JSONWebhooksLibrary "JSONWebhooks"
TODO: add library description here
method buildWebhookJson(msg, constants)
Builds the final JSON payload from a webhookMessage type.
Namespace types: webhookMessage
Parameters:
msg (webhookMessage) : (webhookMessage) A prepared webhookMessage.
constants (CONSTANTS)
Returns: A JSON Payload.
method buildTakeProfitJson(msg)
Builds the takeProfit JSON message to be used in a webhook message.
Namespace types: takeProfitMessage
Parameters:
msg (takeProfitMessage) : (takeProfitMessage)
Returns: A JSON takeProfit payload.
method buildStopLossJson(msg, constants)
Builds the stopLoss JSON message to be used in a webhook message.
Namespace types: stopLossMessage
Parameters:
msg (stopLossMessage) : (stopLossMessage)
constants (CONSTANTS)
Returns: A JSON stopLoss payload.
CONSTANTS
Constants for payload values.
Fields:
ACTION_BUY (series string)
ACTION_SELL (series string)
ACTION_EXIT (series string)
ACTION_CANCEL (series string)
ACTION_ADD (series string)
SENTIMENT_BULLISH (series string)
SENTIMENT_BEARISH (series string)
SENTIMENT_LONG (series string)
SENTIMENT_SHORT (series string)
SENTIMENT_FLAT (series string)
STOP_LOSS_TYPE_STOP (series string)
STOP_LOSS_TYPE_STOP_LIMIT (series string)
STOP_LOSS_TYPE_TRAILING_STOP (series string)
webhookMessage
Final webhook message.
Fields:
ticker (series string)
action (series string)
sentiment (series string)
price (series float)
quantity (series float)
takeProfit (series string)
stopLoss (series float)
takeProfitMessage
Take profit message.
Fields:
limitPrice (series float)
percent (series float)
amount (series float)
stopLossMessage
Stop loss message.
Fields:
type (series string)
percent (series float)
amount (series float)
stopPrice (series float)
limitPrice (series float)
trailPrice (series float)
trailPercent (series float)
스크립트에서 "sentiment"에 대해 찾기
TradersPost WebhookMessage Library - Automatically Build JSONLibrary "WebhookMessageLibrary"
The webhook message library provides several functions for building JSON payloads
method buildWebhookJson(msg, constants)
Builds the final JSON payload from a webhookMessage type.
Namespace types: webhookMessage
Parameters:
msg (webhookMessage) : (webhookMessage) A prepared webhookMessage.
constants (CONSTANTS)
Returns: A JSON Payload.
method buildTakeProfitJson(msg)
Builds the takeProfit JSON message to be used in a webhook message.
Namespace types: takeProfitMessage
Parameters:
msg (takeProfitMessage) : (takeProfitMessage)
Returns: A JSON takeProfit payload.
method buildStopLossJson(msg, constants)
Builds the stopLoss JSON message to be used in a webhook message.
Namespace types: stopLossMessage
Parameters:
msg (stopLossMessage) : (stopLossMessage)
constants (CONSTANTS)
Returns: A JSON stopLoss payload.
CONSTANTS
Constants for payload values.
Fields:
ACTION_BUY (series string)
ACTION_SELL (series string)
ACTION_EXIT (series string)
ACTION_CANCEL (series string)
ACTION_ADD (series string)
SENTIMENT_BULLISH (series string)
SENTIMENT_BEARISH (series string)
SENTIMENT_LONG (series string)
SENTIMENT_SHORT (series string)
SENTIMENT_FLAT (series string)
STOP_LOSS_TYPE_STOP (series string)
STOP_LOSS_TYPE_STOP_LIMIT (series string)
STOP_LOSS_TYPE_TRAILING_STOP (series string)
webhookMessage
Final webhook message.
Fields:
ticker (series string)
action (series string)
sentiment (series string)
price (series float)
quantity (series int)
takeProfit (series string)
stopLoss (series string)
takeProfitMessage
Take profit message.
Fields:
limitPrice (series float)
percent (series float)
amount (series float)
stopLossMessage
Stop loss message.
Fields:
type (series string)
percent (series float)
amount (series float)
stopPrice (series float)
limitPrice (series float)
trailPrice (series float)
trailPercent (series float)
VITAMIN: Volume Insight Trend Analyzer - Multilayered INdicator)Meet VITAMIN, an indicator created mainly to function as a confirmation volume indicator to integrate into strategies as a signal filter, but it can also be used as a general-purpose indicator to enhance market analysis through volume trend insights.
The name was choses to help with recall, with VITAMIN short for "Volume Insight Trend Analyzer - Multilayered INdicator".
The indicator is grounded in the net volume calculation, using TradingView's built-in Net Volume indicator as a starting point, and taking as a series of simple Moving Averages based on the Net Volume data.
Core Features:
Multilayered Analysis: VITAMIN layers multiple moving averages on top of net volume—volume adjusted for price movement direction—to filter market noise and reveal clearer volume trends.
Foundation in Net Volume: The starting point is net volume, which combines volume magnitude with the direction of price changes, offering a baseline for momentum analysis.
Visual Trend Indicators: The indicator uses green and red shading between its moving average layers and a reference zero line to visually denote bullish (green) and bearish (red) volume trends, simplifying the interpretation of market sentiment.
Utility of VITAMIN:
Volume plays a crucial role in market analysis, but interpreting volume directly can be complex due to inherent market noise. Net Volume in particular features a great deal of noise, as a sequence of spikes and dips from bar to bar. My purpose with this indicator was to separate the signal from the noise. VITAMIN's multilayered moving averages provide a smoother, more interpretable trend line that distinguishes significant market moves from short-term fluctuations.
Applications:
Confirming Trends: VITAMIN can help validate price trends. A price uptrend paired with a bullish volume trend indicated by VITAMIN may reinforce the strength of the movement.
Identifying Divergences: Observing discrepancies between price trends and VITAMIN's volume trends can highlight potential reversals or continuations.
Assessing Market Sentiment: The overall trend and colour shading within VITAMIN aims to provide insight into market sentiment.
VITAMIN is designed for simplicity and effectiveness, aiming to provide deeper insights into volume trends, supporting more informed decisions.
Like any indicator featuring moving averages, and averages of those averages, there is a built-in lag to this indicator, but this is the trade-off for removing noise from the signal. Adjust the user inputs to suit your time frame.
RSI Shadow by TartigradiaHave you ever wondered how much the RSI can vary during an open session? How much wicks can make the RSI overshoots before it retraces for the close?
This indicator plots the RSI shadow, which is the area between the highest and lowest RSI values attained during each open session, from the high/low wick price candle (ie, not the open value).
Technically, we calculate the RSI as usual for all past bars, except for current bar for which we use the high and low values to calculate the RSI Shadow bounds. The invisible PineScript loop then repeats this process for each bar.
In practice, the RSI Shadow provides 2 different informations:
1. This allows to visually represent the variability that historically happened for each bar, which help in better understanding the context at the time and may help predict future similar patterns.
2. The closer the RSI is to one bound, high or low, the more bullish or bearish respectively the price action is. Intuitively, when RSI is close to the high shadow bound, it means that price action is so bullish it often closes in proximity to the highest value attained during the open session, hence very bullish sentiment. And inversely for low and bearish sentiment. To ease visualization of these sentiments, a background highlighting is provided.
The indicator works under all timeframes, but it appears to provide a very reliable information with longer timeframe. The background highlighting showing the bullish/bearish sentiment based on the RSI Shadow appears to indicate crypto market cycles relatively reliably, with 2-3 consecutive bars with the same background color indicating a strong trend.
False positives can be reduced by looking at both the background color and the RSI direction, if both are congruent (ie, both bullish), then the trend indication is good, otherwise the trend indicated by the background color should be disregarded. An option was added to uncolor background if incongruent with RSI's direction.
There is also a "shadow margin" setting that allows to further reduce the number of false positives, at the expense of reduced sensitivity (a margin of 3 seems to eliminate most false positives).
Note: if you need a more complete RSI indicator with overbought/oversold signals, check out RSI+ (alt), which includes all RSI related indicators I make (such as RSI Shadow):
[TehThomas] - Displacement CandlesOverview:
This PineScript is designed to detect and visualize significant price movements, called displacements, on a trading chart. It's particularly useful for traders who want to identify potential trend changes or strong market sentiment quickly.
How the Script Works
User Input:
The script allows users to set a custom threshold for displacement detection and choose colors for bullish and bearish movements.
Displacement Detection Function:
isDisplacement(series, threshold) =>
percentage_change = math.abs(series - series ) / series * 100
percentage_change > threshold
This function calculates the percentage change between the current and previous price.
If the change exceeds the set threshold, it's considered a displacement.
Bullish and Bearish Detection:
bullish_displacement = isDisplacement(close, threshold) and close > close
bearish_displacement = isDisplacement(close, threshold) and close < close
Identifies whether the displacement is bullish (price increase) or bearish (price decrease).
Candle Coloring:
barcolor(bullish_displacement ? bullish_color : bearish_displacement ? bearish_color : na)
Changes the color of candles based on the detected displacement type.
Usefulness and Applications:
Trend Identification: Helps in quickly spotting potential trend changes or continuations.
Volatility Analysis: Provides a visual representation of market volatility.
Entry and Exit Signals: Can be used to identify potential entry or exit points for trades.
Market Sentiment: Offers insights into the strength of bullish or bearish sentiment.
Customizable Sensitivity: The adjustable threshold allows traders to fine-tune the indicator based on the asset's typical volatility.
Visual Clarity: By changing candle colors, it provides a clear, at-a-glance view of significant price movements.
Complementary Tool: Can be used alongside other technical indicators for confirmation of signals.
Multiple Timeframe Analysis: Applicable across different timeframes to suit various trading styles (day trading, swing trading, etc.).
Educational Purpose: Helps new traders understand and visualize significant price movements in the market.
Backtesting: Can be incorporated into strategy backtests to assess its effectiveness in different market conditions.
This script is particularly handy for traders who want to cut through market noise and focus on significant price movements. It's versatile enough to be used across different trading strategies and can be a valuable addition to a trader's technical analysis toolkit.
It's a very easy script and not alot to mention. If you see any improvements please let me know.
Volume Comparison with Buyer/Seller PressureTHIS indicator is well-structured and provides a comprehensive way to analyze volume alongside buyer and seller pressure. This indicator helps traders analyze volume dynamics in the stock or cryptocurrency market while simultaneously assessing buyer and seller pressure. Its use case revolves around identifying strong buying or selling activity, neutral conditions, and volume trends over different time periods. Below is a breakdown of how to use this indicator:
This Pine Script indicator helps traders analyze volume dynamics in the stock or cryptocurrency market while simultaneously assessing buyer and seller pressure. Its use case revolves around identifying strong buying or selling activity, neutral conditions, and volume trends over different time periods. Below is a breakdown of how to use this indicator:
Key Features and Use Case
Volume-Based Insights:
Displays daily volume and compares it to the 3-day, 5-day, 10-day, and 20-day moving averages of volume. Helps traders identify days with unusual volume spikes relative to historical averages, signaling potential reversals or breakouts.
