Moments Functions
This script is a TradingView Pine Script (version 5) for calculating and plotting statistical moments of a financial series. Here's a breakdown of what it does:
Script Overview
Purpose:
The script calculates and visualizes moments such as Mean, Variance, Skewness, and Kurtosis of a price series.
It also provides the option to display log returns and various statistical bands.
Inputs:
Moments Selection: Choose from Mean, Variance, Skewness, or Excess Kurtosis.
Source Settings: Define the lookback period and source data (e.g., closing price or log returns).
Plot Settings: Control visibility and styling of plots, bands, and information panels.
Colors Settings: Customize colors for different plot elements.
Functions:
f_va(): Computes sample variance.
f_sd(): Computes sample standard deviation.
f_skew(): Computes sample skewness.
f_kurt(): Computes sample kurtosis.
seskew(): Calculates the standard error of skewness.
sekurt(): Calculates the standard error of kurtosis.
skewcv(): Computes critical values for skewness.
kurtcv(): Computes critical values for kurtosis.
Outputs:
Plots:
Moment values (Mean, Variance, Skewness, Kurtosis).
Log Returns (if selected).
Standard Deviation Bands (if selected).
Critical Values for Skewness and Kurtosis (if selected).
Information Panel: Displays current statistical values and their significance.
Customization:
Users can customize appearance and behavior of the script through various input options, including colors, line thickness, and background settings.
Key Variables and Constants
Constants:
zscoreS and zscoreL: Z-scores for confidence intervals based on sample size.
skewrv and kurtrv: Reference values for skewness and excess kurtosis.
Sample Functions:
f_va() and f_sd(): Custom functions to calculate sample variance and standard deviation.
f_skew() and f_kurt(): Custom functions to calculate skewness and kurtosis.
Critical Values:
Functions skewcv() and kurtcv() calculate critical values used to assess statistical significance of skewness and kurtosis.
Plotting
Plot Types:
Mean, variance, skewness, and excess kurtosis are plotted based on user selection.
Log returns are plotted if enabled.
Standard deviation bands and critical values are plotted if enabled.
Labels:
Information panel labels display mean, variance/standard deviation, skewness, and kurtosis values along with their significance.
Example Usage
To use this script:
Add it to a TradingView chart.
Adjust inputs to configure which statistical moments to display, the source data, and the appearance of the plots.
Review the plotted data and labels to analyze the statistical properties of the selected price series.
This script is useful for traders and analysts looking to perform advanced statistical analysis on financial data directly within TradingView.
When comparing two stock prices over a period of time, the statistical moments—mean, variance, skewness, and kurtosis—can provide a deep insight into the behavior of the stock prices and their distributions. Here’s what each moment signifies in this context:
1. Mean
Definition: The mean (or average) is the sum of the stock prices over the period divided by the number of data points. It represents the central value of the price series.
Interpretation: When comparing two stocks, the mean tells you the average price level of each stock over the period. A higher mean indicates that, on average, the stock price is higher compared to another stock with a lower mean.
Comparison Insight: If Stock A has a higher mean price than Stock B, it implies that Stock A's prices are generally higher than those of Stock B over the given period.
2. Variance
Definition: Variance measures the dispersion or spread of the stock prices around the mean. It is the average of the squared differences from the mean.
Interpretation: A higher variance indicates that the stock prices fluctuate more widely from the mean, implying greater volatility. Conversely, a lower variance indicates more stable and predictable prices.
Comparison Insight: Comparing the variances of two stocks helps in assessing which stock has more price volatility. If Stock A has a higher variance than Stock B, it means Stock A's prices are more volatile and less predictable compared to Stock B.
3. Skewness
Definition: Skewness measures the asymmetry of the distribution of stock prices around the mean. It can be positive, negative, or zero:
Positive Skewness: The distribution has a long right tail, with more frequent small returns and fewer large positive returns.
Negative Skewness: The distribution has a long left tail, with more frequent small returns and fewer large negative returns.
Zero Skewness: The distribution is symmetric around the mean.
Interpretation: Skewness tells you about the direction of outliers in the stock price distribution. Positive skewness means a higher probability of large positive returns, while negative skewness means a higher probability of large negative returns.
Comparison Insight: By comparing skewness, you can understand the nature of extreme returns for two stocks. For example, if Stock A has positive skewness and Stock B has negative skewness, Stock A might have more frequent large gains, whereas Stock B might have more frequent large losses.
4. Kurtosis
Definition: Kurtosis measures the "tailedness" of the distribution of stock prices. It indicates how much of the distribution is in the tails versus the center. High kurtosis means more outliers (extreme returns), while low kurtosis means fewer outliers.
Interpretation:
High Kurtosis: Indicates a higher likelihood of extreme price movements (both high and low) compared to a normal distribution.
Low Kurtosis: Indicates that extreme price movements are less common.
Comparison Insight: Comparing kurtosis between two stocks shows which stock has more extreme returns. If Stock A has higher kurtosis than Stock B, it means Stock A has more frequent extreme price changes, suggesting more risk or opportunities for large gains or losses.
Summary
Mean: Compares average price levels.
Variance: Compares price volatility.
Skewness: Compares the asymmetry of price movements.
Kurtosis: Compares the likelihood of extreme price changes.
By analyzing these statistical moments, you can gain a comprehensive view of how the two stocks behave relative to each other, which can inform investment decisions based on risk, return expectations, and the nature of price movements.
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WaveTrend With Divs & RSI(STOCH) Divs by WeloTradesWaveTrend with Divergences & RSI(STOCH) Divergences by WeloTrades
Overview
The "WaveTrend With Divergences & RSI(STOCH) Divergences" is an advanced Pine Script™ indicator designed for TradingView, offering a multi-dimensional analysis of market conditions. This script integrates several technical indicators—WaveTrend, Money Flow Index (MFI), RSI, and Stochastic RSI—into a cohesive tool that identifies both regular and hidden divergences across these indicators. These divergences can indicate potential market reversals and provide critical trading opportunities.
This indicator is not just a simple combination of popular tools; it offers extensive customization options, organized data presentation, and valuable trading signals that are easy to interpret. Whether you're a day trader or a long-term investor, this script enhances your ability to make informed decisions.
Originality and Usefulness
The originality of this script lies in its integration and the synergy it creates among the indicators used. Rather than merely combining multiple indicators, this script allows them to work together, enhancing each other's strengths. For example, by identifying divergences across WaveTrend, RSI, and Stochastic RSI simultaneously, the script provides multiple layers of confirmation, which reduces the likelihood of false signals and increases the reliability of trading signals.
The usefulness of this script is apparent in its ability to offer a consolidated view of market dynamics. It not only simplifies the analytical process by combining different indicators but also provides deeper insights through its divergence detection features. This comprehensive approach is designed to help traders identify potential market reversals, confirm trends, and ultimately make more informed trading decisions.
How the Components Work Together
1. Cross-Validation of Signals
WaveTrend: This indicator is primarily used to identify overbought and oversold conditions, as well as potential buy and sell signals. WaveTrend's ability to smooth price data and reduce noise makes it a reliable tool for identifying trend reversals.
RSI & Stochastic RSI: These momentum oscillators are used to measure the speed and change of price movements. While RSI identifies general overbought and oversold conditions, Stochastic RSI offers a more granular view by tracking the RSI’s level relative to its high-low range over a period of time. When these indicators align with WaveTrend signals, it adds a layer of confirmation that enhances the reliability of the signals.
Money Flow Index (MFI): This volume-weighted indicator assesses the inflow and outflow of money in an asset, giving insights into buying and selling pressure. By analyzing the MFI alongside WaveTrend and RSI indicators, the script can cross-validate signals, ensuring that buy or sell signals are supported by actual market volume.
Example Bullish scenario:
When a bullish divergence is detected on the RSI and confirmed by a corresponding bullish signal on the WaveTrend, along with an increasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
Example Bearish scenario:
When a bearish divergence is detected on the RSI and confirmed by a corresponding bearish signal on the WaveTrend, along with an decreasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
2. Divergence Detection and Market Reversals
Regular Divergences: Occur when the price action and an indicator (like RSI or WaveTrend) move in opposite directions. Regular bullish divergence signals a potential upward reversal when the price makes a lower low while the indicator makes a higher low. Conversely, regular bearish divergence suggests a downward reversal when the price makes a higher high, but the indicator makes a lower high.
Hidden Divergences: These occur when the price action and indicator move in the same direction, but with different momentum. Hidden bullish divergence suggests the continuation of an uptrend, while hidden bearish divergence suggests the continuation of a downtrend. By detecting these divergences across multiple indicators, the script identifies potential trend reversals or continuations with greater accuracy.
Example: The script might detect a regular bullish divergence on the WaveTrend while simultaneously identifying a hidden bullish divergence on the RSI. This combination suggests that while a trend reversal is possible, the overall market sentiment remains bullish, providing a nuanced view of the market.
A Regular Bullish Divergence Example:
A Hidden Bullish Divergence Example:
A Regular Bearish Divergence Example:
A Hidden Bearish Divergence Example:
3. Trend Strength and Sentiment Analysis
WaveTrend: Measures the strength and direction of the trend. By identifying the extremes of market sentiment (overbought and oversold levels), WaveTrend provides early signals for potential reversals.
Money Flow Index (MFI): Assesses the underlying sentiment by analyzing the flow of money. A rising MFI during an uptrend confirms strong buying pressure, while a falling MFI during a downtrend confirms selling pressure. This helps traders assess whether a trend is likely to continue or reverse.
RSI & Stochastic RSI: Offer a momentum-based perspective on the trend’s strength. High RSI or Stochastic RSI values indicate that the asset may be overbought, suggesting a potential reversal. Conversely, low values indicate oversold conditions, signaling a possible upward reversal.
Example:
During a strong uptrend, the WaveTrend & RSI's might signal overbought conditions, suggesting caution. If the MFI also shows decreasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Example:
During a strong downtrend, the WaveTrend & RSI's might signal oversold conditions, suggesting caution. If the MFI also shows increasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Conclusion
The "WaveTrend With Divergences & RSI(STOCH) Divergences" script offers a powerful, integrated approach to technical analysis by combining trend, momentum, and sentiment indicators into a single tool. Its unique value lies in the cross-validation of signals, the ability to detect divergences, and the comprehensive view it provides of market conditions. By offering traders multiple layers of analysis and customization options, this script is designed to enhance trading decisions, reduce false signals, and provide clearer insights into market dynamics.
WAVETREND
Display of WaveTrend:
Display of WaveTrend Setting:
WaveTrend Indicator Explanation
The WaveTrend indicator helps identify overbought and oversold conditions, as well as potential buy and sell signals. Its flexibility allows traders to adapt it to various strategies, making it a versatile tool in technical analysis.
WaveTrend Input Settings:
WT MA Source: Default: HLC3
What it is: The data source used for calculating the WaveTrend Moving Average.
What it does: Determines the input data to smooth price action and filter noise.
Example: Using HLC3 (average of High, Low, Close) provides a smoother data representation compared to using just the closing price.
Length (WT MA Length): Default: 3
What it is: The period used to calculate the Moving Average.
What it does: Adjusts the sensitivity of the WaveTrend indicator, where shorter lengths respond more quickly to price changes.
Example: A length of 3 is ideal for short-term analysis, providing quick reactions to price movements.
WT Channel Length & Average: Default: WT Channel Length = 9, Average = 12
What it is: Lengths used to calculate the WaveTrend channel and its average.
What it does: Smooths out the WaveTrend further, reducing false signals by averaging over a set period.
Example: Higher values reduce noise and help in identifying more reliable trends.
Channel: Style, Width, and Color:
What it is: Customization options for the WaveTrend channel's appearance.
What it does: Adjusts how the channel is displayed, including line style, width, and color.
Example: Choosing an area style with a distinct color can make the WaveTrend indicator clearly visible on the chart.
WT Buy & Sell Signals:
What it is: Settings to enable and customize buy and sell signals based on WaveTrend.
What it does: Allows for the display of buy/sell signals and customization of their shapes and colors.
When it gives a Buy Signal: Generated when the WaveTrend line crosses below an oversold level and then rises back, indicating a potential upward price movement.
When it gives a Sell Signal: Triggered when the WaveTrend line crosses above an overbought level and then declines, suggesting a possible downward trend.
Example: The script identifies these signals based on mean reversion principles, where prices tend to revert to the mean after reaching extremes. Traders can use these signals to time their entries and exits effectively.
WAVETREND OVERBOUGTH AND OVERSOLD LEVELS
Display of WaveTrend with Overbought & Oversold Levels:
Display of WaveTrend Overbought & Oversold Levels Settings:
WaveTrend Overbought & Oversold Levels Explanation
WT OB & OS Levels: Default: OB Level 1 = 53, OB Level 2 = 60, OS Level 1 = -53, OS Level 2 = -60
What it is: The default overbought and oversold levels used by the WaveTrend indicator to signal potential market reversals.
What it does: When the WaveTrend crosses above the OB levels, it indicates an overbought condition, potentially signaling a reversal or selling opportunity. Conversely, when it crosses below the OS levels, it indicates an oversold condition, potentially signaling a reversal or buying opportunity.
Example: A trader might use these levels to time entry or exit points, such as selling when the WaveTrend crosses into the overbought zone or buying when it crosses into the oversold zone.
Show OB/OS Levels: Default: True
What it is: Toggle options to show or hide the overbought and oversold levels on your chart.
What it does: When enabled, these levels will be visually represented on your chart, helping you to easily identify when the market reaches these critical thresholds.
Example: Displaying these levels can help you quickly see when the WaveTrend is approaching or has crossed into overbought or oversold territory, allowing for more informed trading decisions.
Line Style, Width, and Color for OB/OS Levels:
What it is: Options to customize the appearance of the OB and OS levels on your chart, including line style (solid, dotted, dashed), line width, and color.
What it does: These settings allow you to adjust how prominently these levels are displayed on your chart, which can help you better visualize and respond to overbought or oversold conditions.
Example: Setting a thicker, dashed line in a contrasting color can make these levels stand out more clearly, aiding in quick visual identification.
Example of Use:
Scenario: A trader wants to identify potential selling points when the market is overbought. They set the OB levels at 53 and 60, choosing a solid, red line style to make these levels clear on their chart. As the WaveTrend crosses above 53, they monitor for further price action, and upon crossing 60, they consider initiating a sell order.
WAVETREND DIVERGENCES
Display of WaveTrend Divergence:
Display of WaveTrend Divergence Setting:
WaveTrend Divergence Indicator Explanation
The WaveTrend Divergence feature helps identify potential reversal points in the market by highlighting divergences between the price and the WaveTrend indicator. Divergences can signal a shift in market momentum, indicating a possible trend reversal. This component allows traders to visualize and customize divergence detection on their charts.
WaveTrend Divergence Input Settings:
Potential Reversal Range: Default: 28
What it is: The number of bars to look back when detecting potential tops and bottoms.
What it does: Sets the range for identifying possible reversal points based on historical data.
Example: A setting of 28 looks back across the last 28 bars to find reversal points, offering a balance between responsiveness and reliability.
Reversal Minimum LVL OB & OS: Default: OB = 35, OS = -35
What it is: The minimum overbought and oversold levels required for detecting potential reversals.
What it does: Adjusts the thresholds that trigger a reversal signal based on the WaveTrend indicator.
Example: A higher OB level reduces the sensitivity to overbought conditions, potentially filtering out false reversal signals.
Lookback Bar Left & Right: Default: Left = 10, Right = 1
What it is: The number of bars to the left and right used to confirm a top or bottom.
What it does: Helps determine the position of peaks and troughs in the price action.
Example: A larger left lookback captures more extended price action before the peak, while a smaller right lookback focuses on the immediate past.
Lookback Range Min & Max: Default: Min = 5, Max = 60
What it is: The minimum and maximum range for the lookback period when identifying divergences.
What it does: Fine-tunes the detection of divergences by controlling the range over which the indicator looks back.
Example: A wider range increases the chances of detecting divergences across different market conditions.
R.Div Minimum LVL OB & OS: Default: OB = 53, OS = -53
What it is: The threshold levels for detecting regular divergences.
What it does: Adjusts the sensitivity of the regular divergence detection.
Example: Higher thresholds make the detection more conservative, identifying only stronger divergence signals.
H.Div Minimum LVL OB & OS: Default: OB = 20, OS = -20
What it is: The threshold levels for detecting hidden divergences.
What it does: Similar to regular divergence settings but for hidden divergences, which can indicate potential reversals that are less obvious.
Example: Lower thresholds make the hidden divergence detection more sensitive, capturing subtler market shifts.
Divergence Label Options:
What it is: Options to display and customize labels for regular and hidden divergences.
What it does: Allows users to visually differentiate between regular and hidden divergences using customizable labels and colors.
Example: Using different colors and symbols for regular (R) and hidden (H) divergences makes it easier to interpret signals on the chart.
Text Size and Color:
What it is: Customization options for the size and color of divergence labels.
What it does: Adjusts the readability and visibility of divergence labels on the chart.
Example: Larger text size may be preferred for charts with a lot of data, ensuring divergence labels stand out clearly.
FAST & SLOW MONEY FLOW INDEX
Display of Fast & Slow Money Flow:
Display of Fast & Slow Money Flow Setting:
Fast Money Flow Indicator Explanation
The Fast Money Flow indicator helps traders identify the flow of money into and out of an asset over a shorter time frame. By tracking the volume-weighted average of price movements, it provides insights into buying and selling pressure in the market, which can be crucial for making timely trading decisions.
Fast Money Flow Input Settings:
Fast Money Flow: Length: Default: 9
What it is: The period used for calculating the Fast Money Flow.
What it does: Determines the sensitivity of the Money Flow calculation. A shorter length makes the indicator more responsive to recent price changes, while a longer length provides a smoother signal.
Example: A length of 9 is suitable for traders looking to capture quick shifts in market sentiment over a short period.
Fast MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, effectively amplifying or reducing the visual impact of the indicator.
Example: A higher multiplier can make the Money Flow more prominent on the chart, aiding in the quick identification of significant money flow changes.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Fast Money Flow plot on the chart.
What it does: Allows you to move the Money Flow plot up or down on the chart to avoid overlap with other indicators.
