//@version=5 indicator("5 Supertrend with Custom Settings", overAynı anda beş farklı zaman verisini görebilirsiniz.
Indicateurs et stratégies
Key Level Buy/Sell Indicatorindicator that signals candles for the highest price when the candles have been over-brought to get in for a sell and signal the candles for the lowest price when the market has been over-sold to get in a trade for a buy at key levels of the market giving accurate results.
sell & buy indicator for BEHRAD//@version=5
indicator("اندیکاتور خرید و فروش", overlay=true)
// تنظیمات
rsiPeriod = input(14, title="دوره RSI")
rsiOverbought = input(70, title="اشباع خرید (Overbought)")
rsiOversold = input(30, title="اشباع فروش (Oversold)")
shortMA = input(9, title="میانگین متحرک کوتاهمدت")
longMA = input(21, title="میانگین متحرک بلندمدت")
// محاسبات
rsi = ta.rsi(close, rsiPeriod)
shortMAValue = ta.sma(close, shortMA)
longMAValue = ta.sma(close, longMA)
// سیگنالها
buySignal = rsi < rsiOversold and shortMAValue > longMAValue
sellSignal = rsi > rsiOverbought and shortMAValue < longMAValue
// ترسیم نقاط خرید و فروش
plotshape(buySignal, title="خرید", location=location.belowbar, color=color.green, style=shape.labelup, text="Buy")
plotshape(sellSignal, title="فروش", location=location.abovebar, color=color.red, style=shape.labeldown, text="Sell")
// میانگینها
plot(shortMAValue, color=color.blue, title="میانگین کوتاهمدت")
plot(longMAValue, color=color.orange, title="میانگین بلندمدت")
Daily Range Breakout StrategyThis strategy is designed to detect session highs and lows during a specified time window and place trades based on breakout conditions. It integrates robust range detection logic inspired by the DR/IDR methodology, ensuring accurate high/low calculations for each session.
Key Features:
Session-Based High/Low Detection.
Trade Placement After Session Ends.
Stop Loss and Take Profit Levels.
Date-Based Backtesting.
Visualization.
Debugging Logs.
Multi Indicator SummaryPurpose: It calculates and displays bullish and bearish order blocks, key levels derived from recent price movements, which traders use to identify potential support and resistance areas.
Inputs: Users can customize the order block length, defining the range of price data used for calculations.
Logic: The script uses ta.lowest and ta.highest functions to compute order blocks based on specified periods for bullish and bearish trends.
Additional Levels: It identifies extra order blocks (bullish_below and bearish_above) to provide more context for deeper support or higher resistance.
Price Table: A visual table is created on the chart, showing the current price, bullish and bearish order blocks, and additional bearish levels above the current price.
Alerts: Alerts are triggered when the price crosses key order block levels, helping traders react to significant price movements.
Flexibility: The table dynamically updates based on the chart’s ticker and timeframe, ensuring it always reflects the latest data.
Bearish Above Price: Highlights the most recent bearish order block above the current price to inform traders about potential resistance areas.
Visualization: The clear table format aids quick decision-making by summarizing key levels in an accessible way.
Usability: This script is especially useful for intraday and swing traders seeking to integrate order block analysis into their strategies.
Hull Moving AveragesShows 2 HMA and signals when crossing.
For long and short positions, determine the position size by dividing 0.5% of equity by the value of the market’s 20-bar Average True Range (ATR) in terms of dollars.
