WaveTrend Oscillator PlusThe WaveTrend based on “Enhanced WaveTrend” of EliCobra. The WaveTrend Oscillator is a popular technical analysis tool used to identify overbought and oversold conditions in the market and generate trading signals. This indicator introduces additional features for improved analysis and comparison across assets.
WaveTrend:
The original WaveTrend indicator calculates two lines based on exponential moving averages and their relationship to the asset's price. The first line measures the distance between the asset's price and its EMA, while the second line smooths the first line over a specific period. The result is divided by 0.015 multiplied by the smoothed difference ('d' for reference). The indicator aims to identify overbought and oversold conditions by analyzing the relationship between the two lines.
In the original formula, the rudimentary estimation factor 0.015 times 'd' fails to accomodate for approximately a quarter of the data, preventing the indicator from reaching the traditional stationary levels of +-100. This limitation renders the indicator quantitatively biased, as it relies on the user's subjective adjustment of the levels. The enhanced version replaces this factor with the standard deviation of the asset's price, resulting in improved estimation accuracy and provides a more dynamic and robust outcome, we thereafter multiply the result by 100 to achieve a more traditional oscillation.
Enhancements and Features:
Dynamic Estimation: The original indicator uses an arbitrary estimation factor, while the enhanced version replaces it with the standard deviation of the asset's price. This modification provides a more dynamic and accurate estimation, adapting to the specific price characteristics of each asset.
Stationary Support and Resistance Levels: The enhanced version provides stationary key support and resistance levels that range from -150 to 150. These levels are determined based on the analysis of the indicator's data and encompass more than 95% of the indicator's values. These levels offer important reference points for traders to identify potential price reversals or significant price movements.
Comparison Across Assets: The enhanced version allows for better comparison and analysis across different assets. By incorporating the standard deviation of the asset's price, the indicator provides a more consistent and comparable interpretation of the market conditions across multiple assets.
Z-Score Analysis:
The Z-Score is a statistical measurement that quantifies how far a particular data point deviates from the mean in terms of standard deviations. In the enhanced version, the calculation involves determining the basis (mean) and deviation (standard deviation) of the asset's price to calculate its Z-Score, thereafter applying a smoothing technique to generate the final WaveTrend value.
Utility:
The offers traders and investors valuable insights into overbought and oversold conditions in the market. By analyzing the indicator's values and referencing the stationary support and resistance levels, traders can identify potential trend reversals, evaluate market strength, and make better informed analysis.
The following indicators were added:
⎆⎆ Squeeze Momentum Indicator
⎆⎆ Elliott Wave Oscillator
⎆⎆ Expert Trend Locator
Cari skrip untuk "bias"
Monte Carlo Shuffled Projection [LuxAlgo]The Monte Carlo Shuffled Projection tool randomly simulates future price points based on historical bar movements made within a user-selected window.
The tool shows potential paths price might take in the future, as well as highlighting potential support/resistance levels.
Note that simulations and their resulting elements are subject to slight changes over time.
🔶 USAGE
By randomly simulating bar movements, a range is developed of potential price action which could be utilized to locate future price development as well as potential support/resistance levels.
Performing a large number of simulations and taking the average at each step will converge toward the result highlighted by the "Average Line", and can point out where the price might develop assuming the trend and amount of volatility persist.
Current closing price + Sum of changes in the calculation window)
This constraint will cause the simulations to always display an endpoint consistent with the current lookback's slope.
While this may be helpful to some traders, this indicator includes an option to produce a less biased range as seen below:
🔶 DETAILS
The Monte Carlo Shuffled Projection tool creates simulations based on the most recent prices within a user-set window. Simulations are done as follows:
Collect each bar's price changes in the user-set window.
Randomize the order of each change in the window.
Project the cumulative sum of the shuffled changes from the current closing price.
Collect data on each point along the way.
This is the process for the Default calculation, for the 'Randomize Direction' calculation, when added onto the front for every other change, the value is inverted, creating the randomized endpoints for each simulation.
The script contains each simulation's data for that bar with a maximum of 1000 simulations.
To get a glimpse behind the scenes each simulation (up to 99) can be viewed using the 'Visualize Simulations' Options as seen below.
Because the script holds the full simulation data, the script can also do calculations on this data, such as calculating standard deviations.
In this script the Standard deviation lines are the average of all standard deviations across the vertical data groups, this provides a singular value that can be displayed a distance away from the simulation center line.
🔶 SETTINGS
Color and Toggle Options are Provided throughout.
Lookback: Sets the number of Bars to include in calculations.
Simulation Count: Sets the number of randomized simulations to calculate. (Max 1000)
Randomize Direction: See Details Above. Creates a more 'Normalized' Distribution
Visualize Simulations: See Details Above. Turns on Visualizations, and colors are randomly generated. Visualized max does not cap the calculated max. If 1000 simulations are used, the data will be from 1000 simulations, however only the last 99 simulations will be visualized.
Standard Deviation Multiplier: Sets the multiplier to use for the Standard Deviation distance away from the center line.
Kalman Filter Volume Bands by TenozenHello there! I am excited to introduce a new original indicator, the Kalman Filter Volume Bands. This indicator is calculated using the Kalman Filter, which is an adaptive-based smoothing quantitative tool. The Kalman Filter Volume Bands have two components that support the calculation, namely VWAP and VaR.
VWAP is used to determine the weight of the Kalman Filter Returns, but it doesn't have a significant impact on the calculation. On the other hand, VaR or Value at risk is calculated using the 99th percentile, which means that there is a 1% chance for the returns to exceed the 99th percentile level. After getting the VaR value, I manually adjust the bands based on the current market I'm trading on. I take the highest point (VaR*2) and the lowest point (-(VaR*2)) from the Kalman Filter, and then divide them into segments manually based on my preference.
This process results in 8 segments, where 2 segments near the Kalman Filter are further divided, making a total of 12 segments. These segments classify the current state of the price based on code-based coloring. The five states are very bullish, bullish, very bearish, bearish, and neutral.
I created this indicator to have an adaptive band that is not biased toward the volatility of the market. Most band-based indicators don't capture reversals that well, but the Kalman Filter Volume Bands can capture both trends and reversals. This makes it suitable for both trend-following and reversal trading approaches.
That's all for the explanation! Ciao!
Additional Reminder:
- Please use hourly timeframes or higher as lower timeframes are too noisy for reliable readings of this indicator.
Trend Regression Kernel [IkkeOmar]Kernel by @jdehorty huge shoutout to him! This is only an idea for how I use it when trading
All credit for the kernel goes to him, I did not make the kernel! I don't know how to make it more clear.
I use this to assist with top-down analysis.
timeframe I want to trade : timeframe to analyse with white noise and kernel:
1m : 1H
5m : 2H
15m : 4H
1H : 1D
In the chart you see that I have the 1H open, I use the white noise at a "lower setting length" (55 in this case), I change the source of to be the kernel on the higher timeframe. When a new trend is detected by the White noise I wait for price to retest the kernel before building a position. Another case described below:
Here i use the adaptive MCVF (I have made this free for everyone on TradingView) to buy when price is below the kernel while the trend for the white noise is bullish .
Notice that the Kernel is set on the 4H timeframe! The source of the white noise is the kernel!
Here is an example in a bearish trend:
Notice, I am on the 5m chart, kernel uses the 2H chart and the source of the white noise is the kernel.
I use the adaptive MCVF to help me get entries AFTER the first touch of the kernel.
Mandatory code explanation, with respect to the house rules:
Input settings:
Input Settings:
The script provides various input parameters to customize the indicator:
src: The source of price data, defaulted to closing prices.
h, r, x_0: Parameters for Kernel 1.
h2, r2, x_2: Parameters for Kernel 2.
Kernel Regression Functions:
Two functions kernel_regression1 and kernel_regression2 are defined to perform kernel regression calculations.
These functions estimate the trend using the Nadaraya-Watson kernel non-parametric regression method.
They take the source data (_src), the size of the data series (_size), and the lookback window (_h) as inputs.
They iterate over the data series and calculate the weighted sum of the values based on the specified kernel parameters.
The result is divided by the cumulative weight to obtain the estimated value.
Estimations:
The kernel_regression1 and kernel_regression2 functions are called with the respective parameters to estimate trends (yhat1 and yhat2).
Buy and Sell Signals:
Buy and sell signals are generated based on crossover and crossunder conditions between the two trend estimates (yhat1 and yhat2).
buySignal is true when yhat1 crosses above yhat2.
