[-_-] Level Breakout, Auto Backtesting StrategyDescription:
A Long only strategy based on breakout from a certain level formed by High price. It has auto-backtesting capabilities (you set ranges for the three main parameters: Lookback, TP and SL; the strategy then goes through different combinations of those parameters and displays a table with results that you can sort by Percentage of profitable trades AND/OR Net profit AND/OR Number of trades). So you can, for example, sort only by Net profit to find combination of parameters that gives highest net profit, or sort by Net profit and Percentage profitable to find a combination of parameters that gives the best balance between profitability and profit. The auto-backtesting also takes into account the commission which is set in % in the inputs (make sure to set the same value in properties of the strategy so that auto-backtesting and real backtesting results match).
NOTE: auto-backtesting only find the best combinations and displays them in a table, you will then need to manually set the Lookback, TP and SL inputs for real backtesting to match.
Parameters:
- Lookback -> # of bars for filtering signals; recommended range from 2 to 5
- TP (%) -> take profit; recommended range from 5 to 10
- SL (%) -> stop loss; recommended range from 1 to 5
- Commission (%) -> commission per trade
- Min/Max Lookback -> lookback range for auto-backtesting
- Min/Max TP -> take profit range for auto-backtesting
- Min/Max SL -> stop loss range for auto-backtesting
- Percentage profitable -> sort by percentage of profitable trades
- Net profit -> sort by net profit
- Number of trades -> sort by number of trades
Wyszukaj w skryptach "profit"
Customizable Non-Repainting HTF MACD MFI Scalper Bot Strategy v2Customizable Non-Repainting HTF MACD MFI Scalper Bot Strategy v2
This script was originally shared by Wunderbit as a free open source script for the community to work with. This is my second published iteration of this idea.
WHAT THIS SCRIPT DOES:
It is intended for use on an algorithmic bot trading platform but can be used for scalping and manual trading.
This strategy is based on the trend-following momentum indicator . It includes the Money Flow index as an additional point for entry.
This is a new and improved version geared for lower timeframes (15-5 minutes), but can be run on larger ones as well. I am testing it live as my high frequency trader.
HOW IT DOES IT:
It uses a combination of MACD and MFI indicators to create entry signals. Parameters for each indicator have been surfaced for user configurability.
Take profits are now trailing profits, and the stop loss is now fixed. Why? I found that the trailing stop loss with ATR in the previous version yields very good results for back tests but becomes very difficult to deploy live due to transaction fees. As you can see the average trade is a higher profit percentage than the previous version.
HOW IS MY VERSION ORIGINAL:
Now instead of using ATR stop loss, we have a fixed stop loss - counter intuitively to what some may believe this performs better in live trading scenarios since it gives the strategy room to move. I noticed that the ATR trailing stop was stopping out too fast and was eating away balance due to transaction fees.
The take profit on the other hand is now a trailing profit with a customizable deviation. This ensures that you can have a minimum profit you want to take in order to exit.
I have depracated the old ATR trailing stop as it became too confusing to have those as different options. I kept the old version for others that want to experiment with it. The source code still requires some cleanup, but its fully functional.
I added in a way to show RSI values and ATR values with a checkbox so that you can use the new an improved ATR Filter (and grab the right RSI values for the RSI filter). This will help to filter out times of very low volatility where we are unlikely to find a profitable trade. Use the "Show Data" checkbox to see what the values are on the indicator pane, then use those values to gauge what you want to filter out.
Both versions
Delayed Signals : The script has been refactored to use a time frame drop down. The higher time frame can be run on a faster chart (recommended on one minute chart for fastest signal confirmation and relay to algotrading platform.)
Repainting Issues : All indicators have been recoded to use the security function that checks to see if the current calculation is in realtime, if it is, then it uses the previous bar for calculation. If you are still experiencing repainting issues based on intended (or non intended use), please provide a report with screenshot and explanation so I can try to address.
Filtering : I have added to additional filters an ABOVE EMA Filter and a BELOW RSI Filter (both can be turned on and off)
Customizable Long and Close Messages : This allows someone to use the script for algorithmic trading without having to alter code. It also means you can use one indicator for all of your different alterts required for your bots.
HOW TO USE IT:
It is intended to be used in the 5-30 minute time frames, but you might be able to get a good configuration for higher time frames. I welcome feedback from other users on what they have found.
Find a pair with high volatility (example KUCOIN:ETH3LUSDT ) - I have found it works particularly well with 3L and 3S tokens for crypto. although it the limitation is that confrigurations I have found to work typically have low R/R ratio, but very high win rate and profit factor.
Ideally set one minute chart for bots, but you can use other charts for manual trading. The signal will be delayed by one bar but I have found configurations that still test well.
Select a time frame in configuration for your indicator calculations.
Select the strategy config for time frame (resolution). I like to use 5 and 15 minutes for scalping scenarios, but I am interested in hearing back from other community memebers.
Optimize your indicator without filters : customize your settings for MACD and MFI that are profitable with your chart and selected time frame calculation. Try different Take Profits (try about 2-5%) and stop loss (try about 5-8%). See if your back test is profitable and continue to optimize.
Use the Trend, RSI, ATR Filter to further refine your signals for entry. You will get less entries but you can increase your win ratio.
You can use the open and close messages for a platform integration, but I choose to set mine up on the destination platform and let the platform close it. With certain platforms you cannot be sure what your entry point actually was compared to Trading View due to slippage and timing, so I let the platform decide when it is actually profitable.
Limitations: this works rather well for short term, and does some good forward testing but back testing large data sets is a problem when switching from very small time frame to large time frame. For instance, finding a configuration that works on a one minute chart but then changing to a 1 hour chart means you lose some of your intra bar calclulations. There are some new features in pine script which might be able to address, this, but I have not had a chance to work on that issue.
Short Selling EMA Cross (By Coinrule)BINANCE:AVAXUSDT
This short selling script works best in periods of downtrends and general bearish market conditions, with the ultimate goal to sell as the the price decreases further and buy back before a rebound.
This script can work well on coins you are planning to hodl for long-term and works especially well whilst using an automated bot that can execute your trades for you. It allows you to hedge your investment by allocating a % of your coins to trade with, whilst not risking your entire holding. This mitigates unrealised losses from hodling as it provides additional cash from the profits made. You can then choose to to hodl this cash, or use it to reinvest when the market reaches attractive buying levels.
Entry
The exponential moving average ( EMA ) 20 and EMA 50 have been used for the variables determining the entry to the short. EMAs can operate better than simple moving averages due to the additional weighting placed on the most recent data points, whereas simple moving averages weight all the data the same. This means that price is tracked more closely and the most recent volatile moves can be captured and exploited more efficiently using EMAs.
Our backtesting data revealed that the most profitable timeframe was the 30-minute timeframe, this also enabled a good frequency of trades and high profitability.
A fast (shorter term) exponential moving average , in this strategy the EMA 20, crossing under a slow (longer term) moving average, in this example the EMA 50, signals the price of an asset has started to trend to the downside, as the most recent data signals price is declining compared to earlier data. The entry acts on this principle and executes when the EMA 20 crosses under the EMA 50.
Enter Short: EMA 20 crosses under EMA 50.
Exit
This script utilises a take profit and stop loss for the exit. The take profit is set at -8% and the stop loss is set at +16% from the entry price. This would normally be a poor trade due to the risk:reward equalling 0.5. However, when looking at the backtesting data, the high profitability of the strategy (93.33%) leads to increased confidence and showcases the high probability of success according to historical data.
The take profit (-8%) and the stop loss (+16%) of the strategy are widely placed to ensure the move is captured without being stopped out due to relief rallies. The stop loss also plays a role of mitigating losses and minimising risk of being stuck in a short position once there has been a fundamental trend reversal and the market has become bullish .
Exit Short: -8% price decrease from entry price.
OR
Exit Short: +16% price increase from entry price.
Tip: Research what coins have consistent and large token unlocks / highly inflationary tokenomics, and target these during bear markets to short as they will most likely have substantial selling pressure that outweighs demand - leading to declining prices.
The strategy assumes each order is using 30% of the available coins to make the results more realistic and to simulate you only ran this strategy on 30% of your holdings. A trading fee of 0.1% is also taken into account and is aligned to the base fee applied on Binance.
The backtesting data was recorded from December 1st 2021, just as the market was beginning its downtrend. We therefore recommend analysing the market conditions prior to utilising this strategy as it operates best on weak coins during downtrends and bearish conditions.
Grover Llorens Activator Strategy AnalysisThe Grover Llorens Activator is a trailing stop indicator deeply inspired by the parabolic SAR indicator, and aim to provide early exit points and reversal detection. The indicator was posted not so long ago, you can find it here :
Today a strategy using the indicator is proposed, and its profitability is analyzed on 3 different markets with the main time frame being 1 hour, remember that lower time frames involve lower absolute price changes, therefore we are way more affected by the spread, and we can require a larger position sizing depending on our investment target, trading higher time-frames is always a good practice and this is why 1 hour is selected. Based on the result we might make various conclusions regarding the indicator accuracy and might have ideas on future improvements of the indicator.
I'am not great when it comes to strategy design, i still hope to share correct and useful information in this post, let me know your thoughts on the post format and if i should make more of these.
Setup And Rules
The analysis is solely based on the indicator signals, money management isn't taken into account, this allow us to have an idea on the indicator robustness and resilience, particularly on extremely volatile markets and ones exhibiting a chaotic structure, altho it is normally good practice to close any position before a market closure in order to avoid any potential major gaps.
The settings used are 480 for length and 14 for mult, this create relatively mid term signals that are suited for a trend indicator such as the Grover Llorens Activator, unfortunately we can't infer the indicator optimal settings, thats how it is with any technical indicator anyway.
Here are the rules of our strategy :
long : closing price cross over the indicator
short : closing price cross under the indicator
We use constant position sizing, once a signal is triggered all the previous positions are closed.
Description Of The Statistics Used
Various statistics are presented in this post, here is a brief description of the main ones :
Percent Profitability (higher = better): Percentage of winning trades, that is : winning trades/total number of trades × 100
Maximum Drawdown (lower = better) : The highest difference between a peak and a valley in the balance, that is : peak - valley , in percentage : (peak - valley)/peak × 100
Profit Factor (higher = better) : Gross profit divided by gross loss, values under 1 represent gross losses superior to the gross profits
Remember that more volatility = more risk, since higher absolute price changes can logically cause larger losses.
EURUSD
The first market analyzed is the Forex market with the EURUSD major pair with a position sizing of 1000 units (1 micro lot). Since October EURUSD is not showing any particular strong trend but posses a discrete rising motion, fortunately cycles can be observed.
The equity was rising until two trades appeared causing a decline in the equity. Before October a bearish market could be observed.
We can see that the equity is rising, the trend still posses various retracements that affect our indicator, however we can see that the indicator totally nail the end of the trend, thats the power of converging toward the price.
In short :
$ 86.63 net profit
340 closed trades
37.65 % profitable (thats a lot of loosing trades)
1.19 profit factor
$ 76.67 max drawdown
Applying a spread would create negative results (in general the average spread is used), not a great start...
BTCUSD
The cryptocurrency market is relatively more volatile than others, which also mean potentially higher returns, we test the indicator using certainly the most traded cryptocurrency, BTCUSD. We will use a position sizing of 1 unit.
In the case of BTCUSD the strategy balance is relatively stationary around the initial capital, with of course high dispersion.
from september to december the market is bearish with various ranging periods, no apparent cycles can be observed, except maybe in the ranging period of october, this ranging period is followed by a non linear trend (relatively parabolic) that the indicator failed to capture in its integrity (this is a recurrent problem and it is starting to piss me off xD).
In short :
$ 2010.64 net profit (aka how i bet the crypto market)
395 closed trades
38.23 % profitable
1.036 profit factor
$ 5738.01 max drawdown (aka how i lost to the crypto market)
AMD
AMD stand for Advanced Micro Devices and is a company focused on the development of computer technology, i love the microprocessor market and i really like AMD who start this year in a pretty great way with a net bullish trend.
The performance of the indicator on AMD is decent (at last !) with the equity producing many new higher highs. The indicator performance still drop in the middle end of 2019 with a large equity drawdown of 17$ caused by the gap of august 8. Unfortunately AMD, like lot of well behaving stocks can only tells us that the indicator has good performances on heavily trending markets with no excess of noise or chaotic structures.
In short :
$ 17.86 net profit (Enough for a consistent lunch)
295 closed trades
36.27 % profitable
1.414 profit factor
$ 10.37 max drawdown.
Conclusion
A strategy using the recently proposed Grover Llorens activator has been presented. We can easily conclude that the indicator can't possibly generate long term returns under chaotic and volatile markets, and could even produce unnecessary trades in trending markets without much parasitic fluctuations such as noise and retracements (think about a simple linear trend) since the indicator converge toward the price and would therefore automatically cross over/under the trend, thus guaranteeing a false signal.
However we have seen its ability to provide accurate early reversal detection shine from time to time, thus over performing lagging indicators in this aspect, however the duration of price fluctuations isn't fixed at a certain period, the rate of convergence should be way faster during volatile fluctuations, of moderate speed during more cyclic fluctuations, and really slow with apparent long term trends, this could be achieved by making the indicator adaptive, but it won't really make it necessarily perform better.
That said i still believe that converging trend indicators are really interesting and aim to capture the non lasting behavior of price fluctuations, they shouldn't receive so much hate (think about the poor p-sar).
Thanks for reading !
Red and Green Ignored Bar by Oliver VelezOn this occasion I present a script that detects Ignored Red Candles and Ignored Green Candles, basically it is a Price Action event that indicates a possible continuation of the current trend and gives the opportunity to climb it with a Very tight risk, before delving into detail I would like to leave this note:
Note: the detection of this event does not guarantee that the signal will be good, the trader must have the ability to determine its quality based on aspects such as trend, maturity, support / resistance levels, expansion / contraction of the market, risk / benefit, etc, if you do not have knowledge about this you should not use this indicator since using it without a robust trading plan and experience could cause you to partially or totally lose your money, if this is your case you should train before If you try to extract money from the market, this script was created to be another tool in your trading plan in order to configure the rules at your discretion, execute them consistently and have AUTOMATIC ALERTS when the event occurs, which is where I find more value because you can have many instruments waiting for the event to be generated, in the time frame you want and without having to observe the mer When the alert is generated, the Trader should evaluate the quality of the alert and define whether or not to execute it (higher timeframes, they can give you more time to execute the operation correctly).
Let's continue….
This event was created by Oliver Velez recognized trader / mentor of price action, the event has a very interesting particularity since it allows to take a position with a very limited risk in trend movements, this achieves favorable operations of good ratio and small losses when taking An adjusted risk, if the trade works, a good ratio is quickly achieved and we agree with a key point in the “Keep small losses and big profits” trading, this makes it easier to have a positive mathematical hope when your level of Success is not very high, so leave you in the field of profitability.
THE EVENT:
The event has a bullish configuration (Ignored Red Candle) and a bearish configuration (Ignored Green Candle), below I detail the “Hard” rules (later I explain why “Hard”):
1- Last 3 bars have to be GREEN-RED-GREEN (possible bullish configuration) or RED-GREEN-RED (possible bearish configuration), the first bar is called Control Bar, the second is called Ignored Bar and the third Signal Bar as shown in the following image:
2- Be in a trend determined by simple moving averages (Slow of 20 periods and Fast of 8 periods), as a general rule you can take the direction of MA20 but the Trader has to determine if there is a trend movement or not.
3- Control bar of good range, little tail and with a body greater than 55%.
4- Ignored bar preferably narrow range, little tail and that is located in the upper 1/3 of the control bar.
5- Signal bar cannot override the minimum of the ignored bar.
6- Activation / Confirmation of event by means of signal bar in overcoming the body of the ignored bar.
Some examples of ignored bars (with “Hard” and “Flexible” rules):
Features and configuration of the indicator:
To access the indicator settings, press the wheel next to the indicator name VVI_VRI "Configuration options".
- Operation mode (Filtering Type):
• Filtering Complete: all filters activated according to the configuration below.
• Without Filtering: all filters deactivated, all VRI / VVI are displayed without any selection criteria.
• Trend Filter only: shows only VRI / VVI that are in accordance with what is set in “Trend Settings”
- Configuration Moving Averages:
• See Slow Media: slow moving average display with direction detection and color change.
• See Fast Media: display of fast moving average with direction detection and color change.
• Type: possibility to choose the type of media: DEMA, EMA, HullMA, SMA, SSMA, SSMA, TEMA, TMA, VWMA, WMA, ZEMA)
• Period: number of previous bars.
• Source: possibility to choose the type of source, open, close, high, low, hl2 hlc3, ohlc4.
• Reaction: this configuration affects the color change before a change of direction, 1 being an immediate reaction and higher values, a more delayed reaction obtaining les false "changes of direction", a value of 3 filters the direction quite well.
- Trend Configuration
• Uptrend Condition P / VRI: possibility to select any of these conditions:
o Bullish MA direction
o Quick bullish MA direction
o Slow and fast bullish MA direction
o Price higher than slow MA
o Price higher than fast MA
o Price higher than slow and fast MA
o Price higher than slow MA and bullish direction
o Price higher than fast MA and bullish direction
o Price higher than slow, fast MA and bullish direction
o No condition
• Condition P / VVI bear trend: possibility of selecting any of these conditions:
o Slow bearish MA direction
o Fast bearish MA direction
o Slow and fast bearish MA direction
o Price less than slow MA
o Price less than fast MA
o Price less than slow and fast MA
o Price lower than slow MA and bearish direction
o Price less than fast MA and bearish direction
o Price less than slow, fast MA and bearish direction
o No condition
- Control bar configuration
• Minimum body percentage%: possibility to select what body percentage the bar must have.
• Paint control bar: when selected, paint the control bar.
• See control bar label: when selected, a label with the legend BC is plotted.
- Configuration bar ignored
• Above X% of the control bar: possibility to select above what percentage of the control bar the ignored bar must be located.
• Paint ignored bar: when selected, paint the ignored bar.
- Signal bar configuration
• You cannot override the minimum of the ignored bar: when selected, the condition is added that the signal bar cannot override the minimum of the ignored bar.
• Paint signal bar: when selected, paint the signal bar.
• See arrow: when selected it shows the direction arrow of the possible movement.
• See bear and arrow: when selected it shows bear and arrow label
• See bull and arrow: when selected it shows bull and arrow label
The following image shows the ignored bar and painted signal:
- Take profit / loss
The profit / loss taking varies depending on the trader and its risk / monetary plan, the proposal is a recommendation based on the nature of the event that is to have a small risk unit (stop below the minimum of the ignored bar), look for objectives in ratios greater than 2: 1 and eliminate the risk in 1: 1 by taking the stop to BE, all parameters are configurable and are the following:
• See recommended stop loss and take profit: trace the levels of Stop, BE, TP1 and TP2, as well as their prices to know them quickly based on the assumed risk
• To: select which event you want to draw the SL and TP (VRI, VVI)
• Extend stop loss line x bars: allows extending the stop line by x number of bars
• Extend take profit line x bars: allows extending the stop line by x number of bars
• Ratio to move to break even: allows you to select the minimum ratio to move stop to break even (default 1: 1)
• Take profit 1 ratio: allows you to select the ratio for take profit 1 (default 2: 1)
• Take profit 2 ratio: allows you to select the ratio for take profit 2 (default 4: 1)
- Alerts
• It is possible to configure the following alerts:
-VRI DETECTED
-VVI DETECTED
-VRI / VVI DETECTED
Final Notes:
- The term hard rules refers to the fact that an event is sought with the rules detailed above to obtain a high quality event but this brings 2 situations to consider, less
number of events and events that are generated in a strong impulse may be leaked, a very large control bar followed by an ignored narrow body away from moving averages, despite having a good chance of continuing, taking a stop very tight in a strong impulse you can touch it by the simple fact of the own volatility at that time.
- The setting of the parameters “Minimum body percentage% (control bar)”, “Above x% of the control bar (bar ignored)” and “Cannot override the minimum of the ignored bar” can bring large Benefits in terms of number of events and that can also be of high quality, feel free to find the best configuration for your instrument to operate.
- It is recommended to look for trending events, near moving averages and at an early stage of it.
- The display of several nearby VRIs or VVIs in an advanced trend may indicate a depletion of it.
- The alerts can be worked in 2 ways: at the closing of the candle (confirms event but the risk unit may be larger or smaller) or immediately the body of the ignored bar is exceeded, in case you are operating from the mobile and miss many events because of the short time I recommend that you operate in a superior time frame to have more time.
- The indicator is configured with “flexible” rules to have more events, but without any important criteria, each trader has to look for the best configuration that suits his instrument.
- It is recommended to partially close the operation based on the ratio and always keep a part of the position to apply manual trailing stop and try to maximize profits.
The code is open feel free to use and modify it, a mention in credits is appreciated.
If you liked this SCRIPT THUMB UP!
Greetings to all, I wish you much green!
Complete Trend Trading System [Fhenry0331]This system was designed for the beginner trader to make money swing trading. Your losses will be small and your gains will be mostly large. You will show consistent profit. Period.
The system works on any security you like to trade. I used GBPUSD as an example because of the up swing and down swing it had recently. I tried to put as much information of how the system works in the chart. Hope it helps and is not to cluttered.
I will reiterate how the system works here: Everything is based off of closed price.
Legend
Uptrend: Buy
Green bar: initial start of an uptrend or uptrend continuing. Place order above that bar. If the initial bar does not stray too far from the MVWAP , I will place orders above subsequent bars if no filled occurred.
If initial start of the trend is missed, I will wait for the pullback. A pullback is a close below the MVWAP, and a close above the EMA (Low), RSI is above 50. Orders are placed above the pullback bars with plotted char "B" and also plotted green triangle up. Again orders are placed above those bars. the bars do not notate automatic buys. Don't chase anything. You will miss the initial bar on something because of news or earnings and it rocket up. Just wait, it will pullback. If it doesn't, to hell with it, on to the next.
Take profits: In the indicator you will see "T." That notates to take some profits. It is a suggestion. I was always told to take profits into spikes, as well as you can never lose money if you take profits. Up to you if you want to scale out and take the suggested profits or not.
Exit Completely: In an uptrend, close your entire position on bars colored yellow or red. (Again, closed bars)
In uptrend bars colored orange and black, do nothing, they are just pullback bars. Look for the buy pullback signal, then follow pullback buy rules for an uptrend.
Downtrend: Short
Red bar: initial start of a downtrend or downtrend continuing. Place order below the bar. If the initial bar does not stray too far fro the MVWAP, place orders below subsequent bars.
If initial start on the downtrend is missed, wait for the pullback. A pullback is a close above the MVWAP, and close below the EMA(Low). RSI is below 50. Orders are placed below the pullback bars with the plotted char "S" and also plotted red triangle. Again those bars are not automatic shorts, orders are placed below them. Don't chase anything. Wait for price to come into your plan. The idea FOMO is the stupidest thing ever, how can you miss out on something when it is always there. The market is always there and something will come into your zone. Chill.
"T": same as in uptrend, suggestion to take some profits.
Exit Completely: In a downtrend, close your entire position on bars colored orange or green.
In downtrend you will see bars colored yellow and black, do nothing, they are pullback bars. Look for the pullback short signal and follow pullback short rules.
If you have any questions get at me. Take a look at it on what you trade. Flip it through different securities.
Best of luck in all you do.
P.S. You should not take a trade right before earnings. You should also exit a trade right before earnings.
T7 JNSARUpdated code for the T7 JNSAR system earlier published here -
Following updates made to the code
1. Buy / Sell arrows now appear when the corresponding conditions are met.
2. Support for Heikin-Ashi Candles added
3. Different Backtesting Position Sizing Algorithms added for evaluation
Also am republishing the trading rules here again with some modification
1. Go Long when the daily close is above the JNSAR line. Go Short when the daily close is below the JNSAR line. JNSAR line is the varying green line overlayed over the price chart. Once a signal comes at market close enter in the direction of the signal @ market price @ next day market open.
2. Trade only Nifty Index. This system was developed and backtested only for NIFTY Index. So trade in its Futures or Options, as you may deem fit. My recommendation is to choose futures for simplicity. If you want to reduce the trading cost and go with options, trade with deep in the money options, preferably 2 strikes far from the spot price.
3. Trade all signals. Markets trend only 30-35% of the time and hence the system is only accurate to that extend. But system tends to make enough money, in this small trending window, to keep the overall profitability in good health. But one never knows when a big trend may come and when it comes its absolutely imperative that you take it. To ensure that, trade all signals and don't be choosy about what signals you are going to trade. Also I wouldn't recommend using your own analysis to trade this system. Too many drivers will crash the car.
4. Like all trend following systems, this system will have many whipsaws during flat markets along with large trade and account drawdowns. Also some months and even years may not be profitable. But to trade this system profitably, it is necessary to take these in one's stride and keep trading. As the backtester results from 1990 to 2016 proves, this system is profitable overall thus far. Take confidence from that objective fact.
5. Trade with only that amount of money you can afford to loose. Initial capital that you need to have to trade one lot of NIFTY should be atleast - (Margin Money required to take and hold 1 lot position + maximum drawdown amount per lot)*1.2. Be prepared to add more if need be, but the above formula will give a rough idea of what you need to have to start trading and be in the game always.
6. Place an After Market Order @ Market Price with your broker after market close so that you get to execute the trade next trading day @ Market open to capture near similar price as the daily open price seen on the chart. This execution mode will give you the best chance to minimise the slippage and mimic the backtester results as closely as practically possible.
7. Follow all the 6 rules above religiously, as if your life depends on it. If you cant, then don't trade this system; You will certainly loose money.
Happy Trading !!! As always am looking out for your valuable feedback.
T7 JNSARJNSAR stands for Just Nifty Stop & Reverse. This is a trend following daily bar trading system for NIFTY. Original idea belongs to ILLANGO @ I coded the pine version of this system based on a request from @stocksonfire. Use it at your own risk after validation at your end. Neither me or my company is responsible for any losses you may incur using this system. Hope you like this system and enjoy trading it !!!
While trading this system you must follow these simple rules.
1. Go Long when the daily close is above the JNSAR line. Go Short when the daily close is below the JNSAR line. JNSAR line is the varying green line overlayed over the price chart. Once a signal comes at market close enter in the direction of the signal @ market price @ next day market open.
2. Trade only Nifty Index. This system was developed and backtested only for NIFTY Index. So trade in its Futures or Options, as you may deem fit. My recommendation is to choose futures for simplicity. If you want to reduce the trading cost and go with options, trade with deep in the money options, preferably 2 strikes far from the spot price.
3. Trade all signals. Markets trend only 30-35% of the time and hence the system is only accurate to that extend. But system tends to make enough money, in this small trending window, to keep the overall profitability in good health. But one never knows when a big trend may come and when it comes its absolutely imperative that you take it. To ensure that, trade all signals and don't be choosy about what signals you are going to trade. Also I wouldn't recommend using your own analysis to trade this system. Too many drivers will crash the car.
4. Like all trend following systems, this system will have many whipsaws during flat markets along with large trade and account drawdowns. Also some months and even years may not be profitable. But to trade this system profitably, it is necessary to take these in one's stride and keep trading. As the backtester results from 1990 to 2016 proves, this system is profitable overall thus far. Take confidence from that objective fact.
5. Initial capital that you need to have to trade one lot of NIFTY should be atleast - (Margin Money required to take and hold 1 lot position + maximum drawdown amount per lot)*1.2. Be prepared to add more if need be, but the above formula will give a rough idea of what you need to have to start trading and be in the game always.
6. Follow all the 5 rules above religiously as if your life depends on it. If you cant, then don't trade this system; You will certainly loose money.
Commodity Channel Index CCI + EMA strategy
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COMMODITY CHANNEL INDEX CCI + EMA STRATEGY - STRATEGY GUIDE 📊
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💡 COLLABORATION & SUPPORT
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If you want to collaborate, have an idea for a strategy, or need help writing
or customizing code, send an email to burdytrader@gmail.com or send me a
message. Suggestions, ideas, and comments are always welcome! 🤝
I also develop automated trading codes for other trading platforms including:
- CTrader (C#)
- MetaTrader 4 (MQL4)
- MetaTrader 5 (MQL5)
If you need a strategy converted or developed for any of these platforms, feel
free to contact me!
================================================================================
⚠️ IMPORTANT: INSTRUMENT SELECTION 📈
-------------------------------------
This strategy performs BEST with currency pairs (forex). The CCI indicator
works particularly well in the forex market due to the nature of currency
movements and the effectiveness of the CCI in identifying overbought and
oversold conditions in trending markets.
Why Currency Pairs? 🎯
- CCI is highly effective in identifying reversals in forex markets
- Currency pairs show clear overbought/oversold patterns
- EMA filter (50/200) aligns well with major forex trends
- High liquidity ensures reliable signal execution
Performance Highlights:
In specific currency pairs, when properly configured, this strategy can achieve:
- Profit Factor: Over 2.0
- Win Rate: Up to 70%
- Particularly effective pairs: USDCAD, EURUSD, GBPJPY
While the strategy can work with other instruments (stocks, indices, commodities),
currency pairs provide the most consistent and reliable results. For optimal
performance, focus on major forex pairs with good liquidity and clear trending
characteristics.
================================================================================
WHAT DOES THIS STRATEGY DO? 🎯
---------------------------
This strategy combines the Commodity Channel Index (CCI) with Exponential
Moving Averages (EMA) to identify high-probability trading opportunities.
The strategy uses CCI crossovers with a smoothing moving average and filters
signals using EMA trend confirmation. The strategy automatically enters trades
when CCI crosses the smoothing MA in specific zones, indicating potential trend
reversals or continuations.
HOW IT WORKS? ⚙️
---------------
1. CCI CALCULATION 📈
The strategy calculates the Commodity Channel Index using:
- CCI = (Price - SMA(Price, length)) / (0.015 × Deviation(Price, length))
- Default length: 20 periods
- Source: HLC3 (typical price)
The CCI shows:
- Values above +100 = Overbought conditions
- Values below -100 = Oversold conditions
- Values around 0 = Neutral conditions
2. SMOOTHING MOVING AVERAGE 📊
A moving average is applied to the CCI to smooth out fluctuations:
- Types available: SMA, EMA, SMMA (RMA), WMA, VWMA
- Default: SMA with length 14
- Can be disabled (set to "None")
This smoothed line acts as a reference for crossover signals.
