$TUBR: 7-25-99 Moving Average7, 25, and 99 Period Moving Averages
This indicator plots three moving averages: the 7-period, 25-period, and 99-period Simple Moving Averages (SMA). These moving averages are widely used to smooth out price action and help traders identify trends over different time frames. Let's break down the significance of these specific moving averages from both supply and demand perspectives and a price action perspective.
1. Supply and Demand Perspective:
- 7-period Moving Average (Short-Term) :
The 7-period moving average represents the short-term sentiment in the market. It captures the rapid fluctuations in price and is heavily influenced by recent supply and demand changes. Traders often look to the 7-period SMA for immediate price momentum, with price moving above or below this line signaling short-term strength or weakness.
- Bullish Supply/Demand : When price is above the 7-period SMA, it suggests that buyers are currently in control and demand is higher than supply. Conversely, price falling below this line indicates that supply is overpowering demand, leading to a short-term downtrend.
Is current price > average price in past 7 candles (depending on timeframe)? This will tell you how aggressive buyers are in short term.
- Key Supply/Demand Zones : The 7-period SMA often acts as dynamic support or resistance in a trending market, where traders might use it to enter or exit positions based on how price interacts with this level.
- 25-period Moving Average (Medium-Term) :
The 25-period SMA smooths out more of the noise compared to the 7-period, providing a more stable indication of intermediate trends. This moving average is often used to gauge the market's supply and demand balance over a broader timeframe than the short-term 7-period SMA.
- Supply/Demand Balance : The 25-period SMA reflects the medium-term equilibrium between supply and demand. A crossover between the price and the 25-period SMA may indicate a shift in this balance. When price sustains above the 25-period SMA, it shows that demand is strong enough to maintain an upward trend. Conversely, if the price stays below it, supply is likely exceeding demand.
Is current price > average price in past 25 candles (depending on timeframe)? This will tell you how aggressive buyers are in mid term.
- Momentum Shift : Crossovers between the 7-period and 25-period SMAs can indicate momentum shifts between short-term and medium-term demand. For example, if the 7-period crosses above the 25-period, it often signifies growing short-term demand relative to the medium-term trend, signaling potential buy opportunities. What this crossover means is that if 7MA > 25MA that means in past 7 candles average price is more than past 25 candles.
- 99-period Moving Average (Long-Term):
The 99-period SMA represents the long-term trend and reflects the market's supply and demand over an extended period. This moving average filters out short-term fluctuations and highlights the market's overall trajectory.
- Long-Term Supply/Demand Dynamics : The 99-period SMA is slower to react to changes in supply and demand, providing a more stable view of the market's overall trend. Price staying above this line shows sustained demand dominance, while price consistently staying below reflects ongoing supply pressure.
Is current price > average price in past 99 candles (depending on timeframe)? This will tell you how aggressive buyers are in long term.
- Market Trend Confirmation : When both the 7-period and 25-period SMAs are above the 99-period SMA, it signals a strong bullish trend with demand outweighing supply across all timeframes. If all three SMAs are below the 99-period SMA, it points to a bear market where supply is overpowering demand in both the short and long term.
2. Price Action Perspective :
- 7-period Moving Average (Short-Term Trends):
The 7-period moving average closely tracks price action, making it highly responsive to quick shifts in price. Traders often use it to confirm short-term reversals or continuations in price action. In an uptrend, price typically stays above the 7-period SMA, whereas in a downtrend, price stays below it.
- Short-Term Price Reversals : Crossovers between the price and the 7-period SMA often indicate short-term reversals. When price breaks above the 7-period SMA after staying below it, it suggests a potential bullish reversal. Conversely, a price breakdown below the 7-period SMA could signal a bearish reversal.
- 25-period Moving Average (Medium-Term Trends) :
The 25-period SMA helps identify the medium-term price action trend. It balances short-term volatility and longer-term stability, providing insight into the more persistent trend. Price pullbacks to the 25-period SMA during an uptrend can act as a buying opportunity for trend traders, while pullbacks during a downtrend may offer shorting opportunities.
- Pullback and Continuation: In trending markets, price often retraces to the 25-period SMA before continuing in the direction of the trend. For instance, if the price is in a bullish trend, traders may look for support at the 25-period SMA for potential continuation trades.
- 99-period Moving Average (Long-Term Trend and Market Sentiment ):
The 99-period SMA is the most critical for identifying the overall market trend. Price consistently trading above the 99-period SMA indicates long-term bullish momentum, while price staying below the 99-period SMA suggests bearish sentiment.
- Trend Confirmation : Price action above the 99-period SMA confirms long-term upward momentum, while price action below it confirms a downtrend. The space between the shorter moving averages (7 and 25) and the 99-period SMA gives a sense of the strength or weakness of the trend. Larger gaps between the 7 and 99 SMAs suggest strong bullish momentum, while close proximity indicates consolidation or potential reversals.
- Price Action in Trending Markets : Traders often use the 99-period SMA as a dynamic support/resistance level. In strong trends, price tends to stay on one side of the 99-period SMA for extended periods, with breaks above or below signaling major changes in market sentiment.
Why These Numbers Matter:
7-Period MA : The 7-period moving average is a popular choice among short-term traders who want to capture quick momentum changes. It helps visualize immediate market sentiment and is often used in conjunction with price action to time entries or exits.
- 25-Period MA: The 25-period MA is a key indicator for swing traders. It balances sensitivity and stability, providing a clearer picture of the intermediate trend. It helps traders stay in trades longer by filtering out short-term noise, while still being reactive enough to detect reversals.
