CVD OscillatorCVD Delta Oscillator
A momentum oscillator that measures buying and selling pressure through volume analysis, based on the principle that volume precedes price (cause and effect).
How It Works
Volume Analysis
Measures the force of buying and selling by analyzing how volume interacts with price movement within each bar
When price closes higher in a bar's range with strong volume, this indicates stronger buying pressure
When price closes lower in a bar's range with strong volume, this indicates stronger selling pressure
Momentum Measurement
Uses two EMAs (fast and slow) to smooth the volume delta
The difference between these EMAs creates an oscillator that shows:
Rising values = Buying pressure increasing
Falling values = Selling pressure increasing
Zero line crossovers = Potential shift in control between buyers and sellers
Signal Generation
Divergences
Bullish: Price falls to new lows while buying pressure increases (potential reversal up)
Bearish: Price rises to new highs while selling pressure increases (potential reversal down)
Zero-Line Crossovers
Bullish: Buying pressure overtakes selling pressure
Bearish: Selling pressure overtakes buying pressure
Practical Application
Reading the Indicator
Green columns above zero = Net buying pressure
Red columns below zero = Net selling pressure
Larger columns = Stronger pressure
Divergences and crossovers = Potential turning points
Trading Context
Helps identify when price movement has strong or weak volume support
Shows potential exhaustion points through divergences
Confirms trend changes through zero-line crossovers
Customization
Adjustable EMA periods for different trading styles
Toggle-able visual signals
Automatic alerts for all signals
빌 윌리엄스 인디케이터
WVAD (Optimized Log Scaled)The WVAD (Optimized Log Scaled) indicator is a refined version of the classic Williams' Volume Accumulation/Distribution (WVAD). This version introduces logarithmic scaling for better visualization and usability, especially when dealing with large value ranges. It also includes EMA smoothing to highlight trends and reduce noise, providing traders with a more precise and clear representation of market dynamics.
Key Features:
1.Logarithmic Scaling:
Applies a log-based transformation to the WVAD values, ensuring extreme values are compressed while maintaining the overall structure of the data.
The log scaling allows better readability and interpretation, particularly for volatile or high-volume markets.
2.EMA Smoothing:
Uses an exponential moving average (EMA) to smooth the logarithmic WVAD values.
Helps reduce noise while preserving short-term trends, making it suitable for both trend-following and reversal strategies.
3.Customizable Parameters:
N (Lookback Period): Defines the accumulation period for calculating WVAD.
EMA Smoothing Period: Controls the sensitivity of the EMA applied to the logarithmic WVAD.
Decimal Places: Adjusts the precision of the displayed values for clearer visualization.
Line Colors: Fully customizable colors for both the raw WVAD line and the smoothed EMA.
4.Directional Preservation:
Keeps the positive and negative signs of WVAD to reflect accumulation (buying pressure) or distribution (selling pressure) in the market.
5.Zero Line Reference:
A horizontal zero line is plotted to help traders easily identify bullish (above 0) or bearish (below 0) market conditions.
How to Use:
Identify Trends: The smoothed WVAD line (EMA) can help detect trends or shifts in buying/selling pressure.
Crossovers: Use crossovers of the WVAD with the zero line as potential buy or sell signals.
Divergence: Spot divergences between price and the WVAD for early indications of reversals.
Applications:
Suitable for intraday, swing, or longer-term trading strategies.
Works across various asset classes, including stocks, commodities, and cryptocurrencies.
MultiLayer Awesome Oscillator Saucer Strategy [Skyrexio]Overview
MultiLayer Awesome Oscillator Saucer Strategy leverages the combination of Awesome Oscillator (AO), Williams Alligator, Williams Fractals and Exponential Moving Average (EMA) to obtain the high probability long setups. Moreover, strategy uses multi trades system, adding funds to long position if it considered that current trend has likely became stronger. Awesome Oscillator is used for creating signals, while Alligator and Fractal are used in conjunction as an approximation of short-term trend to filter them. At the same time EMA (default EMA's period = 100) is used as high probability long-term trend filter to open long trades only if it considers current price action as an uptrend. More information in "Methodology" and "Justification of Methodology" paragraphs. The strategy opens only long trades.
Unique Features
No fixed stop-loss and take profit: Instead of fixed stop-loss level strategy utilizes technical condition obtained by Fractals and Alligator to identify when current uptrend is likely to be over (more information in "Methodology" and "Justification of Methodology" paragraphs)
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Multilayer trades opening system: strategy uses only 10% of capital in every trade and open up to 5 trades at the same time if script consider current trend as strong one.
Short and long term trend trade filters: strategy uses EMA as high probability long-term trend filter and Alligator and Fractal combination as a short-term one.
Methodology
The strategy opens long trade when the following price met the conditions:
1. Price closed above EMA (by default, period = 100). Crossover is not obligatory.
2. Combination of Alligator and Williams Fractals shall consider current trend as an upward (all details in "Justification of Methodology" paragraph)
3. Awesome Oscillator shall create the "Saucer" long signal (all details in "Justification of Methodology" paragraph). Buy stop order is placed one tick above the candle's high of last created "Saucer signal".
4. If price reaches the order price, long position is opened with 10% of capital.
5. If currently we have opened position and price creates and hit the order price of another one "Saucer" signal another one long position will be added to the previous with another one 10% of capital. Strategy allows to open up to 5 long trades simultaneously.
6. If combination of Alligator and Williams Fractals shall consider current trend has been changed from up to downtrend, all long trades will be closed, no matter how many trades has been opened.
Script also has additional visuals. If second long trade has been opened simultaneously the Alligator's teeth line is plotted with the green color. Also for every trade in a row from 2 to 5 the label "Buy More" is also plotted just below the teeth line. With every next simultaneously opened trade the green color of the space between teeth and price became less transparent.
Strategy settings
In the inputs window user can setup strategy setting: EMA Length (by default = 100, period of EMA, used for long-term trend filtering EMA calculation). User can choose the optimal parameters during backtesting on certain price chart.
Justification of Methodology
Let's go through all concepts used in this strategy to understand how they works together. Let's start from the easies one, the EMA. Let's briefly explain what is EMA. The Exponential Moving Average (EMA) is a type of moving average that gives more weight to recent prices, making it more responsive to current price changes compared to the Simple Moving Average (SMA). It is commonly used in technical analysis to identify trends and generate buy or sell signals. It can be calculated with the following steps:
1.Calculate the Smoothing Multiplier:
Multiplier = 2 / (n + 1), Where n is the number of periods.
2. EMA Calculation
EMA = (Current Price) × Multiplier + (Previous EMA) × (1 − Multiplier)
In this strategy uses EMA an initial long term trend filter. It allows to open long trades only if price close above EMA (by default 50 period). It increases the probability of taking long trades only in the direction of the trend.
Let's go to the next, short-term trend filter which consists of Alligator and Fractals. Let's briefly explain what do these indicators means. The Williams Alligator, developed by Bill Williams, is a technical indicator designed to spot trends and potential market reversals. It uses three smoothed moving averages, referred to as the jaw, teeth, and lips:
Jaw (Blue Line): The slowest of the three, based on a 13-period smoothed moving average shifted 8 bars ahead.
Teeth (Red Line): The medium-speed line, derived from an 8-period smoothed moving average shifted 5 bars forward.
Lips (Green Line): The fastest line, calculated using a 5-period smoothed moving average shifted 3 bars forward.
When these lines diverge and are properly aligned, the "alligator" is considered "awake," signaling a strong trend. Conversely, when the lines overlap or intertwine, the "alligator" is "asleep," indicating a range-bound or sideways market. This indicator assists traders in identifying when to act on or avoid trades.
The Williams Fractals, another tool introduced by Bill Williams, are used to pinpoint potential reversal points on a price chart. A fractal forms when there are at least five consecutive bars, with the middle bar displaying the highest high (for an up fractal) or the lowest low (for a down fractal), relative to the two bars on either side.
Key Points:
Up Fractal: Occurs when the middle bar has a higher high than the two preceding and two following bars, suggesting a potential downward reversal.
Down Fractal: Happens when the middle bar shows a lower low than the surrounding two bars, hinting at a possible upward reversal.
