Frankie Candles Essentials [LuxAlgo]The Frankie Candles Essentials toolkit is a collection of essential features used by trader Frankie Candles. This toolkit focuses on the relationship between MTF oscillator divergences and volume profiles, allowing the detection of different kinds of reversals. Retracements from the "Golden Pocket" features are also included.
🔶 USAGE
When adding the script to your chart you will be prompted to select the calculation interval of the "Top-Down Volume Profile", simply click on your chart where you want the starting and ending points of the calculation interval.
🔹 Top-Down Volume Profile
The Top-Down Volume Profile is a classical fixed-range volume profile and highlights the amount of traded volume within equidistant price areas. The amount of areas is determined by the "Rows" setting (Note that the volume profile can use up to 250 rows).
The value area (VA) highlights the area where the specified percentage of the total volume is traded, that is the area with the most recorded trading activity relative to a selected percentage.
Finally, the point of control (POC) highlights the price level with the most trading activity.
🔹 Divergences
Users can highlight divergences made by oscillators on their charts. The toolkit includes three indicators such as RSI, MFI, and WaveTrend with MTF support, users can also select external oscillators but these will not support MTF divergence detection.
Once the Top-Down Volume Profile is set historical divergences will be affected by its value area (VA), with bearish divergences located above the upper VA or bullish divergences located under the lower VA being highlighted with a sauce can, a signature display stel of Frankie Candles.
Users can also filter out divergences based on the point of control (POC) using the "Filter According To POC" setting, with bearish divergences located below the POC or bullish divergences located above it being filtered out.
Do note that divergences are detected N bars after their occurrence, where N is the divergence lookback setting
🔹 Golden Pockets
The script includes an MTF Golden Pockets feature displaying Fibonacci retracements on the user chart, these can be used to identify optimal trade entries (OTE) or serve as support/resistance levels.
Golden Pockets are based on maximum/minimum prices in a window determined by the "Golden Pocket Lookback" setting, using longer-term lookbacks will return longer-term divergences, this will also be the case when using HTF golden pockets.
🔶 SETTINGS
🔹 Candle Coloring
Candle Coloring: Determine the candle coloring method used by the indicator. "Simple" will color the candles based on the candle body, while "Golden Pocket" will color candles using a gradient based on the golden pocket rolling maximum/minimum.
🔹 Top-Down Volume Profile
Top-Down Volume Profile: Enable Top-Down Volume Profile.
Rows: Amount of rows used by the Top-Down Volume Profile.
Width (%): Controls the histogram bar width as a percentage of the calculation window specified by the user set anchors.
Value Area (%): Area where the specified percentage of total volume is traded.
Extend To The Right: Extends the calculation window from the first anchor to the most recent bar.
🔹 MTF Divergences
Oscillator: Determines the oscillator and its length used for divergence detection. Options include "RSI", "MFI", "WaveTrend" and "External".
Divergence Lookback: Lookback period used to track oscillator tops/bottoms. Divergence will be detected n bars after an oscillator top/bottom, where n is the specified lookback period.
External Oscillator: External oscillator used for divergence detection if "External" is selected in the "Oscillator" dropdown menu, incompatible with Divergence Timeframe setting.
Divergence Timeframe: Timeframe used to calculate the selected oscillator and detect divergences. Incompatible with external oscillators.
Divergence From: Determines if price tops/bottoms evaluated to detect divergences are based on wicks (high/low price) or candle body (closing/opening price).
Filter According To POC: Filter displayed divergences based on the Top-Down Volume Profile POC.
Show Hidden: Display hidden divergences.
Show Sauce: Display canned source emoji on specific divergences.
🔹 Golden Pockets
Golden Pocket Lookback: Period used to calculate golden pockets, options include "Short-Term", "Medium-Term", and "Long-Term".
Extend: Extend Golden Pockets lines from the most recent bar by the specified amount of bars.
Golden Pocket Timeframe: Timeframe used to calculate the Golden Pockets.
Retracements: Display specific retracements, users can also control the ratio from the provided numerical setting.
Show Coordinate Line: Display a line connecting the top/bottom used to calculate the Golden Pockets.
Invert: Invert top/bottom for the Golden Pockets calculation.
M-oscillator
Smart Money Oscillator [ChartPrime]The "Smart Money Oscillator " is a premium and discount zone oscillator with BOS and CHoCH built in for further analysis of price action. This indicator works by first determining the the premium and discount zones by using pivot points and high/lows. The top of this oscillator represents the current premium zone while the bottom half of this oscillator represents the discount zone. This oscillator functionally works like a stochastic oscillator with more sophisticated upper and lower bounds generated using smart money concept theories. We have included a moving average to allow the user to visualize the currant momentum in the oscillator. Another key feature we have included lagging divergences to help traders visualize potential reversal conditions.
Understanding the concepts of Premium and Discount zones, as well as Break of Structure (BoS) and Change of Character (CHoCH), is crucial for traders using the Smart Money Oscillator. These concepts are rooted in market structure analysis, which involves studying price levels and movements.
Premium Zone is where the price is considered to be relatively high or 'overbought'. In this zone, prices have risen significantly and may indicate that the asset is becoming overvalued, potentially leading to a reversal or slowdown in the upward trend.
The Discount Zone represents a 'discount' or 'oversold' area. Here, prices have fallen substantially, suggesting that the asset might be undervalued. This could be an indicator of a potential upward reversal or a pause in the downward trend.
Break of Structure (BoS) is about the continuation of a trend. In a bullish trend, a BoS is identified by the break of a recent higher high. In a bearish trend, it's the break of a recent Lower Low. BoS indicates that the trend is strong and likely to continue in its current direction. It's a sign of strength in the prevailing trend, whether up or down.
Change of Character (CHoCH) is an indication of a potential end to a trend. It occurs when there's a significant change in the market's behavior, contradicting the current trend. For example, in an uptrend characterized by higher highs and higher lows, a CHoCH may occur if a new high is formed but then is followed by an impulsive move downwards. This suggests that the bullish trend may be weakening and a bearish reversal could be imminent. CHoCH is essentially a sign of trend exhaustion and potential reversal.
