ATR StopThe "ATR Stop" indicator is designed to provide traders with insights into potential stop levels based on Average True Range (ATR) calculations specifically tailored for profitable (green candles) and unprofitable (red candles) price movements. This tool aims to assist traders in identifying potential stop levels that adjust dynamically based on the volatility of distinct market conditions.
The indicator functions by calculating two types of ATR: one for profitable movements and the other for unprofitable movements. The Average True Range is calculated separately for green and red candles, allowing users to assess potential stop levels more accurately based on the nature of price movements.
Key features of the "ATR Stop" indicator include:
Custom ATR Calculation: It calculates the ATR for profitable (green) and unprofitable (red) movements separately, considering only specific candle types based on their closing price relative to their opening price.
Dynamic Multiplier: Users can adjust the multiplier to fine-tune the sensitivity of the ATR-based stop levels, accommodating different risk preferences and market conditions.
Clear Visualization: The indicator plots the ATR levels for profitable (green) and unprofitable (red) movements one candle ahead on the chart, providing a visual representation of potential stop levels.
To use the indicator effectively, traders can adjust the ATR length and multiplier parameters based on their trading strategies and risk management preferences. By considering distinct price movements, this tool can assist in setting more informed stop levels in varying market conditions.
Please note that while the "ATR Stop" indicator can be a valuable addition to a trader's toolbox, it should be used in conjunction with other technical analysis tools and risk management strategies to make well-informed trading decisions.
Pita dan Kanal
No Wick Bull/Bear Candlesticks with Arrow premiumNo Wick Bull/Bear Candlesticks with Arrow premium
This script is for a custom trading indicator called "No Wick Bull/Bear Candlesticks with Arrow premium" developed by ClearTradingMind. It is designed for use with trading platforms that support scripting, such as TradingView. This indicator combines several technical analysis tools to help traders identify potential buy and sell signals in a financial market.
Key Components of the Indicator:
Moving Average (MA): The script allows users to select from various types of moving averages (SMA, EMA, HMA, etc.), which smooth out price data to identify trends. Users can set the length and type of the moving average.
Upper and Lower Bands: These bands are set at a specified deviation percentage above and below the chosen moving average. They help in identifying overbought and oversold conditions.
No Wick Bull/Bear Candlestick Identification:
Bullish Condition: A bullish candlestick is identified when the closing price is higher than the opening price, the low equals the open, and the close is above the moving average.
Bearish Condition: A bearish candlestick is identified when the closing price is lower than the opening price, the high equals the open, and the close is below the moving average.
No Wick: These conditions also imply that the candlesticks have no wicks, suggesting strong buying or selling pressure.
Arrows for Trading Signals:
No lower wick bull bar
No upper wick bear bar
When a bullish condition is met, a green upward-pointing triangle is plotted below the candlestick, indicating a potential buy signal.
When a bearish condition is met, a red downward-pointing triangle is plotted above the candlestick, indicating a potential sell signal.
EMA 20: An additional Exponential Moving Average with a length of 20 periods is plotted for further trend analysis.
Background Color Changes: The script changes the background color to blue if the EMA 20 is above the upper band, and to red if it is below the lower band, providing visual cues about the market trend.
How It Works:
Traders can input their preferences for the moving average type and length, source of the MA (like closing prices), and the deviation percentage for the bands.
The script then calculates the moving average, upper and lower bands, and checks for bullish or bearish candlestick conditions without wicks.
When such conditions are met, it plots arrows to suggest buy or sell signals.
The EMA 20 and background color changes offer additional trend information.
Usage:
This indicator is particularly useful in markets with clear trends. The no wick bull/bear candlesticks indicate strong buying or selling pressure, and the arrows provide clear visual signals for traders to consider entering or exiting positions. As with all trading indicators, it's recommended to use this tool in conjunction with other forms of analysis to confirm trading signals.
Cloud Channel Signals Indicator [Quantigenics]The Cloud Channel Signals script is a key element of the Cloud Channel Signal System. It primarily focuses on identifying breakout and reversal trades through a sophisticated cloud channel overlay. The script, designed for overlay on the price portion of charts, displays a “cloud-like” channel that signals potential breakout and reversal points around the candles/bars, offering insights into price movements, volatility, and potential support or resistance zones at the outer bands of the channel.
As with all of our scripts, the "Cloud Channel Signals" script, is designed to work on ANY symbol and time frame. The input parameters can be adjusted to fit your specific trading style.
Technical Composition :
Cloud Channel Construction : The Cloud Channel Signals Script is characterized by its innovative Cloud Channel, a proprietary formulation that advances beyond traditional channel calculations. This channel is not a mere adaptation of Bollinger Bands or Donchian Channels; it sets itself apart through a complex blend of calculations. While incorporating elements like standard deviation and high/low price ranges, it notably introduces EMA-based adjustments and integrates intricate mathematical models. This sophisticated algorithmic approach results in a channel that adeptly marks price extremes and dynamically adapts to market volatility and trend shifts. Enhanced by advanced statistical methods, the Cloud Channel offers nuanced insights into market behavior. Its configuration is based on specific range calculations derived from price fluctuations over a defined period, paired with an evolved standard deviation method. This results in a multifaceted analytical tool that surpasses typical channel indicators in depth and sophistication, providing traders with a comprehensive, nuanced view of support and resistance areas.
Signal Generation Mechanism :
> Breakout Signals :
The script identifies breakout signals by assessing price crossover relative to a dynamically constructed channel. This channel is derived from a blend of moving averages and price extremes over a specified period. Oscillator crossovers aid in confirming breakout signals. These crossovers are determined by comparing the oscillator line, calculated as a difference between a transformed moving average and a kernel estimation, with a signal line derived from an exponential moving average of the oscillator.
> Reversal Signals :
Reversal signals are generated through mathematical analysis of price proximity to the channel's edges, which are calculated using a combination of EMA (Exponential Moving Average) values and the highest/lowest price points within a given time frame. The oscillator's role in identifying reversals involves assessing its value relative to its historical range, which is dynamically adjusted based on market conditions.
Oscillator Dynamics :
The oscillator is constructed using a combination of rational quadratic and Gaussian kernel functions applied to close prices. The length parameter of the oscillator controls the window of these calculations, impacting its responsiveness. The dynamic level adjustment in the oscillator is based on a calculated average of its peak and trough values over a specified period, offering adaptive sensitivity.
Channel Gradient Smoothness :
The gradient smoothness of the channel is a function of the variance between the channel's upper and lower bounds. This is visually represented through color intensity changes, reflecting the level of volatility and market momentum.
Trend Bias Assessment :
Trend Bias is calculated using a combination of high/low averages and smoothed price data. This involves taking the average of the highest and lowest prices over a specified length, then applying an exponential moving average to this average for trend direction assessment. This mathematical assessment of trend direction complements the breakout and reversal signals by aligning them with the prevailing market trend.
How to Use the Cloud Channel Signals System :
Usage Considerations:
The script must be configured with precision to ensure it aligns with the trader’s strategy. This involves meticulous setting of channel lengths, oscillator parameters, and trend bias length. For effective application, it’s essential to synchronize the input parameters with the companion "Cloud Channel Indicators" script, ensuring a unified analytical perspective. The option to choose real-time vs. post-bar-closure signal generation offers flexibility in trading styles, catering to both aggressive and conservative trading approaches.
Integration with Cloud Channel Indicators script :
> Use the "Cloud Channel Signals" script alongside the "Cloud Channel Indicators" script for comprehensive market analysis. Ensure identical input parameters across both scripts for consistency.
> Note: The lower indicators are from the 'Cloud Channel Indicators' script, complementing the 'Cloud Channel Signals' script seen here, which generates the 'cloud' and signals on the price chart.
> The 'Cloud Channel Indicators” script can be found here:
Understanding On-Chart Signals :
The script displays entry signals directly on the chart, offering visual cues for both breakout and reversal trading opportunities. Traders can toggle the display of these signals for either breakout or reversal trades, allowing customization based on their trading strategy.
Identifying Entry Points :
> Breakout Trades : Enable 'Show Break Out Trades' to view signals where the price crosses the cloud channel, coupled with oscillator crossovers. A bullish breakout is indicated when the price crosses above the top channel, and a bearish breakout when it crosses below the bottom channel.
> Reversal Trades : Activate 'Show Reversal Trades' to identify potential reversal points. These are highlighted when the price rebounds from the cloud channel's edges, supported by oscillator and trend bias indicators.
Setting Stop Losses Using Outer Bands : Employ the outer bands of the cloud channel as dynamic stop-loss levels. Position stop losses below the lower band for long trades and above the upper band for short trades, adjusting as the bands shift with market conditions.
Executing and Managing Trades : Enter trades based on the script’s breakout or reversal signals, in line with your risk management rules.
Adjust stop-loss levels : Adjust stop-loss levels according to the outer band movements and exit the trade based on reversal signals or profit targets determined by significant support or resistance levels indicated by the cloud channel.
Customizable Alerts for Trading Efficiency :
Set up TradingView alerts to notify you of crucial trading signals like breakout or reversal opportunities, or when the price reaches critical levels defined by the cloud channel.
Adapting Strategy to Market Dynamics:
Input Parameter Settings :
Important Usage Guidance : For seamless integration with its counterpart, the "Cloud Channel Indicators" script, it's crucial to align the input parameter settings across both scripts. When adjusting values from their defaults, ensure that corresponding parameters in both scripts are identically set. This synchronization is key to achieving a cohesive and accurate representation on your charts.
Intra-Bar Order Generation (IntraBar) : Allows traders to choose if signals are generated within the current bar (real-time) or after the bar closes, providing flexibility in signal timing.
Show Break Out/Reversal Trades (BreakOutTrades, ReversalTrades) : Enables traders to toggle the visibility of specific trade types - breakout or reversal trades - on the chart.
Show Text Labels (ShowSignalLabels) : Option to display text labels for signals, enhancing the clarity and readability of the chart.
Inner/Outer Channel Length (InnerChannelLength, OutterChannelLength) : Sets the calculation periods for the inner and outer channels, affecting the sensitivity and responsiveness of the cloud channel.
Oscillator Length (OscillatorLength) : Determines the length for the precision oscillator calculation, impacting its sensitivity to market movements.
Top/Bottom Level (TopLevel, BottomLevel) : Establishes the upper and lower bounds for the oscillator, used to identify overbought and oversold conditions.
Use Dynamic Level (Dynamic_Level_OnOff) : Provides an option to use dynamic levels in the oscillator, for a more adaptive and responsive analysis.
Trend Bias Length (TrendBiasLength) : Adjusts the period for the Trend Bias calculation, crucial for understanding the overall market trend.
Top/Bottom Channel Color (TopChannelColor, BottomChannelColor) : Customization options for the color of the top and bottom channels.
Smoothness of The Gradient (Smoothness) : Controls the smoothness level of the channel's gradient, allowing for visual customization.
Alert Setting Guidance :
The script includes a versatile alert system for notifying traders of critical trading signals:
Breakout and Reversal Trade Alerts : These alerts are activated for breakout and reversal signals based on the script’s analysis, which can be crucial for timely entries and exits.
