Discipline Box Trader — by chaitu50cDiscipline Box Trader — by chaitu50c is a rule-based price action tool built around alternating candle structures.
For each session, the indicator detects FIRST key alternating zone, marks it as a gray “Discipline Box”, and then tracks how price breaks and rotates through that zone with clear green/red segments.
The idea is simple:
The script continuously looks for alternating candle sequences:
Red → Green → Red → Green …
or
Green → Red → Green → Red …
When the sequence reaches your minimum required length (Min candles in alternate combo), it:
Finds the highest high and lowest low of that entire alternation combo.
Draws a gray rectangular box from the start of the combo to its end.
This gray region is named the “Discipline Box”.
After this Discipline Box is created:
Upside breakout → close > box high
Downside breakout → close < box low
For example if, Upside Breakout → Green Regime Segment
The gray box is visually closed at the previous bar.
A new green box segment starts from the breakout bar.
Box fill, border, and center line all turn green.
This green segment extends to the right until another breakout flips the regime.
There is a small visible gap between the gray box and the new coloured segment, clearly showing where the breakout actually occurred.
Within the same session, price may:
Break up → green segment.
Later break down through the same band → red segment.
Possibly flip again.
All of this happens inside the one original Discipline Box, giving a clean visual map of who is in control now without creating new zones.
Reset Mode
None
No automatic reset; box can persist across all data.
New Day
At each new trading day:
Current box and center line are closed.
All internal counters reset.
A completely fresh Discipline Box can form for the new day.
Gap Minutes
If time between candles exceeds Gap Threshold (minutes):
Treat this as a session break.
Close the current box and restart detection after the gap.
This ensures clarity and separation between sessions and prevents overlapping “old” structure from dominating new market conditions.
Trading Framework: 2 Trades per Discipline Box
⚠️ This is not financial advice. This is a structured usage idea to support discipline.
A suggested trading framework to pair with this indicator:
Trade 1 — First Breakout Trade
Wait for the first body-based breakout from the Discipline Box:
Upside breakout → consider a single long trade.
Downside breakout → consider a single short trade.
Use the box high, low, and midline as reference points for:
Stop placement, partial exits, or risk-reward zones.
Trade 2 — Opposite Regime Flip
If price later breaks the opposite side of the same box:
Consider exactly one more trade in the new direction (a failed breakout / reversal play).
Example: green regime first, later broken down into red → potential short trade.
After these maximum 2 trades per Discipline Box, you can:
Skip additional trades inside that session’s structure.
Wait patiently for the next session and next Discipline Box to form.
This hard rule helps avoid over-trading, revenge trades, and emotional interference — staying faithful to the “Discipline” theme.
The indicator has a built-in alert condition: Discipline Box Detected
Triggers Whenever a new gray Discipline Box is created (i.e., the first valid alternation zone for that session).
Practical Notes & Disclaimer
The indicator does not tell you when to buy or sell; it simply:
Marks a disciplined structure zone.
Shows live regime shifts (green/red).
Supports a clear “max 2 trades per box” framework.
Use on a demo first, adapt to your style, and always remember:
Your discipline matters more than the indicator.
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Tristan's Multi-Indicator Reversal StrategyMulti-Indicator Reversal Strategy - Buy Low, Sell High
A comprehensive reversal detection system that combines multiple proven technical indicators to identify high-probability entry points for catching reversals at market extremes.
📊 Strategy Overview
This strategy is designed for traders who want to buy at lows and sell at highs by detecting when stocks are overextended and ready to reverse. It works by requiring multiple technical indicators to align before generating a signal, significantly reducing false entries.
Best Used On:
Timeframe: 1-hour charts (also works on 15min, 30min, 4hour)
Session: NY Trading Session (9:30 AM - 4:00 PM ET)
Assets: Stocks, ETFs, Crypto (particularly volatile tech stocks like ZM, TSLA, AAPL)
Trading Style: Swing trading, Intraday reversals
🔧 Technical Components
The strategy combines FIVE powerful technical indicators:
1. RSI (Relative Strength Index)
2. MACD (Moving Average Convergence Divergence)
3. Williams %R
4. Bollinger Bands
5. Volume Analysis
6. Divergence Detection (Optional)
🎨 Visual Signals
Entry Signals:
🟢 Green Triangle (below candle) = BUY LONG signal
🔴 Red Triangle (above candle) = SELL SHORT signal
Exit Signals:
🟣 Purple Label = Position closed (shows "x2", "x3" if multiple entries)
Additional Indicators:
💎 Aqua Diamond = Bullish divergence detected
💎 Fuchsia Diamond = Bearish divergence detected
🔵 Blue Background = NY Session active
🟡 Yellow Bar Tint = Volume spike detected
⚪ Small Circles = Near-signal conditions (2+ indicators aligned)
Live Counter:
Top corner shows: "Bull: X/4" and "Bear: X/4"
Indicates how many indicators currently align
⚙️ How to Use This Strategy
For Beginners (More Signals):
Set "Min Indicators Aligned" to 2
Turn OFF "Require Divergence"
Turn OFF "Require Volume Spike"
Turn OFF "Require Reversal Candle Pattern"
Keep "Allow Multiple Entries" OFF
This gives you more frequent signals to learn from.
For Advanced Traders (High Probability):
Set "Min Indicators Aligned" to 3 or 4
Turn ON "Require Divergence"
Turn ON "Require Volume Spike"
Turn ON "Require Reversal Candle Pattern"
Adjust stop loss to your risk tolerance
This filters for only the highest-quality setups.
Recommended Settings for 1-Hour Charts:
Min Indicators Aligned: 3
Stop Loss: 2.5%
Take Profit: 5.0%
RSI Length: 14
Williams %R Length: 14
Volume Multiplier: 1.5x
Session: NY only (for stocks)
BUY SIGNAL generated when:
2-4 indicators show oversold/bullish conditions:
RSI < 30 and turning up
MACD crossing bullish or histogram positive
Williams %R < -80 and turning up
Price at/below lower Bollinger Band
Optional confirmations (if enabled):
Bullish divergence detected
Volume spike present
Bullish reversal candle pattern
Session filter: Signals only during NY trading hours
SELL SIGNAL Generated When:
2-4 indicators show overbought/bearish conditions:
RSI > 70 and turning down
MACD crossing bearish or histogram negative
Williams %R > -20 and turning down
Price at/above upper Bollinger Band
Optional confirmations (if enabled):
Bearish divergence detected
Volume spike present
Bearish reversal candle pattern
🛡️ Risk Management Features
Automatic Stop Loss: Protects capital (default 2.5%)
Take Profit Target: Locks in gains (default 5.0%)
Pyramiding Control: Toggle to prevent position stacking
Session Filter: Avoids overnight risk and low-liquidity periods
Position Flipping: Automatically reverses when opposite signal appears
💡 Best Practices
✅ DO:
Wait for candle close before entering (built into strategy)
Use on volatile assets with clear trends
Combine with your own analysis and risk management
Backtest on your specific assets and timeframes
Start with paper trading to learn the signals
Adjust indicator requirements based on market conditions
❌ DON'T:
Use on very low timeframes (<5 min) without adjustment
Ignore the session filter on stocks
Use maximum leverage - these are reversal trades
Trade during major news events or earnings
Expect 100% win rate - focus on risk/reward ratio
📊 Performance Notes
This strategy prioritizes quality over quantity. With default settings, you may see:
2-5 signals per week on 1-hour charts
Higher win rate with stricter settings (3-4 indicators aligned)
Best performance during trending markets with clear reversals
Reduced performance in choppy, sideways markets
Tip: Adjust "Min Indicators Aligned" based on market conditions:
Trending markets: Use 3-4 (fewer but stronger signals)
Range-bound markets: Use 2 (more signals, but watch for false breakouts)
OTE & A-B-C Zone Indicator SwiftEdgeOTE & A-B-C Zone Indicator SwiftEdge
Overview
The OTE & A-B-C Zone Indicator SwiftEdge is a versatile tool designed to help traders identify high-probability trading setups using a combination of Optimal Trade Entry (OTE) zones, Fibonacci levels, and A-B-C price patterns. This indicator is particularly useful for traders who rely on price action and Fibonacci-based strategies to find entry points, set stop-losses, and target potential take-profit levels. By integrating swing point detection, trend analysis, and Fibonacci projections, SwiftEdge provides a clear visual framework for making informed trading decisions across various timeframes.
What It Does
SwiftEdge identifies key price levels and zones to guide your trading:
OTE Zone: Highlights the Optimal Trade Entry zone between swing points A (swing high) and B (swing low) using Fibonacci retracement levels (default: 0.618 to 0.786). This zone represents a high-probability area for price reversals, making it an ideal entry point for trades.
A-B-C Pattern: Marks the latest swing points as A (swing high), B (swing low), and C (projected take-profit level) with dashed lines and labels. A solid line connects A to B to C, visually illustrating the price movement from entry to target.
Take-Profit Zones: Projects three customizable take-profit levels (TP1, TP2, TP3) based on Fibonacci extensions (default: 1.272, 1.618, 2.0) from the A-B swing, helping traders plan exits with favorable risk-reward ratios.
How It Works
SwiftEdge combines several technical components to create a cohesive trading system:
Swing Point Detection: Identifies significant swing highs (A) and swing lows (B) using a dynamic lookback period that adjusts to the selected timeframe. On lower timeframes like 1-minute charts, an ATR-based filter reduces noise by requiring price movements to exceed a threshold (0.5 * ATR(14)).
Trend Analysis: Uses an Exponential Moving Average (EMA) to determine the trend direction (default: 50-period EMA on 1H). The indicator marks uptrends (price above EMA) in green and downtrends (price below EMA) in red, ensuring trades align with the market's direction.
Fibonacci Levels: Applies Fibonacci retracement to define the OTE zone between A and B, and Fibonacci extensions to project take-profit levels (C) beyond the initial swing. This approach leverages the natural tendency of markets to respect Fibonacci ratios for reversals and extensions.
Visual Clarity: Displays only the latest A-B-C pattern with three dashed lines (A, B, C) and a solid connecting line, ensuring the chart remains uncluttered and easy to interpret.
The combination of these elements creates a structured setup where the OTE zone (between A and B) serves as an entry point, while the projected C level offers a target, all within the context of the prevailing trend. This synergy makes SwiftEdge a powerful tool for traders seeking to combine price action, trend analysis, and Fibonacci strategies.
How to Use
Add the Indicator: Apply the indicator to your chart via TradingView's indicator menu.
Identify the Trend: The OTE zone and A-B-C pattern will be colored green in uptrends (price above EMA) or red in downtrends (price below EMA). Use this to determine the market direction.
Entry Point: Look for price reversals within the OTE zone (between A and B). This zone is typically between the 0.618 and 0.786 Fibonacci retracement levels of the A-B swing, making it a high-probability area for entries.
Stop-Loss: Place your stop-loss below the OTE zone in an uptrend (or above in a downtrend) to protect against false breakouts.
Take-Profit Targets: Use the projected take-profit zones (TP1, TP2, TP3) as potential exit levels. These are based on Fibonacci extensions and can be toggled on/off in the settings.
Customization:
Adjust the Fibonacci levels for the OTE zone (Fibonacci Level 1 and Fibonacci Level 2) to suit your strategy.
Modify the take-profit levels (Fibonacci Extension Level for TP1/TP2/TP3) to target different extension ratios.
Change the lookback period (Base Lookback Period) and EMA period (Base EMA Period) to fine-tune swing point detection and trend sensitivity.
Customize colors for uptrends, downtrends, and A-B-C lines to match your preferences.
What Makes It Unique
SwiftEdge stands out by integrating swing point detection, Fibonacci-based OTE zones, and A-B-C price patterns into a single, visually intuitive indicator. Unlike standalone Fibonacci tools or trend indicators, SwiftEdge combines these elements to provide a complete trading setup: it identifies entry zones (OTE), confirms trend direction (EMA), and projects take-profit targets (Fibonacci extensions). The dynamic timeframe adjustment ensures consistent performance across all chart intervals, while the clean A-B-C visualization (with only the latest pattern displayed) prevents chart clutter, making it easier to focus on the most relevant price levels.
Notes
This indicator is designed for traders familiar with price action and Fibonacci strategies. It does not guarantee profits and should be used in conjunction with other analysis tools and proper risk management.
Performance may vary depending on market conditions and timeframe. Test the indicator on a demo account before using it in live trading.
Squeeze Momentum Indicator Strategy [LazyBear + PineIndicators]The Squeeze Momentum Indicator Strategy (SQZMOM_LB Strategy) is an automated trading strategy based on the Squeeze Momentum Indicator developed by LazyBear, which itself is a modification of John Carter's "TTM Squeeze" concept from his book Mastering the Trade (Chapter 11). This strategy is designed to identify low-volatility phases in the market, which often precede explosive price movements, and to enter trades in the direction of the prevailing momentum.
