Absolute Move BandsOverview:
The Absolute Move Bands indicator calculates the absolute value of the expected return, also known as "momentum" by some traders, and then displays it with standard deviation bands. The indicator also shows a moving average and a Kalman filter of the absolute move. If you take the expected return, you get what many traders commonly call "momentum." Now, if you turn the negative values into positive values by getting the magnitude of the expected return, it shows the "strength or intensity of the expected return." A low value of the absolute value of the expected return shows that the expected return is close to 0, which means that there is no significant trending behavior. The higher the value, the higher the deviation is from the mean, indicating stronger trend moves in the expected return itself. This indicator then gets the standard score of the absolute value of the expected return and then gets the moving average and Kalman Filter.
This indicator is not a directional indicator, but it can help you time moves and determine the "strength" of the expected returns (also known as momentum).
Interpreting the Magnitude:
Low Values: A low absolute value of the expected return indicates that the expected return is close to 0, suggesting no significant trending behavior in the market.
High Values: A high absolute value indicates a strong deviation from the mean, reflecting stronger trend moves in the expected return itself.
Standard Score Calculation:
This indicator computes the standard score (z-score) of the absolute value of the expected return. The value shows how many standard deviations the absolute return is from the mean. This helps in identifying periods of extreme magnitude.
Moving Average and Kalman Filter:
Moving Average: The indicator calculates the moving average of the standard score to smooth out the short-term fluctuations and show the longer-term trends in the absolute returns.
Kalman Filter: Applied to further reduce noise and provide a clearer signal, it enhances the indicator's effectiveness in determining the strength of the expected returns.
Standard Deviation Bands
Purpose: The standard deviation bands help determine if the standard score is at an extreme low or high.
High Standard Score (+2 Standard Deviation Band): Indicates that the absolute value of the expected return is at a high level, suggesting a strong trend. This could mean that the trend is at its peak and might be nearing completion.
Low Standard Score (-2 Standard Deviation Band): Indicates that the absolute value of the expected return is at a low level, suggesting minimal or no trending behavior. This could imply that the expected return is around 0, and a new trend (in any direction) may start soon.
How to interpret and use this indicator
Two ways will be discussed on how you can use this indicator. First of all lets go back over the interpretation of the standard score and bands.
High Standard Score: Indicates that the absolute value is significantly higher than usual, which suggest a strong trend which may be nearing its peak. Some traders who entered a trade at a low standard score value might want to consider taking profits or preparing for a potential reversal.
Low Standard Score: Indicates that the absolute value is significantly low, close to 0, which suggest minimal trending behavior and a new trend or move may soon start.
This indicator shouldn't be used alone; you may need an indicator that shows you the trend with an expected return indicator or a "momentum" indicator, because all this shows you is the strength of the trend or "momentum." So let's say that if you see that the standard score is low and the Kalman filter is increasing, then this shows that a trend may start soon, so you can use the "momentum" indicator and enter with whatever the trend is on.
Another way to use the indicator is to trade extreme occurrences. If on an indicator that shows the expected returns, or "momentum," and its at an extreme standard deviation occurrence level like -2 standard deviation from the mean, and the standard score is at 2 standard deviation (the top band), and the Kalman filter starts decreasing, then the downtrend may be over and you could place a long.
Trendstrengthindicator
Average Directional Index ProThe Average Directional Index (ADX) is a moving average of a range, usually 14 days, that's used to quantify the strength and direction of a trend. ADX values are significant in that lower values indicate a weak to non-existent trend, i.e. ADX=14, whereas an ADX=40 is indicative of a strong trend. Additionally, a weak trend could signal that price has entered in to a consolidation phase. A trader could wait for price to rise or fall out of a supply zone while simultaneously looking for ADX values to climb up and over the 25 level, since the ADX could be strong enough for price to trend after the breakout. As a result, this type of setup could be an excellent entry for a trade. Keep in mind that price is the signal most important value on a chart so it's important to use an indicator like this to confirm a particular bias that you may have.
💥💥💥💥💥
Instead of using a single line as most ADX indicators do, I thought that showing the values in terms of histogram bars would be highly intuitive and provide an interesting visual that would illustrate with varying degrees of color where the strength (or lack thereof) lies at any given time. The following are some of the characteristics that I feel make this script stand out from the pack.
💡Histogram plots. ADX values range from 0-100 and it may seem counterintuitive to see an ADX value below a 0 line. With this approach, I've divided up the ADX values between "bull" and "bear", meaning if an ADX histogram bar is above the 0 line (no matter if the value is 5 or 50), it's because the DMI+ value is ABOVE the DMI- value. Conversely, if the ADX histogram bar is below the 0 line, it's because the DMI- value is ABOVE the DMI+ value. DMI and ADX go hand-in-hand and while DMI values do not play a prominent role here, you'll see their values in the Main Label.