SellSignal is true when yhat1 crosses below yhat2.
Plotting:
The average of the two trend estimates (yhat1 and yhat2) is calculated and plotted.
The color of the plot is determined based on whether yhat1 is greater than yhat2, less than yhat2, or equal to yhat2.
Buy and sell signals are plotted using triangle shapes below and above bars, respectively.
Alerts:
Alert conditions are set based on buy and sell signals. Alerts are triggered when a crossover (long signal) or crossunder (short signal) occurs.
The alerts include information about the signal type, symbol, and price.
It's important to mention that the buy and sell signals from the indicator is very discretionary, I rarely use them, and if I do it's if they are in confluence with a correction i am biased towards or if it has confluence with some of my other systems.
The adaptive MCVF and White noise is free for everyone on TradingView, linked below:)
Huge shoutout to @jdehorty, original kernel below:
COSTAR [SS]This idea came to me after I wrote the post about Co-Integration and pair trading. I wondered if you could use pair trading principles as a way to determine overbought and oversold conditions in a more neutral way than RSI or Stochastics.
The results were promising and this indicator resulted :-)!
About:
COSTAR provides another, more neutral way to determine whether an equity is overbought or oversold.
Instead of relying on the traditional oscillator based ways, such as using RSI, Stochastics and MFI, which can be somewhat biased and narrow sided, COSTAR attempts to take a neutral, unbiased approached to determine overbought and oversold conditions. It does this through using a co-integrated partner, or "pair" that is closely linked to the underlying equity and succeeds on both having a high correlation and a high t-statistic on the ADF test. It then references this underlying, co-integrated partner as the "benchmark" for the co-integration relationship.
How this succeeds as being "unbiased" and "neutral" is because it is responsive to underlying drivers. If there is a market catalyst or just general bullish or bearish momentum in the market, the indicator will be referencing the integrated relationship between the two pairs and referencing that as a baseline. If there is a sustained rally on the integrated partner of the underlying ticker that is holding, but the other ticker is lagging, it will indicate that the other ticker is likely to be under-valued and thus "oversold" because it is underperforming its benchmark partner.
This is in contrast to traditional approaches to determining overbought and oversold conditions, which rely completely on a single ticker, with no external reference to other tickers and no control over whether the move could potentially be a fundamental move based on an industry or sector, or whether it is a fluke or a squeeze.
The control for this giving "false" signals comes from its extent of modelling and assessment of the degree of integration of the relationship. The parameters are set by default to assess over a 1 year period, both the correlation and the integration. Anything that passes this degree of integration is likely to have a solid, co-integrated state and not likely to be a "fluke". Thus, the reliability of the assessment is augmented by the degree of statistical significance found within the relationship. The indicator is not going to prompt you to rely on a relationship that is statistically weak, and will warn you of such.
The indicator will show you all the information you require regarding the relationship and whether it is reliable or not, so you do not need to worry!
How to Use
The first step to use COSTAR is identifying which ticker has a strong relationship with the current ticker. In the main chart, you will see that SPY is overlaid with VIX. There is a strong, negative correlation between the VIX and SPY. When VIX is entered as the paired ticker, the indicator returns the data as stationary, indicating a compatible match.
Now you have 3 ways of viewing this relationship, 2 of which are going to be directly applicable to trading.
You can view them as
Price to Price Ratio (Not very useful for trading, but if you are curious)
Z-Score: Helpful for trading
Co-integration: Helpful for trading
Here is an example of all three:
Example of Z-Score Chart:
Example of Price Ratio:
Example of Co-Integration Pair:
Using for Trading
As stated above, the two best ways to use this for trading is to either use the Z-Score Chart or the Co-Integrated Pair chart.
The Z-Score chart is based off of the price ratio data and provides an assessment of both the independent and dependent data.
The co-integration shows the dependent (the ticker you are trading) in yellow and the independent (the ticker you are referencing) in teal. When teal is above yellow, you will see it is green. This means, based on your benchmark pair, there is still more up room and the ticker you are trading is actually lagging behind.
When the yellow crosses up, it will turn red. This means that your ticker is out-performing the benchmark pair and you likely will see pullback and a "regression to the mean" through re-integration.
The indicator is capable of plotting out entries and exits, which are guided by the z-score:
How Effective is it?
I created a basic strategy in Pinescript, and the back-test results vary. Trading ES1! using NQ1! as the co-integrated pair, results were around 78% effective.
With VIX, results were around 50% effective, but with a net profit.
Generally, the efficacy surpassed that of both stochastics and RSI.
I will be releasing the strategy version of this in the coming days, still just cleaning up that code and making it more "public use" friendly.
Other Applications
If you are a pair trader, you can technically use this for pair trading as well. That's essentially all this is doing :-).
Tips
If you are trading a ticker such as MSFT, AMD, KO etc., it's best to try to find an ETF or index that has that particular ticker as a large holding and use that as your benchmark. You will see on the indicator whether there is a high correlation and whether the data is indeed stationary.
If the indicator returns "Non-stationary", you can attempt to extend your regression range from 252 to 500. If this fixes the issue, ensure that the correlation is still >= 0.5 or <= -0.5. If this does not work still, you will need to find another pair, as its likely the result of incompatibility and an insignificant relationship.
To help you identify tickers with strong relationships, consider using a correlation heatmap indicator. I have one available and I think there are a couple of other similar ish ones out there. You want to make sure the relationship is stable over time (a correlation of >= 0.50 or <= -0.5 over the past 252 to 500 days).
IMPORTANT: The long and short exits delete the signal after one is signaled. Therefore, when you look back in the chart you will notice there are no signals to exit long or short. That is because they signal as they happen. This is to keep the chart clean.
'Tis all my friends!
Hope you enjoy and let me know your questions and suggestions below!
Side note:
COSTAR stands for Co-integration Statistical Analysis and Regression. ;)
Enhanced WaveTrend OscillatorThe Enhanced WaveTrend Oscillator is a modified version of the original WaveTrend. The WaveTrend indicator is a popular technical analysis tool used to identify overbought and oversold conditions in the market and generate trading signals. The enhanced version addresses certain limitations of the original indicator and introduces additional features for improved analysis and comparison across assets.
WaveTrend:
The original WaveTrend indicator calculates two lines based on exponential moving averages and their relationship to the asset's price. The first line measures the distance between the asset's price and its EMA, while the second line smooths the first line over a specific period. The result is divided by 0.015 multiplied by the smoothed difference ('d' for reference). The indicator aims to identify overbought and oversold conditions by analyzing the relationship between the two lines.
In the original formula, the rudimentary estimation factor 0.015 times 'd' fails to accomodate for approximately a quarter of the data, preventing the indicator from reaching the traditional stationary levels of +-100. This limitation renders the indicator quantitatively biased, as it relies on the user's subjective adjustment of the levels. The enhanced version replaces this factor with the standard deviation of the asset's price, resulting in improved estimation accuracy and provides a more dynamic and robust outcome, we thereafter multiply the result by 100 to achieve a more traditional oscillation.
Enhancements and Features:
The enhanced version of the WaveTrend indicator addresses several limitations of the original indicator and introduces additional features-
Dynamic Estimation: The original indicator uses an arbitrary estimation factor, while the enhanced version replaces it with the standard deviation of the asset's price. This modification provides a more dynamic and accurate estimation, adapting to the specific price characteristics of each asset.
Stationary Support and Resistance Levels: The enhanced version provides stationary key support and resistance levels that range from -150 to 150. These levels are determined based on the analysis of the indicator's data and encompass more than 95% of the indicator's values. These levels offer important reference points for traders to identify potential price reversals or significant price movements.
Comparison Across Assets: The enhanced version allows for better comparison and analysis across different assets. By incorporating the standard deviation of the asset's price, the indicator provides a more consistent and comparable interpretation of the market conditions across multiple assets.
Upon closer inspection of the modification in the enhanced version, we can observe that the resulting indicator is a smoothed variation of the Z-Score!
f_ewave(src, chlen, avglen) =>
basis = ta.ema(src, chlen)
dev = ta.stdev(src, chlen)
wave = (src - basis) / dev * 100
ta.ema(wave, avglen)
Z-Score Analysis:
The Z-Score is a statistical measurement that quantifies how far a particular data point deviates from the mean in terms of standard deviations. In the enhanced version, the calculation involves determining the basis (mean) and deviation (standard deviation) of the asset's price to calculate its Z-Score, thereafter applying a smoothing technique to generate the final WaveTrend value.
