[S1B] Leverage Take-Profit-LinesShort Description:
The Leverage Take-Profit-Lines indicator assists traders in setting take-profit and stop-loss levels based on leverage, entry price, and risk percentage. It draws horizontal lines representing various take-profit levels and the stop-loss level on the chart, aiding traders in visually identifying potential exit points and managing risk.
Detailed Description:
The Leverage Take-Profit-Lines indicator is designed to provide traders with a visual representation of take-profit and stop-loss levels tailored to their leverage, entry price, and risk preferences.
Key Features:
Customizable Parameters: Traders can adjust parameters such as leverage, entry price, risk percentage, and whether to extend lines to suit their trading strategy.
Take-Profit Levels: The indicator calculates and draws horizontal lines representing different take-profit levels based on the specified percentage of leverage-adjusted entry price.
Stop-Loss Level: It calculates and displays the stop-loss level based on the specified risk percentage and leverage, helping traders manage risk effectively.
Visual Representation: The indicator visually highlights take-profit and stop-loss levels on the chart, facilitating quick decision-making for traders.
Usage Guide:
Setting Parameters: Adjust the input parameters including leverage, entry price, risk percentage, and other settings according to your trading strategy.
Interpreting Lines: Horizontal lines are drawn on the chart representing take-profit levels (TP1, TP2, TP3, TP4) and the stop-loss level. These lines indicate potential exit points and risk management levels.
As an example the TP1 can be used to sell 10% of position size, TP2 20%, TP3 20% and TP4 20-40%.
The Leverage Take-Profit-Lines indicator empowers traders with valuable insights into setting profit targets and managing risk effectively, contributing to more informed trading decisions.
Wyszukaj w skryptach "entry"
ATR Bands (Keltner Channel), Wick and SRSI Signals [MW]Introduction
This indicator uses a novel combination of ATR Bands, candle wicks crossing the ATR upper and lower bands, and baseline, and combines them with the Stochastic SRSI oscillator to provide early BUY and SELL signals in uptrends, downtrends, and in ranging price conditions.
How it’s unique
People generally understand Bollinger Bands and Keltner Channels. Buy at the bottom band, sell at the top band. However, because the bands themselves are not static, impulsive moves can render them useless. People also generally understand wicks. Candles with large wicks can represent a change in pattern, or volatile price movement. Combining those two to determine if price is reaching a pivot point is relatively novel. When Stochastic RSI (SRSI) filtering is also added, it becomes a genuinely unique combination that can be used to determine trade entries and exits.
What’s the benefit
The benefit of the indicator is that it can help potentially identify pivots WHEN THEY HAPPEN, and with potentially minimal retracement, depending on the trader’s time window. Many indicators wait for a trend to be established, or wait for a breakout to occur, or have to wait for some form of confirmation. In the interpretation used by this indicator, bands, wicks, and SRSI cycles provide both the signal and confirmation.
It takes into account 3 elements:
Price approaching the upper or lower band or the baseline - MEANING: Price is becoming extended based on calculations that use the candle trading range.
A candle wick of a defined proportion (e.g. wick is 1/2 the size of a full candle OR candle body) crosses a band or baseline, but the body does not cross the band or baseline - MEANING: Buyers and sellers are both very active.
The Stochastic RSI reading is above 80 for SELL signals and below 20 for BUY signals - MEANING: Additional confirmation that price is becoming extended based on the current cyclic price pattern.
How to Use
SIGNALS
Buy Signals - Green(ish):
B Signal - Potential pivot up from the lower band when using the preferred multiplier
B1 Signal - Potential pivot up from the lower band when using phi * multiplier
B2 Signal - Potential pivot up from the lower band when using 1/2 * multiplier
B3 Signal - Potential pivot up from baseline
Sell Signals - Red(ish):
S Signal - Potential pivot down from the upper band when using the preferred multiplier
S1 Signal - Potential pivot down from the upper band when using
S2 Signal - Potential pivot down from the upper band when using 1/2 * multiplier
S3 Signal - Potential pivot down from the baseline
DISCUSSION
During an uptrend or downtrend, signals from the baseline can help traders identify areas where they may enter the trending move with the least amount of drawdown. In both cases, entry points can occur with baseline signals in the direction of the trend.
For example, in an uptrend (when the price is forming higher highs and higher lows, or when the baseline is rising), price tends to oscillate between the upper band and baseline. In this case, the baseline BUY signal (B3) can show an entry point.
In a downtrend (when the price is forming lower highs and lower lows, or when the baseline is falling), price tends to oscillate between the baseline and the lower band. In this case, the baseline SELL signal (S3) can show an entry point.
During consolidation, when price is ranging, price tends to oscillate between the upper and lower bands, while crossing through the baseline unperturbed. Here, entry points can occur at the upper and lower bands.
When all conditions are met at the lower band during consolidation, a BUY signal (B), can occur. This signal may also occur prior to a break out of consolidation to the upside.
When all conditions are met at the upper band during consolidation, a SELL signal (S), can occur. This signal may also occur prior to a break out of consolidation to the downside.
Additional B1, B2, and S1, and S2 signals can be displayed that use the bands based on a multiplier that is half that of the primary one, and phi (0.618) times the primary multiplier as a way to quickly check for signals occurring along different, but related, bands.
Calculations
ATR Bands, or Keltner Channels, are a technical analysis tool that are used to measure market volatility and identify overbought or oversold conditions in the trading of financial instruments, such as stocks, bonds, commodities, and currencies. ATR Bands consist of three lines plotted on a price chart:
Middle Band, Basis, or Baseline: This is typically a simple moving average (SMA) of the closing prices over a certain period. It represents the intermediate-term trend of the asset's price.
Upper Band: This is calculated by adding a certain number of ATRs to the middle band (SMA). The upper band adjusts itself with the increase in volatility.
Lower Band: This is calculated by subtracting the same number of ATRs from the middle band (SMA). Like the upper band, the lower band adjusts to changes in volatility.
The candle wick signals occur if the wick is at the specified ratio compared to either the entire candle or the candle body. The upper band, lower band, and baseline signals happen if the wick is the specified ratio of the total candle size. For the major signals for upper and lower bands, these occur when the wick extends outside of the bands while closing a candle inside of the bands. For the baseline signals, they occur if a wick crosses a baseline but closes on the other side.
Settings
CHANNEL SETTINGS
Baseline EMA Period (Default: 21): Period length of the moving average basis line.
ATR Period (Default: 21): The number of periods over which the Average True Range (ATR) is calculated.
Basis MA Type (Default: SMA): The moving average type for the basis line.
Multiplier (Default: 2.5: The deviation multiplier used to calculate the band distance from the basis line.
ADDITIONAL CHANNELS
Half of Multiplier Offset (Default: True): Toggles the display of the ATR bands that are set a distance of half of the ATR multiplier.
Quarter of Multiplier Offset (Default: false): Toggles the display of the ATR bands that are set a distance of one quarter of the ATR multiplier.
Phi (Φ) Offset (Default: false): Toggles the display of the ATR bands that are set a distance of phi (Φ) times the ATR multiplier.
WICK SETTINGS FOR CANDLE FILTERS
Wick Ratio for Bands (Default: 0.4): The ratio of wick size to total candle size for use at upper and lower bands.
Wick Ratio for Baseline (Default: 0.4): The ratio of wick size to total candle size for use at baseline.
Use Candle Body (rather than full candle size) (Default: false): Determines whether wick calculations use the candle body or the entire candle size.
VISUAL PREFERENCES - SIGNALS
Show Signals (Default: true): Allows signal labels to be shown.
Show Signals from 1/2 Band Offset (Default: false): Toggle signals originating from 1/2 offset upper and lower bands.
Show Signals from Phi (Φ) Band Offset (Default: false): Toggle signals originating from phi (Φ) offset upper and lower bands.
Show Baseline Signals (Default: false): Toggle Baseline signals.
VISUAL PREFERENCES - BANDS
Show ATR (Keltner) Bands (Default: true): Use a background color inside the Bollinger Bands.
Fill Bands (Default: true): Use a background color inside the Bollinger Bands.
STOCHASTIC SETTINGS
Use Stochastic RSI Filtering (Default: False): This will only trigger some SELL signals when the stochastic RSI is above 80, and BUY signals when below 20.
K (Default: 3): The smoothing level for the Stochastic RSI.
RSI Length (Default: 14): The period length for the RSI calculation.
Stochastic Length (Default: 8): The period length over which the stochastic calculation is performed.
Other Usage Notes and Limitations
To understand future price movement, this indicator assumes that 3 things must be known:
Evidence of a change of market structure. This can be demonstrated by increased volatility, consolidation, volume spikes (which can be tracked with the MW Volume Impulse Indicator) or, in the case of this indicator, candle wicks.
The potential cause of the change. It could be a VWAP line (which can be tracked with the Multi VWAP , and Multi VWAP from Gaps indicators), an event, an important support or resistance level, a key moving average, or many other things. This indicator assumes the ATR bands can be a cause.
The current position in the price cycle. Oscillators like the RSI, and MACD, are typical measures of price oscillation (other oscillators like the Price and Volume Stochastic Divergence indicator can also be useful). This indicator uses the Stochastic RSI oscillator to determine overbought and oversold conditions.
When evidence of the change appears, and the potential cause of the change is identified, and the price oscillation is at a favorable position for the desired trading direction, this indicator will generate a signal.
ATR Bands (or Keltner Channels) are used to determine when price might “revert to the mean”. Crossing, or being near the upper or lower band, can indicate an overbought or oversold condition, which could lead to a price reversal. By tracking the behavior of candle wicks during these events, we can see how active the battle is between buyers and sellers.
If the top of a wick is large, it may indicate that sellers are aggressively attempting to bring the price down. Conversely, if the bottom wick is large, it can indicate that buyers are actively trying to counter the price action caused by selling pressure.
When this wicking action occurs at times when price is not near the upper band, lower band, or baseline, it could indicate the presence of an important level. That could mean a nearby VWAP line, a supply or demand zone, a round price number, or a number of other factors. In any case, this wick may be the first indication of a price reversal.
Shorter baseline periods may be better for short period trading like scalping or day trading, while longer period baselines can show signals that are better suited to swing trading, or longer term investing.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
The TradingView platform allows a maximum of 500 labels per chart. This means that if your settings allow for a lot of signals, labels for earlier ones may not appear if the total number of labels exceeds 500 for the chart.
Bollinger Band Wick and SRSI Signals [MW]Introduction
This indicator uses a novel combination of Bollinger Bands, candle wicks crossing the upper and lower Bollinger Bands and baseline, and combines them with the Stochastic SRSI oscillator to provide early BUY and SELL signals in uptrends, downtrends, and in ranging price conditions.
How it’s unique
People generally understand Bollinger Bands and Keltner Channels. Buy at the bottom band, sell at the top band. However, because the bands themselves are not static, impulsive moves can render them useless. People also generally understand wicks. Candles with large wicks can represent a change in pattern, or volatile price movement. Combining those two to determine if price is reaching a pivot point is relatively novel. When Stochastic RSI (SRSI) filtering is also added, it becomes a genuinely unique combination that can be used to determine trade entries and exits.
What’s the benefit
The benefit of the indicator is that it can help potentially identify pivots WHEN THEY HAPPEN, and with potentially minimal retracement, depending on the trader’s time window. Many indicators wait for a trend to be established, or wait for a breakout to occur, or have to wait for some form of confirmation. In the interpretation used by this indicator, bands, wicks, and SRSI cycles provide both the signal and confirmation.
It takes into account 3 elements:
Price approaching the upper or lower band or the baseline - MEANING: Price is becoming extended based on calculations that use the candle trading range.
A candle wick of a defined proportion (e.g. wick is 1/2 the size of a full candle OR candle body) crosses a band or baseline, but the body does not cross the band or baseline - MEANING: Buyers and sellers are both very active.
The Stochastic RSI reading is above 80 for SELL signals and below 20 for BUY signals - MEANING: Additional confirmation that price is becoming extended based on the current cyclic price pattern.
How to Use
SIGNALS
Buy Signals - Green(ish):
B Signal - Potential pivot up from the lower band when using the preferred multiplier
B1 Signal - Potential pivot up from baseline
Sell Signals - Red(ish):
S Signal - Potential pivot down from the upper band when using the preferred multiplier
S1 Signal - Potential pivot down from the baseline
DISCUSSION
During an uptrend or downtrend, signals from the baseline can help traders identify areas where they may enter the trending move with the least amount of drawdown. In both cases, entry points can occur with baseline signals in the direction of the trend.
For example, in an uptrend (when the price is forming higher highs and higher lows, or when the baseline is rising), price tends to oscillate between the upper band and baseline. In this case, the baseline BUY signal (B3) can show an entry point.
In a downtrend (when the price is forming lower highs and lower lows, or when the baseline is falling), price tends to oscillate between the baseline and the lower band. In this case, the baseline SELL signal (S3) can show an entry point.
During consolidation, when price is ranging, price tends to oscillate between the upper and lower bands, while crossing through the baseline unperturbed. Here, entry points can occur at the upper and lower bands.
When all conditions are met at the lower band during consolidation, a BUY signal (B), can occur. This signal may also occur prior to a break out of consolidation to the upside.
When all conditions are met at the upper band during consolidation, a SELL signal (S), can occur. This signal may also occur prior to a break out of consolidation to the downside.