Concept & Indicator Breakdown
The strategy employs a combination of Bollinger Bands (BB) and Keltner Channels (KC) to detect market squeezes:
Squeeze Condition:
When Bollinger Bands are inside the Keltner Channels (Black Crosses), volatility is low, signaling a potential upcoming price breakout.
When Bollinger Bands move outside Keltner Channels (Gray Crosses), the squeeze is released, indicating an expansion in volatility.
Momentum Calculation:
A linear regression-based momentum value is used instead of traditional momentum indicators.
The momentum histogram is color-coded to show strength and direction:
Lime/Green: Increasing bullish momentum
Red/Maroon: Increasing bearish momentum
Signal Colors:
Black: Market is in a squeeze (low volatility).
Gray: Squeeze is released, and volatility is expanding.
Blue: No squeeze condition is present.
Strategy Logic
The script uses historical volatility conditions and momentum trends to generate buy/sell signals and manage positions.
1. Entry Conditions
Long Position (Buy)
The squeeze just released (Gray Cross after Black Cross).
The momentum value is increasing and positive.
The momentum is at a local low compared to the past 100 bars.
The price is above the 100-period EMA.
The closing price is higher than the previous close.
Short Position (Sell)
The squeeze just released (Gray Cross after Black Cross).
The momentum value is decreasing and negative.
The momentum is at a local high compared to the past 100 bars.
The price is below the 100-period EMA.
The closing price is lower than the previous close.
2. Exit Conditions
Long Exit:
The momentum value starts decreasing (momentum lower than previous bar).
Short Exit:
The momentum value starts increasing (momentum higher than previous bar).
Position Sizing
Position size is dynamically adjusted based on 8% of strategy equity, divided by the current closing price, ensuring risk-adjusted trade sizes.
How to Use This Strategy
Apply on Suitable Markets:
Best for stocks, indices, and forex pairs with momentum-driven price action.
Works on multiple timeframes but is most effective on higher timeframes (1H, 4H, Daily).
Confirm Entries with Additional Indicators:
The author recommends ADX or WaveTrend to refine entries and avoid false signals.
Risk Management:
Since the strategy dynamically sizes positions, it's advised to use stop-losses or risk-based exits to avoid excessive drawdowns.
Final Thoughts
The Squeeze Momentum Indicator Strategy provides a systematic approach to trading volatility expansions, leveraging the classic TTM Squeeze principles with a unique linear regression-based momentum calculation. Originally inspired by John Carter’s method, LazyBear's version and this strategy offer a refined, adaptable tool for traders looking to capitalize on market momentum shifts.
RVMM IndicatorRVMM Indicator
RVMM Indicator combines four indicators: RSI, VWAP, MFI, and Momentum to provide comprehensive technical analysis. This indicator helps traders identify potential market conditions based on the interaction of these indicators.
Components of the RVMM Indicator
1. RSI (Relative Strength Index)
RSI is a momentum indicator that measures the speed and change of price movements. RSI oscillates between 0 and 100 and is used to identify overbought and oversold conditions in the market.
Buy Level: Set at 30. When RSI falls below 30, the market is considered oversold, which may suggest a potential upward trend reversal.
Sell Level: Set at 70. When RSI rises above 70, the market is considered overbought, which may suggest a potential downward trend reversal.
2. VWAP (Volume Weighted Average Price)
VWAP is an indicator that combines price and volume to calculate the average price weighted by volume. VWAP is used to identify support and resistance areas and assess the strength of price movements.
Interpretation: If the price is above the VWAP line, the market is likely in an uptrend. If the price is below the VWAP line, the market is in a downtrend.
3. MFI (Money Flow Index)
MFI is a momentum indicator that considers both price and volume. MFI oscillates between 0 and 100 and is used to identify overbought and oversold conditions in the market.
Oversold Level: Set at 20. When MFI falls below 20, the market is considered oversold.
Overbought Level: Set at 80. When MFI rises above 80, the market is considered overbought.
4. Momentum
Momentum is an indicator that measures the speed of price changes. This indicator is used to identify the strength of a trend.
Interpretation: High momentum values indicate a strong uptrend, while low momentum values indicate a strong downtrend.
How to Use the RVMM Indicator
Interpreting Market Conditions:
RSI : Check RSI values below 30 to identify oversold conditions, and above 70 to identify overbought conditions.
VWAP : Observe whether the price is above or below the VWAP line to determine if the market is in an uptrend or downtrend.
MFI : Check if MFI is below 20 to identify oversold conditions, and above 80 to identify overbought conditions.
Momentum : Analyze momentum values to gauge the strength of the current trend.
Confirming Market Conditions:
Use VWAP, MFI, and Momentum to confirm market conditions identified by RSI.
If the price is above the VWAP line, and MFI and Momentum indicate the strength of the uptrend, the market may be in a bullish phase.
If the price is below the VWAP line, and MFI and Momentum indicate the strength of the downtrend, the market may be in a bearish phase.
Risk Management:
Set stop-loss and take-profit levels based on technical analysis and your trading preferences.
Monitor the market and adjust stop-loss and take-profit levels as market conditions change.
Example of Application
Here is an example of how to use the RVMM Indicator in practice:
Bullish Phase: When the price is above the VWAP line, RSI is below 30, and MFI and Momentum indicate the strength of the uptrend, the market is likely in a bullish phase.
Bearish Phase: When the price is below the VWAP line, RSI is above 70, and MFI and Momentum indicate the strength of the downtrend, the market is likely in a bearish phase.
120 GOAT - Simple Moving Average Breakout IndicatorThe 120 GOAT indicator is a powerful tool designed to help traders identify key breakout points relative to the 120-day Simple Moving Average (SMA). This indicator tracks when the price crosses above or below the 120-day SMA, marking these transition points on the chart with dynamic labels that indicate the percentage change in price since the last crossover.
With the 120 GOAT indicator, traders can:
Identify trend reversals when the price crosses the 120-day SMA.
Monitor price momentum and potential support or resistance levels relative to the 120-day SMA.
Receive alerts when a breakout occurs above or below the 120-day SMA, ensuring they never miss an important market move.
Key Features:
120-day SMA: A customizable 120-day Simple Moving Average that serves as a benchmark for price movements.
Dynamic Labels: The indicator provides labels showing the number of days since the last crossover and the percentage change in price from the previous crossover.
Color-coded Breakout Signals: Labels change color based on the nature of the breakout and price movement:
Above SMA: Green for positive price change, blue for negative.
Below SMA: Orange for positive price change, red for negative.
Price Line Tracking: Displays the current price level relative to the SMA.
Custom Alerts: Set alerts for when the price crosses above or below the 120-day SMA to stay updated on significant market events.
How to Use the 120 GOAT Indicator:
Add the Indicator to Your Chart:
Open TradingView and go to the chart where you want to use the 120 GOAT indicator.
Click on the "Indicators" button at the top of the chart.
Search for "120 GOAT" and select it from the list to apply it to your chart.
Customize the Settings:
Show 120 MA: Toggle this option on if you want the 120-day SMA to be displayed on your chart.
MA Color: Choose your preferred color for the 120-day SMA line.
SMA Length: You can adjust the length of the moving average if you prefer a different period. The default is set to 120 days.
Interpret the Signals:
When the price crosses above the 120-day SMA, the indicator will display a label below the price bar showing the number of days since the last crossover and the percentage change in price. If the price change is positive, the label is green; if negative, it is blue.
When the price crosses below the 120-day SMA, a similar label will appear above the price bar. If the price change is positive, the label is orange; if negative, it is red.
Set Alerts for Key Market Movements:
Go to the Alerts panel and create a new alert.
Select 120 GOAT as the condition.
Choose either "Price Crossed Above SMA 120" or "Price Crossed Below SMA 120" as the alert criteria.
Configure the alert frequency and other settings as needed, then click "Create."
Monitor the Indicator for Trading Opportunities:
Use the breakout signals and percentage change information to identify potential trading opportunities.
Combine this indicator with other technical analysis tools to validate trade setups and enhance decision-making.
Disclaimer: The 120 GOAT indicator is designed for educational purposes and should not be considered as financial advice. Always conduct your own research and consult with a professional financial advisor before making trading decisions.
Uptrick: Dynamic AMA RSI Indicator### **Uptrick: Dynamic AMA RSI Indicator**
**Overview:**
The **Uptrick: Dynamic AMA RSI Indicator** is an advanced technical analysis tool designed for traders who seek to optimize their trading strategies by combining adaptive moving averages with the Relative Strength Index (RSI). This indicator dynamically adjusts to market conditions, offering a nuanced approach to trend detection and momentum analysis. By leveraging the Adaptive Moving Average (AMA) and Fast Adaptive Moving Average (FAMA), along with RSI-based overbought and oversold signals, traders can better identify entry and exit points with higher precision and reduced noise.
**Key Components:**
1. **Source Input:**
- The source input is the price data that forms the basis of all calculations. Typically set to the closing price, traders can customize this to other price metrics such as open, high, low, or even the output of another indicator. This flexibility allows the **Uptrick** indicator to be tailored to a wide range of trading strategies.
2. **Adaptive Moving Average (AMA):**
- The AMA is a moving average that adapts its sensitivity based on the dominant market cycle. This adaptation allows the AMA to respond swiftly to significant price movements while smoothing out minor fluctuations, making it particularly effective in trending markets. The AMA adjusts its responsiveness dynamically using a calculated phase adjustment from the dominant cycle, ensuring it remains responsive to the current market environment without being overly reactive to market noise.
3. **Fast Adaptive Moving Average (FAMA):**
- The FAMA is a more sensitive version of the AMA, designed to react faster to price changes. It serves as a signal line in the crossover strategy, highlighting shorter-term trends. The interaction between the AMA and FAMA forms the core of the signal generation, with crossovers between these lines indicating potential buy or sell opportunities.
4. **Relative Strength Index (RSI):**
- The RSI is a momentum oscillator that measures the speed and change of price movements, providing insights into whether an asset is overbought or oversold. In the **Uptrick** indicator, the RSI is used to confirm the validity of crossover signals between the AMA and FAMA, adding an additional layer of reliability to the trading signals.
**Indicator Logic:**
1. **Dominant Cycle Calculation:**
- The indicator starts by calculating the dominant market cycle using a smoothed price series. This involves applying exponential moving averages to a series of price differences, extracting cycle components, and determining the instantaneous phase of the cycle. This phase is then adjusted to provide a phase adjustment factor, which plays a critical role in determining the adaptive alpha.
2. **Adaptive Alpha Calculation:**
- The adaptive alpha, a key feature of the AMA, is computed based on the fast and slow limits set by the trader. This alpha is clamped within these limits to ensure the AMA remains appropriately sensitive to market conditions. The dynamic adjustment of alpha allows the AMA to be highly responsive in volatile markets and more conservative in stable markets.
3. **Crossover Detection:**
- The indicator generates trading signals based on crossovers between the AMA and FAMA:
- **CrossUp:** When the AMA crosses above the FAMA, it indicates a potential bullish trend, suggesting a buy opportunity.
- **CrossDown:** When the AMA crosses below the FAMA, it signals a potential bearish trend, indicating a sell opportunity.
4. **RSI Confirmation:**
- To enhance the reliability of these crossover signals, the indicator uses the RSI to confirm overbought and oversold conditions:
- **Buy Signal:** A buy signal is generated only when the AMA crosses above the FAMA and the RSI confirms an oversold condition, ensuring that the signal aligns with a momentum reversal from a low point.
- **Sell Signal:** A sell signal is triggered when the AMA crosses below the FAMA and the RSI confirms an overbought condition, indicating a momentum reversal from a high point.
5. **Signal Management:**
- To prevent signal redundancy during strong trends, the indicator tracks the last generated signal (buy or sell) and ensures that the next signal is only issued when there is a genuine reversal in trend direction.
6. **Signal Visualization:**
- **Buy Signals:** The indicator plots a "BUY" label below the bar when a buy signal is generated, using a green color to clearly mark the entry point.
- **Sell Signals:** A "SELL" label is plotted above the bar when a sell signal is detected, marked in red to indicate an exit or shorting opportunity.
- **Bar Coloring (Optional):** Traders have the option to enable bar coloring, where green bars indicate a bullish trend (AMA above FAMA) and red bars indicate a bearish trend (AMA below FAMA), providing a visual representation of the market’s direction.
**Customization Options:**
- **Source:** Traders can select the price data input that best suits their strategy (e.g., close, open, high, low, or custom indicators).
- **Fast Limit:** Adjustable sensitivity for the fast response of the AMA, allowing traders to tailor the indicator to different market conditions.
- **Slow Limit:** Sets the slower boundary for the AMA’s sensitivity, providing stability in less volatile markets.
- **RSI Length:** The period for the RSI calculation can be adjusted to fit different trading timeframes.
- **Overbought/Oversold Levels:** These thresholds can be customized to define the RSI levels that trigger buy or sell confirmations.
- **Enable Bar Colors:** Traders can choose whether to enable bar coloring based on the AMA/FAMA relationship, enhancing visual clarity.