3. EMA TREND FILTER 🎯
Two EMAs are calculated on the CCI:
- EMA 50 (fast EMA)
- EMA 200 (slow EMA)
When the EMA filter is enabled:
- LONG signals only occur when EMA50 > EMA200 (uptrend confirmation)
- SHORT signals only occur when EMA50 < EMA200 (downtrend confirmation)
This filter can be enabled/disabled via the "Use EMA Filter" option.
4. ENTRY CONDITIONS 🎲
LONG ENTRY (Buy Signal):
- CCI crosses ABOVE the Smoothing MA (crossover)
- CCI is between Lower Level (-100) and Middle Level (0)
- EMA Filter: EMA50 > EMA200 (if filter enabled)
- No existing positions (or close opposite positions first)
SHORT ENTRY (Sell Signal):
- CCI crosses BELOW the Smoothing MA (crossunder)
- CCI is between Middle Level (0) and Upper Level (+100)
- EMA Filter: EMA50 < EMA200 (if filter enabled)
- No existing positions (or close opposite positions first)
5. POSITION MANAGEMENT 💰
The strategy uses a simple position management approach:
- Only ONE position at a time (no pyramiding)
- If a signal occurs in the opposite direction, closes existing position first
- Then opens new position in the new direction
- This prevents overexposure and simplifies risk management
6. TAKE PROFIT & STOP LOSS SETTINGS 🎯
The strategy uses percentage-based TP/SL:
- Take Profit: 1.0% (default, configurable)
- Stop Loss: 0.5% (default, configurable)
- Risk/Reward Ratio: 2:1 (TP is double the SL)
TP/SL are calculated once when the position opens and remain fixed.
AVAILABLE PARAMETERS ⚙️
-----------------------
CCI SETTINGS:
1. CCI Length (Default: 20)
- Period for CCI calculation
- Lower values = More sensitive to recent price action
- Higher values = More smoothed, less sensitive
2. CCI Source (Default: HLC3)
- Price source for CCI calculation
- Options: close, open, high, low, hlc3, hlcc4, ohlc4
3. CCI Lower Level (Default: -100)
- Lower boundary for LONG entry zone
- Typically -100 for oversold conditions
4. CCI Middle Level (Default: 0)
- Neutral level separating LONG and SHORT zones
5. CCI Upper Level (Default: +100)
- Upper boundary for SHORT entry zone
- Typically +100 for overbought conditions
SMOOTHING MA:
6. Type (Default: SMA)
- Moving average type: None, SMA, EMA, SMMA (RMA), WMA, VWMA
- Set to "None" to disable smoothing
7. Length (Default: 14)
- Period for smoothing MA
- Range: 7-28, step 7
EMA FILTER:
8. EMA 1 Length (Default: 50)
- Fast EMA period applied to CCI
9. EMA 2 Length (Default: 200)
- Slow EMA period applied to CCI
10. Use EMA Filter (Default: true)
- Enable/disable EMA trend filter
- When enabled: LONG only if EMA50 > EMA200, SHORT only if EMA50 < EMA200
RISK MANAGEMENT:
11. Take Profit (%) (Default: 1.0%)
- Profit target as percentage of entry price
- For LONG: Entry × (1 + TP%)
- For SHORT: Entry × (1 - TP%)
12. Stop Loss (%) (Default: 0.5%)
- Stop loss as percentage of entry price
- For LONG: Entry × (1 - SL%)
- For SHORT: Entry × (1 + SL%)
VISUALIZATION 📊
---------------
The strategy displays in a separate panel below the price chart:
1. CCI LINE
- Blue line showing the CCI value
- Oscillates around zero
2. SMOOTHING MA LINE
- Yellow line showing the smoothed CCI
- Reference line for crossover signals
3. CCI LEVEL LINES
- Red dashed line: Upper Level (+100)
- Green dashed line: Lower Level (-100)
- Yellow dashed line: Middle Level (0)
4. ENTRY SIGNALS
- Green cross: LONG entry signal (when CCI crosses above MA)
- Red cross: SHORT entry signal (when CCI crosses below MA)
RECOMMENDED SETTINGS 🎯
-----------------------
To get started, you can use these settings:
CCI SETTINGS:
- CCI Length: 20 (default)
- CCI Source: HLC3 (default)
- CCI Lower Level: -100 (default)
- CCI Middle Level: 0 (default)
- CCI Upper Level: +100 (default)
SMOOTHING MA:
- Type: SMA (default) or EMA for faster response
- Length: 14 (default)
EMA FILTER:
- EMA 1 Length: 50 (default)
- EMA 2 Length: 200 (default)
- Use EMA Filter: true (recommended for better signal quality)
RISK MANAGEMENT:
- Take Profit (%): 1.0% (adjust based on your risk/reward preference)
- Stop Loss (%): 0.5% (adjust based on your risk tolerance)
For more aggressive trading:
- Reduce CCI Length to 14-16
- Reduce Smoothing MA Length to 7
- Disable EMA Filter
For more conservative trading:
- Increase CCI Length to 24-30
- Increase Smoothing MA Length to 21-28
- Keep EMA Filter enabled
RECOMMENDED CURRENCY PAIRS 💱
------------------------------
This strategy is optimized for currency pairs and performs exceptionally well
on the following pairs when properly configured:
TOP PERFORMING PAIRS:
- USDCAD: Can achieve Profit Factor > 2.0 and Win Rate up to 70%
- EURUSD: Excellent performance with consistent signals
- GBPJPY: Strong results with proper EMA filter configuration
These pairs have shown the best historical performance due to:
- Clear trending characteristics
- Good response to CCI overbought/oversold levels
- Strong alignment with EMA 50/200 trend filter
- High liquidity ensuring reliable execution
When trading these pairs, use the default settings or slightly adjusted
parameters based on the pair's volatility. Always backtest on historical
data before using real money to find the optimal configuration for each
specific pair.
PRACTICAL EXAMPLE 📝
--------------------
Scenario: LONG Entry on EUR/USD
1. Market conditions:
- Price: 1.1000
- CCI: -80 (in oversold zone)
- Smoothing MA: -90
- CCI crosses above Smoothing MA (crossover occurs)
- EMA50: -50, EMA200: -70 (EMA50 > EMA200, uptrend confirmed)
2. Strategy checks conditions:
✓ Smoothing MA enabled: Yes
✓ Crossover: Yes (CCI crosses above MA)
✓ CCI in range: Yes (-100 <= -80 <= 0)
✓ EMA Filter: Yes (EMA50 > EMA200)
✓ No existing position: Yes
3. Strategy opens position:
- Direction: LONG (Buy)
- Entry: 1.1000 (current close)
- Take Profit: 1.1110 (1.0% above entry)
- Stop Loss: 1.0945 (0.5% below entry)
- Risk/Reward: 2:1
4. Outcome scenarios:
- If price rises to 1.1110 → Take Profit hit (profit)
- If price falls to 1.0945 → Stop Loss hit (loss limited)
IMPORTANT NOTE ⚠️
-----------------
This strategy is a technical analysis tool based on CCI and EMA indicators.
Like all trading strategies, it does NOT guarantee profits. Trading involves
significant risks and you can lose money, including your entire investment.
Past performance does not guarantee future results.
Always:
- Use appropriate risk management
- Never risk more than you can afford to lose
- Test the strategy on historical data (backtesting) before using real money
- Start with small position sizes or paper trading
- Understand that no strategy works 100% of the time
- Consider market conditions, news events, and other factors
- Keep a trading journal to learn and improve
The author and contributors are NOT responsible for any losses incurred from
using this strategy. Trading decisions are your own responsibility. Profits
are NOT guaranteed, and losses are possible.
LICENSE 📄
----------
This code is open source and available for modification. You are free to use,
modify, and distribute this strategy. If you republish or share a modified
version, please kindly mention the original author.
================================================================================
Account GuardianAccount Guardian: Dynamic Risk/Reward Overlay
Introduction
Account Guardian is an open-source indicator for TradingView designed to help traders evaluate trade setups before entering positions. It automatically calculates Risk-to-Reward ratios based on market structure, displays visual Stop Loss and Take Profit zones, and provides real-time position sizing recommendations.
The indicator addresses a fundamental question every trader should ask before entering a trade: "Does this setup make mathematical sense?" Account Guardian answers this question visually and numerically, helping traders avoid impulsive entries with poor risk profiles.
Core Functionality
Account Guardian performs four primary functions:
Detects swing highs and swing lows to identify logical stop loss placement levels
Calculates Risk-to-Reward ratios for both long and short setups in real-time
Displays visual SL/TP zones on the chart for immediate trade planning
Computes position sizing based on your account size and risk tolerance
The goal is to provide traders with instant feedback on whether a potential trade meets their minimum risk/reward criteria before committing capital.
How It Works
Swing Detection
The indicator uses pivot point detection to identify recent swing highs and swing lows on the chart. These swing points serve as logical areas for stop loss placement:
For Long Trades: The most recent swing low becomes the stop loss level. Price breaking below this level would invalidate the bullish thesis.
For Short Trades: The most recent swing high becomes the stop loss level. Price breaking above this level would invalidate the bearish thesis.
The swing detection lookback period is configurable, allowing you to adjust sensitivity based on your trading timeframe and style.
It automatically adjusts the tp and sl when it is applied to your chart so it is always moving up and down!
Risk/Reward Calculation
Once swing levels are identified, the indicator calculates:
Entry Price: Current close price (where you would enter)
Stop Loss: Recent swing low (for longs) or swing high (for shorts)
Risk: Distance from entry to stop loss
Take Profit: Entry plus (Risk × Target Multiplier)
R:R Ratio: Reward divided by Risk
The R:R ratio is then evaluated against your configured thresholds to determine if the setup is valid, marginal, or poor.
Visual Elements
SL/TP Zones
When enabled, the indicator draws colored boxes on the chart showing:
Red Zone: Stop Loss area - the region between your entry and stop loss
Green/Gold/Red Zone: Take Profit area - colored based on R:R quality
The color coding provides instant visual feedback:
Green: R:R meets or exceeds your "Good R:R" threshold (default 3:1)
Gold: R:R meets minimum threshold but below "Good" (between 2:1 and 3:1)
Red: R:R below minimum threshold - setup should be avoided
Swing Point Markers
Small circles mark detected swing points on the chart:
Green circles: Swing lows (potential support / long SL levels)
Red circles: Swing highs (potential resistance / short SL levels)
Dashboard Panel
The dashboard in the top-right corner displays comprehensive trade planning information:
R:R Row: Current Risk-to-Reward ratio for long and short setups
Status Row: VALID, OK, BAD, or N/A based on R:R thresholds
Stop Loss Row: Exact price level for stop loss placement
Take Profit Row: Exact price level for take profit placement
Pos Size Row: Recommended position size based on your risk parameters
Risk $ Row: Dollar amount at risk per trade
Position Sizing Logic
The indicator calculates position size using the formula:
Position Size = Risk Amount / Risk per Unit
Where:
Risk Amount = Account Size × (Risk Percentage / 100)
Risk per Unit = Entry Price - Stop Loss Price
For example, with a $10,000 account risking 1% per trade ($100), if your entry is at 100 and stop loss at 98 (risk of 2 per unit), your position size would be 50 units.
Input Parameters
Swing Detection:
Swing Lookback: Number of bars to look back for pivot detection (default: 10). Higher values find more significant swing points but may be slower to update.
Target Multiplier: Multiplier applied to risk to calculate take profit distance (default: 2). A value of 2 means TP is 2× the distance of SL from entry.
Risk/Reward Thresholds:
Minimum R:R: Minimum acceptable Risk-to-Reward ratio (default: 2.0). Setups below this show as "BAD" in red.
Good R:R: Threshold for excellent setups (default: 3.0). Setups at or above this show as "VALID" in green.
Account Settings:
Account Size ($): Your trading account size in dollars (default: 10,000). Used for position sizing calculations.
Risk Per Trade (%): Percentage of account to risk per trade (default: 1.0%). Professional traders typically risk 0.5-2% per trade.
Display:
Show SL/TP Zones: Toggle visibility of the colored zone boxes on chart (default: enabled)
Show Dashboard: Toggle visibility of the information panel (default: enabled)
Analyze Direction: Choose to analyze Long only, Short only, or Both directions (default: Both)
How to Use This Indicator
Basic Workflow:
Add the indicator to your chart
Configure your account size and risk percentage in the settings
Set your minimum and good R:R thresholds based on your trading rules
Look at the dashboard to see current R:R for potential long and short entries
Only consider trades where the status shows "VALID" or at minimum "OK"
Use the displayed SL and TP levels for your order placement
Use the position size recommendation to determine lot/contract size
Interpreting the Dashboard:
VALID (Green): Excellent setup - R:R meets your "Good" threshold. This is the ideal scenario for taking a trade.
OK (Gold): Acceptable setup - R:R meets minimum but isn't optimal. Consider taking if other confluence factors align.
BAD (Red): Poor setup - R:R below minimum threshold. Avoid this trade or wait for better entry.
N/A (Gray): Cannot calculate - usually means no valid swing point detected yet.
Best Practices:
Use this indicator as a filter, not a signal generator. It tells you IF a trade makes sense, not WHEN to enter.
Combine with your existing entry strategy - use Account Guardian to validate setups from other analysis.
Adjust the swing lookback based on your timeframe. Lower timeframes may need smaller lookback values.
Be honest with your account size input - accurate position sizing requires accurate inputs.
Consider the target multiplier carefully. Higher multipliers mean larger potential reward but lower probability of hitting TP.
Alerts
The indicator includes four alert conditions:
Good Long Setup: Triggers when long R:R reaches or exceeds your "Good R:R" threshold
Good Short Setup: Triggers when short R:R reaches or exceeds your "Good R:R" threshold
Bad Long Setup: Triggers when long R:R falls below your minimum threshold
Bad Short Setup: Triggers when short R:R falls below your minimum threshold
These alerts can help you monitor multiple charts and get notified when favorable setups appear.
Technical Implementation
The indicator is built using Pine Script v6 and includes:
Pivot-based swing detection using ta.pivothigh() and ta.pivotlow()
Dynamic box drawing for visual SL/TP zones
Table-based dashboard for clean information display
Color-coded visual feedback system
Persistent variable tracking for swing levels
Code Structure:
// Swing Detection
float swingHi = ta.pivothigh(high, swingLen, swingLen)
float swingLo = ta.pivotlow(low, swingLen, swingLen)
// R:R Calculation for Long
float longSL = recentSwingLo
float longRisk = entry - longSL
float longTP = entry + (longRisk * targetMult)
float longRR = (longTP - entry) / longRisk
// Position Sizing
float riskAmount = accountSize * (riskPct / 100)
float posSize = riskAmount / longRisk
Limitations
The indicator uses historical swing points which may not always represent optimal SL placement for your specific strategy
Position sizing assumes you can trade fractional units - adjust accordingly for instruments with minimum lot sizes
R:R calculations assume linear price movement and don't account for gaps or slippage
The indicator doesn't predict price direction - it only evaluates the mathematical viability of a setup
Swing detection has inherent lag due to the lookback period required for pivot confirmation
Recommended Settings by Trading Style
Scalping (1-5 minute charts):
Swing Lookback: 5-8
Target Multiplier: 1-2
Minimum R:R: 1.5
Good R:R: 2.0
Day Trading (15-60 minute charts):
Swing Lookback: 8-12
Target Multiplier: 2
Minimum R:R: 2.0
Good R:R: 3.0
Swing Trading (4H-Daily charts):
Swing Lookback: 10-20
Target Multiplier: 2-3
Minimum R:R: 2.5
Good R:R: 4.0
Why Risk/Reward Matters
Many traders focus solely on win rate, but profitability depends on the combination of win rate AND risk/reward ratio. Consider these scenarios:
50% win rate with 1:1 R:R = Breakeven (before costs)
50% win rate with 2:1 R:R = Profitable
40% win rate with 3:1 R:R = Profitable
60% win rate with 1:2 R:R = Losing money
Account Guardian helps ensure you only take trades where the math works in your favor, even if you're wrong more often than you're right.
Disclaimer
This indicator is provided for educational and informational purposes only. It is not intended as financial, investment, trading, or any other type of advice or recommendation.
Trading involves substantial risk of loss and is not suitable for all investors. The calculations provided by this indicator are based on historical price data and mathematical formulas that may not accurately predict future price movements.
Position sizing recommendations are estimates based on user inputs and should be verified before placing actual trades. Always consider factors such as leverage, margin requirements, and broker-specific rules when determining actual position sizes.
The Risk-to-Reward ratios displayed are theoretical calculations based on swing point detection. Actual trade outcomes will vary based on market conditions, execution quality, and other factors not captured by this indicator.
Past performance does not guarantee future results. Users should thoroughly test any trading approach in a demo environment before risking real capital. The authors and publishers of this indicator are not responsible for any losses or damages arising from its use.
Always consult with a qualified financial advisor before making investment decisions.
Unmitigated MTF High Low Pro - Cave Diving Bookmap Heatmap Plot
Unmitigated MTF High Low Pro - Cave Diving Bookmap Heatmap Plot
---
## 📖 Table of Contents
1. (#what-this-indicator-does)
2. (#core-concepts)
3. (#visual-components)
4. (#the-cave-diving-framework)
5. (#how-to-use-it-for-trading)
6. (#settings--customization)
7. (#best-practices)
8. (#common-scenarios)
---
## What This Indicator Does
The **Unmitigated MTF High Low v2.0** tracks unmitigated (untouch) high and low levels across multiple timeframes, helping you identify key support and resistance zones that the market hasn't revisited yet. Think of it as a sophisticated memory system for price action - it remembers where price has been, and more importantly, where it *hasn't been back to*.
### Why "Unmitigated" Matters
In futures trading, especially on instruments like NQ and ES, the market has a tendency to revisit levels where liquidity was left behind. An "unmitigated" level is one that hasn't been touched since it was formed. These levels often act as magnets for price, and understanding their age and proximity gives you a significant edge in:
- **Entry timing** - Waiting for price to approach tested levels
- **Exit planning** - Taking profits before ancient resistance/support
- **Risk management** - Avoiding entries when approaching multiple old levels
- **Liquidity mapping** - Visualizing where orders likely cluster
---
## Core Concepts
### 1. **Sessions & Age**
The indicator uses **New York trading sessions** (6:00 PM to 5:59 PM NY time) as the primary time measurement. This aligns with how futures markets naturally segment their activity.
**Age Categories:**
- 🟢 **New (0-1 sessions)** - Fresh levels, recently formed
- 🟡 **Medium (2-3 sessions)** - Tested by time, gaining significance
- 🔴 **Old (4-6 sessions)** - Highly significant, survived multiple days
- 🟣 **Ancient (7+ sessions)** - Extreme significance, major support/resistance
The longer a level remains unmitigated, the more significant it becomes. Think of it like compound interest - time adds weight to these zones.
### 2. **Multi-Timeframe Tracking**
You can set the indicator to track high/low levels from any timeframe (default is 15 minutes). This means you're watching for unmitigated 15-minute highs and lows while trading on, say, a 1-minute or 5-minute chart.
**Why this matters:**
- Higher timeframe levels have more weight
- You can see multiple timeframe structure simultaneously
- Helps you avoid fighting larger timeframe momentum
### 3. **Mitigation**
A level becomes "mitigated" (deactivated) when price touches it:
- **High levels** are mitigated when price reaches or exceeds them
- **Low levels** are mitigated when price reaches or goes below them
Once mitigated, the level disappears from view. The indicator only shows you the untouch levels that still matter.
---
## Visual Components
### 📊 The Dashboard Table
Located in the corner of your chart (configurable), the table shows:
```
┌─────────┬───────────┬────────┬─────┬───────┐
│ Level │ Price │ Points │ Age │ % │
├─────────┼───────────┼────────┼─────┼───────┤
│ ↑↑↑↑↑ │ 21,450.25 │ +45.50 │ 8 │ +0.21%│ ← 5th High (Ancient)
│ ↑↑↑↑ │ 21,430.00 │ +25.25 │ 5 │ +0.12%│ ← 4th High (Old)
│ ↑↑↑ │ 21,420.50 │ +15.75 │ 3 │ +0.07%│ ← 3rd High (Medium)
│ ↑↑ │ 21,412.00 │ +7.25 │ 1 │ +0.03%│ ← 2nd High (New)
│ ↑ ⚠️ │ 21,408.25 │ +3.50 │ 0 │ +0.02%│ ← 1st High (Proximity Alert!)
├─────────┼───────────┼────────┼─────┼───────┤
│ 15 mins │ 🟢 │ Δ 8.75 │ 2U │ │ ← Status Row
├─────────┼───────────┼────────┼─────┼───────┤
│ ↓ ⚠️ │ 21,399.50 │ -5.25 │ 0 │ -0.02%│ ← 1st Low (Proximity Alert!)
│ ↓↓ │ 21,395.00 │ -9.75 │ 2 │ -0.05%│ ← 2nd Low (Medium)
│ ↓↓↓ │ 21,385.25 │ -19.50 │ 4 │ -0.09%│ ← 3rd Low (Old)
│ ↓↓↓↓ │ 21,370.00 │ -34.75 │ 6 │ -0.16%│ ← 4th Low (Old)
│ ↓↓↓↓↓ │ 21,350.75 │ -54.00 │ 9 │ -0.25%│ ← 5th Low (Ancient)
├─────────┼───────────┼────────┼─────┼───────┤
│ 📊 15↑ / 12↓ │ ← Statistics (optional)
└─────────┴───────────┴────────┴─────┴───────┘
```
**Reading the Table:**
- **Level Column**: Number of arrows indicates position (1-5), color shows age
- **Price**: The actual price level
- **Points**: Distance from current price (+ for highs, - for lows)
- **Age**: Number of full sessions since creation
- **%**: Percentage distance from current price
- **⚠️**: Proximity alert - price is within threshold distance
- **Status Row**: Shows timeframe, direction (🟢 bullish/🔴 bearish), tunnel width (Δ), and Strat pattern
### 📈 Visual Elements on Chart
**1. Level Lines**
- Horizontal lines showing each unmitigated level
- **Color-coded by age**: Bright colors = new, darker = older, deep purple/teal = ancient
- **Line style**: Customizable (solid, dashed, dotted)
- Automatically turn **yellow** when price gets close (proximity alert)
**2. Price Labels**
- Show the exact price and age: "21,450.25 (8d)"
- Fixed at small size for clean readability
- Positioned with configurable offset from current bar
**3. Bands (Optional)**
- Shaded zones between pairs of unmitigated levels
- Default: Between 1st and 2nd levels (the "tunnel")
- Can switch to 1st-3rd, 2nd-3rd, or disable entirely
- **Upper band** (pink/maroon) - Between unmitigated highs
- **Lower band** (blue/teal) - Between unmitigated lows
- These represent the "no man's land" or consolidation zones
---
## The Cave Diving Framework
This indicator is designed around the **Cave Diving Trading Framework** - a psychological and technical approach that maps cave diving safety protocols to futures trading risk management.
### 🤿 The Core Metaphor
**Cave diving has clear danger zones based on depth and overhead environment. Your trading should too.**
#### Shallow Water (New Levels, 0-1 Sessions)
- **Light**: Bright colors (bright red highs, bright green lows)
- **Psychology**: Fresh territory, recently tested
- **Trading**: Be aware but not overly concerned
- **Cave Diving Parallel**: You can see the surface, easy exit
#### Penetration Depth (Medium Levels, 2-3 Sessions)
- **Light**: Medium intensity colors
- **Psychology**: Building significance, market memory forming
- **Trading**: Start respecting these levels for entries/exits
- **Cave Diving Parallel**: Deeper in, need to track your line back
#### Deep Dive Zone (Old Levels, 4-6 Sessions)
- **Light**: Dark colors (deep maroon, dark blue)
- **Psychology**: Highly tested support/resistance
- **Trading**: Major decision points, plan accordingly
- **Cave Diving Parallel**: Significant overhead, careful navigation required
#### Overhead Environment (Ancient Levels, 7+ Sessions)
- **Light**: Very dark, purple/deep teal
- **Psychology**: Extreme caution required, major liquidity zones
- **Trading**: These are your "turn back" signals - don't fight ancient levels
- **Cave Diving Parallel**: Maximum danger, no room for error
### 🎯 The Proximity Alert System
Just like a cave diver's depth gauge that warns at critical thresholds, the proximity alerts (⚠️) tell you when you're entering a danger zone. When price gets within your configured threshold (default 5 points), the indicator:
- Highlights the level in **yellow** on the chart
- Shows **⚠️** in the table
- Signals: "You're entering a high-significance zone - adjust your position accordingly"
This prevents the trading equivalent of going deeper into a cave without checking your air supply.
---
## How to Use It for Trading
### 🎯 Entry Strategies
**1. The "Bounce Setup" (Mean Reversion)**
- Wait for price to approach an old or ancient unmitigated level
- Look for confluence: multiple levels nearby, bands narrowing
- Enter when price shows rejection (reversal candle patterns)
- **Example**: Price drops to a 6-session-old low, shows bullish engulfing → Long entry
**2. The "Break and Retest" (Trend Following)**
- Wait for price to break through an unmitigated level (mitigates it)
- Enter on the retest of the newly broken level
- **Example**: Price breaks above 4-session-old high → Wait for pullback to that level → Long entry
**3. The "Tunnel Trade" (Range Trading)**
- When bands are active, trade the range between 1st-2nd levels
- Short near upper band resistance, long near lower band support
- Exit at opposite side or when bands break
### 🚨 Risk Management Rules
**The Ancient Level Rule**
> Never fight ancient levels (7+ sessions). If you're long and approaching an ancient high, take profits. If you're short and approaching an ancient low, take profits.
These levels have survived a full trading week without being touched - there's likely significant liquidity and institutional interest there.
**The Proximity Exit Rule**
> When you see ⚠️ proximity alerts on multiple levels above/below your position, tighten stops or scale out.
This is your "overhead environment" warning. You're in dangerous territory.
**The New Level Filter**
> Be cautious taking positions based solely on new levels (0-1 sessions). Wait for them to age or combine with other confluence.
Fresh levels haven't been tested by time. They're like unconfirmed support/resistance.
### 📊 Reading Market Structure
**Bullish Structure (🟢 in status row)**
- Unmitigated lows are aging and holding
- Price respecting the lower band
- Old lows below acting as strong support
- **Bias**: Look for long entries at lower levels
**Bearish Structure (🔴 in status row)**
- Unmitigated highs are aging and holding
- Price respecting the upper band
- Old highs above acting as strong resistance
- **Bias**: Look for short entries at higher levels
**The Tunnel Compression**
- When the Δ (delta) in the status row is small, levels are tight
- This often precedes a breakout
- **Trading**: Wait for breakout direction, then trade the break
### 🔄 Strat Integration
The indicator shows Strat patterns in the status row:
- **1** - Inside bar (consolidation)
- **2U** - Broke high only (bullish)
- **2D** - Broke low only (bearish)
- **3** - Broke both (wide range, volatility)
Use these with the unmitigated levels:
- **2U near old high** → Potential resistance, watch for rejection
- **2D near old low** → Potential support, watch for bounce
- **3 pattern** → High volatility, respect wider stops
---
## Settings & Customization
### 📅 Session & Timeframe Settings
**HL Interval** (Default: 15 minutes)
- The timeframe for high/low calculation
- **Lower (1m, 5m)**: More levels, more noise, good for scalping
- **Higher (30m, 1H, 4H)**: Fewer levels, stronger significance, good for swing trading
- **Recommendation for NQ/ES**: 15m or 30m for day trading, 1H for swing trading
**Session Age Threshold** (Default: 2)
- How many sessions before a level is considered "old"
- Lower = more levels classified as old
- Higher = stricter definition of significance
### 📊 Level Display Options
**Show Level Lines**
- Toggle: Display horizontal lines for each level
- **Turn off** if you prefer a cleaner chart and only want the table
**Show Level Labels**
- Toggle: Display price labels on the chart
- **Turn off** for minimal visual clutter
**Label Offset**
- Distance (in bars) from current price bar to place labels
- Increase if labels overlap with price action
**Level Line Width & Style**
- Customize visual appearance
- **Thin solid**: Minimal distraction
- **Thick dashed**: High visibility
### 🎨 Age-Based Color Coding
Customize colors for each age category (high and low separately):
- **New (0-1 sessions)**: Default bright red/green
- **Medium (2-3 sessions)**: Default medium intensity
- **Old (4+ sessions)**: Default dark red/blue
- **Ancient (7+ sessions)**: Default deep purple/teal
**Color Strategy Tips:**
- Keep ancient levels in highly contrasting colors
- Use opacity (transparency) if you want subtler lines
- Match your chart's color scheme for aesthetic coherence
### 🎯 Band Settings
**Band Mode**
- **1st-2nd** (Default): The primary "tunnel" between most recent levels
- **1st-3rd**: Wider band, more room for price action
- **2nd-3rd**: Band between less immediate levels
- **Disabled**: No bands, lines only
**Band Colors & Borders**
- Customize fill color and border separately
- **Tip**: Keep bands very transparent (90-95% transparency) to avoid obscuring price action
### ⚠️ Proximity Alert Settings
**Enable Proximity Alerts**
- Toggle: Turn on/off the warning system
- When enabled, levels within threshold distance show ⚠️ and turn yellow
**Alert Threshold** (Default: 5.0 points)
- Distance in points to trigger the alert
- **For NQ**: 5-10 points is reasonable
- **For ES**: 2-5 points is reasonable
- **For MES/MNQ**: Scale down proportionally
**Alert Highlight Color**
- The color lines/labels turn when proximity is triggered
- Default: Yellow (high visibility)
### 📋 Table Settings
**Show Table**
- Toggle: Display the dashboard table
**Table Location**
- Top Left, Top Right, Bottom Left, Bottom Right
- Choose based on your chart layout and other indicators
**Text Size**
- Tiny, Small, Normal, Large
- **Recommendation**: Normal for 1080p monitors, Small for 4K
**Show % Distance**
- Toggle: Add percentage distance column to table
- Useful for comparing relative distances across different price ranges
**Show Statistics Row**
- Toggle: Show total count of unmitigated highs/lows
- Format: "📊 15↑ / 12↓" (15 unmitigated highs, 12 unmitigated lows)
- Useful for gauging overall market structure
### ⚡ Performance Settings
**Enable Level Cleanup**
- Automatically remove very old levels to maintain performance
- **Keep on** unless you want unlimited history
**Max Lookback Levels** (Default: 10,000)
- Maximum number of levels to track
- 10,000 ≈ 6+ months of 15-minute bars
- **Increase** if you want more history
- **Decrease** if experiencing performance issues
**Max Boxes Per Band** (Default: 245)
- TradingView limit is 500 total boxes
- With 2 bands, 245 each = 490 total (safe maximum)
---
## Best Practices
### 🎯 Position Management
**1. Scaling In Near Old Levels**
```
Price approaching 5-session-old low:
- First position: 30% size at proximity alert (⚠️)
- Second position: 40% size at exact level
- Third position: 30% size if it shows strong rejection
```
**2. Scaling Out Near Ancient Levels**
```
Holding long position, approaching 8-session-old high:
- Exit 50% at proximity alert (⚠️)
- Exit 30% at exact level
- Trail stop on remaining 20%
```
### 🧠 Trading Psychology Integration
Drawing from principles in *The Mountain Is You*, this indicator helps you:
**1. Recognize Self-Sabotage Patterns**
- **The Premature Entry**: Entering before price reaches your planned level
- **Solution**: Set alerts at unmitigated levels, wait for proximity warnings
- **The Profit-Taking Problem**: Exiting too early from fear
- **Solution**: Identify the next unmitigated level and commit to holding until proximity alert
- **The Loss Holding**: Refusing to exit losing trades
- **Solution**: When price breaks through and mitigates your entry level, it's telling you the structure changed
**2. Building Better Habits**
The color-coded age system trains your brain to:
- Respect levels that have proven themselves over time
- Distinguish between noise (new levels) and structure (old levels)
- Make decisions based on objective data, not fear or greed
**3. Emotional Regulation**
The proximity alerts serve as:
- **Circuit breakers** - Forcing you to re-evaluate before dangerous zones
- **Permission to act** - Giving you objective signals to exit without second-guessing
- **Validation** - Confirming when you're in alignment with market structure
### 📝 Pre-Market Routine
**Daily Setup Checklist:**
1. ✅ Identify the 3 nearest unmitigated highs above current price
2. ✅ Identify the 3 nearest unmitigated lows below current price
3. ✅ Note which are ancient (7+) - these are your "no-go" zones
4. ✅ Check the tunnel width (Δ in status row) - tight or wide?
