ka66: Candle Range MarkThis is a simple trailing stop loss tool using bar ranges, to be used with some discretion and understanding of basic price action.
Given a configurable percentage value, e.g. 25%:
A bullish bar (close > open) will be marked at the lower 25%
A bearish bar (close < open) will be marked at the upper 25%
The idea is to move your stop loss after each completed bar in the direction of the trade, at the configured percentage value.
If you have an inside bar, or something very close to it, or a doji-type bar, don't trail that, because there is no clarity of what the bar means, we can only wait.
The chart shows an example use, with trailing at 10% of the bar, from the initial stop loss after entry, trailing till we get stopped out. Some things to note:
Because this example focuses on a short trade, we ignore the bullish candles, and keep our trailing stop at the last bearish candle.
We ignore doji-esque candles and inside bars, where the body is in the range of the prior candle. Some definitions of inside bars include the wicks as well. I don't have a strong opinion, and this example is just for illustration. Furthermore, the inside bar will likely be the opposite of the swing bars (e.g. bullish bar in a range of bearish bars), so our stop remains unchanged.
One could use this semi-systematic approach in scalping on any timeframe, for example to maximise gains, adjusting the bar percentage as needed.
ボラティリティ・ストップ
Visual ATR StopThis indicator uses the Average True Range (ATR) to display a visual range for stop placement. Two multiplier values (example, 1 and 3) can be set to create a filled area below the price. This area represents the range between the two ATR levels, adjusted by subtracting the current price, providing a simple way to visualize stop-loss placement based on volatility.
The indicator is customizable; for example, negative values can place the area above the price for short positions. The filled color can also be removed, which allows precise levels to be marked above and below.
Chande Volatility-Based Trailing Stops This indicator is developed from a description outlined in the Chande - Kroll book, "The New Technical Trader". It is designed to help control risk by plotting two lines that function as long and short trailing stops.
How does it work?
"These stops are derived from recent highest high or lowest low. They adjust based on volatility. However, to avoid giving up a sizable chunk of profit before the stop is hit, it is modified in such a way that the stop can only advance with price, not retreat. This will lock in a greater portion of potential profits..."
Settings:
The default settings are those described in the book. They are described as being best for intermediate term trades. Use the multiplier to tighten or loosen the stop. A smaller multiplier will result in tighter stops. It is recommended to adjust this value for your preferred timeframe. You can toggle the trailing stop lines on or off as well as cross over marker.
$TUBR: Stop Loss IndicatorATR-Based Stop Loss Indicator for TradingView by The Ultimate Bull Run Community: TUBR
**Overview**
The ATR-Based Stop Loss Indicator is a custom tool designed for traders using TradingView. It helps you determine optimal stop loss levels by leveraging the Average True Range (ATR), a popular measure of market volatility. By adapting to current market conditions, this indicator aims to minimize premature stop-outs and enhance your risk management strategy.
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**Key Features**
- **Dynamic Stop Loss Levels**: Calculates stop loss prices based on the ATR, providing both long and short stop loss suggestions.
- **Customizable Parameters**: Adjust the ATR period, multiplier, and smoothing method to suit your trading style and the specific instrument you're trading.
- **Visual Aids**: Plots stop loss lines directly on your chart for easy visualization.
- **Alerts and Notifications** (Optional): Set up alerts to notify you when the price approaches or hits your stop loss levels.
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**Understanding the Indicator**
1. **Average True Range (ATR)**:
- **What It Is**: ATR measures market volatility by calculating the average range between high and low prices over a specified period.
- **Why It's Useful**: A higher ATR indicates higher volatility, which can help you set stop losses that accommodate market fluctuations.
2. **ATR Multiplier**:
- **Purpose**: Determines how far your stop loss is placed from the current price based on the ATR.
- **Example**: An ATR multiplier of 1.5 means the stop loss is set at 1.5 times the ATR away from the current price.
3. **Smoothing Methods**:
- **Options**: Choose from RMA (default), SMA, EMA, WMA, or Hull MA.
- **Effect**: Different smoothing methods can make the ATR more responsive or smoother, affecting where the stop loss is placed.
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**How the Indicator Works**
- **Long Stop Loss Calculation**:
- **Formula**: `Long Stop Loss = Close Price - (ATR * ATR Multiplier)`
- **Purpose**: For long positions, the stop loss is set below the current price to protect against downside risk.
- **Short Stop Loss Calculation**:
- **Formula**: `Short Stop Loss = Close Price + (ATR * ATR Multiplier)`
- **Purpose**: For short positions, the stop loss is set above the current price to protect against upside risk.
- **Plotting on the Chart**:
- **Green Line**: Represents the suggested stop loss level for long positions.
- **Red Line**: Represents the suggested stop loss level for short positions.
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**How to Use the Indicator**
1. **Adding the Indicator to Your Chart**:
- **Step 1**: Copy the PineScript code of the indicator.
- **Step 2**: In TradingView, click on **Pine Editor** at the bottom of the platform.
- **Step 3**: Paste the code into the editor and click **Add to Chart**.
- **Step 4**: The indicator will appear on your chart with the default settings.
2. **Adjusting the Settings**:
- **ATR Period**:
- **Definition**: Number of periods over which the ATR is calculated.
- **Adjustment**: Increase for a smoother ATR; decrease for a more responsive ATR.
- **ATR Multiplier**:
- **Definition**: Factor by which the ATR is multiplied to set the stop loss distance.
- **Adjustment**: Increase to widen the stop loss (less likely to be hit); decrease to tighten the stop loss.
- **Smoothing Method**:
- **Options**: RMA, SMA, EMA, WMA, Hull MA.
- **Adjustment**: Experiment to see which method aligns best with your trading strategy.
- **Display Options**:
- **Show Long Stop Loss**: Toggle to display or hide the long stop loss line.
- **Show Short Stop Loss**: Toggle to display or hide the short stop loss line.
3. **Interpreting the Indicator**:
- **Long Positions**:
- **Action**: Set your stop loss at the value indicated by the green line when entering a long trade.
- **Short Positions**:
- **Action**: Set your stop loss at the value indicated by the red line when entering a short trade.
- **Adjusting Stop Losses**:
- **Trailing Stops**: You may choose to adjust your stop loss over time, moving it in the direction of your trade as the ATR-based stop loss levels change.
4. **Implementing in Your Trading Strategy**:
- **Risk Management**:
- **Position Sizing**: Use the stop loss distance to calculate your position size based on your risk tolerance.
- **Consistency**: Apply the same settings consistently to maintain discipline.
- **Combining with Other Indicators**:
- **Enhance Decision-Making**: Use in conjunction with trend indicators, support and resistance levels, or other technical analysis tools.
- **Alerts Setup** (If included in the code):
- **Purpose**: Receive notifications when the price approaches or hits your stop loss level.
- **Configuration**: Set up alerts in TradingView based on the alert conditions defined in the indicator.
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**Benefits of Using This Indicator**
- **Adaptive Risk Management**: By accounting for current market volatility, the indicator helps prevent setting stop losses that are too tight or too wide.
- **Minimize Premature Stop-Outs**: Reduces the likelihood of being stopped out due to normal price fluctuations.
- **Flexibility**: Customizable settings allow you to tailor the indicator to different trading instruments and timeframes.
- **Visualization**: Clear visual representation of stop loss levels aids in quick decision-making.
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**Things to Consider**
- **Market Conditions**:
- **High Volatility**: Be cautious as ATR values—and thus stop loss distances—can widen, increasing potential losses.
- **Low Volatility**: Tighter stop losses may increase the chance of being stopped out by minor price movements.
- **Backtesting and Optimization**:
- **Historical Analysis**: Test the indicator on past data to evaluate its effectiveness and adjust settings accordingly.
- **Continuous Improvement**: Regularly reassess and fine-tune the parameters to adapt to changing market conditions.
- **Risk Per Trade**:
- **Alignment with Risk Tolerance**: Ensure the stop loss level keeps potential losses within your acceptable risk per trade (e.g., 1-2% of your trading capital).
- **Emotional Discipline**:
- **Stick to Your Plan**: Avoid making impulsive changes to your stop loss levels based on emotions rather than analysis.