Utility:
The 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗪𝗧 indicator offers traders and investors valuable insights into overbought and oversold conditions in the market. By analyzing the indicator's values and referencing the stationary support and resistance levels, traders can identify potential trend reversals, evaluate market strength, and make better informed analysis.
It is important to note that this indicator should be used in conjunction with other technical analysis tools and indicators to confirm trading signals and validate market dynamics.
Credit:
The 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗪𝗧 indicator is a modification of the original WaveTrend Oscillator developed by @LazyBear on TradingView.
Example Charts:
Buyside & Sellside Liquidity [LuxAlgo]The Buyside & Sellside Liquidity indicator aims to detect & highlight the first and arguably most important concept within the ICT trading methodology, Liquidity levels.
🔶 SETTINGS
🔹 Liquidity Levels
Detection Length: Lookback period
Margin: Sets margin/sensitivity for a liquidity level detection
🔹 Liquidity Zones
Buyside Liquidity Zones: Enables display of the buyside liquidity zones.
Margin: Sets margin/sensitivity for the liquidity zone boundaries.
Color: Color option for buyside liquidity levels & zones.
Sellside Liquidity Zones: Enables display of the sellside liquidity zones.
Margin: Sets margin/sensitivity for the liquidity zone boundaries.
Color: Color option for sellside liquidity levels & zones.
🔹 Liquidity Voids
Liquidity Voids: Enables display of both bullish and bearish liquidity voids.
Label: Enables display of a label indicating liquidity voids.
🔹 Display Options
Mode: Controls the lookback length of detection and visualization, where Present assumes last 500 bars and Historical assumes all data available to the user
# Visible Levels: Controls the amount of the liquidity levels/zones to be visualized.
🔶 USAGE
Definitions of Liquidity refer to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.
In the context of Inner Circle Trader's teachings, liquidity mainly relates to stop losses or pending orders and liquidity level/pool, highlighting a concentration of buy or sell orders at specific price levels. Smart money traders, such as banks and other large institutions, often target these liquidity levels/pools to accumulate or distribute their positions.
There are two types of liquidity; Buyside liquidity and Sellside liquidity .
Buyside liquidity represents a level on the chart where short sellers will have their stops positioned, and Sellside liquidity represents a level on the chart where long-biased traders will place their stops.
These areas often act as support or resistance levels and can provide trading opportunities.
When the liquidity levels are breached at which many stop/limit orders are placed have been traded through, the script will create a zone aiming to provide additional insight to figure out the odds of the next price action.
Reversal: It’s common that the price may reverse course and head in the opposite direction, seeking liquidity at the opposite extreme.
Continuation: When the zone is also broken it is a sign for continuation price action.
It's worth noting that ICT concepts are specific to the methodology developed by Michael J. Huddleston and may not align with other trading approaches or strategies.
🔶 DETAILS
Liquidity voids are sudden changes in price when the price jumps from one level to another. Liquidity voids will appear as a single or a group of candles that are all positioned in the same direction. These candles typically have large real bodies and very short wicks, suggesting very little disagreement between buyers and sellers. The peculiar thing about liquidity voids is that they almost always fill up.
🔶 ALERTS
When an alert is configured, the user will have the ability to be notified in case;
Liquidity level is detected/updated.
Liquidity level is breached.
🔶 RELATED SCRIPTS
ICT-Concepts
ICT-Macros
Imbalance-Detector
Deviations from ARL (DARL)Similar to Bollinger Bands, this indicator uses standard deviations but from Adaptive Rebound Lines (See: 'ARL').
The adaptiveness of the 'ARL' is further affected by volatility and helps greatly in spotting the possible strength and direction of rebounds.
All this information is presented with minimal lag thanks to the rebound qualities of the 'ARL' adapting to market volatility.
----- HOW TO USE IT -----
1) Use with 1h time frame.
2) Smaller width typically means that price will be moving is smaller movements.
3) Small price movements while the width is increasing typically means that a large price move will occur soon.
4) Larger width typically means that price will be moving in larger movements.
5) Very large width with sideways price typically means that the price will have a bias towards the center.
Note: A V-Offset of 1 is also a good setting alternative for this indicator.
----- HOW THIS INDICATOR IS ORIGINAL; WHAT IT DOES AND HOW IT DOES IT -----
This indicator has an original, unique ability in anticipating the strength and direction of a price rebound while at the same time showing the bias of the rebound with minimal lag.
It does this by letting the adaptive qualities of the 'ARL' be affected by market volatility, not just by price movement alone.
----- VERSION -----
This indicator is not a variation, replacement, or presentation of the 'ARL' or the 'ARL' Bands -- it merely derives its base calculations for standard deviations from the 'ARL'.
However, this indicator affects the calculations of the standard 'ARL' with volatility and creates a new, unique calculation.
It thus presents a totally different context for price action.
A standard 'ARL' helps in finding possible rebounds but it does not help in finding the strength of them or the directional bias of a rebound.
This is because a standard 'ARL' is more negligent of market volatility and adapts to price movement alone.
In contrast, this indicator does help in anticipating the strength and direction of the rebound because it adapts deviations from an 'ARL' to market volatility.
Therefore, the lines cannot be adjusted individually but in pairs and only further from their respective, mirroring lines.
Strategy Template + Performance & Returns table + ExtrasA script I've been working on since summer 2022. A template for any strategy so you just have to write or paste the code and go straight into risk management settings
Features:
>Signal only Longs/only Shorts/Both
>Leverage system
>Proper fees calculation (even with leverage on)
>Different Stop Loss systems: Simple percentage, 4 different "move to Break Even" systems and Scaling SL after each TP order (read the disclaimer at the bottom regarding this and the TV % profitable metric)
>2 Take Profit systems: Simple percentages, or Risk/reward ratios based on SL level
>Additional option on TP so last one "rides free" until closure of position or Stoploss is hit (for more than 1 orders)
>Up to 5 TP orders
>Show or hide SL/TP levels on demand
>2 date filters. Manual filter is nothing new, enter two dates/hours and filter will turn on. BUT automatic filter is another thing (thanks to user @bfr_ for his help in codingthis feature)
>AUTOMATIC DATE FILTER. Allows you to split all historical data on the chart in X periods, then choose the range of periods used. Up to 10 but that can be changed, instructions included. Useful for WalkForward simulations, haven't seen a script in TradingView that allows you to do this and test your strategy on "unseen data" automatically
EXTRA SETTINGS
Besides, some additions I like to add to my codes:
>Returns table for monthly and weekly performance. Requires recalculation on every tick. This is a modified version of @QuantNomad's work. May add lower TF options later on
>Volume Based S/R system. Original work from @shtcoinr
>One feature that was made by me, the "portfolio table". Yields info and metrics of your strategy, current position and balance. You're able to turn it off and change its size
Should anyone find an error, or have any idea on how to improve this code, please contact me. Future updates could come, stay tuned
DISCLAIMER:
In order to have accurate StopLoss hit, I had to change the previous system, which was a "close position on candle close" instead at actual stoploss level. It was fixed, but resulted on inflation of the number of trading orders, thus reducing the percent profitable and making it strongly biased and unreal. Keep that in mind, that "real" profitability could be 2x or 3x the metric TradingView says. If your strategy has a really high trading frequency, resulting in 3000+ orders, might be a problem. Try to make use of the automatic/manual date filter as workaround, I have no means of changing this, seems it is not a bug but an intended design of the PineScript Code
Volatility Percentile (H-LINES)A simple script that adjusts the Volatility Percentile Indicator visibly in order to better accommodate entries/exits and certain trading setups/strategies.
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TL;DR - Remember after a full reset, we are looking for initial crosses UP on the UpperSwingline and crosses DOWN on the LowerSwingline for primary and secondary signal derivation.
Vice versa also works great but the prior method mentioned is a little more consistent in my experience, but you should mess around and optimise this for your own setups and strategies anyway.
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ORIGINAL SCRIPT HERE:
^Click image for a redirect to that script.
ALL CREDIT GOES TO: www.tradingview.com
He wrote everything so give credit where it's due, good bit of kit this here script is.
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HOW I USE MY VISUALLY ALTERED VERSION OF THIS SCRIPT
First of all, the alterations I've made seem only to be consistently viable with renko charts though if you can get the sought after results using candles or any other chart type then perfect, but be wary. All my back-testing done only with LinReg, HMA and SWMA - ATR type settings exclusively on renko charts. The changes I've made to the original script essentially just turns it visibly into an oscillator and uses a couple horizontal lines to generate signals, very simple - absolutely nothing has changed in the actual code of calculating this indicator.