5. ✅ Set alerts at the 1st high and 1st low for proximity warnings
6. ✅ Plan: "If we go up, I exit at ___. If we go down, I enter at ___."
### 🔄 Timeframe Confluence
**Multi-Timeframe Strategy:**
Run the indicator on **three instances**:
- **15-minute** (short-term structure)
- **1-hour** (intermediate structure)
- **4-hour** (major structure)
**Strong Setup**: When all three timeframes show unmitigated levels converging at the same price zone.
**Example:**
- 15m: Old low at 21,400
- 1H: Ancient low at 21,398
- 4H: Ancient low at 21,395
- **Result**: 21,395-21,400 is a monster support zone
### ⚠️ What This Indicator Doesn't Do
**Not a Crystal Ball**
- It doesn't predict where price will go
- It shows you where price *hasn't been* and how long it's been avoided
- The trading decisions are still yours
**Not an Entry Signal Generator**
- It provides context and structure
- You need to combine it with your entry methodology (price action, indicators, order flow, etc.)
**Not Foolproof**
- Ancient levels get broken
- Proximity alerts can trigger early in strong trends
- The market doesn't "owe" you a reversal at any level
---
## Common Scenarios
### Scenario 1: "Level Cluster Ahead"
**Situation**: You're long at 21,400. The table shows:
- 1st High: 21,425 (2 sessions old)
- 2nd High: 21,428 (3 sessions old)
- 3rd High: 21,435 (6 sessions old)
**Interpretation**: There's a resistance cluster just 25-35 points away. The 6-session-old level is particularly significant.
**Action**:
- Set first profit target at 21,420 (before the cluster)
- Set second target at 21,426 (between 1st and 2nd)
- Trail remaining position, but be ready to exit on rejection at 21,435
**Cave Diving Analogy**: You're approaching an overhead section with limited clearance. Lighten your load (reduce position) before entering.
---
### Scenario 2: "Ancient Level Approaches"
**Situation**: The market is grinding higher. You see ⚠️ appear next to a 9-session-old high at 21,500.
**Interpretation**: This level has survived over a week without being touched. Massive potential liquidity zone.
**Action**:
- If long, this is your absolute exit zone. Take profits before or at level.
- If looking to short, wait for clear rejection (price taps and reverses)
- Don't try to buy the breakout until it clearly breaks and retests
**Cave Diving Analogy**: Your dive computer is beeping - you've reached your planned turn-back depth. No matter how interesting it looks ahead, honor your plan.
---
### Scenario 3: "Mitigated Levels Create New Structure"
**Situation**: Price breaks and mitigates the 1st High. The previous 2nd High becomes the new 1st High.
**Interpretation**: The structure just shifted. What was the 2nd level is now most relevant.
**Action**:
- Watch how price reacts to the newly-mitigated level
- If it holds below (acts as resistance), bearish
- If it reclaims and holds above (acts as support), bullish
- The NEW 1st High is your next target/resistance
**Cave Diving Analogy**: You've passed through a restriction - the cave layout ahead is different now. Update your mental map.
---
### Scenario 4: "Tight Tunnel, Upcoming Breakout"
**Situation**: The Δ in the status row shows 3.25 points (very tight). Bands are converging.
**Interpretation**: Price is consolidating between very close unmitigated levels. Breakout likely.
**Action**:
- Don't try to predict direction
- Set alerts above 1st High and below 1st Low
- When break occurs, trade the retest
- Expect volatility - use wider stops
**Cave Diving Analogy**: You're in a narrow passage. Movement will be sudden and directional once it starts.
---
### Scenario 5: "Imbalanced Structure"
**Situation**: The statistics row shows "📊 22↑ / 7↓"
**Interpretation**: There are many more unmitigated highs than lows. This suggests:
- Price has been declining (hitting lows, leaving highs behind)
- Potential bullish reversal zone (lots of overhead supply mitigated)
- Or continued bearish structure (resistance everywhere above)
**Action**:
- Look at the age of those 22 highs
- If mostly new (0-2 sessions): Just a recent downmove, not significant yet
- If many old/ancient: Strong overhead resistance, be cautious on longs
- Compare to price action: Is price respecting the remaining lows?
**Cave Diving Analogy**: You've swam deeper than your starting point - most of your markers are above you now. Are you planning the ascent or going deeper?
---
## Final Thoughts: The Philosophy
This indicator is built on a simple but powerful principle: **The market has memory, and that memory has weight.**
Every unmitigated level represents:
- Liquidity left behind
- Orders waiting to be filled
- Institutional interest potentially parked
- Psychological significance for participants
The longer a level remains unmitigated, the more "charged" it becomes. When price finally revisits it, something significant usually happens - either a strong reversal or a definitive break.
Your job as a trader isn't to predict which outcome will occur. Your job is to:
1. **Recognize** when you're approaching these charged zones
2. **Respect** them by adjusting position size and risk
3. **React** appropriately based on how price behaves at them
4. **Remember** that ancient levels (like ancient wisdom) deserve extra reverence
The Cave Diving Framework embedded in this indicator serves as a constant reminder: Trading, like cave diving, requires rigorous respect for environmental hazards, meticulous planning, and the discipline to turn back when your limits are reached.
**Every proximity alert is the market asking you**: *"Do you really want to go deeper?"*
Sometimes the answer is yes - when your setup, confluence, and risk management all align.
Often, the answer should be no - and that's the trader avoiding the accident that would have happened to the gambler.
---
### 🎯 Quick Reference Card
**Color System:**
- 🟢 Bright colors = New (0-1 sessions) = Shallow water
- 🟡 Medium colors = Medium (2-3 sessions) = Penetration depth
- 🔴 Dark colors = Old (4-6 sessions) = Deep dive zone
- 🟣 Deep dark colors = Ancient (7+ sessions) = Overhead environment
**Symbols:**
- ↑ ↑↑ ↑↑↑ ↑↑↑↑ ↑↑↑↑↑ = High levels (1st through 5th)
- ↓ ↓↓ ↓↓↓ ↓↓↓↓ ↓↓↓↓↓ = Low levels (1st through 5th)
- ⚠️ = Proximity alert (danger zone)
- 🟢 = Bullish structure
- 🔴 = Bearish structure
- Δ = Tunnel width (distance between 1st high and 1st low)
**Critical Rules:**
1. Never fight ancient levels (7+ sessions)
2. Respect proximity alerts (⚠️)
3. Scale out near old/ancient resistance
4. Wait for confluence when entering
5. Let mitigated levels prove their new role
---
**Remember**: The indicator gives you structure. The trading edge comes from your discipline in respecting that structure.
Trade safe, trade smart, and always know your exit before your entry. 🎯
---
*"You don't become your best self by denying your patterns. You become your best self by recognizing them, understanding them, and choosing differently." - Adapted from The Mountain Is You*
In trading: You don't become profitable by ignoring market structure. You become profitable by recognizing it, understanding it, and choosing your entries accordingly.
Wyckoff Method - Comprehensive Analysis# WYCKOFF METHOD - QUICK REFERENCE CHEAT SHEET
## 🟢 STRONGEST BUY SIGNALS
### 1. SPRING ⭐⭐⭐⭐⭐
- **What:** False breakdown below support on LOW volume
- **Look for:** Quick reversal, close above support
- **Entry:** When price closes back in range
- **Stop:** Below spring low
- **Target:** Top of range minimum
### 2. SOS (Sign of Strength) ⭐⭐⭐⭐
- **What:** Breakout above resistance on HIGH volume
- **Look for:** Wide spread up bar, strong close
- **Entry:** On breakout or wait for LPS pullback
- **Stop:** Below range top
- **Target:** Height of range projected up
### 3. SHAKEOUT ⭐⭐⭐⭐
- **What:** Sharp move below support with HIGH volume, immediate reversal
- **Look for:** Long lower wick, closes strong
- **Entry:** When price reclaims support
- **Stop:** Below shakeout low
- **Target:** Previous resistance
---
## 🔴 STRONGEST SELL SIGNALS
### 1. UTAD (Upthrust After Distribution) ⭐⭐⭐⭐⭐
- **What:** False breakout above resistance, quick rejection
- **Look for:** Spike high, weak close, often high volume
- **Entry:** When price closes back in range
- **Stop:** Above UTAD high
- **Target:** Bottom of range minimum
### 2. SOW (Sign of Weakness) ⭐⭐⭐⭐
- **What:** Breakdown below support on HIGH volume
- **Look for:** Wide spread down bar, weak close
- **Entry:** On breakdown or wait for LPSY rally
- **Stop:** Above range bottom
- **Target:** Height of range projected down
### 3. UPTHRUST ⭐⭐⭐⭐
- **What:** Move above resistance on LOW volume, weak close
- **Look for:** Long upper wick, closes in lower half
- **Entry:** When resistance holds
- **Stop:** Above upthrust high
- **Target:** Support level
---
## 📊 ACCUMULATION PHASES (Bottom Formation)
```
PHASE A: Stopping the Downtrend
├─ PS (Preliminary Support) - First buying
├─ SC (Selling Climax) - Panic bottom ⚠️ KEY EVENT
├─ AR (Automatic Rally) - Relief bounce
└─ ST (Secondary Test) - Retest SC low
PHASE B: Building the Cause
├─ Trading range forms
├─ Multiple tests of support
├─ Volume decreasing
└─ Absorption occurring
PHASE C: The Test
├─ SPRING - False breakdown ⚠️ KEY EVENT
└─ TEST - Support holds on low volume
PHASE D: Dominance Emerges
├─ SOS - Breakout ⚠️ KEY EVENT
├─ LPS - Last Point of Support (pullback)
└─ BU - Backup
PHASE E: Markup
└─ New uptrend, strong momentum
```
**Background Color:** Blue → Green (getting brighter)
**Action:** Buy in Phase C/D, Hold through Phase E
---
## 📊 DISTRIBUTION PHASES (Top Formation)
```
PHASE A: Stopping the Uptrend
├─ PSY (Preliminary Supply) - First selling
├─ BC (Buying Climax) - Euphoric top ⚠️ KEY EVENT
├─ AR (Automatic Reaction) - Sharp drop
└─ ST (Secondary Test) - Retest BC high
PHASE B: Building the Cause
├─ Trading range forms
├─ Multiple tests of resistance
├─ Demand being absorbed
└─ Volume patterns change
PHASE C: The Test
└─ UTAD - False breakout ⚠️ KEY EVENT
PHASE D: Dominance Emerges
├─ SOW - Breakdown ⚠️ KEY EVENT
└─ LPSY - Last Point of Supply (rally to exit)
PHASE E: Markdown
└─ New downtrend, strong selling
```
**Background Color:** Orange → Red (getting darker)
**Action:** Sell in Phase C/D, Stay out during Phase E
---
## 💰 VOLUME SPREAD ANALYSIS (VSA)
| Signal | Meaning | Color | Implication |
|--------|---------|-------|-------------|
| **ND** (No Demand) | Up bar, LOW volume | 🟠 Orange | Weakness - uptrend ending |
| **NS** (No Supply) | Down bar, LOW volume | 🔵 Blue | Strength - downtrend ending |
| **SV** (Stopping Volume) | VERY HIGH volume, narrow spread | 🟣 Purple | Potential reversal |
| **UT** (Upthrust) | Above resistance, LOW vol, weak close | 🔴 Red | Sell signal |
| **SO** (Shakeout) | Below support, HIGH vol, strong close | 🟢 Green | Buy signal |
---
## 🎯 VOLUME INTERPRETATION
| Volume Level | Bar Color | Meaning |
|--------------|-----------|---------|
| **VERY HIGH** (>2x average) | Dark Green/Red | Climax, potential reversal |
| **HIGH** (>1.5x average) | Light Green/Red | Strong interest |
| **NORMAL** | Gray | Average trading |
| **LOW** (<0.7x average) | Faint Gray | Testing, no interest |
---
## ⚖️ EFFORT vs RESULT
| Scenario | Volume | Spread | Meaning |
|----------|--------|--------|---------|
| **High Effort, Low Result** | HIGH | Narrow | ⚠️ Potential reversal |
| **Low Effort, High Result** | LOW | Wide | ⚠️ Trend weakening |
| **High Effort, High Result** | HIGH | Wide | ✅ Strong trend |
| **Low Effort, Low Result** | LOW | Narrow | 😴 No interest |
---
## 📏 TRADING RULES
### ✅ DO:
- ✅ Wait for confirmation before entering
- ✅ Trade in direction of higher timeframe
- ✅ Use springs and UTAD as primary signals
- ✅ Measure trading range for targets
- ✅ Place stops outside the range
- ✅ Look for volume confirmation
- ✅ Check multiple timeframes
- ✅ Focus on Phase C and D events
### ❌ DON'T:
- ❌ Buy during Phase E Markdown
- ❌ Sell during Phase E Markup
- ❌ Trade against major trend
- ❌ Ignore volume signals
- ❌ Enter without clear stop loss
- ❌ Trade every signal
- ❌ Use on very low timeframes without practice
- ❌ Ignore the context
---
## 🎪 COMPOSITE OPERATOR (Smart Money)
### 💰 Green Money Symbol (Bottom)
- **Meaning:** Institutions accumulating
- **Location:** Demand zones, springs, tests
- **Action:** Follow the smart money - buy
### 💰 Red Money Symbol (Top)
- **Meaning:** Institutions distributing
- **Location:** Supply zones, UTAD, weak rallies
- **Action:** Follow the smart money - sell
---
## 📍 SUPPLY & DEMAND ZONES
### 🟢 Demand Zones (Green Boxes)
- **Created at:** SC, Spring, Shakeout
- **Represents:** Where smart money bought
- **Action:** Look for bounces
### 🔴 Supply Zones (Red Boxes)
- **Created at:** BC, UTAD, Upthrust
- **Represents:** Where smart money sold
- **Action:** Look for rejections
---
## 🎯 TARGET CALCULATION
### Measured Move Method
```
1. Measure trading range height
Example: Top at 120, Bottom at 100 = 20 points
2. Add to breakout point (accumulation)
Breakout at 120 + 20 = Target: 140
3. Or subtract from breakdown (distribution)
Breakdown at 100 - 20 = Target: 80
```
### Multiple Targets
- **Conservative:** 1x range height (100% probability reached)
- **Moderate:** 1.5x range height (70% probability)
- **Aggressive:** 2x range height (40% probability)
---
## ⏰ TIMEFRAME GUIDE
| Timeframe | Use For | Reliability | Recommended For |
|-----------|---------|-------------|-----------------|
| **Weekly** | Major trends | ⭐⭐⭐⭐⭐ | Position traders |
| **Daily** | Swing trades | ⭐⭐⭐⭐⭐ | Most traders |
| **4-Hour** | Active swing | ⭐⭐⭐⭐ | Active traders |
| **1-Hour** | Day trading | ⭐⭐⭐ | Experienced only |
| **15-Min** | Scalping | ⭐⭐ | Experts only |
**Golden Rule:** Always check one timeframe higher for context!
---
## 🚨 ALERT PRIORITY
### 🔔 MUST-HAVE ALERTS
1. Spring
2. UTAD
3. SOS
4. SOW
### 🔔 NICE-TO-HAVE ALERTS
5. Selling Climax (SC)
6. Buying Climax (BC)
7. Smart Money Accumulation
8. Smart Money Distribution
### 🔔 CONFIRMATION ALERTS
9. Phase E Markup
10. Phase E Markdown
---
## 💡 QUICK DECISION TREE
```
Is there a clear trading range?
├─ YES
│ ├─ Did price break BELOW support?
│ │ ├─ Volume LOW + Quick reversal = SPRING → BUY ✅
│ │ └─ Volume HIGH + Stays down = Breakdown → SELL ⚠️
│ │
│ └─ Did price break ABOVE resistance?
│ ├─ Volume LOW + Quick reversal = UTAD → SELL ✅
│ └─ Volume HIGH + Stays up = Breakout → BUY ⚠️
│
└─ NO
├─ Strong uptrend = Wait for re-accumulation
└─ Strong downtrend = Wait for re-distribution
```
---
## 📝 PRE-TRADE CHECKLIST
Before entering any trade:
- Identified the current Wyckoff phase
- Confirmed with volume analysis
- Checked higher timeframe trend
- Located supply/demand zones
- Identified clear entry point
- Set stop loss level
- Calculated target (risk:reward >1:2)
- Verified position size (risk 1-2%)
- Have at least 2 confirming signals
- Not trading against major trend
---
## 🧠 REMEMBER
**The Three Laws:**
1. **Supply & Demand** - Price is determined by imbalance
2. **Cause & Effect** - Range size predicts move size
3. **Effort & Result** - Volume should confirm price movement
**The Key Principle:**
> "Trade with the Composite Operator (smart money), not against them"
**Best Setups:**
1. Spring in accumulation (Phase C)
2. UTAD in distribution (Phase C)
3. SOS breakout (Phase D)
4. SOW breakdown (Phase D)
**When in Doubt:**
- ❓ Stay out
- 📈 Use higher timeframe
- 📚 Review the documentation
- 🎯 Wait for clearer signal
---
## 📱 INDICATOR SETTINGS QUICK SETUP
**For Stocks/Crypto (Good Volume Data):**
- Volume MA Length: 20
- High Volume Multiplier: 1.5
- Climax Volume: 2.0
- Swing Length: 5
**For Forex (Limited Volume Data):**
- Volume MA Length: 20
- High Volume Multiplier: 1.3
- Climax Volume: 1.8
- Swing Length: 7
- Turn OFF "Volume Confirmation"
**For Day Trading:**
- Swing Length: 3
- All other settings: Default
**For Position Trading:**
- Swing Length: 7-10
- Volume MA Length: 30
- Use Daily/Weekly charts
---
## 🎓 SKILL PROGRESSION
### Beginner (Month 1-2)
- Focus on: SC, Spring, SOS
- Timeframe: Daily only
- Goal: Identify phases correctly
### Intermediate (Month 3-6)
- Add: All accumulation events
- Timeframe: Daily + 4H
- Goal: Trade springs profitably
### Advanced (Month 6-12)
- Add: Distribution events, VSA
- Timeframe: Multiple timeframes
- Goal: Trade complete cycles
### Expert (Year 2+)
- Master: All events, all timeframes
- Combine: With other methodologies
- Goal: Consistent profitability
---
**Print this sheet and keep it next to your trading desk!**
*Remember: Quality over quantity. Wait for the best setups.*
# Wyckoff Method - Comprehensive Analysis Indicator
## Complete Implementation Guide for TradingView Pine Script
---
## TABLE OF CONTENTS
1. (#overview)
2. (#installation)
3. (#theory)
4. (#components)
5. (#signals)
6. (#strategies)
7. (#settings)
8. (#alerts)
9. (#patterns)
10. (#troubleshooting)
---
## OVERVIEW
This indicator implements Richard Wyckoff's complete trading methodology, including:
- **All 5 Phases** of Accumulation and Distribution
- **18+ Wyckoff Events** (PS, SC, AR, ST, Spring, SOS, LPS, BC, UTAD, SOW, etc.)
- **Volume Spread Analysis (VSA)** principles
- **Supply & Demand Zone** detection
- **Composite Operator** logic (Smart Money tracking)
- **Effort vs Result** analysis
- **Three Wyckoff Laws**: Supply/Demand, Cause/Effect, Effort/Result
---
## INSTALLATION
### Step 1: Copy the Code
1. Open the `wyckoff_comprehensive.pine` file
2. Select all code (Ctrl+A / Cmd+A)
3. Copy to clipboard (Ctrl+C / Cmd+C)
### Step 2: Add to TradingView
1. Go to TradingView.com
2. Open any chart
3. Click "Pine Editor" at the bottom of the screen
4. Click "New" or "Open"
5. Paste the entire code
6. Click "Save" and give it a name
7. Click "Add to Chart"
### Step 3: Verify Installation
You should see:
- Labels on the chart (PS, SC, Spring, SOS, etc.)
- Background colors indicating phases
- Volume analysis in the lower pane
- A table in the top-right corner showing current phase
---
## WYCKOFF METHOD THEORY
### The Three Fundamental Laws
#### 1. **Law of Supply and Demand**
- Price rises when demand exceeds supply
- Price falls when supply exceeds demand
- The indicator tracks volume vs price movement to identify imbalances
#### 2. **Law of Cause and Effect**
- A period of accumulation (cause) leads to markup (effect)
- A period of distribution (cause) leads to markdown (effect)
- Trading ranges build "cause" for future price movement
#### 3. **Law of Effort vs Result**
- **Effort** = Volume (energy put into the market)
- **Result** = Price movement (spread of the bar)
- High effort with low result = potential reversal
- Low effort with high result = trend weakness
### The Five Phases
#### **ACCUMULATION CYCLE**
**Phase A: Stopping the Downtrend**
- Preliminary Support (PS): First sign of buying
- Selling Climax (SC): Panic selling exhaustion
- Automatic Rally (AR): Bounce from SC
- Secondary Test (ST): Test of SC low on lower volume
**Phase B: Building the Cause**
- Trading range develops
- Supply being absorbed by composite operator
- Multiple tests of support and resistance
- Volume generally decreases
**Phase C: The Test (Spring)**
- False breakdown below support
- Traps late sellers
- Quick reversal on low volume
- Last chance to accumulate before markup
**Phase D: Dominance Emerges**
- Sign of Strength (SOS): Break above resistance
- Last Point of Support (LPS): Pullback opportunity
- Backup (BU): Final consolidation
- Demand clearly exceeds supply
**Phase E: Markup**
- New uptrend established
- Price moves rapidly higher
- Phase E can last months/years
- Original trading range becomes support
#### **DISTRIBUTION CYCLE**
**Phase A: Stopping the Uptrend**
- Preliminary Supply (PSY): First sign of selling
- Buying Climax (BC): Euphoric buying exhaustion
- Automatic Reaction (AR): Sharp selloff from BC
- Secondary Test (ST): Test of BC high on lower volume
**Phase B: Building the Cause**
- Trading range at top
- Demand being absorbed by composite operator
- Multiple tests of support and resistance
**Phase C: The Test (UTAD)**
- Upthrust After Distribution
- False breakout above resistance
- Traps late buyers
- Quick reversal
**Phase D: Dominance Emerges**
- Sign of Weakness (SOW): Break below support
- Last Point of Supply (LPSY): Rally opportunity to exit
- Supply clearly exceeds demand
**Phase E: Markdown**
- New downtrend established
- Price moves rapidly lower
- Original trading range becomes resistance
---
## INDICATOR COMPONENTS
### 1. EVENT LABELS
#### Accumulation Events (Green labels)
- **PS** = Preliminary Support
- **SC** = Selling Climax (largest label, most important)
- **AR** = Automatic Rally
- **ST** = Secondary Test
- **SPRING** = Spring (critical buy signal)
- **TEST** = Test of support
- **SOS** = Sign of Strength (breakout)
- **LPS** = Last Point of Support
- **BU** = Backup
#### Distribution Events (Red labels)
- **PSY** = Preliminary Supply
- **BC** = Buying Climax (largest label, most important)
- **AR** = Automatic Reaction
- **ST** = Secondary Test
- **UTAD** = Upthrust After Distribution (critical sell signal)
- **SOW** = Sign of Weakness
- **LPSY** = Last Point of Supply
#### VSA Events (Small colored labels)
- **ND** (Orange) = No Demand - weakness
- **NS** (Blue) = No Supply - strength
- **SV** (Purple) = Stopping Volume
- **UT** (Red) = Upthrust - weakness
- **SO** (Green) = Shakeout - strength
#### Composite Operator (💰 symbols)
- Green 💰 at bottom = Smart Money Accumulation
- Red 💰 at top = Smart Money Distribution
### 2. BACKGROUND COLORS
- **Light Blue** = Phase A (Accumulation)
- **Light Orange** = Phase A (Distribution)
- **Very Light Green** = Phase C (Accumulation Testing)
- **Very Light Red** = Phase C (Distribution Testing)
- **Light Green** = Phase D (Accumulation Strength)
- **Light Red** = Phase D (Distribution Weakness)
- **Green** = Phase E (Markup - Bull trend)
- **Red** = Phase E (Markdown - Bear trend)
### 3. SUPPLY & DEMAND ZONES
- **Green boxes** = Demand zones (where smart money accumulated)
- **Red boxes** = Supply zones (where smart money distributed)
- Zones extend 20 bars into the future
- Price reactions at these zones are significant
### 4. VOLUME PANEL
- **Dark Green/Red bars** = Very High Volume (climax)
- **Light Green/Red bars** = High Volume
- **Gray bars** = Normal Volume
- **Faint Gray bars** = Low Volume
- **Blue line** = Volume Moving Average
### 5. INFORMATION TABLE (Top Right)
Displays real-time analysis:
- **Current Phase** (A, B, C, D, or E)
- **Status** (description of what's happening)
- **Volume** (Very High, High, Normal, Low)
- **Spread** (Wide, Normal, Narrow)
- **Effort/Result** (Poor, Normal, Good)
- **Range** (YES if in trading range)
- **Bias** (BULLISH, BEARISH, or NEUTRAL)
---
## HOW TO READ THE SIGNALS
### STRONG BUY SIGNALS (in order of strength)
1. **SPRING** (strongest)
- False breakdown below support
- Look for: Low volume, quick reversal, close above support
- Entry: When price closes back above support level
- Stop: Below the spring low
2. **SOS (Sign of Strength)**
- Break above trading range resistance
- Look for: High volume, wide spread up bar
- Entry: On breakout or pullback to LPS
- Stop: Below trading range
3. **Shakeout (SO)**
- Similar to spring but more violent
- Look for: High volume, penetration of support, strong close
- Entry: When price reclaims support
- Stop: Below shakeout low
4. **LPS (Last Point of Support)**
- Pullback after SOS
- Look for: Low volume, shallow pullback
- Entry: When support holds
- Stop: Below LPS
5. **No Supply (NS)**
- Down bar on very low volume
- Indicates lack of selling pressure
- Confirms accumulation phase
### STRONG SELL SIGNALS (in order of strength)
1. **UTAD (Upthrust After Distribution)** (strongest)
- False breakout above resistance
- Look for: High volume spike, rejection, close below resistance
- Entry: When price closes back below resistance
- Stop: Above UTAD high
2. **SOW (Sign of Weakness)**
- Break below trading range support
- Look for: High volume, wide spread down bar
- Entry: On breakdown or rally to LPSY
- Stop: Above trading range
3. **Upthrust (UT)**
- Move above resistance on low volume, weak close
- Look for: Low volume, close in lower half of bar
- Entry: When resistance becomes resistance again
- Stop: Above upthrust high
4. **LPSY (Last Point of Supply)**
- Rally after SOW
- Look for: Low volume, weak rally
- Entry: When rally fails
- Stop: Above LPSY
5. **No Demand (ND)**
- Up bar on very low volume
- Indicates lack of buying pressure
- Confirms distribution phase
### NEUTRAL/WARNING SIGNALS
- **High Effort, Low Result** = Potential reversal coming
- **Stopping Volume** = Trend may be ending
- **Absorption** = Large volume with small movement (accumulation/distribution)
---
## TRADING STRATEGY EXAMPLES
### Strategy 1: Accumulation Range Breakout
**Setup:**
1. Identify trading range (blue background in Phase B)
2. Wait for Spring or Test (Phase C)
3. Wait for SOS breakout (Phase D)
**Entry:**
- Option A: Buy on SOS breakout
- Option B: Wait for LPS pullback (better risk/reward)
**Stop Loss:**
- Below the spring low or trading range bottom
**Target:**
- Measure height of trading range (cause)
- Project upward from breakout point (effect)
- Minimum target = range height
**Example:**
```
Trading Range: 100 to 120 (20 point range)
SOS Breakout at: 120
Target: 120 + 20 = 140 minimum
```
### Strategy 2: Distribution Range Breakdown
**Setup:**
1. Identify trading range after uptrend
2. Wait for UTAD (Phase C)
3. Wait for SOW breakdown (Phase D)
**Entry:**
- Option A: Sell on SOW breakdown
- Option B: Wait for LPSY rally (better risk/reward)
**Stop Loss:**
- Above the UTAD high or trading range top
**Target:**
- Measure height of trading range
- Project downward from breakdown point
- Minimum target = range height
### Strategy 3: Spring Trading
**Setup:**
1. Strong downtrend followed by range
2. Price breaks below range bottom
3. Volume is LOW on breakdown
4. Price quickly reverses and closes above support
**Entry:**
- When candle closes above support level
- Or on retest of support
**Stop Loss:**
- Below spring low (usually tight)
**Target:**
- Top of trading range
- Previous swing high
**Risk/Reward:**
- Typically 1:3 or better
### Strategy 4: Smart Money Tracking
**Setup:**
1. Look for 💰 symbols in demand zones
2. Multiple accumulation signals (PS, SC, ST, Test)
3. Volume decreasing during range
**Entry:**
- At next demand zone test
- On SOS breakout
**Confirmation:**
- Background turning green (Phase D/E)
- Table shows "BULLISH" bias
### Strategy 5: VSA Reversal
**Setup:**
1. Strong trend in place
2. Stopping Volume (SV) appears at extreme
3. Followed by No Demand (ND) or No Supply (NS)
**Entry:**
- When trend breaks down/up
- On retest of extreme
**Example (Bullish):**
```
Downtrend → Stopping Volume → No Supply → Up bar
Entry: Buy when price moves above SV bar
```
---
## SETTINGS & CUSTOMIZATION
### Volume Analysis Settings
**Volume MA Length** (default: 20)
- Shorter = More sensitive to volume changes
- Longer = Smoother, less noise
- Recommended: 15-25 for most timeframes
**High Volume Multiplier** (default: 1.5)
- Threshold for "high volume"
- Lower = More signals
- Higher = Only extreme volume
- Recommended: 1.3-2.0
**Climax Volume Multiplier** (default: 2.0)
- Threshold for climax events (SC, BC)
- Should be significantly higher than normal
- Recommended: 2.0-3.0
### Phase Detection Settings
**Swing Detection Length** (default: 5)
- How many bars to look left/right for swing points
- Shorter = More swings detected (more noise)
- Longer = Fewer swings (cleaner, might miss some)
- Recommended: 3-7
**Range Expansion Threshold** (default: 1.5)
- Multiplier for "wide spread" bars
- Higher = Only very wide bars qualify
- Recommended: 1.3-2.0
**Volume Confirmation** (default: ON)
- Requires volume confirmation for events
- Turn OFF for very low volume instruments
- Keep ON for stocks, forex, crypto
### Display Options
Toggle on/off:
- ✅ **Show Accumulation/Distribution Phases** - Background colors
- ✅ **Show Wyckoff Events** - All labeled events
- ✅ **Show Volume Spread Analysis** - VSA labels
- ✅ **Show Supply/Demand Zones** - Boxes on chart
- ✅ **Show Composite Operator Signals** - 💰 symbols
### Color Customization
- **Bullish Color** - All accumulation events
- **Bearish Color** - All distribution events
- **Neutral Color** - Range/neutral signals
---
## ALERT SETUP
### Available Alerts
1. **Selling Climax (SC)** - Potential bottom forming
2. **Spring** - Strong buy signal
3. **Sign of Strength (SOS)** - Bullish breakout
4. **Buying Climax (BC)** - Potential top forming
5. **UTAD** - Strong sell signal
6. **Sign of Weakness (SOW)** - Bearish breakdown
7. **Phase E Markup** - Uptrend confirmed
8. **Phase E Markdown** - Downtrend confirmed
9. **Smart Money Accumulation** - Institutions buying
10. **Smart Money Distribution** - Institutions selling
### How to Set Up Alerts
1. Click the "⏰" icon on TradingView
2. Select "Create Alert"
3. Condition: Choose the indicator and alert type
4. Example: "Wyckoff Method - Spring"
5. Set notification preferences (popup, email, webhook)
6. Click "Create"
### Recommended Alert Strategy
**Conservative Trader:**
- Spring
- SOS
- UTAD
- SOW
**Aggressive Trader:**
- Add: SC, BC, Smart Money signals
**Long-term Investor:**
- Phase E Markup
- Phase E Markdown
- Smart Money Accumulation
---
## COMMON PATTERNS
### Pattern 1: Classic Accumulation
```
Phase A: Downtrend → PS → SC → AR → ST
Phase B: Range building (4-12 weeks typical)
Phase C: Spring (false breakdown)
Phase D: SOS → LPS → BU
Phase E: Markup (new uptrend)
```
**What to do:**
- Mark the range boundaries
- Wait for spring
- Buy on LPS or SOS
- Hold through markup
### Pattern 2: Classic Distribution
```
Phase A: Uptrend → PSY → BC → AR → ST
Phase B: Range building (topping process)
Phase C: UTAD (false breakout)
Phase D: SOW → LPSY
Phase E: Markdown (new downtrend)
```
**What to do:**
- Mark the range boundaries
- Wait for UTAD
- Sell on LPSY or SOW
- Stay out during markdown
### Pattern 3: Re-Accumulation
```
Uptrend → Trading Range → Spring → Uptrend continues
```
- Occurs during existing uptrend
- Shorter accumulation period
- Often no clear SC (trend is already up)
- Spring is the key signal
### Pattern 4: Re-Distribution
```
Downtrend → Trading Range → UTAD → Downtrend continues
```
- Occurs during existing downtrend
- Shorter distribution period
- Often no clear BC (trend is already down)
- UTAD is the key signal
### Pattern 5: Failed Breakout
**Bullish Failed Breakout:**
```
Range → Breakdown → Immediate reversal (Spring)
```
- Price breaks support
- Volume is LOW
- Immediate strong reversal
- Very bullish
**Bearish Failed Breakout:**
```
Range → Breakout → Immediate reversal (UTAD)
