Dual SuperTrend, Ichimoku and DMI Color Weighted by DGTThis study interprets SuperTrend with Ichimoku Cloud, one of the popular technical analysis indicator, and interprets Directional Movement (DMI), which is another quite valuable technical analysis indicator.
Then combines the interpreted SuperTrend with interpreted Directional Movement (DMI) and Volume Based Colored Bars indicator created by Kıvaç ÖZBİLGİÇ (permission has been granted from the author)
Here are details of the concept applied
1- SuperTrend Line colored based on Ichimoku Cloud
Definition
The Ichimoku Cloud, developed by Goichi Hosoda and published in the late 1960s, is a collection of technical indicators that give it a unique capacity to show support and resistance levels, momentum and trend direction
What Does the Ichimoku Cloud Tells?
The overall trend is up when price is above the cloud, known as Kumo Cloud, down when price is below the Kumo Cloud, and trendless or transitioning when price is in the Kumo Cloud
When Senkou Span A (Leading Span A) is rising and above Senkou Span B (Leading Span B), this helps confirm the uptrend and space between the lines is typically colored green. When Senkou Span A is falling and below Senkou Span B, this helps confirm the downtrend. The space between the lines is typically colored red
Traders often use the Kumo Cloud as an area of support and resistance depending on the relative location of the price. The Kumo Cloud provides support/resistance levels that can be projected into the future. This sets the Ichimoku Cloud apart from many other technical indicators that only provide support and resistance levels for the current date and time
Crossovers, also known as TK Cross among Ichimoku Cloud traders, are another way the indicator can be used. Watch for the Tenkan-Sen Line, or Conversion Line, to move above the Kijun-Sen Line, or Base Line, especially when price is above the Kumo cloud. This can be a powerful buy signal. One option is to hold the trade until the Tenkan-Sen drops back below the Kijun-Sen Line. Any of the other lines could be used as exit points as well.
With this study:
Allow Traders to use the Ichimoku Cloud in conjunction with other technical indicators to maximize their risk-adjusted returns
The Ichimoku Cloud can make a chart look busy with all the lines. To Remedy this a different approach is applied in this study showing the Price and the Kumo Cloud relation as well as TK Crosses displayed. The SuperTrend Indicator is chosen to display Ichimoku Indicator, where the SuperTrend is another trend following indicator.
How it works:
SuperTrend Line is colored as:
Green when the Price is above the Kumo Cloud
Red when the Price is below the Kumo Cloud
Black when the Price is within the Kumo Cloud
And Finally Blue when the Kumo Cloud Is not ready to be drawn or not Kumo Cloud available
Additionally intensity of the colors used in all cases above are defined by values of Tenkan-Sen and Kijun-Sen Line, which allows us to detect TK Crosses
2- Plots Colored Directional Movement Line
Definition
Directional Movement (DMI) (created by J. Welles Wilder ) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX) , Plus Directional Indicator (+D I) and Minus Directional Indicator (-D I) . ADX's purposes is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to compliment the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.
This study combines all three lines in a single colored shapes series plotted on the top of the price chart indicating the trend strength with different colors and its direction with triangle up and down shapes.
What to look for
Trend Strength : Analyzing trend strength is the most basic use for the DMI. Wilder believed that a DMI reading above 25 indicated a strong trend, while a reading below 20 indicated a weak or non-existent trend
Crosses : DI Crossovers are the significant trading signal generated by the DMI
With this study
A Strong Trend is assumed when ADX >= 25
Bullish Trend is defined as (+D I > -DI ) and (ADX >= 25), which is plotted as green triangle up shape on top of the price chart
Bearish Trend is defined as (+D I < -DI ) and (ADX >= 25), which is plotted as red triangle down shape on top of the price chart
Week Trend is assumed when 17< ADX < 25, which is plotted as black triangles up or down shape, depending on +DI-DI values, on top of the price chart
Non-Existent Trend is assumed when ADX < 17, which is plotted as yellow triangles up or down shape, depending on +DI-DI values, on top of the price chart
Additionally intensity of the colors used in all cases above are defined by comparing ADX’s current value with its previous value
3- Volume Based Colored Bars indicator created by Kıvaç ÖZBİLGİÇ
Volume Based Colored Bars colors the bars into volume weighted signals increasing the visibility of the Volume changes. Intensity of the colors of the bars varies according to average value of the volume for given length of bars (default value set to 30 bars)
Disclaimer: The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd tradingview user liable for any possible claim for damages arising from any decision you make based on use of the script
Wyszukaj w skryptach "THE SCRIPT"
Colored Directional Movement and Bollinger Band's Cloud by DGTThis study combines Bollinger Bands, one of the most popular technical analysis indicators on the market, and Directional Movement (DMI), which is another quite valuable technical analysis indicator.
Bollinger Bands used in conjunction with Directional Movement (DMI) may help getting a better understanding of the ever changing landscape of the market and perform more advanced technical analysis
Here are details of the concept applied
1- Plots Bollinger Band’s (BB) Cloud colored based on Bollinger Band Width (BBW) Indicator’s value
Definition
Bollinger Bands (created by John Bollinger ) are a way to measure volatility . As volatility increases, the wider the bands become and similarly as volatility decreases, the gap between bands narrows
Bollinger Bands, in widely used approach, consist of a band of three lines. Likewise common usage In this study a band of five lines is implemented
The line in the middle is a Simple Moving Average (SMA) set to a period of 20 bars (the most popular usage). The SMA then serves as a base for the Upper and Lower Bands. The Upper and Lower Bands are used as a way to measure volatility by observing the relationship between the Bands and price. the Upper and Lower Bands in this study are set to two and three standard deviations (widely used form is only two standard deviations) away from the SMA (The Middle Line), hence there are two Upper Bands and two Lower Bands. The background between two Upper Bands is filled with a green color and the background between two Lower Bands is filled with a red color. In this we have obtained Bollinger Band’s (BB) Clouds (Upper Cloud and Lower Cloud)
Additionally the intensity of the color of the background is calculated with Bollinger Bands Width ( BBW ), which is a technical analysis indicator derived from the standard Bollinger Bands indicator. Bollinger Bands Width, quantitatively measures the width between the Upper and Lower Bands. In this study the intensity of the color of the background is increased if BBW value is greater than %25
What to look for
Price Actions : Prices are almost always within the bands especially at this study the bands of three standard deviations away from the SMA. Price touching or breaking the BB Clouds could be considered as buying or selling opportunity. However this is not always the case, there are exceptions such as Walking the Bands. “Walking the Bands” can occur in either a strong uptrend or a strong downtrend. During a strong trend, there may be repeated instances of price touching or breaking through the BB Clouds. Each time that this occurs, it is not a signal, it is a result of the overall strength of the move. In this study in order to get a better understanding of the trend and add ability to perform some advanced technical analysis Directional Movement Indicator (DMI) is added to be used in conjunction with Bollinger Bands.
