Qualitative and Quantitative Candlestick Score [CHE]

28 Sep

Qualitative and Quantitative Candlestick Score [CHE]

Overview
The Qualitative and Quantitative Candlestick Score [CHE] is a powerful indicator for TradingView that combines both qualitative and quantitative analyses of candlestick patterns. This indicator provides traders with a comprehensive assessment of market conditions to make informed trading decisions.

Key Features
- Quantitative Analysis: Calculates a quantitative score based on the price movement of each candle.
- Qualitative Analysis: Evaluates candles based on body size, wick size, trend, and trading volume.
- Cumulative Scores: Displays cumulative green (bullish) and red (bearish) scores over a defined period.
- Trend Analysis: Identifies trend direction, strength, and provides trading recommendations (Long/Short).
- Customizable Settings: Adjust parameters for time periods, thresholds, and volume analysis.

Settings and Customizations

1. Time Period Settings:
- Period: Number of periods to calculate moving averages and cumulative scores (Default: 14).

2. Qualitative Evaluation:
- Body Size Threshold (%): Minimum size of the candle body to be considered significant (Default: 0.5%).
- Wick Size Threshold (%): Maximum size of the wicks to be considered minimal (Default: 0.3%).

3. Volume Settings:
- Include Volume in Evaluation: Whether to include trading volume in the qualitative score (Default: Enabled).
- Volume MA Period: Number of periods to calculate the moving average of volume (Default: 14).

4. Trend Settings:
- Moving Average Length: Number of periods for the Simple Moving Average used to determine the trend (Default: 50).

Calculations and Visualizations

- Quantitative Score: Difference between the closing and opening price, normalized to the opening price.
- Qualitative Score: Evaluation based on body size, wick size, trend, and volume.
- Cumulative Scores: Average of green and red scores over the defined period.
- Score Difference: Difference between cumulative green and red scores to determine trend direction.
- Trend Analysis Table: Displays trend direction, trend strength, and trading recommendation in an easy-to-read table.

Plotting and Display

- Cumulative Scores: Displays cumulative green and red scores in green and red colors.
- Score Difference: Blue line chart to visualize the difference between green and red scores.
- Zero Line: Horizontal gray line as a reference point.
- Trend Analysis Table: Table in the top right of the chart showing current trend direction, strength, and trading recommendation.

Use Cases

- Trend Identification: Use the score difference and trend analysis table to quickly assess the current market sentiment.
- Trading Recommendations: Based on the table, decide whether a long or short entry is appropriate.
- Volume Analysis: Including volume helps to better understand the strength of a trend.

Benefits

- Comprehensive Analysis: Combines quantitative and qualitative methods for a deeper market analysis.
- User-Friendly: Easy parameter adjustments allow for personalized use.
- Visually Appealing: Clear charts and tables facilitate data interpretation.
- Flexible: Adaptable to various trading strategies and timeframes.

Installation and Usage

1. Installation:
- Copy the provided Pine Script code.
- Go to TradingView and open the Pine Script Editor.
- Paste the code and save the script.
- Add the indicator to your chart.

2. Customization:
- Adjust the parameters according to your trading preferences.
- Monitor the cumulative scores and the trend analysis table for trading decisions.

Conclusion
The Qualitative and Quantitative Candlestick Score [CHE] offers a comprehensive analysis of market conditions by combining quantitative and qualitative evaluation methods. With its user-friendly settings and clear visualizations, this indicator is a valuable tool for traders seeking informed and precise trading decisions.

Best regards and happy trading

Chervolino


Developed by: Chervolino

Version: 1.0

License: Free to use and customize on TradingView.

For any questions or feedback, feel free to contact me through the TradingView community.



Note: This indicator is a tool to assist with trading decisions and does not replace professional financial advice. Use it responsibly and thoroughly test it before incorporating it into your trading strategies.