```
- Price breaks resistance
- Volume may be high initially
- Quick rejection and reversal
- Very bearish
---
## TIMEFRAME RECOMMENDATIONS
### Daily Charts (Most Reliable)
- Best for swing trading
- Clear phases and events
- Less noise
- Recommended for beginners
### 4-Hour Charts
- Good for active swing traders
- Faster signals than daily
- Still reliable
### 1-Hour Charts
- For day traders
- More false signals
- Need to filter carefully
- Use in conjunction with higher timeframe
### 15-Minute / 5-Minute
- Only for experienced traders
- High noise level
- Many false signals
- Use daily chart for context
**Golden Rule:** Always check higher timeframe first!
---
## MULTI-TIMEFRAME ANALYSIS
### Top-Down Approach (Recommended)
1. **Weekly Chart** - Identify major trend and phase
2. **Daily Chart** - Find current accumulation/distribution
3. **4H Chart** - Identify entry timing
4. **Entry Timeframe** - Execute trade
### Example Analysis:
**Weekly:** Phase E Markup (bullish)
**Daily:** Phase B Re-accumulation
**4-Hour:** Spring detected
**Action:** Buy on daily LPS
---
## WYCKOFF + OTHER INDICATORS
### Complementary Tools
1. **Moving Averages**
- 20/50 SMA for trend context
- Already plotted on indicator
2. **RSI**
- Divergences at SC/BC
- Confirms overbought/oversold
3. **MACD**
- Confirms trend change in Phase D
- Divergences support Wyckoff events
4. **Volume Profile**
- Identifies value areas
- Confirms supply/demand zones
5. **Order Flow / Footprint Charts**
- See institutional activity
- Confirms smart money signals
**Don't Over-Complicate:**
- Wyckoff is a complete system
- Other indicators are supplementary
- When in doubt, trust Wyckoff
---
## TROUBLESHOOTING
### Issue: Too Many Labels
**Solution:**
- Increase swing length (Settings → 7 or 10)
- Increase volume multipliers
- Turn off VSA labels if not needed
- Focus on major events only (SC, Spring, SOS, BC, UTAD, SOW)
### Issue: Missing Expected Events
**Solution:**
- Decrease swing length (Settings → 3)
- Decrease volume multipliers
- Turn OFF volume confirmation
- Check timeframe (use daily chart)
### Issue: False Signals
**Solution:**
- Use higher timeframe
- Wait for confirmation
- Don't trade against major trend
- Look for multiple signal convergence
### Issue: Can't See Background Colors
**Solution:**
- Check "Show Phases" is enabled
- Increase monitor brightness
- Colors are subtle by design (not to obscure price)
### Issue: Volume Shows Incorrectly
**Solution:**
- Ensure volume data is available for your symbol
- Some symbols have poor volume data
- Forex spot pairs have no real volume
- Use futures or stock markets for best results
### Issue: No Trading Range Detected
**Solution:**
- Market may be trending strongly
- Trading range might be too small
- Wait for price to consolidate
- Not all markets have clear ranges
---
## ADVANCED TIPS
### 1. Count Point & Figure Charts
- Wyckoff used P&F to measure "cause"
- Width of range × height = minimum move target
- Longer accumulation = larger markup
### 2. Watch for Absorption
- High volume + narrow spread = someone absorbing
- In downtrend = accumulation
- In uptrend = distribution
### 3. Multiple Timeframe Springs
- Spring on daily + spring on weekly = very strong
- Increases probability significantly
### 4. Failed Signals Are Signals Too
- Failed spring = weakness, expect lower
- Failed UTAD = strength, expect higher
### 5. Context is King
- Don't buy during Phase E Markdown
- Don't sell during Phase E Markup
- Respect the major trend
### 6. Volume Precedes Price
- Study volume changes first
- Price follows volume
- Decreasing volume in range = building energy
### 7. Composite Operator Mindset
- Think like institutions
- Where would smart money buy/sell?
- They need liquidity (retail traders)
---
## RISK MANAGEMENT
### Position Sizing
**Conservative:**
- Risk 1% per trade
- Wider stops at range boundaries
**Moderate:**
- Risk 1-2% per trade
- Stops below spring/above UTAD
**Aggressive:**
- Risk 2-3% per trade
- Tight stops
- Higher win rate needed
### Stop Loss Placement
**Accumulation:**
- Below spring low
- Below trading range bottom
- Below demand zone
**Distribution:**
- Above UTAD high
- Above trading range top
- Above supply zone
### Take Profit Strategy
**Method 1: Measured Move**
- Range height = minimum target
- 2x range height = extended target
**Method 2: Fibonacci Extensions**
- 1.0 = range height
- 1.618 = extended target
- 2.618 = maximum target
**Method 3: Trail the Stop**
- Move stop to breakeven at 1R
- Trail under swing lows in markup
- Lock in profits progressively
---
## BACKTESTING CHECKLIST
Before trading with real money:
- Backtest on 50+ historical examples
- Record all signals in trading journal
- Calculate win rate (aim for >50%)
- Calculate average R:R (aim for >1:2)
- Test on multiple instruments
- Test on multiple timeframes
- Test in different market conditions
- Verify signal consistency
- Practice on demo account
- Start small with real money
---
## RECOMMENDED READING
### Books
1. **"Studies in Tape Reading"** - Richard D. Wyckoff
2. **"The Richard D. Wyckoff Method"** - Rubén Villahermosa
3. **"Charting the Stock Market: The Wyckoff Method"** - Jack Hutson
4. **"Master the Markets"** - Tom Williams (VSA)
### Courses
1. Wyckoff Analytics - Official Wyckoff course
2. TradeVSA - Volume Spread Analysis
3. StockCharts - Wyckoff education
### Communities
1. Wyckoff Analytics Forum
2. Reddit r/Wyckoff
3. TradingView Wyckoff ideas section
---
## FREQUENTLY ASKED QUESTIONS
**Q: Can I use this on crypto?**
A: Yes, works well on major cryptocurrencies with good volume.
**Q: Does it work on forex?**
A: Yes, but use futures volume (like 6E for EUR/USD) for better accuracy.
**Q: What's the best timeframe?**
A: Daily chart for most traders. 4H for more active trading.
**Q: How long does accumulation last?**
A: Typically 2-12 weeks. Longer accumulation = bigger markup.
**Q: Can I automate this?**
A: You can use the alerts, but manual analysis is recommended.
**Q: What's the win rate?**
A: With proper filtering: 60-70% on major signals (Spring, UTAD, SOS, SOW).
**Q: Should I trade every signal?**
A: No. Focus on Spring, UTAD, SOS, and SOW in trending markets.
**Q: What if I see conflicting signals?**
A: Use higher timeframe for context. When in doubt, stay out.
**Q: How do I know which phase I'm in?**
A: Check the table in top-right corner. Also look at background color.
**Q: Can I use this for options trading?**
A: Yes, excellent for timing option entries (especially around Spring/UTAD).
---
## FINAL THOUGHTS
The Wyckoff Method is:
- **A complete trading system** (not just an indicator)
- **Based on 100+ years** of market wisdom
- **Used by institutions** and professional traders
- **Requires practice** and screen time
- **Highly effective** when applied correctly
**Success Tips:**
1. Start with daily charts
2. Focus on major events (SC, Spring, SOS, BC, UTAD, SOW)
3. Always check higher timeframe context
4. Wait for confirmation before entering
5. Manage risk properly
6. Keep a trading journal
7. Be patient - wait for the best setups
**Remember:**
- Not every range will have all events
- Some phases may be abbreviated
- Context and confluence matter most
- Practice makes perfect
---
## SUPPORT & UPDATES
For questions, improvements, or bug reports:
- Check TradingView script comments
- Join Wyckoff trading communities
- Study historical examples
- Practice on demo accounts
**Good luck and happy trading!**
---
*Disclaimer: This indicator is for educational purposes. Always do your own analysis and risk management. Past performance does not guarantee future results.*
# WYCKOFF VISUAL SETUP EXAMPLES
## ACCUMULATION SCHEMATIC #1 (Classic Bottom)
```
Price Chart View:
│ PHASE E
│ MARKUP
│ ╱
│ ╱
┌─SOS─────┤ ╱
│ │ ╱
┌───────────┤ ┌LPS │╱
│ PHASE B │ │ │
│ (Cause) └──┴──────┤
┌AR──┤ │
┌────┤ │ ┌─Spring │ PHASE D
│ └ST──┤ │ │
│ │ │ │
────SC────────┴─────────┴───────────┴──────────
│
PS
│ PHASE A
│
Downtrend
```
### PHASE A - Stopping the Downtrend
```
PS: │ High volume down bar
▼ First sign of support
■ Not bottom yet
SC: │ VERY HIGH volume
▼ Panic selling exhaustion
█ Long lower wick
█ This is the low
AR: │ Automatic rally
▲ Relief bounce
■ High volume acceptable
ST: │ Secondary test
▼ Low volume (KEY!)
■ Tests SC low
```
### PHASE B - Building the Cause
```
┌─────────┐
│ ~~~ │ Multiple tests
│ ~ ~ │ Volume decreases
│~ ~ │ Range gets tighter
└─────────┘
Duration: 2-12 weeks typical
The longer, the bigger the eventual move
```
### PHASE C - The Test (SPRING)
```
║ False breakdown
─────╨─────
▼ Low volume
█ Breaks below support
■
█ Quick reversal
▲ Closes ABOVE support
CRITICAL: Volume must be LOW
Close must be strong
Happens quickly (1-3 bars)
```
### PHASE D - Strength Emerges
```
SOS: ▲ Sign of Strength
────╥──── Break above resistance
║ High volume
║ Wide spread
LPS: ▼ Last Point Support
■ Pullback on LOW volume
▲ Great entry point
BU: ▲ Backup
■ Final consolidation
▲ Before markup
```
### PHASE E - Markup
```
╱
╱
╱ Strong uptrend
╱ High momentum
╱ Can last months/years
──╱──
```
---
## DISTRIBUTION SCHEMATIC #2 (Classic Top)
```
Price Chart View:
Uptrend
│
PSY
│ PHASE A
────BC────────┬─────────┬───────────┬──────────
│ │ UTAD │
│ PHASE B │ │ PHASE D
┌AR──┤ ┌LPSY │ │
│ │ │ └───────────┤
│ └──┴──────┐ │╲
└ST──┤ │ │ ╲
│ └───────────┤ ╲
└─SOW─────┤ │ ╲
│ │ ╲
│ PHASE C │ ╲
│ │ PHASE E
│ │ MARKDOWN
```
### PHASE A - Stopping the Uptrend
```
PSY: │ High volume up bar
▲ Preliminary supply
■ Selling starting
BC: │ VERY HIGH volume
▲ Buying climax
█ Euphoric top
█ Long upper wick
AR: │ Automatic reaction
▼ Sharp selloff
■ High volume
ST: │ Secondary test
▲ Low volume (KEY!)
■ Tests BC high
```
### PHASE C - The Test (UTAD)
```
▲ False breakout
────╥────
║ Breaks ABOVE resistance
║ Often high volume spike
▼
█ Rejection / weak close
█ Closes BELOW resistance
▼
CRITICAL: Closes weak
Quick rejection
Traps buyers
```
### PHASE D - Weakness Emerges
```
SOW: ▼ Sign of Weakness
────╨──── Break below support
║ High volume
║ Wide spread
LPSY: ▲ Last Point Supply
■ Rally on LOW volume
▼ Last chance to exit
```
---
## VOLUME PATTERNS (Critical to Understanding)
### ACCUMULATION Volume Pattern
```
Volume
│ SC
█
█ ST
■ ■ Spring
■ ■ ■ SOS LPS
──┴────┴────┴──────█───■────►
│ │ │ │ │
│ │ │ │ │
A A C D D
Pattern: HIGH → low → low → HIGH → low
Key: Volume DECREASES during range
INCREASES on breakout
```
### DISTRIBUTION Volume Pattern
```
Volume
│ BC
█
█ ST
■ ■ UTAD
■ ■ ■ SOW LPSY
──┴────┴────┴──────█───■────►
│ │ │ │ │
│ │ │ │ │
A A C D D
Pattern: HIGH → low → varies → HIGH → low
Key: Volume MAY increase on UTAD
Definitely HIGH on breakdown (SOW)
```
---
## REAL TRADE SETUPS
### Setup #1: SPRING BUY
```
Entry Conditions:
1. Clear trading range identified
2. Price breaks BELOW support
3. Volume is LOW (critical!)
4. Price reverses QUICKLY
5. Closes ABOVE support level
Entry: Next bar or on retest
Stop: Below spring low
Target: Top of range (minimum)
Example:
Support: $100
Spring low: $98 (low volume)
Close: $101
Entry: $102
Stop: $97.50
Target: $120 (range top)
Risk/Reward: 1:4
```
### Setup #2: UTAD SELL
```
Entry Conditions:
1. Clear trading range identified (after uptrend)
2. Price breaks ABOVE resistance
3. Often high volume spike
4. Price reverses QUICKLY
5. Closes BELOW resistance level
Entry: Next bar or on retest
Stop: Above UTAD high
Target: Bottom of range (minimum)
Example:
Resistance: $200
UTAD high: $205 (spike)
Close: $198
Entry: $197
Stop: $206
Target: $180 (range bottom)
Risk/Reward: 1:2
```
### Setup #3: SOS BREAKOUT
```
Entry Conditions:
1. Clear accumulation range
2. Spring already occurred (ideal)
3. Price breaks ABOVE resistance
4. HIGH volume on breakout
5. Wide spread up bar
Entry Option A: On breakout ($120)
Entry Option B: Wait for LPS pullback ($115)
Stop: Below range or LPS
Target: Range height projected up
Example:
Range: $100-$120 (20 points)
SOS breakout: $120
Entry A: $120
Stop: $115
Target 1: $140 (100%)
Target 2: $150 (150%)
```
---
## VSA SPECIFIC PATTERNS
### Pattern 1: No Demand (Weakness)
```
▲
■ Up bar
■ Low volume ◄── KEY
▲ Small body
Context: After uptrend
Meaning: Buyers exhausted
Action: Prepare to sell
```
### Pattern 2: No Supply (Strength)
```
▼
■ Down bar
■ Low volume ◄── KEY
▼ Small body
Context: After downtrend
Meaning: Sellers exhausted
Action: Prepare to buy
```
### Pattern 3: Stopping Volume
```
═ Very high volume
█ Narrow spread ◄── KEY
═ Price not moving
Context: At extremes
Meaning: Absorption
Action: Expect reversal
```
---
## COMMON MISTAKES (What NOT to Do)
### ❌ Mistake 1: Buying Prematurely
```
WRONG:
SC
▼
█ ← DON'T BUY HERE
CORRECT:
Spring
─────╨─────
▼
█ ← BUY HERE
▲
```
### ❌ Mistake 2: Ignoring Volume
```
WRONG: "It broke below support, must be spring"
─────╨───── High volume
█
This is a BREAKDOWN, not a spring!
CORRECT Spring:
─────╨───── LOW volume ✓
■ Quick reversal ✓
▲
```
### ❌ Mistake 3: Trading Against Trend
```
WRONG:
Markdown Phase E
╲
╲ ← Trying to buy here
╲
╲
CORRECT:
Wait for new accumulation to complete
```
---
## MULTI-TIMEFRAME EXAMPLE
### Weekly Chart: Phase E Markup (Bullish)
```
╱
╱
╱ Long-term uptrend
╱
───╱─────
```
### Daily Chart: Re-Accumulation Phase C
```
┌─────────┐
│ Spring │ ← We are here
│ ▼ │
─────┴────█────┴─────
▲
```
### 4-Hour Chart: Entry Timing
```
Last 48 hours:
─────╨───── Spring occurred
█
▲ ← Enter now
■
```
**Result:** Triple confirmation across timeframes = High probability trade
---
## PROFIT TARGETS (Visual Guide)
### Method 1: Basic Measured Move
```
Resistance: 120 ┐ ─────────
│
│ 20 points
│
Support: 100 ┘ ─────────
Breakout: 120
Target: 120 + 20 = 140
╱╱╱ 140 (Target)
╱╱╱
╱╱╱
──────◄ 120 (Breakout)
│
Range │ 20
│
──────┘ 100
```
### Method 2: Multiple Targets
```
╱╱╱ 150 (Target 3: 2.5x) - 20% position
╱╱╱
╱╱╱ 140 (Target 2: 2x) - 30% position
╱╱╱
─────◄╱ 130 (Target 1: 1x) - 50% position
│
10 │ 120 (Breakout)
│
─────┘ 110 (Support)
```
### Method 3: Trailing Stop
```
1. Move stop to breakeven at Target 1
2. Trail stop under swing lows
3. Let winners run
╱╱╱
╱ ╱╱ ← Trail stop here
╱╱ ╱
╱ ╱ ← Then here
─────◄──╱
← Start here (breakeven)
```
---
## TIMING ENTRIES (Exact Bar Patterns)
### Perfect Spring Entry
```
Bar 1: ▼ Breaks below (Low vol)
█
Bar 2: ▲ Reverses (Closes strong)
█ ◄─ ENTER HERE
Bar 3: ■ Confirms
▲
DON'T WAIT for Bar 3!
Enter on Bar 2 close
```
### Perfect UTAD Entry
```
Bar 1: ▲ Breaks above (Spike vol OK)
█
Bar 2: ▼ Reverses (Closes weak)
█ ◄─ ENTER HERE
Bar 3: ■ Confirms
▼
SHORT on Bar 2 close
Don't wait for more confirmation
```
---
## COMPOSITE OPERATOR PSYCHOLOGY
### What Smart Money Does (Follow Them)
**Accumulation:**
```
1. Create fear (PS, SC)
2. Shake out weak hands (Spring)
3. Absorb supply quietly (Phase B)
4. Test for remaining supply (Test)
5. Mark it up (SOS → Phase E)
💰 They buy LOW when retail panics
```
**Distribution:**
```
1. Create euphoria (PSY, BC)
2. Trap late buyers (UTAD)
3. Distribute to buyers (Phase B)
4. Test for remaining demand (ST)
5. Mark it down (SOW → Phase E)
💰 They sell HIGH when retail buys
```
### Where to Look for Smart Money
```
💰 Buy signals appear at:
- Demand zones (green boxes)
- Springs and shakeouts
- Tests of support
- After selling climax
💰 Sell signals appear at:
- Supply zones (red boxes)
- UTAD and upthrusts
- Weak rallies (LPSY)
- After buying climax
```
---
## PRACTICE EXERCISES
### Exercise 1: Identify the Phase
Look at any chart and ask:
1. Is there a trading range? (Phase B likely)
2. Did we just stop a trend? (Phase A)
3. Was there a spring/UTAD? (Phase C)
4. Is there a breakout? (Phase D)
5. Is trend running? (Phase E)
### Exercise 2: Volume Analysis
For each bar, note:
- Volume level (High/Normal/Low)
- Spread (Wide/Normal/Narrow)
- Effort vs Result (Matching? Diverging?)
### Exercise 3: Find Historical Springs
Go back 6 months:
- Mark all springs you can find
- Note the setup before each
- Track what happened after
- Calculate win rate
---
## FINAL VISUALIZATION: The Complete Cycle
```
ACCUMULATION → MARKUP → DISTRIBUTION → MARKDOWN → ACCUMULATION...
Distribution Accumulation
(Top) (Bottom)
┌───────────────┐ ┌───────────────┐
│ BC UTAD │ │ Spring SC │
│ │ │ │ │ │ │ │
────┴───┴───┴───────┴─╲ ╱────────┴───┴───┴────
╲ ╱
Markdown ╲ ╱ Markup
(Phase E) ╲ ╱ (Phase E)
╲ ╱
╲ ╱
╲ ╱
╲ ╱
V
The market cycles endlessly
Your job: Identify where you are in the cycle
Trade accordingly
```
---
**Remember:**
- 📊 Study charts daily
- 📝 Journal every setup
- 🎯 Wait for the best signals
- 💰 Follow smart money
- ⏰ Be patient
- 🚀 Let winners run
**The indicator does the heavy lifting - you make the decisions!**
Range Oscillator Strategy + Stoch Confirm🔹 Short summary
This is a free, educational long-only strategy built on top of the public “Range Oscillator” by Zeiierman (used under CC BY-NC-SA 4.0), combined with a Stochastic timing filter, an EMA-based exit filter and an optional risk-management layer (SL/TP and R-multiple exits). It is NOT financial advice and it is NOT a magic money machine. It’s a structured framework to study how range-expansion + momentum + trend slope can be combined into one rule-based system, often with intentionally RARE trades.
────────────────────────
0. Legal / risk disclaimer
────────────────────────
• This script is FREE and public. I do not charge any fee for it.
• It is for EDUCATIONAL PURPOSES ONLY.
• It is NOT financial advice and does NOT guarantee profits.
• Backtest results can be very different from live results.
• Markets change over time; past performance is NOT indicative of future performance.
• You are fully responsible for your own trades and risk.
Please DO NOT use this script with money you cannot afford to lose. Always start in a demo / paper trading environment and make sure you understand what the logic does before you risk any capital.
────────────────────────
1. About default settings and risk (very important)
────────────────────────
The script is configured with the following defaults in the `strategy()` declaration:
• `initial_capital = 10000`
→ This is only an EXAMPLE account size.
• `default_qty_type = strategy.percent_of_equity`
• `default_qty_value = 100`
→ This means 100% of equity per trade in the default properties.
→ This is AGGRESSIVE and should be treated as a STRESS TEST of the logic, not as a realistic way to trade.
TradingView’s House Rules recommend risking only a small part of equity per trade (often 1–2%, max 5–10% in most cases). To align with these recommendations and to get more realistic backtest results, I STRONGLY RECOMMEND you to:
1. Open **Strategy Settings → Properties**.
2. Set:
• Order size: **Percent of equity**
• Order size (percent): e.g. **1–2%** per trade
3. Make sure **commission** and **slippage** match your own broker conditions.
• By default this script uses `commission_value = 0.1` (0.1%) and `slippage = 3`, which are reasonable example values for many crypto markets.
If you choose to run the strategy with 100% of equity per trade, please treat it ONLY as a stress-test of the logic. It is NOT a sustainable risk model for live trading.
────────────────────────
2. What this strategy tries to do (conceptual overview)
────────────────────────
This is a LONG-ONLY strategy designed to explore the combination of:
1. **Range Oscillator (Zeiierman-based)**
- Measures how far price has moved away from an adaptive mean.
- Uses an ATR-based range to normalize deviation.
- High positive oscillator values indicate strong price expansion away from the mean in a bullish direction.
2. **Stochastic as a timing filter**
- A classic Stochastic (%K and %D) is used.
- The logic requires %K to be below a user-defined level and then crossing above %D.
- This is intended to catch moments when momentum turns up again, rather than chasing every extreme.
3. **EMA Exit Filter (trend slope)**
- An EMA with configurable length (default 70) is calculated.
- The slope of the EMA is monitored: when the slope turns negative while in a long position, and the filter is enabled, it triggers an exit condition.
- This acts as a trend-protection exit: if the medium-term trend starts to weaken, the strategy exits even if the oscillator has not yet fully reverted.
4. **Optional risk-management layer**
- Percentage-based Stop Loss and Take Profit (SL/TP).
- Risk/Reward (R-multiple) exit based on the distance from entry to SL.
- Implemented as OCO orders that work *on top* of the logical exits.
The goal is not to create a “holy grail” system but to serve as a transparent, configurable framework for studying how these concepts behave together on different markets and timeframes.
────────────────────────
3. Components and how they work together
────────────────────────
(1) Range Oscillator (based on “Range Oscillator (Zeiierman)”)
• The script computes a weighted mean price and then measures how far price deviates from that mean.
• Deviation is normalized by an ATR-based range and expressed as an oscillator.
• When the oscillator is above the **entry threshold** (default 100), it signals a strong move away from the mean in the bullish direction.
• When it later drops below the **exit threshold** (default 30), it can trigger an exit (if enabled).
(2) Stochastic confirmation
• Classic Stochastic (%K and %D) is calculated.
• An entry requires:
- %K to be below a user-defined “Cross Level”, and
- then %K to cross above %D.
• This is a momentum confirmation: the strategy tries to enter when momentum turns up from a pullback rather than at any random point.
(3) EMA Exit Filter
• The EMA length is configurable via `emaLength` (default 70).
• The script monitors the EMA slope: it computes the relative change between the current EMA and the previous EMA.
• If the slope turns negative while the strategy holds a long position and the filter is enabled, it triggers an exit condition.
• This is meant to help protect profits or cut losses when the medium-term trend starts to roll over, even if the oscillator conditions are not (yet) signalling exit.
(4) Risk management (optional)
• Stop Loss (SL) and Take Profit (TP):
- Defined as percentages relative to average entry price.
- Both are disabled by default, but you can enable them in the Inputs.
• Risk/Reward Exit:
- Uses the distance from entry to SL to project a profit target at a configurable R-multiple.
- Also optional and disabled by default.
These exits are implemented as `strategy.exit()` OCO orders and can close trades independently of oscillator/EMA conditions if hit first.
────────────────────────
4. Entry & Exit logic (high level)
────────────────────────
A) Time filter
• You can choose a **Start Year** in the Inputs.
• Only candles between the selected start date and 31 Dec 2069 are used for backtesting (`timeCondition`).
• This prevents accidental use of tiny cherry-picked windows and makes tests more honest.
B) Entry condition (long-only)
A long entry is allowed when ALL the following are true:
1. `timeCondition` is true (inside the backtest window).
2. If `useOscEntry` is true:
- Range Oscillator value must be above `entryLevel`.
3. If `useStochEntry` is true:
- Stochastic condition (`stochCondition`) must be true:
- %K < `crossLevel`, then %K crosses above %D.