**How Different Traders Can Use the Indicator:**
1. **Day Traders:**
- **Uptrick: Dynamic AMA RSI Indicator** is highly effective for day traders who need to make quick decisions in fast-moving markets. The adaptive nature of the AMA and FAMA allows the indicator to respond rapidly to intraday price swings. Day traders can use the buy and sell signals generated by the crossover and RSI confirmation to time their entries and exits with greater precision, minimizing exposure to false signals often prevalent in high-frequency trading environments.
2. **Swing Traders:**
- Swing traders can benefit from the indicator’s ability to identify and confirm trend reversals over several days or weeks. By adjusting the RSI length and sensitivity limits, swing traders can fine-tune the indicator to catch longer-term price movements, helping them to ride trends and maximize profits over medium-term trades. The dual confirmation of crossovers with RSI ensures that swing traders enter trades that have a higher probability of success.
3. **Position Traders:**
- For position traders who hold trades over longer periods, the **Uptrick** indicator offers a reliable method to stay in trades that align with the dominant trend while avoiding premature exits. By adjusting the slow limit and extending the RSI length, position traders can smooth out the indicator’s sensitivity, allowing them to focus on major market shifts rather than short-term volatility. The bar coloring feature also provides a clear visual indication of the overall trend, aiding in trade management decisions.
4. **Scalpers:**
- Scalpers, who seek to profit from small price movements, can use the fast responsiveness of the FAMA in conjunction with the RSI to identify micro-trends within larger market moves. The indicator’s ability to adapt quickly to changing conditions makes it a valuable tool for scalpers looking to execute numerous trades in a short period, capturing profits from minor price fluctuations while avoiding prolonged exposure.
5. **Algorithmic Traders:**
- Algorithmic traders can incorporate the **Uptrick** indicator into automated trading systems. The precise crossover signals combined with RSI confirmation provide clear and actionable rules that can be coded into algorithms. The adaptive nature of the indicator ensures that it can be used across different market conditions and timeframes, making it a versatile component of algorithmic strategies.
**Usage:**
The **Uptrick: Dynamic AMA RSI Indicator** is a versatile tool that can be integrated into various trading strategies, from short-term day trading to long-term investing. Its ability to adapt to changing market conditions and provide clear buy and sell signals makes it an invaluable asset for traders seeking to improve their trading performance. Whether used as a standalone indicator or in conjunction with other technical tools, **Uptrick** offers a dynamic approach to market analysis, helping traders to navigate the complexities of financial markets with greater confidence.
**Conclusion:**
The **Uptrick: Dynamic AMA RSI Indicator** offers a comprehensive and adaptable solution for traders across different styles and timeframes. By combining the strengths of adaptive moving averages with RSI confirmation, it delivers robust signals that help traders capitalize on market trends while minimizing the risk of false signals. This indicator is a powerful addition to any trader’s toolkit, enabling them to make informed decisions with greater precision and confidence. Whether you're a day trader, swing trader, or long-term investor, the **Uptrick** indicator can enhance your trading strategy and improve your market outcomes.
US Composite Leading Indicator (CLI)The US Composite Leading Indicator (CLI), normalized for the United States, closely mirrors the Conference Board "Leading Economic Index" (LEI). It offers unique insights into economic and financial dynamics.
The Composite Leading Indicator (CLI) is an economic tool designed to anticipate economic developments. It is created by aggregating and normalizing a wide range of economic and financial data from various sources.
The normalized data is then aggregated, and a composite indicator is calculated by taking a weighted average of individual indicators.
The CLI is used to provide early insights into the state of the economy and to anticipate future economic trends. It is particularly valuable for predicting economic downturns, including recessions.
The CLI is an essential tool for economists, governments, businesses, and investors seeking to understand economic trends and make informed decisions.
Key Features:
1. Early Warning: Just like its counterpart, the CLI indicator excels at offering early warnings about significant economic events, particularly economic crises. This makes it an indispensable asset for analysts and investors.
2. Recession Indicators: The moving average serves as an early warning system for potential economic recessions. When it crosses the indicator line from the bottom to the top while surpassing a predefined threshold (e.g., 101), it signals a potential crisis.
3. Market Impact: The CLI indicator provides valuable insights into the performance of financial markets, offering cues about indices such as the S&P 500, Nasdaq, Dow Jones, and more.
Why It Matters:
Understanding the US Composite Leading Indicator (CLI) indicator, normalized for the United States, is crucial for anticipating economic shifts and preparing for changes in financial markets. By analyzing a diverse array of economic factors, it provides a holistic view of economic well-being. Whether you're an investor or economist, this indicator can be an invaluable resource for staying informed about market trends and major economic developments.
Source:
www.data.oecd.org
[blackcat] L1 Visual Volatility IndicatorHey there! Let's get into the details about dynamic rate indicators, how they work, their importance, usage, and benefits in trading.
Dynamic rate indicators are essential in trading as they help traders assess the volatility and risk level of the market, so they can make the right trading strategies and risk management measures.
When it comes to the importance of dynamic rate indicators, they provide critical information about market volatility, which is super important for traders. Traders can use this information to understand the risk level of the market, determine market stability and instability, and adjust trading strategies based on volatility changes.
Now let's talk about the usage of dynamic rate indicators. They have different usage times for different trading strategies and market environments. Generally, when market volatility is low, traders can take advantage of the opportunity to do trend tracking or oscillating trades. When market volatility is high, traders can take a more conservative approach, such as using stop-loss orders or reducing position sizes.
Using dynamic rate indicators can bring several benefits. First, they can help traders evaluate the risk level of the market, so they can develop suitable risk management strategies. Traders can adjust stop-loss and take-profit levels based on changes in volatility to control risk. Second, dynamic rate indicators provide information about market trends and price fluctuations, helping traders make wiser trading decisions. Traders can determine entry and exit points based on the signals of dynamic rate indicators. Lastly, dynamic rate indicators play a significant role in option pricing. Implied volatility helps traders evaluate option prices and market expectations for future volatility, so they can carry out option trades or hedging operations.
In conclusion, dynamic rate indicators are essential for traders as they help assess market volatility and risk levels, develop suitable trading strategies and risk management measures, and increase trading success and profitability. Remember that different indicators are suitable for different types of markets, so it is essential to choose the right one for your specific trading needs.
This indicator is a powerful tool for traders who want to stay ahead of the market and make informed trading decisions. By analyzing trends in volatility, this indicator can provide valuable insights into market sentiment and help traders identify potential trading opportunities.
One of the key advantages of the L1 Visual Volatility Indicator is its ability to adapt to changing market conditions. The channel structure it constructs based on ATR characteristics provides a framework for tracking volatility that can be adjusted to different timeframes and asset classes. This allows traders to customize the indicator to their specific needs and trading style, making it a versatile tool for a wide range of trading strategies.
Another advantage of this indicator is its use of gradient colors to differentiate between Bullish and Bearish volatility. This provides a visual representation of market sentiment that can help traders quickly identify potential trading opportunities and make informed decisions. Additionally, the use of Fibonacci's long-term moving average to define the sideways consolidation area provides a reliable framework for identifying key levels of support and resistance, further enhancing the indicator's usefulness in trading.
In conclusion, the L1 Visual Volatility Indicator is a powerful tool for traders looking to stay ahead of the market and make informed trading decisions. Its ability to adapt to changing market conditions and use of gradient colors to differentiate between Bullish and Bearish volatility make it a versatile and effective tool for a wide range of trading strategies. By incorporating this indicator into their trading arsenal, traders can gain valuable insights into market sentiment and improve their chances of success in the markets.
Weighted Moving Average Indicator (WMAI) with Std DevThe updated Weighted Moving Average Indicator with Standard Deviation (WMAI_SD) now includes the central line, which is the weighted moving average, along with 3 lines above and 3 lines below the central line that represent different levels of standard deviation. This combination can be used to identify trends, potential entry and exit points, support and resistance levels, and to gauge the volatility of the asset. Here's how to use this updated indicator:
Identifying trends: The central line (Weighted Moving Average) can be used to identify trends. When the line is moving upwards, it signals a bullish trend, and when it's moving downwards, it signals a bearish trend. A flat central line suggests a sideways or consolidating market.
Potential entry and exit points: You can use the crossing of the price with the central line to identify potential entry and exit points for trades. When the price crosses above the central line, it might be considered a buy signal. Conversely, when the price crosses below the central line, it might be considered a sell signal. Keep in mind that the WMAI_SD is not foolproof and should be used in conjunction with other technical analysis tools and techniques to increase the chances of successful trades.
Support and resistance levels: The central line, along with the standard deviation lines, can act as dynamic support and resistance levels. When the price is above the central line, the line can act as support. Conversely, when the price is below the central line, it can act as resistance. The standard deviation lines can also serve as additional support and resistance levels, with the lines closer to the central line being less significant than the ones further away.
Gauging volatility: The distance between the standard deviation lines can give you an idea of the asset's volatility. When the distance between the lines is wide, it indicates higher volatility, while a narrower distance indicates lower volatility. An increase in volatility could signal a strong trend or a potential trend reversal, whereas low volatility might suggest a lack of conviction in the current trend.
Confirming signals from other indicators: You can use the WMAI_SD to confirm signals from other technical analysis tools. For instance, if you use a momentum oscillator like the Relative Strength Index (RSI) to identify overbought or oversold conditions, you can look for confluence with the WMAI_SD central line and standard deviation lines.
Pi Cycle Indicators Comparison IndicatorThere are now 3 Pi Cycle Indicators that I am aware of; the original, improved**, and bottom.
This indicator attempts to provide all three indicators in a dingle, easy to view script.
I coded this script to displace the moving averages above and below the price bars for easy viewing. This was accomplished by placing a scaling factor (/# or *#) at the end of the ta.sma or ta.ema functions.
A vertical arrow, purposely posing as a short vertical line, marks the crossing of the long and short MAs for each indicator. These are color coded to match their respective indicators and the long and short MAs are similarly color coded for easy differentiation.
The red colored MAs and arrows above the price line are the Improved Pi-Cycle Top Indicator.
The green colored MAs and arrows below the price line are the Original Pi-Cycle Top Indicator.
The blue colored MAs and arrows below the green lines and price line are the Pi-Cycle Bottom Indicator.
One last feature of the chart is the use of the location function to enable easy comparison of the crossings of each indicator to the indicator itself and to the price. This can be accomplished simply by moving the chart up and down.
**{I should note that while researching this I found that BitcoinMamo turns out to have beat me to the punch on the Improved Indicator Long.Short and Multiplier numbers. He should therefor get the credit for that}
Disclosure of 'MACD-Total' indicator (MACD-T)hello?
Traders, welcome.
If you "follow", you can always get new information quickly.
Please also click "Like".
Have a good day.
-------------------------------------
A trend indicator has been added to the previously published MACD-Price indicator.
The added MS-Signal indicator is an indicator for viewing the trend and the strength of the trend.
Trading with a trend line is not easy.
Therefore, various MA lines or slanted lines drawn on the chart are used to see the flow of the chart.
Therefore, it is not recommended to trade with the added MS-Signal indicator as support and resistance points.
A trade requires support and resistance points.
To mark support and resistance points, you need a point or section on the horizontal line.
Therefore, it is necessary to utilize the 'Buy/Sell' indicator corresponding to the previously disclosed MACD-Price indicator.
(1W chart)
The long horizontal point of the 'Buy/Sell' indicator serves as support and resistance.
It is possible to check in which section the trend reversal has changed by displaying the MS-Signal indicator.
(1D chart)
A move has emerged to show a reversal of the trend by breaking above the MS-Signal indicator.
Therefore, the MS-Signal indicator is about to change from a downtrend to an uptrend.
I numbered the horizontal line of the 'Buy/Sell' indicator.
The length is different in the order of No. 2 > No. 1 > No. 3.
Since horizontal line 2 is the longest, it indicates that support and resistance play the greatest role.
If you check the support at the first horizontal point, it can be interpreted that there is a high possibility of receiving resistance at the second horizontal point.
However, if you find support at the 2nd horizontal point, you can see that it will go up significantly with 3rd position.
Trading with indicators allows you to make quick choices and decisions.
However, more important than the use of indicators is your own trading strategy.
in other words,
- How much investment will you proceed with the purchase?
- How to proceed with installment purchases
- At what point will the Stop Loss be done?
- How long will the investment period be?
- Is it a long-term investment or a short-term investment?
As listed above, the most important trading strategy for trading should be established.
When conducting a trade, ignoring the above list and thinking about where to buy and where to sell is like sailing in the dark.
We disclose the indicators in the hope that it will become a faster and more objective indicator for trading with the trading strategy you have established.
thank you
------------------------------------------------------------ -----------------------------------------------------
LBR Paintbars [LazyBear]
Added coloring of LB bars above/below Keltner Channel (as suggested by user @20813 below in the comments).
