Faytterro Market Structerethis indicator creates the market structure with a little delay but perfectly. each zigzag is always drawn from highest to lowest. It also signals when the market structure is broken. signals fade over time.
The table above shows the percentage distance of the price from the last high and the last low.
zigzags are painted green when making higher peaks, while lower peaks are considered downtrends and are painted red. In fact, the indicator is quite simple to understand and use.
"length" is used to change the frequency of the signal.
"go to past" is used to see historical data.
Please review the examples:
"trendline"に関するスクリプトを検索
Broadening Formations [TFO]This indicator highlights deviations from broadening formations (or megaphone patterns). Deviations from broadening ranges can often foreshadow reversals, especially in consolidation phases. These deviations are highlighted via trendlines that change color when tested, and also have the option to be alerted.
These broadening formations are heavily used with "The Strat" and can add confluence when looking for reversals within higher timeframe points of interest.
Trend Line Adam Moradi v1 (Tutorial Content)
The Pine Script strategy that plots pivot points and trend lines on a chart. The strategy allows the user to specify the period for calculating pivot points and the number of pivot points to be used for generating trend lines. The user can also specify different colors for the up and down trend lines.
The script starts by defining the input parameters for the strategy and then calculates the pivot high and pivot low values using the pivothigh() and pivotlow() functions. It then stores the pivot points in two arrays called trend_top_values and trend_bottom_values. The script also has two arrays called trend_top_position and trend_bottom_position which store the positions of the pivot points.
The script then defines a function called add_to_array() which takes in three arguments: apointer1, apointer2, and val. This function adds val to the beginning of the array pointed to by apointer1, and adds bar_index to the beginning of the array pointed to by apointer2. It then removes the last element from both arrays.
The script then checks if a pivot high or pivot low value has been calculated, and if so, it adds the value and its position to the appropriate arrays using the add_to_array() function.
Next, the script defines two arrays called bottom_lines and top_lines which will be used to store trend lines. It also defines a variable called starttime which is set to the current time.
The script then enters a loop to calculate and plot the trend lines. It first deletes any existing trend lines from the chart. It then enters two nested loops which iterate over the pivot points stored in the trend_bottom_values and trend_top_values arrays. For each pair of pivot points, the script calculates the slope of the line connecting them and checks if the line is a valid trend line by iterating over the price bars between the two pivot points and checking if the line is above or below the close price of each bar. If the line is found to be a valid trend line, it is plotted on the chart using the line.new() function.
Finally, the script colors the trend lines using the colors specified by the user.
Tutorial Content
'PivotPointNumber' is an input parameter for the script that specifies the number of pivot points to consider when calculating the trend lines. The value of 'PivotPointNumber' is set by the user when they configure the script. It is used to determine the size of the arrays that store the values and positions of the pivot points, as well as the number of pivot points to loop through when calculating the trend lines.
'up_trend_color' is an input parameter for the script that specifies the color to use for drawing the trend lines that are determined to be upward trends. The value of 'up_trend_color' is set by the user when they configure the script and is passed to the color parameter of the line.new() function when drawing the upward trend lines. It determines the visual appearance of the upward trend lines on the chart.
'down_trend_color' is an input parameter for the script that specifies the color to use for drawing the trend lines that are determined to be downward trends. The value of 'down_trend_color' is set by the user when they configure the script and is passed to the color parameter of the line.new() function when drawing the downward trend lines. It determines the visual appearance of the downward trend lines on the chart.
'pivothigh' is a variable in the script that stores the value of the pivot high point. It is calculated using the pivothigh() function, which returns the highest high over a specified number of bars. The value of 'pivothigh' is used in the calculation of the trend lines.
'pivotlow' is a variable in the script that stores the value of the pivot low point. It is calculated using the pivotlow() function, which returns the lowest low over a specified number of bars. The value of 'pivotlow' is used in the calculation of the trend lines.
'trend_top_values' is an array in the script that stores the values of the pivot points that are determined to be at the top of the trend. These are the pivot points that are used to calculate the upward trend lines.
'trend_top_position' is an array in the script that stores the positions (i.e., bar indices) of the pivot points that are stored in the 'trend_top_values' array. These positions correspond to the locations of the pivot points on the chart.
'trend_bottom_values' is an array in the script that stores the values of the pivot points that are determined to be at the bottom of the trend. These are the pivot points that are used to calculate the downward trend lines.
'trend_bottom_position' is an array in the script that stores the positions (i.e., bar indices) of the pivot points that are stored in the 'trend_bottom_values' array. These positions correspond to the locations of the pivot points on the chart.
apointer1 and apointer2 are variables used in the add_to_array() function, which is defined in the script. They are both pointers to arrays, meaning that they hold the memory addresses of the arrays rather than the arrays themselves. They are used to manipulate the arrays by adding new elements to the beginning of the arrays and removing elements from the end of the arrays.
apointer1 is a pointer to an array of floating-point values, while apointer2 is a pointer to an array of integers. The specific arrays that they point to depend on the arguments passed to the add_to_array() function when it is called. For example, if add_to_array(trend_top_values, trend_top_posisiton, pivothigh) is called, then apointer1 would point to the tval array and apointer2 would point to the tpos array.
'bottom_lines' (short for "Bottom Lines") is an array in the script that stores the line objects for the downward trend lines that are drawn on the chart. Each element of the array corresponds to a different trend line.