Traders often combine fractals with other indicators to confirm trends or reversals, improving the accuracy of trading decisions.
How we use their combination in this strategy? Let’s consider an uptrend example. A breakout above an up fractal can be interpreted as a bullish signal, indicating a high likelihood that an uptrend is beginning. Here's the reasoning: an up fractal represents a potential shift in market behavior. When the fractal forms, it reflects a pullback caused by traders selling, creating a temporary high. However, if the price manages to return to that fractal’s high and break through it, it suggests the market has "changed its mind" and a bullish trend is likely emerging.
The moment of the breakout marks the potential transition to an uptrend. It’s crucial to note that this breakout must occur above the Alligator's teeth line. If it happens below, the breakout isn’t valid, and the downtrend may still persist. The same logic applies inversely for down fractals in a downtrend scenario.
So, if last up fractal breakout was higher, than Alligator's teeth and it happened after last down fractal breakdown below teeth, algorithm considered current trend as an uptrend. During this uptrend long trades can be opened if signal was flashed. If during the uptrend price breaks down the down fractal below teeth line, strategy considered that uptrend is finished with the high probability and strategy closes all current long trades. This combination is used as a short term trend filter increasing the probability of opening profitable long trades in addition to EMA filter, described above.
Now let's talk about Awesome Oscillator's "Sauser" signals. Briefly explain what is the Awesome Oscillator. The Awesome Oscillator (AO), created by Bill Williams, is a momentum-based indicator that evaluates market momentum by comparing recent price activity to a broader historical context. It assists traders in identifying potential trend reversals and gauging trend strength.
AO = SMA5(Median Price) − SMA34(Median Price)
where:
Median Price = (High + Low) / 2
SMA5 = 5-period Simple Moving Average of the Median Price
SMA 34 = 34-period Simple Moving Average of the Median Price
Now we know what is AO, but what is the "Saucer" signal? This concept was introduced by Bill Williams, let's briefly explain it and how it's used by this strategy. Initially, this type of signal is a combination of the following AO bars: we need 3 bars in a row, the first one shall be higher than the second, the third bar also shall be higher, than second. All three bars shall be above the zero line of AO. The price bar, which corresponds to third "saucer's" bar is our signal bar. Strategy places buy stop order one tick above the price bar which corresponds to signal bar.
After that we can have the following scenarios.
Price hit the order on the next candle in this case strategy opened long with this price.
Price doesn't hit the order price, the next candle set lower low. If current AO bar is increasing buy stop order changes by the script to the high of this new bar plus one tick. This procedure repeats until price finally hit buy order or current AO bar become decreasing. In the second case buy order cancelled and strategy wait for the next "Saucer" signal.
If long trades has been opened strategy use all the next signals until number of trades doesn't exceed 5. All trades are closed when the trend changes to downtrend according to combination of Alligator and Fractals described above.
Why we use "Saucer" signals? If AO above the zero line there is a high probability that price now is in uptrend if we take into account our two trend filters. When we see the decreasing bars on AO and it's above zero it's likely can be considered as a pullback on the uptrend. When we see the stop of AO decreasing and the first increasing bar has been printed there is a high probability that this local pull back is finished and strategy open long trade in the likely direction of a main trend.
Why strategy use only 10% per signal? Sometimes we can see the false signals which appears on sideways. Not risking that much script use only 10% per signal. If the first long trade has been open and price continue going up and our trend approximation by Alligator and Fractals is uptrend, strategy add another one 10% of capital to every next saucer signal while number of active trades no more than 5. This capital allocation allows to take part in long trades when current uptrend is likely to be strong and use only 10% of capital when there is a high probability of sideways.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.11.25. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 10%
Maximum Single Position Loss: -5.10%
Maximum Single Profit: +22.80%
Net Profit: +2838.58 USDT (+28.39%)
Total Trades: 107 (42.99% win rate)
Profit Factor: 3.364
Maximum Accumulated Loss: 373.43 USDT (-2.98%)
Average Profit per Trade: 26.53 USDT (+2.40%)
Average Trade Duration: 78 hours
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 3h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
Support, Resistance, MA, and ADXSummary
This comprehensive script provides traders with a tool that highlights critical levels of support and resistance, detects significant price breakouts with volume confirmation, identifies potential reversals with wick analysis, and plots a moving average that changes color based on trend strength as indicated by the ADX. It is useful for spotting entry and exit points, confirming breakouts, and identifying trend direction and strength.
Fractal Trail [UAlgo]The Fractal Trail is designed to identify and utilize Williams fractals as dynamic trailing stops. This tool serves traders by marking key fractal points on the chart and leveraging them to create adaptive stop-loss trails, enhancing risk management and trade decision-making.
Williams fractals are pivotal in identifying potential reversals and critical support/resistance levels. By plotting fractals dynamically and providing configurable options, this indicator allows for personalized adjustments based on the trader's strategy.
This script integrates both visual fractal markers and adjustable trailing stops, offering insights into market trends while catering to a wide variety of trading styles and timeframes.
🔶 Key Features
Williams Fractals Identification: The indicator marks Williams Fractals on the chart, which are significant highs and lows within a specified range. These fractals are crucial for identifying potential reversal points in the market.
Dynamic Trailing Stops: The indicator generates dynamic trailing stops based on the identified fractals. These stops adjust automatically as new fractals are formed, providing a responsive and adaptive approach to risk management.
Fractal Range: Users can specify the number of bars to the left and right for analyzing fractals, allowing for flexibility in identifying significant price points.
Trail Buffer Percentage: A percentage-based safety margin can be added between the fractal price and the trailing stop, providing additional control over risk management.
Trail Invalidation Source: Users can choose whether the trailing stop flips based on candle closing prices or the extreme points (high/low) of the candles.
Alerts and Notifications: The indicator provides alerts for when the price crosses the trailing stops, as well as when new Williams Fractals are confirmed. These alerts can be customized to fit the trader's notification preferences.
🔶 Interpreting the Indicator
Fractal Markers: The triangles above and below the bars indicate Williams Fractals. These markers help traders identify potential reversal points in the market.
Trailing Stops: The dynamic trailing stops are plotted as lines on the chart. These lines adjust based on the latest identified fractals, providing a visual representation of potential support and resistance levels.
Fill Colors: The optional fill colors between the trailing stops and the price action help traders quickly identify the current trend and potential pullback zones.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Awesome_Accelerator_Zone OscillatorExplanation and Usage Guide for AO_AC_ZONE Oscillator
Indicator Overview
The **AO_AC_ZONE** oscillator is based on the concepts introduced by **Bill Williams** in his book *New Trading Dimensions*. This indicator combines the **Awesome Oscillator (AO)**, **Accelerator Oscillator (AC)**, and a custom **Zone Oscillator**, visualizing them together in a clear, color-coded format.
The Zone Oscillator is derived from the relationship between AO and AC, indicating the market's dominant momentum state (bullish, bearish, or neutral). It also integrates real-time candle coloring to visually align price bars with the Zone's momentum.
---
**Components**
1. **Awesome Oscillator (AO)**:
- AO measures the difference between a 5-period and 34-period Simple Moving Average (SMA) applied to the midpoints of candles.
- It reflects market momentum, where:
- Green bars = increasing momentum
- Red bars = decreasing momentum
2. **Accelerator Oscillator (AC)**:
- AC is calculated as the difference between AO and its 5-period SMA.
- It indicates the acceleration or deceleration of market momentum.
- Fuchsia bars = increasing momentum
- Purple bars = decreasing momentum
3. **Zone Oscillator**:
- The Zone combines AO and AC states:
- **Green Zone**: Both AO and AC are positive (bullish momentum).
- **Red Zone**: Both AO and AC are negative (bearish momentum).
- **Gray Zone**: AO and AC have differing signs (neutral/uncertain momentum).
- Candle colors dynamically match the Zone’s state for enhanced visual clarity.
---
**How to Use the Indicator**
**1. Interpreting the Oscillators**
- **AO**: Use it to detect momentum direction and changes. Pay attention to shifts in bar color:
- **Increasing AO (Aqua)**: Bullish momentum gaining strength.
