Machine Learning Adaptive Trend Toolkit [Velowave]The Machine Learning Adaptive Trend Toolkit is a technical analysis tool that combines adaptive algorithms with comprehensive market feature extraction to provide insights into changing market conditions. Unlike static indicators with fixed parameters, this system continuously analyzes and adapts to the evolving market environment.
Core Technology
At the heart of this system is a dynamic approach to market analysis:
• Feature Engineering Pipeline: Extracts and normalizes volatility, momentum, volume, and trend strength metrics
• Market Regime Classification: Identifies 10 distinct market environments including trending, ranging, breakout, and reversal conditions
• Parameter Optimization: Automatically adjusts sensitivity based on detected market conditions
• Dynamic Wave Technology: Creates adaptive support/resistance levels that respond to changing volatility
⚠️ Signal Interpretation
Important: The indicator's wave crosses should be interpreted as trend change signals rather than direct buy/sell recommendations. These signals represent potential trend changes based on adaptive parameters, but require confirmation from other analysis before making trading decisions.
(Image showing example color customizability)
Custom Candle Behavior
The custom candlesticks in this indicator are designed to enhance trend visualization but will behave differently than default candlesticks:
• They use linear regression smoothing to reduce noise
• Their coloring is based on position relative to the adaptive wave, not merely open/close relationships
• They may show different patterns than traditional candlesticks on the same chart
• Trading strategies developed using traditional candlestick patterns may not apply directly to these custom candles
This modified representation helps visualize trend conditions more clearly but should be understood as an analytical tool rather than a direct replacement for traditional price action analysis.
Practical Applications
• Trend Identification
The adaptive wave system provides clear visualization of trend direction and strength, with dynamic support and resistance levels that adjust to current volatility conditions.
• Volatility-Adjusted Analysis
Parameters automatically optimize during high and low volatility periods, preventing false signals during consolidation while remaining responsive during breakouts.
• Regime-Based Strategy Selection
Knowing the current market regime allows you to apply appropriate trading techniques for specific conditions rather than using a one-size-fits-all approach.
• Visual Price Action Analysis
Enhanced candlestick coloring instantly communicates price position relative to the adaptive trend, helping you process market information more efficiently.
(Image showing only the supertrend wave and dynamic moving average)
Technical Components
• Adaptive Wave Algorithm: Creates dynamic support/resistance bands based on volatility, volume, and detected regime
• Dynamic Moving Average: Period automatically adjusts based on market conditions - shorter in trending markets, longer in ranging conditions
• Market Regime Engine: Continuously analyzes feature patterns to classify current conditions
• Custom Candlestick Visualization: Provides instant visual feedback on trend position and momentum
Implementation Details
For full transparency, the core calculations include:
• Volatility normalization through comparative ATR analysis
• Momentum feature extraction using multi-timeframe momentum indicators
• Trend strength quantification through price structure analysis
• Regime detection through feature pattern recognition
• Adaptive parameter adjustment based on detected market conditions
The system uses only historical and current price data for its calculations and analyses. It does not use predictive methodologies that could lead to misleading results. The indicator will show different values on an open bar than it will after the bar closes, which is standard behavior for indicators that use closing prices in their calculations.
Risk Disclaimer:
Trading involves significant risk. This indicator is designed as an analytical tool to enhance decision-making, not as a standalone trading system. Past performance is not indicative of future results.
Cerca negli script per "trend"
SUPeR TReND 2.718An evolved version of the classic Supertrend, SUPeR TReND 2.718 is built to deliver elegant, high-precision trend detection using Euler's constant (e = 2.718) as its default multiplier. Designed for clarity and visual flow, this indicator brings together smooth line work, intelligent color logic, and a minimalistic tally system that tracks trend persistence — all in a highly customizable, overlay-ready format.
Unlike traditional implementations, this version maintains line visibility regardless of fill opacity, ensuring crisp tracking even in complex environments. Ideal for traders who value both aesthetics and actionable structure.
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🔑 Key Features:
- 📐 ATR-based Supertrend with default multiplier = e (2.718)
- 📉 Dynamic trend line with optional fill beneath price
- ⏳ Trend duration tally label (count-only or full format)
- ⬆️ Higher-timeframe Supertrend overlay (optional)
- 🟢 Directional candle coloring for clarity
- 🟡 Subtle anchor line to guide perception without clutter
- ⚙️ PineScript v6 compliant, efficient and modular
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🧠 Interpretation Guide:
- The Supertrend line tracks trend support or resistance — beneath price in uptrends, above in downtrends.
- The shaded fill reflects direction with 70% transparency.
- The trend tally label counts how long the current trend has lasted.
- Candle colors confirm direction without overtaking price action.
- The optional HTF line shows higher-timeframe context.
- A soft yellow anchor line stabilizes the fill relationship without distraction.
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⚙️ Inputs & Controls:
- ✏️ ATR Length – Volatility lookback
- 🧮 Multiplier – Default = 2.718 (Euler's number)
- 🕰️ Higher Timeframe – Choose your bias frame
- 👁️ Show HTF / Main – Toggle each trend layer
- 🧾 Show Label / Simplify – Show trend duration, with or without arrows
- 🎨 Color Candles – Turn directional bar coloring on or off
- 🪄 Show Fill – Toggle the shaded visual rhythm
- 🎛️ All visuals use tuned colors and transparencies for clarity
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🚀 Best Practices:
- ✅ Works on any time frame; shines on 1h v. 1D
- 🔁 Use the HTF line for macro bias filtering
- 📊 Combine with volume or liquidity overlays for edge
- 🧱 Use as a structural base layer with minimalist stacks
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📈 Strategy Tips:
- 🧭 MTF Trend Alignment: Enable the HTF line to filter trades. If the HTF trend is up, only take longs on the lower frame, and vice versa.
- 🔁 Pullback Entries: During a strong trend, consider short-term dips below the Supertrend line as possible re-entry zones — only if HTF remains aligned.
- ⏳ Tally for Exhaustion: When the bar count exceeds 15+, look for confluence (volume divergence, key levels, reversal signals).
- ⚠️ HTF Flip + Extended Trend: When the HTF trend reverses while the main trend is extended, that may be a macro exit or fade signal.
- 🚫 Solo Mode: Disable HTF and use the main trend + tally as a standalone signal layer.
- 🧠 Swing Setup Friendly: Especially powerful on 1D or 1h in swing systems or trend-based grid strategies.
OG Trend MeterDescription:
The OG Trend Meter gives you a visual snapshot of multiple timeframe trends in one glance. Built for speed and clarity, it helps confirm direction across key intraday timeframes: 1m, 5m, 15m, and 30m.
How it works:
Each timeframe analyzes EMA alignment, price action, and momentum.
Displays clear green/red indicators for bullish/bearish trends on each timeframe.
Great for aligning trades with higher timeframe bias.
Best for:
Traders who want multi-timeframe confirmation before pulling the trigger.
Reducing fakeouts by staying with the dominant trend.
Scalping with the 1m chart while respecting 5m–30m direction.
Pair With: OG Supertrend or EMA Stack for high-probability confluence.