Custom Alert Conditions : Traders can set up alerts in TradingView’s system to get notified under specific conditions, like when a new signal (arrow up/down) appears on the chart, tailoring the alerts to their trading strategies.
The "Cloud Channel Signals " script offers a valuable tool for traders looking to capitalize on breakout and reversal opportunities. Its advanced channel and oscillator settings, combined with customizable alert options, make it a valuable addition to any trader's arsenal. Users are encouraged to explore these settings to fully leverage the script's capabilities, keeping in mind that trading involves risks and past performance does not guarantee future results. For optimal results, this script is designed to be used in conjunction with the "Cloud Channel Indicators .
You can see the “Author’s instructions" below to get immediate access to Cloud Channel Signals Indicators & the rest of the “Quantigenics Premium Indicator Suite”.
Cloud Channel Indicators [Quantigenics]The "Cloud Channel Indicators " script forms an integral part of a sophisticated trading approach, offering in-depth market analysis through its High Precision Oscillator and Trend Bias Indicator. These components provide traders with nuanced insights into market momentum and overall trend direction, making them invaluable for informed trading decisions. This script is further enhanced when used alongside its intended counterpart, the "Cloud Channel Signals " script, which displays the “cloud” indicator and Buy/Sell signals on charts. This combination creates a comprehensive and integrated trading system, suitable for various market conditions and trading styles.
The "Cloud Channel Indicators” script is a detailed trading indicator that merges advanced data analysis techniques with user-customizable features. It combines oscillators, dynamic levels, trend bias, and color settings, allowing users to tailor its functionality and visual representation. Unique to this script is its use of Gaussian and Rational Quadratic kernel estimates for data smoothing, enhancing the calculation of oscillator values. It dynamically adjusts OverBought and OverSold levels based on the oscillator's behavior and leverages array operations for tracking market peaks and lows. The script also integrates a Trend Bias indicator using highest highs, lowest lows, and exponential moving averages (EMAs), all of which are displayed through a range of plotting and visual elements. This synthesis of sophisticated techniques provides a multifaceted tool for technical market analysis.
As with all of our scripts, the "Cloud Channel Indicators"script, is designed to work on ANY symbol and time frame. The input parameters can be adjusted to fit your specific trading style.
Technical Composition :
High Precision Oscillator : This component focuses on capturing market momentum and identifying critical turning points. It uses advanced kernel-based estimations combined with a unique oscillator line and signal line setup to pinpoint market extremes, offering traders insights into potential entry and exit points.
Trend Bias Indicator : This indicator offers a broad view of the market's overall direction. It employs a combination of high and low-price averages, smoothed with an EMA, to indicate the prevailing market trend. The indicator is essential for verifying and complementing the insights provided by the High Precision Oscillator, ensuring that trades align with the broader market trend.
How to Use :
Integration with "Cloud Channel Signals" Script : For optimal use, synchronize this script with the "Cloud Channel Signals " script. This is essential for the script to provide meaningful analysis and insights.
Please note: The signals and cloud indicator displayed in this screenshot are part of the companion 'Cloud Channel Signals' script, which is not included in the 'Cloud Channel Indicators' script you are currently viewing.
The 'Cloud Channel Signals' script can be found here:
Analyzing Market Momentum with High Precision Oscillator : Utilize the High Precision Oscillator to identify market momentum and critical turning points. Look for extreme values on the oscillator line and signal line to pinpoint potential entry and exit points.
Understanding Market Trend with Trend Bias Indicator : Use the Trend Bias Indicator to get a broad view of the market's overall direction. This indicator helps confirm the insights provided by the High Precision Oscillator, aligning trades with the market trend.
Customizing Indicator Settings : Tailor the script to your trading style by adjusting the input parameters such as Oscillator Length, Trend Bias Length, and levels for top and bottom bounds. Ensure these settings match those in the "Cloud Channel Signals" script.
Interpreting Oscillator and Trend Bias : Monitor the High Precision Oscillator for overbought or oversold conditions. Use the Trend Bias Indicator to determine if the market is in an uptrend or downtrend and align your trades accordingly.
Using Dynamic Levels : Activate the Dynamic Level feature for an adaptive analysis that adjusts to current market conditions.
Visual Analysis : Pay attention to the color changes and histogram patterns in the script's visualization to quickly assess market conditions and momentum.
Risk Management : Combine these insights with proper risk management strategies, adjusting positions based on oscillator extremes and trend bias indications. Additionally, further risk management and stop loss levels are provided when used with the "Cloud Channel Signals” script (see description for "Cloud Channel Signals”)
Input Parameter Settings :
Important Usage Guidance : For seamless integration with its counterpart, the "Cloud Channel Signals" script, it's crucial to align the input parameter settings across both scripts. When adjusting values from their defaults, ensure that corresponding parameters in both scripts are identically set. This synchronization is key to achieving a cohesive and accurate representation on your charts.
Show Indicator Name (ShowName) : Toggles the display of the indicator names on the chart.
Show Oscillator Indicator (ShowOscillator) : Controls the visibility of the High Precision Oscillator.
Oscillator Length (OscillatorLength) : Sets the period for the oscillator's kernel estimation.
Top Level and Bottom Level (TopLevel, BottomLevel) : Defines the upper and lower bounds for the oscillator, indicating overbought and oversold conditions.
Dynamic Level Toggle (Dynamic_Level_OnOff) : Enables the use of dynamic levels for more adaptive analysis.
Show Trend Bias Indicator (ShowTrendBias) : Toggles the display of the Trend Bias Indicator.
Trend Bias Length (TrendBiasLength) : Adjusts the calculation period for the Trend Bias Indicator.
Show Peak/Valley EMA Lines (ShowEmaLines) : Controls the display of additional EMA lines for peak and valley analysis.
Color Customization : Offers options to customize the color of various elements like Top Level, Bottom Level, Zero Line, and more. These parameters provide traders with extensive control and customization of the indicators, allowing for tailored analysis and application in various market conditions and trading styles.
The "Cloud Channel Indicators " script is a versatile and advanced tool designed for traders who seek a deep understanding of market trends and momentum. Its combination of the High Precision Oscillator and Trend Bias Indicator offers a multi-dimensional view of market behavior. The scripts was designed and intended to be used with the "Cloud Channel Signals " script, which complements the "Cloud Channel Indicators" by showing the “cloud” indicator as well as Buy/Sell signals on the charts.
Traders are advised to familiarize themselves with the functionalities of these indicators for effective application in their trading strategies. As with all trading tools, remember that trading involves risk and past performance is not indicative of future results.
You can see the “Author’s instructions" below to get immediate access to Cloud Channel Indicators & the rest of the “Quantigenics Premium Indicator Suite.
NAS100 - 5 Minute Opening Range with EMAsThis indicator is designed for traders who focus on the opening range breakout strategy and use EMAs as part of their trading decisions. The script markes the first 5 min opening candle and generates Buy and Sell signals calculating EMA.
Basic features are :
User Inputs: Allows users to enable/disable alerts and choose to display Exponential Moving Averages (EMAs) for 5, 20, and 50 periods.
Opening Range Calculation: It calculates the first five minutes of the trading day, adjusting for different chart timeframes.
New Day Detection: Determines if the current bar is the first bar of a new day.
Data Storage: Utilizes arrays to store opening range highs, lows, start bars, and last bars for the last five days.
Daily Updates: Updates the stored data at the start of each new day, maintaining data for only the last five days.
Opening Range Plotting: Plots the opening ranges (high and low) for the past five days, with special plotting and filling for the current day.
EMA Calculation and Plotting: Calculates and plots EMAs (5, 20, and 50 periods) if enabled.
Alert Conditions: Sets up conditions for alerts when the price crosses above or below the current day's opening range.
Signal Generation: Generates buy and sell signals based on the relationship of the closing price to the opening range and the position of EMA5 relative to EMA50.
Signal Plotting: Plots buy and sell signals as triangles on the chart.
William's Magic GridHere is an accurate and adaptive SR grid.
Best settings:
Zones: Large
Turn off Daily High and Low lines
5m TF
Steps:
1. Wait for price to get in a zone. Use break of structure and pullbacks to determine trend and safe entry.
2. Enter trade. Set TP a little before next zone. Set SL as desired.
3. Enjoy profits.
More edits to come.
Moving Fib Based on Donchain/Pivot/BBThis script's purpose is to provide the user with an indicator that automatically plots Fibonacci levels. The user has three main options for determining the Fibonacci's high and low. This indicator offers an ample number of settings, making it a modular Fibonacci overlay.
The default setting is based on Donchian high and low.
Another option is to base the high and low on TradingView's Pivot indicator.
The last option is to determine Fibonacci levels based on Bollinger Bands.
Add up to 16 Fib levels with customizable settings, plot them on a log scale, and explore various other settings to personalize the Fib overlay.
This indicator can be utilized for trading momentum or mean reversion strategies
Bolingger Bands + Inside Bar BoxesBollinger Bands are a technical analysis tool consist of three bands—an upper, middle, and lower band—that are used to spotlight extreme short-term prices in a security. The upper band represents overbought territory, while the lower band can show you when a security is oversold. Most technicians will use Bollinger Bands® in conjunction with other analysis tools to get a better picture of the current state of a market or security.
An Inside Bar is a two-bar price action trading strategy in which the inside bar is smaller and within the high to low range of the prior bar. Inside bars show a period of consolidation in a market. They often form following a strong move in a market, as it ‘pauses’ to consolidate before making its next move. However, they can also form at market turning points and act as reversal signals from key support or resistance levels.
Donchian Quest Research// =================================
Trend following strategy.
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Strategy uses two channels. One channel - for opening trades. Second channel - for closing.
Channel is similar to Donchian channel, but uses Close prices (not High/Low). That helps don't react to wicks of volatile candles (“stop hunting”). In most cases openings occur earlier than in Donchian channel. Closings occur only for real breakout.
// =================================
Strategy waits for beginning of trend - when price breakout of channel. Default length of both channels = 50 candles.
Conditions of trading:
- Open Long: If last Close = max Close for 50 closes.
- Close Long: If last Close = min Close for 50 closes.
- Open Short: If last Close = min Close for 50 closes.
- Close Short: If last Close = max Close for 50 closes.
// =================================
Color of lines:
- black - channel for opening trade.
- red - channel for closing trade.
- yellow - entry price.
- fuchsia - stoploss and breakeven.
- vertical green - go Long.
- vertical red - go Short.
- vertical gray - close in end, don't trade anymore.
// =================================
Order size calculated with ATR and volatility.
You can't trade 1 contract in BTC and 1 contract in XRP - for example. They have different price and volatility, so 1 contract BTC not equal 1 contract XRP.
Script uses universal calculation for every market. It is based on:
- Risk - USD sum you ready to loss in one trade. It calculated as percent of Equity.
- ATR indicator - measurement of volatility.
With default setting your stoploss = 0.5 percent of equity:
- If initial capital is 1000 USD and used parameter "Permit stop" - loss will be 5 USD (0.5 % of equity).
- If your Equity rises to 2000 USD and used parameter "Permit stop"- loss will be 10 USD (0.5 % of Equity).
// =================================
This Risk works only if you enable “Permit stop” parameter in Settings.
