ZenAlgo - CryptoTrend 1.0ZenAlgo - Trend Indicator
Comprehensive Market Trend Analysis Tool
Overview
ZenAlgo - Trend is a powerful market analysis tool designed to provide an overarching view of major financial instruments and market indicators. It consolidates trends from multiple instruments into an intuitive dashboard, enabling traders to quickly gauge market sentiment, spot key trends, and make informed decisions.
Key Features
Macro Trend Analysis: Tracks major instruments such as BINANCE:BTCUSDT , CRYPTOCAP:BTC.D , Total Market Cap ( CRYPTOCAP:TOTAL , CRYPTOCAP:TOTAL2 , CRYPTOCAP:TOTAL3 ), CAPITALCOM:DXY (US Dollar Index), CRYPTOCAP:USDT.D (USDT Dominance), BINANCE:ETHUSDT , BINANCE:ETHBTC , and BINANCE:SOLUSDT .
Heikin Ashi-Based Trend Detection: Provides a smooth representation of trends by leveraging Heikin Ashi calculations to reduce noise.
Daily Percentage Change: Automatically calculates percentage changes from the daily open price for quick assessment of market movements.
Seasonal Market Labels: Identifies key market conditions, such as "BTC UP + ALT DUMP," "FIRE SELL," or "BTC + ALT PUMP (BOOST)," to highlight significant trends.
Customizable Dashboard: Displays trends and percentage changes in a color-coded table with adjustable position and text size.
Dark Mode Support: Optimized for extended trading sessions with reduced eye strain.
How It Works
Tracks and displays trends using Heikin Ashi candles:
Uptrend: When Heikin Ashi close > Heikin Ashi open.
Downtrend: When Heikin Ashi close ≤ Heikin Ashi open.
Calculates daily percentage changes to show market movement relative to the daily open price.
Displays market state labels based on trend analysis of multiple instruments.
Use Cases
Broad Market Insights: Quickly identify bullish or bearish trends across major market components.
Trend Analysis for Altcoins and Dominance: Use CRYPTOCAP:BTC.D (BTC Dominance) and Total Market Cap trends to understand money flow between Bitcoin, altcoins, and stablecoins.
Market Conditions Identification: Recognize unique scenarios like "FIRE SELL" or "BOOST" phases to adapt your strategy effectively.
Customization Options
Position the trend dashboard anywhere on the chart to avoid interference with other indicators.
Adjust text size to suit different screen sizes and personal preferences.
Enable Dark Mode for visually comfortable trading experiences.
Important Considerations
This tool provides trend-following insights and does not predict future price movements.
Best used in conjunction with other technical analysis tools for a well-rounded trading strategy.
Heikin Ashi smoothing may introduce slight lag, helping to avoid noise and false signals in volatile markets.
Example Scenario
If BINANCE:BTCUSDT shows an uptrend while CRYPTOCAP:TOTAL3 (crypto market cap excluding BTC and ETH) trends downward, it signals a potential "BTC UP + ALT DUMP" situation. This insight helps traders prioritize Bitcoin over altcoins in such market conditions.
Conclusion
ZenAlgo - Trend is an indispensable tool for traders seeking a macro-level understanding of market trends. Its intuitive design, customizable dashboard, and robust analysis features make it suitable for both novice and experienced traders. Equip yourself with ZenAlgo - Trend to stay ahead in the fast-paced world of trading.
Learn More About ZenAlgo
Cryptomarket
MEMEQUANTRAYDIUM:VVAIFUSOL_9UMUN9.USD MEMEQUANT: A Comprehensive Tool for Price Analysis
Description:
MEMEQUANT is an advanced tool designed to help traders identify key support, resistance, and price correction zones. Combining technical analysis features such as trend lines, correction zones, and Fibonacci levels, this indicator provides a holistic view of price movements.
Key Features:
1. Correction Zones:
• Identifies correction zones between 60% and 80% from the highest price.
• Fully customizable, allowing users to adjust transparency and colors.
2. Fibonacci Levels:
• Displays Fibonacci levels (0.236, 0.382, 0.5, 0.618, 0.786) on the chart.
• Allows users to adjust level colors and transparency.
3. Dynamic Trend Lines:
• Automatically draws support and resistance lines based on short-term and long-term periods.
• Alerts can be enabled to notify users when prices touch or break these levels.
4. Customization Options:
• Users can modify colors, line lengths, and various settings for each feature.
• Adaptable to different trading strategies.
5. Alerts:
• Notifies users when prices reach critical zones or break key levels.
Why Use MEMEQUANT?
This indicator offers a simple yet powerful design that covers all your technical analysis needs. By integrating Fibonacci levels, trend lines, and correction zones into one tool, it simplifies decision-making in volatile markets.
How to Use:
1. Add the indicator to your chart.
2. Customize line lengths, colors, and transparency through the settings panel.
3. Analyze trend lines, correction zones, and Fibonacci levels to refine your strategy.
Note:
MEMEQUANT is a support tool and should not be used as the sole basis for trading decisions. Always practice proper risk management.
CDI(Cryptomarket Dominance Index)Cryptomarket Dominance Index
This indicator analyzes the crypto market sentiment by utilizing the dominance data of Bitcoin, Ethereum, stablecoins, and altcoins.
Inputs: Define overbought/oversold thresholds and the lookback period for historical analysis.
Data Fetching: Retrieve dominance data for Bitcoin, Ethereum and stablecoins(usdt+usdc).
Calculations: Compute key metrics such as stablecoin and altcoin dominance, and generate standardized oscillators (BTC, stablecoin, altcoin) for analysis.
Output: The oscillators are scaled between 0–100, where 50 represents the average, 70+ indicates overbought, and 30- indicates oversold conditions.
**market sentiment analysis example.
- stablecoin(usdt+usdc) dominance(green line) is above the overbought level and the btc dominance(blue line) is below the oversold level : the market may have been gone down enough and it can be opportunity to start long.
- the btc dominance(blue line) is above the overbought level and stablecoin(usdt+usdc) dominance(green line) is below the oversold level : the market may have been gone up enough and it can be opportunity to start short.
이 지표는 비트코인, 이더리움, 스테이블코인, 알트코인의 점유율 데이터를 기반으로 시장의 투자 심리를 확인하는 데 활용됩니다.
입력값: 과매수/과매도 기준값과 과거 데이터를 분석할 기간을 설정합니다.
데이터 수집: 비트코인, 이더리움, 스테이블코인(USDT + USDC)의 점유율 데이터를 가져옵니다.
계산: 스테이블코인 및 알트코인 점유율과 같은 주요 지표를 계산하고, 이를 기반으로 표준화된 오실레이터(BTC, 스테이블코인, 알트코인)를 생성합니다.
결과: 오실레이터는 0~100 범위로 나타나며, 50은 평균을 의미하고 70 이상은 과매수, 30 이하는 과매도를 나타냅니다.
시장 심리 분석 예시
스테이블코인(USDT + USDC) 점유율(녹색 선)이 과매수 수준 위에 있고, 비트코인 점유율(파란 선)이 과매도 수준 아래에 있다면: 시장이 충분히 하락했을 가능성이 있으며, 롱 포지션을 시작할 기회일 수 있습니다.
비트코인 점유율(파란 선)이 과매수 수준 위에 있고, 스테이블코인 점유율(녹색 선)이 과매도 수준 아래에 있다면: 시장이 충분히 상승했을 가능성이 있으며, 숏 포지션을 시작할 기회일 수 있습니다.
Capital Grow Position CalculatorThis is a script created for our Capital grow users which allows you to correctly configure your position according to the risk you wish to assume in any operation. You just have to enter the Entry Price, Tp and Sl values in addition to the risk you want in the operation and it will show you the R/R margin and potential profits.
With this script you can simplify the setup process for your operation and have an estimated value of how much your profits will be.
NexTrade
Overview of NexTrade: The Future of Crypto Trading
Introduction
NexTrade is a cutting-edge algorithmic trading platform designed to optimize cryptocurrency trading strategies. Developed by myself, a software engineer with a passion for quantitative development. Over the past year, I have focused on learning and applying quantitative techniques to the crypto space, ultimately crafting a platform that leverages advanced market analysis, automation, and robust risk management to help investors maximize returns while minimizing risk. NexTrade is engineered to help you capitalize on market movements in a fast-paced and highly competitive space, that is Cryptocurrency.
Key Features and Advantages
Sophisticated Market Analysis: NexTrade uses a comprehensive market analysis framework that examines historical trends, price movements, and market conditions across multiple cryptocurrency exchanges. The algorithm identifies trading opportunities by chart analysis on higher timeframes in order to follow trends, allowing it to execute trades at optimal moments.
Multi-Exchange Integration: NexTrade connects to multiple leading cryptocurrency exchanges, such as Binance, Kraken, and Coinbase Pro, to ensure access to diverse liquidity pools. This multi-exchange connectivity allows the platform to execute trades at the most favorable prices, optimizing profitability and minimizing slippage across various platforms. However, we suggest using the exchange with lowest fees possible.
Risk Management: NexTrade’s risk management features such as Stop Losses, ATR Trailing SL, and ADX chop indicator allows us to ensure we are effectively managing our risk.
Backtesting and Optimization: Before going live, NexTrade’s trading strategies undergo rigorous backtesting using historical market data. This enables users to see how strategies would have performed under various conditions, providing transparency and confidence in the platform’s potential for generating consistent returns. Ongoing optimization ensures that strategies evolve in response to market changes.
Real-Time Performance Monitoring: Users have access to detailed, real-time performance reports, tracking key metrics such as trades executed, profits, losses, and overall portfolio performance. This transparency allows investors to make informed decisions and monitor their investments closely at any time.
Market Opportunity
The cryptocurrency market continues to experience rapid growth, with trillions of dollars in trading volume annually. However, it is also notoriously volatile, creating both risk and reward opportunities for traders. To successfully navigate this market, investors need sophisticated tools that can automate the trading process and optimize decisions based on accurate market analysis.
NexTrade was developed to address this need. With its combination of data-driven market analysis, automated execution, and risk management, NexTrade is positioned to help investors gain an edge in a market that is often unpredictable and challenging. The platform offers a reliable, scalable solution to crypto trading, designed for both beginners and seasoned professionals.
Why Invest in NexTrade?
Scalable and Flexible: Whether you’re trading small amounts or large volumes, NexTrade can scale to accommodate your needs. The platform supports multiple exchanges, giving users the flexibility to diversify and grow their investments. Users can start with as low as $100!
Risk-Adjusted Returns: By focusing on risk management, NexTrade aims to deliver returns that are balanced with the level of risk the investor is willing to accept. The algorithm continuously adjusts trading strategies to align with market conditions, maximizing the potential for profits while minimizing the likelihood of significant losses.