With each consecutive BoS, the signal line of the oscillator will deepen in color. This allows you to visually see the strength of the current trend. The maximum strength of the trend is found by keeping track of the maximum number of consecutive BoS's within a window of 10. This calculation excludes periods without any BoS's to allow for a more stable max.
Quick Update is a feature that implements a more aggressive algorithm to update the highs and lows. Instead of updating the pivot points exclusively to update the range levels, it will attempt to use the current historical highs/lows to update the bounds. This results in a more responsive range at the cost of stability. There are pros and cons for both settings. With Quick Update disabled, the indicator will allow for strong reversals to register without the indicator maxing out. With Quick Update enabled, the indicator will show shorter term extremes with the risk of the signal being pinned to the extremities during strong trends or large movements. With Quick Update disabled, the oscillator prioritizes stability, using a more historical perspective to set its bounds. When Quick Update is enabled, the oscillator becomes more responsive, adjusting its bounds rapidly to reflect the latest market movements.
The Scale Offset feature allows the indicator to break the boundaries of the oscillator. This can be useful when the market is breaking highs or lows allowing the user to identify extremities in price. With Scale Offset disabled the oscillator will always remain inside of the boundaries because the extremities will be updated instantly. When this feature is enabled it will update the boundaries one step behind instead of updating it instantly. This allows the user to more easily see overbought and oversold conditions at the cost of incurring a single bar lag to the boundaries. Generally this is a good idea as this behavior makes the oscillator more sensitive to recent price spikes or drops, reflecting sudden market movements more accurately. It accentuates the extremities of the market conditions, potentially offering a more aggressive analysis. The main trade-off with the Scale Offset feature is between sensitivity and potential overreaction. It offers a more immediate and exaggerated reflection of market conditions but might also lead to misinterpretations in certain scenarios, especially in highly volatile markets.
Divergence is used to predict potential trend reversals. It occurs when the price of an asset and the reading of an oscillator move in opposite directions. This discrepancy can signal a weakening of the current trend and possibly indicate a potential reversal.
Divergence doesn't always lead to a trend reversal, but it's a warning sign that the current trend might be weakening. Divergence can sometimes give false signals, particularly in strongly trending markets where the oscillator may remain in overbought or oversold conditions for extended periods. The lagging nature of using pivot points to calculate divergences means that all divergences are limited by the pivot look forward input. The upside of using a longer look forward is that the divergences will be more accurate. The obvious con here is that it will be more delayed and might be useless by the time it appears. Its recommended to use the built in divergences as a way to learn how these are formed so you can make your own in real time.
By default, the oscillator uses a smoothing of 3 to allow for a more price like behavior while still being rather smooth compared to raw price data. Conversely, you can increase this value to make this indicator behave smoother. Something to keep in mind is that the amount of delay from real time is equal to half of the smoothing period.
We have included a verity of alerts in this indicator. Here is a list of all of the available alerts: Bullish BOS, Bearish BOS, Bullish CHoCH, Bearish CHoCH, Bullish Divergence, Hidden Bullish Divergence, Bearish Divergence, Hidden Bearish Divergence, Cross Over Average, Cross Under Average.
Below are all of the inputs and their tooltips to get you started:
Settings:
Smoothing: Specifies the degree of smoothing applied to the oscillator. Higher values result in smoother but potentially less responsive signals.
Average Length: Sets the length of the moving average applied to the oscillator, affecting its sensitivity and smoothness.
Pivot Length: Specifies the forward-looking length for pivot points, affecting how the oscillator anticipates future price movements. This directly impacts the delay in finding a pivot.
Max Length: Sets the maximum length to consider for calculating the highest values in the oscillator.
Min Length: Defines the minimum length for calculating the lowest values in the oscillator.
Quick Update: Activates a faster update mode for the oscillator's extremities, which may result in less stable range boundaries.
Scale Offset: When enabled, delays updating minimum and maximum values to enhance signal directionality, allowing the signal to occasionally exceed normal bounds.
Candle Color: Enables coloring of candles based on the current directional signal of the oscillator.
Labels:
Enable BOS/CHoCH Labels: Activates the display of BOS (Break of Structure) and CHoCH (Change of Character) labels on the chart.
Visual Padding: Turns on additional visual padding at the top and bottom of the chart to accommodate labels. Determines the amount of visual padding added to the chart for label display.
Divergence:
Divergence Pivot: Defines the number of bars to the right of the pivot in divergence calculations, influencing the oscillator's responsiveness.
Divergence Pivot Forward: Directly impacts latency. Longer periods results in more accurate results at the sacrifice of delay.
Upper Range: Sets the upper range limit for divergence calculations, influencing the oscillator's sensitivity to larger trends.
Lower Range: Determines the lower range limit for divergence calculations, affecting the oscillator's sensitivity to shorter trends.
Symbol: Allows selection of the label style for divergence indicators, with options for text or symbolic representation.
Regular Bullish: Activates the detection and marking of regular bullish divergences in the oscillator.
Hidden Bullish: Enables the identification and display of hidden bullish divergences.
Regular Bearish: Turns on the feature to detect and highlight regular bearish divergences.
Hidden Bearish: Activates the functionality for detecting and displaying hidden bearish divergences.
Color:
Bullish: Determines the minimum/maximum color gradient for bullish signals, impacting the chart's visual appearance.
Bearish: Defines the minimum/maximum color gradient for bearish signals, affecting their visual representation.
Average: Specifies the color for the average line of the oscillator, enhancing chart readability.
CHoCH: Sets the color for bullish/bearish CHoCH (Change of Character) signals.
Premium/Discount: Determines the color for the premium/discount zone in the oscillator's visual representation.
Text Color: Sets the color for the text in BoS/CHoCH labels.
Regular Bullish: Defines the color used to represent regular bullish divergences.
Hidden Bullish: Specifies the color for hidden bullish divergences.