If this parameter disabled - strategy works as reversal strategy:
⁃ If close Long - channel border works as stoploss and momentarily go Short.
⁃ If close Short - channel border works as stoploss and momentarily go Long.
Channel borders changed dynamically. So sometime your loss will be greater than ‘Risk %’. Sometime - less than ‘Risk %’.
If this parameter enabled - maximum loss always equal to 'Risk %'. This parameter also include breakeven: if profit % = Risk %, then move stoploss to entry price.
// =================================
Like all trend following strategies - it works only in trend conditions. If no trend - slowly bleeding. There is no special additional indicator to filter trend/notrend. You need to trade every signal of strategy.
Strategy gives many losses:
⁃ 30 % of trades will close with profit.
⁃ 70 % of trades will close with loss.
⁃ But profit from 30% will be much greater than loss from 70 %.
Your task - patiently wait for it and don't use risky setting for position sizing.
// =================================
Recommended timeframe - Daily.
// =================================
Trend can vary in lengths. Selecting length of channels determine which trend you will be hunting:
⁃ 20/10 - from several days to several weeks.
⁃ 20/20 or 50/20 - from several weeks to several months.
⁃ 50/50 or 100/50 or 100/100 - from several months to several years.
// =================================
Inputs (Settings):
- Length: length of channel for trade opening/closing. You can choose 20/10, 20/20, 50/20, 50/50, 100/50, 100/100. Default value: 50/50.
- Permit Long / Permit short: Longs are most profitable for this strategy. You can disable Shorts and enable Longs only. Default value: permit all directions.
- Risk % of Equity: for position sizing used Equity percent. Don't use values greater than 5 % - it's risky. Default value: 0.5%.
⁃ ATR multiplier: this multiplier moves stoploss up or down. Big multiplier = small size of order, small profit, stoploss far from entry, low chance of stoploss. Small multiplier = big size of order, big profit, stop near entry, high chance of stoploss. Default value: 2.
- ATR length: number of candles to calculate ATR indicator. It used for order size and stoploss. Default value: 20.
- Close in end - to close active trade in the end (and don't trade anymore) or leave it open. You can see difference in Strategy Tester. Default value: don’t close.
- Permit stop: use stop or go reversal. Default value: without stop, reversal strategy.
// =================================
Properties (Settings):
- Initial capital - 1000 USD.
- Script don't uses 'Order size' - you need to change 'Risk %' in Inputs instead.
- Script don't uses 'Pyramiding'.
- 'Commission' 0.055 % and 'Slippage' 0 - this parameters are for crypto exchanges with perpetual contracts (for example Bybit). If use on other markets - set it accordingly to your exchange parameters.
// =================================
Big dataset used for chart - 'BITCOIN ALL TIME HISTORY INDEX'. It gives enough trades to understand logic of script. It have several good trends.
// =================================
WinningWave By Sercan V1Winningwave is a hurricane algorithm that works in all time frames and all transactions (stock exchange-coin), is too comprehensive to be explained in detail and includes many strategies.
To explain briefly; It is a layered oracle algorithm that gives signals by filtering the formations (Normal and Harmonic formations) created by multiple account movements containing many calculations and algorithms, based on the instantaneous momentum of the price and the overbought or oversold levels in a certain time period. Of course, formations refer to situations in which price movements occur in a certain order in financial markets. These patterns are specific patterns seen on the price chart and can often provide clues about future movements of prices. For example; Reverse Shoulder, Head and Shoulder, Symmetrical Triangle etc. Dozens of formation formation conditions and targets were filtered and made suitable for signaling. It also creates bands using YDK3 with the channel algorithm it contains. This band is usually calculated using the standard deviation method to measure price movements and indicate a specific deviation. The upper and lower bands obtained as a result of standard deviation calculations are drawn on the price chart. After a certain band is created, automatic expansion is carried out in order to predict possible movements of future prices. Additionally, Winningwave includes Ema calculations and has identified stop points after the main entry signal to help you in case you miss the main exit signal or choose a different strategy.
STRATEGY 1: As I mentioned in the general statement, the signals that emerged after many formations were filtered in 2 stages (SMI and CCI values served as filters for the formations) and the false signal rate was reduced to a minimum. You can combine signals into your own strategy using oscillators and tactics you trust.
It is important to remember that no indicator or tactic works 100% accurately. That's why filters and combinations are the right methods for you.
STRATEGY 2: Channel programs often create bands using the standard deviation method to indicate price movements and a specific deviation. Standard deviations are a measure of how far prices are generally from the mean. Channel programs draw price charts by creating upper and lower bands using these standard deviation values.
These bands can become very narrow depending on the playability of the price and the strength of the trends. In this way it can change the normal range of movement of prices and indicate potential overbought or oversold.
Once the channel is created, it is automatically expanded and gives us some clues about the direction of price movements. This expansion automatically signals the change according to the price movements of the bands. This feature becomes a predictive tool to predict price movements on the indicator.
Thus, using channel updates and standard deviation, the bands show the normal range of prices and these bands expand or contract dynamically, giving an idea about possible changes in prices. This can help investors gain insight into potential trend reversals or overbought or oversold prices.
In channel band strategy . It is a second strategy in which we calculate the profit rate with the most logical calculations when the prices touch the channel bottoms and channel tops and move up or down.
STRATEGY 3: We aimed to create a stop zone by blending the most appropriate ema values with buy signals. In some cases where you don't want to follow the signals or are confident in the transaction (written to filter out successive sell signals where price action generally rises without correction), it has created a more reliable stopping point for your trading strategy. It gives you a stopping point.
*** Calculations and mathematical settings will be in the menu. For healthy signals and filters, do not play with the numbers. For your personal use, color options or On-Off settings of each feature are available in the menu.
[imba]lance algo🟩 INTRODUCTION
Hello, everyone!
Please take the time to review this description and source code to utilize this script to its fullest potential.
🟩 CONCEPTS
This is a trend indicator. The trend is the 0.5 fibonacci level for a certain period of time.
A trend change occurs when at least one candle closes above the level of 0.236 (for long) or below 0.786 (for short). Also it has massive amout of settings and features more about this below.
With good settings, the indicator works great on any market and any time frame!
A distinctive feature of this indicator is its backtest panel. With which you can dynamically view the results of setting up a strategy such as profit, what the deposit size is, etc.
Please note that the profit is indicated as a percentage of the initial deposit. It is also worth considering that all profit calculations are based on the risk % setting.
🟩 FEATURES
First, I want to show you what you see on the chart. And I’ll show you everything closer and in more detail.
1. Position
2. Statistic panel
3. Backtest panel
Indicator settings:
Let's go in order:
1. Strategies
This setting is responsible for loading saved strategies. There are only two preset settings, MANUAL and UNIVERSAL. If you choose any strategy other than MANUAL, then changing the settings for take profits, stop loss, sensitivity will not bring any results.
You can also save your customized strategies, this is discussed in a separate paragraph “🟩HOW TO SAVE A STRATEGY”
2. Sensitive
Responsible for the time period in bars to create Fibonacci levels
3. Start calculating date
This is the time to start backtesting strategies
4. Position group
Show checkbox - is responsible for displaying positions
Fill checkbox - is responsible for filling positions with background
Risk % - is responsible for what percentage of the deposit you are willing to lose if there is a stop loss
BE target - here you can choose when you reach which take profit you need to move your stop loss to breakeven
Initial deposit- starting deposit for profit calculation
5. Stoploss group
Fixed stoploss % checkbox - If choosed: stoploss will be calculated manually depending on the setting below( formula: entry_price * (1 - stoploss percent)) If NOT choosed: stoploss will be ( formula: fibonacci level(0.786/0.236) * (1 + stoploss percent))
6. Take profit group
This group of settings is responsible for how far from the entry point take profits will be and what % of the position to fix
7. RSI
Responsible for configuring the built-in RSI. Suitable bars will be highlighted with crosses above or below, depending on overbought/oversold
8. Infopanels group
Here I think everything is clear, you can hide or show information panels
9. Developer mode
If enabled, all events that occur will be shown, for example, reaching a take profit or stop loss with detailed information about the unfixed balance of the position
🟩 HOW TO USE
Very simple. All you need is to wait for the trend to change to long or short, you will immediately see a stop loss and four take profits, and you will also see prices. Like in this picture:
🟩 ALERTS
There are 3 types of alerts:
1. Long signal
2. Short signal
3. Any alert() function call - will be send to you json with these fields
{
"side": "LONG",
"entry": "64.454",
"tp1": "65.099",
"tp2": "65.743",
"tp3": "66.388",
"tp4": "67.032",
"winrate": "35.42%",
"strategy": "MANUAL",
"beTargetTrigger": "1",
"stop": "64.44"
}
🟩 HOW TO SAVE A STRATEGY
First, you need to make sure that the “MANUAL” strategy is selected in the strategy settings.
After this, you can start selecting parameters that will show the largest profit in the statistics panel.
I have highlighted what you need to pay attention to when choosing a strategy
Let's assume you have set up a strategy. The main question is how to preserve it?