Additional, B1 and S1 signals can be displayed that use the baseline as the pivot level.
Settings
SIGNALS
Show Bollinger Band Signals (Default: True): Allows signal labels to be shown.
Hide Baseline Signals (Default: False): Baseline signals are on by default. This will turn them off.
Show Wick Signals (Defau
lt: True): Displays signals when wicking occurs.
BOLLINGER BAND SETTINGS
Period length for Bollinger Band Basis (Default: 21): Length of the Bollinger Band (BB) moving average basis line.
Basis MA Type (Default: SMA): The moving average type for the BB Basis line.
Source (Default: “close”): The source of time series data.
Standard Deviation Multiplier (Default: 2.5: The deviation multiplier used to calculate the band distance from the basis line.
WICK SETTINGS FOR BOLLINGER BANDS
Wick Ratio for Bands (Default: 0.3): The ratio of wick size to total candle size for use at upper and lower bands.
Wick Ratio for Baseline (Default: 0.3): The ratio of wick size to total candle size for use at baseline.
WICK SETTINGS FOR CANDLE SIGNALS
Upper Wick Threshold (Default: 50): The percent of upper wick compared to the full candle size or candle body size.
Lower Wick Threshold (Default: 50): The percent of lower wick compared to the full candle size or candle body size.
Use Candle Body (Default: false): Toggles the use of the full candle size versus the candle body size when calculating the wick signal.
VISUAL PREFERENCES
Fill Bands (Default: true): Use a background color inside the Bollinger Bands.
Show Signals (Default: true): Toggle the Bollinger Band upper band, lower band, and baseline signals.
Show Bollinger Bands (Default: true): Show the Bollinger Bands.
STOCHASTIC SETTINGS
Use Stochastic RSI Filtering (Default: False): This will only trigger some SELL signals when the stochastic RSI is above 80, and BUY signals when below 20.
K (Default: 3): The smoothing level for the Stochastic RSI.
RSI Length (Default: 14): The period length for the RSI calculation.
Stochastic Length (Default: 8): The period length over which the stochastic calculation is performed.
Calculations
Bollinger Bands are a technical analysis tool that are used to measure market volatility and identify overbought or oversold conditions in the trading of financial instruments, such as stocks, bonds, commodities, and currencies. Bollinger Bands consist of three lines plotted on a price chart:
Middle Band, Basis, or Baseline: This is typically a simple moving average (SMA) of the closing prices over a certain period. It represents the intermediate-term trend of the asset's price.
Upper Band: This is calculated by adding a certain number of standard deviations to the middle band (SMA). The upper band adjusts itself with the increase in volatility.
Lower Band: This is calculated by subtracting the same number of standard deviations from the middle band (SMA). Like the upper band, the lower band adjusts to changes in volatility.
The candle wick signals occur if the wick is at the specified ratio compared to either the entire candle or the candle body. The upper band, lower band, and baseline signals happen if the wick is the specified ratio of the total candle size. For the major signals for upper and lower bands, these occur when the wick extends outside of the bands while closing a candle inside of the bands. For the baseline signals, they occur if a wick crosses a baseline but closes on the other side.
Other Usage Notes and Limitations
To understand future price movement, this indicator assumes that 3 things must be known:
Evidence of a change of market structure. This can be demonstrated by increased volatility, consolidation, volume spikes (which can be tracked with the MW Volume Impulse Indicator) or, in the case of this indicator, candle wicks.
The potential cause of the change. It could be a VWAP line (which can be tracked with the Multi VWAP , and Multi VWAP from Gaps indicators), an event, an important support or resistance level, a key moving average, or many other things. This indicator assumes the ATR bands can be a cause.
The current position in the price cycle. Oscillators like the RSI, and MACD, are typical measures of price oscillation (other oscillators like the Price and Volume Stochastic Divergence indicator can also be useful). This indicator uses the Stochastic RSI oscillator to determine overbought and oversold conditions.
When evidence of the change appears, and the potential cause of the change is identified, and the price oscillation is at a favorable position for the desired trading direction, this indicator will generate a signal.
ATR Bands (or Keltner Channels) are used to determine when price might “revert to the mean”. Crossing, or being near the upper or lower band, can indicate an overbought or oversold condition, which could lead to a price reversal. By tracking the behavior of candle wicks during these events, we can see how active the battle is between buyers and sellers.
If the top of a wick is large, it may indicate that sellers are aggressively attempting to bring the price down. Conversely, if the bottom wick is large, it can indicate that buyers are actively trying to counter the price action caused by selling pressure.
When this wicking action occurs at times when price is not near the upper band, lower band, or baseline, it could indicate the presence of an important level. That could mean a nearby VWAP line, a supply or demand zone, a round price number, or a number of other factors. In any case, this wick may be the first indication of a price reversal.
Shorter baseline periods may be better for short period trading like scalping or day trading, while longer period baselines can show signals that are better suited to swing trading, or longer term investing.
It's important for traders to be aware of the limitations of any indicator and to use them as part of a broader, well-rounded trading strategy that includes risk management, fundamental analysis, and other tools that can help with reducing false signals, determining trend direction, and providing additional confirmation for a trade decision. Diversifying strategies and not relying solely on one type of indicator or analysis can help mitigate some of these risks.
The TradingView platform allows a maximum of 500 labels per chart. This means that if your settings allow for a lot of signals, labels for earlier ones may not appear if the total number of labels exceeds 500 for the chart.
MTF HalfTrendIntroduction
A half-trend indicator is a technical analysis tool that uses moving averages and price data to find potential trend reversal and entry points in the form of graphical arrows showing market turning points.
The salient features of this indicator are:
- It uses the phenomenon of moving averages.
- It is a momentum indicator.
- It can indicate a trend change.
- It is capable of detecting a bullish or bearish trend reversal.
- It can signal to sell/buy.
- It is a real-time indicator.
Multi-Timeframe Application
A standout feature is its flexibility across timeframes. Traders have the liberty to choose any timeframe on the chart, enhancing the tool's versatility and making it suitable for both short-term and long-term analyses.
Principle of the Half Trend indicator
This indicator is based on the moving averages. The moving average is the average of the fluctuation or change in the price of an asset. These averages are taken for a time interval.
So, a half-trend indicator takes the moving averages phenomenon as its principle for working. The most commonly used moving averages in a half trend indicator are:
- Relative strength index (RSI)
- EMA (estimated moving average)
Components of a Half Trend indicator
There are two main components of a half trend indicator:
- Half trend line
- Arrows
- ATR lines
Half trend line
Half trend line represents this indicator on a candlestick chart. This line shows the trend of a chart in real-time. A half-trend line is based on the moving averages.
There are two further components of a half-trend line:
- Redline
- Blue line
A red line represents a bearish trend. When the half-trend line turns red, a trend is facing a dip. It is time for the bears to take control of the market. A bearish control of the market represents the domination of sellers in the market.
On the other hand, the blue line represents the bullish nature of the market. It tells a trader that the bullish sentiment of the market is prevailing. A bullish market means the number of buyers is significantly greater than the number of sellers.
Moreover, a trader can change these colors to his choice by customization.
Arrows
There are two types of arrows in this indicator which help a trader with the entry and exit points. These arrows are,
- Blue arrow
- Red arrow
A blue arrow signals a buying trade; on the other hand, a red arrow tells a trader about the selling of the assets. These arrows work with the moving average line to formulate a trading strategy.
The color of these arrows is changed if a trader desires so.
ATR lines
The ATR blue and red lines represent the Average True Range of the Half trend line. They may be used as stop loss or take profit levels.
Pros and Cons
Pros
- It is a very easy to eyes indicator.
- This is a very useful friendly indicator.
- It provides sufficient information to beginner traders.
- It provides sufficient information for entry points in a trade.
- A half-trend indicator provides a good exit strategy for a trader.
- It provides information about market reversals.
- It helps a trader to find a bullish and bearish sentiment in the market.
Cons
- It is a real-time indicator. So, it can lag.
- The lagging of this indicator can lead to miss opportunities.
- The most advanced and professional traders may not rely on this indicator for crucial trading decisions.
- The lagging of this indicator can predict false reversals of the market.
- It can create false signals.
- It requires the confluence of the other technical tools for a better success ratio.
Settings for Half Trend indicator
The default settings for half trend indicator are:
Amplitude = 2
Channel deviation = 2
Different markets or financial instruments may require different settings for optimal execution.
Amplitude: The degree that the Half trend line takes the internal variables into consideration. The higher the number, the fewer trades. The default value is 2.
Channel deviation: The ATR value calculation from the Half trend line. The default value is 2.
Trading strategy
It is an effective indicator in terms of strategy formation for a trading setup. The new and beginner trades can take benefit from this indicator for the formulation of a good trading setup. This indicator also helps seasoned and professional traders formulate a good trading setup with other technical tools.
The trading strategy involving a half-trend indicator is divided into three parts:
- Entry and exit
- Risk management
- Take profit
Entry and exit
It is an effective indicator that provides sufficient information about the entry and exit points in a trading setup. The profit of a trader is directly proportional to the appropriate entry and exit points. So, it is a crucial step in any trading setup.
The blue and red arrows provide information about the entry and exit points in a trading setup. Furthermore, the entry and exit for the bullish and bearish setups are as follows.
Entry and exit for a bullish setup
If a blue arrow appears under the half-trend line, it means the bullish sentiment of the market is getting stronger in the future. So, it is a signal for entry in a bullish setup.
As the red arrow appears on the chart, it is a signal to exit your trade. The red arrow represents a reversal in the market, so it is a good opportunity to close your trade in a bullish setup.
Entry and exit for a bearish setup
Suppose a red arrow appears above the red moving average line. It is a good opportunity to enter a trade in a bearish setup. The red line represents that sooner the sellers are going to take control and the value of the asset is about to face a dip. So it is the best time to make your move.
As the opposite arrow appears in the chart, it is time to exit from a bearish trade setup.
Re-entering a position
Bullish setup
- The half-trend line is blue.
- At least one candle closes below the blue half-trend line.
- Enter on the candle that closes above the blue half-trend line.
Bearish setup
- The half-trend line is red.
- At least one candle closes above the red half-trend line.
- Enter on the candle that closes below the red half-trend line.
Risk management
Risk management is an integral part of a trading setup. It is an important step to protect your potential profits and losses.
When trading in a bullish market, place the stop loss at the prior swing low. It will help you to cut your losses in case the prices move to the lower end.
In the case of a bearish market, place your stop loss above the prior swing high.
A trader may trail the stop loss using the ATR lines.
The new trader often makes mistakes in the placement of the stop loss. If you don’t place the stop loss at an appropriate point. It can drain your bank account and ruin your trading experience. Is is recommended not to risk more than 2% of your trading account, per trade.
Take profit
The blue ATR line may be used as one take profit level on a bullish setup followed by the previous swing high. The signal reversal would indicate the final take profit and closing of any position.
The red ATR line may be used as one take profit level on a bearish setup followed by the previous swing low. The signal reversal would indicate the final take profit and closing of any position.
Conclusion
A half trend indicator is a decent indicator that can transform your trading experience. It is a dual indicator that is based on the moving averages as well as helps you to form a trading strategy. If you are a new trader, this indicator can help you to learn and flourish in the trading universe. If you are a seasoned trader, I recommend you use this indicator with other technical analysis tools to enhance your success ratio.
All credits go to:
- @everget the original creator of this indicator (I just added the MTF capability).
- Ali Muhammad original author of much of the description used.
Strategy / Connectable [Azullian]The connectable strategy serves as a foundational component in our indicator system on TradingView, designed for intuitive testing, visualization, and construction of trading strategies. In concert with the connectable signal filter , it forms a cohesive unit that allows for efficient signal processing and strategy implementation. This integration enables the strategy to receive and act on weighted signals from various connectable indicators, making it a versatile tool for both novice and experienced traders.
Let's review the separate parts of this indicator.
█ STRATEGY INPUTS
We've provided an input to connect a signal filter or indicators or chains (→) which is set to 'Close' by default.
An input has several controls:
• Input: Connect indicators or signal filter here, choose indicators with a compatible : Signal connector.
• SM - Signal Mode: Choose a trading direction compatible with the settings in your signal filter
█ POSITION INVESTMENT
Determine the percentage of your trading budget you would like to use in each position based on the strategy's profit or loss.
• LINVB - Loss Investment Base: Choose which base to use to determine the investment percentage when the strategy is in a loss.
○ Equity: Use the equity as the base for percentage calculation.
○ Initial capital: Use the initial capital as the base for percentage calculation.
• LINV% - Loss Investment Percentage: Set a percentage of the chosen investment base as the investment for a new position.
○ For example, when 10% in loss, and a initial capital of $100, and the investment base is set to equity with a percentage of 50%, your investment will be 50% of $90, $45.
• PINVB - Profit Investment Base: Choose which base to use to determine the investment percentage when the strategy is in profit.
○ Equity: Use the equity as the base for percentage calculation.
○ Initial capital: Use the initial capital as the base for percentage calculation.
• PINV% - Profit Investment Percentage: Set a percentage of the chosen investment base as the investment for a new position.
○ For example, when 10% in profit, and an initial capital of $100, and the investment base is set to equity with a percentage of 100%, your investment will be 100% of $110, $110.