Regular Bearish: Determines the color for hidden bearish divergences.
Divergence Text Color: Specifies the color for the text in divergence labels.
CCMFDescription:
The Complex Chaikin Money Flow (CCMF) is an advanced technical analysis tool designed to provide a nuanced understanding of market momentum and potential trend reversals. By integrating the Modified Chaikin Money Flow with its Rate of Change (ROC), CCMF offers a dynamic view of buying and selling pressures, combined with the velocity of market movement. This indicator is particularly useful for traders looking to capture swift shifts in momentum and identify key trend changes early.
Guide on How to Use the CCMF:
Understanding the Components:
mCMF: Reflects the buying and selling pressure, combining price and volume. A higher mCMF indicates strong buying pressure, while a lower mCMF suggests increased selling pressure.
ROC of mCMF: Measures the speed at which the mCMF is changing. An increasing ROC suggests accelerating momentum, while a decreasing ROC indicates slowing momentum.
Setting Up the Indicator:
Add the CCMF to your chart from the TradingView public library.
Ensure you understand each input parameter and adjust them according to the asset and timeframe you're analyzing.
Interpreting Signals:
Buy Signals: Look for periods where the mCMF is rising, especially when the ROC is also increasing. A background turning green can also indicate a strong buying opportunity if it crosses above the predefined threshold.
Sell Signals: Watch for periods where the mCMF is falling, particularly when the ROC is decreasing. A background turning red can signal a potential sell opportunity if it crosses below the predefined negative threshold.
Using Alerts:
Set up alerts for when the ROC crosses above or below your set thresholds to be notified of potential buy or sell opportunities.
Complementary Analysis:
While CCMF provides valuable insights, it's always beneficial to use it alongside other indicators and fundamental analysis to confirm signals and provide additional context.
Tips:
Backtesting: Before relying on CCMF for live trading, backtest it against historical data to understand its behavior and effectiveness.
Adjust Parameters: Fine-tune input values to match your specific trading style and the volatility of the asset you're trading.
Risk Management: Use stop-loss orders and only risk a small percentage of your trading capital on any single trade to protect yourself against sudden market moves.
Stay Informed: Keep an eye on market news and events that could affect asset prices and potentially lead to significant changes in the CCMF readings.
CMI - Complex Momentum IndexDescription:
The Complex Momentum Index (CMI) is a comprehensive technical analysis tool designed to provide a multifaceted view of an asset's momentum and trend strength. It combines several key indicators: Relative Strength Index (RSI), Chaikin Money Flow (CMF), and Simple Moving Averages (SMAs) differences, along with the asset's price percentage difference from its SMA. Each component is weighted and normalized, contributing to the overall CMI value, which is then smoothed with a moving average (either SMA or EMA) to provide clear signals.
Guide on How to Use:
Indicator Settings:
RSI Length: Adjust the period over which RSI is calculated.
Source: Choose the price type (e.g., close, open) used for RSI calculation.
CMF Length: Set the period for the CMF calculation.
SMA Lengths: Define two periods for calculating the moving averages and their percentage difference.
Timeframes for SMAs: Select the timeframes for calculating SMA differences and price percentage differences.
Weights: Assign importance to each component (RSI, CMF, SMA differences, and Price:SMA difference) through weights.
CMI MA Settings: Choose the type (SMA or EMA) and length of the moving average applied to the CMI.
CMI Target Matching Settings: Define a target value for CMI and a threshold for highlighting when CMI is near this target.
Understanding the Plots:
CMI: The main line, representing the composite index of momentum indicators.
CMI MA: The moving average of CMI, providing a smoothed trend line.
CMI % Difference from MA: Highlights the divergence between CMI and its moving average, which can signal momentum shifts.
CMF (scaled): A scaled version of the Chaikin Money Flow, indicating buying or selling pressure.
RSI: The Relative Strength Index, showing whether the asset is overbought or oversold.
SMA Difference %: The percentage difference between two SMAs, indicating the trend strength.
Price % Diff from SMA: The asset's price percentage difference from its SMA, showing its position relative to a typical value.
Using CMI for Trading Decisions:
Trend Identification: A rising CMI and CMI MA indicates strengthening upward momentum, while falling lines suggest increasing downward momentum.
Divergence: Look for divergences between the CMI and price. If the price is making new highs/lows but the CMI isn't, it might signal a potential reversal.
CMI Target Match: The background highlights when the CMI matches a specified target within a threshold, which can be used to identify potential entry or exit points.
CMI % Difference from MA: Large deviations from the moving average might indicate overextended prices, suggesting a potential pullback or bounce.
Tips:
Customize the weights and lengths based on the asset and your trading style. Different settings might work better for different market conditions.
Always confirm signals with additional analysis. No indicator works perfectly in all situations.
Consider the overall market context and news that might affect the asset's price.
Practice risk management and use stop-loss orders to protect your investments.
Decrease the weight of the RSI & MA's to put more emphasis on money flow while keeping that data in the plot.
Uncheck everything but CMI in the style page for visual clarity (can't do this in code)
Activity & Chop ScoreRelease Notes:
The Activity and Chop Score was designed to help traders quickly determine if a market is active and/or choppy (not moving with any urgency). Slow and chopping markets should be approached with caution or avoided.
How does it work? The Activity Score incorporates momentum and the linear regression. Momentum (change in price over time) is compared over a long and short time period. Active markets are when those are moving together. This is combined with a linear regression of the price to determine the Correlation Coefficient (r^2) to measure of trend strength. The score is a is the average of the two momentum values, normalized by the standard deviation, and scaled by the trend (r^2 value). Chop is defined as divergence between long and short momentum periods. The divergences (chop) are quantified with a Jaccard Similarity Score, normalized by the standard deviation, and averaged to create a score.
How can you use it? This indicator is best used on lower timeframes. Activity Scores Values below 1 are considered low and values over 2 are high. Avoid markets where the Activity Score is below 1. There is an alert threshold in the options. Pivots are worth paying attention too as well as they indicate the start and stop of a recent move. You can compare markets or assets with the Chop Score. You make chose to avoid those with higher Chop Score. The position of the two lines relative to each other are useful. Ideally, the Activity Score is higher than the Chop Score. As with any indicators, it should be used in combination with others that best suits your trading style.