If these filters agree, the strategy calls `strategy.entry("Long", strategy.long)`.
C) Exit condition (logical exits)
A position can be closed when:
1. `timeCondition` is true AND a long position is open, AND
2. At least one of the following is true:
- If `useOscExit` is true: Oscillator is below `exitLevel`.
- If `useMagicExit` (EMA Exit Filter) is true: EMA slope is negative (`isDown = true`).
In that case, `strategy.close("Long")` is called.
D) Risk-management exits
While a position is open:
• If SL or TP is enabled:
- `strategy.exit("Long Risk", ...)` places an OCO stop/limit order based on the SL/TP percentages.
• If Risk/Reward exit is enabled:
- `strategy.exit("RR Exit", ...)` places an OCO order using a projected R-multiple (`rrMult`) of the SL distance.
These risk-based exits can trigger before the logical oscillator/EMA exits if price hits those levels.
────────────────────────
5. Recommended backtest configuration (to avoid misleading results)
────────────────────────
To align with TradingView House Rules and avoid misleading backtests:
1. **Initial capital**
- 10 000 (or any value you personally want to work with).
2. **Order size**
- Type: **Percent of equity**
- Size: **1–2%** per trade is a reasonable starting point.
- Avoid risking more than 5–10% per trade if you want results that could be sustainable in practice.
3. **Commission & slippage**
- Commission: around 0.1% if that matches your broker.
- Slippage: a few ticks (e.g. 3) to account for real fills.
4. **Timeframe & markets**
- Volatile symbols (e.g. crypto like BTCUSDT, or major indices).
- Timeframes: 1H / 4H / **1D (Daily)** are typical starting points.
- I strongly recommend trying the strategy on **different timeframes**, for example 1D, to see how the behaviour changes between intraday and higher timeframes.
5. **No “caution warning”**
- Make sure your chosen symbol + timeframe + settings do not trigger TradingView’s caution messages.
- If you see warnings (e.g. “too few trades”), adjust timeframe/symbol or the backtest period.
────────────────────────
5a. About low trade count and rare signals
────────────────────────
This strategy is intentionally designed to trade RARELY:
• It is **long-only**.
• It uses strict filters (Range Oscillator threshold + Stochastic confirmation + optional EMA Exit Filter).
• On higher timeframes (especially **1D / Daily**) this can result in a **low total number of trades**, sometimes WELL BELOW 100 trades over the whole backtest.
TradingView’s House Rules mention 100+ trades as a guideline for more robust statistics. In this specific case:
• The **low trade count is a conscious design choice**, not an attempt to cherry-pick a tiny, ultra-profitable window.
• The goal is to study a **small number of high-conviction long entries** on higher timeframes, not to generate frequent intraday signals.
• Because of the low trade count, results should NOT be interpreted as statistically strong or “proven” – they are only one sample of how this logic would have behaved on past data.
Please keep this in mind when you look at the equity curve and performance metrics. A beautiful curve with only a handful of trades is still just a small sample.
────────────────────────
6. How to use this strategy (step-by-step)
────────────────────────
1. Add the script to your chart.
2. Open the **Inputs** tab:
- Set the backtest start year.
- Decide whether to use Oscillator-based entry/exit, Stochastic confirmation, and EMA Exit Filter.
- Optionally enable SL, TP, and Risk/Reward exits.
3. Open the **Properties** tab:
- Set a realistic account size if you want.
- Set order size to a realistic % of equity (e.g. 1–2%).
- Confirm that commission and slippage are realistic for your broker.
4. Run the backtest:
- Look at Net Profit, Max Drawdown, number of trades, and equity curve.
- Remember that a low trade count means the statistics are not very strong.
5. Experiment:
- Tweak thresholds (`entryLevel`, `exitLevel`), Stochastic settings, EMA length, and risk params.
- See how the metrics and trade frequency change.
6. Forward-test:
- Before using any idea in live trading, forward-test on a demo account and observe behaviour in real time.
────────────────────────
7. Originality and usefulness (why this is more than a mashup)
────────────────────────
This script is not intended to be a random visual mashup of indicators. It is designed as a coherent, testable strategy with clear roles for each component:
• Range Oscillator:
- Handles mean vs. range-expansion states via an adaptive, ATR-normalized metric.
• Stochastic:
- Acts as a timing filter to avoid entering purely on extremes and instead waits for momentum to turn.
• EMA Exit Filter:
- Trend-slope-based safety net to exit when the medium-term direction changes against the position.
• Risk module:
- Provides practical, rule-based exits: SL, TP, and R-multiple exit, which are useful for structuring risk even if you modify the core logic.
It aims to give traders a ready-made **framework to study and modify**, not a black box or “signals” product.
────────────────────────
8. Limitations and good practices
────────────────────────
• No single strategy works on all markets or in all regimes.
• This script is long-only; it does not short the market.
• Performance can degrade when market structure changes.
• Overfitting (curve fitting) is a real risk if you endlessly tweak parameters to maximise historical profit.
Good practices:
- Test on multiple symbols and timeframes.
- Focus on stability and drawdown, not only on how high the profit line goes.
- View this as a learning tool and a basis for your own research.
────────────────────────
9. Licensing and credits
────────────────────────
• Core oscillator idea & base code:
- “Range Oscillator (Zeiierman)”
- © Zeiierman, licensed under CC BY-NC-SA 4.0.
• Strategy logic, Stochastic confirmation, EMA Exit Filter, and risk-management layer:
- Modifications by jokiniemi.
Please respect both the original license and TradingView House Rules if you fork or republish any part of this script.
────────────────────────
10. No payments / no vendor pitch
────────────────────────
• This script is completely FREE to use on TradingView.
• There is no paid subscription, no external payment link, and no private signals group attached to it.
• If you have questions, please use TradingView’s comment system or private messages instead of expecting financial advice.
Use this script as a tool to learn, experiment, and build your own understanding of markets.
────────────────────────
11. Example backtest settings used in screenshots
────────────────────────
To avoid any confusion about how the results shown in screenshots were produced, here is one concrete example configuration:
• Symbol: BTCUSDT (or similar major BTC pair)
• Timeframe: 1D (Daily)
• Backtest period: from 2018 to the most recent data
• Initial capital: 10 000
• Order size type: Percent of equity
• Order size: 2% per trade
• Commission: 0.1%
• Slippage: 3 ticks
• Risk settings: Stop Loss and Take Profit disabled by default, Risk/Reward exit disabled by default
• Filters: Range Oscillator entry/exit enabled, Stochastic confirmation enabled, EMA Exit Filter enabled
If you change any of these settings (symbol, timeframe, risk per trade, commission, slippage, filters, etc.), your results will look different. Please always adapt the configuration to your own risk tolerance, market, and trading style.
Luxy Momentum, Trend, Bias and Breakout Indicators V7
TABLE OF CONTENTS
This is Version 7 (V7) - the latest and most optimized release. If you are using any older versions (V6, V5, V4, V3, etc.), it is highly recommended to replace them with V7.
Why This Indicator is Different
Who Should Use This
Core Components Overview
The UT Bot Trading System
Understanding the Market Bias Table
Candlestick Pattern Recognition
Visual Tools and Features
How to Use the Indicator
Performance and Optimization
FAQ
---
### CREDITS & ATTRIBUTION
This indicator implements proven trading concepts using entirely original code developed specifically for this project.
### CONCEPTUAL FOUNDATIONS
• UT Bot ATR Trailing System
- Original concept by @QuantNomad: (search "UT-Bot-Strategy"
- Our version is a complete reimplementation with significant enhancements:
- Volume-weighted momentum adjustment
- Composite stop loss from multiple S/R layers
- Multi-filter confirmation system (swing, %, 2-bar, ZLSMA)
- Full integration with multi-timeframe bias table
- Visual audit trail with freeze-on-touch
- NOTE: No code was copied - this is a complete reimplementation with enhancements.
• Standard Technical Indicators (Public Domain Formulas):
- Supertrend: ATR-based trend calculation with custom gradient fills
- MACD: Gerald Appel's formula with separation filters
- RSI: J. Welles Wilder's formula with pullback zone logic
- ADX/DMI: Custom trend strength formula inspired by Wilder's directional movement concept, reimplemented with volume weighting and efficiency metrics
- ZLSMA: Zero-lag formula enhanced with Hull MA and momentum prediction
### Custom Implementations
- Trend Strength: Inspired by Wilder's ADX concept but using volume-weighted pressure calculation and efficiency metrics (not traditional +DI/-DI smoothing)
- All code implementations are original
### ORIGINAL FEATURES (70%+ of codebase)
- Multi-Timeframe Bias Table with live updates
- Risk Management System (R-multiple TPs, freeze-on-touch)
- Opening Range Breakout tracker with session management
- Composite Stop Loss calculator using 6+ S/R layers
- Performance optimization system (caching, conditional calcs)
- VIX Fear Index integration
- Previous Day High/Low auto-detection
- Candlestick pattern recognition with interactive tooltips
- Smart label and visual management
- All UI/UX design and table architecture
### DEVELOPMENT PROCESS
**AI Assistance:** This indicator was developed over 2+ months with AI assistance (ChatGPT/Claude) used for:
- Writing Pine Script code based on design specifications
- Optimizing performance and fixing bugs
- Ensuring Pine Script v6 compliance
- Generating documentation
**Author's Role:** All trading concepts, system design, feature selection, integration logic, and strategic decisions are original work by the author. The AI was a coding tool, not the system designer.
**Transparency:** We believe in full disclosure - this project demonstrates how AI can be used as a powerful development tool while maintaining creative and strategic ownership.
---
1. WHY THIS INDICATOR IS DIFFERENT
Most traders use multiple separate indicators on their charts, leading to cluttered screens, conflicting signals, and analysis paralysis. The Suite solves this by integrating proven technical tools into a single, cohesive system.
Key Advantages:
All-in-One Design: Instead of loading 5-10 separate indicators, you get everything in one optimized script. This reduces chart clutter and improves TradingView performance.
Multi-Timeframe Bias Table: Unlike standard indicators that only show the current timeframe, the Bias Table aggregates trend signals across multiple timeframes simultaneously. See at a glance whether 1m, 5m, 15m, 1h are aligned bullish or bearish - no more switching between charts.
Smart Confirmations: The indicator doesn't just give signals - it shows you WHY. Every entry has multiple layers of confirmation (MA cross, MACD momentum, ADX strength, RSI pullback, volume, etc.) that you can toggle on/off.
Dynamic Stop Loss System: Instead of static ATR stops, the SL is calculated from multiple support/resistance layers: UT trailing line, Supertrend, VWAP, swing structure, and MA levels. This creates more intelligent, price-action-aware stops.
R-Multiple Take Profits: Built-in TP system calculates targets based on your initial risk (1R, 1.5R, 2R, 3R). Lines freeze when touched with visual checkmarks, giving you a clean audit trail of partial exits.
Educational Tooltips Everywhere: Every single input has detailed tooltips explaining what it does, typical values, and how it impacts trading. You're not guessing - you're learning as you configure.
Performance Optimized: Smart caching, conditional calculations, and modular design mean the indicator runs fast despite having 15+ features. Turn off what you don't use for even better performance.
No Repainting: All signals respect bar close. Alerts fire correctly. What you see in history is what you would have gotten in real-time.
What Makes It Unique:
Integrated UT Bot + Bias Table: No other indicator combines UT Bot's ATR trailing system with a live multi-timeframe dashboard. You get precision entries with macro trend context.
Candlestick Pattern Recognition with Interactive Tooltips: Patterns aren't just marked - hover over any emoji for a full explanation of what the pattern means and how to trade it.
Opening Range Breakout Tracker: Built-in ORB system for intraday traders with customizable session times and real-time status updates in the Bias Table.
Previous Day High/Low Auto-Detection: Automatically plots PDH/PDL on intraday charts with theme-aware colors. Updates daily without manual input.
Dynamic Row Labels in Bias Table: The table shows your actual settings (e.g., "EMA 10 > SMA 20") not generic labels. You know exactly what's being evaluated.
Modular Filter System: Instead of forcing a fixed methodology, the indicator lets you build your own strategy. Start with just UT Bot, add filters one at a time, test what works for your style.
---
2. WHO WHOULD USE THIS
Designed For:
Intermediate to Advanced Traders: You understand basic technical analysis (MAs, RSI, MACD) and want to combine multiple confirmations efficiently. This isn't a "one-click profit" system - it's a professional toolkit.
Multi-Timeframe Traders: If you trade one asset but check multiple timeframes for confirmation (e.g., enter on 5m after checking 15m and 1h alignment), the Bias Table will save you hours every week.
Trend Followers: The indicator excels at identifying and following trends using UT Bot, Supertrend, and MA systems. If you trade breakouts and pullbacks in trending markets, this is built for you.
Intraday and Swing Traders: Works equally well on 5m-1h charts (day trading) and 4h-D charts (swing trading). Scalpers can use it too with appropriate settings adjustments.
Discretionary Traders: This isn't a black-box system. You see all the components, understand the logic, and make final decisions. Perfect for traders who want tools, not automation.
Works Across All Markets:
Stocks (US, international)
Cryptocurrency (24/7 markets supported)
Forex pairs
Indices (SPY, QQQ, etc.)
Commodities
NOT Ideal For :
Complete Beginners: If you don't know what a moving average or RSI is, start with basics first. This indicator assumes foundational knowledge.
Algo Traders Seeking Black Box: This is discretionary. Signals require context and confirmation. Not suitable for blind automated execution.
Mean-Reversion Only Traders: The indicator is trend-following at its core. While VWAP bands support mean-reversion, the primary methodology is trend continuation.
---
3. CORE COMPONENTS OVERVIEW
The indicator combines these proven systems:
Trend Analysis:
Moving Averages: Four customizable MAs (Fast, Medium, Medium-Long, Long) with six types to choose from (EMA, SMA, WMA, VWMA, RMA, HMA). Mix and match for your style.
Supertrend: ATR-based trend indicator with unique gradient fill showing trend strength. One-sided ribbon visualization makes it easier to see momentum building or fading.
ZLSMA : Zero-lag linear-regression smoothed moving average. Reduces lag compared to traditional MAs while maintaining smooth curves.
Momentum & Filters:
MACD: Standard MACD with separation filter to avoid weak crossovers.
RSI: Pullback zone detection - only enter longs when RSI is in your defined "buy zone" and shorts in "sell zone".
ADX/DMI: Trend strength measurement with directional filter. Ensures you only trade when there's actual momentum.
Volume Filter: Relative volume confirmation - require above-average volume for entries.
Donchian Breakout: Optional channel breakout requirement.
Signal Systems:
UT Bot: The primary signal generator. ATR trailing stop that adapts to volatility and gives clear entry/exit points.
Base Signals: MA cross system with all the above filters applied. More conservative than UT Bot alone.
Market Bias Table: Multi-timeframe dashboard showing trend alignment across 7 timeframes plus macro bias (3-day, weekly, monthly, quarterly, VIX).
Candlestick Patterns: Six major reversal patterns auto-detected with interactive tooltips.
ORB Tracker: Opening range high/low with breakout status (intraday only).
PDH/PDL: Previous day levels plotted automatically on intraday charts.
VWAP + Bands : Session-anchored VWAP with up to three standard deviation band pairs.
---
4. THE UT BOT TRADING SYSTEM
The UT Bot is the heart of the indicator's signal generation. It's an advanced ATR trailing stop that adapts to market volatility.
Why UT Bot is Superior to Fixed Stops:
Traditional ATR stops use a fixed multiplier (e.g., "stop = entry - 2×ATR"). UT Bot is smarter:
It TRAILS the stop as price moves in your favor
It WIDENS during high volatility to avoid premature stops
It TIGHTENS during consolidation to lock in profits
It FLIPS when price breaks the trailing line, signaling reversals
Visual Elements You'll See:
Orange Trailing Line: The actual UT stop level that adapts bar-by-bar
Buy/Sell Labels: Aqua triangle (long) or orange triangle (short) when the line flips
ENTRY Line: Horizontal line at your entry price (optional, can be turned off)
Suggested Stop Loss: A composite SL calculated from multiple support/resistance layers:
- UT trailing line
- Supertrend level
- VWAP
- Swing structure (recent lows/highs)
- Long-term MA (200)
- ATR-based floor
Take Profit Lines: TP1, TP1.5, TP2, TP3 based on R-multiples. When price touches a TP, it's marked with a checkmark and the line freezes for audit trail purposes.
Status Messages: "SL Touched ❌" or "SL Frozen" when the trade leg completes.
How UT Bot Differs from Other ATR Systems:
Multiple Filters Available: You can require 2-bar confirmation, minimum % price change, swing structure alignment, or ZLSMA directional filter. Most UT implementations have none of these.
Smart SL Calculation: Instead of just using the UT line as your stop, the indicator suggests a better SL based on actual support/resistance. This prevents getting stopped out by wicks while keeping risk controlled.
Visual Audit Trail: All SL/TP lines freeze when touched with clear markers. You can review your trades weeks later and see exactly where entries, stops, and targets were.
Performance Options: "Draw UT visuals only on bar close" lets you reduce rendering load without affecting logic or alerts - critical for slower machines or 1m charts.
Trading Logic:
UT Bot flips direction (Buy or Sell signal appears)
Check Bias Table for multi-timeframe confirmation
Optional: Wait for Base signal or candlestick pattern
Enter at signal bar close or next bar open
Place stop at "Suggested Stop Loss" line
Scale out at TP levels (TP1, TP2, TP3)
Exit remaining position on opposite UT signal or stop hit
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5. UNDERSTANDING THE MARKET BIAS TABLE
This is the indicator's unique multi-timeframe intelligence layer. Instead of looking at one chart at a time, the table aggregates signals across seven timeframes plus macro trend bias.
Why Multi-Timeframe Analysis Matters:
Professional traders check higher and lower timeframes for context:
Is the 1h uptrend aligning with my 5m entry?
Are all short-term timeframes bullish or just one?
Is the daily trend supportive or fighting me?
Doing this manually means opening multiple charts, checking each indicator, and making mental notes. The Bias Table does it automatically in one glance.
Table Structure:
Header Row:
On intraday charts: 1m, 5m, 15m, 30m, 1h, 2h, 4h (toggle which ones you want)
On daily+ charts: D, W, M (automatic)
Green dot next to title = live updating
Headline Rows - Macro Bias:
These show broad market direction over longer periods:
3 Day Bias: Trend over last 3 trading sessions (uses 1h data)
Weekly Bias: Trend over last 5 trading sessions (uses 4h data)
Monthly Bias: Trend over last 30 daily bars
Quarterly Bias: Trend over last 13 weekly bars
VIX Fear Index: Market regime based on VIX level - bullish when low, bearish when high
Opening Range Breakout: Status of price vs. session open range (intraday only)
These rows show text: "BULLISH", "BEARISH", or "NEUTRAL"
Indicator Rows - Technical Signals:
These evaluate your configured indicators across all active timeframes:
Fast MA > Medium MA (shows your actual MA settings, e.g., "EMA 10 > SMA 20")
Price > Long MA (e.g., "Price > SMA 200")
Price > VWAP
MACD > Signal
Supertrend (up/down/neutral)
ZLSMA Rising
RSI In Zone
ADX ≥ Minimum
These rows show emojis: GREEB (bullish), RED (bearish), GRAY/YELLOW (neutral/NA)
AVG Column:
Shows percentage of active timeframes that are bullish for that row. This is the KEY metric:
AVG > 70% = strong multi-timeframe bullish alignment
AVG 40-60% = mixed/choppy, no clear trend
AVG < 30% = strong multi-timeframe bearish alignment
How to Use the Table:
For a long trade:
Check AVG column - want to see > 60% ideally
Check headline bias rows - want to see BULLISH, not BEARISH
Check VIX row - bullish market regime preferred
Check ORB row (intraday) - want ABOVE for longs
Scan indicator rows - more green = better confirmation
For a short trade:
Check AVG column - want to see < 40% ideally
Check headline bias rows - want to see BEARISH, not BULLISH
Check VIX row - bearish market regime preferred
Check ORB row (intraday) - want BELOW for shorts
Scan indicator rows - more red = better confirmation
When AVG is 40-60%:
Market is choppy, mixed signals. Either stay out or reduce position size significantly. These are low-probability environments.
Unique Features:
Dynamic Labels: Row names show your actual settings (e.g., "EMA 10 > SMA 20" not generic "Fast > Slow"). You know exactly what's being evaluated.
Customizable Rows: Turn off rows you don't care about. Only show what matters to your strategy.
Customizable Timeframes: On intraday charts, disable 1m or 4h if you don't trade them. Reduces calculation load by 20-40%.
Automatic HTF Handling: On Daily/Weekly/Monthly charts, the table automatically switches to D/W/M columns. No configuration needed.
Performance Smart: "Hide BIAS table on 1D or above" option completely skips all table calculations on higher timeframes if you only trade intraday.
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6. CANDLESTICK PATTERN RECOGNITION
The indicator automatically detects six major reversal patterns and marks them with emojis at the relevant bars.
Why These Six Patterns:
These are the most statistically significant reversal patterns according to trading literature:
High win rate when appearing at support/resistance
Clear visual structure (not subjective)
Work across all timeframes and assets
Studied extensively by institutions
The Patterns:
Bullish Patterns (appear at bottoms):
Bullish Engulfing: Green candle completely engulfs prior red candle's body. Strong reversal signal.
Hammer: Small body with long lower wick (at least 2× body size). Shows rejection of lower prices by buyers.
Morning Star: Three-candle pattern (large red → small indecision → large green). Very strong bottom reversal.
Bearish Patterns (appear at tops):
Bearish Engulfing: Red candle completely engulfs prior green candle's body. Strong reversal signal.
Shooting Star: Small body with long upper wick (at least 2× body size). Shows rejection of higher prices by sellers.
Evening Star: Three-candle pattern (large green → small indecision → large red). Very strong top reversal.
Interactive Tooltips:
Unlike most pattern indicators that just draw shapes, this one is educational:
Hover your mouse over any pattern emoji
A tooltip appears explaining: what the pattern is, what it means, when it's most reliable, and how to trade it
No need to memorize - learn as you trade
Noise Filter:
"Min candle body % to filter noise" setting prevents false signals:
Patterns require minimum body size relative to price
Filters out tiny candles that don't represent real buying/selling pressure
Adjust based on asset volatility (higher % for crypto, lower for low-volatility stocks)
How to Trade Patterns:
Patterns are NOT standalone entry signals. Use them as:
Confirmation: UT Bot gives signal + pattern appears = stronger entry
Reversal Warning: In a trade, opposite pattern appears = consider tightening stop or taking profit
Support/Resistance Validation: Pattern at key level (PDH, VWAP, MA 200) = level is being respected
Best combined with:
UT Bot or Base signal in same direction
Bias Table alignment (AVG > 60% or < 40%)
Appearance at obvious support/resistance
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7. VISUAL TOOLS AND FEATURES
VWAP (Volume Weighted Average Price):
Session-anchored VWAP with standard deviation bands. Shows institutional "fair value" for the trading session.
Anchor Options: Session, Day, Week, Month, Quarter, Year. Choose based on your trading timeframe.
Bands: Up to three pairs (X1, X2, X3) showing statistical deviation. Price at outer bands often reverses.
Auto-Hide on HTF: VWAP hides on Daily/Weekly/Monthly charts automatically unless you enable anchored mode.
Use VWAP as:
Directional bias (above = bullish, below = bearish)
Mean reversion levels (outer bands)
Support/resistance (the VWAP line itself)
Previous Day High/Low:
Automatically plots yesterday's high and low on intraday charts:
Updates at start of each new trading day
Theme-aware colors (dark text for light charts, light text for dark charts)
Hidden automatically on Daily/Weekly/Monthly charts
These levels are critical for intraday traders - institutions watch them closely as support/resistance.
Opening Range Breakout (ORB):
Tracks the high/low of the first 5, 15, 30, or 60 minutes of the trading session:
Customizable session times (preset for NYSE, LSE, TSE, or custom)
Shows current breakout status in Bias Table row (ABOVE, BELOW, INSIDE, BUILDING)
Intraday only - auto-disabled on Daily+ charts
ORB is a classic day trading strategy - breakout above opening range often leads to continuation.
Extra Labels:
Change from Open %: Shows how far price has moved from session open (intraday) or daily open (HTF). Green if positive, red if negative.
ADX Badge: Small label at bottom of last bar showing current ADX value. Green when above your minimum threshold, red when below.
RSI Badge: Small label at top of last bar showing current RSI value with zone status (buy zone, sell zone, or neutral).
These labels provide quick at-a-glance confirmation without needing separate indicator windows.
---
8. HOW TO USE THE INDICATOR
Step 1: Add to Chart
Load the indicator on your chosen asset and timeframe
First time: Everything is enabled by default - the chart will look busy
Don't panic - you'll turn off what you don't need
Step 2: Start Simple
Turn OFF everything except:
UT Bot labels (keep these ON)
Bias Table (keep this ON)
Moving Averages (Fast and Medium only)
Suggested Stop Loss and Take Profits
Hide everything else initially. Get comfortable with the basic UT Bot + Bias Table workflow first.
Step 3: Learn the Core Workflow
UT Bot gives a Buy or Sell signal
Check Bias Table AVG column - do you have multi-timeframe alignment?
If yes, enter the trade
Place stop at Suggested Stop Loss line
Scale out at TP levels
Exit on opposite UT signal
Trade this simple system for a week. Get a feel for signal frequency and win rate with your settings.
Step 4: Add Filters Gradually
If you're getting too many losing signals (whipsaws in choppy markets), add filters one at a time:
Try: "Require 2-Bar Trend Confirmation" - wait for 2 bars to confirm direction
Try: ADX filter with minimum threshold - only trade when trend strength is sufficient
Try: RSI pullback filter - only enter on pullbacks, not chasing
Try: Volume filter - require above-average volume
Add one filter, test for a week, evaluate. Repeat.
Step 5: Enable Advanced Features (Optional)
Once you're profitable with the core system, add:
Supertrend for additional trend confirmation
Candlestick patterns for reversal warnings
VWAP for institutional anchor reference
ORB for intraday breakout context
ZLSMA for low-lag trend following
Step 6: Optimize Settings
Every setting has a detailed tooltip explaining what it does and typical values. Hover over any input to read:
What the parameter controls
How it impacts trading
Suggested ranges for scalping, day trading, and swing trading
Start with defaults, then adjust based on your results and style.
Step 7: Set Up Alerts
Right-click chart → Add Alert → Condition: "Luxy Momentum v6" → Choose:
"UT Bot — Buy" for long entries
"UT Bot — Sell" for short entries
"Base Long/Short" for filtered MA cross signals
Optionally enable "Send real-time alert() on UT flip" in settings for immediate notifications.
Common Workflow Variations:
Conservative Trader:
UT signal + Base signal + Candlestick pattern + Bias AVG > 70%
Enter only at major support/resistance
Wider UT sensitivity, multiple filters
Aggressive Trader:
UT signal + Bias AVG > 60%
Enter immediately, no waiting
Tighter UT sensitivity, minimal filters
Swing Trader:
Focus on Daily/Weekly Bias alignment
Ignore intraday noise
Use ORB and PDH/PDL less (or not at all)
Wider stops, patient approach
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9. PERFORMANCE AND OPTIMIZATION
The indicator is optimized for speed, but with 15+ features running simultaneously, chart load time can add up. Here's how to keep it fast:
Biggest Performance Gains:
Disable Unused Timeframes: In "Time Frames" settings, turn OFF any timeframe you don't actively trade. Each disabled TF saves 10-15% calculation time. If you only day trade 5m, 15m, 1h, disable 1m, 2h, 4h.
Hide Bias Table on Daily+: If you only trade intraday, enable "Hide BIAS table on 1D or above". This skips ALL table calculations on higher timeframes.
Draw UT Visuals Only on Bar Close: Reduces intrabar rendering of SL/TP/Entry lines. Has ZERO impact on logic or alerts - purely visual optimization.
Additional Optimizations:
Turn off VWAP bands if you don't use them
Disable candlestick patterns if you don't trade them
Turn off Supertrend fill if you find it distracting (keep the line)
Reduce "Limit to 10 bars" for SL/TP lines to minimize line objects
Performance Features Built-In:
Smart Caching: Higher timeframe data (3-day bias, weekly bias, etc.) updates once per day, not every bar
Conditional Calculations: Volume filter only calculates when enabled. Swing filter only runs when enabled. Nothing computes if turned off.
Modular Design: Every component is independent. Turn off what you don't need without breaking other features.
Typical Load Times:
5m chart, all features ON, 7 timeframes: ~2-3 seconds
5m chart, core features only, 3 timeframes: ~1 second
1m chart, all features: ~4-5 seconds (many bars to calculate)
If loading takes longer, you likely have too many indicators on the chart total (not just this one).
---
10. FAQ
Q: How is this different from standard UT Bot indicators?
A: Standard UT Bot (originally by @QuantNomad) is just the ATR trailing line and flip signals. This implementation adds:
- Volume weighting and momentum adjustment to the trailing calculation
- Multiple confirmation filters (swing, %, 2-bar, ZLSMA)
- Smart composite stop loss system from multiple S/R layers
- R-multiple take profit system with freeze-on-touch
- Integration with multi-timeframe Bias Table
- Visual audit trail with checkmarks
Q: Can I use this for automated trading?
A: The indicator is designed for discretionary trading. While it has clear signals and alerts, it's not a mechanical system. Context and judgment are required.
Q: Does it repaint?
A: No. All signals respect bar close. UT Bot logic runs intrabar but signals only trigger on confirmed bars. Alerts fire correctly with no lookahead.
Q: Do I need to use all the features?
A: Absolutely not. The indicator is modular. Many profitable traders use just UT Bot + Bias Table + Moving Averages. Start simple, add complexity only if needed.
Q: How do I know which settings to use?
A: Every single input has a detailed tooltip. Hover over any setting to see:
What it does
How it affects trading
Typical values for scalping, day trading, swing trading
Start with defaults, adjust gradually based on results.
Q: Can I use this on crypto 24/7 markets?
A: Yes. ORB will not work (no defined session), but everything else functions normally. Use "Day" anchor for VWAP instead of "Session".
Q: The Bias Table is blank or not showing.
A: Check:
"Show Table" is ON
Table position isn't overlapping another indicator's table (change position)
At least one row is enabled
"Hide BIAS table on 1D or above" is OFF (if on Daily+ chart)
Q: Why are candlestick patterns not appearing?
