Algo Bands [ProjeAdam]

2024년 12월 17일

OVERVIEW:

The Algo Bands [ProjeAdam] indicator is a technical analysis tool that calculates the highest, lowest, and average price levels over a user-defined number of bars. It generates buy and sell signals based on price interactions with these levels, visualizing them as bands on the chart. Additionally, the indicator provides multi-timeframe analysis and integrates alerts for timely trading decisions.


ALGORITHM:

1. Initialization and Function Definition
The Algo Bands indicator starts by defining functions to calculate critical price levels:
- High Band: A smoothed average of recent high price levels.
- Low Band: A smoothed average of recent low price levels.
- Average Band: The midpoint between the High Band and Low Band.
The smoothing process utilizes a Smoothed Moving Average (SMMA) to reduce noise and ensure accurate signal generation.

2. Inputs and Band Calculation
The indicator accepts customizable inputs for flexibility in trading strategies:
- Backward Length: The number of bars to consider for calculating high and low values.
- Number of Lines: Specifies how many recent high or low values are averaged.
- Smoothing Period: The length of the SMMA to smooth price data.
Using these inputs:
- The High Band is calculated as the smoothed average of the highest price values.
- The Low Band is calculated as the smoothed average of the lowest price values.
- The Average Band is the midpoint of the High and Low Bands.

3. Plotting the Bands
The Algo Bands indicator plots three main lines on the price chart:
- High Band: Plotted as a red step line, representing resistance levels.
- Low Band: Plotted as a green step line, indicating support levels.
- Average Band: Plotted as an orange line, showing the midpoint or equilibrium price.

4. Buy and Sell Conditions

• Sell Condition:

The indicator triggers a sell signal when either of the following conditions is met:
A. Crossunder Condition:
- The closing price crosses below the High Band.
- The candle closes below its open price, confirming bearish sentiment.
- The closing price remains below both the High Band and the previous bar's open price.
B. Rejection Condition:
- The high price exceeds the High Band during the bar.
- However, the closing price fails to hold above the High Band and closes lower than both the High Band and the open price.

• Buy Condition:

The indicator triggers a buy signal when either of the following conditions is met:
A. Crossover Condition:
- The closing price crosses above the Low Band.
- The candle closes above its open price, indicating bullish momentum.
- The closing price remains above both the Low Band and the previous bar's open price.
B. Rejection Condition:
- The low price dips below the Low Band during the bar.
- However, the closing price recovers and closes higher than both the Low Band and the open price.

5. Signal Visualization
The indicator visually represents buy and sell signals as follows:
- Sell Signals: Displayed as a red downward label (🔴) above the bar.
- Buy Signals: Displayed as a green upward label (🟢) below the bar.
The background colors between the bands also reflect market direction:
- Red for bearish trends.
- Green for bullish trends.

6. Alerts
The Algo Bands indicator includes customizable alerts to notify traders of trading signals:
- Alerts are triggered when Buy or Sell conditions are met.
- Integration with Telegram allows real-time notifications for immediate action.

7. Multi-Timeframe Analysis
The indicator supports analysis across multiple timeframes, including:
- 1 Hour
- 4 Hours
- Daily
It calculates the High and Low Bands for these timeframes to provide a comprehensive view of the market trend.


HOW DOES THE INDICATOR WORK?

1. Price Band Calculation:
- The highest and lowest price values are dynamically identified for a user-defined range.
- These values are smoothed using SMMA to produce the High Band and Low Band.
2. Signal Generation:
- Sell signals occur when the price crosses below or rejects the High Band.
- Buy signals occur when the price crosses above or rejects the Low Band.
3. Visualization:
- The bands are plotted on the chart to display resistance, support, and price equilibrium.
- Buy and Sell signals are marked with labels and color-coded backgrounds.
4. Alerts:
- Custom alerts notify traders in real time when signals are triggered.

BENEFITS OF THE ALGO BANDS INDICATOR:
- Trend Identification: Identifies support, resistance, and price equilibrium levels.
- Clear Buy/Sell Signals: Helps traders make timely entry and exit decisions.
- Noise Reduction: SMMA smoothing minimizes false signals.
- Multi-Timeframe Analysis: Provides insights across 1-hour, 4-hour, and daily timeframes.
- Customizable Parameters: Users can adjust settings for their trading style.
- Real-Time Alerts: Immediate notifications ensure timely actions.
- Visual Clarity: Labels and background colors enhance signal visibility.
- Ease of Use: Suitable for traders of all levels, from beginners to experts.

• If you have any ideas what to add to my work to add more sources or make calculations cooler, suggest in DM .

2024년 12월 17일

릴리즈 노트

• Solved bugs

2024년 12월 22일

릴리즈 노트

Solved bug for table