Cycling Between Expansion and Contraction : One of the most well-known theories in regards to Bollinger Bands is that volatility typically fluctuates between periods of expansion (Bands Widening : surge in volatility and price breaks through the BB Cloud) and contraction (Bands Narrowing : low volatility and price is moving relatively sideways). Using Bollinger Bands in conjunction with Bollinger Bands Width may help identifying beginning of a new directional trend which can result in some nice buying or selling signals. Of course the trader should always use caution
2- Plots Colored Directional Movement Line
Definition
Directional Movement (DMI) (created by J. Welles Wilder ) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX) , Plus Directional Indicator (+D I) and Minus Directional Indicator (-D I) . ADX's purposes is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to compliment the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.
This study combines all three lines in a single colored shapes series plotted on the top of the price chart indicating the trend strength with different colors and its direction with triangle up and down shapes.
What to look for
Trend Strength : Analyzing trend strength is the most basic use for the DMI. Wilder believed that a DMI reading above 25 indicated a strong trend, while a reading below 20 indicated a weak or non-existent trend
Crosses : DI Crossovers are the significant trading signal generated by the DMI
With this study
A Strong Trend is assumed when ADX >= 25
Bullish Trend is defined as (+D I > -DI ) and (ADX >= 25), which is plotted as green triangle up shape on top of the price chart
Bearish Trend is defined as (+D I < -DI ) and (ADX >= 25), which is plotted as red triangle down shape on top of the price chart
Week Trend is assumed when 17< ADX < 25, which is plotted as black triangles up or down shape, depending on +DI-DI values, on top of the price chart
Non-Existent Trend is assumed when ADX < 17, which is plotted as yellow triangles up or down shape, depending on +DI-DI values, on top of the price chart
Additionally intensity of the colors used in all cases above are defined by comparing ADX’s current value with its previous value
Summary of the Study:
Even more simplified and visually enhanced DMI drawing comparing to its classical usage (may require a bit practice to get used to it)
As said previously, to get a better understanding of the trend and add ability to perform some advanced technical analysis Directional Movement Indicator (DMI) is used in conjunction with Bollinger Bands.
PS: Analysis and tests are performed with high volatile Cryptocurrency Market
Source of References : definitions provided herein are gathered from TradingView’s knowledgebase/library
Disclaimer: The script is for informational and educational purposes only. Use of the script does not constitutes professional and/or financial advice. You alone the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd tradingview user liable for any possible claim for damages arising from any decision you make based on use of the script
Interquartile rangeThis script plots the Interquartile range (difference between 3rd and 1st quartile), providing useful infos about price distribution and volatility . It is designed to work paired with my other script "Moving percentiles channel", but you can also use it alone.
Features:
- You can compute the percentiles using Linear interpolation or Nearest Rank methods
- You can plot not only the Interquartile range, but also the range (difference between 100th and 0 percentiles) or a User defined range (you have to select which percentiles you want to use from the settings)
- The script also plots a signal line that you can use to obtain signals when the Range line crosses the signal line itself. You can plot the signal line using many different MAs ( SMA , EMA , DEMA , TEMA , WMA , VWMA , HMA , ALMA , LSMA , FRAMA ).
- It also plots an histogram that represents the difference between the Range and the Signal line. It will be green colored when positive, and red colored when negative.
Please show me your support and follow me if you like my scripts. Many more of them are coming in the future.
@ Bezzus
Trend Following Moving AveragesWhile analysing a chart, one of the biggest problem is to see if there is trend or not. While thinking about it, I found the idea to analyse moving averages in channel and their momentum according to channel width. I already published it as Trend Following Bar as you see at bottom of the chart.
How it Works?
On each bar it creates a channel by highest/lowest point of a MA. highest point is upper line and lowest point is lower line of the MA channel,
It gets highest and lowest point of last 300 bars, (say Price Channel )
If the width of MA channel is greater than certain rate of price channel then it decides there is trend
After it decided there is trend, it calculates the rate between channel and MA. Bigger result means stronger trend.
According to rate of MA channel and the price channel , MA Line becomes lighter/darker. so when you look at the MA Line's color you can see the trend strength.
Some details about my idea:
Options:
You can choose following MA types as source: EMA, SMA , RMA, WMA , VWMA
"Period to Check Trend" is the period to create MA channel. Bigger period cause more sensitivity.
"Trend Channel Rate %" is rate of price channel . Price channel created by using highest/lowest of last 300 bars. I did this to make the script works on all time frames correctly.
"Use Linear Regression" is used to get rid of noise. it may cause 1-2 bars latency.
Trend Following Bar script:
All comments are welcome!.
Enjoy!
[e2] EDS Key & AvwapThis indicator shows a Key Level Support & Resistance level and VWAP that resets on your choice of the stock's Earnings , Dividends or Splits release date.
A maximum of 8 bands calculated using a factor of the anchored VWAP's standard deviation can be displayed.
Note
The script is designed for stock-trading only.
Credits
Inspired by timwest , LazyBear 's Earnings S/R Levels and MichelT 's Earnings, Splits, Dividends scripts.
Market Adaptive Stop-LossI realized that the zone changes in the stoploss remained slow, so I couldn't make enough use of the characteristics of technical indicators when opening positions.
This pushed me to keep stop-loss under the influence of a dependent variable.
This script helped me a lot (everget) :
I've redesigned the stop-loss to be affected by intersections.
Therefore, this script is also suitable for adaptive moving averages, fractional periods.
Script features:
1.You can select calculation methods created by using various technical analysis methods from the scripts' settings:
-Moving Average Convergence Divergence ( Macd )
-Stochastic Oscillator ( Stoch )
-Stochastic Relative Strength Index (StochRSI)
-Stochastic Money Flow Index (StochMFI ) (More info : )
-Know Sure Thing ( KST )
-OBV ( On Balance Volume )
-SMA ( Simple Moving Average )
-EMA ( Exponential Moving Average )
-FISHERTRANSFORM ( Fisher Transform )
-AWESOMEOSCILLATOR( Awesome Oscillator )
-PSAR ( Parabolic Stop and Reverse - Parabolic SAR )
-HULLMA( Hull Moving Average )
-VWMA ( Volume Weighted Moving Average )
-RMA (Moving Average using in Relative Strength Index calculations.)