Buyer and Seller Pressure:
Measures buyer pressure: how much the closing price dominates the trading range of the day.
Measures seller pressure: how much the opening price dominates the trading range of the day.
Highlights areas where buying or selling pressure is particularly strong (≥ 0.75).
Background Signals:
Green Background: Strong buyer pressure (indicative of potential upward momentum).
Red Background: Strong seller pressure (indicative of potential downward momentum).
Gray Background: Neutral market conditions (neither buying nor selling dominance).
Alerts:
Alerts traders when:
Strong buying signals are detected.
Strong selling signals are detected.
The market is neutral, with neither buyers nor sellers in control.
Decision-Making Aid:
Combines volume analysis with price action (buyer/seller pressure) to help traders identify:
Potential breakout opportunities.
Reversal points.
Neutral zones where a trader might avoid trading due to indecision in the market.
How to Use It in Trading:------->
Add the Indicator:
Apply this Indicator to your Trading View chart to start visualizing the buyer/seller pressure and volume averages.
Interpret Volume Trends:
Look for days when daily volume significantly exceeds the 3-day, 5-day, 10-day, or 20-day average.
These could indicate:
A breakout when aligned with strong buyer pressure.
A sell-off when aligned with strong seller pressure.
React to Background Colors:
* Green Background (Strong Buyer Pressure):
Suggests buyers are dominating the market, and upward momentum is likely.
Use this signal to consider buying opportunities, especially if volume is above average.
* Red Background (Strong Seller Pressure):
Indicates sellers are in control, and prices might fall.
Use this signal to consider selling or shorting opportunities.
* Gray Background (Neutral Market):
Reflects indecision; avoid entering trades during these periods unless other signals support a strategy.
Volume Confirmation:
Combine volume analysis with buyer/seller pressure to confirm trends.
Example: A high daily volume with strong buyer pressure signals a high-probability uptrend.
Set Alerts:
Enable alerts to receive real-time notifications when the market generates strong buy/sell signals or enters a neutral zone.
Who Can Benefit:
* Day Traders: Quickly assess intraday market dynamics and volume trends.
* Swing Traders: Identify breakout opportunities or reversal points based on strong buyer/seller pressure.
* Volume Analysts: Compare historical volume averages to current conditions for deeper insights.
Limitations:
Does not guarantee success—should be combined with other technical indicators or strategies.
In low-volume markets, signals may produce false positives or unreliable results.
Assumes traders have basic knowledge of price action and volume analysis.
By integrating this indicator into your strategy, you gain a powerful tool to analyze buyer/seller dominance alongside volume trends, improving your market timing and trade execution.
The Buyer and Seller Pressure components in this indicator provide crucial insights into the market's sentiment and momentum by analyzing the price action relative to the trading volume. Here's how they are used:
1. Buyer Pressure:
Formula:
Buyer Pressure = (Close − Open) / (High − Low )
Interpretation:
* A high buyer pressure (≥ 0.75) indicates strong bullish sentiment, where the price closes much higher than it opened, and the range (high-low) is sufficiently wide.
* It identifies periods of aggressive buying, often signaling potential bullish trends or confirming upward momentum.
2. Seller Pressure:
Formula:
Seller Pressure = (Close − Open ) / (High -Low )
Interpretation:
*A high seller pressure (≥ 0.75) suggests strong bearish sentiment, where the price closes much lower than it opened, within a wide range.
*It helps identify periods of aggressive selling, signaling potential bearish trends or downward momentum.
Purpose in the Indicator:
1. Market Sentiment Analysis:
* Buyer Pressure and Seller Pressure allow traders to gauge market sentiment—whether buyers or sellers dominate a particular time frame.
* This helps in identifying trend reversals or confirmations.
2. Decision-Making Framework:
* The indicator uses thresholds (default 0.75) to classify the market into:
* Strong Buy Signal: When buyer pressure is dominant.
* Strong Sell Signal: When seller pressure is dominant.
* Neutral Signal: When neither buyer nor seller pressure dominates.
*This classification provides a straightforward decision-making tool for traders.
Risk Management:
*By identifying periods of strong buying or selling, traders can avoid entering trades in highly volatile or one-sided markets, which helps reduce risk.
Volume Confirmation:
*Integrating volume data with buyer/seller pressure helps confirm trends. For example:
*High buyer pressure accompanied by higher-than-average volume strengthens the bullish signal.
*Similarly, high seller pressure with higher-than-average volume confirms bearish signals.
Trade Timing:
*The indicator highlights conditions of potential entry (strong buy) or exit (strong sell), allowing traders to time their trades better based on real-time market activity.
Use Case:
*Example:
*Suppose the indicator shows Buyer Pressure = 0.85 with daily volume above the 3-day average. This combination suggests strong bullish activity with momentum, signaling a buy opportunity.
*Conversely, if Seller Pressure = 0.80 with volume above the 5-day average, it signals strong bearish momentum, ideal for selling or shorting.
This indicator combines buyer/seller pressure with volume dynamics, making it valuable for short-term and intraday traders looking for precise market entries and exits.
The background color in this indicator plays an important visual role in helping traders quickly identify the market sentiment based on buyer and seller pressure. It provides a dynamic, color-coded background that changes depending on the strength of the market's buying or selling activity.
Here's how it works:
Background Color Logic:
1. Green Background (Strong Buy Signal):
*Condition: The background turns green when buyer pressure is greater than or equal to 0.75 (strong buying pressure).
*Interpretation: A green background indicates that there is significant bullish sentiment in the market, with strong buying activity. Traders can interpret this as an environment conducive to buying or holding long positions.
*Visual Effect: This helps to quickly spot bullish market conditions, reinforcing potential entry signals for buyers.
2.Red Background (Strong Sell Signal):
*Condition: The background turns red when seller pressure is greater than or equal to 0.75 (strong selling pressure).
*Interpretation: A red background indicates that the market is dominated by selling, showing strong bearish sentiment. Traders can consider this as a signal to sell or short the asset.
*Visual Effect: The red background highlights moments when the market is heavily selling, prompting traders to either exit long positions or take short positions.
Gray Background (Neutral/Indecision Zone):
Condition: The background turns gray when neither buyer nor seller pressure exceeds 0.75. This means the market is neutral, with no dominant bullish or bearish sentiment.
Interpretation: A gray background suggests market indecision or balance between buyers and sellers. It can indicate periods of consolidation or sideways movement where no strong trend is forming.
Visual Effect: The gray background helps traders avoid entering trades when the market lacks a clear direction or when the sentiment is neutral, reducing risk during indecisive times.
Practical Use:
Instant Visual Confirmation:
*Traders can use the background color as an instant confirmation of the market’s sentiment. For instance, if the background turns green, traders might feel more confident in making a long (buy) trade.
*If the background turns red, it serves as a strong visual cue to short or exit a long position.
Helps with Trade Timing:
*The background color can be used in conjunction with other indicators and volume data to time entries and exits more effectively. For example:
*A green background with strong volume indicates a strong trend that could justify a buy.
*A red background with a significant volume surge signals strong selling pressure, which could prompt a sell.
Simplifies Market Analysis:
*For traders who prefer visual cues over complex analysis, the background color simplifies market conditions. Instead of focusing on individual numbers or values, the color-coded background gives them a quick, intuitive view of the market sentiment.
Summary:
* Green background = Strong buying pressure (bullish sentiment)
* Red background = Strong selling pressure (bearish sentiment)
* Gray background = Neutral market (indecision or balance between buyers and sellers)
This background color functionality helps traders stay aware of the prevailing market sentiment at a glance, providing an intuitive way to guide trading decisions.
Multi-VWAP System🚀 Multi-VWAP System — Anchored VWAP & Deviation Bands
Overview
The Multi-VWAP System provides traders with a professional-grade approach to anchored VWAP analysis. Inspired by Brian Shannon's pioneering work on Anchored VWAP, this indicator automatically calculates and plots:
Current Session VWAP
Previous Session VWAP (also known as "2-Day VWAP")
High-of-Day (HOD) Anchored VWAP
Each VWAP can also display optional Standard Deviation Bands to highlight statistically significant deviations from the volume-weighted average price.
🔍 Why Anchored VWAP Matters
Volume Weighted Average Price (VWAP) is among the most critical institutional indicators, as it represents the average price paid for a stock adjusted by trading volume. This makes VWAP crucial for identifying fair value and significant areas of institutional activity.
Institutions utilize VWAP extensively to guide their execution algorithms. For instance, if price dips below a 2-day anchored VWAP (anchored to the previous session's open), many institutions interpret this as a discounted entry, potentially triggering large-scale buy programs. Conversely, sustained movement above VWAP signals strong buying pressure and bullish sentiment.
📌 Why Multiple Anchors?
Traders commonly anchor VWAPs at critical reference points:
Current Session VWAP:
Essential for day traders as a reference for intraday sentiment. Price action above this line generally indicates bullish sentiment, while price below signals bearish sentiment.
Previous Session (2-Day) VWAP:
Heavily used by institutions and swing traders, it provides insight into multi-session sentiment. Institutions commonly activate buy or sell programs based on whether price is trading at a premium or discount relative to this VWAP.
High-of-Day (HOD) VWAP:
Frequently used by momentum traders, this anchor captures sentiment after the most recent intraday high. Price above the HOD VWAP suggests sustained bullish momentum, while price below might signal weakening momentum.
🌟 Standard Deviation Bands
Each anchored VWAP in this indicator includes optional Standard Deviation Bands, highlighting statistical extremes. Traders use these bands to:
Identify potentially overextended moves (beyond +2σ or +3σ).
Gauge momentum strength (holding above +1σ).
Spot mean-reversion setups when price returns to VWAP after extreme moves.
🎨 Dynamic Background and Momentum Colorization
To visually highlight strength or weakness in price action relative to VWAP:
Dynamic Background Fill between Current and Previous VWAPs:
Green background appears when the Current VWAP is above the Previous VWAP and the linear regression slope (adjustable length) is positive, indicating bullish sentiment.
Red background appears when the Current VWAP is below the Previous VWAP and the slope is negative, indicating bearish sentiment.
No fill when conditions are mixed or momentum is uncertain.
Gold Fill above HOD VWAP:
When price action is above the High-of-Day VWAP and momentum (linear regression slope) is positive, a subtle gold shading appears, quickly highlighting bullish momentum.
⚙ Fully Customizable Settings
Session Times: Adjust session start and end times to match your specific market hours.
Standard Deviation Bands: Enable or disable each VWAP’s deviation bands individually and select how many bands (1σ, 2σ, or 3σ) you'd like to display.
Momentum Slope Length: Adjustable lookback for linear regression slope calculation—giving you full control of trend sensitivity.
🎯 Who Should Use This Indicator?
This indicator is perfect for:
Day Traders who want quick insights into intraday sentiment shifts.
Swing Traders tracking institutional footprints and seeking optimal entry/exit points.
Momentum Traders who rely on clearly visible momentum signals from HOD anchored VWAPs.