'top_lines' (short for "Top Lines") is an array in the script that stores the line objects for the upward trend lines that are drawn on the chart. Each element of the array corresponds to a different trend line.
Both 'bottom_lines' and 'top_lines' are arrays of type "line", which is a data type in PineScript that represents a line drawn on a chart. The line objects are created using the line.new() function and are used to draw the trend lines on the chart. The variables are used to store the line objects so that they can be manipulated and deleted later in the script.
Loops
maxline is a variable in the script that specifies the maximum number of trend lines that can be drawn on the chart. It is used to determine the size of the bottom_lines and top_lines arrays, which store the line objects for the trend lines.
The value of maxline is set to 3 at the beginning of the script, meaning that at most 3 trend lines can be drawn on the chart at a time. This value can be changed by the user if desired by modifying the assignment statement "maxline = 3".
'count_line_low' (short for "Count Line Low") is a variable in the script that keeps track of the number of downward trend lines that have been drawn on the chart. It is used to ensure that the maximum number of trend lines (as specified by the maxline variable) is not exceeded.
'count_line_high' (short for "Count Line High") is a variable in the script that keeps track of the number of upward trend lines that have been drawn on the chart. It is used to ensure that the maximum number of trend lines (as specified by the maxline variable) is not exceeded.
Both 'count_line_low' and 'count_line_high' are initialized to 0 at the beginning of the script and are incremented each time a new trend line is drawn. If either variable exceeds the value of maxline, then no more trend lines are drawn.
'pivot1', 'up_val1', 'up_val2', up1, and up2 are variables used in the loop that calculates the downward trend lines in the script. They are used to store intermediate values during the calculation process.
'pivot1' is a loop variable that is used to iterate through the pivot points (stored in the trend_bottom_values and trend_bottom_position arrays) that are being considered for use in the trend line calculation.
'up_val1' and 'up_val2' are variables that store the values of the pivot points that are used to calculate the downward trend line.
up1 and up2 are variables that store the positions (i.e., bar indices) of the pivot points that are stored in 'up_val1' and 'up_val2', respectively. These positions correspond to the locations of the pivot points on the chart.
'value1' and 'value2' are variables that are used to store the values of the pivot points that are being compared in the loop that calculates the trend lines in the script. They are used to determine whether a trend line can be drawn between the two pivot points.
For example, if 'value1' is the value of a pivot point at the top of the trend and 'value2' is the value of a pivot point at the bottom of the trend, then a trend line can be drawn between the two points if 'value1' is greater than 'value2'. The values of 'value1' and 'value2' are used in the calculation of the slope and intercept of the trend line.
'position1' and 'position2' are variables that are used to store the positions (i.e., bar indices) of the pivot points that are being compared in the loop that calculates the trend lines in the script. They are used to determine the distance between the pivot points, which is necessary for calculating the slope of the trend line.
For example, if 'position1' is the position of a pivot point at the top of the trend and 'position2' is the position of a pivot point at the bottom of the trend, then the distance between the two points is given by 'position1' - 'position2'. This distance is used in the calculation of the slope of the trend line.
'different', 'high_line', 'low_location', 'low_value', and 'valid' are variables that are used in the loop that calculates the downward trend lines in the script. They are used to store intermediate values during the calculation process.
'different' is a variable that stores the slope of the downward trend line being calculated. It is calculated as the difference in value between the two pivot points (stored in up_val1 and up_val2) divided by the distance between the pivot points (calculated using their positions, stored in up1 and up2).
'high_line' is a variable that stores the current value of the trend line being calculated at a given point in the loop. It is initialized to the value of the second pivot point (stored in up_val2) and is updated on each iteration of the loop using the value of different.
'low_location' is a variable that stores the position (i.e., bar_index) on the chart of the point where the trend line being calculated first touches the low price. It is initialized to the position of the second pivot point (stored in up2) and is updated on each iteration of the loop if the trend line touches a lower low.
'low_value' is a variable that stores the value of the trend line at the point where it first touches the low price. It is initialized to the value of the second pivot point (stored in up_val2) and is updated on each iteration of the loop if the trend line touches a lower low.
'valid' is a Boolean variable that is used to indicate whether the trend line being calculated is valid. It is initialized to true and is set to false if the trend line does not pass through all the lows between the pivot points. If valid is still true after the loop has completed, then the trend line is considered valid and is drawn on the chart.
d_value1, d_value2, d_position1, and d_position2 are variables that are used in the loop that calculates the upward trend lines in the script. They are used to store intermediate values during the calculation process.
d_value1 and d_value2 are variables that store the values of the pivot points that are used to calculate the upward trend line.
d_position1 and d_position2 are variables that store the positions (i.e., bar indices) of the pivot points that are stored in d_value1 and d_value2, respectively. These positions correspond to the locations of the pivot points on the chart.
The variables d_value1, d_value2, d_position1, and d_position2 have the same function as the variables uv1, uv2, up1, and up2, respectively, but for the calculation of the upward trend lines rather than the downward trend lines. They are used in a similar way to store intermediate values during the calculation process.
thank you.
True Range Adjusted Exponential Moving Average [CC]The True Range Adjusted Exponential Moving Average was created by Vitali Apirine (Stocks and Commodities Jan 2023 pgs 22-27) and this is the latest indicator in his EMA variation series. He has been tweaking the traditional EMA formula using various methods and this indicator of course uses the True Range indicator. The way that this indicator works is that it uses a stochastic of the True Range vs its highest and lowest values over a fixed length to create a multiple which increases as the True Range rises to its highest level and decreases as the True Range falls. This in turn will adjust the Ema to rise or fall depending on the underlying True Range. As with all of my indicators, I have color coded it to turn green when it detects a buy signal or turn red when it detects a sell signal. Darker colors mean it is a very strong signal and let me know if you find any settings that work well overall vs the default settings.