-COG (Center of Gravity )
-ACC-DIST ( Accumulation / Distribution Index )
2 - The region is determined according to the above calculation methods and if it is larger or smaller than the previous stop loss level.
And if the price in the negative zone is lower than the stoploss, it is the exact signal and is shown with more highlighted colors.
And, in the positive zone, where the price is greater than the stoploss, the trade zones are certain.
Shown with more highlighted colors.
If the zones are correct but stop-loss is not suitable for opening positions:
In other words, if the stop-loss is above/under the highest-lowest levels in the positive zone or if the stop loss is located in the lower zone in the negative zone, these zones are shown to be darker and dimmed so that they do not cause false movements.
*** SUMMARY : As a result, you can use this script with support and resistances,and trend lines to get good results.
I hope it helps in your analyzes. Best regards.
Smooth Moving Average Ribbon [STUDY] @PuppyTherapyThe Smooth moving average ribbon script is an enhancement of the script I posted yesterday. But will help you also create a very simple trend-following strategy or a simple trend-following filter.
You are able to select from a large variety of moving averages add Heikin Ashi Candles as a source and also add additional smoothing to every single of the moving averages.
The Study script is equipped with alerts.
It is a showcase that a simple strategy like buy when we going up and sell when we going down actually works especially on a bigger timeframe.
Thanks to all supporters and everget for some of the moving average scripts.
Ehlers FilterThis is the Adaptive Ehlers Filter.
I had to unroll the for loops and array because TV is missing crucial data structures and data conversions (Arrays and series to integer conversion for values).
I'm in the process of releasing some scripts. This is a very old script I had. This contains volatility ranges and can be used as trading signals. You can also see how the EF moves up or down, the direction, when price is sideways, and use price breaks up and down as signals from the line.
Have fun, because I didn't making this script hahaha
NOTE : There is an issue with the script where at certain time frames it positions itself below or above. I think its due to calculations. If anyone knows the fix before I get the chance to take a look at it, please let me know.
books.google.com
Top Bottom Finder Public version- Jayy This script plots a 6 algos from the Coles/Hawkins "Midas Technical Analysis" book:
Top finder / Bottom Finder (Levine Algo by Bob English)* - onlinelibrary.wiley.com
MIDAS VWAP Gen-1) -
MIDAS VWAP average and deltas
VWAP (Gen-1) using a date or a bar n number can be initiated at bar 0 - useful for a new IPO
Standard Deviation of MIDAS VWAP
MIDAS Displacement Channels (Coles) - edmond.mires.co
An%20Anchored%20VWAP%20Channel%20For%20Congested%20Markets.pdf
* for better results with topfinder and bottomfinder use the companion TB-F Matcher script.
See wiki for a synopsis: en.wikipedia.org
Relevant info can be found in: Midas Technical Analysis: A VWAP Approach to Trading and Investing in Today’s Markets by
Andrew Coles, David G. Hawkins Copyright © 2011 by Andrew Coles and David G. Hawkins.
Appendix C: TradeStation Code for the MIDAS Topfinder/Bottomfinder Curves ported to Tradingview
This script requires a working understanding of "Midas Technical Analysis" Google "Midas Technical Analysis" and a variety of information will appear.
To find fit the curve as described in the Midas book a companion script is required that will after a few manual iterative inputs guide you to the appropriate D value for the for input into this program ( see the TB-F Matcher script). You might also try the Midas average and Deltas as described in the book. I have added the 2nd, 3rd and 4th multiples of Delta.
The advantage is that there is no curve fitting. You still need to select a starting point for Midas or the topfinder bottomfinder (TB_F)
or the VWAP.
////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
See the notes in the script below
Cheers Jayy
Securities day session - Opening-Range- Jayy Opening Range (OR) for regular daytime session eg NYSE 0 930hrs to 1600 hrs.
This is not for Forex sessions which is addressed in a separate script.
This script fixes two issues:
syntax error when code compiles
flaky plotting of the opening range and targets that required page reloading
Additions:
In this code there are more more opening range time period choices at the bottom of the format dialogue box
Opening Range Targets:
Opening Range Targets as per Leaf_West
Targets are set at 127% , 162%, 200 %, 262 %, 362%, 423%, 685%, 1109% and 1794% and this can be traded intraday using methods described at charts-by-leaf.com I also have some Leaf West PDFs that describe how the targets are set and how they are traded. There are others that use opening range.
See the notes in the script for more detail.
My first opening range script originated from work done by Chris Moody. This script has changed significantly but there are small remnants of Chris Moody's script lurking within.
This script is available to all.
Cheers Jayy
[LAVA] Relative Price DifferenceThis script shows the relative price difference based off the last high and low, so many bars ago. Bollinger bands are also included by default for closer inspection on the intensity of the movement or the lack thereof. Bollinger bands will follow the smoothed line which will allow the reactionary line to cross the boundary during an intense movement. With the colors selected, a gray color will appear after the color to the zero line to announce a deep correction is possible. Buy/Sell indicators show up as crosses to indicate when the price is moving in a certain direction. Sideways stagnation will have several crosses due to the close proximity to the zero line.
I use 21 in the demo here without the bollinger bands or buy/sell indicators to show the power of the script to identify bottoms and tops using the tips and hand drawn trendlines.
(This script is actually the same script as before, but listed here as the final version. Hopefully this will be my last update with this script.)
If you use and enjoy this script, please like it!
[blackcat] L3 Counter Peacock Spread█ OVERVIEW
The script titled " L3 Counter Peacock Spread" is an indicator designed for use in TradingView. It calculates and plots various moving averages, K lines derived from these moving averages, additional simple moving averages (SMAs), weighted moving averages (WMAs), and other technical indicators like slope calculations. The primary function of the script is to provide a comprehensive set of visual tools that traders can use to identify trends, potential support/resistance levels, and crossover signals.
█ LOGICAL FRAMEWORK
Input Parameters:
There are no explicit input parameters defined; all variables are hardcoded or calculated within the script.
Calculations:
• Moving Averages: Calculates Simple Moving Averages (SMA) using ta.sma.
• Slope Calculation: Computes the slope of a given series over a specified period using linear regression (ta.linreg).
• K Lines: Defines multiple exponentially adjusted SMAs based on a 30-period MA and a 1-period MA.
• Weighted Moving Average (WMA): Custom function to compute WMAs by iterating through price data points.
• Other Indicators: Includes Exponential Moving Average (EMA) for momentum calculation.
Plotting:
Various elements such as MAs, K lines, conditional bands, additional SMAs, and WMAs are plotted on the chart overlaying the main price action.
