlated assets.
🟣 Bullish Hidden SMT Divergence
Bullish Hidden SMT Divergence occurs when the closing price of the primary asset forms a higher low, while the correlated asset creates a lower low. This pattern indicates weakening downward momentum and signals a potential reversal to the upside.
After identifying the divergence, confirm it using additional tools like support levels, volume trends, or indicators such as RSI and MACD. Enter a buy position as the price shows signs of reversal near support zones, ensuring proper risk management by placing a stop-loss below the support level.
Bearish Hidden SMT Divergence
Bearish Hidden SMT Divergence is identified when the closing price of the primary asset forms a higher high, while the correlated asset creates a lower high. This divergence suggests a weakening uptrend and a likely reversal to the downside.
Validate the signal by examining resistance levels, declining volume, or complementary indicators. Consider entering a sell position as the price starts declining from resistance levels, and set a stop-loss above the resistance zone to limit potential losses.
🔵 Setting
Second Symbol : Select the secondary asset to compare with the primary asset. By default, "XAUUSD" (Gold) is used, but it can be customized to any stock, cryptocurrency, or currency pair.
Divergence Fractal Periods : Defines the number of past candles considered for identifying divergences. The default value is 2, but traders can adjust it for greater precision.
Bullish Divergence Line : Displays a dashed line connecting the points of bullish divergence.
Bearish Divergence Line : Shows a similar line for bearish divergence points.
Bullish Divergence Label : Marks areas of bullish divergence with a "+SMT" label.
Bearish Divergence Label : Highlights bearish divergences with a "-SMT" label.
Chart Type : Choose between Line or Candle charts for enhanced visualization.
🔵 Conclusion
Hidden SMT Divergence offers traders a refined method for identifying market reversals by analyzing closing price discrepancies between correlated assets. Its ability to uncover subtle divergences makes it an essential tool for traders who aim to stay ahead of market trends.
By integrating this technique with other technical analysis tools and sound risk management, traders can enhance their decision-making process and capitalize on market opportunities with greater confidence.
Hidden SMT Divergence’s focus on closing prices ensures more precise signals, helping traders refine their strategies across various markets, including Forex, commodities, indices, and cryptocurrencies.
Its open-source nature allows for customization and verification, providing transparency and flexibility to suit diverse trading needs. Hidden SMT Divergence stands as a powerful addition to the arsenal of any trader seeking to unlock hidden opportunities in dynamic financial markets.
Z The Good Stuff +I created this script to have a couple datapoints that I want to look at when going through charts to find trade ideas. Qullamaggie is one of my biggest inspirations and I built in a couple of his concepts with a touch to help me with sizing properly, all explained below:
Box 1: ADR %, Average Daily Range, gives and indication of how volatile the stock is. It uses the 20 day average % move of the current stock on the chart.
Box 2: LOD Distance, low of day distance is a quality of life element I created. It calculates the low for the current candle and color codes it red or green depending on if it's higher or lower than the daily ADR. The logic is that if a stock has an average speed, buying on a setup it is preferred if the stop distance (assuming a low of day stop) should be less than the ADR to improve the odds of more upside.
Box 3: Todays DV, this shows a rough estimate of how much money was traded on the particular day.
Box 4: ADV 20 days, similar to above this shows the 20 day $ traded average. The point to look at it is to have a better idea what position size is possible to not get stuck in something too illiquid.
Box 5: Market cap, just shows the market cap of the stock to know what size the company is.
Box 6: Number of shares, this is an additional quality of life aspect. If using low of day stops, this part calculates based on the users' inputted portfolio size and portfolio risk preference and then calculates how many stocks to buy to stay within the risk parameters. It is obviously not a sole decision making parameter nor does it guarantee any execution, but if a stock is showing an entry you want to take you can use the number of shares to help you know how many to buy. The preset is a portfolio of 10000 and a risk of 0.25%. This means that the number of shares to buy will be at the current price with lod stop that would result in a 0.25% portfolio loss. OF COURSE the actual loss depends on the execution and if the user places a stop loss order.
Hope you find it useful and feel free to give feedback! Cheers!
SnowdexUtilsLibrary "SnowdexUtils"
the various function that often use when create a strategy trading.
f_backtesting_date(train_start_date, train_end_date, test_date, deploy_date)
Backtesting within a specific window based on deployment and testing dates.
Parameters:
train_start_date (int) : the start date for training the strategy.
train_end_date (int) : the end date for training the strategy.
test_date (bool) : if true, backtests within the period from `train_end_date` to the current time.
deploy_date (bool) : if true, the strategy backtests up to the current time.
Returns: given time falls within the specified window for backtesting.
f_init_ma(ma_type, source, length)
Initializes a moving average based on the specified type.
Parameters:
ma_type (simple string) : the type of moving average (e.g., "RMA", "EMA", "SMA", "WMA").
source (float) : the input series for the moving average calculation.
length (simple int) : the length of the moving average window.
Returns: the calculated moving average value.
f_init_tp(side, entry_price, rr, sl_open_position)
Calculates the target profit based on entry price, risk-reward ratio, and stop loss. The formula is `tp = entry price + (rr * (entry price - stop loss))`.
Parameters:
side (bool) : the trading side (true for long, false for short).
entry_price (float) : the entry price of the position.
rr (float) : the risk-reward ratio.
sl_open_position (float) : the stop loss price for the open position.
Returns: the calculated target profit value.
f_round_up(number, decimals)
Rounds up a number to a specified number of decimals.
Parameters:
number (float)
decimals (int)
Returns: The rounded-up number.
f_get_pip_size()
Calculates the pip size for the current instrument.
Returns: Pip size adjusted for Forex instruments or 1 for others.
f_table_get_position(value)
Maps a string to a table position constant.
Parameters:
value (string) : String representing the desired position (e.g., "Top Right").
Returns: The corresponding position constant or `na` for invalid values.