Example: Adjusting the Y Position can be useful if you have multiple indicators on the chart and need to maintain clarity.
Fast MFI Style, Width, and Color:
What it is: Customization options for how the Fast Money Flow is displayed on the chart.
What it does: Enables you to choose between different plot styles (line or area), set the line width, and select colors for positive and negative money flow.
Example: Using different colors for positive (green) and negative (red) money flow helps to visually distinguish between periods of buying and selling pressure.
Slow Money Flow Indicator Explanation
The Slow Money Flow indicator tracks the flow of money into and out of an asset over a longer time frame. It provides a broader perspective on market sentiment, smoothing out short-term fluctuations and highlighting longer-term trends.
Slow Money Flow Input Settings:
Slow Money Flow: Length: Default: 12
What it is: The period used for calculating the Slow Money Flow.
What it does: A longer period smooths out short-term fluctuations, providing a clearer view of the overall money flow trend.
Example: A length of 12 is often used by traders looking to identify sustained trends rather than short-term volatility.
Slow MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Slow Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, helping to emphasize the indicator’s significance.
Example: Increasing the multiplier can help highlight the Money Flow in markets with less volatile price action.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Slow Money Flow plot on the chart.
What it does: Allows for vertical repositioning of the Money Flow plot to maintain chart clarity when used with other indicators.
Example: Adjusting the Y Position ensures that the Slow Money Flow indicator does not overlap with other key indicators on the chart.
Slow MFI Style, Width, and Color:
What it is: Customization options for the visual display of the Slow Money Flow on the chart.
What it does: Allows you to choose the plot style (line or area), set the line width, and select colors to differentiate positive and negative money flow.
Example: Customizing the colors for the Slow Money Flow allows traders to quickly distinguish between buying and selling trends in the market.
RSI
Display of RSI:
Display of RSI Setting:
RSI Indicator Explanation
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in the market, providing traders with potential signals for buying or selling.
RSI Input Settings:
RSI Source: Default: Close
What it is: The data source used for calculating the RSI.
What it does: Determines which price data (e.g., close, open) is used in the RSI calculation, affecting how the indicator reflects market conditions.
Example: Using the closing price is standard practice, as it reflects the final agreed-upon price for a given time period.
MA Type (Moving Average Type): Default: SMA
What it is: The type of moving average applied to the RSI for smoothing purposes.
What it does: Changes the smoothing technique of the RSI, impacting how quickly the indicator responds to price movements.
Example: Using an Exponential Moving Average (EMA) will make the RSI more sensitive to recent price changes compared to a Simple Moving Average (SMA).
RSI Length: Default: 14
What it is: The period over which the RSI is calculated.
What it does: Adjusts the sensitivity of the RSI. A shorter length (e.g., 7) makes the RSI more responsive to recent price changes, while a longer length (e.g., 21) smooths out the indicator, reducing the number of signals.
Example: A 14-period RSI is commonly used for identifying overbought and oversold conditions, providing a balance between sensitivity and reliability.
RSI Plot Style, Width, and Color:
What it is: Options to customize the appearance of the RSI line on the chart.
What it does: Allows you to adjust the visual representation of the RSI, including the line width and color.
Example: Setting a thicker line width and a bright color like yellow can make the RSI more visible on the chart, aiding in quick analysis.
Display of RSI with RSI Moving Average:
RSI Moving Average Explanation
The RSI Moving Average adds a smoothing layer to the RSI, helping to filter out noise and provide clearer signals. It is particularly useful for confirming trend strength and identifying potential reversals.
RSI Moving Average Input Settings:
MA Length: Default: 14
What it is: The period over which the Moving Average is calculated on the RSI.
What it does: Adjusts the smoothing of the RSI, helping to reduce false signals and provide a clearer trend indication.
Example: A 14-period moving average on the RSI can smooth out short-term fluctuations, making it easier to spot genuine overbought or oversold conditions.
MA Plot Style, Width, and Color:
What it is: Customization options for how the RSI Moving Average is displayed on the chart.
What it does: Allows you to adjust the line width and color, helping to differentiate the Moving Average from the main RSI line.
Example: Using a contrasting color for the RSI Moving Average (e.g., magenta) can help it stand out against the main RSI line, making it easier to interpret the indicator.
STOCHASTIC RSI
Display of Stochastic RSI:
Display of Stochastic RSI Setting:
Stochastic RSI Indicator Explanation
The Stochastic RSI (Stoch RSI) is a momentum oscillator that measures the level of the RSI relative to its high-low range over a set period of time. It is used to identify overbought and oversold conditions, providing potential buy and sell signals based on momentum shifts.
Stochastic RSI Input Settings:
Stochastic RSI Length: Default: 14
What it is: The period over which the Stochastic RSI is calculated.
What it does: Adjusts the sensitivity of the Stochastic RSI. A shorter length makes the indicator more responsive to recent price changes, while a longer length smooths out the fluctuations, reducing noise.
Example: A length of 14 is commonly used to identify momentum shifts over a medium-term period, providing a balanced view of potential overbought or oversold conditions.
Display of Stochastic RSI %K Line:
Stochastic RSI %K Line Explanation
The %K line in the Stochastic RSI is the main line that tracks the momentum of the RSI over the chosen period. It is the faster-moving component of the Stochastic RSI, often used to identify entry and exit points.
Stochastic RSI %K Input Settings:
%K Length: Default: 3
What it is: The period used for smoothing the %K line of the Stochastic RSI.
What it does: Smoothing the %K line helps reduce noise and provides a clearer signal for potential market reversals.
Example: A smoothing length of 3 is common, offering a balance between responsiveness and noise reduction, making it easier to spot significant momentum shifts.
%K Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %K line.
What it does: Allows you to adjust the appearance of the %K line on the chart, including line width and color, to fit your visual preferences.
Example: Setting a blue color and a medium width for the %K line makes it stand out clearly on the chart, helping to identify key points of momentum change.
%K Fill Color (Above):
What it is: The fill color that appears above the %K line on the chart.
What it does: Adds visual clarity by shading the area above the %K line, making it easier to interpret the direction and strength of momentum.
Example: Using a light blue fill color above the %K line can help emphasize bullish momentum, making it visually prominent.
Display of Stochastic RSI %D Line:
Stochastic RSI %D Line Explanation
The %D line in the Stochastic RSI is a moving average of the %K line and acts as a signal line. It is slower-moving compared to the %K line and is often used to confirm signals or identify potential reversals when it crosses the %K line.
Stochastic RSI %D Input Settings:
%D Length: Default: 3
What it is: The period used for smoothing the %D line of the Stochastic RSI.
What it does: Smooths out the %D line, making it less sensitive to short-term fluctuations and more reliable for identifying significant market signals.
Example: A length of 3 is often used to provide a smoothed signal line that can help confirm trends or reversals indicated by the %K line.
%D Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %D line.
What it does: Allows you to adjust the appearance of the %D line on the chart, including line width and color, to match your preferences.
Example: Setting an orange color and a thicker line width for the %D line can help differentiate it from the %K line, making crossover points easier to spot.
%D Fill Color (Below):
What it is: The fill color that appears below the %D line on the chart.
What it does: Adds visual clarity by shading the area below the %D line, making it easier to interpret bearish momentum.
Example: Using a light orange fill color below the %D line can highlight bearish conditions, making it visually easier to identify.
RSI & STOCHASTIC RSI OVERBOUGHT AND OVERSOLD LEVELS
Display of RSI & Stochastic with Overbought & Oversold Levels:
Display of RSI & Stochastic Overbought & Oversold Settings:
RSI & Stochastic Overbought & Oversold Levels Explanation
The Overbought (OB) and Oversold (OS) levels for RSI and Stochastic RSI indicators are key thresholds that help traders identify potential reversal points in the market. These levels are used to determine when an asset is likely overbought or oversold, which can signal a potential trend reversal.
RSI & Stochastic Overbought & Oversold Input Settings:
RSI & Stochastic Level 1 Overbought (OB) & Oversold (OS): Default: OB Level = 170, OS Level = 130
What it is: The first set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: When the RSI or Stochastic RSI crosses above the overbought level, it suggests that the asset might be overbought, potentially signaling a sell opportunity. Conversely, when these indicators drop below the oversold level, it suggests the asset might be oversold, potentially signaling a buy opportunity.
Example: If the RSI crosses above 170, traders might look for signs of a potential trend reversal to the downside, while a cross below 130 might indicate a reversal to the upside.
RSI & Stochastic Level 2 Overbought (OB) & Oversold (OS): Default: OB Level = 180, OS Level = 120
What it is: The second set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: These levels provide an additional set of reference points, allowing traders to differentiate between varying degrees of overbought and oversold conditions, potentially leading to more refined trading decisions.
Example: When the RSI crosses above 180, it might indicate an extreme overbought condition, which could be a stronger signal for a sell, while a cross below 120 might indicate an extreme oversold condition, which could be a stronger signal for a buy.
RSI & Stochastic Overbought (OB) Band Customization:
OB Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first overbought band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first overbought band, enhancing its visibility on the chart.
Example: A dashed red line with medium width can clearly indicate the first overbought level, helping traders quickly identify when this threshold is crossed.
OB Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second overbought band on the chart.
What it does: Allows you to set the line width, style, and color for the second overbought band, providing a clear distinction from the first band.
Example: A dashed red line with a slightly thicker width can represent a more significant overbought level, making it easier to differentiate from the first level.
RSI & Stochastic Oversold (OS) Band Customization:
OS Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first oversold band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first oversold band, making it visually prominent.
Example: A dashed green line with medium width can highlight the first oversold level, helping traders identify potential buying opportunities.
OS Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second oversold band on the chart.
What it does: Allows you to set the line width, style, and color for the second oversold band, providing an additional visual cue for extreme oversold conditions.
Example: A dashed green line with a thicker width can represent a more significant oversold level, offering a stronger visual cue for potential buying opportunities.
RSI DIVERGENCES
Display of RSI Divergence Labels:
Display of RSI Divergence Settings:
RSI Divergence Lookback Explanation
The RSI Divergence settings allow traders to customize the parameters for detecting divergences between the RSI (Relative Strength Index) and price action. Divergences occur when the price moves in the opposite direction to the RSI, potentially signaling a trend reversal. These settings help refine the accuracy of divergence detection by adjusting the lookback period and range. ( NOTE: This setting only imply to the RSI. This doesn't effect the STOCHASTIC RSI. )
RSI Divergence Lookback Input Settings:
Lookback Left: Default: 10
What it is: The number of bars to look back from the current bar to detect a potential divergence.
What it does: Defines the left-side lookback period for identifying pivot points in the RSI, which are used to spot divergences. A longer lookback period may capture more significant trends but could also miss shorter-term divergences.
Example: A setting of 10 bars means the script will consider pivot points up to 10 bars before the current bar to check for divergence patterns.
Lookback Right: Default: 1
What it is: The number of bars to look forward from the current bar to complete the divergence pattern.
What it does: Defines the right-side lookback period for confirming a potential divergence. This setting helps ensure that the identified divergence is valid by allowing the script to check subsequent bars for confirmation.
Example: A setting of 1 bar means the script will look at the next bar to confirm the divergence pattern, ensuring that the signal is reliable.
Lookback Range Min: Default: 5
What it is: The minimum range of bars required to detect a valid divergence.
What it does: Sets a lower bound on the range of bars considered for divergence detection. A lower minimum range might capture more frequent but possibly less significant divergences.
Example: Setting the minimum range to 5 ensures that only divergences spanning at least 5 bars are considered, filtering out very short-term patterns.
Lookback Range Max: Default: 60
What it is: The maximum range of bars within which a divergence can be detected.
What it does: Sets an upper bound on the range of bars considered for divergence detection. A larger maximum range might capture more significant divergences but could also include less relevant long-term patterns.
Example: Setting the maximum range to 60 bars allows the script to detect divergences over a longer timeframe, capturing more extended divergence patterns that could indicate major trend reversals.
RSI Divergence Explanation
RSI divergences occur when the RSI indicator and price action move in opposite directions, signaling potential trend reversals. This section of the settings allows traders to customize the appearance and detection of both regular and hidden bullish and bearish divergences.
RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a green label color and a distinct line width makes bullish divergences easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing a red label color and a specific line width makes bearish divergences clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer green color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted red color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
STOCHASTIC DIVERGENCES
Display of Stochastic RSI Divergence Labels:
Display of Stochastic RSI Divergence Settings:
Stochastic RSI Divergence Explanation
Stochastic RSI divergences occur when the Stochastic RSI indicator and price action move in opposite directions, signaling potential trend reversals. These settings allow traders to customize the detection and visual representation of both regular and hidden bullish and bearish divergences in the Stochastic RSI.
Stochastic RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the Stochastic RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence in the Stochastic RSI suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a blue label color and a distinct line width makes bullish divergences in the Stochastic RSI easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the Stochastic RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence in the Stochastic RSI suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing an orange label color and a specific line width makes bearish divergences in the Stochastic RSI clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the Stochastic RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence in the Stochastic RSI signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer blue color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the Stochastic RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence in the Stochastic RSI signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted orange color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for Stochastic RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
Alert System:
Custom Alerts for Divergences and Reversals:
What it is: The script includes customizable alert conditions to notify you of detected divergences or potential reversals based on WaveTrend, RSI, and Stochastic RSI.
What it does: Helps you stay informed of key market movements without constantly monitoring the charts, enabling timely decisions.
Example: Setting an alert for regular bearish divergence on the WaveTrend could notify you of a potential sell opportunity as soon as it is detected.
How to Use Alerts:
Set up custom alerts in TradingView based on these conditions to be notified of potential trading opportunities. Alerts are triggered when the indicator detects conditions that match the selected criteria, such as divergences or potential reversals.
By following the detailed guidelines and examples above, you can effectively use and customize this powerful indicator to suit your trading strategy.
For further understanding and customization, refer to the input settings within the script and adjust them to match your trading style and preferences.
How Components Work Together
Synergy and Cross-Validation: The indicator combines multiple layers of analysis to validate trading signals. For example, a WaveTrend buy signal that coincides with a bullish divergence in RSI and positive fast money flow is likely to be more reliable than any single indicator’s signal. This cross-validation reduces the likelihood of false signals and enhances decision-making.
Comprehensive Market Analysis: Each component plays a role in analyzing different aspects of the market. WaveTrend focuses on trend strength, Money Flow indicators assess market sentiment, while RSI and Stochastic RSI offer detailed views of price momentum and potential reversals.
Ideal For
Traders who require a reliable, multifaceted tool for detecting market trends and reversals.
Investors seeking a deeper understanding of market dynamics across different timeframes and conditions, whether in forex, equities, or cryptocurrency markets.
This script is designed to provide a comprehensive tool for technical analysis, combining multiple indicators and divergence detection into one versatile and customizable script. It is especially useful for traders who want to monitor various indicators simultaneously and look for convergence or divergence signals across different technical tools.
Acknowledgements
Special thanks to these amazing creators for inspiration and their creations:
I want to thank these amazing creators for creating there amazing indicators , that inspired me and also gave me a head start by making this indicator! Without their amazing indicators it wouldn't be possible!
vumanchu: VuManChu Cipher B Divergences.
MisterMoTa: RSI + Divergences + Alerts .
DevLucem: Plain Stochastic Divergence.
Note
This indicator is designed to be a powerful tool in your trading arsenal. However , it is essential to backtest and adjust the settings according to your trading strategy before applying it to live trading . If you have any questions or need further assistance, feel free to reach out.
Scalp Slayer (i)📊 The Foundation: Core Parameters and Inputs
Filter Number: This parameter is the cornerstone of the script’s sensitivity control. It adjusts the threshold for market volatility that the script considers significant enough for a trade. By default, it's set to 1.5, striking a balance between aggressiveness and conservatism. Traders can tweak this number to make the script more or less sensitive to price fluctuations. A higher number captures smaller, more frequent price movements, ideal for an aggressive trading style. Conversely, a lower number filters out minor noise, focusing on more substantial movements.
EMA Trend Period: The Exponential Moving Average (EMA) is critical for identifying the market's direction. The script uses an EMA calculated over a default period of 50 bars to discern whether the market is trending up or down. This helps in making decisions that align with the overall market trend, thereby increasing the likelihood of successful trades.
Lookback Period: This parameter, set to 20 periods by default, is used to calculate recent highs and lows. These values are crucial for setting realistic take profit and stop-loss levels, as they reflect recent market behavior. The lookback period helps the script adapt to current market conditions by analyzing recent price actions to identify key support and resistance levels.
Color Settings: For enhanced visualization, the script allows customization of colors for take profit and stop-loss markers. By default, take profit levels are marked in orange, and stop-loss levels in red. This color coding helps traders quickly identify important levels on the chart.
Visibility Controls: The script includes options to toggle the display of buy and sell labels, as well as to enable or disable strategy plotting for backtesting and real-time analysis. These controls help traders tailor the script’s visual output to their preferences, making it easier to focus on key trading signals.
🛠️ The Mechanics: How "Scalp Slayer (i)" Operates
1. Calculating the Trading Range and Trend EMA
True Range Calculation: The script begins by calculating the true range, which is the difference between the high and low prices of a bar. This measure of volatility is crucial for identifying significant price movements.
EMA of True Range: The script then smooths the true range using an Exponential Moving Average (EMA). This helps filter out minor price fluctuations, ensuring that the script only reacts to meaningful changes in price. The sensitivity of this filter is adjusted by the filter number, which multiplies the EMA to fine-tune the script's responsiveness to price changes.
Trend EMA: To determine the market’s trend, the script calculates an EMA over the close prices for the specified trend period (default is 50). This trend EMA acts as a benchmark for identifying whether the market is trending up or down. The script uses this trend filter to ensure trades are made in the direction of the prevailing market trend, thereby reducing the risk of trading against the trend.
2. Identifying Recent Highs and Lows
Recent Highs and Lows: The script uses the lookback period to identify the highest and lowest prices over a set number of bars. These recent highs and lows serve as reference points for setting take profit and stop-loss levels. By analyzing recent price action, the script ensures that these levels are relevant to current market conditions, providing a dynamic and contextually accurate approach to risk management.