What I believe my adjustments have achieved is quite simple. A full reset/oscillation on the indicator tries to map the strongest parts of a move or at least the part of the move where volume and the rate of transactions is at its peak to even facilitate said move. *take this statement with a pinch of salt though I do believe it's interacting with accumulation/distribution patterns, which is expected of volatility*
For ease of communication let's refer to the area between the the first UpperSwingline cross to the subsequent LowerSwingline cross, as the primary move. Then afterwards when it crosses the UpperSwingline again to make the full reset, the area in between those two points referred to as the secondary move.
Though more interestingly/practically the indicator ends up giving you two signals. In order for this to work we have to first decide that a spike up in volatility which crosses the UpperSwingline implies a significant level of interest at that price level. Usually that means a reversal is brewing, if price has already moved, trended and is approaching a certain area of value; which causes a spike of new positions to be taken, then you know that this is a level where contrarians are looking to enter. Now here's the tricky part, when volatility crosses the LowerSwingline price action becomes a little more open for interpretation, the way I personally like to look at this secondary signal is the potential for an exhaustion period to prolong itself a little longer. I know that's not the perfect analysis for what's going on, a more in-depth look into what's going on would best be described using Elliott Wave Theory, if a cross on the UpperSwingline near a significant area of value gives us a reversal trade lets just assume for the sake of argument that a new Elliott Wave can begin forming here. Making the move from that initial UpperSwngline cross to the cross on the LowerSwingline, the area that encompasses those two points: the impulse wave. After this point my analogy kind of falls apart and sadly my knowledge just isn't what it needs to be in order for me to properly analyse what's going on here but I must digress. Price after crossing the LowerSwingline up until the point where it makes a full reset by crossing the UpperSwingline again, within this area price seems to do either one of two things:
Situation 1 - Most likely occurs after a major trend reversal from major support/resistance or area of value (price has trended to new territory, maybe spent time a little time consolidating but hasn't broken the key level, momentum shifts, price action breaks current structure and you get the signal that primary move is a reversal) = Exhaustion Period, price will continue in direction of primary move during the secondary move. This here is for our trend-followers, you wanna take a continuation trade? Just wait for the pullback/rally to hit a FiB retracement level and enter - or any other means to find a decent support/resistance to enter.
Situation 2 - Most likely occurs when market enters a range or consolidation (price was previously seen as being at either a discount or premium so Situation 1 could have already played out and now you're looking at a full reset after that, imagine this spot to be the centre line of a linear regression channel or bang in the middle of your range, could even occur if price breaks a key moving average and decides it ought to consolidate around it for a while. Basically at any point where a somewhat prolonged consolidation is expected and not a quick reversal) = Corrective Wave, price will move against the direction of primary move during the secondary move. Now you might be expecting me to say this ones for you reversal traders but not really, if this is occurring then there probably isn't a definitive direction the market has chosen so you can use this opportunity to take range trades in the direction or against the direction of whatever the current trend or latest trend was depending on whatever slight bias you may have. <--- Situation 2 is very useful for finding cleaner entries if you do have a trend bias, say price underwent Situation 1, is now at key moving average but your bias is that it will break and continue up, so you wait and allow the secondary move of Situation 2 to take your entry to a much better R:R before entering a position.
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Hurst Exponent Trend filterHello Traders !!
Hurst Exponent Trend filter utalises the Hurst Exponent and VAWMA (one of my other unique indicators - check my script publishings to use) to categorise the market and decide whether its Trending, H > 0.5, In random Geometric Brownian Motion (GBM) H = 0.5 or Mean reverting (Contrarian), H < 0.5, When Trending a Trend following indicator -The VAWMA- is color highlighted, By doing so, theoreticaly price noise is eleimnated leaving statsitcaly true zones of price action Trend.
What is The Hurst Exponent ?
Developed by The Hydrologist Edwin Harlod Hurst, The Hurst Exponent measures auto correlation in time series sets, Its first applicartions were in the natural world, e.g. in measureing the volume of water in a river.
Although since then it has had applications in Finance, this may be largly due to autocorrelation functions being usefull tools in univaritae time series anaylyis.
The Hurst Exponent (H) aims to segment the market into three differnet states, Trending (H > 0.5), Random Geometric Brownian Motion (H = 0.5) and Mean Reverting / Contrarian (H < 0.5). In my interpritation this can be used as a trend filter that iliminates market noise, which may be achived by only focusing on trending zones.
How to Interprit the Indicator :
Focusing on the Above image, When H > 0.5 A trend is presnet, to decide the directional bias, both VAWMA`s position is checked, given the fast VAWMA > slow VAWMA and the current close > the fast VAWMA a bulish bias is present, signafied by a vibrant green fill between the fast VAWMA and price action. note the exact opposite logic for a bearish bias and H > 0.5 (signafied by a vibrant red fill). .
I will continue to update this Trading Indicator.
PS : Thats given I can hopfully remmember
Happy Trading !!
[XRP][1h] Chanu Delta inspired — Breakeven StrategyHello, this is my first TV contribution. I usually don't publish anything but the script is a quick review of an other contributor (Chanu Delta V3 script )
I reverse engineered this indicator today as I wanted to test it on other contracts. The original version (which aims to be traded on BTC) has been ported to XRP (as btc and xrp prices are narrowly correlated) then modified with a couple of what I believe are improvements:
- No backtest bias even with `security` function.
- Extra backtest bias validation, always trading on next bar as Crossover/under bias is confirmed
- Backtest with 2 ajustable TP, ajustable equity and breakeven option
- The current version is not design to use pyramiding as it would require extra logic to monitor the lifecycle of the position in the context of a study.
- Commented alerts examples with variables available in script scope so you can use them in alerts (just replace strategy with indicator and remove backtest related code block).
- Trade filling assumption set to 10, fees to 0.02 as the are default bybit maker fees and I advice to enter with trailing orders using a max of 2 ticks as offset to lower fees rather than a market order!
- Backtest and Alerts happen on barclose.
- No repaint guaranteed.
There are a thousand ways to improve it (adx/bb based dynamic TP/SL, order lifecycle, pyramiding...) but it seems to be a cool starting point.
Don't forget to have fun!
Delta Volume Channels [LucF]█ OVERVIEW
This indicator displays on-chart visuals aimed at making the most of delta volume information. It can color bars and display two channels: one for delta volume, another calculated from the price levels of bars where delta volume divergences occur. Markers and alerts can also be configured using key conditions, and filtered in many different ways. The indicator caters to traders who prefer chart visuals over raw values. It will work on historical bars and in real time, using intrabar analysis to calculate delta volume in both conditions.
█ CONCEPTS
Delta Volume
The volume delta concept divides a bar's volume in "up" and "down" volumes. The delta is calculated by subtracting down volume from up volume. Many calculation techniques exist to isolate up and down volume within a bar. The simplest techniques use the polarity of interbar price changes to assign their volume to up or down slots, e.g., On Balance Volume or the Klinger Oscillator . Others such as Chaikin Money Flow use assumptions based on a bar's OHLC values. The most precise calculation method uses tick data and assigns the volume of each tick to the up or down slot depending on whether the transaction occurs at the bid or ask price. While this technique is ideal, it requires huge amounts of data on historical bars, which usually limits the historical depth of charts and the number of symbols for which tick data is available.
This indicator uses intrabar analysis to achieve a compromise between the simplest and most precise methods of calculating volume delta. In the context where historical tick data is not yet available on TradingView, intrabar analysis is the most precise technique to calculate volume delta on historical bars on our charts. TradingView's Volume Profile built-in indicators use it, as do the CVD - Cumulative Volume Delta Candles and CVD - Cumulative Volume Delta (Chart) indicators published from the TradingView account . My Volume Delta Columns Pro indicator also uses intrabar analysis. Other volume delta indicators such as my Realtime 5D Profile use realtime chart updates to achieve more precise volume delta calculations. Indicators of that type cannot be used on historical bars however; they only work in real time.
This is the logic I use to assign intrabar volume to up or down slots:
• If the intrabar's open and close values are different, their relative position is used.
• If the intrabar's open and close values are the same, the difference between the intrabar's close and the previous intrabar's close is used.
• As a last resort, when there is no movement during an intrabar and it closes at the same price as the previous intrabar, the last known polarity is used.