Custom Strategy TO Spread strategy//@version=5
indicator("Custom Strategy", shorttitle="CustomStrat", overlay=true)
// Configuração das SMAs
smaShort = ta.sma(close, 8)
smaLong = ta.sma(close, 21)
// Configuração da Supertrend
atrPeriod = 10
atrFactor = 2
= ta.supertrend(atrFactor, atrPeriod)
// Cálculo do spread
spread = high - low
spreadThreshold = 0.20 * close // 20% do preço atual
// Condições de entrada
crossOver = ta.crossover(smaShort, smaLong)
crossUnder = ta.crossunder(smaShort, smaLong)
superTrendCross = (close > superTrend) and (close < superTrend )
superTrendConfirm = ta.barssince(superTrendCross) <= 6
// Volume
volumeConfirmation = (volume > volume ) and (volume > volume )
volumeAverage = ta.sma(volume, 15) > ta.sma(volume , 15)
// Condição final
entryCondition = (crossOver or crossUnder) and superTrendConfirm and (spread > spreadThreshold) and volumeConfirmation and volumeAverage
// Alertas
if (entryCondition)
alert("Condição de entrada atendida!", alert.freq_once_per_bar_close)
High-Low Breakout its about high & low of the candle stick pattern he highest high of the last 3 candles is broken then buy, and sell signals when the lowest low of the last 3 candles is broken then sell. after buy when trend changes than give other signal
Abdulelah Eid//@version=5
strategy("VWAP and MA Strategy with Volume Confirmation - Customizable", overlay=true)
// إعدادات VWAP
vwapSource = input.source(title="VWAP Source", defval=hlc3)
// إعدادات المتوسطات المتحركة
ma20Length = input.int(title="MA20 Length", defval=20)
ma50Length = input.int(title="MA50 Length", defval=50)
// إعدادات حجم التداول
volumeMultiplier = input.float(title="Volume Multiplier", defval=1.5)
// حساب VWAP
vwap = ta.vwap(vwapSource, volume)
// حساب المتوسطات المتحركة
ma20 = ta.sma(close, ma20Length)
ma50 = ta.sma(close, ma50Length)
// شروط الشراء
longCondition = close > vwap and ma20 > ma50 and volume > ta.sma(volume, 20) * volumeMultiplier
// شروط البيع
shortCondition = close < vwap and ma20 < ma50 and volume > ta.sma(volume, 20) * volumeMultiplier
// رسم VWAP والمتوسطات المتحركة
plot(vwap, color=color.blue, title="VWAP")
plot(ma20, color=color.red, title="MA20")
plot(ma50, color=color.green, title="MA50")
// رسم إشارات الدخول والخروج (باستخدام plotchar)
plotchar(longCondition, char="كول", location=location.belowbar, color=color.green, size=size.small, title="Buy Signal")
plotchar(shortCondition, char="بوت", location=location.abovebar, color=color.red, size=size.small, title="Sell Signal")
// أوامر الدخول والخروج (اختياري)
if (longCondition)
strategy.entry("Long", strategy.long)
if (shortCondition)
strategy.entry("Short", strategy.short)
123@123@. //@version=5
strategy("VWAP and MA Strategy with Volume Confirmation - Customizable", overlay=true)
// إعدادات VWAP
vwapSource = input.source(title="VWAP Source", defval=hlc3)
// إعدادات المتوسطات المتحركة
ma20Length = input.int(title="MA20 Length", defval=20)
ma50Length = input.int(title="MA50 Length", defval=50)
// إعدادات حجم التداول
volumeMultiplier = input.float(title="Volume Multiplier", defval=1.5)
// حساب VWAP
vwap = ta.vwap(vwapSource, volume)
// حساب المتوسطات المتحركة
ma20 = ta.sma(close, ma20Length)
ma50 = ta.sma(close, ma50Length)
// شروط الشراء
longCondition = close > vwap and ma20 > ma50 and volume > ta.sma(volume, 20) * volumeMultiplier
// شروط البيع
shortCondition = close < vwap and ma20 < ma50 and volume > ta.sma(volume, 20) * volumeMultiplier
// رسم VWAP والمتوسطات المتحركة
plot(vwap, color=color.blue, title="VWAP")
plot(ma20, color=color.red, title="MA20")
plot(ma50, color=color.green, title="MA50")
// رسم إشارات الدخول والخروج (باستخدام plotchar)
plotchar(longCondition, char="كول", location=location.belowbar, color=color.green, size=size.small, title="Buy Signal")
plotchar(shortCondition, char="بوت", location=location.abovebar, color=color.red, size=size.small, title="Sell Signal")
// أوامر الدخول والخروج (اختياري)
if (longCondition)
strategy.entry("Long", strategy.long)
if (shortCondition)
strategy.entry("Short", strategy.short)
EMA Crossover for Investing
This TradingView script dynamically recolors candles based on the relationship between the 10-period Exponential Moving Average (EMA) and the 50-period EMA, providing a visual cue for asset allocation decisions. It is designed specifically for use on the 30-minute chart during Regular Trading Hours only.