Let’s say the strategy turned out with the following parameters:
Next we need to find this section of code:
// STRATS
selector(string strategy_name) =>
strategy_settings = Strategy_settings.new()
switch strategy_name
"MANUAL" =>
strategy_settings.sensitivity := 18
strategy_settings.risk_percent := 1
strategy_settings.break_even_target := "1"
strategy_settings.tp1_percent := 1
strategy_settings.tp1_percent_fix := 40
strategy_settings.tp2_percent := 2
strategy_settings.tp2_percent_fix := 30
strategy_settings.tp3_percent := 3
strategy_settings.tp3_percent_fix := 20
strategy_settings.tp4_percent := 4
strategy_settings.tp4_percent_fix := 10
strategy_settings.fixed_stop := false
strategy_settings.sl_percent := 0.0
"UNIVERSAL" =>
strategy_settings.sensitivity := 20
strategy_settings.risk_percent := 1
strategy_settings.break_even_target := "1"
strategy_settings.tp1_percent := 1
strategy_settings.tp1_percent_fix := 40
strategy_settings.tp2_percent := 2
strategy_settings.tp2_percent_fix := 30
strategy_settings.tp3_percent := 3
strategy_settings.tp3_percent_fix := 20
strategy_settings.tp4_percent := 4
strategy_settings.tp4_percent_fix := 10
strategy_settings.fixed_stop := false
strategy_settings.sl_percent := 0.0
// "NEW STRATEGY" =>
// strategy_settings.sensitivity := 20
// strategy_settings.risk_percent := 1
// strategy_settings.break_even_target := "1"
// strategy_settings.tp1_percent := 1
// strategy_settings.tp1_percent_fix := 40
// strategy_settings.tp2_percent := 2
// strategy_settings.tp2_percent_fix := 30
// strategy_settings.tp3_percent := 3
// strategy_settings.tp3_percent_fix := 20
// strategy_settings.tp4_percent := 4
// strategy_settings.tp4_percent_fix := 10
// strategy_settings.fixed_stop := false
// strategy_settings.sl_percent := 0.0
strategy_settings
// STRATS
Let's uncomment on the latest strategy called "NEW STRATEGY" rename it to "SOL 5m" and change the sensitivity:
// STRATS
selector(string strategy_name) =>
strategy_settings = Strategy_settings.new()
switch strategy_name
"MANUAL" =>
strategy_settings.sensitivity := 18
strategy_settings.risk_percent := 1
strategy_settings.break_even_target := "1"
strategy_settings.tp1_percent := 1
strategy_settings.tp1_percent_fix := 40
strategy_settings.tp2_percent := 2
strategy_settings.tp2_percent_fix := 30
strategy_settings.tp3_percent := 3
strategy_settings.tp3_percent_fix := 20
strategy_settings.tp4_percent := 4
strategy_settings.tp4_percent_fix := 10
strategy_settings.fixed_stop := false
strategy_settings.sl_percent := 0.0
"UNIVERSAL" =>
strategy_settings.sensitivity := 20
strategy_settings.risk_percent := 1
strategy_settings.break_even_target := "1"
strategy_settings.tp1_percent := 1
strategy_settings.tp1_percent_fix := 40
strategy_settings.tp2_percent := 2
strategy_settings.tp2_percent_fix := 30
strategy_settings.tp3_percent := 3
strategy_settings.tp3_percent_fix := 20
strategy_settings.tp4_percent := 4
strategy_settings.tp4_percent_fix := 10
strategy_settings.fixed_stop := false
strategy_settings.sl_percent := 0.0
"SOL 5m" =>
strategy_settings.sensitivity := 15
strategy_settings.risk_percent := 1
strategy_settings.break_even_target := "1"
strategy_settings.tp1_percent := 1
strategy_settings.tp1_percent_fix := 40
strategy_settings.tp2_percent := 2
strategy_settings.tp2_percent_fix := 30
strategy_settings.tp3_percent := 3
strategy_settings.tp3_percent_fix := 20
strategy_settings.tp4_percent := 4
strategy_settings.tp4_percent_fix := 10
strategy_settings.fixed_stop := false
strategy_settings.sl_percent := 0.0
strategy_settings
// STRATS
Now let's find this code:
strategy_input = input.string(title = "STRATEGY", options = , defval = "MANUAL", tooltip = "EN: To manually configure the strategy, select MANUAL otherwise, changing the settings won't have any effect RU: Чтобы настроить стратегию вручную, выберите MANUAL в противном случае изменение настроек не будет иметь никакого эффекта")
And let's add our new strategy there, it turned out like this:
strategy_input = input.string(title = "STRATEGY", options = , defval = "MANUAL", tooltip = "EN: To manually configure the strategy, select MANUAL otherwise, changing the settings won't have any effect RU: Чтобы настроить стратегию вручную, выберите MANUAL в противном случае изменение настроек не будет иметь никакого эффекта")
That's all. Our new strategy is now saved! It's simple! Now we can select it in the list of strategies:
Linear Regression Channel 200█ OVERVIEW
This a simplified version of linear regression channel which use length 200 instead of traditional length 100.
█ FEATURES
Color change depends light / dark mode.
█ LIMITATIONS
Limited to source of closing price and max bars back is 1500.
█ SIMILAR
Regression Channel Alternative MTF
Regression Channel Alternative MTF V2
Monday range by MatboomThe "Monday Range" Pine Script indicator calculates and displays the lowest and highest prices during a specified trading session, focusing on Mondays. Users can configure the trading session parameters, such as start and end times and time zone. The indicator visually highlights the session range on the chart by plotting the session low and high prices and applying a background color within the session period. The customizable days of the week checkboxes allow users to choose which days the indicator should consider for analysis.
Session Configuration:
session = input.session("0000-0000", title="Trading Session")
timeZone = input.string("UTC", title="Time Zone")
monSession = input.bool(true, title="Mon ", group="Trading Session", inline="d1")
tueSession = input.bool(true, title="Tue ", group="Trading Session", inline="d1")
Users can configure the trading session start and end times and the time zone.
Checkboxes for Monday (monSession) and Tuesday (tueSession) sessions are provided.
SessionLow and SessionHigh Functions:
SessionLow(sessionTime, sessionTimeZone=syminfo.timezone) => ...
SessionHigh(sessionTime, sessionTimeZone=syminfo.timezone) => ...
Custom functions to calculate the lowest (SessionLow) and highest (SessionHigh) prices during a specified trading session.
InSession Function:
InSession(sessionTimes, sessionTimeZone=syminfo.timezone) => ...
Determines if the current bar is inside the specified trading session.
Days of Week String and Session String:
sessionDays = ""
if monSession
sessionDays += "2"
if tueSession
sessionDays += "3"
tradingSession = session + ":" + sessionDays
Constructs a string representing the selected days of the week for the session.
Fetch Session Low and High:
sessLow = SessionLow(tradingSession, timeZone)
sessHigh = SessionHigh(tradingSession, timeZone)
Calls the custom functions to obtain the session low and high prices.
Plot Session Low and High and Background Color for Session
plot(sessLow, color=color.red, title="Session Low")
plot(sessHigh, color=color.red, title="Session Low")
bgcolor(InSession(tradingSession, timeZone) ? color.new(color.aqua, 90) : na)
Pivot Break [ProjeAdam]OVERVIEW
This indicator provides us great convenience when analyzing the parity by drawing a range at the highest, lowest and middle levels of the previous time period in the time period we choose, and showing where the price is currently in the range it has created in the past.
ALGORITHM - How does the indicator work ?
It draws the highest and lowest values in the time of the parity you selected in the previous ‘’Time Value’’ setting by creating a range.
We can change our ‘’Time Value’’ from the settings.
In the example above, we select our Time Value setting as "Monthly" and it draws the highest and lowest values of the month in the past parity.
In this example above, we select our Time Value setting as "Weekly", it captures the highest and lowest values of the price of the past week.
The algorithm automatically plots the selected Time Value of the price in the past.
When our price falls below its past value by the Time Value we selected, our background color becomes red.
In the example above, our background becomes red for places where the price has fallen below the values of the past week
When our price rises above its historical value by the Time Value we selected, our background color becomes green.
In the example above, our background is green for the places where the price breaks above last week's values.
When breaking up or down, our background color changes only at the first break and an alarm comes here.
The breakdowns in this indicator can also be used as an auxiliary tool in trend analysis.
While the price breaking the previous time frame up and holding there is a positive confirmation for the uptrend in the market, we can consider the price breaking the previous time frame down and holding here as a downtrend in the parity.
SETTINGS PANEL
1-We can change Language of Price Labels
2-We can choose the past time highest or lowest of our price with which we want to create a range
3-Show background of break up and break down
4-If we activeted buttons allow us to receive alarms in case of breakdown in these parities that we activate.
If you have any ideas what to add to my work to add more sources or make calculations cooler, suggest in DM .
Trading Range FinderThere are 5 horizontal lines printed by this indicator, and they extend from the last bar to a user-defined look-back period (the number of bars back from the last bar). The dark blue lines are the swing high and swing low within the look-back period. The magenta lines are the range high and range low used to define a trading range for the look-back period. The light blue line in the middle is the halfway point within the trading range, or the equilibrium.
The majority of the script logic focuses on the placement of the magenta lines (range high and range low). To do this, a histogram analysis is used. The price difference between the swing high and swing low is broken up into discrete bins which are monitored by an array. The high and low of each bar within the look-back period is used to populate the bins. There is also a toggle to use the midpoint of each bar to populate the bins as well. This means that for every bar two bins (three with the toggle) within the array will increase by a value of 1. The two bins with the highest count are used to print the magenta lines. Around each magenta line are two dotted lines and a shaded area to show the size of the bins used in the analysis.
Regarding bin size:
The bin size is a fraction of the asset price. If the price difference between the swing high and swing low is $1000, and the bin size is 1, then there are 1000 bins. I initially made the bin size a user input, but for a given look-back period the trading range would have wildly different range highs/lows when the bin size was incremented by small amounts. It was also difficult to manage a user input when the asset price is near, or less than 1. I then used a loop to optimize the bin size so it is no longer a user input. The optimization parameter is the maximization of the distance between the range high and range low. I capped the bin size within the script somewhat arbitrarily (but with a lot of testing) at ((swing high - swing low)/50) because sometimes very large bin sizes (one third or one quarter of the difference between swing high and swing low) would maximize the distance between the range high and range low, but with the line placed in the middle of the bin, its level wouldn't always make sense. Besides the maximum bin size, the only other hardcoded part of the script was to test 50 bin sizes, up to and including the maximum bin size. The loop finds the bin size that gives the largest separation between prices, and then uses that bin size to set the up the array with the bin counts.
Toggles for the plots are available to show how the range high, range low, and equilibrium move as new bars are added to the chart. The effects of these plots can most readily be seen in replay mode. There is also to a toggle to show the Fibonacci levels between the range high and range low. I made the midpoint a toggle because sometimes it is detrimental, meaning it contracts the trading range to the point of not being useful on a given chart. If there are periods of very low volatility and the bin size is large enough, the midpoint might end up in the same bin as the high or the low (or both!), and a single bar could unevenly weight a particular bin. The midpoint toggle, along with different lookback periods, will be needed to find a suitable trading range for a given chart.
Channel CorridorOVERVIEW
The Channel Corridor indicator is designed to operate on a log chart of asset prices (e.g., BTCUSD), specifically on a weekly timeframe.
The intent of the indicator is to provide a visual representation of market dynamics, focusing on a dynamically adjusted corridor around a Simple Moving Average (SMA) of an asset's price. The corridor adapts to changing market conditions. The indicator includes channels within the corridor for additional reference points.
PURPOSE
Trend Identification: The channel corridor can aid in visualising the overall trend, as it dynamically adjusts the corridor based on an SMA and user-defined parameters.
Volatility Assessment: The width of the channel corridor can may act as a gauge of market volatility.
Reversal Points: The channel corridor may signal potential trend reversals or corrections when an asset price approaches the upper or lower bounds of the corridor.
Long-Term Trend Analysis: The channel corridor may aid in longer-term trend analysis.
CONSIDERATIONS
Validation: It's recommended that careful back-testing over historical data be done before acting on any identified opportunities.
User Discretion: Trading decisions should not rely solely on this script. Users should exercise judgment and consider market conditions.
CREDIT
Ideation: Thanks @Sw1ngTr4der for the idea and corridor seed code
ATR Based Stoploss - TakeProfit [CharmyDexter]
This script combines the power of Average True Range (ATR) and a Moving Average (MA) to dynamically set stop-loss and take-profit levels. It introduces a volatility surge condition and includes a risk management table for comprehensive trade insights.
1) **Originality:**
- This script is original in its approach to combining Average True Range (ATR) with a Moving Average (MA) to create a dynamic stop-loss and take-profit strategy. The addition of a volatility surge condition and the inclusion of a risk management table further contribute to its uniqueness.
2) **Functionality:**
- The script aims to provide traders with a dynamic stop-loss and take-profit strategy based on ATR, incorporating a volatility surge condition and a moving average. The risk management table displays crucial information, including the fund size, potential profit/loss, ATR values, and risk.
3) **Operation:**
- The script uses ATR to calculate volatility, identifying surges in volatility. It adjusts the stop-loss and take-profit levels based on the average of ATR during these surge periods. The moving average acts as a trend indicator, and the script dynamically adjusts stop-loss and take-profit levels accordingly.