Once all intrabars making up a chart bar have been analyzed and the up or down property of each intrabar's volume determined, the up volumes are added and the down volumes subtracted. The resulting value is volume delta for that chart bar, which can be used as an estimate of the buying/selling pressure on an instrument.
Delta Volume Percent (DV%)
This value is the proportion that delta volume represents of the total intrabar volume in the chart bar. Note that on some symbols/timeframes, the total intrabar volume may differ from the chart's volume for a bar, but that will not affect our calculations since we use the total intrabar volume.
Delta Volume Channel
The DV channel is the space between two moving averages: the reference line and a DV%-weighted version of that reference. The reference line is a moving average of a type, source and length which you select. The DV%-weighted line uses the same settings, but it averages the DV%-weighted price source.
The weight applied to the source of the reference line is calculated from two values, which are multiplied: DV% and the relative size of the bar's volume in relation to previous bars. The effect of this is that DV% values on bars with higher total volume will carry greater weight than those with lesser volume.
The DV channel can be in one of four states, each having its corresponding color:
• Bull (teal): The DV%-weighted line is above the reference line.
• Strong bull (lime): The bull condition is fulfilled and the bar's close is above the reference line and both the reference and the DV%-weighted lines are rising.
• Bear (maroon): The DV%-weighted line is below the reference line.
• Strong bear (pink): The bear condition is fulfilled and the bar's close is below the reference line and both the reference and the DV%-weighted lines are falling.
Divergences
In the context of this indicator, a divergence is any bar where the slope of the reference line does not match that of the DV%-weighted line. No directional bias is assigned to divergences when they occur.
Divergence Channel
The divergence channel is the space between two levels (by default, the bar's low and high ) saved when divergences occur. When price has breached a channel and a new divergence occurs, a new channel is created. Until that new channel is breached, bars where additional divergences occur will expand the channel's levels if the bar's price points are outside the channel.
Prices breaches of the divergence channel will change its state. Divergence channels can be in one of five different states:
• Bull (teal): Price has breached the channel to the upside.
• Strong bull (lime): The bull condition is fulfilled and the DV channel is in the strong bull state.
• Bear (maroon): Price has breached the channel to the downside.
• Strong bear (pink): The bear condition is fulfilled and the DV channel is in the strong bear state.
• Neutral (gray): The channel has not been breached.
█ HOW TO USE THE INDICATOR
Load the indicator on an active chart (see here if you don't know how).
The default configuration displays:
• The DV channel, without the reference or DV%-weighted lines.
• The Divergence channel, without its level lines.
• Bar colors using the state of the DV channel.
The default settings use an Arnaud-Legoux moving average on the close and a length of 20 bars. The DV%-weighted version of it uses a combination of DV% and relative volume to calculate the ultimate weight applied to the reference. The DV%-weighted line is capped to 5 standard deviations of the reference. The lower timeframe used to access intrabars automatically adjusts to the chart's timeframe and achieves optimal balance between the number of intrabars inspected in each chart bar, and the number of chart bars covered by the script's calculations.
The Divergence channel's levels are determined using the high and low of the bars where divergences occur. Breaches of the channel require a bar's low to move above the top of the channel, and the bar's high to move below the channel's bottom.
No markers appear on the chart; if you want to create alerts from this script, you will need first to define the conditions that will trigger the markers, then create the alert, which will trigger on those same conditions.
To learn more about how to use this indicator, you must understand the concepts it uses and the information it displays, which requires reading this description. There are no videos to explain it.
█ FEATURES
The script's inputs are divided in four sections: "DV channel", "Divergence channel", "Other Visuals" and "Marker/Alert Conditions". The first setting is the selection method used to determine the intrabar precision, i.e., how many lower timeframe bars (intrabars) are examined in each chart bar. The more intrabars you analyze, the more precise the calculation of DV% results will be, but the less chart coverage can be covered by the script's calculations.
DV Channel
Here, you control the visibility and colors of the reference line, its weighted version, and the DV channel between them.
You also specify what type of moving average you want to use as a reference line, its source and length. This acts as the DV channel's baseline. The DV%-weighted line is also a moving average of the same type and length as the reference line, except that it will be calculated from the DV%-weighted source used in the reference line. By default, the DV%-weighted line is capped to five standard deviations of the reference line. You can change that value here. This section is also where you can disable the relative volume component of the weight.
Divergence Channel
This is where you control the appearance of the divergence channel and the key price values used in determining the channel's levels and breaching conditions. These choices have an impact on the behavior of the channel. More generous level prices like the default low and high selection will produce more conservative channels, as will the default choice for breach prices.
In this section, you can also enable a mode where an attempt is made to estimate the channel's bias before price breaches the channel. When it is enabled, successive increases/decreases of the channel's top and bottom levels are counted as new divergences occur. When one count is greater than the other, a bull/bear bias is inferred from it.
Other Visuals
You specify here:
• The method used to color chart bars, if you choose to do so.
• The display of a mark appearing above or below bars when a divergence occurs.
• If you want raw values to appear in tooltips when you hover above chart bars. The default setting does not display them, which makes the script faster.
• If you want to display an information box which by default appears in the lower left of the chart.
It shows which lower timeframe is used for intrabars, and the average number of intrabars per chart bar.
Marker/Alert Conditions
Here, you specify the conditions that will trigger up or down markers. The trigger conditions can include a combination of state transitions of the DV and the divergence channels. The triggering conditions can be filtered using a variety of conditions.
Configuring the marker conditions is necessary before creating an alert from this script, as the alert will use the marker conditions to trigger.
Markers only appear on bar closes, so they will not repaint. Keep in mind, when looking at markers on historical bars, that they are positioned on the bar when it closes — NOT when it opens.
Raw values
The raw values calculated by this script can be inspected using a tooltip and the Data Window. The tooltip is visible when you hover over the top of chart bars. It will display on the last 500 bars of the chart, and shows the values of DV, DV%, the combined weight, and the intermediary values used to calculate them.
█ INTERPRETATION
The aim of the DV channel is to provide a visual representation of the buying/selling pressure calculated using delta volume. The simplest characteristic of the channel is its bull/bear state. One can then distinguish between its bull and strong bull states, as transitions from strong bull to bull states will generally happen when buyers are losing steam. While one should not infer a reversal from such transitions, they can be a good place to tighten stops. Only time will tell if a reversal will occur. One or more divergences will often occur before reversals.
The nature of the divergence channel's design makes it particularly adept at identifying consolidation areas if its settings are kept on the conservative side. A gray divergence channel should usually be considered a no-trade zone. More adventurous traders can use the DV channel to orient their trade entries if they accept the risk of trading in a neutral divergence channel, which by definition will not have been breached by price.
If your charts are already busy with other stuff you want to hold on to, you could consider using only the chart bar coloring component of this indicator:
At its simplest, one way to use this indicator would be to look for overlaps of the strong bull/bear colors in both the DV channel and a divergence channel, as these identify points where price is breaching the divergence channel when buy/sell pressure is consistent with the direction of the breach. I have highlighted all those points in the chart below. Not all of them would have produced profitable trades, but nothing is perfect in the markets. Also, keep in mind that the circles identify the visual you would be looking for — not the trade's entry level.
█ LIMITATIONS
• The script will not work on symbols where no volume is available. An error will appear when that is the case.
• Because a maximum of 100K intrabars can be analyzed by a script, a compromise is necessary between the number of intrabars analyzed per chart bar
and chart coverage. The more intrabars you analyze per chart bar, the less coverage you will obtain.
The setting of the "Intrabar precision" field in the "DV channel" section of the script's inputs
is where you control how the lower timeframe is calculated from the chart's timeframe.
█ NOTES
Volume Quality
If you use volume, it's important to understand its nature and quality, as it varies with sectors and instruments. My Volume X-ray indicator is one way you can appraise the quality of an instrument's intraday volume.
For Pine Script™ Coders
• This script uses the new overload of the fill() function which now makes it possible to do vertical gradients in Pine. I use it for both channels displayed by this script.
• I use the new arguments for plot() 's `display` parameter to control where the script plots some of its values,
namely those I only want to appear in the script's status line and in the Data Window.
• I wrote my script using the revised recommendations in the Style Guide from the Pine v5 User Manual.
█ THANKS
To PineCoders . I have used their lower_tf library in this script, to manage the calculation of the LTF and intrabar stats, and their Time library to convert a timeframe in seconds to a printable form for its display in the Information box.
To TradingView's Pine Script™ team. Their innovations and improvements, big and small, constantly expand the boundaries of the language. What this script does would not have been possible just a few months back.