How to Use This Script
Use the 30-Minute chart on SPY or QQQ.
📈 When the 10 EMA is above the 50 EMA, candles are highlighted to indicate favorable conditions for allocating 100% to stocks.
📉 When the 10 EMA is below the 50 EMA, candles are highlighted to suggest allocating 100% to bonds.
ATT #FFSJRCreated using ATT method - www.youtube.com
Set in settings the hour you want to use it.
My prefer using at 10 and 11am NY timezone GMT-5
Method creator: TradeWithWill
Discover the Intraday ATT Method—short for Advanced Time Technique, a groundbreaking day trading strategy designed to optimize your trading time and maximize intraday profits. Whether you're a seasoned trader or just starting out, this exclusive method offers proven techniques for enhancing decision-making, managing risks, and achieving consistent trading success. In this video, you'll learn the fundamentals of the Intraday ATT Method, step-by-step implementation guides, and real-life case studies that demonstrate its effectiveness in today's fast-paced markets.
Volatility Crypto Trading Strategy//@version=5
indicator("Volatility Crypto Trading Strategy", overlay=true)
// Input parameters for Bollinger Bands and MACD
bb_length = input.int(20, title="Bollinger Band Length")
bb_std_dev = input.float(2.0, title="Bollinger Band Standard Deviation")
macd_fast = input.int(12, title="MACD Fast Length")
macd_slow = input.int(26, title="MACD Slow Length")
macd_signal = input.int(9, title="MACD Signal Length")
// Input for higher timeframe
htf = input.timeframe("30", title="Higher Timeframe")
// Bollinger Bands calculation
bb_basis = ta.sma(close, bb_length)
bb_upper = bb_basis + bb_std_dev * ta.stdev(close, bb_length)
bb_lower = bb_basis - bb_std_dev * ta.stdev(close, bb_length)
// MACD calculation
= ta.macd(close, macd_fast, macd_slow, macd_signal)
// Higher timeframe trend confirmation
htf_close = request.security(syminfo.tickerid, htf, close)
htf_trend = ta.sma(htf_close, bb_length)
higher_trend_up = htf_close > htf_trend
higher_trend_down = htf_close < htf_trend
// Entry conditions
long_condition = close < bb_lower and macd_line > signal_line and higher_trend_up
short_condition = close > bb_upper and macd_line < signal_line and higher_trend_down
// Exit conditions
long_exit_condition = close >= bb_basis * 1.1
short_exit_condition = close <= bb_basis * 0.9
// Plot Bollinger Bands
plot(bb_upper, color=color.red, title="Upper Bollinger Band")
plot(bb_lower, color=color.green, title="Lower Bollinger Band")
plot(bb_basis, color=color.blue, title="Bollinger Band Basis")
// Plot Buy/Sell signals
plotshape(series=long_condition, title="Buy Signal", location=location.belowbar, color=color.green, style=shape.labelup, text="BUY")
plotshape(series=short_condition, title="Sell Signal", location=location.abovebar, color=color.red, style=shape.labeldown, text="SELL")
// Alerts
alertcondition(long_condition, title="Long Entry", message="Buy Signal")
alertcondition(short_condition, title="Short Entry", message="Sell Signal")
alertcondition(long_exit_condition, title="Long Exit", message="Exit Long")
alertcondition(short_exit_condition, title="Short Exit", message="Exit Short")
Fibonacci RepulseFibonacci Repulse with Trend Table 📉📈
Description: The "Fibonacci Repulse" indicator for TradingView combines Fibonacci retracement levels with dynamic support/resistance detection, providing real-time price action insights. 🔄 This powerful tool plots critical Fibonacci retracement levels (23.6%, 38.2%, and 50%) based on the highest and lowest swing points over a user-defined lookback period. The indicator automatically detects bullish retests, alerting you when the price touches and closes above any of the Fibonacci levels, indicating potential upward momentum. 🚀
Key Features:
Fibonacci Retracement Levels 📊: Plots key levels (23.6%, 38.2%, 50%) dynamically based on the highest and lowest price swings over a customizable lookback period.