- 99-Period MA : The 99-period moving average provides a broad view of the market's direction, filtering out much of the short- and medium-term noise. It is crucial for identifying long-term trends and assessing whether the market is bullish or bearish overall. It acts as a key reference point for longer-term trend followers, helping them stay with the broader market sentiment.
Conclusion:
From a supply and demand perspective, the 7, 25, and 99-period moving averages help traders visualize shifts in the balance between buyers and sellers over different time horizons. The price action interaction with these moving averages provides valuable insight into short-term momentum, intermediate trends, and long-term market sentiment. Using these three MAs together gives a more comprehensive understanding of market conditions, helping traders align their strategies with prevailing trends across various timeframes.
------------- RULE BASED SYSTEM ---------------
Overview of the Rule-Based System:
This system will use the following moving averages:
7-period MA: Represents short-term price action.
25-period MA: Represents medium-term price action.
99-period MA: Represents long-term price action.
1. Trend Identification Rules:
Bullish Trend:
The 7-period MA is above the 25-period MA, and the 25-period MA is above the 99-period MA.
This structure shows that short, medium, and long-term trends are aligned in an upward direction, indicating strong bullish momentum.
Bearish Trend:
The 7-period MA is below the 25-period MA, and the 25-period MA is below the 99-period MA.
This suggests that the market is in a downtrend, with bearish momentum dominating across timeframes.
Neutral/Consolidation:
The 7-period MA and 25-period MA are flat or crossing frequently with the 99-period MA, and they are close to each other.
This indicates a sideways or consolidating market where there’s no strong trend direction.
2. Entry Rules:
Bullish Entry (Buy Signals):
Primary Buy Signal:
The price crosses above the 7-period MA, AND the 7-period MA is above the 25-period MA, AND the 25-period MA is above the 99-period MA.
This indicates the start of a new upward trend, with alignment across the short, medium, and long-term trends.
Pullback Buy Signal (for trend continuation):
The price pulls back to the 25-period MA, and the 7-period MA remains above the 25-period MA.
This indica
tes that the pullback is a temporary correction in an uptrend, and buyers may re-enter the market as price approaches the 25-period MA.
You can further confirm the signal by waiting for price action (e.g., bullish candlestick patterns) at the 25-period MA level.
Breakout Buy Signal:
The price crosses above the 99-period MA, and the 7-period and 25-period MAs are also both above the 99-period MA.
This confirms a strong bullish breakout after consolidation or a long-term downtrend.
Bearish Entry (Sell Signals):
Primary Sell Signal:
The price crosses below the 7-period MA, AND the 7-period MA is below the 25-period MA, AND the 25-period MA is below the 99-period MA.
This indicates the start of a new downtrend with alignment across the short, medium, and long-term trends.
Pullback Sell Signal (for trend continuation):
The price pulls back to the 25-period MA, and the 7-period MA remains below the 25-period MA.
This indicates that the pullback is a temporary retracement in a downtrend, providing an opportunity to sell as price meets resistance at the 25-period MA.
Breakdown Sell Signal:
The price breaks below the 99-period MA, and the 7-period and 25-period MAs are also below the 99-period MA.
This confirms a strong bearish breakdown after consolidation or a long-term uptrend reversal.
3. Exit Rules:
Bullish Exit (for long positions):
Short-Term Exit:
The price closes below the 7-period MA, and the 7-period MA starts crossing below the 25-period MA.
This indicates weakening momentum in the uptrend, suggesting an exit from the long position.
Stop-Loss Trigger:
The price falls below the 99-period MA, signaling the breakdown of the long-term trend.
This can act as a final exit signal to minimize losses if the long-term uptrend is invalidated.
Bearish Exit (for short positions):
Short-Term Exit:
The price closes above the 7-period MA, and the 7-period MA starts crossing above the 25-period MA.
This indicates a potential weakening of the downtrend and signals an exit from the short position.
Stop-Loss Trigger:
The price breaks above the 99-period MA, invalidating the bearish trend.
This signals that the market may be reversing to the upside, and exiting short positions would be prudent.
Movingaveragecrossover
Supply and Demand Zones with Enhanced SignalsThis Pine Script indicator combines supply and demand zone analysis with dynamic buy/sell signals to enhance trading strategies. It provides a robust framework for identifying optimal trading opportunities and managing existing trades.
Key Features:
Supply and Demand Zones: The indicator identifies significant supply and demand zones based on recent price action. These zones are plotted as horizontal lines to help traders visualize potential reversal points.
Exponential Moving Average (EMA): A 21-period EMA is used to determine the prevailing trend and generate buy and sell signals.
Relative Strength Index (RSI): The 14-period RSI is utilized to filter buy and sell signals, providing additional context on overbought and oversold conditions.
Signal Generation:
Buy Signal: Triggered when the price crosses above the EMA and RSI indicates that the market is not overbought.
Sell Signal: Triggered when the price crosses below the EMA and RSI indicates that the market is not oversold.
Enhanced Exit Signals:
Exit Buy Signal: Generated if an opposite sell signal occurs or the higher timeframe RSI indicates overbought conditions.
Exit Sell Signal: Generated if an opposite buy signal occurs or the higher timeframe RSI indicates oversold conditions.
Trade Management:
Tracks active trades and provides exit signals based on the occurrence of opposite trading signals. This helps in managing positions more effectively and reducing potential losses.
Usage:
Supply and Demand Zones: Look for price action around these zones to identify potential trading opportunities.
EMA and RSI: Use buy and sell signals in conjunction with EMA and RSI to validate trading decisions.
Higher Timeframe RSI: Utilize this for additional confirmation and exit signals.
Plotting:
Supply Zone: Plotted as a red horizontal line.
Demand Zone: Plotted as a green horizontal line.
EMA: Plotted as a blue line.