And finally, thanks to all the users of my scripts who take the time to comment on my publications and suggest improvements. I do not reply to all but I do read your comments and do my best to implement your suggestions with the limited time that I have.
Real Woodies CCIAs always, this is not financial advice and use at your own risk. Trading is risky and can cost you significant sums of money if you are not careful. Make sure you always have a proper entry and exit plan that includes defining your risk before you enter a trade.
Ken Wood is a semi-famous trader that grew in popularity in the 1990s and early 2000s due to the establishment of one of the earliest trading forums online. This forum grew into "Woodie's CCI Club" due to Wood's love of his modified Commodity Channel Index (CCI) that he used extensively. From what I can tell, the website is still active and still follows the same core principles it did in the early days, the CCI is used for entries, range bars are used to help trader's cut down on the noise, and the optional addition of Woodie's Pivot Points can be used as further confirmation of support and resistance. This is my take on his famous "Woodie's CCI" that has become standard on many charting packages through the years, including a TradingView sponsored version as one of the many stock indicators provided by TradingView. Woodie has updated his CCI through the years to include several very cool additions outside of the standard CCI. I will have to say, I am a bit biased, but I think this is hands down one of the best indicators I have ever used, and I am far too young to have been part of the original CCI Club. Being a daytrader primarily, this fits right in my timeframe wheel house. Woodie designed this indicator to work on a day-trading time scale and he frequently uses this to trade futures and commodity contracts on the 30 minute, often even down to the one minute timeframe. This makes it unique in that it is probably one of the only daytrading-designed indicators out there that I am aware of that was not a popular indicator, like the MACD or RSI, that was just adopted by daytraders.
The CCI was originally created by Donald Lambert in 1980. Over time, it has become an extremely popular house-hold indicator, like the Stochastics, RSI, or MACD. However, like the RSI and Stochastics, there are extensive debates on how the CCI is actually meant to be used. Some trade it like a reversal indicator, where values greater than 100 or less than -100 are considered overbought or oversold, respectively. Others trade it like a typical zero-line cross indicator, where once the value goes above or below the zero-line, a trade should be considered in that direction. Lastly, some treat it as strictly a momentum indicator, where values greater than 100 or less than -100 are seen as strong momentum moves and when these values are reached, a new strong trend is establishing in the direction of the move. The CCI itself is nothing fancy, it just visualizes the distance of the closing price away from a user-defined SMA value and plots it as a line. However, Woodie's CCI takes this simple concept and adds to it with an indicator with 5 pieces to it designed to help the trader enter into the highest probability setups. Bear with me, it initially looks super complicated, but I promise it is pretty straight-forward and a fun indicator to use.
1) The CCI Histogram. This is your standard CCI value that you would find on the normal CCI. Woodie's CCI uses a value of 14 for most trades and a value of 20 when the timeframe is equal to or greater than 30minutes. I personally use this as a 20-period CCI on all time frames, simply for the fact that the 20 SMA is a very popular moving average and I want to know what the crowd is doing. This is your coloured histogram with 4 colours. A gray colouring is for any bars above or below the zero line for 1-4 bars. A yellow bar is a "trend bar", where the long period CCI has been above/below the zero line for 5 consecutive bars, indicating that a trend in the current direction has been established. Blue bars above and red bars below are simply 6+n number of bars above or below the zero line confirming trend. These are used for the Zero-Line Reject Trade (explained below). The CCI Histogram has a matching long-period CCI line that is painted the same colour as the histogram, it is the same thing but is used just to outline the Histogram a bit better.
2) The CCI Turbo line. This is a sped-up 6 period CCI. This is to be used for the Zero-Line Reject trades, trendline breaks, and to identify shorter term overbought/oversold conditions against the main trend. This is coloured as the white line.
3) The Least Squares Moving Average Baseline (LSMA) Zero Line. You will notice that the Zero Line of the indicator is either green or red. This is based on when price is above or below the 25-period LSMA on the chart. The LSMA is a 25 period linear regression moving average and is one of the best moving averages out there because it is more immune to noise than a typical MA. Statistically, an LSMA is designed to find the line of best fit across the lookback periods and identify whether price is advancing, declining, or flat, without the whipsaw that other MAs can be privy to. The zero line of the indicator will turn green when the close candle is over the LSMA or red when it is below the LSMA. This is meant to be a confirmation tool only and the CCI Histogram and Turbo Histogram can cross this zero line without any corresponding change in the colour of the zero line on that immediate candle.
4) The +100 and -100 lines are used in two ways. First, they can be used by the CCI Histogram and CCI Turbo as a sort of minor price resistance and if the CCI values cannot get through these, it is considered weakness in that trade direction until they do so. You will notice that both of these lines are multi-coloured. They have been plotted with the ChopZone Indicator, another TradingView built-in indicator. The ChopZone is a trend identification tool that uses the slope and the direction of a 34-period EMA to identify when price is trending or range bound. While there are ~10 different colours, the main two a trader needs to pay attention to are the turquoise/cyan blue, which indicates price is in an uptrend, and dark red, which indicates price is in a downtrend based on the slope and direction of the 34 EMA. All other colours indicate "chop". These colours are used solely for the Zero-Line Reject and pattern trades discussed below. They are plotted both above and below so you can easily see the colouring no matter what side of the zero line the CCI is on.
5) The +200 and -200 lines are also used in two ways. First, they are considered overbought/oversold levels where if price exceeds these lines then it has moved an extreme amount away from the average and is likely to experience a pullback shortly. This is more useful for the CCI Histogram than the Turbo CCI, in all honesty. You will also notice that these are coloured either red, green, or yellow. This is the Sidewinder indicator portion. The documentation on this is extremely sparse, only pointing to a "relationship between the LSMA and the 34 EMA" (see here: tlc.thinkorswim.com). Since I am not a member of Woodie's CCI Club and never intend to be I took some liberty here and decided that the most likely relationship here was the slope of both moving averages. Therefore, the Sidewinder will be green when both the LSMA and the 34 EMA are rising, red when both are falling, and yellow when they are not in agreement with one another (i.e. one rising/flat while the other is flat/falling). I am a big fan of Dr. Alexander Elder as those who follow me know, so consider this like Woodie's version of the Elder Impulse System. I will fully admit that this version of the Sidewinder is a guess and may not represent the real Sidewinder indicator, but it is next to impossible to find any information on this, so I apologize, but my version does do something useful anyways. This is also to be used only with the Zero-Line Reject trades. They are plotted both above and below so you can easily see the colouring no matter what side of the zero line the CCI is on.
How to Trade It According to Woodie's CCI Club:
Now that I have all of my components and history out of the way, this is what you all care about. I will only provide a brief overview of the trades in this system, but there are quite a few more detailed descriptions listed in the Woodie's CCI Club pamphlet. I have had little success trading the "patterns" but they do exist and do work on occasion. I just prefer to trade with the flow of the markets rather than getting overly scalpy. If you are interested in these patterns, see the pamphlet here (www.trading-attitude.com), hop into the forums and see for yourself, or check out a couple of the YouTube videos.
1) Zero line cross. As simple as any other momentum oscillator out there. When the long period CCI crosses above or below the zero line open a trade in that direction. Extra confirmation can be had when the CCI Turbo has already broken the +100/-100 line "resistance or support". Trend traders may wish to wait until the yellow "trend confirmation bar" has been printed.
2) Zero Line Reject. This is when the CCI Turbo heads back down to the zero line and then bounces back in the same direction of the prevailing trend. These are fantastic continuation trades if you missed the initial entry either on the zero line cross or on the trend bar establishment. ZLR trades are only viable when you have the ChopZone indicator showing a trend (turquoise/cyan for uptrend, dark red for downtrend), the LSMA line is green for an uptrend or red for a downtrend, and the SideWinder is either green confirming the uptrend or red confirming the downtrend.
3) Hook From Extreme. This is the exact same as the Zero Line Reject trade, however, the CCI Turbo now goes to the +100/-100 line (whichever is opposite the currently established trend) and then hooks back into the established trend direction. Ideally the HFE trade needs to have the Long CCI Histogram above/below the corresponding 100 level and the CCI Turbo both breaks the 100 level on the trend side and when it does break it has increased ~20 points from the previous value (i.e. CCI Histogram = +150 with LSMA, CZ, and SW all matching up and trend bars printed on CCI Histogram, CCI Turbo went to -120 and bounced to +80 on last 2 bars, current bar closes with CCI Turbo closing at +110).