Institutional Traders and Professionals seeking sophisticated, institutionally-inspired VWAP analysis without manual anchoring.
📈 Summary of Features
✅ Automatic VWAP Anchors (Current Session, Previous Session, High-of-Day)
✅ Optional Standard Deviation Bands for each VWAP anchor
✅ Dynamic Background Coloring based on price action and momentum conditions
✅ Gold Momentum Highlight for quick bullish momentum identification above HOD VWAP
✅ Fully Customizable Inputs for precise personalization and flexibility
📢 Conclusion
The Multi-VWAP System isn't just another VWAP indicator. It's an institutional-level, dynamic, multi-dimensional analysis tool inspired by the work of Brian Shannon and leading institutional traders. It takes the guesswork out of anchoring and analysis, leaving you free to focus on identifying and executing high-probability trade setups.
Enjoy trading smarter—not harder. Happy Trading! 🚀📊
Candle Color RatioThe Candle Color Ratio indicator is designed to analyze the ratio of green (bullish) to red (bearish) candles over a specified lookback period. This ratio can offer insights into the prevailing market sentiment and potential trend reversals. The indicator calculates the number of green and red candles and provides two key metrics: the Green to Red Ratio and the Red to Green Ratio. Additionally, it allows users to set a threshold for these ratios to identify extreme sentiment conditions.
Calculations :
- Green Score and Red Score: The script first checks the color of the candles over a user-defined lookback period (up to 10 bars back). For each bar, it assesses whether the closing price is higher (green) or lower (red) than the opening price. The green and red scores are calculated by counting the number of green and red candles, respectively, within the lookback period.
- Green to Red Ratio: This metric is the ratio of the Green Score to the Red Score. It quantifies the relative prevalence of bullish candles compared to bearish candles within the specified lookback period. A higher Green to Red ratio indicates a stronger bullish sentiment.
- Red to Green Ratio: This metric is the inverse of the Green to Red Ratio. It calculates the relative prevalence of bearish candles compared to bullish candles within the lookback period. A higher Red to Green ratio indicates a stronger bearish sentiment.
Interpretation :
- Green Score and Red Score: These histograms display the raw counts of green and red candles within the lookback period. Traders can use these histograms to observe the recent distribution of bullish and bearish candles.
- Green to Red Ratio: This line graph represents the ratio of bullish candles to bearish candles. When this ratio is above 1, it indicates a predominantly bullish sentiment, suggesting potential upward momentum. Conversely, when it's below 1, it signifies a bearish sentiment, suggesting potential downward pressure.
- Red to Green Ratio: This line graph represents the inverse ratio, indicating the strength of bearish sentiment relative to bullish sentiment. Similar to Green to Red, values above 1 indicate a bearish bias, while values below 1 indicate a bullish bias.
- Ratio Threshold: The white horizontal line on the chart represents the user-defined threshold. Traders can set this threshold to identify extreme sentiment conditions. When either the Green to Red ratio or Red to Green ratio crosses the threshold, it may signal overbought (above threshold) or oversold (below threshold) market conditions.
Potential Applications:
- Trend Confirmation: Traders can use this indicator to confirm the prevailing trend. A strong GRratioScore may validate a bullish trend, while a strong RGratioScore may confirm a bearish trend.
Contrarian Signals: Extreme readings (crossing the threshold) can be interpreted as potential reversal points. For example, a very high GRratioScore followed by a crossover below the threshold might indicate an overbought market and a potential bearish reversal.
Divergence Analysis: Traders can analyze divergences between price movements and the indicator. If price makes higher highs while the indicator shows lower highs, it may signal a weakening bullish trend.
Limitations:
- Lookback Period: The indicator's effectiveness may vary depending on the selected lookback period. Longer periods smooth out fluctuations but may lag in capturing recent changes in sentiment.
- Threshold Sensitivity: The interpretation of extreme readings can be subjective. Traders should carefully select and adjust the threshold based on their trading strategy and market conditions.
- Lack of Context: This indicator solely focuses on candle color ratios and does not consider other factors like volume, market news, or fundamental analysis. It should be used in conjunction with other indicators and analysis techniques.
This indicator provides a simple yet valuable tool for assessing market sentiment and potential trend reversals based on candle color ratios. Traders can use this information to make informed trading decisions, but it's essential to consider its limitations and use it as part of a comprehensive trading strategy.
Crypto Fear & Greed Score [Underblock]Crypto Fear & Greed Score - Methodology & Functioning
Introduction
The Crypto Fear & Greed Score is a comprehensive indicator designed to assess market sentiment by detecting extreme conditions of panic (fear) and euphoria (greed). By combining multiple technical factors, it helps traders identify potential buying and selling opportunities based on the emotional state of the market.
This indicator is highly customizable, allowing users to adjust weight parameters for RSI, volatility, Bitcoin dominance, and trading volume, making it adaptable to different market conditions.
Key Components
The indicator consists of two primary sub-scores:
Fear Score (Panic) - Measures the intensity of fear in the market.
Greed Score (Euphoria) - Measures the level of overconfidence and excessive optimism.
The difference between these two values results in the Net Score, which indicates the dominant market sentiment at any given time.
1. Relative Strength Index (RSI)
The indicator utilizes multiple RSI timeframes to measure momentum and overbought/oversold conditions:
RSI 1D (Daily) - Captures medium-term sentiment shifts.
RSI 4H (4-hour) - Identifies short-term market movements.
RSI 1W (Weekly) - Helps detect long-term overbought/oversold conditions.
2. Volatility Analysis
High volatility is often associated with fear and panic-driven selling.
Low volatility in bullish markets may indicate complacency and overconfidence.
3. Bitcoin Dominance (BTC.D)
Bitcoin dominance provides insights into capital flow between Bitcoin and altcoins:
Rising BTC dominance suggests fear as investors move into BTC for safety.
Declining BTC dominance indicates increased risk appetite and potential market euphoria.
4. Buying and Selling Volume
The indicator analyzes both buying and selling volume, ensuring a clearer confirmation of market sentiment.
High buying volume in uptrends reinforces bullish momentum.
Spikes in selling volume indicate panic and possible market bottoms.
Calculation Methodology
The indicator allows users to adjust weight parameters for each component, making it adaptable to different trading strategies. The formulas are structured as follows:
Fear Score (Panic Calculation)
Fear Score = (1 - RSI_1D) * W_RSI1D + (1 - RSI_4H) * W_RSI4H + (1 - Dominance) * W_Dominance + Volatility * W_Volatility + Sell Volume * W_SellVolume
Greed Score (Euphoria Calculation)
Greed Score = RSI_1D * W_RSI1D + RSI_4H * W_RSI4H + Dominance * W_Dominance + (1 - Volatility) * W_Volatility + Buy Volume * W_BuyVolume
Net Fear & Greed Score
Net Score = (Greed Score - Fear Score) * 100
Interpretation:
Above 70: Extreme greed -> possible overbought conditions.
Below -70: Extreme fear -> potential buying opportunity.
Near 0: Neutral market sentiment.
Trend Reversal Detection
The indicator includes two moving averages for enhanced trend detection:
Short-term SMA (50-periods) - Reacts quicklier to changes in sentiment.
Long-term SMA (200-periods) - Captures broader trend reversals.
How Crossovers Work:
Short SMA crossing above Long SMA -> Potential bullish reversal.
Short SMA crossing below Long SMA -> Possible bearish trend shift.
Alerts for SMA crossovers help traders act on momentum shifts in real-time.
Customization and Visualization
The Net Score dynamically changes color: green for greed, red for fear.
Users can adjust weightings directly from settings, avoiding manual script modifications.
Reference levels at 70 and -70 provide clarity on extreme market conditions.
Conclusion
The Crypto Fear & Greed Score provides a powerful and objective measure of market sentiment, helping traders navigate extreme conditions effectively.
🟢 If the Net Score is below -70, panic may present a buying opportunity.
🔴 If the Net Score is above 70, excessive euphoria may indicate a selling opportunity.
⚖️ Neutral values suggest a balanced market sentiment.
By customizing weight parameters and utilizing trend reversal alerts, traders can gain a deeper insight into market psychology and make more informed trading decisions. 🚀
TSF 20What kind of traders/investors are we?
We are trend followers. We look for assets that are outperforming the market. Our scripts are designed to be used on the higher timeframes (weekly/daily) to catch the large moves/trends in the market.
Our scripts have been designed to help you follow the trend in an asset.
What does this script do?
This script is designed to colour candles on a chart based on their position relative to two sets of Bollinger Bands. Here's a breakdown of how it functions:
Bollinger Bands Setup:
The script uses two sets of Bollinger Bands, both with a length of 20 and based on the closing prices of candles.
The first set of Bollinger Bands uses a standard deviation (StdDev) of 1.
The second set uses a standard deviation of 2.
Neither set of bands is displayed on the chart.
Coloring Candles:
Green Candle: A candle is coloured green if its close is above the upper Bollinger Band with StdDev 1 but below the upper Bollinger Band with StdDev 2. This indicates a moderately bullish sentiment.
Dark Green Candle: A candle is colored dark green when its close is above the upper Bollinger Band with StdDev 2. This implies a stronger bullish sentiment.
Red Candle: A candle is coloured red if its close is below the lower Bollinger Band with StdDev 1 but above the lower Bollinger Band with StdDev 2. This indicates a moderately bearish sentiment.
Dark Red Candle: A candle is colored dark red if its close is below the lower Bollinger Band with StdDev 2, indicating a stronger bearish sentiment.
Grey Candle: A candle is coloured grey if it closes between the upper and lower Bollinger Bands with StdDev 1. This usually signifies a neutral market condition or periods of consolidation.
In summary, this script is an analytical tool that visually represents the market's bullishness or bearishness relative to the Bollinger Bands, without displaying the bands themselves. It's designed to help investors quickly assess market conditions and sentiment based on the colour-coded representation of price action in relation to these volatility bands.
What makes this script unique?
Innovative Color-Coding System: Candles are colored in varying shades of green and red, providing an immediate visual cue about the market's bullish or bearish tendencies. A neutral grey is also used, offering a quick assessment of market indecision or consolidation phases.
Dual Bollinger Band Analysis: Utilizes two sets of Bollinger Bands (StdDev 1 and StdDev 2) to gauge market volatility and sentiment. This dual-band approach enhances the precision of sentiment analysis compared to using a single standard deviation.
Customizable and Non-Obtrusive: Designed to keep your charts clean and readable. The Bollinger Bands themselves are not displayed, reducing visual clutter and allowing for a focus on price action.
Versatile and Adaptable: Suitable for various trading styles and timeframes. Whether you are a short-term or long-term investor, this indicator can be seamlessly integrated into your analysis toolkit.
Valuable Addition to Market Analysis: Enhances traditional candlestick analysis and complements other technical indicators and strategies. It offers an additional layer of understanding market dynamics and can be used to confirm or question other signals.
How It Adds Value:
Enhanced Visual Analysis: By colour-coding candles based on Bollinger Band positioning, it simplifies the interpretation of market sentiment and volatility, making it easier to spot trends and reversals.
