[blackcat] L1 Trend Follower with Whale Pump Detection

2020년 10월 3일

Level: 1

Background

One of the biggest differences between cryptocurrency and traditional financial markets is that cryptocurrency is based on blockchain technology. Individual investors can discover the direction of the flow of large funds through on-chain transfers. These large funds are often referred to as Whale. Whale can have a significant impact on the price movements of cryptocurrencies, especially Bitcoin . Therefore, how to monitor Whale trends is of great significance both in terms of fundamentals and technical aspects.

A trend reversal occurs when the direction of a stock (or a financial trading instrument) changes and moves back in the opposite direction. Uptrends that reverse into downtrends and downtrends that reverse into uptrends are examples of trend reversals.

Function

[blackcat] L1 Trend Follower with Whale Pump Detection utilizes fast line and slow line to describe the trend change. To confirm the trend reversal, whale pump detector is introduced.

Key Signal

trendfollower --> trend follower fast line
trendfollower reference 2 --> trend follower slow line
var8 --> whale pump detector


Pros and Cons

Pros:

1. stable and less noise for trend reversal due to alma()
2. use whale pump detector to confirm trend reversal


Cons:

1. cross zero long and short entry signal is not so stable
2. need adjust parameters for various markets and trading pairs


Remarks

NA

Readme

In real life, I am a prolific inventor. I have successfully applied for more than 60 international and regional patents in the past 12 years. But in the past two years or so, I have tried to transfer my creativity to the development of trading strategies. Tradingview is the ideal platform for me. I am selecting and contributing some of the hundreds of scripts to publish in Tradingview community. Welcome everyone to interact with me to discuss these interesting pine scripts.

The scripts posted are categorized into 5 levels according to my efforts or manhours put into these works.

Level 1 : interesting script snippets or distinctive improvement from classic indicators or strategy. Level 1 scripts can usually appear in more complex indicators as a function module or element.

Level 2 : composite indicator/strategy. By selecting or combining several independent or dependent functions or sub indicators in proper way, the composite script exhibits a resonance phenomenon which can filter out noise or fake trading signal to enhance trading confidence level.

Level 3 : comprehensive indicator/strategy. They are simple trading systems based on my strategies. They are commonly containing several or all of entry signal, close signal, stop loss, take profit, re-entry, risk management, and position sizing techniques. Even some interesting fundamental and mass psychological aspects are incorporated.

Level 4 : script snippets or functions that do not disclose source code. Interesting element that can reveal market laws and work as raw material for indicators and strategies. If you find Level 1~2 scripts are helpful, Level 4 is a private version that took me far more efforts to develop.

Level 5 : indicator/strategy that do not disclose source code. private version of Level 3 script with my accumulated script processing skills or a large number of custom functions. I had a private function library built in past two years. Level 5 scripts use many of them to achieve private trading strategy.

3월 24일

릴리즈 노트

█ OVERVIEW
The [blackcat] L1 Trend Follower with Whale Pump Detection indicator provides traders with insights into market trends and potential whale pump signals. It combines a trend-following mechanism with a detection system designed to identify significant buying pressure indicative of large trades.

█ FEATURES

• Utilizes custom functions to refine calculations such as finding the last non-NaN value and computing a weighted simple average.
• Implements a robust trend follower algorithm that considers multiple time frames and variables like volatility, RSI-like indicators, and adaptive moving averages.
• Incorporates a whale pump signal based on price variability relative to recent lows over extended periods.
• Highlights crossover points at critical levels (16.5, 20, 40) of the trend follower metric using colored candlesticks for quick visual identification of potential trade entries/exits.

█ HOW TO USE

1 — Understand the primary outputs:
– A continuous line representing the trend follower score.
– Colored candles indicating the presence of whale pumps.

2 — Identify key trading opportunities:
• Green candles suggest strong bullish momentum; consider entering long positions.
• Red candles indicate bearish momentum shifts; prepare for short selling or exit existing longs.

3 — Monitor whale pump signals:
– Yellow candles denote moments when large institutional buyers might be influencing prices significantly, offering possible entry points for aggressive traders.

█ LIMITATIONS

• The indicator's effectiveness can vary depending on market conditions and asset type.
• Whales do not always follow predictable patterns, so false positives may occur.
• Backtesting should be performed before implementing strategies derived from this indicator in live markets.

█ NOTES

This script uses advanced technical analysis techniques but does not guarantee profits. Traders are encouraged to use it alongside other forms of research and risk management practices.