Buy and Sell Signals: Indicated by green and red triangle shapes, respectively.
Exit Signals: Indicated by blue and orange X shapes.
This indicator is designed to help traders make informed decisions by combining technical analysis with strategic trade management.
Moving Average Cross Probability [AlgoAlpha]Moving Average Cross Probability 📈✨
The Moving Average Cross Probability by AlgoAlpha calculates the probability of a cross-over or cross-under between the fast and slow values of a user defined Moving Average type before it happens, allowing users to benefit by front running the market.
✨ Key Features:
📊 Probability Histogram: Displays the Probability of MA cross in the form of a histogram.
🔄 Data Table: Displays forecast information for quick analysis.
🎨 Customizable MAs: Choose from various moving averages and customize their length.
🚀 How to Use:
🛠 Add Indicator: Add the indicator to favorites, and customize the settings to suite your trading style.
📊 Analyze Market: Watch the indicator to look for trend shifts early or for trend continuations.
🔔 Set Alerts: Get notified of bullish/bearish points.
✨ How It Works:
The Moving Average Cross Probability Indicator by AlgoAlpha determines the probability by looking at a probable range of values that the price can take in the next bar and finds out what percentage of those possibilities result in the user defined moving average crossing each other. This is done by first using the HMA to predict what the next price value will be, a standard deviation based range is then calculated. The range is divided by the user defined resolution and is split into multiple levels, each of these levels represent a possible value for price in the next bar. These possible predicted values are used to calculate the possible MA values for both the fast and slow MAs that may occur in the next bar and are then compared to see how many of those possible MA results end up crossing each other.
Stay ahead of the market with the Moving Average Cross Probability Indicator AlgoAlpha! 📈💡
Moving average to price cloudHi all!
This indicator shows when the price crosses the defined moving average. It plots a green or red cloud (depending on trend) and the moving average. It also plots an arrow when the trend changes (this can be disabled in 'style'->'labels' in the settings).
The moving average itself can be used as dynamic support/resistance. The trend will change based on your settings (described below). By default the trend will change when the whole bar is above/below the moving average for 2 bars (that's closed). This can be changed by "Source" and "Bars".
Settings
• Length (choose the length of the moving average. Defaults to 21)
• Type (choose what type of moving average).
- "SMA" (Simple Moving Average)
- "EMA" (Exponential Moving Average)
- "HMA" (Hull Moving Average)
- "WMA" (Weighted Moving Average)
- "VWMA" (Volume Weighted Moving Average)
- "DEMA" (Double Exponential Moving Average)
Defaults to"EMA".
• Source (Define the price source that must be above/below the moving average for the trend to change. Defaults to 'High/low (passive)')
- 'Open' The open of the bar has to cross the moving average
- 'Close' The close of the bar has to cross the moving average
- 'High/low (passive)' In a down trend: the low of the bar has to cross the moving average
- 'High/low (aggressive)' In a down trend: the high of the bar has to cross the moving average
• Source bar must be close. Defaults to 'true'.
• Bars (Define the number bars whose value (defined in 'Source') must be above/below the moving average. All the bars (defined by this number) must be above/below the moving average for the trend to change. Defaults to 2.)
Let me know if you have any questions.
Best of trading luck!
Triple EMA + QQE Trend Following Strategy [TradeDots]The "Triple EMA + QQE Trend Following Strategy" harnesses the power of two sophisticated technical indicators, the Triple Exponential Moving Average (TEMA) and the Qualitative Quantitative Estimation (QQE), to generate precise buy and sell signals. This strategy excels in capturing shifts in trends by identifying short-term price momentum and dynamic overbought or oversold conditions.
HOW IT WORKS
This strategy integrates two pivotal indicators:
Triple Exponential Moving Average (TEMA): TEMA enhances traditional moving averages by reducing lag and smoothing the data more effectively. It achieves this by applying the EMA formula three times onto the price, as follows:
tema(src, length) =>
ema1 = ta.ema(src, length)
ema2 = ta.ema(ema1, length)
ema3 = ta.ema(ema2, length)
tema = 3*ema1 - 3*ema2 + ema3
This computation helps to sharpen the sensitivity to price movements.
Qualitative Quantitative Estimation (QQE): The QQE indicator improves upon the standard RSI by incorporating a smoothing mechanism. It starts with the standard RSI, overlays a 5-period EMA on this RSI, and then enhances the result using a double application of a 27-period EMA. A slow trailing line is then derived by multiplying the result with a factor number. This approach establishes a more refined and less jittery trend-following signal, complementing the TEMA to enhance overall market timing during fluctuating conditions.
APPLICATION
Referenced from insights on "Trading Tact," the strategy implementation follows:
First of all, we utilize two TEMA lines: one set at a 20-period and the other at a 40-period. Then following the rules below:
40-period TEMA is rising
20-period TEMA is above 40-period TEMA
Price closes above 20-period TEMA
Today is not Monday
RSI MA crosses the Slow trailing line
This strategy does not employ an active take profit mechanism; instead, it utilizes a trailing stop loss to allow the price to reach the stop loss naturally, thereby maximizing potential profit margins.
DEFAULT SETUP
Commission: 0.01%
Initial Capital: $10,000
Equity per Trade: 80%
Users are advised to adjust and personalize this trading strategy to better match their individual trading preferences and style.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Reference:
Trading Tact. What Is the QQE Indicator? Retrieved from: tradingtact.com
Total Cross CalculatorThe Indicator calculates the total number of the death and golden crosses in the total chart which can help the moving average user to compare the number of signals generated by the moving average pair in the given timeframe.
If Indicator is not plotting anything then right click on the indicator's scale and click on "Auto(data fits the screen)" option.