A: Patterns are relatively rare by design - they only appear at genuine reversal points. Check:
Pattern toggles are ON
"Min candle body %" isn't too high (try 0.05-0.10)
You're looking at a chart with actual reversals (not strong trending market)
Q: UT Bot is too sensitive/not sensitive enough.
A: Adjust "Sensitivity (Key×ATR)". Lower number = tighter stop, more signals. Higher number = wider stop, fewer signals. Read the tooltip for guidance.
Q: Can I get alerts for the Bias Table?
A: The Bias Table is a dashboard for visual analysis, not a signal generator. Set alerts on UT Bot or Base signals, then manually check Bias Table for confirmation.
Q: Does this work on stocks with low volume?
A: Yes, but turn OFF the volume filter. Low volume stocks will never meet relative volume requirements.
Q: How often should I check the Bias Table?
A: Before every entry. It takes 2 seconds to glance at the AVG column and headline rows. This one check can save you from fighting the trend.
Q: What if UT signal and Base signal disagree?
A: UT Bot is more aggressive (ATR trailing). Base signals are more conservative (MA cross + filters). If they disagree, either:
Wait for both to align (safest)
Take the UT signal but with smaller size (aggressive)
Skip the trade (conservative)
There's no "right" answer - depends on your risk tolerance.
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FINAL NOTES
The indicator gives you an edge. How you use that edge determines results.
For questions, feedback, or support, comment on the indicator page or message the author.
Happy Trading!
PnL Bubble [%] | Fractalyst1. What's the indicator purpose?
The PnL Bubble indicator transforms your strategy's trade PnL percentages into an interactive bubble chart with professional-grade statistics and performance analytics. It helps traders quickly assess system profitability, understand win/loss distribution patterns, identify outliers, and make data-driven strategy improvements.
How does it work?
Think of this indicator as a visual report card for your trading performance. Here's what it does:
What You See
Colorful Bubbles: Each bubble represents one of your trades
Blue/Cyan bubbles = Winning trades (you made money)
Red bubbles = Losing trades (you lost money)
Bigger bubbles = Bigger wins or losses
Smaller bubbles = Smaller wins or losses
How It Organizes Your Trades:
Like a Photo Album: Instead of showing all your trades at once (which would be messy), it shows them in "pages" of 500 trades each:
Page 1: Your first 500 trades
Page 2: Trades 501-1000
Page 3: Trades 1001-1500, etc.
What the Numbers Tell You:
Average Win: How much money you typically make on winning trades
Average Loss: How much money you typically lose on losing trades
Expected Value (EV): Whether your trading system makes money over time
Positive EV = Your system is profitable long-term
Negative EV = Your system loses money long-term
Payoff Ratio (R): How your average win compares to your average loss
R > 1 = Your wins are bigger than your losses
R < 1 = Your losses are bigger than your wins
Why This Matters:
At a Glance: You can instantly see if you're a profitable trader or not
Pattern Recognition: Spot if you have more big wins than big losses
Performance Tracking: Watch how your trading improves over time
Realistic Expectations: Understand what "average" performance looks like for your system
The Cool Visual Effects:
Animation: The bubbles glow and shimmer to make the chart more engaging
Highlighting: Your biggest wins and losses get extra attention with special effects
Tooltips: hover any bubble to see details about that specific trade.
What are the underlying calculations?
The indicator processes trade PnL data using a dual-matrix architecture for optimal performance:
Dual-Matrix System:
• Display Matrix (display_matrix): Bounded to 500 trades for rendering performance
• Statistics Matrix (stats_matrix): Unbounded storage for complete statistical accuracy
Trade Classification & Aggregation:
// Separate wins, losses, and break-even trades
if val > 0.0
pos_sum += val // Sum winning trades
pos_count += 1 // Count winning trades
else if val < 0.0
neg_sum += val // Sum losing trades
neg_count += 1 // Count losing trades
else
zero_count += 1 // Count break-even trades
Statistical Averages:
avg_win = pos_count > 0 ? pos_sum / pos_count : na
avg_loss = neg_count > 0 ? math.abs(neg_sum) / neg_count : na
Win/Loss Rates:
total_obs = pos_count + neg_count + zero_count
win_rate = pos_count / total_obs
loss_rate = neg_count / total_obs
Expected Value (EV):
ev_value = (avg_win × win_rate) - (avg_loss × loss_rate)
Payoff Ratio (R):
R = avg_win ÷ |avg_loss|
Contribution Analysis:
ev_pos_contrib = avg_win × win_rate // Positive EV contribution
ev_neg_contrib = avg_loss × loss_rate // Negative EV contribution
How to integrate with any trading strategy?
Equity Change Tracking Method:
//@version=6
strategy("Your Strategy with Equity Change Export", overlay=true)
float prev_trade_equity = na
float equity_change_pct = na
if barstate.isconfirmed and na(prev_trade_equity)
prev_trade_equity := strategy.equity
trade_just_closed = strategy.closedtrades != strategy.closedtrades
if trade_just_closed and not na(prev_trade_equity)
current_equity = strategy.equity
equity_change_pct := ((current_equity - prev_trade_equity) / prev_trade_equity) * 100
prev_trade_equity := current_equity
else
equity_change_pct := na
plot(equity_change_pct, "Equity Change %", display=display.data_window)
Integration Steps:
1. Add equity tracking code to your strategy
2. Load both strategy and PnL Bubble indicator on the same chart
3. In bubble indicator settings, select your strategy's equity tracking output as data source
4. Configure visualization preferences (colors, effects, page navigation)
How does the pagination system work?
The indicator uses an intelligent pagination system to handle large trade datasets efficiently:
Page Organization:
• Page 1: Trades 1-500 (most recent)
• Page 2: Trades 501-1000
• Page 3: Trades 1001-1500
• Page N: Trades to
Example: With 1,500 trades total (3 pages available):
• User selects Page 1: Shows trades 1-500
• User selects Page 4: Automatically falls back to Page 3 (trades 1001-1500)
5. Understanding the Visual Elements
Bubble Visualization:
• Color Coding: Cyan/blue gradients for wins, red gradients for losses
• Size Mapping: Bubble size proportional to trade magnitude (larger = bigger P&L)
• Priority Rendering: Largest trades displayed first to ensure visibility
• Gradient Effects: Color intensity increases with trade magnitude within each category
Interactive Tooltips:
Each bubble displays quantitative trade information:
tooltip_text = outcome + " | PnL: " + pnl_str +
"\nDate: " + date_str + " " + time_str +
"\nTrade #" + str.tostring(trade_number) + " (Page " + str.tostring(active_page) + ")" +
"\nRank: " + str.tostring(rank) + " of " + str.tostring(n_display_rows) +
"\nPercentile: " + str.tostring(percentile, "#.#") + "%" +
"\nMagnitude: " + str.tostring(magnitude_pct, "#.#") + "%"
Example Tooltip:
Win | PnL: +2.45%
Date: 2024.03.15 14:30
Trade #1,247 (Page 3)
Rank: 5 of 347
Percentile: 98.6%
Magnitude: 85.2%
Reference Lines & Statistics:
• Average Win Line: Horizontal reference showing typical winning trade size
• Average Loss Line: Horizontal reference showing typical losing trade size
• Zero Line: Threshold separating wins from losses
• Statistical Labels: EV, R-Ratio, and contribution analysis displayed on chart
What do the statistical metrics mean?
Expected Value (EV):
Represents the mathematical expectation per trade in percentage terms
EV = (Average Win × Win Rate) - (Average Loss × Loss Rate)
Interpretation:
• EV > 0: Profitable system with positive mathematical expectation
• EV = 0: Break-even system, profitability depends on execution
• EV < 0: Unprofitable system with negative mathematical expectation
Example: EV = +0.34% means you expect +0.34% profit per trade on average
Payoff Ratio (R):
Quantifies the risk-reward relationship of your trading system
R = Average Win ÷ |Average Loss|
Interpretation:
• R > 1.0: Wins are larger than losses on average (favorable risk-reward)
• R = 1.0: Wins and losses are equal in magnitude
• R < 1.0: Losses are larger than wins on average (unfavorable risk-reward)
Example: R = 1.5 means your average win is 50% larger than your average loss
Contribution Analysis (Σ):
Breaks down the components of expected value
Positive Contribution (Σ+) = Average Win × Win Rate
Negative Contribution (Σ-) = Average Loss × Loss Rate
Purpose:
• Shows how much wins contribute to overall expectancy
• Shows how much losses detract from overall expectancy
• Net EV = Σ+ - Σ- (Expected Value per trade)
Example: Σ+: 1.23% means wins contribute +1.23% to expectancy
Example: Σ-: -0.89% means losses drag expectancy by -0.89%
Win/Loss Rates:
Win Rate = Count(Wins) ÷ Total Trades
Loss Rate = Count(Losses) ÷ Total Trades
Shows the probability of winning vs losing trades
Higher win rates don't guarantee profitability if average losses exceed average wins
7. Demo Mode & Synthetic Data Generation
When using built-in sources (close, open, etc.), the indicator generates realistic demo trades for testing:
if isBuiltInSource(source_data)
// Generate random trade outcomes with realistic distribution
u_sign = prand(float(time), float(bar_index))
if u_sign < 0.5
v_push := -1.0 // Loss trade
else
// Skewed distribution favoring smaller wins (realistic)
u_mag = prand(float(time) + 9876.543, float(bar_index) + 321.0)
k = 8.0 // Skewness factor
t = math.pow(u_mag, k)
v_push := 2.5 + t * 8.0 // Win trade
Demo Characteristics:
• Realistic win/loss distribution mimicking actual trading patterns
• Skewed distribution favoring smaller wins over large wins
• Deterministic randomness for consistent demo results
• Includes jitter effects to prevent visual overlap
8. Performance Limitations & Optimizations
Display Constraints:
points_count = 500 // Maximum 500 dots per page for optimal performance
Pine Script v6 Limits:
• Label Count: Maximum 500 labels per indicator
• Line Count: Maximum 100 lines per indicator
• Box Count: Maximum 50 boxes per indicator
• Matrix Size: Efficient memory management with dual-matrix system
Optimization Strategies:
• Pagination System: Handle unlimited trades through 500-trade pages
• Priority Rendering: Largest trades displayed first for maximum visibility
• Dual-Matrix Architecture: Separate display (bounded) from statistics (unbounded)
• Smart Fallback: Automatic page clamping prevents empty displays
Impact & Workarounds:
• Visual Limitation: Only 500 trades visible per page
• Statistical Accuracy: Complete dataset used for all calculations
• Navigation: Use page input to browse through entire trade history
• Performance: Smooth operation even with thousands of trades
9. Statistical Accuracy Guarantees
Data Integrity:
• Complete Dataset: Statistics matrix stores ALL trades without limit
• Proper Aggregation: Separate tracking of wins, losses, and break-even trades
• Mathematical Precision: Pine Script v6's enhanced floating-point calculations
• Dual-Matrix System: Display limitations don't affect statistical accuracy
Calculation Validation:
// Verified formulas match standard trading mathematics
avg_win = pos_sum / pos_count // Standard average calculation
win_rate = pos_count / total_obs // Standard probability calculation
ev_value = (avg_win * win_rate) - (avg_loss * loss_rate) // Standard EV formula
Accuracy Features:
• Mathematical Correctness: Formulas follow established trading statistics
• Data Preservation: Complete dataset maintained for all calculations
• Precision Handling: Proper rounding and boundary condition management
• Real-Time Updates: Statistics recalculated on every new trade
10. Advanced Technical Features
Real-Time Animation Engine:
// Shimmer effects with sine wave modulation
offset = math.sin(shimmer_t + phase) * amp
// Dynamic transparency with organic flicker
new_transp = math.min(flicker_limit, math.max(-flicker_limit, cur_transp + dir * flicker_step))
• Sine Wave Shimmer: Dynamic glowing effects on bubbles
• Organic Flicker: Random transparency variations for natural feel
• Extreme Value Highlighting: Special visual treatment for outliers
• Smooth Animations: Tick-based updates for fluid motion
Magnitude-Based Priority Rendering:
// Sort trades by magnitude for optimal visual hierarchy
sort_indices_by_magnitude(values_mat)
• Largest First: Most important trades always visible
• Intelligent Sorting: Custom bubble sort algorithm for trade prioritization
• Performance Optimized: Efficient sorting for real-time updates
• Visual Hierarchy: Ensures critical trades never get hidden
Professional Tooltip System:
• Quantitative Data: Pure numerical information without interpretative language
• Contextual Ranking: Shows trade position within page dataset
• Percentile Analysis: Performance ranking as percentage
• Magnitude Scaling: Relative size compared to page maximum
• Professional Format: Clean, data-focused presentation
11. Quick Start Guide
Step 1: Add Indicator
• Search for "PnL Bubble | Fractalyst" in TradingView indicators
• Add to your chart (works on any timeframe)
Step 2: Configure Data Source
• Demo Mode: Leave source as "close" to see synthetic trading data
• Strategy Mode: Select your strategy's PnL% output as data source
Step 3: Customize Visualization
• Colors: Set positive (cyan), negative (red), and neutral colors
• Page Navigation: Use "Trade Page" input to browse trade history
• Visual Effects: Built-in shimmer and animation effects are enabled by default
Step 4: Analyze Performance
• Study bubble patterns for win/loss distribution
• Review statistical metrics: EV, R-Ratio, Win Rate
• Use tooltips for detailed trade analysis
• Navigate pages to explore full trade history
Step 5: Optimize Strategy
• Identify outlier trades (largest bubbles)
• Analyze risk-reward profile through R-Ratio
• Monitor Expected Value for system profitability
• Use contribution analysis to understand win/loss impact
12. Why Choose PnL Bubble Indicator?
Unique Advantages:
• Advanced Pagination: Handle unlimited trades with smart fallback system
• Dual-Matrix Architecture: Perfect balance of performance and accuracy
• Professional Statistics: Institution-grade metrics with complete data integrity
• Real-Time Animation: Dynamic visual effects for engaging analysis
• Quantitative Tooltips: Pure numerical data without subjective interpretations
• Priority Rendering: Intelligent magnitude-based display ensures critical trades are always visible
Technical Excellence:
• Built with Pine Script v6 for maximum performance and modern features
• Optimized algorithms for smooth operation with large datasets
• Complete statistical accuracy despite display optimizations
• Professional-grade calculations matching institutional trading analytics
Practical Benefits:
• Instantly identify system profitability through visual patterns
• Spot outlier trades and risk management issues
• Understand true risk-reward profile of your strategies
• Make data-driven decisions for strategy optimization
• Professional presentation suitable for performance reporting
Disclaimer & Risk Considerations:
Important: Historical performance metrics, including positive Expected Value (EV), do not guarantee future trading success. Statistical measures are derived from finite sample data and subject to inherent limitations:
• Sample Bias: Historical data may not represent future market conditions or regime changes
• Ergodicity Assumption: Markets are non-stationary; past statistical relationships may break down
• Survivorship Bias: Strategies showing positive historical EV may fail during different market cycles
• Parameter Instability: Optimal parameters identified in backtesting often degrade in forward testing
• Transaction Cost Evolution: Slippage, spreads, and commission structures change over time
• Behavioral Factors: Live trading introduces psychological elements absent in backtesting
• Black Swan Events: Extreme market events can invalidate statistical assumptions instantaneously
AltCoin & MemeCoin Index Correlation [Eddie_Bitcoin]🧠 Philosophy of the Strategy
The AltCoin & MemeCoin Index Correlation Strategy by Eddie_Bitcoin is a carefully engineered trend-following system built specifically for the highly volatile and sentiment-driven world of altcoins and memecoins.
This strategy recognizes that crypto markets—especially niche sectors like memecoins—are not only influenced by individual price action but also by the relative strength or weakness of their broader sector. Hence, it attempts to improve the reliability of trading signals by requiring alignment between a specific coin’s trend and its sector-wide index trend.
Rather than treating each crypto asset in isolation, this strategy dynamically incorporates real-time dominance metrics from custom indices (OTHERS.D and MEME.D) and combines them with local price action through dual exponential moving average (EMA) crossovers. Only when both the asset and its sector are moving in the same direction does it allow for trade entries—making it a confluence-based system rather than a single-signal strategy.
It supports risk-aware capital allocation, partial exits, configurable stop loss and take profit levels, and a scalable equity-compounding model.
✅ Why did I choose OTHERS.D and MEME.D as reference indices?
I selected OTHERS.D and MEME.D because they offer a sector-focused view of crypto market dynamics, especially relevant when trading altcoins and memecoins.
🔹 OTHERS.D tracks the market dominance of all cryptocurrencies outside the top 10 by market cap.
This excludes not only BTC and ETH, but also major stablecoins like USDT and USDC, making it a cleaner indicator of risk appetite across true altcoins.
🔹 This is particularly useful for detecting "Altcoin Season"—periods where capital rotates away from Bitcoin and flows into smaller-cap coins.
A rising OTHERS.D often signals the start of broader altcoin rallies.
🔹 MEME.D, on the other hand, captures the speculative behavior of memecoin segments, which are often driven by retail hype and social media activity.
It's perfect for timing momentum shifts in high-risk, high-reward tokens.
By using these indices, the strategy aligns entries with broader sector trends, filtering out noise and increasing the probability of catching true directional moves, especially in phases of capital rotation and altcoin risk-on behavior.
📐 How It Works — Core Logic and Execution Model
At its heart, this strategy employs dual EMA crossover detection—one pair for the asset being traded and one pair for the selected market index.
A trade is only executed when both EMA crossovers agree on the direction. For example:
Long Entry: Coin's fast EMA > slow EMA and Index's fast EMA > slow EMA
Short Entry: Coin's fast EMA < slow EMA and Index's fast EMA < slow EMA
You can disable the index filter and trade solely based on the asset’s trend just to make a comparison and see if improves a classic EMA crossover strategy.
Additionally, the strategy includes:
- Adaptive position sizing, based on fixed capital or current equity (compound mode)
- Take Profit and Stop Loss in percentage terms
- Smart partial exits when trend momentum fades
- Date filtering for precise backtesting over specific timeframes
- Real-time performance stats, equity tracking, and visual cues on chart
⚙️ Parameters & Customization
🔁 EMA Settings
Each EMA pair is customizable:
Coin Fast EMA: Default = 47
Coin Slow EMA: Default = 50
Index Fast EMA: Default = 47
Index Slow EMA: Default = 50
These control the sensitivity of the trend detection. A wider spread gives smoother, slower entries; a narrower spread makes it more responsive.
🧭 Index Reference
The correlation mechanism uses CryptoCap sector dominance indexes:
OTHERS.D: Dominance of all coins EXCLUDING Top 10 ones
MEME.D: Dominance of all Meme coins
These are dynamically calculated using:
OTHERS_D = OTHERS_cap / TOTAL_cap * 100
MEME_D = MEME_cap / TOTAL_cap * 100
You can select:
Reference Index: OTHERS.D or MEME.D
Or disable the index reference completely (Don't Use Index Reference)
💰 Position Sizing & Risk Management
Two capital allocation models are supported:
- Fixed % of initial capital (default)
- Compound profits, which scales positions as equity grows
Settings:
- Compound profits?: true/false
- % of equity: Between 1% and 200% (default = 10%)
This is critical for users who want to balance growth with risk.
🎯 Take Profit / Stop Loss
Customizable thresholds determine automatic exits:
- TakeProfit: Default = 99999 (disabled)
- StopLoss: Default = 5 (%)
These exits are percentage-based and operate off the entry price vs. current close.
📉 Trend Weakening Exit (Scale Out)
If the position is in profit but the trend weakens (e.g., EMA color signals trend loss), the strategy can partially close a configurable portion of the position:
- Scale Position on Weak Trend?: true/false
- Scaled Percentage: % to close (default = 65%)
This feature is useful for preserving profits without exiting completely.
📆 Date Filter
Useful for segmenting performance over specific timeframes (e.g., bull vs bear markets):
- Filter Date Range of Backtest: ON/OFF
- Start Date and End Date: Custom time range
OTHER PARAMETERS EXPLANATION (Strategy "Properties" Tab):
- Initial Capital is set to 100 USD
- Commission is set to 0.055% (The ones I have on Bybit)
- Slippage is set to 3 ticks
- Margin (short and long) are set to 0.001% to avoid "overspending" your initial capital allocation
📊 Visual Feedback and Debug Tools
📈 EMA Trend Visualization
The slow EMA line is dynamically color-coded to visually display the alignment between the asset trend and the index trend:
Lime: Coin and index both bullish
Teal: Only coin bullish
Maroon: Only index bullish
Red: Both bearish
This allows for immediate visual confirmation of current trend strength.
💬 Real-Time PnL Labels
When a trade closes, a label shows:
Previous trade return in % (first value is the effective PL)
Green background for profit, Red for losses.
📑 Summary Table Overlay
This table appears in a corner of the chart (user-defined) and shows live performance data including:
Trade direction (yellow long, purple short)
Emojis: 💚 for current profit, 😡 for current loss
Total number of trades
Win rate
Max drawdown
Duration in days
Current trade profit/loss (absolute and %)
Cumulative PnL (absolute and %)
APR (Annualized Percentage Return)
Each metric is color-coded:
Green for strong results
Yellow/orange for average
Red/maroon for poor performance
You can select where this appears:
Top Left
Top Right
Bottom Left
Bottom Right (default)
📚 Interpretation of Key Metrics
Equity Multiplier: How many times initial capital has grown (e.g., “1.75x”)
Net Profit: Total gains including open positions
Max Drawdown: Largest peak-to-valley drop in strategy equity
APR: Annualized return calculated based on equity growth and days elapsed
Win Rate: % of profitable trades
PnL %: Percentage profit on the most recent trade
🧠 Advanced Logic & Safety Features
🛑 “Don’t Re-Enter” Filter
If a trade is closed due to StopLoss without a confirmed reversal, the strategy avoids re-entering in that same direction until conditions improve. This prevents false reversals and repetitive losses in sideways markets.
🧷 Equity Protection
No new trades are initiated if equity falls below initial_capital / 30. This avoids overleveraging or continuing to trade when capital preservation is critical.
Keep in mind that past results in no way guarantee future performance.
Eddie Bitcoin
VoVix DEVMA🌌 VoVix DEVMA: A Deep Dive into Second-Order Volatility Dynamics
Welcome to VoVix+, a sophisticated trading framework that transcends traditional price analysis. This is not merely another indicator; it is a complete system designed to dissect and interpret the very fabric of market volatility. VoVix+ operates on the principle that the most powerful signals are not found in price alone, but in the behavior of volatility itself. It analyzes the rate of change, the momentum, and the structure of market volatility to identify periods of expansion and contraction, providing a unique edge in anticipating major market moves.
This document will serve as your comprehensive guide, breaking down every mathematical component, every user input, and every visual element to empower you with a profound understanding of how to harness its capabilities.
🔬 THEORETICAL FOUNDATION: THE MATHEMATICS OF MARKET DYNAMICS
VoVix+ is built upon a multi-layered mathematical engine designed to measure what we call "second-order volatility." While standard indicators analyze price, and first-order volatility indicators (like ATR) analyze the range of price, VoVix+ analyzes the dynamics of the volatility itself. This provides insight into the market's underlying state of stability or chaos.
1. The VoVix Score: Measuring Volatility Thrust
The core of the system begins with the VoVix Score. This is a normalized measure of volatility acceleration or deceleration.
Mathematical Formula:
VoVix Score = (ATR(fast) - ATR(slow)) / (StDev(ATR(fast)) + ε)
Where:
ATR(fast) is the Average True Range over a short period, representing current, immediate volatility.
ATR(slow) is the Average True Range over a longer period, representing the baseline or established volatility.
StDev(ATR(fast)) is the Standard Deviation of the fast ATR, which measures the "noisiness" or consistency of recent volatility.
ε (epsilon) is a very small number to prevent division by zero.
Market Implementation:
Positive Score (Expansion): When the fast ATR is significantly higher than the slow ATR, it indicates a rapid increase in volatility. The market is "stretching" or expanding.
Negative Score (Contraction): When the fast ATR falls below the slow ATR, it indicates a decrease in volatility. The market is "coiling" or contracting.
Normalization: By dividing by the standard deviation, we normalize the score. This turns it into a standardized measure, allowing us to compare volatility thrust across different market conditions and timeframes. A score of 2.0 in a quiet market means the same, relatively, as a score of 2.0 in a volatile market.
2. Deviation Analysis (DEV): Gauging Volatility's Own Volatility
The script then takes the analysis a step further. It calculates the standard deviation of the VoVix Score itself.
Mathematical Formula:
DEV = StDev(VoVix Score, lookback_period)
Market Implementation:
This DEV value represents the magnitude of chaos or stability in the market's volatility dynamics. A high DEV value means the volatility thrust is erratic and unpredictable. A low DEV value suggests the change in volatility is smooth and directional.
3. The DEVMA Crossover: Identifying Regime Shifts
This is the primary signal generator. We take two moving averages of the DEV value.
Mathematical Formula:
fastDEVMA = SMA(DEV, fast_period)
slowDEVMA = SMA(DEV, slow_period)
The Core Signal:
The strategy triggers on the crossover and crossunder of these two DEVMA lines. This is a profound concept: we are not looking at a moving average of price or even of volatility, but a moving average of the standard deviation of the normalized rate of change of volatility.
Bullish Crossover (fastDEVMA > slowDEVMA): This signals that the short-term measure of volatility's chaos is increasing relative to the long-term measure. This often precedes a significant market expansion and is interpreted as a bullish volatility regime.
Bearish Crossunder (fastDEVMA < slowDEVMA): This signals that the short-term measure of volatility's chaos is decreasing. The market is settling down or contracting, often leading to trending moves or range consolidation.
⚙️ INPUTS MENU: CONFIGURING YOUR ANALYSIS ENGINE
Every input has been meticulously designed to give you full control over the strategy's behavior. Understanding these settings is key to adapting VoVix+ to your specific instrument, timeframe, and trading style.
🌀 VoVix DEVMA Configuration
🧬 Deviation Lookback: This sets the lookback period for calculating the DEV value. It defines the window for measuring the stability of the VoVix Score. A shorter value makes the system highly reactive to recent changes in volatility's character, ideal for scalping. A longer value provides a smoother, more stable reading, better for identifying major, long-term regime shifts.
⚡ Fast VoVix Length: This is the lookback period for the fastDEVMA. It represents the short-term trend of volatility's chaos. A smaller number will result in a faster, more sensitive signal line that reacts quickly to market shifts.
🐌 Slow VoVix Length: This is the lookback period for the slowDEVMA. It represents the long-term, baseline trend of volatility's chaos. A larger number creates a more stable, slower-moving anchor against which the fast line is compared.
How to Optimize: The relationship between the Fast and Slow lengths is crucial. A wider gap (e.g., 20 and 60) will result in fewer, but potentially more significant, signals. A narrower gap (e.g., 25 and 40) will generate more frequent signals, suitable for more active trading styles.
🧠 Adaptive Intelligence
🧠 Enable Adaptive Features: When enabled, this activates the strategy's performance tracking module. The script will analyze the outcome of its last 50 trades to calculate a dynamic win rate.
⏰ Adaptive Time-Based Exit: If Enable Adaptive Features is on, this allows the strategy to adjust its Maximum Bars in Trade setting based on performance. It learns from the average duration of winning trades. If winning trades tend to be short, it may shorten the time exit to lock in profits. If winners tend to run, it will extend the time exit, allowing trades more room to develop. This helps prevent the strategy from cutting winning trades short or holding losing trades for too long.
⚡ Intelligent Execution
📊 Trade Quantity: A straightforward input that defines the number of contracts or shares for each trade. This is a fixed value for consistent position sizing.
🛡️ Smart Stop Loss: Enables the dynamic stop-loss mechanism.
🎯 Stop Loss ATR Multiplier: Determines the distance of the stop loss from the entry price, calculated as a multiple of the current 14-period ATR. A higher multiplier gives the trade more room to breathe but increases risk per trade. A lower multiplier creates a tighter stop, reducing risk but increasing the chance of being stopped out by normal market noise.
💰 Take Profit ATR Multiplier: Sets the take profit target, also as a multiple of the ATR. A common practice is to set this higher than the Stop Loss multiplier (e.g., a 2:1 or 3:1 reward-to-risk ratio).
🏃 Use Trailing Stop: This is a powerful feature for trend-following. When enabled, instead of a fixed stop loss, the stop will trail behind the price as the trade moves into profit, helping to lock in gains while letting winners run.
🎯 Trail Points & 📏 Trail Offset ATR Multipliers: These control the trailing stop's behavior. Trail Points defines how much profit is needed before the trail activates. Trail Offset defines how far the stop will trail behind the current price. Both are based on ATR, making them fully adaptive to market volatility.
⏰ Maximum Bars in Trade: This is a time-based stop. It forces an exit if a trade has been open for a specified number of bars, preventing positions from being held indefinitely in stagnant markets.
⏰ Session Management
These inputs allow you to confine the strategy's trading activity to specific market hours, which is crucial for day trading instruments that have defined high-volume sessions (e.g., stock market open).
🎨 Visual Effects & Dashboard
These toggles give you complete control over the on-chart visuals and the dashboard. You can disable any element to declutter your chart or focus only on the information that matters most to you.
📊 THE DASHBOARD: YOUR AT-A-GLANCE COMMAND CENTER
The dashboard centralizes all critical information into one compact, easy-to-read panel. It provides a real-time summary of the market state and strategy performance.
🎯 VOVIX ANALYSIS
Fast & Slow: Displays the current numerical values of the fastDEVMA and slowDEVMA. The color indicates their direction: green for rising, red for falling. This lets you see the underlying momentum of each line.
Regime: This is your most important environmental cue. It tells you the market's current state based on the DEVMA relationship. 🚀 EXPANSION (Green) signifies a bullish volatility regime where explosive moves are more likely. ⚛️ CONTRACTION (Purple) signifies a bearish volatility regime, where the market may be consolidating or entering a smoother trend.
Quality: Measures the strength of the last signal based on the magnitude of the DEVMA difference. An ELITE or STRONG signal indicates a high-conviction setup where the crossover had significant force.
PERFORMANCE
Win Rate & Trades: Displays the historical win rate of the strategy from the backtest, along with the total number of closed trades. This provides immediate feedback on the strategy's historical effectiveness on the current chart.
EXECUTION
Trade Qty: Shows your configured position size per trade.
Session: Indicates whether trading is currently OPEN (allowed) or CLOSED based on your session management settings.
POSITION
Position & PnL: Displays your current position (LONG, SHORT, or FLAT) and the real-time Profit or Loss of the open trade.
🧠 ADAPTIVE STATUS
Stop/Profit Mult: In this simplified version, these are placeholders. The primary adaptive feature currently modifies the time-based exit, which is reflected in how long trades are held on the chart.