AI Trend Momentum SniperThe AI Trend Momentum Sniper is a powerful technical analysis tool designed for day trading. This strategy combines multiple momentum and trend indicators to identify high-probability entry and exit points. The indicator utilizes a combination of Supertrend, MACD, RSI, ATR (Average True Range), and On-Balance Volume (OBV) to generate real-time signals for buy and sell opportunities.
Key Features:
Supertrend for detecting market direction (bullish or bearish).
MACD for momentum confirmation, highlighting changes in market momentum.
RSI to filter out overbought/oversold conditions and ensure high-quality trades.
ATR as a volatility filter to adjust for changing market conditions.
OBV (On-Balance Volume) to confirm volume strength and trend validity.
Dynamic Stop-Loss & Take-Profit based on ATR to manage risk and lock profits.
This indicator is tailored for intraday traders looking for quick market moves, especially in volatile and high liquidity assets like Bitcoin (BTC) and Ethereum (ETH). It helps traders capture short-term trends with efficient risk management tools.
How to Apply:
Set Your Chart: Apply the AI Trend Momentum Sniper to a 5-minute (M5) or 15-minute (M15) chart for optimal performance.
Buy Signal: When the indicator generates a green arrow below the bar, it indicates a buy signal based on positive trend and momentum alignment.
Sell Signal: A red arrow above the bar signals a sell condition when the trend and momentum shift bearish.
Stop-Loss and Take-Profit: The indicator automatically calculates dynamic stop-loss and take-profit levels based on the ATR value for each trade, ensuring proper risk management.
Alerts: Set up custom alerts for buy or sell signals, and get notified instantly when opportunities arise.
Best Markets for Use:
BTC/USDT, ETH/USDT – High liquidity and volatility.
Major altcoins with sufficient volume.
Avoid using it on low-liquidity assets where price action may become erratic.
Timeframes:
This indicator is best suited for lower timeframes (5-minute to 15-minute charts) to capture quick price movements in trending markets.
Market Trend Levels Non-Repainting [BigBeluga X PineIndicators]This strategy is based on the Market Trend Levels Detector developed by BigBeluga. Full credit for the concept and original indicator goes to BigBeluga.
The Market Trend Levels Detector Strategy is a non-repainting trend-following strategy that identifies market trend shifts using two Exponential Moving Averages (EMA). It also detects key price levels and allows traders to apply multiple filters to refine trade entries and exits.
This strategy is designed for trend trading and enables traders to:
Identify trend direction based on EMA crossovers.
Detect significant market levels using labeled trend lines.
Use multiple filter conditions to improve trade accuracy.
Avoid false signals through non-repainting calculations.
How the Market Trend Levels Detector Strategy Works
1. Core Trend Detection Using EMA Crossovers
The strategy detects trend shifts using two EMAs:
Fast EMA (default: 12 periods) – Reacts quickly to price movements.
Slow EMA (default: 25 periods) – Provides a smoother trend confirmation.
A bullish crossover (Fast EMA crosses above Slow EMA) signals an uptrend , while a bearish crossover (Fast EMA crosses below Slow EMA) signals a downtrend .
2. Market Level Detection & Visualization
Each time an EMA crossover occurs, a trend level line is drawn:
Bullish crossover → A green line is drawn at the low of the crossover candle.
Bearish crossover → A purple line is drawn at the high of the crossover candle.
Lines can be extended to act as support and resistance zones for future price action.
Additionally, a small label (●) appears at each crossover to mark the event on the chart.
3. Trade Entry & Exit Conditions
The strategy allows users to choose between three trading modes:
Long Only – Only enters long trades.
Short Only – Only enters short trades.
Long & Short – Trades in both directions.
Entry Conditions
Long Entry:
A bullish EMA crossover occurs.
The trade direction setting allows long trades.
Filter conditions (if enabled) confirm a valid long signal.
Short Entry:
A bearish EMA crossover occurs.
The trade direction setting allows short trades.
Filter conditions (if enabled) confirm a valid short signal.
Exit Conditions
Long Exit:
A bearish EMA crossover occurs.
Exit filters (if enabled) indicate an invalid long position.
Short Exit:
A bullish EMA crossover occurs.
Exit filters (if enabled) indicate an invalid short position.
Additional Trade Filters
To improve trade accuracy, the strategy allows traders to apply up to 7 additional filters:
RSI Filter: Only trades when RSI confirms a valid trend.
MACD Filter: Ensures MACD histogram supports the trade direction.
Stochastic Filter: Requires %K line to be above/below threshold values.
Bollinger Bands Filter: Confirms price position relative to the middle BB line.
ADX Filter: Ensures the trend strength is above a set threshold.
CCI Filter: Requires CCI to indicate momentum in the right direction.
Williams %R Filter: Ensures price momentum supports the trade.
Filters can be enabled or disabled individually based on trader preference.
Dynamic Level Extension Feature
The strategy provides an optional feature to extend trend lines until price interacts with them again:
Bullish support lines extend until price revisits them.
Bearish resistance lines extend until price revisits them.
If price breaks a line, the line turns into a dotted style , indicating it has been breached.
This helps traders identify key levels where trend shifts previously occurred, providing useful support and resistance insights.
Customization Options
The strategy includes several adjustable settings :
Trade Direction: Choose between Long Only, Short Only, or Long & Short.
Trend Lengths: Adjust the Fast & Slow EMA lengths.
Market Level Extension: Decide whether to extend support/resistance lines.
Filters for Trade Confirmation: Enable/disable individual filters.
Color Settings: Customize line colors for bullish and bearish trend shifts.
Maximum Displayed Lines: Limit the number of drawn support/resistance lines.
Considerations & Limitations
Trend Lag: As with any EMA-based strategy, signals may be slightly delayed compared to price action.
Sideways Markets: This strategy works best in trending conditions; frequent crossovers in sideways markets can produce false signals.
Filter Usage: Enabling multiple filters may reduce trade frequency, but can also improve trade quality.
Line Overlap: If many crossovers occur in a short period, the chart may become cluttered with multiple trend levels. Adjusting the "Display Last" setting can help.
Conclusion
The Market Trend Levels Detector Strategy is a non-repainting trend-following system that combines EMA crossovers, market level detection, and customizable filters to improve trade accuracy.
By identifying trend shifts and key price levels, this strategy can be used for:
Trend Confirmation – Using EMA crossovers and filters to confirm trend direction.
Support & Resistance Trading – Identifying dynamic levels where price reacts.
Momentum-Based Trading – Combining EMA crossovers with additional momentum filters.
This strategy is fully customizable and can be adapted to different trading styles, timeframes, and market conditions.
Full credit for the original concept and indicator goes to BigBeluga.
Candle Trend ConfirmationCandle Trend Confirmation Indicator
The "Candle Trend Confirmation" indicator This indicator leverages an Exponential Moving Average (EMA) to visually confirm market trends through dynamic coloring of the EMA line, a shading effect, and candle color changes. It aims to help traders quickly identify strong trends and consolidation phases, enhancing decision-making in various market conditions.
Key Features
Customizable EMA Period:
Traders can adjust the EMA period via an input parameter, with a default setting of 20 periods. This flexibility allows the indicator to adapt to different timeframes and trading strategies.