Bullish Retests Alerts ⚡: Identifies and marks bullish retests when the price touches the Fibonacci levels and closes above them, signaling potential upward movement.
Real-Time Trend Detection 🔍: Displays the current market trend as "Bullish," "Bearish," or "Sideways" in a clear, easy-to-read table in the bottom right corner of the chart. This is determined based on the price's position relative to the Fibonacci levels.
Customizable Settings ⚙️: Adjust the lookback period and label offsets for optimal visual customization.
How It Works:
The indicator calculates the Fibonacci retracement levels between the highest high and the lowest low within a user-defined period. 🧮
It draws extended lines at the 23.6%, 38.2%, and 50% retracement levels, updating them as the chart moves. 📉
When the price touches a Fibonacci level and closes above it, a "Bullish Retest" label appears, signaling a potential buy opportunity. 💡
A real-time trend status table updates automatically in the chart's bottom-right corner, helping traders quickly assess the market's trend direction: Bullish, Bearish, or Sideways. 🔄
Why Use It: This indicator is perfect for traders looking for a clear and visual way to incorporate Fibonacci levels into their trading strategies, with real-time feedback on trend direction and price action signals. Whether you are a novice or an experienced trader, "Fibonacci Repulse" provides a powerful tool for identifying potential reversal points and confirming trends, enhancing your trading strategy. 📈💪
MyRenkoLibraryLibrary "MyRenkoLibrary"
calcRenko(real_break_size)
Parameters:
real_break_size (float)
Logarithmic IndicatorThis logarithmic indicator does the following:
It calculates the logarithm of the chosen price (default is close price) using a user-defined base (default is 10).
It then calculates a Simple Moving Average (SMA) of the logarithmic values.
Both the logarithmic value and its SMA are plotted on the chart.
To improve visibility, it also plots an upper and lower band based on the highest and lowest values over the last 100 periods.
To use this indicator:
Open the TradingView Pine Editor.
Paste the code into the editor.
Click "Add to Chart" or "Save" to apply the indicator to your chart.
Adjust the input parameters in the indicator settings as needed.
You can customize this indicator further by:
Changing the color scheme
Adding more moving averages or other technical indicators
Implementing alerts based on crossovers or other conditions
Remember, logarithmic scales are often used in finance to visualize data that spans several orders of magnitude, making it easier to see percentage changes over time.
Whale IndicatorOverview:
This advanced script is designed to track the price difference of Bitcoin between Bitmex and Binance Futures, providing traders with strategic buy and sell signals. It capitalizes on the relative movements of Bitcoin prices across these two prominent platforms, offering a unique approach to market analysis and decision-making.
Functionality:
* Price Tracking: The indicator meticulously monitors the Bitcoin price on Bitmex and Binance Futures.
* Signal Generation:
* A buy signal is generated when the Bitmex price increases by $100.
* A sell signal is triggered when the Bitmex price decreases by $100.
* Special Conditions:
* A signal named STRONG BUY is produced when the price difference rises by $150.
* A signal named STRONG SELL is generated when the price difference drops by $150.
Methodology:
This indicator relies on simple yet effective price differential principles, where the relative movement between the two platforms signals potential trading opportunities. The threshold values of $100 and $150 are chosen to filter out noise and focus on significant market movements, providing clear actionable signals.
Usage Instructions:
* Timeframe: This indicator is optimized for the BTCUSD Daily chart. However, it is also adaptable to 4-hour and hourly charts for more active trading strategies.
* Trading Strategy:
* When a buy signal turns into a sell signal, the recommendation is to SHORT or SELL.
* Conversely, when a sell signal flips to a buy signal, traders are advised to LONG or BUY.
Warning: This indicator is specifically designed for Bitcoin and should not be applied to other assets, as it may yield inaccurate results.
By understanding the underlying calculations and the strategic thresholds utilized, traders can better grasp the rationale behind the generated signals and incorporate them into their trading arsenal effectively. This detailed approach ensures that the indicator not only alerts traders to potential opportunities but does so with a clear, logical foundation.