- **Decreasing AO (Navy)**: Bullish momentum weakening or bearish momentum strengthening.
- **AC**: Provides early signals of momentum shifts.
- If AC changes color ahead of AO, it signals potential trend reversals or accelerations.
**2. Using the Zone Oscillator**
- **Green Zone**:
- Both AO and AC are positive.
- Indicates a strong bullish trend. Look for buying opportunities in line with the trend.
- **Red Zone**:
- Both AO and AC are negative.
- Signals strong bearish momentum. Look for shorting opportunities.
- **Gray Zone**:
- AO and AC are in conflict.
- Represents uncertainty; avoid trading or wait for a clear signal.
---
**Real-Time Application**
**Candle Coloring**
- The indicator modifies candle colors to match the Zone Oscillator's state:
- **Green Candles**: Strong bullish momentum.
- **Red Candles**: Strong bearish momentum.
- **Gray Candles**: Neutral momentum.
**Recommended Strategy (Based on New Trading Dimensions)**:
1. **Identify the Zone**:
- Focus on Green Zones for long entries and Red Zones for short entries.
2. **Look for AO/AC Confirmation**:
- Enter trades in the direction of both AO and AC when they align with the Zone.
- For exits, monitor when AO and AC conflict (Gray Zone).
3. **Use in Combination**:
- Combine this oscillator with fractals or trend indicators to confirm signals.
---
**Benefits**
- Visualizes momentum strength, acceleration, and alignment in one chart.
- Simplifies decision-making by integrating price action with oscillator dynamics.
- Supports faster trade identification and execution by highlighting bullish, bearish, and neutral zones.
---
**Disclaimer**
This indicator is a tool to assist in market analysis. Always incorporate proper risk management and avoid trading during uncertain conditions (Gray Zones). For optimal results, use this oscillator in conjunction with other analysis methods like support/resistance, volume analysis, and trend-following systems.
EMA with Supply and Demand Zones
The EMA with Supply and Demand Strategy is a trend-following trading approach that integrates Exponential Moving Averages (EMA) with supply and demand zones to identify potential entry and exit points. Below is a detailed description of its components and logic:
Key Components of the Strategy
1. EMA (Exponential Moving Average)
The EMA is used as a trend filter:
Bullish Trend: Price is above the EMA.
Bearish Trend: Price is below the EMA.
The EMA ensures that trades align with the overall market trend, reducing counter-trend risks.
2. Supply and Demand Zones
Demand Zone:
Represents areas where the price historically found support (buyers dominated).
Calculated using the lowest low over a specified lookback period.
Used for identifying potential long entry points.
Supply Zone:
Represents areas where the price historically faced resistance (sellers dominated).
Calculated using the highest high over a specified lookback period.
Used for identifying potential short entry points.
3. Trade Conditions
Long Trade:
Triggered when:
The price is above the EMA (bullish trend).
The low of the current candle touches or penetrates the most recent demand zone.
Short Trade:
Triggered when:
The price is below the EMA (bearish trend).
The high of the current candle touches or penetrates the most recent supply zone.
4. Exit Conditions
Long Exit:
Exit the trade when the price closes below the EMA, indicating a potential trend reversal.
Short Exit:
Exit the trade when the price closes above the EMA, signaling a potential upward reversal.
Visual Representation
EMA: A blue line plotted on the chart to show the trend.
Supply Zones: Red horizontal lines representing potential resistance levels.
Demand Zones: Green horizontal lines representing potential support levels.
These zones dynamically adjust to reflect the most recent 3 levels.
How the Strategy Works
Trend Identification:
The EMA determines the direction of the trade:
Look for long trades only in a bullish trend (price above EMA).
Look for short trades only in a bearish trend (price below EMA).
Entry Points:
Wait for price interaction with a supply or demand zone:
If the price touches a demand zone during a bullish trend, initiate a long trade.
If the price touches a supply zone during a bearish trend, initiate a short trade.
Risk Management:
The strategy exits trades if the price moves against the trend (crosses the EMA).
This ensures minimal exposure during adverse market movements.
Benefits of the Strategy
Trend Alignment:
Reduces counter-trend trades, improving the win rate.
Clear Entry and Exit Rules:
Combines price action (zones) with a reliable trend filter (EMA).
Dynamic Levels:
The supply and demand zones adapt to changing market conditions.
Customization Options
EMA Length:
Adjust to suit different timeframes or market conditions (e.g., 20 for faster trends, 50 for slower trends).
Lookback Period:
Fine-tune to capture broader or narrower supply and demand zones.
Risk/Reward Preferences:
Pair the strategy with stop-loss and take-profit levels for enhanced control.
This strategy is ideal for traders looking for a structured approach to identify high-probability trades while aligning with the prevailing trend. Backtest and optimize parameters based on your trading style and the specific asset you're tradin
Z-ScoreThe z-score (also known as the standard score) measures how many standard deviations a data point is from the mean of a dataset. It helps determine whether a data point is typical or unusual compared to the dataset.
The formula for the z-score is:
z = \frac{x - \mu}{\sigma}
Where:
• x = the value being evaluated
• \mu = the mean of the dataset
• \sigma = the standard deviation of the dataset
Interpretation:
• A positive z-score indicates the data point is above the mean.
• A negative z-score indicates the data point is below the mean.
• A z-score of 0 means the data point is exactly at the mean.
2 bars BarsInputs:
The script allows you to specify the values for each state (HH, HL, LL, LH) for two bars.
Labels as Bars:
Instead of line.new, this script uses label.new to simulate a pseudo-bar chart.
Bars are visually represented as labels, with distinct positions and colors.
Offset Logic:
The offset ensures that each category has its labels (bars) placed at the correct horizontal distance.
Custom Categories:
The categories array ("HH", "HL", "LL", "LH") links to their respective values.
Dynamic TestingInput Parameters
`lookbackPeriod` : Number of candles to check for determining the highest high (resistance) and lowest low (support) levels.
`atrPeriod` : The period for calculating the Average True Range (ATR), a measure of market volatility.
`atrMultiplierSL` : Multiplier to calculate the stop-loss distance relative to the ATR.
`atrMultiplierTP1` and `atrMultiplierTP2` : Multipliers to calculate two take-profit levels relative to ATR.
`rewardToRisk` : The ratio between reward (profit) and risk (stop loss) for trade management.
---
Core Calculations
ATR (Average True Range)
atr = ta.atr(atrPeriod)
ATR is computed using the specified period to gauge price volatility.
Volume SMA
volumeSMA = ta.sma(volume, atrPeriod)
The script calculates the simple moving average of volume over the same period as ATR. This is used as a threshold for validating high-volume scenarios.
---
Support and Resistance Levels
`support` : Lowest price over the last `lookbackPeriod` candles.
`resistance` : Highest price over the same period.
`supportBuffer` and `resistanceBuffer` : These are "buffered" zones around support and resistance, calculated using half of the ATR to prevent false breakouts.
---
Entry Scenarios
Bullish Entry (`isBullishEntry`)
The close is above the buffered support level.
The low of the current candle touches or breaks below the support level.
The trading volume is greater than the `volumeSMA`.
Bearish Entry (`isBearishEntry`)
The close is below the buffered resistance level.
The high of the current candle touches or exceeds the resistance level.
The trading volume is greater than the `volumeSMA`.
---
Box Visualization
Bullish and Bearish Boxes
Bullish Box (`bullishBox`):
- A green, semi-transparent rectangle around the support level to highlight the bullish entry zone.
- Dynamically updates based on recent price action.
Bearish Box (`bearishBox`):
- A red, semi-transparent rectangle around the resistance level to highlight the bearish entry zone.
- Adjusts similarly as price evolves.
---
Stop Loss and Take Profit Calculations
Bullish Trades
Stop Loss (`bullishSL`): Calculated as support - atrMultiplierSL * ATR .
Take Profit 1 (`bullishTP1`): support + rewardToRisk * atrMultiplierTP1 * ATR .
Take Profit 2 (`bullishTP2`): support + rewardToRisk * atrMultiplierTP2 * ATR .
Bearish Trades
Stop Loss (`bearishSL`): resistance + atrMultiplierSL * ATR .