24/7 Trading: The cryptocurrency market operates around the clock, and NexTrade is designed to take advantage of this. Its automated nature means that it can execute trades at any time, without the need for human intervention.
Conclusion
NexTrade offers a sophisticated yet accessible solution for investors looking to capitalize on the growth of the cryptocurrency market. With its focus on data-driven analysis, automated trade execution, and advanced risk management, NexTrade empowers investors to achieve optimal returns while managing risk effectively. Whether you are new to crypto or an experienced trader, NexTrade provides the tools needed to stay competitive and succeed in a fast-moving market.
By investing in NexTrade, you are gaining access to a proven algorithmic trading platform that has the potential to enhance your crypto trading strategy and deliver consistent results. The future of cryptocurrency trading is automated, risk-managed, and optimized—and NexTrade is leading the way.
If users wish the enable the chop detector on the bot, which uses ADX, they can turn it on in the settings after the strategu is added to the chart. By default, it is set to false.
Crypto Market Cap Momentum Analyzer (AiBitcoinTrend)The Crypto Market Cap Momentum Analyzer (AiBitcoinTrend) is a robust tool designed to uncover trading opportunities by blending market cap analysis and momentum dynamics. Inspired by research-backed quantitative strategies, this indicator helps traders identify trend-following and mean-reversion setups in the cryptocurrency market by evaluating recent performance and market cap size.
This indicator classifies cryptocurrencies into market cap quintiles and ranks them based on their 2-week momentum. It then suggests potential trades—whether to go long, anticipate reversals, or simply hold—based on the crypto's market cap group and momentum trends.
👽 How the Indicator Works
👾 Market Cap Classification
The indicator categorizes cryptocurrencies into one of five market cap groups based on user-defined inputs:
Large Cap: Highest market cap tier
Upper Mid Cap: Second highest group
Mid Cap: Middle-tier market caps
Lower Mid Cap: Slightly below the mid-tier
Small Cap: Lowest market cap tier
This classification dynamically adjusts based on the provided market cap data, ensuring that you’re always working with a representative market structure.
👾 Momentum Calculation
By default, the indicator uses a 2-week momentum measure (e.g., a 14-day lookback when set to daily). It compares a cryptocurrency’s current price to its price 14 bars ago, thereby quantifying its short-term performance. Users can adjust the momentum period and rebalance period to capture shorter or longer-term trends depending on their trading style.
👾 Dynamic Ranking and Trade Suggestions
After assigning cryptos to size quintiles, the indicator sorts them by their momentum within each quintile. This two-step process results in:
Long Trade: For smaller market cap groups (Small, Lower Mid, Mid Cap) that have low (bottom-quintile) momentum, anticipating a trend continuation or breakout.
Reversal Trade: For the largest market cap group (Large Cap) that shows low momentum, expecting a mean-reversion back to equilibrium.
Hold: In scenarios where the coin’s momentum doesn’t present a strong contrarian or trend-following signal.
👽 Applications
👾 Trend-Following in Smaller Caps: Identify small or mid-cap cryptos with low momentum that might be poised for a breakout or sustained trend.
👾 Mean-Reversion in Large Caps: Pinpoint large-cap cryptocurrencies experiencing a temporary lull in performance, potentially ripe for a rebound.
👽 Why It Works in Crypto
The cryptocurrency market is heavily driven by retail investor sentiment and volatility. Research shows that:
Small-Cap Cryptos: Tend to experience higher volatility and speculative trends, making them ideal for momentum trades.
Large-Cap Cryptos: Exhibit more predictable behavior, making them suitable for mean-reversion strategies when momentum is low.
This indicator captures these dynamics to give traders a strategic edge in identifying both momentum and reversal opportunities.
👽 Indicator Settings
👾 Rebalance Period: The frequency at which momentum and trade suggestions are recalculated (Daily, Weekly, Monthly).
Shorter Periods (Daily): Fast updates, suitable for short-term trades, but more noise.
Longer Periods (Weekly/Monthly): Smoother signals, ideal for swing trading and more stable trends.
👾 Momentum Period: The lookback period for momentum calculation (default is 14 bars).
Shorter Periods: More responsive but prone to noise.
Longer Periods : Reflects broader trends, reducing sensitivity to short-term fluctuations.
Disclaimer: This information is for entertainment purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
Cryptocurrency SentimentOverview
This script focuses on calculating and visualizing the sentiment difference between LONG positions and SHORT positions for a selected cryptocurrency pair on the Bitfinex exchange. It provides a clean and clear visual representation of the sentiment, helping traders analyze market behavior.
Key Features
Dynamic Symbol Selection:
The script automatically detects the cryptocurrency symbol from the chart (syminfo.basecurrency) and dynamically constructs the LONGS and SHORTS ticker symbols.
Works seamlessly for pairs like BTCUSD, ETHUSD, and others available on Bitfinex.
Sentiment Calculation:
The sentiment difference is calculated as:
Sentiment Difference=−1×(100− SHORTS/LONGS ×100)
LONGS : The total number of long positions.
SHORTS : The total number of short positions.
If SHORTS is 0, the value is safely skipped to avoid division errors.
Color Coding:
The script visually highlights the sentiment difference:
Green Line: Indicates that LONG positions are dominant (bullish sentiment).
Red Line: Indicates that SHORT positions are dominant (bearish sentiment).
Zero Reference Line:
A gray horizontal line at 0 helps users quickly identify the transition between bullish (above zero) and bearish (below zero) sentiment.
How It Works
Fetching Data:
The script uses request.security to fetch LONGS and SHORTS data at the current chart timeframe (timeframe.period) for the dynamically generated Bitfinex tickers.
Handling Data:
Missing or invalid data (NaN) is filtered out to prevent errors.
Extreme spikes or irregular values are safely avoided.
Visualization:
The sentiment difference is plotted with dynamic color coding:
Green when LONGS > SHORTS (bullish sentiment).
Red when SHORTS > LONGS (bearish sentiment).
Benefits
Market Sentiment Insight: Helps traders quickly identify if the market is leaning towards bullish or bearish sentiment based on actual LONG and SHORT position data.
Dynamic and Adaptive: Automatically adjusts to the selected cryptocurrency symbol on the chart.
Clean Visualization: Focuses solely on sentiment difference with color-coded signals, making it easy to interpret.
Best Use Cases
Trend Confirmation: Use the sentiment difference to confirm trends during bullish or bearish moves.
Market Reversals: Identify potential reversals when sentiment shifts from positive (green) to negative (red) or vice versa.
Sentiment Monitoring: Monitor the overall market bias for cryptocurrencies like BTC, ETH, XRP, etc., in real-time.
Sample Chart Output
Above Zero → Green Line: Bullish sentiment dominates.
Below Zero → Red Line: Bearish sentiment dominates.
Zero Line → Transition point for shifts in sentiment.
Market Anomaly Detector (MAD)Market Anomaly Detector (MAD) Indicator - Detailed Description:
The Market Anomaly Detector (MAD) Indicator is a unique tool designed to identify potential market anomalies by combining several price action-based and momentum indicators. This indicator is especially useful for traders who seek to identify significant market shifts and anomalies before they become visible in conventional technical indicators.
Key Features of the MAD Indicator:
1. Z-Score Threshold for Anomaly Detection:
• The Z-Score measures how far a current price is from its average over a defined period, normalized by standard deviation. This allows the MAD indicator to detect outliers or anomalies in price movements.
• By adjusting the Z-Score Threshold, traders can tune the sensitivity of the indicator to capture only the most significant price deviations, filtering out noise and reducing false signals.
2. Volume and Liquidity Filter:
• Volume is a key indicator of market participation and sentiment. The MAD Indicator uses a volume multiplier to assess when price movements are supported by sufficient trading volume.
• A volume spike is identified when the current volume exceeds the average volume by a certain multiplier. This ensures that only high-confidence signals are generated, particularly useful for spotting trend reversals and breakout opportunities.
3. Signal Cooldown Period:
• To prevent overfitting and reduce false signals, a signal cooldown period is implemented. Once a buy or sell signal is triggered, the indicator waits for a specified number of bars (e.g., 5) before triggering another signal, even if the price action meets the criteria for a new signal. This helps maintain a cleaner trading environment and avoids confusion when the market is volatile.
4. Upper and Lower Bands for Trend Confirmation:
• The MAD Indicator uses bands based on the mean price and standard deviation, similar to Bollinger Bands. These upper and lower bands help to define the expected price range for a given period, indicating overbought or oversold conditions.
• The combination of Z-Score, volume, and band analysis helps pinpoint when the price breaks out of expected ranges, providing early warning signs for potential market shifts.
5. Trend Confirmation from Higher Timeframes:
• The MAD Indicator includes a multi-timeframe approach to trend confirmation, using the 50-period EMA on a higher timeframe (e.g., 1-hour chart). This ensures that signals are aligned with the overall market trend, enhancing the reliability of buy and sell signals.
How It Works:
• The MAD Indicator continuously monitors price action, volume, and statistical anomalies, using the Z-Score to determine when the price is significantly deviating from its historical average.
• When the price breaks above the upper band and a bullish anomaly is detected, a buy signal is generated. (Green Background)
• Similarly, when the price breaks below the lower band and a bearish anomaly is detected, a sell signal is triggered. (Red Background
• By filtering signals based on volume and using the cooldown period, the MAD Indicator ensures that only high-quality trades are signaled.
How to Use the MAD Indicator:
• Buy Signal: Occurs when the price breaks above the upper band and there is a significant deviation from the mean (bullish anomaly).
• Sell Signal: Occurs when the price breaks below the lower band and there is a significant deviation from the mean (bearish anomaly).
• Volume Confirmation: Ensure that the buy/sell signals are supported by a volume spike, indicating strong market participation.
• Signal Cooldown Period: After a signal is triggered, the indicator waits for the cooldown period to avoid triggering multiple signals in quick succession.
Why It’s Worth Paying For:
The MAD Indicator combines advanced statistical analysis (Z-Score), price action, and volume analysis to identify market anomalies and breakouts before they are visible on standard indicators. By leveraging the power of mean reversion and statistical anomalies, this tool provides traders with high-confidence signals that can lead to profitable trades, especially in volatile markets. The integration of a multi-timeframe trend filter ensures that signals are aligned with the overall market trend, reducing the likelihood of false breakouts.
This indicator is ideal for trend-following traders looking for high-probability entries and mean-reversion traders aiming to capture price deviations. The signal cooldown period and volume filter provide an additional layer of precision, ensuring that you only act on the strongest market signals.