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**Example Usage Scenario**
1. **Setting Up a Long Trade**:
- **Entry Price**: $100
- **ATR Value**: $2
- **ATR Multiplier**: 1.5
- **Calculated Stop Loss**: $100 - ($2 * 1.5) = $97
- **Action**: Place a stop loss order at $97.
2. **During the Trade**:
- **Price Increases to $105**
- **ATR Remains at $2**
- **New Stop Loss Level**: $105 - ($2 * 1.5) = $102
- **Action**: Move your stop loss up to $102 to lock in profits.
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**Final Tips**
- **Documentation**: Keep a trading journal to record your trades, stop loss levels, and observations for future reference.
- **Education**: Continuously educate yourself on risk management and technical analysis to enhance your trading skills.
- **Support**: Engage with trading communities or seek professional advice if you're unsure about implementing the indicator effectively.
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**Conclusion**
The ATR-Based Stop Loss Indicator is a valuable tool for traders looking to enhance their risk management by setting stop losses that adapt to market volatility. By integrating this indicator into your trading routine, you can improve your ability to protect capital and potentially increase profitability. Remember to use it as part of a comprehensive trading strategy, and always adhere to sound risk management principles.
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**How to Access the Indicator**
To start using the ATR-Based Stop Loss Indicator, follow these steps:
1. **Obtain the Code**: Copy the PineScript code provided for the indicator.
2. **Create a New Indicator in TradingView**:
- Open TradingView and navigate to the **Pine Editor**.
- Paste the code into the editor.
- Click **Save** and give your indicator a name.
3. **Add to Chart**: Click **Add to Chart** to apply the indicator to your current chart.
4. **Customize Settings**: Adjust the input parameters to suit your preferences and start integrating the indicator into your trading strategy.
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**Disclaimer**
Trading involves significant risk, and it's possible to lose all your capital. The ATR-Based Stop Loss Indicator is a tool to aid in decision-making but does not guarantee profits or prevent losses. Always conduct your own analysis and consider seeking advice from a financial professional before making trading decisions.
Trailing Stop ProTrailing Stop Pro is a sophisticated TradingView indicator designed to enhance your trading strategy by dynamically managing trailing stops based on market volatility. This tool leverages the Average True Range (ATR) to adjust stop levels, providing traders with a robust mechanism to protect profits and minimize losses.
Key Features:
Dynamic Trailing Stops: Automatically adjusts stop levels using ATR, allowing for responsive and adaptive risk management.
Customizable Inputs: Tailor the indicator to your trading style with adjustable parameters such as ATR Length, ATR Multiplier, and Source Vector.
Visual Clarity: Distinct color settings for long and short stops, with adjustable line thickness and transparency, ensuring clear visualization on your charts.
Professional Grade: The "Pro" designation signifies advanced features suitable for both novice and experienced traders seeking reliable and efficient stop management.
How It Works:
To set up the indicator, begin by defining the Chrono Point, which specifies the exact time you want the trailing stop mechanism to activate. This allows for precise control over when your stops begin to trail. Next, set the Credit Unit as the initial entry price for your trade, serving as the baseline from which the trailing stops will adjust.
The indicator uses ATR-based adjustments to determine stop levels. Customize the sensitivity of the trailing stop by adjusting the ATR Length (default is 14) and ATR Multiplier (default is 0.5). A longer ATR length smooths out volatility, while a higher multiplier increases the distance of the stop from the price.
Select your Source Vector from "High/Low," "Close," or "Open" prices as the basis for stop calculation. This flexibility allows you to align the indicator with your preferred trading strategy. The indicator plots trailing stops directly on the chart, with color-coded lines indicating long (teal) and short (red) positions. You can adjust the line thickness and transparency for optimal visibility.
The Mission Status feature automatically detects whether the trade is long or short and adjusts the trailing stop accordingly. If the price hits the trailing stop, the trade is considered exited, and the indicator calculates the profit or loss percentage.
Benefits:
Risk Management: Protect your trades from adverse market movements while locking in profits as prices move favorably.
Automation: Reduce manual intervention with automatic stop adjustments, allowing you to focus on strategic decision-making.
User-Friendly Interface: Intuitive settings and clear visual cues make it easy to integrate into your existing trading workflow.
Conclusion:
Trailing Stop Pro is an essential tool for traders looking to enhance their risk management strategies with precision and ease. By automating the trailing stop process and providing clear visual feedback, this indicator empowers you to navigate the markets with confidence. Whether you're a seasoned trader or just starting, Trailing Stop Pro offers the functionality and flexibility needed to optimize your trading performance.
The Trailing Stop Pro indicator is a tool designed to assist traders in managing risk and optimizing their trading strategies. However, it should not be considered as financial advice or a guarantee of profitability. Trading involves significant risk, and it is possible to lose more than your initial investment. Users are encouraged to thoroughly test the indicator in a demo environment and consider their own financial situation and risk tolerance before using it in live trading. Past performance is not indicative of future results, and users should seek advice from a qualified financial advisor if needed.
Custom ATR Trailing StopThis Script creates a custom ATR (Average True Range) trailing stop. It allows traders to set up automated stop-loss levels based on the ATR, which adjusts dynamically to market volatility. The script is designed to support both long and short trades, offering flexibility and precision in trade management.
When loading the indicator to your chart, simply click to set the trade begining time, confirm various settings and you are set.
Check tooltips for more details in the input settigns menu.
User Inputs
Trade Setup: Allows users to set the trade direction (Long or Short), the signal source for entries, and the specific bar time for the trade setup.
ATR Settings: Configurable ATR lookback period, ATR smoothing period, initial ATR multiplier for setting the stop-loss, breakeven ATR multiplier, and a manual breakeven level.
ATR Calculations
Computes the ATR and its moving average.
Determines initial and breakeven stop levels based on the ATR.
Signal Validation
Validates long or short trade signals based on the specified bar time and trade direction.
Triggers alerts when a valid trade signal is detected.
Trailing Stop Logic
For long trades, adjusts the stop-loss level dynamically based on the ATR.
For short trades, performs similar adjustments in the opposite direction.
Updates the trailing stop level to ensure it follows the price, moving closer as the price moves favorably.
Resets the trade state when the stop-loss is hit, triggering an alert.
Plotting
Plots the trailing stop levels on the chart.
Uses green for stop levels indicating profit and red for stop levels indicating a loss.
Consistent ATR Trailing Stop (ATR, 1m based) [nn1]This indicator implements a Consistent ATR (Average True Range) Trailing Stop that maintains uniform behavior across various chart timeframes. It's designed to provide traders with a reliable tool for setting dynamic stop-loss levels that adapt to market volatility while remaining consistent regardless of the chosen chart interval.
Key Features:
1. Consistent ATR Calculation: The indicator calculates the ATR based on 1-minute data, regardless of the current chart timeframe. This ensures that the ATR value remains consistent across different intervals (e.g., 10s, 15s, 30s, 60s), providing a stable base for the trailing stop.
2. Dynamic Trailing Stop: The trailing stop adjusts based on the ATR, moving up in uptrends and down in downtrends to protect profits while allowing room for price fluctuations.
3. Trend Detection: The indicator determines the trend based on the price's relationship to the trailing stop, switching between long and short modes as the trend changes.
4. Visual Cues: The trailing stop line changes color to indicate the current trend (green for uptrends, red for downtrends) and briefly turns yellow during trend changes. Small circles below or above the price action further highlight the current trend direction.
5. Information Display: A label shows the current ATR value and trend direction, providing at-a-glance information to the trader.
6. Trend Change Highlights: The background briefly changes color when a trend change occurs, drawing attention to potential trading opportunities or exit points.
Usage:
- ATR Length: Set the number of periods for the ATR calculation. This is based on 1-minute data, so a value of 14 represents 14 minutes of data.
- ATR Multiplier: Adjust how far the trailing stop is placed from the price. Higher values create a wider stop, allowing for more price movement before triggering.
This indicator is particularly useful for traders who:
- Use multiple timeframes in their analysis and want consistent signals across charts.
- Seek a dynamic stop-loss method that adapts to market volatility.