Pip Threshold for Trend Strength:
A user-defined pip threshold (default set to 0.02) determines the distance from the EMA required to classify a trend as "strong." This parameter can be fine-tuned to suit specific instruments, such as forex pairs, cryptocurrencies, or stocks, where pip values may differ.
Trend Detection Logic:
Strong Uptrend: The closing price must be above the EMA by at least the pip threshold (e.g., 2 pips) and show consistent upward movement over the last three bars (current close > previous close > close two bars ago).
Strong Downtrend: The closing price must be below the EMA by at least the pip threshold and exhibit consistent downward movement over the last three bars.
Consolidation: Any price action that doesn’t meet the strong trend criteria is classified as a consolidation phase.
Dynamic Coloring:
EMA Line: Displayed using the line.new function, the EMA changes color based on trend conditions: green for a strong uptrend, red for a strong downtrend, and purple for consolidation. The line is drawn only for the most recent bar to maintain chart clarity.
Candles: Candlestick colors mirror the trend state—green for strong uptrends, red for strong downtrends, and purple for consolidation—using the barcolor function, providing an immediate visual cue.
Shading Effect: Two dashed lines are drawn above and below the EMA (at half the pip threshold distance) to create a subtle shading zone. These lines adopt a semi-transparent version of the EMA’s color, enhancing the visual representation of the trend’s strength.
How It Works
The indicator calculates the EMA based on the closing price and compares the current price to this average. By incorporating a pip-based threshold and a three-bar confirmation, it filters out noise and highlights only significant trend movements. The use of line.new instead of plot ensures compatibility with certain TradingView environments and offers a lightweight way to render the EMA and shading lines on the chart.
Usage
Trend Identification: Green signals a strong bullish trend, ideal for potential long entries; red indicates a strong bearish trend, suitable for short opportunities; purple suggests a range-bound market, where caution or range-trading strategies may apply.
Customization: Adjust the EMA period and pip threshold in the indicator settings to match your trading style or the volatility of your chosen market. For example, forex traders might set the threshold to 0.0002 for 2 pips on EUR/USD, while crypto traders might use 2.0 for BTC/USD.
Visual Clarity: The combination of EMA coloring, shading, and candle highlights provides a comprehensive view of market dynamics at a glance.
Gradient Trend Filter [ChartPrime]The Gradient Trend Filter is a dynamic trend analysis tool that combines a noise-filtered trend detection system with a color-gradient cloud. It provides traders with a visual representation of trend strength, momentum shifts, and potential reversals.
⯁ KEY FEATURES
Trend Noise Filtering
Uses an advanced smoothing function to filter market noise and produce a more reliable trend representation.
// Noise filter function
noise_filter(src, length) =>
alpha = 2 / (length + 1)
nf_1 = 0.0
nf_2 = 0.0
nf_3 = 0.0
nf_1 := (alpha * src) + ((1 - alpha) * nz(nf_1 ))
nf_2 := (alpha * nf_1) + ((1 - alpha) * nz(nf_2 ))
nf_3 := (alpha * nf_2) + ((1 - alpha) * nz(nf_3 ))
nf_3 // Final output with three-stage smoothing
Color-Based Trend Visualization
The mid-line changes color based on trend direction—green for uptrends and red for downtrends—making it easy to identify trends at a glance.
Orange diamond markers appear when a trend shift is confirmed, providing actionable signals for traders.
Gradient Color Trend Cloud
A cloud around the base trend line that dynamically changes color, often signaling trend shifts ahead of the main trend line.
When in a downtrend, if the cloud starts turning green, it suggests weakening bearish momentum or an upcoming bullish reversal. Conversely, when in an uptrend, a red cloud indicates potential trend weakening or a bearish reversal.
Multi-Layered Trend Bands
The cloud consists of multiple bands, offering a range of support and resistance zones that traders can use for confluence in decision-making.
⯁ HOW TO USE
Identify Trend Strength & Reversals
Use the mid-line and cloud color changes to assess the strength of a trend and spot early signs of reversals.
Monitor Momentum Shifts
Watch for gradient cloud color shifts before the trend line changes color, as this can indicate early weakening or strengthening of momentum.
Act on Trend Shift Markers
Use the orange diamonds as confirmation of trend shifts and potential trade entry or exit points.
Utilize Cloud Bands as Support/Resistance
The outer bands of the cloud act as dynamic support and resistance, helping traders refine their stop-loss and take-profit placements.
⯁ CONCLUSION
The Gradient Trend Filter is an advanced trend detection tool designed for traders looking to anticipate trend shifts with greater precision. By integrating a noise-filtered trend line with a gradient-based trend cloud, this indicator enhances traders' ability to navigate market trends effectively.
SD Trend with SignalsSD Trend Indicator
The SD Trend Indicator is a trend-following tool designed to help traders identify potential buy and sell signals based on a combination of technical indicators: MACD, RSI, and Stochastic Oscillator. It visually enhances price action by color-coding candles and plotting signals when a trend shift occurs.
How It Works:
MACD (12, 26, 9): Measures momentum and trend direction.
RSI (7): Identifies overbought and oversold conditions.
Stochastic Oscillator (14, 3, 3): Confirms trend strength and reversals.
Candle Color Coding:
Green → Bullish (Buy Condition)
Red → Bearish (Sell Condition)
Black → Neutral (No Trade)
Signal Generation:
A Buy Signal (B) is plotted below the first green candle after a neutral (black) phase.
A Sell Signal (S) is plotted above the first red candle after a neutral (black) phase.
This helps traders capture early trend reversals with clear visual confirmation.
Key Features:
✔️ Trend Confirmation using three proven indicators.
✔️ Clear Candle Coloring for easy trend visualization.
✔️ Buy/Sell Labels (B/S) for quick decision-making.
✔️ Works on any timeframe and asset class (stocks, forex, crypto, etc.).
This indicator is ideal for traders looking to follow trends, identify potential reversals, and improve entry/exit timing with a systematic approach
Trend Trader-Remastered StrategyOfficial Strategy for Trend Trader - Remastered
Indicator: Trend Trader-Remastered (TTR)
Overview:
The Trend Trader-Remastered is a refined and highly sophisticated implementation of the Parabolic SAR designed to create strategic buy and sell entry signals, alongside precision take profit and re-entry signals based on marked Bill Williams (BW) fractals. Built with a deep emphasis on clarity and accuracy, this indicator ensures that only relevant and meaningful signals are generated, eliminating any unnecessary entries or exits.
Please check the indicator details and updates via the link above.
Important Disclosure:
My primary objective is to provide realistic strategies and a code base for the TradingView Community. Therefore, the default settings of the strategy version of the indicator have been set to reflect realistic world trading scenarios and best practices.
Key Features:
Strategy execution date&time range.
Take Profit Reduction Rate: The percentage of progressive reduction on active position size for take profit signals.
Example:
TP Reduce: 10%
Entry Position Size: 100
TP1: 100 - 10 = 90
TP2: 90 - 9 = 81
Re-Entry When Rate: The percentage of position size on initial entry of the signal to determine re-entry.
Example:
RE When: 50%
Entry Position Size: 100
Re-Entry Condition: Active Position Size < 50
Re-Entry Fill Rate: The percentage of position size on initial entry of the signal to be completed.