Strategic Decision Making: Helps traders make more informed decisions by clearly highlighting bullish and bearish strength, or lack thereof, in the market.
Time Efficiency: Reduces the time spent analyzing charts by providing an immediate visual representation of market conditions.
Originality: Offers a fresh perspective and an innovative approach to using Bollinger Bands, making it a unique addition to the community's toolbox.
Regime Filter IndicatorRegime Filter – Crypto Market Trend Indicator
📊 Overview
The Regime Filter is a powerful market analysis indicator designed specifically for crypto trading. It helps traders identify whether the market is in a bullish or bearish phase by analyzing key assets in the cryptocurrency market, including Bitcoin (BTC), Bitcoin Dominance (BTC.D), and the Altcoin Market (TOTAL3). The indicator compares these assets against their respective Simple Moving Averages (SMA) to determine the overall market regime, allowing traders to make more informed decisions.
🔍 How It Works
The Regime Filter evaluates three main components to determine the market's sentiment:
1. BTC Dominance (BTC.D) vs. 40 SMA (Medium Timeframe)
The Bitcoin Dominance (BTC.D) is compared to its 40-period SMA on a mid-timeframe (e.g.,
1-hour). If BTC.D is below the 40 SMA, it indicates that altcoins are performing well relative
to Bitcoin, suggesting a bullish altcoin market. If BTC.D is above the 40 SMA, Bitcoin is
gaining dominance, indicating a potential bearish phase for altcoins.
2. TOTAL3 Market Cap vs. 100 SMA (Medium Timeframe)
The TOTAL3 index, which tracks the total market capitalization of all cryptocurrencies except
Bitcoin and Ethereum, is compared to its 100-period SMA. A bullish signal occurs when TOTAL3
is above the 100 SMA, indicating strength in altcoins, while a bearish signal occurs when
TOTAL3 is below the 100 SMA, signaling a potential weakness in the altcoin market.
3. BTC Price vs. 200 SMA (Higher Timeframe)
The current Bitcoin price is compared to its 200-period Simple Moving Average (SMA) on a
higher timeframe (e.g., 4-hour). A bullish signal is given when the BTC price is above the 200
SMA, and a bearish signal when it's below.
🟢 Bullish Market Conditions
The market is considered bullish when:
- BTC Dominance (BTC.D) is below the 40 SMA, suggesting altcoins are gaining momentum.
- TOTAL3 Market Cap is above the 100 SMA, signaling strength in the altcoin market.
- BTC price is above the 200 SMA, indicating an uptrend in Bitcoin.
In these conditions, the background turns green 🟢, and a "Bullish" label is displayed on the chart.
🔴 Bearish Market Conditions
The market is considered bearish when:
- BTC Dominance (BTC.D) is above the 40 SMA, indicating Bitcoin is outperforming altcoins.
- TOTAL3 Market Cap is below the 100 SMA, signaling weakness in altcoins.
- BTC price is below the 200 SMA, indicating a downtrend in Bitcoin.
In these conditions, the background turns red 🔴, and a "Bearish" label appears on the chart.
⚙ Customization Options
- The Regime Filter offers flexibility for traders:
- Enable or Disable Specific SMAs: Customize the indicator by enabling or disabling the 200 SMA for Bitcoin, the 40 SMA for BTC Dominance, and the 100 SMA for TOTAL3.
- Adjust Timeframes: Choose the timeframes for each of the moving averages to suit your preferred trading strategy.
- Real-Time Data Adjustments: The indicator updates in real-time to reflect current market conditions, ensuring timely analysis.
📈 Best Use Cases
- Trend Confirmation: The Regime Filter is ideal for confirming the market's overall trend,
helping traders to align their positions with the dominant market sentiment.
- Trade Entry/Exit Signals: Use the indicator to identify favorable entry or exit points based on
whether the market is in a bullish or bearish phase.
- Market Overview: Gain a quick understanding of the broader crypto market, with a focus on
Bitcoin and altcoins, to make more strategic decisions.
⚠️ Important Notes
Trend-Following Indicator: The Regime Filter is a trend-following tool, meaning it works best in strong trending markets. It may not perform well in choppy, sideways markets.
Risk Management: This indicator is designed to assist in identifying market trends, but it does not guarantee profits. Always apply sound risk management strategies and use additional indicators when making trading decisions.
Not a Profit Guarantee: While this indicator can help identify potential market trends, no trading tool or strategy guarantees profits. Please trade responsibly and ensure that your decisions are based on comprehensive analysis and risk tolerance.
Weekly Covered Calls Strategy with IV & Delta LogicWhat Does the Indicator Do?
this is interactive you must use it with your options chain to input data based on the contract you want to trade.
Visualize three strike price levels for covered calls based on:
Aggressive (closest to price, riskier).
Moderate (mid-range, balanced).
Low Delta (farthest, safer).
Incorporate Implied Volatility (IV) from the options chain to make strike predictions more realistic and aligned with market sentiment. Adjust the risk tolerance by modifying Delta inputs and IV values. Risk is defined for example .30 delta means 30% chance of your shares being assigned. If you want to generate steady income with your shares you might want to lower the risk of them being assigned to .05 or 5% etc.
How to Use the Indicator with the Options Chain
Start with the Options Chain:
Look for the following data points from your options chain:
Implied Volatility (IV Mid): Average IV for a particular strike price.
Delta:
~0.30 Delta: Closest strike (Aggressive).
~0.15–0.20 Delta: Mid-range strike (Moderate).
~0.05–0.10 Delta: Far OTM, safer (Low Delta).
Strike Price: Identify strike prices for the desired Deltas.
Open Interest: Check liquidity; higher OI ensures tighter spreads.
Input IV into the Indicator:
Enter the IV Mid value (e.g., 0.70 for 70%) from the options chain into the Implied Volatility field of the indicator.
Adjust Delta Inputs Based on Risk Tolerance:
Aggressive Delta: Increase if you want strikes closer to the current price (riskier, higher premium).
Default: 0.2 (20% chance of shares being assigned).
Moderate Delta: Balanced risk/reward.
Default: 0.12 (12%)
Low Delta: Decrease for safer, farther OTM strikes.
Default: 0.05 (5%)
Visualize the Chart:
Once inputs are updated:
Red Line: Aggressive Strike (closest, riskiest, higher premium).
Blue Line: Moderate Strike (mid-range).
Green Line: Low Delta Strike (farthest, safer).
Step-by-Step Workflow Example
Open the options chain and note:
Implied Volatility (IV Mid): Example 71.5% → input as 0.715.
Delta for desired strikes:
Aggressive: 0.30 Delta → Closest strike ~ $455.
Moderate: 0.15 Delta → Mid-range strike ~ $470.
Low Delta: 0.05 Delta → Farther strike ~ $505.
Open the indicator and adjust:
IV Mid: Enter 0.715.
Aggressive Delta: Leave at 0.12 (or adjust to bring strikes closer).
Moderate Delta: Leave at 0.18.
Low Delta: Adjust to 0.25 for safer, farther strikes.
View the chart:
Compare the indicator's strikes (red, blue, green) with actual options chain strikes.
Use the visualization to: Validate the risk/reward for each strike.
Align strikes with technical trends, support/resistance.
Adjusting Inputs Based on Risk Tolerance
Higher Risk: Increase Aggressive Delta (e.g., 0.15) for closer strikes.
Use higher IV values for volatile stocks.
Moderate Risk: Use default values (0.12–0.18 Delta).
Balance premiums and probability.
Lower Risk: Increase Low Delta (e.g., 0.30) for farther, safer strikes.
Focus on higher IV stocks with good open interest.
Key Benefits
Simplifies Strike Selection: Visualizes the three risk levels directly on the chart.
Aligns with Market Sentiment: Incorporates IV for realistic forecasts.
Customizable for Risk: Adjust inputs to match personal risk tolerance.
By combining the options chain (IV, Delta, and liquidity) with the technical chart, you get a powerful, visually intuitive tool for covered call strategies.
Time Change Indicator-AYNETDetailed Scientific Explanation of the Time Change Indicator Code
This Pine Script code implements a financial indicator designed to measure and visualize the percentage change in the closing price of an asset over a specified timeframe. It uses historical data to calculate changes and displays them as a histogram for intuitive analysis. Below is a comprehensive scientific breakdown of the code:
1. User Inputs
The script begins by defining user-configurable parameters, enabling flexibility in analysis:
timeframe: The user selects the timeframe for measuring price changes (e.g., 1 hour, 1 day). This determines the granularity of the analysis.
positive_color and negative_color: Users choose the colors for positive and negative changes, enhancing visual interpretation.
2. Data Retrieval
The script employs request.security to fetch closing price data (close) for the specified timeframe. This function ensures that the indicator adapts to different timeframes, providing consistent results regardless of the chart's base timeframe.
Current Closing Price (current_close):
current_close
=
request.security(syminfo.tickerid, timeframe, close)
current_close=request.security(syminfo.tickerid, timeframe, close)
Retrieves the closing price for the defined timeframe.
Previous Closing Price (prev_close): The script uses a variable (prev_close) to store the previous closing price. This variable is updated dynamically as new data is processed.
3. Price Change Calculation
The script calculates both the absolute and percentage change in closing price:
Absolute Price Change (price_change):
price_change
=
current_close
−
prev_close
price_change=current_close−prev_close
Measures the difference between the current and previous closing prices.
Percentage Change (percent_change):
percent_change
=
price_change
prev_close
×
100
percent_change=
prev_close
price_change
×100
Normalizes the change relative to the previous closing price, making it easier to compare changes across different assets or timeframes.
4. Conditional Logic for Visualization
The script uses a conditional statement to determine the color of each histogram bar:
Positive Change: If price_change > 0, the bar is assigned the user-defined positive_color.
Negative Change: If price_change < 0, the bar is assigned the negative_color.
This differentiation provides a clear visual cue for understanding price movement direction.
5. Visualization
The script visualizes the percentage change using a histogram and enhances the chart with dynamic labels:
Histogram (plot.style_histogram):
Each bar represents the percentage change for a given timeframe.
Bars above the zero line indicate positive changes, while bars below the zero line indicate negative changes.
Zero Line (hline(0)): A reference line at zero provides a baseline for interpreting changes.
Dynamic Labels (label.new):
Each bar is annotated with its exact percentage change value.
The label's position and color correspond to the bar, improving clarity.
6. Algorithmic Flow
Data Fetching: Retrieve the current and previous closing prices for the specified timeframe.
Change Calculation: Compute the absolute and percentage changes between the two prices.
Bar Coloring: Determine the color of the histogram bar based on the change's direction.
Plotting: Visualize the changes as a histogram and add labels for precise data representation.
7. Applications
This indicator has several practical applications in financial analysis:
Volatility Analysis: By visualizing percentage changes, traders can assess the volatility of an asset over specific timeframes.
Trend Identification: Positive and negative bars highlight periods of upward or downward momentum.
Cross-Asset Comparison: Normalized percentage changes enable the comparison of price movements across different assets, regardless of their nominal values.