Open Interest OscillatorIn the middle of a bustling cryptocurrency market, with Bitcoin navigating a critical phase and the community hype over potential ETF approvals, current funding rates, and market leverage, the timing is optimal to harness the capabilities of sophisticated trading tools.
Meet the Open Interest Oscillator – special indicator tailored for the volatile arena of cryptocurrency trading. This powerful instrument is adept at consolidating open interest data from a multitude of exchanges, delivering an in-depth snapshot of market sentiment across all timeframes, be it a 1-minute sprint or a weekly timeframe.
This versatile indicator is compatible with nearly all cryptocurrency pairs, offering an expansive lens through which traders can gauge the market's pulse.
Key Features:
-- Multi-exchange Data Aggregation: This feature taps into the heart of the crypto market by aggregating open interest data from premier exchanges such as BINANCE, BITMEX, BITFINEX, and KRAKEN. It goes a step further by integrating data from various pairs and stablecoins, thus providing traders with a rich, multi-dimensional view of market activities.
-- Open Interest Bars: Witness the flow of market dynamics through bars that depict the volume of positions being opened or closed, offering a clear visual cue of trading behavior. In this mode, If bars are going into negative zone, then traders are closing their positions. If they go into positive territory - leveraged positions are being opened.
-- Bollinger Band Integration: Incorporate a layer of statistical analysis with standard deviation calculations, which frame the open interest changes, giving traders a quantified edge to evaluate the market's volatility and momentum.
-- Oscillator with Customizable Thresholds: Personalize your trading signals by setting thresholds that resonate with your unique trading tactics. This customization brings the power of tailored analytics to your strategic arsenal.
-- Max OI Ceiling Setting: In the fast-paced crypto environment where data can surge to overwhelming levels, the Max OI Ceiling ensures you maintain a clear view by capping the open interest data, thus preserving the readability and interpretability of information, even when market activity reaches feverish heights.
Bitcoin/Hash Rate Oscillator & MAWhat it does:
Finds the ratio of BTC price to the Hash Rate with an additional MA applied to find changes in volatility with relative context. Best used as a two lines cross indicator.
When the ratio of price to hashrate increases, it may be a sign miners cannot or will not sell as much.
When the ratio decreases, it may indicate miners have more capability and/or incentive to sell.
How it works:
The indicator uses a MA applied to the hashrate(first MA input), then finds the difference between it and the actual hash rate. Then it finds the STD of that to create an oscillating value. BTC is divided by said value. Then a second MA is applied to that ratio(second MA input)
ROC & EMAIn summary, this allows you to plot the ROC, its EMA, and dynamically display the value of this EMA on the chart.
You can configure different lengths and colors.
Unpretentious code, just for the pleasure of sharing.
Thank you for sharing your comments with me, which will be welcome.
Donchian Channels StrengthTL;DR - A different approach calculating strength based on Donchain channels
My approach calculating strength by using the difference between price and donchain average. It is possible to use the highest/lowest value of a given source (like close) or to use the highest high/lowest low (by using the option 'include wicks') for the strength calculation
I added multiple moving averages which can be used in the calculations incl. SMMA (RMA) which is used in RSI calculation and works best for me.
Usage is similar to RSI: DC Strength oscillates between 0 and 100. Low values (<20) indicate a bearish situation while high values (>80) indicate bullish ones. Center line (50) crossings can also indicate a possible trend change.
Ichimoku OscillatorFans of the Ichimoku cloud indicator may enjoy this lower study version.
It's all the exact same representation but the cloud is converted to an oscillation in histogram or classic cloud fill formats.
All of the original lines, except Kumo cloud lines, are provided but adjusted to be positionally accurate to the oscillation values.
The oscillation value is calculated simply by absolute subtraction of span a and b lines and as such become an additional width detection mechanism in what I consider to be a slightly cleaner display.
Since the entire cloud can be removed from the main chart, it's necessary to understand price location relative to the values which is calculated and displayed as the 'Price' plot. It is positionally accurate to the oscillation and cross signals can be observed.
My hope is that this serves as a foundation for others to create interesting Ichimoku lower study indicators, and to provide relief to traders looking for cleaner main charts.
I've done my best to ensure accuracy but if any issues are found please let me know.
Feedback and suggestions are welcome, enjoy.
Simple Neural Network Transformed RSI [QuantraSystems]Simple Neural Network Transformed RSI
Introduction
The Simple Neural Network Transformed RSI (ɴɴᴛ ʀsɪ) stands out as a formidable tool for traders who specialize in lower timeframe trading.
It is an innovative enhancement of the traditional RSI readings with simple neural network smoothing techniques.
This unique blend results in fairly accurate signals, tailored for swift market movements. The ɴɴᴛ ʀsɪ is particularly resistant to the usual market noise found in lower timeframes, ensuring a clearer view of short-term trends.
Furthermore, its diverse range of visualization options adds versatility, making it a valuable tool for traders seeking to capitalize on short-duration market dynamics.
Legend
In the Image you can see the BTCUSD 1D Chart with the ɴɴᴛ ʀsɪ in Trend Following Mode to display the current trend. This is visualized with the barcoloring.
Its Overbought and Oversold zones start at 50% and end at 100% of the selected Standard Deviation (default σ = 2), which can indicate extremely rare situations which can lead to either a softening momentum in the trend or even a mean reversion situation.
Here you can also see the original Indicator line and the Heikin Ashi transformed Indicator bars - more on that now.
Notes
Quantra Standard Value Contents:
To draw out all the information from the indicator calculation we have added a Heikin-Ashi (HA) Candle Visualization.
This HA transformation smoothens out the indicator values and gives a more informative look into Momentum and Trend of the Indicator itself.
This allows early entries and exits by observing the HA transformed Indicator values.