- Want clear visual cues for trend direction and changes.
By providing a consistent ATR-based trailing stop across different timeframes, this indicator helps traders maintain a unified approach to their trading strategy, regardless of the chart interval they are viewing.
RSI Trail [UAlgo]The RSI Trail indicator is a technical analysis tool designed to assist traders in making informed decisions by utilizing the Relative Strength Index (RSI) and various moving average calculations. This indicator dynamically plots support and resistance levels based on RSI values, providing visual cues for potential bullish and bearish signals. The inclusion of a trailing stop mechanism allows traders to adapt to market volatility, ensuring optimal entry and exit points.
🔶 Key Features
Multiple Moving Average Types: Choose from Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), Running Moving Average (RMA), and McGinley Dynamic for diverse analytical approaches.
Configurable RSI Bounds: Tailor the RSI lower and upper bounds to your specific trading preferences, with default settings at 40 and 60.
Signals: The indicator determines bullish and bearish market states and plots corresponding signals on the chart.
Customizable Visualization: Options to display the midline and color candles based on market state enhance visual analysis.
Alerts: Integrated alert conditions notify you of bullish and bearish signals.
🔶 Calculations
The RSI Trail indicator calculates dynamic support and resistance levels using a combination of moving averages and the Relative Strength Index (RSI). It starts by computing a chosen moving average (SMA, EMA, WMA, RMA, or McGinley) over a period of 27 using the typical price (ohlc4).
The indicator then defines upper and lower bounds based on customizable RSI levels (default 40 and 60) and adjusts these bounds using the Average True Range (ATR) to account for market volatility. The upper bound is calculated by adding a volatility-adjusted value to the moving average, while the lower bound is found by subtracting this value. Bullish signals occur when the price crosses above the upper bound, and bearish signals when it falls below the lower bound.
The RSI Trail indicator also can be used to identify pullback opportunities. When the price high/low crosses above/below the calculated upper/lower bound, it indicates a potential pullback, suggesting a favorable point to enter a trade during a pullback.
🔶 Disclaimer
This indicator is for informational purposes only and should not be considered financial advice.
Always conduct your own research and due diligence before making any trading decisions. Past performance is not necessarily indicative of future results.
ATR Gerchik LightAverage True Range ( ATR ) is a technical analysis indicator that measures volatility in the market. ATR is a moving average of the true range over a period of time.
ATR calculation procedure:
1. Determine the true maximum - this is the highest of the current maximum and yesterday's closing price of the day.
2. Determine the true minimum - this is the smallest of the current minimum and yesterday's closing price.
3. Determine the true range - this is the distance between the true maximum and minimum.
4. We exclude extremely large candles (> x2 ATR) and extremely small ones (< 0.5 ATR) from the obtained true ranges.
5. We calculate the average for the selected period based on the remaining range.
6. We calculate the percentage of the current True Range relative to the average ATR value for the previous period.
Description:
If you analyze it yourself, you will see that 75-80% of the time, the instrument moves only 1 ATR per day. You must understand that if an instrument has, for example, moved 80% of its daily range, it is not advisable to purchase it. This is comparable to a car's fuel tank: if the tank is almost empty, the car won't go far. Most indicators that calculate ATR include anomalous candles, which give unreliable results and lead to incorrect decisions. Because of this, many traders prefer to calculate ATR on their own.
However, the Gerchik ATR indicator accounts for anomalous candles and filters out extremely large candles (> 2x ATR) and extremely small ones (< 0.5x ATR). Additionally, this indicator immediately shows the consumed “fuel” of the instrument as a percentage, so you don't have to calculate the distance traveled yourself. This allows you to make quick, informed decisions. If we see that the tank is almost empty, it is logical not to get into that car today. When building any strategy, you must rely on the average movement.
Key Features:
Anomalous Candle Filtering: Excludes extremely large and small candles to provide more reliable ATR values.
Consumed Fuel Indicator: Shows the percentage of the ATR consumed, helping traders quickly assess the remaining potential movement.
Daily Timeframe Focus: Designed specifically for use on daily charts for accurate long-term analysis.
Practical Applications:
Entry and Exit Points: Use the ATR to determine optimal entry and exit points by assessing market volatility and potential price movement.
Stop-Loss Placement: Calculate stop-loss levels based on ATR to ensure they are placed at appropriate distances, accounting for current market volatility.
Trend Confirmation: Use the percentage of ATR consumed to confirm the strength of a trend and decide whether to enter or exit trades.
Examples of Use:
Trend Following: During strong trends, ATR helps identify periods of increased volatility, signaling potential breakouts or reversals.
Range Trading: In ranging markets, ATR can highlight periods of low volatility, indicating consolidation and potential breakout zones.
Note: The indicator is displayed and works only on the daily timeframe!
The indicator was created according to the instructions, description of the functionality, and strategy of Mr. Gerchik. Thank you so much, Chief!
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Average True Range ( ATR , средний истинный диапазон) – это индикатор технического анализа, который измеряет волатильность на рынке. ATR представляет собой скользящее среднее истинного диапазона за определенный период времени.
Порядок расчета ATR:
1. Определяем истинный максимум – это наивысшее из текущего максимума и вчерашней цены закрытия дня.
2. Определяем истинный минимум – это наименьшее из текущего минимума и вчерашней цены закрытия.
3. Определяем истинный диапазон – это расстояние между истинным максимумом и минимумом.
4. Исключаем из полученных истинных диапазонов экстремально большие свечи (> x2 ATR) и экстремально маленькие (< 0.5 ATR).
5. Рассчитываем среднее за выбранный период исходя из оставшегося диапазона.
6 . Рассчитываем процент текущего истинного диапазона (True Range) относительно среднего значения ATR за предыдущий период.
Описание:
Если вы сами проанализируете, то увидите, что 75-80% времени инструмент ходит только 1 ATR. И вы должны понимать, что если инструмент внутри дня прошел, к примеру, 80% своего движения, то этот инструмент больше нельзя покупать. Это можно сравнить с баком машины: если бак почти пустой, машина далеко не уедет. Большинство индикаторов, которые рассчитывают ATR, производят расчет с паранормальными свечами. Это дает недостоверный результат и приводит к неверным решениям. Многие трейдеры из-за этого не используют готовые индикаторы и предпочитают считать ATR самостоятельно. Но индикатор ATR Gerchik учитывает паранормальные свечи и фильтрует экстремально большие свечи (> x2 ATR) и экстремально маленькие (< 0.5 ATR). Также этот индикатор сразу показывает израсходованный "бензин" инструмента в процентах. И вам не надо самостоятельно высчитывать пройденный путь. Вы можете быстро принимать правильные решения. Если мы видим, что бак почти пустой, логично не садиться в эту машину сегодня. Когда вы строите какую-то стратегию, вы должны обязательно полагаться на среднестатистическое движение.
Существует много стратегий, завязанных на ATR, которые учитывают волатильность инструмента, запас хода, точки разворота, места выставления стоп-лоссов (SL) и тейк-профитов (TP) и другие факторы. Я не буду останавливаться на них, так как каждый может найти описание этих стратегий и использовать их на свой выбор.
Индикатор отображается и работает только на дневном таймфрейме!
Индикатор создан по наставлениям, описанию функционала и стратегии господина Герчика. Огромное спасибо, Шеф!
ATR Price Range Prediction V.2### ATR Price Range Prediction V.2
This script calculates the expected high and low prices for the current day based on the Average True Range (ATR) and displays the proportion of days where the daily range (high - low) is greater than or equal to the ATR. Additionally, the script provides an option to adjust the size of the text displayed in the top-right corner of the chart.
#### How It Works
1. **ATR Calculation**: The script calculates the ATR for a specified period (`atrPeriod`). ATR is a measure of volatility that represents the average range between the high and low prices over a specified number of periods.
2. **Expected High and Low Calculation**:
- **Expected High**: Calculated by adding the ATR value to the low price of the current day.
- **Expected Low**: Calculated by subtracting the ATR value from the high price of the current day.
3. **Proportion Calculation**: The script calculates the proportion of days where the daily range (high - low) is greater than or equal to the ATR value. This proportion is updated in real-time as new data comes in.