🔄 Strategic Entry and Exit Conditions
3. Defining Buy and Sell Conditions
Buy Condition: The script establishes a set of criteria for entering a buy trade. First, the closing price must be above the trend EMA, indicating an upward trend. Additionally, the script looks for a sequence of candles showing progressively higher closes, signifying strong upward momentum. The current trading range must exceed the EMA of the true range, confirming that the market is experiencing significant movement. This combination of trend alignment and momentum ensures that buy trades are placed in favorable market conditions.
Sell Condition: Similarly, for sell trades, the script requires the closing price to be below the trend EMA, indicating a downward trend. It also checks for a sequence of candles with progressively lower closes, indicating strong downward momentum. The trading range must again exceed the EMA of the true range, ensuring that the market is moving significantly. These conditions help ensure that sell trades are only taken when the market is likely to continue moving downwards, increasing the chances of profitable trades.
4. Executing Trades and Setting Profit Targets
Long Entry: When the buy condition is met, the script enters a long position at the closing price of the confirmation bar. It then sets a take profit level at the recent high, which serves as a realistic target based on recent price action. The stop-loss level is set at the recent low, providing a safety net against adverse price movements. This approach ensures that trades are closed at optimal points, maximizing profit while minimizing risk.
Short Entry: When the sell condition is met, the script enters a short position at the closing price of the confirmation bar. The take profit level is set at the recent low, and the stop-loss level is set at the recent high. This setup ensures that short trades are closed at favorable levels, capturing gains while protecting against potential losses.
5. Managing Take Profit and Stop Loss
Take Profit and Stop Loss Mechanism: The script continually monitors the market for conditions that meet the take profit or stop-loss criteria. For long trades, the script closes the position if the price reaches or exceeds the take profit level, ensuring profits are locked in. It also closes the position if the price drops to or below the stop-loss level, preventing further losses. For short trades, the script closes the position if the price drops to or below the take profit level, or rises to or above the stop-loss level. This dynamic management of trades helps ensure that profits are maximized while risks are minimized.
🌟 Enhanced Visuals and Debugging Features
Customizable and Informative Plots
Buy and Sell Labels: The script includes options to display labels for buy and sell signals on the chart. These labels provide clear visual cues for trading opportunities, making it easy to identify entry points at a glance. Traders can customize the visibility of these labels based on their preferences, helping them focus on the most important signals.
Take Profit and Stop Loss Markers: To aid in monitoring trades, the script displays distinctive markers for take profit and stop-loss levels. These markers are color-coded for easy differentiation and are placed on the chart to provide clear indications of where trades are likely to be closed. This visual representation helps traders quickly assess the status of their trades and make informed decisions.
Trend and Price Plots: The script plots the trend EMA and recent highs/lows on the chart for quick reference. These plots provide a visual representation of key levels and trends, helping traders make more informed decisions based on current market conditions. By displaying these critical levels, the script enhances situational awareness and aids in the decision-making process.
Debugging and Validation Tools
Bar Index Plotting: For those interested in validating the script's performance, the script includes options to plot the bar index. This feature allows traders to monitor the script's behavior in real-time, ensuring that it is functioning as expected. This can be particularly useful for debugging and optimizing the script.
Condition Printing: The script also includes options to print detailed information about take profit and stop-loss conditions. This feature provides insights into the script's decision-making process, helping traders understand why certain trades were executed or closed. By providing transparency into the script's logic, this feature aids in fine-tuning and improving the script's performance.
Swing High/Low & EMA Cross AlertScript Description:
This script on TradingView combines the detection of Swing High/Low points with exponential moving average (EMA) crossovers to provide buy and sell alerts and to mark swing points on the chart.
What the Script Does:
Swing High/Low Detection:
Uses the ta.pivothigh function to detect significant high points and the ta.pivotlow function to detect significant low points.
For each detected point, the script checks if it is a new higher high (HH) or lower high (LH) for the highs, and a new lower low (LL) or higher low (HL) for the lows.
Creates visual labels to identify these points on the chart, helping traders to visualize potential reversal points.
EMA Crossover:
Calculates two EMAs: a fast EMA (fastEMA) with a default period of 50 and a slow EMA (slowEMA) with a default period of 200.
Detects bullish crossovers (when fastEMA crosses above slowEMA) and bearish crossunders (when fastEMA crosses below slowEMA).
Generates buy and sell alerts based on these crossovers.
How the Script Works:
EMA Calculation: EMAs are calculated using the closing prices and user-defined periods.
Swing High/Low Detection: Uses the high and low values from the previous length bars to determine the swing points.
Alert Generation: Alerts are triggered when crossovers between the EMAs occur.
How to Use the Script:
Add to Chart: Insert the script into TradingView and apply it to the desired chart.
Configure Parameters:
Adjust the detection period for swing points (length).
Configure the periods for the EMAs (fastLen and slowLen).
Customize the colors for the swing point labels as per your preference.
Monitor Alerts: Use the EMA crossover alerts to make buy or sell decisions. Observe the swing point labels to identify potential trend reversals.
Justification for the Combination:
EMAs: Widely used to identify trend direction. Combining a fast EMA with a slow EMA helps capture both short-term and long-term trend changes.
Swing High/Low: Identifies reversal points in price, which are crucial for determining potential entry and exit points in trades.
Combination:
Combining EMAs and Swing High/Low provides a comprehensive view of price behavior, helping traders to effectively identify trends and reversal points.
This script is useful for traders who want to combine trend analysis (via EMAs) with the identification of reversal points (Swing High/Low), providing a more complete view of price behavior on the chart.
Multi-Timeframe MA Levels█ OVERVIEW
This Pine Script is an indicator for displaying multiple moving average (MA) levels from several timeframes on your TradingView charts. At the Realtime Bar (the right-most bar on your chart), it draws a line where the various moving averages currently are.
For example, it will show you where the 8 EMA on the 5 minute timeframe is on your 1-minute timeframe chart.
It derives its look and function from "Lepelle's Key Levels" and focuses on visualizing various moving averages to complement this indicator.
█ FEATURES
1 — Multi-Timeframe Analysis:
• The script allows traders to view moving averages from different timeframes on a single chart.
This multi-timeframe approach helps identify significant levels and trends that might not be apparent when looking at a single timeframe.
2 — Customization and Flexibility:
• Extensive input options for customizing the appearance of the lines (width, style, color) and labels (size, position, distance from price).
This ensures that the indicator can be tailored to individual preferences and charting styles.
3 — Multiple Moving Averages:
• Support for various types of moving averages (8 EMA, 21 EMA, 50 SMA, 100 SMA, 200 SMA).
Each moving average can be individually enabled or disabled for specific timeframes,
providing a flexible tool for technical analysis.
█ SETTINGS
Inputs for Styling:
• Controls the appearance of the lines and labels.
• Includes options for line width, line style, text size, distance from the candlesticks, label position,
and whether to hide prices or use shorthand notation.
Moving Averages Settings:
• Inputs to select different moving averages (8 EMA, 21 EMA, 50 SMA, 100 SMA, 200 SMA) and their corresponding colors.
• Boolean inputs to enable or disable these moving averages on various timeframes (2 min, 5 min, hourly, daily).
█ SUMMARY
In essence, this script provides a comprehensive tool for technical analysis by combining multi-timeframe moving averages into a single, customizable, and user-friendly indicator. It enhances traders' ability to make informed decisions by providing clear visual representations of key moving average levels across different timeframes.
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█ LIMITATIONS
This script is best used with a short timeframe such as 1-minute or lower because of the limitations of Multi-Timeframe scripts. Basically, the alternate timeframes in use should always be higher than the chart timeframe.
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█ NOTES
This indicator is intended to complement and be used with "Lepelle's Key Levels" indicator.
In that indictor settings, I recommend turning off the 5 Daily timeframe moving average levels in that script, if using this one.
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MTF TREND-PANEL-(AS)
0). INTRODUCTION: "MTF TREND-PANEL-(AS)" is a technical tool for traders who often perform multi-timeframe analysis.
This simple tool is meant for traders who wish to monitor and keep track of trend directions simultaneously on various timeframes, ranging from 1MIN to 3MONTHS (or other - 'DIFF')
script enhances decision-making efficiency and provides a clearer picture of market condition by integrating multiple timeframe analysis into a single panel.
1). WARNING!:
-script doesn't make any calculations on its own really but is more of a tool for traders to remember what is happening on other time frames
- use tooltips to navigate settings easier
2). MAIN OPTIONS:
- Keeps track of up to 7 timeframes. (NUMBER of TimeFrames setting, from 1-7)
- Customizable Display: Choose to display nothing, upward/downward arrows, or a range indication for each timeframe.
- timeframe options: '1-MIN','5-MIN','15-MIN','30-MIN','1H','4H','1D','1W','1M','3M','DIFF'
- Color Coding: Define your preferred colors for each timeframe
- set position of the table and size of text (Position/text)
- Personal Touch: Add your own trading maxim or motto for inspiration to show up when SHOW TEXT is turned on
3. )OPTIONS:
-NUMBER of TimeFrames setting: from 1-7 - how many rows to show
-SHOW TABLE: Toggle to display or hide the trend table panel.
-SHOW TEXT: Show or hide your personalized trading maxim.
-SHOW TREND: Enable to display trend direction arrows.
-SHOW_CLRS: Turn on to activate color coding for each timeframe.
-position/text size for table
-settings for each timeframe:color,time,trend
-place to type ur own text
5). How to Use the Script:
-After adding the script to your chart, use the 'NUMBER of TimeFrames' setting to select how many timeframes you want to track (1 to 7).
-Customize the appearance of each timeframe row using the color and arrow options.
-For trend analysis, the script offers arrows to indicate upward, downward, or ranging markets.
-decide what trend dominates particular TF (using other tools - script does not calculate trend on its own )
- mark trends on panel to keep track of all TF
-Enable or disable various features like the table panel, trader maxim, and color coding using the ON/OFF options.
6). just in case:
- ask me anything about the code
-don't be shy to report any bugs or offer improvements of any kind.
- originally created for @ict_whiz and made public at his request
Harmony or Divergence Single CandleThis script is designed for traders who seek to visually identify and analyze patterns of harmony and divergence in the price action of securities directly on their trading charts. The script provides a nuanced approach to understanding market sentiment and potential price movement directions by examining candle sizes and volumes over a specified lookback period.
What the Script Does:
The script overlays indicators on the price chart that highlight periods of harmony and divergence using background colors. These periods are determined based on comparisons between current candle sizes, candle volumes, and their respective simple moving averages (SMAs) over a user-defined lookback period.
Harmony : A state where the candle size and volume are either both above or below their respective averages, indicating a consensus or agreement in market direction.
Divergence : A state where there's a mismatch, such as a larger candle size with lower volume or vice versa, suggesting uncertainty or potential reversal in market trends.
How It Does It:
User Inputs : Traders can customize several parameters, including the lookback period for averages, whether to include wicks in candle size calculations, and preferences for displaying harmony and divergence indicators with specific colors.
Calculations :
- The script calculates the simple moving average (SMA) of volume and candle sizes (with an option to consider the full candle range including wicks or just the body) over the specified lookback period.
- It then compares the current candle's size and volume against these averages to identify states of harmony or divergence.
Visualization :
- Based on the user's input, it colors the background of the chart to reflect identified patterns. Each state (harmony above or below average, divergence with higher volume or larger candle body) can be highlighted with different colors, providing immediate visual cues to the trader.
What Traders Can Do With the Script:
Traders can utilize this script to enhance their technical analysis by:
Identifying Trend Consistency : Harmony indicators can signal strong trends where price action and volume confirm each other, possibly supporting continuation strategies.
Spotting Potential Reversals : Divergence indicators may highlight potential exhaustion points or reversals, especially when price moves significantly without corresponding volume support.
Customizing Analysis : By adjusting the lookback period, candle size consideration (body or including wicks), and visualization options, traders can tailor the analysis to fit their trading style and strategy.
Simple Moving Average CrossoverThis Pine Script is a TradingView script for creating a technical analysis indicator known as a Simple Moving Average Crossover (SMAC). The script visualizes two moving averages on a chart and provides buy and sell signals based on the crossover of these moving averages.
Here's a breakdown of the script:
Input Parameters:
fastLength: The length of the fast/simple moving average.
slowLength: The length of the slow/simple moving average.
Moving Averages Calculation:
fastMA: Calculates the simple moving average with a length of fastLength using the closing prices.
slowMA: Calculates the simple moving average with a length of slowLength using the closing prices.
Plotting:
Plots the fast and slow moving averages on the chart using different colors.
Buy and Sell Signals:
buySignal: Generates a boolean series indicating a buy signal when the fast moving average crosses above the slow moving average.
sellSignal: Generates a boolean series indicating a sell signal when the fast moving average crosses below the slow moving average.
Plotting Signals:
Plots green triangle-up shapes below price bars for buy signals.
Plots red triangle-down shapes above price bars for sell signals.
In summary, this script helps traders visualize potential trend reversals by identifying points where a shorter-term moving average crosses above (buy signal) or below (sell signal) a longer-term moving average. These crossover signals are often used in trend-following strategies to capture potential changes in market direction. Traders can customize the script by adjusting the input parameters to suit their trading preferences.
IU SIP CALCULATORHow This Indicator Script Works:
1. This indicator script calculate the monthly SIP returns of any market over any user defined period.
2. SIP stands for Systematic Investment Plan. It is a way to invest in any asset by regularly investing a fixed amount of money at regular intervals for example Monthly, Weekly, Quarterly etc.
3. This indicator Calculate the following
# Average buy price
# Total quantity hold
# Yearly returns
# Monthly returns
# Total invested amount
# Total profits in amount
# Total portfolio value
# Total returns in per percentage term.
4. This script takes monthly SIP amount, starting month, starting year, ending year, ending month from the user and store the value for calculations.
5. After that it store the open price of every month into an array then it average the array and compare that price with the last month close price.
6. on the bases of this it performs all of the calculations.
7. The script plot every calculation into an table from.
8. It requires monthly chart timeframe for working.
9. The table is editable user can change the color and transparency.
How User Can Benefit From The Script:
1. User can get the past monthly SIP returns of any market he wants to invest this will give him an overview about what to expect from the market.
2. Once user understand the expected returns from the market he can adjust his investment strategy.
3. This help the user to Analyse various stocks and their past performance.
4. User can also short list the best performed stocks.
5. Over all this script will give complete SIP vision of any market.
JS-TechTrading: VWAP Momentum_Pullback StrategyGeneral Description and Unique Features of this Script
Introducing the VWAP Momentum-Pullback Strategy (long-only) that offers several unique features:
1. Our script/strategy utilizes Mark Minervini's Trend-Template as a qualifier for identifying stocks and other financial securities in confirmed uptrends.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available on TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
2. Our strategy is based on the supply/demand balance in the market, making it timeless and effective across all timeframes. Whether you are day trading using 1- or 5-min charts or swing-trading using daily charts, this strategy can be applied and works very well.
3. We have also integrated technical indicators such as the RSI and the MA / VWAP crossover into this strategy to identify low-risk pullback entries in the context of confirmed uptrends. By doing so, the risk profile of this strategy and drawdowns are being reduced to an absolute minimum.
Minervini’s Trend-Template and the ‘Stage-Analysis’ of the Markets
This strategy is a so-called 'long-only' strategy. This means that we only take long positions, short positions are not considered.
The best market environment for such strategies are periods of stable upward trends in the so-called stage 2 - uptrend.
In stable upward trends, we increase our market exposure and risk.
In sideways markets and downward trends or bear markets, we reduce our exposure very quickly or go 100% to cash and wait for the markets to recover and improve. This allows us to avoid major losses and drawdowns.
This simple rule gives us a significant advantage over most undisciplined traders and amateurs!
'The Trend is your Friend'. This is a very old but true quote.
What's behind it???
• 98% of stocks made their biggest gains in a Phase 2 upward trend.
• If a stock is in a stable uptrend, this is evidence that larger institutions are buying the stock sustainably.
• By focusing on stocks that are in a stable uptrend, the chances of profit are significantly increased.
• In a stable uptrend, investors know exactly what to expect from further price developments. This makes it possible to locate low-risk entry points.
The goal is not to buy at the lowest price – the goal is to buy at the right price!
Each stock goes through the same maturity cycle – it starts at stage 1 and ends at stage 4
Stage 1 – Neglect Phase – Consolidation
Stage 2 – Progressive Phase – Accumulation
Stage 3 – Topping Phase – Distribution
Stage 4 – Downtrend – Capitulation
This strategy focuses on identifying stocks in confirmed stage 2 uptrends. This in itself gives us an advantage over long-term investors and less professional traders.
By focusing on stocks in a stage 2 uptrend, we avoid losses in downtrends (stage 4) or less profitable consolidation phases (stages 1 and 3). We are fully invested and put our money to work for us, and we are fully invested when stocks are in their stage 2 uptrends.
But how can we use technical chart analysis to find stocks that are in a stable stage 2 uptrend?
Mark Minervini has developed the so-called 'trend template' for this purpose. This is an essential part of our JS-TechTrading pullback strategy. For our watchlists, only those individual values that meet the tough requirements of Minervini's trend template are eligible.
The Trend Template
• 200d MA increasing over a period of at least 1 month, better 4-5 months or longer
• 150d MA above 200d MA
• 50d MA above 150d MA and 200d MA
• Course above 50d MA, 150d MA and 200d MA
• Ideally, the 50d MA is increasing over at least 1 month
• Price at least 25% above the 52w low
• Price within 25% of 52w high
• High relative strength according to IBD.
NOTE: In this basic version of the script, the Trend-Template has to be used as a separate indicator on TradingView (Public Trend-Template indicators are available in TradingView – community scripts). It is recommended to only execute buy signals in case the stock or financial security is in a stage 2 uptrend, which means that the criteria of the trend-template are fulfilled.
This strategy can be applied to all timeframes from 5 min to daily.
The VWAP Momentum-Pullback Strateg y
For the JS-TechTrading VWAP Momentum-Pullback Strategy, only stocks and other financial instruments that meet the selected criteria of Mark Minervini's trend template are recommended for algorithmic trading with this startegy.
A further prerequisite for generating a buy signals is that the individual value is in a short-term oversold state (RSI).
When the selling pressure is over and the continuation of the uptrend can be confirmed by the MA / VWAP crossover after reaching a price low, a buy signal is issued by this strategy.