4) **Usage:**
- Traders can use this script by applying it to their preferred financial instrument's chart. The script automatically plots the moving average and dynamically adjusts stop-loss and take-profit levels based on ATR and volatility surges. Users can observe the levels on the chart for potential trade management.
5) **Concepts:**
- The script employs concepts of ATR for volatility, moving average for trend identification, and a dynamic adjustment mechanism during volatility surges. Risk management is incorporated by calculating potential profit/loss percentages based on user-defined risk.
6) **Mashup Explanation:**
- The script combines ATR, moving average, and volatility conditions to create a comprehensive strategy. ATR determines the market's volatility, the moving average serves as a trend indicator, and volatility surges trigger dynamic adjustments to stop-loss and take-profit levels. The risk management table enhances the script's utility.
7) **Line Descriptions:**
- Blue Line (Moving Average): Indicates the trend direction.
- Lime Line (Long Take Profit): Represents the level for taking profit in a long position.
- Maroon Line (Short Take Profit): Represents the level for taking profit in a short position.
- Fuchsia Line (Short Stop Loss): Represents the level for setting a stop loss in a short position.
- Orange Line (Long Stop Loss): Represents the level for setting a stop loss in a long position.
8) **Line Usage:**
- Use the blue line for trend identification.
- When taking long positions, the close should be above the blue line.
- For long positions, the lime line is a potential take-profit level, and the orange line is a potential stop-loss level.
- For short positions, the maroon line is a potential take-profit level, and the fuchsia line is a potential stop-loss level.
- The risk management table provides insights into fund size, potential profit/loss, ATR values, and risk.
Note: The profit/loss calculations in this script may not be entirely accurate due to factors like market execution. Market execution may not always occur at the exact levels specified by the script due to slippage or delays in order processing. This can impact the realized profit or loss compared to the calculated levels.
It is crucial to note that this ATR Based Stop-loss - Take-Profit indicator is merely one tool among many that traders can employ to establish trading targets. Additional technical indicators are essential for taking trades and making informed decisions.
Commented-out sections for alerts and shape plotting are provided, allowing for visual and auditory notifications if desired.
It's crucial for traders to be aware of these factors and use the script as a tool within a broader trading strategy. Additionally, regular monitoring and adjustments based on real-time market conditions are recommended to enhance the accuracy of profit/loss assessments.
Choose Symbol, Mode with Hull,Stochatic Mom,EMA,MACD,RSI,TableThis Pine Script code is a comprehensive indicator for the TradingView platform, offering a variety of technical analysis tools. Below is an English introduction to its features and purposes:
Introduction:
This indicator is designed for traders on TradingView and provides a multi-functional analysis toolset. It includes different charting modes (Heikin-Ashi, Linear, and Normal), a Hull Moving Average (Hull), Stochastic Momentum, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), EMA (Exponential Moving Average), Bollinger Bands, and a summary table displaying key metrics.
Key Features:
Charting Modes:
Users can choose between "Heikin-Ashi," "Linear," or "Normal" modes to visualize price data in different ways.
Hull Moving Average:
The script incorporates the Hull Moving Average for trend analysis, highlighting potential buy and sell signals.
Stochastic Momentum:
Stochastic Momentum, with customizable parameters (K, D, and Smooth), is included to identify overbought and oversold conditions.
RSI (Relative Strength Index):
RSI is calculated and displayed, aiding in identifying potential trend reversals or exhaustion points.
MACD (Moving Average Convergence Divergence):
The MACD indicator is included, along with a histogram, to highlight changes in momentum and potential crossovers.
RSI Momentum:
RSI Momentum is calculated, providing additional insights into momentum changes.
Exponential Moving Averages (EMA):
The script calculates and displays three EMAs (Exponential Moving Averages) with customizable periods.
Bollinger Bands:
Bollinger Bands are incorporated, offering insights into volatility and potential price reversals.
Summary Table:
A table is displayed on the chart summarizing key metrics, including Stochastic MoM, RSI, MACD, RSI EMA, Hull percentage change, and EMA values.
Customization:
Users have the option to customize various parameters, including chart modes, lengths of moving averages, Stochastic parameters, and more.
Usage:
The indicator aims to provide a comprehensive view of price action and potential trend changes. Traders can use it for technical analysis and decision-making.
Important Note:
This script is provided for educational purposes and does not constitute financial advice. Traders and investors should conduct their research and analysis before making any trading decisions.
Fibonacci Enhanced Bollinger BandsDiscover the synergistic power of Fibonacci ratios with traditional Bollinger Bands in the 'Fibonacci Enhanced Bollinger Bands' indicator. Ideal for traders seeking dynamic price levels for strategic entries and exits, this tool adds a unique Fibonacci twist to your technical analysis toolkit.
Introduction to Fibonacci Enhanced Bollinger Bands
'Fibonacci Enhanced Bollinger Bands' is a trading indicator that combines the classic Bollinger Bands approach with the powerful insights of Fibonacci ratios. By integrating these two concepts, this indicator offers traders a unique perspective on market volatility and potential support/resistance levels.
How It Works
Core Concept : The indicator calculates Bollinger Bands using a selected Fibonacci ratio. This ratio is applied to the standard deviation of the price series, providing a dynamic range around a Simple Moving Average (SMA).
Trading Strategies
Long Opportunities : The area below the lower band can be considered a potential zone for long positions. Prices in this zone may indicate an oversold market condition, suggesting a possible reversal or pullback.
Short Opportunities : Conversely, the area above the upper band might signal short-selling opportunities. Prices in this region could imply an overbought scenario, potentially leading to a price decline.
Versatility : Whether you're a day trader, swing trader, or long-term investor, this indicator adapts to various timeframes and assets, making it a versatile tool in your trading arsenal.
Conclusion
The 'Fibonacci Enhanced Bollinger Bands' indicator is designed for traders who wish to leverage the power of Fibonacci ratios in conjunction with the volatility insights provided by Bollinger Bands. It's an excellent tool for identifying potential reversal zones and refining entry and exit points. Try it out to enhance your market analysis and support your trading decisions with the combined wisdom of Fibonacci and Bollinger Bands.
GKD-C Chandelier Exit [Loxx]The Giga Kaleidoscope GKD-C Chandelier Exit is a confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System."
█ GKD-C Chandelier Exit
Developed by Charles Le Beau and featured in Alexander Elder's books, the Chandelier Exit sets a trailing stop-loss based on the Average True Range (ATR). The indicator is designed to keep traders in a trend and prevent an early exit as long as the trend extends. Typically, the Chandelier Exit will be above prices during a downtrend and below prices during an uptrend.
█ Giga Kaleidoscope Modularized Trading System
Core components of an NNFX algorithmic trading strategy
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
8. Metamorphosis - a technical indicator that produces a compound signal from the combination of other GKD indicators*
*(not part of the NNFX algorithm)
What is Volatility in the NNFX trading system?
In the NNFX (No Nonsense Forex) trading system, ATR (Average True Range) is typically used to measure the volatility of an asset. It is used as a part of the system to help determine the appropriate stop loss and take profit levels for a trade. ATR is calculated by taking the average of the true range values over a specified period.
True range is calculated as the maximum of the following values:
-Current high minus the current low
-Absolute value of the current high minus the previous close
-Absolute value of the current low minus the previous close
ATR is a dynamic indicator that changes with changes in volatility. As volatility increases, the value of ATR increases, and as volatility decreases, the value of ATR decreases. By using ATR in NNFX system, traders can adjust their stop loss and take profit levels according to the volatility of the asset being traded. This helps to ensure that the trade is given enough room to move, while also minimizing potential losses.
Other types of volatility include True Range Double (TRD), Close-to-Close, and Garman-Klass
What is a Baseline indicator?
The baseline is essentially a moving average, and is used to determine the overall direction of the market.
The baseline in the NNFX system is used to filter out trades that are not in line with the long-term trend of the market. The baseline is plotted on the chart along with other indicators, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR).
Trades are only taken when the price is in the same direction as the baseline. For example, if the baseline is sloping upwards, only long trades are taken, and if the baseline is sloping downwards, only short trades are taken. This approach helps to ensure that trades are in line with the overall trend of the market, and reduces the risk of entering trades that are likely to fail.
By using a baseline in the NNFX system, traders can have a clear reference point for determining the overall trend of the market, and can make more informed trading decisions. The baseline helps to filter out noise and false signals, and ensures that trades are taken in the direction of the long-term trend.
What is a Confirmation indicator?
Confirmation indicators are technical indicators that are used to confirm the signals generated by primary indicators. Primary indicators are the core indicators used in the NNFX system, such as the Average True Range (ATR), the Moving Average (MA), and the Relative Strength Index (RSI).
The purpose of the confirmation indicators is to reduce false signals and improve the accuracy of the trading system. They are designed to confirm the signals generated by the primary indicators by providing additional information about the strength and direction of the trend.
Some examples of confirmation indicators that may be used in the NNFX system include the Bollinger Bands, the MACD (Moving Average Convergence Divergence), and the MACD Oscillator. These indicators can provide information about the volatility, momentum, and trend strength of the market, and can be used to confirm the signals generated by the primary indicators.
In the NNFX system, confirmation indicators are used in combination with primary indicators and other filters to create a trading system that is robust and reliable. By using multiple indicators to confirm trading signals, the system aims to reduce the risk of false signals and improve the overall profitability of the trades.
What is a Continuation indicator?
In the NNFX (No Nonsense Forex) trading system, a continuation indicator is a technical indicator that is used to confirm a current trend and predict that the trend is likely to continue in the same direction. A continuation indicator is typically used in conjunction with other indicators in the system, such as a baseline indicator, to provide a comprehensive trading strategy.
What is a Volatility/Volume indicator?
Volume indicators, such as the On Balance Volume (OBV), the Chaikin Money Flow (CMF), or the Volume Price Trend (VPT), are used to measure the amount of buying and selling activity in a market. They are based on the trading volume of the market, and can provide information about the strength of the trend. In the NNFX system, volume indicators are used to confirm trading signals generated by the Moving Average and the Relative Strength Index. Volatility indicators include Average Direction Index, Waddah Attar, and Volatility Ratio. In the NNFX trading system, volatility is a proxy for volume and vice versa.
By using volume indicators as confirmation tools, the NNFX trading system aims to reduce the risk of false signals and improve the overall profitability of trades. These indicators can provide additional information about the market that is not captured by the primary indicators, and can help traders to make more informed trading decisions. In addition, volume indicators can be used to identify potential changes in market trends and to confirm the strength of price movements.
What is an Exit indicator?
The exit indicator is used in conjunction with other indicators in the system, such as the Moving Average (MA), the Relative Strength Index (RSI), and the Average True Range (ATR), to provide a comprehensive trading strategy.
The exit indicator in the NNFX system can be any technical indicator that is deemed effective at identifying optimal exit points. Examples of exit indicators that are commonly used include the Parabolic SAR, the Average Directional Index (ADX), and the Chandelier Exit.
The purpose of the exit indicator is to identify when a trend is likely to reverse or when the market conditions have changed, signaling the need to exit a trade. By using an exit indicator, traders can manage their risk and prevent significant losses.