No loops control the behavior beyond those used in custom functions for calculating WMAs. Conditional statements determine the coloring of certain plot lines based on specific criteria.
█ CUSTOM FUNCTIONS
calculate_slope(src, length) :
• Purpose: To calculate the slope of a time-series data point over a specified number of periods.
• Functionality: Uses linear regression to find the current and previous slopes and computes their difference scaled by the timeframe multiplier.
• Parameters:
– src: Source of the input data (e.g., closing prices).
– length: Periodicity of the linreg calculation.
• Return Value: Computed slope value.
calculate_ma(source, length) :
• Purpose: To calculate the Simple Moving Average (SMA) of a given source over a specified period.
• Functionality: Utilizes TradingView’s built-in ta.sma function.
• Parameters:
– source: Input data series (e.g., closing prices).
– length: Number of bars considered for the SMA calculation.
• Return Value: Calculated SMA value.
calculate_k_lines(ma30, ma1) :
• Purpose: Generates multiple exponentially adjusted versions of a 30-period MA relative to a 1-period MA.
• Functionality: Multiplies the 30-period MA by coefficients ranging from 1.1 to 3 and subtracts multiples of the 1-period MA accordingly.
• Parameters:
– ma30: 30-period Simple Moving Average.
– ma1: 1-period Simple Moving Average.
• Return Value: Returns an array containing ten different \u2003\u2022 "K line" values.
calculate_wma(source, length) :
• Purpose: Computes the Weighted Moving Average (WMA) of a provided series over a defined period.
• Functionality: Iterates backward through the last 'n' bars, weights each bar according to its position, sums them up, and divides by the total weight.
• Parameters:
– source: Price series to average.
– length: Length of the lookback window.
• Return Value: Calculated WMA value.
█ KEY POINTS AND TECHNIQUES
• Advanced Pine Script Features: Utilization of custom functions for encapsulating complex logic, leveraging TradingView’s library functions (ta.sma, ta.linreg, ta.ema) for efficient computations.
• Optimization Techniques: Efficient computation of K lines via pre-calculated components (multiples of MA30 and MA1). Use of arrays to store intermediate results which simplifies plotting.
• Best Practices: Clear separation between calculation and visualization sections enhances readability and maintainability. Usage of color.new() allows dynamic adjustments without hardcoding colors directly into plot commands.
• Unique Approaches: Introduction of K lines provides an alternative representation of trend strength compared to traditional MAs. Implementation of conditional band coloring adds real-time context to existing visual cues.
█ EXTENDED KNOWLEDGE AND APPLICATIONS
Potential Modifications/Extensions:
• Adding more user-defined inputs for lengths of MAs, K lines, etc., would make the script more flexible.
• Incorporating alert conditions based on crossovers between key lines could enhance automated trading strategies.
Application Scenarios:
• Useful for both intraday and swing trading due to the combination of short-term and long-term MAs along with trend analysis via slopes and K lines.
• Can be integrated into larger systems combining this indicator with others like oscillators or volume-based metrics.
Related Concepts:
• Understanding how linear regression works internally aids in grasping the slope calculation.
• Familiarity with WMA versus SMA helps appreciate why different types of averaging might be necessary depending on market dynamics.
• Knowledge of candlestick patterns can complement insights gained from this indicator.
Market Stats Panel [Daveatt]█ Introduction
I've created a script that brings TradingView's watchlist stats panel functionality directly to your charts. This isn't just another performance indicator - it's a pixel-perfect (kidding) recreation of TradingView's native stats panel.
Important Notes
You might need to adjust manually the scaling the firs time you're using this script to display nicely all the elements.
█ Core Features
Performance Metrics
The panel displays key performance metrics (1W, 1M, 3M, 6M, YTD, 1Y) in real-time, with color-coded boxes (green for positive, red for negative) for instant performance assessment.
Display Modes
Switch seamlessly between absolute prices and percentage returns, making it easy to compare assets across different price scales.
Absolute mode
Percent mode
Historical Comparison
View year-over-year performance with color-coded lines, allowing for quick historical pattern recognition and analysis.
Data Structure Innovation
Let's talk about one of the most interesting challenges I faced. PineScript has this quirky limitation where request.security() can only return 127 tuples at most. £To work around this, I implemented a dual-request system. The first request handles indices 0-63, while the second one takes care of indices 64-127.
This approach lets us maintain extensive historical data without compromising script stability.
And here's the cool part: if you need to handle even more years of historical data, you can simply extend this pattern by adding more request.security() calls.
Each additional call can fetch another batch of monthly open prices and timestamps, following the same structure I've used.
Think of it as building with LEGO blocks - you can keep adding more pieces to extend your historical reach.
Flexible Date Range
Unlike many scripts that box you into specific timeframes, I've designed this one to be completely flexible with your date selection. You can set any start year, any end year, and the script will dynamically scale everything to match. The visual presentation automatically adjusts to whatever range you choose, ensuring your data is always displayed optimally.
█ Customization Options
Visual Settings
The panel's visual elements are highly customizable. You can adjust the panel width to perfectly fit your workspace, fine-tune the line thickness to match your preferences, and enjoy the pre-defined year color scheme that makes tracking historical performance intuitive and visually appealing.
Box Dimensions
Every aspect of the performance boxes can be tailored to your needs. Adjust their height and width, fine-tune the spacing between them, and position the entire panel exactly where you want it on your chart. The goal is to make this tool feel like it's truly yours.
█ Technical Challenges Solved
Polyline Precision
Creating precise polylines was perhaps the most demanding aspect of this project.
The challenge was ensuring accurate positioning across both time and price axes, while handling percentage mode scaling with precision.
The script constantly updates the current year's data in real-time, seamlessly integrating new information as it comes in.
Axis Management
Getting the axes right was like solving a complex puzzle. The Y-axis needed to scale dynamically whether you're viewing absolute prices or percentages.
The X-axis required careful month labeling that stays clean and readable regardless of your selected timeframe.
Everything needed to align perfectly while maintaining proper spacing in all conditions.
█ Final Notes
This tool transforms complex market data into clear, actionable insights. Whether you're day trading or analyzing long-term trends, it provides the information you need to make informed decisions. And remember, while we can't predict the future, we can certainly be better prepared for it with the right tools at hand.
A word of warning though - seeing those red numbers in a beautifully formatted panel doesn't make them any less painful! 😉
---
Happy Trading! May your charts be green and your stops be far away!