MSTR Bitcoin Holdings Overlay (MSTR BTC Treasury)This TradingView overlay displays MicroStrategy's (MSTR) Bitcoin holdings as a simple line chart on a separate axis. The data used in this script is based on publicly available information about MSTR's Bitcoin acquisitions up to January 2, 2025.
Key Points:
- All data points (timestamps and Bitcoin holdings) included in this script represent actual historical records available up to January 2, 2025.
- No future projections or speculative estimates are included.
This script is static and does not fetch or update data dynamically. If there are new Bitcoin acquisitions or updates after January 2, 2025, they will not appear on the chart unless manually added.
Transparency and Accuracy:
- The script uses an array-based structure to map exact timestamps to corresponding Bitcoin holdings.
Each timestamp aligns with known dates when MSTR disclosed its Bitcoin purchases.
DCA Strategy with HedgingThis strategy implements a dynamic hedging system with Dollar-Cost Averaging (DCA) based on the 34 EMA. It can hold simultaneous long and short positions, making it suitable for ranging and trending markets.
Key Features:
Uses 34 EMA as baseline indicator
Implements hedging with simultaneous long/short positions
Dynamic DCA for position management
Automatic take-profit adjustments
Entry confirmation using 3-candle rule
How it Works
Long Entries:
Opens when price closes above 34 EMA for 3 candles
Adds positions every 0.1% price drop
Takes profit at 0.05% above average entry
Short Entries:
Opens when price closes below 34 EMA for 3 candles
Adds positions every 0.1% price rise
Takes profit at 0.05% below average entry
Settings
EMA Length: Controls the EMA period (default: 34)
DCA Interval: Price movement needed for additional entries (default: 0.1%)
Take Profit: Profit target from average entry (default: 0.05%)
Initial Position: Starting position size (default: 1.0)
Indicators
L: Long Entry
DL: Long DCA
S: Short Entry
DS: Short DCA
LTP: Long Take Profit
STP: Short Take Profit
Alerts
Compatible with all standard TradingView alerts:
Position Opens (Long/Short)
DCA Entries
Take Profit Hits
Note: This strategy works best on lower timeframes with high liquidity pairs. Adjust parameters based on asset volatility.
Support Resistance Major/Minor [TradingFinder] Market Structure🔵 Introduction
Support and resistance levels are key concepts in technical analysis, serving as critical points where prices pause or reverse due to the interaction of supply and demand. These foundational elements in price action and classical technical analysis assist traders in understanding market behavior and making better trading decisions.
Support levels are zones where demand is strong enough to prevent further price declines, while resistance levels act as barriers that hinder price increases.
Support and resistance levels are divided into two main types: static and dynamic. Static levels are fixed horizontal lines on charts, formed based on historical price points, and are crucial due to repeated price reactions in these areas.
Dynamic levels, on the other hand, move with market trends and are often identified using tools like moving averages and trendlines. These levels are particularly useful for analyzing dynamic trends and identifying potential reversal points in financial markets.
The importance of support and resistance in technical analysis lies in their ability to pinpoint price reversal or continuation points. Professional traders use these levels to determine optimal entry and exit points and combine them with tools such as Fibonacci retracements or moving averages for precise strategies.
Detailed analysis of price behavior at these levels provides insights into trend strength and the likelihood of price breaks or reversals. By understanding these concepts, technical analysts can forecast future price movements and optimize their trading decisions using tools such as indicators and price action. Support and resistance levels, as a cornerstone of technical analysis, form the foundation for many trading strategies.
🔵 How to Use
The Static Support and Resistance Indicator is a vital tool for identifying significant price zones in financial markets. It automatically detects major and minor support and resistance levels in both short-term and long-term intervals, enabling traders to analyze price behavior accurately and develop optimal entry and exit strategies.
🟣 Major Long-Term Support and Resistance
Major Long-Term Support : The lowest price points recorded over long-term intervals that prevent further declines.
Major Long-Term Resistance : The highest price points in long-term intervals that limit further price increases.
🟣 Minor Long-Term Support and Resistance
Minor Long-Term Support : Temporary halts in price decline within a downtrend over long-term intervals.