4. **Table Display**: Instead of displaying labels on each candle, the script shows the expected high, expected low, and the calculated proportion in a table located at the top-right corner of the chart. The size of the text in this table can be adjusted using the `Table Size` input.
5. **Color Coding**: The script changes the color of the bars to yellow if the daily range is greater than or equal to the ATR value, making it easy to identify these bars visually.
#### How to Use
- **ATR Period (`atrPeriod`)**: Adjust the period for the ATR calculation using the input parameter. The default value is 14.
- **Table Size (`tableSizeOption`)**: Choose the size of the text displayed in the table. Options include `tiny`, `small`, `normal`, `large`, and `huge`.
- **Expected High and Low**: Use the green and red lines to identify potential target prices or stop-loss levels for your trades. The green line represents the expected high, and the red line represents the expected low.
- **Proportion**: The table in the top-right corner of the chart shows the proportion of days where the daily range is greater than or equal to the ATR value. This can provide insight into the volatility of the asset.
- **Color Coding**: Yellow bars indicate days where the daily range is greater than or equal to the ATR value.
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### ภาษาไทย
### ATR คาดการณ์ราคาสูงสุดและต่ำสุด พร้อมสัดส่วน
สคริปต์นี้คำนวณราคาสูงสุดและต่ำสุดที่คาดการณ์สำหรับวันปัจจุบันโดยอิงจากค่าเฉลี่ยช่วงที่แท้จริง (ATR) และแสดงสัดส่วนของวันที่ช่วงราคาต่อวัน (สูง - ต่ำ) มากกว่าหรือเท่ากับค่า ATR นอกจากนี้ยังมีตัวเลือกในการปรับขนาดข้อความที่แสดงในกล่องข้อความมุมขวาบนของกราฟ
#### วิธีการทำงาน
1. **การคำนวณ ATR**: สคริปต์คำนวณค่า ATR สำหรับช่วงเวลาที่กำหนด (`atrPeriod`) ATR เป็นมาตรวัดความผันผวนที่แสดงช่วงเฉลี่ยระหว่างราคาสูงสุดและต่ำสุดในช่วงเวลาที่กำหนด
2. **การคำนวณราคาสูงสุดและต่ำสุดที่คาดการณ์**:
- **ราคาสูงสุดที่คาดการณ์**: คำนวณโดยการบวกค่า ATR กับราคาต่ำสุดของวันปัจจุบัน
- **ราคาต่ำสุดที่คาดการณ์**: คำนวณโดยการลบค่า ATR จากราคาสูงสุดของวันปัจจุบัน
3. **การคำนวณสัดส่วน**: สคริปต์คำนวณสัดส่วนของวันที่ช่วงราคาต่อวัน (สูง - ต่ำ) มากกว่าหรือเท่ากับค่า ATR สัดส่วนนี้จะอัปเดตแบบเรียลไทม์เมื่อมีข้อมูลใหม่เข้ามา
4. **การแสดงผลในตาราง**: แทนที่จะแสดงป้ายกำกับบนแท่งเทียนแต่ละแท่ง สคริปต์จะแสดงราคาสูงสุดที่คาดการณ์ ราคาต่ำสุดที่คาดการณ์ และสัดส่วนที่คำนวณในตารางที่มุมขวาบนของกราฟ โดยสามารถปรับขนาดข้อความในตารางได้
5. **การใช้สี**: สคริปต์จะเปลี่ยนสีของแท่งเทียนเป็นสีเหลืองหากช่วงราคาต่อวันมากกว่าหรือเท่ากับค่า ATR ทำให้สามารถระบุแท่งเทียนเหล่านี้ได้ง่ายขึ้น
#### วิธีการใช้งาน
- **ATR Period (`atrPeriod`)**: ปรับช่วงเวลาสำหรับการคำนวณ ATR โดยใช้พารามิเตอร์การป้อนค่า ค่าเริ่มต้นคือ 14
- **Table Size (`tableSizeOption`)**: เลือกขนาดข้อความที่แสดงในตาราง ตัวเลือกได้แก่ `tiny`, `small`, `normal`, `large`, และ `huge`
- **ราคาสูงสุดและต่ำสุดที่คาดการณ์**: ใช้เส้นสีเขียวและสีแดงเพื่อระบุราคาที่เป็นเป้าหมายหรือระดับการหยุดขาดทุนสำหรับการซื้อขายของคุณ เส้นสีเขียวแสดงถึงราคาสูงสุดที่คาดการณ์และเส้นสีแดงแสดงถึงราคาต่ำสุดที่คาดการณ์
- **สัดส่วน**: ตารางที่มุมขวาบนของกราฟแสดงสัดส่วนของวันที่ช่วงราคาต่อวันมากกว่าหรือเท่ากับค่า ATR ซึ่งสามารถให้ข้อมูลเชิงลึกเกี่ยวกับความผันผวนของสินทรัพย์
- **การใช้สี**: แท่งเทียนสีเหลืองบ่งบอกถึงวันที่ช่วงราคาต่อวันมากกว่าหรือเท่ากับค่า ATR
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ATR Bands with Optional Risk/Reward Colors█ OVERVIEW
This indicator projects ATR bands and, optionally, colors them based on a risk/reward advantage for those who trade breakouts/breakdowns using moving averages as partial or full exit points.
█ DEFINITIONS
► True Range
The True Range is a measure of the volatility of a financial asset and is defined as the maximum difference among one of the following values:
- The high of the current period minus the low of the current period.
- The absolute value of the high of the current period minus the closing price of the previous period.
- The absolute value of the low of the current period minus the closing price of the previous period.
► Average True Range
The Average True Range was developed by J. Welles Wilder Jr. and was introduced in his 1978 book titled "New Concepts in Technical Trading Systems". It is calculated as an average of the true range values over a certain number of periods (usually 14) and is commonly used to measure volatility and set stop-loss and profit targets (1).
For example, if you are looking at a daily chart and you want to calculate the 14-day ATR, you would take the True Range of the previous 14 days, calculate their average, and this would be the ATR for that day. The process is then repeated every day to obtain a series of ATR values over time.
The ATR can be smoothed using different methods, such as the Simple Moving Average (SMA), the Exponential Moving Average (EMA), or others, depending on the user's preferences or analysis needs.
► ATR Bands
The ATR bands are created by adding or subtracting the ATR from a reference point (usually the closing price). This process generates bands around the central point that expand and contract based on market volatility, allowing traders to assess dynamic support and resistance levels and to adapt their trading strategies to current market conditions.
█ INDICATOR
► ATR Bands
The indicator provides all the essential parameters for calculating the ATR: period length, time frame, smoothing method, and multiplier.
It is then possible to choose the reference point from which to create the bands. The most commonly used reference points are Open, High, Low, and Close, but you can also choose the commonly used candle averages: HL2, HLC3, HLCC4, OHLC4. Among these, there is also a less common "OC2", which represents the average of the candle body. Additionally, two parameters have been specifically created for this indicator: Open/Close and High/Low.
With the "Open/Close" parameter, the upper band is calculated from the higher value between Open and Close, while the lower one is calculated from the lower value between Open and Close. In the case of bullish candles, therefore, the Close value is taken as the starting point for the upper band and the Open value for the lower one; conversely, in bearish candles, the Open value is used for the upper band and the Close value for the lower band. This setting can be useful for precautionally generating broader bands when trading with candlesticks like hammers or inverted hammers.
The "High/Low" parameter calculates the upper band starting from the High and the lower band starting from the Low. Among all the available options, this one allows drawing the widest bands.
Other possible options to improve the drawing of ATR bands, aligning them with the price action, are:
• Doji Smoothing: When the current candle is a doji (having the same Open and Close price), the bands assume the values they had on the previous candle. This can be useful to avoid steep fluctuations of the bands themselves.
• Extend to High/Low: Extends the bands to the High or Low values when they exceed the value of the band.
• Round Last Cent: Expands the upper band by one cent if the price ends with x.x9, and the lower band if the price ends with x.x1. This function only works when the asset's tick is 0.01.