To diversify, different visualization options are available, either a classic line, HA transformed or Hybrid, which contains both of the previous.
To make Quantra's Indicators as useful and versatile as possible we have created options
to change the barcoloring and thus the derived signal from the indicator based on different modes.
Option to choose different Modes:
Trend Following (Indicator above mid line counts as uptrend, below is downtrend)
Extremities (Everything going beyond the Deviation Bands in a Mean Reversion manner is highlighted)
Candles (Color of HA candles as barcolor)
Reversion (HA ONLY) (Reversion Signals via the triangles if HA candles change state outside of the Deviation Bands)
- Reversion Signals are indicated by the triangles in the Heikin-Ashi or Hybrid visualization when the HA Candles revert
from downwards to upwards or the other way around OUTSIDE of the SD Bands.
Depending on the Indicator they signal OB/OS areas and can either work as high probability entries and exits for Mean Reversion trades or
indicate Momentum slow downs and potential ranges.
Please use another indicator to confirm this.
Case Study
To effectively utilize the NNT-RSI, traders should know their style and familiarize themselves with the available options.
As stated above, you have multiple modes available that you can combine as you need and see fit.
In the given example mostly only the mode was used in an isolated fashion.
Trend Following:
Purely relied on State Change - Midline crossover
Could be combined with Momentum or Reversion analysis for better entries/exits.
Extremities:
Ideal entry/exit is in the accordingly colored OS/OB Area, the Reversion signaled the latest possible entry/exit.
HA Candles:
Specifically applicable for strong trends. Powerful and fast tool.
Can whip if used as sole condition.
Reversions:
Shows the single entry and exit bars which have a positive expected value outcome.
Can also be used as confirmation or as last signal.
Please note that we always advise to find more confluence by additional indicators.
Traders are encouraged to test and determine the most suitable settings for their specific trading strategies and timeframes.
In the showcased trades the default settings were used.
Methodology
The Simple Neural Network Transformed RSI uses a simple neural network logic to process RSI values, smoothing them for more accurate trend analysis.
This is achieved through a linear combination of RSI values over a specified input length, weighted evenly to produce a neural network output.
// Simple neural network logic (linear combination with weighted aggregation)
var float inputs = array.new_float(nnLength, na)
for i = 0 to nnLength - 1
array.set(inputs, i, rsi1 )
nnOutput = 0.0
for i = 0 to nnLength - 1
nnOutput := nnOutput + array.get(inputs, i) * (1 / nnLength)
nnOutput
This output is then compared against a standard or dynamic mean line to generate trend following signals.
Mean = ta.sma(nnOutput, sdLook)
cross = useMean? 50 : Mean
The indicator also incorporates Heikin Ashi candlestick calculations to provide additional insights into market dynamics, such as trend strength and potential reversals.
// Calculate Heikin Ashi representation
ha = ha(
na(nnOutput ) ? nnOutput : nnOutput ,
math.max(nnOutput, nnOutput ),
math.min(nnOutput, nnOutput ),
nnOutput)
Standard deviation bands are used to create dynamic overbought and oversold zones, further enhancing the tool's analytical capabilities.
// Calculate Dynamic OB/OS Zones
stdv_bands(_src, _length, _mult) =>
float basis = ta.sma(_src, _length)
float dev = _mult * ta.stdev(_src, _length)
= stdv_bands(nnOutput, sdLook,sdMult/2)
= stdv_bands(nnOutput, sdLook, sdMult)
The Standard Deviation bands take defined parameters from the user, in this case sigma of ideally between 2 to 3,
to help the indicator detect extremely improbable conditions and thus take an inversely probable signal from it to forward to the user.
The parameter settings and also the visualizations allow for ample customizations by the trader.
For questions or recommendations, please feel free to seek contact in the comments.
MCG - Meme Coin Gains [Logue]Meme Coin Gains. Investor preference for meme coin trading may signal irrational exuberance in the crypto market. If a large spike in meme coin gains is observed, a top may be near. Therefore, the gains of the most popular meme coins (DOGE, SHIB, SATS, ORDI, BONK, PEPE, and FLOKI) were averaged together in this indicator to help indicate potential mania phases, which may signal nearing of a top. Two simple moving averages of the meme coin gains are used to smooth the data and help visualize changes in trend. In back testing, I found a 10-day "fast" sma and a 20-day "slow" sma of the meme coin gains works well to signal tops and bottoms when extreme values of this indicator are reached.
Meme coins were not traded heavily prior to 2020. Therefore, there is only one cycle to test at the time of initial publication. Also, the meme coin space moves fast, so more meme coins may need to be added later. Also, once a meme coin has finished its mania phase where everyone and their mother has heard of it, it doesn't seem to run again (at least with the data up until time of publication). Therefore, the value of this indicator may not be great unless it is updated frequently.
The two moving averages are plotted. For the indicator, top and bottom "slow" sma trigger lines are plotted. The sma trigger line and the periods (daily) of the moving averages can be modified to your own preferences. The "slow" sma going above or below the trigger lines will print a different background color. Plot on a linear scale if you want to view this as similar to an RSI-type indicator. Plot on a log scale if you want to view as similar to a stochastic RSI.
Use this indicator at your own risk. I make no claims as to its accuracy in forecasting future trend changes of Bitcoin or the crypto market.
BDC - Bitcoin (BTC) Dominance Change [Logue]Bitcoin Dominance Change. Interesting things tend to happen when the Bitcoin dominance increases or decreases rapidly. Perhaps because there is overexuberance in the market in either BTC or the alts. In back testing, I found a rapid 13-day change in dominance indicates interesting switches in the BTC trends. Prior to 2019, the indicator doesn't work as well to signal trend shifts (i.e., local tops and bottoms) likely based on very few coins making up the crypto market.
The BTC dominance change is calculated as a percentage change of the daily dominance. You are able to change the upper bound, lower bound, and the period (daily) of the indicator to your own preferences. The indicator going above the upper bound or below the lower bound will trigger a different background color.