Please visit it's previous version if you want to use the indicator on the moving averages created by yourself. Link is here
MA Cross HeatmapThe Moving Average Cross Heatmap Created by Technicator , visualizes the crossing distances between multiple moving averages using a heat map style color coding.
The main purpose of this visualization is to help identify potential trend changes or trading opportunities by looking at where the moving averages cross over each other.
Key Features:
Can plot up to 9 different moving average with their cross lengths you set
Uses a heat map to show crossing distances between the MAs
Adjustable settings like crossing length percentage, color scheme, color ceiling etc.
Overlay style separates the heat map from the price chart
This is a unique way to combine multiple MA analysis with a visual heat map representation on one indicator. The code allows you to fine-tune the parameters to suit your trading style and preferences. Worth checking out if you trade using multiple moving average crossovers as part of your strategy.
Moving Average Crossover MonitorMoving Average Crossover Monitor: Gain Insight into Market Trends
The Moving Average Crossover Monitor is a specialized tool crafted for traders seeking to understand and predict market trends more effectively. This indicator's primary focus lies in analyzing consecutive candle movements above or below specified moving averages and providing predictive estimates based on historical data.
Key Features:
1. Consecutive Candle Tracking: The indicator meticulously counts and tracks the number of consecutive candles that close above or below a selected moving average (MA1). This tracking offers a tangible measure of trend persistence over time.
2. Historical Analysis for Future Prediction: By analyzing past trends, the indicator provides insights into potential future movements. It estimates the likelihood of upcoming candles continuing above or below the moving average based on historical patterns.
3. Dynamic Visualization: Moving averages (SMA, WMA, EMA) are dynamically plotted on the chart, clearly displaying crossover points and trend transitions.
How It Works:
1. Moving Average Calculation: Select your preferred moving average type (SMA, WMA, EMA) and define short and long periods. The indicator computes two moving averages (MA1 and MA2) based on these parameters.
2. Consecutive Candle Analysis:
- Above MA1: Tracks and counts consecutive candles closing above MA1, indicating potential bullish momentum.
- Below MA1: Tracks and counts consecutive candles closing below MA1, suggesting potential bearish sentiment.
3. Future Trend Prediction: Based on historical data of consecutive candle movements, the indicator estimates the likelihood of the next candle continuing in the same direction (above or below MA1).
Advantages for Traders:
1. Quantitative Insights: Use numerical data on consecutive candles to gauge trend strength and durability.
2. Predictive Analytics: Leverage historical patterns to anticipate future market movements and adjust trading strategies accordingly.
3. Decision Support Tool: Gain clarity on trend transitions, empowering timely and informed trading decisions.
Disclaimer:
This indicator is provided for educational purposes only and should not be considered as financial advice. Trading involves risks, and past performance is not indicative of future results. Traders should conduct their own analysis and exercise caution when making trading decisions based on any indicator or tool. Always consider risk management strategies and consult with a qualified financial advisor if needed.
Volatility Adjusted Weighted DEMA [BackQuant]Volatility Adjusted Weighted DEMA
The Volatility Adjusted Weighted Double Exponential Moving Average (VAWDEMA) by BackQuant is a sophisticated technical analysis tool designed for traders seeking to integrate volatility into their moving average calculations. This innovative indicator adjusts the weighting of the Double Exponential Moving Average (DEMA) according to recent volatility levels, offering a more dynamic and responsive measure of market trends.
Primarily, the single Moving average is very noisy, but can be used in the context of strategy development, where as the crossover, is best used in the context of defining a trading zone/ macro uptrend on higher timeframes.
Why Volatility Adjustment is Beneficial
Volatility is a fundamental aspect of financial markets, reflecting the intensity of price changes. A volatility adjustment in moving averages is beneficial because it allows the indicator to adapt more quickly during periods of high volatility, providing signals that are more aligned with the current market conditions. This makes the VAWDEMA a versatile tool for identifying trend strength and potential reversal points in more volatile markets.
Understanding DEMA and Its Advantages
DEMA is an indicator that aims to reduce the lag associated with traditional moving averages by applying a double smoothing process. The primary benefit of DEMA is its sensitivity and quicker response to price changes, making it an excellent tool for trend following and momentum trading. Incorporating DEMA into your analysis can help capture trends earlier than with simple moving averages.
The Power of Combining Volatility Adjustment with DEMA
By adjusting the weight of the DEMA based on volatility, the VAWDEMA becomes a powerful hybrid indicator. This combination leverages the quick responsiveness of DEMA while dynamically adjusting its sensitivity based on current market volatility. This results in a moving average that is both swift and adaptive, capable of providing more relevant signals for entering and exiting trades.
Core Logic Behind VAWDEMA
The core logic of the VAWDEMA involves calculating the DEMA for a specified period and then adjusting its weighting based on a volatility measure, such as the average true range (ATR) or standard deviation of price changes. This results in a weighted DEMA that reflects both the direction and the volatility of the market, offering insights into potential trend continuations or reversals.
Utilizing the Crossover in a Trading System
The VAWDEMA crossover occurs when two VAWDEMAs of different lengths cross, signaling potential bullish or bearish market conditions. In a trading system, a crossover can be used as a trigger for entry or exit points:
Bullish Signal: When a shorter-period VAWDEMA crosses above a longer-period VAWDEMA, it may indicate an uptrend, suggesting a potential entry point for a long position.
Bearish Signal: Conversely, when a shorter-period VAWDEMA crosses below a longer-period VAWDEMA, it might signal a downtrend, indicating a possible exit point or a short entry.