► Risk/Reward Advantage
The indicator optionally colors the ATR bands after setting a breakpoint, one or two risk/reward ratios, and a series of moving averages. This function allows you to know in advance whether entering a trade can provide an advantage over the risk. The band is colored when the ratio between the distance from the break point to the band and the distance from the break point to the first available moving average reaches at least the set ratio value. It is possible to set two colorings, one for a minimum risk/reward ratio and one for an optimal risk/reward ratio.
The break point can be chosen between High/Low (High in case of breakout, Low in case of breakdown) or Open/Close (on breakouts, Close with bullish candles or Open with bearish candles; on breakdowns, Close with bearish candles or Open with bullish candles).
It is possible to choose up to 10 moving averages of various types, including the VWAP with the Anchor Period (2).
Depending on the "Price to MA" setting, the bands can be individually or simultaneously colored.
By selecting "Single Direction," the risk/reward calculation is performed only when all moving averages are above or below the break point, resulting in only one band being colored at a time. For this reason, when the break point is in between the moving averages, the calculation is not executed. This setting can be useful for strategies involving price movement from a level towards a series of specific moving averages (for example, in reversals starting from a certain level towards the VWAP with possible partial take profits on some previous moving averages, or simply in trend following towards one or more moving averages).
Choosing "Both Directions" the risk/reward ratio is calculated based on the first available moving averages both above and below the price. This setting is useful for those who operate in range bound markets or simply take advantage of movements between moving averages.
█ NOTE
This script may not be suitable for scalping strategies that require immediate entries due to the inability to know the ATR of a candle in advance until its closure. Once the candle is closed, you should have time to place a stop or stop-limit order, so your strategy should not anticipate an immediate start with the next candle. Even more conveniently, if your strategy involves an entry on a pullback, you can place a limit order at the breakout level.
(1) www.tradingview.com
(2) For convenience, the code for the Anchor Period has been entirely copied from the VWAP code provided by TradingView.
Turtle Trader StrategyTurtle Trader Strategy :
Introduction :
This strategy is based on the well known « Turtle Trader Strategy », that has proven itself over the years. It sends long and short signals with pyramid orders of up to 5, meaning that the strategy can trigger up to 5 orders in the same direction. Good risk and money management.
It's important to note that the strategy combines 2 systems working together (S1 and S2). Let’s describe the specific features of this strategy.
1/ Position size :
Position size is very important for turtle traders to manage risk properly. This position sizing strategy adapts to market volatility and to account (gains and losses). It’s based on ATR (Average True Range) which can also be called « N ». Its length is per default 20.
ATR(20) = (previous_atr(20)*19 + actual_true_range)/20
The number of units to buy is :
Unit = 1% * account/(ATR(20)*dollar_per_point)
where account is the actual account value and dollar_per_point is the variation in dollar of the asset with a 1 point move.
Depending on your risk aversion, you can increase the percentage of your account, but turtle traders default to 1%. If you trade contracts, units must be rounded down by default.
There is also an additional rule to reduce the risk if the value of the account falls below the initial capital : in this case and only in this case, account in the unit formula must be replace by :
account = actual_account*actual_account/initial capital
2/ Open a position :
2 systems are working together :
System 1 : Entering a new 20 day breakout
System 2 : Entering a new 55 day breakout
A breakout is a new high or new low. If it’s a new high, we open long position and vice versa if it’s a new low we enter in short position.
We add an additional rule :
System 1 : Breakout is ignored if last long/short position was a winner
System 2 : All signals are taken
This additional rule allows the trader to be in the major trends if the system 1 signal has been skipped. If a signal for system 1 has been skipped, and next candle is also a new 20 day breakout, S1 doesn’t give a signal. We have to wait S2 signal or wait for a candle that doesn’t make a new breakout to reactivate S1.
3/ Pyramid orders :
Turtle Strategy allows us to add extra units to the position if the price moves in our favor. I've configured the strategy to allow up to 5 orders to be added in the same direction. So if the price varies from 0.5*ATR(20) , we add units with the position size formula. Note that the value of account will be replaced by "remaining_account", i.e. the cash remaining in our account after subtracting the value of open positions.
4/ Stop Loss :
We set a stop loss at 1.5*ATR(20) below the entry price for longs and above the entry price for shorts. If pyramid units are added, the stop is increased/decreased by 0.5*ATR(20). Note that if SL is configured for a loss of more than 10%, we set the SL to 10% for the first entry order to avoid big losses. This configuration does not work for pyramid orders as SL moves by 0.5*ATR(20).
5/ Exit signals :
System 1 :
Exit long on a 10 day low
Exit short on a 10 day high
System 2 :
Exit long on a 20 day low
Exit short on a 20 day high
6/ What types of orders are placed ?
To enter in a position, stop orders are placed meaning that we place orders that will be automatically triggered by the signal at the exact breakout price. Stop loss and exit signals are also stop orders. Pyramid orders are market orders which will be triggered at the opening of the next candle to avoid repainting.
PARAMETERS :
Risk % of capital : Percentage used in the position size formula. Default is 1%
ATR period : ATR length used to calculate ATR. Default is 20
Stop ATR : Parameters used to fix stop loss. Default is 1.5 meaning that stop loss will be set at : buy_price - 1.5*ATR(20) for long and buy_price + 1.5*ATR(20) for short. Turtle traders default is 2 but 1.5 is better for cryptocurrency as there is a huge volatility.
S1 Long : System 1 breakout length for long. Default is 20
S2 Long : System 2 breakout length for long. Default is 55
S1 Long Exit : System 1 breakout length to exit long. Default is 10
S2 Long Exit : System 2 breakout length to exit long. Default is 20
S1 Short : System 1 breakout length for short. Default is 15
S2 Short : System 2 breakout length for short. Default is 55
S1 Short Exit : System 1 breakout length to exit short. Default is 7
S2 Short Exit : System 2 breakout length to exit short. Default is 20
Initial capital : $1000
Fees : Interactive Broker fees apply to this strategy. They are set at 0.18% of the trade value.
Slippage : 3 ticks or $0.03 per trade. Corresponds to the latency time between the moment the signal is received and the moment the order is executed by the broker.
Pyramiding : Number of orders that can be passed in the same direction. Default is 5.
Important : Turtle traders don't trade crypto. For this specific asset type, I modify some parameters such as SL and Short S1 in order to maximize return while limiting drawdown. This strategy is the most optimal on BINANCE:BTCUSD in 1D timeframe with the parameters set per default. If you want to use this strategy for a different crypto please adapt parameters.
NOTE :
It's important to note that the first entry order (long or short) will be the largest. Subsequent pyramid orders will have fewer units than the first order. We've set a maximum SL for the first order of 10%, meaning that you won't lose more than 10% of the value of your first order. However, it is possible to lose more on your pyramid orders, as the SL is increased/decreased by 0.5*ATR(20), which does not secure a loss of more than 10% on your pyramid orders. The risk remains well managed because the value of these orders is less than the value of the first order. Remain vigilant to this small detail and adjust your risk according to your risk aversion.
Enjoy the strategy and don’t forget to take the trade :)
ATR StopThe "ATR Stop" indicator is designed to provide traders with insights into potential stop levels based on Average True Range (ATR) calculations specifically tailored for profitable (green candles) and unprofitable (red candles) price movements. This tool aims to assist traders in identifying potential stop levels that adjust dynamically based on the volatility of distinct market conditions.
The indicator functions by calculating two types of ATR: one for profitable movements and the other for unprofitable movements. The Average True Range is calculated separately for green and red candles, allowing users to assess potential stop levels more accurately based on the nature of price movements.
Key features of the "ATR Stop" indicator include:
Custom ATR Calculation: It calculates the ATR for profitable (green) and unprofitable (red) movements separately, considering only specific candle types based on their closing price relative to their opening price.
Dynamic Multiplier: Users can adjust the multiplier to fine-tune the sensitivity of the ATR-based stop levels, accommodating different risk preferences and market conditions.
Clear Visualization: The indicator plots the ATR levels for profitable (green) and unprofitable (red) movements one candle ahead on the chart, providing a visual representation of potential stop levels.