Daveatt
Consecutive CandlesTrading as Easy as One, Two, and Three
Unlock the power of simplicity in trading with this innovative script inspired by KepalaBesi. Designed for traders of all levels, this script provides a user-friendly approach to market analysis, enabling you to make informed trading decisions effortlessly.
Key Features:
Simplified Signals: Receive clear buy and sell signals based on robust technical indicators. The script streamlines your trading process, allowing you to focus on execution rather than analysis.
Customizable Settings: Tailor the script to fit your trading style. Adjust parameters to suit your risk tolerance and market preferences, ensuring a personalized trading experience.
Visual Clarity: Benefit from intuitive visual cues on your chart, making it easy to identify optimal entry and exit points. The clean interface helps you make quick decisions without confusion.
Whether you’re a seasoned trader or just starting, "Trading as Easy as One, Two, and Three" simplifies your trading journey, turning complex strategies into straightforward actions. Embrace a more efficient way to trade and elevate your performance in the markets!
Get Started Today!
Join the community of traders who have discovered the ease of trading with KepalaBesi's inspired script. Elevate your trading experience and achieve your financial goals with confidence!
N Bar Reversal Detector [LuxAlgo]The N Bar Reversal Detector is designed to detect and highlight N-bar reversal patterns in user charts, where N represents the length of the candle sequence used to detect the patterns. The script incorporates various trend indicators to filter out detected signals and offers a range of customizable settings to fit different trading strategies.
🔶 USAGE
The N-bar reversal pattern extends the popular 3-bar reversal pattern. While the 3-bar reversal pattern involves identifying a sequence of three bars signaling a potential trend reversal, the N-bar reversal pattern builds on this concept by incorporating additional bars based on user settings. This provides a more comprehensive indication of potential trend reversals. The script automates the identification of these patterns and generates clear, visually distinct signals to highlight potential trend changes.
When a reversal chart pattern is confirmed and aligns with the price action, the pattern's boundaries are extended to create levels. The upper boundary serves as resistance, while the lower boundary acts as support.
The script allows users to filter patterns based on the trend direction identified by various trend indicators. Users can choose to view patterns that align with the detected trend or those that are contrary to it.
🔶 DETAILS
🔹 The N-bar Reversal Pattern
The N-bar reversal pattern is a technical analysis tool designed to signal potential trend reversals in the market. It consists of N consecutive bars, with the first N-1 bars used to identify the prevailing trend and the Nth bar confirming the reversal. Here’s a detailed look at the pattern:
Bullish Reversal : In a bullish reversal setup, the first bar is the highest among the first N-1 bars, indicating a prevailing downtrend. Most of the remaining bars in this sequence should be bearish (closing lower than where they opened), reinforcing the existing downward momentum. The Nth (most recent) bar confirms a bullish reversal if its high price is higher than the high of the first bar in the sequence (standard pattern). For a stronger signal, the closing price of the Nth bar should also be higher than the high of the first bar.
Bearish Reversal : In a bearish reversal setup, the first bar is the lowest among the first N-1 bars, indicating a prevailing uptrend. Most of the remaining bars in this sequence should be bullish (closing higher than where they opened), reinforcing the existing upward momentum. The Nth bar confirms a bearish reversal if its low price is lower than the low of the first bar in the sequence (standard pattern). For a stronger signal, the closing price of the Nth bar should also be lower than the low of the first bar.
🔹 Min Percentage of Required Candles
This parameter specifies the minimum percentage of candles that must be bullish (for a bearish reversal) or bearish (for a bullish reversal) among the first N-1 candles in a pattern. For higher values of N, it becomes more challenging for all of the first N-1 candles to be consistently bullish or bearish. By setting a percentage value, P, users can adjust the requirement so that only a minimum of P percent of the first N-1 candles need to meet the bullish or bearish condition. This allows for greater flexibility in pattern recognition, accommodating variations in market conditions.
🔶 SETTINGS
Pattern Type: Users can choose the type of the N-bar reversal patterns to detect: Normal, Enhanced, or All. "Normal" detects patterns that do not necessarily surpass the high/low of the first bar. "Enhanced" detects patterns where the last bar surpasses the high/low of the first bar. "All" detects both Normal and Enhanced patterns.
Reversal Pattern Sequence Length: Specifies the number of candles (N) in the sequence used to identify a reversal pattern.
Min Percentage of Required Candles: Sets the minimum percentage of the first N-1 candles that must be bullish (for a bearish reversal) or bearish (for a bullish reversal) to qualify as a valid reversal pattern.
Derived Support and Resistance: Toggles the visibility of the support and resistance levels/zones.
🔹 Trend Filtering
Filtering: Allows users to filter patterns based on the trend indicators: Moving Average Cloud, Supertrend, and Donchian Channels. The "Aligned" option only detects patterns that align with the trend and conversely, the "Opposite" option detects patterns that go against the trend.
🔹 Trend Indicator Settings
Moving Average Cloud: Allows traders to choose the type of moving averages (SMA, EMA, HMA, etc.) and set the lengths for fast and slow moving averages.
Supertrend: Options to set the ATR length and factor for Supertrend.
Donchian Channels: Option to set the length for the channel calculation.
🔶 RELATED SCRIPTS
Reversal-Candlestick-Structure.
Reversal-Signals.
Prometheus Black-Scholes Option PricesThe Black-Scholes Model is an option pricing model developed my Fischer Black and Myron Scholes in 1973 at MIT. This is regarded as the most accurate pricing model and is still used today all over the world. This script is a simulated Black-Scholes model pricing model, I will get into why I say simulated.
What is an option?
An option is the right, but not the obligation, to buy or sell 100 shares of a certain stock, for calls or puts respective, at a certain price, on a certain date (assuming European style options, American options can be exercised early). The reason these agreements, these contracts exist is to provide traders with leverage. Buying 1 contract to represent 100 shares of the underlying, more often than not, at a cheaper price. That is why the price of the option, the premium , is a small number. If an option costs $1.00 we pay $100.00 for it because 100 shares * 1 dollar per share = 100 dollars for all the shares. When a trader purchases a call on stock XYZ with a strike of $105 while XYZ stock is trading at $100, if XYZ stock moves up to $110 dollars before expiration the option has $5 of intrinsic value. You have the right to buy something at $105 when it is trading at $110. That agreement is way more valuable now, as a result the options premium would increase. That is a quick overview about how options are traded, let's get into calculating them.
Inputs for the Black-Scholes model
To calculate the price of an option we need to know 5 things:
Current Price of the asset
Strike Price of the option
Time Till Expiration
Risk-Free Interest rate
Volatility
The price of a European call option 𝐶 is given by:
𝐶 = 𝑆0 * Φ(𝑑1) − 𝐾 * 𝑒^(−𝑟 * 𝑇) * Φ(𝑑2)
where:
𝑆0 is the current price of the underlying asset.