4) Trend Line Break. Either the CCI Turbo or CCI Histogram, whichever you prefer (I find the Turbo a bit more accurate since its a faster value) creates a series of higher highs/lows you can draw a trend line linking them. When the line breaks the trendline that is your signal to take a counter trade position. For example, if the CCI Turbo is making consistently higher lows and then breaks the trendline through the zero line, you can then go short. This is a good continuation trade.
5) The Tony Trade. Consider this like a combination zero line reject, trend line break, and weak zero line cross all in one. The idea is that the SW, CZ, and LSMA values are all established in one direction. The CCI Histogram should be in an established trend and then cross the zero line but never break the 100 level on the new side as long as it has not printed more than 9 bars on the new side. If the CCI Histogram prints 9 or less bars on the new side and then breaks the trendline and crosses back to the original trend side, that is your signal to take a reversal trade. This is best used in the Elder Triple Screen method (discussed in final section) as a failed dip or rip.
6) The GB100 Trade. This is a similar trade as the Tony Trade, however, the CCI Histogram can break the 100 level on the new side but has to have made less than 6 bars on the new side. A trendline break is not necessary here either, it is more of a "pop and drop" or "momentum failure" trade trying in the new direction.
7) The Famir Trade. This is a failed CCI Long Histogram ZLR trade and is quite complicated. I have never traded this but it is in the pamphlet. Essentially you have a typical ZLR reject (i.e. all components saying it is likely a long/short continuation trade), but the ZLR only stays around the 50 level, goes back to the trend side, fails there as well immediately after 1 bar and then rebreaks to the new side. This is important to be considered with the LSMA value matching the side of the trade, so if the Famir says to go long, you need the LSMA indicator to also say to go long.
8) The Vegas Trade. This is essentially a trend-reversal trade that takes into account the LSMA and a cup and handle formation on the CCI Long Histogram after it has reached an extreme value (+200/-200). You will see the CCI Histogram hit the extreme value, head towards the zero line, and then sort of round out back in the direction of the extreme price. The low point where it reversed back in the direction of the extreme can be considered support or resistance on the CCI and once the CCI Long Histogram breaks this level again, with LSMA confirmation, you can take a counter trend trade with a stop under/over the highest/lowest point of the last 2 bars as you want to be out quickly if you are wrong without much damage but can get a huge win if you are right and add later to the position once a new trade has formed.
9) The Ghost Trade. This is nothing more than a(n) (inverse) head and shoulders pattern created on the CCI. Draw a trend line connecting the head and shoulders and trade a reversal trade once the CCI Long Histogram breaks the trend line. Same deal as the Vegas Trade, stop over/under the most recent 2 bar high/low and add later if it is a winner but cut quickly if it is a loser.
Like I said, this is a complicated system and could quite literally take years to master if you wanted to go into the patterns and master them. I prefer to trade it in a much simpler format, using the Elder Triple Screen System. First, since I am a day trader, I look to use the 20 period Woodie's on the hourly and look at the CZ, SW, and LSMA values to make sure they all match the direction of the CCI Long Histogram (a trend establishment is not necessary here). It shows you the hourly trend as your "tide". I then drill down to the 15 minute time frame and use the Turbo CCI break in the opposite direction of the trend as my "wave" and to indicate when there is a dip or rip against the main trend. Lastly, I drill down to a 3 minute time frame and enter when the CCI Long Histogram turns back to match the main trend ("ripple") as long as the CCI Turbo has broken the 100 level in the matched direction.
Enjoy, and please read the pamphlet if you have any questions about the patterns as they are not how I use these and will not be able to answer those questions.
S2BU2 Volume Oscillator (Improved)Fair Use:
Please do not take my work and sell it under your own name. This was created to benefit everyone - not one person. Feel free however to use it as part of whatever work you wish to sell (of course i would applaud also giving ideas away for free - your choice though ;)
What it is:
The Basis for this Indicator was the original Volume Oscillator. I added Averages for Highs and Lows to make it easier to see relatively over- or undersupplied zones.
I also modified the oscillator to use a fast and a slow moving average à la MACD on itself to get a cleaner and earlier signal for when to expect a big move.
How it works:
A falling MA-line - especially if beneath the Signal-line indicates weakening Strength. Movements made during this time will barely move the needle.
A rising MA-line - especially if above the Signal-line, indicates increasing strength. Movements made during this time will be relatively considerable.
Crossovers above the average High/ below the average Low are especially relevant.
How to use:
Note this is only a recommendation and not advice. Feel free to experiment and adjust the indicator to fit your tradingstyle. This is only my personal setup. Feel free to share your findings.
Best used in combination with another Indicator that gives impulse direction, like for example my Stochastic Momentum Convergence Divergence (). You may also use any other indicator that works for you for this purpose - i am biased towards my own work though :D
What you want to see is a fresh direction-signal followed by a rising MA-line in the Volume Oscillator. For confirmation you can wait until the Volume Oscillator also has a crossover(up only, do not use the crossdown!) between MA- and Signal-line. Best results should be achieved if the MA-line was well below the averageLow-line. Trenddirection may change even while the Volume continuously goes up. Volume is direction agnostic. Always keep an eye on your direction indicator as changes can and will occur. These will be equally as violent and often longer lived than the previous direction you caught - you will lose a lot more than you gain if you do not keep track of that! This Indicator will help you to identify when not to waste your time on a trade, it will not be a magic pill that you can use to set and forget.
FunctionNNLayerLibrary "FunctionNNLayer"
Generalized Neural Network Layer method.
function(inputs, weights, n_nodes, activation_function, bias, alpha, scale) Generalized Layer.
Parameters:
inputs : float array, input values.
weights : float array, weight values.
n_nodes : int, number of nodes in layer.
activation_function : string, default='sigmoid', name of the activation function used.
bias : float, default=1.0, bias to pass into activation function.
alpha : float, default=na, if required to pass into activation function.
scale : float, default=na, if required to pass into activation function.
Returns: float
FunctionNNPerceptronLibrary "FunctionNNPerceptron"
Perceptron Function for Neural networks.
function(inputs, weights, bias, activation_function, alpha, scale) generalized perceptron node for Neural Networks.
Parameters:
inputs : float array, the inputs of the perceptron.
weights : float array, the weights for inputs.
bias : float, default=1.0, the default bias of the perceptron.
activation_function : string, default='sigmoid', activation function applied to the output.
alpha : float, default=na, if required for activation.
scale : float, default=na, if required for activation.
@outputs float
+ Donchian ChannelsThis version of Donchian Channels uses two source options so that one can create a channel using highs and lows rather than one or the other or closes. My thinking was that this would create a more accurate portrayal of price action (or at least contain the greatest scope of it) as seen through the lens of a Donchian Channel. This was actually part of the genesis of my idea around my Ultimate Moving Average.
Besides the single top and bottom plot for the DC's extremities, I've enabled the ability to create outer bands with a variable width that the user can adjust to their preference. I think it's quite nice. I use it in the DC in my other non-overlay indicators.
Besides this additional functionality, the indicator has options to plot lines between the basis and the upper and lower bands, so, basically, splitting the upper and lower channel in half.
There is no magic number to the lookback. I chose 233 as default because it's a fibonacci sequence number and I'm more interested in using the DC like a very long period bias indicator, and the longer lookback gives a much wider window (because highs and lows are so spread apart) with which other faster indicators (supertrend, shorter period moving averages, etc.) can work without making the screen a clutter.
The color of the basis may also be made relevant to higher timeframe information. What I mean by this is that you can set it so that the basis of the current timeframe is colored based on the candle close of the higher timeframe of your choosing. If you're looking at an hourly chart, and you set the color to Daily, the basis will be colored based on the candle close (above or below the basis) of the previous day. If the previous daily close was above the basis, that positive color will be reflected in the basis, even if the current hourly candle closes are below the hourly basis. This could potentially be useful for setting a higher timeframe directional bias and reacting off price crossing the lower timeframe basis (or whatever your trigger for entering a trade might be). This is also optional in my Ultimate Moving Average indicator.
You can also set the entire indicator to whatever time frame you want if you want to see where the actual basis, or other levels are on that higher timeframe.
Further additions include fibonacci retracement levels. These are calculated off the high and the low of the Donchian Channels themselves.
