FSS Indicator 2.0 -- by @Flokicrypto

2 mar 2023

This script is unique not only in that it removes the need for the user to run each of these indicators individually; it provides an ‘at-a-glance’ summary of the aggregate indicator data, while also providing the user a simultaneous recommended stop loss value based on past market behavior for the given asset and the user's tolerance to risk by editing the ATR Multiplier in the inputs.

The basic concept of the script is to apply past data to present market conditions, and through the use of that data, provide an additional confluence/confirmation signal which simultaneously provides a recommended stop loss value based on average true range (ATR).

The FSS Indicator uses a blend of :

• RSI: If within a defined RSI range, increments print score.
  
• MACD: trend and crossovers increment print score.
  
• Histogram: increments print score if a trend of X candles is up or down.
  
• 21 EMA: Increments print score if price is above/below 21EMA.
  
• Parabolic SAR: Increments print score if price is above/below Parabolic SAR.
  

These parameters generate a print score, which is then determined to be sufficient or not to print a LONG or a SHORT signal on the candle.

This script will be best used in addition to Elliott Waves Theory, which gives a more specific idea as to where a stock or crypto is at in its overall cycle. I encourage you to test it out and try different settings. If you have a request to unlock certain settings, please contact me.

The indicator isn't built to find bottoms or tops, won't trigger 100% of the time, but should see a high success rate when triggered on higher timeframes. After testing on several pairs/tickers (Bitcoin, Ethereum, XRP, DJI, SPX and others) on multiple timeframes I have seen the best results on 12-hour, Daily, 2-day, 3-day & weekly timeframes. The success criteria are as follows: Stop Loss not hitting before a rise of at least 10% in value for a long, or a loss of at least 10% in value for a short; waiting until the signal-candle closes for confirmation and back testing.

**Disclaimer: These recommendations are the result of back-tests and past results will never guarantee future performance of this script on any chart.**


The following screenshots illustrate the script activated on Crypto and Traditional stocks.




[u]Basic HOWTO do certain things with the FSS Indicator: [/u]
*Add the indicator: through Invite-only scripts, once you have secured access from the author.
*Chose ticker & timeframe: The indicator should show up within a few seconds of changing either of these parameters.
*Change SL variables:
- ATR Period: changes the candle range to calculate the stop loss: changing this is not recommended.
- ATR Multiplier: This directly affects the risk adjustment of the stop loss. Increasing this value will loosen the SL, decreasing this value will tighten the SL.