Bitcoin: Mayer MultipleMayer Multiple Indicator
The Mayer Multiple is a powerful tool designed to help traders assess market conditions and identify optimal buying or selling opportunities. It calculates the ratio between the current price and its 200-day simple moving average (SMA), visualizing key thresholds that indicate value zones, caution areas, and overheated markets.
Key Features:
Dynamic Market Zones: Clearly marked levels like "Smash Buy," "Boost DCA," and "Extreme Euphoria" to guide your trading decisions.
Customizable Input: Adjust the SMA length to fit your strategy.
Color-Coded Signals: Intuitive visualization of market sentiment for quick analysis.
Comprehensive Thresholds: Historical insights into price behavior with plotted reference levels based on probabilities.
This indicator is ideal for traders aiming to enhance their long-term strategies and improve decision-making in volatile markets. Use it to gain an edge in identifying potential turning points and managing risk effectively.
DCA Valuation & Unrealized GainsThis Pine Script for TradingView calculates and visualizes the relationship between a Dollar Cost Average (DCA) price and the All-Time High (ATH) price for over 50 different cryptocurrencies. Here's what it does:
1. Inputs for DCA Prices:
- Users can manually input DCA prices for specific cryptocurrencies (e.g., BTC, ETH, BNB).
2. Dynamic ATH Calculation:
- Dynamically calculates the ATH price for the current asset using the highest price in the chart's loaded data and persists this value across bars.
3. Percentage Change from DCA to ATH:
- Computes the percentage gain from the DCA price to the ATH price.
4. Visualizations:
- Draws a line at the DCA price and the ATH price, both extended to the right.
- Adds an arrow pointing from the DCA price to the ATH, offset by 10 bars into the future.
- Displays labels for:
- The percentage gain from DCA to ATH.
- "No DCA Configured" if no valid DCA price is set for the asset.
5. Color Coding:
- Labels and arrows are color-coded to indicate positive or negative percentage changes:
- Green for gains.
- Red for losses.
6. Adaptability:
- The script dynamically adjusts to the current asset based on its ticker and uses the corresponding DCA price.
This functionality provides traders with clear insights into their investment's performance relative to its ATH, aiding in decision-making.
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To add a new asset to the script:
1. Define the DCA Input: Add a new input for the asset's DCA price using the `input.float` function. For example:
dcaPriceNEW = input.float(title="NEW DCA Price", defval=0.1, tooltip="Set the DCA price for NEW")
2. Add the Asset Logic: Include a conditional check for the new asset in the ticker matching logic:
if str.contains(currentAsset, "NEW") and dcaPriceNEW != 0
dcaPrice := dcaPriceNEW
Where NEW is the ticker symbol of the asset you're adding.
NOTE: SOLO had to be put before SOL because otherwise the indicator was pulling the DCA price from SOL even on the SOLO chart. If you have a similar issue, try that fix.
Adding an asset requires only these two changes. Once done, the script dynamically incorporates the new asset into its calculations and visualizations.
Cryptocurrency StrengthMulti-Currency Analysis: Monitor up to 19 different currencies simultaneously, including major pairs like USD, EUR, JPY, and GBP, as well as emerging market currencies such as CNY, INR, and BRL.
Customizable Display: Easily toggle the visibility of each currency and personalize their colors to suit your preferences, allowing for a tailored analysis experience.
Real-Time Strength Measurement: The indicator calculates and displays the relative strength of each currency in real-time, helping you identify potential trends and trading opportunities.
Clear Visual Representation: With color-coded lines and a dynamic legend, the indicator presents complex currency relationships in an easy-to-understand format.
Advantages
Comprehensive Market View: Gain insights into the broader forex market dynamics by analyzing multiple currencies at once.
Trend Identification: Quickly spot strong and weak currencies, aiding in the identification of potential trending pairs.
Divergence Detection: Use the indicator to identify divergences between currency strength and price action, potentially signaling reversals or continuation patterns.
Flexible Time Frames: Apply the indicator across various time frames to align with your trading strategy, from intraday to long-term analysis.
Enhanced Decision Making: Make more informed trading decisions by understanding the relative strength of currencies involved in your trades.
Unique Qualities
TSI-Based Calculations: Utilizes the True Strength Index for a more nuanced and responsive measure of currency strength compared to simple price-based indicators.
Adaptive Legend: The indicator features a dynamic legend that updates automatically based on the selected currencies, ensuring a clutter-free and relevant display.
Emerging Market Inclusion: Unlike many standard currency strength indicators, this tool includes a wide range of emerging market currencies, providing a truly global perspective.
Whether you're a seasoned forex trader or just starting out, this Currency Strength Indicator offers valuable insights that can complement your existing strategy and potentially improve your trading outcomes. Its combination of comprehensive analysis, customization options, and clear visualization makes it an essential tool for navigating the complex world of currency trading.
RSI Strategy With TP/SL - Lower TFThis Pine Script strategy integrates the Relative Strength Index (RSI) for trade signals with user-defined Take Profit (TP) and Stop Loss (SL) levels. It's designed for flexible application in different market conditions, offering long, short, or dual-direction trading.
Short Description
The strategy uses the RSI to identify overbought and oversold market conditions:
Buy signal: When RSI drops below the specified "Buy Level."
Sell signal: When RSI rises above the "Sell Level."
Additionally, it manages risk and profit targets with:
Take Profit (TP): Exits trades when the price reaches a percentage gain.
Stop Loss (SL): Exits trades to limit losses if the price falls by a certain percentage.
The strategy is versatile and includes options for visualizing performance, monthly profit/loss data, and detailed trade metrics.
How to Use
Set Parameters:
RSI Period: Default is 14. Adjust based on your analysis.
RSI Buy/Sell Levels:
Buy Level: Default is 40. Consider higher levels for conservative entries.
Sell Level: Default is 60. Lower this for earlier exits.
Take Profit (%): Set your profit target (default: 5%).
Stop Loss (%): Set your risk tolerance (default: 2%).
Trade Direction: Choose "Long Only," "Short Only," or "Both."
Interpret Signals:
Buy signals appear when RSI crosses below the buy threshold.
Sell signals appear when RSI crosses above the sell threshold.
Risk Management:
The strategy dynamically calculates TP and SL levels for each trade.
TP/SL is applied using the percentage input based on the entry price.
Monitor Performance:
Review trade statistics in the "Strategy Tester."
Use the monthly performance table to track P/L across months.
Customize Alerts:
Alerts for buy, sell, TP, and SL events can be used to automate notifications.
Key Features
Configurable RSI Settings: Adaptable to various market conditions.
Risk Management: Built-in TP and SL management.
Customizable Trade Direction: Tailored for long-only, short-only, or both directions.
Monthly P/L Table: Visualizes performance trends over time.
Alerts: Notifies when critical trade events occur.
Please do your own research before ase this to your real trading.
MultiSector Performance Tracker [LuxAlgo]The MultiSector Performance Tracker tool shows the overall performance of different crypto market sectors within a selected time frame, overlaid on a single chart for easy comparison.
Users can customize the time frame to suit their specific needs, whether daily, weekly, monthly, or yearly.
🔶 USAGE
The tool displays the performance of up to 6 crypto sectors within a selected time period, such as each day, week, month or year, or from the beginning of the year for any of the last 4 years.
The sectors and tickers within each sector are as follows:
Layer 1: CRYPTOCAP:ETH CRYPTOCAP:SOL CRYPTOCAP:TON
Layer 2: SEED_DONKEYDAN_MARKET_CAP:MATIC TSX:MNT AMEX:ARB
CEX: CRYPTOCAP:BNB CRYPTOCAP:OKB NYSE:BGB
DEX: CRYPTOCAP:UNI LSE:JUP CRYPTOCAP:RUNE
AI: CRYPTOCAP:NEAR GETTEX:TAO CRYPTOCAP:ICP
Ethereum Memes: CRYPTOCAP:PEPE CRYPTOCAP:SHIB CRYPTOCAP:FLOKI
Traders can compare the relative performance of a custom ticker against the sector of their choice and view the average of all sectors.
The tool is fully customizable, allowing traders to enable or disable any of the features or sectors.
🔹 Dashboard
The tool also displays the data in an ascending or descending sector performance dashboard, allowing traders to see at a glance which sectors are overperforming or underperforming.
Other dashboard features include custom ticker vs. sector comparison and sectors average, and traders can choose the location and size of the dashboard.
🔶 SETTINGS
Period: View all data by time period, daily, weekly, etc. Or view data from last year, last 2 years, etc.
Relative Performance Against: Enable/Disable relative performance comparison against a sector.
Use chart ticker: Enable the use of the chart ticker or a custom ticker for relative performance comparison.
🔹 Dashboard
Show Dashboard: Enable / disable Dashboard display.
Order: Choose between ascending and descending order.
Position: Selection of dashboard location.
Size: Selection of dashboard size.
🔹 Style
Show Sectors Labels: Enable / disable sector labels
Layer 1: Enable / disable Layer 1 sector
Layer 2: Enable / disable Layer 2 sector
CEX: Enable / disable CEX sector
DEX: Enable / disable DEX sector
AI: Enable / disable AI sector
Ethereum Memes: Enable / disable Ethereum Memes sector
Average: Enable / disable sectors average display
Custom Ticker: Enable / disable custom ticker display
SMA Fibonacci Rainbow Waves[FibonacciFlux]SMA Fibonacci Rainbow Waves
Overview
The SMA Fibonacci Rainbow Waves script is designed for traders who seek to blend simplicity with complexity in their trading strategies. By leveraging multiple Simple Moving Averages (SMAs) weighted by Fibonacci numbers, this indicator provides a nuanced view of price action, allowing traders to capture essential market dynamics while filtering out unnecessary noise.
Key Features
1. Multiple Simple Moving Averages (SMA)
- The indicator employs a series of SMAs to represent both short-term and long-term trends, providing a comprehensive view of market sentiment.
- Each SMA helps identify critical price levels that serve as support and resistance, particularly the purple Fibonacci SMA, which can be pivotal for limit entries. Traders positioned at this level can initiate stop-loss hunts at the institutional level, potentially achieving risk-reward ratios exceeding 30.
2. Fibonacci Weighting
- By applying Fibonacci principles to the SMAs, the indicator enhances adaptability to market conditions.
- This unique approach allows traders to pinpoint significant support and resistance levels within Fibonacci layers, enabling them to anticipate market movements effectively.
3. Dynamic Support and Resistance Levels
- The SMA Fibonacci Rainbow Waves indicator identifies key price levels that act as support and resistance based on Fibonacci layers.
- For instance, on the hourly chart, these levels function as reliable zones for traders to watch for potential reversals, while on the 15-minute chart, a consolidation within the rainbow pocket followed by expansion can signal lucrative trading opportunities.