💡Main label. The main label's color will correspond to that of the histogram bar. The DMI and ADX values are listed along with the current price of the asset. Whichever DMI value is higher will be listed ahead of the lower value. In other words, from left to right, you'll see the ADX value followed by the higher of the 2 DMI values followed by the lesser of the 2 DMI values. The ADX value will be followed by an icon showing you if the value is rising or falling. Additionally, the main label has some extras: both buy/sell % on the current chart as well as daily chart along with total volume and average volume for the respective time frames. You can also change the MA lengths for the chart and daily TF averages. Both buy/sell % and total/avg volume values come with their own significant values inputs.
💡Color coded histogram bars dependent on ADX values. A few examples: an ADX value between 30 and 40 when DI+ > DI-, you'll see a dark green bar. Conversely, if the ADX value is > 70 and DI- > DI+, you'll get a dark purple bar. All in all, there's 18 possible colors denoted within the histogram.
💡Momentum arrows. There's 4 colors for the up/down arrows that populate above the histogram bar when DI+ and DI- combined with ADX values are showing extreme values. An example would be when DI+ is between 30 and 50 and ADX is greater than 30, you'll get a green arrow. On the flipside, when DI- is greater than -50 and ADX is greater than 40, you'll see a dark red arrow.
💡ADX and price shown on the histogram. You can choose to have the price and ADX values side by side or on top of one another as well as change the decimal value with a "significant figure" input. You can also opt to have neither value shown. The values will show above or below their respective bar dependent upon if DMI+ or DMI- is the dominant value, which in turn determines if the histogram is above or below the 0 line.
💡Weak trend colors. Any ADX values between 0 to 23 will give varying degrees of black to light gray indicating a weak or no trend. An ADX value of 17 could indicate a weak trend but the value could be rising as buyers push price higher. As the ADX approaches 25, wait for price confirmation (and volume) to validate if momentum could continue.
💡Threshold lines. ADX values above +/- 25-30 tend to show a strengthening of trend and you can choose to include these lines or not in your charts.
💡ADX value follow line. Determined by DMI+ being > or < than DMI-. For instance, if the trend changes and DMI- crosses over DMI+, the follow line will switch to follow the ADX histogram bar as it falls below 0. You can choose to enable/disable this line.
💡Colored bars. You can choose to enable the ADX color schemes to your candles further providing an easy view of the current trend.
💥💥💥💥💥
Remember to use any indicator together with price action to confirm a particular bias you may have! You could also use this indicator in confluence with my Directional Movement Pro script for an extra visual on trend direction and strength.
💥💥💥💥💥
Should you have any questions, feedback etc, please do not hesitate to contact the script's author. My hope is that this indicator becomes an invaluable resource to you and you're able to integrate it in to your everyday trading tool bag to make more informed decisions.
SimpleCryptoLife helped me code up this script and he's been an incredible source of knowledge in my trading journey. Without his patience and pine script expertise, this script would not have been possible!
Candlestick Trend Strength [AlgoAlpha]🚀🎉 Introducing the Candlestick Trend Strength by AlgoAlpha, a dynamic TradingView indicator designed to visually communicate the strength and direction of market trends right on your charts! 🕯️💪
Key Features:
🌈 Visual gauge for trend strength, color-coded for intuitive insights.
⏳ Customizable trend detection and normalization periods to match your trading strategy.
🎨 Flexible color settings for both uptrend (green) and downtrend (red).
🔔 Real-time alerts for trend reversals, helping you stay ahead of market moves.
How to Use:
🛠 Add the Indicator: Add the indicator to favorites and customize it to suit your needs.
🔍 Analyze the Trends: Monitor the color changes in the gauge and bar color to identify strengthening or weakening trends.
🔔 Set Alerts: Configure alerts to notify you of trend changes, allowing you to react swiftly to trading opportunities without constant monitoring.
Basic Logic Explained:
The "Candlestick Trend Strength" indicator calculates the trend strength score by analyzing the ratio of the candle's wick to its body, alongside the direction of the candle (up or down). It uses a normalization period to adjust the sum of the trend score into a scale from -1 to 1, which is then plotted as a color gradient gauge from red (downtrend) to green (uptrend) on the chart. This representation helps traders quickly assess whether a trend is gaining or losing strength, and it updates in real-time with each new bar, providing a highly responsive tool for technical analysis.
Embrace the power of visual trend analysis with the "Candlestick Trend Strength" by AlgoAlpha and transform your trading experience today! 🌟📈
TrendIndicatorsLibrary "TrendIndicators"
This is a library of 'Trend Indicators'.
It aims to facilitate the grouping of this category of indicators, and also offer the customized supply of
the source, not being restricted to just the closing price.