Let me know if you would like me to publish any other scripts that you recommend!
Immediate Trend - VHXIMMEDIATE TREND - VULNERABLE_HUMAN_X
This indicator is used to identify the immediate trend in the market.
When a Short Term High (STH) is engulfed and closed above, we consider that as a bullish trend.
And Similarly, when a Short Term Low (STL) is engulfed and closed below, we consider that as a bullish trend.
STH - A candle that is higher than the one candle towards it's left and one candle towards it's right.
STL - A candle that is lower than the one candle towards it's left and one candle towards it's right.
HOW TO USE:
1. Do not take trades purely based on the immediate trend showcased by the indicator. Rather, use them as confluence with your trading strategy.
2. When you are expecting price to reverse at your point of interest (Denamd/Supply zone), this indicator can help you predict the reversal by showcasing the current trend.
3. Using this indicator you can travel the trend as long as there is a change of trend predicted by this indicator.
Converging Pullbacks and PeaksMulti Timeframe Converging Lines Indicator. Using the highest/lowest Values at 2 different lengths. Convergence created by taking the highest/lowest value and subtracting/adding the # of barssince the highest/lowest bar was set multiplied by the price multiplied by the float. Curves are created from averaging out the emas of the center lines of the extremeties.
Helps show trendlines automatically most of the time but can be tweaked by changing the floats or Fast/Slow lengths to you liking.
TradersCustomLibraryLibrary "TradersCustomLibrary"
TODO: add library description here
SelectOptimalTimeframeTrendlineSettings()
calculateShortStopLoss()
calculateLongStopLoss()
werdygerTrend()
trendLines()
stoch()
timeToString()
Aarika RSIHello traders, purpose of creating this indicator is simply trying to analyse the trend of any symbol.
This indicator can be used on any script like Indices, Stocks, Future, Currency & Crypto.
This RSI version is much simpler to identify the trend of the script than that of traditional RSI trendline. Rather than showing a line, this RSI indicates bars for better and clear visibility of RSI levels.
This is a modified version of © ParkF. I have modified it to simplest possible manner.
How to trade:
RSI level 80, I consider this as extreme-bought which means high chance if bear market from this point on any given timeframe. Whereas 20 is considered as extreme-sold and have a chance to go higher from the current level.
I recommend you to study this RSI before putting it into practice.
Always start with small target and then go for big one by trailing your profit. This is not a Holy Grail indicator which always gives profit but if you practice this indicator with consistency, your portfolio may give good returns.
Use proper money management for any trade. Go for paper trade and observe how this indicator behaves and once satisfied then only take real trade.
Disclaimer: Please make sure you study this indicator on different timeframes because inserted set of data may act differently on different scripts and may vary from timeframe to timeframe.
We advice you to use this indicator for trend-analysis and study purpose only. Author/publisher of this indicator is not responsible for your profit or loss if you use this indicator for trading purpose one way or another.
N.B.: We do not recommend using HeikinAshi charting for this particular indicator as the data inputs may behave differently than expected. If you have any query, you may comment below.
All-in-One-BTFinancialsI like to share my ALL-IN-ONE script to help you understand trendlines, overbought/sold, unified EMA, Volume trades, Chopiness index and my favourite Fibonacci. It looks a bit messy but you will get used to it.
Kalman Gain Parameter MechanicsFrequently asked question is to explain how Gain parameter works in kalman funtion. This script serves as a visual representation of Gain parameter of Kalman function used in HMA-Kalman & Trendlines script. (The function creator's name was misspeled in that script as Kahlman)
To see better results set your Chart's timeframe to Daily.
ATR Trend Bands [Misu]█ This indicator shows an upper and lower band based on price action and ATR (Average True Range)
The average true range (ATR) is a market volatility indicator used in technical analysis.
█ Usages:
The purpose of this indicator is to identify changes in trends and price action.
It is mainly used to identify breaking points and trend reversals.
But it can also be used to show resistance or support levels.
█ Features:
> Buy & Sell Alerts
> Buy & Sell Labels
> Color Bars
> Show Bands
█ Parameters:
Length: Length is used to calculate ATR.
Atr Multiplier: A factor used to balance the impact of the ATR on the Trend Bands calculation.
double Bollinger BandsThis Bollinger Band indicator is a technical analysis tool defined by a set of trendlines plotted Four standard deviations (two positively and two negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preference.
Step-MA Filtered Stochastic [Loxx]Step-MA Filtered Stochastic is a stochastic indicator with step moving average filtering. This smooths the signal by filtering out noise.
What is the Stochastic Indicator?
The stochastic oscillator, also known as stochastic indicator, is a popular trading indicator that is useful for predicting trend reversals. It also focuses on price momentum and can be used to identify overbought and oversold levels in shares, indices, currencies and many other investment assets.
The stochastic oscillator measures the momentum of price movements. Momentum is the rate of acceleration in price movement. The idea behind the stochastic indicator is that the momentum of an instrument’s price will often change before the price movement of the instrument actually changes direction. As a result, the indicator can be used to predict trend reversals.