Use this indicator at your own risk. I make no claims as to its accuracy in forecasting future trend changes of Bitcoin.
Advanced Volatility Oscillator with SignalsTitle: Advanced Volatility Oscillator with Signals (AVO-S)
In-Depth Description:
Introduction:
The Advanced Volatility Oscillator with Signals (AVO-S) is designed to offer traders a nuanced understanding of market volatility, combining traditional concepts with innovative visual aids and signal interpretation. This indicator is tailored for diverse financial markets, helping to identify potential trend reversals and momentum shifts.
Calculation and Methodology:
Spike Calculation: The core of AVO-S is the 'spike', calculated as the difference between the closing and opening prices (spike = close - open). This measure provides a straightforward gauge of intra-period volatility.
Standard Deviation: The indicator employs standard deviation to assess the variability of the 'spike', offering a dynamic threshold for understanding market extremities (stdDev = stdev(spike, length)).
Colored Columns: These columns visually represent the 'spike'. Their color changes based on the spike’s value relative to the zero line and the standard deviation threshold, providing an immediate visual cue of market state.
Blue Columns: Indicate moderate positive movement when the spike is above zero but below the standard deviation.
Green and Red Columns: Suggest stronger bullish (above standard deviation) and bearish (below negative standard deviation) movements, respectively.
Bullish and Bearish Signals:
The indicator generates signals based on the relationship between the 'spike' and its standard deviation.
Bullish Signals: Shown as upward triangles, these are formed when the 'spike' crosses above the standard deviation, indicating potential upward momentum.
Bearish Signals: Represented by downward triangles, these signals are generated when the 'spike' falls below the negative standard deviation, hinting at potential downward trends.
Usage and Application:
Traders can use the colored columns to quickly assess market sentiment and volatility.
The bullish and bearish signals serve as potential indicators for market entry or exit points, or for further analysis in conjunction with other technical tools.
Inspiration and Credits:
Inspired by Veryfid's original Volatility Oscillator, the AVO-S refines and builds upon these ideas to provide a comprehensive and user-friendly tool for market analysis. This indicator is a testament to the continuous evolution of technical analysis tools in the trading community.
Donchian Channels %I enjoy Donchian Channels for identifying trends. However, I hate having them on my chart. They are next to impossible to interpret at a glance. This script converts DCs to a % making a useful oscillator. The horizontal lines on the chart correspond to the Fib retracements below 50%. There are many ways to trade using this script and it works on any time frame. Moving average crosses are worth your attention, particularly, the 34 period MA (purple line). Enjoy and happy trading.
Alpha Schaff [AlgoAlpha]Description:
The Alpha Schaff indicator is a proprietary technical analysis tool that incorporates a modified version of the Schaff Trend Cycle (STC) to generate trading signals. The indicator is designed to identify potential overbought and oversold conditions in the market. It utilizes a combination of exponential moving averages (EMAs) and price volatility to generate trading signals. The plot of the indicator is derived from the opening price adjusted by a factor that depends on the Alpha Schaff value. A color scheme is used to indicate whether the current value is higher or lower than the previous value.
What is Alpha Schaff?:
Alpha Schaff is a technical indicator used in trading to identify potential trend reversals and confirm the strength of a current trend. It combines multiple moving averages and oscillators to generate buy and sell signals. Traders use Alpha Schaff to make informed decisions about entering or exiting positions based on its indications of trend momentum and market conditions.
Calculation:
The Alpha Schaff indicator calculates the difference between fast and slow EMAs based on the specified input lengths. It then measures the highest and lowest values of the difference over a defined sensitivity period. The indicator normalizes these values to a percentage scale to provide insights into the current market conditions.
How to use it?:
Monitor the color of the indicator line. A change in color indicates a potential trend reversal. For example, a switch from white to a purple color suggests a possible bullish trend, while a switch from a purple color to white indicates a potential bearish trend. Points of reversal can also be indicated by distinctive arrows pointing upwards or downward as well as visualized in bullish/bearish colors. The Distance between the indicator plot and the source can be interpreted as a measurement of price volatility. The script includes alert conditions that trigger when specific criteria are met. These alerts can notify users of potential buying or selling opportunities based on the indicator's signals.
Utility:
The Alpha Schaff is a trend-following indicator suitable for traders operating in trending markets. It offers clear and precise signals that provide valuable insights into bullish or bearish price movements. Additionally, this indicator stands out by incorporating distinctive arrows, indicating potential retracement points and allowing traders to anticipate mean reversion.
Originality:
The Alpha Schaff indicator, developed by AlgoAlpha introduces a proprietary modification to the Schaff Trend Cycle (STC) by incorporating multiple moving averages and oscillators. While the concept of the Schaff Trend Cycle exists, the specific implementation and combination of elements in the Alpha vSchaff indicator are unique to this tool. The inclusion of color schemes, arrow indicators, and volatility measurements sets it apart from other technical analysis indicators. Traders can benefit from its originality by utilizing its distinctive features to make more informed trading decisions in trending markets.
Fusion: Aroon trend matching with dual thresholds 2Same as previous one, just making the code publicly available.
You set an upper and lower threshold and when both are met a direction is determined.
I use this primarily as a confirmation indicator of a trend.
The addition to the normal Aroon is simply the threshold settings and the visuals. There is even an option to see the length you are using which I find useful when the length is long, say 40+ so you don't forget that it's considerably longer than how it's normally used.
Additionally it defaults to the normal colors we are familar with for up and down (long/short) but you can choose Aroon colors if you wish with just a checkbox.
The length is certainly not optimized so set to whatever suits your needs. The Aroon default is 14, I used 6 for one particular case so that's what it ended up being for this indicator.
I default to a dark theme so if you are using a light theme you may need to change some brightness settings.
Finally, if you find value please do make a comment, give a thumbs up etc.
Enjoy and good luck!
Amazing Oscillator (AO) [Algoalpha]Description:
Introducing the Amazing Oscillator indicator by Algoalpha, a versatile tool designed to help traders identify potential trend shifts and market turning points. This indicator combines the power of the Awesome Oscillator (AO) and the Relative Strength Index (RSI) to create a new indicator that provides valuable insights into market momentum and potential trade opportunities.