4. Visual Clarity with Color Coding
- Each SMA is assigned a distinct color, making it easy to differentiate between the various levels on the chart.
- Fills between SMAs visually represent zones of confluence, enhancing the analysis of potential trading opportunities.
Signal Generation and Alerts
- The indicator generates buy and sell signals based on the interactions of the SMAs, providing clear entry and exit points.
- Customizable alerts notify traders of significant market changes, allowing for timely reactions to evolving conditions.
Benefits
1. Simplified Trading Approach
- Traders can focus on significant market trends without distraction, enhancing decision-making efficiency and reducing emotional trading.
2. Flexibility Across Timeframes
- The indicator operates effectively across multiple timeframes, allowing traders to apply its principles in various scenarios, from scalping to longer-term strategies.
3. Enhanced Market Insights
- The combination of multiple SMAs and Fibonacci weighting offers a comprehensive view of market trends, helping traders identify lucrative opportunities that may be overlooked.
4. Bridging Simplicity and Complexity
- This indicator elegantly addresses the contradictions in trading psychology, allowing traders to maintain clarity while navigating complex market dynamics.
Conclusion
The SMA Fibonacci Rainbow Waves script is an essential tool for traders seeking to streamline their analysis while effectively capturing market movements. By integrating Fibonacci principles with multiple SMAs, this indicator empowers traders to follow trends confidently. Its design makes it invaluable for both novice and experienced traders, revealing entry points often missed by traditional indicators.
Open Source Collaboration
This script is available as an open-source project on TradingView, inviting contributions from the global trading community to enhance its functionality. Collaboration ensures it remains a valuable resource for market participants.
Important Note
As with any trading tool, thorough analysis and risk management are crucial when using this indicator. Past performance does not guarantee future results, and traders should always prepare for potential market fluctuations.
The Adaptive Pairwise Momentum System [QuantraSystems]The Adaptive Pairwise Momentum System
QuantraSystems guarantees that the information created and published within this document and on the Tradingview platform is fully compliant with applicable regulations, does not constitute investment advice, and is not exclusively intended for qualified investors.
Important Note!
The system equity curve presented here has been generated as part of the process of testing and verifying the methodology behind this script.
Crucially, it was developed after the system was conceptualized, designed, and created, which helps to mitigate the risk of overfitting to historical data. In other words, the system was built for robustness, not for simply optimizing past performance.
This ensures that the system is less likely to degrade in performance over time, compared to hyper-optimized systems that are tailored to past data. No tweaks or optimizations were made to this system post-backtest.
Even More Important Note!!
The nature of markets is that they change quickly and unpredictably. Past performance does not guarantee future results - this is a fundamental rule in trading and investing.
While this system is designed with broad, flexible conditions to adapt quickly to a range of market environments, it is essential to understand that no assumptions should be made about future returns based on historical data. Markets are inherently uncertain, and this system - like all trading systems - cannot predict future outcomes.
Introduction
The Adaptive Pairwise Momentum System is not just an indicator but a comprehensive asset rotation and trend-following system. In short, it aims to find the highest performing asset from the provided range.
The system dynamically optimizes capital allocation across up to four high-performing assets, ensuring that the portfolio adapts swiftly to changing market conditions. The system logic consists of sophisticated quantitative methods, rapid momentum analysis, and robust trend filtering. The overarching goal is to ensure that the portfolio is always invested in the highest-performing asset based on dynamic market conditions, while at the same time managing risk through broader market filters and internal mechanisms like volatility and beta analysis.
Legend
System Equity Curve:
The equity curve displayed in the chart is dynamically colored based on the asset allocation at any given time. This color-coded approach allows traders to immediately identify transitions between assets and the corresponding impact on portfolio performance.
Highlighting of Current Highest Performer:
The current bar in the chart is highlighted based on the confirmed highest performing asset. This is designed to give traders advanced notice of potential shifts in allocation even before a formal position change occurs. The highlighting enables traders to prepare in real time, making it easier to manage positions without lag, particularly in fast-moving markets.
Highlighted Symbols in the Asset Table:
In the table displayed on the right hand side of the screen, the current top-performing symbol is highlighted. This clear signal at a glance provides immediate insight into which asset is currently being favored by the system. This feature enhances clarity and helps traders make informed decisions quickly, without needing to analyze the underlying data manually.
Performance Overview in Tables:
The left table provides insight into both daily and overall system performance from inception, offering traders a detailed view of short-term fluctuations and long-term growth. The right-hand table breaks down essential metrics such as Sharpe ratio, Sortino ratio, Omega ratio, and maximum drawdown for each asset, as well as for the overall system and HODL strategy.
Asset-Specific Signals:
The signals column in the table indicates whether an asset is currently held or being considered for holding based on the system's dynamic rankings. This is a critical visual aid for asset reallocation decisions, signaling when it may be appropriate to either maintain or change the asset of the portfolio.
Core Features and Methodologies
Flexibility in Asset Selection
One of the major advantages of this system is its flexibility. Users can easily modify the number and type of assets included for comparison. You can quickly input different assets and backtest their performance, allowing you to verify how well this system might fit different tokens or market conditions. This flexibility empowers users to adapt the system to a wide range of market environments and tailor it to their unique preferences.
Whole System Risk Mitigation - Macro Trend Filter
One of the features of this script is its integration of a Macro-level Trend Filter for the entire portfolio. The purpose of this filter is to ensure no capital is allocated to any token in the rotation system unless Bitcoin itself is in a positive trend. The logic here is that Bitcoin, as the cryptocurrency market leader, often sets the tone for the entire cryptocurrency market. By using Bitcoins trend direction as a barometer for overall market conditions, we create a system where capital is not allocated during unfavorable or bearish market conditions - significantly reducing exposure to downside risk.
Users have the ability to toggle this filter on and off in the input menu, with five customizable options for the trend filter, including the option to use no filter. These options are:
Nova QSM - a trend aggregate combining the Rolling VWAP, Wave Pendulum Trend, KRO Overlay, and the Pulse Profiler provides the market trend signal confirmation.
Kilonova QSM - a versatile aggregate combining the Rolling VWAP, KRO Overlay, the KRO Base, RSI Volatility Bands, NNTRSI, Regression Smoothed RSI and the RoC Suite.
Quasar QSM - an enhanced version of the original RSI Pulsar. The Quasar QSM refines the trend following approach by utilizing an aggregated methodology.
Pairwise Momentum and Strength Ranking
The backbone of this system is its ability to identify the strongest-performing asset in the selected pool, ensuring that the portfolio is always exposed to the asset showing the highest relative momentum. The system continually ranks these assets against each other and determines the highest performer by measure of past and coincident outperformance. This process occurs rapidly, allowing for swift responses to shifts in market momentum, which ensures capital is always working in the most efficient manner. The speed and precision of this reallocation strategy make the script particularly well-suited for active, momentum-driven portfolios.
Beta-Adjusted Asset Selection as a Tiebreaker
In the circumstance where two (or more) assets exhibit the same relative momentum score, the system introduces another layer of analysis. In the event of a strength ‘tie’ the system will preference maintaining the current position - that is, if the previously strongest asset is now tied, the system will still allocate to the same asset. If this is not the case, the asset with the higher beta is selected. Beta is a measure of an asset’s volatility relative to Bitcoin (BTC).
This ensures that in bullish conditions, the system favors assets with a higher potential for outsized gains due to their inherent volatility. Beta is calculated based on the Average Daily Return of each asset compared to BTC. By doing this, the system ensures that it is dynamically adjusting to risk and reward, allocating to assets with higher risk in favorable conditions and lower risk in less favorable conditions.
Dynamic Asset Reallocation - Opposed to Multi-Asset Fixed Intervals
One of the standout features of this system is its ability to dynamically reallocate capital. Unlike traditional portfolio allocation strategies that may rebalance between a basket of assets monthly or quarterly, this system recalculates and reallocates capital on the next bar close (if required). As soon as a new asset exhibits superior performance relative to others, the system immediately adjusts, closing the previous position and reallocating funds to the top-ranked asset.
This approach is particularly powerful in volatile markets like cryptocurrencies, where trends can shift quickly. By reallocating swiftly, the system maximizes exposure to high-performing assets while minimizing time spent in underperforming ones. Moreover, this process is entirely automated, freeing the trader from manually tracking and measuring individual token strength.
Our research has demonstrated that, from a risk-adjusted return perspective, concentration into the top-performing asset consistently outperforms broad diversification across longer time horizons. By focusing capital on the highest-performing asset, the system captures outsized returns that are not achievable through traditional diversification. However, a more risk-averse investor, or one seeking to reduce drawdowns, may prefer to move the portfolio further left along the theoretical Capital Allocation Line by incorporating a blend of cash, treasury bonds, or other yield-generating assets or even include market neutral strategies alongside the rotation system. This hybrid approach would effectively lower the overall volatility of the portfolio while still maintaining exposure to the system’s outsized returns. In theory, such an investor can reduce risk without sacrificing too much potential upside, creating a more balanced risk-return profile.
Position Changes and Fees/Slippage
Another critical and often overlooked element of this system is its ability to account for fees and slippage. Given the increased speed and frequency of allocation logic compared to the buy-and-hold strategy, it is of vital importance that the system recognises that switching between assets may incur slippage, especially in highly volatile markets. To account for this, the system integrates realistic slippage and fee estimates directly into the equity curve, simulating expected execution costs under typical market conditions and gives users a more realistic view of expected performance.
Number of Position Changes
Understanding the number of position changes in a strategy is critical to assessing its feasibility in real world trading. Frequent position changes can lead to increased costs due to slippage and fees. Monitoring the number of position changes provides insight into the system’s behavior - helping to evaluate how active the strategy is and whether it aligns with the trader's desired time input for position management.
Equity Curve and Performance Calculations
To provide a benchmark, the script also generates a Buy-and-Hold (or "HODL") equity curve that represents an equal split across the four selected assets. This allows users to easily compare the performance of the dynamic rotation system with that of a more traditional investment strategy.
The script tracks key performance metrics for both the dynamic portfolio and the HODL strategy, including:
Sharpe Ratio
The Sharpe Ratio is a key metric that evaluates a portfolio’s risk-adjusted return by comparing its ‘excess’ return to its volatility. Traditionally, the Sharpe Ratio measures returns relative to a risk-free rate. However, in our system’s calculation, we omit the risk-free rate and instead measure returns above a benchmark of 0%. This adjustment provides a more universal comparison, especially in the context of highly volatile assets like cryptocurrencies, where a traditional risk-free benchmark, such as the usual 3-month T-bills, is often irrelevant or too distant from the realities of the crypto market.