Stop-loss limits and profit targets can be set variably.
Relative Strength Index (RSI)
The Relative Strength Index (RSI) is a technical indicator developed by Welles Wilder in 1978. The RSI is used to perform a market value analysis and identify the strength of a trend as well as overbought and oversold conditions. The indicator is calculated on a scale from 0 to 100 and shows how much an asset has risen or fallen relative to its own price in recent periods.
The RSI is calculated as the ratio of average profits to average losses over a certain period of time. A high value of the RSI indicates an overbought situation, while a low value indicates an oversold situation. Typically, a value > 70 is considered an overbought threshold and a value < 30 is considered an oversold threshold. A value above 70 signals that a single value may be overvalued and a decrease in price is likely , while a value below 30 signals that a single value may be undervalued and an increase in price is likely.
For example, let's say you're watching a stock XYZ. After a prolonged falling movement, the RSI value of this stock has fallen to 26. This means that the stock is oversold and that it is time for a potential recovery. Therefore, a trader might decide to buy this stock in the hope that it will rise again soon.
The MA / VWAP Crossover Trading Strategy
This strategy combines two popular technical indicators: the Moving Average (MA) and the Volume Weighted Average Price (VWAP). The MA VWAP crossover strategy is used to identify potential trend reversals and entry/exit points in the market.
The VWAP is calculated by taking the average price of an asset for a given period, weighted by the volume traded at each price level. The MA, on the other hand, is calculated by taking the average price of an asset over a specified number of periods. When the MA crosses above the VWAP, it suggests that buying pressure is increasing, and it may be a good time to enter a long position. When the MA crosses below the VWAP, it suggests that selling pressure is increasing, and it may be a good time to exit a long position or enter a short position.
Traders typically use the MA VWAP crossover strategy in conjunction with other technical indicators and fundamental analysis to make more informed trading decisions. As with any trading strategy, it is important to carefully consider the risks and potential rewards before making any trades.
This strategy is applicable to all timeframes and the relevant parameters for the underlying indicators (RSI and MA/VWAP) can be adjusted and optimized as needed.
Backtesting
Backtesting gives outstanding results on all timeframes and drawdowns can be reduced to a minimum level. In this example, the hourly chart for MCFT has been used.
Settings for backtesting are:
- Period from April 2020 until April 2021 (1 yr)
- Starting capital 100k USD
- Position size = 25% of equity
- 0.01% commission = USD 2.50.- per Trade
- Slippage = 2 ticks
Other comments
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The RSI qualifier is highly selective and filters out the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• As a result, traders need to apply this strategy for a full watchlist rather than just one financial security.
TechnicalRating█ OVERVIEW
This library is a Pine Script™ programmer’s tool for incorporating TradingView's well-known technical ratings within their scripts. The ratings produced by this library are the same as those from the speedometers in the technical analysis summary and the "Rating" indicator in the Screener , which use the aggregate biases of 26 technical indicators to calculate their results.
█ CONCEPTS
Ensemble analysis
Ensemble analysis uses multiple weaker models to produce a potentially stronger one. A common form of ensemble analysis in technical analysis is the usage of aggregate indicators together in hopes of gaining further market insight and reinforcing trading decisions.
Technical ratings
Technical ratings provide a simplified way to analyze financial markets by combining signals from an ensemble of indicators into a singular value, allowing traders to assess market sentiment more quickly and conveniently than analyzing each constituent separately. By consolidating the signals from multiple indicators into a single rating, traders can more intuitively and easily interpret the "technical health" of the market.
Calculating the rating value
Using a variety of built-in TA functions and functions from our ta library, this script calculates technical ratings for moving averages, oscillators, and their overall result within the `calcRatingAll()` function.
The function uses the script's `calcRatingMA()` function to calculate the moving average technical rating from an ensemble of 15 moving averages and filters:
• Six Simple Moving Averages and six Exponential Moving Averages with periods of 10, 20, 30, 50, 100, and 200
• A Hull Moving Average with a period of 9
• A Volume-Weighted Moving Average with a period of 20
• An Ichimoku Cloud with a conversion line length of 9, base length of 26, and leading span B length of 52
The function uses the script's `calcRating()` function to calculate the oscillator technical rating from an ensemble of 11 oscillators:
• RSI with a period of 14
• Stochastic with a %K period of 14, a smoothing period of 3, and a %D period of 3
• CCI with a period of 20
• ADX with a DI length of 14 and an ADX smoothing period of 14
• Awesome Oscillator
• Momentum with a period of 10
• MACD with fast, slow, and signal periods of 12, 26, and 9
• Stochastic RSI with an RSI period of 14, a %K period of 14, a smoothing period of 3, and a %D period of 3
• Williams %R with a period of 14
• Bull Bear Power with a period of 50
• Ultimate Oscillator with fast, middle, and slow lengths of 7, 14, and 28
Each indicator is assigned a value of +1, 0, or -1, representing a bullish, neutral, or bearish rating. The moving average rating is the mean of all ratings that use the `calcRatingMA()` function, and the oscillator rating is the mean of all ratings that use the `calcRating()` function. The overall rating is the mean of the moving average and oscillator ratings, which ranges between +1 and -1. This overall rating, along with the separate MA and oscillator ratings, can be used to gain insight into the technical strength of the market. For a more detailed breakdown of the signals and conditions used to calculate the indicators' ratings, consult our Help Center explanation.
Determining rating status
The `ratingStatus()` function produces a string representing the status of a series of ratings. The `strongBound` and `weakBound` parameters, with respective default values of 0.5 and 0.1, define the bounds for "strong" and "weak" ratings.
The rating status is determined as follows:
Rating Value Rating Status
< -strongBound Strong Sell
< -weakBound Sell
-weakBound to weakBound Neutral
> weakBound Buy
> strongBound Strong Buy
By customizing the `strongBound` and `weakBound` values, traders can tailor the `ratingStatus()` function to fit their trading style or strategy, leading to a more personalized approach to evaluating ratings.
Look first. Then leap.
█ FUNCTIONS
This library contains the following functions:
calcRatingAll()
Calculates 3 ratings (ratings total, MA ratings, indicator ratings) using the aggregate biases of 26 different technical indicators.
Returns: A 3-element tuple: ( [(float) ratingTotal, (float) ratingOther, (float) ratingMA ].
countRising(plot)
Calculates the number of times the values in the given series increase in value up to a maximum count of 5.
Parameters:
plot : (series float) The series of values to check for rising values.
Returns: (int) The number of times the values in the series increased in value.
ratingStatus(ratingValue, strongBound, weakBound)
Determines the rating status of a given series based on its values and defined bounds.
Parameters:
ratingValue : (series float) The series of values to determine the rating status for.
strongBound : (series float) The upper bound for a "strong" rating.
weakBound : (series float) The upper bound for a "weak" rating.
Returns: (string) The rating status of the given series ("Strong Buy", "Buy", "Neutral", "Sell", or "Strong Sell").
Oscillator Workbench — Chart [LucF]█ OVERVIEW
This indicator uses an on-chart visual framework to help traders with the interpretation of any oscillator's behavior. The advantage of using this tool is that you do not need to know all the ins and outs of a particular oscillator such as RSI, CCI, Stochastic, etc. Your choice of oscillator and settings in this indicator will change its visuals, which allows you to evaluate different configurations in the context of how the workbench models oscillator behavior. My hope is that by using the workbench, you may come up with an oscillator selection and settings that produce visual cues you find useful in your trading.
The workbench works on any symbol and timeframe. It uses the same presentation engine as my Delta Volume Channels indicator; those already familiar with it will feel right at home here.
█ CONCEPTS
Oscillators
An oscillator is any signal that moves up and down a centerline. The centerline value is often zero or 50. Because the range of oscillator values is different than that of the symbol prices we look at on our charts, it is usually impossible to display an oscillator on the chart, so we typically put oscillators in a separate pane where they live in their own space. Each oscillator has its own profile and properties that dictate its behavior and interpretation. Oscillators can be bounded , meaning their values oscillate between fixed values such as 0 to 100 or +1 to -1, or unbounded when their maximum and minimum values are undefined.
Oscillator weight
How do you display an oscillator's value on a chart showing prices when both values are not on the same scale? The method I use here converts the oscillator's value into a percentage that is used to weigh a reference line. The weight of the oscillator is calculated by maintaining its highest and lowest value above and below its centerline since the beginning of the chart's history. The oscillator's relative position in either of those spaces is then converted to a percentage, yielding a positive or negative value depending on whether the oscillator is above or below its centerline. This method works equally well with bounded and unbounded oscillators.
Oscillator Channel
The oscillator channel is the space between two moving averages: the reference line and a weighted version of that line. The reference line is a moving average of a type, source and length which you select. The weighted line uses the same settings, but it averages the oscillator-weighted price source.
The weight applied to the source of the reference line can also include the relative size of the bar's volume in relation to previous bars. The effect of this is that the oscillator's weight on bars with higher total volume will carry greater weight than those with lesser volume.
The oscillator channel can be in one of four states, each having its corresponding color:
• Bull (teal): The weighted line is above the reference line.
• Strong bull (lime): The bull condition is fulfilled and the bar's close is above the reference line and both the reference and the weighted lines are rising.
• Bear (maroon): The weighted line is below the reference line.
• Strong bear (pink): The bear condition is fulfilled and the bar's close is below the reference line and both the reference and the weighted lines are falling.
Divergences
In the context of this indicator, a divergence is any bar where the slope of the reference line does not match that of the weighted line. No directional bias is assigned to divergences when they occur. You can also choose to define divergences as differences in polarity between the oscillator's slope and the polarity of close-to-close values. This indicator's divergences are designed to identify transition levels. They have no polarity; their bullish/bearish bias is determined by the behavior of price relative to the divergence channel after the divergence channel is built.
Divergence Channel
The divergence channel is the space between two levels (by default, the bar's low and high ) saved when divergences occur. When price has breached a channel and a new divergence occurs, a new channel is created. Until that new channel is breached, bars where additional divergences occur will expand the channel's levels if the bar's price points are outside the channel.
Price breaches of the divergence channel will change its state. Divergence channels can be in one of five different states:
• Bull (teal): Price has breached the channel to the upside.
• Strong bull (lime): The bull condition is fulfilled and the oscillator channel is in the strong bull state.
• Bear (maroon): Price has breached the channel to the downside.
• Strong bear (pink): The bear condition is fulfilled and the oscillator channel is in the strong bear state.
• Neutral (gray): The channel has not been breached.
█ HOW TO USE THE INDICATOR
Load the indicator on an active chart (see here if you don't know how).
The default configuration displays:
• The Divergence channel's levels.
• Bar colors using the state of the oscillator channel.
The default settings use:
• RSI as the oscillator, using the close source and a length of 20 bars.
• An Arnaud-Legoux moving average on the close and a length of 20 bars as the reference line.
• The weighted version of the reference line uses only the oscillator's weight, i.e., without the relative volume's weight.
The weighted line is capped to three standard deviations of the reference.
• The divergence channel's levels are determined using the high and low of the bars where divergences occur.
Breaches of the channel require a bar's low to move above the top of the channel, and the bar's high to move below the channel's bottom.
No markers appear on the chart; if you want to create alerts from this script, you will need first to define the conditions that will trigger the markers, then create the alert, which will trigger on those same conditions.
To learn more about how to use this indicator, you must understand the concepts it uses and the information it displays, which requires reading this description. There are no videos to explain it.
█ FEATURES
The script's inputs are divided in five sections: "Oscillator", "Oscillator channel", "Divergence channel", "Bar Coloring" and "Marker/Alert Conditions".
Oscillator
This is where you configure the oscillator you want to study. Thirty oscillators are available to choose from, but you can also use an oscillator from another indicator that is on your chart, if you want. When you select an external indicator's plot as the oscillator, you must also specify the value of its centerline.
Oscillator Channel
Here, you control the visibility and colors of the reference line, its weighted version, and the oscillator channel between them.
You also specify what type of moving average you want to use as a reference line, its source and its length. This acts as the oscillator channel's baseline. The weighted line is also a moving average of the same type and length as the reference line, except that it will be calculated from the weighted version of the source used in the reference line. By default, the weighted line is capped to three standard deviations of the reference line. You can change that value, and also elect to cap using a multiple of ATR instead. The cap provides a mechanism to control how far the weighted line swings from the reference line. This section is also where you can enable the relative volume component of the weight.
Divergence Channel
This is where you control the appearance of the divergence channel and the key price values used in determining the channel's levels and breaching conditions. These choices have an impact on the behavior of the channel. More generous level prices like the default low and high selection will produce more conservative channels, as will the default choice for breach prices.
In this section, you can also enable a mode where an attempt is made to estimate the channel's bias before price breaches the channel. When it is enabled, successive increases/decreases of the channel's top and bottom levels are counted as new divergences occur. When one count is greater than the other, a bull/bear bias is inferred from it. You can also change the detection mode of divergences, and choose to display a mark above or below bars where divergences occur.
Bar Coloring
You specify here:
• The method used to color chart bars, if you choose to do so.
• If you want to hollow out the bodies of bars where volume has not increased since the last bar.
Marker/Alert Conditions
Here, you specify the conditions that will trigger up or down markers. The trigger conditions can include a combination of state transitions of the oscillator and the divergence channels. The triggering conditions can be filtered using a variety of conditions.
Configuring the marker conditions is necessary before creating an alert from this script, as the alert will use the marker conditions to trigger.
Realtime values will repaint, as is usually the case with oscillators, but markers only appear on bar closes, so they will not repaint. Keep in mind, when looking at markers on historical bars, that they are positioned on the bar when it closes — NOT when it opens.
Raw values
The raw values calculated by this script can be inspected using the Data Window, including the oscillator's value and the weights.
█ INTERPRETATION
Except when mentioned otherwise, this section's charts use the indicator's default settings, with different visual components turned on or off.
The aim of the oscillator channel is to provide a visual representation of an oscillator's general behavior. The simplest characteristic of the channel is its bull/bear state, determined by whether the weighted line is above or below the reference line. One can then distinguish between its bull and strong bull states, as transitions from strong bull to bull states will generally happen when trends are losing steam. While one should not infer a reversal from such transitions, they can be a good place to tighten stops. Only time will tell if a reversal will occur. One or more divergences will often occur before reversals. This shows the oscillator channel, with the reference line and the thicker, weighted line:
The nature of the divergence channel 's design makes it particularly adept at identifying consolidation areas if its settings are kept on the conservative side. The divergence channel will also reveal transition areas. A gray divergence channel should usually be considered a no-trade zone. More adventurous traders can use the oscillator channel to orient their trade entries if they accept the risk of trading in a neutral divergence channel, which by definition will not have been breached by price. This show only the divergence channels:
This chart shows divergence channels and their levels, and colors bars on divergences and on the state of the oscillator channel, which is not visible on the chart:
If your charts are already busy with other stuff you want to hold on to, you could consider using only the chart bar coloring component of this indicator. Here we only color bars using the combined state of the oscillator and divergence channel, and we do not color the bodies of bars where volume has not increased. Note that my chart's settings do not color the candle bodies:
At its simplest, one way to use this indicator would be to look for overlaps of the strong bull/bear colors in both the oscillator channel and a divergence channel, as these identify points where price is breaching the divergence channel when the oscillator's state is consistent with the direction of the breach.
Tip
One way to use the Workbench is to combine it with my Delta Volume Channels indicator. If both indicators use the same MA as a reference line, you can display its delta volume channel instead of the oscillator channel.
This chart shows such a setup. The Workbench displays its divergence levels, the weighted reference line using the default RSI oscillator, and colors bars on divergences. The DV Channels indicator only displays its delta volume channel, which uses the same MA as the workbench for its baseline. This way you can ascertain the volume delta situation in contrast with the visuals of the Workbench:
█ LIMITATIONS
• For some of the oscillators, assumptions are made concerning their different parameters when they are more complex than just a source and length.
See the `oscCalc()` function in this indicator's code for all the details, and ask me in a comment if you can't find the information you need.
• When an oscillator using volume is selected and no volume information is available for the chart's symbol, an error will occur.
• The method I use to convert an oscillator's value into a percentage is fragile in the early history of datasets
because of the nascent expression of the oscillator's range during those early bars.
█ NOTES
Working with this workbench
This indicator is called a workbench for a reason; it is designed for traders interested in exploring its behavior with different oscillators and settings, in the hope they can come up with a setup that suits their trading methodology. I cannot tell you which setup is the best because its setup should be compatible with your trading methodology, which may require faster or slower transitions, thus different configurations of the settings affecting the calculations of the divergence channels.
For Pine Script™ Coders
• This script uses the new overload of the fill() function which now makes it possible to do vertical gradients in Pine. I use it for both channels displayed by this script.
• I use the new arguments for plot() 's `display` parameter to control where the script plots some of its values,
namely those I only want to appear in the script's status line and in the Data Window.
• I used my ta library for some of the oscillator calculations and helper functions.
• I also used TradingView's ta library for other oscillator calculations.
• I wrote my script using the revised recommendations in the Style Guide from the Pine v5 User Manual.
Position Tool█ OVERVIEW
This script is an interactive measurement tool that can be used to evaluate or keep track of trades. Like the long and short position drawing tools, it calculates a risk reward ratio and a risk-adjusted position size from the entry, stop and take profit levels, but it also does much more:
• It can be used to configure long or short trades.
• All monetary values can be expressed in any number of currencies.
• The value of tick/pip movement (which varies with the position's size) is displayed in the currency you have selected.
• The CAGR ( Compound Annual Growth Rate ) for the trade can be displayed.
• It does live tracking of the position.
• You can configure alerts on entries and exits.
█ HOW TO USE IT
Load the indicator on an active chart (see here if you don't know how).
When you first load this script on a chart, you will enter an interactive selection mode where the script asks you to pick three points in price and time on your chart by clicking on the chart. Directions will appear in a blue box at the bottom of the screen with each click of the mouse. The first selection is the entry point for the trade you are considering, which takes into account both the time and level you choose, the next are the take profit and stop levels. Once you have selected all three points, the script will draw trade zones and labels containing the trade metrics. The script determines if the trade is a long or short from the position of the take profit and stop loss levels in relation to the entry price. If the take profit level is above the entry price, the stop must be below and vice versa, otherwise an error occurs.