Incorporating VAWDEMA crossovers into a trading strategy can enhance decision-making by providing timely and adaptive signals that account for both trend direction and market volatility. Traders should combine these signals with other forms of analysis and risk management techniques to develop a well-rounded trading strategy.
Alert Conditions For Trading
alertcondition(vwdema>vwdema , title="VWDEMA Long", message="VWDEMA Long - {{ticker}} - {{interval}}")
alertcondition(vwdema<vwdema , title="VWDEMA Short", message="VWDEMA Short - {{ticker}} - {{interval}}")
alertcondition(ta.crossover(crossover, 0), title="VWDEMA Crossover Long", message="VWDEMA Crossover Long - {{ticker}} - {{interval}}")
alertcondition(ta.crossunder(crossover, 0), title="VWDEMA Crossover Short", message="VWDEMA Crossover Short - {{ticker}} - {{interval}}")
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Crossover EMMMCrossover EMMM is an indicator that displays the Madrid Moving Averages (EMMM) and detects crossovers (upward crossings) and crossunders (downward crossings) between two moving averages. It uses two input parameters to define the fast and slow EMMM lengths. The script calculates the EMMM values, their changes, and assigns colors based on the change direction. The fast EMMM is plotted in green or red, and the slow EMMM is plotted in blue or red, depending on the change direction. The script also displays triangle shapes below or above the bars to indicate crossovers and crossunders.
The "Madrid Moving Average" (EMMMM) is a type of moving average used in technical analysis to smooth price fluctuations of financial assets, such as stocks or currency pairs. Unlike the Simple Moving Average (SMA), which treats all data equally, the EMMM gives more weight to recent data. This results in the EMMM responding more swiftly to price changes, making it well-suited for identifying short-term trends.
K's Reversal Indicator IIK’s Reversal Indicator II uses a moving average timing technique to deliver its signals. The method of calculation is as follows:
* Calculate a moving average (by default, a 13-period moving average).
* Calculate the number of times where the market is above its moving average. Whenever that number hits 21, a bearish signal is generated, and whenever that number if zero, a bullish signal is generated.
The indicator signals short-term to mid-term reversals as a mean-reversion move.
Moving Average Cross trade PLAbstract
This script evaluates the potential trading proceeding and loss of the moving average cross strategy and plot it as a chart.
We can use it as a reference to whether we follow the original trading signals or not.
Introduction
Moving average cross is a popular trading strategy.
The strategy suggests traders buy when the short term moving average is above the long term moving average and sell when the short term moving average is below the long term moving average.
However, just like the most technical indicators, the signals are not always accurate.
This problem causes traders don't have sufficient confidence to trade with these signals.
On the other hand, the natural risk management suggests us only invest after major risks are past.
Therefore, we wait until many counterexamples of trading signals are past.
What will happen if we imagine that following a specific trading signal is a fund?
We can evaluate the potential trading proceeding and loss and plot it as a chart.
And then, we can measure how much loss may encounter in many worst cases and regard it as a reference to whether we follow the original trading signals or not.
How it works
1. Determine the instruments and time frames we are interested in.
2. Determine the long term moving average and the short term moving average.
3. The strategy suggests traders buy when the short term moving average is above the long term moving average and sell when the short term moving average is below the long term moving average.
4. The potential trading proceeding and loss is plotted as a chart.
5. There are two colors in the chart. One is when the short term moving average is above the long term moving average and the other is when the short term moving average is below the long term moving average.
6. We can observe the local maximum and the local minimum or apply other indicators we are interested in on the numbers it provides.
Parameters
x_type1 = How to compute the short term moving average. The option diff means the price several days ago.
x_src1 = How to summarize the price of a trading day. It depends on the open, high, low or close prices.
x_ma1 = How many days included in the short term moving average. When it is 1, the signal becomes when the price is above or below a single moving average.
x_type2 = How to compute the long term moving average
x_src2 = How to summarize the price of a trading day. It depends on the open, high, low or close prices.
x_ma2 = How many days included in the long term moving average
Conclusion
This indicator can quantize the potential trading proceeding and loss and can imply when following the original trading signals is good or not.
Combining the instruments which are long term investible and use this indicator to avoid potential risks, we can make proceeding better than holding the major stock markets.
Moving Average Continuity [QuantVue]"Moving Average Continuity," is designed to compare the position of two Moving Averages (MAs) across multiple timeframes.
The user can select three timeframes and determine the length and type of both a fast and slow moving average.
The indicator will display a small table in a user selected location.
This table helps traders quickly determine if, for their selected timeframes, the faster moving average is trending above or below the slower moving average.
The “Moving Average Continuity” indicator can also send you three types of alerts;
1. All moving averages are aligned bullish
2. All moving averages are aligned bearish
3. Moving averages are mixed
Key Features:
1. Timeframes: The user can select up to three distinct timeframes to compare the moving averages.
2. Moving Average Inputs: For each MA, users can determine:
• Length of the MA
• Type of the MA - Options include EMA (Exponential Moving Average), SMA (Simple Moving Average), HMA (Hull Moving Average), WMA (Weighted Moving Average), and VWMA (Volume Weighted Moving Average).
3. Positioning: Users have the ability to adjust the table's positioning (top, middle, or bottom) and horizontal alignment (right, center, or left) on the chart overlay.
4. Runtime Error Prevention: The indicator will throw an error if the chart's timeframe exceeds the maximum selected timeframe, ensuring that comparisons are done correctly.
Give this indicator a BOOST and COMMENT your thoughts!
We hope you enjoy.
Cheers.