To use the indicator effectively, traders can adjust the ATR length and multiplier parameters based on their trading strategies and risk management preferences. By considering distinct price movements, this tool can assist in setting more informed stop levels in varying market conditions.
Please note that while the "ATR Stop" indicator can be a valuable addition to a trader's toolbox, it should be used in conjunction with other technical analysis tools and risk management strategies to make well-informed trading decisions.
Gap SMAGap SMA Indicator - Analyzing Price Gaps with Moving Averages
Description:
The Gap SMA (Simple Moving Average) indicator is a powerful tool designed to analyze price gaps, a phenomenon occurring when the market opens significantly higher or lower than the previous session's close. These gaps often signify abrupt shifts in market sentiment, driven by fundamental news, earnings reports, or overnight geopolitical events.
This indicator calculates and visualizes the average gap-up and gap-down based on historical data, aiding traders in identifying potential support or resistance levels driven by gap behavior.
What is a Gap?
In financial markets, a gap occurs when there is a notable difference (upward or downward) between the previous session's close and the current session's open. Gaps can be categorized as gap-ups (when the current open is higher than the previous close) or gap-downs (when the current open is lower than the previous close).
Key Features:
User-Defined Parameters: Adjust the number of gaps considered and a multiplier factor for precise customization.
Average Gap Visualization: Plotting lines representing the moving average of gap-ups and gap-downs.
Alert System: Alerts notify traders when the close price crosses above/below the average gap lines, offering potential entry or exit signals.
This tool is particularly useful for swing traders and investors interested in understanding historical gap patterns and integrating this information into their decision-making process. It can assist in determining potential stop-loss levels, defining entry or exit points, and gauging market sentiment based on gap behavior.
Feel free to experiment with various settings and timeframes to suit your trading strategy and risk tolerance. Your feedback and suggestions for further enhancements are highly appreciated!
Candle Pivot and Stop LossThe script plot upside and down side stop loss using pivot point and trure range.
The True Range, representing market volatility, is determined by finding the maximum value among the differences between the previous high-low, high-close, and low-close. The Downside Stop Loss is calculated by adding the True Range to the Pivot Point, while the Upside Stop Loss is calculated by subtracting the True Range from the Pivot Point.
These levels are plotted on the chart in blue (Pivot Point), red (Downside Stop Loss), and green (Upside Stop Loss), providing traders with essential reference points for their trading strategies.
The provided Pine Script calculates key trading levels for the current candle, including the Pivot Point, Downside Stop Loss, and Upside Stop Loss. The Pivot Point is computed as the average of the previous candle's high, low, and close prices.
Breaks and Retests with Volatility Stop [HG]The "Breaks and Retests with Volatility Stop " indicator is a powerful tool designed to assist traders in identifying key support and resistance levels, breakouts, retests, and potential trend reversals. This indicator combines two essential components: support and resistance detection, and a Volatility Stop indicator for improved risk management. Below are the key features of this indicator:
**Support and Resistance Detection:**
- **Lookback Range:** Users can customize the lookback range, determining how many bars are considered when identifying support and resistance levels. This allows for flexibility in capturing short-term or longer-term levels.
- **Bars Since Breakout:** The indicator helps traders spot retests by allowing them to specify the number of bars that should occur since a breakout before considering it a potential retest.
- **Retest Detection Limiter:** Traders can set a limit on how many bars should be actively checked during a potential retest event. This feature prevents retest alerts from occurring too late, ensuring more accurate results.
- **Breakouts and Retests:** Users can choose to display or hide breakout and retest events separately, tailoring the indicator to their specific trading strategy.
- **Repainting Options:** The indicator offers three repainting options: "On," "Off: Candle Confirmation," and "Off: High & Low." This provides flexibility in choosing the repainting behavior that suits your trading style.
**Styling Options:**
- **Outline and Extend:** Traders can customize the appearance of support and resistance boxes by selecting outline styles and extension preferences.
- **Label Types and Sizes:** The indicator offers two label types, "Full" and "Simple," allowing traders to choose the level of detail displayed on the chart. Additionally, users can adjust the label size for better visibility.
- **Customizable Colors:** Support and resistance levels can be color-coded to match your preferred charting style, enhancing visibility and clarity.
- **Override Text Color:** If desired, traders can override the text color for labels, providing further customization of the indicator's appearance.
**Alerts and Notifications:**
- The indicator generates various alerts and notifications to keep traders informed about critical market events, including:
- New Support and Resistance Levels
- Support and Resistance Breakouts
- Support and Resistance Retests
- Potential Support and Resistance Retests
**Volatility Stop Indicator:**
- The "Breaks and Retests with Volatility Stop " indicator also includes a Volatility Stop component, which helps traders manage risk by indicating potential stop-loss levels based on market volatility. The Volatility Stop is color-coded to reflect the current trend direction, making it easy to identify potential trend reversals.
In summary, this TradingView indicator is a comprehensive tool designed to enhance your technical analysis and trading decisions. It provides support and resistance levels, breakout and retest alerts, and incorporates a Volatility Stop indicator for risk management, making it a valuable addition to any trader's toolkit.
BTFD strategy [3min]Hello
I would like to introduce a very simple strategy to buy lows and sell with minimal profit
This strategy works very well in the markets when there is no clear trend and in other words, the trend going sideways
this strategy works very well for stable financial markets like spx500, nasdaq100 and dow jones 30
two indicators were used to determine the best time to enter the market:
volume + rsi values
volume is usually the number of stocks or contracts traded over a certain period of time. Thus, it is an important indicator of market activity and liquidity. Each transaction constitutes an individual exchange between the buyer and the seller and constitutes the trading volume of a given instrument or asset.
The RSI measures the strength of uptrends versus downtrends. The signal is the entry or exit of the indicator value of the oversold or overbought level of the market. It is assumed that a value below or equal 30 indicates an oversold level of the market, and an RSI value above or equal 70 indicates an overbought level.
the strategy uses a maximum of 5 market entries after each candle that meets the condition
uses 5 target point levels to close the position:
tp1= 0.4%
tp2= 0.6%
tp3= 0.8%
tp4= 1.0%
tp5= 1.2%
after reaching a given profit value, a piece of the position is cut off gradually, where tp5 closes 100% of the remaining position
each time you enter a position, a stop loss of 5.0% is set, which is quite a high value, however, when buying each, sometimes very active downward price movement, you need a lot of space for market decisions in which direction it wants to go
to determine the level of stop loss and target point I used a piece of code by RafaelZioni , here is the script from which a piece of code was taken
this strategy is used for automation, however, I would recommend brokers that have the lowest commission values when opening and closing positions, because the strategy generates very high commission costs
Enjoy and trade safe ;)
Trailing Stop Loss SuperTrendThe Trailing Stop Loss SuperTrend indicator is a popular technical analysis tool used by traders to identify trends and determine optimal entry and exit points in financial markets. This indicator combines elements of the SuperTrend indicator and trailing stop loss orders to provide valuable insights into market trends and potential reversals. By incorporating Average True Range (ATR) calculations, it adapts to market volatility, making it suitable for various trading strategies. Let's explore the key use cases and benefits of the Trailing Stop Loss SuperTrend indicator:
Trend Identification:
The primary purpose of the Trailing Stop Loss SuperTrend indicator is to identify market trends. It plots two lines on the chart: an upper band (referred to as the "up" line) and a lower band (referred to as the "dn" line). The direction of these bands helps traders determine the prevailing trend. When the price is above the upper band, it suggests a bullish trend, and when it is below the lower band, it indicates a bearish trend.
Entry and Exit Signals:
The Trailing Stop Loss SuperTrend indicator generates entry and exit signals based on trend changes. When the trend changes from bearish to bullish, a buy signal is triggered, indicating a potential entry point. Conversely, when the trend changes from bullish to bearish, a sell signal is generated, suggesting a possible exit or short-selling opportunity. These signals can be used in conjunction with other trading strategies or indicators to enhance trading decisions.
Trailing Stop Loss Orders:
One of the distinguishing features of the Trailing Stop Loss SuperTrend indicator is its ability to incorporate trailing stop loss orders. Traders can use the indicator's upper and lower bands as trailing stop levels to protect profits and manage risk. For example, in a bullish trend, the stop loss level can be set at the lower band, and as the price rises, the stop loss level trails along with it, locking in profits and reducing potential losses.