Indicators (this is a work in progress):
1. Absolute DI (Directional Moviment Index) (Difference between DI+ and DI-).
Used in 'DMI Stochastic Extreme' by Barbara Star.
2. DMI
DI_Abs(lengthDI, smoothDI, typeMA, lengthMA)
@description Absolute DI (Directional Moviment Index).
Used in 'DMI Stochastic Extreme' by Barbara Star.
Difference between DI+ and DI-
Parameters:
lengthDI : (int) Length of DI+/DI-
smoothDI : (bool) Sets whether absolute DI should be smoothed
typeMA : (int) Type of moving average of smoothing
lengthMA : (int) Length for moving average of smoothing
Returns: (float) Absolute value of DI
dmi(diLength, adxSmoothing)
@description DMI (Directional Movement Index)
Same as ta.dmi()
Parameters:
diLength : (int) Length of DI+/DI-
adxSmoothing : (int) ADX Smoothing
Returns: Tuple of three DMI series: Positive Directional
Movement (+DI), Negative Directional Movement (-DI) and Average Directional Movement Index (ADX).
dmi(source, diLength, adxSmoothing)
@description DMI (Directional Movement Index)
Customized version of ta.dmi(), with custom source
Parameters:
source : (float) Source for DI+/DI-
diLength : (int) Length of DI+/DI-
adxSmoothing : (int) ADX Smoothing
Returns: Tuple of three DMI series: Positive Directional
Movement (+DI), Negative Directional Movement (-DI) and Average Directional Movement Index (ADX).
GKD-C Trend Strength Indicator [Loxx]Giga Kaleidoscope Trend Strength Indicator is a Confirmation module included in Loxx's "Giga Kaleidoscope Modularized Trading System".
█ Giga Kaleidoscope Modularized Trading System
What is Loxx's "Giga Kaleidoscope Modularized Trading System"?
The Giga Kaleidoscope Modularized Trading System is a trading system built on the philosophy of the NNFX (No Nonsense Forex) algorithmic trading.
What is an NNFX algorithmic trading strategy?
The NNFX algorithm is built on the principles of trend, momentum, and volatility. There are six core components in the NNFX trading algorithm:
1. Volatility - price volatility; e.g., Average True Range, True Range Double, Close-to-Close, etc.
2. Baseline - a moving average to identify price trend
3. Confirmation 1 - a technical indicator used to identify trends
4. Confirmation 2 - a technical indicator used to identify trends
5. Continuation - a technical indicator used to identify trends
6. Volatility/Volume - a technical indicator used to identify volatility/volume breakouts/breakdown
7. Exit - a technical indicator used to determine when a trend is exhausted
How does Loxx's GKD (Giga Kaleidoscope Modularized Trading System) implement the NNFX algorithm outlined above?
Loxx's GKD v1.0 system has five types of modules (indicators/strategies). These modules are:
1. GKD-BT - Backtesting module (Volatility, Number 1 in the NNFX algorithm)
2. GKD-B - Baseline module (Baseline and Volatility/Volume, Numbers 1 and 2 in the NNFX algorithm)
3. GKD-C - Confirmation 1/2 and Continuation module (Confirmation 1/2 and Continuation, Numbers 3, 4, and 5 in the NNFX algorithm)
4. GKD-V - Volatility/Volume module (Confirmation 1/2, Number 6 in the NNFX algorithm)
5. GKD-E - Exit module (Exit, Number 7 in the NNFX algorithm)
(additional module types will added in future releases)
Each module interacts with every module by passing data between modules. Data is passed between each module as described below:
GKD-B => GKD-V => GKD-C(1) => GKD-C(2) => GKD-C(Continuation) => GKD-E => GKD-BT
That is, the Baseline indicator passes its data to Volatility/Volume. The Volatility/Volume indicator passes its values to the Confirmation 1 indicator. The Confirmation 1 indicator passes its values to the Confirmation 2 indicator. The Confirmation 2 indicator passes its values to the Continuation indicator. The Continuation indicator passes its values to the Exit indicator, and finally, the Exit indicator passes its values to the Backtest strategy.
This chaining of indicators requires that each module conform to Loxx's GKD protocol, therefore allowing for the testing of every possible combination of technical indicators that make up the six components of the NNFX algorithm.
What does the application of the GKD trading system look like?
Example trading system:
Backtest: Strategy with 1-3 take profits, trailing stop loss, multiple types of PnL volatility, and 2 backtesting styles
Baseline: Hull Moving Average as shown on the chart above
Volatility/Volume: Volatility Ratio as shown on the chart above
Confirmation 1: Trend Strength Indicator as shown on the chart above
Confirmation 2: Williams Percent Range
Continuation: Fisher Transform
Exit: Rex Oscillator
Each GKD indicator is denoted with a module identifier of either: GKD-BT, GKD-B, GKD-C, GKD-V, or GKD-E. This allows traders to understand to which module each indicator belongs and where each indicator fits into the GKD protocol chain.