Ahsan Tufail Precise MA Crossover Filter for Reliable SignalsIntroduction:
In the ever-evolving world of Forex trading, strategies that provide a competitive edge are highly sought after. The Moving Average (MA) crossover technique is a popular long-term approach, but its vulnerability to false signals can lead to potential losses. To overcome this challenge, we introduce a game-changing MA crossover filter designed to weed out false signals and unlock the full potential of this strategy. In this article, we delve into the mechanics of this filter, providing a comprehensive analysis of its components and how it enhances the accuracy of buy and sell signals.
The Power of the MA Crossover Filter:
The essence of our MA crossover filter lies in the integration of a specialized indicator that operates on a scale of 0 to 100. This ingenious indicator dynamically measures the distance between the middle Bollinger band and either the upper or lower Bollinger band. By analyzing the values of the last 504 candlesticks, it maps the range from 50 to 100 for the largest and smallest distances between the middle and upper Bollinger bands. Similarly, for values ranging from 0 to 50, it measures the distance between the middle and lower Bollinger bands.
Unveiling the Signal Execution Process:
The brilliance of this filter is revealed in its meticulous execution of buy and sell signals, which significantly reduces false crossovers. Let's explore the process step-by-step:
Buy Signal Precision:
To initiate a buy signal, the price must be positioned above the 200-period Simple Moving Average (SMA).
The filter validates the crossover by checking the indicator's value, ensuring it falls below the threshold of 25.
Sell Signal Accuracy:
For a sell signal, the price must be below the 200-period Simple Moving Average (SMA).
The filter confirms the crossover by verifying the indicator's value, which should exceed the threshold of 75.
This selective approach ensures that only high-confidence crossovers are considered, maximizing the potential for profitable trades.
Fine-Tuning the Filter for Optimal Performance:
While the MA crossover filter exhibits its prowess in GBPUSD and EURUSD currency pairs, it may require adjustments for other pairs. Currency pairs possess unique characteristics, and adapting the filter to specific behavior is crucial for its success.
To fine-tune the filter for alternative currency pairs, traders should conduct rigorous backtesting and analyze historical price data. By experimenting with indicator threshold values, traders can calibrate the filter to accurately match the dynamics of the target currency pair. This iterative process allows for customization, ultimately resulting in a finely-tuned filter that aligns with the unique behavior of the selected market.
Conclusion:
The MA crossover filter represents a paradigm shift in long-term Forex trading strategies. By intelligently filtering false signals, this precision tool unleashes the true potential of the MA crossover technique, elevating its profitability and enhancing overall trading performance. While no strategy guarantees absolute success, incorporating this filter empowers traders with a heightened level of confidence in their buy and sell signals. Embracing the power of this innovative filter can be a transformative step towards mastering Forex profits and staying ahead in the dynamic world of currency trading.
Buy Only Strategy with Dynamic Re-Entry and ExitThe strategy aims to create a simple buy-only trading system based on moving average crossovers and the Weekly Commodity Channel Index (CCI) or Weekly Average Directional Index (ADX). It generates buy signals when the fast-moving average crosses above the slow-moving average and when the Weekly CCI and or Weekly ADX meet the specified conditions.
The strategy also allows for dynamic re-entry, which means it can open new long positions if the price goes above the three moving averages after an exit. However, the strategy will exit the long position if the price closes below the third moving average.
ENTRY CONDITIONS
The script defines the conditions for generating buy signals. It checks for two conditions for a valid buy signal:
• If the fast-moving average crosses above the slow-moving average -THERE IS Dynamic Re-Entry also
• If the user chooses HE OR SHE CAN FILTER TRADES BY USING CCI OR ADX
Dynamic Re-Entry:
the script allows for dynamic re-entry. If there is no active long position and the price is above all three moving averages a new long position is opened.
Exit Conditions
The script defines the exit condition for closing a long position. If the price closes below the third moving average, the script closes the long position.
IMPORTANT NOTICE
ONLY DAILY TIME FRAME
THERE WOULD BE WHIPSAW USE YOUR OWN ACCUMEN TO MINIMISE THEM
ITS ONLY BUY STRATEGY
EXIT CAN BE STRATEGY BASED OR SET PROFIT AND TARGETS AS PER RISK APETITE /RISK MANAGEMENT
DONT TRADE OPTIONS ON THIS
SUITABLE FOR STOCKS OF USA AND INDIAN MARKETS
ALWAYS REMEMBER TO DO YOUR OWN RESEARCH BEFORE TRADING AND INVESTING
Sessioned EMA - Frozen EMA in post market hoursWhy I develop this indicator?
In future indices, post market data with little volume distort the moving average seriously. This indicator is to eliminate the distortion of data during low volume post market hours.
How to use?
There is a time session setting in the indicator, you can set the cash hour time, moving average outside the session will be frozen.
What this indicator gives you
This indicator give you a more make sense ema pattern, the ema lines are more respected by the prices when you set the session properly.
Setup
1. Session setting
In US indices, such as NQ, ES etc, when there was data release at 0830 hr, huge volume transaction order appears, that makes the 0830 price data important that should be included in your ema trend line calculating. If that is the case, I will set the session begin from 0830, otherwise, I start the session at 0930. Golden rule : Price with huge volume counts.
2. Time zone
The coding is decided for GMT+8 time zone, you may amend the code to fit your timezone.
twisted SMA strategy [4h] Hello
I would like to introduce a very simple strategy that uses a combination of 3 simple moving averages ( SMA 4 , SMA 9 , SMA 18 )
this is a classic combination showing the most probable trend directions
Crosses were marked on the basis of the color of the candles (bulish cross - blue / bearish cross - maroon)
ma 100 was used to determine the main trend, which is one of the most popular 4-hour candles
We define main trend while price crosses SMA100 ( for bullish trend I use green candle color )
The long position strategy was created in combination of 3 moving averages with Kaufman's adaptive moving average by alexgrover
The strategy is very accurate and is easy to use indicators
the strategy uses only Buy (Long) signals in a combination of crossovers of the SMA 4, SMA 9, SMA 18 and the Kaufman Adaptive Moving Average.