You can change levels by dragging the handles that appear when you select the indicator, or by entering new values in the script's settings. The only way to re-enter interactive mode is to re-add the indicator to your chart.
Once you place the position tool on a chart, it will appear at the same levels on all symbols you use. If your scale is not set to "Scale price chart only", the position tool's levels will be taken into account when scaling the chart, which can cause the symbol's bars to be compressed. If your scale is set to "Scale price chart only", the position tool will still be there, but it will not impact the scale of the chart's bars, so you won't see it if it sits outside the symbol's price scale.
If you select the position tool on your chart and delete it, this will also delete the indicator from the chart. You will need to re-add it if you want to draw another position tool. You can add multiple instances of the indicator if you need a position tool on more than one of your charts.
█ FEATURES
Display
The position tool displays the following information for entries:
• The entry's price level with an '@' sign before it.
• Open or Closed P&L : For an open trade, the "Open P&L" displays the difference in money value between the entry level and the chart's current price.
For a closed trade, the "Closed P&L" displays the realized P&L on the trade.
• Quantity : The trade size, which takes into account the risk tolerance you set in the script's settings.
• RR : The reward to risk ratio expresses the relationship of the distance between the entry and the take profit level vs the entry and the stop level.
Example: A $100 stop with a $100 target will have a ratio of 1:1, whereas a $200 target with the same stop will have a 2:1 ratio.
• Per tick/pip : Represents the money value of a tick or pip movement.
• CAGR : The Compound Annual Growth Rate will be displayed on the main order label on trades that exceed one day in duration.
This value is calculated the same way as in our CAGR Custom Range indicator.
If the trade duration is less than one day, the metric will not be present in the display.
The stop and take profit levels display:
• Their price level with an '@' sign before it.
• Their distance from the entry in money value, percentage and ticks/pips.
• The projected end money value of the position if the level is reached. These values are calculated based on the trade size and the currency.
Currency adjustments
This indicator modifies the trade label's colors and values based on the final Profit and Loss (P&L), which considers the dynamic exchange rate between base and conversion currencies in its calculations when the conversion currency is a specified value other than the default. Depending on the cross rate between the base and account currencies, this process can yield a negative P&L on an otherwise successful simulated trade.
For instance, if your account is in currency XYZ, you might buy 10 Apple shares at $150 each, with the XYZ to USD exchange rate being 2:1. This purchase would cost you 3000 units of XYZ. Suppose that later on, the shares appreciate to $170 each, and you decide to sell. One might expect this trade to result in profit. However, if the exchange rate has now equalized to 1:1, the return on selling the shares, calculated in XYZ, would only be 1700 units, resulting in a loss of 1300 units XYZ.
The indicator will mark the P&L and the target labels in red in such cases, regardless of whether the market price reached the profit target, as the trade produced a net loss due to reduced funds after currency conversion. Conversely, an otherwise unsuccessful position can result in a net profit in the account currency due to conversion rate fluctuations. The final losses or gains appear in the label metrics, and the corresponding color coding reflects the trade's success or failure.
Settings
The settings in the "Trade sizing" section are used to calculate the position size and the monetary value of trades. Two types of risk can be chosen from the menu; a percentage based risk calculation, or a fixed money value. The risk is used to calculate the quantity of units to purchase to achieve that level of risk exposure. Example: An account size of $1000 and 10% risk will have a projected end amount of $900 if the stop loss is hit. The quantity is a product of this relationship; a projected number of units to allow for the equivalent of $100 of risk exposure over the change in price from the entry to the stop value.
The "Trade levels" allow you to manually set the entry, take profit and stop levels of an existing position tool on your chart.
You can control the appearance of the tool and the values it displays in the settings following these first two sections.
Alerts
Three alerts that will trigger when you configure an alert on this indicator. The first will send an alert when the entry price is breached by price action if that price has not already been breached in the previous price history. This is dependant on the entry location you select when placing the indicator on the chart. The other two alerts will trigger when either the stop loss or the take profit level is breached to signal that a trade exit has occurred.
█ NOTES FOR Pine Script™ CODERS
• Interactive inputs are implemented for input.time() and input.price() . These specialized input functions allow users to interact with a script.
You can create one interactive input for both time and price values by using the same `inline` argument in a pair of input.time() and input.price() function calls.
• We use the `cagr()` function from our ta library.
• The script uses the runtime.error() function to throw an error if the stop and limit prices are not placed on opposing sides of the entry price.
• We use the `currency` parameter in a request.security() call to convert currencies.
Look first. Then leap.
Ichimoku Cloud MasterIchimoku Cloud Master aims to provide the ichimoku trader with easy alert functionality to not miss out on valuable trade setups. The key purpose of this script is to better visualise crucial moments in Ichimoku trading. These alerts should not be used for botting in my opinion as they always need a human to confirm the ichimoku market structure. For example, is the Kijun-Sen flat and too far away from price? A good ichimoku trader will not enter at such a point in time.
Explanation of script:
Chikou(lagging span): pink line, this is price plotted 26 bars ago. People ignore the power of this it is crucial to see how chikou behaves towards past price action as seen in the chart below where we got an entry at red arrow because chikou bounced from past fractal bottom.
Kijun-Sen(base line): Black line or color coded line. This is the equilibrium of last 26 candles. To me this is the most important line in the system as it attracts price.
Kijun = (Highest high of 26 periods + Lowest low of 26 periods) ÷ 2
Tenkan-Sen(conversion line): Blue line. This is the equilibrium of last 9 candles. In a strong uptrend price stays above this line.
Tenkan = (Highest high of 9 periods + Lowest low of 9 periods) ÷ 2
Senkou A (Leading span A)= Pink cloud line, this is the average of the 2 components projected 26 bars in the future.
Senkou A = (Tenkan + Kijun) ÷ 2
Senkou B (Leading span B) = Green cloud line, this is the 52 day equilibrium projected 26 bars in the future.
Senkou B = (Highest high of prior 52 periods + Lowest low of prior 52 periods) ÷ 2
Notice how the distance between Chikou and the cloud is also 52 bars. This is all part of Hosoda's numbers which I am not going to explain here.
Fractals: These are the black triangles you find at key turning point. If you want to know how they work reseach williams fractals. I've used fractals with a period of 9 as it is an ichimoku number. These fractals are useful when working with ichimoku wave theory. Again I will not explain that here but in further education
Fractal Support: Ability to extend lines from the fractals which can be used as an entry/exit mechanism in your trading. For example wait for tenkan to cross kijun and then enter on fractal breakout.
Signals:
Crossing of Chikou (lagging span) with past Kijun-Sen: this will color code the Bars / Kijun-Sen (you can turn this off in options)
The script also has a signal for this, this will be the green and purple diamonds. Where green is bullish and purple is bearish.
wy is this important?
When current price plotted 26 candles back (chikou) crosses over the past equilibrium (kijun-sen) this usualy means price has moved past resistance levels where sellers come in. This indicates a switch in market structure and price is bullish from this point, this is the same in the other direction.
Kumo Twist: when the kumo cloud (future) has a crossover from for example green to red (bull to bear). The script plots these using the colored cross symbols as seen in the picture above. A chikou cross + a Kumo twist at same bar of next to eachother below the cloud can be a great entry sign: this would be an entry after cross in the chart above.
Kijun Bounce: when in an uptrend the price retraces back to Kijun-Sen and starts to go back up. These are marked by the yellow circles as seen in chart below:
low below Kijun-Sen and close above it
Strong Trend: when Tenkan is above Kijun, price above cloud, future cloud green, chikou above close, chikou above Kijun we establish a strong bullish trend. For bearish the exact opposite. The script has a function to send an alert at the start of such trends and to plot them with small colored circles above the bars.
Customisation:
I've added options to disable specific aspects of the indicator for those traders who do not want to use all aspects of the indicator. In the customisation tab I've given each part a clear title so you can use your own colors/shapes.
The perfect entry?
Further info:
Look into my education pane, I will be adding education in the future. The chance of me making a more advanced version of the script including line forecasting etc is rather high so watch out for that.
For those who want to master this system I recommend reading the book:
How to make money with the ichimoku system by Balkrishna M. Sadekar
Or the originals books by Hosoda the inventor of Ichimoku if you can get your hands on them and can read Japanese.
Almost all info about the ichimoku system you find on the internet will lose you money because they reduce the system to simple signals that do not generate money.
I will be providing educational material on tradingview using this indicator.
3rd WaveHello All,
In Elliott Wave Theory, 3rd wave is not the shortest one in the waves 1/3/5 and it's usually longest one. so if we can catch it then we may get good opportunities to trade. This script finds 3rd wave experimentally. it can be also the 3rd waves in the waves 1, 3, 5, A and C. the 3rd wave should have greater volume than other waves, the script can check its volume and compare with the volumes of the waves 1 and 2 optionally.
Pine Team released Pine version 5! This script was developed in v5 and it uses Library feature of Pine v5 for the zigzag functions. This script is also an example for the Pine developers who learn Pine v5 and Libraries.
Options:
Zigzag Period: is the length that is used to calculate highest/lowest and the zigzag waves
Min/Max Retracements: is the retracement rates to check the wave 2 according to wave 1. for example; if min/max values are 0.500-0.618 then wave 2 must be minimum 0.500 of wave 1 and maximum 0.618 of wave 1.
Check Volume Support: is an option to compare the volumes of1. 2. and . waves. if you enable this option then the script checks their volume and 3rd wave volume must be greater then 1 and 2
there are 4 options for the targets. you can enable/disable and change their levels. targets are calculated using length of wave 1.
Options to show breakout zone, zigzag, wave 1 and 2.
and some options for the colors.
The Library that is used in this script:
P.S. This is an experimental work and can be improved. So do not hesitate to drop your comments under the script ;)
Enjoy!
[SCL] Significant Figures Example FunctionThis script consist of a single example function that takes a floating-point number - one that can, but doesn't have to, include a decimal point - and converts it to a floating-point number with only a certain number of significant digits left.
I'm not aware of another script that does this. There might well be a simpler way, in which case please do let me know.
For example, say you want to display a variable from your script to the user and it comes out to something like 45.366666666666666666666667 or whatever. That looks awful when you, for example, print it in a label.
Now, you could round it up to the nearest integer easily using a built-in function, or even to a certain number of decimal places using a reasonably simple custom function.
But that's a bit arbitrary. Suppose you don't know what asset the script will be used on, and so you can't predict what the price is, and what the value will turn out to be.
It could be 0.00045366666666666666666666667 instead. Now if you round it up to 3 decimal places it comes out as 0.000, which is useless.
My function will round that number to 0.0004536 instead, if told to do it to 4 significant digits.
You're free to use this function in your own scripts, including closed-source scripts, without asking permission. Credit to @SimpleCryptoLife would be appreciated.
888 BOT #backtest█ 888 BOT #backtest (open source)
This is an Expert Advisor 'EA' or Automated trading script for ‘longs’ and ‘shorts’, which uses only a Take Profit or, in the worst case, a Stop Loss to close the trade.
It's a much improved version of the previous ‘Repanocha’. It doesn`t use 'Trailing Stop' or 'security()' functions (although using a security function doesn`t mean that the script repaints) and all signals are confirmed, therefore the script doesn`t repaint in alert mode and is accurate in backtest mode.
Apart from the previous indicators, some more and other functions have been added for Stop-Loss, re-entry and leverage.
It uses 8 indicators, (many of you already know what they are, but in case there is someone new), these are the following:
1. Jurik Moving Average
It's a moving average created by Mark Jurik for professionals which eliminates the 'lag' or delay of the signal. It's better than other moving averages like EMA , DEMA , AMA or T3.
There are two ways to decrease noise using JMA . Increasing the 'LENGTH' parameter will cause JMA to move more slowly and therefore reduce noise at the expense of adding 'lag'
The 'JMA LENGTH', 'PHASE' and 'POWER' parameters offer a way to select the optimal balance between 'lag' and over boost.
Green: Bullish , Red: Bearish .
2. Range filter
Created by Donovan Wall, its function is to filter or eliminate noise and to better determine the price trend in the short term.
First, a uniform average price range 'SAMPLING PERIOD' is calculated for the filter base and multiplied by a specific quantity 'RANGE MULTIPLIER'.
The filter is then calculated by adjusting price movements that do not exceed the specified range.
Finally, the target ranges are plotted to show the prices that will trigger the filter movement.
Green: Bullish , Red: Bearish .
3. Average Directional Index ( ADX Classic) and ( ADX Masanakamura)
It's an indicator designed by Welles Wilder to measure the strength and direction of the market trend. The price movement is strong when the ADX has a positive slope and is above a certain minimum level 'ADX THRESHOLD' and for a given period 'ADX LENGTH'.
The green color of the bars indicates that the trend is bullish and that the ADX is above the level established by the threshold.
The red color of the bars indicates that the trend is down and that the ADX is above the threshold level.
The orange color of the bars indicates that the price is not strong and will surely lateralize.
You can choose between the classic option and the one created by a certain 'Masanakamura'. The main difference between the two is that in the first it uses RMA () and in the second SMA () in its calculation.
4. Parabolic SAR
This indicator, also created by Welles Wilder, places points that help define a trend. The Parabolic SAR can follow the price above or below, the peculiarity that it offers is that when the price touches the indicator, it jumps to the other side of the price (if the Parabolic SAR was below the price it jumps up and vice versa) to a distance predetermined by the indicator. At this time the indicator continues to follow the price, reducing the distance with each candle until it is finally touched again by the price and the process starts again. This procedure explains the name of the indicator: the Parabolic SAR follows the price generating a characteristic parabolic shape, when the price touches it, stops and turns ( SAR is the acronym for 'stop and reverse'), giving rise to a new cycle. When the points are below the price, the trend is up, while the points above the price indicate a downward trend.
5. RSI with Volume
This indicator was created by LazyBear from the popular RSI .
The RSI is an oscillator-type indicator used in technical analysis and also created by Welles Wilder that shows the strength of the price by comparing individual movements up or down in successive closing prices.
LazyBear added a volume parameter that makes it more accurate to the market movement.
A good way to use RSI is by considering the 50 'RSI CENTER LINE' centerline. When the oscillator is above, the trend is bullish and when it is below, the trend is bearish .
6. Moving Average Convergence Divergence ( MACD ) and ( MAC-Z )
It was created by Gerald Appel. Subsequently, the histogram was added to anticipate the crossing of MA. Broadly speaking, we can say that the MACD is an oscillator consisting of two moving averages that rotate around the zero line. The MACD line is the difference between a short moving average 'MACD FAST MA LENGTH' and a long moving average 'MACD SLOW MA LENGTH'. It's an indicator that allows us to have a reference on the trend of the asset on which it is operating, thus generating market entry and exit signals.
We can talk about a bull market when the MACD histogram is above the zero line, along with the signal line, while we are talking about a bear market when the MACD histogram is below the zero line.
There is the option of using the MAC-Z indicator created by LazyBear, which according to its author is more effective, by using the parameter VWAP ( volume weighted average price ) 'Z-VWAP LENGTH' together with a standard deviation 'STDEV LENGTH' in its calculation.
7. Volume Condition
Volume indicates the number of participants in this war between bulls and bears, the more volume the more likely the price will move in favor of the trend. A low trading volume indicates a lower number of participants and interest in the instrument in question. Low volumes may reveal weakness behind a price movement.
With this condition, those signals whose volume is less than the volume SMA for a period 'SMA VOLUME LENGTH' multiplied by a factor 'VOLUME FACTOR' are filtered. In addition, it determines the leverage used, the more volume , the more participants, the more probability that the price will move in our favor, that is, we can use more leverage. The leverage in this script is determined by how many times the volume is above the SMA line.
The maximum leverage is 8.
8. Bollinger Bands
This indicator was created by John Bollinger and consists of three bands that are drawn superimposed on the price evolution graph.
The central band is a moving average, normally a simple moving average calculated with 20 periods is used. ('BB LENGTH' Number of periods of the moving average)
The upper band is calculated by adding the value of the simple moving average X times the standard deviation of the moving average. ('BB MULTIPLIER' Number of times the standard deviation of the moving average)
The lower band is calculated by subtracting the simple moving average X times the standard deviation of the moving average.
the band between the upper and lower bands contains, statistically, almost 90% of the possible price variations, which means that any movement of the price outside the bands has special relevance.
In practical terms, Bollinger bands behave as if they were an elastic band so that, if the price touches them, it has a high probability of bouncing.
Sometimes, after the entry order is filled, the price is returned to the opposite side. If price touch the Bollinger band in the same previous conditions, another order is filled in the same direction of the position to improve the average entry price, (% MINIMUM BETTER PRICE ': Minimum price for the re-entry to be executed and that is better than the price of the previous position in a given %) in this way we give the trade a chance that the Take Profit is executed before. The downside is that the position is doubled in size. 'ACTIVATE DIVIDE TP': Divide the size of the TP in half. More probability of the trade closing but less profit.
█ STOP LOSS and RISK MANAGEMENT.
A good risk management is what can make your equity go up or be liquidated.
The % risk is the percentage of our capital that we are willing to lose by operation. This is recommended to be between 1-5%.
% Risk: (% Stop Loss x % Equity per trade x Leverage) / 100
First the strategy is calculated with Stop Loss, then the risk per operation is determined and from there, the amount per operation is calculated and not vice versa.
In this script you can use a normal Stop Loss or one according to the ATR. Also activate the option to trigger it earlier if the risk percentage is reached. '% RISK ALLOWED'
'STOP LOSS CONFIRMED': The Stop Loss is only activated if the closing of the previous bar is in the loss limit condition. It's useful to prevent the SL from triggering when they do a ‘pump’ to sweep Stops and then return the price to the previous state.
█ BACKTEST
The objective of the Backtest is to evaluate the effectiveness of our strategy. A good Backtest is determined by some parameters such as:
- RECOVERY FACTOR: It consists of dividing the 'net profit' by the 'drawdown’. An excellent trading system has a recovery factor of 10 or more; that is, it generates 10 times more net profit than drawdown.