𝐾 is the strike price of the option.
𝑟 is the risk-free interest rate.
𝑇 is the time to expiration.
Φ is the cumulative distribution function of the standard normal distribution.
𝑑1 and 𝑑2 are calculated as:
𝑑1 = (ln(𝑆0 / 𝐾) + (𝑟 + (𝜎^2 / 2)) * 𝑇) / (𝜎 * sqrt(𝑇))
𝑑2= 𝑑1 - (𝜎 * sqrt(𝑇))
𝜎 is the volatility of the underlying asset.
The price of a European put option 𝑃 is given by:
𝑃 = 𝐾 * 𝑒^(−𝑟 * 𝑇) * Φ(−𝑑2) − 𝑆0 * Φ(−𝑑1)
where 𝑑1 and 𝑑2 are as defined above.
Key Assumptions of the Black-Scholes Model
The price of the underlying asset follows a lognormal distribution.
There are no transaction costs or taxes.
The risk-free interest rate and volatility of the underlying asset are constant.
The underlying asset does not pay dividends during the life of the option.
The markets are efficient, meaning that all known information is already reflected in the prices.
Options can only be exercised at expiration (European-style options).
Understanding the Script
Here I have arrows pointing to specific spots on the table. They point to Historical Volatility and Inputted DTE . Inputted DTE is a value the user may input to calculate premium for options that expire in that many days. Historical Volatility , is the value calculated by this code.
length = 252 // One year of trading days
hv = ta.stdev(math.log(close / close ), length) * math.sqrt(365)
And then made daily like the Black-Scholes model needs from this step in the code.
hv_daily = request.security(syminfo.tickerid, "1D", hv)
The user has the option to input their own volatility to the Script. I will get into why that may be advantageous in a moment. If the user chooses to do so the Script will change which value it is using as so.
hv_in_use = which_sig == false ? hv_daily : sig
There is a lot going on in this image but bare with me, it will all make sense by the end. The column to the far left of both the green and maroon colored columns represent the strike price of the contract, if the numbers are white that means the contract is out of the money, gray means in the money. If you remember from the calculation this represents the price to buy or sell shares at, for calls or puts respective. The column second from the left shows a value for Simulated Market Price . This is a necessary part of this script so we can show changes in implied volatility. See, when we go to our brokerages and look at options prices, sure the price was calculated by a pricing model, but that is rarely the true price of the model. Market participant sentiment affects this value as their estimates for future volatility, Implied Volatility changes.
For example, if a call option is supposed to be worth $1.00 from the pricing model, however everyone is bullish on the stock and wants to buy calls, the premium may go to $1.20 from $1.00 because participants juice up the Implied Volatility . Higher Implied Volatility generally means higher premium, given enough time to expiration. Buying an option at $0.80 when it should be worth $1.00 due to changes in sentiment is a big part of the Quant Trading industry.
Of course I don't have access to an actual exchange so get prices, so I modeled participant decisions by adding or subtracting a small random value on the "perfect premium" from the Black-Scholes model, and solving for implied volatility using the Newton-Raphson method.
It is like when we have speed = distance / time if we know speed and time , we can solve for distance .
This is what models the changing Implied Volatility in the table. The other column in the table, 3rd from the left, is the Black-Scholes model price without the changes of a random number. Finally, the 4th column from the left is that Implied Volatility value we calculated with the modified option price.
More on Implied Volatility
Implied Volatility represents the future expected volatility of an asset. As it is the value in the future it is not know like Historical Volatility, only projected. We provide the user with the option to enter their own Implied Volatility to start with for better modeling of options close to expiration. If you want to model options 1 day from expiration you will probably have to enter a higher Implied Volatility so that way the prices will be higher. Since the underlying is so close to expiration they are traded so much and traders manipulate their Implied Volatility , increasing their value. Be safe while trading these!
Thank you all for clicking on my indicator and reading this description! Happy coding, Happy trading, Be safe!
Good reference: www.investopedia.com
Fibonacci Period Range [UkutaLabs]█ OVERVIEW
The Fibonacci Period Range Indicator is a powerful trading tool that draws levels of support and resistance that are based on key Fibonacci levels. The script will identify the high and low of a range that is specified by the user, then draw several levels of support and resistance based on Fibonacci levels.
The script will also draw extension levels outside of the specified range that are also based on Fibonacci levels. These extension levels can be turned off in the indicator settings.
Each level is also labelled to help traders understand what each line represents. These labels can be turned off in the indicator settings.
The purpose of this script is to simplify the trading experience of users by giving them the ability to customize the time period that is identified, then draw levels of support and resistance that are based on the price action during this time.
█ USAGE
In the indicator settings, the user has access to a setting called Session Range. This gives users control over the range that will be used.
The script will then identify the high and low of the range that was specified and draw several levels of support and resistance based on Fibonacci levels between this range. The user can also choose to have extension levels that display more levels outside of the range.
These lines will extend until the end of the current trading day at 5:00 pm EST.
█ SETTINGS
Configuration
• Display Mode: Determines the number of days that will be displayed by the script.
• Show Labels: Determines whether or not identifying labels will be displayed on each line.
• Font Size: Determines the text size of labels.
• Label Position: Determines the justification of labels.
• Extension Levels: Determines whether or not extension levels will be drawn outside of the high and low of the specified range.
Session
• Session Range: Determines the time period that will be used for calculations.
• Timezone Offset (+/-): Determines how many hours the session should be offset by.
Speedometer RevisitedSpeedometer Revisited is a new way to draw custom metric speedometers and is intended to be a utility for other coders to use.
@rumpypumpydumpy originally introduced the Speedometer Toolkit in version 4 of Pine Script. Since then, Pine Script has been updated to version 5, introducing some amazing new features such as polylines and chart.points. This indicator is an example of what can be done with these newer features.
The indicator starts off with a handful of functions that will be used to create the drawings. Notes are left throughout the code explaining what each line of the functions does. My goal was to make these functions user-friendly and somewhat easy to understand. I then demonstrate two examples: one speedometer with five segments and another with three.
The first example demonstrates how to visually represent the analysts' ratings for a stock using the built-in syminfo.recommendations. The speedometer is divided into five segments, each representing a different level of analyst recommendation: strong sell, sell, hold, buy, and strong buy.