Updated code: pastebin.com
See comments section below for a sample chart. Copy the code from the pastebin above and update your local copy (TV doesn't allow me to update an already published code -- yet!).
Added features:
- Switch ON/OFF KC
- Mark LB bars above/below KC
----------------------------------------------------------------------
The LBR PaintBars indicator changes the colour of the price bars based on the trend direction (derived from price & volatility bands). This is mostly used as a confirmation indicator.
For the Pine coders: I suggest trying stdev() in lieu of atr()...some wild combinations can be derived from this simple idea :)
Indicator supports the following options:
- Switching on/off volatility bands
- Switching on/off LBR colors (lime/maroon).
- Color non-LBR bars (blue).
Thanks @mseaworthy for pinging me with this idea.
Complete list of my indicators:
-----------------------------
docs.google.com
FREE INDICATOR: Laguerre RSIAbout:
Averages, and the way they are compared and calculated make up a large amount of the indicators out there, so the fun thing about new averages, is how they open up a whole new group of indicators.
Usage:
This is Laguerre RSI. You'll notice it acts a little different than your normal RSI, and it can be traded in different ways. It can be used as a switch, or to view bursts of momentum. Combine with your style and see if you notice anything. It might just be what you were looking for! Stay tuned for more scripts & ideas by following me on TradingView.
Grab the source code here: pastebin.com
Installation video by @ChrisMoody here : blog.tradingview.com
░░░░░░░░░░░░░░░ Feel free to follow me to keep up with my latest scripts! ░░░░░░░░░░░░░░░
░░░░░░░░░░░░ PLEASE THUMB UP OR STAR IF YOU LIKE THIS INDICATOR! ░░░░░░░░░░░░
I'd like as many people as possible to get it :)
BOCS Channel Scalper Indicator - Mean Reversion Alert System# BOCS Channel Scalper Indicator - Mean Reversion Alert System
## WHAT THIS INDICATOR DOES:
This is a mean reversion trading indicator that identifies consolidation channels through volatility analysis and generates alert signals when price enters entry zones near channel boundaries. **This indicator version is designed for manual trading with comprehensive alert functionality.** Unlike automated strategies, this tool sends notifications (via popup, email, SMS, or webhook) when trading opportunities occur, allowing you to manually review and execute trades. The system assumes price will revert to the channel mean, identifying scalp opportunities as price reaches extremes and preparing to bounce back toward center.
## INDICATOR VS STRATEGY - KEY DISTINCTION:
**This is an INDICATOR with alerts, not an automated strategy.** It does not execute trades automatically. Instead, it:
- Displays visual signals on your chart when entry conditions are met
- Sends customizable alerts to your device/email when opportunities arise
- Shows TP/SL levels for reference but does not place orders
- Requires you to manually enter and exit positions based on signals
- Works with all TradingView subscription levels (alerts included on all plans)
**For automated trading with backtesting**, use the strategy version. For manual control with notifications, use this indicator version.
## ALERT CAPABILITIES:
This indicator includes four distinct alert conditions that can be configured independently:
**1. New Channel Formation Alert**
- Triggers when a fresh BOCS channel is identified
- Message: "New BOCS channel formed - potential scalp setup ready"
- Use this to prepare for upcoming trading opportunities
**2. Long Scalp Entry Alert**
- Fires when price touches the long entry zone
- Message includes current price, calculated TP, and SL levels
- Notification example: "LONG scalp signal at 24731.75 | TP: 24743.2 | SL: 24716.5"
**3. Short Scalp Entry Alert**
- Fires when price touches the short entry zone
- Message includes current price, calculated TP, and SL levels
- Notification example: "SHORT scalp signal at 24747.50 | TP: 24735.0 | SL: 24762.75"
**4. Any Entry Signal Alert**
- Combined alert for both long and short entries
- Use this if you want a single alert stream for all opportunities
- Message: "BOCS Scalp Entry: at "
**Setting Up Alerts:**
1. Add indicator to chart and configure settings
2. Click the Alert (⏰) button in TradingView toolbar
3. Select "BOCS Channel Scalper" from condition dropdown
4. Choose desired alert type (Long, Short, Any, or Channel Formation)
5. Set "Once Per Bar Close" to avoid false signals during bar formation
6. Configure delivery method (popup, email, webhook for automation platforms)
7. Save alert - it will fire automatically when conditions are met
**Alert Message Placeholders:**
Alerts use TradingView's dynamic placeholder system:
- {{ticker}} = Symbol name (e.g., NQ1!)
- {{close}} = Current price at signal
- {{plot_1}} = Calculated take profit level
- {{plot_2}} = Calculated stop loss level
These placeholders populate automatically, creating detailed notification messages without manual configuration.
## KEY DIFFERENCE FROM ORIGINAL BOCS:
**This indicator is designed for traders seeking higher trade frequency.** The original BOCS indicator trades breakouts OUTSIDE channels, waiting for price to escape consolidation before entering. This scalper version trades mean reversion INSIDE channels, entering when price reaches channel extremes and betting on a bounce back to center. The result is significantly more trading opportunities:
- **Original BOCS**: 1-3 signals per channel (only on breakout)
- **Scalper Indicator**: 5-15+ signals per channel (every touch of entry zones)
- **Trade Style**: Mean reversion vs trend following
- **Hold Time**: Seconds to minutes vs minutes to hours
- **Best Markets**: Ranging/choppy conditions vs trending breakouts
This makes the indicator ideal for active day traders who want continuous alert opportunities within consolidation zones rather than waiting for breakout confirmation. However, increased signal frequency also means higher potential commission costs and requires disciplined trade selection when acting on alerts.
## TECHNICAL METHODOLOGY:
### Price Normalization Process:
The indicator normalizes price data to create consistent volatility measurements across different instruments and price levels. It calculates the highest high and lowest low over a user-defined lookback period (default 100 bars). Current close price is normalized using: (close - lowest_low) / (highest_high - lowest_low), producing values between 0 and 1 for standardized volatility analysis.
### Volatility Detection:
A 14-period standard deviation is applied to the normalized price series to measure price deviation from the mean. Higher standard deviation values indicate volatility expansion; lower values indicate consolidation. The indicator uses ta.highestbars() and ta.lowestbars() to identify when volatility peaks and troughs occur over the detection period (default 14 bars).
### Channel Formation Logic:
When volatility crosses from a high level to a low level (ta.crossover(upper, lower)), a consolidation phase begins. The indicator tracks the highest and lowest prices during this period, which become the channel boundaries. Minimum duration of 10+ bars is required to filter out brief volatility spikes. Channels are rendered as box objects with defined upper and lower boundaries, with colored zones indicating entry areas.
### Entry Signal Generation:
The indicator uses immediate touch-based entry logic. Entry zones are defined as a percentage from channel edges (default 20%):
- **Long Entry Zone**: Bottom 20% of channel (bottomBound + channelRange × 0.2)
- **Short Entry Zone**: Top 20% of channel (topBound - channelRange × 0.2)
Long signals trigger when candle low touches or enters the long entry zone. Short signals trigger when candle high touches or enters the short entry zone. Visual markers (arrows and labels) appear on chart, and configured alerts fire immediately.
### Cooldown Filter:
An optional cooldown period (measured in bars) prevents alert spam by enforcing minimum spacing between consecutive signals. If cooldown is set to 3 bars, no new long alert will fire until 3 bars after the previous long signal. Long and short cooldowns are tracked independently, allowing both directions to signal within the same period.
### ATR Volatility Filter:
The indicator includes a multi-timeframe ATR filter to avoid alerts during low-volatility conditions. Using request.security(), it fetches ATR values from a specified timeframe (e.g., 1-minute ATR while viewing 5-minute charts). The filter compares current ATR to a user-defined minimum threshold:
- If ATR ≥ threshold: Alerts enabled
- If ATR < threshold: No alerts fire
This prevents notifications during dead zones where mean reversion is unreliable due to insufficient price movement. The ATR status is displayed in the info table with visual confirmation (✓ or ✗).
### Take Profit Calculation:
Two TP methods are available:
**Fixed Points Mode**:
- Long TP = Entry + (TP_Ticks × syminfo.mintick)
- Short TP = Entry - (TP_Ticks × syminfo.mintick)
**Channel Percentage Mode**:
- Long TP = Entry + (ChannelRange × TP_Percent)
- Short TP = Entry - (ChannelRange × TP_Percent)
Default 50% targets the channel midline, a natural mean reversion target. These levels are displayed as visual lines with labels and included in alert messages for reference when manually placing orders.
### Stop Loss Placement:
Stop losses are calculated just outside the channel boundary by a user-defined tick offset:
- Long SL = ChannelBottom - (SL_Offset_Ticks × syminfo.mintick)
- Short SL = ChannelTop + (SL_Offset_Ticks × syminfo.mintick)
This logic assumes channel breaks invalidate the mean reversion thesis. SL levels are displayed on chart and included in alert notifications as suggested stop placement.
### Channel Breakout Management:
Channels are removed when price closes more than 10 ticks outside boundaries. This tolerance prevents premature channel deletion from minor breaks or wicks, allowing the mean reversion setup to persist through small boundary violations.
## INPUT PARAMETERS:
### Channel Settings:
- **Nested Channels**: Allow multiple overlapping channels vs single channel
- **Normalization Length**: Lookback for high/low calculation (1-500, default 100)
- **Box Detection Length**: Period for volatility detection (1-100, default 14)
### Scalping Settings:
- **Enable Long Scalps**: Toggle long alert generation on/off
- **Enable Short Scalps**: Toggle short alert generation on/off
- **Entry Zone % from Edge**: Size of entry zone (5-50%, default 20%)
- **SL Offset (Ticks)**: Distance beyond channel for stop (1+, default 5)
- **Cooldown Period (Bars)**: Minimum spacing between alerts (0 = no cooldown)
### ATR Filter:
- **Enable ATR Filter**: Toggle volatility filter on/off
- **ATR Timeframe**: Source timeframe for ATR (1, 5, 15, 60 min, etc.)
- **ATR Length**: Smoothing period (1-100, default 14)
- **Min ATR Value**: Threshold for alert enablement (0.1+, default 10.0)
### Take Profit Settings:
- **TP Method**: Choose Fixed Points or % of Channel
- **TP Fixed (Ticks)**: Static distance in ticks (1+, default 30)
- **TP % of Channel**: Dynamic target as channel percentage (10-100%, default 50%)
### Appearance:
- **Show Entry Zones**: Toggle zone labels on channels
- **Show Info Table**: Display real-time indicator status
- **Table Position**: Corner placement (Top Left/Right, Bottom Left/Right)
- **Long Color**: Customize long signal color (default: darker green for readability)
- **Short Color**: Customize short signal color (default: red)
- **TP/SL Colors**: Customize take profit and stop loss line colors
- **Line Length**: Visual length of TP/SL reference lines (5-200 bars)
## VISUAL INDICATORS:
- **Channel boxes** with semi-transparent fill showing consolidation zones
- **Colored entry zones** labeled "LONG ZONE ▲" and "SHORT ZONE ▼"
- **Entry signal arrows** below/above bars marking long/short alerts
- **TP/SL reference lines** with emoji labels (⊕ Entry, 🎯 TP, 🛑 SL)
- **Info table** showing channel status, last signal, entry/TP/SL prices, risk/reward ratio, and ATR filter status
- **Visual confirmation** when alerts fire via on-chart markers synchronized with notifications
## HOW TO USE:
### For 1-3 Minute Scalping with Alerts (NQ/ES):
- ATR Timeframe: "1" (1-minute)
- ATR Min Value: 10.0 (for NQ), adjust per instrument
- Entry Zone %: 20-25%
- TP Method: Fixed Points, 20-40 ticks
- SL Offset: 5-10 ticks
- Cooldown: 2-3 bars to reduce alert spam
- **Alert Setup**: Configure "Any Entry Signal" for combined long/short notifications
- **Execution**: When alert fires, verify chart visuals, then manually place limit order at entry zone with provided TP/SL levels
### For 5-15 Minute Day Trading with Alerts:
- ATR Timeframe: "5" or match chart
- ATR Min Value: Adjust to instrument (test 8-15 for NQ)
- Entry Zone %: 20-30%
- TP Method: % of Channel, 40-60%
- SL Offset: 5-10 ticks
- Cooldown: 3-5 bars
- **Alert Setup**: Configure separate "Long Scalp Entry" and "Short Scalp Entry" alerts if you trade directionally based on bias
- **Execution**: Review channel structure on alert, confirm ATR filter shows ✓, then enter manually
### For 30-60 Minute Swing Scalping with Alerts:
- ATR Timeframe: "15" or "30"
- ATR Min Value: Lower threshold for broader market
- Entry Zone %: 25-35%
- TP Method: % of Channel, 50-70%
- SL Offset: 10-15 ticks
- Cooldown: 5+ bars or disable
- **Alert Setup**: Use "New Channel Formation" to prepare for setups, then "Any Entry Signal" for execution alerts
- **Execution**: Larger timeframes allow more analysis time between alert and entry
### Webhook Integration for Semi-Automation:
- Configure alert webhook URL to connect with platforms like TradersPost, TradingView Paper Trading, or custom automation
- Alert message includes all necessary order parameters (direction, entry, TP, SL)
- Webhook receives structured data when signal fires
- External platform can auto-execute based on alert payload
- Still maintains manual oversight vs full strategy automation
## USAGE CONSIDERATIONS:
- **Manual Discipline Required**: Alerts provide opportunities but execution requires judgment. Not all alerts should be taken - consider market context, trend, and channel quality
- **Alert Timing**: Alerts fire on bar close by default. Ensure "Once Per Bar Close" is selected to avoid false signals during bar formation
- **Notification Delivery**: Mobile/email alerts may have 1-3 second delay. For immediate execution, use desktop popups or webhook automation
- **Cooldown Necessity**: Without cooldown, rapidly touching price action can generate excessive alerts. Start with 3-bar cooldown and adjust based on alert volume
- **ATR Filter Impact**: Enabling ATR filter dramatically reduces alert count but improves quality. Track filter status in info table to understand when you're receiving fewer alerts
- **Commission Awareness**: High alert frequency means high potential trade count. Calculate if your commission structure supports frequent scalping before acting on all alerts
## COMPATIBLE MARKETS:
Works on any instrument with price data including stock indices (NQ, ES, YM, RTY), individual stocks, forex pairs (EUR/USD, GBP/USD), cryptocurrency (BTC, ETH), and commodities. Volume-based features are not included in this indicator version. Multi-timeframe ATR requires higher-tier TradingView subscription for request.security() functionality on timeframes below chart timeframe.