Market Sentiment: Persistent positive or negative changes may indicate prevailing bullish or bearish sentiment.
8. Scientific Relevance
This script applies fundamental principles of data visualization and time-series analysis:
Statistical Normalization: Percentage change provides a scale-invariant metric for comparing price movements.
Dynamic Data Processing: By updating the prev_close variable with real-time data, the script adapts to new market conditions.
Visual Communication: The use of color and labels improves the interpretability of quantitative data.
Conclusion
This indicator combines advanced Pine Script functions with robust financial analysis techniques to create an effective tool for evaluating price changes. It is highly adaptable, providing users with the ability to tailor the analysis to their specific needs. If additional features, such as smoothing or multi-timeframe analysis, are required, the code can be further extended.
$TUBR: 7-25-99 Moving Average7, 25, and 99 Period Moving Averages
This indicator plots three moving averages: the 7-period, 25-period, and 99-period Simple Moving Averages (SMA). These moving averages are widely used to smooth out price action and help traders identify trends over different time frames. Let's break down the significance of these specific moving averages from both supply and demand perspectives and a price action perspective.
1. Supply and Demand Perspective:
- 7-period Moving Average (Short-Term) :
The 7-period moving average represents the short-term sentiment in the market. It captures the rapid fluctuations in price and is heavily influenced by recent supply and demand changes. Traders often look to the 7-period SMA for immediate price momentum, with price moving above or below this line signaling short-term strength or weakness.
- Bullish Supply/Demand : When price is above the 7-period SMA, it suggests that buyers are currently in control and demand is higher than supply. Conversely, price falling below this line indicates that supply is overpowering demand, leading to a short-term downtrend.
Is current price > average price in past 7 candles (depending on timeframe)? This will tell you how aggressive buyers are in short term.
- Key Supply/Demand Zones : The 7-period SMA often acts as dynamic support or resistance in a trending market, where traders might use it to enter or exit positions based on how price interacts with this level.
- 25-period Moving Average (Medium-Term) :
The 25-period SMA smooths out more of the noise compared to the 7-period, providing a more stable indication of intermediate trends. This moving average is often used to gauge the market's supply and demand balance over a broader timeframe than the short-term 7-period SMA.
- Supply/Demand Balance : The 25-period SMA reflects the medium-term equilibrium between supply and demand. A crossover between the price and the 25-period SMA may indicate a shift in this balance. When price sustains above the 25-period SMA, it shows that demand is strong enough to maintain an upward trend. Conversely, if the price stays below it, supply is likely exceeding demand.
Is current price > average price in past 25 candles (depending on timeframe)? This will tell you how aggressive buyers are in mid term.
- Momentum Shift : Crossovers between the 7-period and 25-period SMAs can indicate momentum shifts between short-term and medium-term demand. For example, if the 7-period crosses above the 25-period, it often signifies growing short-term demand relative to the medium-term trend, signaling potential buy opportunities. What this crossover means is that if 7MA > 25MA that means in past 7 candles average price is more than past 25 candles.
- 99-period Moving Average (Long-Term):
The 99-period SMA represents the long-term trend and reflects the market's supply and demand over an extended period. This moving average filters out short-term fluctuations and highlights the market's overall trajectory.
- Long-Term Supply/Demand Dynamics : The 99-period SMA is slower to react to changes in supply and demand, providing a more stable view of the market's overall trend. Price staying above this line shows sustained demand dominance, while price consistently staying below reflects ongoing supply pressure.
Is current price > average price in past 99 candles (depending on timeframe)? This will tell you how aggressive buyers are in long term.
- Market Trend Confirmation : When both the 7-period and 25-period SMAs are above the 99-period SMA, it signals a strong bullish trend with demand outweighing supply across all timeframes. If all three SMAs are below the 99-period SMA, it points to a bear market where supply is overpowering demand in both the short and long term.
2. Price Action Perspective :
- 7-period Moving Average (Short-Term Trends):
The 7-period moving average closely tracks price action, making it highly responsive to quick shifts in price. Traders often use it to confirm short-term reversals or continuations in price action. In an uptrend, price typically stays above the 7-period SMA, whereas in a downtrend, price stays below it.
- Short-Term Price Reversals : Crossovers between the price and the 7-period SMA often indicate short-term reversals. When price breaks above the 7-period SMA after staying below it, it suggests a potential bullish reversal. Conversely, a price breakdown below the 7-period SMA could signal a bearish reversal.
- 25-period Moving Average (Medium-Term Trends) :
The 25-period SMA helps identify the medium-term price action trend. It balances short-term volatility and longer-term stability, providing insight into the more persistent trend. Price pullbacks to the 25-period SMA during an uptrend can act as a buying opportunity for trend traders, while pullbacks during a downtrend may offer shorting opportunities.
- Pullback and Continuation: In trending markets, price often retraces to the 25-period SMA before continuing in the direction of the trend. For instance, if the price is in a bullish trend, traders may look for support at the 25-period SMA for potential continuation trades.
- 99-period Moving Average (Long-Term Trend and Market Sentiment ):
The 99-period SMA is the most critical for identifying the overall market trend. Price consistently trading above the 99-period SMA indicates long-term bullish momentum, while price staying below the 99-period SMA suggests bearish sentiment.
- Trend Confirmation : Price action above the 99-period SMA confirms long-term upward momentum, while price action below it confirms a downtrend. The space between the shorter moving averages (7 and 25) and the 99-period SMA gives a sense of the strength or weakness of the trend. Larger gaps between the 7 and 99 SMAs suggest strong bullish momentum, while close proximity indicates consolidation or potential reversals.
- Price Action in Trending Markets : Traders often use the 99-period SMA as a dynamic support/resistance level. In strong trends, price tends to stay on one side of the 99-period SMA for extended periods, with breaks above or below signaling major changes in market sentiment.
Why These Numbers Matter:
7-Period MA : The 7-period moving average is a popular choice among short-term traders who want to capture quick momentum changes. It helps visualize immediate market sentiment and is often used in conjunction with price action to time entries or exits.
- 25-Period MA: The 25-period MA is a key indicator for swing traders. It balances sensitivity and stability, providing a clearer picture of the intermediate trend. It helps traders stay in trades longer by filtering out short-term noise, while still being reactive enough to detect reversals.
- 99-Period MA : The 99-period moving average provides a broad view of the market's direction, filtering out much of the short- and medium-term noise. It is crucial for identifying long-term trends and assessing whether the market is bullish or bearish overall. It acts as a key reference point for longer-term trend followers, helping them stay with the broader market sentiment.
Conclusion:
From a supply and demand perspective, the 7, 25, and 99-period moving averages help traders visualize shifts in the balance between buyers and sellers over different time horizons. The price action interaction with these moving averages provides valuable insight into short-term momentum, intermediate trends, and long-term market sentiment. Using these three MAs together gives a more comprehensive understanding of market conditions, helping traders align their strategies with prevailing trends across various timeframes.
------------- RULE BASED SYSTEM ---------------
Overview of the Rule-Based System:
This system will use the following moving averages:
7-period MA: Represents short-term price action.
25-period MA: Represents medium-term price action.
99-period MA: Represents long-term price action.
1. Trend Identification Rules:
Bullish Trend:
The 7-period MA is above the 25-period MA, and the 25-period MA is above the 99-period MA.
This structure shows that short, medium, and long-term trends are aligned in an upward direction, indicating strong bullish momentum.
Bearish Trend:
The 7-period MA is below the 25-period MA, and the 25-period MA is below the 99-period MA.
This suggests that the market is in a downtrend, with bearish momentum dominating across timeframes.
Neutral/Consolidation:
The 7-period MA and 25-period MA are flat or crossing frequently with the 99-period MA, and they are close to each other.
This indicates a sideways or consolidating market where there’s no strong trend direction.
2. Entry Rules:
Bullish Entry (Buy Signals):
Primary Buy Signal:
The price crosses above the 7-period MA, AND the 7-period MA is above the 25-period MA, AND the 25-period MA is above the 99-period MA.
This indicates the start of a new upward trend, with alignment across the short, medium, and long-term trends.
Pullback Buy Signal (for trend continuation):
The price pulls back to the 25-period MA, and the 7-period MA remains above the 25-period MA.
This indica
tes that the pullback is a temporary correction in an uptrend, and buyers may re-enter the market as price approaches the 25-period MA.
You can further confirm the signal by waiting for price action (e.g., bullish candlestick patterns) at the 25-period MA level.
Breakout Buy Signal:
The price crosses above the 99-period MA, and the 7-period and 25-period MAs are also both above the 99-period MA.
This confirms a strong bullish breakout after consolidation or a long-term downtrend.
Bearish Entry (Sell Signals):
Primary Sell Signal:
The price crosses below the 7-period MA, AND the 7-period MA is below the 25-period MA, AND the 25-period MA is below the 99-period MA.
This indicates the start of a new downtrend with alignment across the short, medium, and long-term trends.
Pullback Sell Signal (for trend continuation):
The price pulls back to the 25-period MA, and the 7-period MA remains below the 25-period MA.
This indicates that the pullback is a temporary retracement in a downtrend, providing an opportunity to sell as price meets resistance at the 25-period MA.
Breakdown Sell Signal:
The price breaks below the 99-period MA, and the 7-period and 25-period MAs are also below the 99-period MA.
This confirms a strong bearish breakdown after consolidation or a long-term uptrend reversal.
3. Exit Rules:
Bullish Exit (for long positions):
Short-Term Exit:
The price closes below the 7-period MA, and the 7-period MA starts crossing below the 25-period MA.
This indicates weakening momentum in the uptrend, suggesting an exit from the long position.
Stop-Loss Trigger:
The price falls below the 99-period MA, signaling the breakdown of the long-term trend.
This can act as a final exit signal to minimize losses if the long-term uptrend is invalidated.
Bearish Exit (for short positions):
Short-Term Exit:
The price closes above the 7-period MA, and the 7-period MA starts crossing above the 25-period MA.
This indicates a potential weakening of the downtrend and signals an exit from the short position.
Stop-Loss Trigger:
The price breaks above the 99-period MA, invalidating the bearish trend.
This signals that the market may be reversing to the upside, and exiting short positions would be prudent.
Swiss Knife [MERT]Introduction
The Swiss Knife indicator is a comprehensive trading tool designed to provide a multi-dimensional analysis of the market. By integrating a wide array of technical indicators across multiple timeframes, it offers traders a holistic view of market sentiment, momentum, and potential reversal points. This indicator is particularly useful for traders looking to combine trend analysis, momentum indicators, volume data, and price action into a single, easy-to-read format.
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Key Features
Multi-Timeframe Analysis : Evaluates indicators on Daily , 4-Hour , 1-Hour , and 15-Minute timeframes.
Comprehensive Indicator Suite : Incorporates MACD , Awesome Oscillator (AO) , Parabolic SAR , SuperTrend , DPO , RSI , Stochastic Oscillator , Bollinger Bands , Ichimoku Cloud , Chande Momentum Oscillator (CMO) , Donchian Channels , ADX , volume-based momentum indicators, Fractals , and divergence detection.
