This indicator is based of Subhashish Pani's (power of stocks) 5 EMA Strategy.
It plots 5 EMA and Buy/Sell signals with Target & Stoploss levels.
What is Subhashish Pani's (power of stocks) 5 EMA Strategy :- His strategy is very simple to understand. for intraday use 5 minutes timeframe for selling. You can sell futures, sell call or buy Puts in selling strategy. What this strategy tries to do is , it tries to catch the tops, so when you sell at top & it turns out to be a reversal point then you can get good profit. this will hit stop losses often, but stop losses are small and minimum target should be 1:3. but if you stay with the trend you can get big profits. According to Subhashish Pani this strategy has 60% success rate.
Strategy for Selling (Short future/Call/stock or buy Put) When ever a Candle closes completely above 5 ema (no part of candle should be touching the 5ema), then that candle should be considered as Alert Candle. If the next candle is also completely above 5 ema and it has not broken the low of previous alert candle, Then the previous Alert Candle should be ignored and the new candle should be considered as new Alert Candle. so if this goes on then continue shifting the Alert Candle, but whenever the next candle breaks the low of the Alert Candle we should take the Short trade (Short future/Call/stock or buy Put). Stoploss will be above high of the Alert Candle and minimum target will be 1:3.
Strategy for Buying (Buy future/Call/stock or sell Put) When ever a Candle closes completely below 5 ema (no part of candle should be touching the 5ema), then that candle should be considered as Alert Candle. If the next candle is also completely below 5 ema and it has not broken the high of previous alert candle, Then the previous Alert Candle should be ignored and the new candle should be considered as new Alert Candle. so if this goes on then continue shifting the Alert Candle, but whenever the next candle breaks the high of the Alert Candle we should take the Long trade (Buy future/Call/stock or sell Put). Stoploss will be below low of the Alert Candle and minimum target will be 1:3.
Buy/Sell with extra conditions : it just adds 1 more condition to buying/selling 1. checks if closing of current candle is lower than alert candles closing for Selling & checks if closing of current candle is higher than alert candles closing for Buyling. This can sometimes save you from false moves but by using this, you can also miss out on big moves as you'll enter trade after candle closing instead of entering at break of high/low.
Note :- According to Subhashish Pani Timeframe for intraday buying should be 15 minutes Timeframe.
If you haven't understood the strategy by reading above description, then search for "Subhashish Pani's (power of stocks) 5 EMA Strategy" on youtube to get a deeper understanding.
Note:- This is not only for Intraday trading , you can use this strategy for Positional/Swing trading as well. If you use this on Monthly Timeframe then it can be very good for Long Term Investing as well. Rules will be same for all types of trades & Timeframes.
Notes de version
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changelog : Added Alerts
Notes de version
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Changelog :- Updated alerts with price levels for Buying , Selling , SL & Targets
Notes de version
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Changelog :- minor changes - shows price with the labels
Notes de version
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Options in Settings :- ( This was already there in settings, but was not written in description) Enable the Extra SL shown below :- Tick to enable the Extra SL and untick to disable it. ( added on 21-11-2022)
Value to set SL no.of points below-low or above-high :- This will add the value that is entered here to the original SL.
Risk to reward ratio : the entered value here denotes the risk to reward ratio.
Show Sell signal :- Tick to enable the Sell Signals and untick to disable it.
Show Buy signal :- Tick to enable the Buy Signals and untick to disable it.
Buy/Sell with Extra Condition - candle close :- If enabled it will generate Buy/Sell signals only when the candle closes below low or above high of the alert candle. Else it will generate Buy/Sell signals when the candle breaks the low or high of the alert candle.
Changelog :- provided an option to enable or disable the extra SL.
@HPotter, Wow this really means a lot to me, I never thought that I would ever get a comment from any "WIZARD" on my scripts. Thank you so much for the appreciation.
@prakashshah1230, you can use chat on Tradingview to contact me, the rules don't allow me to share my contact details in comments.
guptavinayak
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@Keanu_ritz , brother, sorry I added a few lines without your permission , this is also from Subhasis Sir , he uses Bollinger band to see if market is stretched or not using standard deviation of 1.5...
So just before your code starts at : usl = input.int(defval=5 , title='Value to set SL number of points below-low or above-high', minval=1, maxval=100, group='PowerOfStocks 5EMA - 𝒦𝑒𝒶𝓃𝓊_𝑅𝒾𝒯𝓏')
if you could add the following lines above , to draw the bollinger bands . When the candles start entering the bollinger bands, its a trade confirmation , @YCAsh , hope this will be helpful.... i have back tested it, can you also back test
@guptavinayak, I really appreciate your reply & effort to make it better, thanks for that. But I already have made a separate script for his Bollinger band strategy & another one which combines both strategies to take trade. But I haven't published them yet as i've already mentioned in another reply h t t p s : / / in.tradingview.com/script/0cUu6m0O-PowerOfStocks-5EMA/#tc9327443 , I have tradingview's limitations can't publish more than 2 public scripts in a month.
@guptavinayak, here's the link for the one with both strategies --> h t t p s : / / in.tradingview.com/script/q4oJNMqK-Power-Of-Stocks-Bollinger-Band-5Ema-Indicator-Keanu-RiTz/
siddharthjm23
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Hey Keanu,
Buy signals are not showing on this code Could you please check it again?