Volatility Adaptation:
By incorporating the ATR (Average True Range) calculation, the Trailing Stop Loss SuperTrend indicator adjusts its sensitivity to market volatility. A higher ATR multiplier widens the distance between the price and the bands, accommodating higher volatility, while a lower multiplier tightens the bands during periods of lower volatility. This adaptability makes the indicator versatile and suitable for various market conditions.
Alerts and Notifications:
The Trailing Stop Loss SuperTrend indicator provides the ability to set alerts for specific events, such as trend changes, buy signals, and sell signals. Traders can receive real-time notifications via email, SMS, or on-platform alerts, ensuring they stay informed about potential trading opportunities and important market developments.
Conclusion:
The Trailing Stop Loss SuperTrend indicator is a valuable tool for traders seeking to identify trends, generate entry and exit signals, and effectively manage risk. Its ability to adapt to market volatility and incorporate trailing stop loss orders enhances trading strategies and decision-making. By combining the SuperTrend concept with trailing stop loss functionality, this indicator provides traders with a comprehensive approach to trend analysis and risk management. Whether used in isolation or in conjunction with other indicators, the Trailing Stop Loss SuperTrend indicator offers a powerful tool for navigating the dynamic world of financial markets.
VolatilityThis script shows three different calculations for volatility.
All three can be used as Stop-Loss...
- Absolute Price Changes
- Maximum Price Fluctuation
- and every one should know Average True Range
The script has a dark and light theme.
And the colors can be changed and each can be deactivated.
On top of that I stumbled over the fact that when MPF crosses over APC
this could result in a significant change in price and could also be used as an entry or exit.
This is also highlighted by default. You can change its background color and you can deactivate it too.
ACP measures volatility over most recent close prices.
This is excellent for comparing volatility.
It includes both frequency and magnitude.
In other words: Sum of differences between second to last close price and last close price as absolute value for 'n' bars.
MPF measures volatility over most recent candles, which could be used as an estimate of risk.
It may also be effective as the basis for a stop-loss or take-profit,
like the ATR but it ignores the frequency of directional changes within the time interval.
In other words: The difference between the highest high and lowest low over 'n' bars.
When you don't know what the ATR is then you can look at this link .
Smoother Momentum Stops [Loxx]Smoother Momentum Stops (SMS) is a dynamic tool that combines the logic of momentum and moving averages to create an overlay of the market price and generate potential trade signals. The original idea for this indicator comes from the beloved and esteemed trading indicator guru Mladen Rakic.
Understanding the Framework
The SMS incorporates various aspects of technical analysis, including momentum calculation, several types of moving averages, and an intelligent stop-and-reverse system that determines when to enter and exit trades.
The indicator initiates by defining the color scheme for visualization, specifically green for bullish trends and red for bearish trends. It further utilizes the 'smmom' and 'fema' functions to calculate smoothed momentum and fast exponential moving averages, respectively. The values computed by these functions are central to the signal generation process.
Momentum Calculation
The 'smmom' function serves to calculate a smoother momentum by taking a source (such as the closing price) and a period as inputs. This function employs a complex algorithm involving exponential moving averages (EMA), wherein two EMAs are calculated with different smoothing factors, and the difference between the two results is returned as the output. This smooth momentum calculation assists in eliminating unnecessary noise from the market and delivers more reliable momentum readings.
Moving Averages Computation
One key feature of the SMS is the ability to select from five different moving average types: Exponential Moving Average (EMA), Fast Exponential Moving Average (FEMA), Linear Weighted Moving Average (LWMA), Simple Moving Average (SMA), and Smoothed Moving Average (SMMA). The 'variant' function assigns the chosen method to the '_avg' variable, which is then used in the trade signal logic.
Trade Signal Generation
SMS employs a complex yet robust mechanism for generating trade signals. A stop-and-reverse system is established, which works on the principle of momentum. If the smoothed momentum is positive, an upper stop is determined and if the momentum is negative, a lower stop is defined.
The process continues by defining long and short entry conditions. The indicator goes long when an upper stop exists, and the previous bar had a lower stop, signifying a shift in momentum. The short entry condition is the opposite: the indicator goes short when a lower stop exists, and the previous bar had an upper stop. Alerts are generated for each of these conditions, helping traders to take timely action.
Visual Representation and UI Options
In terms of visual representation, the indicator plots upper and lower stops, employing green color for upper and red for lower stops. If the option to color bars is chosen, the entire bar is colored green or red, based on whether an upper or lower stop exists. This feature allows traders to visually comprehend market conditions better. Support and reisstance levels are also provided for visual context.
Conclusion
The Smoother Momentum Stops indicator is a potent tool for traders seeking to optimize their trading strategies. It blends the fundamentals of momentum and moving averages, resulting in a robust system that provides clear, reliable, and timely trading signals. By adjusting the smoothing type and period parameters, traders can customize the indicator to fit various market conditions and asset types, thereby adding a layer of flexibility to their trading strategies.
The use of a stop-and-reverse system adds a layer of risk management by offering precise entry and exit points based on momentum shifts. These stops are not just mere levels of entries or exits, but they reflect the undercurrent of the market's momentum, thus providing a dynamic framework to make informed trading decisions.
Additionally, the SMS indicator offers visual simplicity. The color-coded bars and distinct symbols for long and short positions make it easier for traders to interpret the signals and market direction quickly. Combined with the alert system, it ensures that traders never miss an important trading opportunity.
Finally, the power of the SMS indicator lies in its adaptability and comprehensive approach. By providing a selection of moving averages and an intelligent momentum-based system, it encapsulates various aspects of market behavior. As such, it is a useful tool not just for momentum traders, but for any trader who understands the significance of moving averages and momentum in predicting market movements.
In conclusion, the Smoother Momentum Stops indicator stands as an innovative, adaptable, and powerful tool for the modern trader. Its blend of flexibility, dynamic risk management, and straightforward visualization offer a comprehensive solution for traders looking to navigate the complex world of financial markets. With a detailed understanding of its workings as presented in this essay, traders can harness its full potential to optimize their strategies, manage risk, and achieve their trading objectives.
Strat Trail Stop by AlexsOptionsWhat does this script do?
This script plots previous aggregation highs or lows based on the trend of the candles.
Scenario 1 -> Up Trend
If the previous high of a candle is violated the green trail line will trail using the lows of the prior candle. It will continue until a previous low is violated. Once a previous low is violated it will switch to scenario 2
Scenario 2 -> Down Trend
If the previous low of a candle is violated the red trail line will trail using the highs of the prior candle. It will continue until a previous high is violated. Once a previous high is violated it will switch to scenario 1
This indicator has two trails. One is expected to be a lower timeframe the other a higher timeframe.
The higher timeframe has an option to instead use the open of the higher timeframe instead of the trail logic in the scenarios above.
If selected it will plot the open of the designated timeframe, the color will be green if trading above and red if trading below
This script is best used in conjunction with a good understanding of #TheStrat trading strategy. You are then able to create alerts for when your positions fall out of favor.
SuperTrend with Chebyshev FilterModified Super Trend with Chebyshev Filter
The Modified Super Trend is an innovative take on the classic Super Trend indicator. This advanced version incorporates a Chebyshev filter, which significantly enhances its capabilities by reducing false signals and improving overall signal quality. In this post, we'll dive deep into the Modified Super Trend, exploring its history, the benefits of the Chebyshev filter, and how it effectively addresses the challenges associated with smoothing, delay, and noise.
History of the Super Trend
The Super Trend indicator, developed by Olivier Seban, has been a popular tool among traders since its inception. It helps traders identify market trends and potential entry and exit points. The Super Trend uses average true range (ATR) and a multiplier to create a volatility-based trailing stop, providing traders with a dynamic tool that adapts to changing market conditions. However, the original Super Trend has its limitations, such as the tendency to produce false signals during periods of low volatility or sideways trading.