## KNOWN LIMITATIONS:
- **Indicator does not execute trades** - alerts are informational only; you must manually place all orders
- **Alert delivery depends on TradingView infrastructure** - delays or failures possible during platform issues
- **No position tracking** - indicator doesn't know if you're in a trade; you must manage open positions independently
- **TP/SL levels are reference only** - you must manually set these on your broker platform; they are not live orders
- **Immediate touch entry can generate many alerts** in choppy zones without adequate cooldown
- **Channel deletion at 10-tick breaks** may be too aggressive or lenient depending on instrument tick size
- **ATR filter from lower timeframes** requires TradingView Premium/Pro+ for request.security()
- **Mean reversion logic fails** in strong breakout scenarios - alerts will fire but trades may hit stops
- **No partial closing capability** - full position management is manual; you determine scaling out
- **Alerts do not account for gaps** or overnight price changes; morning alerts may be stale
## RISK DISCLOSURE:
Trading involves substantial risk of loss. This indicator provides signals for educational and informational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Mean reversion strategies can experience extended drawdowns during trending markets. Alerts are not guaranteed to be profitable and should be combined with your own analysis. Stop losses may not fill at intended levels during extreme volatility or gaps. Never trade with capital you cannot afford to lose. Consider consulting a licensed financial advisor before making trading decisions. Always verify alerts against current market conditions before executing trades manually.
## ACKNOWLEDGMENT & CREDITS:
This indicator is built upon the channel detection methodology created by **AlgoAlpha** in the "Smart Money Breakout Channels" indicator. Full credit and appreciation to AlgoAlpha for pioneering the normalized volatility approach to identifying consolidation patterns. The core channel formation logic using normalized price standard deviation is AlgoAlpha's original contribution to the TradingView community.
Enhancements to the original concept include: mean reversion entry logic (vs breakout), immediate touch-based alert generation, comprehensive alert condition system with customizable notifications, multi-timeframe ATR volatility filtering, cooldown period for alert management, dual TP methods (fixed points vs channel percentage), visual TP/SL reference lines, and real-time status monitoring table. This indicator version is specifically designed for manual traders who prefer alert-based decision making over automated execution.
[blackcat] L1 Value Trend IndicatorOVERVIEW
The L1 Value Trend Indicator is a sophisticated technical analysis tool designed for TradingView users seeking advanced market trend identification and trading signals. This comprehensive indicator combines multiple analytical techniques to provide traders with a holistic view of market dynamics, helping identify potential entry and exit points through various signal mechanisms. 📈 It features a main Value Trend line along with a lagged version, golden cross and dead cross signals, and multiple technical indicators including RSI, Williams %R, Stochastic %K/D, and Relative Strength calculations. The indicator also includes reference levels for support and resistance analysis, making it a versatile tool for both short-term and long-term trading strategies. ✅
FEATURES
📈 Primary Value Trend Line: Calculates a smoothed value trend using a combination of SMA and custom smoothing techniques
🔍 Value Trend Lag: Implements a lagged version of the main trend line for cross-over analysis
🚀 Golden Cross & Dead Cross Signals: Identifies buy/sell opportunities when the main trend line crosses its lagged version
💸 Multi-Indicator Integration: Combines multiple technical analysis tools for comprehensive market view
📊 RSI Calculations: Includes 6-period, 7-period, and 13-period RSI calculations for momentum analysis
📈 Williams %R: Provides overbought/oversold conditions using the Williams %R formula
📉 Stochastic Oscillator: Implements both Stochastic %K and %D calculations for momentum confirmation
📋 Relative Strength: Calculates relative strength based on highest highs and current price
✅ Visual Labels: Displays BUY and SELL labels on chart when crossover conditions are met
📣 Alert Conditions: Provides automated alert conditions for golden cross and dead cross events
📌 Reference Levels: Plots entry (25) and exit (75) reference lines for support/resistance analysis
HOW TO USE
Copy the Script: Copy the complete Pine Script code from the original file
Open TradingView: Navigate to TradingView website or application
Access Pine Editor: Go to the Pine Script editor (usually found in the chart toolbar)
Paste Code: Paste the copied script into the editor
Save Script: Save the script with a descriptive name like " L1 Value Trend Indicator"
Select Chart: Choose the chart where you want to apply the indicator
Add Indicator: Apply the indicator to your chart
Configure Parameters: Adjust input parameters to customize behavior
Monitor Signals: Watch for golden cross (BUY) and dead cross (SELL) signals
Use Reference Levels: Monitor entry (25) and exit (75) lines for support/resistance levels
LIMITATIONS
⚠️ Potential Repainting: The script may repaint due to lookahead bias in some calculations
📉 Lookahead Bias: Some calculations may reference future values, potentially causing repainting issues
🔄 Parameter Sensitivity: Results may vary significantly with different parameter settings
📉 Computational Complexity: May impact chart performance with heavy calculations on large datasets
📊 Resource Usage: Requires significant processing power for multiple indicator calculations
🔄 Data Sensitivity: Results may be affected by data quality and market conditions
NOTES
📈 Signal Timing: Cross-over signals may lag behind actual price movements
📉 Parameter Optimization: Optimal parameters may vary by market conditions and asset type
📋 Market Conditions: Performance may vary significantly across different market environments
📈 Multi-Indicator: Combine signals with other technical indicators for confirmation
📉 Timeframe Analysis: Use multiple timeframes for enhanced signal accuracy
📋 Volume Analysis: Incorporate volume data for additional confirmation
📈 Strategy Integration: Consider using this indicator as part of a broader trading strategy
📉 Risk Management: Use signals as part of a comprehensive risk management approach
📋 Backtesting: Test parameter combinations with historical data before live trading
THANKS
🙏 Original Creator: blackcat1402 creates the L1 Value Trend Indicator
📚 Community Contributions: Recognition to TradingView community for continuous improvements and contributions
📈 Collaborative Development: Appreciation for collaborative efforts in enhancing technical analysis tools
📉 TradingView Community: Special thanks to TradingView community members for their ongoing support and feedback
📋 Educational Resources: Recognition of educational resources that helped in understanding technical analysis principles
Enhanced Volume Trend Indicator with BB SqueezeEnhanced Volume Trend Indicator with BB Squeeze: Comprehensive Explanation
The visualization system allows traders to quickly scan multiple securities to identify high-probability setups without detailed analysis of each chart. The progression from squeeze to breakout, supported by volume trend confirmation, offers a systematic approach to identifying trading opportunities.
The script combines multiple technical analysis approaches into a comprehensive dashboard that helps traders make informed decisions by identifying high-probability setups while filtering out noise through its sophisticated confirmation requirements. It combines multiple technical analysis approaches into an integrated visual system that helps traders identify potential trading opportunities while filtering out false signals.
Core Features
1. Volume Analysis Dashboard
The indicator displays various volume-related metrics in customizable tables:
AVOL (After Hours + Pre-Market Volume): Shows extended hours volume as a percentage of the 21-day average volume with color coding for buying/selling pressure. Green indicates buying pressure and red indicates selling pressure.
Volume Metrics: Includes regular volume (VOL), dollar volume ($VOL), relative volume compared to 21-day average (RVOL), and relative volume compared to 90-day average (RVOL90D).
Pre-Market Data: Optional display of pre-market volume (PVOL), pre-market dollar volume (P$VOL), pre-market relative volume (PRVOL), and pre-market price change percentage (PCHG%).
2. Enhanced Volume Trend (VTR) Analysis
The Volume Trend indicator uses adaptive analysis to evaluate buying and selling pressure, combining multiple factors:
MACD (Moving Average Convergence Divergence) components
Volume-to-SMA (Simple Moving Average) ratio
Price direction and market conditions
Volume change rates and momentum
EMA (Exponential Moving Average) alignment and crossovers
Volatility filtering
VTR Visual Indicators
The VTR score ranges from 0-100, with values above 50 indicating bullish conditions and below 50 indicating bearish conditions. This is visually represented by colored circles:
"●" (Filled Circle):
Green: Strong bullish trend (VTR ≥ 80)
Red: Strong bearish trend (VTR ≤ 20)
"◯" (Hollow Circle):
Green: Moderate bullish trend (VTR 65-79)
Red: Moderate bearish trend (VTR 21-35)
"·" (Small Dot):
Green: Weak bullish trend (VTR 55-64)
Red: Weak bearish trend (VTR 36-45)
"○" (Medium Hollow Circle): Neutral conditions (VTR 46-54), shown in gray
In "Both" display mode, the VTR shows both the numerical score (0-100) alongside the appropriate circle symbol.
Enhanced VTR Settings
The Enhanced Volume Trend component offers several advanced customization options:
Adaptive Volume Analysis (volTrendAdaptive):
When enabled, dynamically adjusts volume thresholds based on recent market volatility
Higher volatility periods require proportionally higher volume to generate significant signals
Helps prevent false signals during highly volatile markets
Keep enabled for most trading conditions, especially in volatile markets
Speed of Change Weight (volTrendSpeedWeight, range 0-1):
Controls emphasis on volume acceleration/deceleration rather than absolute levels
Higher values (0.7-1.0): More responsive to new volume trends, better for momentum trading
Lower values (0.2-0.5): Less responsive, better for trend following
Helps identify early volume trends before they fully develop
Momentum Period (volTrendMomentumPeriod, range 2-10):
Defines lookback period for volume change rate calculations
Lower values (2-3): More responsive to recent changes, better for short timeframes
Higher values (7-10): Smoother, better for daily/weekly charts
Directly affects how quickly the indicator responds to new volume patterns
Volatility Filter (volTrendVolatilityFilter):
Adjusts significance of volume by factoring in current price volatility
High volume during high volatility receives less weight
High volume during low volatility receives more weight
Helps distinguish between genuine volume-driven moves and volatility-driven moves
EMA Alignment Weight (volTrendEmaWeight, range 0-1):
Controls importance of EMA alignments in final VTR calculation
Analyzes multiple EMA relationships (5, 10, 21 period)
Higher values (0.7-1.0): Greater emphasis on trend structure
Lower values (0.2-0.5): More focus on pure volume patterns
Display Mode (volTrendDisplayMode):
"Value": Shows only numerical score (0-100)
"Strength": Shows only symbolic representation
"Both": Shows numerical score and symbol together
3. Bollinger Band Squeeze Detection (SQZ)
The BB Squeeze indicator identifies periods of low volatility when Bollinger Bands contract inside Keltner Channels, often preceding significant price movements.
SQZ Visual Indicators
"●" (Filled Circle): Strong squeeze - high probability setup for an impending breakout
Green: Strong squeeze with bullish bias (likely upward breakout)
Red: Strong squeeze with bearish bias (likely downward breakout)
Orange: Strong squeeze with unclear direction
"◯" (Hollow Circle): Moderate squeeze - medium probability setup
Green: With bullish EMA alignment
Red: With bearish EMA alignment
Orange: Without clear directional bias
"-" (Dash): Gray dash indicates no squeeze condition (normal volatility)
The script identifies squeeze conditions through multiple methods:
Bollinger Bands contracting inside Keltner Channels
BB width falling to bottom 20% of recent range (BB width percentile)
Very narrow Keltner Channel (less than 5% of basis price)
Tracking squeeze duration in consecutive bars
Different squeeze strengths are detected:
Strong Squeeze: BB inside KC with tight BB width and narrow KC
Moderate Squeeze: BB inside KC with either tight BB width or narrow KC
No Squeeze: Normal market conditions
4. Breakout Detection System
The script includes two breakout indicators working in sequence:
4.1 Pre-Breakout (PBK) Indicator
Detects potential upcoming breakouts by analyzing multiple factors:
Squeeze conditions lasting 2-3 bars or more
Significant price ranges
Strong volume confirmation
EMA/MACD crossovers
Consistent price direction
PBK Visual Indicators
"●" (Filled Circle): Detected pre-breakout condition
Green: Likely upward breakout (bullish)
Red: Likely downward breakout (bearish)
Orange: Direction not yet clear, but breakout likely
"-" (Dash): Gray dash indicates no pre-breakout condition
The PBK uses sophisticated conditions to reduce false signals including minimum squeeze length, significant price movement, and technical confirmations.