Giga Kaleidoscope Modularized Trading System Signals (based on the NNFX algorithm)
Standard Entry
1. GKD-C Confirmation 1 Signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
6. GKD-C Confirmation 1 signal was less than 7 candles prior
Continuation Entry
1. Standard Entry, Baseline Entry, or Pullback; entry triggered previously
2. GKD-B Baseline hasn't crossed since entry signal trigger
3. GKD-C Confirmation Continuation Indicator signals
4. GKD-C Confirmation 1 agrees
5. GKD-B Baseline agrees
6. GKD-C Confirmation 2 agrees
1-Candle Rule Standard Entry
1. GKD-C Confirmation 1 signal
2. GKD-B Baseline agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume agrees
1-Candle Rule Baseline Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
4. GKD-C Confirmation 1 signal was less than 7 candles prior
Next Candle:
1. Price retraced (Long: close < close or Short: close > close )
2. GKD-B Baseline agrees
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
PullBack Entry
1. GKD-B Baseline signal
2. GKD-C Confirmation 1 agrees
3. Price is beyond 1.0x Volatility of Baseline
Next Candle:
1. Price is within a range of 0.2x Volatility and 1.0x Volatility of the Goldie Locks Mean
3. GKD-C Confirmation 1 agrees
4. GKD-C Confirmation 2 agrees
5. GKD-V Volatility/Volume Agrees
█ Trend Strength Indicator
What is Trend Strength Indicator?
An analysis between the average of high and low values of price. This output of this analysis is a simple histogram without an oscillating line. Green is trend up, red is trend down, and gray is sideways chop.
Requirements
Inputs
Confirmation 1 and Solo Confirmation: GKD-V Volatility / Volume indicator
Confirmation 2: GKD-C Confirmation indicator
Outputs
Confirmation 2 and Solo Confirmation: GKD-E Exit indicator
Confirmation 1: GKD-C Confirmation indicator
Continuation: GKD-E Exit indicator
Additional features will be added in future releases.
Slope NormalizerBrief:
This oscillator style indicator takes another indicator as its source and measures the change over time (the slope). It then isolates the positive slope values from the negative slope values to determine a 'normal' slope value for each.
** A 'normal' value of 1.0 is determined by the average slope plus the standard deviation of that slope.
The Scale
This indicator is not perfectly linear. The values are interpolated differently from 0.0 - 1.0 than values greater than 1.0.
From values 0.0 to 1.0 (positive or negative): it means that the value of the slope is less than 'normal' **.
Any value above 1.0 means the current slope is greater than 'normal' **.
A value of 2.0 means the value is the average plus 2x the standard deviation.
A value of 3.0 means the value is the average plus 3x the standard deviation.
A value greater than 4.0 means the value is greater than the average plus 4x the standard deviation.
Because the slope value is normalized, the meaning of these values can remain generally the same for different symbols.
Potential Usage Examples/b]
Using this in conjunction with an SMA or WMA may indicate a change in trend, or a change in trend-strength.
Any values greater than 4 indicate a very strong (and unusual) trend that may not likely be sustainable.
Any values cycling between +1.0 and -1.0 may mean indecision.
A value that is decreasing below 0.5 may predict a change in trend (slope may soon invert).
Multi TimeFrame (MTF) Trend StrengthCalculate and display simple multi timeframe (3 timeframe) trend strength using heikin ashi.
FXBABATRADING ~ ZTRENDOur ZTREND indicator is an outstanding Trend indicator to determine the Direction and Strength of the current price movement in units of Standard Deviation from a set period average, that is, helps you visualize the strength of the trend in relation to a set average. This indicator is part of a bundle of 5 indicators which we call the ZScore Indicator Suite all based on the ZScore function of statistics.
In this particular mode (ZTREND) you can see whether price is trending above or below the mean average of it, a simple moving average (period of your choice) determined by a + or - value. The value itself represents a custom function that indicates strength. A value above 1 or below -1 can be sustained ONLY if price is trending in such direction
In the example above we have the ZTrend indicators set at periods 253. It is best to use this indicator with a longer period setting in order to eliminate noise. You can add another ZTrend with a lower period to determine entries within a Trend.
Alerts can be turned off in settings
Each indicator in the ZScore Suite has a particular function:
ZClassic: Measures the position of Price in relation to a set average in units of standard deviation.
ZRange: Measures the position of the Standard Deviation itself in relation to a set average, in units of standard deviation.
ZVolumeDelta: Measures the position of Volume Delta in relation to a set average, in units of standard deviation.
ZTrend: Its a custom mathematical function that allows to measure the strength and direction of the Trend in reference to a set average.