• RISK% - Risk Percentage:
○ Determine how much of the calculated position investment is at risk when the stop-loss is hit.
- For example, 1% of $45 represents a maximum loss of $0.45.
○ Risk percentage works together with the stop loss and the max leverage.
• MXLVG - Maximum Leverage:
○ Investigate the trading rules for your trading pair and use the maximum allowed amount of leverage.
○ To determine the number of contracts to be bought or sold, considering the stop loss and the specified risk percentage, the maximum leverage available will constrain the amount of leverage utilized to ensure that the maximum risk threshold is not exceeded. For instance, suppose the stop loss is set at 1%, and the risk percentage is defined as 10%. Initially, the calculated leverage to be used would be 10. However, if there is a maximum leverage cap set at 5, it would constrain the calculated leverage of 10 to adhere to the maximum limit of 5.
█ EXIT STOP LOSS
Determine the Stop Loss price based on your selected configuration.
As the stop loss is an integral part of the ordered contracts calculation used in conjunction with the Risk and Max leverage, you'll always need to provide a stop loss price.
• SLB - Stop Loss Base: Choose a stop loss mode for calculating stop loss prices.
○ Risk: Determines the price using the Risk parameter (RISK%) and maximum leverage (MXLVG). In this case, SLB% will not have any impact.
○ Price Entry + Offset: Calculates the stop loss price based on a offset percentage (SLB%) from the entry price of the position.
• SLB% - Stop Loss Base Percentage: Define an offset percentage that will be applied in the price entry + offset stop loss mode.
• SLT - Stop Loss Trailing:
○ Fixed: The initial stop loss will be kept and no trailing stop loss will be applied.
○ Trail Price: Computes the trailing stop loss price based on an offset percentage (SLT%) from the closing price of the current candle.
- If a better stop loss price is calculated, it will be set as the new stop loss price.
○ Trail Incr: Adapts the trailing stop loss price based on the offset percentage (SLT%).
- Each price change in favor of your position will incrementally adapt the trailing stop loss with SLT%.
• SLT% - Stop Loss Trailing Percentage: This percentage serves as an offset or increment depending on your chosen trailing mode.
█ EXIT TAKE PROFIT
Determine the Take Profit price based on your selected configuration.
• TPB - Take Profit Base: Choose a take profit mode for calculating take profit prices.
○ Reward: Determines the take profit price using the Risk parameter (RISK%) and the calculated Stop Loss price and the set reward percentage (TPB%).
- For example: Risk 1%, Calculated Stop loss price: $90, Entry price: $100, Reward (TPB%): 2%, will result in a take profit price on $120.
○ Price Entry + Offset: Calculates the take profit price based on a offset percentage (TPB%) from the entry price of the position.
- For example: Entry price: $100, Offset (TPB%): 2%, will result in a take profit price on $102.
• TPB% - Take Profit Base Percentage: Define an offset percentage that will be applied in the price entry + offset take profit mode.
• TPT - Take Profit Trailing:
○ Fixed: The initial take profit will be kept and no trailing take profit will be applied.
○ Trail Price: Computes the trailing take profit price based on an offset percentage (TPT%) from the closing price of the current candle.
- If an applicable take profit price is calculated, it will be set as the new take profit price.
○ Trail Incr: Adapts the trailing take profit price based on the offset percentage (TPT%). Each price change against your position will incrementally adapt the trailing take profit with TPT%.
• TPT% - Take Profit Trailing Percentage: This percentage serves as an offset or increment depending on your chosen trailing mode.
█ STRATEGY CONDITIONS
Specify when the strategy is permitted to execute trades.
• DATE: Enable the Date Range filter to restrict entries to a specific date range.
○ START: Set a start date and hour to commence trading.
○ END: Set an end date and hour to conclude trading within the defined range.
■ VISUALS
• LINE: Activate a colored dashed diagonal line to visually connect the entry and exit points of positions.
• SLTP: Enable visualization of stop loss, take profit, and break-even levels.
• PNL: Enable Break-Even and Close Lines along with a colored area in between to visualize profit and loss.
• ☼: Brightness % : Adjust the opacity of the plotted trading visuals.
• P - Profit Color : Choose the color for profit-related elements.
• L - Loss Color: Choose the color for loss-related elements.
• B - Breakeven Color : Select the color for break-even points.
• EL - Long Color: Specify the color for long positions.
• ES - Short Color: Specify the color for short positions.
• TRADE LABELING: For better analysis we've labeled all entries and exits conform with the type of order your strategy has executed, some examples:
○ XL-TP-150: Exit Long - Take Profit - Position 150
○ XS-TP-154: Exit Short - Take Profit - Position 154
○ XL-SL-160: Exit Long - Stop Loss - Position 160
○ XS-SL-164: Exit Short - Stop Loss - Position 164
█ USAGE OF CONNECTABLE INDICATORS
■ Connectable chaining mechanism
Connectable indicators can be connected directly to the signal monitor, signal filter or strategy , or they can be daisy chained to each other while the last indicator in the chain connects to the signal monitor, signal filter or strategy. When using a signal filter you can chain the filter to the strategy input to make your chain complete.
• Direct chaining: Connect an indicator directly to the signal monitor, signal filter or strategy through the provided inputs (→).
• Daisy chaining: Connect indicators using the indicator input (→). The first in a daisy chain should have a flow (⌥) set to 'Indicator only'. Subsequent indicators use 'Both' to pass the previous weight. The final indicator connects to the signal monitor, signal filter, or strategy.
■ Set up the strategy with a signal filter and an RSI indicator
Let's connect the Strategy to a connectable signal filter and a connectable RSI indicator :
1. Load all relevant indicators
• Load RSI / Connectable
• Load Signal filter / Connectable
• Load Strategy / Connectable
2. Signal Filter: Connect the RSI to the Signal Filter
• Open the signal filter settings
• Choose one of the three input dropdowns (1→, 2→, 3→) and choose : RSI / Connectable: Signal Connector
• Toggle the enable box before the connected input to enable the incoming signal
3. Signal Filter: Update the filter signals settings if needed
• The default settings of the filter enable EL (Enter Long), XL (Exit Long), ES (Enter Short) and XS (Exit Short).
4. Signal Filter: Update the weight threshold settings if needed
• All connectable indicators load by default with a score of 6 for each direction (EL, XL, ES, XS)
• By default, weight threshold (TH) is set at 5. This allows each occurrence to score, as the default score in each connectable indicator is 1 point above the threshold. Adjust to your liking.
5. Strategy: Connect the strategy to the signal filter in the strategy settings
• Select the strategy input → and select the Signal filter: Signal connector
6. Strategy: Enable filter compatible directions
• Set the signal mode of the strategy to a compatible direction with the signal filter.
Now that everything is connected, you'll notice green spikes in the signal filter representing long signals, and red spikes indicating short signals. Trades will also appear on the chart, complemented by a performance overview. Your journey is just beginning: delve into different scoring mechanisms, merge diverse connectable indicators, and craft unique chains. Instantly test your results and discover the potential of your configurations. Dive deep and enjoy the process!
█ BENEFITS
• Adaptable Modular Design: Arrange indicators in diverse structures via direct or daisy chaining, allowing tailored configurations to align with your analysis approach.
• Streamlined Backtesting: Simplify the iterative process of testing and adjusting combinations, facilitating a smoother exploration of potential setups.
• Intuitive Interface: Navigate TradingView with added ease. Integrate desired indicators, adjust settings, and establish alerts without delving into complex code.
• Signal Weight Precision: Leverage granular weight allocation among signals, offering a deeper layer of customization in strategy formulation.
• Advanced Signal Filtering: Define entry and exit conditions with more clarity, granting an added layer of strategy precision.
• Clear Visual Feedback: Distinct visual signals and cues enhance the readability of charts, promoting informed decision-making.
• Standardized Defaults: Indicators are equipped with universally recognized preset settings, ensuring consistency in initial setups across different types like momentum or volatility.
• Reliability: Our indicators are meticulously developed to prevent repainting. We strictly adhere to TradingView's coding conventions, ensuring our code is both performant and clean.
█ COMPATIBLE INDICATORS
Each indicator that incorporates our open-source 'azLibConnector' library and adheres to our conventions can be effortlessly integrated and used as detailed above.
For clarity and recognition within the TradingView platform, we append the suffix ' / Connectable' to every compatible indicator.
█ COMMON MISTAKES AND CLARIFICATIONS
• Removing an indicator from a chain: Deleting a linked indicator and confirming the "remove study tree" alert will also remove all underlying indicators in the object tree. Before removing one, disconnect the adjacent indicators and move it to the object stack's bottom.
• Point systems: The azLibConnector provides 500 points for each direction (EL: Enter long, XL: Exit long, ES: Enter short, XS: Exit short) Remember this cap when devising a point structure.
• Flow misconfiguration: In daisy chains the first indicator should always have a flow (⌥) setting of 'indicator only' while other indicator should have a flow (⌥) setting of 'both'.
• Recalculate: While this strategy has undergone extensive testing, enabling recalculation options like 'After order is filled' or 'On every tick' may lead to unexpected behavior.
• Fill orders: The strategy is thoroughly tested, yet enabling fill order options such as 'Using bar magnifier', 'On bar close', or 'Using standard OHLC' might result in unexpected outcomes.
• Layout and abbreviations: To maintain a consistent structure, we use abbreviations for each input. While this may initially seem complex, you'll quickly become familiar with them. Each abbreviation is also explained in the inline tooltips.
• Optimized for crypto trading: While many principles are common across markets, this strategy is specifically optimized and tested for crypto trading.
• Inputs: Connecting a connectable indicator directly to the strategy delivers the raw signal without a weight threshold, meaning every signal will trigger a trade.
█ A NOTE OF GRATITUDE
Through years of exploring TradingView and Pine Script, we've drawn immense inspiration from the community's knowledge and innovation. Thank you for being a constant source of motivation and insight.
█ RISK DISCLAIMER
Azullian's content, tools, scripts, articles, and educational offerings are presented purely for educational and informational uses. Please be aware that past performance should not be considered a predictor of future results.
azLibConnectorThe AzLibConnector provides a comprehensive suite of functions for facilitating seamless communication and chaining of signal value streams between connectable indicators, signal filters, monitors, and strategies on TradingView. By adeptly integrating both positive and negative weights from Entry Long (EL), Exit Long (XL), Entry Short (ES), and Exit Short (XS) signals into a singular figure, it leverages the source input field of TradingView to efficiently connect indicators in a chain. This results in a streamlined strategy setup without the necessity for Pine Script coding. Emphasizing modularity and uniformity, this library enables users to easily combine indicators into a coherent system, facilitating strategy development and execution with flexibility.
█ LIBRARY USAGE
extract(srcConnector)
Extract signals (EL, XL, ES, XS) from incoming connector signal stream
Parameters:
srcConnector : (series float) Source Connector. The connector stream series to extract the signals from.
Returns: A tuple containing the extracted EL, XL, ES, XS signal values.
compose(signalEL, signalXL, signalES, signalXS)
Compose a connector output signal stream from given EL, XL, ES and XS signals to be used by other Azullian Strategy Builder blocks.
Parameters:
signalEL : (series float) Entry Long signal value.
signalXL : (series float) Exit Long signal value.
signalES : (series float) Entry Short signal value.
signalXS : (series float) Exit Short signal value.
Returns: (series float) A composed connector output signal stream.
█ USAGE OF CONNECTABLE INDICATORS
■ Connectable chaining mechanism
Connectable indicators can be connected directly to the monitor, signal filter or strategy , or they can be daisy chained to each other while the last indicator in the chain connects to the monitor, signal filter or strategy. When using a signal filter or monitor you can chain the filter to the strategy input to make your chain complete.
• Direct chaining: Connect an indicator directly to the monitor, signal filter or strategy through the provided inputs (→).
• Daisy chaining: Connect indicators using the indicator input (→). The first in a daisy chain should have a flow (⌥) set to 'Indicator only'. Subsequent indicators use 'Both' to pass the previous weight. The final indicator connects to the monitor, signal filter, or strategy.
■ Set up the signal filter with a connectable indicator and strategy
Let's connect the MACD to a connectable signal filter and a strategy :
1. Load all relevant indicators
• Load MACD / Connectable
• Load Signal filter / Connectable
• Load Strategy / Connectable
2. Signal Filter: Connect the MACD to the Signal Filter
• Open the signal filter settings
• Choose one of the five input dropdowns (1→, 2→, 3→, 4→, 5→) and choose : MACD / Connectable: Signal Connector
• Toggle the enable box before the connected input to enable the incoming signal
3. Signal Filter: Update the filter settings if needed
• The default filter mode for the trading direction is SWING, and is compatible with the default settings in the strategy and indicators.
4. Signal Filter: Update the weight threshold settings if needed
• All connectable indicators load by default with a score of 6 for each direction (EL, XL, ES, XS)
• By default, weight threshold is 'ABOVE' Threshold 1 (TH1) and Threshold 2 (TH2), both set at 5. This allows each occurrence to score, as the default score is 1 point above the threshold.
5. Strategy: Connect the strategy to the signal filter in the strategy settings
• Select a strategy input → and select the Signal filter: Signal connector
6. Strategy: Enable filter compatible directions
• As the default setting of the filter is SWING, we should also set the SM (Strategy mode) to SWING.