Take Profit 1 (`bearishTP1`): resistance - rewardToRisk * atrMultiplierTP1 * ATR .
Take Profit 2 (`bearishTP2`): resistance - rewardToRisk * atrMultiplierTP2 * ATR .
---
Visualization for Key Levels
Bullish Scenario
Green lines represent `bullishTP1` and `bullishTP2` for profit targets.
A red line indicates the `bullishSL` .
Labels like "TP1," "TP2," and "SL" dynamically appear at respective levels to make the targets and risk visually clear.
Bearish Scenario
Red lines represent `bearishTP1` and `bearishTP2` .
A green line marks the `bearishSL` .
Similar dynamic labeling for `TP1` , `TP2` , and `SL` at corresponding bearish levels.
---
Dynamic Updates
Both the entry boxes and key level visualizations (lines and labels) adjust dynamically based on real-time price and volume data.
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Purpose
Identify high-probability bullish and bearish trade setups.
Define clear entry zones (using boxes) and exit levels (TP1, TP2, SL).
Incorporate volatility (via ATR) and volume into decision-making.
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Technical Summary
Dynamically visualize support/resistance levels.
Set risk-managed trades using ATR-based stop-loss and profit levels.
Automate visual trade zones for enhanced chart clarity.
---
Awesome Oscillator with DivergenceSimple Awesome Oscillator with Divergences
This TradingView script combines the classic Awesome Oscillator (AO) with divergence detection. It plots AO as a histogram, highlighting changes in momentum. Divergences are identified based on pivot highs and lows, signaling potential trend reversals:
- Bullish Divergence: Price makes lower lows, AO makes higher lows.
- Bearish Divergence: Price makes higher highs, AO makes lower highs.
Visual signals (arrows) and alerts ensure clear identification, making it ideal for traders focusing on momentum and trend reversals.
Williams Fractals for ExtremesThis script, written in Pine Script (version 5), implements an indicator for the automatic detection and visualization of fractal extremes on the price chart. The core algorithm is based on Bill Williams' fractal theory and identifies local highs and lows, which are often used to determine potential reversal points and support/resistance levels in the market.
### Key Features:
#### Fractal Detection:
- The indicator identifies a fractal high if the middle candle in a sequence of five candles (two on the left and two on the right) has the highest value.
- A fractal low is identified if the middle candle in the same type of five-candle sequence has the lowest value.
#### Extreme Visualization:
- Fractal highs are displayed as red dots on the chart, signaling potential local peaks.
- Fractal lows are shown as green dots, indicating local troughs.
### Usage:
- The indicator is designed for use across all timeframes and can be applied to both cryptocurrency and traditional financial markets.
- Highlighted points allow traders to quickly spot key levels, aiding in identifying potential zones for trade entry or exit.
### Application in Trading:
#### Identifying Key Levels:
- Fractal highs and lows can serve as resistance and support levels. A breakout beyond a fractal in either direction may signal a continuation of movement in that direction.
#### Finding Reversal Points:
- Fractal extremes indicate potential market reversals, making them useful in counter-trend trading strategies.
#### Adaptability to Market Conditions:
- The indicator updates dynamically with the appearance of new candles, providing traders with real-time fractal extreme levels.
### Settings and Parameters:
- In its current version, the script does not include customizable settings as it implements the standard concept of Williams' fractals.
CAO BA NHAN//@version=5
indicator("Potential Buy/Sell Limit Zones", overlay=true)
// Tham số đầu vào
volume_threshold = input.float(1.5, title="Volume Spike Threshold", step=0.1)
support_resistance_length = input.int(20, title="Support/Resistance Lookback Length")
// Tính toán SMA của volume và kiểm tra volume spike
volume_sma = ta.sma(volume, support_resistance_length)
volume_spike = volume > volume_sma * volume_threshold
// Xác định hỗ trợ và kháng cự
support = ta.lowest(close, support_resistance_length)
resistance = ta.highest(close, support_resistance_length)
// Hiển thị các vùng giới hạn có khả năng
plot(volume_spike ? support : na, title="Potential Buy Limit Zone", color=color.green, linewidth=2, style=plot.style_stepline)
plot(volume_spike ? resistance : na, title="Potential Sell Limit Zone", color=color.red, linewidth=2, style=plot.style_stepline)
// Đánh dấu trên biểu đồ khi có volume spike tại các vùng hỗ trợ/kháng cự
bgcolor(volume_spike and close == support ? color.new(color.green, 80) : na, title="Buy Zone")
bgcolor(volume_spike and close == resistance ? color.new(color.red, 80) : na, title="Sell Zone")
Fractal Trend Detector [Skyrexio]Introduction
Fractal Trend Detector leverages the combination of Williams fractals and Alligator Indicator to help traders to understand with the high probability what is the current trend: bullish or bearish. It visualizes the potential uptrend with the coloring bars in green, downtrend - in red color. Indicator also contains two additional visualizations, the strong uptrend and downtrend as the green and red zones and the white line - trend invalidation level (more information in "Methodology and it's justification" paragraph)
Features
Optional strong up and downtrends visualization: with the specified parameter in settings user can add/hide the green and red zones of the strong up and downtrends.
Optional trend invalidation level visualization: with the specified parameter in settings user can add/hide the white line which shows the current trend invalidation price.
Alerts: user can set up the alert and have notifications when uptrend/downtrend has been started, strong uptrend/downtrend started.
Methodology and it's justification
In this script we apply the concept of trend given by Bill Williams in his book "Trading Chaos". This approach leverages the Alligator and Fractals in conjunction. Let's briefly explain these two components.
The Williams Alligator, created by Bill Williams, is a technical analysis tool used to identify trends and potential market reversals. It consists of three moving averages, called the jaw, teeth, and lips, which represent different time periods:
Jaw (Blue Line): The slowest line, showing a 13-period smoothed moving average shifted 8 bars forward.
Teeth (Red Line): The medium-speed line, an 8-period smoothed moving average shifted 5 bars forward.
Lips (Green Line): The fastest line, a 5-period smoothed moving average shifted 3 bars forward.
When the lines are spread apart and aligned, the "alligator" is "awake," indicating a strong trend. When the lines intertwine, the "alligator" is "sleeping," signaling a non-trending or range-bound market. This indicator helps traders identify when to enter or avoid trades.
Williams Fractals, introduced by Bill Williams, are a technical analysis tool used to identify potential reversal points on a price chart. A fractal is a series of at least five consecutive bars where the middle bar has the highest high (for a up fractal) or the lowest low (for a down fractal), compared to the two bars on either side.
Key Points:
Up fractal: Formed when the middle bar shows a higher high than the two preceding and two following bars, signaling a potential turning point downward.
Down fractal: Formed when the middle bar has a lower low than the two surrounding bars, indicating a potential upward reversal.
Fractals are often used with other indicators to confirm trend direction or reversal, helping traders make more informed trading decisions.
How we can use its combination? Let's explain the uptrend example. The up fractal breakout to the upside can be interpret as bullish sign, there is a high probability that uptrend has just been started. It can be explained as following: the up fractal created is the potential change in market's behavior. A lot of traders made a decision to sell and it created the pullback with the fractal at the top. But if price is able to reach the fractal's top and break it, this is a high probability sign that market "changed his opinion" and bullish trend has been started. The moment of breaking is the potential changing to the uptrend. Here is another one important point, this breakout shall happen above the Alligator's teeth line. If not, this crossover doesn't count and the downtrend potentially remaining. The inverted logic is true for the down fractals and downtrend.
According to this methodology we received the high probability up and downtrend changes, but we can even add it. If current trend established by the indicator as the uptrend and alligator's lines have the following order: lips is higher than teeth, teeth is higher than jaw, script count it as a strong uptrend and start print the green zone - zone between lips and jaw. It can be used as a high probability support of the current bull market. The inverted logic can be used for bearish trend and red zones: if lips is lower than teeth and teeth is lower than jaw it's interpreted by the indicator as a strong down trend.
Indicator also has the trend invalidation line (white line). If current bar is green and market condition is interpreted by the script as an uptrend you will see the invalidation line below current price. This is the price level which shall be crossed by the price to change up trend to down trend according to algorithm. This level is recalculated on every candle. The inverted logic is valid for downtrend.