By using 0% as the baseline, we focus purely on the strategy's ability to generate raw returns in the face of market risk, which makes it easier to compare performance across different strategies or asset classes. In an environment like cryptocurrency, where volatility can be extreme, the importance of relative return against a highly volatile backdrop outweighs comparisons to a risk-free rate that bears little resemblance to the risk profile of digital assets.
Sortino Ratio
The Sortino Ratio improves upon the Sharpe Ratio by specifically targeting downside risk and leaves the upside potential untouched. In contrast to the Sharpe Ratio (which penalizes both upside and downside volatility), the Sortino Ratio focuses only on negative return deviations. This makes it a more suitable metric for evaluating strategies like the Adaptive Pairwise Momentum Strategy - that aim to minimize drawdowns without restricting upside capture. By measuring returns relative to a 0% baseline, the Sortino ratio provides a clearer assessment of how well the system generates gains while avoiding substantial losses in highly volatile markets like crypto.
Omega Ratio
The Omega Ratio is calculated as the ratio of gains to losses across all return thresholds, providing a more complete view of how the system balances upside and downside risk even compared to the Sortino Ratio. While it achieves a similar outcome to the Sortino Ratio by emphasizing the system's ability to capture gains while limiting losses, it is technically a mathematically superior method. However, we include both the Omega and Sortino ratios in our metric table, as the Sortino Ratio remains more widely recognized and commonly understood by traders and investors of all levels.
Case Study
Notes
For the sake of brevity, the Important Notes section found in the header of this text will not be rewritten. Instead, it will be highlighted that now is the perfect time to reread these notes. Reading this case study in the context of what has been mentioned above is of key importance.
As a second note, it is worth mentioning that certain market periods are referred to as either “Bull” or “Bear” markets - terms I personally find to be vague and undefinable - and therefore unfavorable. They will be used nevertheless, due to their familiarity and ease of understanding in this context. Substitute phrases could be “Macro Uptrend” or “Macro Downtrend.”
Overview
This case study provides an in-depth performance analysis of the Adaptive Pairwise Momentum System , a long-only system that dynamically allocates to outperforming assets and moves into cash during unfavorable conditions.
This backtest includes realistic assumptions for slippage and fees, applying a 0.5% cost for every position change, which includes both asset reallocation and moving to a cash position. Additionally, the system was tested using the top four cryptocurrencies by market capitalization as of the test start date of 01/01/2022 in order to minimize selection bias.
The top tokens on this date (excluding Stablecoins) were:
Bitcoin
Ethereum
Solana
BNB
This decision was made in order to avoid cherry picking assets that might have exhibited exceptional historical performance - minimizing skew in the back test. Furthermore, although this backtest focuses on these specific assets, the system is built to be flexible and adaptable, capable of being applied to a wide range of assets beyond those initially tested.
Any potential lookahead bias or repainting in the calculations has been addressed by implementing the lookback modifier for all repainting sensitive data, including asset ratios, asset scoring, and beta values. This ensures that no future information is inadvertently used in the asset allocation process.
Additionally, a fixed lookback period of one bar is used for the trend filter during allocations - meaning that the trend filter from the prior bar must be positive for an allocation to occur on the current bar. It is also important to note that all the data displayed by the indicator is based on the last confirmed (closed) bar, ensuring that the entire system is repaint-proof.
The study spans the 2022 cryptocurrency bear market through the subsequent bull market of 2023 and 2024. The stress test highlights how the system reacted to one of the most challenging market downturns in crypto history - which includes events such as:
Luna and TerraUSD crash
Three Arrows Capital liquidation
Celsius bankruptcy
Voyager Digital bankruptcy
FTX collapse
Silicon Valley + Signature + Silvergate banking collapses
Subsequent USDC deppegging
And arguably more important, 2022 was characterized by a tightening of monetary policy after the unprecedented monetary easing in response to the Covid pandemic of 2020/2021. This shift undeniably puts downward pressure on asset prices, most probably to the extent that this had a causal role to many of the above events.
By incorporating these real-world challenges, the backtest provides a more accurate and robust performance evaluation that avoids overfitting or excessive optimization for one specific market condition.
The Bear Market of 2022: Stress Test and System Resilience
During the 2022 bear market, where the overall crypto market experienced deep and consistent corrections, the Adaptive Pairwise Momentum System demonstrated its ability to mitigate downside risk effectively.
Dynamic Allocation and Cash Exposure:
The system rotated in and out of cash, as indicated by the gray period on the system equity curve. This allocation to cash during downtrending periods, specifically in late 2022, acted as the systems ‘risk-off’ exposure - the purest form of such an exposure. This prevented the system from experiencing the magnitude of drawdown suffered by the ‘Buy-and-Hold (HODL) investors.
In contrast, a passive HODL strategy would have suffered a staggering 75.32% drawdown, as it remained fully allocated to chosen assets during the market's decline. The active Pairwise Momentum system’s smaller drawdown of 54.35% demonstrates its more effective capital preservation mechanisms.
The Bull Market of 2023 and 2024: Capturing Market Upside
Following the crypto bear market, the system effectively capitalized on the recovery and subsequent bull market of 2023 and 2024.
Maximizing Market Gains:
As trends began turning bullish in early 2023, the system caught the momentum and promptly allocated capital to only the quantified highest performing asset of the time - resulting in a parabolic rise in the system's equity curve. Notably, the curve transitions from gray to purple during this period, indicating that Solana (SOL) was the top-performing asset selected by the system.
This allocation to Solana is particularly striking because, at the time, it was an asset many in the market shunned due to its association with the FTX collapse just months prior. However, this highlights a key advantage of quantitative systems like the one presented here: decisions are driven purely from objective data - free from emotional or subjective biases. Unlike human traders, who are inclined (whether consciously or subconsciously) to avoid assets that are ‘out of favor,’ this system focuses purely on price performance, often uncovering opportunities that are overlooked by discretionary based investors. This ability to make data-driven decisions ensures that the strategy is always positioned to capture the best risk-adjusted returns, even in scenarios where judgment might fail.
Minimizing Volatility and Drawdown in Uptrends
While the system captured substantial returns during the bull market it also did so with lower volatility compared to HODL. The sharpe ratio of 4.05 (versus HODL’s 3.31) reflects the system's superior risk-adjusted performance. The allocation shifts, combined with tactical periods of cash holding during minor corrections, ensured a smoother equity curve growth compared to the buy-and-hold approach.
Final Summary
The percentage returns are mentioned last for a reason - it is important to emphasize that risk-adjusted performance is paramount. In this backtest, the Pairwise Momentum system consistently outperforms due to its ability to dynamically manage risk (as seen in the superior Sharpe, Sortino and Omega ratios). With a smaller drawdown of 54.35% compared to HODL’s 75.32%, the system demonstrates its resilience during market downturns, while also capturing the highest beta on the upside during bullish phases.
The system delivered 266.26% return since the backtest start date of January 1st 2022, compared to HODL’s 10.24%, resulting in a performance delta of 256.02%
While this backtest goes some of the way to verifying the system’s feasibility, it’s important to note that past performance is not indicative of future results - especially in volatile and evolving markets like cryptocurrencies. Market behavior can shift, and in particular, if the market experiences prolonged sideways action, trend following systems such as the Adaptive Pairwise Momentum Strategy WILL face significant challenges.
RSI Pulsar [QuantraSystems]RSI Pulsar
Introduction
The RSI Pulsar is an advanced and multifaceted tool designed to cater to the varying needs of traders, from long-term swing traders to higher-frequency day traders. This indicator takes the Relative Strength Index (RSI) to new heights by combining several unique methodologies to provide clear, actionable signals across different market conditions. With its ability to analyze impulsive trend strength, volatility, and binary market direction, the RSI Pulsar offers a holistic view of the market that assists traders in identifying robust signals and rotational opportunities within a volatile market.
The integration of dynamic color coding further aids in quick visual assessments, allowing traders to adapt swiftly to changing market conditions, making the RSI Pulsar an essential component in the arsenal of modern traders aiming for precision and adaptability in their trading endeavors.
Legend
The RSI Pulsar encapsulates various modes tailored to diverse trading strategies. The different modes are the:
Impulse Mode:
Focuses on strong outperformance, ideal for capturing movements in highly dynamic tokens.
Trend Following Mode:
A classical perpetual trend-following approach and provides binary long and short signal classifications ideal for medium term swing trading.
Ribbon Mode:
Offers quicker signals that are also binary in nature. Perfect for a confirmation signal when building higher frequency day trading systems.
Volatility Spectrum:
This feature projects a visual 'cloud' representing volatility, which helps traders spot emerging trends and potential breakouts or reversals.
Compressed Mode:
A condensed view that displays all signals in a clean and space-efficient manner. It provides a clear summary of market conditions, ideal for traders who prefer a simplified overview.
Methodology
The RSI Pulsar is built on a foundation of dynamic RSI analysis, where the traditional RSI is enhanced with advanced moving averages and standard deviation calculations. Each mode within the RSI Pulsar is designed to cater to specific aspects of the market's behavior, making it a versatile tool allowing traders to select different modes based on their trading style and market conditions.
Impulse Mode:
This mode identifies strong outperformance in assets, making it ideal for asset rotation systems. It uses a combination of RSI thresholds and dynamic moving averages to pinpoint when an asset is not just trending positively, but doing so with significant strength.
This is in contrast to typical usage of a base RSI, where elevated levels usually signal overbought and oversold periods. The RSI Pulsar flips this logic, where more extreme values are actually interpreted as a strong trend.
Trend Following Mode:
Here, the RSI is compared to the midline (the default is level 50, but a dynamic midline can also be set), to determine the prevailing trend. This mode simplifies the trend-following process, providing clear bullish or bearish signals based on whether the RSI is above or below the midline - whether a fixed or dynamic level.
Ribbon Mode:
This mode employs a series of calculated values derived from modified Heikin-Ashi smoothing to create a "ribbon" that smooths out price action and highlights underlying trends. The Ribbon Mode is particularly useful for traders who need quick confirmations of trend reversals or continuations.
Volatility Spectrum:
The Volatility Spectrum takes a unique approach to measuring market volatility by analyzing the size and direction of Heikin-Ashi candles. This data is used to create a volatility cloud that helps traders identify when volatility is rising, falling, or neutral - allowing them to adjust their strategies accordingly.
When the signal line breaks above the cloud, it signals increasing upwards volatility. When it breaks below it signifies increasing downwards volatility.
This can be used to help identify strengthening and weakening trends, as well as imminent volatile periods, allowing traders to position themselves and adapt their strategies accordingly. This mode also works as a great volatility filter for shorter term day trading strategies. It is incredibly sensitive to volatility divergences, and can give additional insights to larger market turning points.