4.2 Breakout (BK) Indicator
Confirms actual breakouts in progress by identifying:
End of squeeze or strong expansion of Bollinger Bands
Volume expansion
Price moving outside Bollinger Bands
EMA crossovers with volume confirmation
MACD crossovers with significant price range
BK Visual Indicators
"●" (Filled Circle): Confirmed breakout in progress
Green: Upward breakout (bullish)
Red: Downward breakout (bearish)
Orange: Unusual breakout pattern without clear direction
"◆" (Diamond): Special breakout conditions (meets some but not all criteria)
"-" (Dash): Gray dash indicates no breakout detected
The BK indicator uses advanced filters for confirmation:
Requires consecutive breakout signals to reduce false positives
Strong volume confirmation requirements (40% above average)
Significant price movement thresholds
Consistency checks between price action and indicators
5. Market Metrics and Analysis
Price Change Percentage (CHG%)
Displays the current percentage change relative to the previous day's close, color-coded green for positive changes and red for negative changes.
Average Daily Range (ADR%)
Calculates the average daily percentage range over a specified period (default 20 days), helping traders gauge volatility and set appropriate price targets.
Average True Range (ATR)
Shows the Average True Range value, a volatility indicator developed by J. Welles Wilder that measures market volatility by decomposing the entire range of an asset price for that period.
Relative Strength Index (RSI)
Displays the standard 14-period RSI, a momentum oscillator that measures the speed and change of price movements on a scale from 0 to 100.
6. External Market Indicators
QQQ Change
Shows the percentage change in the Invesco QQQ Trust (tracking the Nasdaq-100 Index), useful for understanding broader tech market trends.
UVIX Change
Displays the percentage change in UVIX, a volatility index, providing insight into market fear and potential hedging activity.
BTC-USD
Shows the current Bitcoin price from Coinbase, useful for traders monitoring crypto correlation with equities.
Market Breadth (BRD)
Calculates the percentage difference between ATHI.US and ATLO.US (high vs. low securities), indicating overall market direction and strength.
7. Session Analysis and Volume Direction
Session Detection
The script accurately identifies different market sessions:
Pre-market: 4:00 AM to 9:30 AM
Regular market: 9:30 AM to 4:00 PM
After-hours: 4:00 PM to 8:00 PM
Closed: Outside trading hours
This detection works on any timeframe through careful calculation of current time in seconds.
Buy/Sell Volume Direction
The script analyzes buying and selling pressure by:
Counting up volume when close > open
Counting down volume when close < open
Tracking accumulated volume within the day
Calculating intraday pressure (up volume minus down volume)
Enhanced AVOL Calculation
The improved AVOL calculation works in all timeframes by:
Estimating typical pre-market and after-hours volume percentages
Combining yesterday's after-hours with today's pre-market volume
Calculating this as a percentage of the 21-day average volume
Determining buying/selling pressure by analyzing after-hours and pre-market price changes
Color-coding results: green for buying pressure, red for selling pressure
This calculation is particularly valuable because it works consistently across any timeframe.
Customization Options
Display Settings
The dashboard has two customizable tables: Volume Table and Metrics Table, with positions selectable as bottom_left or bottom_right.
All metrics can be individually toggled on/off:
Pre-market data (PVOL, P$VOL, PRVOL, PCHG%)
Volume data (AVOL, RVOL Day, RVOL 90D, Volume, SEED_YASHALGO_NSE_BREADTH:VOLUME )
Price metrics (ADR%, ATR, RSI, Price Change%)
Market indicators (QQQ, UVIX, Breadth, BTC-USD)
Analysis indicators (Volume Trend, BB Squeeze, Pre-Breakout, Breakout)
These toggle options allow traders to customize the dashboard to show only the metrics they find most valuable for their trading style.
Table and Text Customization
The dashboard's appearance can be customized:
Table background color via tableBgColor
Text color (White or Black) via textColorOption
The indicator uses smart formatting for volume and price values, automatically adding appropriate suffixes (K, M, B) for readability.
MACD Configuration for VTR
The Volume Trend calculation incorporates MACD with customizable parameters:
Fast Length: Controls the period for the fast EMA (default 3)
Slow Length: Controls the period for the slow EMA (default 9)
Signal Length: Controls the period for the signal line EMA (default 5)
MACD Weight: Controls how much influence MACD has on the volume trend score (default 0.3)
These settings allow traders to fine-tune how momentum is factored into the volume trend analysis.
Bollinger Bands and Keltner Channel Settings
The Bollinger Bands and Keltner Channels used for squeeze detection have preset (hidden) parameters:
BB Length: 20 periods
BB Multiplier: 2.0 standard deviations
Keltner Length: 20 periods
Keltner Multiplier: 1.5 ATR
These settings follow standard practice for squeeze detection while maintaining simplicity in the user interface.
Practical Trading Applications
Complete Trading Strategies
1. Squeeze Breakout Strategy
This strategy combines multiple components of the indicator:
Wait for a strong squeeze (SQZ showing ●)
Look for pre-breakout confirmation (PBK showing ● in green or red)
Enter when breakout is confirmed (BK showing ● in same direction)
Use VTR to confirm volume supports the move (VTR ≥ 65 for bullish or ≤ 35 for bearish)
Set profit targets based on ADR (Average Daily Range)
Exit when VTR begins to weaken or changes direction
2. Volume Divergence Strategy
This strategy focuses on the volume trend relative to price:
Identify when price makes a new high but VTR fails to confirm (divergence)
Look for VTR to show weakening trend (● changing to ◯ or ·)
Prepare for potential reversal when SQZ begins to form
Enter counter-trend position when PBK confirms reversal direction
Use external indicators (QQQ, BTC, Breadth) to confirm broader market support
3. Pre-Market Edge Strategy
This strategy leverages pre-market data:
Monitor AVOL for unusual pre-market activity (significantly above 100%)
Check pre-market price change direction (PCHG%)
Enter position at market open if VTR confirms direction
Use SQZ to determine if volatility is likely to expand
Exit based on RVOL declining or price reaching +/- ADR for the day
Market Context Integration
The indicator provides valuable context for trading decisions:
QQQ change shows tech market direction
BTC price shows crypto market correlation
UVIX change indicates volatility expectations
Breadth measurement shows market internals
This context helps traders avoid fighting the broader market and align trades with overall market direction.
Timeframe Optimization
The indicator is designed to work across different timeframes:
For day trading: Focus on AVOL, VTR, PBK/BK, and use shorter momentum periods
For swing trading: Focus on SQZ duration, VTR strength, and broader market indicators
For position trading: Focus on larger VTR trends and use EMA alignment weight
Advanced Analytical Components
Enhanced Volume Trend Score Calculation
The VTR score calculation is sophisticated, with the base score starting at 50 and adjusting for:
Price direction (up/down)
Volume relative to average (high/normal/low)
Volume acceleration/deceleration
Market conditions (bull/bear)
Additional factors are then applied, including:
MACD influence weighted by strength and direction
Volume change rate influence (speed)
Price/volume divergence effects
EMA alignment scores
Volatility adjustments
Breakout strength factors
Price action confirmations
The final score is clamped between 0-100, with values above 50 indicating bullish conditions and below 50 indicating bearish conditions.
Anti-False Signal Filters
The indicator employs multiple techniques to reduce false signals:
Requiring significant price range (minimum percentage movement)
Demanding strong volume confirmation (significantly above average)
Checking for consistent direction across multiple indicators
Requiring prior bar consistency (consecutive bars moving in same direction)
Counting consecutive signals to filter out noise
These filters help eliminate noise and focus on high-probability setups.
MACD Enhancement and Integration
The indicator enhances standard MACD analysis:
Calculating MACD relative strength compared to recent history
Normalizing MACD slope relative to volatility
Detecting MACD acceleration for stronger signals
Integrating MACD crossovers with other confirmation factors
EMA Analysis System
The indicator uses a comprehensive EMA analysis system:
Calculating multiple EMAs (5, 10, 21 periods)
Detecting golden cross (10 EMA crosses above 21 EMA)
Detecting death cross (10 EMA crosses below 21 EMA)
Assessing price position relative to EMAs
Measuring EMA separation percentage
Recent Enhancements and Evolution
Version 5.2 includes several improvements:
Enhanced AVOL to show buying/selling direction through color coding
Improved VTR with adaptive analysis based on market conditions
AVOL display now works in all timeframes through sophisticated estimation
Removed animal symbols and streamlined code with bright colors for better visibility
Improved anti-false signal filters throughout the system
Optimizing Indicator Settings
For Different Market Types
Range-Bound Markets:
Lower EMA Alignment Weight (0.2-0.4)
Higher Speed of Change Weight (0.8-1.0)
Focus on SQZ and PBK signals for breakout potential
Trending Markets:
Higher EMA Alignment Weight (0.7-1.0)
Moderate Speed of Change Weight (0.4-0.6)
Focus on VTR strength and BK confirmations
Volatile Markets:
Enable Volatility Filter
Enable Adaptive Volume Analysis
Lower Momentum Period (2-3)
Focus on strong volume confirmation (VTR ≥ 80 or ≤ 20)
For Different Asset Classes
Equities:
Standard settings work well
Pay attention to AVOL for gap potential
Monitor QQQ correlation
Futures:
Consider higher Volume/RVOL weight
Reduce MACD weight slightly
Pay close attention to SQZ duration
Crypto:
Higher volatility thresholds may be needed
Monitor BTC price for correlation
Focus on stronger confirmation signals
Integrated Visual System for Trading Decisions
The colored circle indicators create an intuitive visual system for quick market assessment:
Progression Sequence: SQZ (Squeeze) → PBK (Pre-Breakout) → BK (Breakout)
This sequence often occurs in order, with the squeeze leading to pre-breakout conditions, followed by an actual breakout.
VTR (Volume Trend): Provides context about the volume supporting these movements.
Color Coding: Green for bullish conditions, red for bearish conditions, and orange/gray for neutral or undefined conditions.
Divergence Indicator Multi [TradingFinder] MACD AO RSI DIV Chart🔵 Introduction
🟣 What is Divergence in Financial Markets?
Divergence in technical analysis happens when the price of a stock moves in a direction opposite to certain indicators. This is a crucial concept in financial markets as it can signal either a trend reversal or a continuation of the current correction in the trend. Understanding divergence helps traders and analysts make more informed decisions.
🟣 Positive Regular Divergence (RD+)
A positive regular divergence occurs at the end of a downtrend, where two price lows form. This divergence appears when the price chart shows a new low, but the indicator does not follow, signaling potential buying opportunities.
Positive divergence indicates increased buying pressure and reduced selling pressure, making it a useful signal for forecasting price increases.
🟣 Negative Regular Divergence (RD-)
A negative regular divergence is seen during an uptrend when two price highs form. The price chart records a new high, but the indicator does not reflect this change, suggesting that a market downturn is likely.
This type of divergence shows strong selling pressure and weaker buying activity, which can help identify selling opportunities.
Both positive and negative divergences are powerful tools for identifying potential trend reversals and key support and resistance levels. For example, when an indicator trends upward while the price moves downward, this creates divergence, warning traders to reconsider their investment strategy.
🟣 Different Types of Divergence in Trading
1. Regular Divergence :
o Positive Regular Divergence (RD+)
o Negative Regular Divergence (RD-)
2. Hidden Divergence :
o Positive Hidden Divergence (HD+)
o Negative Hidden Divergence (HD-)
3.Time Divergence.
Note : This guide focuses specifically on Regular Divergence.
🟣 What is Regular Divergence?
Regular Divergence, often referred to as convergence, occurs when price action and indicators show conflicting patterns, usually signaling the end of a trend. Detecting regular divergence helps traders anticipate potential trend reversals or the formation of reversal patterns.
🔵 How to Use
To optimize the detection of divergence, you can adjust the Fractal Period to specify the length of time for identifying divergence patterns.
Additionally, with the Divergence Detection Method, you can select oscillators like the MACD, RSI, or AO to base divergence detection on.
Divergence in MACD :
MACD divergence occurs when the price chart forms an opposite pattern compared to the MACD line, indicating a potential price reversal.