How to use indicator
Apply it to desired chart and time frame. It works on every time frame.
Setup the settings with enabling/disabling visualization of strong up/downtrend zones and trend invalidation line. "Show Strong Bullish/Bearish Trends" and "Show Trend Invalidation Price" checkboxes in the settings. By default they are turned on.
Analyze the price action. Indicator colored candle in green if it's more likely that current state is uptrend, in red if downtrend has the high probability to be now. Green zones between two lines showing if current uptrend is likely to be strong. This zone can be used as a high probability support on the uptrend. The red zone show high probability of strong downtrend and can be used as a resistance. White line is showing the level where uptrend or downtrend is going be invalidated according to indicator's algorithm. If current bar is green invalidation line will be below the current price, if red - above the current price.
Set up the alerts if it's needed. Indicator has four custom alerts called "Uptrend has been started" when current bar closed as green and the previous was not green, "Downtrend has been started" when current bar closed red and the previous was not red, "Uptrend became strong" if script started printing the green zone "Downtrend became strong" if script started printing the red zone.
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test indicators before live implementation.
Trend Trader-RemasteredThe script was originally coded in 2018 with Pine Script version 3, and it was in invite only status. It has been updated and optimised for Pine Script v5 and made completely open source.
Overview
The Trend Trader-Remastered is a refined and highly sophisticated implementation of the Parabolic SAR designed to create strategic buy and sell entry signals, alongside precision take profit and re-entry signals based on marked Bill Williams (BW) fractals. Built with a deep emphasis on clarity and accuracy, this indicator ensures that only relevant and meaningful signals are generated, eliminating any unnecessary entries or exits.
Key Features
1) Parabolic SAR-Based Entry Signals:
This indicator leverages an advanced implementation of the Parabolic SAR to create clear buy and sell position entry signals.
The Parabolic SAR detects potential trend shifts, helping traders make timely entries in trending markets.
These entries are strategically aligned to maximise trend-following opportunities and minimise whipsaw trades, providing an effective approach for trend traders.
2) Take Profit and Re-Entry Signals with BW Fractals:
The indicator goes beyond simple entry and exit signals by integrating BW Fractal-based take profit and re-entry signals.
Relevant Signal Generation: The indicator maintains strict criteria for signal relevance, ensuring that a re-entry signal is only generated if there has been a preceding take profit signal in the respective position. This prevents any misleading or premature re-entry signals.
Progressive Take Profit Signals: The script generates multiple take profit signals sequentially in alignment with prior take profit levels. For instance, in a buy position initiated at a price of 100, the first take profit might occur at 110. Any subsequent take profit signals will then occur at prices greater than 110, ensuring they are "in favour" of the original position's trajectory and previous take profits.
3) Consistent Trend-Following Structure:
This design allows the Trend Trader-Remastered to continue signaling take profit opportunities as the trend advances. The indicator only generates take profit signals in alignment with previous ones, supporting a systematic and profit-maximising strategy.
This structure helps traders maintain positions effectively, securing incremental profits as the trend progresses.
4) Customisability and Usability:
Adjustable Parameters: Users can configure key settings, including sensitivity to the Parabolic SAR and fractal identification. This allows flexibility to fine-tune the indicator according to different market conditions or trading styles.
User-Friendly Alerts: The indicator provides clear visual signals on the chart, along with optional alerts to notify traders of new buy, sell, take profit, or re-entry opportunities in real-time.
Bullish/Bearish Reversal Bars Indicator [Skyrexio]Introduction
Bullish/Bearish Reversal Bars Indicator leverages the combination of candlestick reversal bar pattern and the Williams Alligator indicator to help traders in understanding where there is a high probability of market reversal or correction. Indicator works for both bearish and bullish cases. It visualizes the bearish and bullish reversal bars with red and green dots and also plots the Alligator's lips to make it more convenient for traders to understand if price is above or below lips line (more information in "Methodology and it's justification" paragraph).
Features
Market Facilitation Index(MFI) filter: with the specified parameter in settings user can choose to filter bullish and bearish reversal bars which passed the MFI condition.
Awesome Oscillator(AO) filter: with the specified parameter in settings user can choose to filter bullish and bearish reversal bars which passed the AO condition.
Alerts: user can set up the alert and have notifications when bullish/bearish reversal bar has been printed.
Methodology and it's justification
In the script’s methodology, we apply the concepts of bullish and bearish reversal bars introduced by Bill Williams in his book Trading Chaos. So, what exactly is a bullish or bearish reversal bar? At its core, it’s a candlestick pattern. A bullish reversal bar is a bar that closes in its upper half, while a bearish reversal bar closes in its lower half.
Why is this type of bar significant? Let’s look at the bullish reversal bar as an example. When the price is trending upward, forming higher highs with each candle, and we suddenly see a bullish bar that makes a new high but ultimately closes in its lower half, it signals a shift in control. Bears have taken control toward the end of that candle's period, pushing the price back down. This can be interpreted as a sign of trend weakness and a potential reversal (or at least a correction).
An additional key point is that a reversal bar often indicates a possible end to the trend. Therefore, for a reversal bar to be valid, several preceding candles should show lower highs (for bullish bars) or higher lows (for bearish bars), reinforcing the likelihood of a trend change.
The second step on methodology is the location of the bar related to Williams Alligator. The Williams Alligator Indicator, developed by Bill Williams, is a technical analysis tool that helps traders identify trends and potential turning points in the market. It consists of three lines, often called the jaw, teeth, and lips of the alligator, each representing different moving averages:
Jaw (Blue Line): A slower moving average, typically a 13-period smoothed moving average shifted 8 bars into the future.
Teeth (Red Line): A medium moving average, typically an 8-period smoothed moving average shifted 5 bars into the future.
Lips (Green Line): A faster moving average, usually a 5-period smoothed moving average shifted 3 bars into the future.
When the three lines are spread out and moving in the same direction, it suggests a strong trend (the "alligator" is "awake and feeding"). When they intertwine, the indicator suggests that the market is moving sideways, or in a range, signaling a lack of clear trend (the "alligator" is "sleeping"). Traders use the Alligator Indicator to enter trades in trending markets and avoid trades in choppy, non-trending markets.
If bullish reversal bar's high is not below and bearish reversal bar's low is not above all three Alligator's lines (jaw, lips, teeth) they cannot be interpreted as these types of bars. It can be explained as following: if we are waiting for the bullish reversal bar it shall be reversal from downtrend. If price is not below all three lines it can't be interpret as the downtrend according to this method. The opposite is true for the bearish reversal bar.
All described above are obligatory conditions for reversal bar, now let's discuss two not obligatory conditions. The first one is Market Facilitation Index (MFI) restriction. Let's briefly look what is MFI. The Market Facilitation Index (MFI) is a technical indicator that measures the price movement per unit of volume, helping traders gauge the efficiency of price movement in relation to trading volume. Here's how you can calculate it:
MFI = (High−Low)/Volume
MFI can be used in combination with volume, so we can divide 4 states. Bill Williams introduced these to help traders interpret the interaction between volume and price movement. Here’s a quick summary:
Green Window (Increased MFI & Increased Volume): Indicates strong momentum with both price and volume increasing. Often a sign of trend continuation, as both buying and selling interest are rising.
Fake Window (Increased MFI & Decreased Volume): Shows that price is moving but with lower volume, suggesting weak support for the trend. This can signal a potential end of the current trend.
Squat Window (Decreased MFI & Increased Volume): Shows high volume but little price movement, indicating a tug-of-war between buyers and sellers. This often precedes a breakout as the pressure builds.
Fade Window (Decreased MFI & Decreased Volume): Indicates a lack of interest from both buyers and sellers, leading to lower momentum. This typically happens in range-bound markets and may signal consolidation before a new move.
For our purposes we are interested in squat bars. This is the sign that volume cannot move the price easily. This type of bar increases the probability of trend reversal. In this indicator we added to enable the MFI filter of reversal bars. If potential reversal bar or two preceding bars have squat state this bar can be interpret as a reversal one.