Minor Long-Term Resistance : Short-term zones within long-term intervals where prices react negatively in an uptrend.
🟣 Major Short-Term Support and Resistance
Major Short-Term Support : The lowest price points in short-term intervals that act as barriers against sharp price drops.
Major Short-Term Resistance : The highest points in short-term intervals that prevent further price surges.
🟣 Minor Short-Term Support and Resistance
Minor Short-Term Support : Temporary halts in price decline within short-term downtrends.
Minor Short-Term Resistance : Zones where price reacts quickly and reverses in short-term uptrends.
🔵 Settings
Long Term S&R Pivot Period : Defines the interval for identifying long-term support and resistance levels (default: 21).
Short Term S&R Pivot Period : Defines the interval for identifying short-term support and resistance levels (default: 5).
🟣 Long-Term Lines
Major Line Display : Enable/disable major long-term lines.
Minor Line Display : Enable/disable minor long-term lines.
Major Line Colors : Green for support, red for resistance (long-term major levels).
Minor Line Colors : Light green for support, light red for resistance (long-term minor levels).
Major Line Style : Choose between solid, dotted, or dashed lines for major long-term levels.
Minor Line Style : Choose between solid, dotted, or dashed lines for minor long-term levels.
Major Line Width : Adjust the thickness of major long-term lines.
Minor Line Width : Adjust the thickness of minor long-term lines.
🟣 Short-Term Lines
Major Line Display : Enable/disable major short-term lines.
Minor Line Display : Enable/disable minor short-term lines.
Major Line Colors : Gray-green for support, gray-red for resistance (short-term major levels).
Minor Line Colors : Dark green for support, dark red for resistance (short-term minor levels).
Major Line Style : Choose between solid, dotted, or dashed lines for major short-term levels.
Minor Line Style : Choose between solid, dotted, or dashed lines for minor short-term levels.
Major Line Width : Adjust the thickness of major short-term lines.
Minor Line Width : Adjust the thickness of minor short-term lines.
🔵 Conclusion
Static support and resistance levels are among the most critical tools in technical analysis, helping traders identify key reversal or continuation points.
This indicator simplifies and enhances the analysis process by automatically detecting major and minor levels in both short-term and long-term intervals. It allows traders to customize settings to suit their trading strategies and analyze different market levels effectively.
Using this indicator improves price action analysis, enhances market understanding, and identifies trading opportunities. Applicable to all trading styles, from day trading to long-term investing, it is an essential tool for technical analysis.
Combining this indicator with other tools like trendlines, Fibonacci retracements, and moving averages enables comprehensive analysis and allows traders to navigate financial markets with greater confidence.
Visual Range Position Size CalculatorVisual Range Position Size Calculator
The "VR Position Size Calculator" helps traders determine the appropriate position size based on their risk tolerance and the current market conditions. Below is a detailed description of the script, its functionality, and how to use it effectively.
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Key Features
1. Risk Calculation: The script allows users to input their desired risk in monetary terms (in the currency of the ticker). It then calculates the position sizes for both long and short trades based on this risk.
2. Dynamic High and Low Tracking: The script dynamically tracks the highest and lowest prices within the visible range of the chart, allowing for more accurate position sizing.
3. Formatted Output: The calculated values are displayed in a user-friendly table format with thousands separators for better readability.
4. Visual Indicators: Dashed lines are drawn on the chart at the high and low points of the visible range, providing a clear visual reference for traders.
5. If the risk in security price is 1% or less, the background of the cells displaying position sizes will be green for long positions and red for short positions. If the risk is between 1% and 5%, the background changes to gray, indicating that the risk may be too high for an effective trade. If the risk exceeds 5% of the price, the text also turns gray, rendering it invisible, which signifies that there is no justification for such a trade.
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Code Explanation
The script identifies the start and end times of the visible range on the chart, ensuring calculations are based only on the data currently in view. It updates and stores the highest (hh) and lowest (ll) prices within this visible range. At the end of the range, dashed lines are drawn at the high and low prices, providing a visual cue for traders.