The stochastic indicator can be used by experienced traders and those learning technical analysis. With the help of other technical analysis tools such as moving averages, trendlines and support and resistance levels, the stochastic oscillator can help to improve trading accuracy and identify profitable entry and exit points.
Included:
Bar coloring
3 signal variations w/ alerts
Loxx's Expanded Source Types
SBS AlgoHello traders, I am here again with a new and improved indicator.
This indicator is based on a pivot breakout algorithm which gives buy and sell signals according to the breakout of trendline. This is an advanced version of another script. It also takes price action into consideration along with some basic indicators like MACD and ADX to give good entry signals.
NOTE: This indicator is not designed to take entries completely based on signals it gives. Please use it along with your trading strategy to add more confluence to your trading system and maximize your profits.
I hope you guys will like this one too .Enjoy 👍
In case you find any bug, please do report in comment section .Thank you.
Ichimoku Cloud and Bollinger Bands (by Coinrule)The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future.
The Ichimoku Cloud was developed by Goichi Hosoda, a Japanese journalist, and published in the late 1960s. It provides more data points than the standard candlestick chart. While it seems complicated at first glance, those familiar with how to read the charts often find it easy to understand with well-defined trading signals.
The Ichimoku Cloud is composed of five lines or calculations, two of which comprise a cloud where the difference between the two lines is shaded in.
The lines include a nine-period average, a 26-period average, an average of those two averages, a 52-period average, and a lagging closing price line.
The cloud is a key part of the indicator. When the price is below the cloud, the trend is down. When the price is above the cloud, the trend is up.
The above trend signals are strengthened if the cloud is moving in the same direction as the price. For example, during an uptrend, the top of the cloud is moving up, or during a downtrend, the bottom of the cloud is moving down.
The Bollinger Bands are among the most famous and widely used indicators. A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average ( SMA ) of a security's price, but which can be adjusted to user preferences. They can suggest when an asset is oversold or overbought in the short term, thus providing the best time for buying and selling it.
This strategy combines the Ichimoku Cloud with Bollinger Bands to better enter trades.
Long orders are placed when these basic signals are triggered.
Long Position:
Tenkan-Sen is above the Kijun-Sen
Chikou-Span is above the close of 26 bars ago
Close is above the Kumo Cloud
The closing price is greater than the upper standard deviation of the Bollinger Bands
Short Position:
Tenkan-Sen is below the Kijun-Sen
Chikou-Span is below the close of 26 bars ago
Close is below the Kumo Cloud
The upper standard deviation of the Bollinger Band is greater than the closing price
The script is backtested from 1 January 2022 and provides good returns.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
This script also works well on BTC 30m/1h, ETH 2h, MATIC 2h/30m, AVAX 1h/2h, SOL 45m timeframes
Support Resistance Channels/Zones Multi Time FrameHello All,
For long time I have been getting a lot of requests for Support/Resistance Multi Time Frame script. Here ' Support Resistance Channels/Zones Multi Time Frame ' is in your service.
This script works if the Higher Time Frame you set is higher than the chart time frame. so the time frame in the options should be higher than the chart time frame.
The script checks total bars and highest/lowest in visible part of the chart and shows all S/R zones that fits according the highest/lowest in visible part. you can see screenshots below if it didn't make sense or if you didn't understand
Let see the options:
Higher Time Frame : the time frame that will be used to get Support/Resistance zones, should be higher than chart time frame
Pivot Period : is the number to find the Pivot Points on Higher time frame, these pivot points are used while calculating the S/R zones
Loopback Period : is the number of total bars on higher time frame which is used while finding pivot points
Maximum Channel Width % : is the percent for maximum width for each channel
Minimum Strength : each zone should contain at least a 1 or more pivot points, you set it here. (Open/High/Low/Close also are considered while calculating the strength)
Maximum Number of S/R : the number of maximum Support/Resistance zones. there can be less S/Rs than this number if it can not find enough S/Rs
Show S/R that fits the Chart : because of we use higher time frame, you should enable this option then the script shows only S/Rs that fits the current chart. if you disable this option, all S/R zones are shown and it may shrink the chart. also you may not see any S/R zone if you don't choose the higher time frame wisely ;)
Show S/R channels in a table : if you enable this option (by default it's enabled) then lower/upper bands of all S/R zones shown in a table ( even if it doesn't fit the chart ). you can change its location. zones are sorted according to their strengths. first one is the strongest.
and the other options is about colors and transparency.
Screenshots before and after zoom-out:
after zoom-out number of visible bars and highest/lowest change and it shows more S/R zones that fits the current chart!
if you see Support Resistance zone like below then you should decrease ' Maximum Channel Width ' or you should set higher time frame better:
You can change colors and transparency:
You can change Table location:
Alerts added :)
P.S. I haven't tested it so much, if you see any issue please drop a comment or send me message
Enjoy!
Auto Fibonacci Levels + Auto Trend Line generatorAnother indicator for you guys!!!
This indicator consists of the 5 key Fibonacci retracement levels, plotted automatically to user input settings. I also have included an auto support/resistance trend line generator.
What is a Fibonacci retracement?
'Fibonacci retracement is a method of technical analysis for determining support and resistance levels. It is named after the Fibonacci sequence of numbers, whose ratios provide price levels to which markets tend to retrace a portion of a move before a trend continues in the original direction.' - Wikipedia
How to use the Fibonacci retracement?
- The Fibonacci levels are default. These percentiles from price to the average of the high in a sample and low in a sample give you a guideline of where a bottom may be, where a top may be, and where a range is being created.