- PROFIT FACTOR: The ‘Profit Factor’ is another popular measure of system performance. It's as simple as dividing what win trades earn by what loser trades lose. If the strategy is profitable then by definition the 'Profit Factor' is going to be greater than 1. Strategies that are not profitable produce profit factors less than one. A good system has a profit factor of 2 or more. The good thing about the ‘Profit Factor’ is that it tells us what we are going to earn for each dollar we lose. A profit factor of 2.5 tells us that for every dollar we lose operating we will earn 2.5.
- SHARPE: (Return system - Return without risk) / Deviation of returns.
When the variations of gains and losses are very high, the deviation is very high and that leads to a very poor ‘Sharpe’ ratio. If the operations are very close to the average (little deviation) the result is a fairly high 'Sharpe' ratio. If a strategy has a 'Sharpe' ratio greater than 1 it is a good strategy. If it has a 'Sharpe' ratio greater than 2, it is excellent. If it has a ‘Sharpe’ ratio less than 1 then we don't know if it is good or bad, we have to look at other parameters.
- MATHEMATICAL EXPECTATION: (% winning trades X average profit) + (% losing trades X average loss).
To earn money with a Trading system, it is not necessary to win all the operations, what is really important is the final result of the operation. A Trading system has to have positive mathematical expectation as is the case with this script: ME = (0.87 x 30.74$) - (0.13 x 56.16$) = (26.74 - 7.30) = 19.44$ > 0
The game of roulette, for example, has negative mathematical expectation for the player, it can have positive winning streaks, but in the long term, if you continue playing you will end up losing, and casinos know this very well.
PARAMETERS
'BACKTEST DAYS': Number of days back of historical data for the calculation of the Backtest.
'ENTRY TYPE': For '% EQUITY' if you have $ 10,000 of capital and select 7.5%, for example, your entry would be $ 750 without leverage. If you select CONTRACTS for the 'BTCUSDT' pair, for example, it would be the amount in 'Bitcoins' and if you select 'CASH' it would be the amount in $ dollars.
'QUANTITY (LEVERAGE 1X)': The amount for an entry with X1 leverage according to the previous section.
'MAXIMUM LEVERAGE': It's the maximum allowed multiplier of the quantity entered in the previous section according to the volume condition.
The settings are for Bitcoin at Binance Futures (BTC: USDTPERP) in 15 minutes.
For other pairs and other timeframes, the settings have to be adjusted again. And within a month, the settings will be different because we all know the market and the trend are changing.
Ruckard TradingLatinoThis strategy tries to mimic TradingLatino strategy.
The current implementation is beta.
Si hablas castellano o espanyol por favor consulta MENSAJE EN CASTELLANO más abajo.
It's aimed at BTCUSDT pair and 4h timeframe.
STRATEGY DEFAULT SETTINGS EXPLANATION
max_bars_back=5000 : This is a random number of bars so that the strategy test lasts for one or two years
calc_on_order_fills=false : To wait for the 4h closing is too much. Try to check if it's worth entering a position after closing one. I finally decided not to recheck if it's worth entering after an order is closed. So it is false.
calc_on_every_tick=false
pyramiding=0 : We only want one entry allowed in the same direction. And we don't want the order to scale by error.
initial_capital=1000 : These are 1000 USDT. By using 1% maximum loss per trade and 7% as a default stop loss by using 1000 USDT at 12000 USDT per BTC price you would entry with around 142 USDT which are converted into: 0.010 BTC . The maximum number of decimal for contracts on this BTCUSDT market is 3 decimals. E.g. the minimum might be: 0.001 BTC . So, this minimal 1000 amount ensures us not to entry with less than 0.001 entries which might have happened when using 100 USDT as an initial capital.
slippage=1 : Binance BTCUSDT mintick is: 0.01. Binance slippage: 0.1 % (Let's assume). TV has an integer slippage. It does not have a percentage based slippage. If we assume a 1000 initial capital, the recommended equity is 142 which at 11996 USDT per BTC price means: 0.011 BTC. The 0.1% slippage of: 0.011 BTC would be: 0.000011 . This is way smaller than the mintick. So our slippage is going to be 1. E.g. 1 (slippage) * 0.01 (mintick)
commission_type=strategy.commission.percent and commission_value=0.1 : According to: binance . com / en / fee / schedule in VIP 0 level both maker and taker fees are: 0.1 %.
BACKGROUND
Jaime Merino is a well known Youtuber focused on crypto trading
His channel TradingLatino
features monday to friday videos where he explains his strategy.
JAIME MERINO STANCE ON BOTS
Jaime Merino stance on bots (taken from memory out of a 2020 June video from him):
'~
You know. They can program you a bot and it might work.
But, there are some special situations that the bot would not be able to handle.
And, I, as a human, I would handle it. And the bot wouldn't do it.
~'
My long term target with this strategy script is add as many
special situations as I can to the script
so that it can match Jaime Merino behaviour even in non normal circumstances.
My alternate target is learn Pine script
and enjoy programming with it.
WARNING
This script might be bigger than other TradingView scripts.
However, please, do not be confused because the current status is beta.
This script has not been tested with real money.
This is NOT an official strategy from Jaime Merino.
This is NOT an official strategy from TradingLatino . net .
HOW IT WORKS
It basically uses ADX slope and LazyBear's Squeeze Momentum Indicator
to make its buy and sell decisions.
Fast paced EMA being bigger than slow paced EMA
(on higher timeframe) advices going long.
Fast paced EMA being smaller than slow paced EMA
(on higher timeframe) advices going short.
It finally add many substrats that TradingLatino uses.
SETTINGS
__ SETTINGS - Basics
____ SETTINGS - Basics - ADX
(ADX) Smoothing {14}
(ADX) DI Length {14}
(ADX) key level {23}
____ SETTINGS - Basics - LazyBear Squeeze Momentum
(SQZMOM) BB Length {20}
(SQZMOM) BB MultFactor {2.0}
(SQZMOM) KC Length {20}
(SQZMOM) KC MultFactor {1.5}
(SQZMOM) Use TrueRange (KC) {True}
____ SETTINGS - Basics - EMAs
(EMAS) EMA10 - Length {10}
(EMAS) EMA10 - Source {close}
(EMAS) EMA55 - Length {55}
(EMAS) EMA55 - Source {close}
____ SETTINGS - Volume Profile
Lowest and highest VPoC from last three days
is used to know if an entry has a support
VPVR of last 100 4h bars
is also taken into account
(VP) Use number of bars (not VP timeframe): Uses 'Number of bars {100}' setting instead of 'Volume Profile timeframe' setting for calculating session VPoC
(VP) Show tick difference from current price {False}: BETA . Might be useful for actions some day.
(VP) Number of bars {100}: If 'Use number of bars (not VP timeframe)' is turned on this setting is used to calculate session VPoC.
(VP) Volume Profile timeframe {1 day}: If 'Use number of bars (not VP timeframe)' is turned off this setting is used to calculate session VPoC.
(VP) Row width multiplier {0.6}: Adjust how the extra Volume Profile bars are shown in the chart.
(VP) Resistances prices number of decimal digits : Round Volume Profile bars label numbers so that they don't have so many decimals.
(VP) Number of bars for bottom VPOC {18}: 18 bars equals 3 days in suggested timeframe of 4 hours. It's used to calculate lowest session VPoC from previous three days. It's also used as a top VPOC for sells.
(VP) Ignore VPOC bottom advice on long {False}: If turned on it ignores bottom VPOC (or top VPOC on sells) when evaluating if a buy entry is worth it.
(VP) Number of bars for VPVR VPOC {100}: Number of bars to calculate the VPVR VPoC. We use 100 as Jaime once used. When the price bounces back to the EMA55 it might just bounce to this VPVR VPoC if its price it's lower than the EMA55 (Sells have inverse algorithm).
____ SETTINGS - ADX Slope
ADX Slope
help us to understand if ADX
has a positive slope, negative slope
or it is rather still.
(ADXSLOPE) ADX cut {23}: If ADX value is greater than this cut (23) then ADX has strength
(ADXSLOPE) ADX minimum steepness entry {45}: ADX slope needs to be 45 degrees to be considered as a positive one.
(ADXSLOPE) ADX minimum steepness exit {45}: ADX slope needs to be -45 degrees to be considered as a negative one.
(ADXSLOPE) ADX steepness periods {3}: In order to avoid false detection the slope is calculated along 3 periods.
____ SETTINGS - Next to EMA55
(NEXTEMA55) EMA10 to EMA55 bounce back percentage {80}: EMA10 might bounce back to EMA55 or maybe to 80% of its complete way to EMA55
(NEXTEMA55) Next to EMA55 percentage {15}: How much next to the EMA55 you need to be to consider it's going to bounce back upwards again.
____ SETTINGS - Stop Loss and Take Profit
You can set a default stop loss or a default take profit.
(STOPTAKE) Stop Loss % {7.0}
(STOPTAKE) Take Profit % {2.0}
____ SETTINGS - Trailing Take Profit
You can customize the default trailing take profit values
(TRAILING) Trailing Take Profit (%) {1.0}: Trailing take profit offset in percentage
(TRAILING) Trailing Take Profit Trigger (%) {2.0}: When 2.0% of benefit is reached then activate the trailing take profit.
____ SETTINGS - MAIN TURN ON/OFF OPTIONS
(EMAS) Ignore advice based on emas {false}.
(EMAS) Ignore advice based on emas (On closing long signal) {False}: Ignore advice based on emas but only when deciding to close a buy entry.
(SQZMOM) Ignore advice based on SQZMOM {false}: Ignores advice based on SQZMOM indicator.
(ADXSLOPE) Ignore advice based on ADX positive slope {false}
(ADXSLOPE) Ignore advice based on ADX cut (23) {true}
(STOPTAKE) Take Profit? {false}: Enables simple Take Profit.
(STOPTAKE) Stop Loss? {True}: Enables simple Stop Loss.
(TRAILING) Enable Trailing Take Profit (%) {True}: Enables Trailing Take Profit.
____ SETTINGS - Strategy mode
(STRAT) Type Strategy: 'Long and Short', 'Long Only' or 'Short Only'. Default: 'Long and Short'.
____ SETTINGS - Risk Management
(RISKM) Risk Management Type: 'Safe', 'Somewhat safe compound' or 'Unsafe compound'. ' Safe ': Calculations are always done with the initial capital (1000) in mind. The maximum losses per trade/day/week/month are taken into account. ' Somewhat safe compound ': Calculations are done with initial capital (1000) or a higher capital if it increases. The maximum losses per trade/day/week/month are taken into account. ' Unsafe compound ': In each order all the current capital is gambled and only the default stop loss per order is taken into account. That means that the maximum losses per trade/day/week/month are not taken into account. Default : 'Somewhat safe compound'.
(RISKM) Maximum loss per trade % {1.0}.
(RISKM) Maximum loss per day % {6.0}.
(RISKM) Maximum loss per week % {8.0}.
(RISKM) Maximum loss per month % {10.0}.
____ SETTINGS - Decimals
(DECIMAL) Maximum number of decimal for contracts {3}: How small (3 decimals means 0.001) an entry position might be in your exchange.
EXTRA 1 - PRICE IS IN RANGE indicator
(PRANGE) Print price is in range {False}: Enable a bottom label that indicates if the price is in range or not.
(PRANGE) Price range periods {5}: How many previous periods are used to calculate the medians
(PRANGE) Price range maximum desviation (%) {0.6} ( > 0 ): Maximum positive desviation for range detection
(PRANGE) Price range minimum desviation (%) {0.6} ( > 0 ): Mininum negative desviation for range detection
EXTRA 2 - SQUEEZE MOMENTUM Desviation indicator
(SQZDIVER) Show degrees {False}: Show degrees of each Squeeze Momentum Divergence lines to the x-axis.
(SQZDIVER) Show desviation labels {False}: Whether to show or not desviation labels for the Squeeze Momentum Divergences.
(SQZDIVER) Show desviation lines {False}: Whether to show or not desviation lines for the Squeeze Momentum Divergences.
EXTRA 3 - VOLUME PROFILE indicator
WARNING: This indicator works not on current bar but on previous bar. So in the worst case it might be VP from 4 hours ago. Don't worry, inside the strategy calculus the correct values are used. It's just that I cannot show the most recent one in the chart.
(VP) Print recent profile {False}: Show Volume Profile indicator
(VP) Avoid label price overlaps {False}: Avoid label prices to overlap on the chart.
EXTRA 4 - ZIGNALY SUPPORT
(ZIG) Zignaly Alert Type {Email}: 'Email', 'Webhook'. ' Email ': Prepare alert_message variable content to be compatible with zignaly expected email content format. ' Webhook ': Prepare alert_message variable content to be compatible with zignaly expected json content format.
EXTRA 5 - DEBUG
(DEBUG) Enable debug on order comments {False}: If set to true it prepares the order message to match the alert_message variable. It makes easier to debug what would have been sent by email or webhook on each of the times an order is triggered.
HOW TO USE THIS STRATEGY
BOT MODE: This is the default setting.
PROPER VOLUME PROFILE VIEWING: Click on this strategy settings. Properties tab. Make sure Recalculate 'each time the order was run' is turned off.
NEWBIE USER: (Check PROPER VOLUME PROFILE VIEWING above!) You might want to turn on the 'Print recent profile {False}' setting. Alternatively you can use my alternate realtime study: 'Resistances and supports based on simplified Volume Profile' but, be aware, it might consume one indicator.
ADVANCED USER 1: Turn on the 'Print price is in range {False}' setting and help us to debug this subindicator. Also help us to figure out how to include this value in the strategy.
ADVANCED USER 2: Turn on the all the (SQZDIVER) settings and help us to figure out how to include this value in the strategy.
ADVANCED USER 3: (Check PROPER VOLUME PROFILE VIEWING above!) Turn on the 'Print recent profile {False}' setting and report any problem with it.
JAIME MERINO: Just use the indicator as it comes by default. It should only show BUY signals, SELL signals and their associated closing signals. From time to time you might want to check 'ADVANCED USER 2' instructions to check that there's actually a divergence. Check also 'ADVANCED USER 1' instructions for your amusement.
EXTRA ADVICE
It's advised that you use this strategy in addition to these two other indicators:
* Squeeze Momentum Indicator
* ADX
so that your chart matches as close as possible to TradingLatino chart.
ZIGNALY INTEGRATION
This strategy supports Zignaly email integration by default. It also supports Zignaly Webhook integration.
ZIGNALY INTEGRATION - Email integration example
What you would write in your alert message:
||{{strategy.order.alert_message}}||key=MYSECRETKEY||
ZIGNALY INTEGRATION - Webhook integration example
What you would write in your alert message:
{ {{strategy.order.alert_message}} , "key" : "MYSECRETKEY" }
CREDITS
I have reused and adapted some code from
'Directional Movement Index + ADX & Keylevel Support' study
which it's from TradingView console user.
I have reused and adapted some code from
'3ema' study
which it's from TradingView hunganhnguyen1193 user.
I have reused and adapted some code from
'Squeeze Momentum Indicator ' study
which it's from TradingView LazyBear user.
I have reused and adapted some code from
'Strategy Tester EMA-SMA-RSI-MACD' study
which it's from TradingView fikira user.
I have reused and adapted some code from
'Support Resistance MTF' study
which it's from TradingView LonesomeTheBlue user.
I have reused and adapted some code from
'TF Segmented Linear Regression' study
which it's from TradingView alexgrover user.
I have reused and adapted some code from
"Poor man's volume profile" study
which it's from TradingView IldarAkhmetgaleev user.
FEEDBACK
Please check the strategy source code for more detailed information
where, among others, I explain all of the substrats
and if they are implemented or not.
Q1. Did I understand wrong any of the Jaime substrats (which I have implemented)?
Q2. The strategy yields quite profit when we should long (EMA10 from 1d timeframe is higher than EMA55 from 1d timeframe.
Why the strategy yields much less profit when we should short (EMA10 from 1d timeframe is lower than EMA55 from 1d timeframe)?
Any idea if you need to do something else rather than just reverse what Jaime does when longing?
FREQUENTLY ASKED QUESTIONS
FAQ1. Why are you giving this strategy for free?
TradingLatino and his fellow enthusiasts taught me this strategy. Now I'm giving back to them.
FAQ2. Seriously! Why are you giving this strategy for free?
I'm confident his strategy might be improved a lot. By keeping it to myself I would avoid other people contributions to improve it.
Now that everyone can contribute this is a win-win.
FAQ3. How can I connect this strategy to my Exchange account?
It seems that you can attach alerts to strategies.
You might want to combine it with a paying account which enable Webhook URLs to work.
I don't know how all of this works right now so I cannot give you advice on it.
You will have to do your own research on this subject. But, be careful. Automating trades, if not done properly,
might end on you automating losses.
FAQ4. I have just found that this strategy by default gives more than 3.97% of 'maximum series of losses'. That's unacceptable according to my risk management policy.
You might want to reduce default stop loss setting from 7% to something like 5% till you are ok with the 'maximum series of losses'.
FAQ5. Where can I learn more about your work on this strategy?
Check the source code. You might find unused strategies. Either because there's not a substantial increases on earnings. Or maybe because they have not been implemented yet.
FAQ6. How much leverage is applied in this strategy?
No leverage.
FAQ7. Any difference with original Jaime Merino strategy?
Most of the times Jaime defines an stop loss at the price entry. That's not the case here. The default stop loss is 7% (but, don't be confused it only means losing 1% of your investment thanks to risk management). There's also a trailing take profit that triggers at 2% profit with a 1% trailing.
FAQ8. Why this strategy return is so small?
The strategy should be improved a lot. And, well, backtesting in this platform is not guaranteed to return theoric results comparable to real-life returns. That's why I'm personally forward testing this strategy to verify it.
MENSAJE EN CASTELLANO
En primer lugar se agradece feedback para mejorar la estrategia.
Si eres un usuario avanzado y quieres colaborar en mejorar el script no dudes en comentar abajo.
Ten en cuenta que aunque toda esta descripción tenga que estar en inglés no es obligatorio que el comentario esté en inglés.
CHISTE - CASTELLANO
¡Pero Jaime!
¡400.000!
¡Tu da mun!
TA Basics: further "Steps" with our Moving AverageSo far in this series of posts, we have worked thru creating a basic zero-lag moving average, then moved forward all the way to coding a "Fibonacci" Weighted Moving Average.
in this post we take a look at a technique that can help traders minimize noise in the underlying data and get better insight on the changes that are happening in the data series represented by the moving average. we'll look at adding "stepping" to our Fibonacci Moving Average as an example. we introduce the Stepping Fibonacci Moving Average , or Step_FiMA
note that you can use the same technique with any plot you may have. feel free to copy or leverage the relevant parts of the script - the script is commented to make this easier.