Now that everything is connected, you'll notice green spikes in the signal filter or signal monitor representing long signals, and red spikes indicating short signals. Trades will also appear on the chart, complemented by a performance overview. Your journey is just beginning: delve into different scoring mechanisms, merge diverse connectable indicators, and craft unique chains. Instantly test your results and discover the potential of your configurations. Dive deep and enjoy the process!
█ BENEFITS
• Adaptable Modular Design: Arrange indicators in diverse structures via direct or daisy chaining, allowing tailored configurations to align with your analysis approach.
• Streamlined Backtesting: Simplify the iterative process of testing and adjusting combinations, facilitating a smoother exploration of potential setups.
• Intuitive Interface: Navigate TradingView with added ease. Integrate desired indicators, adjust settings, and establish alerts without delving into complex code.
• Signal Weight Precision: Leverage granular weight allocation among signals, offering a deeper layer of customization in strategy formulation.
• Advanced Signal Filtering: Define entry and exit conditions with more clarity, granting an added layer of strategy precision.
• Clear Visual Feedback: Distinct visual signals and cues enhance the readability of charts, promoting informed decision-making.
• Standardized Defaults: Indicators are equipped with universally recognized preset settings, ensuring consistency in initial setups across different types like momentum or volatility.
• Reliability: Our indicators are meticulously developed to prevent repainting. We strictly adhere to TradingView's coding conventions, ensuring our code is both performant and clean.
█ COMPATIBLE INDICATORS
Each indicator that incorporates our open-source 'azLibConnector' library and adheres to our conventions can be effortlessly integrated and used as detailed above.
For clarity and recognition within the TradingView platform, we append the suffix ' / Connectable' to every compatible indicator.
█ COMMON MISTAKES
• Removing an indicator from a chain: Deleting a linked indicator and confirming the "remove study tree" alert will also remove all underlying indicators in the object tree. Before removing one, disconnect the adjacent indicators and move it to the object stack's bottom.
• Point systems: The azLibConnector provides 500 points for each direction (EL: Enter long, XL: Exit long, ES: Enter short, XS: Exit short) Remember this cap when devising a point structure.
• Flow misconfiguration: In daisy chains the first indicator should always have a flow (⌥) setting of 'indicator only' while other indicator should have a flow (⌥) setting of 'both'.
█ A NOTE OF GRATITUDE
Through years of exploring TradingView and Pine Script, we've drawn immense inspiration from the community's knowledge and innovation. Thank you for being a constant source of motivation and insight.
█ RISK DISCLAIMER
Azullian's content, tools, scripts, articles, and educational offerings are presented purely for educational and informational uses. Please be aware that past performance should not be considered a predictor of future results.
Bitcoin Leverage Sentiment - Strategy [presentTrading]█ Introduction and How it is Different
The "Bitcoin Leverage Sentiment - Strategy " represents a novel approach in the realm of cryptocurrency trading by focusing on sentiment analysis through leveraged positions in Bitcoin. Unlike traditional strategies that primarily rely on price action or technical indicators, this strategy leverages the power of Z-Score analysis to gauge market sentiment by examining the ratio of leveraged long to short positions. By assessing how far the current sentiment deviates from the historical norm, it provides a unique lens to spot potential reversals or continuation in market trends, making it an innovative tool for traders who wish to incorporate market psychology into their trading arsenal.
BTC 4h L/S Performance
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█ Strategy, How It Works: Detailed Explanation
🔶 Data Collection and Ratio Calculation
Firstly, the strategy acquires data on leveraged long (**`priceLongs`**) and short positions (**`priceShorts`**) for Bitcoin. The primary metric of interest is the ratio of long positions relative to the total of both long and short positions:
BTC Ratio=priceLongs / (priceLongs+priceShorts)
This ratio reflects the prevailing market sentiment, where values closer to 1 indicate a bullish sentiment (dominance of long positions), and values closer to 0 suggest bearish sentiment (prevalence of short positions).
🔶 Z-Score Calculation
The Z-Score is then calculated to standardize the BTC Ratio, allowing for comparison across different time periods. The Z-Score formula is:
Z = (X - μ) / σ
Where:
- X is the current BTC Ratio.
- μ is the mean of the BTC Ratio over a specified period (**`zScoreCalculationPeriod`**).
- σ is the standard deviation of the BTC Ratio over the same period.
The Z-Score helps quantify how far the current sentiment deviates from the historical norm, with high positive values indicating extreme bullish sentiment and high negative values signaling extreme bearish sentiment.
🔶 Signal Generation: Trading signals are derived from the Z-Score as follows:
Long Entry Signal: Occurs when the BTC Ratio Z-Score crosses above the thresholdLongEntry, suggesting bullish sentiment.
- Condition for Long Entry = BTC Ratio Z-Score > thresholdLongEntry
Long Exit/Short Entry Signal: Triggered when the BTC Ratio Z-Score drops below thresholdLongExit for exiting longs or below thresholdShortEntry for entering shorts, indicating a shift to bearish sentiment.
- Condition for Long Exit/Short Entry = BTC Ratio Z-Score < thresholdLongExit or BTC Ratio Z-Score < thresholdShortEntry
Short Exit Signal: Happens when the BTC Ratio Z-Score exceeds the thresholdShortExit, hinting at reducing bearish sentiment and a potential switch to bullish conditions.
- Condition for Short Exit = BTC Ratio Z-Score > thresholdShortExit
🔶Implementation and Visualization: The strategy applies these conditions for trade management, aligning with the selected trade direction. It visualizes the BTC Ratio Z-Score with horizontal lines at entry and exit thresholds, illustrating the current sentiment against historical norms.
█ Trade Direction
The strategy offers flexibility in trade direction, allowing users to choose between long, short, or both, depending on their market outlook and risk tolerance. This adaptability ensures that traders can align the strategy with their individual trading style and market conditions.
█ Usage
To employ this strategy effectively:
1. Customization: Begin by setting the trade direction and adjusting the Z-Score calculation period and entry/exit thresholds to match your trading preferences.
2. Observation: Monitor the Z-Score and its moving average for potential trading signals. Look for crossover events relative to the predefined thresholds to identify entry and exit points.
3. Confirmation: Consider using additional analysis or indicators for signal confirmation, ensuring a comprehensive approach to decision-making.
█ Default Settings
- Trade Direction: Determines if the strategy engages in long, short, or both types of trades, impacting its adaptability to market conditions.
- Timeframe Input: Influences signal frequency and sensitivity, affecting the strategy's responsiveness to market dynamics.
- Z-Score Calculation Period: Affects the strategy’s sensitivity to market changes, with longer periods smoothing data and shorter periods increasing responsiveness.
- Entry and Exit Thresholds: Set the Z-Score levels for initiating or exiting trades, balancing between capturing opportunities and minimizing false signals.
- Impact of Default Settings: Provides a balanced approach to leverage sentiment trading, with adjustments needed to optimize performance across various market conditions.
Trend Signals with TP & SL [UAlgo]The "Trend Signals with TP & SL " indicator is a versatile tool designed to assist traders in identifying potential trend continuation opportunities within financial markets Utilizing a combination of technical indicators and user-defined parameters, this indicator aims to provide clear and actionable signals to aid traders in making informed trading decisions.
🔶 Features:
Trend Continuation Signals : The indicator generates signals to identify potential trend continuation points based on the input parameters such as sensitivity, ATR length, and cloud moving average length.
Take-Profit and Stop-Loss Levels: It calculates and plots three levels of take-profit (1R, 2R, 3R) and stop-loss levels based on the entry price of the trade.
Short Position Example:
Long Position Example:
Visualization: The script visualizes the trend signals, entry points, take-profit levels, and stop-loss levels on the price chart, making it easier for traders to interpret the signals.
Alert System: The indicator includes an alert system that notifies the user when there is a change in trend direction or when a buy/sell signal is generated. The alerts provide essential information such as entry price, take-profit levels, and stop-loss levels.
🔶 Calculations :
Trend Calculation: Trend signals are determined based on the comparison between the current closing price and the upper and lower bounds calculated using the Average True Range (ATR) multiplied by a sensitivity factor. A trend is considered bullish if the closing price is above the upper bound and bearish if it's below the lower bound.
Entry, Stop Loss, and Take Profit Calculation: Entry points for long and short positions are identified when there's a change in trend direction.
Stop-loss levels are calculated as a percentage of the entry price, where users can define the percentage based on their risk tolerance.
Take-profit levels are calculated as multiples of the stop-loss level (1R, 2R, 3R).
Cloud Moving Averages: Simple moving averages (SMAs) are calculated for high and low prices over a specified period to create a "cloud" visualization on the chart.
MACD Clouds: Moving Average Convergence Divergence (MACD) indicator is used to determine the market's momentum and trend direction. Positive and negative clouds are plotted based on the MACD line and its signal line, indicating potential bullish or bearish trends.
Signal Generation: Buy and sell signals are generated based on specific conditions such as RSI, CMO (Chande Momentum Oscillator), and pivot points.
Signals are triggered when certain criteria are met, indicating potential opportunities for entering or exiting trades.
🔶 Disclaimer:
Use at Your Own Risk: Trading involves significant risk, and this script is provided for educational and informational purposes only. It does not guarantee profitable trades, and users should exercise caution and perform their own analysis before making trading decisions.
Parameter Sensitivity: The effectiveness of the indicator may vary depending on the chosen parameters, market conditions, and timeframe. Users are encouraged to backtest the script thoroughly and adjust the parameters according to their trading preferences.
Not Financial Advice: The information provided by this script should not be considered as financial advice. Users are solely responsible for their trading decisions and should consult with a qualified financial advisor if needed.
Backtesting and Validation: Before implementing this indicator in live trading, users are strongly encouraged to conduct rigorous backtesting and validation to assess its performance under various market conditions. Past performance is not indicative of future results, and users should carefully evaluate the effectiveness of the indicator based on their individual trading preferences and risk tolerance.
Crypto MVRV ZScore - Strategy [PresentTrading]█ Introduction and How it is Different
The "Crypto Valuation Extremes: MVRV ZScore - Strategy " represents a cutting-edge approach to cryptocurrency trading, leveraging the Market Value to Realized Value (MVRV) Z-Score. This metric is pivotal for identifying overvalued or undervalued conditions in the crypto market, particularly Bitcoin. It assesses the current market valuation against the realized capitalization, providing insights that are not apparent through conventional analysis.
BTCUSD 6h Long/Short Performance
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█ Strategy, How It Works: Detailed Explanation
The strategy leverages the Market Value to Realized Value (MVRV) Z-Score, specifically designed for cryptocurrencies, with a focus on Bitcoin. This metric is crucial for determining whether Bitcoin is currently undervalued or overvalued compared to its historical 'realized' price. Below is an in-depth explanation of the strategy's components and calculations.
🔶Conceptual Foundation
- Market Capitalization (MC): This represents the total dollar market value of Bitcoin's circulating supply. It is calculated as the current price of Bitcoin multiplied by the number of coins in circulation.
- Realized Capitalization (RC): Unlike MC, which values all coins at the current market price, RC is computed by valuing each coin at the price it was last moved or traded. Essentially, it is a summation of the value of all bitcoins, priced at the time they were last transacted.
- MVRV Ratio: This ratio is derived by dividing the Market Capitalization by the Realized Capitalization (The ratio of MC to RC (MVRV Ratio = MC / RC)). A ratio greater than 1 indicates that the current price is higher than the average price at which all bitcoins were purchased, suggesting potential overvaluation. Conversely, a ratio below 1 suggests undervaluation.
🔶 MVRV Z-Score Calculation
The Z-Score is a statistical measure that indicates the number of standard deviations an element is from the mean. For this strategy, the MVRV Z-Score is calculated as follows:
MVRV Z-Score = (MC - RC) / Standard Deviation of (MC - RC)
This formula quantifies Bitcoin's deviation from its 'normal' valuation range, offering insights into market sentiment and potential price reversals.
🔶 Spread Z-Score for Trading Signals
The strategy refines this approach by calculating a 'spread Z-Score', which adjusts the MVRV Z-Score over a specific period (default: 252 days). This is done to smooth out short-term market volatility and focus on longer-term valuation trends. The spread Z-Score is calculated as follows:
Spread Z-Score = (Market Z-Score - MVVR Ratio - SMA of Spread) / Standard Deviation of Spread
Where:
- SMA of Spread is the simple moving average of the spread over the specified period.
- Spread refers to the difference between the Market Z-Score and the MVRV Ratio.
🔶 Trading Signals
- Long Entry Condition: A long (buy) signal is generated when the spread Z-Score crosses above the long entry threshold, indicating that Bitcoin is potentially undervalued.
- Short Entry Condition: A short (sell) signal is triggered when the spread Z-Score falls below the short entry threshold, suggesting overvaluation.
These conditions are based on the premise that extreme deviations from the mean (as indicated by the Z-Score) are likely to revert to the mean over time, presenting opportunities for strategic entry and exit points.
█ Practical Application
Traders use these signals to make informed decisions about opening or closing positions in the Bitcoin market. By quantifying market valuation extremes, the strategy aims to capitalize on the cyclical nature of price movements, identifying high-probability entry and exit points based on historical valuation norms.
█ Trade Direction
A unique feature of this strategy is its configurable trade direction. Users can specify their preference for engaging in long positions, short positions, or both. This flexibility allows traders to tailor the strategy according to their risk tolerance, market outlook, or trading style, making it adaptable to various market conditions and trader objectives.