In the NNFX system, the exit indicator is used in conjunction with a stop loss and a take profit order to maximize profits and minimize losses. The stop loss order is used to limit the amount of loss that can be incurred if the trade goes against the trader, while the take profit order is used to lock in profits when the trade is moving in the trader's favor.
Overall, the use of an exit indicator in the NNFX trading system is an important component of a comprehensive trading strategy. It allows traders to manage their risk effectively and improve the profitability of their trades by exiting at the right time.
What is an Metamorphosis indicator?
The concept of a metamorphosis indicator involves the integration of two or more GKD indicators to generate a compound signal. This is achieved by evaluating the accuracy of each indicator and selecting the signal from the indicator with the highest accuracy. As an illustration, let's consider a scenario where we calculate the accuracy of 10 indicators and choose the signal from the indicator that demonstrates the highest accuracy.
The resulting output from the metamorphosis indicator can then be utilized in a GKD-BT backtest by occupying a slot that aligns with the purpose of the metamorphosis indicator. The slot can be a GKD-B, GKD-C, or GKD-E slot, depending on the specific requirements and objectives of the indicator. This allows for seamless integration and utilization of the compound signal within the GKD-BT framework.
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v2.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
6. GKD-M - Metamorphosis module (Metamorphosis, Number 8 in the NNFX algorithm, but not part of the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data to A backtest module wherein the various components of the GKD system are combined to create a trading signal.
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Multi-Ticker CC Backtest
Baseline: Hull Moving Average
Volatility/Volume: Hurst Exponent
Confirmation 1: Advance Trend Pressure as shown on the chart above
Confirmation 2: uf2018
Continuation: Coppock Curve
Exit: Rex Oscillator
Metamorphosis: Baseline Optimizer
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, GKD-M, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD system.
? Giga Kaleidoscope Modularized Trading System Signals
Standard Entry
1. GKD-C Confirmation gives signal
2. Baseline agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
1-Candle Standard Entry
1a. GKD-C Confirmation gives signal
2a. Baseline agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Volatility/Volume agrees
7. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
1-Candle Baseline Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSBC Bars Back' prior
Next Candle
1b. Price retraced
2b. Baseline agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Volatility/Volume Entry
1. GKD-V Volatility/Volume gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Confirmation 2 agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Volatility/Volume Entry
1a. GKD-V Volatility/Volume gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSVVC Bars Back' prior
Next Candle
1b. Price retraced
2b. Volatility/Volume agrees
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Baseline agrees
Confirmation 2 Entry
1. GKD-C Confirmation 2 gives signal
2. Confirmation 1 agrees
3. Price inside Goldie Locks Zone Minimum
4. Price inside Goldie Locks Zone Maximum
5. Volatility/Volume agrees
6. Baseline agrees
7. Confirmation 1 signal was less than 7 candles prior
1-Candle Confirmation 2 Entry
1a. GKD-C Confirmation 2 gives signal
2a. Confirmation 1 agrees
3a. Price inside Goldie Locks Zone Minimum
4a. Price inside Goldie Locks Zone Maximum
5a. Confirmation 1 signal was less than 'Maximum Allowable PSC2C Bars Back' prior
Next Candle
1b. Price retraced
2b. Confirmation 2 agrees
3b. Confirmation 1 agrees
4b. Volatility/Volume agrees
5b. Baseline agrees
PullBack Entry
1a. GKD-B Baseline gives signal
2a. Confirmation 1 agrees
3a. Price is beyond 1.0x Volatility of Baseline
Next Candle
1b. Price inside Goldie Locks Zone Minimum
2b. Price inside Goldie Locks Zone Maximum
3b. Confirmation 1 agrees
4b. Confirmation 2 agrees
5b. Volatility/Volume agrees
Continuation Entry
1. Standard Entry, 1-Candle Standard Entry, Baseline Entry, 1-Candle Baseline Entry, Volatility/Volume Entry, 1-Candle Volatility/Volume Entry, Confirmation 2 Entry, 1-Candle Confirmation 2 Entry, or Pullback entry triggered previously
2. Baseline hasn't crossed since entry signal trigger
4. Confirmation 1 agrees
5. Baseline agrees
6. Confirmation 2 agrees
Logarithmic Bollinger Bands [MisterMoTA]The script plot the normal top and bottom Bollinger Bands and from them and SMA 20 it finds fibonacci logarithmic levels where price can find temporary support/resistance.
To get the best results need to change the standard deviation to your simbol value, like current for BTC the Standards Deviation is 2.61, current Standard Deviation for ETH is 2.55.. etc.. find the right current standard deviation of your simbol with a search online.
The lines ploted by indicators are:
Main line is a 20 SMA
2 retracement Logarithmic Fibonacci 0.382 levels above and bellow 20 sma
2 retracement Logarithmic Fibonacci 0.618 levels above and bellow 20 sma
Top and Bottom Bollindger bands (ticker than the rest of the lines)
2 expansion Logarithmic Fibonacci 0.382 levels above Top BB and bellow Bottom BB
2 expansion Logarithmic Fibonacci 0.618 levels above Top BB and bellow Bottom BB
2 expansion Logarithmic Fibonacci level 1 above Top BB and bellow Bottom BB
2 expansion Logarithmic Fibonacci 1.618 levels above Top BB and bellow Bottom BB
Let me know If you find the indicator useful or PM if you need any custom changes to it.
Supertrend Advance Pullback StrategyHandbook for the Supertrend Advance Strategy
1. Introduction
Purpose of the Handbook:
The main purpose of this handbook is to serve as a comprehensive guide for traders and investors who are looking to explore and harness the potential of the Supertrend Advance Strategy. In the rapidly changing financial market, having the right tools and strategies at one's disposal is crucial. Whether you're a beginner hoping to dive into the world of trading or a seasoned investor aiming to optimize and diversify your portfolio, this handbook offers the insights and methodologies you need. By the end of this guide, readers should have a clear understanding of how the Supertrend Advance Strategy works, its benefits, potential pitfalls, and practical application in various trading scenarios.
Overview of the Supertrend Advance Pullback Strategy:
At its core, the Supertrend Advance Strategy is an evolution of the popular Supertrend Indicator. Designed to generate buy and sell signals in trending markets, the Supertrend Indicator has been a favorite tool for many traders around the world. The Advance Strategy, however, builds upon this foundation by introducing enhanced mechanisms, filters, and methodologies to increase precision and reduce false signals.
1. Basic Concept:
The Supertrend Advance Strategy relies on a combination of price action and volatility to determine the potential trend direction. By assessing the average true range (ATR) in conjunction with specific price points, this strategy aims to highlight the potential starting and ending points of market trends.
2. Methodology:
Unlike the traditional Supertrend Indicator, which primarily focuses on closing prices and ATR, the Advance Strategy integrates other critical market variables, such as volume, momentum oscillators, and perhaps even fundamental data, to validate its signals. This multidimensional approach ensures that the generated signals are more reliable and are less prone to market noise.
3. Benefits:
One of the main benefits of the Supertrend Advance Strategy is its ability to filter out false breakouts and minor price fluctuations, which can often lead to premature exits or entries in the market. By waiting for a confluence of factors to align, traders using this advanced strategy can increase their chances of entering or exiting trades at optimal points.
4. Practical Applications:
The Supertrend Advance Strategy can be applied across various timeframes, from intraday trading to swing trading and even long-term investment scenarios. Furthermore, its flexible nature allows it to be tailored to different asset classes, be it stocks, commodities, forex, or cryptocurrencies.
In the subsequent sections of this handbook, we will delve deeper into the intricacies of this strategy, offering step-by-step guidelines on its application, case studies, and tips for maximizing its efficacy in the volatile world of trading.
As you journey through this handbook, we encourage you to approach the Supertrend Advance Strategy with an open mind, testing and tweaking it as per your personal trading style and risk appetite. The ultimate goal is not just to provide you with a new tool but to empower you with a holistic strategy that can enhance your trading endeavors.
2. Getting Started
Navigating the financial markets can be a daunting task without the right tools. This section is dedicated to helping you set up the Supertrend Advance Strategy on one of the most popular charting platforms, TradingView. By following the steps below, you'll be able to integrate this strategy into your charts and start leveraging its insights in no time.
Setting up on TradingView:
TradingView is a web-based platform that offers a wide range of charting tools, social networking, and market data. Before you can apply the Supertrend Advance Strategy, you'll first need a TradingView account. If you haven't set one up yet, here's how:
1. Account Creation:
• Visit TradingView's official website.
• Click on the "Join for free" or "Sign up" button.
• Follow the registration process, providing the necessary details and setting up your login credentials.
2. Navigating the Dashboard:
• Once logged in, you'll be taken to your dashboard. Here, you'll see a variety of tools, including watchlists, alerts, and the main charting window.
• To begin charting, type in the name or ticker of the asset you're interested in the search bar at the top.
3. Configuring Chart Settings:
• Before integrating the Supertrend Advance Strategy, familiarize yourself with the chart settings. This can be accessed by clicking the 'gear' icon on the top right of the chart window.
• Adjust the chart type, time intervals, and other display settings to your preference.
Integrating the Strategy into a Chart:
Now that you're set up on TradingView, it's time to integrate the Supertrend Advance Strategy.
1. Accessing the Pine Script Editor:
• Located at the top-center of your screen, you'll find the "Pine Editor" tab. Click on it.
• This is where custom strategies and indicators are scripted or imported.
2. Loading the Supertrend Advance Strategy Script:
• Depending on whether you have the script or need to find it, there are two paths:
• If you have the script: Copy the Supertrend Advance Strategy script, and then paste it into the Pine Editor.
• If searching for the script: Click on the “Indicators” icon (looks like a flame) at the top of your screen, and then type “Supertrend Advance Strategy” in the search bar. If available, it will show up in the list. Simply click to add it to your chart.
3. Applying the Strategy:
• After pasting or selecting the Supertrend Advance Strategy in the Pine Editor, click on the “Add to Chart” button located at the top of the editor. This will overlay the strategy onto your main chart window.
4. Configuring Strategy Settings:
• Once the strategy is on your chart, you'll notice a small settings ('gear') icon next to its name in the top-left of the chart window. Click on this to access settings.
• Here, you can adjust various parameters of the Supertrend Advance Strategy to better fit your trading style or the specific asset you're analyzing.
5. Interpreting Signals:
• With the strategy applied, you'll now see buy/sell signals represented on your chart. Take time to familiarize yourself with how these look and behave over various timeframes and market conditions.
3. Strategy Overview
What is the Supertrend Advance Strategy?
The Supertrend Advance Strategy is a refined version of the classic Supertrend Indicator, which was developed to aid traders in spotting market trends. The strategy utilizes a combination of data points, including average true range (ATR) and price momentum, to generate buy and sell signals.
In essence, the Supertrend Advance Strategy can be visualized as a line that moves with the price. When the price is above the Supertrend line, it indicates an uptrend and suggests a potential buy position. Conversely, when the price is below the Supertrend line, it hints at a downtrend, suggesting a potential selling point.
Strategy Goals and Objectives:
1. Trend Identification: At the core of the Supertrend Advance Strategy is the goal to efficiently and consistently identify prevailing market trends. By recognizing these trends, traders can position themselves to capitalize on price movements in their favor.