How is this useful?
==================
with "stepping", you get your indicator to "round" the outcome into pre-specified bands or ranges. this works very similar to how, for example, range or Renko charts work. you can easily see the difference in the chart above once we look at a non-stepped and a stepping moving average of the same length side-by-side
the more granular your timeframe is, you will see the effect of the stepping clearer - here's how the same chart looks when we go into the 1-hr aggregation
Notes about this script
====================
there are couple of pieces i wanted to highlight in the script if you plan to use some of it :
1 - the step(x) function is meant to try to automatically pick the best "suitable" step size based on the range of the underlying series (for example, the closing price). these ranges i included here in the code are just my own "best choices" - you are totally welcome to adjust these ranges and the resulting step size to your own preference
2 - we applied the stepping as a user-choice. user can choose a manual entry, or "0" to get the code to automatically pick the step size, or enter -1 (or actually any value below zero) to cancel the stepping option altogether - this gives us some flexibility on how to use the stepping in an indicator
3 - very important (and somehow confusing): on the "rounding" approach:
the magic math formula that actually creates the stepping is this one
result = round(input / step) * step
now, this tells the script to "round" the result up or down (the basic rounding) -- so for example, a price of 17 with a step of 5 would be rounded (down) to 15, where as a price of 18 would be rounded "up" to 20 -- this is not the way some of us would expect or want, cause the price never reached 20 and they would want an 18 to still be rounded to 15 - and the stepping line not to show 20 *until* the price actually hits or exceeds 20 -- in that case, you would need to replace the function "round" with the function "floor" --
so the new formula becomes: floor(input / step) * step
-- in an ideal world, we can make this rounding choice a user-option in the settings -- maybe in an improved version
4 - we kept the smoothing option, and it takes place before the stepping is applied - we continue to use that smoothing to further minimize the level changes in the FiMA line.
I hope you find this script useful in your journey with technical analysis and DIY scripting, and good luck in your trading.
TTM Squeeze Scanner This script scans for TTM Squeezes for the crypto symbols included in the body of the script. The timeframe for the squeeze scan is controlled within the input not the chart.
This script is a merge of @Nico.Muselle's TTM Squeeze script and @QuantNomad's custom screener script. Thanks to both of them!
Backtesting & Trading Engine [PineCoders]The PineCoders Backtesting and Trading Engine is a sophisticated framework with hybrid code that can run as a study to generate alerts for automated or discretionary trading while simultaneously providing backtest results. It can also easily be converted to a TradingView strategy in order to run TV backtesting. The Engine comes with many built-in strats for entries, filters, stops and exits, but you can also add you own.
If, like any self-respecting strategy modeler should, you spend a reasonable amount of time constantly researching new strategies and tinkering, our hope is that the Engine will become your inseparable go-to tool to test the validity of your creations, as once your tests are conclusive, you will be able to run this code as a study to generate the alerts required to put it in real-world use, whether for discretionary trading or to interface with an execution bot/app. You may also find the backtesting results the Engine produces in study mode enough for your needs and spend most of your time there, only occasionally converting to strategy mode in order to backtest using TV backtesting.
As you will quickly grasp when you bring up this script’s Settings, this is a complex tool. While you will be able to see results very quickly by just putting it on a chart and using its built-in strategies, in order to reap the full benefits of the PineCoders Engine, you will need to invest the time required to understand the subtleties involved in putting all its potential into play.
Disclaimer: use the Engine at your own risk.
Before we delve in more detail, here’s a bird’s eye view of the Engine’s features:
More than 40 built-in strategies,
Customizable components,
Coupling with your own external indicator,
Simple conversion from Study to Strategy modes,
Post-Exit analysis to search for alternate trade outcomes,
Use of the Data Window to show detailed bar by bar trade information and global statistics, including some not provided by TV backtesting,
Plotting of reminders and generation of alerts on in-trade events.
By combining your own strats to the built-in strats supplied with the Engine, and then tuning the numerous options and parameters in the Inputs dialog box, you will be able to play what-if scenarios from an infinite number of permutations.
USE CASES
You have written an indicator that provides an entry strat but it’s missing other components like a filter and a stop strategy. You add a plot in your indicator that respects the Engine’s External Signal Protocol, connect it to the Engine by simply selecting your indicator’s plot name in the Engine’s Settings/Inputs and then run tests on different combinations of entry stops, in-trade stops and profit taking strats to find out which one produces the best results with your entry strat.
You are building a complex strategy that you will want to run as an indicator generating alerts to be sent to a third-party execution bot. You insert your code in the Engine’s modules and leverage its trade management code to quickly move your strategy into production.
You have many different filters and want to explore results using them separately or in combination. Integrate the filter code in the Engine and run through different permutations or hook up your filtering through the external input and control your filter combos from your indicator.
You are tweaking the parameters of your entry, filter or stop strat. You integrate it in the Engine and evaluate its performance using the Engine’s statistics.
You always wondered what results a random entry strat would yield on your markets. You use the Engine’s built-in random entry strat and test it using different combinations of filters, stop and exit strats.
You want to evaluate the impact of fees and slippage on your strategy. You use the Engine’s inputs to play with different values and get immediate feedback in the detailed numbers provided in the Data Window.
You just want to inspect the individual trades your strategy generates. You include it in the Engine and then inspect trades visually on your charts, looking at the numbers in the Data Window as you move your cursor around.
You have never written a production-grade strategy and you want to learn how. Inspect the code in the Engine; you will find essential components typical of what is being used in actual trading systems.
You have run your system for a while and have compiled actual slippage information and your broker/exchange has updated his fees schedule. You enter the information in the Engine and run it on your markets to see the impact this has on your results.
FEATURES
Before going into the detail of the Inputs and the Data Window numbers, here’s a more detailed overview of the Engine’s features.
Built-in strats
The engine comes with more than 40 pre-coded strategies for the following standard system components:
Entries,
Filters,
Entry stops,
2 stage in-trade stops with kick-in rules,
Pyramiding rules,
Hard exits.
While some of the filter and stop strats provided may be useful in production-quality systems, you will not devise crazy profit-generating systems using only the entry strats supplied; that part is still up to you, as will be finding the elusive combination of components that makes winning systems. The Engine will, however, provide you with a solid foundation where all the trade management nitty-gritty is handled for you. By binding your custom strats to the Engine, you will be able to build reliable systems of the best quality currently allowed on the TV platform.
On-chart trade information
As you move over the bars in a trade, you will see trade numbers in the Data Window change at each bar. The engine calculates the P&L at every bar, including slippage and fees that would be incurred were the trade exited at that bar’s close. If the trade includes pyramided entries, those will be taken into account as well, although for those, final fees and slippage are only calculated at the trade’s exit.
You can also see on-chart markers for the entry level, stop positions, in-trade special events and entries/exits (you will want to disable these when using the Engine in strategy mode to see TV backtesting results).
Customization
You can couple your own strats to the Engine in two ways:
1. By inserting your own code in the Engine’s different modules. The modular design should enable you to do so with minimal effort by following the instructions in the code.
2. By linking an external indicator to the engine. After making the proper selections in the engine’s Settings and providing values respecting the engine’s protocol, your external indicator can, when the Engine is used in Indicator mode only:
Tell the engine when to enter long or short trades, but let the engine’s in-trade stop and exit strats manage the exits,
Signal both entries and exits,
Provide an entry stop along with your entry signal,
Filter other entry signals generated by any of the engine’s entry strats.
Conversion from strategy to study
TradingView strategies are required to backtest using the TradingView backtesting feature, but if you want to generate alerts with your script, whether for automated trading or just to trigger alerts that you will use in discretionary trading, your code has to run as a study since, for the time being, strategies can’t generate alerts. From hereon we will use indicator as a synonym for study.
Unless you want to maintain two code bases, you will need hybrid code that easily flips between strategy and indicator modes, and your code will need to restrict its use of strategy() calls and their arguments if it’s going to be able to run both as an indicator and a strategy using the same trade logic. That’s one of the benefits of using this Engine. Once you will have entered your own strats in the Engine, it will be a matter of commenting/uncommenting only four lines of code to flip between indicator and strategy modes in a matter of seconds.
Additionally, even when running in Indicator mode, the Engine will still provide you with precious numbers on your individual trades and global results, some of which are not available with normal TradingView backtesting.
Post-Exit Analysis for alternate outcomes (PEA)
While typical backtesting shows results of trade outcomes, PEA focuses on what could have happened after the exit. The intention is to help traders get an idea of the opportunity/risk in the bars following the trade in order to evaluate if their exit strategies are too aggressive or conservative.
After a trade is exited, the Engine’s PEA module continues analyzing outcomes for a user-defined quantity of bars. It identifies the maximum opportunity and risk available in that space, and calculates the drawdown required to reach the highest opportunity level post-exit, while recording the number of bars to that point.
Typically, if you can’t find opportunity greater than 1X past your trade using a few different reasonable lengths of PEA, your strategy is doing pretty good at capturing opportunity. Remember that 100% of opportunity is never capturable. If, however, PEA was finding post-trade maximum opportunity of 3 or 4X with average drawdowns of 0.3 to those areas, this could be a clue revealing your system is exiting trades prematurely. To analyze PEA numbers, you can uncomment complete sets of plots in the Plot module to reveal detailed global and individual PEA numbers.
Statistics
The Engine provides stats on your trades that TV backtesting does not provide, such as:
Average Profitability Per Trade (APPT), aka statistical expectancy, a crucial value.
APPT per bar,
Average stop size,
Traded volume .
It also shows you on a trade-by-trade basis, on-going individual trade results and data.
In-trade events
In-trade events can plot reminders and trigger alerts when they occur. The built-in events are:
Price approaching stop,
Possible tops/bottoms,
Large stop movement (for discretionary trading where stop is moved manually),
Large price movements.
Slippage and Fees
Even when running in indicator mode, the Engine allows for slippage and fees to be included in the logic and test results.
Alerts
The alert creation mechanism allows you to configure alerts on any combination of the normal or pyramided entries, exits and in-trade events.
Backtesting results
A few words on the numbers calculated in the Engine. Priority is given to numbers not shown in TV backtesting, as you can readily convert the script to a strategy if you need them.
We have chosen to focus on numbers expressing results relative to X (the trade’s risk) rather than in absolute currency numbers or in other more conventional but less useful ways. For example, most of the individual trade results are not shown in percentages, as this unit of measure is often less meaningful than those expressed in units of risk (X). A trade that closes with a +25% result, for example, is a poor outcome if it was entered with a -50% stop. Expressed in X, this trade’s P&L becomes 0.5, which provides much better insight into the trade’s outcome. A trade that closes with a P&L of +2X has earned twice the risk incurred upon entry, which would represent a pre-trade risk:reward ratio of 2.
The way to go about it when you think in X’s and that you adopt the sound risk management policy to risk a fixed percentage of your account on each trade is to equate a currency value to a unit of X. E.g. your account is 10K USD and you decide you will risk a maximum of 1% of it on each trade. That means your unit of X for each trade is worth 100 USD. If your APPT is 2X, this means every time you risk 100 USD in a trade, you can expect to make, on average, 200 USD.
By presenting results this way, we hope that the Engine’s statistics will appeal to those cognisant of sound risk management strategies, while gently leading traders who aren’t, towards them.
We trade to turn in tangible profits of course, so at some point currency must come into play. Accordingly, some values such as equity, P&L, slippage and fees are expressed in currency.
Many of the usual numbers shown in TV backtests are nonetheless available, but they have been commented out in the Engine’s Plot module.
Position sizing and risk management
All good system designers understand that optimal risk management is at the very heart of all winning strategies. The risk in a trade is defined by the fraction of current equity represented by the amplitude of the stop, so in order to manage risk optimally on each trade, position size should adjust to the stop’s amplitude. Systems that enter trades with a fixed stop amplitude can get away with calculating position size as a fixed percentage of current equity. In the context of a test run where equity varies, what represents a fixed amount of risk translates into different currency values.
Dynamically adjusting position size throughout a system’s life is optimal in many ways. First, as position sizing will vary with current equity, it reproduces a behavioral pattern common to experienced traders, who will dial down risk when confronted to poor performance and increase it when performance improves. Second, limiting risk confers more predictability to statistical test results. Third, position sizing isn’t just about managing risk, it’s also about maximizing opportunity. By using the maximum leverage (no reference to trading on margin here) into the trade that your risk management strategy allows, a dynamic position size allows you to capture maximal opportunity.
To calculate position sizes using the fixed risk method, we use the following formula: Position = Account * MaxRisk% / Stop% [, which calculates a position size taking into account the trade’s entry stop so that if the trade is stopped out, 100 USD will be lost. For someone who manages risk this way, common instructions to invest a certain percentage of your account in a position are simply worthless, as they do not take into account the risk incurred in the trade.
The Engine lets you select either the fixed risk or fixed percentage of equity position sizing methods. The closest thing to dynamic position sizing that can currently be done with alerts is to use a bot that allows syntax to specify position size as a percentage of equity which, while being dynamic in the sense that it will adapt to current equity when the trade is entered, does not allow us to modulate position size using the stop’s amplitude. Changes to alerts are on the way which should solve this problem.
In order for you to simulate performance with the constraint of fixed position sizing, the Engine also offers a third, less preferable option, where position size is defined as a fixed percentage of initial capital so that it is constant throughout the test and will thus represent a varying proportion of current equity.
Let’s recap. The three position sizing methods the Engine offers are:
1. By specifying the maximum percentage of risk to incur on your remaining equity, so the Engine will dynamically adjust position size for each trade so that, combining the stop’s amplitude with position size will yield a fixed percentage of risk incurred on current equity,
2. By specifying a fixed percentage of remaining equity. Note that unless your system has a fixed stop at entry, this method will not provide maximal risk control, as risk will vary with the amplitude of the stop for every trade. This method, as the first, does however have the advantage of automatically adjusting position size to equity. It is the Engine’s default method because it has an equivalent in TV backtesting, so when flipping between indicator and strategy mode, test results will more or less correspond.
3. By specifying a fixed percentage of the Initial Capital. While this is the least preferable method, it nonetheless reflects the reality confronted by most system designers on TradingView today. In this case, risk varies both because the fixed position size in initial capital currency represents a varying percentage of remaining equity, and because the trade’s stop amplitude may vary, adding another variability vector to risk.
Note that the Engine cannot display equity results for strategies entering trades for a fixed amount of shares/contracts at a variable price.
SETTINGS/INPUTS
Because the initial text first published with a script cannot be edited later and because there are just too many options, the Engine’s Inputs will not be covered in minute detail, as they will most certainly evolve. We will go over them with broad strokes; you should be able to figure the rest out. If you have questions, just ask them here or in the PineCoders Telegram group.
Display
The display header’s checkbox does nothing.
For the moment, only one exit strategy uses a take profit level, so only that one will show information when checking “Show Take Profit Level”.
Entries
You can activate two simultaneous entry strats, each selected from the same set of strats contained in the Engine. If you select two and they fire simultaneously, the main strat’s signal will be used.
The random strat in each list uses a different seed, so you will get different results from each.
The “Filter transitions” and “Filter states” strats delegate signal generation to the selected filter(s). “Filter transitions” signals will only fire when the filter transitions into bull/bear state, so after a trade is stopped out, the next entry may take some time to trigger if the filter’s state does not change quickly. When you choose “Filter states”, then a new trade will be entered immediately after an exit in the direction the filter allows.
If you select “External Indicator”, your indicator will need to generate a +2/-2 (or a positive/negative stop value) to enter a long/short position, providing the selected filters allow for it. If you wish to use the Engine’s capacity to also derive the entry stop level from your indicator’s signal, then you must explicitly choose this option in the Entry Stops section.
Filters
You can activate as many filters as you wish; they are additive. The “Maximum stop allowed on entry” is an important component of proper risk management. If your system has an average 3% stop size and you need to trade using fixed position sizes because of alert/execution bot limitations, you must use this filter because if your system was to enter a trade with a 15% stop, that trade would incur 5 times the normal risk, and its result would account for an abnormally high proportion in your system’s performance.
Remember that any filter can also be used as an entry signal, either when it changes states, or whenever no trade is active and the filter is in a bull or bear mode.
Entry Stops
An entry stop must be selected in the Engine, as it requires a stop level before the in-trade stop is calculated. Until the selected in-trade stop strat generates a stop that comes closer to price than the entry stop (or respects another one of the in-trade stops kick in strats), the entry stop level is used.
It is here that you must select “External Indicator” if your indicator supplies a +price/-price value to be used as the entry stop. A +price is expected for a long entry and a -price value will enter a short with a stop at price. Note that the price is the absolute price, not an offset to the current price level.
In-Trade Stops
The Engine comes with many built-in in-trade stop strats. Note that some of them share the “Length” and “Multiple” field, so when you swap between them, be sure that the length and multiple in use correspond to what you want for that stop strat. Suggested defaults appear with the name of each strat in the dropdown.
In addition to the strat you wish to use, you must also determine when it kicks in to replace the initial entry’s stop, which is determined using different strats. For strats where you can define a positive or negative multiple of X, percentage or fixed value for a kick-in strat, a positive value is above the trade’s entry fill and a negative one below. A value of zero represents breakeven.
Pyramiding
What you specify in this section are the rules that allow pyramiding to happen. By themselves, these rules will not generate pyramiding entries. For those to happen, entry signals must be issued by one of the active entry strats, and conform to the pyramiding rules which act as a filter for them. The “Filter must allow entry” selection must be chosen if you want the usual system’s filters to act as additional filtering criteria for your pyramided entries.
Hard Exits
You can choose from a variety of hard exit strats. Hard exits are exit strategies which signal trade exits on specific events, as opposed to price breaching a stop level in In-Trade Stops strategies. They are self-explanatory. The last one labelled When Take Profit Level (multiple of X) is reached is the only one that uses a level, but contrary to stops, it is above price and while it is relative because it is expressed as a multiple of X, it does not move during the trade. This is the level called Take Profit that is show when the “Show Take Profit Level” checkbox is checked in the Display section.