- Look for the price to reject from 61.8% and 76.4%, and also look for price to bounce from 38.2% and 23.6%. If a lower low/higher high is made, the fib levels will follow and the percentiles within will be recalculated after a 5 candle offset period.
- If you see price trending towards the lower percentiles (38&23) and using the 50% as resistance, look for a break downwards and vice versa.
-This Fibonacci set as all others is subject to fake-out, always use this with another series indicator, or don't use it as a signal for entry at all (unless you have a backdated strategy)
How to use the trend line generator?
-The trend line generator will only plot when a lower low/higher high has taken place within the input amount of candles. It is also offset by a user amount.
-The check box will give the option to have the trend line's plot or not.
- If you see a green/red dot it means that that will be your first coordinate for the trend line, and until the computations are complete it will give you an idea of which direction it will be in (resistance or support)
-When opening this indicator zoom out all the way to connect any trend lines that do not load automatically.
Let me know if you have any questions, suggestions or issues! Thank you everyone!
-Cheatcode1 :)
SP:SPX TVC:DXY BMFBOVESPA:EUR1! CME:BTC1! BINANCE:BTCUSDT
VIX - SKEW DivergenceThe CBOE VIX is a well-known index representing market expectations for volatility over the next 30 days.
The CBOE SKEW is an index reflecting the perceived tail risk over the next 30 days.
When the SKEW rises over a certain level (~140/150), that means investors are hedging their exposure with options, because they are worried about an incoming market crash or a "black swan". If that happens when the VIX is very low and apparently there is no uncertainty, this can warn of a sudden change in direction of the market. You will see for yourself that an increasing divergence often anticipates a sharp fall of leading stock indexes, usually within two to four months.
This is probably not very relevant for the short-term trader but mid/long-term traders and market analysts may find it useful to clearly visualize the extent of the distance between the VIX and the SKEW. For that reason, I wrote this highly customizable script with which you can plot the two indexes and fill the space within them with a color gradient to highlight the maximum and minimum divergence. Additionally, you can fill the beneath VIX area with four different colors. It is also possible to plot the divergence value itself, so if you want you can draw trendlines and support/resistance levels on it.
Please note that the divergence per se doesn't predict anything and it's meant to be used synergistically with other technical analysis tools.
More informations here:
www.cboe.com
www.cboe.com
Bollinger Bands and RSI Short Selling (by Coinrule)The Bollinger Bands are among the most famous and widely used indicators. A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average ( SMA ) of a security's price, but which can be adjusted to user preferences. They can suggest when an asset is oversold or overbought in the short term, thus provide the best time for buying and selling it.
The relative strength index ( RSI ) is a momentum indicator used in technical analysis . RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security. The RSI can do more than point to overbought and oversold securities. It can also indicate securities that may be primed for a trend reversal or corrective pullback in price. It can signal when to buy and sell. Traditionally, an RSI reading of 70 or above indicates an overbought situation. A reading of 30 or below indicates an oversold condition.
The short order is placed on assets that present strong momentum when it's more likely that it is about to decrease further. The rule strategy places and closes the order when the following conditions are met:
ENTRY
The closing price is greater than the upper standard deviation of the Bollinger Bands
The RSI is less than 70
EXIT
The trade is closed in profit when the RSI is less than 70
Upper standard deviation of the Bollinger Band is greater than the the closing price.
This strategy comes with a stop loss and a take profit, and as you can see by the results, it is well suited for a bear market.
This trade works very well with ETH (1h timeframe), AVA (4h timeframe), and SOL (3h timeframe) and is backtested from the 1 December 2021 to capture how this strategy would perform in a bear market.
To make the results more realistic, the strategy assumes each order to trade 30% of the available capital. A trading fee of 0.1% is taken into account. The fee is aligned to the base fee applied on Binance, which is the largest cryptocurrency exchange.
Dynamic Zone of Bollinger Band Stops Line [Loxx]Dynamic Zone of Bollinger Band Stops Line is a Bollinger Band indicator with Dynamic Zones. This indicator serves as both a trend indicator and a dynamic stop-loss indicator.
What are Bollinger Bands?
A Bollinger Band is a technical analysis tool defined by a set of trendlines plotted two standard deviations (positively and negatively) away from a simple moving average (SMA) of a security's price, but which can be adjusted to user preferences.
Bollinger Bands were developed and copyrighted by famous technical trader John Bollinger, designed to discover opportunities that give investors a higher probability of properly identifying when an asset is oversold or overbought.
What are Dynamic Zones?
As explained in "Stocks & Commodities V15:7 (306-310): Dynamic Zones by Leo Zamansky, Ph .D., and David Stendahl"
Most indicators use a fixed zone for buy and sell signals. Here’ s a concept based on zones that are responsive to past levels of the indicator.
One approach to active investing employs the use of oscillators to exploit tradable market trends. This investing style follows a very simple form of logic: Enter the market only when an oscillator has moved far above or below traditional trading lev- els. However, these oscillator- driven systems lack the ability to evolve with the market because they use fixed buy and sell zones. Traders typically use one set of buy and sell zones for a bull market and substantially different zones for a bear market. And therein lies the problem.
Once traders begin introducing their market opinions into trading equations, by changing the zones, they negate the system’s mechanical nature. The objective is to have a system automatically define its own buy and sell zones and thereby profitably trade in any market — bull or bear. Dynamic zones offer a solution to the problem of fixed buy and sell zones for any oscillator-driven system.