Compressed Mode:
In Compressed Mode, all the signals from the various modes are displayed in a simplified format, making it easy for traders to quickly assess the market's overall condition without needing to delve into the details of each mode individually. Perfect for only viewing the exact data you need when live trading, or back testing.
Case Study I:
Utilizing ALMA Impulse Mode in High-Volatility Environments
Here, the RSI Pulsar is configured with an RSI length of 9 and an ALMA length of 2 in Impulse Mode. The chart example shows how this setup can identify significant price movements, allowing traders to enter positions early and capture substantial price moves. Despite the fast settings resulting in occasional false signals, the indicator's ability to catch and ride out major trends more than compensates, making it highly effective in volatile environments.
This configuration is suitable for traders seeking to trade quick, aggressive movements without enduring prolonged drawdowns. In Impulse Mode, the RSI Pulsar seeks strong trending zones, providing actionable signals that allow for timely entries and exits.
Case Study II:
SMMA Trend Following Mode for Ratio Analysis
The RSI Pulsar in Trend Following mode, configured with the SMMA with default length settings. This setup is ideal for analyzing longer-term trends, particularly useful in cryptocurrency pairs or ratio charts, where it’s crucial to identify robust directional moves. The chart showcases strong trends in the Solana/Ethereum pair. The RSI Pulsar’s ability to smooth out price action while remaining responsive to trend changes makes it an excellent tool for capturing extended price moves.
The image highlights how the RSI Pulsar efficiently tracks the strength of two tokens against each other, providing clear signals when one asset begins to outperform the other. Even in volatile markets, the SMMA ensures that the signals are reliable, filtering out noise and allowing traders to stay in the trend longer without being shaken out by minor corrections. This approach is particularly effective in ratio trading in order to inform a longer term swing trader of the strongest asset out of a customized pair.
Case Study III:
Monthly Analysis with RSI Pulsar in Ribbon Mode
This case study demonstrates the versatility and reliability of the RSI Pulsar in Ribbon mode, applied to a monthly chart of Bitcoin with an RSI length of 8 and a TEMA length of 14. This setup highlights the indicator’s robustness across multiple timeframes, extending even to long-term analysis. The RSI Pulsar effectively smooths out noise while capturing significant trends, as seen during Bitcoin bull markets. The Ribbon mode provides a clear visual representation of momentum shifts, making it easier for traders to identify trend continuations and reversals with confidence.
Case Study IV:
Divergences and Continuations with the Volatility Spectrum
Identifying harmony/divergences can be hit-or-miss at times, but this unique analysis method definitely has its merits at times. The RSI Pulsar, with its Volatility Spectrum feature, is used here to identify critical moments where price action either aligns with or diverges from the underlying volatility. As seen in the Bitcoin chart (using default settings), the indicator highlights areas where price trends either continue in harmony with volatility or diverge, signaling potential reversals. This method, while not always perfect, provides significant insight during key turning points in the market.
The Volatility Spectrum's visual representation of rising and falling volatility, combined with divergence and harmony analysis, enables traders to anticipate significant shifts in market dynamics. In this case, multiple divergences correctly identified early trend reversals, while periods of harmony indicated strong trend continuations. While this method requires careful interpretation, especially during complex market conditions, it offers valuable signals that can be pivotal in making informed trading decisions, especially if combined with other forms of analysis it can form a critical component of an investing system.
Trend Filtered Signals with Confidence LevelThe Trend Filtered Signals with Confidence Level is a powerful technical analysis tool designed for trend-following traders. It provides clear buy and sell signals, enhanced by a unique confidence level indicator, helping traders filter out market noise and focus on higher-probability trades. This indicator is built with advanced trend detection, volatility filtering, and volume confirmation, making it suitable for various markets such as stocks, forex, and cryptocurrencies.
Key Features:
Precise Trend Detection:
The indicator uses the Average Directional Index (ADX) to measure the strength of the trend, only generating signals when the trend is strong enough (above a user-defined threshold). This prevents false signals during sideways markets and ensures the system follows meaningful trends.
Buy and Sell Signals:
Buy signals are generated when the price crosses above the fast moving average, and the market is in a strong uptrend based on ADX and other filters. Conversely, sell signals are created when the price crosses below the fast moving average in a strong downtrend. These signals appear directly on the chart with visual markers, making them easy to spot in real-time trading.
Confidence Level for Signals:
Each buy and sell signal is given a confidence percentage, calculated from multiple factors:
The strength of the trend (ADX).
The price’s relationship to moving averages (fast MA and slow MA).
The current trading volume compared to its moving average.
The distance between the price and the moving averages, which is checked against the ATR (Average True Range).
A higher confidence percentage indicates a stronger, more reliable signal. Traders can choose to act only on signals that meet or exceed their preferred confidence level.
ATR-Based Volatility Filtering:
To avoid over-trading or receiving signals that are too close together, the ATR (Average True Range) is used as a volatility filter. This ensures that the signals are spaced out, and traders only receive alerts when the price has moved a meaningful distance, considering market volatility.
Volume Confirmation:
Volume plays a crucial role in signal accuracy. The indicator compares the current volume to its moving average, ensuring that signals are generated only when there is sufficient market participation. This feature helps traders avoid signals during low-volume or illiquid market conditions.
Exit Alerts for Trend Reversals:
The indicator doesn’t just help you enter trades; it also assists with exits. When the trend shows signs of weakening or reversing (such as price crossing back over the moving average or losing ADX strength), the indicator will issue an exit alert, helping traders lock in profits or minimize losses.
How to Use the Indicator:
Choosing Timeframes:
The Trend Filtered Signals with Confidence Level works on multiple timeframes. For intraday traders, it can be applied on 5-minute or 15-minute charts. Swing traders might prefer the 1-hour or daily timeframe to capture longer-term trends. Adjust the inputs based on the volatility of the asset you're trading and the timeframe.
Customizing Inputs:
ADX Length: Defines the length for calculating ADX. A typical setting is 14, but this can be adjusted based on how quickly or slowly you want the indicator to react to changes in trend strength.
ADX Threshold: Set this value to filter out weak trends. The default is 20, but for stronger trend signals, a threshold of 25 or 30 may be more suitable.
ATR Length & Multiplier: Used to calculate the average true range, helping to filter out signals that are too close to each other. The ATR multiplier increases the signal’s precision in volatile markets.
Fast and Slow Moving Averages: These moving averages help define the short- and long-term trend. The default fast MA is 9, and the slow MA is 21, but traders can adjust these based on their strategy.
Volume MA: Defines the length of the moving average applied to volume. A longer setting may be more appropriate for swing trading, while a shorter setting can work better for day trading.
Interpreting the Confidence Percentage:
Signals with a confidence level above 50% are generally considered reliable. However, traders can choose to filter trades based on their risk tolerance by only acting on signals above a certain confidence level (e.g., 70% or higher for conservative traders).
Use the confidence percentage as a guide to increase the likelihood of entering higher-probability trades.
Signal Alerts:
The indicator provides customizable alerts for both buy and sell signals. It also generates alerts when it's time to exit a position due to weakening trend conditions.
Alerts can be set up through TradingView’s alert system to notify you via mobile, email, or browser pop-up, so you never miss an opportunity.
Managing Entries and Exits:
Combine the buy and sell signals with the confidence level to time entries more effectively. After entering a position, keep an eye on the exit signals generated by the indicator to manage your trades.
For trend-following strategies, stay in the trade as long as the indicator shows a strong trend. When the confidence level drops significantly, or the exit alert triggers, it may be time to close the trade.
Inputs Overview:
ADX Length: Default 14, for trend strength.
ADX Threshold: Default 20, minimum trend strength for signal generation.
ATR Length & Multiplier: Adjust for volatility filtering.
Fast MA & Slow MA Lengths: Define the short-term and long-term trend.
Volume MA Length: Confirm signals with volume strength.
Minimum Signal Distance: Prevents excessive signal clustering.
Conclusion:
The Trend Filtered Signals with Confidence Level indicator by Danytradehit is a comprehensive tool that not only identifies trends and trend reversals but also helps you gauge the reliability of each signal through a confidence percentage. It simplifies decision-making for traders by filtering out weak or low-probability trades, ensuring you only act on the most promising market opportunities. This indicator is highly customizable and works across various timeframes and asset classes.
Bitcoin CME-Spot Z-Spread - Strategy [presentTrading]This time is a swing trading strategy! It measures the sentiment of the Bitcoin market through the spread of CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. By applying Bollinger Bands to the spread, the strategy seeks to capture mean-reversion opportunities when prices deviate significantly from their historical norms
█ Introduction and How it is Different
The Bitcoin CME-Spot Bollinger Bands Strategy is designed to capture mean-reversion opportunities by exploiting the spread between CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. The strategy uses Bollinger Bands to detect when the spread between these two correlated assets has deviated significantly from its historical norm, signaling potential overbought or oversold conditions.
What sets this strategy apart is its focus on spread trading between futures and spot markets rather than price-based indicators. By applying Bollinger Bands to the spread rather than individual prices, the strategy identifies price inefficiencies across markets, allowing traders to take advantage of the natural reversion to the mean that often occurs in these correlated assets.
BTCUSD 8hr Performance
█ Strategy, How It Works: Detailed Explanation
The strategy relies on Bollinger Bands to assess the volatility and relative deviation of the spread between CME Bitcoin Futures and Bitfinex BTCUSD Spot prices. Bollinger Bands consist of a moving average and two standard deviation bands, which help measure how much the spread deviates from its historical mean.
🔶 Spread Calculation:
The spread is calculated by subtracting the Bitfinex spot price from the CME Bitcoin futures price:
Spread = CME Price - Bitfinex Price
This spread represents the difference between the futures and spot markets, which may widen or narrow based on supply and demand dynamics in each market. By analyzing the spread, the strategy can detect when prices are too far apart (potentially overbought or oversold), indicating a trading opportunity.
🔶 Bollinger Bands Calculation:
The Bollinger Bands for the spread are calculated using a simple moving average (SMA) and the standard deviation of the spread over a defined period.
1. Moving Average (SMA):
The simple moving average of the spread (mu_S) over a specified period P is calculated as:
mu_S = (1/P) * sum(S_i from i=1 to P)
Where S_i represents the spread at time i, and P is the lookback period (default is 200 bars). The moving average provides a baseline for the normal spread behavior.
2. Standard Deviation:
The standard deviation (sigma_S) of the spread is calculated to measure the volatility of the spread:
sigma_S = sqrt((1/P) * sum((S_i - mu_S)^2 from i=1 to P))
3. Upper and Lower Bollinger Bands:
The upper and lower Bollinger Bands are derived by adding and subtracting a multiple of the standard deviation from the moving average. The number of standard deviations is determined by a user-defined parameter k (default is 2.618).