While stops focus on managing risk, hard exit strategies try to put the emphasis on capturing opportunity.
Slippage
You can define it as a percentage or a fixed value, with different settings for entries and exits. The entry and exit markers on the chart show the impact of slippage on the entry price (the fill).
Fees
Fees, whether expressed as a percentage of position size in and out of the trade or as a fixed value per in and out, are in the same units of currency as the capital defined in the Position Sizing section. Fees being deducted from your Capital, they do not have an impact on the chart marker positions.
In-Trade Events
These events will only trigger during trades. They can be helpful to act as reminders for traders using the Engine as assistance to discretionary trading.
Post-Exit Analysis
It is normally on. Some of its results will show in the Global Numbers section of the Data Window. Only a few of the statistics generated are shown; many more are available, but commented out in the Plot module.
Date Range Filtering
Note that you don’t have to change the dates to enable/diable filtering. When you are done with a specific date range, just uncheck “Date Range Filtering” to disable date filtering.
Alert Triggers
Each selection corresponds to one condition. Conditions can be combined into a single alert as you please. Just be sure you have selected the ones you want to trigger the alert before you create the alert. For example, if you trade in both directions and you want a single alert to trigger on both types of exits, you must select both “Long Exit” and “Short Exit” before creating your alert.
Once the alert is triggered, these settings no longer have relevance as they have been saved with the alert.
When viewing charts where an alert has just triggered, if your alert triggers on more than one condition, you will need the appropriate markers active on your chart to figure out which condition triggered the alert, since plotting of markers is independent of alert management.
Position sizing
You have 3 options to determine position size:
1. Proportional to Stop -> Variable, with a cap on size.
2. Percentage of equity -> Variable.
3. Percentage of Initial Capital -> Fixed.
External Indicator
This is where you connect your indicator’s plot that will generate the signals the Engine will act upon. Remember this only works in Indicator mode.
DATA WINDOW INFORMATION
The top part of the window contains global numbers while the individual trade information appears in the bottom part. The different types of units used to express values are:
curr: denotes the currency used in the Position Sizing section of Inputs for the Initial Capital value.
quote: denotes quote currency, i.e. the value the instrument is expressed in, or the right side of the market pair (USD in EURUSD ).
X: the stop’s amplitude, itself expressed in quote currency, which we use to express a trade’s P&L, so that a trade with P&L=2X has made twice the stop’s amplitude in profit. This is sometimes referred to as R, since it represents one unit of risk. It is also the unit of measure used in the APPT, which denotes expected reward per unit of risk.
X%: is also the stop’s amplitude, but expressed as a percentage of the Entry Fill.
The numbers appearing in the Data Window are all prefixed:
“ALL:” the number is the average for all first entries and pyramided entries.
”1ST:” the number is for first entries only.
”PYR:” the number is for pyramided entries only.
”PEA:” the number is for Post-Exit Analyses
Global Numbers
Numbers in this section represent the results of all trades up to the cursor on the chart.
Average Profitability Per Trade (X): This value is the most important gauge of your strat’s worthiness. It represents the returns that can be expected from your strat for each unit of risk incurred. E.g.: your APPT is 2.0, thus for every unit of currency you invest in a trade, you can on average expect to obtain 2 after the trade. APPT is also referred to as “statistical expectancy”. If it is negative, your strategy is losing, even if your win rate is very good (it means your winning trades aren’t winning enough, or your losing trades lose too much, or both). Its counterpart in currency is also shown, as is the APPT/bar, which can be a useful gauge in deciding between rivalling systems.
Profit Factor: Gross of winning trades/Gross of losing trades. Strategy is profitable when >1. Not as useful as the APPT because it doesn’t take into account the win rate and the average win/loss per trade. It is calculated from the total winning/losing results of this particular backtest and has less predictive value than the APPT. A good profit factor together with a poor APPT means you just found a chart where your system outperformed. Relying too much on the profit factor is a bit like a poker player who would think going all in with two’s against aces is optimal because he just won a hand that way.
Win Rate: Percentage of winning trades out of all trades. Taken alone, it doesn’t have much to do with strategy profitability. You can have a win rate of 99% but if that one trade in 100 ruins you because of poor risk management, 99% doesn’t look so good anymore. This number speaks more of the system’s profile than its worthiness. Still, it can be useful to gauge if the system fits your personality. It can also be useful to traders intending to sell their systems, as low win rate systems are more difficult to sell and require more handholding of worried customers.
Equity (curr): This the sum of initial capital and the P&L of your system’s trades, including fees and slippage.
Return on Capital is the equivalent of TV’s Net Profit figure, i.e. the variation on your initial capital.
Maximum drawdown is the maximal drawdown from the highest equity point until the drop . There is also a close to close (meaning it doesn’t take into account in-trade variations) maximum drawdown value commented out in the code.
The next values are self-explanatory, until:
PYR: Avg Profitability Per Entry (X): this is the APPT for all pyramided entries.
PEA: Avg Max Opp . Available (X): the average maximal opportunity found in the Post-Exit Analyses.
PEA: Avg Drawdown to Max Opp . (X): this represents the maximum drawdown (incurred from the close at the beginning of the PEA analysis) required to reach the maximal opportunity point.
Trade Information
Numbers in this section concern only the current trade under the cursor. Most of them are self-explanatory. Use the description’s prefix to determine what the values applies to.
PYR: Avg Profitability Per Entry (X): While this value includes the impact of all current pyramided entries (and only those) and updates when you move your cursor around, P&L only reflects fees at the trade’s last bar.
PEA: Max Opp . Available (X): It’s the most profitable close reached post-trade, measured from the trade’s Exit Fill, expressed in the X value of the trade the PEA follows.
PEA: Drawdown to Max Opp . (X): This is the maximum drawdown from the trade’s Exit Fill that needs to be sustained in order to reach the maximum opportunity point, also expressed in X. Note that PEA numbers do not include slippage and fees.
EXTERNAL SIGNAL PROTOCOL
Only one external indicator can be connected to a script; in order to leverage its use to the fullest, the engine provides options to use it as either an entry signal, an entry/exit signal or a filter. When used as an entry signal, you can also use the signal to provide the entry’s stop. Here’s how this works:
For filter state: supply +1 for bull (long entries allowed), -1 for bear (short entries allowed).
For entry signals: supply +2 for long, -2 for short.
For exit signals: supply +3 for exit from long, -3 for exit from short.
To send an entry stop level with an entry signal: Send positive stop level for long entry (e.g. 103.33 to enter a long with a stop at 103.33), negative stop level for short entry (e.g. -103.33 to enter a short with a stop at 103.33). If you use this feature, your indicator will have to check for exact stop levels of 1.0, 2.0 or 3.0 and their negative counterparts, and fudge them with a tick in order to avoid confusion with other signals in the protocol.
Remember that mere generation of the values by your indicator will have no effect until you explicitly allow their use in the appropriate sections of the Engine’s Settings/Inputs.
An example of a script issuing a signal for the Engine is published by PineCoders.
RECOMMENDATIONS TO ASPIRING SYSTEM DESIGNERS
Stick to higher timeframes. On progressively lower timeframes, margins decrease and fees and slippage take a proportionally larger portion of profits, to the point where they can very easily turn a profitable strategy into a losing one. Additionally, your margin for error shrinks as the equilibrium of your system’s profitability becomes more fragile with the tight numbers involved in the shorter time frames. Avoid <1H time frames.
Know and calculate fees and slippage. To avoid market shock, backtest using conservative fees and slippage parameters. Systems rarely show unexpectedly good returns when they are confronted to the markets, so put all chances on your side by being outrageously conservative—or a the very least, realistic. Test results that do not include fees and slippage are worthless. Slippage is there for a reason, and that’s because our interventions in the market change the market. It is easier to find alpha in illiquid markets such as cryptos because not many large players participate in them. If your backtesting results are based on moving large positions and you don’t also add the inevitable slippage that will occur when you enter/exit thin markets, your backtesting will produce unrealistic results. Even if you do include large slippage in your settings, the Engine can only do so much as it will not let slippage push fills past the high or low of the entry bar, but the gap may be much larger in illiquid markets.
Never test and optimize your system on the same dataset , as that is the perfect recipe for overfitting or data dredging, which is trying to find one precise set of rules/parameters that works only on one dataset. These setups are the most fragile and often get destroyed when they meet the real world.
Try to find datasets yielding more than 100 trades. Less than that and results are not as reliable.
Consider all backtesting results with suspicion. If you never entertained sceptic tendencies, now is the time to begin. If your backtest results look really good, assume they are flawed, either because of your methodology, the data you’re using or the software doing the testing. Always assume the worse and learn proper backtesting techniques such as monte carlo simulations and walk forward analysis to avoid the traps and biases that unchecked greed will set for you. If you are not familiar with concepts such as survivor bias, lookahead bias and confirmation bias, learn about them.
Stick to simple bars or candles when designing systems. Other types of bars often do not yield reliable results, whether by design (Heikin Ashi) or because of the way they are implemented on TV (Renko bars).
Know that you don’t know and use that knowledge to learn more about systems and how to properly test them, about your biases, and about yourself.
Manage risk first , then capture opportunity.
Respect the inherent uncertainty of the future. Cleanse yourself of the sad arrogance and unchecked greed common to newcomers to trading. Strive for rationality. Respect the fact that while backtest results may look promising, there is no guarantee they will repeat in the future (there is actually a high probability they won’t!), because the future is fundamentally unknowable. If you develop a system that looks promising, don’t oversell it to others whose greed may lead them to entertain unreasonable expectations.
Have a plan. Understand what king of trading system you are trying to build. Have a clear picture or where entries, exits and other important levels will be in the sort of trade you are trying to create with your system. This stated direction will help you discard more efficiently many of the inevitably useless ideas that will pop up during system design.
Be wary of complexity. Experienced systems engineers understand how rapidly complexity builds when you assemble components together—however simple each one may be. The more complex your system, the more difficult it will be to manage.
Play! . Allow yourself time to play around when you design your systems. While much comes about from working with a purpose, great ideas sometimes come out of just trying things with no set goal, when you are stuck and don’t know how to move ahead. Have fun!
@LucF
NOTES
While the engine’s code can supply multiple consecutive entries of longs or shorts in order to scale positions (pyramid), all exits currently assume the execution bot will exit the totality of the position. No partial exits are currently possible with the Engine.
Because the Engine is literally crippled by the limitations on the number of plots a script can output on TV; it can only show a fraction of all the information it calculates in the Data Window. You will find in the Plot Module vast amounts of commented out lines that you can activate if you also disable an equivalent number of other plots. This may be useful to explore certain characteristics of your system in more detail.
When backtesting using the TV backtesting feature, you will need to provide the strategy parameters you wish to use through either Settings/Properties or by changing the default values in the code’s header. These values are defined in variables and used not only in the strategy() statement, but also as defaults in the Engine’s relevant Inputs.
If you want to test using pyramiding, then both the strategy’s Setting/Properties and the Engine’s Settings/Inputs need to allow pyramiding.
If you find any bugs in the Engine, please let us know.
THANKS
To @glaz for allowing the use of his unpublished MA Squize in the filters.
To @everget for his Chandelier stop code, which is also used as a filter in the Engine.
To @RicardoSantos for his pseudo-random generator, and because it’s from him that I first read in the Pine chat about the idea of using an external indicator as input into another. In the PineCoders group, @theheirophant then mentioned the idea of using it as a buy/sell signal and @simpelyfe showed a piece of code implementing the idea. That’s the tortuous story behind the use of the external indicator in the Engine.
To @admin for the Volatility stop’s original code and for the donchian function lifted from Ichimoku .
To @BobHoward21 for the v3 version of Volatility Stop .
To @scarf and @midtownsk8rguy for the color tuning.
To many other scripters who provided encouragement and suggestions for improvement during the long process of writing and testing this piece of code.
To J. Welles Wilder Jr. for ATR, used extensively throughout the Engine.
To TradingView for graciously making an account available to PineCoders.
And finally, to all fellow PineCoders for the constant intellectual stimulation; it is a privilege to share ideas with you all. The Engine is for all TradingView PineCoders, of course—but especially for you.
Look first. Then leap.
1-3-1 Strat Combo with 50% Level (12h)Logic Explanation
1-3-1 Combo Detection:
The script detects the 1-3-1 pattern using the previous 3 candles:
Candle 4: Inside Bar (Type 1).
Candle 3: Outside Bar (Type 3).
Candle 2: Inside Bar (Type 1).
4th Candle Behavior:
If the 4th candle (current bar):
Stays an inside bar (Type 1) → isFourthInsideBar is true.
Becomes a directional bar (Type 2) → isFourthDirectional is true.
If either of these conditions is true, the script stops calculating and waits for the next valid 1-3-1 setup.
50% Level Calculation:
If the conditions are not met (e.g., the 4th candle doesn’t stop the pattern), the script:
Plots a dotted line at the 50% level of the 3rd candle.
Adds a label showing the 50% level.
Stop Calculations:
No line, box, or label is drawn if the 4th candle is a Type 1 (inside bar) or Type 2 (directional bar).
Visual Outputs:
Dotted Box: Marks the 1-3-1 combo setup.
50% Line: Drawn only if the 4th candle does not invalidate the pattern.
Label: Displays the 50% level of the 3rd candle.
How to Use:
Apply this script on the 12-hour chart.
The script will:
Detect valid 1-3-1 patterns.
Stop drawing any calculations if the 4th candle is an inside bar (1) or a directional bar (2).
Wait for the next valid 1-3-1 combo.
IPO Lifecycle Sell Strategy [JARUTIR]IPO Lifecycle Sell Strategy with Dynamic Buy Date and Multiple Sell Rules
This custom TradingView script is designed for traders looking to capitalize on dynamic strategies for IPOs and growth stocks, by implementing several sell rules based on price action and technical indicators. It provides a set of sell rules that are applied dynamically depending on the stock's lifecycle and price action, allowing users to lock in profits and minimize drawdowns based on key technical thresholds.
The four sell strategies incorporated into this script are inspired by the book "The Lifecycle Trade", a resource that focuses on capturing profits while managing risk in different phases of a stock's lifecycle, from IPO to high-growth stages.
Key Features:
Buy Price and Buy Date: You can either manually input your buy price and date or let the script automatically detect the buy date based on the specified buy price.
Multiple Sell Strategies: Choose from 4 predefined sell strategies:
Ascender Rule : Captures strong momentum from IPO stocks by selling portions at specific price levels or technical conditions.
Midterm Rule : Focuses on holding for longer periods, with defensive sell signals triggered when the stock deviates significantly from peak price or key moving averages.
40 Week Rule : Designed for long-term holds, this rule triggers a sell when the stock closes below the 40-week moving average.
Everest Rule : Aggressive strategy for selling into strength based on parabolic moves or gap downs, ideal for high momentum stocks.
Interactive Features:
Horizontal Green Line showing the buy price level from the buy date.
Visual Sell Signals appear only after the buy date to ensure that your analysis is relevant to the stock lifecycle.
Customizable settings, allowing you to choose your preferred sell rule strategy and automate buy date detection.
This script is perfect for traders using a strategic, systematic approach to IPOs and high-growth stocks, whether you're looking for quick exits during momentum phases or holding for longer-term growth.
Usage:
Input your Buy Price and Buy Date, or allow the script to automate the buy date detection.
Select a Sell Rule strategy based on your risk profile and trading style.
View visual signals for selling when specific conditions are met.
Frequently Asked Questions (FAQs):
Q1: How do I input my Buy Price and Buy Date?
The script allows you to either manually input the Buy Price and Buy Date or use the automated detection. If you choose automated detection, the script will automatically assign the buy date when the price crosses above your set Buy Price.
Q2: What is the purpose of the "Sell Rules"?
The script offers four sell strategies to help manage different types of stocks in varying phases of their lifecycle:
Ascender Rule: Targets IPO stocks showing positive momentum.
Midterm Rule: A defensive strategy for stocks in a steady uptrend.
40 Week Rule: Long-term hold strategy designed to ride stocks through extended growth.
Everest Rule: Aggressive strategy to capture profits during parabolic price moves.
Q3: What is the significance of the Green Line at Buy Price?
The Green Line represents your entry point (Buy Price) on the chart. It will appear from the buy date onwards, helping you track the performance of your stock relative to your entry.
Q4: Can I customize the Sell Strategy?
Yes! You can choose from the available Sell Rules (Ascender Rule, Midterm Rule, 40 Week Rule, Everest Rule) via an input option in the script. Each strategy has its own unique triggers based on price action, moving averages, and time-based conditions.
Q5: Does this script work for stocks and crypto?
Yes, this script is designed for both stocks and cryptocurrencies. It works on any asset where price data and timeframes are available.
Q6: How do the Weekly Moving Averages (WSMA) work in this strategy?
The script uses weekly moving averages (WSMA) to track longer-term trends. These are essential for some of the sell rules, such as the Midterm Rule and 40 Week Rule, which rely on the stock's movement relative to the 40-week moving average.
Q7: Will the script plot a Sell Signal immediately after the Buy Date?
No, sell signals will only be plotted after the Buy Date. This ensures that the sell strategy is relevant to your actual holding period and avoids premature triggers.
Q8: How do I interpret the Sell Signal?
The script will plot a Red Sell Signal above the bar when the sell conditions are met, based on the selected strategy. This indicates that it may be a good time to exit the position according to your chosen rule.
Q9: Can I use this strategy on different timeframes?
Yes, you can apply the script to any timeframe. However, some sell strategies, like the Midterm Rule and 40 Week Rule, are designed to work best with weekly data, so it's recommended to use these strategies with longer timeframes.
Q10: Does this script have any alerts?
Yes! The script supports alert conditions that will notify you when the sell conditions are met according to your selected rule. You can set up alerts to stay informed without needing to watch the chart constantly.
Q11: What if I want to disable some of the sell rules?
You can select your preferred sell rule using the "Select Sell Rule" dropdown. If you don’t want to use a particular rule, simply choose a different strategy or leave it inactive.
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Disclaimer:
This strategy is intended for educational purposes only. It should not be considered financial advice. Always perform your own research and consult with a professional before making any trading decisions. Trading involves significant risk, and you should never trade with money you cannot afford to lose.