An indicator’s extreme levels can be quantified using statistical methods. These extreme levels are calculated for a certain period and serve as the buy and sell zones for a trading system. The repetition of this statistical process for every value of the indicator creates values that become the dynamic zones. The zones are calculated in such a way that the probability of the indicator value rising above, or falling below, the dynamic zones is equal to a given probability input set by the trader.
To better understand dynamic zones, let's first describe them mathematically and then explain their use. The dynamic zones definition:
Find V such that:
For dynamic zone buy: P{X <= V}=P1
For dynamic zone sell: P{X >= V}=P2
where P1 and P2 are the probabilities set by the trader, X is the value of the indicator for the selected period and V represents the value of the dynamic zone.
The probability input P1 and P2 can be adjusted by the trader to encompass as much or as little data as the trader would like. The smaller the probability, the fewer data values above and below the dynamic zones. This translates into a wider range between the buy and sell zones. If a 10% probability is used for P1 and P2, only those data values that make up the top 10% and bottom 10% for an indicator are used in the construction of the zones. Of the values, 80% will fall between the two extreme levels. Because dynamic zone levels are penetrated so infrequently, when this happens, traders know that the market has truly moved into overbought or oversold territory.
Calculating the Dynamic Zones
The algorithm for the dynamic zones is a series of steps. First, decide the value of the lookback period t. Next, decide the value of the probability Pbuy for buy zone and value of the probability Psell for the sell zone.
For i=1, to the last lookback period, build the distribution f(x) of the price during the lookback period i. Then find the value Vi1 such that the probability of the price less than or equal to Vi1 during the lookback period i is equal to Pbuy. Find the value Vi2 such that the probability of the price greater or equal to Vi2 during the lookback period i is equal to Psell. The sequence of Vi1 for all periods gives the buy zone. The sequence of Vi2 for all periods gives the sell zone.
In the algorithm description, we have: Build the distribution f(x) of the price during the lookback period i. The distribution here is empirical namely, how many times a given value of x appeared during the lookback period. The problem is to find such x that the probability of a price being greater or equal to x will be equal to a probability selected by the user. Probability is the area under the distribution curve. The task is to find such value of x that the area under the distribution curve to the right of x will be equal to the probability selected by the user. That x is the dynamic zone.
Included
Bar coloring
Signals
Alerts
3 types of signal smoothing
Real Woodies CCIAs always, this is not financial advice and use at your own risk. Trading is risky and can cost you significant sums of money if you are not careful. Make sure you always have a proper entry and exit plan that includes defining your risk before you enter a trade.
Ken Wood is a semi-famous trader that grew in popularity in the 1990s and early 2000s due to the establishment of one of the earliest trading forums online. This forum grew into "Woodie's CCI Club" due to Wood's love of his modified Commodity Channel Index (CCI) that he used extensively. From what I can tell, the website is still active and still follows the same core principles it did in the early days, the CCI is used for entries, range bars are used to help trader's cut down on the noise, and the optional addition of Woodie's Pivot Points can be used as further confirmation of support and resistance. This is my take on his famous "Woodie's CCI" that has become standard on many charting packages through the years, including a TradingView sponsored version as one of the many stock indicators provided by TradingView. Woodie has updated his CCI through the years to include several very cool additions outside of the standard CCI. I will have to say, I am a bit biased, but I think this is hands down one of the best indicators I have ever used, and I am far too young to have been part of the original CCI Club. Being a daytrader primarily, this fits right in my timeframe wheel house. Woodie designed this indicator to work on a day-trading time scale and he frequently uses this to trade futures and commodity contracts on the 30 minute, often even down to the one minute timeframe. This makes it unique in that it is probably one of the only daytrading-designed indicators out there that I am aware of that was not a popular indicator, like the MACD or RSI, that was just adopted by daytraders.
The CCI was originally created by Donald Lambert in 1980. Over time, it has become an extremely popular house-hold indicator, like the Stochastics, RSI, or MACD. However, like the RSI and Stochastics, there are extensive debates on how the CCI is actually meant to be used. Some trade it like a reversal indicator, where values greater than 100 or less than -100 are considered overbought or oversold, respectively. Others trade it like a typical zero-line cross indicator, where once the value goes above or below the zero-line, a trade should be considered in that direction. Lastly, some treat it as strictly a momentum indicator, where values greater than 100 or less than -100 are seen as strong momentum moves and when these values are reached, a new strong trend is establishing in the direction of the move. The CCI itself is nothing fancy, it just visualizes the distance of the closing price away from a user-defined SMA value and plots it as a line. However, Woodie's CCI takes this simple concept and adds to it with an indicator with 5 pieces to it designed to help the trader enter into the highest probability setups. Bear with me, it initially looks super complicated, but I promise it is pretty straight-forward and a fun indicator to use.
1) The CCI Histogram. This is your standard CCI value that you would find on the normal CCI. Woodie's CCI uses a value of 14 for most trades and a value of 20 when the timeframe is equal to or greater than 30minutes. I personally use this as a 20-period CCI on all time frames, simply for the fact that the 20 SMA is a very popular moving average and I want to know what the crowd is doing. This is your coloured histogram with 4 colours. A gray colouring is for any bars above or below the zero line for 1-4 bars. A yellow bar is a "trend bar", where the long period CCI has been above/below the zero line for 5 consecutive bars, indicating that a trend in the current direction has been established. Blue bars above and red bars below are simply 6+n number of bars above or below the zero line confirming trend. These are used for the Zero-Line Reject Trade (explained below). The CCI Histogram has a matching long-period CCI line that is painted the same colour as the histogram, it is the same thing but is used just to outline the Histogram a bit better.