2. Reducing Noise: Financial markets are often inundated with 'noise' - short-term price fluctuations that can mislead traders. The Supertrend Advance Strategy aims to filter out this noise, allowing for clearer decision-making.
3. Enhancing Risk Management: With clear buy and sell signals, traders can set more precise stop-loss and take-profit points. This leads to better risk management and potentially improved profitability.
4. Versatility: While primarily used for trend identification, the strategy can be integrated with other technical tools and indicators to create a comprehensive trading system.
Type of Assets/Markets to Apply the Strategy:
1. Equities: The Supertrend Advance Strategy is highly popular among stock traders. Its ability to capture long-term trends makes it particularly useful for those trading individual stocks or equity indices.
2. Forex: Given the 24-hour nature of the Forex market and its propensity for trends, the Supertrend Advance Strategy is a valuable tool for currency traders.
3. Commodities: Whether it's gold, oil, or agricultural products, commodities often move in extended trends. The strategy can help in identifying and capitalizing on these movements.
4. Cryptocurrencies: The volatile nature of cryptocurrencies means they can have pronounced trends. The Supertrend Advance Strategy can aid crypto traders in navigating these often tumultuous waters.
5. Futures & Options: Traders and investors in derivative markets can utilize the strategy to make more informed decisions about contract entries and exits.
It's important to note that while the Supertrend Advance Strategy can be applied across various assets and markets, its effectiveness might vary based on market conditions, timeframe, and the specific characteristics of the asset in question. As always, it's recommended to use the strategy in conjunction with other analytical tools and to backtest its effectiveness in specific scenarios before committing to trades.
4. Input Settings
Understanding and correctly configuring input settings is crucial for optimizing the Supertrend Advance Strategy for any specific market or asset. These settings, when tweaked correctly, can drastically impact the strategy's performance.
Grouping Inputs:
Before diving into individual input settings, it's important to group similar inputs. Grouping can simplify the user interface, making it easier to adjust settings related to a specific function or indicator.
Strategy Choice:
This input allows traders to select from various strategies that incorporate the Supertrend indicator. Options might include "Supertrend with RSI," "Supertrend with MACD," etc. By choosing a strategy, the associated input settings for that strategy become available.
Supertrend Settings:
1. Multiplier: Typically, a default value of 3 is used. This multiplier is used in the ATR calculation. Increasing it makes the Supertrend line further from prices, while decreasing it brings the line closer.
2. Period: The number of bars used in the ATR calculation. A common default is 7.
EMA Settings (Exponential Moving Average):
1. Period: Defines the number of previous bars used to calculate the EMA. Common periods are 9, 21, 50, and 200.
2. Source: Allows traders to choose which price (Open, Close, High, Low) to use in the EMA calculation.
RSI Settings (Relative Strength Index):
1. Length: Determines how many periods are used for RSI calculation. The standard setting is 14.
2. Overbought Level: The threshold at which the asset is considered overbought, typically set at 70.
3. Oversold Level: The threshold at which the asset is considered oversold, often at 30.
MACD Settings (Moving Average Convergence Divergence):
1. Short Period: The shorter EMA, usually set to 12.
2. Long Period: The longer EMA, commonly set to 26.
3. Signal Period: Defines the EMA of the MACD line, typically set at 9.
CCI Settings (Commodity Channel Index):
1. Period: The number of bars used in the CCI calculation, often set to 20.
2. Overbought Level: Typically set at +100, denoting overbought conditions.
3. Oversold Level: Usually set at -100, indicating oversold conditions.
SL/TP Settings (Stop Loss/Take Profit):
1. SL Multiplier: Defines the multiplier for the average true range (ATR) to set the stop loss.
2. TP Multiplier: Defines the multiplier for the average true range (ATR) to set the take profit.
Filtering Conditions:
This section allows traders to set conditions to filter out certain signals. For example, one might only want to take buy signals when the RSI is below 30, ensuring they buy during oversold conditions.
Trade Direction and Backtest Period:
1. Trade Direction: Allows traders to specify whether they want to take long trades, short trades, or both.
2. Backtest Period: Specifies the time range for backtesting the strategy. Traders can choose from options like 'Last 6 months,' 'Last 1 year,' etc.
It's essential to remember that while default settings are provided for many of these tools, optimal settings can vary based on the market, timeframe, and trading style. Always backtest new settings on historical data to gauge their potential efficacy.
5. Understanding Strategy Conditions
Developing an understanding of the conditions set within a trading strategy is essential for traders to maximize its potential. Here, we delve deep into the logic behind these conditions, using the Supertrend Advance Strategy as our focal point.
Basic Logic Behind Conditions:
Every strategy is built around a set of conditions that provide buy or sell signals. The conditions are based on mathematical or statistical methods and are rooted in the study of historical price data. The fundamental idea is to recognize patterns or behaviors that have been profitable in the past and might be profitable in the future.
Buy and Sell Conditions:
1. Buy Conditions: Usually formulated around bullish signals or indicators suggesting upward price momentum.
2. Sell Conditions: Centered on bearish signals or indicators indicating downward price momentum.
Simple Strategy:
The simple strategy could involve using just the Supertrend indicator. Here:
• Buy: When price closes above the Supertrend line.
• Sell: When price closes below the Supertrend line.
Pullback Strategy:
This strategy capitalizes on price retracements:
• Buy: When the price retraces to the Supertrend line after a bullish signal and is supported by another bullish indicator.
• Sell: When the price retraces to the Supertrend line after a bearish signal and is confirmed by another bearish indicator.
Indicators Used:
EMA (Exponential Moving Average):
• Logic: EMA gives more weight to recent prices, making it more responsive to current price movements. A shorter-period EMA crossing above a longer-period EMA can be a bullish sign, while the opposite is bearish.
RSI (Relative Strength Index):
• Logic: RSI measures the magnitude of recent price changes to analyze overbought or oversold conditions. Values above 70 are typically considered overbought, and values below 30 are considered oversold.
MACD (Moving Average Convergence Divergence):
• Logic: MACD assesses the relationship between two EMAs of a security’s price. The MACD line crossing above the signal line can be a bullish signal, while crossing below can be bearish.
CCI (Commodity Channel Index):
• Logic: CCI compares a security's average price change with its average price variation. A CCI value above +100 may mean the price is overbought, while below -100 might signify an oversold condition.
And others...
As the strategy expands or contracts, more indicators might be added or removed. The crucial point is to understand the core logic behind each, ensuring they align with the strategy's objectives.
Logic Behind Each Indicator:
1. EMA: Emphasizes recent price movements; provides dynamic support and resistance levels.
2. RSI: Indicates overbought and oversold conditions based on recent price changes.
3. MACD: Showcases momentum and direction of a trend by comparing two EMAs.
4. CCI: Measures the difference between a security's price change and its average price change.
Understanding strategy conditions is not just about knowing when to buy or sell but also about comprehending the underlying market dynamics that those conditions represent. As you familiarize yourself with each condition and indicator, you'll be better prepared to adapt and evolve with the ever-changing financial markets.
6. Trade Execution and Management
Trade execution and management are crucial aspects of any trading strategy. Efficient execution can significantly impact profitability, while effective management can preserve capital during adverse market conditions. In this section, we'll explore the nuances of position entry, exit strategies, and various Stop Loss (SL) and Take Profit (TP) methodologies within the Supertrend Advance Strategy.
Position Entry:
Effective trade entry revolves around:
1. Timing: Enter at a point where the risk-reward ratio is favorable. This often corresponds to confirmatory signals from multiple indicators.
2. Volume Analysis: Ensure there's adequate volume to support the movement. Volume can validate the strength of a signal.
3. Confirmation: Use multiple indicators or chart patterns to confirm the entry point. For instance, a buy signal from the Supertrend indicator can be confirmed with a bullish MACD crossover.
Position Exit Strategies:
A successful exit strategy will lock in profits and minimize losses. Here are some strategies:
1. Fixed Time Exit: Exiting after a predetermined period.
2. Percentage-based Profit Target: Exiting after a certain percentage gain.
3. Indicator-based Exit: Exiting when an indicator gives an opposing signal.
Percentage-based SL/TP:
• Stop Loss (SL): Set a fixed percentage below the entry price to limit potential losses.
• Example: A 2% SL on an entry at $100 would trigger a sell at $98.
• Take Profit (TP): Set a fixed percentage above the entry price to lock in gains.
• Example: A 5% TP on an entry at $100 would trigger a sell at $105.
Supertrend-based SL/TP:
• Stop Loss (SL): Position the SL at the Supertrend line. If the price breaches this line, it could indicate a trend reversal.
• Take Profit (TP): One could set the TP at a point where the Supertrend line flattens or turns, indicating a possible slowdown in momentum.
Swing high/low-based SL/TP:
• Stop Loss (SL): For a long position, set the SL just below the recent swing low. For a short position, set it just above the recent swing high.
• Take Profit (TP): For a long position, set the TP near a recent swing high or resistance. For a short position, near a swing low or support.
And other methods...
1. Trailing Stop Loss: This dynamic SL adjusts with the price movement, locking in profits as the trade moves in your favor.
2. Multiple Take Profits: Divide the position into segments and set multiple TP levels, securing profits in stages.
3. Opposite Signal Exit: Exit when another reliable indicator gives an opposite signal.
Trade execution and management are as much an art as they are a science. They require a blend of analytical skill, discipline, and intuition. Regularly reviewing and refining your strategies, especially in light of changing market conditions, is crucial to maintaining consistent trading performance.
7. Visual Representations
Visual tools are essential for traders, as they simplify complex data into an easily interpretable format. Properly analyzing and understanding the plots on a chart can provide actionable insights and a more intuitive grasp of market conditions. In this section, we’ll delve into various visual representations used in the Supertrend Advance Strategy and their significance.
Understanding Plots on the Chart:
Charts are the primary visual aids for traders. The arrangement of data points, lines, and colors on them tell a story about the market's past, present, and potential future moves.
1. Data Points: These represent individual price actions over a specific timeframe. For instance, a daily chart will have data points showing the opening, closing, high, and low prices for each day.
2. Colors: Used to indicate the nature of price movement. Commonly, green is used for bullish (upward) moves and red for bearish (downward) moves.
Trend Lines:
Trend lines are straight lines drawn on a chart that connect a series of price points. Their significance:
1. Uptrend Line: Drawn along the lows, representing support. A break below might indicate a trend reversal.
2. Downtrend Line: Drawn along the highs, indicating resistance. A break above might suggest the start of a bullish trend.
Filled Areas:
These represent a range between two values on a chart, usually shaded or colored. For instance:
1. Bollinger Bands: The area between the upper and lower band is filled, giving a visual representation of volatility.
2. Volume Profile: Can show a filled area representing the amount of trading activity at different price levels.
Stop Loss and Take Profit Lines:
These are horizontal lines representing pre-determined exit points for trades.
1. Stop Loss Line: Indicates the level at which a trade will be automatically closed to limit losses. Positioned according to the trader's risk tolerance.
2. Take Profit Line: Denotes the target level to lock in profits. Set according to potential resistance (for long trades) or support (for short trades) or other technical factors.