🎨 THE VISUAL UNIVERSE: DECIPHERING MARKET GEOMETRY
The visuals are not mere decorations; they are geometric representations of the underlying mathematical concepts, designed to give you an intuitive feel for the market's state.
The Core Lines:
FastDEVMA (Green/Maroon Line): The primary signal line. Green when rising, indicating an increase in short-term volatility chaos. Maroon when falling.
SlowDEVMA (Aqua/Orange Line): The baseline. Aqua when rising, indicating a long-term increase in volatility chaos. Orange when falling.
🌊 Morphism Flow (Flowing Lines with Circles):
What it represents: This visualizes the momentum and strength of the fastDEVMA. The width and intensity of the "beam" are proportional to the signal strength.
Interpretation: A thick, steep, and vibrant flow indicates powerful, committed momentum in the current volatility regime. The floating '●' particles represent kinetic energy; more particles suggest stronger underlying force.
📐 Homotopy Paths (Layered Transparent Boxes):
What it represents: These layered boxes are centered between the two DEVMA lines. Their height is determined by the DEV value.
Interpretation: This visualizes the overall "volatility of volatility." Wider boxes indicate a chaotic, unpredictable market. Narrower boxes suggest a more stable, predictable environment.
🧠 Consciousness Field (The Grid):
What it represents: This grid provides a historical lookback at the DEV range.
Interpretation: It maps the recent "consciousness" or character of the market's volatility. A consistently wide grid suggests a prolonged period of chaos, while a narrowing grid can signal a transition to a more stable state.
📏 Functorial Levels (Projected Horizontal Lines):
What it represents: These lines extend from the current fastDEVMA and slowDEVMA values into the future.
Interpretation: Think of these as dynamic support and resistance levels for the volatility structure itself. A crossover becomes more significant if it breaks cleanly through a prior established level.
🌊 Flow Boxes (Spaced Out Boxes):
What it represents: These are compact visual footprints of the current regime, colored green for Expansion and red for Contraction.
Interpretation: They provide a quick, at-a-glance confirmation of the dominant volatility flow, reinforcing the background color.
Background Color:
This provides an immediate, unmistakable indication of the current volatility regime. Light Green for Expansion and Light Aqua/Blue for Contraction, allowing you to assess the market environment in a split second.
📊 BACKTESTING PERFORMANCE REVIEW & ANALYSIS
The following is a factual, transparent review of a backtest conducted using the strategy's default settings on a specific instrument and timeframe. This information is presented for educational purposes to demonstrate how the strategy's mechanics performed over a historical period. It is crucial to understand that these results are historical, apply only to the specific conditions of this test, and are not a guarantee or promise of future performance. Market conditions are dynamic and constantly change.
Test Parameters & Conditions
To ensure the backtest reflects a degree of real-world conditions, the following parameters were used. The goal is to provide a transparent baseline, not an over-optimized or unrealistic scenario.
Instrument: CME E-mini Nasdaq 100 Futures (NQ1!)
Timeframe: 5-Minute Chart
Backtesting Range: March 24, 2024, to July 09, 2024
Initial Capital: $100,000
Commission: $0.62 per contract (A realistic cost for futures trading).
Slippage: 3 ticks per trade (A conservative setting to account for potential price discrepancies between order placement and execution).
Trade Size: 1 contract per trade.
Performance Overview (Historical Data)
The test period generated 465 total trades , providing a statistically significant sample size for analysis, which is well above the recommended minimum of 100 trades for a strategy evaluation.
Profit Factor: The historical Profit Factor was 2.663 . This metric represents the gross profit divided by the gross loss. In this test, it indicates that for every dollar lost, $2.663 was gained.
Percent Profitable: Across all 465 trades, the strategy had a historical win rate of 84.09% . While a high figure, this is a historical artifact of this specific data set and settings, and should not be the sole basis for future expectations.
Risk & Trade Characteristics
Beyond the headline numbers, the following metrics provide deeper insight into the strategy's historical behavior.
Sortino Ratio (Downside Risk): The Sortino Ratio was 6.828 . Unlike the Sharpe Ratio, this metric only measures the volatility of negative returns. A higher value, such as this one, suggests that during this test period, the strategy was highly efficient at managing downside volatility and large losing trades relative to the profits it generated.
Average Trade Duration: A critical characteristic to understand is the strategy's holding period. With an average of only 2 bars per trade , this configuration operates as a very short-term, or scalping-style, system. Winning trades averaged 2 bars, while losing trades averaged 4 bars. This indicates the strategy's logic is designed to capture quick, high-probability moves and exit rapidly, either at a profit target or a stop loss.
Conclusion and Final Disclaimer
This backtest demonstrates one specific application of the VoVix+ framework. It highlights the strategy's behavior as a short-term system that, in this historical test on NQ1!, exhibited a high win rate and effective management of downside risk. Users are strongly encouraged to conduct their own backtests on different instruments, timeframes, and date ranges to understand how the strategy adapts to varying market structures. Past performance is not indicative of future results, and all trading involves significant risk.
🔧 THE DEVELOPMENT PHILOSOPHY: FROM VOLATILITY TO CLARITY
The journey to create VoVix+ began with a simple question: "What drives major market moves?" The answer is often not a change in price direction, but a fundamental shift in market volatility. Standard indicators are reactive to price. We wanted to create a system that was predictive of market state. VoVix+ was designed to go one level deeper—to analyze the behavior, character, and momentum of volatility itself.
The challenge was twofold. First, to create a robust mathematical model to quantify these abstract concepts. This led to the multi-layered analysis of ATR differentials and standard deviations. Second, to make this complex data intuitive and actionable. This drove the creation of the "Visual Universe," where abstract mathematical values are translated into geometric shapes, flows, and fields. The adaptive system was intentionally kept simple and transparent, focusing on a single, impactful parameter (time-based exits) to provide performance feedback without becoming an inscrutable "black box." The result is a tool that is both profoundly deep in its analysis and remarkably clear in its presentation.
⚠️ RISK DISCLAIMER AND BEST PRACTICES
VoVix+ is an advanced analytical tool, not a guarantee of future profits. All financial markets carry inherent risk. The backtesting results shown by the strategy are historical and do not guarantee future performance. This strategy incorporates realistic commission and slippage settings by default, but market conditions can vary. Always practice sound risk management, use position sizes appropriate for your account equity, and never risk more than you can afford to lose. It is recommended to use this strategy as part of a comprehensive trading plan. This was developed specifically for Futures
"The prevailing wisdom is that markets are always right. I take the opposite view. I assume that markets are always wrong. Even if my assumption is occasionally wrong, I use it as a working hypothesis."
— George Soros
— Dskyz, Trade with insight. Trade with anticipation.
Bober XM v2.0# ₿ober XM v2.0 Trading Bot Documentation
**Developer's Note**: While our previous Bot 1.3.1 was removed due to guideline violations, this setback only fueled our determination to create something even better. Rising from this challenge, Bober XM 2.0 emerges not just as an update, but as a complete reimagining with multi-timeframe analysis, enhanced filters, and superior adaptability. This adversity pushed us to innovate further and deliver a strategy that's smarter, more agile, and more powerful than ever before. Challenges create opportunity - welcome to Cryptobeat's finest work yet.
## !!!!You need to tune it for your own pair and timeframe and retune it periodicaly!!!!!
## Overview
The ₿ober XM v2.0 is an advanced dual-channel trading bot with multi-timeframe analysis capabilities. It integrates multiple technical indicators, customizable risk management, and advanced order execution via webhook for automated trading. The bot's distinctive feature is its separate channel systems for long and short positions, allowing for asymmetric trade strategies that adapt to different market conditions across multiple timeframes.
### Key Features
- **Multi-Timeframe Analysis**: Analyze price data across multiple timeframes simultaneously
- **Dual Channel System**: Separate parameter sets for long and short positions
- **Advanced Entry Filters**: RSI, Volatility, Volume, Bollinger Bands, and KEMAD filters
- **Machine Learning Moving Average**: Adaptive prediction-based channels
- **Multiple Entry Strategies**: Breakout, Pullback, and Mean Reversion modes
- **Risk Management**: Customizable stop-loss, take-profit, and trailing stop settings
- **Webhook Integration**: Compatible with external trading bots and platforms
### Strategy Components
| Component | Description |
|---------|-------------|
| **Dual Channel Trading** | Uses either Keltner Channels or Machine Learning Moving Average (MLMA) with separate settings for long and short positions |
| **MLMA Implementation** | Machine learning algorithm that predicts future price movements and creates adaptive bands |
| **Pivot Point SuperTrend** | Trend identification and confirmation system based on pivot points |
| **Three Entry Strategies** | Choose between Breakout, Pullback, or Mean Reversion approaches |
| **Advanced Filter System** | Multiple customizable filters with multi-timeframe support to avoid false signals |
| **Custom Exit Logic** | Exits based on OBV crossover of its moving average combined with pivot trend changes |
### Note for Novice Users
This is a fully featured real trading bot and can be tweaked for any ticker — SOL is just an example. It follows this structure:
1. **Indicator** – gives the initial signal
2. **Entry strategy** – decides when to open a trade
3. **Exit strategy** – defines when to close it
4. **Trend confirmation** – ensures the trade follows the market direction
5. **Filters** – cuts out noise and avoids weak setups
6. **Risk management** – controls losses and protects your capital
To tune it for a different pair, you'll need to start from scratch:
1. Select the timeframe (candle size)
2. Turn off all filters and trend entry/exit confirmations
3. Choose a channel type, channel source and entry strategy
4. Adjust risk parameters
5. Tune long and short settings for the channel
6. Fine-tune the Pivot Point Supertrend and Main Exit condition OBV
This will generate a lot of signals and activity on the chart. Your next task is to find the right combination of filters and settings to reduce noise and tune it for profitability.
### Default Strategy values
Default values are tuned for: Symbol BITGET:SOLUSDT.P 5min candle
Filters are off by default: Try to play with it to understand how it works
## Configuration Guide
### General Settings
| Setting | Description | Default Value |
|---------|-------------|---------------|
| **Long Positions** | Enable or disable long trades | Enabled |
| **Short Positions** | Enable or disable short trades | Enabled |
| **Risk/Reward Area** | Visual display of stop-loss and take-profit zones | Enabled |
| **Long Entry Source** | Price data used for long entry signals | hl2 (High+Low/2) |
| **Short Entry Source** | Price data used for short entry signals | hl2 (High+Low/2) |
The bot allows you to trade long positions, short positions, or both simultaneously. Each direction has its own set of parameters, allowing for fine-tuned strategies that recognize the asymmetric nature of market movements.
### Multi-Timeframe Settings
1. **Enable Multi-Timeframe Analysis**: Toggle 'Enable Multi-Timeframe Analysis' in the Multi-Timeframe Settings section
2. **Configure Timeframes**: Set appropriate higher timeframes based on your trading style:
- Timeframe 1: Default is now 15 minutes (intraday confirmation)
- Timeframe 2: Default is 4 hours (trend direction)
3. **Select Sources per Indicator**: For each indicator (RSI, KEMAD, Volume, etc.), choose:
- The desired timeframe (current, mtf1, or mtf2)
- The appropriate price type (open, high, low, close, hl2, hlc3, ohlc4)
### Entry Strategies
- **Breakout**: Enter when price breaks above/below the channel
- **Pullback**: Enter when price pulls back to the channel
- **Mean Reversion**: Enter when price is extended from the channel
You can enable different strategies for long and short positions.
### Core Components
### Risk Management
- **Position Size**: Control risk with percentage-based position sizing
- **Stop Loss Options**:
- Fixed: Set a specific price or percentage from entry
- ATR-based: Dynamic stop-loss based on market volatility
- Swing: Uses recent swing high/low points
- **Take Profit**: Multiple targets with percentage allocation
- **Trailing Stop**: Dynamic stop that follows price movement
## Advanced Usage Strategies
### Moving Average Type Selection Guide
- **SMA**: More stable in choppy markets, good for higher timeframes
- **EMA/WMA**: More responsive to recent price changes, better for entry signals
- **VWMA**: Adds volume weighting for stronger trends, use with Volume filter
- **HMA**: Balance between responsiveness and noise reduction, good for volatile markets
### Multi-Timeframe Strategy Approaches
- **Trend Confirmation**: Use higher timeframe RSI (mtf2) for overall trend, current timeframe for entries
- **Entry Precision**: Use KEMAD on current timeframe with volume filter on mtf1
- **False Signal Reduction**: Apply RSI filter on mtf1 with strict KEMAD settings
### Market Condition Optimization
| Market Condition | Recommended Settings |
|------------------|----------------------|
| **Trending** | Use Breakout strategy with KEMAD filter on higher timeframe |
| **Ranging** | Use Mean Reversion with strict RSI filter (mtf1) |
| **Volatile** | Increase ATR multipliers, use HMA for moving averages |
| **Low Volatility** | Decrease noise parameters, use pullback strategy |
## Webhook Integration
The strategy features a professional webhook system that allows direct connectivity to your exchange or trading platform of choice through third-party services like 3commas, Alertatron, or Autoview.
The webhook payload includes all necessary parameters for automated execution:
- Entry price and direction
- Stop loss and take profit levels
- Position size
- Custom identifier for webhook routing
## Performance Optimization Tips
1. **Start with Defaults**: Begin with the default settings for your timeframe before customizing
2. **Adjust One Component at a Time**: Make incremental changes and test the impact
3. **Match MA Types to Market Conditions**: Use appropriate moving average types based on the Market Condition Optimization table
4. **Timeframe Synergy**: Create logical relationships between timeframes (e.g., 5min chart with 15min and 4h higher timeframes)
5. **Periodic Retuning**: Markets evolve - regularly review and adjust parameters
## Common Setups
### Crypto Trend-Following
- MLMA with EMA or HMA
- Higher RSI thresholds (75/25)
- KEMAD filter on mtf1
- Breakout entry strategy
### Stock Swing Trading
- MLMA with SMA for stability
- Volume filter with higher threshold
- KEMAD with increased filter order
- Pullback entry strategy
### Forex Scalping
- MLMA with WMA and lower noise parameter
- RSI filter on current timeframe
- Use highest timeframe for trend direction only
- Mean Reversion strategy
## Webhook Configuration
- **Benefits**:
- Automated trade execution without manual intervention
- Immediate response to market conditions
- Consistent execution of your strategy
- **Implementation Notes**:
- Requires proper webhook configuration on your exchange or platform
- Test thoroughly with small position sizes before full deployment
- Consider latency between signal generation and execution
### Backtesting Period
Define a specific historical period to evaluate the bot's performance:
| Setting | Description | Default Value |
|---------|-------------|---------------|
| **Start Date** | Beginning of backtest period | January 1, 2025 |
| **End Date** | End of backtest period | December 31, 2026 |
- **Best Practice**: Test across different market conditions (bull markets, bear markets, sideways markets)
- **Limitation**: Past performance doesn't guarantee future results
## Entry and Exit Strategies
### Dual-Channel System
A key innovation of the Bober XM is its dual-channel approach:
- **Independent Parameters**: Each trade direction has its own channel settings
- **Asymmetric Trading**: Recognizes that markets often behave differently in uptrends versus downtrends
- **Optimized Performance**: Fine-tune settings for both bullish and bearish conditions
This approach allows the bot to adapt to the natural asymmetry of markets, where uptrends often develop gradually while downtrends can be sharp and sudden.
### Channel Types
#### 1. Keltner Channels
Traditional volatility-based channels using EMA and ATR:
| Setting | Long Default | Short Default |
|---------|--------------|---------------|
| **EMA Length** | 37 | 20 |
| **ATR Length** | 13 | 17 |
| **Multiplier** | 1.4 | 1.9 |
| **Source** | low | high |
- **Strengths**:
- Reliable in trending markets
- Less prone to whipsaws than Bollinger Bands
- Clear visual representation of volatility
- **Weaknesses**:
- Can lag during rapid market changes
- Less effective in choppy, non-trending markets
#### 2. Machine Learning Moving Average (MLMA)
Advanced predictive model using kernel regression (RBF kernel):
| Setting | Description | Options |
|---------|-------------|--------|
| **Source MA** | Price data used for MA calculations | Any price source (low/high/close/etc.) |
| **Moving Average Type** | Type of MA algorithm for calculations | SMA, EMA, WMA, VWMA, RMA, HMA |
| **Trend Source** | Price data used for trend determination | Any price source (close default) |
| **Window Size** | Historical window for MLMA calculations | 5+ (default: 16) |
| **Forecast Length** | Number of bars to forecast ahead | 1+ (default: 3) |
| **Noise Parameter** | Controls smoothness of prediction | 0.01+ (default: ~0.43) |
| **Band Multiplier** | Multiplier for channel width | 0.1+ (default: 0.5-0.6) |
- **Strengths**:
- Predictive rather than reactive
- Adapts quickly to changing market conditions
- Better at identifying trend reversals early
- **Weaknesses**:
- More computationally intensive
- Requires careful parameter tuning
- Can be sensitive to input data quality
### Entry Strategies
| Strategy | Description | Ideal Market Conditions |
|----------|-------------|-------------------------|
| **Breakout** | Enters when price breaks through channel bands, indicating strong momentum | High volatility, emerging trends |
| **Pullback** | Enters when price retraces to the middle band after testing extremes | Established trends with regular pullbacks |
| **Mean Reversion** | Enters at channel extremes, betting on a return to the mean | Range-bound or oscillating markets |
#### Breakout Strategy (Default)
- **Implementation**: Enters long when price crosses above the upper band, short when price crosses below the lower band
- **Strengths**: Captures strong momentum moves, performs well in trending markets
- **Weaknesses**: Can lead to late entries, higher risk of false breakouts
- **Optimization Tips**:
- Increase channel multiplier for fewer but more reliable signals
- Combine with volume confirmation for better accuracy
#### Pullback Strategy
- **Implementation**: Enters long when price pulls back to middle band during uptrend, short during downtrend pullbacks
- **Strengths**: Better entry prices, lower risk, higher probability setups
- **Weaknesses**: Misses some strong moves, requires clear trend identification
- **Optimization Tips**:
- Use with trend filters to confirm overall direction
- Adjust middle band calculation for market volatility
#### Mean Reversion Strategy
- **Implementation**: Enters long at lower band, short at upper band, expecting price to revert to the mean
- **Strengths**: Excellent entry prices, works well in ranging markets
- **Weaknesses**: Dangerous in strong trends, can lead to fighting the trend
- **Optimization Tips**:
- Implement strong trend filters to avoid counter-trend trades
- Use smaller position sizes due to higher risk nature
### Confirmation Indicators
#### Pivot Point SuperTrend
Combines pivot points with ATR-based SuperTrend for trend confirmation:
| Setting | Default Value |
|---------|---------------|
| **Pivot Period** | 25 |
| **ATR Factor** | 2.2 |
| **ATR Period** | 41 |
- **Function**: Identifies significant market turning points and confirms trend direction
- **Implementation**: Requires price to respect the SuperTrend line for trade confirmation
#### Weighted Moving Average (WMA)
Provides additional confirmation layer for entries:
| Setting | Default Value |
|---------|---------------|
| **Period** | 15 |
| **Source** | ohlc4 (average of Open, High, Low, Close) |
- **Function**: Confirms trend direction and filters out low-quality signals
- **Implementation**: Price must be above WMA for longs, below for shorts
### Exit Strategies
#### On-Balance Volume (OBV) Based Exits
Uses volume flow to identify potential reversals:
| Setting | Default Value |
|---------|---------------|
| **Source** | ohlc4 |
| **MA Type** | HMA (Options: SMA, EMA, WMA, RMA, VWMA, HMA) |
| **Period** | 22 |
- **Function**: Identifies divergences between price and volume to exit before reversals
- **Implementation**: Exits when OBV crosses its moving average in the opposite direction
- **Customizable MA Type**: Different MA types provide varying sensitivity to OBV changes:
- **SMA**: Traditional simple average, equal weight to all periods
- **EMA**: More weight to recent data, responds faster to price changes
- **WMA**: Weighted by recency, smoother than EMA
- **RMA**: Similar to EMA but smoother, reduces noise
- **VWMA**: Factors in volume, helpful for OBV confirmation
- **HMA**: Reduces lag while maintaining smoothness (default)
#### ADX Exit Confirmation
Uses Average Directional Index to confirm trend exhaustion:
| Setting | Default Value |
|---------|---------------|
| **ADX Threshold** | 35 |
| **ADX Smoothing** | 60 |
| **DI Length** | 60 |
- **Function**: Confirms trend weakness before exiting positions
- **Implementation**: Requires ADX to drop below threshold or DI lines to cross
## Filter System
### RSI Filter
- **Function**: Controls entries based on momentum conditions
- **Parameters**:
- Period: 15 (default)
- Overbought level: 71
- Oversold level: 23
- Multi-timeframe support: Current, MTF1 (15min), or MTF2 (4h)
- Customizable price source (open, high, low, close, hl2, hlc3, ohlc4)
- **Implementation**: Blocks long entries when RSI > overbought, short entries when RSI < oversold
### Volatility Filter
- **Function**: Prevents trading during excessive market volatility
- **Parameters**:
- Measure: ATR (Average True Range)
- Period: Customizable (default varies by timeframe)
- Threshold: Adjustable multiplier
- Multi-timeframe support
- Customizable price source
- **Implementation**: Blocks trades when current volatility exceeds threshold × average volatility
### Volume Filter
- **Function**: Ensures adequate market liquidity for trades
- **Parameters**:
- Threshold: 0.4× average (default)
- Measurement period: 5 (default)
- Moving average type: Customizable (HMA default)
- Multi-timeframe support
- Customizable price source
- **Implementation**: Requires current volume to exceed threshold × average volume
### Bollinger Bands Filter
- **Function**: Controls entries based on price relative to statistical boundaries
- **Parameters**:
- Period: Customizable
- Standard deviation multiplier: Adjustable
- Moving average type: Customizable
- Multi-timeframe support
- Customizable price source
- **Implementation**: Can require price to be within bands or breaking out of bands depending on strategy
### KEMAD Filter (Kalman EMA Distance)
- **Function**: Advanced trend confirmation using Kalman filter algorithm
- **Parameters**:
- Process Noise: 0.35 (controls smoothness)
- Measurement Noise: 24 (controls reactivity)
- Filter Order: 6 (higher = more smoothing)
- ATR Length: 8 (for bandwidth calculation)
- Upper Multiplier: 2.0 (for long signals)
- Lower Multiplier: 2.7 (for short signals)
- Multi-timeframe support
- Customizable visual indicators
- **Implementation**: Generates signals based on price position relative to Kalman-filtered EMA bands
## Risk Management System
### Position Sizing
Automatically calculates position size based on account equity and risk parameters:
| Setting | Default Value |
|---------|---------------|
| **Risk % of Equity** | 50% |
- **Implementation**:
- Position size = (Account equity × Risk %) ÷ (Entry price × Stop loss distance)
- Adjusts automatically based on volatility and stop placement
- **Best Practices**:
- Start with lower risk percentages (1-2%) until strategy is proven
- Consider reducing risk during high volatility periods
### Stop-Loss Methods
Multiple stop-loss calculation methods with separate configurations for long and short positions:
| Method | Description | Configuration |
|--------|-------------|---------------|
| **ATR-Based** | Dynamic stops based on volatility | ATR Period: 14, Multiplier: 2.0 |
| **Percentage** | Fixed percentage from entry | Long: 1.5%, Short: 1.5% |
| **PIP-Based** | Fixed currency unit distance | 10.0 pips |
- **Implementation Notes**:
- ATR-based stops adapt to changing market volatility
- Percentage stops maintain consistent risk exposure
- PIP-based stops provide precise control in stable markets
### Trailing Stops
Locks in profits by adjusting stop-loss levels as price moves favorably:
| Setting | Default Value |
|---------|---------------|
| **Stop-Loss %** | 1.5% |
| **Activation Threshold** | 2.1% |
| **Trailing Distance** | 1.4% |
- **Implementation**:
- Initial stop remains fixed until profit reaches activation threshold
- Once activated, stop follows price at specified distance
- Locks in profit while allowing room for normal price fluctuations
### Risk-Reward Parameters
Defines the relationship between risk and potential reward:
| Setting | Default Value |
|---------|---------------|
| **Risk-Reward Ratio** | 1.4 |
| **Take Profit %** | 2.4% |
| **Stop-Loss %** | 1.5% |
- **Implementation**:
- Take profit distance = Stop loss distance × Risk-reward ratio
- Higher ratios require fewer winning trades for profitability
- Lower ratios increase win rate but reduce average profit
### Filter Combinations
The strategy allows for simultaneous application of multiple filters:
- **Recommended Combinations**:
- Trending markets: RSI + KEMAD filters
- Ranging markets: Bollinger Bands + Volatility filters
- All markets: Volume filter as minimum requirement
- **Performance Impact**:
- Each additional filter reduces the number of trades
- Quality of remaining trades typically improves
- Optimal combination depends on market conditions and timeframe
### Multi-Timeframe Filter Applications
| Filter Type | Current Timeframe | MTF1 (15min) | MTF2 (4h) |
|-------------|-------------------|-------------|------------|
| RSI | Quick entries/exits | Intraday trend | Overall trend |
| Volume | Immediate liquidity | Sustained support | Market participation |
| Volatility | Entry timing | Short-term risk | Regime changes |
| KEMAD | Precise signals | Trend confirmation | Major reversals |
## Visual Indicators and Chart Analysis
The bot provides comprehensive visual feedback on the chart:
- **Channel Bands**: Keltner or MLMA bands showing potential support/resistance
- **Pivot SuperTrend**: Colored line showing trend direction and potential reversal points
- **Entry/Exit Markers**: Annotations showing actual trade entries and exits
- **Risk/Reward Zones**: Visual representation of stop-loss and take-profit levels
These visual elements allow for:
- Real-time strategy assessment
- Post-trade analysis and optimization
- Educational understanding of the strategy logic
## Implementation Guide
### TradingView Setup
1. Load the script in TradingView Pine Editor
2. Apply to your preferred chart and timeframe
3. Adjust parameters based on your trading preferences
4. Enable alerts for webhook integration
### Webhook Integration
1. Configure webhook URL in TradingView alerts
2. Set up receiving endpoint on your trading platform
3. Define message format matching the bot's output
4. Test with small position sizes before full deployment
### Optimization Process
1. Backtest across different market conditions
2. Identify parameter sensitivity through multiple tests
3. Focus on risk management parameters first
4. Fine-tune entry/exit conditions based on performance metrics
5. Validate with out-of-sample testing
## Performance Considerations
### Strengths
- Adaptability to different market conditions through dual channels
- Multiple layers of confirmation reducing false signals
- Comprehensive risk management protecting capital
- Machine learning integration for predictive edge
### Limitations
- Complex parameter set requiring careful optimization
- Potential over-optimization risk with so many variables
- Computational intensity of MLMA calculations
- Dependency on proper webhook configuration for execution
### Best Practices
- Start with conservative risk settings (1-2% of equity)
- Test thoroughly in demo environment before live trading
- Monitor performance regularly and adjust parameters
- Consider market regime changes when evaluating results
## Conclusion
The ₿ober XM v2.0 represents a significant evolution in trading strategy design, combining traditional technical analysis with machine learning elements and multi-timeframe analysis. The core strength of this system lies in its adaptability and recognition of market asymmetry.
### Market Asymmetry and Adaptive Approach
The strategy acknowledges a fundamental truth about markets: bullish and bearish phases behave differently and should be treated as distinct environments. The dual-channel system with separate parameters for long and short positions directly addresses this asymmetry, allowing for optimized performance regardless of market direction.
### Targeted Backtesting Philosophy
It's counterproductive to run backtests over excessively long periods. Markets evolve continuously, and strategies that worked in previous market regimes may be ineffective in current conditions. Instead:
- Test specific market phases separately (bull markets, bear markets, range-bound periods)
- Regularly re-optimize parameters as market conditions change
- Focus on recent performance with higher weight than historical results
- Test across multiple timeframes to ensure robustness
### Multi-Timeframe Analysis as a Game-Changer
The integration of multi-timeframe analysis fundamentally transforms the strategy's effectiveness:
- **Increased Safety**: Higher timeframe confirmations reduce false signals and improve trade quality
- **Context Awareness**: Decisions made with awareness of larger trends reduce adverse entries
- **Adaptable Precision**: Apply strict filters on lower timeframes while maintaining awareness of broader conditions
- **Reduced Noise**: Higher timeframe data naturally filters market noise that can trigger poor entries
The ₿ober XM v2.0 provides traders with a framework that acknowledges market complexity while offering practical tools to navigate it. With proper setup, realistic expectations, and attention to changing market conditions, it delivers a sophisticated approach to systematic trading that can be continuously refined and optimized.
BTC Mining Income Oscillator Z-ScoreBTC Mining Income Oscillator (Z-Score)
Overview
The BTC Mining Income Oscillator (Z-Score) is a custom technical indicator that analyzes Bitcoin mining income to help traders identify overbought and oversold conditions. The indicator uses a Z-Score to track deviations in mining income, highlighting periods of high or low mining profitability.
This indicator is made up of:
Z-Score Line (Blue): Measures how far the current mining income deviates from its historical mean.
Mining Income Oscillator (Orange): A scaled value of mining income that oscillates within a specific range to indicate overbought and oversold conditions.
How the Indicator Works
1. Mining Income Calculation
The BTC Mining Income is determined using two main factors:
Block Reward: The number of BTC miners earn for each block mined (currently 3.125 BTC, adjustable in settings).
Transaction Fees: The average transaction fees per block (default is 0.3 BTC).
Blocks per Day: The number of blocks mined per day (default is 144).
The daily mining income in BTC is calculated as:
Mining Income
=
(
Block Reward
+
Transaction Fees
)
×
Blocks per Day
Mining Income=(Block Reward+Transaction Fees)×Blocks per Day
This value is then converted to USD by multiplying it by the current Bitcoin price.
2. Z-Score Calculation
The Z-Score measures how far the current mining income deviates from its mean over a set period (default is 90 days). The Z-Score helps identify when mining income is unusually high or low:
A high Z-Score indicates that the mining income is significantly above the historical mean, signaling overbought conditions.
A low Z-Score indicates that the mining income is significantly below the historical mean, signaling oversold conditions.
The Z-Score is calculated as follows:
Z-Score
=
(
Current Mining Income
−
Mean Income
)
Standard Deviation
Z-Score=
Standard Deviation
(Current Mining Income−Mean Income)
The result is then smoothed over a period (default is 5) to reduce noise and provide a more stable value.