Divergence in RSI :
In a downtrend, if the price chart forms two consecutive lows with the second lower than the first, but the RSI shows two lows with the second higher, this indicates positive regular divergence, which is a buy signal.
On the other hand, during an uptrend, if the price forms two highs with the second higher than the first, but the RSI shows the second high lower, this points to negative regular divergence, indicating a sell signal.
Divergence in AO (Awesome Oscillator) :
The AO indicator calculates histograms using the difference between 5-period and 34-period simple moving averages. It compares peaks and troughs of these histograms with price movements, detecting divergence and plotting lines and arrows to signal divergence.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
VIX, ATR, and Volatility Indicatorhere what the indictor do !
The "VIX, ATR, and Volatility Indicator" combines the Volatility Index (VIX), Average True Range (ATR), and moving averages to provide insights into market volatility.
VIX (Volatility Index):
The VIX measures the expected volatility in the market over the next 30 days. A higher VIX value indicates increased market volatility, while a lower value suggests lower volatility.
ATR (Average True Range):
The ATR is a technical indicator that measures the average range between high and low prices over a specified period. It provides a sense of the market's volatility by considering price movements. Higher ATR values indicate greater volatility, while lower values indicate lower volatility.
Moving Averages:
The indicator calculates both an Exponential Moving Average (EMA) and Simple Moving Average (SMA) with a specific period (e.g., 50).
Moving averages smooth out price data to identify trends and potential areas of support or resistance.
Volatility Detection:
By comparing the current closing price to the EMA and SMA, the indicator determines if there is high volatility.
If the current closing price is higher than either the EMA or SMA, it indicates potential high volatility.
Visualization:
The VIX and ATR are typically plotted on the chart, providing a visual representation of market volatility and price range.
Additionally, markers or labels may be used to highlight periods of high volatility when the current price exceeds the moving averages.
what are the VIX and ATR
Volatility Index (VIX):
Monitor the VIX value from financial platforms or market data providers. A higher VIX value indicates increased market volatility, suggesting potential trading opportunities. Conversely, a lower VIX value indicates lower volatility, which may influence your trading strategy.
Average True Range (ATR):
Calculate the ATR manually or use charting platforms that provide ATR as an indicator.
Plot the ATR on your trading chart to visualize the range of price movements.
Determine suitable entry and exit points based on ATR values. For example, higher ATR values may indicate larger potential price swings, while lower ATR values may suggest a more stable market.
how it work
Fetching VIX Data:
The request.security function is used to fetch the daily VIX data from the "CBOE:VIX" symbol. It retrieves the closing price of the VIX for each day.
Calculating ATR:
The ta.atr function calculates the Average True Range (ATR) with a period of 14. ATR measures the average range between the high and low prices over the specified period, providing an indication of market volatility.
Calculating Moving Averages:
Two types of moving averages are calculated: Exponential Moving Average (EMA) and Simple Moving Average (SMA). Both moving averages are calculated using a period of 50, but you can adjust the period as needed.
The ta.ema function calculates the Exponential Moving Average, which places greater weight on recent prices.
The ta.sma function calculates the Simple Moving Average, which gives equal weight to all prices in the period.
Identifying High Volatility:
The indicator determines if there is high volatility by comparing the current closing price to both the EMA and SMA.
If the current closing price is higher than either the EMA or SMA, the isHighVolatility variable is set to true, indicating potential high volatility.
Plotting the Indicators:
The VIX and ATR are plotted using the plot function, assigning colors and line widths for visual differentiation.
The plotshape function is used to plot markers below the bars to indicate highly volatile periods. The isHighVolatility variable determines when the markers appear.
Fibonacci Levels on Any Indicator [By MUQWISHI]▋ INTRODUCTION :
A “Fibonacci Levels on Any Indicator” can be applied to any indicator to draw Fibonacci levels based on provided conditions of two price points to produce a sequence of horizontal line levels starting from 0% to 100% in addition to extension levels. The 0% level is measured as the start of retracement, while the 100% level is the beginning of the extension levels. This tool was developed to be easy to add to any indicator, and it could be valuable to some traders in terms of managing trades by setting targets and reducing risk in the trend direction.
_______________________
▋ USAGE:
➤ NEEDS TO IDENTIFY 4 ELEMENTS:
1. Starting Point. What’re the conditions / When will the drawing of the Fibonacci levels begin?
2. Ending Point. What’re the conditions / When will the drawing of the Fibonacci levels end?
3. High Point. What is the price for a 100% Fibonacci level (0% for the downside)?
4. Low Point. What is the price for a 0% Fibonacci level (100% for the downside)?
➤ STARTING & ENDING POINTS CONDITIONS:
Need to specify the condition when the drawing of Fibonacci levels starts and ends, and the indicator shows different prepared conditions.
New Phase: Import a value (plot) from an existing indicator, where its status changes from NaN to a real number.
Crosses Above/Below: Import a value(1) (plot) from an existing indicator, where it crosses above/below value(2).
Reversal Up/Down: Import a value(1) (plot) from an existing indicator, where it rises/decreases than the previous value(1).
First/Last Bar: Useful to draw stationary Fibonacci levels.
➤ UPPER & LOWER PIVOTS (0% & 100%):
Need to specify the two price points representing 0% & 100% Fibonacci levels to expose the sequence of Fibonacci lines.
Upper Pivot. By default, the ATR Upper Band. It’s possible to import a custom value from an existing indicator.
Lower Pivot. By default, the ATR Lower Band. It’s possible to import a custom value from an existing indicator.
➤ FIBONACCI STYLING OPTIONS:
Ability to customize line & label style, color, reverse, and hide/show levels.
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▋ IMPLEMENTATION:
Here are some examples of implementing the indicator.
Note: All presented examples below are for demonstration purposes, and they're not trading suggestions.
＃ Example 1: (Reversal Up/Down)
We want to implement Fibonacci levels on the Hull MA by mohamed982 . Our requirements are as follows:
Fibonacci levels start when the Hull MA reverses up.
Fibonacci levels end when the Hull MA reverses down.
Upper Pivot is the ATR Upper Band.
Lower Pivot is the ATR Lower Band.
After adding the required indicator (Hull MA), here’re the implementation and results
＃ Example 2: (Crosses Above/Below)
We want to implement Fibonacci Level on the Squeeze Momentum by LazyBear . Our requirements are as follows:
Fibonacci levels start when the Squeeze Momentum histogram crosses above 0.
Fibonacci levels end when the Squeeze Momentum histogram crosses below 0.
Upper Pivot is the Bollinger Upper Band.
Lower Pivot is the Bollinger Lower Band.
After adding the required indicators (Squeeze Momentum & Bollinger Band), here’re the implementation and results
＃ Example 3: (Crosses Above/Below)
We want to implement Fibonacci Level on the Crossing Moving Averages. Our requirements are as follows:
Fibonacci levels start when the 20-EMA crosses above 100-MA.
Fibonacci levels end when the 20-EMA crosses below 100-MA.
Upper Pivot is the ATR Upper Band.
Lower Pivot is the ATR Lower Band.
After adding the required indicators (20-EMA & 100-MA), here’re the implementation and results
＃ Example 4: (New Phase: When the previous value is NaN, and the current value is a real number.)
We want to implement Fibonacci Level on the Supertrend. Our requirements are as follows:
Fibonacci levels start when an up-Supertrend (green) line shows up.
Fibonacci levels end when a down-Supertrend (red) line shows up.
Upper Pivot is the down-Supertrend.
Lower Pivot is the up-Supertrend.
After adding the required indicator (Supertrend), here’re the implementation and results
＃ Example 5: (First/Last Bar)
We want to implement Fibonacci Level between two points, 330 & 300. Our requirements are as follows:
Fibonacci levels start at first bar on the chart.
Fibonacci levels end at last bar on the chart.
Upper Pivot is 330.
Lower Pivot is 300.
Here’re the implementation and results.
To customize the number of bars back (like 50 bars)
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▋ Final Comments:
The “Fibonacci Levels on Any Indicator” is made to apply on other indicators for planning Fibonacci Levels.
It can be implemented in different ways, along with presented examples.
This indicator does not work with plots that were developed by drawing classes.
Please let me know if you have any questions.
Thank you.
HYE Trend Hunter [Indicator]*** İndikatörün Türkçe ve İngilizce açıklaması aşağıya eklenmiştir.
HYE Trend Hunter
In this indicator, two of the most basic data (price and volume) necessary for detecting trends as early as possible and entering the trade on time are used. In this context, the approaches of some classical and new generation indicators using price and volume have been taken into account.
The indicator is prepared to generate buy signals only. The following steps were followed to generate the buy and exit signals.
1-) First of all, the two most basic data of the indicator, “slow leading line” and “fast leading line” need to be calculated. For this, we use the formula of the “senkou span A” line of the indicator known as the Ichimoku Cloud. We also need to calculate lines known as tenkan sen and kijun sen in ichimoku because they are used in the calculation of this formula.
The high and low values of the candles are taken into account when calculating the Tenkansen, Kijunsen and Senkou Span A lines in the Ichimoku cloud. In this indicator, the highest and lowest values of the periodic VWAP are taken into account when calculating the "slow leading line" and "fast leading line". (The periodic vwap formula was coded and made available by @neolao on tradingviev). Also, in the ichimoku cloud, while the Senkou Span A line is plotted 26 periods into the future, we consider the values of the fast and slow leading lines in the last candle in this indicator.
ORIGINAL ICHIMOKU SPAN A FORMULA
Tenkansen = (Highest high of the last 9 candles + Lowest low of the last 9 candles) / 2
Kijunsen = (Highest high of the last 26 candles + Lowest low of the last 26 candles) / 2
Senkou Span A = Tenkansen + Kijunsen / 2
HYE TREND HUNTER SPAN A FORMULA*
Tenkansen = (Highest VWAP of the last 9 candles + Lowest VWAP of the last 9 candles) / 2
Kijunsen = (Highest VWAP of the last 26 candles + Lowest VWAP of the last 26 candles) / 2
Senkou Span A = Tenkansen + Kijunsen / 2
* We use the original ichimoku values 9 and 26 for the slow line, and 5 and 13 for the fast line. These settings can be changed from the indicator settings.
2-) At this stage, we have 2 lines that we obtained by using the formula of the ichimoku cloud, one of the most classical trend indicators, and by including the volume-weighted average price.
a-) Fast Leading Line (5-13)
b-) Slow Leading Line (9-26)
For the calculation we will do soon, we get a new value by taking the average of these two lines. Using this value, which is the average of the fast and slow leading lines, we plot the Bollinger Bands indicator, which is known as one of the most classic volatility indicators of technical analysis. Thus, we are trying to understand whether there is a volatility change in the market, which may mean the presence of a trend start. We will use this data in the calculation of buy-sell signals.
In the classical Bollinger Bands calculation, the standard deviation is calculated by applying a multiplier at the rate determined by the user (2 is used in the original settings) to the moving average calculated with the “closing price”, and this value is added or subtracted from the moving average and upper band and lower band lines are drawn.
In the HYE Trend Hunter indicator, instead of the moving average calculated with the closing price in the Bollinger Band calculation, we consider the average of the fast and slow leading lines calculated in the 1st step and draw the Bollinger upper and lower bands accordingly. We use the values of 2 and 20 as the standard deviation and period, as in the original settings. These settings can also be changed from the indicator settings.
3-) At this stage, we have fast and slow leading lines trying to understand the trend direction using VWAP, and Bollinger lower and upper bands calculated by the average of these lines.
In this step, we will use another tool that will help us understand whether the invested market (forex, crypto, stocks) is gaining momentum in volume. The Time Segmented Volume indicator was created by the Worden Brothers Inc. and coded by @liw0 and @vitelot on tradingview. The TSV indicator segments the price and volume of an investment instrument according to certain time periods and makes calculations on comparing these price and volume data to reveal the buying and selling periods.
To trade in the buy direction on the HYE Trend Hunter indicator, we look for the TSV indicator to be above 0 and above its exponential moving average value. TSV period and exponential moving average period settings (13 and 7) can also be changed in the indicator settings.
BUY SIGNAL
1-) Fast Leading Line value should be higher than the Fast Leading Line value in the previous candle.
2-) Slow Leading Line value should be higher than the Slow Leading Line value in the previous candle.
3-) Candle Closing value must be higher than the Upper Bollinger Band.
4-) TSV value must be greater than 0.
5-) TSV value must be greater than TSVEMA value.
EXIT SIGNAL
1-) Fast Leading Line value should be lower than the Fast Leading Line value in the previous candle.
2-) Slow Leading Line value should be lower than the Slow Leading Line value in the previous candle.
TIPS AND WARNINGS
1-) The standard settings of the indicator work better in higher timeframes (4-hour, daily, etc.). For lower timeframes, you should change the indicator settings and find the best value for yourself.
2-) All lines (fast and slow leading lines and Bollinger bands) except TSV are displayed on the indicator. For a simpler view, you can hide these lines in the indicator settings.