You will see that there are only three retracement levels (.786, .705, .382), one of which is not a fib level, but what some people call the 'OTE,' or optimal trade entry. If you want more info on the OTE just web search it. So, why no .618 or .236? Reason being that the .618 overlaps the .382, and the .236 is extremely close to the .786. This sounds confusing, but the retracement levels I'm using are derived from the high and low, so it was unnecessary to have all five levels from each. I could have just calculated from the high, or just from the low, and used all the levels, but I chose to just calculate three levels from the high and three from the low because that gives a sort of mirror image balance, and that appeals to me, and the utility of the indicator is the same.
The plot lines are all colored, and I've filled certain zones between them. There is a center zone filled between both .382 levels, and an upper and lower zone filled between the .786 and either the high or the low.
If you like the colored zones, but don't like the plots because they cause screen compression, turn off the plots under the "style" tab.
There are alerts for candle closes across every line.
I should state that, regarding the fibs, obviously the length of the Channels is going to affect to what levels price retraces to. A shorter lookback means you will see more changes in highs and lows, and therefore retraces are often going to be full retraces within the bands unless price is trending hard. A longer lookback means you will see smaller retraces. Using this in conjunction with key high timeframe levels and/or a moving average can give great confidence in a trade entry. Additionally, if you have a short bias it may help in finding levels or entering a trade on a pullback. It could also be good for trade targets. But again, the lookback you choose for this indicator is going to dictate its use in the system you're building or already have. A 9 EMA and a 200 EMA, while fundamentally the same, are going to be used somewhat differently while doing your chart analysis.
Additional images below.
Same image as main, but with supertrend and my +UMA to help with chart analysis.
Image with the fib stuff turned on.
Zoomed out image with the same.
Shorter lookback period.
Zoomed in image of shorter lookback.
+ Accumulation/DistributionThis is an updated version (with lots of extras added) of the Accumulation/Distribution indicator coded by @Cl8DH.
You can read about what he says about his indicator, and how to use it, here:
So, from that, what have I done?
I added a moving average (of which there are many types to choose from) so that you can use this as a "two lines cross" indicator, as well as a "mid-line cross" indicator.
I added Bollinger Bands (primarily for when "range" is turned off, but if you want to use the Bands with it in fixed range mode too, that's fine. You do you.).
I added candle coloring for both ways of using this indicator:
In rangebound mode there is overbought and oversold coloring, as well as bullish (ADP above the MA and median) and bearish (ADP below the MA and median), and neutral (ADP is above the MA but below the median, or below the MA and above the median). With range turned off there is no overbought or oversold of course. Above the MA and median is bullish, below both is bearish, and neutral covers that grey area where it's neither one nor the other.
The indicator itself is also colored in the same way the candles are. The MA and BBands are biased colored as well (green/red).
Alerts for pretty much every condition imaginable.
Please note in the image above the indicator is pretty gaudy. I don't use it like that, and you can turn a lot of that stuff off (lines, shading, etc.). That is just the default settings.
Like I said, I think Bollinger Bands make most sense if you have it set to range off, but they could be useful either way. Depends on you, the trader.
The candle color is 100% based on the moving average, so if you are using the BBands, set your MA to the default 20 SMA because that's what BBands use for the basis. If you just turn off the MA, whatever it is set to the indicator will still see that and use it (unless you turn off candle colors) to color the candles.
Above is the same image, but just with range turned off, and the Bollinger Bands turned off.
That's all. Hope you like this! It's becoming a favorite of mine, and a lot of what I've implemented here will be added to my previously released indicators, as well as any new ones.
MJ ECT== One Line Introduction ==
ECT is a multi-level, trend focused technical indicator based on a three-step hierarchical approach - comprising the tide, wave, and ripple - to trend identification.
== Indicator Philosophy ==
The author believes that market trends can be understood in a three-step hierarchy, with tide at the top, wave in the middle, and ripple at the bottom, corresponding to long-, middle-, and short-term momentum in the stock price. This indicator therefore comprises three technical indicators which aims to reflect the abovementioned features of a trend. These three components are True Strength Index (TSI), Exponential Moving Averages ( EMA ), and Commodity Channel Index ( CCI ).
== Indicator Components and Breakdown ==
True Strength Index (TSI) -> Tide
A 20-period TSI is used to visualize the bullish or bearish sentiment surrounding the stock. Crossovers above the zero line are interpreted as bullish while crossovers below the zero line are interpreted as bearish . This is painted into the background where green represents bullish and red represents bearish . While the background is red ( bearish ), no bullish positions should be taken. Hence, the TSI painted background acts as a directional bias filter and going against the bias is not recommended. After understanding the directional bias, the user can delve further into the areas of value for the stock in the Wave.
Exponential Moving Averages ( EMA ) -> Wave
Four EMA are used (20, 50, 100, 200) to identify the dynamic support and resistance waves in a trending market. Stock price pullbacks into any of these EMA represent areas of value where the user can consider taking positions. The correct EMA to use depends on individual stock's behavior, with multiple bounces on a specified EMA being the priority. After understanding which wave best reflects the area of value of a stock, the user can move on to the Ripple to time their entries.
Commodity Channel Index ( CCI ) -> Ripple
A 5-period CCI is used to identify short-term oversold conditions where prices are on discount. Discount is defined by the 5-period CCI crossing below -100 as it reflects a weekly oversold condition. The indicator will display a small triangle below the candle when this condition is met.
== Ready To Deploy Field Manual ==
When background is painted red, do nothing.
When background is painted green, begin thinking of bullish opportunities.
Look for the specific EMA that has the most bounces of stock price in recent months, this is the area of value to look for buying opportunity.
For the candles that intersect the EMA you identified above, watch for the appearance of a small triangle below the candle that tells you the entry timing.
When the entry timing signal triangle appears, remember the High of that candle and buy your position when the subsequent candle breaks above this High.
If the High is not broken above in the next immediate candle, remember the newer High of the newer candle (basically follow / trail the latest High until a break above is hit).
If the background turns from green to red, stop following the High and do not enter because the market sentiment has changed to bearish .
If you are holding an existing position and the background turns red, consider exiting the position. You may consider remembering the Low of the candle and exit your position if this Low is broken below on a subsequent candle.
== Best Wishes ==
The author wishes the best success for all users of this technical indicator.
Combined Momentum MA (Equal-Length EMA/SMA Crossover)Overview:
This momentum and trend-following strategy captures the majority of any trending move, and works well on high timeframes.
It uses an equal-period EMA and SMA crossover to detect trend acceleration/deceleration, since an EMA places a greater weight and significance on the most recent data.
To reduce noise and optimize entries, we combined this with an overall trend bias for further confluence.
How it works:
Signals are determined by the crossover of an EMA and SMA of the same length, e.g. EMA-50 and SMA-50.
The overall trend bias is determined using a slower SMA golden/death cross, e.g. SMA-50 and SMA-100.
The signal is stronger when it occurs in confluence with the overall trend bias, e.g. when EMA-50 crosses over SMA-50, while above the SMA-100. This is analogous to only opening long positions in a bull market.
Indicator description:
GREEN: Up Trend (EMA is above SMA, while EMA is above BIAS_MA. This shows a bullish confluence.)
YELLOW: No Trend (EMA/SMA crossover and BIAS_MA are not in confluence.)
RED = Down Trend (EMA is below SMA, while EMA is below BIAS_MA. This shows a bearish confluence.)
Aligned Moving Average FilterThis is another adoption of Aligned Moving Average index study published earlier:
Instead of summing up the aligned moving average strength, here we are checking the max and min values from X bars. If maxValue is above threshold, we show bullish bias by coloring candles lime. Similarly if minValue is below threshold we show bearish bias by coloring candles orange. If the max and min signals are mixed - showing both bullish and bearish or showing neither bullish or bearish, then we do not have any bias and candles are colored in silver.
Parameter descriptions are as below:
Moving Average Type : Select moving average type to calculate moving average alignment index
LookbakPeriod : Periods to calculate min and max values
Threshold : Percentage less/more than min/max values of alignment index. At present, max value of alignment index is 36. Hence, 25 threshold will consider max ma alignment index above 27 as bullish and min alignment index below 9 as bearish
Filter type : allows you to use only bullish or bearish filter.
If bullish type is selected, then candle colors are based only on the maxValue of moving average alignment. Candle color will be lime if above threshold and silver otherwise.
If bearish type is selected, then candle colors are based only on the minValue of moving average alignment. Candle color will be orange if below threshold and silver otherwise.
Big Bar DetectorYellow = Big Bar! (Trading is allowed)
Purple = Nothing special going on (No trading allowed)
BBD is meant to weed out all the little meaningless bars/candles that interfere with your trading.
BBD is not directionally biased, it only measures volatility.