Each segment is drawn using a polyline from the createSeg function, with colors assigned as follows:
Red for 'Strong Sell'
Maroon for 'Sell'
Yellow for 'Hold'
Green for 'Buy'
Lime for 'Strong Buy'
The script identifies the maximum value among the analyst ratings, calculates the midpoint of the corresponding segment, and draws a needle pointing to this midpoint.
The second example employs the speedometer design to display market sentiment through the put-call ratio. The put-call ratio is a gauge of investor sentiment, where values above 1 indicate a bearish sentiment (more puts being bought relative to calls), and values below 1 suggest a bullish outlook (more calls being bought relative to puts).
The speedometer is divided into three segments, reflecting different ranges of the put-call ratio:
Red for a ratio greater than 1 (bearish sentiment)
Yellow for a ratio between 0.8 and 1 (neutral to bearish sentiment)
Lime for a ratio less than 0.8 (bullish sentiment)
Depending on the value of the put-call ratio, the script calculates which segment the current value falls into and determines the appropriate segment number. The script calculates the midpoint of the selected segment and draws a needle pointing to this value.
Both examples show how the speedometer can be used as a visual indicator of certain market conditions, helping traders quickly recognize trends and adjust their strategies accordingly.
A big thanks to @rumpypumpydumpy for his original Speedometer Toolbox. I hope this take on it can be useful for other coders.
Squeeze & Release [AlgoAlpha]Introduction:
💡The Squeeze & Release by AlgoAlpha is an innovative tool designed to capture price volatility dynamics using a combination of EMA-based calculations and ATR principles. This script aims to provide traders with clear visual cues to spot potential market squeezes and release scenarios. Hence it is important to note that this indicator shows information on volatility, not direction.
Core Logic and Components:
🔶EMA Calculations: The script utilizes the Exponential Moving Average (EMA) in multiple ways to smooth out the data and provide indicator direction. There are specific lengths for the EMAs that users can modify as per their preference.
🔶ATR Dynamics: Average True Range (ATR) is a core component of the script. The differential between the smoothed ATR and its EMA is used to plot the main line. This differential, when represented as a percentage of the high-low range, provides insights into volatility.
🔶Squeeze and Release Detection: The script identifies and highlights squeeze and release scenarios based on the crossover and cross-under events between our main line and its smoothed version. Squeezes are potential setups where the market may be consolidating, and releases indicate a potential breakout or breakdown.
🔶Hyper Squeeze Detection: A unique feature that detects instances when the main line is rising consistently over a user-defined period. Hyper squeeze marks areas of extremely low volatility.
Visual Components:
The main line (ATR-based) changes color depending on its position relative to its EMA.
A middle line plotted at zero level which provides a quick visual cue about the main line's position. If the main line is above the zero level, it indicates that the price is squeezing on a longer time horizon, even if the indicator indicates a shorter-term release.
"𝓢" and "𝓡" characters are plotted to represent 'Squeeze' and 'Release' scenarios respectively.
Standard Deviation Bands are plotted to help users gauge the extremity and significance of the signal from the indicator, if the indicator is closer to either the upper or lower deviation bands, this means that statistically, the current value is considered to be more extreme and as it is further away from the mean where the indicator is oscillating at for the majority of the time. Thus indicating that the price has experienced an unusual amount or squeeze or release depending on the value of the indicator.
Usage Guidelines:
☝️Traders can use the script to:
Identify potential consolidation (squeeze) zones.
Gauge potential breakout or breakdown scenarios (release).
Fine-tune their entries and exits based on volatility.
Adjust the various lengths provided in the input for better customization based on individual trading styles and the asset being traded.
Liquidation Estimates (Real-Time) [LuxAlgo]The Liquidation Estimates (Real-Time) experimental indicator attempts to highlight real-time long and short liquidations on all timeframes. Here with liquidations, we refer to the process of forcibly closing a trader's position in the market.
By analyzing liquidation data, traders can gauge market sentiment, identify potential support and resistance levels, identify potential trend reversals, and make informed decisions about entry and exit points.
🔶 USAGE
Liquidation refers to the process of forcibly closing a trader's position. It occurs when a trader's margin account can no longer support their open positions due to significant losses or a lack of sufficient margin to meet the maintenance requirements.
Liquidations can be categorized as either a long liquidation or a short liquidation. A long liquidation is a situation where long positions are being liquidated, while short liquidation is a situation where short positions are being liquidated.
The green bars indicate long liquidations – meaning the number of long positions liquidated in the market. Typically, long liquidations occur when there is a sudden drop in the asset price that is being traded. This is because traders who were bullish on the asset and had opened long positions on the same will now face losses since the market has moved against them.
Similarly, the red bars indicate short liquidations – meaning the number of short positions liquidated in the futures market. Short liquidations occur when there is a sudden spike in the price of the asset that is being traded. This is because traders who were bearish on the asset and had opened short positions will now face losses since the market has moved against them.
Liquidation patterns or clusters of liquidations could indicate potential trend reversals.
🔹 Dominance
Liquidation dominance (Difference) displays the difference between long and short liquidations, aiming to help identify the dominant side.
🔹 Total Liquidations
Total liquidations display the sum of long and short liquidations.
🔹 Cumulative Liquidations
Cumulative liquidations are essentially the cumulative sum of the difference between short and long liquidations aiming to confirm the trend and the strength of the trend.
🔶 DETAILS
It's important to note that liquidation data is not provided on the Trading View's platform or can not be fetched from anywhere else.
Yet we know that the liquidation data is closely tied in with trading volumes in the market and the movement in the underlying asset’s price. As a result, this script analyzes available data sources extracts the required information, and presents an educated estimate of the liquidation data.
The data presented does not reflect the actual individual quantitative value of the liquidation data, traders and analysts shall look to the changes over time and the correlation between liquidation data and price movements.
The script's output with the default option values has been visually checked/compared with the liquidation chart presented on coinglass.com.
🔶 SETTINGS
🔹Liquidations Input
Mode: defines the presentation of the liquidations chart. Details are given in the tooltip of the option.
Longs Reference Price: defines the base price in calculating long liquidations.
Shorts Reference Price: defines the base price in calculating short liquidations.
🔶 RELATED SCRIPTS
Liquidation-Levels
Liquidity-Sentiment-Profile
Buyside-Sellside-Liquidity
Liquidity Sentiment Profile (Auto-Anchored) [LuxAlgo]
The Liquidity Sentiment Profile (Auto-Anchored) is an advanced charting tool that measures by combining PRICE and VOLUME data over specified anchored periods and highlights the distribution of the liquidity and the market sentiment at specific price levels. This version is a variation of the previously published Liquidity Sentiment Profile , wherewith this version allows users to select a variety of different anchoring periods, such as 'Auto', 'Fixed Range', 'Swing High', 'Swing Low', 'Session', 'Day', 'Week', 'Month', 'Quarter', and 'Year'
Liquidity refers to the availability of orders at specific price levels in the market, allowing transactions to occur smoothly.