Example:
RE Fill: 75%
Entry Position Size: 100
Active Position Size: 50
Re-Entry Order Size: 25
Final Active Position Size:75
Important: Even RE When condition is met, the active position size required to drop below RE Fill rate to trigger re-entry order.
Key Points:
'Process Orders on Close' is enabled as Take Profit and Re-Entry signals must be executed on candle close.
'Calculate on Every Tick' is enabled as entry signals are required to be executed within candle time.
'Initial Capital' has been set to 10,000 USD.
'Default Quantity Type' has been set to 'Percent of Equity'.
'Default Quantity' has been set to 10% as the best practice of investing 10% of the assets.
'Currency' has been set to USD.
'Commission Type' has been set to 'Commission Percent'
'Commission Value' has been set to 0.05% to reflect the most realistic results with a common taker fee value.
True Range Trend StrengthThis script is designed to analyze trend strength using True Range calculations alongside Donchian Channels and smoothed moving averages. It provides a dynamic way to interpret market momentum, trend reversals, and anticipate potential entry points for trades.
Key Functionalities:
Trend Strength Oscillator:
Calculates trend strength based on the difference between long and short momentum derived from ATR (Average True Range) adjusted stop levels.
Smooths the trend strength using a simple moving average for better readability.
Donchian Channels on Trend Strength Oscillator:
Plots upper and lower Donchian Channels on the smoothed trend strength oscillator.
Traders can use these levels to anticipate breakout points and determine the strength of a trend.
Zero-Cross Shading:
Highlights bullish and bearish zones with shaded backgrounds:
Green for bullish zones where smoothed trend strength is above zero.
Red for bearish zones where smoothed trend strength is below zero.
Moving Averages for Oscillator:
Overlays fast and slow moving averages on the oscillator to provide crossover signals:
Fast MA Cross Above Slow MA: Indicates bullish momentum.
Fast MA Cross Below Slow MA: Indicates bearish momentum.
Alerts:
Alerts are available for MA crossovers, allowing traders to receive timely notifications about potential trend reversals or continuation signals.
Anticipating Entries with Donchian Channels:
The integration of Donchian Channels offers an edge in anticipating excellent trade entries.
Traders can use the oscillator's position relative to the channels to gauge oversold/overbought conditions or potential breakouts.
Use Case:
This script is particularly useful for traders looking to:
Identify the strength and direction of market trends.
Time entries and exits based on dynamic Donchian Channel levels and trend strength analysis.
Incorporate moving averages and visual cues for better decision-making.
Pearson's R TrendPearson's R Trend Indicator
Overview
The Pearson's R Trend Indicator is an advanced technical analysis tool that measures the strength and direction of price trends using statistical correlation. By comparing fast and slow-period Pearson correlation coefficients, this indicator helps identify trend momentum, potential reversals, and overbought/oversold conditions.
Key Features
Dual timeframe correlation analysis (Fast and Slow periods)
Signal line with crossover alerts
Dynamic histogram for trend visualization
Configurable overbought/oversold levels
Multiple visual components with customizable colors
Comprehensive alert system
Technical Details
Core Calculations
Fast R: Calculates Pearson's correlation coefficient over the faster period (default: 21 periods)
Slow R: Calculates Pearson's correlation coefficient over the slower period (default: 34 periods)
R-Diff: Normalized difference between Fast and Slow R values (range: -1 to 1)
Signal Line: Smoothed average of R-Diff (default: 3-period SMA)
Histogram: Difference between R-Diff and Signal Line
Signal Generation
Zero Line Crosses
• Bullish: R-Diff crosses above zero
• Bearish: R-Diff crosses below zero
Signal Line Crosses
• Bullish: R-Diff crosses above Signal Line
• Bearish: R-Diff crosses below Signal Line
Overbought/Oversold Conditions
• Overbought: R-Diff above 0.45 (default)
• Oversold: R-Diff below -0.45 (default)
Customization Options
Calculation Settings
Fast Length: Period for fast correlation calculation (default: 21)
Slow Length: Period for slow correlation calculation (default: 34)
Signal Smoothing: Moving average period for signal line (default: 3)
Price Source: Configurable input source (default: close)
Visual Settings
Histogram display toggle
Signal line display toggle
Crossing markers toggle
Line width adjustments
Custom color schemes for bullish/bearish signals
Configurable overbought/oversold levels
Interpretation
Bullish Signals
R-Diff crossing above zero
R-Diff crossing above signal line
R-Diff emerging from oversold territory
Positive histogram expansion
Bearish Signals
R-Diff crossing below zero
R-Diff crossing below signal line
R-Diff dropping from overbought territory
Negative histogram expansion
Alert Conditions
Zero line crosses (both directions)
Signal line crosses (both directions)
Overbought zone entry
Oversold zone entry
Best Practices
Use multiple timeframe analysis for confirmation
Combine with volume and price action analysis
Watch for divergences between R-Diff and price
Pay attention to histogram momentum changes
Use overbought/oversold levels as dynamic support/resistance zones
Notes
The indicator uses statistical correlation to measure trend strength
Normalized calculations ensure consistent -1 to 1 range
Built-in alert system for all major signal types
Customizable visual elements for optimal chart analysis
Disclaimer
This technical indicator is designed to supplement your trading analysis and should not be used as the sole decision-making tool. Always combine with other forms of analysis and proper risk management techniques.
Trend of Multiple Oscillator Dashboard ModifiedDescription: The "Trend of Multiple Oscillator Dashboard Modified" is a powerful Pine Script indicator that provides a dashboard view of various oscillator and trend-following indicators across multiple timeframes. This indicator helps traders to assess trend conditions comprehensively by integrating popular technical indicators, including MACD, EMA, Stochastic, Elliott Wave, DID (Curta, Media, Longa), Price Volume Trend (PVT), Kuskus Trend, and Wave Trend Oscillator. Each indicator’s trend signal (bullish, bearish, or neutral) is displayed in a color-coded dashboard, making it easy to spot the consensus or divergence in trends across different timeframes.
Key Features:
Multi-Timeframe Analysis: Displays trend signals across five predefined timeframes (1, 2, 3, 5, and 10 minutes) for each included indicator.
Customizable Inputs: Allows for customization of key parameters for each oscillator and trend-following indicator.
Trend Interpretation: Each indicator is visually represented with green (bullish), red (bearish), and yellow (neutral) trend markers, making trend identification intuitive and quick.
Trade Condition Controls: Input options for the number of positive and negative conditions needed to trigger entries and exits, allowing users to refine the decision-making criteria.
Delay Management: Options for re-entry conditions based on both price movement (in points) and the minimum number of candles since the last exit, giving users flexibility in managing trade entries.
Usage: This indicator is ideal for traders who rely on multiple oscillators and moving averages to gauge trend direction and strength across timeframes. The dashboard allows users to observe trends at a glance and make informed decisions based on the alignment of various trend indicators. It’s particularly useful in consolidating signals for strategies that require multiple conditions to align before entering or exiting trades.
Note: Ensure that you’re familiar with each oscillator’s functionality, as some indicators like Elliott Wave and Wave Trend are simplified for visual coherence in this dashboard.
