XGBoost Approximation Indicator with HTF Filter Ver. 3.2

13 mar

XGBoost Approx Indicator with Higher Timeframe Filter Ver. 3.2
What It Is
The XGBoost Approx Indicator is a technical analysis tool designed to generate trading signals based on a composite of multiple indicators. It combines Simple Moving Average (SMA), Relative Strength Index (RSI), MACD, Rate of Change (ROC), and Volume to create a composite indicator score. Additionally, it incorporates a higher timeframe filter (HTF) to enhance trend confirmation and reduce false signals.

This indicator helps traders identify long (buy) and short (sell) opportunities based on a weighted combination of trend-following and momentum indicators.

How to Use It Properly
Setup and Configuration:

Add the indicator to your TradingView chart.
Customize input settings based on your trading strategy. Key configurable inputs include:
HTF filter (default: 1-hour)
SMA, RSI, MACD, and ROC lengths
Custom weightings for each component
Thresholds for buy and sell signals
Understanding the Signals:

Green "Long" Label: Appears when the composite indicator crosses above the buy threshold, signaling a potential buy opportunity.
Red "Short" Label: Appears when the composite indicator crosses below the sell threshold, signaling a potential sell opportunity.
These signals are filtered by a higher timeframe SMA trend to improve accuracy.
Alerts:

The indicator provides alert conditions for long and short entries.
Traders can enable alerts in TradingView to receive real-time notifications when a new signal is triggered.
Safety and Best Practices
Use in Conjunction with Other Analysis: Do not rely solely on this indicator. Combine it with price action, support/resistance levels, and fundamental analysis for better decision-making.
Adjust Settings for Your Strategy: The default settings may not suit all markets or timeframes. Test different configurations before trading live.
Backtest Before Using in Live Trading: Evaluate the indicator’s past performance on historical data to assess its effectiveness in different market conditions.
Avoid Overtrading: False signals can occur, especially in low volatility or choppy markets. Use additional confirmation (e.g., trendlines or moving averages).
Risk Management: Always set stop-loss levels and position sizes to limit potential losses.

21 mar

Informacje o Wersji

There us an update on the script, now it is Version 3.3
Calculations weights are now more balanced as Volume got 0.2 as of 20% contribution of the composite indicator.

Composite indicator is a simplified show of the results of multiple indicators. Calculations are the following:
compositeIndicator = (weightSMA * smaNormalized) +
(weightRSI * rsiNormalized) +
(weightMACD * macdNormalized) +
(weightROC * rocNormalized) +
(weightVolume * volumeNormalized)
So compositeIndicator are calculated from the last 50 bars, their values are normalized between the range of -1.0 and 1.0
Sell when the compositeIndicator is below (adjustable) -0.5 and buy when exceeds 0.5
I recommend to use the last bars or high/lows adding maximim 1% of balance risk.
Exit position either you get 2-3x your R:R or the indicator makes an alert for the another directon.

22 mar

Informacje o Wersji

Update notes:

22 Marc 2025

Barmerger set to off to make the scriopt more robust.
The script was converted to Pinescript 6.