2) The CCI Turbo line. This is a sped-up 6 period CCI. This is to be used for the Zero-Line Reject trades, trendline breaks, and to identify shorter term overbought/oversold conditions against the main trend. This is coloured as the white line.
3) The Least Squares Moving Average Baseline (LSMA) Zero Line. You will notice that the Zero Line of the indicator is either green or red. This is based on when price is above or below the 25-period LSMA on the chart. The LSMA is a 25 period linear regression moving average and is one of the best moving averages out there because it is more immune to noise than a typical MA. Statistically, an LSMA is designed to find the line of best fit across the lookback periods and identify whether price is advancing, declining, or flat, without the whipsaw that other MAs can be privy to. The zero line of the indicator will turn green when the close candle is over the LSMA or red when it is below the LSMA. This is meant to be a confirmation tool only and the CCI Histogram and Turbo Histogram can cross this zero line without any corresponding change in the colour of the zero line on that immediate candle.
4) The +100 and -100 lines are used in two ways. First, they can be used by the CCI Histogram and CCI Turbo as a sort of minor price resistance and if the CCI values cannot get through these, it is considered weakness in that trade direction until they do so. You will notice that both of these lines are multi-coloured. They have been plotted with the ChopZone Indicator, another TradingView built-in indicator. The ChopZone is a trend identification tool that uses the slope and the direction of a 34-period EMA to identify when price is trending or range bound. While there are ~10 different colours, the main two a trader needs to pay attention to are the turquoise/cyan blue, which indicates price is in an uptrend, and dark red, which indicates price is in a downtrend based on the slope and direction of the 34 EMA. All other colours indicate "chop". These colours are used solely for the Zero-Line Reject and pattern trades discussed below. They are plotted both above and below so you can easily see the colouring no matter what side of the zero line the CCI is on.
5) The +200 and -200 lines are also used in two ways. First, they are considered overbought/oversold levels where if price exceeds these lines then it has moved an extreme amount away from the average and is likely to experience a pullback shortly. This is more useful for the CCI Histogram than the Turbo CCI, in all honesty. You will also notice that these are coloured either red, green, or yellow. This is the Sidewinder indicator portion. The documentation on this is extremely sparse, only pointing to a "relationship between the LSMA and the 34 EMA" (see here: tlc.thinkorswim.com). Since I am not a member of Woodie's CCI Club and never intend to be I took some liberty here and decided that the most likely relationship here was the slope of both moving averages. Therefore, the Sidewinder will be green when both the LSMA and the 34 EMA are rising, red when both are falling, and yellow when they are not in agreement with one another (i.e. one rising/flat while the other is flat/falling). I am a big fan of Dr. Alexander Elder as those who follow me know, so consider this like Woodie's version of the Elder Impulse System. I will fully admit that this version of the Sidewinder is a guess and may not represent the real Sidewinder indicator, but it is next to impossible to find any information on this, so I apologize, but my version does do something useful anyways. This is also to be used only with the Zero-Line Reject trades. They are plotted both above and below so you can easily see the colouring no matter what side of the zero line the CCI is on.
How to Trade It According to Woodie's CCI Club:
Now that I have all of my components and history out of the way, this is what you all care about. I will only provide a brief overview of the trades in this system, but there are quite a few more detailed descriptions listed in the Woodie's CCI Club pamphlet. I have had little success trading the "patterns" but they do exist and do work on occasion. I just prefer to trade with the flow of the markets rather than getting overly scalpy. If you are interested in these patterns, see the pamphlet here (www.trading-attitude.com), hop into the forums and see for yourself, or check out a couple of the YouTube videos.
1) Zero line cross. As simple as any other momentum oscillator out there. When the long period CCI crosses above or below the zero line open a trade in that direction. Extra confirmation can be had when the CCI Turbo has already broken the +100/-100 line "resistance or support". Trend traders may wish to wait until the yellow "trend confirmation bar" has been printed.
2) Zero Line Reject. This is when the CCI Turbo heads back down to the zero line and then bounces back in the same direction of the prevailing trend. These are fantastic continuation trades if you missed the initial entry either on the zero line cross or on the trend bar establishment. ZLR trades are only viable when you have the ChopZone indicator showing a trend (turquoise/cyan for uptrend, dark red for downtrend), the LSMA line is green for an uptrend or red for a downtrend, and the SideWinder is either green confirming the uptrend or red confirming the downtrend.
3) Hook From Extreme. This is the exact same as the Zero Line Reject trade, however, the CCI Turbo now goes to the +100/-100 line (whichever is opposite the currently established trend) and then hooks back into the established trend direction. Ideally the HFE trade needs to have the Long CCI Histogram above/below the corresponding 100 level and the CCI Turbo both breaks the 100 level on the trend side and when it does break it has increased ~20 points from the previous value (i.e. CCI Histogram = +150 with LSMA, CZ, and SW all matching up and trend bars printed on CCI Histogram, CCI Turbo went to -120 and bounced to +80 on last 2 bars, current bar closes with CCI Turbo closing at +110).