Market Sentiment Scoring : Aggregates signals from multiple indicators to provide an overall sentiment score.
Visual Aids : Displays EMA lines, trendlines, divergence signals, and a sentiment table directly on the chart.
Super Trend Reversal Signals : Identifies potential market reversal points by assessing the momentum of automated trading bots.
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Explanation of Each Indicator
Moving Average Convergence Divergence (MACD)
- Purpose : Measures the relationship between two moving averages of price.
- Interpretation : A positive histogram suggests bullish momentum; a negative histogram indicates bearish momentum.
Awesome Oscillator (AO)
- Purpose : Gauges market momentum by comparing recent market movements to historic ones.
- Interpretation : Above zero indicates bullish momentum; below zero indicates bearish momentum.
Parabolic SAR (SAR)
- Purpose : Identifies potential reversal points in price direction.
- Interpretation : Dots below price suggest an uptrend; dots above price suggest a downtrend.
SuperTrend
- Purpose : Determines the prevailing market trend.
- Interpretation : Provides buy or sell signals based on price movements relative to the SuperTrend line.
Detrended Price Oscillator (DPO)
- Purpose : Removes trend from price to identify cycles.
- Interpretation : Values above zero suggest price is above the moving average; values below zero indicate it is below.
Relative Strength Index (RSI)
- Purpose : Measures the speed and change of price movements.
- Interpretation : Values above 50 indicate bullish momentum; values below 50 indicate bearish momentum.
Stochastic Oscillator
- Purpose : Compares a particular closing price to a range of its prices over a certain period.
- Interpretation : Values above 50 indicate bullish conditions; values below 50 indicate bearish conditions.
Bollinger Bands (BB)
- Purpose : Measures market volatility and provides relative price levels.
- Interpretation : Price above the middle band suggests bullishness; below the middle band suggests bearishness.
Ichimoku Cloud
- Purpose : Provides support and resistance levels, trend direction, and momentum.
- Interpretation : Bullish signals when price is above the cloud; bearish signals when price is below the cloud.
Chande Momentum Oscillator (CMO)
- Purpose : Measures momentum on both up and down days.
- Interpretation : Values above 50 indicate strong upward momentum; values below -50 indicate strong downward momentum.
Donchian Channels
- Purpose : Identifies volatility and potential breakouts.
- Interpretation : Price above the upper band suggests bullish breakout; below the lower band suggests bearish breakout.
Average Directional Index (ADX)
- Purpose : Measures the strength of a trend.
- Interpretation : DI+ above DI- indicates bullish trend; DI- above DI+ indicates bearish trend.
Volume Momentum Indicators (VolMom, CumVolMom, POCMom)
- Purpose : Analyze volume to assess buying and selling pressure.
- Interpretation : Positive values suggest bullish volume momentum; negative values indicate bearish volume momentum.
Fractals
- Purpose : Identify potential reversal points in the market.
- Interpretation : Up fractals may indicate a future downtrend; down fractals may indicate a future uptrend.
Divergence Detection
- Purpose : Identifies divergences between price and various indicators (RSI, MACD, Stochastic, OBV, MFI, A/D Line).
- Interpretation : Bullish divergences suggest potential upward reversal; bearish divergences suggest potential downward reversal.
- Note : This functionality utilizes the library from Divergence Indicator .
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Coloring Scheme
Background Color
- Purpose : Reflects the overall market sentiment by combining sentiment scores from all indicators across different timeframes.
- Interpretation :
- Green Shades : Indicate bullish market sentiment.
- Red Shades : Indicate bearish market sentiment.
- Intensity : The strength of the color corresponds to the strength of the sentiment score.
Sentiment Table
- Purpose : Displays the status of each indicator across different timeframes.
- Interpretation :
- Green Cell : The indicator suggests a bullish signal.
- Red Cell : The indicator suggests a bearish signal.
- Percentage Score : Indicates the overall bullish or bearish sentiment on that timeframe.
Exponential Moving Averages (EMAs)
- Purpose : Provide dynamic support and resistance levels.
- Colors :
- EMA 10 : Lime
- EMA 20 : Yellow
- EMA 50 : Orange
- EMA 100 : Red
- EMA 200 : Purple
Trendlines
- Purpose : Visual representation of support and resistance levels based on pivot points.
- Interpretation :
- Upward Trendlines : Colored green , indicating support levels.
- Downward Trendlines : Colored red , indicating resistance levels.
- Note : Trendlines are drawn using the library from Simple Trendlines .
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Utility of Market Sentiment
The indicator aggregates signals from multiple technical indicators across various timeframes to compute an overall market sentiment score . This comprehensive approach helps traders understand the prevailing market conditions by:
Confirming Trends : Multiple indicators pointing in the same direction can confirm the strength of a trend.
Identifying Reversals : Divergences and fractals can signal potential turning points.
Timeframe Alignment : Aligning signals across different timeframes can enhance the probability of successful trades.
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Divergences
Divergence occurs when the price of an asset moves in the opposite direction of a technical indicator, suggesting a potential reversal.
- Bullish Divergence : Price makes a lower low, but the indicator makes a higher low.
- Bearish Divergence : Price makes a higher high, but the indicator makes a lower high.
The indicator detects divergences for:
RSI
MACD
Stochastic Oscillator
On-Balance Volume (OBV)
Money Flow Index (MFI)
Accumulation/Distribution Line (A/D Line)
By identifying these divergences, traders can spot early signs of trend reversals and adjust their strategies accordingly.
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Trendlines
Trendlines are essential tools for identifying support and resistance levels. The indicator automatically draws trendlines based on pivot points:
- Upward Trendlines (Support) : Connect higher lows, indicating an uptrend.
- Downward Trendlines (Resistance) : Connect lower highs, indicating a downtrend.
These trendlines help traders visualize the trend direction and potential breakout or reversal points.
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Super Trend Reversals (ST Reversal)
The core idea behind the Super Trend Reversals indicator is to assess the momentum of automated trading bots (often referred to as 'Supertrend bots') that enter the market during critical turning points. Specifically, the indicator is tuned to identify when the market is nearing bottoms or peaks, just before it shifts direction based on the triggered Supertrend signals. This approach helps traders:
Engage Early : Enter the market as reversal momentum builds up.
Optimize Entries and Exits : Enter under favorable conditions and exit before momentum wanes.
By capturing these reversal points, traders can enhance their trading performance.
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Conclusion
The Swiss Knife indicator serves as a versatile tool that combines multiple technical analysis methods into a single, comprehensive indicator. By assessing various aspects of the market—including trend direction, momentum, volume, and price action—it provides traders with valuable insights to make informed trading decisions.
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Citations
- Divergence Detection Library : Divergence Indicator by DevLucem
- Trendline Drawing Library : Simple Trendlines by HoanGhetti
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Note : This indicator is intended for informational purposes and should be used in conjunction with other analysis techniques. Always perform due diligence before making trading decisions.
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Volume Wave Trend ConfirmationUtility of the Indicator
The core utility of this indicator lies in its ability to utilize volume, a less frequently exploited metric in MACD analysis, providing several strategic advantages:
Trend Confirmation: By focusing on volume, the indicator confirms whether movements in price are backed by significant trading activity. A rising MACD line above the signal line, paired with increasing volume, can confirm the strength of an uptrend. Conversely, if the histogram turns negative while the MACD line falls below the signal line during a price drop, it confirms a robust downtrend.
Early Warning Signals: Changes in the histogram and divergences between the MACD and Signal lines can serve as early warnings of potential reversals or slowdowns in market momentum. For instance, a shrinking histogram in an uptrend might suggest that the upward movement is losing steam.
Market Sentiment: The integration of volume into the MACD framework allows the indicator to provide insights into underlying market sentiment. Higher volumes during price movements indicate stronger conviction among traders, making the trend more reliable.
Indicator Functionality
The "Volume Wave Trend Confirmation" indicator is built on the Moving Average Convergence Divergence (MACD) framework, but with a unique twist: it uses the smoothed moving averages (SMA) of trading volumes instead of price. The indicator calculates two specific SMAs of the volume — a shorter 33-period SMA and a longer 100-period SMA — and computes their difference. This difference is then used as the input for the MACD calculation, with typical parameters set at 12, 26, and a signal line of 9.
MACD Line (Blue): Represents the main line, calculated as the difference between the 12-period and 26-period exponential moving averages (EMA) of the volume difference.
Signal Line (Orange): A 9-period EMA of the MACD line, acting as a trigger for buy or sell signals.
Histogram (Blue/Purple): Measures the distance between the MACD line and the Signal line, colored blue when positive (above the Signal line) and purple when negative (below the Signal line).
Landry Light with Moving AverageLandry Light with Moving Average
Overview:
This Pine Script, titled "Landry Light with Moving Average", visualizes the relationship between price action and a chosen moving average (MA) over time. It helps users easily identify periods where the price stays consistently above or below the moving average, which can be a useful indicator of bullish or bearish trends.
Key Features:
Moving Average Type Selection:
The script allows users to choose between two types of moving averages:
Exponential Moving Average (EMA)
Simple Moving Average (SMA)
This is done via a user input option, enabling traders to tailor the indicator to their preferred analysis method.
Moving Average Length:
Users can set the length of the moving average (default is 21 periods). This allows customization based on the trader's time frame, whether short-term or long-term analysis.
Dynamic Moving Average Color:
The moving average line changes color based on the relationship between the price and the MA:
Green: Price is consistently above the MA (bullish condition).
Red: Price is consistently below the MA (bearish condition).
Blue: Price is crossing or close to the MA (neutral or indecisive condition).
Cumulative Days Above/Below MA:
The script tracks and displays the number of consecutive days the price remains above or below the moving average:
Cumulative Days Above: Shown as a green histogram above the zero line.
Cumulative Days Below: Shown as a red histogram below the zero line.
This feature helps users identify sustained trends or potential reversals.
Real-time Labels:
The script generates dynamic labels that display the count of cumulative days the price has stayed above or below the moving average.
These labels are positioned near the moving average on the chart, providing an easy reference for traders.
How Users Can Benefit:
Trend Identification:
By visually representing how long the price stays above or below a key moving average, traders can identify strong bullish or bearish trends. This can inform entry and exit points.
Visualizing Market Sentiment:
The colored moving average line and histogram help traders quickly assess market sentiment. A prolonged green MA line suggests a strong uptrend, while a prolonged red line indicates a downtrend.
Adaptability:
With customizable moving average types and lengths, the indicator can be tailored to fit various trading strategies, whether for day trading, swing trading, or long-term investing.
Reversal Signals:
A shift from cumulative days above to cumulative days below (or vice versa) can serve as an early signal of a potential market reversal, allowing traders to adjust their positions accordingly.
Simplified Decision-Making:
The combination of visual cues (colors, histograms, and labels) simplifies decision-making, allowing traders to focus on trend strength rather than complex calculations.
Usage:
To use this script:
Add the Indicator to Your Chart:
Select the desired moving average type and length.
The script will plot the moving average, colored by the trend, and display cumulative days above or below it.