█ Usage
To implement this strategy, traders should first adjust the input parameters to align with their trading preferences and risk management practices. These parameters include the trade direction, Z-Score calculation period, and the thresholds for long and short entries. Once configured, the strategy automatically generates trading signals based on the calculated spread Z-Score, providing clear indications for potential entry and exit points.
It is advisable for traders to backtest the strategy under different market conditions to validate its effectiveness and adjust the settings as necessary. Continuous monitoring and adjustment are crucial, as market dynamics evolve over time.
█ Default Settings
- Trade Direction: Both (Allows for both long and short positions)
- Z-Score Calculation Period: 252 days (Approximately one trading year, capturing a comprehensive market cycle)
- Long Entry Threshold: 0.382 (Indicative of moderate undervaluation)
- Short Entry Threshold: -0.382 (Signifies moderate overvaluation)
These default settings are designed to balance sensitivity to market valuation extremes with a pragmatic approach to trade execution. They aim to filter out noise and focus on significant market movements, providing a solid foundation for both new and experienced traders looking to exploit the unique insights offered by the MVRV Z-Score in the cryptocurrency market.
[The_lurker] RSI-MFI-WPR Indicatoris an advanced trading indicator developed for the TradingView platform, which synergistically refers to the insights of three popular technical analysis tools: the Relative Strength Index (RSI), the Money Flow Index (MFI) and the Williams Indicator. Percentage range (WPR). This indicator is precisely designed to help traders identify potential buy and sell opportunities by accurately interpreting market momentum, volume, and price position relative to recent highs and lows.
The primary goal of the RSI-MFI-WPR Indicator is to provide a comprehensive tool that leverages the combined power of RSI, MFI and WPR to detect overbought and oversold conditions, indicating potential market reversal points. This multi-faceted approach aims to provide traders with a more robust framework for making informed decisions, and enhance their trading strategy through multi-indicator analysis.
Explanation of the indicator conditions
The essence of this indicator lies in its strategic conditions that indicate possible entry and exit points:
Oversold Condition (Condition): This is determined when the RSI and MFI are below 30, and the WPR drops below -91, indicating a strong oversold condition in the market. Such a scenario usually indicates a buying opportunity, assuming that the market may rebound from this oversold state.
Divergence Condition (Condition 1): Checks if the MFI exceeds 2.1 times the RSI. This unique case aims to highlight instances where there is a significant inflow of funds into an asset, which is not proportionately reflected in its RSI, which may indicate an upcoming price increase or highlight an unusual market situation for further From the analysis.
Overbought Warning (conditionExit): An exit signal is triggered when both the MFI and RSI exceed 85, and the WPR is above -15. This combination indicates an overbought condition in the market, indicating that the asset may be overvalued and that a price correction or reversal may be imminent, thus indicating a potential selling opportunity or a warning of initiating new positions.
Application and visualization
The RSI-MFI-WPR Indicator not only provides numerical insights but also displays these conditions on a TradingView chart. Through the use of color coding and plotting, it provides traders with an intuitive way to distinguish market conditions, enabling quick and effective decision-making. Incorporating alert conditions ensures that traders are immediately notified of important market events, in line with their strategic trading objectives.
Planning and alerts in “RSI-MFI-WPR Indicator”
Collected alert status
CombinedAlertCondition is a logical statement that combines all individual conditions (Condition, Condition1, Condition Exit, and The_lurkerMFI_oversold) into a single alert trigger. This condition becomes true and triggers an alert if any of the conditions specified for potential trading opportunities or warnings are met. It is designed to provide a comprehensive alert system that informs the trader of any important signal identified by the indicator, including entry and exit signals as well as oversold conditions.
Visual indicators
Background color for oversold condition: The script sets the background color to a specific shade of blue ( with 90% transparency) when the custom MFI indicates an oversold condition (The_lurkerMFI_oversold). This visual signal helps traders quickly recognize periods when the market may be undervalued and potentially poised for a rebound.
Drawing warning and exit signs:
Entry Signals: For Condition and Condition 1, which identify potential entry points, the indicator draws upward pointing triangles below the price bars. These triangles are colored in specific shades to differentiate signals from a fundamental oversold condition and a divergence condition, making it intuitive for traders to recognize the type of signal.
Exit Signals: For an exit condition, which indicates overbought conditions that may indicate an impending price correction, red downward-pointing triangles are drawn above the price bars. This serves as a clear visual warning to consider exiting positions or proceed with caution.
Configure the alarm
The script uses the conditional alert function to create an alert based on the AlertCondition combination. When this condition is met, any of the predefined signals are indicated
Conclusion
In short, the “RSI-MFI-WPR Indicator” stands out as a versatile and dynamic indicator that enriches a trader's toolkit by combining the analytical strengths of RSI, MFI and WPR. By setting clear conditions for entry and exit points from the market, it facilitates a proactive approach to trading, based on a detailed examination of market dynamics. This indicator demonstrates how mixing multiple technical tools can lead to more informed and accurate market analysis, with the aim of elevating the trading experience on Tradingview.
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هو مؤشر تداول متقدم تم تطويره لمنصة TradingView،
والذي يشير بشكل تآزري إلى رؤى ثلاث أدوات تحليل فني شائعة:
1- مؤشر القوة النسبية (RSI)،
2- مؤشر تدفق الأموال (MFI)،
3- مؤشر ويليامز. نطاق النسبة المئوية (WPR).
تم تصميم هذا المؤشر بدقة لمساعدة المتداولين على تحديد فرص الشراء والبيع المحتملة من خلال التفسير الدقيق لزخم السوق وحجمه وموقع السعر بالنسبة إلى الارتفاعات والانخفاضات الأخيرة.
الهدف الأساسي لمؤشر RSI-MFI-WPR هو توفير أداة شاملة تستفيد من القوة المشتركة لمؤشر RSI وMFI وWPR للكشف عن ظروف ذروة الشراء والمبالغة في البيع، مما يشير إلى نقاط انعكاس السوق المحتملة. ويهدف هذا النهج متعدد الأوجه إلى تزويد المتداولين بإطار أكثر قوة لاتخاذ قرارات مستنيرة، وتعزيز استراتيجية التداول الخاصة بهم من خلال تحليل متعدد المؤشرات.
شرح شروط المؤشر
يكمن جوهر هذا المؤشر في ظروفه الإستراتيجية التي تشير إلى نقاط الدخول والخروج المحتملة:
حالة ذروة البيع (الحالة): يتم تحديد ذلك عندما يكون مؤشر القوة النسبية RSI وMFI أقل من 30، وينخفض WPR إلى أقل من -92، مما يشير إلى حالة ذروة بيع قوية في السوق. يشير مثل هذا السيناريو عادةً إلى فرصة شراء، على افتراض أن السوق قد ينتعش من حالة ذروة البيع هذه.
شرط الاختلاف (الشرط 1): يتحقق مما إذا كانت السيولة تتجاوز 2.1 مرة مؤشر القوة النسبية. تهدف هذه الحالة الفريدة إلى تسليط الضوء على الحالات التي يوجد فيها تدفق كبير للأموال إلى أحد الأصول، وهو ما لا ينعكس بشكل متناسب في مؤشر القوة النسبية الخاص به، مما قد يشير إلى زيادة قادمة في الأسعار أو يسلط الضوء على وضع غير عادي في السوق لمزيد من التحليل.
تحذير ذروة الشراء (conditionExit): يتم إطلاق إشارة خروج عندما يتجاوز مؤشر MFI ومؤشر القوة النسبية 85، ويكون WPR أعلى من -15. يشير هذا المزيج إلى حالة ذروة الشراء في السوق، مما يشير إلى أن الأصل قد يكون مبالغًا في قيمته وأن تصحيح السعر أو انعكاسه قد يكون وشيكًا، مما يشير إلى فرصة بيع محتملة أو تحذير ببدء مراكز جديدة.
التطبيق والتصور
لا يوفر مؤشر RSI-MFI-WPR رؤى رقمية فحسب، بل يعرض أيضًا هذه الشروط على مخطط TradingView. من خلال استخدام الترميز اللوني والتخطيط، فإنه يوفر للمتداولين طريقة بديهية للتمييز بين ظروف السوق، مما يتيح اتخاذ قرارات سريعة وفعالة. يضمن دمج شروط التنبيه إخطار المتداولين على الفور بأحداث السوق المهمة، بما يتماشى مع أهدافهم التجارية الإستراتيجية.
التخطيط والتنبيهات في مؤشر RSI-MFI-WPR
حالة التنبيه التي تم جمعها ( CombinedAlertCondition ) عبارة منطقية تجمع كل الشروط الفردية
Condition، Condition1، Condition Exit، وThe_lurkerMFI_oversold في مشغل تنبيه واحد.
ليصبح هذا الشرط صحيحًا ويطلق تنبيهًا في حالة استيفاء أي من الشروط المحددة لفرص التداول المحتملة أو التحذيرات. وهو مصمم لتوفير نظام تنبيه شامل يُعلم المتداول بأي إشارة مهمة يحددها المؤشر، بما في ذلك إشارات الدخول والخروج بالإضافة إلى ظروف ذروة البيع.
المؤشرات البصرية
لون الخلفية لحالة ذروة البيع: يقوم البرنامج النصي بتعيين لون الخلفية إلى ظل معين من اللون الأزرق (بشفافية 90٪) عندما تشير مؤسسة التمويل الأصغر المخصصة إلى حالة ذروة البيع (The_lurkerMFI_oversold). تساعد هذه الإشارة المرئية المتداولين على التعرف بسرعة على الفترات التي قد تكون فيها السوق مقومة بأقل من قيمتها الحقيقية ومن المحتمل أن تكون مستعدة للانتعاش.
رسم علامات التحذير والخروج:
إشارات الدخول: بالنسبة للحالة والحالة 1، التي تحدد نقاط الدخول المحتملة، يرسم المؤشر مثلثات تشير إلى الأعلى أسفل أشرطة السعر. يتم تلوين هذه المثلثات بظلال محددة لتمييز الإشارات عن حالة ذروة البيع الأساسية وحالة التباعد، مما يجعل من السهل على المتداولين التعرف على نوع الإشارة.
إشارات الخروج: بالنسبة لحالة الخروج، التي تشير إلى ظروف ذروة الشراء التي قد تشير إلى تصحيح وشيك للسعر، يتم رسم مثلثات حمراء تشير إلى الأسفل فوق أشرطة السعر. يعد هذا بمثابة تحذير مرئي واضح للنظر في الخروج من المواقف أو المضي قدمًا بحذر.
تكوين المنبه
يستخدم البرنامج النصي وظيفة التنبيه الشرطي لإنشاء تنبيه بناءً على مجموعة AlertCondition. عند استيفاء هذا الشرط، تتم الإشارة إلى أي من الإشارات المحددة مسبقًا
خاتمة
باختصار، يبرز "مؤشر RSI-MFI-WPR" كمؤشر متعدد الاستخدامات وديناميكي يثري مجموعة أدوات المتداول من خلال الجمع بين نقاط القوة التحليلية لـ RSI وMFI وWPR. ومن خلال وضع شروط واضحة لنقاط الدخول والخروج من السوق، فإنه يسهل اتباع نهج استباقي للتداول، بناءً على فحص تفصيلي لديناميكيات السوق. يوضح هذا المؤشر كيف أن الجمع بين أدوات فنية متعددة يمكن أن يؤدي إلى تحليل سوق أكثر استنارة ودقة، بهدف رفع مستوى تجربة التداول على Tradingview.
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باختصار :
1- ظهور المثلث الاصفر يعني تواجد سيولة كبيره ( مفيد جدا لعملات البومب ) .
2- ظهور المثلث الأبيض يعني وصول الى مستويات تشبع البيع وهي فرصة ممتازه للشراء ( منطقة دخول ).
3- ظهور خط افقي يعني قرب عكس الاتجاه الى أعلى ( منطقة دخول ) .
4- ظهور مثلث أحمر يعني قرب عكس الاتجاه الى أسفل ( منطقة خروج ) .
5- التنبيه يعمل على جميع ما ذكر أعلاه في تنبيه واحد حتى تسهل المراقبة .
6- أفضل فواصل الاستخدام ( 4 ساعات ، 12 ساعه ، يوم ) .
RSI MFI WPR Combo [The_lurker]The "RSI MFI WPR Combo" is a sophisticated trading indicator developed for the TradingView platform, which synergistically combines the insights of three renowned technical analysis tools: the Relative Strength Index (RSI), the Money Flow Index (MFI), and the Williams Percent Range (WPR). This indicator is meticulously designed to assist traders in identifying potential buying and selling opportunities through the nuanced interpretation of market momentum, volume, and price position relative to recent highs and lows.
Purpose
The primary objective of the "RSI MFI WPR Combo" indicator is to offer a comprehensive tool that leverages the combined power of RSI, MFI, and WPR to detect overbought and oversold conditions, signaling potential reversal points in the market. This multifaceted approach aims to provide traders with a more robust framework for making informed decisions, enhancing their trading strategy with a multi-indicator analysis.
Indicator Conditions Explained
The core of this indicator lies in its strategic conditions that signal potential entry and exit points:
Oversold Condition (condition): This is identified when the MFI and RSI are both below 30, and the WPR falls below -91, suggesting a strong oversold market state. Such a scenario typically indicates a buying opportunity, assuming the market might rebound from this excessively sold condition.