Disclaimer: This script is intended for educational and informational purposes only. Use it with caution and adapt it to your specific trading plan.
Developer's Remark: "This indicator's comprehensive design allows traders to filter noise and identify the most robust trends effectively. Use it to visualize trends across timeframes, understand oscillator behavior, and enhance decision-making with a more strategic approach."
Mars Signals - SSL Trend AnalyzerIntroduction
The "Mars Signals - Precision Trend Analyzer with SSL Baseline & Price Action Zones" is a comprehensive technical analysis tool designed for traders seeking to enhance their market analysis and trading strategies. This indicator integrates multiple advanced trading concepts, including dynamic moving averages, trend detection algorithms, momentum indicators, volume analysis, higher timeframe confirmation, candlestick pattern recognition, and precise price action zones. By combining these elements, the indicator aims to provide clear and actionable buy and sell signals, helping traders to make informed decisions in various market conditions.
Core Components and Functionality
1.Dynamic Baseline Calculation
Moving Average Types: The indicator allows users to select from a variety of moving average types for the baseline calculation, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Hull Moving Average (HMA), Weighted Moving Average (WMA), Double EMA (DEMA), Triple EMA (TEMA), Least Squares Moving Average (LSMA), Triangular Moving Average (TMA), Kijun (from Ichimoku Kinko Hyo), and McGinley's Dynamic.
Baseline Length: Users can customize the length of the moving average, providing flexibility to adjust the sensitivity of the baseline to market movements.
Signal Line Generation: The indicator computes a dynamic signal line based on the relationship between the close price and the moving averages of the high and low prices. This signal line adapts to market volatility and trend changes.
2.SSL Baseline Integration
SSL Baseline: In addition to the primary baseline, the indicator incorporates an SSL (Semaphore Signal Level) Baseline, which further refines trend detection by considering the highs and lows over a specified period.
Dual Confirmation: The combination of the primary baseline and the SSL baseline enhances the reliability of the trend signals by requiring agreement between both baselines before generating a signal.
3.Momentum and Trend Filters
Relative Strength Index (RSI): The indicator uses the RSI to assess the momentum of price movements, filtering out signals that occur during overbought or oversold conditions.
Moving Average Convergence Divergence (MACD): The MACD is employed to identify the direction and strength of the trend, adding another layer of confirmation to the signals.
Average Directional Index (ADX): The ADX measures the strength of the trend, ensuring that signals are generated only when the market shows significant directional movement.
4.Volume Analysis
Volume Filter: An optional volume filter compares the current volume to its moving average, allowing traders to focus on signals that occur during periods of higher market activity.
5.Higher Timeframe Confirmation
Multi-Timeframe Analysis: The indicator can incorporate data from a higher timeframe, comparing the current price to the higher timeframe's baseline and signal line. This feature helps traders align their trades with the broader market trend.
6.Candlestick Pattern Recognition
Bullish Patterns: The indicator detects bullish patterns such as Bullish Engulfing, Piercing Line, Hammer, and Doji.
Bearish Patterns: It also identifies bearish patterns like Bearish Engulfing, Dark Cloud Cover, Shooting Star, and Doji.
Pattern Prioritization: The patterns are prioritized to highlight the most significant formations, which can serve as additional confirmation for trade entries and exits.
7.Price Action Zones
Support and Resistance Levels: The indicator automatically identifies pivot highs and lows to establish dynamic support and resistance levels.
Zone Visualization: It draws shaded rectangles on the chart to represent these zones, providing a clear visual aid for potential reversal or breakout areas.
ATR-Based Zone Width: The zones' thickness is dynamically calculated using the Average True Range (ATR), adjusting to the current market volatility.
Background Coloring: The chart background changes color when the price is above the maximum resistance or below the minimum support, alerting traders to significant price movements.
Interpreting the Signals
1.Buy Signals
Conditions:
Price crosses above the signal line.
RSI is below 70 (not overbought).
MACD line is above the signal line (indicating bullish momentum).
ADX is above the user-defined threshold (default is 20), confirming a strong trend.
(Optional) Volume is above its moving average if the volume filter is enabled.
(Optional) Price is above the higher timeframe baseline and signal line if the higher timeframe filter is enabled.
(Optional) A bullish candlestick pattern is detected if the candlestick pattern filter is enabled.
Visual Indicators:
An upward-pointing label with the text "BUY" appears below the price bar.
The baseline and SSL baseline lines turn to colors indicating bullish conditions.
2.Sell Signals
Conditions:
Price crosses below the signal line.
RSI is above 30 (not oversold).
MACD line is below the signal line (indicating bearish momentum).
ADX is above the user-defined threshold, confirming a strong trend.
(Optional) Volume is above its moving average if the volume filter is enabled.
(Optional) Price is below the higher timeframe baseline and signal line if the higher timeframe filter is enabled.
(Optional) A bearish candlestick pattern is detected if the candlestick pattern filter is enabled.
Visual Indicators:
A downward-pointing label with the text "SELL" appears above the price bar.
The baseline and SSL baseline lines turn to colors indicating bearish conditions.
3.Support and Resistance Zones
Interpretation:
Resistance Zones: Represent areas where the price may face selling pressure. A break above these zones can signal a strong bullish move.
Support Zones: Represent areas where the price may find buying interest. A break below these zones can signal a strong bearish move.
Background Color:
The background turns red when the price is above the maximum resistance, indicating potential overextension.
The background turns green when the price is below the minimum support, indicating potential undervaluation.
Effective Usage Strategies
1.Customization
Adjusting Baseline and SSL Settings: Traders should experiment with different moving average types and lengths to match their trading style and the specific characteristics of the asset being analyzed.
Filtering Parameters: Modify RSI, MACD, and ADX settings to fine-tune the sensitivity of the signals.
Volume and Higher Timeframe Filters: Enable these filters to add robustness to the signals, especially in volatile markets or when trading higher timeframes.
2.Combining with Other Analysis
Fundamental Analysis: Use the indicator in conjunction with fundamental insights to validate technical signals.
Risk Management: Always apply proper risk management techniques, such as setting stop-loss and take-profit levels based on the support and resistance zones provided by the indicator.
3.Backtesting
Historical Analysis: Utilize the indicator's settings to backtest trading strategies on historical data, helping to identify the most effective configurations before applying them in live trading.
4.Monitoring Market Conditions
Volatility Awareness: Pay attention to the ATR and ADX readings to understand market volatility and trend strength, adjusting strategies accordingly.
Event Considerations: Be cautious around major economic announcements or events that may impact market behavior beyond technical indications.
Indicator Inputs and Customization Options
Baseline Type and Length: Select from multiple moving average types and specify the period length.
ADX Settings: Adjust the length, smoothing, and threshold for trend strength confirmation.
Volume Filter: Enable or disable the volume confirmation filter.
Higher Timeframe Filter: Choose to incorporate higher timeframe analysis and specify the desired timeframe.
Candlestick Patterns: Enable or disable the detection of candlestick patterns for additional signal confirmation.
SSL Baseline Type and Length: Customize the SSL baseline settings separately from the primary baseline.