- Upper Band:
Upper Band = mu_S + (k * sigma_S)
- Lower Band:
Lower Band = mu_S - (k * sigma_S)
These bands provide a dynamic range within which the spread typically fluctuates. When the spread moves outside of these bands, it is considered overbought or oversold, potentially offering trading opportunities.
Local view
🔶 Entry Conditions:
- Long Entry: A long position is triggered when the spread crosses below the lower Bollinger Band, indicating that the spread has become oversold and is likely to revert upward.
Spread < Lower Band
- Short Entry: A short position is triggered when the spread crosses above the upper Bollinger Band, indicating that the spread has become overbought and is likely to revert downward.
Spread > Upper Band
🔶 Risk Management and Profit-Taking:
The strategy incorporates multi-step take profits to lock in gains as the trade moves in favor. The position is gradually reduced at predefined profit levels, reducing risk while allowing part of the trade to continue running if the price keeps moving favorably.
Additionally, the strategy uses a hold period exit mechanism. If the trade does not hit any of the take-profit levels within a certain number of bars, the position is closed automatically to avoid excessive exposure to market risks.
█ Trade Direction
The trade direction is based on deviations of the spread from its historical norm:
- Long Trade: The strategy enters a long position when the spread crosses below the lower Bollinger Band, signaling an oversold condition where the spread is expected to narrow.
- Short Trade: The strategy enters a short position when the spread crosses above the upper Bollinger Band, signaling an overbought condition where the spread is expected to widen.
These entries rely on the assumption of mean reversion, where extreme deviations from the average spread are likely to revert over time.
█ Usage
The Bitcoin CME-Spot Bollinger Bands Strategy is ideal for traders looking to capitalize on price inefficiencies between Bitcoin futures and spot markets. It’s especially useful in volatile markets where large deviations between futures and spot prices occur.
- Market Conditions: This strategy is most effective in correlated markets, like CME futures and spot Bitcoin. Traders can adjust the Bollinger Bands period and standard deviation multiplier to suit different volatility regimes.
- Backtesting: Before deployment, backtesting the strategy across different market conditions and timeframes is recommended to ensure robustness. Adjust the take-profit steps and hold periods to reflect the trader’s risk tolerance and market behavior.
█ Default Settings
The default settings provide a balanced approach to spread trading using Bollinger Bands but can be adjusted depending on market conditions or personal trading preferences.
🔶 Bollinger Bands Period (200 bars):
This defines the number of bars used to calculate the moving average and standard deviation for the Bollinger Bands. A longer period smooths out short-term fluctuations and focuses on larger, more significant trends. Adjusting the period affects the responsiveness of the strategy:
- Shorter periods (e.g., 100 bars): Makes the strategy more reactive to short-term market fluctuations, potentially generating more signals but increasing the risk of false positives.
- Longer periods (e.g., 300 bars): Focuses on longer-term trends, reducing the frequency of trades and focusing only on significant deviations.
🔶 Standard Deviation Multiplier (2.618):
The multiplier controls how wide the Bollinger Bands are around the moving average. By default, the bands are set at 2.618 standard deviations away from the average, ensuring that only significant deviations trigger trades.
- Higher multipliers (e.g., 3.0): Require a more extreme deviation to trigger trades, reducing trade frequency but potentially increasing the accuracy of signals.
- Lower multipliers (e.g., 2.0): Make the bands narrower, increasing the number of trade signals but potentially decreasing their reliability.
🔶 Take-Profit Levels:
The strategy has four take-profit levels to gradually lock in profits:
- Level 1 (3%): 25% of the position is closed at a 3% profit.
- Level 2 (8%): 20% of the position is closed at an 8% profit.
- Level 3 (14%): 15% of the position is closed at a 14% profit.
- Level 4 (21%): 10% of the position is closed at a 21% profit.
Adjusting these take-profit levels affects how quickly profits are realized:
- Lower take-profit levels: Capture gains more quickly, reducing risk but potentially cutting off larger profits.
- Higher take-profit levels: Let trades run longer, aiming for bigger gains but increasing the risk of price reversals before profits are locked in.
🔶 Hold Days (20 bars):
The strategy automatically closes the position after 20 bars if none of the take-profit levels are hit. This feature prevents trades from being held indefinitely, especially if market conditions are stagnant. Adjusting this:
- Shorter hold periods: Reduce the duration of exposure, minimizing risks from market changes but potentially closing trades too early.
- Longer hold periods: Allow trades to stay open longer, increasing the chance for mean reversion but also increasing exposure to unfavorable market conditions.
By understanding how these default settings affect the strategy’s performance, traders can optimize the Bitcoin CME-Spot Bollinger Bands Strategy to their preferences, adapting it to different market environments and risk tolerances.
Multi-Step FlexiSuperTrend - Indicator [presentTrading]This version of the indicator is built upon the foundation of a strategy version published earlier. However, this indicator version focuses on providing visual insights and alerts for traders, rather than executing trades. This one is mostly for @thorcmt.
█ Introduction and How it is Different
The **Multi-Step FlexiSuperTrend Indicator** is a versatile tool designed to provide traders with a highly customizable and flexible approach to trend analysis. Unlike traditional supertrend indicators, which focus on a single factor or threshold, the **FlexiSuperTrend** allows users to define multiple levels of take-profit targets and incorporate different trend normalization methods.
It comes with several advanced customization features, including multi-step take profits, deviation plotting, and trend normalization, making it suitable for both novice and expert traders.
BTCUSD 6hr Performance
█ Strategy, How It Works: Detailed Explanation
The **Multi-Step FlexiSuperTrend** works by calculating a supertrend based on multiple factors and incorporating oscillations from trend deviations. Here’s a breakdown of how it functions:
🔶 SuperTrend Calculation
At the heart of the indicator is the SuperTrend formula, which dynamically adjusts based on price movements.
🔶 Normalization of Deviations
To enhance accuracy, the **FlexiSuperTrend** calculates multiple deviations from the trend and normalizes them.
🔶 Multi-Step Take Profit Levels
The indicator allows setting up to three take profit levels, which are displayed via price level alerts. lows traders to exit part of their position at various profit intervals.
For more detail, please check the strategy version - Multi-Step-FlexiSuperTrend-Strategy:
and 'FlexiSuperTrend-Strategy'
█ Trade Direction
The **Multi-Step FlexiSuperTrend Indicator** supports both long and short trade directions.
This flexibility allows traders to adapt to trending, volatile, or sideways markets.
█ Usage
To use the **FlexiSuperTrend Indicator**, traders can set up their preferences for the following key features:
- **Trading Direction**: Choose whether to focus on long, short, or both signals.
- **Indicator Source**: The price source to calculate the trend (e.g., close, hl2).
- **Indicator Length**: The number of periods to calculate the ATR and trend (the larger the value, the smoother the trend).
- **Starting and Increment Factor**: These adjust how reactive the trend is to price movements. The starting factor dictates how far the initial trend band is from the price, and the increment factor adjusts subsequent trend deviations.
The indicator then displays buy and sell signals on the chart, along with alerts for each take-profit level.
Local picture
█ Default Settings
The default settings of the **Multi-Step FlexiSuperTrend** are carefully designed to provide an optimal balance between sensitivity and accuracy. Let’s examine these default parameters and their effect on performance:
🔶 Indicator Length (Default: 10)
The **Indicator Length** determines the lookback period for the ATR calculation. A smaller value makes the indicator more reactive to price changes, but may generate more false signals. A longer length smooths the trend and reduces noise but may delay signals.
Effect on performance: Shorter lengths perform better in volatile markets, while longer lengths excel in trending markets.
🔶 Starting Factor (Default: 0.618)
This factor adjusts the starting distance of the SuperTrend from the current price. The smaller the starting factor, the closer the trend is to the price, making it more sensitive. Conversely, a larger factor allows more distance, reducing sensitivity but filtering out false signals.
Effect on performance: A smaller factor provides quicker signals but can lead to frequent false positives. A larger factor generates fewer but more reliable signals.
🔶 Increment Factor (Default: 0.382)
The **Increment Factor** controls how the trend bands adjust as the price moves. It increases the distance of the bands from the price with each iteration.
Effect on performance: A higher increment factor can result in wider stop-loss or trend reversal bands, allowing for longer trends to develop without frequent exits. A lower factor keeps the bands closer to the price and is more suited for shorter-term trades.
🔶 Take Profit Levels (Default: 2%, 8%, 18%)
The default take-profit levels are set at 2%, 8%, and 18%. These values represent the thresholds at which the trader can partially exit their positions. These multi-step levels are highly customizable depending on the trader’s risk tolerance and strategy.
Effect on performance: Lower take-profit levels (e.g., 2%) capture small, quick profits in volatile markets, while higher levels (8%-18%) allow for a more gradual exit in strong trends.
🔶 Normalization Method (Default: None)
The default normalization method is **None**, meaning the deviations are not normalized. However, enabling normalization (e.g., **Max-Min**) can improve the clarity of the indicator’s signals in volatile or choppy markets by smoothing out the noise.
Effect on performance: Using a normalization method can reduce the effect of extreme deviations, making signals more stable and less prone to false positives.
ATR+Order Block IndicatorThe ATR+Order Block Indicator is a unique and comprehensive tool designed to combine volatility-based analysis with key price action levels to provide traders with reliable entry and exit points. This indicator merges the Average True Range (ATR) for dynamic trailing stop calculation with order block detection to identify significant support and resistance zones on the chart. This combination offers traders a powerful blend of trend-following and price level analysis for improved trading decisions.
How the Components Work Together:
1. ATR-Based Trailing Stop:
• The Average True Range (ATR) is a widely used volatility indicator that measures the degree of price movement over a specified period. In this indicator, the ATR is used to create a trailing stop that dynamically adjusts to market conditions.
• How It Works: The ATR value is multiplied by a user-defined multiplier (ATR Multiplier) to set the distance of the trailing stop from the current price. This trailing stop moves with the price:
• If the price moves upwards, the trailing stop adjusts higher, ensuring it only moves in the direction of the trade.
• If the price moves downwards, the trailing stop adjusts lower accordingly.
• Purpose: This trailing stop helps traders manage risk by automatically adjusting to market volatility, ensuring that stops are not too tight in volatile conditions or too wide in quieter markets. It also helps lock in profits while maintaining a position in the market’s direction.
2. Order Block Detection:
• Order blocks are areas on the chart where significant buying (accumulation) or selling (distribution) has occurred. These zones often act as potential support or resistance levels due to the presence of unfilled buy or sell orders by large institutions or traders.