The second additional filter is Awesome Oscillator. The Awesome Oscillator (AO), developed by Bill Williams, is a momentum indicator that measures market momentum by comparing recent price action to a longer historical context. It helps traders identify potential trend reversals and the strength of trends. Formula:
AO = SMA5(Median Price) − SMA34(Median Price)
where:
Median Price = (High + Low) / 2
SMA5 = 5-period Simple Moving Average of the Median Price
SMA 34 = 34-period Simple Moving Average of the Median Price
If AO is decreasing momentum is bearish, if increasing - bullish. According to Bill Williams approach reversal bars are the potential trades against the trend. As a result we added second filter for bullish reversal bars AO shall be decreasing, for bearish increasing.
How to use indicator
Apply it to desired chart and time frame. It works on every time frame.
Setup the filters with the "Enable MFI" and "Enable AO" checkboxes in the settings. By default they are turned on.
Analyze the price action. Indicator plotted the white line, this is the lips of an Alligator. It will help you to understand how price is moving in comparison to lips line. Indicator will print the green dot and text "BULL" below it current bar is bullish reversal. It will print the red dot and text "BEAR" above it if current bar is interpreted by algorithm as a bearish reversal.
Set up the alerts if it's needed. Indicator has two custom alerts called "Bullish reversal bar has been printed" and "Bearish reversal bar has been printed"
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test indicators before live implementation.
HBK Price Action Strategy HBKPrice Action Strategy for XAUUSD with a Favorable Risk-Reward Ratio
Understanding the Strategy:
This strategy leverages price action principles to identify potential entry and exit points for XAUUSD on a 5-minute timeframe. The core idea is to identify price action patterns that suggest a high probability of a particular direction, and then to set stop-loss and take-profit levels to manage risk and reward.
Key Price Action Patterns to Watch:
Pin Bar: A pin bar is a candlestick with a long wick in one direction and a small body in the opposite direction. It often signals a reversal in the current trend.
Inside Bar: An inside bar forms when the current candle's high is lower than the previous candle's high, and the current candle's low is higher than the previous candle's low. It often indicates indecision or a potential breakout.
Engulfing Pattern: An engulfing pattern occurs when the current candle completely engulfs the previous candle. A bullish engulfing pattern signals a potential uptrend, while a bearish engulfing pattern signals a potential downtrend.
Risk-Reward Ratio:
A favorable risk-reward ratio is crucial for long-term trading success. Aim for a minimum risk-reward ratio of 1:2, meaning you risk $1 to potentially gain $2.
Entry and Exit Signals:
Long Entry:
Identify a bullish pin bar or engulfing pattern.
Wait for a confirmation candle to close above the pin bar's high or the engulfing pattern's high.
Place a stop-loss below the recent swing low.
Set a take-profit target at a key resistance level or a multiple of the stop-loss distance.
Short Entry:
Identify a bearish pin bar or engulfing pattern.
Wait for a confirmation candle to close below the pin bar's low or the engulfing pattern's low.
Place a stop-loss above the recent swing high.
Set a take-profit target at a key support level or a multiple of the stop-loss distance.
Additional Tips:
Use Support and Resistance Levels: Identify key support and resistance levels to set your stop-loss and take-profit targets.
Consider Market Sentiment: Pay attention to market sentiment and news events that may impact gold prices.
Manage Risk: Always use stop-loss orders to limit potential losses.
Be Patient: Don't force trades. Wait for high-probability setups.
Practice Discipline: Stick to your trading plan and avoid impulsive decisions.
Remember:
Price action trading requires practice and patience.
Backtest your strategy on historical data to refine your approach.
Always adapt to changing market conditions.
By following these guidelines and practicing disciplined risk management, you can increase your chances of success in trading XAUUSD on a 5-minute timeframe.
Custom Candlestick Pattern IndicatorCustom Candlestick Pattern Indicator - Buy Signal Based on Green Candles Breaking Previous Lows
Overview:
This custom candlestick pattern indicator is designed to highlight potential buy opportunities based on a simple yet powerful candlestick pattern. The indicator identifies green candles that break below the low of the previous candle. This combination may signal a potential market reversal or a bullish continuation after a pullback, depending on the market context. Traders can use this indicator to detect areas where prices may be bouncing from recent lows, indicating a potential buying opportunity.
Pattern Explanation:
The strategy underlying this indicator is a two-part condition that must be met before a buy signal is generated:
Green Candle: A green candle forms when the closing price of the current candle is higher than its opening price. This visually represents bullish momentum as buyers have taken control, closing the price higher than where it opened.
Breaking the Previous Low: The low of the current candle must be lower than the low of the previous candle. This suggests that, despite initial bearish pressure during the candle formation (which drove the price below the previous candle's low), buyers stepped in to push the price higher by the candle’s close. This pattern can signify a potential reversal or bullish continuation, as it demonstrates that buyers are overcoming initial selling pressure.
When the Pattern Occurs:
This pattern is particularly interesting to traders who look for potential reversal signals after a brief decline in price.
It may also work well in markets where pullbacks are common, as this pattern could mark the end of a retracement and the resumption of the bullish trend.
How the Indicator Works:
Green Candle: The indicator first identifies a green candle, where the close of the candle is greater than its open (close > open). This signals that the current period closed higher than it opened, which is generally a bullish sign.
Breaking Previous Low: The indicator checks if the current candle's low is below the low of the previous candle (low < low ). If this condition is met, it means the price dropped below the previous candle's low but was still able to close higher (green candle), signaling a potential reversal or buying opportunity.
Buy Signal: If both conditions are true (green candle + breaking previous low), the indicator plots a buy signal below the candle in the form of an upward-facing triangle labeled "Buy" in green. This serves as a visual cue for traders to consider entering a buy position.
Optional Previous Low Plot: For added reference, the indicator plots the previous candle's low as a red step-line on the chart. This helps traders visualize when the price has dipped below the prior candle's low, making it easier to spot instances where the pattern is forming.
How to Use:
This indicator can be used across multiple timeframes, whether you’re trading short-term intraday patterns or longer-term swing trades.
It works well in markets that experience pullbacks or minor retracements, as the pattern it identifies suggests a rejection of lower prices followed by a push higher.
Traders can combine this indicator with other technical analysis tools (such as moving averages, support/resistance levels, or momentum oscillators) to strengthen the buy signals and add more context to the trading decision.
Example Scenarios:
Reversal Signal: Suppose a market has been in a minor downtrend, and suddenly a green candle forms after a low that breaks the previous day’s low. This indicator would generate a buy signal, suggesting the downtrend may be losing strength and that buyers are taking control. This could be an early indication of a reversal.
Bullish Continuation After Pullback: Imagine a market in a steady uptrend experiences a temporary pullback. The price breaks the previous candle’s low, but the current candle closes higher (green candle). This buy signal could indicate that the pullback is over, and the uptrend is likely to continue.
Advantages:
Simplicity: This indicator relies on basic price action (green candles and lows) without requiring complicated indicators or oscillators, making it easy to understand and use.
Visual Alerts: The plotted buy signals and previous lows provide a clear, visual representation on the chart, simplifying decision-making for traders.
Versatility: It can be applied across different timeframes and asset classes (stocks, forex, crypto, etc.), making it a versatile tool for all kinds of traders.
Limitations:
As with any single indicator or pattern, this should not be used in isolation. It is important to incorporate broader market context, support/resistance levels, and other forms of analysis to avoid false signals.
The pattern tends to be more effective when there’s sufficient market liquidity and may perform better in trending or volatile markets compared to sideways or flat markets.
Fibonacci & Bollinger Bands StrategyThis strategy combines Bollinger Bands and Fibonacci retracement/extension levels to identify potential entry and exit points in the market. Here’s a breakdown of each component and how the strategy works:
1. Bollinger Bands:
Bollinger Bands consist of a simple moving average (SMA) and two standard deviations (upper and lower bands) plotted above and below the SMA. The bands expand and contract based on market volatility.
Purpose in Strategy:
The lower band represents an area where the market might be oversold.
The upper band represents an area where the market might be overbought.
The price crossing these bands suggests overextended market conditions, which can be used to identify potential reversals.