Divergence Condition (condition1): It checks if the MFI exceeds 1.93 times the RSI. This unique condition aims to spotlight instances where there's a significant influx of money into an asset, which is not proportionately reflected in its RSI, potentially signaling an upcoming price increase or highlighting an unusual market situation for further analysis.
Overbought Warning (conditionExit): The exit signal is triggered when both the MFI and RSI exceed 85, and the WPR is above -15. This combination is indicative of an overbought market condition, suggesting the asset might be overvalued and a price correction or reversal could be imminent, hence signaling a potential selling opportunity or a caution against initiating new positions.
Application and Visualization
The "RSI MFI WPR Combo" not only provides numerical insights but also visualizes these conditions on the TradingView chart. By employing color-coding and plotting shapes, it offers traders an intuitive way to discern market states, enabling quick and effective decision-making. The integration of alert conditions ensures that traders are promptly notified of significant market events, aligning with their strategic trading objectives.
Plotting and Alerts in "RSI MFI WPR Combo"
Combined Alert Condition
The combinedAlertCondition is a logical statement that consolidates all individual conditions (condition, condition1, conditionExit, and The_lurkerMFI_oversold) into a single alert trigger. This condition becomes true and triggers an alert if any of the specified conditions for potential trading opportunities or warnings are met. It's designed to provide a comprehensive alert system that notifies the trader of any significant signal identified by the indicator, encompassing both entry and exit signals as well as oversold conditions.
Visual Indicators
Background Color for Oversold Condition: The script sets the background color to a specific shade of blue (#13c2e9 with 90% transparency) when the custom MFI indicates an oversold condition (The_lurkerMFI_oversold). This visual cue helps traders quickly identify periods when the market might be undervalued and potentially poised for a rebound.
Plotting Warning and Exit Signals:
Entry Signals: For the condition and condition1, which identify potential entry points, the indicator plots upward-pointing triangles below the price bars. These triangles are colored in specific shades to differentiate between the signals from the basic oversold condition and the divergence condition, making it visually intuitive for traders to recognize the signal type.
Exit Signals: For the conditionExit, signaling overbought conditions that might suggest an imminent price correction, downward-pointing red triangles are plotted above the price bars. This acts as a clear visual warning to consider exiting positions or to proceed with caution.
Alert Configuration
The script utilizes the alertcondition function to create an alert based on the combinedAlertCondition. When this condition is met, indicating any of the predefined signa
Conclusion
In summary, the "RSI MFI WPR Combo" stands out as a versatile and dynamic indicator that enriches a trader's toolkit by combining the analytical strengths of RSI, MFI, and WPR. By delineating clear conditions for market entry and exit points, it facilitates a proactive approach to trading, grounded in a detailed examination of market dynamics. This indicator exemplifies how blending multiple technical tools can lead to a more informed and nuanced market analysis, aiming to elevate the trading experience on the TradingView platform
Four WMA Strategy with TP and SLBasically I read a research paper on how they used different moving averages for long entries and short entries, and it kind of dawned on me that I always used the same one for long entry or exit, or even swing trading. So I smashed this together to see what would happen.
The strategy combines the use of four different WMAs for identifying trade entry points, along with a predefined take profit (TP) and stop loss (SL) for risk management. Here's a detailed description of its features and how it operates:
Main Features
1. **WMAs as the Core Indicator**:
- The strategy uses four WMAs with different lengths. Two WMAs (`longM1` and `longM2`) are used for long entry signals, and the other two (`shortM1` and `shortM2`) for short entry signals.
- The lengths of these WMAs are adjustable through input parameters.
2. **Trade Entry Conditions**:
- A long entry is signaled when the shorter WMA crosses under the longer WMA .
- Conversely, a short entry is signaled when the shorter WMA crosses under the longer WMA.
3. **Take Profit and Stop Loss**:
- The strategy includes a take profit and stop loss mechanism.
- The TP and SL levels are set as a percentage of the entry price, with the percentage values being adjustable through input parameters.
4. **Visual Representation**:
- The WMAs are plotted on the chart for visual aid, each with a distinct color for easy identification.
How It Works
- The strategy continuously monitors the crossing of WMAs to detect potential entry points for long and short positions.
- Upon detecting a long or short condition, it automatically enters a trade and sets the corresponding TP and SL levels based on the current price and the specified percentages.
- The strategy then actively manages the trade, exiting the position when either the TP or SL level is reached.
Drawbacks
- **Overreliance on WMAs**: The strategy heavily relies on WMAs for trade signals. While WMAs are useful for identifying trends, they might not always provide timely entry and exit signals.
- **Market Conditions**: It may not perform well in highly volatile or sideways markets where WMA crossovers could lead to false signals.
- **Risk Management**: The fixed percentage for TP and SL might not be suitable for all market conditions. Traders might need to adjust these values frequently based on market volatility and their risk tolerance.
Apparently I need to emphasize to use brains when using indicators and setting them up to achieve the results you can or want. Also risk of 12% is considered very high so I lowered the numbers to 5%, which tanked the profits, try adjusting them on your own. Check the properties settings for more info on comission and slippage.
Conclusion
The "Four WMA Strategy with TP and SL" is suitable for traders who prefer a moving average-based approach to trading, combined with a straightforward mechanism for risk management through take profit and stop loss. However, like all strategies, it should be used with an understanding of its limitations and ideally tested thoroughly in various market conditions before applying it to live trading.
simpletradeLibrary "simpletrade"
Library with Simple Trade types and tracking mechanism
method evaluate(this)
Evaluate current trade and update status
Namespace types: SimpleTrade
Parameters:
this (SimpleTrade) : SimpleTrade object that need to be evaluated
Returns: current SimpleTrade object
method erase(this)
Erase SimpleTrade drawings
Namespace types: SimpleTrade
Parameters:
this (SimpleTrade) : SimpleTrade object that needs to be erased
Returns: void
method draw(this, offset, gap)
Draw SimpleTrade drawings
Namespace types: SimpleTrade
Parameters:
this (SimpleTrade) : SimpleTrade object that needs to be drawn
offset (int) : offset distance at which the drawing needs to be drawn.
gap (int) : gap between start and end of the Simple trade drawings
Returns: updated offset
TradeDrawing
Object containing Trade drawings
Fields:
entryToStop (series box) : box showing entry to stop range
entryToTarget (series box) : box showing entry to target range
maxGain (series box) : box highlighting max gain of the Trade
maxLoss (series box) : box highlighting max lowss of the Trade
invalidationLine (series line) : line displaying trade invalidation price
invalidationLabel (series label) : label displaying trade invalidation price
stopLabel (series label) : label displaying trade stop price
entryLabel (series label) : label displaying trade entry price
targetLabel (series label) : label displaying trade target price
patternLabel (series label) : label displaying trade pattern details
SimpleTrade
Object containing Simple trade details for tracking
Fields:
id (series int) : Unique trade id
pid (series int) : parent id for trade. Multiple trades can have single parent id
dir (series int) : trade direction
tradeName (series string) : Trade name or description
tradeColor (series color) : color in which the trade needs to be drawn
entry (series float) : trade entry price
stop (series float) : trade stop price
invalidation (series float) : trade invalidation price
target (series float) : trade target price
maxGainPrice (series float) : price at which the trade attained max gain
maxLossPrice (series float) : price at which the trade attained max loss
drawing (TradeDrawing) : TradeDrawing object contianing drawing items
status (series int) : current status of the trade
maxStatus (series int) : max status attained by the trade
Session Sweeps [LuxAlgo]The Session Sweeps indicator combines ICT-based features for a complete trading methodology involving market sessions, market structure, and fair value gaps to find optimal entry conditions for trading price action.
Traders frequently tend to place stop/limit orders at the high and low points of major trading sessions such as Asian (Tokyo), European (London), and North American (New York), resulting in the establishment of liquidity pools at those particular levels. The Session Sweeps indicator is crafted to recognize and underscore occurrences of session sweeps or liquidity sweeps during these major trading sessions.
🔶 USAGE
Default settings utilize major forex trading sessions, yet users can select their preferred opening and closing times, rename the sessions, or adjust the colors. It's important to note that the specified times for each session align with the respective local timezones: Asian (Tokyo) UTC+9, European (London) UTC, and North American (New York) UTC-5.
If the price briefly crosses either the highest or lowest point of a market session. These movements, aiming at triggering stop losses, suggest potential shifts in the market direction. Detecting such movements is the fundamental purpose and core functionality of the script.
🔹Market Structure Shifts
A Market Structure Shift refers to a change in market direction, either from an uptrend to a downtrend or vice versa. A part of a common entry model when using session sweeps is waiting for the formation of a CHoCH after a session sweep.
🔹Fair Value Gaps
A Fair Value Gap (FVG) holds particular appeal for price action traders, emerging when there are inefficiencies or imbalances in the market, often a result of uneven buying and selling activity. The underlying concept of FVGs is that the market tends to revisit these inefficiencies before resuming its trajectory in alignment with the initial impulsive move.
After the formation of a CHoCH traders can enter a position when the price enters the area of a Fair Value Gap (FVG).
🔹Setup Examples
This entry setup is commonly used by ICT traders and is shared for informational & educational purposes only.
Long Positions (5-Minute Timeframe):
Wait for the previous session's low to be swept.
Look for a Bullish Choch.
Find a Bullish FVG formed by or before the Choch.
Entry Point: At the FVG.
Take Profit (TP): At the session high or aim for a 1:2 Risk-Reward Ratio.
Stop Loss (SL): At the session low or nearest Swing Low.
Take partial profits at intermediate swings, but don’t shift SL prematurely.
Short Positions (5-Minute Timeframe):
Wait for the previous session's high to be swept.
Look for a Bearish Choch.
Find a FVG formed by or before the Choch.
Entry Point: At the FVG.
Take Profit (TP): At the previous session's low or aim for a 1:2 RR.
Stop Loss (SL): At the session high or nearest Swing High.
Take partial profits at intermediate swings, but don’t shift SL prematurely.
🔶 SETTINGS
🔹Session Sweeps
Buyside Sweep Zones, Color, and Margin: toggles the visibility of bullside sweep zones, customizes the associated color, and sets the margin value defining the range of a bullside sweep zone.
Sellside Sweep Zones, Color, and Margin: toggles the visibility of sell-side sweep zones, customizes the associated color, and sets the margin value defining the range of a sell-side sweep zone.
Sweep Margin Length: specifies the maximum allowed length of a sweep zone invalidation, the length over which the price slightly invalidated the margin range.
Detect Sweeps Once per Session: if enabled will detect only once a sweep zone within a session.
Hide Fake Sweep Zones, and Color: controls the visibility and color of the fake sweep zones.
🔹Sessions
Session (Asia, London, New York AM, and New York PM), Start Time, and End Time: enables or disables the visibility of the named market session range, and customization of the session hours.
Color: color customization option of the named session.
Extend Max/Min: extends the highest and lowest price levels of the named session until the end of the next enabled session. This option is recommended to be enabled when sweep zone detection is activated to observe the relationship between the sweep zone and previous session extreme levels.
Extend Mid: extends the mean price levels of the named session until the end of the next enabled session. The extended line may serve as potential support and resistance levels.
Fill: enables/disables background coloring of the named session.
New York DST | London DST: enabling this option initiates Daylight Saving Time (DST) for New York or London. Note: Daylight Saving Time is not applied to the Asian (Tokyo) session.
Sessions Extreme Lines | Sessions Names: toggles the visibility of the highest and lowest price levels, as well as the names, for all market sessions.
Session Lines Width: sets the width of the lines for all sessions.
Session Fill Transparency: sets the background color transparency of the range for all sessions.
🔹Market Structure Shifts
Market Structure Shifts: toggles the visibility of market structure shifts, also known as change of character (CHoCH).
Detection Length: specifies the detection length.
Market Structure Shifts; Bull & Bear: color customization options.
🔹Fair Value Gaps
Fair Value Gaps: toggles the visibility of the fair value gaps.
Fair Value Gap Width Filter: specifies the filtering multiplier; additional details can be found in the tooltip of the respective input option.
Bullish & Bearish Imbalance: color customization options.
🔹Sessions Tabular View
Sessions Tabular View: toggles the visibility of the tabular view of the sessions, displaying date &time, status, and countdown counter.
Hide if not Forex Market Instrument: checks the market and automatically enables/disables the option based on the market instrument.
Table Text Size & Position: size and placement customization options
🔶 LIMITATIONS
Please be aware that fair value gap filtering cannot be applied to the initial 144 candles (with a fixed-length ATR) as the ATR value necessary for filtering won't be available during this period.
🔶 RELATED SCRIPTS
Buyside-Sellside-Liquidity
Sessions
Liquidity-Voids-FVG
Thank you to our community for the recommendation of this script. To explore additional conceptual scripts and related content, we invite you to visit >>> LuxAlgo-Scripts .
Turtle Trader StrategyTurtle Trader Strategy :
Introduction :
This strategy is based on the well known « Turtle Trader Strategy », that has proven itself over the years. It sends long and short signals with pyramid orders of up to 5, meaning that the strategy can trigger up to 5 orders in the same direction. Good risk and money management.
It's important to note that the strategy combines 2 systems working together (S1 and S2). Let’s describe the specific features of this strategy.