• How It Works: The indicator identifies the highest high (seller order block) and the lowest low (buyer order block) within a user-defined lookback period. These are plotted on the chart:
• Buyer Order Block: Represents a potential support area where buying interest is likely to reappear.
• Seller Order Block: Represents a potential resistance area where selling interest may reemerge.
• Purpose: By identifying these order blocks, traders can anticipate potential price reversals or continuations, aligning their trades with key market levels where significant buying or selling has occurred.
Justification for Combining These Components:
1. Enhanced Signal Accuracy and Context:
• The combination of ATR-based trailing stops with order block detection provides a dual-layered approach to trade decisions:
• ATR Trailing Stop offers trend-following signals based on volatility, helping traders capture market momentum.
• Order Blocks provide context to these signals by highlighting critical price levels where market participants have previously shown strong interest.
• This fusion allows traders to filter signals more effectively, ensuring trades are aligned with both market trends and key support/resistance zones.
2. Dynamic Risk Management:
• Using the ATR to set a dynamic trailing stop ensures that the stop-loss level adapts to the changing volatility of the market. When combined with order block detection, traders gain an additional layer of risk management:
• Stop Loss Placement: Traders can place stops just outside identified order blocks to protect against sudden price reversals while maintaining a tight stop aligned with current market volatility.
3. Reducing Market Noise and Avoiding False Signals:
• The indicator includes a mechanism to avoid repetitive signals, requiring a minimum gap between signals. This reduces noise and helps traders avoid multiple false entries in choppy market conditions.
• Order Blocks provide additional validation: For example, a buy signal generated near a Buyer Order Block carries more weight, as it aligns both with the ATR-based momentum and a key support area.
4. Improving Entry and Exit Strategies:
• Entry Points: The indicator generates buy (long) signals when the price crosses above the ATR trailing stop and sell (short) signals when it crosses below. These signals are enhanced by considering their proximity to order blocks, ensuring trades are initiated at strategic price levels.
• Exit Points: The ATR trailing stop provides a dynamic exit strategy, allowing trades to run while adjusting to market volatility. Traders can also use order blocks as targets or potential reversal points to exit trades.
5. Providing a Comprehensive Trading Tool:
• This indicator is unique in its integration of volatility and price level analysis, offering a well-rounded approach to trading. It combines the best of both worlds: trend-following momentum with the ATR and price action sensitivity through order blocks, making it suitable for different market conditions and trading styles.
How to Use the Indicator:
• Set the Parameters:
• Choose an ATR Period (default is 10) to define the number of bars for ATR calculation.
• Set the ATR Multiplier (default is 1.5) to adjust the sensitivity of the trailing stop.
• Define the Order Block Lookback Period (default is 20) to determine how many bars back the script will search for order blocks. Recommended 50.
• Interpret the Signals:
• BUY Signal: When the price crosses above the ATR trailing stop, indicating upward momentum. Confirm this signal by checking if it is near a Buyer Order Block.
• SELL Signal: When the price crosses below the ATR trailing stop, indicating downward momentum. Look for proximity to a Seller Order Block for added confidence.
• Monitor and Manage Trades:
• Use the ATR trailing stop for dynamic stop-loss placement.
• Watch for price action around the order blocks to make informed decisions about taking profits or cutting losses.
Conclusion:
The ATR+Order Block Indicator combines volatility and price action analysis in a unique way that offers traders a comprehensive tool for making informed trading decisions. By leveraging the strengths of both ATR-based dynamic stops and order block detection, it provides a balanced approach to trend-following and support/resistance trading, enhancing overall trading effectiveness and confidence.
Cumulative Net Money FlowDescription:
Dive into the financial depth of the markets with the "Cumulative Net Money Flow" indicator, designed to provide a comprehensive view of the monetary dynamics in trading. This tool is invaluable for traders and investors seeking to quantify the actual money entering or exiting the market over a specified period.
Features:
Value-Weighted Calculations: This indicator multiplies the trading volume by the price, offering a money flow perspective rather than just counting shares or contracts.
Custom Timeframe Adaptability: Adjust the timeframe to match your trading strategy, whether you are day trading, swing trading, or looking for longer-term trends.
Cumulative Insight: Tracks and accumulates net money flow to highlight overall market sentiment, making it easier to spot trends in capital movement.
Color-Coded Visualization: Displays positive money flow in green and negative money flow in red, providing clear, visual cues about market conditions.
Utility: "Cumulative Net Money Flow" is particularly effective in revealing the strength behind market movements. By understanding whether the money flow is predominantly buying or selling, traders can better align their strategies with market sentiment. This indicator is suited for various asset classes, including stocks, cryptocurrencies, and forex.
DEMA Adaptive DMI [BackQuant]DEMA Adaptive DMI
PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner.
Conceptual Foundation and Innovation
The DEMA Adaptive DMI blends the Double Exponential Moving Average (DEMA) with the Directional Movement Index (DMI) to offer a unique approach to trend-following. By applying DEMA to the high and low prices, this indicator refines the traditional DMI calculation, enhancing its responsiveness to price changes. This results in a more adaptive and timely measure of market trends and momentum, providing traders with a more refined tool for capturing directional movements in the market.
Technical Composition and Calculation
At its core, the DEMA Adaptive DMI calculates the DEMA for both the high and low prices over a user-defined period. This dual application of DEMA serves to smooth out price fluctuations while retaining sensitivity to market movements. The DMI is then derived from the changes in these DEMA values, producing a set of plus and minus directional indicators that reflect the prevailing trend. Additionally, an Average Directional Index (ADX) is computed to measure the strength of the trend, with the entire process being dynamically adjusted based on the DEMA calculations.
DEMA Application:
The DEMA is applied to both high and low prices to reduce lag and provide a smoother representation of price action.
Directional Movement Calculation: The DMI is calculated using the smoothed price changes, resulting in plus and minus indicators that accurately reflect market trends.
ADX Calculation:
The ADX is computed to quantify the strength of the trend, offering traders insight into whether the market is trending strongly or is in a phase of consolidation.
Features and User Inputs The DEMA Adaptive DMI offers a range of customizable options to suit different trading styles and market conditions:
DEMA Calculation Period: Users can set the period for the DEMA calculation, allowing for adjustments based on the desired sensitivity.
DMI Length: The length of the DMI calculation can be adjusted, providing flexibility in how trends are measured.
ADX Smoothing Period: The smoothing period for the ADX can be customized to fine-tune the trend strength measurement.
Divergence Detection: Optional divergence detection features allow traders to spot potential reversals based on the DMI and price action.
Visualization options include static high and low levels to mark extreme DMI thresholds, the ability to color bars according to trend direction, and background hues to highlight overbought and oversold conditions.
Practical Applications
The DEMA Adaptive DMI is particularly effective in markets where trend strength and direction are crucial for successful trading. Traders can leverage this indicator to:
Identify Trend Reversals:
Detect potential trend reversals by monitoring the DMI and ADX in conjunction with divergence signals.
Trend Confirmation:
Use the DEMA-based DMI to confirm the strength and direction of a trend, aiding in the timing of entries and exits.
Strategic Positioning:
The indicator's responsiveness allows traders to position themselves effectively in fast-moving markets, reducing the risk of late entries or exits.
Advantages and Strategic Value
By integrating the DEMA with the DMI, this indicator provides a more adaptive and timely measure of market trends. The reduced lag from the DEMA ensures that traders receive signals that are closely aligned with current market conditions, while the dynamic DMI calculation offers a more accurate representation of trend direction and strength. This makes the DEMA Adaptive DMI a valuable tool for traders looking to enhance their trend-following strategies with a focus on precision and adaptability.
Summary and Usage Tips
The DEMA Adaptive DMI is a sophisticated trend-following indicator that combines the benefits of DEMA and DMI into a single, powerful tool. Traders are encouraged to incorporate this indicator into their trading systems for a more nuanced and responsive approach to trend detection and confirmation. Whether used for identifying trend reversals, confirming trend strength, or strategically positioning in the market, the DEMA Adaptive DMI offers a versatile and reliable solution for trend-following strategies.
Thus following all of the key points here are some sample backtests on the 1D Chart
Disclaimer: Backtests are based off past results, and are not indicative of the future.
INDEX:BTCUSD
INDEX:ETHUSD
BINANCE:SOLUSD
Atlantean Bitcoin Weekly Market Condition - Top/Bottom BTC Overview:
The "Atlantean Bitcoin Weekly Market Condition Detector - Top/Bottom BTC" is a specialized TradingView indicator designed to identify significant turning points in the Bitcoin market on a weekly basis. By analyzing long-term and short-term moving averages across two distinct resolutions, this indicator provides traders with valuable insights into potential market bottoms and tops, as well as the initiation of bull markets.
Key Features:
Market Bottom Detection: The script uses a combination of a simple moving average (SMA) and an exponential moving average (EMA) calculated over long and short periods to identify potential market bottoms. When these conditions are met, the script signals a "Market Bottom" label on the chart, indicating a possible buying opportunity.
Bull Market Start Indicator: When the short-term EMA crosses above the long-term SMA, it signals the beginning of a bull market. This is marked by a "Bull Market Start" label on the chart, helping traders to prepare for potential market upswings.
Market Top Detection: The script identifies potential market tops by analyzing the crossunder of long and short-term moving averages. A "Market Top" label is plotted, suggesting a potential selling point.
Customizable Moving Averages Display: Users can choose to display the moving averages used for detecting market tops and bottoms, providing additional insights into market conditions.
How It Works: The indicator operates by monitoring the interactions between the specified moving averages:
Market Bottom: Detected when the long-term SMA (adjusted by a factor of 0.745) crosses over the short-term EMA.
Bull Market Start: Detected when the short-term EMA crosses above the long-term SMA.
Market Top: Detected when the long-term SMA (adjusted by a factor of 2) crosses under the short-term SMA.
These conditions are highlighted on the chart, allowing traders to visualize significant market events and make informed decisions.
Intended Use: This indicator is best used on weekly Bitcoin charts. It’s designed to provide long-term market insights rather than short-term trading signals. Traders can use this tool to identify strategic entry and exit points during major market cycles. The optional display of moving averages can further enhance understanding of market dynamics.
Originality and Utility: Unlike many other indicators, this script not only highlights traditional market tops and bottoms but also identifies the aggressive start of bull markets, offering a comprehensive view of market conditions. The unique combination of adjusted moving averages makes this script a valuable tool for long-term Bitcoin traders.
Disclaimer: The signals provided by this indicator are based on historical data and mathematical calculations. They do not guarantee future market performance. Traders should use this tool as part of a broader trading strategy and consider other factors before making trading decisions. Not financial advice.
Happy Trading!
By Atlantean