Users can input their risk amount, which is then used to calculate potential position sizes for both long and short trades based on the current price relative to the tracked high and low. The calculated risk values and position sizes are displayed in a table on the right side of the chart, with color coding to indicate whether the calculated position size meets specific criteria.
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Usage Instructions
1. Add the Indicator: To use this script, copy and paste it into Pine Script editor, then add it to your chart.
2. Input Your Risk: Adjust the 'Risk in money' input to reflect your desired risk amount for trading.
3. Analyze Position Sizes: Observe the calculated position sizes for both long and short trades displayed in the table. Use this information to guide your trading decisions.
4. Visual Cues: Utilize the dashed lines on the chart to understand recent price extremes within your visible range.
Cash and Carry: Annualized BTC Basis (Parametric)This indicator calculates the annualized BTC basis (premium or discount) between a specified futures contract and a given spot symbol. You can customize the spot ticker, the futures ticker, and the exact expiration date/time. As time moves toward expiration, the annualized yield (basis) will adjust accordingly. Ideal for monitoring potential arbitrage or cash-and-carry opportunities!
Volatility Cycle IndicatorThe Volatility Cycle Indicator is a non-directional trading tool designed to measure market volatility and cycles based on the relationship between standard deviation and Average True Range (ATR). In the Chart GBPAUD 1H time frame you can clearly see when volatility is low, market is ranging and when volatility is high market is expanding.
This innovative approach normalizes the standard deviation of closing prices by ATR, providing a dynamic perspective on volatility. By analyzing the interaction between Bollinger Bands and Keltner Channels, it also detects "squeeze" conditions, highlighting periods of reduced volatility, often preceding explosive price movements.
The indicator further features visual aids, including colored zones, plotted volatility cycles, and highlighted horizontal levels to interpret market conditions effectively. Alerts for key events, such as volatility crossing significant thresholds or entering a squeeze, make it an ideal tool for proactive trading.
Key Features:
Volatility Measurement:
Tracks the Volatility Cycle, normalized using standard deviation and ATR.
Helps identify periods of high and low volatility in the market.
Volatility Zones:
Colored zones represent varying levels of market volatility:
Blue Zone: Low volatility (0.5–0.75).
Orange Zone: Transition phase (0.75–1.0).
Green Zone: Moderate volatility (1.0–1.5).
Fuchsia Zone: High volatility (1.5–2.0).
Red Zone: Extreme volatility (>2.0).
Squeeze Detection:
Identifies when Bollinger Bands contract within Keltner Channels, signaling a volatility squeeze.
Alerts are triggered for potential breakout opportunities.
Visual Enhancements:
Dynamic coloring of the Volatility Cycle for clarity on its momentum and direction.
Plots multiple horizontal levels for actionable insights into market conditions.
Alerts:
Sends alerts when the Volatility Cycle crosses significant levels (e.g., 0.75) or when a squeeze condition is detected.
Non-Directional Nature:
The indicator does not predict the market's direction but rather highlights periods of potential movement, making it suitable for both trend-following and mean-reversion strategies.
How to Trade with This Indicator:
Volatility Squeeze Breakout:
When the indicator identifies a squeeze (volatility compression), prepare for a breakout in either direction.
Use additional directional indicators or chart patterns to determine the likely breakout direction.
Crossing Volatility Levels:
Pay attention to when the Volatility Cycle crosses the 0.75 level:
Crossing above 0.75 indicates increasing volatility—ideal for trend-following strategies.
Crossing below 0.75 signals decreasing volatility—consider mean-reversion strategies.
Volatility Zones:
Enter positions as volatility transitions through key zones:
Low volatility (Blue Zone): Watch for breakout setups.
Extreme volatility (Red Zone): Be cautious of overextended moves or reversals.
Alerts for Proactive Trading:
Configure alerts for squeeze conditions and level crossings to stay updated without constant monitoring.
Best Practices:
Pair the Volatility Cycle Indicator with directional indicators such as moving averages, trendlines, or momentum oscillators to improve trade accuracy.
Use on multiple timeframes to align entries with broader market trends.
Combine with risk management techniques, such as ATR-based stop losses, to handle volatility spikes effectively.