2. Fibonacci Retracement and Extension Levels:
Fibonacci retracement levels are horizontal lines that indicate where price might find support or resistance as it retraces some of its previous movement. Common retracement levels are 61.8% and 78.6%.
Fibonacci extension levels are used to project areas where the price might extend after completing a retracement. These levels can help determine potential targets after a significant price movement.
Purpose in Strategy:
The strategy calculates the most recent swing high (fibHigh) and swing low (fibLow) over a lookback period. It then plots Fibonacci retracement and extension levels based on this range.
The Fibonacci levels are used as key support and resistance areas. The price approaching or touching these levels signals potential turning points in the market.
3. Entry Criteria:
A long position (buy) is triggered when:
The price crosses below the lower Bollinger Band, indicating an oversold condition.
The price is near or above a Fibonacci extension level (calculated based on the most recent price swing).
This suggests that the price is potentially reaching a strong support area, where a reversal is likely.
4. Exit Criteria:
The long position is closed (exit trade) when either:
The price touches or crosses the upper Bollinger Band, signaling an overbought condition.
The price reaches a Fibonacci retracement level or exceeds the recent swing high (fibHigh), indicating a potential exhaustion point or a reversal area.
5. General Strategy Logic:
The strategy takes advantage of market volatility (captured by the Bollinger Bands) and key support/resistance levels (determined by Fibonacci retracement and extension levels).
By combining these two techniques, the strategy identifies potential entry points at oversold levels with the expectation that the market will retrace or reverse upward, especially when near key Fibonacci extension levels.
Exit points are identified by potential overbought levels (Bollinger upper band) or key Fibonacci retracement levels, where the price might reverse downward.
6. Conditions to Execute the Strategy:
The Fibonacci levels are only calculated once the price has made a significant movement, establishing a recent high and low over a 50-bar period (which you can adjust). This ensures the Fibonacci levels are based on meaningful swings.
The entry and exit signals are filtered using both Bollinger Bands and Fibonacci levels to ensure that trades are not taken solely based on one indicator, thus reducing false signals.
Key Features of the Strategy:
Trend-following with reversal: It tries to catch reversals when the price hits extreme levels (Bollinger Bands) while respecting important Fibonacci levels.
Dynamic market adaptation: The strategy adapts to market conditions as it recalculates Fibonacci levels based on recent price swings and adjusts the Bollinger Bands for market volatility.
Confirmation through multiple indicators: It uses both the volatility-based signals from Bollinger Bands and the price structure from Fibonacci levels to confirm trade entries and exits.
Summary of the Strategy:
The strategy looks to buy low and sell high based on oversold/overbought signals from Bollinger Bands and Fibonacci levels that indicate key support and resistance zones.
By combining these two technical indicators, the strategy aims to reduce risk and increase accuracy by only entering trades when both indicators suggest favorable conditions.
Fear Greed Zones by Relative Strength IndexThis is a visual modification of the relative Strength Index (RSI) to express extreme areas as fear and greed Zones.
// Input
rsiLength = input.int(14, "RSI Length", minval=1)
// RSI calculation
rsi = ta.rsi(close, rsiLength)
FEAR GREED ZONES
The "Fear Greed Zones Script" indicator is designed to help traders identify psychological levels of fear and greed in the market by utilising relative strength index. It primarily utilises the Relative Strength Index of price to gauge market sentiment, with the following key features:
Color-Codes
Dark Red: Indicates a greed zone , suggesting extreme overbought conditions (high risk) and a possible price reversal downward.
Dark Green: Represents a fear zone, indicating extreme oversold conditions (low risk) and potential for price reversal upward.
Yellow: Serves as a neutral zone with medium risk.
Usage
Market Sentiment Analysis: Traders can use the fear and greed zones to assess overall market sentiment, aligning their strategies with prevailing emotional biases. This helps in identifying potential entry and exit points based on market psychology.
Risk Management: Understanding fear or greed influences market behavior and allows traders to manage their risk more effectively with the knowledge of high or low risk areas; as they can anticipate potential reversals or continuations in price trends.
Conclusion
The "Fear Greed Zones" Script is a valuable tool for traders looking to leverage market psychology. By clearly identifying areas where fear or greed may be influencing price movements, it aids in making more informed trading decisions.
HTF LQ SweepThe following script recognises QL sweeps in the desired time frame with alarm function!
Theory:
There is liquidity above highs and below lows. If this is tapped and the market reacts strongly immediately, the probability of a reversal is greatly increased! In the chart, this is defined in such a way that a candle has its wicks BELOW the old low, but the close is ABOVE the old low. the same applies to the high, of course!
In such a case we have an "LQ Sweep"
How does the script work?
Williams 3 fractals are used as a basis. These are meaningful as lows or highs. Whenever a fractal is created, the price level is saved.
This means that not only the last fractal is relevant, but all historical fractals as long as they have not been reached!
If a candle reaches the level, but shows a rejection and closes within the level again, we have our "LQ Sweep" setup.
In the script you can select the timeframe in which the market has to be analysed. When the QL sweep occurs, an alert is triggered. This saves a lot of time because you can analyse different markets in different timeframes at the same time!
Each QL Sweep is marked in the chart when we are in the selected timeframe. These can also be deactivated so that only the last sweep is displayed.
Benefits for the trader:
An LQ sweep is a nice confirmation for a reversal.
If we have such an LQ sweep, we can wait in the lower timeframe for further confirmation, such as a structural break, to position our entries there.
The alarm function saves us a lot of time and we only go to the chart when a potential setup has been created.
You can set different time frames in the script: The selected time frame is then scanned and sends a signal when the event occurs.
Divergence Indicator Multi [TradingFinder] MACD AO RSI DIV Chart🔵 Introduction
🟣 What is Divergence in Financial Markets?
Divergence in technical analysis happens when the price of a stock moves in a direction opposite to certain indicators. This is a crucial concept in financial markets as it can signal either a trend reversal or a continuation of the current correction in the trend. Understanding divergence helps traders and analysts make more informed decisions.
🟣 Positive Regular Divergence (RD+)
A positive regular divergence occurs at the end of a downtrend, where two price lows form. This divergence appears when the price chart shows a new low, but the indicator does not follow, signaling potential buying opportunities.
Positive divergence indicates increased buying pressure and reduced selling pressure, making it a useful signal for forecasting price increases.
🟣 Negative Regular Divergence (RD-)
A negative regular divergence is seen during an uptrend when two price highs form. The price chart records a new high, but the indicator does not reflect this change, suggesting that a market downturn is likely.
This type of divergence shows strong selling pressure and weaker buying activity, which can help identify selling opportunities.
Both positive and negative divergences are powerful tools for identifying potential trend reversals and key support and resistance levels. For example, when an indicator trends upward while the price moves downward, this creates divergence, warning traders to reconsider their investment strategy.
🟣 Different Types of Divergence in Trading
1. Regular Divergence :
o Positive Regular Divergence (RD+)
o Negative Regular Divergence (RD-)
2. Hidden Divergence :
o Positive Hidden Divergence (HD+)
o Negative Hidden Divergence (HD-)
3.Time Divergence.
Note : This guide focuses specifically on Regular Divergence.
🟣 What is Regular Divergence?
Regular Divergence, often referred to as convergence, occurs when price action and indicators show conflicting patterns, usually signaling the end of a trend. Detecting regular divergence helps traders anticipate potential trend reversals or the formation of reversal patterns.
🔵 How to Use
To optimize the detection of divergence, you can adjust the Fractal Period to specify the length of time for identifying divergence patterns.
Additionally, with the Divergence Detection Method, you can select oscillators like the MACD, RSI, or AO to base divergence detection on.
Divergence in MACD :
MACD divergence occurs when the price chart forms an opposite pattern compared to the MACD line, indicating a potential price reversal.
Divergence in RSI :
In a downtrend, if the price chart forms two consecutive lows with the second lower than the first, but the RSI shows two lows with the second higher, this indicates positive regular divergence, which is a buy signal.
On the other hand, during an uptrend, if the price forms two highs with the second higher than the first, but the RSI shows the second high lower, this points to negative regular divergence, indicating a sell signal.