Key Features:
Customizable Parameters: The indicator allows you to customize the period of the RSI calculations to fine-tune the indicator's responsiveness.
Visual Clarity: The indicator uses user-defined colors to visually represent upward and downward movements. You can select your preferred colors for both bullish and bearish signals, making it easy to spot potential trade setups.
AO and RSI Integration: The script combines the AO and RSI indicators to provide a comprehensive view of market conditions. The RSI is applied to the AO, which results in a standardized as well as a less noisy version of the Awesome Oscillator. This makes the indicator capable of pointing out overbought or oversold conditions as well as giving fewer false signals
Signal Plots: The indicator plots key levels on the chart, including the RSI threshold(Shifted down by 50) at 30 and -30. These levels are often used by traders to identify potential trend reversal points.
Signal Alerts: For added convenience, the indicator includes "x" markers to signal potential buy (green "x") and sell (red "x") opportunities based on RSI crossovers with the -30 and 30 levels. These alerts can help traders quickly identify potential entry and exit points.
Trend Flow Profile [AlgoAlpha]Description:
The "Trend Flow Profile" indicator is a powerful tool designed to analyze and interpret the underlying trends and reversals in a financial market. It combines the concepts of Order Flow and Rate of Change (ROC) to provide valuable insights into market dynamics, momentum, and potential trade opportunities. By integrating these two components, the indicator offers a comprehensive view of market sentiment and price movements, facilitating informed trading decisions.
Rationale:
The combination of Order Flow and ROC in the "Trend Flow Profile" indicator stems from the recognition that both factors play critical roles in understanding market behavior. Order Flow represents the net buying or selling pressure in the market, while ROC measures the rate at which prices change. By merging these elements, the indicator captures the interplay between market participants' actions and the momentum of price movements, enabling traders to identify trends, spot reversals, and gauge the strength of price acceleration or deceleration.
Calculation:
The Order Flow component is computed by summing the volume when prices move up and subtracting the volume when prices move down. This cumulative measure reflects the overall order imbalance in the market, providing insights into the dominant buying or selling pressure.
The ROC component calculates the percentage change in price over a given period. It compares the current price to a previous price and expresses the change as a percentage. This measurement indicates the velocity and direction of price movement, allowing traders to assess the market's momentum.
How to Use It?
The "Trend Flow Profile" indicator offers valuable information to traders for making informed trading decisions. It enables the identification of underlying trends and potential reversals, providing a comprehensive view of market sentiment and momentum. Here are some key ways to utilize the indicator:
Spotting Trends: The indicator helps identify the prevailing market trend, whether bullish or bearish. A consistent positive (green) histogram indicates a strong uptrend, while a consistent negative (red) histogram suggests a robust downtrend.
Reversal Signals: Reversal patterns can be identified when the histogram changes color, transitioning from positive to negative (or vice versa). These reversals can signify potential turning points in the market, highlighting opportunities for counter-trend trades.
Momentum Assessment: By observing the width and intensity of the histogram, traders can assess the acceleration or deceleration of price momentum. A wider histogram suggests strong momentum, while a narrower histogram indicates a potential slowdown.
Utility:
The "Trend Flow Profile" indicator serves as a valuable tool for traders, providing several benefits. Traders can easily identify the prevailing market trend, enabling them to align their trading strategies with the dominant direction of the market. The indicator also helps spot potential reversals, allowing traders to anticipate market turning points and capture counter-trend opportunities. Additionally, the green and red histogram colors provide visual cues to determine the optimal duration of a long or short position. Following the green histogram signals when in a long position and the red histogram signals when in a short position can assist traders in managing their trades effectively. Moreover, the width and intensity of the histogram offer insights into the acceleration or deceleration of momentum. Traders can gauge the strength of price movements and adjust their trading strategies accordingly. By leveraging the "Trend Flow Profile" indicator, traders gain a comprehensive understanding of market dynamics, which enhances their decision-making and improves their overall trading outcomes.
WPO Modified [BackQuant]The Wave Period Oscillator (WPO), developed by Akram El Sherbini, is a sophisticated technical analysis tool that offers traders a dynamic way to interpret market cycles. Its design is inspired by the natural ebb and flow of markets, which often follow cyclical patterns driven by underlying economic, political, and psychological factors. The oscillator's unique contribution to market analysis lies in its ability to smooth out the "noise" inherent in daily price movements, thus providing a clearer view of the market's rhythmic fluctuations over time.
-----> Time Cycle Oscillators' in the IFTA Journal 2018 (page 66 - 77), as found below:
ifta.org
El Sherbini's WPO is grounded in the concept of wave period analysis, which suggests that financial markets move in waves or cycles. The oscillator translates these movements into a visual tool that oscillates above and below a central zero line. Peaks and troughs on the oscillator correspond to the crests and troughs of market price waves, providing a visual representation of the market's heartbeat.
The WPO is not merely a tool for identifying trends but also for detecting shifts in market momentum. It does this through a mathematical model that measures divergence—when the direction of the oscillator deviates from the direction of price movement. Such divergences can be precursors to potential reversals or continuations in the market, offering traders advance notice of significant changes in price direction.
Further refining its utility, the WPO incorporates methods for calculating divergence that are sensitive to the unique conditions of different markets and securities. This includes adjusting for volatility and market velocity, allowing the oscillator to provide relevant signals regardless of the market environment.
In practical terms, traders use the WPO to time their entries and exits with greater precision. When the oscillator shows a high peak or a deep trough, it can signal that a market is potentially overbought or oversold, respectively. The WPO's smoothing property ensures that these signals are not just reactionary to short-term price spikes or drops, but indicative of more substantial, sustained movements.
By providing a more measured and smoothed analysis of market cycles, the WPO helps to filter out insignificant price movements and focus on the ones that matter—those that indicate a significant wave of buying or selling pressure. This can be particularly valuable in the cryptocurrency markets, where volatility is high, and traditional indicators may struggle to provide clear signals.