1/ Position size :
Position size is very important for turtle traders to manage risk properly. This position sizing strategy adapts to market volatility and to account (gains and losses). It’s based on ATR (Average True Range) which can also be called « N ». Its length is per default 20.
ATR(20) = (previous_atr(20)*19 + actual_true_range)/20
The number of units to buy is :
Unit = 1% * account/(ATR(20)*dollar_per_point)
where account is the actual account value and dollar_per_point is the variation in dollar of the asset with a 1 point move.
Depending on your risk aversion, you can increase the percentage of your account, but turtle traders default to 1%. If you trade contracts, units must be rounded down by default.
There is also an additional rule to reduce the risk if the value of the account falls below the initial capital : in this case and only in this case, account in the unit formula must be replace by :
account = actual_account*actual_account/initial capital
2/ Open a position :
2 systems are working together :
System 1 : Entering a new 20 day breakout
System 2 : Entering a new 55 day breakout
A breakout is a new high or new low. If it’s a new high, we open long position and vice versa if it’s a new low we enter in short position.
We add an additional rule :
System 1 : Breakout is ignored if last long/short position was a winner
System 2 : All signals are taken
This additional rule allows the trader to be in the major trends if the system 1 signal has been skipped. If a signal for system 1 has been skipped, and next candle is also a new 20 day breakout, S1 doesn’t give a signal. We have to wait S2 signal or wait for a candle that doesn’t make a new breakout to reactivate S1.
3/ Pyramid orders :
Turtle Strategy allows us to add extra units to the position if the price moves in our favor. I've configured the strategy to allow up to 5 orders to be added in the same direction. So if the price varies from 0.5*ATR(20) , we add units with the position size formula. Note that the value of account will be replaced by "remaining_account", i.e. the cash remaining in our account after subtracting the value of open positions.
4/ Stop Loss :
We set a stop loss at 1.5*ATR(20) below the entry price for longs and above the entry price for shorts. If pyramid units are added, the stop is increased/decreased by 0.5*ATR(20). Note that if SL is configured for a loss of more than 10%, we set the SL to 10% for the first entry order to avoid big losses. This configuration does not work for pyramid orders as SL moves by 0.5*ATR(20).
5/ Exit signals :
System 1 :
Exit long on a 10 day low
Exit short on a 10 day high
System 2 :
Exit long on a 20 day low
Exit short on a 20 day high
6/ What types of orders are placed ?
To enter in a position, stop orders are placed meaning that we place orders that will be automatically triggered by the signal at the exact breakout price. Stop loss and exit signals are also stop orders. Pyramid orders are market orders which will be triggered at the opening of the next candle to avoid repainting.
PARAMETERS :
Risk % of capital : Percentage used in the position size formula. Default is 1%
ATR period : ATR length used to calculate ATR. Default is 20
Stop ATR : Parameters used to fix stop loss. Default is 1.5 meaning that stop loss will be set at : buy_price - 1.5*ATR(20) for long and buy_price + 1.5*ATR(20) for short. Turtle traders default is 2 but 1.5 is better for cryptocurrency as there is a huge volatility.
S1 Long : System 1 breakout length for long. Default is 20
S2 Long : System 2 breakout length for long. Default is 55
S1 Long Exit : System 1 breakout length to exit long. Default is 10
S2 Long Exit : System 2 breakout length to exit long. Default is 20
S1 Short : System 1 breakout length for short. Default is 15
S2 Short : System 2 breakout length for short. Default is 55
S1 Short Exit : System 1 breakout length to exit short. Default is 7
S2 Short Exit : System 2 breakout length to exit short. Default is 20
Initial capital : $1000
Fees : Interactive Broker fees apply to this strategy. They are set at 0.18% of the trade value.
Slippage : 3 ticks or $0.03 per trade. Corresponds to the latency time between the moment the signal is received and the moment the order is executed by the broker.
Pyramiding : Number of orders that can be passed in the same direction. Default is 5.
Important : Turtle traders don't trade crypto. For this specific asset type, I modify some parameters such as SL and Short S1 in order to maximize return while limiting drawdown. This strategy is the most optimal on BINANCE:BTCUSD in 1D timeframe with the parameters set per default. If you want to use this strategy for a different crypto please adapt parameters.
NOTE :
It's important to note that the first entry order (long or short) will be the largest. Subsequent pyramid orders will have fewer units than the first order. We've set a maximum SL for the first order of 10%, meaning that you won't lose more than 10% of the value of your first order. However, it is possible to lose more on your pyramid orders, as the SL is increased/decreased by 0.5*ATR(20), which does not secure a loss of more than 10% on your pyramid orders. The risk remains well managed because the value of these orders is less than the value of the first order. Remain vigilant to this small detail and adjust your risk according to your risk aversion.
Enjoy the strategy and don’t forget to take the trade :)
Pivot Percentile Trend - Strategy [presentTrading]
█ Introduction and How it is Different
The "Pivot Percentile Trend - Strategy" from PresentTrading represents a paradigm shift in technical trading strategies. What sets this strategy apart is its innovative use of pivot percentiles, a method that goes beyond traditional indicator-based analyses. Unlike standard strategies that might depend on single-dimensional signals, this approach takes a multi-layered view of market movements, blending percentile calculations with SuperTrend indicators for a more nuanced and dynamic market analysis.
This strategy stands out for its ability to process multiple data points across various timeframes and pivot lengths, thereby capturing a broader and more detailed picture of market trends. It's not just about following the price; it's about understanding its position in the context of recent historical highs and lows, offering a more profound insight into potential market movements.
BTC 6h L/S
Where traditional methods might react to market changes, the Pivot Percentile Trend strategy anticipates them, using a calculated approach to identify trend strengths and weaknesses. This foresight gives traders a significant advantage, allowing for more strategic decision-making and potentially increasing the chances of successful trades.
In essence, this strategy introduces a more comprehensive and proactive approach to trading, harnessing the power of advanced percentile calculations combined with the robustness of SuperTrend indicators. It's a strategy designed for traders who seek a deeper understanding of market dynamics and a more calculated approach to their trading decisions.
Local picture
█ Strategy, How It Works: Detailed Explanation
🔶 Percentile Calculations
- The strategy employs percentile calculations to assess the relative position of current market prices against historical data.
- For a set of lengths (e.g., `length * 1`, `length * 2`, up to `length * 7`), it calculates the 75th percentile for high values (`percentilesHigh`) and the 25th percentile for low values (`percentilesLow`).
- These percentiles provide a sense of where the current price stands compared to recent price ranges.
Length - 10
Length - 15
🔶 SuperTrend Indicator
- The SuperTrend indicator is a key component, providing trend direction signals.
- It uses the `currentTrendValue`, derived from the difference between bull and bear strengths calculated from the percentile data.
* used the Supertrend toolkit by @EliCobra
🔶 Trend Strength Counts
- The strategy calculates counts of bullish and bearish indicators based on comparisons between the current high and low against high and low percentiles.
- `countBull` and `countBear` track the number of times the current high is above the high percentiles and the current low is below the low percentiles, respectively.
- Weak bullish (`weakBullCount`) and bearish (`weakBearCount`) counts are also determined by how often the current lows and highs fall within the percentile range.
*The idea of this strength counts mainly comes from 'Trend Strength Over Time' @federalTacos5392b
🔶 Trend Value Calculation
- The `currentTrendValue` is a crucial metric, computed as `bullStrength - bearStrength`.
- It indicates the market's trend direction, where a positive value suggests a bullish trend and a negative value indicates a bearish trend.
🔶 Trade Entry and Exit Logic
- The entry points for trades are determined by the combination of the trend value and the direction indicated by the SuperTrend indicator.
- For a long entry (`shouldEnterLong`), the `currentTrendValue` must be positive and the SuperTrend indicator should show a downtrend.
- Conversely, for a short entry (`shouldEnterShort`), the `currentTrendValue` should be negative with the SuperTrend indicating an uptrend.
- The strategy closes positions when these conditions reverse.
█ Trade Direction
The strategy is versatile, allowing traders to choose their preferred trading direction: long, short, or both. This flexibility enables traders to tailor their strategies to their market outlook and risk appetite.
█ Default Settings and Customization
1. Trade Direction: Selectable as Long, Short, or Both, affecting the type of trades executed.
2. Indicator Source: Pivot Percentile Calculations, key for identifying market trends and reversals.
3. Lengths for Percentile Calculation: Various configurable lengths, influencing the scope of trend analysis.
4. SuperTrend Settings: ATR Length 20, Multiplier 18, affecting indicator sensitivity and trend detection.
5. Style Options: Custom colors for bullish (green) and bearish (red) trends, aiding visual interpretation.
6. Additional Settings: Includes contrarian signals and UI enhancements, offering strategic and visual flexibility.
ICT Handle CounterThe "Handle Counter" is a unique TradingView script designed for ease and effectiveness in tracking price movements. It's particularly useful for traders who follow ICT methodologies. Users manually input their trade entry price, and the script then dynamically calculates and displays the number of Handles, or price changes, in a clear box above the latest candle on the chart. This real-time updating feature provides traders with crucial, current data on price movement, aiding in informed decision-making and a better understanding of market dynamics.
The "Handle Counter" script operates in the following way:
User Input: It starts by allowing you to input your trade's entry price. This is the price level from which the script will measure price movement.
Handles Calculation: The script calculates "Handles," which represent the price difference from your entry point to the current market price. This is done using a mathematical formula that finds the absolute value of this difference.
Display Mechanism: The calculated Handles are then displayed in a box, which is positioned above the latest candle on your trading chart. This box updates in real-time, giving you an ongoing view of how many Handles (price changes) have occurred since your entry point.
This script is designed to be straightforward and easy to use, providing clear, real-time information.
How to use:
Add the Indicator.
Open the Menu by clicking on the 'Settings' icon.
Navigate to the 'Inputs' tab and enter your entry price.
Click 'OK.' The indicator should immediately place a box above the latest candle, showing the current handles.
Additional Settings
Change Color of the Box
Change Color of the Font
Contrarian Donchian Channel Indicator with Alerts and VisualsTitle: Contrarian Donchian Channel Indicator with Alerts and Visuals
Description:
The Contrarian Donchian Channel Indicator is designed for traders who seek to implement a contrarian approach using the time-tested Donchian Channel method. This indicator not only signals potential entry points but also enhances trading visualization by marking hypothetical stop loss and take profit levels.
Key Features:
Donchian Channel Signals: Utilizes the Donchian Channel to identify potential reversal points in the market. The indicator generates buy signals when the price touches or breaches the lower band, suggesting a potential upward reversal. Conversely, sell signals are generated when the price touches or exceeds the upper band, indicating a possible downward reversal.
Pause After Stop Loss: Incorporates a unique feature that pauses signal generation for a user-defined number of candles after a stop loss is hit. This helps in avoiding immediate re-entries in volatile market conditions.
Stop Loss and Take Profit Visualization: For each signal, the indicator draws dashed lines on the chart to represent the hypothetical stop loss (red) and take profit (green) levels. These levels are calculated based on user-input percentages for stop loss and the risk-reward ratio.
Alerts for Entry Signals: Traders can set up alerts for buy and sell signals, allowing them to stay informed of potential trading opportunities.
How to Use:
Entry Signal: A triangle symbol (green for buy, red for sell) accompanied by an alert (if set) indicates a potential entry point.
Stop Loss and Take Profit Lines: Use the drawn lines as a guide for setting stop loss and take profit levels if the signal aligns with your trading strategy.
Pause Feature: After a stop loss is triggered, observe the pause period before considering new signals to avoid overtrading in choppy markets.
Suitable For:
Traders who prefer a contrarian approach.
Those who use Donchian Channels as part of their trading strategy.
Traders who appreciate visual aids for better decision-making.
Customization Options:
Length of the Donchian Channel.
Risk/Reward Ratio.
Stop Loss Percentage.
Pause duration after a stop loss is hit.
DISCLAIMER:
This indicator is intended for educational and informational purposes only and should not be construed as financial advice. Trade responsibly and always consider your risk tolerance and investment objectives.
Backtesting ModuleDo you often find yourself creating new 'strategy()' scripts for each trading system? Are you unable to focus on generating new systems due to fatigue and time loss incurred in the process? Here's a potential solution: the 'Backtesting Module' :)
INTRODUCTION
Every trading system is based on four basic conditions: long entry, long exit, short entry and short exit (which are typically defined as boolean series in Pine Script).
If you can define the conditions generated by your trading system as a series of integers, it becomes possible to use these variables in different scripts in efficient ways. (Pine Script is a convenient language that allows you to use the integer output of one indicator as a source in another.)
The 'Backtesting Module' is a dynamic strategy script designed to adapt to your signals. It boasts two notable features:
⮞ It produces a backtest report using the entry and exit variables you define.
⮞ It not only serves for system testing but also to combine independent signals into a single system. (This functionality enables to create complex strategies and report on their success!)
The module tests Golden and Death cross signals by default, when you enter your own conditions the default signals will be neutralized. The methodology is described below.
PREPARATION
There are three simple steps to connect your own indicator to the Module.