The Chebyshev Filter
The Chebyshev filter is a powerful mathematical tool that makes an excellent addition to the Super Trend indicator. It effectively addresses the issues of smoothing, delay, and noise associated with traditional moving averages. Chebyshev filters are named after Pafnuty Chebyshev, a renowned Russian mathematician who made significant contributions to the field of approximation theory.
The Chebyshev filter is capable of producing smoother, more responsive moving averages without introducing additional lag. This is possible because the filter minimizes the worst-case error between the ideal and the actual frequency response. There are two types of Chebyshev filters: Type I and Type II. Type I Chebyshev filters are designed to have an equiripple response in the passband, while Type II Chebyshev filters have an equiripple response in the stopband. The Modified Super Trend allows users to choose between these two types based on their preferences.
Overcoming the Challenges
The Modified Super Trend addresses several challenges associated with the original Super Trend:
Smoothing: The Chebyshev filter produces a smoother moving average without introducing additional lag. This feature is particularly beneficial during periods of low volatility or sideways trading, as it reduces the number of false signals.
Delay: The Chebyshev filter helps minimize the delay between price action and the generated signal, allowing traders to make timely decisions based on more accurate information.
Noise Reduction: The Chebyshev filter's ability to minimize the worst-case error between the ideal and actual frequency response reduces the impact of noise on the generated signals. This feature is especially useful when using the true range as an offset for the price, as it helps generate more reliable signals within a reasonable time frame.
The Great Replacement
The Modified Super Trend with Chebyshev filter is an excellent replacement for the original Super Trend indicator. It offers significant improvements in terms of signal quality, responsiveness, and accuracy. By incorporating the Chebyshev filter, the Modified Super Trend effectively reduces the number of false signals during low volatility or sideways trading, making it a more reliable tool for identifying market trends and potential entry and exit points.
In-Depth Guide to the Modified Super Trend Settings
The Modified Super Trend with Chebyshev filter offers a wide range of settings that allow traders to fine-tune the indicator to suit their specific trading styles and objectives. In this section, we will discuss each setting in detail, explaining its purpose and how to use it effectively.
Source
The source setting determines the price data used for calculations. The default setting is hl2, which calculates the average of the high and low prices. You can choose other price data sources such as close, open, or ohlc4 (average of open, high, low, and close prices) based on your preference.
Up Color and Down Color
These settings control the color of the trend line when the market is in an uptrend (up_color) and a downtrend (down_color). You can customize these colors to your liking, making it easier to visually identify the current market trend.
Text Color
This setting controls the color of the text displayed on the chart when using labels to indicate trend changes. You can choose any color that contrasts well with your chart background for better readability.
Mean Length
The mean_length setting determines the length (number of bars) used for the Chebyshev moving average calculation. A shorter length will make the moving average more responsive to price changes, while a longer length will produce a smoother moving average. It is crucial to find the right balance between responsiveness and smoothness, as a too-short length may generate false signals, while a too-long length might produce lagging signals. The default value is 64, but you can experiment with different values to find the optimal setting for your trading strategy.
Mean Ripple
The mean_ripple setting influences the Chebyshev filter's ripple effect in the passband (Type I) or stopband (Type II). The ripple effect represents small oscillations in the frequency response, which can impact the moving average's smoothness. The default value is 0.01, but you can experiment with different values to find the best balance between smoothness and responsiveness.
Chebyshev Type: Type I or Type II
The style setting allows you to choose between Type I and Type II Chebyshev filters. Type I filters have an equiripple response in the passband, while Type II filters have an equiripple response in the stopband. Depending on your preference for smoothness and responsiveness, you can choose the type that best fits your trading style.
ATR Style
The atr_style setting determines the method used for calculating the Average True Range (ATR). By default (false), it uses the traditional high-low range. When set to true, it uses the absolute difference between the open and close prices. You can choose the method that works best for your trading strategy and the market you are trading.
ATR Length
The atr_length setting controls the length (number of bars) used for calculating the ATR. Similar to the mean_length, a shorter length will make the ATR more responsive to price changes, while a longer length will produce a smoother ATR. The default value is 64, but you can experiment with different values to find the optimal setting for your trading strategy.
ATR Ripple
The atr_ripple setting, like the mean_ripple, influences the ripple effect of the Chebyshev filter used in the ATR calculation. The default value is 0.05, but you can experiment with different values to find the best balance between smoothness and responsiveness.
Multiplier
The multiplier setting determines the factor by which the ATR is multiplied before being added
Super Trend Logic and Signal Optimization
The Modified Super Trend with Chebyshev filter is designed to minimize false signals and provide a clear indication of market trends. It does so by using a combination of moving averages, Average True Range (ATR), and a multiplier. In this section, we will discuss the Super Trend's logic, its ability to prevent false signals, and the early warning crosses added to the indicator.
Super Trend Logic
The Super Trend's logic is based on a combination of the Chebyshev moving average and ATR. The Chebyshev moving average is a smooth moving average that effectively filters out market noise, while the ATR is a measure of market volatility.
The Super Trend is calculated by adding or subtracting a multiple of the ATR from the Chebyshev moving average. The multiplier is a user-defined value that determines the distance between the trend line and the price action. A larger multiplier results in a wider channel, reducing the likelihood of false signals but potentially missing out on valid trend changes.
Preventing False Signals
The Super Trend is designed to minimize false signals by maintaining its trend direction until a significant change in the market occurs. In a downtrend, the trend line will only decrease in value, and in an uptrend, it will only increase. This helps prevent false signals caused by temporary price fluctuations or market noise.
When the price crosses the trend line, the Super Trend does not immediately change its direction. Instead, it employs a safety logic to ensure that the trend change is genuine. The safety logic checks if the new trend line (calculated using the updated moving average and ATR) is more extreme than the previous one. If it is, the trend line is updated; otherwise, the previous trend line is maintained. This mechanism further reduces the likelihood of false signals by ensuring that the trend line only changes when there is a significant shift in the market.
Early Warning Crosses
To provide traders with additional insight, the Modified Super Trend with Chebyshev filter includes early warning crosses. These crosses are plotted on the chart when the price crosses the trend line without the safety logic. Although these crosses do not necessarily indicate a trend change, they can serve as a valuable heads-up for traders to monitor the market closely and prepare for potential trend reversals.
In conclusion, the Modified Super Trend with Chebyshev filter offers a significant improvement over the original Super Trend indicator. By incorporating the Chebyshev filter, this modified version effectively addresses the challenges of smoothing, delay, and noise reduction while minimizing false signals. The wide range of customizable settings allows traders to tailor the indicator to their specific needs, while the inclusion of early warning crosses provides valuable insight into potential trend reversals.
Ultimately, the Modified Super Trend with Chebyshev filter is an excellent tool for traders looking to enhance their trend identification and decision-making abilities. With its advanced features, this indicator can help traders navigate volatile markets with confidence, making more informed decisions based on accurate, timely information.
I11L - Risk Adjusted LeveragingThis trading system, called "I11L - Risk Adjusted Leveraging", is designed to manage trades based on the current market volatility relative to its historical average. The system calculates the target number of open trades based on the ATR (Average True Range) indicator and adjusts the leverage accordingly. The system opens and closes trades using a pyramiding approach, allowing multiple positions to be opened at the same time.
Here's a step-by-step explanation of the system:
1. Calculate the ATR with a 14-day period and normalize it by dividing it by the current closing price.
2. Calculate the 100-day simple moving average (SMA) of the normalized ATR.
3. Calculate the ratio of the normalized ATR to its 100-day SMA.
4. Determine the target leverage based on the inverse of the ratio (2 / ratio).
5. Calculate the target number of open trades by multiplying the target leverage by 5.
6. Plot the target number of open trades and the current number of open trades on the chart.
7. Check if there's an opportunity to buy (if the current number of open trades is less than the target) or close a trade (if the current number of open trades is more than the target plus 1).
8. If there's an opportunity to buy, open a long trade and add the trade's name to the openTrades array.
9. If there's an opportunity to close a trade and there are trades in the openTrades array, close the most recent trade by referencing the array and remove it from the array.
This system aims to capture trends in the market by dynamically adjusting the number of open trades and leverage based on the market's volatility. It uses an array to keep track of open trades, allowing for better control over the opening and closing of individual trades.