Price Action Zones Settings:
Zone Thickness: Adjust the visual thickness of the support and resistance zones.
Lookback Period: Define how far back the indicator looks for pivot points.
ATR Multiplier for Zone Width: Set the multiplier for ATR to determine the dynamic width of the zones.
Maximum Number of Zones: Limit the number of support and resistance zones displayed.
Pivot Bars: Customize the number of bars to the left and right used for identifying pivot highs and lows.
Conclusion
The "Mars Signals - Precision Trend Analyzer with SSL Baseline & Price Action Zones" is a versatile and powerful tool that amalgamates essential technical analysis techniques into a single, user-friendly indicator. By providing clear visual signals and incorporating multiple layers of confirmation, it assists traders in identifying high-probability trading opportunities. Whether you are a day trader, swing trader, or long-term investor, this indicator can be tailored to suit your trading style and enhance your decision-making process.
To maximize the benefits of this indicator:
Understand Each Component: Familiarize yourself with how each part of the indicator contributes to the overall signal generation.
Customize Thoughtfully: Adjust the settings based on the asset class, market conditions, and your risk tolerance.
Practice Diligently: Use demo accounts or paper trading to practice and refine your strategy before deploying it in live markets.
Stay Informed: Continuously educate yourself on technical analysis and market dynamics to make the most informed decisions.
Disclaimer
Trading financial markets involves risk, and past performance is not indicative of future results. This indicator is a tool to aid in analysis and should not be the sole basis for any trading decision. Always conduct your own research and consider consulting with a licensed financial advisor.
Trend Strength After Reversal
This indicator measures trend strength after the reversal.
It can catch early reversal based on engulfing candlestick pattern or just the regular reversal.
Every reversal have to be confirmed by a close above reversal pattern.
Trend strength is measured by counting subsequent closing confirming the reversal
Multi-Sector Trend AnalysisThis script, titled "Multi-Sector Trend Analysis: Track Sector Momentum and Trends," is designed to assist traders and investors in monitoring multiple sectors of the stock market simultaneously. It leverages technical analysis by incorporating trend detection and momentum indicators like moving averages and the Relative Strength Index (RSI) to offer insights into the price action of various market sectors.
Core Features:
1. Sector-Based Analysis: The script covers 20 major sectors from the NSE (National Stock Exchange) such as Auto, Banking, Energy, FMCG, IT, Pharma, and others. Users can customize which sectors they wish to analyze using the available input fields.
Technical Indicators: The script uses two core technical indicators to detect trends and momentum:
2. Moving Averages: The script calculates both fast and slow exponential moving averages (EMAs). These are critical for identifying short- and long-term price trends and crossovers, helping detect shifts in momentum.
3. Relative Strength Index (RSI): A well-known momentum indicator that shows whether a stock is overbought or oversold. This script uses a 14-period RSI to gauge the strength of each sector.
4. Trend Detection: The script identifies whether the current market trend is "Up" or "Down" based on the relationship between the fast and slow EMAs (i.e., whether the fast EMA is above or below the slow EMA). It highlights this trend visually in a table format, allowing quick and easy trend recognition.
5. Gain/Loss Tracking: This feature calculates the percentage gain or loss since the last EMA crossover (a key point in trend change), giving users a sense of how much the price has moved since the trend shifted.
6. Customizable Table for Display: The script displays the analyzed data in a table format, where users can view each sector's:
Symbol
Trend (Up or Down)
RSI Value
Gain/Loss Since the Last EMA Crossover
This table is customizable in terms of size and color theme (dark or light), providing flexibility in presentation for different charting styles.
How It Works:
Sector Selection: Users can input up to 20 different sector symbols for analysis.
Moving Averages: Users can define the period lengths for both the fast and slow EMAs to suit their trading strategies.
Table Options: Choose between different table sizes and opt for a dark theme to enhance the visual appearance on charts.
How to Use:
Select the symbols (sectors) that you want to track. The script includes pre-configured symbols for major sectors on the NSE, but you can modify these to suit your needs.
Adjust the fast and slow EMA lengths to your preference. A common setting would be 3 for the fast EMA and 4 for the slow EMA, but more conservative traders might opt for higher values.
Customize the table size and theme based on your preference, whether you want a compact table or a larger one for easier readability.
Why Use This Script:
This script is ideal for traders looking to:
Monitor multiple market sectors simultaneously.
Identify key trends across sectors quickly.
Understand momentum and detect potential reversals through RSI and EMA crossovers.
Stay informed on sector performance using a clear visual table that tracks gains or losses.
By using this script, traders can gain better insights into sector-based trading strategies, improve their sector rotation tactics, and stay informed about the broader market environment. It provides a powerful yet easy-to-use tool for both beginner and advanced traders.
9/13/00 Pivots [Rainbow Trends]The 9/13/00 Pivot indicator is a tool that is able to highlight support and resistance levels in relation to the 9, 13 and extended counts of the trending price action. While numerous traders trade the 9/13 counts, this tool is unique in that it continues counting past the 9 level and will mark extended runs coming to an end with a vertical Red or Green Column.
The indicator identifies levels based on both 9,13 and extended counts, but splits them into both Support and Resistance levels and marks each level with a horizontal pivot. The level being Support/Resistance can be determined by the colors of the pivot. In addition, this tool Note that these styles of pivots and colors can be edited in the tool settings.
This calculation is based on the value of the current close compared to the close that happened 4 candles back.
Condition: sequence := close > close
seq := close > close
When this condition is true for 9 or 13 consecutive closes in a row, the indicator will mark the candle with the current number count as well as drawing a horizontal pivot to indicate the importance of the price level.
Sequences
Pivots
Extended Trends Ending/Exhausting
Annotated Chart
Annotated Extended Trends Ending/Exhausting
Scalp Trading Zone
Settings
Toggle Settings - Allows each visual aspect of the indicator to be enabled/disabled.
Pivot Color Settings - Allows the trader to custom tune the colors for their own style.
Candle Settings - The candles are individually marked color wise to visually draw the user's eyes to the change in candle color.
VWAP with Trend Alerts [CrossTrade]The VWAP with Trend Alerts indicator is designed to provide a comprehensive visual and analytical tool for traders using the Volume Weighted Average Price (VWAP) along with additional features like custom bar coloring and trend-based signal alerts.
Key Components and Functionalities:
1. VWAP Calculation: The core of this indicator is the VWAP, which represents the average price of an asset, weighted by volume. It's a popular tool among traders to identify the general direction and strength of a trend, and for assessing entry and exit points.
2. Standard Deviation Bands: Surrounding the VWAP are multiple bands calculated based on standard deviation values. These bands serve as dynamic support and resistance levels. The script allows up to three bands, each with customizable multipliers, giving insights into price volatility and potential breakout or reversal points.
3. Bar Coloring Options:
- Color All Bars: When enabled, all bars on the chart are colored based on whether they close above (green) or below (red) the VWAP.
- Trend Bars Only: This option, when selected, colors only the bars that close beyond the second standard deviation band. It helps in identifying stronger trends and significant market movements.