🔶 USAGE
A Liquidity Sentiment Profile (Auto-Anchored) is a combination of liquidity and a sentiment profile, where the right side of the profile highlights the distribution of the traded activity at different price levels, and the left side of the profile highlights the market sentiment at those price levels
The liquidity profile is categorized by assigning different colors based on the significance of the traded activity of the specific price levels, allowing traders to reveal significant price levels, such as support and resistance levels, supply and demand zones, liquidity gaps, consolidation zones, etc
The Liquidity Sentiment Profiles aim to present Value Areas based on the significance of price levels, thus allowing users to identify value areas that can be formed more than once within the range of a single profile
Level of Significance Line - displays the changes in the price levels with the highest traded activity (developing POC)
Buyside & Sellside Liquidity Zones - displays Liquidity Levels, also known as Supply and Demand Zones
🔶 SETTINGS
The script takes into account user-defined parameters and plots the profiles, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Sentiment Profile
Anchor Period: The indicator resolution is set by the input of the Anchor Period.
Fixed Period: Applicable if the Anchor Period is set to 'Fixed Range' then the period of the profile is defined with this option
Swing Detection Length: Applicable if the Anchor Period is set to 'Swing High' or 'Swing Low' then the length required to detect the Swing Levels is defined with this option which is then used to determine the period of the profile
🔹 Liquidity Profile
Liquidity Profile: Toggles the visibility of the Liquidity Profiles
High Traded Nodes: Threshold and Color option for High Traded Nodes
Average Traded Nodes: Color option for Average Traded Nodes
Low Traded Nodes: Threshold and Color option for Low Traded Nodes
🔹 Sentiment Profile
Sentiment Profile: Toggles the visibility of the Sentiment Profiles
Bullish Nodes: Color option for Bullish Nodes
Bearish Nodes: Color option for Bearish Nodes
🔹 Buyside & Sellside Liquidity Zones
Buyside & Sellside Liquidity Zones: Toggles the visibility of the Liquidity Levels
Buyside Liquidity Nodes: Color option for Buyside Liquidity Nodes
Sellside Liquidity Nodes: Color option for Sellside Liquidity Nodes
🔹 Other Settings
Level of Significance: Toggles the visibility of the Level of Significance Line
Price Levels, Color: Toggles the visibility of the Profile Price Levels
Number of Rows: Specify how many rows each profile histogram will have. Caution, having it set to high values will quickly hit Pine Script™ drawing objects limit and fewer historical profiles will be displayed
Profile Width %: Alters the width of the rows in the histogram, relative to the profile length
Profile Range Background Fill: Toggles the visibility of the Profiles Range
🔶 RELATED SCRIPTS
Liquidity-Sentiment-Profile
Buyside-Sellside-Liquidity
ICT-Concepts
Candle Close AlertCandle Close Alert (CCA) :
The "Candle Close Alert" (CCA) is a custom technical analysis tool. It operates as an overlay on price charts and serves to detect and notify users about significant changes in consecutive candle closes. The script calculates the difference between the closing price of the current candle and the previous candle, referred to as the "close difference." It then compares this close difference against a user-specified threshold value.
When the close difference exceeds the threshold, the script triggers an alert, notifying users of a potential noteworthy event. This alert can serve as a prompt for traders and investors to investigate the current price action further or to consider possible trading decisions .
Additionally, the script enhances visualization by plotting the close differences on the price chart. Positive close differences exceeding the threshold are plotted in green, while negative close differences exceeding the threshold in magnitude are plotted in red. This color-coded visualization helps users quickly identify periods of significant price movement and potential market trends.
However, it's important to note that the CCA script is a standalone tool and should be used in conjunction with comprehensive market analysis. Trading decisions should not be solely based on the alerts and visualizations provided by this script. Instead, they should be considered within the broader context of other technical indicators, fundamental analysis, and risk management strategies. Enjoy it!
Liquidity Levels/Voids (VP) [LuxAlgo]The Liquidity Levels/Voids (VP) is a script designed to detect liquidity voids & levels by measuring traded volume at all price levels on the market between two swing points and highlighting the distribution of the liquidity voids & levels at specific price levels.
🔶 USAGE
Liquidity is a fundamental market force that shapes the trajectory of assets.
The creation of a liquidity level comes as a result of an initial imbalance of supply/demand, which forms what we know as a swing high or swing low. As more players take positions in the market, these are levels that market participants will use as a historical reference to place their stops. When the levels are then re-tested, a decision will be made. The binary outcome here can be a breakout of the level or a reversal back to the mean.
Liquidity voids are sudden price changes that occur in the market when the price jumps from one level to another with little trading activity (low volume), creating an imbalance in price. The price tends to fill or retest the liquidity voids area, and traders understand at which price level institutional players have been active.
Liquidity voids are a valuable concept in trading, as they provide insights about where many orders were injected, creating this inefficiency in the market. The price tends to restore the balance.
🔶 SETTINGS
The script takes into account user-defined parameters and detects the liquidity voids based on them, where detailed usage for each user-defined input parameter in indicator settings is provided with the related input's tooltip.
🔹 Liquidity Levels / Voids
Liquidity Levels/Voids: Color customization option for Unfilled Liquidity Levels/Voids.
Detection Length: Lookback period used for the calculation of Swing Levels.
Threshold %: Threshold used for the calculation of the Liquidity Levels & Voids.
Sensitivity: Adjusts the number of levels between two swing points, as a result, the height of a level is determined, and then based on the above-given threshold the level is checked if it matches the liquidity level/void conditions.
Filled Liquidity Levels/Voids: Toggles the visibility of the Filled Liquidity Levels/Voids and color customization option for Filled Liquidity Levels/Voids.
🔹 Other Features
Swing Highs/Lows: Toggles the visibility of the Swing Levels, where tooltips present statistical information, such as price, price change, and cumulative volume between the two swing levels detected based on the detection length specified above, Coloring options to customize swing low and swing high label colors, and Size option to adjust the size of the labels.
🔹 Display Options
Mode: Controls the lookback length of detection and visualization.
# Bars: Lookback length customization, in case Mode is set to Present.
🔶 RELATED SCRIPTS
Liquidity-Voids-FVG
Buyside-Sellside-Liquidity
Swing-Volume-Profiles