STEP 1
Firstly, you must define entry and exit variables in your own script. Let's elucidate it with a straightforward example. Consider a system generating long and short signals based on the intersections of two moving averages. Consequently, our conditions would be as follows:
// Signals
long = ta.crossover(ta.sma(close, 14), ta.sma(close, 28))
short = ta.crossunder(ta.sma(close, 14), ta.sma(close, 28))
Now, the question is: How can we convert boolean variables into integer variables? The answer is conditional ternary block, defined as follows:
// Entry & Exit
long_entry = long ? 1 : 0
long_exit = short ? 1 : 0
short_entry = short ? 1 : 0
short_exit = long ? 1 : 0
The mechanics of the Entry & Exit variables are simple. The variable takes on a value of 1 when your trading system generates the signal and if your system does not produce any signal, variable returns 0. In this example, you see how exit signals can be generated in a trading system that only contains entry signals. If you have a system with original exit signals, you can also use them directly. (Please mind the NOTES section below).
STEP 2
To utilize the Entry & Exit variables as source in another script, they must be plotted on the chart. Therefore, the final detail to include in the script containing your trading system would be as follows:
// Plot The Output
plot(long_entry, "Long Entry", display=display.data_window, editable=false)
plot(long_exit, "Long Exit", display=display.data_window, editable=false)
plot(short_entry, "Short Entry", display=display.data_window, editable=false)
plot(short_exit, "Short Exit", display=display.data_window, editable=false)
STEP 3
Now, we are ready to test the system! Load the Backtesting Module indicator onto the chart along with your trading system/indicator. Then set the outputs of your system (Long Entry, Long Exit, Short Entry, Short Exit) as source in the module. That's it.
FEATURES & ORIGINALITY
⮞ Primarily, this script has been created to provide you with an easy and practical method when testing your trading system.
⮞ I thought it might be nice to visualize a few useful results. The Backtesting Module provides insights into the outcomes of both long and short trades by computing the number of trades and the success percentage.
⮞ Through the 'Trade' parameter, users can specify the market direction in which the indicator is permitted to initiate positions.
⮞ Users have the flexibility to define the date range for the test.
⮞ There are optional features allowing users to plot entry prices on the chart and customize bar colors.
⮞ The report and the test date range are presented in a table on the chart screen. The entry price can be monitored in the data window.
⮞ Note that results are based on realized returns, and the open trade is not included in the displayed results. (The only exception is the 'Unrealized PNL' result in the table.)
STRATEGY SETTINGS
The default parameters are as follows:
⮞ Initial Balance : 10000 (in units of currency)
⮞ Quantity : 10% of equity
⮞ Commission : 0.04%
⮞ Slippage : 0
⮞ Dataset : All bars in the chart
For a realistic backtest result, you should size trades to only risk sustainable amounts of equity. Do not risk more than 5-10% on a trade. And ALWAYS configure your commission and slippage parameters according to pessimistic scenarios!
NOTES
⮞ This script is intended solely for development purposes. And it'll will be available for all the indicators I publish.
⮞ In this version of the module, all order types are designed as market orders. The exit size is the sum of the entry size.
⮞ As your trading conditions grow more intricate, you might need to define the outputs of your system in alternative ways. The method outlined in this description is tailored for straightforward signal structures.
⮞ Additionally, depending on the structure of your trading system, the backtest module may require further development. This encompasses stop-loss, take-profit, specific exit orders, quantity, margin and risk management calculations. I am considering releasing improvements that consider these options in future versions.
⮞ An example of how complex trading signals can be generated is the OTT Collection. If you're interested in seeing how the signals are constructed, you can use the link below.
THANKS
Special thanks to PineCoders for their valuable moderation efforts.
I hope this will be a useful example for the TradingView community...
DISCLAIMER
This is just an indicator, nothing more. It is provided for informational and educational purposes exclusively. The utilization of this script does not constitute professional or financial advice. The user solely bears the responsibility for risks associated with script usage. Do not forget to manage your risk. And trade as safely as possible. Best of luck!
Donchian Quest Research// =================================
Trend following strategy.
// =================================
Strategy uses two channels. One channel - for opening trades. Second channel - for closing.
Channel is similar to Donchian channel, but uses Close prices (not High/Low). That helps don't react to wicks of volatile candles (“stop hunting”). In most cases openings occur earlier than in Donchian channel. Closings occur only for real breakout.
// =================================
Strategy waits for beginning of trend - when price breakout of channel. Default length of both channels = 50 candles.
Conditions of trading:
- Open Long: If last Close = max Close for 50 closes.
- Close Long: If last Close = min Close for 50 closes.
- Open Short: If last Close = min Close for 50 closes.
- Close Short: If last Close = max Close for 50 closes.
// =================================
Color of lines:
- black - channel for opening trade.
- red - channel for closing trade.
- yellow - entry price.
- fuchsia - stoploss and breakeven.
- vertical green - go Long.
- vertical red - go Short.
- vertical gray - close in end, don't trade anymore.
// =================================
Order size calculated with ATR and volatility.
You can't trade 1 contract in BTC and 1 contract in XRP - for example. They have different price and volatility, so 1 contract BTC not equal 1 contract XRP.
Script uses universal calculation for every market. It is based on:
- Risk - USD sum you ready to loss in one trade. It calculated as percent of Equity.
- ATR indicator - measurement of volatility.
With default setting your stoploss = 0.5 percent of equity:
- If initial capital is 1000 USD and used parameter "Permit stop" - loss will be 5 USD (0.5 % of equity).
- If your Equity rises to 2000 USD and used parameter "Permit stop"- loss will be 10 USD (0.5 % of Equity).
// =================================
This Risk works only if you enable “Permit stop” parameter in Settings.
If this parameter disabled - strategy works as reversal strategy:
⁃ If close Long - channel border works as stoploss and momentarily go Short.
⁃ If close Short - channel border works as stoploss and momentarily go Long.
Channel borders changed dynamically. So sometime your loss will be greater than ‘Risk %’. Sometime - less than ‘Risk %’.
If this parameter enabled - maximum loss always equal to 'Risk %'. This parameter also include breakeven: if profit % = Risk %, then move stoploss to entry price.
// =================================
Like all trend following strategies - it works only in trend conditions. If no trend - slowly bleeding. There is no special additional indicator to filter trend/notrend. You need to trade every signal of strategy.
Strategy gives many losses:
⁃ 30 % of trades will close with profit.
⁃ 70 % of trades will close with loss.
⁃ But profit from 30% will be much greater than loss from 70 %.
Your task - patiently wait for it and don't use risky setting for position sizing.
// =================================
Recommended timeframe - Daily.
// =================================
Trend can vary in lengths. Selecting length of channels determine which trend you will be hunting:
⁃ 20/10 - from several days to several weeks.
⁃ 20/20 or 50/20 - from several weeks to several months.
⁃ 50/50 or 100/50 or 100/100 - from several months to several years.
// =================================
Inputs (Settings):
- Length: length of channel for trade opening/closing. You can choose 20/10, 20/20, 50/20, 50/50, 100/50, 100/100. Default value: 50/50.
- Permit Long / Permit short: Longs are most profitable for this strategy. You can disable Shorts and enable Longs only. Default value: permit all directions.
- Risk % of Equity: for position sizing used Equity percent. Don't use values greater than 5 % - it's risky. Default value: 0.5%.
⁃ ATR multiplier: this multiplier moves stoploss up or down. Big multiplier = small size of order, small profit, stoploss far from entry, low chance of stoploss. Small multiplier = big size of order, big profit, stop near entry, high chance of stoploss. Default value: 2.
- ATR length: number of candles to calculate ATR indicator. It used for order size and stoploss. Default value: 20.
- Close in end - to close active trade in the end (and don't trade anymore) or leave it open. You can see difference in Strategy Tester. Default value: don’t close.
- Permit stop: use stop or go reversal. Default value: without stop, reversal strategy.
// =================================
Properties (Settings):
- Initial capital - 1000 USD.
- Script don't uses 'Order size' - you need to change 'Risk %' in Inputs instead.
- Script don't uses 'Pyramiding'.
- 'Commission' 0.055 % and 'Slippage' 0 - this parameters are for crypto exchanges with perpetual contracts (for example Bybit). If use on other markets - set it accordingly to your exchange parameters.
// =================================
Big dataset used for chart - 'BITCOIN ALL TIME HISTORY INDEX'. It gives enough trades to understand logic of script. It have several good trends.
// =================================
SMA Cross with a Price FilterA moving average strategy generates an entry (buy) signal when the price goes above the moving average, and an exit (sell) signal when the price goes below the moving average. But it gives lots of whipsaws and noise depends on the moving average we use. A fast moving average gives more whipsaws and a slow moving average gives less whipsaws. To reduce the noise/whipsaws, we can add a filter on a fast/slow moving average. It will improve entry/exit performance significantly specially for those who don't want to watch the market actively.
I created this indicator with a price filter. This means the price of an underlying asset must be at least a specific percentage above its moving average to generate a buy signal and a specific percentage below its moving average to generate a sell signal. This price filter can also be a confirmation after the price crosses above/below its SMA. I couldn't find any indicator yet based on this idea. So I wrote this indicator and publishing it so it helps those who are interested.
I use 200 SMA and 3% price filter as default and using SPY as an example. So,
ENTRY signal when the closing price of SPY is 3% above its 200 SMA.
EXIT signal when the closing price of SPY is 3% below its 200 SMA.
Enjoy and let me know if it works.
** This chart only generates entry (buy) and exit (sell) signals. Please, do your own diligence to make any investment or trading decisions.
Ceres Trader Position and Risk Management ToolNOTE: It won't properly scale until you enter an entry point that is located on the chart. It's a feature not a bug. After that, you will see the entry, s/l, and target price lines properly displayed on the chart.
The "Ceres Trader Position and Risk Management Tool" is a comprehensive indicator designed for TradingView, meticulously crafted for traders who prioritize effective risk management and clear position visualization. This tool seamlessly integrates with your trading strategy, providing crucial information about your trades directly on your chart.
Key Features:
Position Type Visualization: Displays long or short positions with distinct color-coded lines and boxes for easy recognition.
Entry, Stop Loss, and Target Levels: Visual markers for entry price, stop loss, and target price, enabling you to track your trade setup at a glance.
Risk Assessment: Calculates and displays the amount at risk based on the stop loss distance and the percentage of risk capital.
Profit Potential: Shows the potential profit in dollar terms if the target is reached, helping you understand the reward prospects of your trade.
Reward to Risk Ratio: Indicates the ratio of potential reward to risk, an essential metric for evaluating the efficiency of your trade setup.
Current P&L Tracking: Continuously updates the open profit and loss based on the current market price, giving you real-time insight into your trade's performance.
Customizable Risk and Reward Boxes: Allows personalization of the risk and reward zones with color options, enhancing chart clarity and visual appeal.
How to Use:
Setting Up Your Trade:
Input your trade details including position type (long or short), entry price, risk capital, risk percentage, reward-risk ratio, and stop loss distance.
Visualize Your Trade:
The tool will automatically plot the entry, stop loss, and target prices on the chart.
Risk and reward areas will be highlighted with customizable color boxes.
Monitor Your Risk and Reward:
View the amount risked and potential profit in dollar terms directly on the chart.
Keep track of the reward to risk ratio to assess trade efficiency.
Stay Informed of Real-time Performance:
The current P&L of your open position will be updated in real-time, helping you make informed decisions.
This tool is ideal for traders who follow disciplined risk management practices and want to keep essential trade information easily accessible. With the "Ceres Trader Position and Risk Management Tool," you are equipped to make strategic trading decisions backed by clear visual cues and critical data.
Pocket Pivot BreakoutPocket Pivot Breakout Indicator
The pocket pivot breakout indicator will show a blue arrow under the candle if both the following conditions are met:
1. The percentage change of the candle on that day from open is greater than 3%.
2. The volume on the day of 3% candle is higher than the highest red volume in the past 10 days.
The second condition is based on the 'Pocket Pivot' concept developed by Gil Morales and Chris Kacher.
If only one of the conditions is met, while the other is not, there will be no arrow.
How to use the Pocket Pivot Breakout indicator?
1. If the stock is breaking out of a proper base like (cup & handle, Darvas box etc.), you can use the blue arrow as an indicator to make your initial buy.
2. If you already own a stock, the blue arrow indicator can be used for pyramiding, following a continuation breakout from a proper base.
3. Avoid making a new entry or continuation entry if the stock is too extended from 10ma.
Gap-up > 0.5% Indicator
Gap-up Indicator displays a blue colored candle when a stock gaps up by more than 0.5% compared to previous day's close.
It is turned off by default. To activate it, check the box next to Gap-up > 0.5% in the indicator options.
How to use the Gap-up Indicator?
1. When a stock gaps up, it usually indicates strength, especially if on the day of the gap-up, the stock closes strongly.
2. This indicator should not be used in isolation but with a proper base breakout from a tight consolidation.
3. If a stock is already extended from 10ma, avoid taking any new or continuation entries.
Precautions
1. Avoid buying longs when the general market conditions are not favorable.
2. Avoid buying stocks below 200ma.
3. Avoid making a new entry or pyramid entry if a stock is too extended from 10ma.
Important Points
1. Always choose fundamentally strong stocks showing strong growth in earnings/margins/sales.
2. Buy these fundamentally strong stocks when they are breaking out of proper bases.
3. To learn more about pocket pivots and buyable gap-ups, read the book, Trade Like an O'Neil Disciple (by Gil Morales & Chris Kacher).
Cheers
Simranjit