As a signal to close a long position, only the opposite signal of the intersection of 3 different moving averages is used
the current strategy is recommended for higher time zones (4h +) due to the strength of the closing candles, which translates into signal strength
works fascinatingly well for long-term bullish market assets (for example 4h Apple, Tesla charts)
Enjoy and trade safe ;)
Banana RSIBanana RSI is not just ap-PEAL-ing to the eyes!
This simple little indicator provides a New Approach to determining Overbought and Oversold levels, as well as taking advantage of a non-typical smoothing method for this type of indicator.
Banana RSI uses a Cumulative High and Low Average to draw the upper, lower, and midline.
The High and Low Averages use the data only from above or below the Cumulative Average to calculate their respective line.
In simpler terms:
The High average is an average of every value ABOVE the full average.
The Low average is an average of every value BELOW the full average.
This creates an automated method to determine overbought and oversold territory based on the charts historical movement.
Since every chart can be different, these levels change with the chart.
Banana RSI also uses a linear regression smoothing method , by taking advantage of the built-in Least Squares Moving Average, we are able to view a better reacting/less-lagging moving average.
Included are 2 Length-Adjustable LSMA lines to use however needed.
Using the Regression Lines along with the High & Low Averages provides a new view on the classic RSI indicator.
Enjoy!
Moving Average CandlesInspired by Ricardo Santos's " Multiple Moving Average Candle System V0" ()
This script plots 6 moving averages using the plotcandle function rather than the normal plot function. Result is a stylish indicator that shows moving average crossovers in a more visual way. Moving average type options available are , or Simple, Exponential, Hull, Relative, Volume Weighted, and Arnaud Legoux Moving Averages, Linear Regression Curve, and Median. Lengths for each can be set in settings along with selection specific parameters. Good for plotting/visualizing potential entry/exit points based on your preferred moving averages crossing over, or just as some eye candy.
Plot background depending on Index EMA 10 and EMA 20This indicator gives the user an easy way to check the conditions of the market.
Up market should be good for breakout traders.
Down market should be good for breakdown shortsellers
The others should be good for pullback buyers.
This script automaticlly check which index should be used for the depending on which ticker is view. If no match is found indicator will use IXIC as reference.
The script works for Nordic and US stocks.
"OMXSPI"
"OBX"
"OMXSPI"
"OMXHPI"
"OMXCPI"
"IXIC"
It then alculated the EMA10 and EMA20 for the index and plots the background depending on 6 differnet conditions.
EMA10 below EMA20 and EMA10 and EMA20 is sloping down. //Down market
EMA10 above EMA20 and EMA10 and EMA20 is sloping up. //Up market
EMA10 below EMA20 and EMA10 sloping up and EMA20 is sloping down. //First indication by market to move up
EMA10 above EMA20 and EMA10 sloping down and EMA20 is sloping up. //First indication by market to move down
EMA10 below EMA20 and EMA10 sloping up and EMA20 is sloping up. //Possible MA cross over
EMA10 below EMA20 and EMA10 sloping down and EMA20 is sloping down. //Possible MA cross over
MTF MAs and Crosses Nexus [DarkWaveAlgo]🧾 Description:
A nexus is a connection, link, or neuronal junction where signals and information are transmitted between different elements.
The MTF MAs and Crosses Nexus indicator serves as a nexus between MTF Moving Averages by facilitating the visualization and interaction of up to eight multi-timeframe moving averages, each with its own customizable timeframe, period, cross-over and cross-under alerts and plot markers, moving average calculation type, and price source.
It acts as a utility/control center that brings together multiple MTF moving averages (MTF MAs) and allows you to visualize the interactions between them with exceptional ease-of-use and customizability, helping to provide you with valuable insights into potential trend reversals, momentum shifts, and trading opportunities.
💡 Originality and Usefulness:
While there are other multi-timeframe moving average indicators available, MTF MAs and Crosses Nexus' customizable alert and signal settings offer intra-indicator MTF moving average cross markers and alerts not seen in other MTF MA indicators, allowing you to visualize the cross-over and cross-under relationships between the indicator's MAs with an 'all-in-one' experience. We also believe it stands above the rest with its sheer quantity and quality of settings, features, and usability.
✔️ Re-Published to Avoid Misleading Values
This script has been re-published to ensure that it does not use `request.security()` calls using lookahead_on to access future data when referencing moving averages from other timeframes. This decreases the likelihood that the indicator will provide deceiving values. This change has been made in accordance with the PineScript documentation: "Using barmerge.lookahead_on at timeframes higher than the chart's without offsetting the `expression` argument like in `close ` will introduce future leak in scripts, as the function will then return the `close` price before it is actually known in the current context" and the Publishing Rule: "Do not use `request.security()` calls using lookahead to access future data".
💠 Features:
8 toggleable MTF Moving Averages with customizable timeframes, periods, moving average calculation types, and price sources
Customizable cross-over and cross-under alert and chart signal options for each MTF MA (toggleable cross alerts and signals for crosses between intra-indicator MAs and bar price values)
Aesthetic and flexible coloring and color theme styling options
End-of chart labels and options for ease-of-use and legibility
⚙️ Settings:
Use a Color Theme: When this setting is enabled, all manual 'Bullish and Bearish Colors' are overridden. All plots will use the colors from your selected Color Theme - excepting those plots set to use the 'Single Color' coloring method.
Color Theme: When 'Use a Color Theme' is enabled, this setting allows you to select the color theme you wish to use.