Divergence in AO (Awesome Oscillator) :
The AO indicator calculates histograms using the difference between 5-period and 34-period simple moving averages. It compares peaks and troughs of these histograms with price movements, detecting divergence and plotting lines and arrows to signal divergence.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
Larry Williams Valuation Index [tradeviZion]Larry Williams Valuation Index
Welcome to the Larry Williams Valuation Index by tradeviZion! This script is an interpretation of Larry Williams' famous WillVal (Valuation) Index, originally developed in 1990 to help traders determine whether a market or asset is overvalued or undervalued. We've extended it to support multiple securities and offer alerts for different valuation levels, helping you make more informed trading decisions.
What is the Valuation Index?
The Valuation Index measures how a security's current price compares to its historical price action. It helps identify whether the security is overvalued (priced too high), undervalued (priced too low), or in a normal range.
This version supports multiple securities and uses valuation parameters to help you assess the relative valuation of three securities simultaneously. It can help you determine the best times to enter (buy) or exit (sell) the market.
Key Features
Multi-Security Analysis: Analyze up to three securities simultaneously to get a broader view of market conditions.
Valuation Levels: Automatically calculate overvaluation and undervaluation levels or set manual levels for consistent analysis.
Custom Alerts: Create custom alerts when securities move between overvalued, undervalued, or normal ranges.
Customizable Table Display: Display a table with valuation values and their status on the chart.
Getting Started
Step 1: Adding the Script to Your Chart
First, add the Larry Williams Valuation Index script to your chart on TradingView. The script is designed to work with any timeframe, but for best results, use weekly or daily timeframes for a longer-term perspective.
Step 2: Configuring Securities
The script allows you to analyze up to three different securities :
Security 1 (Default: DXY)
Security 2 (Default: GC1!)
Security 3 (Default: ZB1!)
You can enable or disable each security individually.
Custom Timeframe Option: You have the option to select a custom timeframe for analysis. This allows you to see whether the security is overvalued or undervalued in lower or higher timeframes. Note that this feature is experimental and has not been extensively tested. Larry Williams originally used the weekly timeframe to determine if a stock was overvalued or undervalued. By default, the indicator compares the current price with the security based on the selected timeframe, except if you choose to use a custom timeframe.
Pro Tip : New users can start with the default securities to understand the concept before using other assets.
Step 3: Valuation Index Settings
Short EMA Length : This is the short-term average used for calculations. A lower value makes it more responsive to recent price changes.
Long EMA Length : This is the long-term average, used to smooth the valuation over time.
Valuation Length (Default: 156) : Represents approximately three years of daily bars (as recommended by Larry Williams).
How is the Valuation Index Calculated?
The valuation calculation is done using a method called WVI (WillVal Index), which compares the current price of a security to the price of another correlated security. Here’s a step-by-step explanation:
1. Data Collection: The script takes the closing price of the security you are analyzing and the closing price of the correlated security.
2. Ratio Calculation : The ratio of the two prices is calculated:
Price Ratio = (Price of your security) / (Price of correlated security) * 100.
This ratio helps determine how expensive or cheap your security is compared to the correlated one.
3. Exponential Moving Averages (EMAs) : The price ratio is used to calculate short-term and long-term EMAs (Exponential Moving Averages). EMAs are used to create smooth lines that represent the average price of a security over a specific period of time, with more weight given to recent data. By calculating both short-term and long-term EMAs, we can identify the trend direction and how the security is performing compared to its historical averages.
4. Valuation Index Calculation:
The Valuation Index is calculated as the difference between the short-term EMA and the long-term EMA. This difference helps to determine if the security is currently overvalued or undervalued:
A positive value indicates that the price is above its longer-term trend, suggesting potential overvaluation.
A negative value indicates that the price is below its longer-term trend, suggesting potential undervaluation.
5. Normalization:
To make the valuation easier to interpret, the calculated valuation index is then normalized using the highest and lowest values over the selected valuation length (e.g., 156 bars).
This normalization process converts the index into a percentage between 0 and 100, where higher values indicate overvaluation and lower values indicate undervaluation.
Step 4: Understanding Valuation Levels
The valuation levels indicate whether a security is currently undervalued, overvalued, or in a normal range.
Manual Levels : You can manually set the overvaluation and undervaluation thresholds (default is 85 for overvalued and 15 for undervalued).
Auto Levels : The script can automatically calculate these levels based on recent price action, allowing you to adapt to changing market conditions.
Auto Levels Calculation Explained:
The Auto Levels are calculated by taking the average of the valuation indices for all three securities (e.g., index1, index2, and index3).
The script then looks at the highest and lowest values of this average over a selected number of recent bars (e.g., 50 bars).
The overvaluation level is determined by taking the highest value and multiplying it by a multiplier (e.g., 5). Similarly, the undervaluation level is calculated using the lowest value and the multiplier.
These dynamic levels adjust according to recent price action, providing an adaptive approach to identifying overvalued and undervalued conditions.
Step 5: How to Use the Script to Make Trading Decisions
For new users, here's a step-by-step trading strategy you can use with the Valuation Index:
1. Identify Undervalued Opportunities
When two or more securities are in the undervalued range (below 15 for manual or below automatically calculated undervalue levels), wait for at least two of these securities to turn from undervalued to normal .
This transition indicates a potential buy opportunity .
2. Buying Signal
When at least two securities transition from undervalued to normal, you can consider buying the asset.
This indicates that the market may be recovering from undervalued conditions and could be moving into a growth phase.
3. Selling Signal
Exit when the price high closes below the EMA 21 (21-day exponential moving average).
Alternatively, if the valuation index reaches overvalued levels (above 85 manually or auto-calculated), wait for it to drop back to normal . This can be another point to exit the trade .
You can also use any other sell condition based on your r isk management strategy .
Alerts for Valuation Levels
The script includes alerts to notify you of changing market conditions:
To activate these alerts, follow these steps, referring to the provided screenshot with detailed steps:
1. Enable Alerts : Click on the settings gear icon on the script title in your chart. In the settings menu, scroll to the section labeled Alerts Settings .
Enable Alerts by checking the Enable Alerts box.
Set the Required Securities for Alert (default is 2 securities).
Choose the Alert Frequency : Selecting Once Per Bar Close will trigger alerts only at the close of each bar, ensuring you receive confirmed signals rather than potentially noisy intermediate signals.
2. Select Alert Type : Choose the type of alert you want to activate, such as Alert on Overvalued, Alert on Undervalued, Alert on Over to Normal , or Alert on Under to Normal .
3. Save Settings : Click OK to save your alert settings.
4. Add Alert on Indicator : Click the "..." (More button) next to the indicator name on the chart and select " Add alert on tradeviZion - WillVal ".
5. Create Alert : In the Create Alert window:
Set Condition to tradeviZion - WillVal .
Ensure Any alert() function call is selected.
Set the Alert Name and select your Expiration preferences.
6. Set Notification Preferences : Go to the Notifications tab and select how you want to receive notifications, such as via app notification, toast notification, email , or sound alert . Adjust these preferences to best suit your needs.
7. Click Create : Finally, click Create to activate the alert.
These alerts will help you stay informed about key market conditions and take action accordingly, ensuring you do not miss critical trading opportunities.
Understanding the Table Display
The script includes an interactive table on the chart to show the valuation status of each security:
Security : The name of the security being analyzed.
Value : The current valuation index value.
Status : Indicates whether the security is overvalued, undervalued , or in a normal range.
Color: Displays a color code for easy identification of status:
Red for overvalued.
Green for undervalued.
Other colors represent normal valuation levels.
Empowering Messages : Motivational messages are displayed to encourage disciplined trading. These messages will change periodically, helping keep a positive trading mindset.
Acknowledgment
This tool builds upon the foundational work of Larry Williams, who developed the WillVal (Valuation) Index concept. It also incorporates enhancements to extend multi-security analysis, valuation normalization, and advanced alerting features, providing a more versatile and powerful indicator. The Larry Williams Valuation Index [ tradeviZion ] helps traders make informed decisions by assessing overvalued and undervalued conditions for multiple securities simultaneously.
Note : Always practice proper risk management and thoroughly test the indicator to ensure it aligns with your trading strategy. Past performance is not indicative of future results.
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