Interpret the Signals:
Use the histogram and labels to gauge the strength of the trend.
Monitor color changes in the moving average for potential trend reversals.
Incorporate into Your Strategy:
Combine this indicator with other tools (e.g., volume analysis, RSI) to confirm signals and refine your trading strategy.
This indicator is particularly useful for traders who follow the "Landry Light" concept, emphasizing the importance of price staying above or below a moving average to determine trend strength.
Velocity and Acceleration SignalsThe "Velocity and Acceleration Signals" indicator is a versatile tool designed to provide traders with valuable insights into price momentum and acceleration. By harnessing the power of mathematics and visualization, this indicator helps traders make informed decisions in the fast-paced world of financial markets.
Crunching the Numbers: How It Works
At its core, the indicator relies on two key concepts: velocity and acceleration. Here's how it operates:
-- Velocity Calculation : The indicator takes a step back in time, considering a user-defined historical period (typically around 14 bars). It calculates the velocity of price movements during this period. Velocity represents the speed at which an asset's price is changing and is derived by examining how much the price has moved between bars. Specifically, it computes the rate of change in price over time.
-- Acceleration Calculation : Building upon velocity, the indicator goes one step further and calculates acceleration. Acceleration signifies how quickly the velocity is changing. It quantifies whether the price is speeding up or slowing down in its ascent or descent.
-- Smoothing with EMA : To enhance clarity and reduce noise, the indicator smooths the velocity using an Exponential Moving Average (EMA) with a user-defined length. This smoothed velocity provides a more comprehensive view of the price momentum trend.
Visualizing Market Dynamics
The indicator doesn't just crunch numbers; it also paints a vivid picture of market sentiment:
-- Coloration : The indicator employs a color scheme to visualize market conditions. It uses lime for positive acceleration and fuchsia for negative acceleration. The color green represents positive smoothed velocity, while red denotes negative smoothed velocity. A gray hue signals a neutral or transitional phase.
-- Plotting Velocity and Acceleration : The indicator provides visual representations of both smoothed velocity and acceleration. Smoothed velocity is depicted as columns, with green or red coloring indicating the direction. Acceleration is displayed as a histogram, with lime or fuchsia bars showcasing bullish or bearish momentum. A gray zero line offers a reference point for changes in momentum direction.
-- Strong Up and Strong Down Conditions : For traders seeking distinctive signals, the indicator identifies "Strong Up" and "Strong Down" conditions. A "Strong Up" occurs when smoothed velocity crosses above a user-defined threshold, coupled with positive acceleration. Conversely, a "Strong Down" emerges when smoothed velocity crosses below another threshold, accompanied by negative acceleration. These conditions are marked with prominent triangular shapes.
Unlocking Trading Potential
Now, let's explore how traders can leverage the indicator:
-- Trend Confirmation : Traders can use this indicator to validate the prevailing market trend. A robust smoothed velocity, combined with acceleration in the same direction, can confirm the current trend.
-- Contrarian Signals : Extreme conditions signaled by a strong crossover or crossunder of the smoothed velocity threshold, along with appropriate acceleration, can hint at potential trend reversals.
-- Divergence Analysis : Savvy traders can employ this indicator to identify divergences between price movements and momentum. If the price exhibits higher highs while the indicator shows lower highs (or vice versa), it may signify a weakening or strengthening trend.
Navigating Limitations
As with any trading tool, it's essential to acknowledge the indicator's limitations:
-- Lookback Period : The indicator's effectiveness may vary based on the chosen historical period. Longer periods smooth out fluctuations but may lag in capturing recent changes in sentiment.
-- Threshold Sensitivity : Interpreting threshold crossovers or crossunders can be subjective. Traders should carefully fine-tune these threshold values based on their trading strategy and market conditions.
-- Context Matters : The indicator focuses solely on velocity and acceleration signals and does not incorporate other critical factors such as trading volume, market news, or fundamental analysis. Therefore, traders should use it in conjunction with additional indicators and analysis techniques.
While the primary focus is on trend and momentum analysis, this indicator indirectly provides information about volatility as well. Rapid changes in velocity and acceleration can indicate increasing volatility in the market, which may be of interest to traders looking for opportunities during volatile conditions.
However, this indicator doesn't directly measure volume. To incorporate volume analysis into your trading strategy, you may want to combine this indicator with volume-based indicators or consider other tools specifically designed for volume analysis.
In conclusion, this indicator is a valuable ally for traders looking to decode market dynamics and make data-driven trading decisions. While it offers powerful insights, it's crucial to recognize its limitations and deploy it as part of a comprehensive trading strategy.
Rule of 16 - LowerThe "Rule of 16" is a simple guideline used by traders and investors to estimate the expected annualized volatility of the S&P 500 Index (SPX) based on the level of the CBOE Volatility Index (VIX). The VIX, often referred to as the "fear gauge" or "fear index," measures the market's expectations for future volatility. It is calculated using the implied volatility of a specific set of S&P 500 options.
The Rule of 16 provides a rough approximation of the expected annualized percentage change in the S&P 500 based on the VIX level. Here's how it works:
Find the VIX level: Look up the current value of the VIX. Let's say it's currently at 20.
Apply the Rule of 16: Divide the VIX level by 16. In this example, 20 divided by 16 equals 1.25.
Result: The result of this calculation represents the expected annualized percentage change in the S&P 500. In this case, 1.25% is the estimated annualized volatility.
So, according to the Rule of 16, a VIX level of 20 suggests an expected annualized volatility of approximately 1.25% in the S&P 500.
Here's how you can use the Rule of 16:
Market Sentiment: The VIX is often used as an indicator of market sentiment. When the VIX is high (above its historical average), it suggests that investors expect higher market volatility, indicating potential uncertainty or fear in the markets. Conversely, when the VIX is low, it suggests lower expected volatility and potentially more confidence in the markets.
Risk Management: Traders and investors can use the Rule of 16 to estimate the potential risk associated with their portfolios. For example, if you have a portfolio of S&P 500 stocks and the VIX is at 20, you can use the Rule of 16 to estimate that the annualized volatility of your portfolio may be around 1.25%. This information can help you make decisions about position sizing and risk management.
Option Pricing: Options traders may use the Rule of 16 to get a quick estimate of the implied annualized volatility priced into S&P 500 options. It can help them assess whether options are relatively expensive or cheap based on the VIX level.
It's important to note that the Rule of 16 is a simplification and provides only a rough estimate of expected volatility. Market conditions and the relationship between the VIX and the S&P 500 can change over time. Therefore, it should be used as a guideline rather than a precise forecasting tool. Traders and investors should consider other factors and use additional analysis to make informed decisions.
Normalized Volume Rate of ChangeThis indicator is designed to help traders gauge changes in volume dynamics and identify potential shifts in buying or selling pressure. By normalizing the volume rate of change and comparing it to moving averages of itself, it offers valuable insights into market trends and can assist in making informed trading decisions.
Calculation:
The indicator calculates the Volume Rate of Change (VROC) by measuring the percentage change in volume over a specified length. This calculation provides a relative measure of how quickly the volume is increasing or decreasing. It then normalizes the VROC to a range of -1 to +1 by scaling it based on the highest and lowest values observed within the specified length. This normalization allows for easy comparison of the current VROC value with historical levels, enabling traders to assess the intensity of volume fluctuations.
Interpretation:
The main plot of the indicator displays the normalized VROC values as columns. The color of each column provides valuable information about the relationship between the VROC and the moving averages. Lime-colored columns indicate that the VROC is above both moving averages, suggesting increased buying pressure and potential bullish sentiment. Conversely, fuchsia-colored columns indicate that the VROC is below both moving averages, suggesting increased selling pressure and potential bearish sentiment. Yellow-colored columns indicate that the VROC is between the two moving averages, reflecting a period of consolidation or indecision in the market.
To further enhance interpretation, the indicator includes two moving averages. The Aqua line represents the faster moving average (MA1), and the Orange line represents the slower moving average (MA2). These moving averages provide additional context by smoothing out the VROC values and highlighting the overall trend. Traders can observe the interaction between the moving averages and the VROC to identify potential crossovers and assess the strength of trend reversals or continuations.
Colors:
-- Lime : The lime color is used to represent high volume rate of change above both moving averages. This color indicates a potentially bullish market sentiment, suggesting that buyers are dominant.
-- Fuchsia : The fuchsia color is used to represent low volume rate of change below both moving averages. This color indicates a potentially bearish market sentiment, suggesting that sellers are dominant.
-- Yellow : The yellow color is used to represent the volume rate of change between the two moving averages. This color reflects a transitional phase where neither buyers nor sellers have a clear advantage, signaling a period of consolidation or indecision in the market.
To provide additional visual cues for potential trade signals, the indicator includes lime-colored arrows below the price chart when there is a crossover upwards (MA1 crossing above MA2). This lime arrow indicates a potential bullish signal, suggesting a favorable time to consider long positions. Similarly, fuchsia-colored arrows are displayed above the price chart when there is a crossover downwards (MA1 crossing below MA2), signaling a potential bearish signal and suggesting a favorable time to consider short positions.
Applications:
This indicator offers various applications in trading strategies, including:
-- Trend Identification : By observing the relationship between the normalized VROC and the moving averages, traders can identify potential shifts in market trends. Lime-colored columns above both moving averages indicate a strong bullish trend, suggesting an opportunity to capitalize on upward price movements. Conversely, fuchsia-colored columns below both moving averages indicate a strong bearish trend, suggesting an opportunity to profit from downward price movements. Yellow-colored columns between the moving averages indicate a period of consolidation or uncertainty, signaling a potential trend reversal or continuation.
-- Confirmation of Price Moves : The indicator's ability to reflect volume dynamics in relation to the moving averages can help traders validate price moves. When significant price movements are accompanied by lime-colored columns (indicating high volume rate of change above both moving averages), it adds confirmation to the bullish sentiment. Similarly, fuchsia-colored columns accompanying downward price movements validate the bearish sentiment. This confirmation can enhance traders' confidence in the reliability of price moves.
-- Trade Timing : The indicator's moving average crossovers and the presence of arrows provide timing signals for trade entries and exits. Lime arrows appearing below the price chart signal potential long entry opportunities, indicating a bullish market sentiment. Conversely, fuchsia arrows appearing above the price chart suggest potential short entry opportunities, indicating a bearish market sentiment. These signals can be used in conjunction with other technical analysis tools to improve trade timing and increase the probability of successful trades.
Parameter Adjustments:
Traders can adjust the length of the VROC and the moving averages according to their trading preferences and timeframes. Longer VROC lengths provide a broader view of volume dynamics over an extended period, making it suitable for assessing long-term trends. Shorter VROC lengths offer a more sensitive measure of recent volume changes, making it suitable for shorter-term analysis. Similarly, adjusting the lengths of the moving averages can help adapt the indicator to different market conditions and trading styles.
Limitations:
While the indicator provides valuable insights, it has some limitations that traders should be aware of:
-- False Signals : Like any technical indicator, false signals can occur. During periods of low liquidity or in choppy markets, the indicator may generate misleading signals. It is essential to consider other indicators, price action, and fundamental analysis to confirm the signals before taking any trading actions.