Trailing Stop Lines:
A trailing stop is a dynamic form of stop loss that moves with the price. On a chart:
1. For Long Trades: Starts below the entry price and moves up with the price but remains static if the price falls, ensuring profits are locked in.
2. For Short Trades: Starts above the entry price and moves down with the price but remains static if the price rises.
Visual representations offer traders a clear, organized view of market dynamics. Familiarity with these tools ensures that traders can quickly and accurately interpret chart data, leading to more informed decision-making. Always ensure that the visual aids used resonate with your trading style and strategy for the best results.
8. Backtesting
Backtesting is a fundamental process in strategy development, enabling traders to evaluate the efficacy of their strategy using historical data. It provides a snapshot of how the strategy would have performed in past market conditions, offering insights into its potential strengths and vulnerabilities. In this section, we'll explore the intricacies of setting up and analyzing backtest results and the caveats one must be aware of.
Setting Up Backtest Period:
1. Duration: Determine the timeframe for the backtest. It should be long enough to capture various market conditions (bullish, bearish, sideways). For instance, if you're testing a daily strategy, consider a period of several years.
2. Data Quality: Ensure the data source is reliable, offering high-resolution and clean data. This is vital to get accurate backtest results.
3. Segmentation: Instead of a continuous period, sometimes it's helpful to backtest over distinct market phases, like a particular bear or bull market, to see how the strategy holds up in different environments.
Analyzing Backtest Results:
1. Performance Metrics: Examine metrics like the total return, annualized return, maximum drawdown, Sharpe ratio, and others to gauge the strategy's efficiency.
2. Win Rate: It's the ratio of winning trades to total trades. A high win rate doesn't always signify a good strategy; it should be evaluated in conjunction with other metrics.
3. Risk/Reward: Understand the average profit versus the average loss per trade. A strategy might have a low win rate but still be profitable if the average gain far exceeds the average loss.
4. Drawdown Analysis: Review the periods of losses the strategy could incur and how long it takes, on average, to recover.
9. Tips and Best Practices
Successful trading requires more than just knowing how a strategy works. It necessitates an understanding of when to apply it, how to adjust it to varying market conditions, and the wisdom to recognize and avoid common pitfalls. This section offers insightful tips and best practices to enhance the application of the Supertrend Advance Strategy.
When to Use the Strategy:
1. Market Conditions: Ideally, employ the Supertrend Advance Strategy during trending market conditions. This strategy thrives when there are clear upward or downward trends. It might be less effective during consolidative or sideways markets.
2. News Events: Be cautious around significant news events, as they can cause extreme volatility. It might be wise to avoid trading immediately before and after high-impact news.
3. Liquidity: Ensure you are trading in assets/markets with sufficient liquidity. High liquidity ensures that the price movements are more reflective of genuine market sentiment and not due to thin volume.
Adjusting Settings for Different Markets/Timeframes:
1. Markets: Each market (stocks, forex, commodities) has its own characteristics. It's essential to adjust the strategy's parameters to align with the market's volatility and liquidity.
2. Timeframes: Shorter timeframes (like 1-minute or 5-minute charts) tend to have more noise. You might need to adjust the settings to filter out false signals. Conversely, for longer timeframes (like daily or weekly charts), you might need to be more responsive to genuine trend changes.
3. Customization: Regularly review and tweak the strategy's settings. Periodic adjustments can ensure the strategy remains optimized for the current market conditions.
10. Frequently Asked Questions (FAQs)
Given the complexities and nuances of the Supertrend Advance Strategy, it's only natural for traders, both new and seasoned, to have questions. This section addresses some of the most commonly asked questions regarding the strategy.
1. What exactly is the Supertrend Advance Strategy?
The Supertrend Advance Strategy is an evolved version of the traditional Supertrend indicator. It's designed to provide clearer buy and sell signals by incorporating additional indicators like EMA, RSI, MACD, CCI, etc. The strategy aims to capitalize on market trends while minimizing false signals.
2. Can I use the Supertrend Advance Strategy for all asset types?
Yes, the strategy can be applied to various asset types like stocks, forex, commodities, and cryptocurrencies. However, it's crucial to adjust the settings accordingly to suit the specific characteristics and volatility of each asset type.
3. Is this strategy suitable for day trading?
Absolutely! The Supertrend Advance Strategy can be adjusted to suit various timeframes, making it versatile for both day trading and long-term trading. Remember to fine-tune the settings to align with the timeframe you're trading on.
4. How do I deal with false signals?
No strategy is immune to false signals. However, by combining the Supertrend with other indicators and adhering to strict risk management protocols, you can minimize the impact of false signals. Always use stop-loss orders and consider filtering trades with additional confirmation signals.
5. Do I need any prior trading experience to use this strategy?
While the Supertrend Advance Strategy is designed to be user-friendly, having a foundational understanding of trading and market analysis can greatly enhance your ability to employ the strategy effectively. If you're a beginner, consider pairing the strategy with further education and practice on demo accounts.
6. How often should I review and adjust the strategy settings?
There's no one-size-fits-all answer. Some traders adjust settings weekly, while others might do it monthly. The key is to remain responsive to changing market conditions. Regular backtesting can give insights into potential required adjustments.
7. Can the Supertrend Advance Strategy be automated?
Yes, many traders use algorithmic trading platforms to automate their strategies, including the Supertrend Advance Strategy. However, always monitor automated systems regularly to ensure they're operating as intended.
8. Are there any markets or conditions where the strategy shouldn't be used?
The strategy might generate more false signals in markets that are consolidative or range-bound. During significant news events or times of unexpected high volatility, it's advisable to tread with caution or stay out of the market.
9. How important is backtesting with this strategy?
Backtesting is crucial as it allows traders to understand how the strategy would have performed in the past, offering insights into potential profitability and areas of improvement. Always backtest any new setting or tweak before applying it to live trades.
10. What if the strategy isn't working for me?
No strategy guarantees consistent profits. If it's not working for you, consider reviewing your settings, seeking expert advice, or complementing the Supertrend Advance Strategy with other analysis methods. Remember, continuous learning and adaptation are the keys to trading success.
Other comments
Value of combining several indicators in this script and how they work together
Diversification of Signals: Just as diversifying an investment portfolio can reduce risk, using multiple indicators can offer varied perspectives on potential price movements. Each indicator can capture a different facet of the market, ensuring that traders are not overly reliant on a single data point.
Confirmation & Reduced False Signals: A common challenge with many indicators is the potential for false signals. By requiring confirmation from multiple indicators before acting, the chances of acting on a false signal can be significantly reduced.
Flexibility Across Market Conditions: Different indicators might perform better under different market conditions. For example, while moving averages might excel in trending markets, oscillators like RSI might be more useful during sideways or range-bound conditions. A mashup strategy can potentially adapt better to varying market scenarios.
Comprehensive Analysis: With multiple indicators, traders can gauge trend strength, momentum, volatility, and potential market reversals all at once, providing a holistic view of the market.
How do the different indicators in the Supertrend Advance Strategy work together?
Supertrend: This is primarily a trend-following indicator. It provides traders with buy and sell signals based on the volatility of the price. When combined with other indicators, it can filter out noise and give more weight to strong, confirmed trends.
EMA (Exponential Moving Average): EMA gives more weight to recent price data. It can be used to identify the direction and strength of a trend. When the price is above the EMA, it's generally considered bullish, and vice versa.
RSI (Relative Strength Index): An oscillator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions. By cross-referencing with other indicators like EMA or MACD, traders can spot potential reversals or confirmations of a trend.
MACD (Moving Average Convergence Divergence): This indicator identifies changes in the strength, direction, momentum, and duration of a trend in a stock's price. When the MACD line crosses above the signal line, it can be a bullish sign, and when it crosses below, it can be bearish. Pairing MACD with Supertrend can provide dual confirmation of a trend.
CCI (Commodity Channel Index): Initially developed for commodities, CCI can indicate overbought or oversold conditions. It can be used in conjunction with other indicators to determine entry and exit points.
In essence, the synergy of these indicators provides a balanced, comprehensive approach to trading. Each indicator offers its unique lens into market conditions, and when they align, it can be a powerful indication of a trading opportunity. This combination not only reduces the potential drawbacks of each individual indicator but leverages their strengths, aiming for more consistent and informed trading decisions.
Backtesting and Default Settings
• This indicator has been optimized to be applied for 1 hour-charts. However, the underlying principles of this strategy are supply and demand in the financial markets and the strategy can be applied to all timeframes. Daytraders can use the 1min- or 5min charts, swing-traders can use the daily charts.
• This strategy has been designed to identify the most promising, highest probability entries and trades for each stock or other financial security.
• The combination of the qualifiers results in a highly selective strategy which only considers the most promising swing-trading entries. As a result, you will normally only find a low number of trades for each stock or other financial security per year in case you apply this strategy for the daily charts. Shorter timeframes will result in a higher number of trades / year.
• Consequently, traders need to apply this strategy for a full watchlist rather than just one financial security.
• Default properties: RSI on (length 14, RSI buy level 50, sell level 50), EMA, RSI, MACD on, type of strategy pullback, SL/TP type: ATR (length 10, factor 3), trade direction both, quantity 5, take profit swing hl 5.1, highest / lowest lookback 2, enable ATR trail (ATR length 10, SL ATR multiplier 1.4, TP multiplier 2.1, lookback = 4, trade direction = both).
Zemog Channels[Zemogtrading]Channels Strategy
User Description:
This Channels strategy is a powerful technical analysis tool that empowers traders with a comprehensive view of the market's support and resistance levels. Designed for both beginners and experienced traders, this strategy brings a systematic and adaptable approach to chart analysis.
Default Parameters:
Swing Length (SL): 45
Higher Timeframe: Daily (D)
Multiplier for Level 2: 3.5
Multiplier for Level 3: 12
How It Works:
Swing Analysis: The Swing Length (SL) parameter allows users to fine-tune the sensitivity of the strategy. A higher SL value provides a more smoothed-out analysis, ideal for a broader market perspective, while a lower value enhances responsiveness to short-term price movements.
Higher Timeframe Insights: The Channels fetches high and low prices from a user-specified higher timeframe (default: Daily). This ensures that the strategy is well-informed by significant price levels from a broader market context.
Dynamic ATR Calculation: The Average True Range (ATR) adapts dynamically to changing market conditions. This ensures that support and resistance levels adjust in real-time based on the prevailing volatility, providing traders with adaptive insights.
Smoothed Support and Resistance: Utilizing a Smoothed Moving Average (SMA), the strategy calculates support and resistance levels based on high and low prices from the higher timeframe. This smoothing effect enhances clarity in identifying key levels, facilitating more informed trading decisions.
Additional Levels: The Channels introduces Level 2 and Level 3 support and resistance zones. Users can customize multipliers for these levels, allowing for the identification of secondary zones for potential market reversals.
Visualization: The strategy vividly plots support and resistance levels on the chart. Green lines indicate support, red lines denote resistance, and yellow lines represent additional support at Level 3.
Using Channels is a versatile tool that equips traders with a deeper understanding of crucial market levels. By seamlessly integrating swing analysis, higher timeframe data, and adaptive calculations, this strategy offers a holistic and user-friendly approach to technical analysis.