3-) You can see the color changes of the fast and slow leading lines as well as you can specify a single color for these lines in the Indicator settings.
4-) Alarms have been added for Buy and Exit. When setting up the alarm, you should set it to be triggered at "every bar close". Otherwise it may repaint. There is no repaint after the candle closes.
5-) It is an indicator for educational and experimental purposes. It cannot be considered as investment advice. You should be careful and make your own risk assessment when opening real market trades using this indicator.
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HYE Trend Avcısı
Bu indikatörde, trendlerin olabildiğince erken tespit edilebilmesi ve zamanında işleme girilebilmesi için gerekli olan en temel iki veriden (fiyat ve hacim) yararlanılmaktadır. Bu kapsamda, fiyat ve hacim kullanan bazı klasik ve yeni nesil indikatörlerin yaklaşımları dikkate alınmıştır.
İndikatör yalnızca alış yönlü sinyaller üretecek şekilde hazırlanmıştır. Alış ve çıkış sinyallerinin üretilmesi için aşağıdaki adımlar izlenmiştir.
1-) Öncelikle, indikatörün en temel iki verisi olan “yavaş öncü çizgi” ve “hızlı öncü çizgi” hesaplamasının yapılması gerekiyor. Bunun için de Ichimoku Bulutu olarak bilinen indikatörün “senkou span A” çizgisinin formülünü kullanıyoruz. Bu formülün hesaplamasında kullanılmaları nedeniyle ichimoku’da tenkan sen ve kijun sen olarak bilinen çizgileri de hesaplamamız gerekiyor.
Ichimoku bulutunda Tenkansen, Kijunsen ve Senkou Span A çizgileri hesaplanırken mumların yüksek ve düşük değerleri dikkate alınıyor. Bu indikatörde ise “yavaş öncü çizgi” ve “hızlı öncü çizgi” hesaplanırken periyodik VWAP’ın en yüksek ve en düşük değerleri dikkate alınıyor. (Periyodik vwap formülü, tradingviev’de @neolao tarafından kodlanmış ve kullanıma açılmış). Ayrıca, ichimoku bulutunda Senkou Span A çizgisi geleceğe yönelik çizilirken (26 mum ileriye dönük) biz bu indikatörde öncü çizgilerin son mumdaki değerlerini dikkate alıyoruz.
ORJİNAL ICHIMOKU SPAN A FORMÜLÜ
Tenkansen = (Son 9 mumun en yüksek değeri + Son 9 mumun en düşük değeri) / 2
Kijunsen = (Son 26 mumun en yüksek değeri + Son 26 mumun en düşük değeri) / 2
Senkou Span A = Tenkansen + Kijunsen / 2
HYE TREND HUNTER SPAN A FORMÜLÜ*
Tenkansen = (Son 9 mumun en yüksek VWAP değeri + Son 9 mumun en düşük VWAP değeri) / 2
Kijunsen = (Son 26 mumun en yüksek VWAP değeri + Son 26 mumun en düşük VWAP değeri) / 2
Senkou Span A = Tenkansen + Kijunsen / 2
* Yavaş çizgi için orijinal ichimoku değerleri olan 9 ve 26’yı kullanırken, hızlı çizgi için 5 ve 13’ü kullanıyoruz. Bu ayarlar, indikatör ayarlarından değiştirilebiliyor.
2-) Bu aşamada, elimizde en klasik trend indikatörlerinden birisi olan ichimoku bulutunun formülünden faydalanarak, işin içinde hacim ağırlıklı ortalama fiyatı da sokmak suretiyle elde ettiğimiz 2 çizgimiz var.
a-) Hızlı Öncü Çizgi (5-13)
b-) Yavaş Öncü Çizgi (9-26)
Birazdan yapacağımız hesaplama için bu iki çizginin de ortalamasını alarak yeni bir değer elde ediyoruz. Hızlı ve yavaş öncü çizgilerin ortalaması olan bu değeri kullanarak, teknik analizin en klasik volatilite indikatörlerinden birisi olarak bilinen Bollinger Bantları indikatörünü çizdiriyoruz. Böylelikle piyasada bir trend başlangıcının varlığı anlamına gelebilecek volatilite değişikliği var mı yok mu anlamaya çalışıyoruz. Bu veriyi al-sat sinyallerinin hesaplamasında kullanacağız.
Klasik Bollinger Bantları hesaplamasında, “kapanış fiyatıyla” hesaplanan hareketli ortalamaya, kullanıcı olarak belirlenen oranda (orijinal ayarlarında 2 kullanılır) bir çarpan uygulanarak standart sapma hesaplanıyor ve bu değer hareketli ortalamaya eklenip çıkartılarak üst bant ve alt bant çizgileri çiziliyor.
HYE Trend Avcısı indikatöründe, Bollinger Bandı hesaplamasında kapanış fiyatıyla hesaplanan hareketli ortalama yerine, 1. adımda hesapladığımız hızlı ve yavaş öncü çizgilerin ortalamasını dikkate alıyoruz ve buna göre bollinger üst ve alt bantlarını çizdiriyoruz. Standart sapma ve periyot olarak yine orijinal ayarlarında olduğu gibi 2 ve 20 değerlerini kullanıyoruz. Bu ayarlar da indikatör ayarlarından değiştirilebiliyor.
3-) Bu aşamada, elimizde VWAP kullanarak trend yönünü anlamaya çalışan hızlı ve yavaş öncü çizgilerimiz ile bu çizgilerin ortalaması ile hesaplanan bollinger alt ve üst bantlarımız var.
Bu adımda, yatırım yapılan piyasanın (forex, kripto, hisse senedi) hacimsel olarak ivme kazanıp kazanmadığını anlamamıza yarayacak bir araç daha kullanacağız. Time Segmented Volume indikatörü, Worden Kardeşler şirketi tarafından oluşturulmuş ve tradingview’de @liw0 ve @vitelot tarafından kodlanarak kullanıma açılmış. TSV indikatörü, bir yatırım aracının fiyatını ve hacmini belirli zaman aralıklarına göre bölümlere ayırarak, bu fiyat ve hacim verilerini, alış ve satış dönemlerini ortaya çıkarmak için karşılaştırmak üzerine hesaplamalar yapar.
HYE Trend Avcısı indikatöründe alış yönünde işlem yapmak için, TSV indikatörünün 0’ın üzerinde olmasını ve kendi üstel hareketli ortalama değerinin üzerinde olmasını arıyoruz. TSV periyodu ve üstel hareketli ortalama periyodu ayarları da (13 ve 7) indikatör ayarlarından değiştirilebiliyor.
ALIŞ SİNYALİ
1-) Hızlı Öncü Çizgi değeri bir önceki mumdaki Hızlı Öncü Çizgi değerinden yüksek olmalı.
2-) Yavaş Öncü Çizgi değeri bir önceki mumdaki Yavaş Öncü Çizgi değerinden yüksek olmalı.
3-) Kapanış Değeri, Üst Bollinger Bandı değerinden yüksek olmalı.
4-) TSV değeri 0’dan büyük olmalı.
5-) TSV değeri TSVEMA değerinden büyük olmalı.
ÇIKIŞ SİNYALİ
1-) Hızlı Öncü Çizgi değeri bir önceki mumdaki Hızlı Öncü Çizgi değerinden düşük olmalı.
2-) Yavaş Öncü Çizgi değeri bir önceki mumdaki Yavaş Öncü Çizgi değerinden düşük olmalı.
İPUÇLARI VE UYARILAR
1-) İndikatörün standart ayarları, yüksek zaman dilimlerinde (4 saatlik, günlük vs.) daha iyi çalışıyor. Düşük zaman dilimleri için indikatör ayarlarını değiştirmeli ve kendiniz için en iyi değeri bulmalısınız.
2-) İndikatörde tüm çizgiler (hızlı ve yavaş öncü çizgiler ile bollinger bantları) -TSV dışında- açık olarak gelmektedir. Daha sade bir görüntü için bu çizgilerin görünürlüğünü indikatör ayarlarından gizleyebilirsiniz.
3-) Hızlı ve yavaş öncü çizgilerin renk değişimlerini görebileceğiniz gibi bu çizgiler için tek bir renk olarak da İndikatör ayarlarında belirleme yapabilirsiniz.
4-) Alış ve Çıkış için alarmlar eklenmiştir. Alarm kurulumu yaparken “Her çubuk kapanışında” tetiklenecek şekilde ayarlama yapmalısınız. Aksi takdirde repaint yapabilir. Mum kapanışından sonra repaint söz konusu değildir.
5-) Eğitim ve deneysel amaçlı bir indikatördür. Yatırım tavsiyesi olarak değerlendirilemez. Bu indikatörü kullanarak gerçek piyasa işlem açarken dikkatli olmalı ve kendi risk değerlendirmenizi yapmalısınız.
[blackcat] L2 Ehlers Adaptive Jon Andersen R-Squared IndicatorLevel: 2
Background
@pips_v1 has proposed an interesting idea that is it possible to code an "Adaptive Jon Andersen R-Squared Indicator" where the length is determined by DCPeriod as calculated in Ehlers Sine Wave Indicator? I agree with him and starting to construct this indicator. After a study, I found "(blackcat) L2 Ehlers Autocorrelation Periodogram" script could be reused for this purpose because Ehlers Autocorrelation Periodogram is an ideal candidate to calculate the dominant cycle. On the other hand, there are two inputs for R-Squared indicator:
Length - number of bars to calculate moment correlation coefficient R
AvgLen - number of bars to calculate average R-square
I used Ehlers Autocorrelation Periodogram to produced a dynamic value of "Length" of R-Squared indicator and make it adaptive.
Function
One tool available in forecasting the trendiness of the breakout is the coefficient of determination (R-squared), a statistical measurement. The R-squared indicates linear strength between the security's price (the Y - axis) and time (the X - axis). The R-squared is the percentage of squared error that the linear regression can eliminate if it were used as the predictor instead of the mean value. If the R-squared were 0.99, then the linear regression would eliminate 99% of the error for prediction versus predicting closing prices using a simple moving average.
When the R-squared is at an extreme low, indicating that the mean is a better predictor than regression, it can only increase, indicating that the regression is becoming a better predictor than the mean. The opposite is true for extreme high values of the R-squared.
To make this indicator adaptive, the dominant cycle is extracted from the spectral estimate in the next block of code using a center-of-gravity ( CG ) algorithm. The CG algorithm measures the average center of two-dimensional objects. The algorithm computes the average period at which the powers are centered. That is the dominant cycle. The dominant cycle is a value that varies with time. The spectrum values vary between 0 and 1 after being normalized. These values are converted to colors. When the spectrum is greater than 0.5, the colors combine red and yellow, with yellow being the result when spectrum = 1 and red being the result when the spectrum = 0.5. When the spectrum is less than 0.5, the red saturation is decreased, with the result the color is black when spectrum = 0.
Construction of the autocorrelation periodogram starts with the autocorrelation function using the minimum three bars of averaging. The cyclic information is extracted using a discrete Fourier transform (DFT) of the autocorrelation results. This approach has at least four distinct advantages over other spectral estimation techniques. These are:
1. Rapid response. The spectral estimates start to form within a half-cycle period of their initiation.
2. Relative cyclic power as a function of time is estimated. The autocorrelation at all cycle periods can be low if there are no cycles present, for example, during a trend. Previous works treated the maximum cycle amplitude at each time bar equally.
3. The autocorrelation is constrained to be between minus one and plus one regardless of the period of the measured cycle period. This obviates the need to compensate for Spectral Dilation of the cycle amplitude as a function of the cycle period.
4. The resolution of the cyclic measurement is inherently high and is independent of any windowing function of the price data.
Key Signal
DC --> Ehlers dominant cycle.
AvgSqrR --> R-squared output of the indicator.
Remarks
This is a Level 2 free and open source indicator.
Feedbacks are appreciated.
Lancelot Band - ATR Reversal+Trending IndicatorThis is an indicator I created recently, with the mind of spotting where price might reverse and where the price is trending. You can see this as the primary indicator for your system, however, it is recommended you use this in conjunction with other confirmation indicators.
This script focus solely on ATR or Average True Range.
This indicator is the combination of the baseline from the Ichimoku cloud and the concept of the Keltner channel.
Baseline period = 14
ATR period = 14
ATR Mult = 1.5
For reversal
Long when price crossover Lower band & Stop loss at xLower band
Sell when price crossunder Upper band & Stop loss at xUpper band
For Trend Following
Long when price crossover xUpper band and Stop loss at Upper band
Short when price crossunder xLower band and Stop loss at Upper band
Again, you will need other indicators to help you to succeed in this system. This indicator will not generate the best exit for your position but will generate a good entry signal when you use it with both volume indicator and exit indicator.
Works well on BTCUSD XBTUSD, as well as other major liquid Pair.
Feel free to follow me on Twitter @Lancelot_Auger for more free Alpha.
Please acknowledge my effort by like and follow.
And lastly,
Save Hong Kong, the revolution of our times.