4. Buy and Sell Signal Conditions: The script includes conditions for buy and sell signals specifically tailored for trend bars. A buy signal is generated when a bar closes above both the VWAP and the upper second standard deviation band, indicating a potential strong uptrend. Conversely, a sell signal is triggered when a bar closes below both the VWAP and the lower second standard deviation band, suggesting a strong downtrend.
5. Alert Conditions: To aid in timely decision-making, the script features alert conditions corresponding to the buy and sell signals.
Usage and Application:
- For Trend Identification: The VWAP and its bands can help identify the prevailing market trend. Bars closing consistently above the VWAP suggest an uptrend, while those closing below indicate a downtrend.
- Volatility Assessment: The standard deviation bands provide a visual representation of market volatility. Narrower bands suggest low volatility, while wider bands indicate high volatility.
- Signal Alerts for Trading: The buy and sell signals, especially those filtered by the trend bars condition, can be valuable for traders looking for strong movement confirmations.
Flexibility and Customization:
This indicator is highly customizable and builds off of the core logic found in standard VWAP indicators. By allowing traders to adjust the standard deviation multipliers and choose their preferred bar coloring strategy. It caters to various trading styles, whether focusing on the broader market trend or pinpointing significant trend-based movements.
TASC 2024.09 Precision Trend Analysis█ OVERVIEW
This script introduces an approach for detecting and confirming trends in price series based on digital signal processing principles, as presented by John Ehlers in the "Precision Trend Analysis" article from the September 2024 edition of TASC's Traders' Tips .
█ CONCEPTS
Traditional trend-following indicators, such as moving averages , are lowpass filters that pass low-frequency components in a series and remove high-frequency components. Because lowpass filters preserve lengthy cycles in the data while attenuating shorter cycles, such filters have unavoidable lag that impacts the timeliness of trading signals.
In his article, John Ehlers presents an alternative approach that combines two highpass filters with different lengths to remove undesired high-frequency content via cancellation . Highpass filters have nearly zero lag. As such, the resulting trend indicator from this approach is very responsive to changes in the price series, with peaks and valleys that closely align with those of the price data. The indicator signifies an uptrend when its value is positive (i.e., above the balance point) and a downtrend when it is negative.
Subsequently, John Ehlers demonstrates that one can use the trend indicator's rate of change (ROC) to determine the onset of new trend movements. The ROC is zero at peaks and valleys in the trend indicator. Therefore, when the ROC crosses above zero, it signifies the onset or continuation of an uptrend. Likewise, the ROC crossing below zero indicates the onset or continuation of a downtrend. Note, however, that because the ROC does not preserve lower-frequency information, it can produce whipsaw trading signals in sideways or continuously trending price series.
This script implements both the trend indicator and its ROC along with the following on-chart signals:
• Green and red arrows that indicate the possible onset or continuation of an uptrend and downtrend, respectively
• Bar and plot colors that signify the sign (direction) of the trend indicator
█ CALCULATIONS
The math behind the trend indicator comes from digital filter design principles. The first step applies a digital highpass filter that attenuates long cycles with periods above the user-specified critical period. The default value is 250 bars, representing roughly one year for instruments such as stocks on the daily timeframe. The next step applies a highpass filter with a shorter period (40 bars by default). The difference between these filters determines the trend indicator, which preserves cyclic components between 40 and 250 bars by default while attenuating and eliminating others. The ROC represents the scaled one-bar difference in the trend indicator.
Trend Line and Price Objective**Script Name: Trend Line and Price Objective with Historical Candles**
BITSTAMP:BTCUSD This Pine Script for TradingView, authored by Dshergill, plots a trend line, price objective, and historical candles on the chart. It includes several key features:
1. **Trend Line and Price Objective:**
- **Trend Line**: Draws a horizontal trend line at the highest high over a user-defined lookback period (`lookbackPeriod`). The trend line updates dynamically based on the highest high value.
- **Price Objective**: Calculates and displays a price objective if the closing price exceeds the highest high. The objective is calculated using a multiplier (`objectiveMultiplier`) and is labeled on the chart when a breakout occurs.
2. **Horizontal Lines:**
- Plots the highest high and lowest low over the lookback period as horizontal lines for easy reference.
3. **Historical Candles:**
- **Plot Candles**: Plots candles for the last 9 bars with conditional coloring based on whether the candle closed higher or lower than it opened. Green is used for bullish candles and red for bearish candles, with gray wicks.
- **Labels**: Adds labels below the wick of each candle to indicate the candle's position in the sequence (from 1 to 9).
**Features:**
- Dynamic trend line and price objective calculation.
- Clear visualization of the highest and lowest levels with horizontal lines.
- Historical candle visualization with color-coded styling and labeled positions.
This script helps traders visualize price trends and potential price objectives while providing a clear historical view of recent candles.
Momentum Trend [MT]The Momentum Trend indicator is an innovative technical analysis tool designed to capture and visualize momentum trends in financial markets. This advanced indicator goes beyond traditional momentum measures, offering a unique perspective on price action and trend strength.
Core Functionality:
Trend Momentum Index (TMI) Calculation:
At the heart of this indicator is the Trend Momentum Index (TMI), a proprietary algorithm that combines moving averages with price action analysis to gauge momentum. The TMI is calculated using a user-defined source, length, and moving average type.
Dynamic Trend Visualization:
The indicator uses a color-coded column plot to represent the TMI values, providing an intuitive visual representation of trend strength and direction. The colors change based on specific conditions, offering instant insights into the current market state.
Adaptive Momentum Analysis:
The TMI adapts to changing market conditions by comparing current values to historical ones, allowing for a more nuanced understanding of momentum shifts.
Key Inputs and Their Significance:
TMI Source:
Allows users to select the price data for TMI calculations. The default is the closing price, but users can choose alternative sources for different analytical perspectives.
TMI Length:
Defines the lookback period for the TMI calculation. The default of 8 provides a balance between responsiveness and stability, but users can adjust this to suit their trading style.
Moving Average Type:
Users can select from various moving average types (SMA, EMA, SMMA, WMA, VWMA) for the base calculation, allowing for customization based on trading preferences.
What Makes It Unique:
Comprehensive Momentum Analysis:
The TMI combines elements of trend following and momentum, providing a more holistic view of market dynamics than traditional momentum indicators.
Multi-Faceted Trend Identification:
The color-coding system doesn't just show bullish or bearish trends, but also identifies accelerating and decelerating momentum in both directions.
Flexible Moving Average Integration:
The ability to choose different moving average types allows traders to fine-tune the indicator's responsiveness and smoothness.
Visual Clarity:
The column-style plot with color changes offers clear, at-a-glance insights into trend strength and direction.
Momentum Comparison Logic:
The indicator incorporates logic to compare current momentum changes with recent historical changes, providing context for the current market state.
The Momentum Trend indicator represents a sophisticated approach to momentum and trend analysis. By combining moving averages, price action, and comparative momentum logic, it offers traders a powerful tool for identifying potential trend continuations, reversals, and momentum shifts.