3. Mining Income Oscillator
The mining income is scaled to oscillate between +20 and +90. This oscillation makes it easy to track overbought and oversold conditions in the market:
Values between 85 and 90 indicate overbought conditions (high mining profitability).
Values between 20 and 22 indicate oversold conditions (low mining profitability).
Values between 22 and 85 indicate neutral conditions, where mining profitability is normal.
The mining income oscillator helps traders spot extreme conditions (overbought or oversold) in mining profitability.
How to Read the Indicator
1. Z-Score Line (Blue)
The Z-Score represents how far current mining income is from the historical average.
Above +2: The mining income is unusually high, indicating an overbought market.
Below -2: The mining income is unusually low, indicating an oversold market.
Between -2 and +2: This range is neutral, where the mining income is within the average historical range.
2. Mining Income Oscillator (Orange)
The Mining Income Oscillator is scaled between 20 and 90.
85–90: Overbought conditions, indicating high mining profitability.
20–22: Oversold conditions, indicating low mining profitability.
22–85: Neutral conditions, indicating moderate mining profitability.
3. Background Shading
Red Shading (85–90): Indicates overbought conditions (mining income is unusually high).
Green Shading (20–22): Indicates oversold conditions (mining income is unusually low).
The shaded regions provide a visual guide to spot periods when the market is overbought or oversold.
4. Key Horizontal Lines
0 Line: Represents the neutral level for the Z-Score, where the mining income is at the historical mean.
+2 and -2 Lines: Indicate overbought and oversold conditions for the Z-Score.
90 and 20 Lines: Indicate the upper and lower bounds for the mining income oscillator.
Where the Data Comes From
Bitcoin Price: The current Bitcoin price is pulled directly from the chart.
Block Reward and Transaction Fees: These values are set manually by the user or can be updated dynamically.
Mining Income: Calculated based on the block reward, transaction fees, and current Bitcoin price.
Z-Score and Oscillator Calculations: Both are calculated based on mining income in USD over a defined look-back period.
Best Timeframe for This Indicator
This indicator is designed to work best on the 2-day chart (2D) timeframe. On the 2-day chart, the mining income data, Z-Score, and the oscillator are less sensitive to noise and short-term volatility, providing more reliable signals. While it can be used on other timeframes, the 2-day chart offers the clearest and most stable analysis.
Dskyz (DAFE) Aurora Divergence – Quant Master Dskyz (DAFE) Aurora Divergence – Quant Master
Introducing the Dskyz (DAFE) Aurora Divergence – Quant Master , a strategy that’s your secret weapon for mastering futures markets like MNQ, NQ, MES, and ES. Born from the legendary Aurora Divergence indicator, this fully automated system transforms raw divergence signals into a quant-grade trading machine, blending precision, risk management, and cyberpunk DAFE visuals that make your charts glow like a neon skyline. Crafted with care and driven by community passion, this strategy stands out in a sea of generic scripts, offering traders a unique edge to outsmart institutional traps and navigate volatile markets.
The Aurora Divergence indicator was a cult favorite for spotting price-OBV divergences with its aqua and fuchsia orbs, but traders craved a system to act on those signals with discipline and automation. This strategy delivers, layering advanced filters (z-score, ATR, multi-timeframe, session), dynamic risk controls (kill switches, adaptive stops/TPs), and a real-time dashboard to turn insights into profits. Whether you’re a newbie dipping into futures or a pro hunting reversals, this strat’s got your back with a beginner guide, alerts, and visuals that make trading feel like a sci-fi mission. Let’s dive into every detail and see why this original DAFE creation is a must-have.
Why Traders Need This Strategy
Futures markets are a battlefield—fast-paced, volatile, and riddled with institutional games that can wipe out undisciplined traders. From the April 28, 2025 NQ 1k-point drop to sneaky ES slippage, the stakes are high. Meanwhile, platforms are flooded with unoriginal, low-effort scripts that promise the moon but deliver noise. The Aurora Divergence – Quant Master rises above, offering:
Unmatched Originality: A bespoke system built from the ground up, with custom divergence logic, DAFE visuals, and quant filters that set it apart from copycat clutter.
Automation with Precision: Executes trades on divergence signals, eliminating emotional slip-ups and ensuring consistency, even in chaotic sessions.
Quant-Grade Filters: Z-score, ATR, multi-timeframe, and session checks filter out noise, targeting high-probability reversals.
Robust Risk Management: Daily loss and rolling drawdown kill switches, plus ATR-based stops/TPs, protect your capital like a fortress.
Stunning DAFE Visuals: Aqua/fuchsia orbs, aurora bands, and a glowing dashboard make signals intuitive and charts a work of art.
Community-Driven: Evolved from trader feedback, this strat’s a labor of love, not a recycled knockoff.
Traders need this because it’s a complete, original system that blends accessibility, sophistication, and style. It’s your edge to trade smarter, not harder, in a market full of traps and imitators.
1. Divergence Detection (Core Signal Logic)
The strategy’s core is its ability to detect bullish and bearish divergences between price and On-Balance Volume (OBV), pinpointing reversals with surgical accuracy.
How It Works:
Price Slope: Uses linear regression over a lookback (default: 9 bars) to measure price momentum (priceSlope).
OBV Slope: OBV tracks volume flow (+volume if price rises, -volume if falls), with its slope calculated similarly (obvSlope).
Bullish Divergence: Price slope negative (falling), OBV slope positive (rising), and price above 50-bar SMA (trend_ma).
Bearish Divergence: Price slope positive (rising), OBV slope negative (falling), and price below 50-bar SMA.
Smoothing: Requires two consecutive divergence bars (bullDiv2, bearDiv2) to confirm signals, reducing false positives.
Strength: Divergence intensity (divStrength = |priceSlope * obvSlope| * sensitivity) is normalized (0–1, divStrengthNorm) for visuals.
Why It’s Brilliant:
- Divergences catch hidden momentum shifts, often exploited by institutions, giving you an edge on reversals.
- The 50-bar SMA filter aligns signals with the broader trend, avoiding choppy markets.
- Adjustable lookback (min: 3) and sensitivity (default: 1.0) let you tune for different instruments or timeframes.
2. Filters for Precision
Four advanced filters ensure signals are high-probability and market-aligned, cutting through the noise of volatile futures.
Z-Score Filter:
Logic: Calculates z-score ((close - SMA) / stdev) over a lookback (default: 50 bars). Blocks entries if |z-score| > threshold (default: 1.5) unless disabled (useZFilter = false).
Impact: Avoids trades during extreme price moves (e.g., blow-off tops), keeping you in statistically safe zones.
ATR Percentile Volatility Filter:
Logic: Tracks 14-bar ATR in a 100-bar window (default). Requires current ATR > 80th percentile (percATR) to trade (tradeOk).
Impact: Ensures sufficient volatility for meaningful moves, filtering out low-volume chop.
Multi-Timeframe (HTF) Trend Filter:
Logic: Uses a 50-bar SMA on a higher timeframe (default: 60min). Longs require price > HTF MA (bullTrendOK), shorts < HTF MA (bearTrendOK).
Impact: Aligns trades with the bigger trend, reducing counter-trend losses.
US Session Filter:
Logic: Restricts trading to 9:30am–4:00pm ET (default: enabled, useSession = true) using America/New_York timezone.
Impact: Focuses on high-liquidity hours, avoiding overnight spreads and erratic moves.
Evolution:
- These filters create a robust signal pipeline, ensuring trades are timed for optimal conditions.
- Customizable inputs (e.g., zThreshold, atrPercentile) let traders adapt to their style without compromising quality.
3. Risk Management
The strategy’s risk controls are a masterclass in balancing aggression and safety, protecting capital in volatile markets.
Daily Loss Kill Switch:
Logic: Tracks daily loss (dayStartEquity - strategy.equity). Halts trading if loss ≥ $300 (default) and enabled (killSwitch = true, killSwitchActive).
Impact: Caps daily downside, crucial during events like April 27, 2025 ES slippage.
Rolling Drawdown Kill Switch:
Logic: Monitors drawdown (rollingPeak - strategy.equity) over 100 bars (default). Stops trading if > $1000 (rollingKill).
Impact: Prevents prolonged losing streaks, preserving capital for better setups.
Dynamic Stop-Loss and Take-Profit:
Logic: Stops = entry ± ATR * multiplier (default: 1.0x, stopDist). TPs = entry ± ATR * 1.5x (profitDist). Longs: stop below, TP above; shorts: vice versa.
Impact: Adapts to volatility, keeping stops tight but realistic, with TPs targeting 1.5:1 reward/risk.
Max Bars in Trade:
Logic: Closes trades after 8 bars (default) if not already exited.
Impact: Frees capital from stagnant trades, maintaining efficiency.
Kill Switch Buffer Dashboard:
Logic: Shows smallest buffer ($300 - daily loss or $1000 - rolling DD). Displays 0 (red) if kill switch active, else buffer (green).
Impact: Real-time risk visibility, letting traders adjust dynamically.
Why It’s Brilliant:
- Kill switches and ATR-based exits create a safety net, rare in generic scripts.
- Customizable risk inputs (maxDailyLoss, dynamicStopMult) suit different account sizes.
- Buffer metric empowers disciplined trading, a DAFE signature.
4. Trade Entry and Exit Logic
The entry/exit rules are precise, filtered, and adaptive, ensuring trades are deliberate and profitable.
Entry Conditions:
Long Entry: bullDiv2, cooldown passed (canSignal), ATR filter passed (tradeOk), in US session (inSession), no kill switches (not killSwitchActive, not rollingKill), z-score OK (zOk), HTF trend bullish (bullTrendOK), no existing long (lastDirection != 1, position_size <= 0). Closes shorts first.
Short Entry: Same, but for bearDiv2, bearTrendOK, no long (lastDirection != -1, position_size >= 0). Closes longs first.
Adaptive Cooldown: Default 2 bars (cooldownBars). Doubles (up to 10) after a losing trade, resets after wins (dynamicCooldown).
Exit Conditions:
Stop-Loss/Take-Profit: Set per trade (ATR-based). Exits on stop/TP hits.
Other Exits: Closes if maxBarsInTrade reached, ATR filter fails, or kill switch activates.
Position Management: Ensures no conflicting positions, closing opposites before new entries.
Built To Be Reliable and Consistent:
- Multi-filtered entries minimize false signals, a stark contrast to basic scripts.
- Adaptive cooldown prevents overtrading, especially after losses.
- Clean position handling ensures smooth execution, even in fast markets.
5. DAFE Visuals
The visuals are a DAFE hallmark, blending function with clean flair to make signals intuitive and charts stunning.
Aurora Bands:
Display: Bands around price during divergences (bullish: below low, bearish: above high), sized by ATR * bandwidth (default: 0.5).
Colors: Aqua (bullish), fuchsia (bearish), with transparency tied to divStrengthNorm.
Purpose: Highlights divergence zones with a glowing, futuristic vibe.
Divergence Orbs:
Display: Large/small circles (aqua below for bullish, fuchsia above for bearish) when bullDiv2/bearDiv2 and canSignal. Labels show strength (0–1).
Purpose: Pinpoints entries with eye-catching clarity.
Gradient Background:
Display: Green (bullish), red (bearish), or gray (neutral), 90–95% transparent.
Purpose: Sets the market mood without clutter.
Strategy Plots:
- Stop/TP Lines: Red (stops), green (TPs) for active trades.
- HTF MA: Yellow line for trend context.
- Z-Score: Blue step-line (if enabled).
- Kill Switch Warning: Red background flash when active.
What Makes This Next-Level?:
- Visuals make complex signals (divergences, filters) instantly clear, even for beginners.
- DAFE’s unique aesthetic (orbs, bands) sets it apart from generic scripts, reinforcing originality.
- Functional plots (stops, TPs) enhance trade management.
6. Metrics Dashboard
The top-right dashboard (2x8 table) is your command center, delivering real-time insights.
Metrics:
Daily Loss ($): Current loss vs. day’s start, red if > $300.
Rolling DD ($): Drawdown vs. 100-bar peak, red if > $1000.
ATR Threshold: Current percATR, green if ATR exceeds, red if not.
Z-Score: Current value, green if within threshold, red if not.
Signal: “Bullish Div” (aqua), “Bearish Div” (fuchsia), or “None” (gray).
Action: “Consider Buying”/“Consider Selling” (signal color) or “Wait” (gray).
Kill Switch Buffer ($): Smallest buffer to kill switch, green if > 0, red if 0.
Why This Is Important?:
- Consolidates critical data, making decisions effortless.
- Color-coded metrics guide beginners (e.g., green action = go).
- Buffer metric adds transparency, rare in off-the-shelf scripts.
7. Beginner Guide
Beginner Guide: Middle-right table (shown once on chart load), explains aqua orbs (bullish, buy) and fuchsia orbs (bearish, sell).
Key Features:
Futures-Optimized: Tailored for MNQ, NQ, MES, ES with point-value adjustments.
Highly Customizable: Inputs for lookback, sensitivity, filters, and risk settings.
Real-Time Insights: Dashboard and visuals update every bar.
Backtest-Ready: Fixed qty and tick calc for accurate historical testing.
User-Friendly: Guide, visuals, and dashboard make it accessible yet powerful.
Original Design: DAFE’s unique logic and visuals stand out from generic scripts.
How to Use
Add to Chart: Load on a 5min MNQ/ES chart in TradingView.
Configure Inputs: Adjust instrument, filters, or risk (defaults optimized for MNQ).
Monitor Dashboard: Watch signals, actions, and risk metrics (top-right).
Backtest: Run in strategy tester to evaluate performance.
Live Trade: Connect to a broker (e.g., Tradovate) for automation. Watch for slippage (e.g., April 27, 2025 ES issues).
Replay Test: Use bar replay (e.g., April 28, 2025 NQ drop) to test volatility handling.
Disclaimer
Trading futures involves significant risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Backtest results may not reflect live trading due to slippage, fees, or market conditions. Use this strategy at your own risk, and consult a financial advisor before trading. Dskyz (DAFE) Trading Systems is not responsible for any losses incurred.
Backtesting:
Frame: 2023-09-20 - 2025-04-29
Fee Typical Range (per side, per contract)
CME Exchange $1.14 – $1.20
Clearing $0.10 – $0.30
NFA Regulatory $0.02
Firm/Broker Commis. $0.25 – $0.80 (retail prop)
TOTAL $1.60 – $2.30 per side
Round Turn: (enter+exit) = $3.20 – $4.60 per contract
Final Notes
The Dskyz (DAFE) Aurora Divergence – Quant Master isn’t just a strategy—it’s a movement. Crafted with originality and driven by community passion, it rises above the flood of generic scripts to deliver a system that’s as powerful as it is beautiful. With its quant-grade logic, DAFE visuals, and robust risk controls, it empowers traders to tackle futures with confidence and style. Join the DAFE crew, light up your charts, and let’s outsmart the markets together!
(This publishing will most likely be taken down do to some miscellaneous rule about properly displaying charting symbols, or whatever. Once I've identified what part of the publishing they want to pick on, I'll adjust and repost.)
Use it with discipline. Use it with clarity. Trade smarter.
**I will continue to release incredible strategies and indicators until I turn this into a brand or until someone offers me a contract.
Created by Dskyz, powered by DAFE Trading Systems. Trade fast, trade bold.
Trend Zone Moving Averages📈 Trend Zone Moving Averages
The Trend Zone Moving Averages indicator helps traders quickly identify market trends using the 50SMA, 100SMA, and 200SMA. With dynamic background colors, customizable settings, and real-time alerts, this tool provides a clear view of bullish, bearish, and extreme trend conditions.
🔹 Features:
Trend Zones with Dynamic Background Colors
Green → Bullish Trend (50SMA > 100SMA > 200SMA, price above 50SMA)
Red → Bearish Trend (50SMA < 100SMA < 200SMA, price below 50SMA)
Yellow → Neutral Trend (Mixed signals)
Dark Green → Extreme Bullish (Price above all three SMAs)
Dark Red → Extreme Bearish (Price below all three SMAs)
Customizable Moving Averages
Toggle 50SMA, 100SMA, and 200SMA on/off from the settings.
Perfect for traders who prefer a cleaner chart.
Real-Time Trend Alerts
Get instant notifications when the trend changes:
🟢 Bullish Zone Alert – When price enters a bullish trend.
🔴 Bearish Zone Alert – When price enters a bearish trend.
🟡 Neutral Zone Alert – When trend shifts to neutral.
🌟 Extreme Bullish Alert – When price moves above all SMAs.
⚠️ Extreme Bearish Alert – When price drops below all SMAs.
✅ Perfect for Any Market
Works on stocks, forex, crypto, and commodities.
Adaptable for day traders, swing traders, and investors.
⚙️ How to Use: Trend Zone Moving Averages Strategy
This strategy helps traders identify and trade with the trend using the Trend Zone Moving Averages indicator. It works across stocks, forex, crypto, and commodities.
🟢 Bullish Trend Strategy (Green Background)
Objective: Look for buying opportunities when the market is in an uptrend.
Entry Conditions:
✅ Background is Green (Bullish Zone).
✅ Price is above the 50SMA (confirming strength).
✅ Price pulls back to the 50SMA and bounces OR breaks above a key resistance level.
Stop Loss:
🔹 Place below the most recent swing low or just under the 50SMA.
Take Profit:
🔹 First target at the next resistance level or recent swing high.
🔹 Second target if price continues higher—trail stops to lock in profits.
🔴 Bearish Trend Strategy (Red Background)
Objective: Look for shorting opportunities when the market is in a downtrend.
Entry Conditions:
✅ Background is Red (Bearish Zone).
✅ Price is below the 50SMA (confirming weakness).
✅ Price pulls back to the 50SMA and rejects OR breaks below a key support level.
Stop Loss:
🔹 Place above the most recent swing high or just above the 50SMA.
Take Profit:
🔹 First target at the next support level or recent swing low.
🔹 Second target if price keeps falling—trail stops to secure profits.
🌟 Extreme Trend Strategy (Dark Green / Dark Red Background)
Objective: Trade with momentum when the market is in a strong trend.
Entry Conditions:
✅ Dark Green Background → Extreme Bullish: Price is above all three SMAs (strong uptrend).
✅ Dark Red Background → Extreme Bearish: Price is below all three SMAs (strong downtrend).
Trade Execution:
🔹 For longs (Dark Green): Look for breakout entries above resistance or pullbacks to the 50SMA.
🔹 For shorts (Dark Red): Look for breakdown entries below support or rejections at the 50SMA.
Risk Management:
🔹 Use tighter stop losses and trail profits aggressively to maximize gains.
🟡 Neutral Trend Strategy (Yellow Background)
Objective: Avoid trading or wait for a breakout.
What to Do:
🔹 Avoid trading in this zone—price is indecisive.
🔹 Wait for confirmation (background turns green/red) before taking a trade.
🔹 Use alerts to notify you when the trend resumes.
📌 Final Tips
Use this strategy with price action for extra confirmation.
Combine with support/resistance levels to improve accuracy.
Set alerts for trend changes so you never miss an opportunity.
Enjoy!
EPS Line Indicator - cristianhkrOverview
The EPS Line Indicator displays the Earnings Per Share (EPS) of a publicly traded company directly on a TradingView chart. It provides a historical trend of EPS over time, allowing investors to track a company's profitability per share.
Key Features
📊 Plots actual EPS data for the selected stock.
📅 Updates quarterly as new EPS reports are released.
🔄 Smooths missing values by holding the last reported EPS.
🔍 Helps track long-term profitability trends.
How It Works
The script retrieves quarterly EPS using request.financial(syminfo.tickerid, "EARNINGS_PER_SHARE", "Q", barmerge.gaps_off).
If EPS data is missing for a given period, the last available EPS value is retained to maintain continuity.
The EPS values are plotted as a continuous green line on the chart.
A baseline at EPS = 0 is included to easily identify profitable vs. loss-making periods.
How to Use This Indicator
If the EPS line is trending upwards 📈 → The company is growing earnings per share, a strong sign of profitability.
If the EPS line is declining 📉 → The company’s EPS is shrinking, which may indicate financial weakness.
If EPS is negative (below zero) ❌ → The company is reporting losses per share, which can be a warning sign.
Limitations
Only works with stocks that report EPS data (not applicable to cryptocurrencies or commodities).
Does not adjust for stock splits or other corporate actions.
Best used on daily, weekly, or monthly charts for clear earnings trends.
Conclusion
This indicator is a powerful tool for investors who want to visualize earnings per share trends directly on a price chart. By showing how EPS evolves over time, it helps assess a company's profitability trajectory, making it useful for both fundamental analysis and long-term investing.
🚀 Use this indicator to track EPS growth and make smarter investment decisions!
AO/AC Trading Zones Strategy [Skyrexio] Overview
AO/AC Trading Zones Strategy leverages the combination of Awesome Oscillator (AO), Acceleration/Deceleration Indicator (AC), Williams Fractals, Williams Alligator and Exponential Moving Average (EMA) to obtain the high probability long setups. Moreover, strategy uses multi trades system, adding funds to long position if it considered that current trend has likely became stronger. Combination of AO and AC is used for creating so-called trading zones to create the signals, while Alligator and Fractal are used in conjunction as an approximation of short-term trend to filter them. At the same time EMA (default EMA's period = 100) is used as high probability long-term trend filter to open long trades only if it considers current price action as an uptrend. More information in "Methodology" and "Justification of Methodology" paragraphs. The strategy opens only long trades.
Unique Features
No fixed stop-loss and take profit: Instead of fixed stop-loss level strategy utilizes technical condition obtained by Fractals and Alligator to identify when current uptrend is likely to be over. In some special cases strategy uses AO and AC combination to trail profit (more information in "Methodology" and "Justification of Methodology" paragraphs)
Configurable Trading Periods: Users can tailor the strategy to specific market windows, adapting to different market conditions.
Multilayer trades opening system: strategy uses only 10% of capital in every trade and open up to 5 trades at the same time if script consider current trend as strong one.
Short and long term trend trade filters: strategy uses EMA as high probability long-term trend filter and Alligator and Fractal combination as a short-term one.
Methodology
The strategy opens long trade when the following price met the conditions:
1. Price closed above EMA (by default, period = 100). Crossover is not obligatory.
2. Combination of Alligator and Williams Fractals shall consider current trend as an upward (all details in "Justification of Methodology" paragraph)
3. Both AC and AO shall print two consecutive increasing values. At the price candle close which corresponds to this condition algorithm opens the first long trade with 10% of capital.
4. If combination of Alligator and Williams Fractals shall consider current trend has been changed from up to downtrend, all long trades will be closed, no matter how many trades has been opened.
5. If AO and AC both continue printing the rising values strategy opens the long trade on each candle close with 10% of capital while number of opened trades reaches 5.
6. If AO and AC both has printed 5 rising values in a row algorithm close all trades if candle's low below the low of the 5-th candle with rising AO and AC values in a row.
Script also has additional visuals. If second long trade has been opened simultaneously the Alligator's teeth line is plotted with the green color. Also for every trade in a row from 2 to 5 the label "Buy More" is also plotted just below the teeth line. With every next simultaneously opened trade the green color of the space between teeth and price became less transparent.
Strategy settings
In the inputs window user can setup strategy setting:
EMA Length (by default = 100, period of EMA, used for long-term trend filtering EMA calculation).
User can choose the optimal parameters during backtesting on certain price chart.
Justification of Methodology
Let's explore the key concepts of this strategy and understand how they work together. We'll begin with the simplest: the EMA.
The Exponential Moving Average (EMA) is a type of moving average that assigns greater weight to recent price data, making it more responsive to current market changes compared to the Simple Moving Average (SMA). This tool is widely used in technical analysis to identify trends and generate buy or sell signals. The EMA is calculated as follows:
1.Calculate the Smoothing Multiplier:
Multiplier = 2 / (n + 1), Where n is the number of periods.
2. EMA Calculation
EMA = (Current Price) × Multiplier + (Previous EMA) × (1 − Multiplier)
In this strategy, the EMA acts as a long-term trend filter. For instance, long trades are considered only when the price closes above the EMA (default: 100-period). This increases the likelihood of entering trades aligned with the prevailing trend.
Next, let’s discuss the short-term trend filter, which combines the Williams Alligator and Williams Fractals. Williams Alligator
Developed by Bill Williams, the Alligator is a technical indicator that identifies trends and potential market reversals. It consists of three smoothed moving averages:
Jaw (Blue Line): The slowest of the three, based on a 13-period smoothed moving average shifted 8 bars ahead.
Teeth (Red Line): The medium-speed line, derived from an 8-period smoothed moving average shifted 5 bars forward.
Lips (Green Line): The fastest line, calculated using a 5-period smoothed moving average shifted 3 bars forward.
When the lines diverge and align in order, the "Alligator" is "awake," signaling a strong trend. When the lines overlap or intertwine, the "Alligator" is "asleep," indicating a range-bound or sideways market. This indicator helps traders determine when to enter or avoid trades.
Fractals, another tool by Bill Williams, help identify potential reversal points on a price chart. A fractal forms over at least five consecutive bars, with the middle bar showing either:
Up Fractal: Occurs when the middle bar has a higher high than the two preceding and two following bars, suggesting a potential downward reversal.
Down Fractal: Happens when the middle bar shows a lower low than the surrounding two bars, hinting at a possible upward reversal.
Traders often use fractals alongside other indicators to confirm trends or reversals, enhancing decision-making accuracy.
How do these tools work together in this strategy? Let’s consider an example of an uptrend.
When the price breaks above an up fractal, it signals a potential bullish trend. This occurs because the up fractal represents a shift in market behavior, where a temporary high was formed due to selling pressure. If the price revisits this level and breaks through, it suggests the market sentiment has turned bullish.
The breakout must occur above the Alligator’s teeth line to confirm the trend. A breakout below the teeth is considered invalid, and the downtrend might still persist. Conversely, in a downtrend, the same logic applies with down fractals.
In this strategy if the most recent up fractal breakout occurs above the Alligator's teeth and follows the last down fractal breakout below the teeth, the algorithm identifies an uptrend. Long trades can be opened during this phase if a signal aligns. If the price breaks a down fractal below the teeth line during an uptrend, the strategy assumes the uptrend has ended and closes all open long trades.
By combining the EMA as a long-term trend filter with the Alligator and fractals as short-term filters, this approach increases the likelihood of opening profitable trades while staying aligned with market dynamics.
Now let's talk about the trading zones concept and its signals. To understand this we need to briefly introduce what is AO and AC. The Awesome Oscillator (AO), developed by Bill Williams, is a momentum indicator designed to measure market momentum by contrasting recent price movements with a longer-term historical perspective. It helps traders detect potential trend reversals and assess the strength of ongoing trends.
The formula for AO is as follows:
AO = SMA5(Median Price) − SMA34(Median Price)
where:
Median Price = (High + Low) / 2
SMA5 = 5-period Simple Moving Average of the Median Price
SMA 34 = 34-period Simple Moving Average of the Median Price
The Acceleration/Deceleration (AC) Indicator, introduced by Bill Williams, measures the rate of change in market momentum. It highlights shifts in the driving force of price movements and helps traders spot early signs of trend changes. The AC Indicator is particularly useful for identifying whether the current momentum is accelerating or decelerating, which can indicate potential reversals or continuations. For AC calculation we shall use the AO calculated above is the following formula:
AC = AO − SMA5(AO) , where SMA5(AO)is the 5-period Simple Moving Average of the Awesome Oscillator
When the AC is above the zero line and rising, it suggests accelerating upward momentum.
When the AC is below the zero line and falling, it indicates accelerating downward momentum.
When the AC is below zero line and rising it suggests the decelerating the downtrend momentum. When AC is above the zero line and falling, it suggests the decelerating the uptrend momentum.
Now let's discuss the trading zones concept and how it can create the signal. Zones are created by the combination of AO and AC. We can divide three zone types:
Greed zone: when the AO and AC both are rising
Red zone: when the AO and AC both are decreasing
Gray zone: when one of AO or AC is rising, the other is falling
Gray zone is considered as uncertainty. AC and AO are moving in the opposite direction. Strategy skip such price action to decrease the chance to stuck in the losing trade during potential sideways. Red zone is also not interesting for the algorithm because both indicators consider the trend as bearish, but strategy opens only long trades. It is waiting for the green zone to increase the chance to open trade in the direction of the potential uptrend. When we have 2 candles in a row in the green zone script executes a long trade with 10% of capital.
Two green zone candles in a row is considered by algorithm as a bullish trend, but now so strong, that's the reason why trade is going to be closed when the combination of Alligator and Fractals will consider the the trend change from bullish to bearish. If id did not happens, algorithm starts to count the green zone candles in a row. When we have 5 in a row script change the trade closing condition. Such situation is considered is a high probability strong bull market and all trades will be closed if candle's low will be lower than fifth green zone candle's low. This is used to increase probability to secure the profit. If long trades are initiated, the strategy continues utilizing subsequent signals until the total number of trades reaches a maximum of 5. Each trade uses 10% of capital.
Why we use trading zones signals? If currently strategy algorithm considers the high probability of the short-term uptrend with the Alligator and Fractals combination pointed out above and the long-term trend is also suggested by the EMA filter as bullish. Rising AC and AO values in the direction of the most likely main trend signaling that we have the high probability of the fastest bullish phase on the market. The main idea is to take part in such rapid moves and add trades if this move continues its acceleration according to indicators.
Backtest Results
Operating window: Date range of backtests is 2023.01.01 - 2024.12.31. It is chosen to let the strategy to close all opened positions.
Commission and Slippage: Includes a standard Binance commission of 0.1% and accounts for possible slippage over 5 ticks.
Initial capital: 10000 USDT
Percent of capital used in every trade: 10%
Maximum Single Position Loss: -9.49%
Maximum Single Profit: +24.33%
Net Profit: +4374.70 USDT (+43.75%)
Total Trades: 278 (39.57% win rate)
Profit Factor: 2.203
Maximum Accumulated Loss: 668.16 USDT (-5.43%)
Average Profit per Trade: 15.74 USDT (+1.37%)
Average Trade Duration: 60 hours
How to Use
Add the script to favorites for easy access.
Apply to the desired timeframe and chart (optimal performance observed on 4h BTC/USDT).
Configure settings using the dropdown choice list in the built-in menu.
Set up alerts to automate strategy positions through web hook with the text: {{strategy.order.alert_message}}
Disclaimer:
Educational and informational tool reflecting Skyrex commitment to informed trading. Past performance does not guarantee future results. Test strategies in a simulated environment before live implementation
These results are obtained with realistic parameters representing trading conditions observed at major exchanges such as Binance and with realistic trading portfolio usage parameters.
