Swing Suite (SMT/Divergences + Gann Swings)

2 maj

Hello Traders!

TRN Swing Suite (SMT/Divergences + Gann Swings) is an indicator which identifies, and highlights pivot points (swings) and prints a lot of information about the swings in the chart (e.g. length, duration, cumulative Delta, ...). Furthermore, it detects divergences in connection with any given indicator, even custom ones. In addition to this, you can choose the algorithm to compute the swings. The famous Gann-Swing algorithm and the extremely precise TRN Swing algorithm (called Standard) are available for selection, as well as two other variants. Compared to other swing or zig-zag indicators it works in real-time, does not need a look-a-head to find swings and is not repainting. Moreover, equal (double) highs and lows are detected and displayed. The TRN Swing Suite helps traders to visualize the pure price action and identify key turning points or trends. The indicator comes with the following features:

1. Precise real-time swing detection without repainting
   
2. Divergence detecting for any given (custom) indicator - with 11 different preset indicators
   
3. SMT (Smart Money Technique)/Divergence detecting in relation to other instruments
   
4. Swing Performance Statistics
   
5. Swing support and resistance levels
   
6. Swing trend for multiple swing sizes
   
7. Equal/double high and low detection
   
8. 4 different swing computation styles
   
9. Displaying of swing labels, values and information
   
10. Customizable settings as well as look and feel
    

It's important to note that the TRN Swing Suite is a visual tool and does not provide specific buy or sell signals. It serves as a guide for traders to analyze market structure in depth and make well-informed trading decisions based on their trading strategy and additional technical analysis.

Divergence Detection for any given (Custom) Indicator


The divergence detector finds with unrivaled precision bullish and bearish as well as regular and hidden divergences. The main difference compared to other divergences indicators is that this indicator finds rigorously the extreme peaks of each swing, both in price and in the corresponding indicator. This precision is unmatched and therefore this is one of the best divergences detectors.

The build in divergence detector works with any given indicator, even custom ones. In addition, there are 11 built-in indicators. Most noticeable is the cumulative delta indicator, which works astonishingly well as a divergence indicator. Full list:

1. External Indicator (see next section for the setup)
   
2. Awesome Oscillator (AO)
   
3. Commodity Channel Index (CCI)
   
4. Cumulative Delta Volume (CDV)
   
5. Chaikin Money Flow (CMF)
   
6. Moving Average Convergence Divergence (MACD)
   
7. Money Flow Index (MFI)
   
8. Momentum
   
9. On Balance Volume (OBV)
   
10. Relative Strength Index (RSI)
    
11. Stochastic
    
12. Williams Percentage Range (W%R)
    

The divergences are colored with vivid lines and labels. Bullish divergences are distinguished with luminous blue lines, while bearish divergences are denoted by striking red lines. Upon detecting a divergence, the colored lines act as a visual indicator for traders, signaling an imminent possibility of a trend reversal. In response, traders can leverage this valuable insight to make informed decisions in their trading activities.

Choose Your Custom Divergence Indicator


Handpick your custom indicator, and the TRN Swing Suite will hunt for divergences on your preferred market and timeframe. Importantly, you must add the indicator to your chart. Afterwards, simply go to the “Divergence Detection” section in the TRN Swing Suite indicator settings and choose "External Indicator". If the custom indicator has one reference value, then choose this value in the “External Indicator (High)” field. If there are high and low values (e.g. candles), then you also must set the “External Indicator Low” field.

In the provided graphic, we've chosen the stochastic RSI as our example, and as you can see, the TRN Swing Suite instantly identifies and plots bullish and bearish divergences on your chart.

Smart Money Technique (SMT)/Divergence detecting in Relation to other Instruments

Smart Money Technique/Tool (SMT) means the divergence detection between two related instruments. The TRN Swing Suite finds divergence in relation to other instruments, e.g. NQ vs ES or BTCUSDT vs ETHUSDT. Just add another instrument to the chart. As representation style you can choose lines or candles/bars. Afterwards, simply go to the “Divergence Detection” section in the TRN Swing Suite indicator settings and choose "External Indicator". If the second instrument is represented as line, then choose this value in the “External Indicator (High)” field. If there are high and low values (e.g. candles/bars), then you also must set the “External Indicator Low” field.


The detection of SMTs can help traders to decide whether the trend continues, or a reversal is imminent. E.g. if the NQ makes a new higher high but the ES fails to do so and makes a new lower high, then the TRN Swing Suite shows a divergence. As a result, the probability is high that the trend will not continue, and the trader can make an informed decision about what to do next.

How to Set Parameters for Divergence Indicators

To begin, access the indicator settings and find the “Divergence Detection”. Look for the "Parameters" sections where you can fine-tune Parameters 1-3. The default settings are already optimized for the oscillators AO, RSI, CDV, W%R, MFI and Stochastic. For other divergence indicators, you might want to adjust the settings to your liking. The parameter order is the same as in the corresponding divergence indicator.

TRN Swing Suite Statistics

Unveil the untapped potential of advanced Swing Statistics! Gain invaluable insights into historical swings and turning points. Elevate your expertise by harnessing this treasure trove of data to supercharge signal reliability, while masterfully planning stop loss and take profit strategies with unrivaled accuracy. Within the TRN Swing Suite lie two powerful statistics, each offering distinct insights to empower your trading prowess.