This indicator is particularly valuable for traders looking to:
- Identify the start of new trends
- Spot potential trend reversals
- Gauge the strength of ongoing trends
- Time entries and exits based on momentum shifts
TASC 2024.08 Volume Confirmation For A Trend System█ OVERVIEW
This script demonstrates the use of volume data to validate price movements based on the techniques Buff Pelz Dormeier discusses in his "Volume Confirmation For A Trend System" article from the August 2024 edition of TASC's Traders' Tips . It presents a trend-following system implementation that utilizes a combination of three indicators: the Average Directional Index (ADX), the Trend Thrust Indicator (TTI), and the Volume Price Confirmation Indicator (VPCI).
█ CONCEPTS
In his article, Buff Pelz Dormeier recounts his search for an optimal trend-following strategy enhanced with volume data, starting with a simple system combining the ADX , MACD , and OBV indicators. Even in these early tests, the author observed that the volume confirmation from OBV notably improved trading performance. Subsequently, the author replaced OBV with his VPCI, which considers the proportional weights of volume and price, to enhance the validation of trend momentum. Lastly, the author explored the inclusion of his TTI, a modified MACD that features volume-based enhancements, as a strategy component for improved trend-following performance.
According to the author's research, the ADX+TTI+VPCI system outperformed similar strategies he tested in the article, yielding significantly higher returns and enhanced perceived reliability. Because the system's design revolves around catching pronounced trends, it performs best with a portfolio of individual stocks. The author applies the system in the article by allocating 5% of the equity to long positions in S&P 500 components that meet the ADX+TTI+VPCI entry criteria (see the Calculations section below for details). He uses the proceeds from closing positions to enter new positions in other stocks meeting the screening criteria, holding any excess proceeds in cash.
█ CALCULATIONS
The TTI is similar to the MACD. Its calculation entails the following steps:
Calculate fast (short-term) and slow (long-term) volume-weighted moving averages (VWMAs).
Compute the volume multiple (VM) as the square of the ratio of the fast VWMA to the slow VWMA.
Adjust these averages by multiplying the fast VWMA by the VM and dividing the slow VWMA by the VM.
Calculate the difference between the adjusted VWMAs to determine the TTI value, and take the average of that series to determine the signal line value.
The VPCI utilizes differences and ratios between VWMAs and corresponding simple moving averages (SMAs) to provide an alternative volume-price confirmation tool. Its calculation is as follows:
Subtract the slow SMA from the VWMA of the same length to calculate the volume-price confirmation/contradiction (VPC) value.
Divide the fast VWMA by the corresponding fast SMA to determine the volume-price ratio (VPR).
Divide the short-term VWMA by the long-term VWMA to calculate the VM.
Compute the VPCI as the product of the VPC, VPR, and VM values.
The long entry criteria of the ADX+TTI+VPCI system are as follows:
The ADX is above 30.
The TTI crosses above its signal line.
The VPCI is above 0, confirming the trend.
Signals to close positions occur when the VPCI is below 0, indicating a contradiction .
NOTE: Unlike in the article, this script applies the ADX+TTI+VPCI system to one stock at a time , not a portfolio of S&P 500 constituents.
█ DISCLAIMER
This strategy script educates users on the trading system outlined by the TASC article. By default, it uses 10% of equity as the order size and a slippage amount of 5 ticks. Traders should adjust these settings and the commission amount when using this script.
Linear Regression Trend ChannelThe "Linear Regression Trend Channel" is a technical indicator designed to illustrate price trends and their volatility using linear regression. This indicator calculates the main linear regression line based on the user-defined period length and computes the standard deviation to form a trend channel.
Key Features:
- Linear Regression Calculation: Computes the linear regression line based on the selected price data source and the defined period length.
- Slope and Intercept Calculation: Calculates the slope and intercept of the linear regression line using the calcSlopeIntercept function.
- Deviation Channels: Adds standard deviation channels to the linear regression line to highlight potential support and resistance areas.
Settings
- Linear Regression Length: Specifies the length of the period for the linear regression calculation (default: 100).
- Linear Regression Source: Defines the data source for the linear regression calculation, such as close price, open price, etc. (default: close).
- Linear Regression Color: Sets the color of the linear regression line (default: gray).
- Show Price Labels: Option to display price labels on the horizontal lines (default: true).
How to Use
- Set the Linear Regression Length to define the period for regression calculation.
- Choose the Linear Regression Source to specify the price data (e.g., close, open).
- Enable or disable Show Price Labels based on whether you want to see price labels on the horizontal lines.
This Indicator helps identify dynamic support and resistance levels and potential market turning points.
Multi-Timeframe Trend TableThe "Multi-Timeframe Trend Table" indicator is a tool that consolidates a variety of critical trading metrics into a single, easy-to-read table format. This indicator is especially useful for traders who need to analyze multiple timeframes and indicators simultaneously to make informed trading decisions. By displaying a broad spectrum of data including trend information, rangebound status, volatility levels, VWAP (Volume Weighted Average Price), and specific candlestick patterns, the indicator provides a comprehensive overview of market conditions across different timeframes.
Functionality and Components
At its core, the indicator provides real-time insights into market trends by showing whether each timeframe is experiencing an upward, downward, or neutral trend based on simple moving averages. This is complemented by the "Rangebound" status, which indicates whether the price is trading within a defined range, giving insights into market consolidation periods. This can be critical for identifying breakouts or breakdowns from established ranges.
Volatility Measurement
Another key feature of the indicator is the "Volatility" column, which rates the market's volatility on a scale from 1 to 10. This feature uses the Average True Range (ATR) to assess how drastically prices are changing within a given timeframe, providing a numerical value that helps traders understand the intensity of price movements. High volatility levels (scores above 6) are highlighted, which can be crucial for strategies that prefer high volatility.
VWAP and Candlestick Patterns
The indicator also displays the VWAP, which is essential for traders who focus on volume as it shows the average price a security has traded at throughout the day, based on both volume and price. It is especially useful for traders looking to confirm trend directions or catch potential reversals. Additionally, the "Candle" column enhances the indicator's utility by identifying specific candlestick patterns like Doji, Hammer, Inverted Hammer, Bullish Engulfing, and Bearish Engulfing, which are pivotal for pinpointing momentum changes and potential entry or exit points.
Usage Strategy
Traders can utilize this indicator by setting up specific rules based on the information provided. For instance, a possible strategy could involve entering a trade when a Bullish Engulfing pattern appears in a low-volatility environment as indicated by a volatility score under 6, suggesting a potential uptrend start with limited downside risk. Similarly, a trader might consider exiting a position or taking a short position when a Bearish Engulfing pattern is identified during high volatility periods, signaling possible sharp price declines.
Adaptability and Customization
An added advantage is the indicator’s adaptability; traders can customize which columns to display based on their trading preferences and strategies. Whether focusing on trends, volatility, or candlestick patterns, users can configure the table to match their specific needs. This makes it a versatile tool suited for various trading styles and objectives, from day trading to swing trading.
Overall Utility
Overall, the "Multi-Timeframe Trend Table" indicator is an invaluable asset for traders who manage multiple instruments across different timeframes, offering a bird's-eye view of the markets in one concise table. It aids in quick decision-making by providing all necessary data points at a glance, reducing the need to switch between multiple charts and potentially missing critical market movements. By integrating trend analysis with volatility and candlestick patterns, it equips traders with a powerful synthesis of technical analysis tools to enhance their trading strategies and improve market timing.