Hide MAs on Timeframes Lower Than the Chart: When this setting is enabled, any MTF MA with a timeframe smaller than that of the chart the indicator is applied to will be hidden from view.
Enable: Show/hide a specific MTF MA.
Timeframe: Set the timeframe for a specific MTF MA.
Period: Set the lookback period for a specific MTF MA.
Type: Set the calculation type for a specific MTF MA. Options include: Exponential, Simple, Weighted, Volume-Weighted, and Hull.
Source Price: Set the source value used for a specific MTF MA's calculation.
Enable Cross Over Signals & Alerts: When enabled, cross-over chart signals (markers) and alerts are enabled for when this specific MTF MA crosses above its respective 'Cross Over Cross Source'.
Enable Cross Under Signals & Alerts: When enabled, cross-under chart signals (markers) and alerts are enabled for when this specific MTF MA crosses below its respective 'Cross Under Cross Source'.
Cross Source: Set the target plot which this specific MTF MA must cross (for either a cross-over or cross-under event) to trigger a chart signal and alert.
Marker Position: Set the position where this specific MTF MA's cross chart signal should appear. Options include: Above Bar, Below Bar, and On MA Line.
Coloring Method: Set the coloring method for this specific MA. The coloring method defines how the MA should be dynamically colored. Options include: Single Color, Increasing/Decreasing, and Over/Under Price.
Bullish Color: When 'Use a Color Theme' is disabled, this will set the 'bullish color' for this specific MTF MA.
Bearish Color: When 'Use a Color Theme' is disabled, this will set the 'bearish color' for this specific MTF MA.
Single Color: When the 'Coloring Method' is set to Single Color for this specific MA, this color option will set the MA's color.
Enable Label: When enabled, a label will show at the end of the chart displaying the timeframe, period, MA type, and current price value of this specific MTF MA.
Size: Sets the font size of this specific MTF MA's label.
Label Offset (in Bars): Sets the distance from the latest bar, in bars, at which this specific MTF MA's label is displayed.
Show Label Line: When enabled, this specific MTF MA's label will be accommodated by a dashed line connecting it to its plot.
📈 Chart:
The chart shown in this original publication displays the 15 minute chart on BTCUSDT. Displayed on the chart are 4 MTF MAs: the 15m 20 WMA, 30m 100 EMA, 1h 11 EMA, and 1D 7 VWMA - offering an exemplary view of how you can use these MTF MAs and crosses to your advantage in gauging trend relationships across multiple timeframes.
Super Secret 200 EMAThe indicator is called "Super Secret 200 EMA." It combines two technical indicators, the Supertrend and the 200 Exponential Moving Average (EMA), to generate buy and sell opportunities in a trading chart.
Here's how the indicator works and how you can use it:
Supertrend Calculation:
The Supertrend indicator helps identify the current trend in the market. It uses two parameters: Length and Multiplier.
Length: This parameter determines the number of periods used for the calculation.
Multiplier: It controls the width of the Supertrend line, indicating the level of volatility considered in the calculation.
The Supertrend is calculated by looping through the historical data from length to 1.
For each period, it checks whether the closing price has increased or decreased compared to the previous period.
If the closing price has increased, it updates the highestHigh value with the maximum of the current highest high and the high of the current period.
If the closing price has decreased, it updates the lowestLow value with the minimum of the current lowest low and the low of the current period.
Finally, it calculates the Supertrend value using the following formula:
If the change in the closing price is positive: Supertrend = lowestLow + (multiplier * Average True Range (ATR))
If the change in the closing price is negative: Supertrend = highestHigh - (multiplier * ATR)
The Supertrend line will be green if it is above the 200 EMA line and red if it is below.
200 EMA Calculation:
The 200 EMA is a widely used moving average indicator that gives more weight to recent prices.
The EMA period is set to 200 in this case.
The 200 EMA is calculated using the EMA formula, taking into account the closing prices over the specified period.
Plotting:
The Supertrend and 200 EMA lines are plotted on the chart using the plot function.
The Supertrend line is colored green if it is above the 200 EMA line and red if it is below.
The 200 EMA line is colored green if the closing price is above it and red if it is below.
Buy and Sell Conditions:
The indicator determines the buy and sell conditions based on the crossover and crossunder of the closing price with the 200 EMA line and the Supertrend line.
Buy Condition: A buy signal is generated when the closing price crosses above the 200 EMA line and is also above the Supertrend line.
Sell Condition: A sell signal is generated when the closing price crosses below the 200 EMA line and is also below the Supertrend line.
Plotting Buy and Sell Signals:
You can use this indicator to identify potential buy and sell opportunities in your trading strategy. However, please note that this is a simplified explanation, and it's essential to thoroughly understand the indicator's principles and backtest it with historical data before relying on it for actual trading decisions.
Use this with other confluences for best results and never rely on a single indicator
Moving Average Reversals [QuantVue]Moving Average Reversals
Description:
The Moving Average Reversals indicator gives a quick visual representation of when a stock gets extended up or down from a user selected moving average.
The color of the histogram dynamically changes as price becomes extended or within it’s normal trading range.
The indicator also highlights the largest extensions over the past year or 252 bars if using intraday.
Lastly a simple moving average of the extensions is calculated and used to confirm a change of character.
Settings:
🔹Use different MA types - EMA, SMA, HMA, WMA, VWMA
🔹Adjustable MA length
🔹Change distance measurement source - open, close, high, low, hl2, hlc3, ohlc4, hlcc4
🔹Extension highlighting
🔹Toggle MA extensions
Don't hesitate to reach out with any questions or concerns. We hope you enjoy!
Cheers.