4) Trend Line Break. Either the CCI Turbo or CCI Histogram, whichever you prefer (I find the Turbo a bit more accurate since its a faster value) creates a series of higher highs/lows you can draw a trend line linking them. When the line breaks the trendline that is your signal to take a counter trade position. For example, if the CCI Turbo is making consistently higher lows and then breaks the trendline through the zero line, you can then go short. This is a good continuation trade.
5) The Tony Trade. Consider this like a combination zero line reject, trend line break, and weak zero line cross all in one. The idea is that the SW, CZ, and LSMA values are all established in one direction. The CCI Histogram should be in an established trend and then cross the zero line but never break the 100 level on the new side as long as it has not printed more than 9 bars on the new side. If the CCI Histogram prints 9 or less bars on the new side and then breaks the trendline and crosses back to the original trend side, that is your signal to take a reversal trade. This is best used in the Elder Triple Screen method (discussed in final section) as a failed dip or rip.
6) The GB100 Trade. This is a similar trade as the Tony Trade, however, the CCI Histogram can break the 100 level on the new side but has to have made less than 6 bars on the new side. A trendline break is not necessary here either, it is more of a "pop and drop" or "momentum failure" trade trying in the new direction.
7) The Famir Trade. This is a failed CCI Long Histogram ZLR trade and is quite complicated. I have never traded this but it is in the pamphlet. Essentially you have a typical ZLR reject (i.e. all components saying it is likely a long/short continuation trade), but the ZLR only stays around the 50 level, goes back to the trend side, fails there as well immediately after 1 bar and then rebreaks to the new side. This is important to be considered with the LSMA value matching the side of the trade, so if the Famir says to go long, you need the LSMA indicator to also say to go long.
8) The Vegas Trade. This is essentially a trend-reversal trade that takes into account the LSMA and a cup and handle formation on the CCI Long Histogram after it has reached an extreme value (+200/-200). You will see the CCI Histogram hit the extreme value, head towards the zero line, and then sort of round out back in the direction of the extreme price. The low point where it reversed back in the direction of the extreme can be considered support or resistance on the CCI and once the CCI Long Histogram breaks this level again, with LSMA confirmation, you can take a counter trend trade with a stop under/over the highest/lowest point of the last 2 bars as you want to be out quickly if you are wrong without much damage but can get a huge win if you are right and add later to the position once a new trade has formed.
9) The Ghost Trade. This is nothing more than a(n) (inverse) head and shoulders pattern created on the CCI. Draw a trend line connecting the head and shoulders and trade a reversal trade once the CCI Long Histogram breaks the trend line. Same deal as the Vegas Trade, stop over/under the most recent 2 bar high/low and add later if it is a winner but cut quickly if it is a loser.
Like I said, this is a complicated system and could quite literally take years to master if you wanted to go into the patterns and master them. I prefer to trade it in a much simpler format, using the Elder Triple Screen System. First, since I am a day trader, I look to use the 20 period Woodie's on the hourly and look at the CZ, SW, and LSMA values to make sure they all match the direction of the CCI Long Histogram (a trend establishment is not necessary here). It shows you the hourly trend as your "tide". I then drill down to the 15 minute time frame and use the Turbo CCI break in the opposite direction of the trend as my "wave" and to indicate when there is a dip or rip against the main trend. Lastly, I drill down to a 3 minute time frame and enter when the CCI Long Histogram turns back to match the main trend ("ripple") as long as the CCI Turbo has broken the 100 level in the matched direction.
Enjoy, and please read the pamphlet if you have any questions about the patterns as they are not how I use these and will not be able to answer those questions.
S2BU2 Stochastic Momentum Convergence DivergenceFair Use:
Please do not take my work and sell it under your own name. This was created to benefit everyone - not one person. Feel free however to use it as part of whatever work you wish to sell (of course i would applaud also giving ideas away for free - your choice though ;)
What it is:
This is a twist on the stochastic momentum indicator . It combines the classic stochastic momentum with a slow moving trendline to improve the warning signal for the end of a trend
How it works:
The classic Stochastic Momentum indicates an uptrend when the smi crosses above the signalline and conversely a downtrend when it crosses below.
The improved indicator also shows trend sustainability by displaying a vertical line when the trendline and signal line cross each other. Trendline above signalline indicates a sustained uptrend, trendline below signalline indicates a sustained downtrend.
How to use:
Note this is only a recommendation and not advice. Feel free to experiment and adjust the indicator to fit your tradingstyle. This is only my personal setup. Feel free to share your findings.
Set Alerts for crossovers between smi and signal on 1h and 4h. Also set alerts for crossovers between trend and signal on 4h.
(again, no advice - think for yourself!)
If smi and signal crossdown -> short
If smi and signal crossup -> long
If trend and signal crossdown between top and middle line-> major short
If trend and signal crossup between bottom and middle line -> major long
If trend and signal cross anywhere else -> get out and wait for a new signal
You could also stay in a trend for as long as the trendline does not crossover on the 4h. This works well for major trends and indicates very well the end it.
The end of a major trend is not necessarily the start of a major uptrend - there can and probably will be a consolidation phase.
This does not work well in a choppy market, do not keep a trade going until trend crossover if the market is choppy - you will mostly close with losses!
//chart
Plot futures volumes with indexMost of the times, F&O traders like to draw their own trendlines or mark other levels on the underlying instrument where volumes of the underlying is a key parameter. When such an instrument is a non-tradeable index, then one needs to switch to the futures chart for volumes. This script plots the volumes from futures on the underlying index so that traders don't need to switch charts just for futures volumes! Hope it is useful to some. Cheers!