Swing Statistic

The Swing Statistic comprises of two series, one for up swings (Up) and one for down swings (Down), with values given in points. The columns have the following meaning:

1. Up or down
   
2. # - total number of analyzed swings
   
3. Overall ∅ Length - average length of all swings in points
   
4. Overall ∅ Duration - average duration of swings in bars
   
5. ∅ Length - average lengths for custom-defined swing counts
   
6. ∅ Duration - average durations for custom-defined swing counts
   

The custom-defined swing count is used to determine the swing length/duration for the last x swings. Note, in the case of well-established assets like Microsoft or Nvidia, which have undergone one or more stock splits, the overall average in column three may deviate significantly from those in column five. That is why column 5 is useful.

Relation Statistic

The Relation Statistic highlights percentages representing the historical occurrence of specific high and low sequences. In the first column (in %), various types of highs and lows are listed as reference points.

For example, the first row corresponds to "HH followed by", where the second column (#) displays the total count of higher highs (HH) considered. The subsequent columns showcase the percentages of how often certain patterns follow the initial HH.

Fields marked in blue represent sequences that occurred in over 50% of cases. The darker the shade of blue in each field, the higher the percentage.

Use Swing Statistics to Validate Stop-Loss and Take-Profit Levels

No matter which signals you choose to trade, consulting Swing Statistics can significantly enhance the reliability of these signals.

For example, when looking for a long entry after a lower low (LL), you can examine the likelihood of a subsequent lower high (LH) or even a higher high (HH). Combining this valuable information with your predetermined Take Profit level allows you to better assess whether your target can be achieved successfully. Additionally, you can add the average up swing length to the lower low for an alternative Take Profit level. Similarly, you can verify the probability of the next low being a higher low (HL) or another lower low (LL) to determine the likelihood of your Stop Loss being triggered. Align the length of the last down swing with the average down swing length for an alternative Stop Loss.

Swing Support and Resistance Levels



Swing support and resistance levels are horizontal lines starting from a swing high or swing low and representing natural support and resistance levels. Price tends to respect this levels one way or another. In most cases, old swing highs and swing lows provide a lot of liquidity to the market. For example, for a swing high there are at least three different market players at work:

1. Traders put there stop loss above the swing high
   
2. Breakout traders go long above the swing high
   
3. Turtle soup (reverse) trader go short above the swing high
   

Swing Trend (Multiple Sizes)



The TRN Swing Suite can display either at the top or at the bottom the prevailing swing trends for the main trend seen in the chart and for two additional swing sizes. This is useful to see the swing trend for medium and bigger swings to get a clear picture of the market.

Getting an Edge with the TRN Swing Suite

The indicator clearly displays up trends, defined as a sequence of higher highs (HH) and higher lows (HL), with green labels and down trends, defined as a sequence of lower lows (LL) and lower highs (LH), with red labels. Equal highs/double tops (DT) and equal lows/ double bottoms (DB) are highlighted in gold.

In addition, the labels show a full stack of valuable information about the swings to maximize your accuracy.

1. Length
   
2. Length percentage in relation to the last swing length
   
3. Duration
   
4. Time
   
5. Volume
   
6. Cumulative Delta
   

In an uptrend the up swings should have higher volume und higher cumulative delta than the down swings. The duration and time for down swings in an uptrend should be shorter than for the up swings.

Use Cases for Swing Detection

• Trend Identification
  By connecting the swing highs and lows, traders can identify and analyze the prevailing trend in the market. An uptrend is characterized by higher swing highs and lows, while a downtrend is characterized by lower highs and lower lows. The indicator helps traders visually assess the strength and continuity of the trend.
  
  
• Support And Resistance Levels
  The swing highs and lows can act as support and resistance levels. Swing highs may act as resistance levels where selling pressure increases, while swing lows may act as support levels where buying pressure increases. Traders often pay attention to these levels as potential areas for trade entries, exits, or placing stop-loss orders.
  
  
• Pattern Recognition
  The swings identified by the indicator can help traders recognize chart patterns, such as equal high/lows, consolidations, wedges, triangles or more complex patterns like Gartley or Head and Shoulders. These patterns can provide insights into potential trend continuation or reversal.
  
  
• Trade Entry and Exit
  Traders may use TRN Swing to determine potential trade entry and exit points. For example, in an uptrend, traders may look for opportunities to enter long positions near swing lows or on pullbacks to support levels. Conversely, in a downtrend, traders may consider short positions near swing highs or on retracements to resistance levels.
  

Swing Styles

In addition to the standard swings, you have the flexibility to choose between various swing styles, including ticks, percent, or even the famous Gann swings.

1. Standard
   
2. Gann
   
3. Ticks
   
4. Percent
   

Conclusion

While signals from TRN Swings can be informative, it is important to recognize that their reliability may vary. Various external factors can impact market prices, and it is essential to consider your risk tolerance and investment goals when executing trades.

Risk Disclaimer

The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.

6 cze

Informacje o Wersji

We updated the UI for SMTs. You can now easily add two symbols in the indicator input section to compute SMTs. Furthermore, you can customize the entire visualization.

16 lip

Informacje o Wersji

We updated the following settings/features:

1. The Settings UI has been improved.
   
2. The CVD algorithm has been updated to make it more precise.
   
3. Individual settings for oscillators have been added.
   

17 lip

Informacje o Wersji

Oscillator drawing and default values fixed

20 lis

Informacje o Wersji

The following updates have been made:

Alerts for SMT Divergences and Oscillator Divergences have been added.