-- Lagging Nature : Moving averages inherently lag behind the price action and volume changes. As a result, there may be a delay in the generation of signals and capturing trend reversals. Traders should exercise patience and avoid solely relying on this indicator for immediate trade decisions. Combining it with other indicators and tools can provide a more comprehensive picture of market conditions.
In conclusion, this indicator offers valuable insights into volume dynamics and trend analysis. By comparing the normalized VROC with moving averages, traders can identify shifts in buying or selling pressure, validate price moves, and improve trade timing. However, it is important to consider its limitations and use it in conjunction with other technical analysis tools to form a well-rounded trading strategy. Additionally, thorough testing, experimentation, and customization of the indicator's parameters are recommended to align it with individual trading preferences and market conditions.
Bias TableOverview
The Bias Table Indicator is a multi-timeframe analysis tool designed to provide a quick sentiment overview across multiple timeframes. It combines signals from Moving Averages (MAs) and Oscillators to determine market bias, helping traders make more informed decisions.
Key Features
✔ Multi-Timeframe Analysis (MTF) – Displays market bias across up to five timeframes.
✔ Customizable Signals – Choose whether bias is based on Moving Averages (MAs), Oscillators, or a combination of both.
✔ Visual Table Format – The indicator presents the bias as a color-coded table in the bottom-right corner of the chart for quick reference.
✔ Adjustable Colors & Display Settings – Users can customize colors for different sentiment states (Strong Buy, Buy, Neutral, Sell, Strong Sell).
How It Works
Bias Calculation: The indicator evaluates market conditions using preset values (which can be replaced with actual logic) to determine sentiment for each timeframe.
Multi-Timeframe Support: The table can display bias from hourly to monthly timeframes, giving traders a broader view of market conditions.
Customizable Signals: Users can filter the table to show bias based only on MAs, Oscillators, or a combination of both.
Interpreting the Table
📊 Timeframes: The leftmost column shows selected timeframes (e.g., 1H, 4H, 1D, 1W, 1M).
📈 Signal Columns:
MAs – Bias based on Moving Averages.
Oscillators – Bias based on momentum indicators like RSI, Stochastics, etc.
All – A combined bias based on both MAs & Oscillators.
🚦 Color-Coded Ratings:
🔵 Strong Buy – High bullish strength.
🔹 Buy – Moderate bullish sentiment.
⚪ Neutral – No clear trend.
🔸 Sell – Moderate bearish sentiment.
🔴 Strong Sell – High bearish strength.
Best Used For:
📈 Trend Confirmation: Validate signals from your primary strategy.
⏳ Multi-Timeframe Analysis: See whether short-term and long-term trends align.
⚡ Quick Sentiment Check: Get a high-level view of market conditions without analyzing multiple indicators separately.
Customization Options:
Select which timeframes to include in the table.
Choose whether to base bias on MAs, Oscillators, or both.
Adjust colors for each signal type.
Candle Emotion Index (CEI)The Candle Emotion Index (CEI) is a comprehensive sentiment analysis indicator that combines three sub-oscillators—Indecision Oscillator, Fear Oscillator, and Greed Oscillator—to provide a single, unified measure of market sentiment. By analyzing bullish, bearish, and indecisive candlestick patterns, the CEI delivers a holistic view of market emotions and helps traders identify key turning points.
How It Works
Indecision Oscillator: Measures market uncertainty using Doji and Spinning Top candlestick patterns. Scores their presence and normalizes the results over a user-defined lookback period.
Fear Oscillator: Measures bearish sentiment using Shooting Star, Hanging Man, and Bearish Engulfing candlestick patterns. Scores their presence and normalizes the results over a user-defined lookback period.
Greed Oscillator: Measures bullish sentiment using Marubozu, Bullish Engulfing, Hammer, and Three White Soldiers candlestick patterns. Scores their presence and normalizes the results over a user-defined lookback period.
Candle Emotion Index Calculation: The CEI is calculated as the average of the Indecision, Fear, and Greed Oscillators: CEI = (Indecision Oscillator + Fear Oscillator + Greed Oscillator) / 3
Plotting: The CEI is plotted as a single line on the chart, representing overall market sentiment.
Reference lines are added to indicate Low Emotion, Neutral, and High Emotion levels.
The Candle Emotion Index provides a unified perspective on market sentiment by blending indecision, fear, and greed into one easy-to-interpret metric. It serves as a powerful tool for traders seeking to gauge market psychology and identify high-probability trading opportunities. For best results, use the CEI in conjunction with other technical indicators to confirm signals.
Uptrick: Market MoodsThe "Uptrick: Market Moods" indicator is an advanced technical analysis tool designed for the TradingView platform. It combines three powerful indicators—Relative Strength Index (RSI), Average True Range (ATR), and Bollinger Bands—into one cohesive framework, aimed at helping traders better understand and interpret market sentiment. By capturing shifts in the emotional climate of the market, it provides a holistic view of market conditions, which can range from calm to stressed or even highly excited. This multi-dimensional analysis tool stands apart from traditional single-indicator approaches by offering a more complete picture of market dynamics, making it a valuable resource for traders looking to anticipate and react to changes in market behavior.
The RSI in the "Uptrick: Market Moods" indicator is used to measure momentum. RSI is an essential component of many technical analysis strategies, and in this tool, it is used to identify potential market extremes. When RSI values are high, they indicate an overbought condition, meaning the market may be approaching a peak. Conversely, low RSI values suggest an oversold condition, signaling that the market could be nearing a bottom. These extremes provide crucial clues about shifts in market sentiment, helping traders gauge whether the current emotional state of the market is likely to result in a reversal. This understanding is pivotal in predicting whether the market is transitioning from calm to stressed or from excited to overbought.
The Average True Range adds another layer to this analysis by offering insights into market volatility. Volatility is a key factor in understanding the mood of the market, as periods of high volatility often reflect high levels of excitement or stress, while low volatility typically indicates a calm, steady market. ATR is calculated based on the range of price movements over a given period, and the higher the value, the more volatile the market is. The "Uptrick: Market Moods" indicator uses ATR to dynamically gauge volatility levels, helping traders understand whether the market is currently moving in a way that aligns with its emotional mood. For example, an increase in ATR accompanied by an RSI value that indicates overbought conditions could suggest that the market is in a highly excited state, with the potential for either strong momentum continuation or a sharp reversal.
Bollinger Bands complement these tools by providing visual cues about price volatility and the range within which the market is likely to move. Bollinger Bands plot two standard deviations away from a simple moving average of the price. This banding technique helps traders visualize how far the price is likely to deviate from its average over a certain period. The "Uptrick: Market Moods" indicator uses Bollinger Bands to establish price boundaries and identify breakout conditions. When prices break above the upper band or below the lower band, it often signals that the market is either highly stressed or excited. This breakout condition serves as a visual representation of the market mood, alerting traders to moments when prices are moving beyond typical ranges and when significant emotional shifts are occurring in the market.
Technically, the "Uptrick: Market Moods" indicator has been developed using TradingView’s Pine Script language, a highly efficient language for building custom indicators. It employs functions like ta.rsi, ta.atr, and ta.sma to perform the necessary calculations. The use of these built-in functions ensures that the calculations are both accurate and efficient, allowing the indicator to operate in real-time without lagging, even in volatile market conditions. The ta.rsi function is used to compute the Relative Strength Index, while ta.atr calculates the Average True Range, and ta.sma is used to smooth out price data for the Bollinger Bands. These functions are applied dynamically within the script, allowing the "Uptrick: Market Moods" indicator to respond to changes in market conditions in real time.
The user interface of the "Uptrick: Market Moods" indicator is designed to provide a visually intuitive experience. The market mood is color-coded on the chart, making it easy for traders to identify whether the market is calm, stressed, or excited at a glance. This feature is especially useful for traders who need to make quick decisions in fast-moving markets. Additionally, the indicator includes an interactive table that updates in real-time, showing the most recent mood state and its frequency. This provides valuable statistical insights into market behavior over specific time frames, helping traders track the dominant emotional state of the market. Whether the market is in a prolonged calm state or rapidly transitioning through moods, this real-time feedback offers actionable data that can help traders adjust their strategies accordingly.
The RSI component of the "Uptrick: Market Moods" indicator helps detect the speed and direction of price movements, offering insight into whether the market is approaching extreme conditions. By providing signals based on overbought and oversold levels, the RSI helps traders decide whether to enter or exit positions. The ATR element acts as a volatility gauge, dynamically adjusting traders’ expectations in response to changes in market volatility. Meanwhile, the Bollinger Bands help identify trends and potential breakout conditions, serving as an additional confirmation tool that highlights when the price has moved beyond normal boundaries, indicating heightened market excitement or stress.
Despite the robust capabilities of the "Uptrick: Market Moods" indicator, it does have limitations. In markets affected by sudden shifts, such as those driven by major news events or external economic factors, the indicator’s performance may not always be reliable. These external factors can cause rapid mood swings that are difficult for any technical analysis tool to fully anticipate. Additionally, the indicator’s complexity may pose a learning curve for novice traders, particularly those who are unfamiliar with the concepts of RSI, ATR, and Bollinger Bands. However, with practice, traders can become proficient in using the tool to its full potential, leveraging the insights it provides to better navigate market shifts.
For traders seeking a deeper understanding of market sentiment, the "Uptrick: Market Moods" indicator is an invaluable resource. It is recommended for those dealing with medium to high volatility instruments, where understanding emotional shifts can offer a strategic advantage. While it can be used on its own, integrating it with other forms of analysis, such as fundamental analysis and additional technical indicators, can enhance its effectiveness. By confirming signals with other tools, traders can reduce the likelihood of false signals and improve their overall trading strategy.
To further enhance the accuracy of the "Uptrick: Market Moods" indicator, it can be integrated with volume-based tools like Volume Profile or On-Balance Volume (OBV). This combination allows traders to confirm the moods identified by the indicator with volume data, providing additional confirmation of market sentiment. For example, when the market is in an excited mood, an increase in trading volume could reinforce the reliability of that signal. Conversely, if the market is stressed but volume remains low, traders may want to proceed with caution. Using multiple indicators together creates a more comprehensive trading approach, helping traders better manage risk and make informed decisions based on multiple data points.
In conclusion, the "Uptrick: Market Moods" indicator is a powerful and unique addition to the suite of technical analysis tools available on TradingView. It provides traders with a multi-dimensional view of market sentiment by combining the analytical strengths of RSI, ATR, and Bollinger Bands into a single tool. Its ability to capture and interpret the emotional mood of the market makes it an essential tool for traders seeking to gain an edge in understanding market behavior. While the indicator has certain limitations, particularly in rapidly shifting markets, its ability to provide real-time insights into market sentiment is a valuable asset for traders of all experience levels. Used in conjunction with other tools and sound trading practices, the "Uptrick: Market Moods" indicator offers a comprehensive solution for navigating the complexities of financial markets.