For traders and analysts alike, the Wave Period Oscillator represents a convergence of technical precision and market psychology. By focusing on the periodic nature of market movements, it aligns traders with the rhythm of the markets, potentially leading to more harmonious trading decisions that are in step with the market's natural waves.
Please see the backtest here:
For more simple terms:
You can use this indicator as a the oscillator
Above 0 for long
Below 0 for short
OR
WPO MA
Above 0 for long
Below 0 for short
GET ATR%This indicator plots the Average True Range-ATR as a % of price and a SMA line. We like to day trade when the ATR is above 4% so the shaded area shows when the ATR is below the 4% level.
Bollinger Bands Percentile + Stdev Channels (BBPct) [AlgoAlpha]Description:
The "Bollinger Bands Percentile (BBPct) + STD Channels" mean reversion indicator, developed by AlgoApha, is a technical analysis tool designed to analyze price positions using Bollinger Bands and Standard Deviation Channels (STDC). The combination of these two indicators reinforces a stronger reversal signal. BBPct calculates the percentile rank of the price's standard deviation relative to a specified lookback period. Standard deviation channels operate by utilizing a moving average as the central line, with upper and lower lines equidistant from the average based on the market's volatility, helping to identify potential price boundaries and deviations.
How it Works:
The BBPct indicator utilizes Bollinger Bands, which consist of a moving average (basis) and upper and lower bands based on a specified standard deviation multiplier. By default, it uses a 20-period moving average and a standard deviation multiplier of 2. The upper band is calculated by adding the basis to the standard deviation multiplied by the multiplier, while the lower band is calculated by subtracting the same value. The BBPct indicator calculates the position of the current price between the lower and upper Bollinger Bands as a percentile value. It determines this position by comparing the price's distance from the lower band to the overall range between the upper and lower bands. A value of 0 indicates that the price is at the lower band, while a value of 100 indicates that the price is at the upper band. The indicator also includes an optional Bollinger Band standard deviation percentage (%Stdev) histogram, representing the deviation of the current price from the moving average as a percentage of the price itself.
Standard deviation channels, also known as volatility channels, aid in identifying potential buying and selling opportunities while minimizing unfavorable trades. These channels are constructed by two lines that run parallel to a moving average. The separation between these lines is determined by the market's volatility, represented by standard deviation. By designating upper and lower channel lines, the channels demarcate the borders between typical and atypical price movements. Consequently, when the market's price falls below the lower channel line, it suggests undervaluation, whereas prices surpassing the upper channel line indicate overvaluation.
Signals
The chart displays potential reversal points through the use of red and green arrows. A red arrow indicates a potential bearish retracement, signaling a possible downward movement, while a green arrow represents a potential pullback to the positive, suggesting a potential upward movement. These signals are generated only when both the BBPct (Bollinger Bands Percentage) and the STDC (Standard Deviation Channel) indicators align with bullish or bearish conditions. Consequently, traders might consider opening long positions when the green arrow appears and short positions when the red arrow is plotted.
Usage:
This indicator can be utilized by traders and investors to effectively identify pullbacks, reversals, and mean regression, thereby enhancing their trading opportunities. Notably, extreme values of the BBPct, such as below -5 or above 105, indicate oversold or overbought conditions, respectively. Moreover, the presence of extreme STDC zones occurs when prices fall below the lower channel line or cross above the upper channel line. Traders can leverage this information as a mean reversion tool by identifying instances of peak overbought and oversold values. These distinctive characteristics facilitate the identification of potential entry and exit points, thus augmenting trading decisions and enhancing market analysis.
The indicator's parameters, such as the length of the moving average, the data source, and the standard deviation multiplier, can be customized to align with individual trading strategies and preferences.
Originality:
The BBPct + STDC indicator, developed by AlgoAlpha, is an original implementation that combines the calculation of Bollinger Bands, percentile ranking, the %Stdev histogram and the STDC. While it shares some similarities with the Bollinger Bands %B indicator, the BBPct indicator introduces additional elements and customization options tailored to AlgoAlpha's methodology. The script is released under the Mozilla Public License 2.0, granting users the freedom to utilize and modify it while adhering to the license terms.
Technical Candle Alerts [SS]Releasing this fun little project indicator.
What is it?
The Technical Candle Alert indicator provides alerts based on multiple underlying technicals, including MFI, RSI, Stochastics, Z-Score, Pivot points and the EMA 50 and EMA 200 Death and Golden Cross.
What does it do?
The indicator looks back over a designated timeframe to look for max and min values of technicals, as well as track the EMA200 and EMA50.
When a candle approaches a previous max zone, pivot point or there is a death or golden cross, the indicator will signal on the candle that has triggered this event. Then you, as the trader, can determine whether you want to listen to the signal or ignore it.
How Does it Work?
The indicator is set to default and generally accepted settings for technicals, however you can modify them as you prefer.
The indicator is also programmed to identify the strongest trend period and set that as the lookback length. The theory is, you want to look at max and min technicals as well as pivot points in a recent area of a strong trend. However, if you want to over-ride the auto trend identification, you can simply unselect "Autotrend" and put in your desired manual lookback length.
The indicator will then keep track of max values for the various technicals and present you with alerts directly over the candle when a Max or Min value is triggered, or a pivot point is entered, etc.
Here are some examples:
Golden Cross:
Death Cross:
Previous Pivot Points:
Various Alerts:
Customization:
You can customize which alerts you want to turn off and on.
As well, there is a signal delay setting (wait setting). This prevents repeated, unnecessary signaling of the same signal. The default wait time is 5 signals, however you can adjust based on your desired tolerance. If you want it to always signal, adjust it to 0.
As indicated before, you can also adjust all of the technicals and the pivot bars for high and low pivots and you can manually set your lookback length.
That is the indicator in a nutshell, let me know if you have any questions that may not have been covered in the description. Its pretty straight forward once you play around with it.
Safe trades everyone and thanks for checking this out!
